Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2024 Earnings Presentation
55 slides from Credit Saison's earnings presentation, May 15, 2025
Slide 1: Financial Results Briefing of FY2024
Financial Results Briefing of FY2024 May 15, 2025 Tokyo Stock Exchange Prime Market, Securities Code: 8253
Slide 2: Key Points
Key Points FY24 Results Consolidated operating profit reached a record high* ✓ Consolidated business profit of 93.6 billion yen / 9.4% ROE ✓ While these figures include special factors such as the reversal of the special allowance, the actual values also reached record highs, indicating improved ear
Slide 3: Agenda
AGENDA 01 Main Business Strategies Global Business P.7-13 Finance Business P.14-17 Payment Business P.18-24 Vision for the Credit Saison Group 02 Toward becoming a GLOBAL NEO FINANCE COMPANY P.25-34 Capital Policy 03 Capital Policy Progress, and Shareholder Returns P.35-37 FY24 Full-Year Financial R
Slide 4: FY24 Financial Results Digest
FY24 Financial Results Digest Net revenue 422.8 YoY 116.9％ billion yen FY24 Consolidated Business profit 93.6 YoY 130.1％ billion yen results Profit attributable to 66.3 YoY 91.0％ owners of parent billion yen ✓ Overall performance was driven by our three core segments – Global, Finance, and Payment ✓
Slide 5: FY24→FY25 Main Factors Behind Changes in Business Profit by Segment
FY24→FY25 Main Factors Behind Changes in Business Profit by Segment 93.6 * billion yen Global 96.0 * billion yen India continued to be the overall Entertainment 1.4 84.0 * billion yen driver, On the other hand, the 1.3 Global Real 3.3 1.4 impact of the rebound from valuation losses in the investment
Slide 6: 01. Main Business Strategies
01．Main Business Strategies © 2025 CREDIT SAISON CO., LTD. 6
Slide 7: Global Business
Global Business Medium-Term Management Plan: Key Theme Expansion of the India Business and Evolution of Global Expansion FY24 Review +7.6 billion yen India continued to be the overall driver, Our core lending business grew steadily. Business profit On the other hand, the impact of the came in at 3.3
Slide 8: Credit Saison India: Receivable Balance
Credit Saison India : Receivable Balance ✓ Steady growth in receivable balance while adopting a risk control-oriented strategy centered on direct lending ✓ In FY25, we aim to expand the business by continuing to enhance credit accuracy and driving growth through direct lending approx. 240.0 (billion
Slide 9: Credit Saison India: Business Models
Credit Saison India : Business Models ✓ Reducing credit costs by setting collateral for receivables and utilizing guarantee schemes with partners Wholesale Partnership Embedded Branch Business model finance lending lending lending Unsecured Secured Loans through tech enabled Loans to local Loans thr
Slide 10: Credit Saison India: Risk Management
Credit Saison India : Risk Management ✓ To strengthen direct lending, we are building more robust credit models and continuously improving their accuracy ✓ In FY24, we focused on improving the quality of receivables by writing off a portion of individual receivables and revising credit policies GNPA
Slide 11: Credit Saison India: Further Diversifying Funding Sources
Credit Saison India : Further Diversifying Funding Sources ✓ In addition to borrowing from 40 financial institutions, including top domestic and international banks, as well as bond and commercial paper issuance, in March of this year, we began borrowing through an ECB loan, thereby advancing the di
Slide 12: Credit Saison Brazil: Aiming to Become the Next India
Global Credit Saison Brazil : Aiming to Become the “Next India" ✓ We are steadily expanding loan balances by developing a BtoBtoC lending model through partnerships with local fintech companies and broadening the scope of target sectors ✓ Looking ahead, we aim for Credit Saison Brazil to become a se
Slide 13: HD Saison Vietnam / Commitment to Impact
HD Saison Vietnam／Commitment to Impact HD Saison Finance Sustainability（Social Impact） ✓ New loan are steadily expanding, resulting in increased receivables balance ✓ Saison International published our second Impact Report, which and profit contribution ✓ We will continue to ensure stable profit con
Slide 14: Finance Business
Finance Business Medium-Term Management Plan: Key Theme Expand profits and enhancement of competitiveness through group businesses ｰ2.6billion yen FY24 Review IFRS adjustments ( Rebound impact of gains on operating investment securities) , Rebound ✓ Credit Saison expanded real estate finance- IFRS a
Slide 15: Guarantee Business
Guarantee Business ■ Guarantee business balance Credit Guarantees (Real Estate Secured Loans) (billion yen) （for SMEs, sole proprietors, and individuals） 1,000.0 10,000 930.0 ✓ Expanding new partnerships with regional financial institutions across Japan through strengthened collaboration with Credit
Slide 16: Real Estate Finance Business
Real Estate Finance Business Real Estate Secured Loans／Project loans ・Loans for SMEs, sole proprietors, and individuals, with flexible usage such as real estate investment and ■Real estate finance business balance (billion yen) funding ・Purchase funds for real estate businesses 1,200.0 12,000 ✓ Cons
Slide 17: Releasing Real Estate ST for Card Members
Releasing Real Estate ST for Card Members *ST : Security Token ✓ We are providing new real estate investment opportunities that can be started with small amounts of money, thereby supporting asset formation for a wide range of customers interested in investing ✓ We are differentiating ourselves from
Slide 18: Payment Business
Payment Business Medium-Term Management Plan: Key Theme Accelerating our premium strategy and cost reductions through structural reform FY24 Review Changes in the customer base driven by promotions for our 30.3 Due to increase in billion yen shopping revenues, etc. premium strategy, along with the i
Slide 19: Improving Profitability through Our Premium Strategy
Improving Profitability through Our Premium Strategy A strategy aimed at expanding from mass-market general cards with no annual Premium fee to gold cards and above, as well as to cards for sole proprietors and SMEs strategy *"Premium cards" refers to gold cards and above for individuals, and to car
Slide 20: Characteristics of Our Target Business Areas
Characteristics of Our Target Business Areas ✓ Enhancing profitability by focusing primarily on the sole proprietor and SME segment プレミアム戦略 ■ Business Card Segments Where We Focus Our Efforts Main use cases Payment Credit method evaluation Main Business trips, Generally Large competitors' Corporate
Slide 21: Expanding Our Premium Strategy
Expanding Our Premium Strategy ■ Shopping transaction volume (trillion yen) New Partnership Strategy to YoY 110% 108% 105% 106% Expand the Premium Membership Base ✓ Deepening collaboration with existing partners 5.98 6.32 Exploring development of premium cards tailored to 5.68 partner customer needs
Slide 22: Asset revenue
Asset revenue ■ Card Shopping revolving and division balances (billion yen) ■ Cash advance balance (billion yen) 107% 111% 111% 108% YoY YoY 99% 103% 100% 101% 553.5 180.0 178.3 514.8 33.5 177.5 462.6 24.3 417.1 9.2 172.8 Division 8.0 Card Shopping revolving 490.5 520.0 453.4 409.0 FY22 FY23 FY24 FY
Slide 23: Initiatives to Expand Asset Revenue
Initiatives to Expand Asset Revenue Revolving Card Shopping Post-Purchase Revolving Payments *Released in October 2024 Strengthened Promotions and ✓ Rapid increase in new users, especially among younger customers → Targeting upsells to revolving payments Improved Convenience ✓ Focused promotions on
Slide 24: Product Revisions Aimed at Improving Profitability
Product Revisions Aimed at Improving Profitability Enhancing Loyalty by Refining Value-Added Services to Match Customer Needs Providing Exclusive Value for All Saison Members ✓ Starting in February 2025, launched "Saison Thursdays," offering discounted movie tickets at TOHO Cinemas ✓ Additional uniq
Slide 25: 02. Vision for the Credit Saison Group
02．Vision for the Credit Saison Group © 2025 CREDIT SAISON CO., LTD. 25
Slide 26: Vision for 2030 GLOBAL NEO FINANCE COMPANY
Vision for 2030 GLOBAL NEO FINANCE COMPANY "A global comprehensive life services group with finance at the core" ■ Consolidated business profit (billion yen) 1,000 Over 100.0 96.0 億円超 billion yen Accelerating growth speed 93.6 936 Aiming for growth exceeding 10.0 billion yen/year 71.9 719 60.9 609 4
Slide 27: Evolution of Our Customer Strategy (Domestic)
Toward becoming a GLOBAL NEO FINANCE COMPANY 01: Evolution of Our Customer Strategy (Domestic) ✓ While leveraging the strengths of the Payment and Finance businesses, we will implement banking and securities functions through alliances and M&A to meet customers' financial needs by offering one-stop
Slide 28: New Initiatives with Suruga Bank
New Initiatives with Suruga Bank Provision of banking services Neo Finance Solution Company Offering unique financial solutions Non-Bank × Bank utilizing both companies’ resources Customer Base & × Suruga Bank’s Diverse Businesses account functions = Accumulation of highly sticky deposit balances Pa
Slide 29: Building a Talent Portfolio to Achieve the Strategy
Toward becoming a GLOBAL NEO FINANCE COMPANY 02: Building a Talent Portfolio to Achieve the Strategy Model employees Medium-Term HR Strategy (FY24-26) Meaning of work Recruitment Implementing a more consistent HR strategy by articulating 人事ポリシー HR Policy Credit Saison's unique identity through a cle
Slide 30: Changes due to Human Capital Initiatives
Changes due to Human Capital Initiatives System design that emphasizes group/business strategies Proactively investing in human capital to promote results Number of employees seconded to affiliated 471 → 506 Investment in human resources development 177,900 yen per employee companies (As of March 20
Slide 31: CSDX Strategy for Enhancing Productivity
Toward becoming a GLOBAL NEO FINANCE COMPANY 03: CSDX Strategy for Enhancing Productivity ✓ Emphasis on practical skills in utilizing digital technologies and knowledge. Accelerating the digitalization of business processes Achieve Complete FY2024 Creation of 1,000 80% cloud digitalization of Constr
Slide 32: Toward Further Improving Our Customer Experience – Renewing Our Voice Platform
Toward Further Improving Our Customer Experience – Renewing Our Voice Platform – ✓ Full-scale launch of cloud migration and renewal of our voice platform, with the aim of transforming the communication experience • Began development with a hybrid approach (combining vendor development and in-house d
Slide 33: CSDX Initiatives for the Next Fiscal Year
CSDX Initiatives for the Next Fiscal Year ✓ Full-scale transformation of business processes centered around generative AI Accelerating value creation with AI as the growth engine Further accelerate CSDX Challenge Toward structural transformation using AI Formation of a dedicated AI team Toward digit
Slide 34: Saison is Recognized as a Global Financial Services Player
Toward becoming a GLOBAL NEO FINANCE COMPANY 04: "Saison" is Recognized as a Global Financial Services Player We are aiming to realize global-scale financial inclusion, where everyone can access financial services without being left behind, and are promoting businesses that are tailored to the marke
Slide 35: 03. Capital Policy
03．Capital Policy © 2025 CREDIT SAISON CO., LTD. 35
Slide 36: Progress on Capital Policy
Progress on Capital Policy Details Announced in the New Medium- Term Management Plan in May 2024 Progress and Future Outlook Share Buybacks Planned 70.0 billion yen of share ✓ 50 billion yen executed as planned by 2025/4/7 buybacks in the new medium-term ✓ Plans to acquire additional 20 billion yen
Slide 37: Shareholder Returns
Shareholder Returns ✓In the mid-term management plan (FY24-26), we are maintaining a policy of stable and consistent dividends, with a target dividend payout ratio of at least 30% ✓FY24：Plans to increase the ordinary dividend by 10 yen from the most recent year-end dividend forecast to a year-end di
Slide 38: 04. Full-Year Financial Results and FY25 Earnings Forecast
04．Full-Year Financial Results and FY25 Earnings Forecast © 2025 CREDIT SAISON CO., LTD. 38
Slide 39: FY24 Financial Summary
FY24 Financial Summary (billion yen) FY22 FY23 FY24 YoY Net revenue 322.6 361.6 422.8 116.9% Consolidated Business profit 60.9 71.9 93.6 130.1% Profit attributable to owners of parent 43.5 72.9 66.3 91.0% Operating revenue 266.1 283.8 310.0 109.2% Non-consolidated Operating profit 33.6 37.8 47.1 124
Slide 40: Overview of Business Results by Segment
Overview of Business Results by Segment (billion yen) Net revenue Business profit FY23 FY24 YoY FY23 FY24 YoY Payment 235.2 256.0 108.8% 19.2 30.3 157.4% Lease 12.5 13.3 106.4% 4.3 4.1 94.4% Finance 58.5 69.3 118.6% 28.2 38.6 136.8% Real estate related 23.9 28.2 118.2% 16.4 16.2 99.2% Global 27.2 51
Slide 41: FY23 → FY24 Main Factors for Changes in Business Profit by Segment
FY23 → FY24 Main Factors for Changes in Business Profit by Segment * 93.6 billion yen 1.4 * * 3.3 84.0 billion yen * 80.0 billion yen 1.4 71.9billion yen Global 1.2 Real estate- related 16.2 3.3 India Business Expansion, 2.8 Higher-than-anticipated Entertainment 1.0 On the other hand, the sales of o
Slide 42: Contribution by Consolidated Companies
Contribution by Consolidated Companies ■ Business Profit Difference (billion yen) Consolidated Non-consolidated Difference business profit ordinary profit FY24 93.62 54.78 38.83 (YoY difference) 21.67 8.62 13.05 ■ Contribution by Consolidated Companies (billion yen) Contribution to YoYdifference Bus
Slide 43: Credit Risk
Credit Risk ✓ Nearly complete reversal of the special allowance drawn against future increases in delinquent loans in the COVID-19 pandemic ✓ We continue to advance countermeasures utilizing AI and DX (such as predictions of third-party intervention and the digitalization of manned outbound phone ca
Slide 44: Interest Repayment Claims
Interest Repayment Claims FY23 Additional provisions recorded with a Currently, provision levels Continue monitoring forward-looking perspective: are sufficient future developments 2.3 billion yen (consolidated / non-consolidated) ■ Trends in the Number of New Overpayment ■ Trends in Provision Balan
Slide 45: Financial Policy
Financial Policy ■Sound financial base ■ Structure of interest-bearing debt Credit ratings • Almost 80% of the interest-bearing debt is composed of long-term ・R＆I A+ * Have maintained an A+ rating for over funds 25 years since October 1996 • Fixed interest rate procurement accounts for about 70% of
Slide 46: FY25 Earnings Forecast
FY25 Earnings forecast (billion yen) FY24 Results FY25 Forecast Differences YoY (A) (B) (B-A) Net revenue 422.8 479.0 56.1 113.3% Consolidated Business profit 93.6 96.0 2.3 102.5% Profit attributable to owners of parent 66.3 67.5 1.1 101.7% Operating revenue 310.0 342.5 32.4 110.5% Operating profit
Slide 47: FY25 Forecasts by Segment
FY25 Forecasts by Segment Net revenue *1 Business profit (billion yen) FY24 Results FY25 Forecast YoY FY24 Results FY25 Forecast YoY Payment 251.4 278.1 110.6% 30.3 26.2 86.4% Lease 13.3 14.6 109.4% 4.1 4.0 97.3% Finance 69.3 74.2 107.0% 38.6 36.0 93.1% Real estate related 27.9 31.8 113.6% 16.2 17.5
Slide 48: Appendix
Appendix © 2025 CREDIT SAISON CO., LTD. 48
Slide 49: Main Increases/Decreases in Business Profit and Ordinary Profit
49 54.7 results FY24 FY24 FY24 実績 (billion yen) 実績 -0.7 Decreased non-operating income -5.8 ■Ordinary profit (non-consolidated) Increased financial expenses 0.1 Decreased credit costs Main Increases/Decreases in business profit (consolidated), -11.1 Increased other operating expenses 26.1 Increased
Slide 50: Profit Structure Transformation
Profit Structure Transformation Moving beyond reliance on payments to a new stage of growth via domestic and overseas businesses Global Pa Pa Pa y y y l Pa a y ob m m m m en FY2006 en en FY2013 l FY2023 G en FY2026 t t t 75.2 36.3 t 71.9 （plan） nce billion yen billion yen billion yen Over 100.0 Fina
Slide 51: Trends in Consolidated Operating Revenue/Net Revenue
Trends in Consolidated Operating Revenue/Net Revenue *Japanese accounting standards were applied up until FY17. IFRS (International Financial Reporting Standards) has been applied from FY18. (billion yen) 4,500 450.0 4,228 422.8 4,000 400.0 361.6 3,616 3,500 350.0 3,226 322.6 304.8 3,048 3,114 311.4
Slide 52: Trends in Consolidated Ordinary Profit/Business Profit
Trends in Consolidated Ordinary Profit/Business Profit *Japanese accounting standards were applied up until FY17. IFRS (International Financial Reporting Standards) has been applied from FY18. (billion yen) 1,200 120.0 1,000 100.0 93.6 936 80.0 800 719 71.9 60.9 609 60.0 600 56.7 567 53.0 530 52.2 5
Slide 53: Composition of Main Businesses
Composition of Main Businesses Segment Global business Finance business Payment business ■Lending ■Credit guarantees Free loans and housing loan guarantee , etc. Lending that is mainly targeted at ■Credit cards underserved customers ■Asset formation loans Business ■Processing content ■Investment Inv
Slide 54: External Recognition (Examples)
External Recognition (Examples) ■ESG recognitions ■IR website recognitions Selected as a constituent for Received both the Grand Prize and Bronze Prize 5 out of the 6 ESG indices adopted by GPIF in two major site rankings First selected First selected in 2024 in 2024 ■DX recognitions Recognized for
Slide 55: IR Website and Reports Information
IR Website and Reports Information Investor Relations https://corporate.saisoncard.co.jp/en/ir/ https://corporate.saisoncard.co.jp/en/ir/ Integrated Report 2024 https://corporate.saisoncard.co.jp/en/ir/integrated_report/ https://corporate.saisoncard.co.jp/en/ir/integrated_report/ PDF version Online