Credit Saison Co., Ltd. · TSE:8253
Credit Saison — H1 FY2014 Earnings Presentation
40 slides from Credit Saison's earnings presentation, Nov 10, 2014
Slide 1: FY2014 2nd Quarter Management Report
FY2014 2nd Quarter Management Report 2014. 11.10 CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA ◆ FY2014 First Half 頭は使いよう。 カ ー ド も 使 い よ う。 Business Highlights Ⅰ．FY2014 First Half Financial Report Ⅱ．FY2014 Management Strategies Ⅲ．Social Contribution Activities This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are no
Slide 3: Main Topics of the First Half of 2014 Fiscal Year
Main Topics of the First Half of 2014 Fiscal Year Key phrases in Small and Big data medium sized Emerging Cashless Venture government strategy enterprise country Card Business ■ Started offering LIXIL Home Renovation Settlement Service using mobile terminals Launched by the nationwide LIXIL home-ren
Slide 4: FY2014 First Half Financial Report
Ⅰ． FY2014 First Half Financial Report 1. Financial Results 2. Results by Business Segment 3. Contributions by Consolidated Companies 4. Main Indices (Non-Consolidated) 5. Trends in the credit business 6. Credit risk / Credit cost 7. Interest repayment claim 8. Financial Indices 9. Revisions to forec
Slide 5: Financial Results
１. Financial Results (¥ billion) difference FY2013 YoY FY2014 YoY FY2014 from the YoY(%) 2nd Quarter (%) 2nd Quarter (%) （Estimate） previous year Operating Revenues 123.9 101.2 126.5 102.1 256.0 ＋3 103.4 Consolidated Ordinary Income 27.3 97.8 26.6 97.4 49.0 ＋9 110.3 Quarter Net Income 17.6 99.8 18.5
Slide 6: Results by Business Segment
２. Results by Business Segment (¥ billion) Operating Revenues Operating Income FY2013 FY2014 FY2013 FY2014 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 93.8 96.4 102.8 9.9 9.6 96.8 Lease 6.9 7.0 101.5 2.8 3.0 107.9 Finance 9.0 10.7 118.2 4.5 6.0 133.8 Real Estate- 7
Slide 7: Contributions by Consolidated Companies
4. Contributions by Consolidated Companies Ordinary income: Difference between consolidated and non-consolidated figures Non-consolidated Consolidated Difference Ordinary Contribution to consolidated results income ¥21.9 billion ¥26.6 billion ¥4.6 billion Contribution Contribution to Major consolida
Slide 8: Progress of the Real Estate Business (Atrium Group)
(Reference) Progress of the Real Estate Business (Atrium Group) Promoting reduction of assets according to plan, with a keen eye on market trends <Stabilization of the management base, and improvement in profitability> ■ Business to be adjusted - Started selling off and developing large assets ■ Con
Slide 9: Main Indices (Non-Consolidated)
6. Main Indices (Non-Consolidated) FY2013 FY2014 FY2014 2nd YoY(%) 2nd YoY(%) （Estimate） difference from the previous YoY(%) year Quarter Quarter New Applications (millions) 1.77 109.3 1.49 84.4 3.55 0.15 106.9 New Card Issued (millions) 1.28 105.0 1.17 92.0 2.60 0.10 102.8 Total 24.81 24.80 25.25 C
Slide 10: Trend of Credit Business (Shopping)
5-①. Trend of Credit Business (Shopping) Impact from reaction to the increase in the consumption tax is limited to a few industries, such as department stores and household electric appliances - Our results are outstripping the industry average in sectors such as supermarkets - and shopping centers
Slide 11: Trend of Credit Business (Shopping Revolving)
5-②. Trend of Credit Business (Shopping Revolving) Transaction volume and balance are both trending higher than the annual plan (4.3 billion yen above plan at start of fiscal year) ■ Trends in the number of customers with account ■ Trends in transaction volume and balance balances and unit price of
Slide 12: Trend of Credit Business (Cash Advance)
5-③. Trend of Credit Business (Cash Advance) Transaction volume is on a firm trend. Cash advances balance has turned a corner and are trending upward from this year - Increases in credit-limit grant rates and desired credit limits are driving both an expansion in new customers and continuing increas
Slide 13: Credit Risk / Credit Cost
6. Credit Risk / Credit Cost ■ Trends in Credit Risk 5% Delinquency of over 90 days 6% 5.41% Delinquency of over 90 days (Consolidated) (Non-Consolidated) 4% 5% Credit 3.40% 3.93% Card 2.66% 4% 3.32% Cash 3% 2.92% Advance 2.02% 3% 2.39% 2.32% 2% 1.51% 2.11% 1.48% 1.71% 2% 2.38% 1.28% 1.25% 1% 1.84%
Slide 14: Interest Repayment Claims
7. Interest Repayment Claims Aggresive advertising and public-relations efforts by some judicial scriveners, the trend this year for loans requiring intervention by a third party exceeds that of the previous year ■ Trends in new claims handled by lawyers and other proxies ■ Trend of provision for lo
Slide 15: Financial Indices
８. Financial Indices Consolidated Non-consolidated change from change from end of FY2013 end of FY2013 Shareholders’ 436.8 billion ＋17.6 380.0 billion ＋12.2 Equity Total Assets 2,318.1 billion ＋32.2 2,230.9 billion ＋30.4 Shareholders’ 18.8% ＋0.5% 17.0% ＋0.3% Equity Ratio 13
Slide 16: Revisions to Forecast of Business Results
9. Revisions to Forecast of Business Results (¥Billion) Estimate New estimate Difference (Published (B) (B-A) Reasons for the revision on May 14) (A) Operating [Factors in top-line increases] Consolidated 253.0 256.0 +3.0 ◆Operating revenues Revenues - Growth in the shopping Ordinary revolving balan
Slide 17: Fund Structure Changes in Interest-bearing Debt
(Reference) Fund Structure Changes in Interest-bearing Debt (Non-Consolidated) Diversification of fund raising strategies to prepare for future risk of rise in interest rates and asset expansion [Rating] (Billion yen) Average Funding R&I A+ 1.33% 1.41% 1.29% 1.15% 1.02% FY2014 bond issue 20,000 2,00
Slide 18: FY2014 Management Strategy
II. FY2014 Management Strategy Economic indices for the 10 countries of ASEAN ◆ Management Average Population GDP GDP per vision (2013) (million people) (billion dollars) capita (dollars) Growth rate Average age life expecta ncy ◆ Priority Policies, Indonesia 248.0 870.3 3,510 5.8% 27 71 FY2014 Seco
Slide 19: Management Vision and Priority Policies, FY2014 Second Half
◆Management Vision and Priority Policies, FY2014 Second Half Taking on a challenge of changing the business model through strengthening of corporate sales under the motto of "Strategic products x All kinds of corporations and individuals in and outside the country x Diverse domain identities" Also,
Slide 20: Business Strategy: Business Model Change
Business Strategy: Business Model Change - Only companies that change the society can grow = let's change Credit Saison In FY 2013, as a result of "collaborational management", the Company created on a bottom-up basis many "strategic weapons", resulting in the present capability to engage in "comple
Slide 21: Provide Customer Solutions Through Collaboration of Strategic Products
Provide Customer Solutions Through Collaboration of Strategic Products ④ High onsite capability Ⅰ ① Credit card customer base ② Saison American Express® Card ③ Eikyufumetsu Points 1 “Store/Counter Network” Credit Business Group 35 million members Consolidated shopping High status members with Point
Slide 22: Tackling the Corporate Sector
Tackling the Corporate Sector Using all strategic products to promote cashless settlement in corporate business Card issuance: up 20% YoY Transaction volume: up 22% YoY (Million people) ■ Expanding operations with corporate 1.2 Cardholders 150% and individual businesspeople using Comparison of card
Slide 23: Expanding the Customer Base Using Saison's Ability to Open New Card Accounts
Expanding the Customer Base Using Saison’s Ability to Open New Card Accounts Expanding the customer base with focus on cards with high usage volume 250% New issuance of high-level AMEX cards, comparison with previous ■ Expansion of Saison American Express® Card year Transaction volume on high-level
Slide 24: Measures to Expand Shopping Transaction Volume
Measures to Expand Shopping Transaction Volume Increasing brand value by expanding exposure of the Saison and UC brands through advertising and public relations ■ Measures to expand transaction volume using media strategies - Measures to promote active card use aimed at all Saison and UC members - P
Slide 25: Overthrowing the Cash Market
Overthrowing the Cash Market Aiming to be Japan’s NO.1 prepaid-card operator: Total issuance of prepaid cards tops 10 million cards ■ Promoting cashless transactions through use of prepaid cards - In addition to the Cocokara Club Card, Saison is starting to accept enrollment in prepaid cards with th
Slide 26: Comparison of Share for Payment Service Methods in Japan and the U.S.
Comparison of Share for Payment Service Methods in Consumer Spending in Japan and the U.S. Japan (FY2013) * Preliminary base U.S.A. (FY2012 → FY2017 forecast) Prepaid card, other Collected from 4.3％ Pay-easy convenience stores (FY2017: 4.0%) 3.4% 3.2% Cash Check Transfer, account 13.4％ 20.1％ Transfe
Slide 27: Master Concept of the Life Assist Point System
Master Concept of the Life Assist Point System Continuing efforts to bring the Life Assist Point System to fruition [Background] (1) In order to prevent the sagging in the economy after the current increase of the consumption tax, economic and monetary policies of Shinzo Abe worked out an additional
Slide 28: Benefits of Life Assist Point System (Forecast)
Benefits of Life Assist Point System (Forecast) [Image of effects from implementation of Life Assist Point System] Before implementation (FY2012) ① Net increase in final Increase consumption expenditures of the GDP After by +2.5% Approx. 12.2 trillion yen Pay-easy Collected from (Final private consu
Slide 29: Further Development of the Internet Business
Further Development of the Internet Business Improving the convenience of online services and innovating with venture businesses to create new business opportunities ■ Activating Internet members - Saison Portal smartphone application for card members -> Expanding transaction volume by attracting pe
Slide 30: Expansion of the Finance Business – Lease & Rental Business
Expansion of the Finance Business – Lease & Rental Business Expanding the market by strengthening sales efforts leveraging existing shops (Unit:100 million yen ) ■ Expanding transactions with existing shops ■ Transaction volume 1,200 - Advancing sales support by deploying joint sales-promotion effor
Slide 31: Expansion of the Finance Business – Credit Guarantee Business
Expansion of the Finance Business – Credit Guarantee Business Expanding high-quality guarantee balances by forming close relationships with partner financial institutions (Unit:100 million yen ) ■ Building up balances with existing partners Guarantee balance (non-consolidated) - Promotion of customi
Slide 32: Expansion of the Finance Business – Finance Business
Expansion of the Finance Business – Finance Business Business Actively promoting the loan business to utirize the Saison brand ■ Strengthening sales of Flat 35 - Speedy examination and flexible response to customer needs (customer response on weekends and holidays, etc.); promotion of use of Saison
Slide 33: Asian Strategy Focusing on ASEAN
Asian Strategy Focusing on ASEAN Entry into retail finance business through multi-collaboration with local firms and Japanese-owned companies 中国 Kunming Taipei Overseas bases Vietanam Natural gas/OilSaison Sino-Vietnam Consulting Company pipeline(an overseas Limited Expressway Taiwan Saison Business
Slide 34: Asian Strategy Focusing on ASEAN
Asian Strategy Focusing on ASEAN ■ Image of entry into the nonbank business in the Asian countries Establishment of an independent company by Schemes & know-how of acquiring a non-bank license the Company's business Capital subscription to and merger and acquisition with the existing nonbank compani
Slide 35: Changes in Domestic Credit Card Industry
(Reference) Changes in Domestic Credit Card Industry 2000～02 2003～05 2006～08 2009～11 2012～14 Enactment of revised Investment Supreme Court decision to return Full enactment of Article 3 of the excessive interest payments Act (Maximum interest: 29.2%) Enactment of Article 1 and 2 of the revised Money
Slide 36: Restructuring of the Domestic Credit Card Industry
(Reference) Restructuring of the Domestic Credit Card Industry Sumitomo Mitsui Mitsubishi UFJ FG Mizuho Credit Saison Resona FG FG HD Mitsubishi UFJ NICOS Sumitomo Mitsui Card Resona Card Idemitsu Takashimaya Yamada Shizuoka Bank Credit Credit Credit Saison Card Pocket Card JAL Card Aeon Seven Card
Slide 37: Domestic Market Share (Shopping Transaction Volume)
Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【2013 fiscal year】 Regional banks Seven Card Service 1.5% FC/BC Our Group Other 16.1% Aplus 1.6% 7.0% Epos Card 2.1% Our Company (non-consolidated) 9.7% MI Card 2.4% Joint Venture Card companies 6.4%
Slide 38: Promoting Sports Japan's National Soccer Teams
Promoting Sports Japan’s National Soccer Teams Presentation of Neo Money to Japan’s national soccer teams Schedule Japan Men’s National Soccer Team Nov. 14, Exhibition game in Osaka against 2014 Honduras Nov. 18, Exhibition game in Aichi against 2014 Australia Jan. 2015 Asia Cup (Australia) Schedule
Slide 39: Activities to Protect the Natural Environment
Activities to Protect the Natural Environment Beginning in 2010, Saison is taking an active part in efforts to preserve Japan’s abundant natural beauty for future generations, through the operation of Akagi Nature Park. Over the four years since that beginning, over 120,000 people have visited the p
Slide 40: Social and Cultural Activities
Social and Cultural Activities Building bridges to communities through activities such as exchange of Eikyufumetsu Points Concert by tenor José Carreras Support the Center for iPS Cell Research and Application! Please support the Center for iPS Cell Research and Application, Kyoto University, direct