Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2020 Earnings Presentation
32 slides from Credit Saison's earnings presentation, May 17, 2021
Slide 1: Financial Results Briefing of FY2020 comprehensive
Financial Results Towards a second foundation Briefing of FY2020 comprehensive ～Transforming ourselves into a life services corporate group～ May 17, 2021 Credit Saison Co., Ltd. confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 1
Slide 2: Agenda
AGENDA ◆ Financial Results of FY2020/ Business Results Forecast for FY2021 Financial Policy & Capital Policy Managing Executive Officer, CFO Shingo Baba ◆ Business Strategy for FY2021 Representative, Executive President and COO Katsumi Mizuno This report contains forward-looking statements that refl
Slide 3: Financial Results of FY2020 / Forecast FY2021 / Financial & Capital Policy
◆Financial Results of FY2020/ Business Results Forecast for FY2021 Financial Policy & Capital Policy ・Financial Results of FY2020 P.4-P.8 ・Business Results Forecast for FY2021 P.9-P.12 ・Financial Policy & Capital Policy P.13-15 confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 3
Slide 4: Financial Results Digest
Financial Results Digest • Although the top line decreased due to the impact of COVID-19, revenue decreased and income increased due to suppression of operating expenses and reduction of credit costs • Although the loan content has improved, a special allowance was recorded to prepare for future inc
Slide 5: Financial Results: Results by Business Segment (IFRS)
Financial Results ～ Results by Business Segment(IFRS) ～ (billion yen) <Net revenue> (billion yen) <Business profit> 350.0 48.3 311.4 ▲9% 50.0 ＋34% 300.0 282.6 5.3（▲23%） 8.8 40.0 250.0 17.2 5.5 (▲37%) 36.1 43.1 14.5 (▲15%) 1.9 21.2（＋18%） 200.0 43.4 (＋1%) 30.0 12.2 6.9 150.0 12.2 (＋0%) 20.0 18.0 5.4 （
Slide 6: Contribution by consolidated companies (IFRS)
Contribution by consolidated companies(IFRS) ※( ) =Year-on-year difference Non-Consolidated Consolidated Difference Ordinary income Business profit ¥38.0billion（＋¥9.67billion） ¥48.3billion（＋12.16billion） ¥10.3billion（＋2.49billion） Major consolidated contrbution to Major equity method contrbution to
Slide 7: Credit Risk
Credit Risk Although monetary easing has improved the content of receivables, a special allowance was recorded to prepare for future increases in bad debts. Delinquency over 90 days Delinquency over 90 days (consolidated) 5.0% (non-consolidated) 5.0% 4.0% Credit card Cash advances 4.0% 2.45% 2.51% 2
Slide 8: Interest Repayment Claims
Interest Repayment Claims Additional provisions of ¥11.1 billion The Company has no plans for on a consolidated basis and ¥10.7 The Company currently has a additional provisions in the current billion on a non-consolidated basis fiscal year but will continue to were recorded in the accounts of suffi
Slide 9: Business Results Forecast for FY2021 (1)
Business Results Forecast for FY2021① Although the Medium-term Management Plan (FY2019 to FY2021) sets business profit of ¥60 billion as a target for FY2021, the situation has changed to one in which is difficult to achieve due to the unexpected outbreak of COVID-19. Therefore, we now use a single-y
Slide 10: Business Results Forecast for FY2021 (2): Main Increases/Decreases in Business Profit
Business Results Forecast for FY2021 (2): Main Increases/Decreases in Business Profit (billion yen) Consolidated Consolidated 2.9 1.0 10 8.7 Consolidated 36.1 48.3 87 52.0 8.3 Reaction to 3.9 16.7 167 recording Reduced extraordinary credit loss in 10.7 costs previous 0.5 11.3 8.6 113 86 8.1 81 year
Slide 11: Main Indices of Payment Business
Main Indices of Payment Business （Year-on-year difference） (million) New card issuances Total cardholders (million) Active cardholders (million) 3.00 30.00 20.00 26.39 25.70 25.75 14.96 14.71 13.95 2.00 1.80 20.00 （▲3%） （＋0%） 1.68 （▲7%） （+5%） 1.25 10.00 1.00 （▲30%） （+33%） 10.00 0.00 0.00 0.00 '19 '2
Slide 12: Transition of Finance Business
Transition of Finance Business Asset Balance (Including off-balance) （billion yen） 2019 Jun Flat 35 (guarantee-type) 3,000 2017 Jul Saison Rent Guarantee Rent Quick 1982 Aug Lease business 1985 May Credit guarantee business 2,500 2013 Jan Asset Formation Loans 2012 Apr 2,000 “Flat 35 Plus” loan 2009
Slide 13: 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 14: 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 15: Status of Shareholder Returns
Status of Shareholder Returns When the financial crisis triggered by the bankruptcy of Lehman Brothers occurred, the Company did not reduce its dividends despite a deficit of -¥55.5 billion. Furthermore, we will pay stable and continuous dividends even in an environment marked by uncertainty regardi
Slide 16: Memo
Memo confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 16
Slide 17: Business Strategy for FY2021
◆ Business Strategy for FY2021 ・Business Strategy for FY2021 P.18-P.28 confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 17
Slide 18: 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 D
Slide 19: Promoting Digitalization, While Valuing Real Services Which Are Our Strength
Promoting Digitalization, While Valuing Real Services Which Are Our Strength Achieving Customer Success by Providing Services That Are Close to the Customer Digital Our company’s strength in real Promoting digitalization services • Achieve in-house system development/operation • Staffed response at
Slide 20: Self-contained Service SAISON CARD Digital
Promotion of Proper Card Strategy Utilizing the Smartphone Self-contained Service “SAISON CARD Digital” Digital Conventional tie-ups SAISON CARD Digital Alliance with multiple business operators through one proper Issue affiliated credit cards (plastic card pattern credit cards) for each business op
Slide 21: Expansion of Issuer Business and Processing Business Through Digitalization
Expansion of Issuer Business and Processing Business Through Digitalization and Channel Diversification Digitalization of existing Diversification of new customer Digital tie-up card issuers development channels Existing partners Issuer business As a non-face-to-face channel, issue a new tie-up card
Slide 22: Utilizing Digitalization to Fuse Payment Business and Finance Business
Utilizing Digitalization to Fuse Payment Business and Finance Business Digital Expand sales of payment-related Provide added Provide digital products to individual customers and value through products benefit services, corporate customers in the Finance etc. Business SAISON Flat 35 Rent guarantee se
Slide 23: Developing New Products and Increasing Sales of AMEX Brand
Developing New Products and Increasing Sales of AMEX Brand as a Strategic Weapon Innovative ＜BtoC field＞ ＜BtoB field＞ • Issue concept-type credit cards with clear targets • Challenge the innovation of credit model Female segment Affluent segment Start provision of new corporate credit-type business
Slide 24: Challenging New Markets by Developing New Products and New Businesses
Challenging New Markets by Developing New Products and New Businesses Innovative Medical fee factoring Business loan: SAISON Value Loan Support the financing of medical companies, care companies, pharmacies, etc., whose business Full-scale development of SAISON Value Loan, management was impacted by
Slide 25: Introduction of Some Group Companies Providing Services That Match Market Needs
Introduction of Some Group Companies Providing Services That Match Market Needs Innovative Response to asset formation needs Support for retirement funds Total managed assets Awards record (example) • Businesses that meet the changing times and customer needs; for example, products to Exceeded ¥400
Slide 26: Establishing Business Foundation for Dramatic Performance: Global Business
Establishing Business Foundation for Dramatic Performance — Make Global Business a Major Pillar of the Company’s Business — G l o b al India Vietnam Indonesia Kisetsu Saison Finance HD SAISON (India) Private Limited Finance Company Ltd. PT. Saison Modern Finance ビジョン ・Established Jun 2018 (99.99% st
Slide 27: Concentrated Investment in Businesses to Make Global Business a Major Pillar
Concentrated Investment of Management Resources in Businesses That Contribute to Profits in Order to Make Global Business a Major Pillar of the Company’s Business Global Kisetsu Saison Finance India (India) Private Limited • Aim to increase loan amount by procuring funds • Start hybrid lending in ad
Slide 28: Business Creation and Diversification
Business Creation and Diversification — Implementation of CVC Business and Impact Business by Saison Capital — Global CVC business Impact financing business • Achieve strategic investment that emphasizes Southeast Current status: Pilot implementation Asian and India パ • Strengthen branding and deal
Slide 29: Reference information
Reference information confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved. 29
Slide 30: Comparison of Share for Payment Methods in Consumer Spending in Japan and the U.S.
(Reference) Comparison of Share for Payment Methods in Consumer Spending in Japan and the U.S. Japan (FY 2019) U.S.A. (FY2018 → FY2023 forecast) ※ YoY in ( ) ※share forecast of FY2023 in ( ) ※Japan: Calculated by our company based on sources such as the Ministry of Economy, Trade and Industry, New P
Slide 31: Customer Ratio by Investment Profit/Loss of Major Online Investment Managers
Reference: Customer Ratio by Investment Profit/Loss of Major Online Investment Managers SAISON ASSET MANAGEMENT emphasizes investor return and realizes a positive investment profit for numerous customers As of March 31, 2018 As of March 31, 2019 As of March 31, 2020 Percentages are the ratio of cust
Slide 32: Information on Corporate/IR Website and Integrated Report
Reference: Information on Corporate/IR Website and Integrated Report Comprehensive renewal of corporate/IR website Issuance of integrated report to with the aim of strengthening contents and enhance disclosure improved usability of financial and non-financial (April 2021) information (first edition