Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2021 Earnings Presentation
50 slides from Credit Saison's earnings presentation, May 13, 2022
Slide 1: Financial Results Briefing of FY2021
Financial Results Briefing of FY2021 May 13, 2022 Credit Saison Co., Ltd.
Slide 2: Agenda
AGENDA ◆ Financial Results of FY2021/ Business Results Forecast for FY2022 Financial Policy & Capital Policy Managing Executive Officer, CFO Shingo Baba ◆ Mid-term Management Plan Representative, Executive President and COO Katsumi Mizuno ◆ Sustainability-related information This report contains for
Slide 3: Financial Results of FY2021 / Business Results Forecast for FY2022 / Financial Policy & Capital Policy
Financial Results of FY2021/ Business Results Forecast for FY2022 Financial Policy & Capital Policy 3
Slide 4: Financial Results Digest
Financial Results Digest ・Although the COVID-19 pandemic had an impact, real estate-related business grew significantly in response to factors such as the contracture of the previous fiscal year. However, provision for loss on interest repayment was increased by 13.6 billion yen in consideration for
Slide 5: Financial Results ① Results by Business Segment (IFRS)
Financial Results ① ～ Results by Business Segment(IFRS) ～ (billion yen) (billion yen) <Net revenue> <Business profit> 350.0 70.0 Over 65.0 In the case of excluding 299.0 282.6 ＋6% special factors 300.0 60.0 ＋8% 52.3 5.5 6.4（＋16%） 50.0 48.3 0.2（－） 250.0 14.5 22.7（＋56%） 5.3 12.3（＋129%） 200.0 40.0 43.4
Slide 6: Financial Results ②
Financial Results ② ～ Main Increases/Decreases in Business Profit & Contribution by consolidated companies(IFRS) ～ ※( ) =Year-on-year difference Non-Consolidated Ordinary income Consolidated Business profit Difference ¥30.4billion（▲¥7.60billion） ¥52.3billion（＋¥3.98billion） ¥21.9billion（＋¥11.58billio
Slide 7: Credit Risk
Credit Risk Delinquency over 90 days remained at a low level. Allocation of additional provision for loss on interest repayment with the future in mind. （Consolidated:¥13.6billion / non-consolidated:¥12.7billion） Delinquency over 90 days Delinquency over 90 days (consolidated) 5.0% (non-consolidated
Slide 8: Interest Repayment Claims
Interest Repayment Claims Looking ahead to the future, The number of new overpayment Similar trends are now expected provision for loss on interest items and the total amount exceeded levels in the previous year, diverging to continue for the foreseeable repayment has been increased future. (consoli
Slide 9: Business Results Forecast for FY2022
Business Results Forecast for FY2022 Increased revenue and income expected for both consolidated and single-year figures. （ billion yen ） ＜MAIN INCREASES/DECREASES IN BUSINESS PROFIT＞ Fiscal 21 Fiscal 22 12.7 1.4 Actual Estimate Differences 8.3 （Ｂ－Ａ） Increased （Ａ） （Ｂ） credit costs Non- 3.2 Consolida
Slide 10: Financial Policy (Structure of Interest-bearing Debt)
Financial Policy (Structure of Interest-bearing Debt) ■About a sound financial base ■Regarding structure of interest-bearing debt • Credit Rating R&I A+ • Almost 70% of the interest-bearing debt is • Issuance of 20 years bonds, first in card companies composed of long-term funds • Fixed interest rat
Slide 11: Fundamental Capital Policy
Fundamental Capital Policy Soundness Growth ・Use appropriate risk capital management to ・In preparation for shifting to a comprehensive elevate financial soundness (credit rating A+) lifestyle service group, carry out investments ・Revise risk capital allocation model based on such as in new partners
Slide 12: Shareholder returns policy
Shareholder returns policy ＜Shareholder Returns Policy＞Stable and Continuous Dividends （単位：円） With additional allocations for provision for loss on interest repayment （Dividend （Dividend per While continuing to aim for business profit of 70 billion payout ratio） excluded, actual business profit was
Slide 13: Transforming into a Comprehensive Lifestyle Services Group
Transforming into a Comprehensive Lifestyle Services Group Medium-term management plan FY2022-2024 13
Slide 14: Table of Contents
Table of Contents 1. Medium-term Management Vision 2． Growth Strategy / Reinforcement of Business Foundation 3． Quantitative Goals 14
Slide 15: 1. Medium-term Management Vision
１．Medium-term Management Vision 15
Slide 16: Transforming into a Comprehensive Lifestyle Services Group
Medium-term Management Vision 『Transforming into a Comprehensive Lifestyle Services Group』 ~Achieving Customer Success through the Fusion of Real Life and Digital Technology~ 16
Slide 17: Core Concepts
Core Concepts Continue with the three concepts up until now, accelerating their penetration and drive within each business. Digital Innovative Global By promoting digital conversion in With all kinds of problems as Use financial services as a method combination with real-life, change starting points
Slide 18: 2. Growth Strategy / Reinforcement of Business Foundation
２．Growth Strategy / Reinforcement of Business Foundation 18
Slide 19: Growth Strategy Framework
Growth Strategy Framework ① Establishment of the “Saison Partner Economic Zone” and reinforcement of business coordination among the Group ② Revitalization of payment business ③ Promotion of healthy growth and expansion into new fields for finance business ④ Acceleration of global business expansion
Slide 20: Approach Policy for Target Customer Demographics
Approach Policy for Target Customer Demographics ※ Individuals SME / Corporations In addition to stable income in the medium-term, individuals should In comparison to individuals, there is much more room for cashless secure a long-term source of income and think of the important transaction growth i
Slide 21: Establishment of the Saison Partner Economic Zone
Growth Strategy① Establishment of the “Saison Partner Economic Zone” and reinforcement of business coordination among the Group Wealthy Real estate Real estate Real estate customers sales introductions investment Social contribution Securities Overseas Banking Transportation accounts business 日本白血病研
Slide 22: Provision of Comprehensive Value Through Enhanced Business Coordination Within the Group
Provision of Comprehensive Value Through Enhanced Business Coordination Within the Group Value provided up until now Value provided from now on New business investment Personnel Credit Saison Co.,Ltd. Real estate related Debt collection Value provided by Value provided by the Credit Saison alone Cre
Slide 23: Creating Value Through Synergy of Group Companies and Internal Businesses
Creating Value Through Synergy of Group Companies and Different Internal Businesses Synergy of Group Companies Synergy of Different Internal Businesses Combination Credit Asset Credit Asset Credit seniors Finance cards management cards management cards Services Provided 開始済 開始済 開始済 金融商品仲介 カード利用 資産づく
Slide 24: Revitalization of Payment Business - AMEX Strategy
Growth Strategy② Revitalization of payment business－ AMEX Strategy Creating a new model with “AMEX Strategy” that aims to establish the new image and products of cards with higher status called SAISON AMEX and “New GOLD Card Strategy” that promotes their usage as main cards at the core. AMEX Strateg
Slide 25: Promote AMEX Strategy, Aiming for 3 Trillion Yen
Promote AMEX strategy, aiming for total shopping transaction value of 3 trillion yen for Credit Saison’s proprietary AMEX brand Share of the Company’s shopping transaction Planned transaction volume for Credit value by brand Saison AMEX brand shopping AMEX brand became NO.1 in monthly transaction vo
Slide 26: New GOLD Card Strategy
Growth Strategy② Revitalization of payment business－New GOLD Card Strategy Future development that ”New Royalty Service” was added to our strength, wide-ranging alliances The Company Strength Promoting everyday usage (Increase of operating unit price) Why SAISON? Unified royalty services for Saison
Slide 27: Promote Cards as Main Card with New Royalty Service
Promote cards to be used as a main card with the new royalty service “New GOLD Card” The future of Credit Saison Combining the special feeling of gold + benefits that make you want to use it day-to-day to create a product customers will choose for their main card. SAISON GOLD Premium Main benefits [
Slide 28: Expansion of Business in the BtoB Field
Growth Strategy② Revitalization of payment business － Expansion of Business in the BtoB Field Invest in the BtoB field with a focus on “non-card payment,” “SME channel strengthening,” and “enhancement of customer communication” themes, striving for expanded market share. Product Channel Sales [Expan
Slide 29: Promotion of Healthy Growth and Expansion into New Fields for Finance Business
Growth Strategy③ Promotion of healthy growth and expansion into new fields for finance business Using division of roles which leverages the strengths of Group companies with real estate related businesses, cover the market.Active promotion of a balance of “opportunity” and “risk” in real estate fina
Slide 30: Acceleration of Global Business Expansion
Growth Strategy④ Acceleration of global business expansion Aim to achieve financial inclusion through lending business targeting underserved demographics, with investment projects for promising startups all over the world as the core Lending Business Investment Business Provide digital, localized fi
Slide 31: International Headquarters in Singapore and Global Expansion
In addition to promoting profitability through proactive investment in core business, Credit Saison established an international headquarters (IHQ) in Singapore as a foundation for supporting business expansion, creating an organization and framework for competitive global operations. Expanding lend
Slide 32: Reinforcement of Business Foundation: Digital Strategy
Reinforcement of Business Foundation① Digital Strategy「 」 Digital Transformation (DX) to Improve CX (Customer Experience) and EX (Employee Experience) Constructing a dynamic development framework through area division insourcing using bimodal strategy and increased numbers of employees with digital
Slide 33: Reinforcement of Business Foundation: Branding Strategy
Reinforcement of Business Foundation② Branding strategy By raising customer recollection rates, promote mutual use of Group company services among customers Creating impressions: Unify the “Saison・Marketing” “When it comes to xx, I recollect Saison” world in the Group as a whole － Saison・Marketing－
Slide 34: Strengthen Personnel Capability to Support Business Growth
Reinforcement of Business Foundation③ Strengthen Personnel capability to Support Business Growth Implement personnel system revision and in-house recruitment measures such as professionalization of employees Professionalization of employees Promote mid-career hiring and re-skilling to achieve the de
Slide 35: 3. Quantitative Goals
３．Quantitative Goals 35
Slide 36: Business profit target
Business profit target ＜ By major business＞Business profit target（Approximate value） （billion yen） 80.0 Over about 70.0 70.0 30 % Consolidated 60.0 Contribution 52.3 53.0 24.0 50.0 Consolidated Consolidated 18.4 Contribution Contribution 40.0 21.9 16.0 3.5 30.0 non- consolidated 12.2 46.0 20.0 non-
Slide 37: Main Indices of Management indicators
Main Indices of Management indicators Medium- to long-term Shareholders' Equity Ratio:About15% → Progression following indicators management goals ROE :Over10% → The goal in this medium-term (up to FY24) is around 8% We aim for achievement in the next medium-term （yen） and beyond (FY25 or later) 500
Slide 38: Global business Business profit target
Global business Business profit target Accumulated profit for each country’s business （billion yen） 8.0 7.0 7.0 6.0 About 5.0 Twice 4.0 3.5 3.0 2.0 1.0 0.0 FY21 FY22 FY24 Lending Business Investment Business （India、Vietnam、Indonesia、Thailand） （Singapore） 38
Slide 39: Main Indices of Payment Business
Main Indices of Payment Business New card issuances (million) Total cardholders Active cardholders (million) (million) 3.00 30.00 20.00 2.50 25.40 25.60 26.50 16.00 13.89 14.81 2.10 2.00 20.00 1.52 10.00 1.00 10.00 0.00 0.00 0.00 FY21 FY22 FY24 FY21 FY22 FY24 FY21 FY22 FY24 Card shopping Card shoppi
Slide 40: Lease / Finance Related business Product balance Target
Lease / Finance Related business Product balance Target （billion yen） 4,000.0 About 3.8trillion yen About 3,500.0 40 % 3,000.0 About 2.7trillion yen 2,500.0 2,000.0 1,245.3 1,500.0 1,000.0 754.9 142.1 500.0 220.2 328.4 0.0 FY21 FY22 FY24 Lease Credit Guarantee Housing-loan Guarantee Rent Guarantee A
Slide 41: Main Indices of Global business
Main Indices of Global business Kisetsu Saison Finance（India） HD Saison Finance（Vietnam） Saison Modern Finance（Indonesia） Outstanding loans Outstanding loans Outstanding loans （billion yen） （billion yen） （billion yen） 2000 200.0 1,000 100.0 200 20.0 100.0 1000 500 50.0 100 10.0 0 - - FY21 FY22 FY24
Slide 42: Sustainability related information
Sustainability related information 42
Slide 43: Basic approach to Sustainability
Basic approach to Sustainability Based on our “leading-edge service company” management philosophy, we contribute through the everyday operation of our businesses to resolving problems and move society forward in ways only Credit Saison can by leveraging our unique knowhow, management resources, and
Slide 44: Report on the activities of the Sustainability Promotion Committee
Report on the activities of the Sustainability Promotion Committee Structure of Sustainability <First Endorsement of the “EARTH HOUR 2022” Promotion Committee Environmental Enlightenment Event Hosted by WWF> Board of Directors Participated in “60 traveling pandas” (event awareness activity) Regula
Slide 45: Compliance with TCFD Recommended Information Disclosure Items
environment Compliance with “TCFD Recommended Information Disclosure Items” Issued a statement of endorsement for the “Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations” Joined the “TCFD Consortium,” an organization made up of domestic companies endorsing the recommendations
Slide 46: What can a credit card company do for the Earth?
environment What can a credit card company do for the Earth? Utilizing a mechanism for visualization of CO2 emissions volume from card payment data, Credit Saison supports customers in achieving a carbon neutral lifestyle × × image SAISON CARD Digital for becoz Scheduled to start service in June 202
Slide 47: Environmental Conservation Through Operation of Akagi Nature Park
environment Environmental Conservation and Social Initiatives Through the Operation of Akagi Nature Park With the theme of “coexistence of humanity and nature” and the concept of providing lush natural scenery to pass on to future children, Credit Saison has been operating Akagi Nature Park in Gunma
Slide 48: Diversity, Equity, and Inclusion
society Diversity, Equity, and Inclusion Currently (from September, 2017) ■New personnel system revisions Since 1980s, Credit Saison has promoted the proactive hiring, enabled female employees to work in a diverse range of positions and posts, and set various systems in place for helping employees t
Slide 49: Reference: Information on Corporate/IR Website and Integrated Report
Reference : Information on Corporate/IR Website and Integrated Report Issuance of integrated report to enhance disclosure of financial and non-financial information For the first time, received the Bronze Prize, 「Credit Saison Integrated Report 2021」 at the International ARC Awards 2021, (Issued in
Slide 50: Reference: Major External Certifications
Reference : Major External Certifications GPIF-adopted ESG index for status of GPIF-adopted ESG index for companies Ministry of Economy, Trade and Industry certification Project sponsored by information disclosure and carbon efficiency with superb gender diversity system based on the “Act on Facilit