Improving the quality of receivables through stronger underwriting and collections

「Receivables overdue by 3 months or more totaled ¥11.661 billion, up 19.1% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥13.024 billion as of the end of the consolidated fiscal year, up 19.6% from the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 149.2% at the end of the previous fiscal year to 147.7%.」

「・与信管理・回収体制強化による債権の健全化及び業務効率化による生産性向上」

「Of the balance of installment receivables, purchased receivables and finance lease receivables managed on a management-accounting basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables overdue by 3 months or more totaled ¥122.711 billion, up 5.2% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts at the end of the interim consolidated accounting period was ¥139.730 billion, up 7.3% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 147.7% at the end of the previous fiscal year to 145.6%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥10.702 billion, up 9.3% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥12.357 billion as of the end of the interim consolidated accounting period, up 13.5% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more rose from 149.2% at the end of the previous fiscal year to 151.4%.」

「Receivables overdue by 3 months or more totaled ¥9.791 billion, up 21.3% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥10.889 billion as of the end of the consolidated fiscal year, up 12.3% from the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 177.2% at the end of the previous fiscal year to 149.2%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥9.163 billion, up 13.6% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥10.407 billion as of the end of the interim consolidated accounting period, up 7.3% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 177.2% at the end of the previous fiscal year to 162.0%.」

「Receivables overdue by 3 months or more totaled ¥8.070 billion, up 27.6% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥9.696 billion as of the end of the consolidated fiscal year, up 16.7% from the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 190.5% at the end of the previous fiscal year to 177.2%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥7.570 billion, up 19.7% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥9.264 billion as of the end of the third quarter of the current fiscal year, up 11.5% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 190.5% at the end of the previous fiscal year to 176.9%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥7.645 billion, up 20.9% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥8.999 billion as of the end of the second quarter of the current fiscal year, up 8.3% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 190.5% at the end of the previous fiscal year to 180.1%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥6.764 billion, up 7.0% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥8.590 billion as of the end of the first quarter of the current fiscal year, up 3.4% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 190.5% at the end of the previous fiscal year to 184.9%.」

「Receivables overdue by 3 months or more totaled ¥6.324 billion, up 16.9% from the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥8.308 billion as of the end of the consolidated fiscal year, up 19.4% from the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more rose from 183.9% at the end of the previous fiscal year to 190.5%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥5.929 billion, up 9.6% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥7.217 billion as of the end of the third quarter of the current fiscal year, up 3.8% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 183.9% at the end of the previous fiscal year to 176.4%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥5.494 billion, up 1.6% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥7.091 billion as of the end of the second quarter of the current fiscal year, up 1.9% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more was 183.9%, unchanged from the end of the previous fiscal year.」

「Receivables overdue by 3 months or more totaled ¥5.615 billion, up 3.8% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥7.163 billion as of the end of the first quarter of the current fiscal year, up 3.0% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more declined from 183.9% at the end of the previous fiscal year to 183.1%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥5.020 billion, down 10.5% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥6.785 billion as of the end of the third quarter of the current fiscal year, down 2.7% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more rose from 177.1% at the end of the previous fiscal year to 186.7%.」

「Of operating receivables, defined as the sum of installment accounts receivable, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, receivables overdue by 3 months or more totaled ¥5.167 billion, down 7.9% from the end of the previous fiscal year. The allowance for doubtful accounts against these receivables stood at ¥6.819 billion as of the end of the second quarter of the current fiscal year, down 2.2% from the end of the previous fiscal year. As a result, the coverage ratio for receivables overdue by 3 months or more rose from 177.1% at the end of the previous fiscal year to 187.5%.」

「The balance of receivables delinquent for 3 months or more amounted to ¥51.599 billion, down 8.0% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more rose from 177.1% at the end of the previous fiscal year to 187.7%. Because misconduct by a business partner raised doubts about the collectability of some of our receivables, we recognised the expected uncollectible amount as an allowance for doubtful accounts.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥60.524 billion, down 4.4% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts at the end of the third quarter of the fiscal year amounted to ¥64.909 billion, down 8.1% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more rose from 155.8% at the end of the previous fiscal year to 156.3%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥66.485 billion, up 5.1% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts at the end of the second quarter of the fiscal year amounted to ¥69.535 billion, down 1.6% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 155.8% at the end of the previous fiscal year to 146.3%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥68.030 billion, up 7.5% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts at the end of the first quarter of the fiscal year amounted to ¥72.003 billion, up 1.9% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 155.8% at the end of the previous fiscal year to 144.6%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥62.777 billion, up 3.7% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts at the end of the third quarter of the fiscal year amounted to ¥67.196 billion, down 0.1% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more rose from 146.7% at the end of the previous fiscal year to 147.2%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥62.275 billion, up 2.9% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts at the end of the second quarter of the fiscal year amounted to ¥67.208 billion, down 0.1% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more rose from 146.7% at the end of the previous fiscal year to 148.3%.」

「The balance of receivables delinquent for 3 months or more amounted to ¥61.320 billion, up 1.3% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts at the end of the first quarter of the fiscal year amounted to ¥67.178 billion, down 0.1% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more rose from 146.7% at the end of the previous fiscal year to 149.2%.」

「The balance of receivables delinquent for 3 months or more increased to ¥61.132 billion, up 8.6% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts under current assets at the end of the third quarter of the fiscal year amounted to ¥52.787 billion, up 4.4% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 117.8% at the end of the previous fiscal year to 115.8%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥60.138 billion, up 6.8% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts under current assets at the end of the second quarter of the fiscal year amounted to ¥52.432 billion, up 3.7% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 117.8% at the end of the previous fiscal year to 116.6%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥59.610 billion, up 5.9% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts under current assets at the end of the first quarter of the fiscal year amounted to ¥51.553 billion, up 1.9% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 117.8% at the end of the previous fiscal year to 115.9%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥56.302 billion, up 11.9% year on year. The year-end balance of the allowance for doubtful accounts under current assets amounted to ¥50.570 billion, up 6.9% year on year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 126.8% at the end of the previous fiscal year to 117.8%.」

「Of the balance of instalment receivables, purchased receivables and finance lease receivables on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥54.227 billion, up 7.8% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts under current assets at the end of the third quarter of the fiscal year amounted to ¥49.923 billion, up 5.6% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 126.8% at the end of the previous fiscal year to 121.2%.」

「Of the balance of instalment receivables, purchased receivables and lease investment assets on a management basis, plus contingent liabilities, collectively referred to below as “operating receivables,” receivables delinquent for 3 months or more amounted to ¥54.885 billion, up 9.1% from the end of the previous fiscal year. The balance of the allowance for doubtful accounts under current assets at the end of the second quarter of the fiscal year amounted to ¥50.001 billion, up 5.7% from the end of the previous fiscal year. As a result, the coverage ratio for receivables delinquent for 3 months or more fell from 126.8% at the end of the previous fiscal year to 124.8%.」

「At the initial and ongoing underwriting stages, we conduct appropriate credit assessments based on internal and external conditions and customers’ circumstances and seek to curb losses from unauthorised use by strengthening monitoring. In receivables collection, we seek to prevent delinquencies before they occur by encouraging advance payment before the due date, while protecting receivables through more intensive contact and counselling for customers after delinquency occurs. Going forward, we will maintain rigorous receivables management that balances earnings and costs by further expanding high-quality receivables and suppressing risky receivables.」

「At the initial and ongoing underwriting stages, we conduct appropriate credit assessments in line with internal and external conditions and seek to curb losses from unauthorised use by strengthening monitoring. In receivables collection, we seek to prevent delinquencies before they occur by encouraging advance payment before the due date, while protecting receivables through more intensive contact and counselling for customers after delinquency occurs.」

「Going forward, we will maintain rigorous credit management that balances earnings and risk by further expanding high-quality receivables and strengthening underwriting and collections in response to changing conditions.」

「Going forward, we will maintain rigorous credit management that balances earnings and risk by further expanding high-quality receivables and strengthening underwriting and collections in response to changing conditions.」

「At the initial and ongoing underwriting stages, we conduct appropriate credit assessments in line with internal and external conditions and seek to curb losses from unauthorised use by strengthening monitoring. In receivables collection, we seek to prevent delinquencies before they occur by encouraging advance payment before the due date, while protecting receivables through more intensive contact and counselling for customers after delinquency occurs.」