Credit Saison Co., Ltd. · TSE:8253
Credit Saison — H1 FY2015 Earnings Presentation
36 slides from Credit Saison's earnings presentation, Nov 11, 2015
Slide 1: FY2015 2nd Quarter Management Report
FY2015 2 n d Quarter Management R e p o r t 2015. 11. 11 CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA INTERNET Saison AMEX Lineup GLOBAL INNOVATION ◆ FY2015 First Half Business Highlights Ⅰ． FY2015 First Half Financial Report Ⅱ． FY2015 Management Strategies Ⅲ． Social Contribution Activities This report contains forward-looking statements that reflect our plans and expectation. These forward-l
Slide 3: Main Topics of the First Half of 2015 Fiscal Year
Main Topics of the First Half of 2015 Fiscal Year ■ Acceleration of expansion of the prepaid card operation, in order to supersede the cash market First ever in Japan! The “NEO MONEY” cards that can be used under the China Payment Union Pay Card brand started being issued. Card Business Collaboratio
Slide 4: FY2015 First Half Financial Report
Ⅰ．FY2015 First Half Financial Report ◆MachiCard Festa events Inaugural area！ 1. Financial Results 2. Results by Business Segment 3. Contributions by Consolidated Companies 4. Main Indices (Non-Consolidated) 5. Trends in the credit business 6. Credit risk / Credit cost 7. Interest repayment claim 8.
Slide 5: Financial Results
１. Financial Results (¥ billion) difference FY2014 YoY FY2015 YoY FY2015 from the YoY(%) nd nd previous 2 Quarter (%) 2 Quarter (%) (Estimate) year Operating Revenues 126.5 102.1 134.9 106.6 270.0 ＋2 104.2 Consolidated Ordinary Income 26.6 97.4 34.2 128.7 60.0 ＋5.5 137.3 Quarter Net Income 18.5 105.
Slide 6: Results by Business Segment
２. Results by Business Segment (¥ billion) Operating Revenues Operating Income FY2014 FY2015 FY2014 FY2015 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 96.4 100.3 104.0 9.6 10.8 111.8 Lease 7.0 6.8 96.8 3.0 2.6 88.4 Finance 10.7 12.7 119.0 6.0 7.0 115.6 Real Estate-
Slide 7: Contributions by Consolidated Companies
３. Contributions by Consolidated Companies Ordinary income: Difference between consolidated and non-consolidated figures Non-consolidated Consolidated Difference Contribution to consolidated results Ordinary income ¥22.0 billion ¥34.2 billion ¥12.2 billion Contribution to Contribution Major consolid
Slide 8: (Reference) Progress of the Real Estate Business (Atrium Group)
(Reference) Progress of the Real Estate Business (Atrium Group) Because of real estate sales supported by strong demand in the real estate market, as well as disposal of the assets relating to the liquidated business, the business progressed at a faster rate than expected. ■ Business to be liquidate
Slide 9: Main Indices (Non-Consolidated)
４. Main Indices (Non-Consolidated) FY2014 FY2015 FY2015（Estimate） 2nd Quarter YoY(%) 2nd Quarter YoY(%) YoY(%) New Applications (millions) 1.49 84.4 1.63 109.2 3.40 113.0 New Card Issued (millions) 1.17 92.0 1.28 109.2 2.70 113.8 Total Cardholders 24.80 25.27 25.60 100.0 101.9 102.5 (millions) （＋0.0
Slide 10: Trends in Credit Business – Shopping
5-(1) Trends in Credit Business – Shopping – Thanks to an increase in new card members of Mitsui Shopping Park Card Saison and the Walmart Card Saison, the active members increased, contributing to the continued growth of transaction volume. (Ten thousand people) (YoY Comparison) [Share by Key Secto
Slide 11: Trends in Credit Business – Shopping Revolving
5-(2) Trends in Credit Business – Shopping Revolving – By full utilization of customer contact channels including the Saison Counters, “Change to Revolving Repayment” and “Revolving Repayment Declaration” were strongly promoted, and, as the result, both the balance and revenue remained strong. Initi
Slide 12: Trends in Credit Business – Cash Advances
5-(3) Trends in Credit Business – Cash Advances (Separate Account of Saison) Setting up credit limits in advance to meet members’ needs, as well as delivery of online cash advance services through “Saison Portal” Response to customers’ needs by promoting loan products such as MONEYCARD at the consul
Slide 13: Credit Risk / Credit Cost
6. Credit Risk / Credit Cost Combination of aggressive sales activity and balancing between risk and profits to attain increases in balances of revolving repayment and cash advances ■Trends in Credit Risk 6% Delinquency of over 90 days 6% Delinquency of over 90 days 5% (Consolidated) (Non-Consolidat
Slide 14: Interest Repayment Claims
7. Interest Repayment Claims The number of new claims handled by lawyers and other proxies hovered at the almost same level with the previous year. ■Trends in new claims handled by lawyers and ■Trend of provision for loss on interest other proxies (monthly average) repayment (Unit: billion yen) Mont
Slide 15: Financial Indices
8. Financial Indices ■Shareholder’s Equity ・ Tatal Assets ・ Shareholder’s Equity Ratio Consolidated Non-Consolidated change from change from end of FY2014 end of FY2014 Shareholders’ 466.8 billion ＋21.7 398.1 billion ＋9.6 Equity Total Assets 2,431.5 billion ＋58.2 2,336.6 billion ＋48.6 Shareholders’
Slide 16: Revisions to Forecast of Business Results
9. Revisions to Forecast of Business Results (Unit: billion yen) Estimate New estimate Difference (Published on (B) Reasons for the revision May 13) (A) (B-A) Operating Consolidated 268 270 +2 [Reasons of the upward Revenues revision] ■ Consolidated Account Ordinary ・ Income of Atrium Co., Ltd., 54.
Slide 17: (Reference) Fund Structure Changes in Interest-bearing Debt
(Reference) Fund Structure Changes in Interest-bearing Debt (Non-Consolidated) Diversification of fund raising strategies to prepare for future risk of rise in interest rates and asset expansion [ Rating ] R&I A+ Average Funding （Billion yen）1.41% 1.29% 1.15% FY2015 bond issue 0.98% 0.87% 2,000 Tota
Slide 18: (Reference) Progress Status of Associated Core System Development
(Reference) Progress Status of Associated Core System Development Preparation for the system release in the second half of FY2016 has been ２０１６年度後半のシステムリリースに向けて計画通り進捗 progressed as planned. [Purposes of development] ■ Consolidating customer management ・ Central management of Saison/UC brand customer
Slide 19: FY2015 Management Strategy
Ⅱ．FY2015 Management Strategy ◆ Management vision ◆ Priority Policies, FY2015 Second Half ◆ Management strategy 17
Slide 20: Management vision: Neo Finance Company in Asia
Management vision 【 Global ・ Internet ・ Innovation 】 Neo Finance Company in Asia < STRATEGY Ⅰ > < STRATEGY Ⅱ > Developing and brushing up our strategic weapons Creating customer value with the by thoroughly strengthening corporate sales help of innovation Payment Solution Finance Internet カードビジネス ソリ
Slide 21: Management Strategy and Priority Policies, FY2015 Second Half
◆ Management Strategy and Priority Policies, FY2015 Second Half 1 Business Expansion from the Personal Consumption Market to the Business Consumption Market 2 Capturing of the Prepaid Card Market Implementation of Structure for Corporate Sales across the 3 Company 4 Responding to Financing Needs by
Slide 22: Business Expansion from Personal to Business Consumption Market (1)
Business Expansion from the Personal Consumption Market to Payment the Business Consumption Market (1) Card Business New card member acquisition activity ■ Maximization of Number of Newly Issued Cards at “LaLaport Fujimi” opened in April, 2015 ・ Strengthening of sales activities to acquire new custo
Slide 23: Business Expansion from Personal to Business Consumption Market (2)
Business Expansion from the Personal Consumption Market to Payment the Business Consumption Market (2) Card Business ■ Strengthening of new member acquisition activities Creation of the web site linked with apps in both the real channel and internet channel ・ Promotion of higher-class cards of the S
Slide 24: Capturing of the Prepaid Card Market
Capturing of the Prepaid Card Market Payment Card Business ■Establishment of the Company as the No. 1 prepaid card service in Japan ・ Promotion of cashless payment by expansion of the product lineup New Products in FY2015 ◆ First ever in Japan! The “NEO MONEY” with China Union Pay Card brand ◆ “Osai
Slide 25: Implementation of Structure for Corporate Sales across the Company
Solution Implementation of Structure for Corporate Sales across the Company Solution Business ■ Implementation of the corporate sales structure across the company to introduce cashless payment system in the BtoB market. ・ Strengthening of corporate sales activities by increasing personnel in the Cor
Slide 26: Responding to Financing Needs by a Variety of Finance Products (1)
Finance Responding to Financing Needs by a Variety of Finance Products (1) Finance Business [Credit Guarantee] No. of Business Partners (Partners) ■ Strengthening of collaboration with 378 384 387 existing partners 348 367 ・Thorough review and reinforcement of the advantages of the service enabling
Slide 27: Responding to Financing Needs by a Variety of Finance Products (2)
Finance Responding to Financing Needs by a Variety of Finance Products (2) Finance Business [Finance Business] ■ Active promotion of asset formation loans matching market needs ・ Customization of marketability matching market needs and strengthening of support systems through seminars for partner co
Slide 28: Responding to Financing Needs by a Variety of Finance Products (3)
Finance Responding to Financing Needs by a Variety of Finance Products (3) Finance Business [Flat 35] [Lease & Rental] ・Increased screening speed and ・Strengthening of marketing approach to important enhanced service level dealers ・Strengthening of sales activities ・Promotion and enhancement of new
Slide 29: Strategic Expansion of the Internet Business
Strategic Expansion of the Internet Business Internet Internet Business [Data marketing business] ・Expansion of NET member base by promoting the downloads from “Saison Portal” ・Development of new services such as billing operation [Advertisement business] ・Development of new strategic foundation by
Slide 30: Investment in Strategic Ventures Including Fintech
Investment in Strategic Ventures Including Fintech Internet Internet Business Discovery of and collaboration with the venture companies that have cutting-edge technologies or services such as card-less settlement or smartphone settlement, for development of the next age settlement solution. [Samples
Slide 31: Development of Business Foundation in ASEAN Countries (1)
Global Development of Business Foundation in ASEAN Countries (1) Overseas Business Indonesia ・Expansion of prepaid card and point program operations ・In addition to franchising, leasing services of Capital and business tie-up with Pt.Modern the facilities for the owners of the newly Internasional Tb
Slide 32: Development of Business Foundation in ASEAN Countries (2)
Global Development of Business Foundation in ASEAN Countries (2) Overseas Business 天然ガス・ 昆明 Shanghai Taipei Overseas bases Vietanam Saison Consulting Asia strategic partners 石油パイプライ Company Limited Saison Business Consulting台湾 (shanghai) ン South-North Guangzhou China (Shanghai) Economic Corridor Han
Slide 33: (Reference) Comparison of Share for Payment Service Methods in Japan and the U.S.
(Reference) Comparison of Share for Payment Service Methods in Consumer Spending in Japan and the U.S. Japan (FY2014) U.S.A. (FY2013 → FY2018 forecast) ※【ＹｏＹ】 Prepaid card, other Collected from 4.3％ Pay-easy convenience stores (FY2018: 3.4%) 4.2% [0.8p] 3.4% Cash Check Transfer, account [0.2p] 11.8％
Slide 34: (Reference) Domestic Market Share (Shopping Transaction Volume)
(Reference) Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【2014 fiscal year】 Regional banks Aplus 1.5% FC/BC Our Group Other 15.7% Seven Card Service 1.5% 9.4% Epos Card 2.3% Our Company (non-consolidated) 9.6% MI Card 2.3% Joint Venture Card co
Slide 35: Contribution to society ① – Japan's National Soccer Teams
Contribution to society ① – Japan’s National Soccer Teams Japan’s National Soccer Teams 「Nadeshiko JAPAN」 「SAMURAI BLUE」 Supporting 社会貢献 ① サッカー日本代表 33
Slide 36: Contribution to society ② – Social and cultural activities
Contribution to society ② – Social and cultural activities Support of Center for iPS Cell Research and Jose Carreras Akagi Nature Park Application run by Professor Yamanaka Holding in Japan a Managing a forest that brings Contribution to Center of iPS Cell people into contact with nature Research an