Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2015 Earnings Presentation
46 slides from Credit Saison's earnings presentation, May 16, 2016
Slide 1: Management Report FY2015
Management Report FY2015 Davidia involucrate Chinese peony Rhododendron Glaucidium palmatum Credit Saison CO.,LTD 2016. 5. 16 operates a Akagi N a t u r e P a r k . CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA Saison AMEX INTERNET Lineup GLOBAL INNOVATION ◆ FY2015 Highlights Ⅰ. FY2015 Financial Report Ⅱ. Medium-term management plan Ⅲ. Social Contribution Activities This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are not guaran
Slide 3: Main Topics of the 2015 Fiscal Year
Main Topics of the 2015 Fiscal Year Ⅰ. Payment Ⅳ. Finance Card Business Finance Business ■ Increase in Saison American Express® Card ■ Increase in balance of asset formation members to more than 6.5 million loans to more than 100 billion yen ■ Expansion of prepaid card portfolio to total 13 cards (i
Slide 4: I. FY2015 Financial Report
Ⅰ. FY2015 Financial Report 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. Financial Indices / Dividends 2
Slide 5: 1. Financial Results
１. Financial Results (¥Billion) FY2016 FY2014 YoY(%) FY2015 YoY(%) YoY(%) （Estimate） Operating Revenues 259.0 104.6 269.9 104.2 278.0 103.0 Consolidated Ordinary Income 43.6 98.4 43.8 100.3 50.0 114.1 Quarter Net Income 12.6 49.4 26.1 207.2 38.5 147.2 Earnings per Share (¥) 68.77 49.4 147.37 214.3 2
Slide 6: 2. Results by Business Segment
２. Results by Business Segment （¥Billion） Operating revenues Operating income FY2014 FY2015 YoY(%) FY2014 FY2015 YoY(%) Credit Service 199.2 204.2 102.5 15.3 8.2 53.9 Lease 13.9 13.5 97.1 5.9 5.1 86.3 Finance 22.8 27.3 119.8 13.2 15.8 118.9 Real Estate- related 13.0 15.4 118.2 4.5 6.4 142.4 Entertai
Slide 7: 3. Contribution by Consolidated Companies
３. Contribution by Consolidated Companies Ordinary income: Difference between consolidated and non-consolidated figures Non-consolidated Consolidated Difference Contribution to consolidated results Ordinary income ¥32.6 billion ¥43.8 billion 11.1 billion Contribution to Contribution Major consolidat
Slide 8: (Reference) Progress of the Real Estate Business (Atrium Group)
(Reference) Progress of the Real Estate Business (Atrium Group) Restructuring of the company was completed in the end of 2015. The company now aims to contribute to the profit generation of the Group in a stable manner. FY2016 ・ Purchasing of small and medium size real estate and [FY2016 Plan] offer
Slide 9: 4. Main Indices (Non-Consolidated)
４. Main Indices (Non-Consolidated) FY2014 FY2015 FY2016（Estimate） YoY(%) YoY(%) YoY(%) New Applications (millions) 3.00 90.6 3.30 109.8 3.40 103.0 New Card Issued (millions) 2.37 93.6 2.62 110.5 2.70 103.0 Total Cardholders 24.97 25.61 26.92 100.9 102.6 105.1 (millions) （＋0.22） （＋0.64） （＋1.31） Activ
Slide 10: 5-(1) Trends in Credit Business - Shopping -
5-(1) Trends in Credit Business － Shopping － [Transition in Members] [Transition in Transaction Volume] Thanks to strengthening of sales activities to acquire As total numbers of card holders and active new customers at the time of new shop opening of our members increased, we target transaction vol
Slide 11: 5-(2) Trends in Credit Business - Shopping Revolving -
5-(2) Trends in Credit Business － Shopping Revolving－ Scheme to Recommend “Revolving Payment” ■ Transition in Balance Product Lineup (Billion yen) (YoY comparison) “Change to Revolving Payment” after Shopping Balance Revenue (YoY comparison) “Revolving Payment Declaration” to switch all the 400 140%
Slide 12: 5-(3) Trends in Credit Business - Cash Advances
5-(3) Trends in Credit Business －Cash Advances (Separate Account of Saison) Increase in customers using the cash advance service Increase in card loan customers ◆ Increase in customers who wish to have the credit line of 300,000 yen or more on the cash advance ◆ Service for the customers * Ratio of
Slide 13: 6. Credit Risk / Credit Cost
6. Credit Risk / Credit Cost Balancing between risk and profits to meet aggressive sales activity for expansion of the assets including balances of revolving payment and cash advances ■Trends in Credit Risk 6% Delinquency of over 90 days 6% Delinquency of over 90 days (Consolidated) (Non-Consolidate
Slide 14: 7. Interest Repayment Claims
7. Interest Repayment Claims In order to respond to the situation where the number of new claims handled by lawyers and other proxies still hovers at a high level, 15 billion yen was allocated as provision for loss on interest repayment. ■Trends in new claims handled by lawyers and ■Trend of provisi
Slide 15: 8. Financial Indices
８. Financial Indices Consolidated Non-Consolidated Difference Difference Shareholders’ Equity ¥418.7 billion △26.4 ¥359.4 billion △29.0 Total Assets ¥2,550.9 billion ＋177.6 ¥2,468.7 billion ＋180.8 Shareholders’ Equity Ratio 16.4% △2.4% 14.6% △2.4% ROE 6.1% ＋3.2% 6.8% ＋3.2% ROA 1.8% △0.1% 1.4% △0.3%
Slide 16: (Reference) Fund Structure
(Reference) Fund Structure Changes in Interest-bearing Debt (Non-Consolidated) Long-term Ratio : 74％ FY２０１５ bond issue [ Rating ] R&I A+ Fixed Ratio : 64％ total：７５ billion yen July：Issuance volume of 10 billion yen Average Funding Period:３ years Interest rate: ０．１８０％ 1.41% July：Issuance volume of 30
Slide 17: (Reference) Progress Status of Associated Core System Development
(Reference) Progress Status of Associated Core System Development Preparation for the system to be released in the second half of 2016 advanced from the development phase to the test phase. [Purposes of development] ■ Providing 24hours 365days online ■ Aiming at efficiency in developing additional p
Slide 18: II. Medium-Term Management Plan
II. Medium-Term Management Plan ◆ Basic Policy of Medium-Term Management Plan ◆ Medium-Term Management Target ◆ Strategies for Achievement of Medium-Term Management Vision 16
Slide 19: 1. Basic Policy of Medium-Term Management Plan
1. Basic Policy of Medium-Term Management Plan Vision to 2018 Neo Finance Company in Asia - Achievement of Innovation and Change of Business Model - As a “leading-edge service company” , we will continue to offer solutions that best fit customers’ needs and will transform to a company that will be a
Slide 20: 2. Medium-Term Management Vision
2. Medium-Term Management Vision Neo Finance Company in Asia - Achievement of Innovation and Change of Business Model - Leading-Edge Service Company Ⅳ Ⅰ Payment Finance Card Business Finance Business CREDIT AMEX Cards, Prepaid Cards, Eikyufumetsu SAIS N Leasing and Rental, Credit Guarantee, Flat 35,
Slide 21: 3. Task of Achieving New Business Model
3. Task of Achieving New Business Model “Expansion of Settlement Services” to Pursue Customers’ Convenience Expansion of Settlement Services through Credit Cards Prepaid Cards Debit Cards Collaboration with FinTech Companies Settlement with Accumulated Points Smartphone Settlement with Social Securi
Slide 22: 4. Development of Stock Business and Fee Business
4. Development of Stock Business and Fee Business Services for Big Data Business Growing Markets Operation in Asia • Presymptomatic disease / health care • Ad Media Business Increase in related service Vietnam, Indonesia, China • Marketing Support Fee • Medical settlement using electronic receipt Si
Slide 23: 5. Medium-Term Management Target
5. Medium-Term Management Target By “Achievement of Innovation and Change of Business Model” in our Medium-Term Management Vision, we will achieve the goal of “Consolidated ordinary income: 60 billion yen” in FY2018. FY2015 Result FY2018 Target Consolidated ordinary income 43.8 billion yen 60 billio
Slide 24: 6. Transition in Consolidated Ordinary Income
6. Transition in Consolidated Ordinary Income By overcoming all the ongoing business tasks and returning to the growth trend, we will achieve the goal of “Consolidated ordinary income: 60 billion yen” for the first time since 2006. Consolidation of business for UC card members, Consolidated ordinary
Slide 25: 7. Transition in Ordinary Income by Category
7. Transition in Ordinary Income by Category By expanding our core business and creating new business, we will eliminate the factors for income decreases and maintain growth. 60 billion yen Acceleration of business operation in Vietnam and Overseas Business Indonesia, and business investment in the
Slide 26: 8. Capital Policy
8. Capital Policy We will enhance ROE by achieving sustainable growth resulted from strategic investment in Japan and overseas countries, expanding highly efficient business and compressing inefficient assets. Measurement of the future risk caused by profit and loss fluctuation in each business [Ass
Slide 27: 9. Credit Saison Strategic Advantages
9. CREDIT SAISON Strategic Advantages By providing solutions to meet needs of various companies, we will achieve “systematization of business processes,” “streamlining of expense settlement,” “enhancement of employee turnover rate” and “strengthening of sales force.” (1) “Sansan” for cloud business
Slide 28: 10. Credit Saison Alliance Network
10. CREDIT SAISON Alliance Network Financial Business partner institute partners in in lease & Partner companies credit guarantee rental business Human for services and service Network preferential treatment (Personal Branch Finance Connection) Affiliated stores Network Financial Business of credit
Slide 29: 11. Strategies for Achievement of Medium-Term Management Vision
11. Strategies for Achievement of Medium-Term Management Vision STRATEGY Ⅱ STRATEGY Ⅳ Alliance strategy with open innovation Diversified business operation in broad ranges of Asia <Entered markets> 9 Creation of synergy effects through <To be entered> collaboration with FinTech companies 9 Provision
Slide 30: Strategy I: Change of the Business Model in Card Business (1)
< STRATEGY Ⅰ > Change of the Business Model in Card Business (1) We will achieve structural reform of the approach to acquire new card members, while maintaining activities to acquire new cars members, which is our strong point. Strength in real world Activities in real channel (systematization) ＋ a
Slide 31: Strategy I: Change of the Business Model in Card Business (2)
< STRATEGY Ⅰ > Change of the Business Model in Card Business (2) We will increase shopping transaction volume of credit cards by facilitation of cashless settlement and pioneering of new settlement scheme. Facilitation of cashless settlement of personal consumption by an increase in settlement metho
Slide 32: Strategy I: Change of the Business Model in Card Business (3)
< STRATEGY Ⅰ > Change of the Business Model in Card Business (3) We will secure the position as a prepaid card service provider by diversifying the products relating to prepaid cards FY2015 FY2018 Utilizing the position and know-hows as the No.1 prepaid Total issued cards: 30 million Total issued ca
Slide 33: Strategy I: Change of the Business Model in Card Business (4)
< STRATEGY Ⅰ > Change of the Business Model in Card Business (4) We will promote cashless settlement of business expenses and B2B transaction and will conduct multifaceted sales activities by strengthening our corporate sales structure. Expansion of solution portfolio for corporate customers through
Slide 34: Strategy II: Alliance Strategy with Open Innovation (1)
< STRATEGY Ⅱ > Alliance Strategy with Open Innovation (1) In addition to the cash advance service and loan products we have so far promoted, we will seek for new funding services such as a service to purchase future credit receivables (domain beyond the scope of money lending) Domains we have promot
Slide 35: Strategy II: Alliance Strategy with Open Innovation (2)
< STRATEGY Ⅱ > Alliance Strategy with Open Innovation (2) [Examples of Introduced Alliance and Business Partners] Investment in venture funds Capital / business Japan alliance Introduction of × each partner, as well as companies that the funds invest Investment in Subsidiary companies at × seed / ea
Slide 36: Strategy II: Alliance Strategy with Open Innovation (3)
< STRATEGY Ⅱ > Alliance Strategy with Open Innovation (3) Creation of new synergy effects through integration of financing and technology Development of Big Data Foundation and Release of business that provides added value by utilization Operation of Bid Data Business of bid data (from FY2016) Trans
Slide 37: Strategy III: Multidirectional Alliance Derived from Finance Business (1)
< STRATEGY Ⅲ > Multidirectional Alliance Derived from Finance Business (1) Promotion of finance services that overwhelm competitors (capturing of various needs for funding) Task of developing new and diversified Expansion of financial institute partner products network ・Measures to respond to the bu
Slide 38: Strategy III: Multidirectional Alliance Derived from Finance Business (2)
< STRATEGY Ⅲ > Multidirectional Alliance Derived from Finance Business (2) [FY2016 Plan] [Asset Balance of Finance Business] FY2018 Transaction volume: 120 billion yen (+14% YoY) (Billion yen) Flat 35 Asset Balance Goal Lease & Rental Claim balance: 294.4 billion yen (+5% YoY) 1,800 Asset (Including
Slide 39: Strategy IV: Diversified Business Operation in Broad Ranges of Asia (1)
< STRATEGY Ⅳ > Diversified Business Operation in Broad Ranges of Asia (1) 天然ガス・ 昆明 Taipei Overseas bases Local Affiliate Sino-Vietnam 石油パイプライ Expressway Shanghai (Consulting ン company) Taiwan Guangzhou Local Affiliate China (shanghai) Myanmar Hanoi Hong Kong “Saison Business Consulting (Shanghai)” H
Slide 40: Strategy IV: Diversified Business Operation in Broad Ranges of Asia (2)
< STRATEGY Ⅳ > Diversified Business Operation in Broad Ranges of Asia (2) Vietnam Established in May 2015 / Saison’s stake: 49% Singapore Invested in Nov. 2014 / Saison’s stake:15% Joint venture business with HD Bank Capital and business tie-up with “HD SAISON Finance Company” “Matchmove Pay Pte Ltd
Slide 41: Strategy IV: Diversified Business Operation in Broad Ranges of Asia (3)
< STRATEGY Ⅳ > Diversified Business Operation in Broad Ranges of Asia (3) We will promote activities for establishment of the Credit Saison’s Economy Zone in the Asia area. Capturing inbound demand (Navigation of Asian customers to business partners) ASIA Japan Expansion of footprints through joint
Slide 42: (Reference) Share of Payment 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. (FY2014 → FY2019 forecast) ※【ＹｏＹ】 Collected from Prepaid card, other Pay-easy convenience stores 4.1％ （FY2019：3.4％） 4.2% 3.4% [0.8p] [0.2p] Check Transfer, account 10.4％ Cash
Slide 43: (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 44: III. Contribution to society (1)
Ⅲ. Contribution to society (1) Japan’s National Soccer Teams Jose Carreras Akagi Nature Park Supporting company agreement with Holding in Japan a Managing a forest that brings people into contact with nature with its the Japan Football Association to performance by Mr. Jose successive beauties of th
Slide 45: III. Contribution to society (2)
Ⅲ. Contribution to society (2) Support of Center for iPS Cell Research and Contribution to victims of the Great Application run by Professor Yamanaka East Japan Earthquake SAISON CHIENOWA Contribution to Center of Contribution by point The Company released “SAISON iPS Cell Research and CHIENOWA,” cu
Slide 46: memo
memo 46