Slide 1: Credit Saison Co., Ltd.
Credit Saison CO.,LTD operates a Akagi 2017. 5. 15 Nature Park. CREDIT SAISON CO., LTD.
Slide 2: FY2016 Highlights and Contents
Saison American Express® Card PLATINUM GOLD ◆ FY２０１６ Highlights B L U E Ⅰ． FY２０１６ Financial Report Ⅱ． FY２０１７ Management Strategies PEARL Ⅲ． ＥＳＧrelated This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are not guarantees of futur
Slide 3: Main Topics of 2016 Fiscal Year
Main Topics of 2016 Fiscal Year Payment Card Business Finance Finance Business ■ Saison Cards and UC Cards started to use ■ Increase in balance of asset formation loans to 216.9 Apple Pay billion yen (+72% from the previous term-end) ■ ”mijica” with Japan Post Bank and Japan Post Co., Ltd. and “Parc
Slide 4: Ⅰ. FY2016 Financial Report
Ⅰ．FY２０１６ 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 Machi Card Fest campaigns Holding 14 times 7. Financial Indices / Dividends （Sapporo・Se
Slide 5: 1. Financial Results
１. Financial Results (¥Billion) FY2015 YoY(%) FY2016 YoY(%) FY2017 YoY(%) （Target） Operating 269.9 104.2 278.9 103.3 292.0 104.7 Consolidated Revenues Ordinary Income 43.8 100.3 53.0 121.1 57.0 107.4 Quarter Net Income 26.1 207.2 42.2 161.5 40.0 94.7 Earnings per Share (¥) 147.37 214.3 258.70 175.5
Slide 6: 2. Results by Business Segment
２. Results by Business Segment （ ¥Billion ） Operating revenues Operating income FY2015 FY2016 YoY(%) FY2015 FY2016 YoY(%) Credit Service 204.2 211.6 103.6 8.2 7.9 96.4 Lease 13.5 13.2 98.1 5.1 4.3 84.4 Finance 27.3 31.0 113.7 15.8 12.8 81.1 Real Estate- related 15.4 13.6 88.2 6.4 4.9 76.3 Entertainm
Slide 7: 3. Contribution by Consolidated Companies
３. Contribution by Consolidated Companies Ordinary income: Difference between Non-consolidated Consolidated Difference consolidated and non-consolidated figures Ordinary Contribution to consolidated results income ¥28.2 billion ¥53.0 billion ¥24.8 billion Contribution Contribution to Major consolida
Slide 8: 4-①. Main Indices (Non-Consolidated)
４-①．Main Indices (Non-Consolidated) FY2015 FY2016 FY2017（Target） YoY(%) YoY(%) YoY(%) New Applications (millions) 3.30 109.8 3.23 98.1 3.18 99.8 New Card Issued (millions) 2.62 110.5 2.61 99.8 2.60 99.8 Total Cardholders 25.61 26.46 27.39 (millions) 102.6 103.3 103.5 （＋0.64） （＋0.85） （＋0.93） Active C
Slide 9: 4-②. Main Indices (Non-Consolidated)
４-②．Main Indices (Non-Consolidated) ■Transition in Total and Active Cardmembers ■Transition in Transaction Volume (Ten thousand people) (billion yen) 3,500 6,000 2,739 2,561 2,646 2,475 2,497 5,000 4,790 Cardmambers Total 2,500 4,477 4,258 4,089 4,000 3,853 1,592 1,420 1,458 1,477 1,478 107.0% 1,500
Slide 10: 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% 2.92% Cash Advance 3% 3% 2.32% 2.40% 2.45% 2.02% 2.18% 2% 1.51% 1.48% 1.56% 1.58% 2% 1.71% 1.46% 1.58%Credit Card 1.28% 1.32% 1% 1% 1.36% 1.40
Slide 11: 6. Interest Repayment Claims
６．Interest Repayment Claims Gap from the initial assumption Increase of provision for loss due to continuation of trends The prediction revision to on interest repayment by where new claims handled by continuation of 15.9 billion yen, lawyers and dudicial scrivener the similar trend remain high look
Slide 12: 7. Financial Indices・Dividends
７. Financial Indices ・Dividends Financial Consolidated Non-Consolidated Indices Difference Difference Shareholders’ Equity ¥445.0 billion ＋26.3 billion ¥374.4 billion ＋15.0 billion Total Assets ¥2,720.0 billion ＋169.0 billion ¥2,623.6 billion ＋154.8 billion Shareholders’ Equity Ratio 16.4% △0.0% 14.
Slide 13: 8. Financial strategy
８. Financial strategy ■Fund Structure Changes in Interest-bearing Basic Funding Policy Debt (Non-Consolidated) ◆Flexible funding corresponding to [ Rating ] Long-term Ratio : 68％ environmental changes in Japan and Fixed Ratio : 62％ overseas R&I A+ ◆Development of funding source 1.29% Average Funding
Slide 14: (Reference) Progress Status of Associated Core System Development
(Reference) Progress Status of Associated Core System Development System tests with top priority on safety and reliability Purposes of system development Benefits of system development ■ Customer data inquiry on a real-time basis by ■ Aiming at efficiency in developing additional providing 24hours 3
Slide 15: 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 16: FY2017 Management Vision
FY2017 Management Vision Medium-Term Management Vision Neo Finance Company in Asia FY2014～ Change of business model FY2016 FY2017 FY2018 2025 ～ The next 10 years ～ Thorough pursuit of customers' needs and convenience CREDIT The most suitable solutions for individuals and corporations SAIS N I II lea
Slide 17: Challenge to the new business model (1)
Challenge to the new business model (1) Model Changes in Card Business (Progress and expansion of settlement service) • Realization of immediate issuing The future device: Cardless and settlement by development of Cardless settlement schemes Smartphone / app settlement, Biometrics Authentication, B2
Slide 18: Challenge to the new business model (2)
Challenge to the new business model (2) Automated and enhanced customer response and back office operations by utilizing technologies Automated customer response Automated totalization operations etc. by AI chatbots by robotics 住所のご変更ですか？ AI はい こちらからお手続きを… Entry into Big Data Business in a full scal
Slide 19: Challenge to the new business model (3)
Challenge to the new business model (3) Enhance versatility, liquidity and added value of Enhance “Eikyufumetsu points” and create the most powerful “Point Eco System” ① Point issuing ② Point exchange Our own credit card holders Exchange for Amazon gifts, nanaco miles and limited articles etc. ＋ Enh
Slide 20: Challenge to the new business model (4)
Challenge to the new business model (4) Full-scale entry into the retail finance business in the Asia area Capturing inbound demand (Navigation of Asian customers to business partners) Asia JAPAN Expansion of footprints Support to navigate through joint venture and overseas visitors to collaboration
Slide 21: Innovation and Advancement of Card Business Model (1)
Innovation and Advancement of Card Business Model (1) Payment Card Business ～ Credit Cards Re-development of settlement business strategies by Acquiring AMEX status brand appeal Business area expansion ■ Enhancement of convenience with product ■ Promotion of credit card payment in the B2B lineups to
Slide 22: Credit Card ~Asset Business~
Payment Credit Card ～Asset Business～ Card Business Cash Advances Shopping Revolving (Billion yen) 6,000 600 Shopping Revolving ◆Introduction of payment options to meet customer needs 5,000 500 408 “Revolving Payment Declaration”, ”Revolving Payment”, “Change to Revolving Payment” 381 ◆Promotion of r
Slide 23: Innovation and Advancement of Card Business Model (2)
Innovation and Advancement of Card Business Model (2) Payment Card Business ～Prepaid Cards Securing the position as a prepaid card service provider by diversifying prepaid card products ◆ Promotion of new collaboration and value addition by utilizing the know-how as a pioneer 【FY2016: Issuing of new
Slide 24: Further Growth Strategies in Finance Business (1)
Finance Further Growth Strategies in Finance Business (1) Finance Business Lease & Rental Credit Guarantee ◆Informing a wide variety of customers about the ◆Enhancement of comprehensive sales activities strong point of the service that can be used for targeting important dealers utilizing the busine
Slide 25: Further Growth Strategies in Finance Business (2)
Further Growth Strategies in Finance Business (2) Finance Finance Business Flat 35 Asset Formation Loan ◆Support for enhancement of collaboration with main ◆ Customization of marketability matching market agencies as well as operation of new agencies in a full needs scale ◆Enhancement of the respons
Slide 26: Enhancement of Corporate Business Power and Strategic Solution Tools
Enhancement of Corporate Business Power and Strategic Solution Tools Solution Business Facilitation of cashless settlement of corporate markets by provision of corporate solution tools to meet needs Launch of “Nitori UC Corporate Cards” ◆Sales expansion of corporate products by exhibiting of the “Co
Slide 27: Expansion of Strategic Strength by New Business Creation (1)
Expansion of Strategic Strength by New Business Creation (1) Internet Content Business Deployment of data business in a full scale by utilizing big data infrastructures Customer base Acquisition of WEB Cards Activation Customer acquisition Content Content distribution Acquisition of 100% shares of u
Slide 28: Expansion of Strategic Strength by New Business Creation (2)
Expansion of Strategic Strength by New Business Creation (2) Internet Content Business “DG Lab,” an open-innovation type research & development organization The organization was established in collaboration between Digital Garage, Kakaku.com. and Credit Saison, in order to develop innovative technol
Slide 29: Investment in venture funds
Expansion of Strategic Strength by New Business Creation (3) Internet Content Business [Examples of Introduced Alliance and Business Partners] Investment in venture funds Capital / business Japan alliance Introduction of each partner, as × well as companies that the funds invest Investment in Subsid
Slide 30: Acceleration of Prior Investments in Asia Business (1)
Acceleration of Prior Investments in Asia Business (1) Global Asia Business ■ Comparison of ASEAN (10 countries) and Japan Populati Per capita (Year 2016) on GDP Growth Ave. Ave. life (billion dollars) GDP (dollars) rate age span ・Population：5.0 x Japan ・Area：12 x Japan (M ppl) ・GDP：54％ of Japan ・Tr
Slide 31: Acceleration of Prior Investments in Asia Business (2)
Global Acceleration of Prior Investments in Asia Business (2) Asia Business Deployed overseas bases Shanghai Local Affiliate “Saison Business China (shanghai) Myanmar Consulting (Shanghai)” Laos Vietnam (Hanoi/Ho Chi Minh) Vietnam Thailand Capital participation in “HD Indonesia (Jakarta) SAISON,” a
Slide 32: Acceleration of Prior Investments in Asia Business (3)
Global Acceleration of Prior Investments in Asia Business (3) Asia Business Vietnam Established in May 2015 / Indonesia Business started in Nov 2015 Saison’s stake: 49％ / Saison’s stake: 70％ Joint venture business with HD Bank Joint venture business with Pt. Modern Internasional Tbk. “HD SAISON Fina
Slide 33: Securing the Differential Position in the Asset Management and Formation Market
Securing the Differential Position in the Asset Management Investment and Formation Market Asset Management Business Familiar and easily used asset management service diversify and enrich the way customers use their money ◆ Establishment of capital and business alliance among three companies: Japan
Slide 34: Views on ESG for Sustainable Growth
Views on ESG for Sustainable Growth Based on the management philosophy of “Leading-Edge Service Company”, we aim for sustainable enhancement in our corporate value by offering contribution to social development and problem solving that only we can do, and finally by building more convenient and rich
Slide 35: Environment (Activities for environmental preservation)
Environment (Activities for environmental preservation) Promotion of environmental preservation activities through activities such as operation of Akagi Nature Park, contribution to the “Funds for Construction of Kanagawa Animal Protection Center”, and use of eco-friendly materials. Continuation of
Slide 36: Social (Efforts for social contribution activities)
Social (Efforts for social contribution activities) ＜Corporate Social Responsibility (CSR) / social contribution activities＞ ＜Diversity＞ We are engaged in Corporate Social Responsibility (CSR), believing that “the Company that bears social responsibilities should not only fulfill its By promoting th
Slide 37: Governance (Activities for governance enhancement)
Governance (Activities for governance enhancement) Recognizing it is vital to enhance management supervisory capability to secure transparency in management and realize management targets, we carry out various activities for enhancement of corporate governance. Enhancement of effectiveness Strengthe
Slide 38: (Reference) Comparison of Share for Payment Service Methods in Consumer Spending
(Reference) Comparison of Share for Payment Service Methods in Consumer Spending in Japan and the U.S. Japan (FY2015) U.S.A. (FY2015 → FY2020 forecast) ※【ＹｏＹ】 Collected from Prepaid card, other Pay-easy convenience stores 4.1％ （FY2020：3.5％） 5.2％[1.0p] 3.5％[0.1p] Check 9.5％ Cash Transfer, account （FY
Slide 39: (Reference) Domestic Market Share (Shopping Transaction Volume)
(Reference) Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【2015 fiscal year】 Regional banks Aplus 1.3％ FC/BC Our Group Other 15.1％ Seven Card Service 1.5％ 10.2％ Our Company MI Card 2.3％ (non-consolidated) 9.3％ Epos Card 2.6％ Joint Venture Card c
Slide 40: memo
memo 40