Credit Saison Co., Ltd. · TSE:8253

Credit Saison — H1 FY2021 Earnings Presentation

46 slides from Credit Saison's earnings presentation, Nov 9, 2021

Slide 1: Financial Results of First Half of FY2021
Financial Results of First Half of FY2021 November 9, 2021 Credit Saison Co., Ltd. confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 1
Slide 2: Agenda
AGENDA ◆ Financial Results of FY2021 1H Financial Policy & Capital Policy Managing Executive Officer and CFO Shingo Baba ◆ Business Strategy for FY2021 2H Representative, Executive President and COO Katsumi Mizuno This report contains forward-looking statements that reflect our plans and expectation
Slide 3: Financial Results of FY2021 1H / Financial Policy & Capital Policy
◆Financial Results of FY2021 1H / Financial Policy & Capital Policy ・Financial Results of FY2021 1H P.4-P.10 ・Financial Policy & Capital Policy P.11-P.14 confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 3
Slide 4: Financial Results Digest
Financial Results Digest • The payment business is still recovering due to the effects of shortened business hours and voluntary restraint on unnecessary outings and travel in order to prevent the spread of the COVID-19 pandemic. • On the other hand, the real estate-related business grew significant
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 > 200.0 50.0 140.3 ＋6% 149.2 40.0 150.0 3.2 (＋37%) ＋23% 35.3 2.3 15.1 (＋100%) 28.7 7.5 30.0 10.1（＋197%） 23.2 (＋8%) 3.4 100.0 21.5 8.9 5.9 5.9 (＋0%) 20.0 9.8（＋10%） 2.4 50.0 2.9（＋21%） 104
Slide 6: Financial Results ② Main Increases/Decreases in Business Profit
Financial Results ②～ Main Increases/Decreases in Business Profit＆Contribution by consolidated companies(IFRS)～ ※( ) =Year-on-year difference Non-Consolidated Consolidated Difference Ordinary income Business profit ¥24.0billion（＋2.41billion） ¥35.3billion（＋6.54billion） ¥11.2billion（＋4.12billion）＜Main
Slide 7: Credit Risk
Credit Risk Delinquency over 90 days remained at a low level. Revised full-year forecast in consideration of credit cost being lower than initially expected. Delinquency over 90 days Delinquency over 90 days (consolidated) 5.0% (non-consolidated) 5.0% 4.0% Credit card Cash advances 4.0% 2.65% 2.63%
Slide 8: Interest Repayment Claims
Interest Repayment Claims Amount of provision reversal trended Review necessity of additional higher than previous year provision after ascertaining future trends ■No. of new claims and price per claim ■Trend of provision balance due to (monthly average) interest repayment losses <Provision reversal
Slide 9: Revised Business Results Forecast for FY2021
Revised Business Results Forecast for FY2021 （non-consolidated_Operating revenue only） (billion yen） Previous forecast Revised forecast Differences (announced in May 14) (announced in November 9) （Ｂ）（Ｂ－Ａ）（Ａ） Net revenue 299.5 299.5 ±0 Consolidated Business profit 52.0 52.0 ±0 Profit attributable t
Slide 10: Main Indices of Payment Business
Main Indices of Payment Business ※( ) =Year-on-year difference Card shopping Card shopping (billion yen) (billion yen) transaction volume Revolving balance 6,000.0 4,946.9 4,954.0 500.0 426.8 4,848.0 388.8 396.0 381.0 （＋3%） 4,500.3 （+10%）（＋1%）（+8%）（+2%）（▲2%）（▲9%）（▲9%） ▲106.0 ▲15.0 3,000.0 250.
Slide 11: 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 composed of long-term funds • Issuance of 20 years bonds, first in card companies • Fixed interest rat
Slide 12: Management indicators & Shareholder returns
Management indicators & Shareholder returns Maintaining and improving financial soundness as a priority, aiming to improve asset efficiency by realizing sustainable growth through strategic investments in Japan and overseas, expanding business with excellent asset efficiency, and reducing inefficien
Slide 13: Status of Shareholder Returns
Status of Shareholder Returns • When the financial crisis triggered by the collapse of Lehman Brothers occurred, the dividend was ＜Basic policy＞ not be reduced even though a loss of ¥55.5 billion was incurred. Maintaining stable payout • Although the announcement of the FY2020 business results forec
Slide 14: Capital policy (Risk capital management)
Capital policy (Risk capital management) • ALM management is introduced to measure risk and allocate risk capital for each business • Profit & loss fluctuation risks are measured by aiming at a confidence level of 99.75% using EaR※ model in order to maintain A+※rating. (※Earnings at Risk) • Re-measu
Slide 16: Diagram of Overall Management Strategy (FY2021)
Diagram of Overall Management Strategy (FY2021) Transforming ourselves into a comprehensive life services corporate group I. Creation of new business (M&A, capital participation, business tie-ups, etc.) Ⅱ. Achievement of customer success through fusion of real and digital Basic Concept Innovative Di
Slide 17: Specific Measures That Credit Saison is Currently Attempting to Implement
Specific Measures That Credit Saison is Currently Attempting to Implement Ⅰ. Domestic Business Payment Finance New Business Re-growth after completing Further expansion of the finance Taking on the challenge of new structural reforms business, which has grown into businesses to create a pillar of (B
Slide 18: Outlook for Business Environment Surrounding the Company
Outlook for Business Environment Surrounding the Company 経済活動を更に後押しする Outlook for final private consumption spending Card shopping・Cash advance transaction イベント（想定） volume (YoY) (Trillion yen) 310 40% 23% 22% 20% 16% Shopping 14% 11% 14% 300 6% 7% 8% 4% 4% 3% 9% 10% 6% 0% 3% 0% -1% 290 -5% -9% -11%
Slide 19: Domestic Business: Payment - SAISON CARD Digital
Digital Ⅰ. Domestic Business Payment Changes in products (BtoC field) Promotion of proper card strategy Utilizing the smartphone self-contained service “SAISON CARD Digital” SAISON CARD Digital（New Proper card） Alliance partners Approx. 150 companies ＜アライアンス先（一例）＞ confidential Copyright © CREDIT SAI
Slide 20: Domestic Business: Payment - Proper card partner apps
Digital Ⅰ. Domestic Business Payment Changes in products (BtoC field) Promotion of proper card strategy Realizing a new partnership style Proper card function partner smartphone apps SAISON CARD Digital × confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 20
Slide 21: Domestic Business: Payment - BtoB products for SMEs
Innovative Ⅰ. Domestic Business Payment Changes in products (BtoC field) Maximize our share of card payments in the Small and Medium Enterprise (SME) market Launch of new products Transaction volume for BtoB products Completion of product lineup for all corporations Remained at a high level approx.
Slide 22: Domestic Business: Payment - Management system and back office efficiency
Innovative Ⅰ. Domestic Business Payment (1) Change the management system (2) Increase efficiency of back office departments East Japan Sales Department Reassignment of personnel to businesses aimed at expanding profits; for example, new processing contracts, new businesses, and the finance business
Slide 23: Expansion of processing revenue by acquiring new contractors
Innovative Ⅰ. Domestic Business Payment Expansion of processing revenue by acquiring new contractors Composition ratio of operating revenue (non-consolidated) Financial revenue, etc. Lease revenue Payment revenue Income from the Business expansion at existing finance business contractors Payment-rel
Slide 24: CSDX VISION
Digital Ⅰ. Domestic Business ＜ Formulated digital transformation strategy "CSDX strategy"＞ CSDX VISION Customer Experience お客様の感動体験を創出する Create a thrilling experience for customers Employee Experience Convert the experience of employees Aim to be a corporation that leads the digital era by using dig
Slide 25: CSDX Strategy
Digital Ⅰ. Domestic Business CSDX Strategy ・ Construct an agile development system ・ Promote the utilization of digital ・ Open innovation strategy Improve customer technology and applications C2 experience (CX) Increase customer satisfaction C1 Business Business co- creation creation Expand use of d
Slide 26: Digital human resources layers
Digital Ⅰ. Domestic Business Layer1 ・ Engineers Core ・ Data scientists digital About 40 people human ・ Cybersecurity resources ・ Designers Study OJT sessions Layer2 ・Generalists + core About 40 people technologies Business digital Internal recruitment 1st Time: October 2020 Employees recruited: appr
Slide 27: Omnichannel communication integrating real and digital
Digital Ⅰ. Domestic Business ＜ Achieve omnichannel communication that integrates real and digital in communication such as contact with customers and sharing of skills/knowledge among employees＞ Maximize customer experiences (CX) Maximize growth experiences (EX) Providing the optimal Digital counter
Slide 28: Domestic Business: Finance
Digital Innovative Ⅰ. Domestic Business Finance Further growth of the finance business that has grown into one of our main businesses Rent Quick Credit Saison's Flat 35 Credit Saison's rent guarantee service Credit Guarantee Striving to become No. 1 Striving to become No. 1 in the industry in the in
Slide 29: Finance business asset balance
Digital Innovative Ⅰ. Domestic Business Finance <Further growth of the finance business that has grown into one of our main businesses> ＜ Asset Balance (including off-balance)＞（(billion yen) 2019 Jun Flat 35 (guarantee-type) 3,000.0 1982 Aug Lease business 2017 Jul 1985 May Credit guarantee busines
Slide 30: Global Business
Global Ⅱ. Global Business India Indonesia Vietnam PT. Saison Kisetsu Saison Finance HD SAISON Modern Finance ビジョン (India) Private Limited Finance Company Ltd. ・Digital lending business ・Retail finance business ・Digital lending / leasing business Thailand China Singapore SIAM SAISON Co., Ltd. Credit
Slide 31: Global Business: Vietnam HD SAISON Finance Company
Global Ⅱ. Global Business Main countries being entered for global business Profit contribution in first half of FY2021: approx. ¥0.2billion Vietnam HD SAISON Finance Company • Expanded credit card business throughout Vietnam in addition to the individual installment and loan business • Despite the i
Slide 32: Kisetsu Saison Finance (India) Private Limited
Global Ⅱ. Global Business Main countries being entered for global business Profit contribution in first half of FY2021: approx. ¥0.2billion India Kisetsu Saison Finance (India) Private Limited ・Started full-scale expansion of affiliated lending from Q2, and acquired an external credit rating (long-t
Slide 33: Saison Capital: Impact financing business
Global Ⅱ. Global Business Increasing lines of business in order to expand global business Singapore Saison Capital < Impact financing business> Transition to full-scale implementation phase • Transition from pilot implementation to full- scale implementation phase • Expand structuring to connect wit
Slide 34: Saison Capital: CVC business
Global Ⅱ. Global Business < Increasing lines of business in order to expand global business> Singapore Saison Capital < CVC business> Discovery of unicorn corporations • Discovery of unicorn corporations in FinTech and adjacent fields regardless of investment method (direct or LP investment) Portfol
Slide 35: Global business roadmap for a third pillar
Global Ⅱ. Global Business Global business roadmap for a third pillar Grow our global business into a third pillar by developing proprietary businesses tailored to each country Overseas segment Profit before tax(billion yen) Company B 100.0 Company A Years since the start of overseas business develop
Slide 36: New Business: For women
Innovative Ⅰ. Domestic Business New Business <Taking on the challenge of new businesses to create a pillar for future profits> For women < July 2021> < October 2021> Supporting women who choose embryo freezing as an initiative for social issues Expand services for women; for such as promoting women'
Slide 37: New Business: For Generation Z
Innovative Ⅰ. Domestic Business New Business ＜ Taking on the challenge of new businesses to create a pillar for future profits＞ For Generation Z < June 2021> < October 2021> Aiming to create new businesses As a platformer for experiential and financial DX businesses that consumption, we aim to impro
Slide 38: New Business: For the elderly generation
Innovative Ⅰ. Domestic Business New Business ＜ Taking on the challenge of new businesses to create a pillar for future profits＞ For the elderly generation < May 2021> < September 2021> Providing information for solving concerns related to life as a whole, with a focus on the categories of money, hea
Slide 40: 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 41: Establishment of Sustainability Committee
Establishment of Sustainability Committee (as of August 2021) Established the Sustainability Committee to strengthen efforts by the entire Credit Saison Group to address social issues through business; for example, supporting TCFD proposals and financial inclusion for the realization of a sustainabl
Slide 42: Environment
environment A one-of-a-kind forest unique Japan, a country with four beautiful seasons. We pray for the happiness of today's children, their children, and all children in future generations. Instead of simply planting flowers, we started by creating an environment for cultivating flowers. This uniqu
Slide 43: Society
society ■Education for the Next-Generation andFinancial Education ■ Supporting company of Japan’s National Soccer Teams 「Business trip class ～SAISON TEACHER～」 Hold financial education for children to acquire correct financial knowledge ■Diversity, Equity & Inclusion ※2020 results ＜Ratio of Women emp
Slide 44: Comprehensive renewal of corporate/IR website
Reference : Information on Corporate/IR Website and Integrated Report Comprehensive renewal of corporate/IR website with the aim of strengthening contents and improved usability (March 31, 2021) confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 44
Slide 45: Issuance of integrated report
Reference : Information on Corporate/IR Website and Integrated Report Issuance of integrated report to enhance disclosure of financial and non-financial information (first edition issued in March 2020） Credit Saison Integrated Report 2020 (issued in December 2020) For the first time, received the Br

Credit Saison — H1 FY2021 Earnings Presentation on 6ix

Credit Saison — H1 FY2021 Earnings Presentation

Slide 1: Financial Results of First Half of FY2021

Slide 2: Agenda

Slide 3: Financial Results of FY2021 1H / Financial Policy & Capital Policy

Slide 4: Financial Results Digest

Slide 5: Financial Results ① Results by Business Segment (IFRS)

Slide 6: Financial Results ② Main Increases/Decreases in Business Profit

Slide 7: Credit Risk

Slide 8: Interest Repayment Claims

Slide 9: Revised Business Results Forecast for FY2021

Slide 10: Main Indices of Payment Business

Slide 11: Financial Policy (Structure of Interest-bearing Debt)

Slide 12: Management indicators & Shareholder returns

Slide 13: Status of Shareholder Returns

Slide 14: Capital policy (Risk capital management)

Slide 15: Business Strategy for FY2021 2H

Slide 16: Diagram of Overall Management Strategy (FY2021)

Slide 17: Specific Measures That Credit Saison is Currently Attempting to Implement

Slide 18: Outlook for Business Environment Surrounding the Company

Slide 19: Domestic Business: Payment - SAISON CARD Digital

Slide 20: Domestic Business: Payment - Proper card partner apps

Slide 21: Domestic Business: Payment - BtoB products for SMEs

Slide 22: Domestic Business: Payment - Management system and back office efficiency

Slide 23: Expansion of processing revenue by acquiring new contractors

Slide 24: CSDX VISION

Slide 25: CSDX Strategy

Slide 26: Digital human resources layers

Slide 27: Omnichannel communication integrating real and digital

Slide 28: Domestic Business: Finance

Slide 29: Finance business asset balance

Slide 30: Global Business

Slide 31: Global Business: Vietnam HD SAISON Finance Company

Slide 32: Kisetsu Saison Finance (India) Private Limited

Slide 33: Saison Capital: Impact financing business

Slide 34: Saison Capital: CVC business

Slide 35: Global business roadmap for a third pillar

Slide 36: New Business: For women

Slide 37: New Business: For Generation Z

Slide 38: New Business: For the elderly generation

Slide 39: Sustainability related information

Slide 40: Basic approach to Sustainability

Slide 41: Establishment of Sustainability Committee

Slide 42: Environment

Slide 43: Society

Slide 44: Comprehensive renewal of corporate/IR website

Slide 45: Issuance of integrated report

Slide 46: Memo