Slide 1: Financial Results Briefing of FY2022
Financial Results Briefing of FY2022 May 15, 2023 Credit Saison Co., Ltd.
Slide 2: Agenda
AGENDA Financial Results of FY2022/ Business Results Forecast for FY2023 Financial Policy & Capital Policy Managing Executive Officer, CFO Shingo Baba Business Strategy for FY2023 Representative, Executive President and COO Katsumi Mizuno Sustainability-related Information This report contains
Slide 3: Financial Results of FY2022, Forecast for FY2023, Financial and Capital Policy
FINANCIAL RESULTS OF FY2022 BUSINESS RESULTS FORECAST FOR FY2023 FINANCIAL POLICY & CAPITAL POLICY 3
Slide 4: Financial Results Digest
Financial Results Digest • In our payment business, in addition to double-digit growth in the card shopping transaction volume and the return of card shopping revolving balance to an upward trend, our finance business as a 2nd pillar expanded steadily, and our global business as a 3rd pillar contrib
Slide 5: Financial Results: Results by Business Segment (IFRS)
Financial Results ①～ Results by Business Segment (IFRS)～ (Unit: Billion yen) (Unit: Billion yen) <Net revenue> 322.6 <Business profit> 350.0 80.0 299.0 8% 6.2 (▲3%) 300.0 70.0 6.4 24.1 (+6%) 60.0 +17% 60.9 250.0 22.7 50.7 (+8%) 52.3 0.7 (+203%) 50.0 0.2 200.0 47.1 12.0 (+2%) 12.5 (+2%) 40.0 12.3 150
Slide 6: Main Increases/Decreases in Business Profit & Contribution by Consolidated Companies
Financial Results ②～Main Increases/Decreases in Business Profit & Contribution by Consolidated Companies(IFRS)～* ( ) =Year-on-year difference Non-Consolidated Ordinary income Consolidated Business profit Difference ¥43.4 billion (+¥13.00 billion) ¥60.9 billion (+¥8.64 billion) ¥17.5 billion (▲¥4.36
Slide 7: Credit Risk
Credit Risk Delinquency over 90 days remained at a low level. However, the provision has been raised with an eye on the future in order to deal with uncertainties down the road. Delinquency over 90 days (consolidated) Delinquency over 90 days (non-consolidated) 5.0% 5.0% 4.0% Credit card Cash advanc
Slide 8: Interest Repayment Claims
Interest Repayment Claims Additional provision of ¥13.6 billion yen on a consolidated basis and ¥12.7 billion No plans for additional reserves Level of provisions adequate at present yen on a non-consolidated basis in the Monitoring future trends fiscal closing of FY 2021 No. of new claims and pri
Slide 9: Business Results Forecast for FY2023 – Business Profit Target by Major Business
Business Results Forecast for FY2023 – <By Major Business> Business Profit Target (Approximate value)- The business profit target of ¥70 billion for the Medium-term management plan is expected to be achieved a year earlier than planned We will announce a new medium-term management plan in May 2024 K
Slide 10: FY2023 Earnings Forecast - Major Changes in Business Profit
FY 2023 Earnings Forecast - Major Changes in Business Profit - (Unit: Billion yen) (Unit: Billion yen) FY2022 FY2023 <FY2023 MAJOR CHANGES IN BUSINESS PROFIT> Differences results forecast (B-A) (A) (B) Net revenue 322.6 356.0 +33.3 12.8 2.1 3.6 0.7 4.2 Increased credit costs Non- Consolidated Non- c
Slide 11: 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 • Issuance of 20 years bonds, first in card companies funds June 2017 ¥10 bill
Slide 12: Management Indicators
Management indicators Medium to long-term management goals <Shareholders’ Equity Ratio> < ROE > FY22 Recovered up to 7.5% Shareholders’ Equity Ratio Progression following ROE FY23 About 8% We aim to achieve the goal in the next medium- About 15% indicators Over 10% term plan and beyond. (Billion yen
Slide 13: Fundamental Capital Policy and Shareholder Returns
Fundamental Capital Policy and Shareholder Returns Maintaining and improving “financial soundness” is important for our group, which is expanding nonbank business globally. Aggressive investment in domestic and overseas growth fields aimed at transforming the group into a Comprehensive (Unit: Ye
Slide 14: Business Strategy for FY2023
BUSINESS STRATEGY FOR FY2023 Business Strategy for FY2021 14
Slide 15: Business Results Forecast for FY2023 – Business Profit Target by Major Business
Business Results Forecast for FY2023 – <By Major Business> Business Profit Target (Approximate value)- The business profit target of ¥70 billion for the Medium-term management plan is expected to be achieved a year earlier than planned We will announce a new medium-term management plan in May 2024 K
Slide 16: Global Business Trends in Business Profit
Global Global Business Trends in Business Profit Lending business has made solid growth, driven by business in India. On the other hand, investment business is planned to make a stable contribution to business profit through the continuation of its business although it was temporarily affected by th
Slide 17: Status of Global Business Expansion
Global Status of Global Business Expansion Under the theme of “(Fin) Tech-led INNOVATION and INCLUSION,” we have expanded into seven countries, pivoting on the two legs of investment business and lending business. CVC > Taking into account an investment environment, we will continue to invest in t
Slide 18: Credit Saison India's Strategy ① - Business Side
Global Credit Saison India’s Strategy ① - Business Side - Accelerate the shift from a senior fund provision model to direct lending Two-step strategy of the B2B2C model to the B2C model Trend in loan balance • B2B2C model: Is expanding loans steadily through coordination (Billion yen) with fintech b
Slide 19: Credit Saison India's Strategy ② - Fund Procurement
Global Credit Saison India‘s Strategy ② - Fund Procurement - Has expanded assets in a stable manner by leveraging external borrowing by capitalizing on credit ratings. Has considered various methodologies that will further advance diversification including issuance of NCD*, adoption of external capi
Slide 20: Global Lending Business Strategy
Global Global Lending Business Strategy Develop business in new markets by applying the India model as a playbook. Share and utilize knowledge and resources that have been nurtured in each country as a robust framework that holds these efforts up. Onshore/Offshore strategy Sharing of policy, process
Slide 21: Status of Global Business
Global Status of Global Business While expanding the business of lending and investment in each field, steadily develop the system of IHQ to support each business Development of other lending business Expansion of the fields of investment business Brazil and Mexico • Continuing to invest primarily
Slide 22: Revitalization of Payment Business - Change to Composition of Members
Payment Revitalization of Payment Business - Change to the composition of members The composition of card members has changed due to the new GOLD Card strategy and AMEX strategy. Corporate card and premium card segments (*) are expanding. (*) PREMIUM CARD: A card with special services with an annual
Slide 23: Revitalization of Payment Business – Average Spending per Customer
Payment Revitalization of Payment Business – Average spending per customer Corporate: Average spending per customer is about three times that of individuals. Average spending per customer has continued to rise even during the pandemic Individuals: Recovered to levels exceeding pre-pandemic years Sho
Slide 24: Revitalization of Payment Business - Card Shopping Transaction Volume
Payment Revitalization of Payment Business - Card shopping transaction volume AMEX share nearly doubled and the corporate share almost tripled by continuously stepping up “Sales expansion of the AMEX brand” and “Expansion of transaction volume in the corporate field.” (Billion yen) Trend in composit
Slide 25: Card Shopping Revolving Balance and Cash Advance Balance
Payment Revitalization of Payment Business - Card shopping revolving balance and cash advance balance Card shopping revolving balance and rates Cash advance balance and rates • Has shifted to the trend of expanding balance since FY2021 • The reduction in the balance is on a downward trend. as the bo
Slide 26: Expansion of Processing Revenue
Payment Expansion of Processing Revenue Maximize processing business by expanding the number of new clients in addition to existing business contracts New contracts acquired in FY2022 Further expansion of new contracts New processing contracts Contracted to execute business processes in major Has
Slide 27: Integrate Finance x Payment - Rent Guarantee
Payment Finance Integrate Finance x Payment - Rent guarantee Expand revenue through “Integration with payment business” and “Shift of business processes to DX.” Attract members with high LTV Application of DX to rent guarantee business The ratio of under 20s who were enrolled for our Retention of yo
Slide 28: Healthy Growth and Expansion into New Fields for Finance Business
Finance Healthy Growth and Expansion into New Fields for Finance Business Flat 35 Loans Asset formation loan Although the market is stagnant as long-term interest rates rise, the Embark on new markets by developing and providing products servicing receivables balance of the Company remains firm. for
Slide 29: Finance Business has Built Up Balances Steadily
Finance Finance Business has Built Up Balances Steadily Trend in operating assets balance (including off-balance sheet assets) March 2023: Saison Real Estate Free Loan (Billion yen) 3,500.0 February 2023: Saison’s asset formation loan Premier April 2022: Housing loan guarantee 3,000.0 June 2019: Fla
Slide 30: Promotion of Integrated Group Management
Group Companies Promotion of Integrated Group Management Saison Fundex Corporation Saison Realty (formerly Atrium) Changed its focal business to development business and leasing Shift from unsecured loans (credit card loans) to a business business portfolio centered on real estate finance Assets of
Slide 31: Create Digital Human Resources ①
Digital Create Digital Human Resources ① Expand and reinforce digital human resources to the level of 1,000 people by FY2024 through measures such as development of digital personnel by upgrading a HR development system, and a digital certification system, thereby speeding up the shift to a digitali
Slide 32: Create Digital Human Resources ②
Digital Create Digital Human Resources ② - Taking the Lead and Setting Examples by Top Management - Aim to deploy, throughout the Company, no-code/ low-code development that enables employees without programming knowledge to build systems. Top management took training as promoters (April 2023). No-c
Slide 33: Sustainability Related Information
SUSTAINABILITY RELATED INFORMATION
Slide 34: Basic Approach to Sustainability
Basic Approach to Sustainability Based on our “leading-edge service company” management philosophy, we contribute through the everyday operation of our businesses to resolving problems and moving society forward in ways only Credit Saison can by leveraging our unique knowhow, management resources, a
Slide 35: Report on the Activities of the Sustainability Promotion Committee
Report on the Activities of the Sustainability Promotion Committee Structure of Sustainability Promotion Committee DE&I Declaration 2.0 - We are all citizen’s of Earth, aren’t we? - Board of Directors We take the lead and set examples in establishing an environment for the growth and active particip
Slide 36: Response to TCFD Recommended Information Disclosure Items
Environment Response to “TCFD Recommended Information Disclosure Items” Realized information disclosure in line with TCFD recommendations (June 2022) Trends in Targets for Scope 1, 2 and 3 25% 25% 42% 13% 13% 42% 13% 13% 21% 21% 21% 21% 730,645 749,208 17,540 639,314 653,979 547,984 558,750 1,023 13
Slide 37: Response to CDP Climate Change Program
Environment Response to CDP Climate Change Program <Score publicized in December 2022> Earned rating with our first response First response to CDP Climate Change 2022 Questionnaire (August 2022) 37
Slide 38: Business Expansion Aimed at Contributing to Environmental Issues
Environment Business Expansion Aimed at Contributing to Environmental Issues <In March 2023, Credit Saison won two awards at the same time in recognition of our efforts> Grand Prix in the Project Category of the NIKKEI Decarbonization Award 2022 First achievement in Japan Grand Prix in Japan Financi
Slide 39: Diversity, Equity, and Inclusion
Society Diversity, Equity, and Inclusion Realized a personnel system that enables diverse human resources to play an active role Since the 1980s, Credit Saison has promoted proactive hiring, enabled female employees to work in a diverse range of positions and posts, and set various systems in plac
Slide 40: Diversity, Equity, and Inclusion - End-of-financial year bonus system
Society Diversity, Equity, and Inclusion -Introduction of end-of-financial year bonus system- Realization of “third foundation” growth strategy by increasing employee motivation If the actual results for fiscal year exceed the amount of ordinary profit (non-consolidated, annual plan), a certain perc
Slide 41: Financial Education for Next Generations
Society Financial Education for Next Generations Education for the Next-Generation and Financial Education Started inviting applications for “Reitaku University Original “Business Trip Class - SAISON TEACHER - ” Credit Card” Hold financial education for children to become independent consumers Fir
Slide 42: Contribution to Society
Environment Society Contribution to Society Operation of the Akagi Nature Park A forest unique to Japan, a country with four beautiful seasons A one-of-a-kind forest Launched a project for restoration of forests for increasing biodiversity and the CO2 fixation amount Forest degradation not only in
Slide 43: (Reference) Information on Corporate/IR Website and Integrated Report
(Reference) Information on Corporate/IR Website and Integrated Report Issuance of integrated report to enhance disclosure of financial and non-financial information Received an award at the “International ARC Awards” “Credit Saison Integrated Report 2022” for two years in a row (FY2021 and FY2022) (
Slide 44: (Reference) Major External Certifications
(Reference) Major External Certifications Selected for five consecutive years GPIF-adopted ESG index for the status of information disclosure and carbon GPIF-adopted ESG index for GPIF-adopted ESG index consisting of CDP Climate Change Questionnaire 2022 efficiency level companies with superb gender