Business Risks

Of the matters relating to the business situation and the accounting situation, etc., the major matters that may have a significant impact on the judgment of investors include those described below. In addition, the statements described below do not include all the risks of the AIFUL Group’s business, etc. There is a possibility that a new business risk, etc. may arise due to uncertain causes in the future.

  1. (1)Economic situation and market trends
  2. (2)Intensified competition
  3. (3)Increase/decrease in multiple debtors
  4. (4)Legal regulations
  5. (5)Funding
  6. (6)Disruption, failure and other damage to the information network system, Internet services, or technical systems
  7. (7)Financial soundness
  8. (8)The credit guarantee business
  9. (9)The overseas business
  10. (10)Tax loss carryforwards
  11. (11)Securities
  12. (12)The holding and disposing of Company shares by the Representative Director and his/her family members
  13. (13)Disasters, infectious diseases, etc.
  14. (14)Response to climate change
  15. (15)Fluctuation in costs including fees, advertising costs and personnel expenses, and losses (e.g., increases in partner ATM fees, payments to contractors related to affiliate advertising, advertising costs due to a rise in the unit cost of TV and other media and an increase in ad placements, and personnel expenses due to an increase in personnel following the expansion of operations)
  16. (16)Negative media reports on the Group or the consumer finance industry, or the occurrence of scandals (e.g., risk of reputational damage due to negative media reports on the bank card loan problem, risk of significant damage to the Group’s brand image due to the uploading of videos of inappropriate acts by employees on the Internet)

AIFUL established a system to prevent the realization of risk and respond to an emergency, however, due to changes in the management environment, including the strengthening or easing of the legal regulations, the competition situation, changes in the economy and other causes, the financial position and operating results of the AIFUL may be affected. Of the above risks, those of particular importance are detailed in the Securities Report.