Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2009 Q2 Earnings Presentation
30 slides from Credit Saison's earnings presentation, Nov 10, 2009
Slide 1: FY2009 April–September Management Strategy
A LEADING-EDGE SERVICE PROVIDER CREDIT SAISON CO., LTD. FY 2009 April – September Management Strategy November 10, 2009
Slide 2: Agenda
AGENDA ◆ FY2009 2nd Quarter Financial Report ◆ Business Strategy ◆ Current State of the Domestic Card Market (Reference Material) This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are not guarantees of future performance: known a
Slide 3: FY2009 2nd Quarter Financial Report
FY2009 2nd Quarter Financial Report 1. Operating Results 2. Results by Business Segment 3. Contributions to Consolidated results 4. Main Indices (Non-Consolidated) 5. Credit Risk Trends / Trends in Loss on Interest Repayment 6. Financial Indices 7. Financial Strategy 8. Fund Structure CORPORATE STRA
Slide 4: 1. Operating Results
1. Operating Results (¥ billion) FY2008 FY2009 FY2009 nd YoY (%) nd YoY (%) YoY (%) 2 Quarter 2 Quarter (Estimate) Operating Revenues 171.2 96.5 156.7 91.5 308.0 94.2 Ordinary 28.7 87.1 19.1 66.7 35.0 113.1 Consolidated Income Quarter Net 15.6 127.7 8.6 55.4 17.0 － Income Earnings per Share (¥) 8.67
Slide 5: 2. Results by Business Segment
2. Results by Business Segment (¥ billion) Operating Revenues Operating Income (Loss) FY2008 FY2009 FY2008 FY2009 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 128.0 124.0 (3.1%) 16.9 14.2 (15.8%) Finance 22.7 16.6 (26.7%) 7.0 2.9 (58.1%) Real Estate- related 15.8 8.
Slide 6: 3. Contribution to Consolidated Results
3.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 ¥ 16.3 billion ¥ 19.1 billion ¥ 2.8 billion
Slide 7: 4. Main Indicators (Non-consolidated)
4. Main Indicators (Non-consolidated) FY2008 FY2009 FY2009 2nd Quarter YoY (%) 2nd Quarter YoY (%) (Estimate) YoY (%) New Applications (millions) 1.35 77.1 1.56 115.6 3.40 116.0 New Card Issued (millions) 1.23 86.0 1.31 106.5 2.80 111.1 Total Cardholders 27.51 27.96 28 (millions) 107.3 101.4 101.6 (
Slide 8: (Reference) Share of Cards
（Reference）Share of Cards 【Share of Total Cardholders】 【Share of Shopping Transaction Volume】 （total：27.96 million） （total：¥ 1,879.8 billion） MMC MMC 8.9% 7.3% SAISON SAISON Proper LABII Proper LABI 2.6% 18.1% 6.0% 16.7% UC UC Seibu・Sogo・ 1８.９% 13.7% Seibu・Sogo・ Takashimaya Takashimaya 13.6% 14.3% S
Slide 9: (Reference) Changes in Individual Spending Habits
（Reference）Changes in Individual Spending Habits ■ FY2009 April-September Affiliated Store Billings YoY% by Industry (SAISON brand) Rank Transaction Number Transaction Value Transaction Volume 1 ETC 137.6% Communications 107.0% Education 121.0% 2 Furniture 117.9% Education 103.1% Communication 112.7
Slide 10: 5. Credit Risk
5. Credit Risk (%) change from Delinquency Rate of Over 90 days end of FY2008 Consolidated 3.22 +0.42 Credit Card 3.25 +0.36 Card Shopping 2.39 +0.29 Cash Advances 4.60 +0.48 *Delinquency Rate: Percentage of total receivables 90 days or more past due date. (¥ billion) Consolidated Non-consolidated Y
Slide 11: Trends in Loss on Interest Repayments
Trends in Loss on Interest Repayments New occurrences of credit handling by lawyers and other parties are gradually decreasing. Downward Trend of Provision for Loss on Interest Repayment ■ Trends in New Interest Repayment Claims Handled ■ Changes in the provision for loss on interest by Lawyers repa
Slide 12: 6. Financial Indices
6. Financial Indices (¥ billion) Consolidated Non-consolidated change from change from end of FY2008 end of FY2008 Shareholders’ Equity 326.7 +8.4 310.5 +6.3 Total Assets 2,398.3 (8.6) 2,224.8 +4.0 Shareholders’ Equity Ratio 13.6% +0.4% 14.0% +0.3% CORPORATE STRATEGY 2009 CREDIT SAISON CO., LTD. 10
Slide 13: 7. Financial Strategy
7. Financial Strategy Implement action based on the basic policies in a flexible and swift manner Implement Asset Structure・Revenue Basic Funding Policy Structure・ Fund Structures Based on the Financial Market’s Status ◆Diversify methods of funding ◆Maintain good relations with correspondent Liquidi
Slide 14: 8. Fund Structure
8. Fund Structure (¥ billion) [Consolidated] [Non-consolidated] Total Balance: 1,826.5 Total Balance: 1,690.0 Corporate Corporate Bonds Bonds 250.0 CP 251.3 CP (15%) 134.0 （14%） 130.0 （7%） (8%) Debts Debts Securitization of 1,173.6 Securitization of 1,042.5 receivables （64%） receivables (61%) 267.5
Slide 15: Business Strategy
Business Strategy Ⅰ． Our Company’s Attributes and Competitive Edge Ⅱ． Business Strategy Applying Our Company’s Strengths Ⅲ． Priority Policies, FY2009 Second Half CORPORATE STRATEGY 2009 CREDIT SAISON CO., LTD. 13
Slide 16: Our Company's Attributes and Competitive Edge
Ⅰ. Our Company’s Attributes and Competitive Edge (1) Customer base of 35 million cardholders Strong customer base with two brands, SAISON and UC, containing credit and operation results (including from contracted agents) from 35 million cardholders with high value in attributes, areas, and spending
Slide 17: Business Strategy Applying Our Company's Strengths
II. Business Strategy Applying Our Company’s Strengths Credit Card Business ・Invest in development of new systems and expanding clientele of high volume cards. ・Increase operational efficiency, reexamine economic requirements with business partners, and reform profitability of Qubitous. ・Create part
Slide 18: Priority Policies, FY2009 Second Half
Ⅲ．Priority Policies, FY2009 Second Half 1． Measures for Expanding the Profitability of the Card Business (1)～(4) 2． Cash Advance/Loan Strategies 3． Measures for Expanding the Profitability of Business by Using the Internet 4． Development of the Financial Business 5． In-depth Cost Reduction CORPORATE
Slide 19: Expanding Card Profitability (1)
1．Measures for Expanding the Profitability of the Card Business (1) Measure(1) Expand card revenue by using collaboration with department store businesses, regional (area) revitalization, and expand shopping revolving as keywords. ■Send Saison/UC cardholders and contracted agent cardholders (35 mill
Slide 20: Expanding Card Profitability (2)
1．Measures for Expanding the Profitability of the Card Business (2) Measure(2) Approach distribution/service with “new type enterprise companies” ■ Approach SPA (specialty store retailers) with high customer acceptance ・Deploy a comprehensive sales initiative, such as affiliated cards and promotions
Slide 21: Expanding Card Profitability (3)
1. Measures for Expanding the Profitability of the Card Business (3) Measure (3) Collaborate with AMEX in order to expand AMEX’s share of the Japan domestic market (1) Offer subscriptions for AMEX cards with no annual fees ・Offer subscriptions as part of the main proper Saison card at locations like
Slide 22: (Reference) 2009-2012 AMEX+GOLD card plan
[Reference] 2009 - 2012 AMEX+GOLD card plan Annual Shopping 2012 Transaction Volume ¥ 1,400 billion 3.68 million persons ¥ 1,500 billion ¥ 1,350 billion ¥ 1,200 billion CS CS 2009 ¥ 860 billion GOLD GOLD ¥ 1,050 billion 2008 (101% YoY) ¥ 850 billion 1.98 million persons 1.62 million persons ¥ 900 bi
Slide 23: Expanding Card Profitability (4)
1. Measures for Expanding the Profitability of the Card Business (4) Measure(4) Increase transaction volume of large affiliate cards (1) Expand Issuing of MMC cards ・ Customers obtain MMC cards when opening new bank accounts. ・ Increase transaction volume by implementing point systems and expanding
Slide 24: Cash Advance/Loan Strategies
2．Cash Advance/Loan Strategies (1) Current Status of Cash Advances ・People that Use Cash Advances (with balance at the end of the term) ⇒ 1.73 million (98.3% YoY) ・Amount of Using Cash Advance (1st half average) ⇒ ¥ 44,000 (87.3% YoY) (2) Efforts for Continued Use (Ensuring Balances) by Existing Car
Slide 25: Profitability Using the Internet
3. Measures for expanding the profitability of business utilizing the internet (1) Low-cost Operations using the Internet Reduce costs by ・Achieve large-scale reductions in personnel costs, advertising and PR costs, ¥ 1.5 billion communications costs, and other costs through internet card expansion,
Slide 26: (Reference) Schematic of Internet Business
[Reference] Schematic of Internet Business Expansion of Profits Cost Reductions ・Contingency fee revenue ・Internet statements Customers get Eikyufumetsu ・Internet news ・Advertising revenue points by online shopping, ・Expansion of internet ・Internet news posting requesting documents, or cards revenue
Slide 27: Development of the Financial Business
4．Development of the Financial Business Expansion of Financial Business by Using the Sales Network (1) Lease and Rental Business (targeted at private businesses) Vendor Leases ・Cross-sales of products for private businesses through alliances Transaction Volume with card divisions 1st half: ¥ 53 bill
Slide 28: In-depth Cost Reduction
5．In-depth Cost Reduction 1st Half Sales Administration Costs [Consolidated] ¥ 126.6 billion( down ¥ 2.5 billion reduction, 98.0% YoY) [Non-consolidated] ¥ 105.3 billion (up ¥ 1.8 billion increase, 101.7% YoY) 【Cost Reduction Priorities】 (1) Review the economic conditions in the card business, and c
Slide 29: (Reference) Change of Domestic Market Share
[Reference] Change of Domestic Market Share (Shopping Transaction Volume) Credit Saison G Mitsubishi UFJ 【FY 2000】 JCB G 10.1% 【FY 2008】 13.9 % NICOS G 20.0 % Mitsui Sumitomo G Co. intimacy Credit Saison 9.9% with UC Credit Saison 6.5% 0.7% 9.4% Co. intimacy with ORICO JCB JCB Affiliate 2.5% 6.6% 3.
Slide 30: (Reference) Reorganization of the Domestic Credit Market
[Reference] Reorganization of the Domestic Credit Market Credit Saison Sumitomo Mitsui FG Mizuho Resona FG HD Mitsui Sumitomo Card Cedyna Resona Orico Card Takashimaya Yamada Idemitsu Japan Post Bank Credit Financial Credit ORIX Sanyo Promise Credit Shinpan Shizugin Aeon Daiwa House YM SAISON JCB Cr