Slide 1: FY2011 2nd Quarter Management Report
Credit Saison is the official Sponsor of National Football Team FY2011 2nd Quarter 2011. 11. Management 10 Report
Slide 2: Agenda
AGENDA ◆ FY2011 First Half Business Highlights ◆ FY2011 First Half Financial Report ◆ Medium-Term Management Strategy/ Priority Policies, FY2011 Second Half ◆ Current State of the Domestic Card Market (Reference Material) This report contains forward-looking statements that reflect our plans and exp
Slide 3: Main Topics of the First Half of 2011 Fiscal Year
Main Topics of the First Half of 2011 Fiscal Year April ・ Split Sogo・Seibu Card business to Seven CS Card Service Co., Ltd. June ・ Start of issuing prepaid cards, “NEO Money”, specialized in overseas use by foreign travelers. ・ Start of service alliance with “Expedia”, one of the largest online trav
Slide 4: FY2011 First Half Financial Report
FY201１ First Half Financial Report 1. Financial Results 2. Revision of Full Year Financial Forecasts 3. Results by Business Segment 4. Contributions by Consolidated Companies 5. Main Indices (Non-Consolidated) 6. Influence of Split of Seven CS Card Business 7. Cash Advances 8. Credit Risks (Uncollec
Slide 5: 1. Operating Results
1. Operating Results (¥ billion) FY2010 FY2011 FY2011 nd YoY (%) nd YoY (%) YoY (%) 2 Quarter 2 Quarter (Estimate) Operating 145.2 92.7 127.5 87.8 257.0 90.0 Revenues Consolidated Ordinary 17.6 92.0 24.9 141.7 42.5 125.9 Income Quarter Net 9.9 115.1 17.5 175.7 25.0 194.9 Income Earnings per 54.27 11
Slide 6: 2. Revision of Full Year Financial Estimate
2. Revision of Full Year Financial Estimate (Unit: billion Yen) Initial Estimate New Estimate Difference Reasons for the (Published on (B) (B-A) revision May 14) (A) Operating 261.0 257.0 (4.0) ・Profit from card shopping Consolidated Revenues fell below the plan due to the Ordinary earthquake. Incom
Slide 7: 3. Results by Business Segment
3.Results by Business Segment (¥ billion) Operating Revenues Operating Income FY2010 FY2011 FY2010 FY2011 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 118.0 99.9 84.6 6.9 14.2 204.5 Lease 7.2 7.3 102.1 2.5 1.8 74.1 Finance 7.8 7.6 97.5 3.2 3.5 109.1 Real Estate- rel
Slide 8: 4. Contribution to Consolidated Results
4.Contribution to Consolidated Results Ordinary Ordinary income: income: Difference Difference between between Non- Non-consolidated Consolidated Difference consolidated consolidated and and non- non -consolidated figures non-consolidated figures Ordinary ¥20.2billion ¥24.9billion ¥4.7 billion incom
Slide 9: (Reference) Progress of Atrium Reorganization Plan
(Reference) Progress of Atrium Reorganization Plan ・ Enforce purchase of small properties and improve the portfolio of the assets steadily ■1st Half Business Results ・ Realization of sales of the real estates for 12.9 billion yen (214 units) centered on small / medium size properties. ・ Large size p
Slide 10: 5. Main Indices (Non-consolidated)
5. Main Indices (Non-consolidated) FY2010 FY2011 FY2011 2nd Quarter YoY (%) 2nd Quarter YoY (%) (Estimate) YoY (%) New Applications (millions) 1.40 89.7 1.23 87.8 2.60 101.2 New Card Issued (millions) 1.11 85.1 0.93 83.8 2.10 99.0 Total Cardholders 28.38 24.89 25.6 (millions) 100.3 87.7 90.3 (+0.09)
Slide 11: 6. Effects of the Split of the 7CS Card
6. Effects of the Split of the 7 CS Card Contributions from the 7CS card business to consolidated profit is expected in medium term. ■ Card transaction volume and balances excluding the effects of the split of the 7CS card (Unit: billion Yen, %) FY2011 FY2011 2nd Quarter YoY(%) （Estimate） YoY(%) Car
Slide 12: (Reference) Share of Cards
（Reference）Share of Cards The transaction volume per card for premium cards is 4 times that of the other cards. 【Share of Total Cardholders】 【Share of Shopping Premium 4.5% Transaction Volume】 Saison Premium Saison MMC Proper 16.5% Proper 10.2% 18.8% 20.2% LABI MMC 9.3% 10.0% NEXT NEXT 6.4% 6.3% PAR
Slide 13: 7. Trends of the Cash Advance Business
7. Trends of the Cash Advance Business Effect of total lending restrictions was relaxed and transaction volume/balance diminution tended to slow The cash advance transaction volume in September was minus 12% YoY, the balance was minus 27% YoY ■ Transaction volume transition ■ Balance change (Billion
Slide 14: 8(1) Forecast for claims handled by lawyers
8(1) Forecast for claims handled by lawyers Monthly number of new claims handled by lawyers decreased more than half year on year. ■ Trends in new interest repayment of claims handled by lawyers No. of new cases YoY% 6,000 New claims handled 30 by lawyers YoY 20 5,000 10 0 4,000 △10 3,000 △20 △30 2,
Slide 15: 8(2) Delinquency ratio/Credit cost/Provision for loss on interest repayment
8(2) Delinquency ratio/Credit cost/Provision for loss on interest repayment Credit cost decreases by 24% from the original plan due to improvement of assets quality. ■Delinquency ratio (over 90 days) ■Credit cost results and estimate (Unit: billion yen) 5.39% 5.41% Cash Advances 2nd Full Year Estima
Slide 16: 9. Financial Indices
9. Financial Indices Improve asset efficiency and the shareholders’ equity ration rises to 16.5% (¥ billion) Consolidated Non-consolidated change from change from end of FY2010 end of FY2010 Shareholders’ Equity 356.5 +11.3 327.6 +7.3 Total Assets 2,159.5 (71.7) 2,055.6 (42.1) Shareholders’ Equity R
Slide 17: (Reference) Fund Structure
(Reference) Fund Structure (Unit: billion yen) 【Consolidated】 【Non-consolidated】 Total Balance: Total Balance: 1,498.8 1,448.3 Corporate Corporate bonds bonds 225.9 225.0 CP 103.0 CP 103.0 Liquidation of receivables Debts Liquidation of 138.2 1,031.7 receivables Debts 138.2 982.1 Long Term Ratio：78%
Slide 18: 10. Effect on Operations/Claims by the Earthquake
10. Effect on Operations/Claims by the Earthquake Card use normalized in June, and the occurrence of risk monitored loans was also negligible. ■ Shopping transaction volume trend in the ■ Credit risk situation of the disaster area disaster area % Card initial payment rate Sh opping transac tion volu
Slide 19: Business Strategy
Business Strategy Ⅰ．Medium-Term Strategy, Competitive advantages and characteristics of our company Ⅱ．Priority Policies, FY2011 Second Half CORPORATE STRATEGY ２０１1 CREDIT SAISON CO., LTD. 17
Slide 20: Medium-Term Strategy ~ Collaborative Management ~
Medium-Term Strategy ～ Collaborative Management ～ Development of Saison Environment conservation American Express Card supporting sports channel and cultural activities Akagi Nature Park Companies with affluent Japan Football Association etc. customer base Grow to be the Strategic Investment Partner
Slide 21: Medium-Term Strategy ~ Overthrow of a cash settlement is our main subject ~
Medium-Term Strategy ～Overthrow of a cash settlement is our main subject ～ （１） Expansion of Operating revenue ～ Strengthen the business to expand market share ～ ① Create card development channels by using the new SAISON AMERICAN EXPRESS CARD as a strategic advantage. ② Establish settlement platform
Slide 22: Competitive advantages and characteristics of our company
Competitive advantages and characteristics of our company (1) Customer base of 36 million people (4) AMEX Brand Creditability with 35.3 million people with two Utilization of domestic exclusive service rights of brands of SAISON and UC including agency four kinds of high status "AMEX brand" cards se
Slide 23: Action Plans for the second half of 2011 (1) Saison American Express Card
Action Plans for the second half of 2011(1) Saison American Express® Card Expansion of the customer base by new card cultivation channel development ■ First half results ・Expansion of the AMEX brand share New card issuance share 46% (YoY+22%) ・New service affiliation of AMEX card Expedia, Regus, PAR
Slide 24: New Services/Additional Privileges
New Services/Additional Privileges PLATINUM GOLD Annual fee: Annual fee: 21,000 yen 10,500 yen * Main privileges of the Platinum card/Gold card - Priority pass : free registration (usual annual fee is 399 U.S. $) (Platinum),registration (Platinum),registration system (separate expenses to be paid) (
Slide 25: Action Plans for the second half of 2011 (2) Net Business
Action Plans for the second half of 2011 (2) Net Business Expansion of the fee business by "existing business cultivation" and "new business development” ■ Expansion of Internet card holders/Web billing ・ Acquire by applying at the same time as when applying for a new card ・ Establishment of registr
Slide 26: Concept Diagram of Internet-Based Business
Concept Diagram of Internet-Based Business Use points Appropriation for shopping payment exclusive internet items Permanently usable points settlement etc. 収益拡大 Expansion of profits Cost reduction Net members ・Affiliate revenue ・WEB billing ・Sale of marketing date / Information magazine ・Advertising
Slide 27: Action Plans for the second half of 2011 (3) Development of New Products/Services
Action Plans for the second half of 2011(3) Development of New Products/Services Establishment of settlement platform based on credit cards ■ Strengthening of China Union Pay acquiring ・ Propose the introduction of China Union Pay to close clients issuing affiliated credit cards with high activity r
Slide 28: Action Plans for the second half of 2011 (4) Financial Business: Loan enterprise
Action Plans for the second half of 2011(4) Financial Business Loan enterprise: Strengthening of profits by expansion of “flat 35” ■Strengthening of flat 35 sales billion ・ Coordinated strengthening with large real estate yen companies ・ Acquisition of house offers using bridge financing and expansi
Slide 29: Action Plans for the second half of 2011 (4) Financial Business: Credit guarantee
Action Plans for the second half of 2011 (4) Financial Business Credit guarantee business: Promotion of guaranteed products for individual business owners ■Setting of guarantee fee rate based on the credit level of the customer ■Strengthening of the new affiliation approach to credit unions ・Stickin
Slide 30: Action Plans for the second half of 2011 (5) Transformation of the structure of the enterprise
Action Plans for the second half of 2011 (5) Transformation of the structure of the enterprise Thoroughly eliminate waste, and realize better-than-planned cost reductions ■ Reduce utility expenses with power saving measures and promote business optimization ■ Promote Web billing according to the exp
Slide 31: (Reference) Overview of card market
（Reference）Overview of card market [ FY2010 ] Card Members Card shopping transaction volume JCB JCB Diners Diners 3.3% 0.3% China Union Pay 1.7% 0.5% China Union Pay 7.7% 11.8% AMEX AMEX 13.9% 4.7% Visa Visa 45.0% 45.7% MasterCard MasterCard 34.9% 30.5% （Unit: Dollars） Visa Master AMEX Union Pay JCB
Slide 32: (Reference) Current status of settlement methods in Japan
(Reference) Current status of settlement methods in Japan ＜ 2009 ＞ Amount of currency circulating for 280. 3 trillion yen （nominal） major countries （as of the end of 2009） ※Conversion rate （end of 2009） ：1 dollar ＝92.43 yen Amount of Prepaid/ Convenience store/ currency Circulation COD 2.6% amount p
Slide 33: Reorganization of the Domestic Credit Card Industry
Reorganization of the Domestic Credit Card Industry Mizuho Credit Saison Resona Sumitomo Mitsui ＦＧ ＦＧ ＨＤ Mitsui Sumitomo Card Cedyna Orico Resona Japan Post Bank Card Idemitsu Takashimaya Yamada Shizugin Credit Credit Financial Saison Card Pocket Famima Card Credit Aeon Seven Card Daiwa House YM Ser
Slide 34: Domestic market share (shopping transaction volume)
Domestic market share (shopping transaction volume) ■ Card shopping transaction volume (issuer base) [2010 fiscal year] FC and BC of Seven Card Service 1.5％ regional banks Our company G 5.9％ 16.5％ APLUS 1.7％ Other MI Card 2.0％ 3.4％ Our company Non-consolidated Rakuten KC 3.2％ 12.4％ Joint Venture Car
Slide 35: FY2011 Operation Overview
FY2011 Operation Overview Based on trends in visitors during the previous year, we have changed the days on which the park is open to spring, summer and autumn. This schedule is in conjunction with peak periods in nature, and will allow more people to enjoy beautiful and rich nature. Cooperation fro