Credit Saison Co., Ltd. · TSE:8253
Credit Saison — H1 FY2017 Earnings Presentation
40 slides from Credit Saison's earnings presentation, Nov 13, 2017
Slide 1: FY2017 2nd Quarter Management Report
FY2017 2nd Quarter Management Report 2017. 11. 13 CREDIT SAISON CO., LTD.
Slide 2: Agenda and forward-looking statements
Saison American Express® Card PLATINUM GOLD ◆ FY2017 First Half Business Highlights B L U E Ⅰ． FY2017 First Half Financial Report Ⅱ． FY2017 Management Strategies PEARL Ⅲ． ESGrelated This report contains forward-looking statements that reflect our plans and expectation. These forward-looking stateme
Slide 3: Main Topics of the First Half of 2017 Fiscal year
Main Topics of the First Half of 2017 Fiscal year working-style reform Enhancement of Saison’s Brand Image ■ Introduced a “new human resource” system to transform ■ Formation of “Higashi Ikebukuro 52,” a group ourselves to a growing company, while sticking to the management consisting of employees,
Slide 4: FY2017 First Half Financial Report
Ⅰ．FY2017 First Half Financial Report 1. Financial Results 2. Results by Business Segment 3. Contributions by Consolidated Companies 4. Main Indices (Non-Consolidated) 5. Credit risk / Credit cost 6. Interest repayment claim 7. Financial Indices 2
Slide 5: 1. Financial Results
1. Financial Results (¥ billion) FY2016 YoY FY2017 YoY FY2017 nd nd YoY(%) 2 Quarter (%) 2 Quarter (%) (Estimate) Operating 137.2 101.7 145.4 106.0 292.0 104.7 Consolidated Revenues Ordinary Income 31.0 90.6 36.2 116.9 57.0 107.4 Quarter Net Income 28.2 122.7 32.0 113.3 40.0 94.7 Earnings per Share
Slide 6: 2. Results by Business Segment
2. Results by Business Segment (¥ billion) Operating Revenues Operating Income FY2016 FY2017 FY2016 FY2017 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 103.9 109.1 105.0 11.0 11.3 102.0 Lease 6.7 6.4 96.0 2.6 2.1 82.5 Finance 15.1 17.2 114.3 8.1 7.9 97.0 Real Estate
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 ¥24.1 billion ¥36.2 billion ¥12.1 billion Contribution to Contribution Major consolida
Slide 8: 4. Main Indices (Non-Consolidated)
4. Main Indices (Non-Consolidated) FY2016 FY2017 FY2017（Estimate） 2nd Quarter YoY(%) 2nd Quarter YoY(%) YoY(%) New Applications 1.62 99.5 1.50 92.6 3.18 99.8 (millions) New Card Issued 1.28 99.7 1.26 98.3 2.60 99.8 (millions) Total Cardholders 26.01 26.84 27.14 102.9 103.2 102.5 (millions) （＋0.40） （
Slide 9: 5. Credit Risk / Credit Cost
5. Credit Risk / Credit Cost ■Trends in Credit Risk 6% 6% Delinquency of over 90 Delinquency of over 90 5% days (Consolidated) 5% days (Non-Consolidated) 4% 4% Cash Advance 3% 3% 2.32% 2.18% 2.40% 2.45% 2.46% 2% 1.51% 1.48% 1.56% 1.58% 1.63% 2% 1.58% 1.65% 1.28% 1.32% 1.46% Credit Card 1% 1% 1.40% 1
Slide 10: 6. Interest Repayment Claims
6. Interest Repayment Claims ■ Trend in new Interest Repayment claims handled by Increase in provision for lawyers (monthly average) Processing unit price （YOY） (monthly avarege） loss on interest repayment 2000 150% by 15.9 billion yen as of the end of the previous term 1500 100% 1000 No. of new int
Slide 11: 7. Financial Indices
7. Financial Indices ■Shareholder’s Equity ・ Total Assets ・ Shareholder’s Equity Ratio Consolidated Non-Consolidated change from change from end of FY2016 end of FY2016 Shareholders’ Equity ¥468.5 billion ＋23.4 billion ¥393.0 billion ＋18.6 billion Total Assets ¥2,849.7 billion ＋129.7 billion ¥2,750.
Slide 12: (Reference) Fund Structure Changes in Interest-bearing Debt
(Reference) Fund Structure Changes in Interest-bearing Debt (Non-Consolidated) Card company's first [ Rating ] Long-term Ratio ： 66％ super long-term bond R&I A+ Fixed Ratio ： 62％ with a term of 20 years 1.15% 0.98% Average Funding FY２０１７ bond issue 0.83% 0.66% 0.53% May：Issuance volume of 25 billion
Slide 13: Acceleration of top-line growth by utilizing the new system
(Reference) Progress Status of Associated Core System Development Migration to the new system on Nov. 26 (Sun), 2017 Acceleration of top-line growth by utilizing the new system Expansion of service portfolio New service development for business partners Expansion of processing business Credit cards
Slide 14: Neo Finance Company in Asia
Basic Policy of Medium-Term Management Plan・Management Target 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 15: FY2017 Management Vision
FY2017 Management Vision Medium-Term Management Vision Neo Finance Company in Asia FY2014～ FY2016 FY2017 FY2018 2025 ～ The next 10 years ～ Change of business model Thorough pursuit of customers' needs and convenience CREDIT The most suitable solutions for individuals and corporations SAIS N Ⅰ Ⅱ 【 Co
Slide 16: Transformation to Innovative Company
Transformation to Innovative Company Creation of “services and settlement system” only Saison can Diversifying business operation through development of new business provide ■ Development of new business Implementation of the scheme for cardless through strategic capital and business settlement al
Slide 17: Expansion of New Business Domain (1) - Settlement Business
Expansion of New Business Domain (1) - Settlement Business - Implementation of a variety of new settlement functions such as smart-phone / app settlement and biometrics authentication in various ways by utilizing cutting-edge technologies of Fintech Departure from dependence on the credit card busin
Slide 18: Expansion of New Business Domain (2) – Business for Corporate Customers
Expansion of New Business Domain (2) – Business for Corporate Customers - We will facilitate cashless settlement in the corporate settlement area through collaboration with settlement platformers, in order to meet needs from various companies. Japanese corporate settlement service Transition in tran
Slide 19: (Reference) Establishment of DG Lab
(Reference) Establishment of “DG Lab” “DG Lab,” an open-innovation type research & development organization BLOCKCHAIN We have developed “DG Lab DVEP (Digital Value Exchange Platform),” a multi-purpose framework enabling to issue original virtual currencies on the block chain of Bitcoin. AI VR / AR
Slide 20: (Reference) Open Innovation Strategy
(Reference) Open Innovation Strategy [Examples of Introduced Alliance and Business Partners] Investment in venture funds Japan Capital / Business alliance Introduction of × each partners, as well as companies that the funds invest Investment in Subsidiary × companies at seed / early stages Event par
Slide 21: Expansion of New Business Domain (3) – Eikyufumetsu Point Eco System
Expansion of New Business Domain (3) – Eikyufumetsu Point Eco System – We will create the strongest “point-focused Eco System” by making the Eikyufumetsu point system a general- purpose point system allowing customers to “accumulate,” “use (exchange)” and “manage” the points. Point issuance Point ac
Slide 22: Expansion of New Business Domain (4) – Big Data Business
Expansion of New Business Domain (4) – Big Data Business – Increase in business opportunities after development of the legal system for usage of big data and personal information Achievement of “expansion of business domains” and “entry to new market <Saison’s customer data> <External data> Increase
Slide 23: Expansion of New Business Domain (5) – Platform to Meet QOL demand
Expansion of New Business Domain (5) – Development of Platform to Meet QOL demand – New quantitative and ■ The ratio of the assets held by aged households has Declining birthrate and qualitative monetary easing an aging population Slow growth increased year by year. measures (53% in 2002 ⇒ Approx. 7
Slide 24: Expansion of New Business Domain (5)-1 – Health Platform
Expansion of New Business Domain (5)-1 – Health Platform – Responding to demand especially from senior generation for “improvement in personal life (quality of life)” and life design for them will provide opportunities to acquire new customers and promote consumption in the field of the business for
Slide 25: Expansion of New Business Domain (5)-2 – Finance Platform
Expansion of New Business Domain (5)-2 – Finance Platform – In order to allow customers to treat money in a more diversified and affluent manner, we will provide asset management services that customers can use easily and conveniently. Supporting customers’ asset management with professional long-te
Slide 26: Further Growth Strategies in Finance Business (1)
Further Growth Strategies in Finance Business (1) Lease & Rental Credit Guarantee Strengthening efforts for risk control to address Enhancement of comprehensive sales activities changes in market conditions and for sales promotion targeting important dealers utilizing the business power Inform
Slide 27: Further Growth Strategies in Finance Business (2)
Further Growth Strategies in Finance Business (2) Flat 35 Asset Formation Loan Support for enhancement of collaboration with main Maintaining the business model to conduct business only agencies as well as operation of new agencies in a full with reliable business partners scale Maintaining an
Slide 28: Acceleration of Prior Investments in Asia Business (1)
Acceleration of Prior Investments in Asia Business ① Deployed overseas bases Shanghai Local Affiliate “Saison Business China (shanghai) Consulting (Shanghai)” Myanmar （2005〜） Laos Vietnam Capital participation in “HD SAISON,” a joint venture with HD (Hanoi/Ho Chi Minh) Bank （2013〜） Vietnam Thailand
Slide 29: Acceleration of Prior Investments in Asia Business (2)
Acceleration of Prior Investments in Asia Business (2) Vietnam Joint venture business with HD Bank “HD SAISON Finance Company Ltd. “ Established in May 2015 / Credit Saison’s stake: 49% ・ Individual installment business for motor cycles, consumer electronics and smartphones, and cash advance busines
Slide 30: Views on ESG for Sustainable Growth
Views on ESG for Sustainable Growth We will facilitate “ESG Management,” in order to achieve social contribution that only Credit Saison can do. • Operation of “Akagi Nature Park” • Promotion for contribution to the “Funds for Construction of Kanagawa Animal Protection E nvironment Center” • Promoti
Slide 31: Environment (Activities for environmental preservation)
Environment (Activities for environmental preservation) We promote environmental preservation activities through operation of Akagi Nature Park and efforts to realize paperless business operations. ■ Operation of Akagi Nature Park ■ Funds for Construction of Kanagawa Animal Protection Center Handker
Slide 32: Social (Efforts for social contribution activities)
Social （Efforts for social contribution activities: Corporate Social Responsibility, society) Promotion of social contribution activities that only Credit Saison can do ■ Achievement of cashless society that provides ■ Promotion of contribution by Eikyufumetsu points assurance, safety and convenienc
Slide 33: Social (Working-Style Reform)
Social (Efforts for social contribution activities: Working-Style Reform) We introduced a “new human resource” system to transform ourselves to a growing company in September 2017, while sticking to the management philosophy of “Leading-Edge Service Company” Employment of all the workers except pa
Slide 34: Social (Working-Style Reform)
Social (Efforts for social contribution activities: Working-Style Reform) Though pursuit for “Saison Style” by all employees, we will develop the “environment where diverse human resources can demonstrate their potential” and “corporate culture where all employees take challenging for granted.” Ques
Slide 35: Governance (Activities for governance enhancement)
Governance (Activities for governance enhancement) In order to acquire understanding and agreement from shareholders who perform stewardship responsibility, we will enhance our corporate governance by ensuring transparency in management and strengthening management supervisory capability, and will s
Slide 36: Evaluation from Third Parties and Activities
Evaluation from Third Parties and Activities ■ Selected as the share included in ■ IkuBoss declaration ■ Certified as a supporter for MSCI Japan Empowering Women program in Toshima-ku, women’s participation in society Index (WIN) Tokyo by Kanagawa prefecture participation in society and diversity Su
Slide 37: Comparison of Share for Payment Methods in Japan and the U.S.
Comparison of Share for Payment Methods in Consumer Spending in Japan and the U.S. Japan (FY2016) U.S.A. (FY2015 → FY2020 forecast) ※【ＹｏＹ】 ※【 Share forecast of FY2020 】 Collected from Prepaid card, other Pay-easy convenience stores 4.1％ （FY2020：3.5％） 5.4％[0.2p] 3.5％ [±0.0p] Check 9.5％ Cash Transfer,
Slide 38: (Reference) Domestic Market Share (Shopping Transaction Volume)
(Reference) Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【2016 fiscal year】 Regional banks Our Group Aplus 1.2％ 14.6％ FC/BC Seven Card Service 1.5％ Other Our Company 10.9％ (non-consolidated) MI Card 2.2％ 9.2％ Epos Card 2.8％ Joint Venture Card c
Slide 39: [Recommended Product] Saison American Express Card
[Recommended Product] Saison American Express® Card Eikyufumetsu point (1,000 yen = 1 point / indefinite period): X 2 for overseas use / X 1.5 for domestic use PLATINUM Concierge service: 24hours / 365days Priority pass: No registration fee (annual membership fee: US$399) Free baggage delivery servi
Slide 40: memo
memo 40