Slide 1: FY2012 2nd Quarter Management Report
FY2012 2nd Quarter Management Report November 9, 2012 CREDIT SAISON CO., LTD. CORPORATE STRATEGY ２０１２ CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA ◆ FY2012 First Half Business Highlights ◆ FY2012 First Half Financial Report ◆ Medium-Term Management Strategy/ Priority Policies, FY2012 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 2012 Fiscal Year
Main Topics of the First Half of 2012 Fiscal Year Apr. ◆ The Company begins handling “Flat 35 Plus”, housing loan packages. ➥ In addition to Flat 35 long-term fixed rate housing loans, the Company offers financing for the 10% not covered by this program. ◆ The Company establishes new Atrium Co., Ltd
Slide 4: FY2012 First Half Financial Report
FY2012 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. Progress of the business of real estate business (Atrium Co., Ltd.) 6. Main Indices (Non-Consolidated) 7. Trends of the Ca
Slide 5: 1. Financial Results
1. Financial Results (¥ billion) FY2011 FY2012 nd YoY (%) YoY (%) FY2012 YoY (%) 2 Quarter 2nd Quarter Operating 127.5 87.8 122.4 96.0 246.0 100.8 Revenues Consolidated Ordinary 24.9 141.7 27.9 111.9 51.0 132.2 Income Quarter Net 17.5 176.7 17.6 101.1 30.5 322.6 Income Earnings per 95.37 175.7 96.38
Slide 6: 2. Revision of Full Year Financial Forecasts
2. Revision of Full Year Financial Forecasts （¥ billion） Estimate New Estimate Difference Reasons for the (Published on May 16) (A) (B) (B-A) revision Operating 250.0 246.0 (4.0) 【Consolidated revenue factor】 ・In tandem with the Consolidated Revenues reorganization of the Real Ordinary Estate segmen
Slide 7: 3. Results by Business Segment
3. Results by Business Segment （¥ billion） Operating Revenues Operating Income FY2011 FY2012 FY2011 FY2012 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 99.9 95.3 95.4 14.2 12.6 89.3 Lease 7.3 7.2 98.1 1.8 3.4 182.5 Finance 7.6 8.4 111.5 3.5 4.5 127.9 Real Estate- re
Slide 8: 4. Contributions by Consolidated Companies
4. Contributions by Consolidated Companies 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 Contribution Contribution to to consolid
Slide 9: 5. Progress of the real estate business (Atrium Co., Ltd.)
5. Progress of the real estate business (Atrium Co., Ltd.) The assets, divided into Retain business and Liquidation business, are compressed. ＜Retain business＞ ◆ Appropriate replacement of assets specialized in small and medium-sized, well-selected ones in the real estate liquidation business ◆ Held
Slide 10: 6. Main Indices (Non-Consolidated)
6. Main Indices (Non-Consolidated) FY2011 FY2012 FY2012 2nd Quarter YoY(%) 2nd Quarter YoY(%) （Estimate） YoY(%) New Applications 1.23 87.8 1.62 131.7 3.00 115.4 (millions) New Card Issued 0.93 83.8 1.22 131.1 2.20 112.2 (millions) Total Cardholders 24.89 24.73 25.20 87.7 99.4 101.8 (millions) （△3.49
Slide 11: (Reference) Share of Cards
（Reference）Share of Cards The transaction volume per card for premium cards is approximately 4 times that of the other cards. 【Share of Total Cardholders】 【Share of Shopping Transaction Volume】 Premium MMC 4.5% SAISON SAISON Proper Premium Proper 10.1% 17.1%Takashimaya 16.1% 18.8% LABI 3.9% Takashim
Slide 12: 7. Trends of the Cash Advance Business
7. Trends of the Cash Advance Business Aiming for a steady recovery of Transaction Volume of Cash Advances ■ Transaction volume trends ■ Balance trends (billion yen) 0% 500 349.3 △10% 400 326.6 302.4 △20% 300 284.2 270.2 257.2 244.0 △30% 200 △40% 100 △50% 1Q 2Q 3Q 4Q 1Q 2Q 0 1Q 2Q 3Q 4Q 1Q 2Ｑ 4Q 1Q
Slide 13: 8. (1) Changes in the number of interest repayment claims processing
8. (1)Changes in the number of interest repayment claims processing The interest repayment claims are in the downward trend. Monthly average number 7,000 5,900 6,000 5,100 4,900 4,700 5,000 4,400 4,000 3,100 3,000 2 ,5 0 0 3,200 3,200 1 ,8 0 0 2,000 2,500 2,700 2,300 1,000 1,700 900 1,300 0 '05 '06
Slide 14: 8. (2) Delinquency ratio/Credit cost/Provision for loss on interest repayment
8. （2）Delinquency ratio/Credit cost/Provision for loss on interest repayment Improvement of the asset quality continues by credit screening and collection policies. ■Delinquency ratio (over 90 days) ■ Credit cost results and estimate 6% 5.39% 5.41% Cash Advances (Unit: billion yen) 5% 4.12% 3.93% 2n
Slide 15: 9. Financial Indices
9. Financial Indices Improve asset efficiency and the shareholders’ equity ratio rises to 17.1% (¥ billion) Consolidated Non-consolidated change from change from end of FY2011 end of FY2011 Shareholders’ 365.8 +13.1 329.9 +7.4 Equity Total Assets 2,141.7 (14.1) .1 2,052.4 (7.0) Shareholders’ 17.1% +
Slide 16: (Reference) Fund Structure
（Reference）Fund Structure (Unit: billion yen) 【Consolidated】 【Non-Consolidated】 Total Balance: 1,409.4 Total Balance: 1,381.4 Corporate Corporate bonds bonds CP 250.6 250.0 40.0 CP 40.0 Liquidation of receivables Liquidation of 87.1 Debts receivables 87.1 Debts 1,031.6 1,004.3 Long Term Ratio ： 81%
Slide 17: Management Strategies
Management Strategies Ⅰ． Medium-term management concept Ⅱ． Management Strategies in fiscal 2012 Ⅲ．Priority Policies, FY2012 Second Half CORPORATE STRATEGY ２０１２ CREDIT SAISON CO., LTD. 15
Slide 18: Managerial concept for the medium term
Managerial concept for the medium term Operate based on Collaborative Management utilizing SAISON-AMEX Cards and other strategic weapons Multiple business spheres Overwhelming customer Originality of products and channels/ services, with credit cards as the axis alliance partners extensive customer
Slide 19: Business strategy for the FY2012
Business strategy for the FY2012 By developing our credit business on the firm basis of specialization and alliances between all of the companies within the scope of consolidation, becoming No. 1 in the industry in terms of ability to acquire new members and transaction volume, at the same time expa
Slide 20: Increasing the Customer Base Through New Card Acquiring
Increasing the Customer Base Through New Card Acquiring Strengthening our structure to acquire new applications to expand our customer base ■ Conducting promotions in partnership with our partner/clients - Working closely with key clients such as Mitsui Outlet Park, Parco and Seiyu to strengthen cus
Slide 21: Measures to Expand Shopping Transaction Volume
Measures to Expand Shopping Transaction Volume Conducting promotions targeting key markets ■ Promoting cards with special advantages (point accrual, etc.) - Incentivizing overall Saison use in partnership with companies such as Seiyu, the Seven & I Group and Mitsui Fudosan - Large-scale national pro
Slide 22: Expanding Our Presence in the Net Business
Expanding Our Presence in the Net Business Aggressive expansion of online operations through Eikyufumetsu.com ■ Rapidly expanding transaction volume of eikyufumetsu.com - Raising the profile of eikyufumetsu.com through major media and the Company’s own media - Improving the rate of repeat by targeti
Slide 23: Eikyufumetsu.com Transaction Volume / Internet Members Transition
Eikyufumetsu.com Transaction Volume / Internet Members Transition (ten thousand people) (¥ one hundred million) September 2010 2012 1Q Also open to non-membership card 7 million members “Eikyufumetsu.com” 140 Integration-related services 900 Transaction volume Internet members 2010 3Q 800 120 5 mill
Slide 24: Reinforcement of Finance Business: Lease and Rental Business
Reinforcement of Finance Business: Lease and Rental Business Expanding market share and the scope of product transactions ■ Expanding transaction volumes by strengthening sales to dealers associated with major manufacturers - Strengthening sales approach for dealers associated with multifunction pri
Slide 25: Reinforcement of Finance Business: Credit Guarantee Business
Reinforcement of Finance Business: Credit Guarantee Business Accumulation of a high-quality loan portfolio through partnership with regional financial institutions is proceeding better than planned. ■ Continuing partnership negotiations with all credit unions - Focus on approaching the “credit union
Slide 26: Reinforcement of Finance Business: Flat 35 Long-term Fixed Rate Housing Loans
Reinforcement of Finance Business: Flat 35 (Long-term Fixed Rate Housing Loans) Strengthening of sales to become No. 1 in market share ■ Expanding approaches to partners using “Flat 35 Plus” and bridging loans - The Company expanded approaches to Financing of 100% of the home purchase price partners
Slide 27: Overseas Business / Life Assist Points
Overseas Business / Life Assist Points Start of full-fledged entry into the rapidly growing markets of Asia ■ Development of business in retail finance in the markets of Asia - Established a representative office in Hanoi, Vietnam in June ⇒ Efforts to obtain the necessary licenses for the early deve
Slide 28: Overview of Credit Saison
Overview of Credit Saison ■ Brand share of Credit Saison [ FY2011 ] Card members Card shopping transaction volume JCB JCB AMEX 9.1% AMEX 6.6% (▲0.6p) (▲0.3p) 10.5% 10.7% (＋3.5p) (＋2.5p) Visa Visa 49.0% 56.9% MasterCard (▲1.7p) MasterCard (▲1.0p) 31.5% 25.8% (▲1.2p) (▲1.2p) Visa Master AMEX JCB Card
Slide 29: Saison American Express Card Expansion of Service Partners
Saison American Express® Card Expansion of Service Partners 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 system (separate expenses to be paid)
Slide 30: Credit Card Market in Japan
Credit Card Market in Japan Share by comparing means of payment to total personal consumption in Japan and the United States U.S.A. (actual figures for FY 2010 and forecast for FY 2015) Japan （FY2011） Collected from Prepaid cards, etc. Pay-easy convenience stores 4.4％ 2.7％ （2015：4％） 2.8％ Cash Transf
Slide 31: Changes in domestic credit card industry
Changes in domestic credit card industry 2000～01 2002～03 2004～05 2006～07 2008～09 2010～11 Enactment of revised Supreme Court decision to return Enactment of Article 3 of the Full enactment of the revised Investment Act excessive interest payments revised Moneylending Control Moneylending Control Act
Slide 32: Reorganization of the Domestic Credit Card Industry
Reorganization of the Domestic Credit Card Industry Mizuho Credit Saison Resona Sumitomo Mitsui FG FG HD Sumitomo Mitsui Card Cedyna Orico Resona Card Japan Post Bank Idemitsu Takashimaya Yamada Shizugin Credit Credit Financial Saison Card Pocket Famima Card Credit Aeon Seven Card Credit Daiwa House
Slide 33: Domestic market share (shopping transaction volume)
Domestic market share (shopping transaction volume) ■ Card shopping transaction volume (issuer base) [2011 fiscal year] FC and BC of Seven Card Service 1.5％ regional banks 6.5％ Our company G APLUS 1.7％ 17.2％ EPOS Card 1.7％ Our company Non-consolidated MI Card 2.4％ 10.1％ VIEW Card 3.3％ Joint Venture
Slide 34: CSR Activities
CSR Activities The Company is continuing its program of seasonal openings geared to the natural beauty of each of the seasons spring, summer, early autumn and late autumn. From the current fiscal year, the Company is introducing programs such as “handicraft studio,” “night hike” and “bicycle photo t