Credit Saison Co., Ltd. · TSE:8253
Credit Saison — H1 2016 Earnings Presentation
38 slides from Credit Saison's earnings presentation, Nov 10, 2016
Slide 1: FY2016 2nd Quarter Management Report
FY2016 2nd Quarter Management Report 2016. 11. 10 CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA Saison AMEX INTERNET Lineup GLOBAL INNOVATION ◆ FY２０１６ First Half Business Highlights Ⅰ．FY２０１６ First Half Financial Report Ⅱ．FY２０１６ Management Strategies Ⅲ． ＥＳＧrelated This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are
Slide 3: Main Topics of the First Half of 2016 Fiscal Year
Main Topics of the First Half of 2016 Fiscal Year STRATEGY Ⅰ STRATEGY Ⅲ Challenge of the changing business model Multidirectional alliance in finance business in card business ■ Increase in partners in the credit guarantee service market ■ Saison Cards and UC Cards started to support to 399 (+11 fro
Slide 4: Ⅰ. FY2016 First Half Financial Report
Ⅰ. FY2016 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 2
Slide 5: 1. Financial Results
１. Financial Results (¥ billion) FY2015 YoY FY2015 YoY FY2016 nd nd YoY(%) 2 Quarter (%) 2 Quarter (%) (Estimate) Operating 134.9 106.6 137.2 101.7 278.0 103.0 Consolidated Revenues Ordinary Income 34.2 128.7 31.0 90.6 50.0 114.1 Quarter Net Income 23.0 124.3 28.2 122.7 38.5 147.2 Earnings per Share
Slide 6: 2. Results by Business Segment
２. Results by Business Segment (¥ billion) Operating Revenues Operating Income FY2015 FY2016 FY2015 FY2016 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 100.3 103.9 103.6 10.8 11.0 102.6 Lease 6.8 6.7 99.4 2.6 2.6 98.0 Finance 12.7 15.1 118.6 7.0 8.1 116.1 Real Estat
Slide 7: 3. Contributions by Consolidated Companies
３. Contributions by Consolidated Companies Ordinary income: Difference between Non-consolidated Consolidated Difference consolidated and non-consolidated figures Ordinary Contribution to consolidated results income ¥23.9 billion ¥31.0 billion ¥7.0 billion Contribution to Contribution Major consolida
Slide 8: 4. Main Indices (Non-Consolidated)
４. Main Indices (Non-Consolidated) FY2015 FY2016 FY2016（Estimate） 2nd Quarter YoY(%) 2nd Quarter YoY(%) YoY(%) New Applications (millions) 1.63 109.2 1.62 99.5 3.40 103.0 New Card Issued (millions) 1.28 109.2 1.28 99.7 2.70 103.0 Total Cardholders 25.27 26.01 26.92 101.9 102.9 105.1 (millions) （＋0.3
Slide 9: 5-(1) Trends in Credit Business – Shopping Business
５－(1) Trends in Credit Business – Shopping Business– Expansion of customer base ◆Collaboration with business partners to strengthen ◆Promotional activities in supermarkets and shopping malls operated by our retailer partners, in order to the joint activities for increases in members of increase cons
Slide 10: 5-(2) Trends in Credit Business – Shopping Revolving, Cash Advances
５－(2) Trends in Credit Business – Shopping Revolving ・Cash Advances – ■ Transition in Balance Shopping Revolving ◆Introduction of various payment options to meet customers’ needs Cash Advances Shopping Revolving [Product Lineup] ・“Change to Revolving [Payment Options] (Billion yen) Payment” after Sh
Slide 11: 6. Credit Risk / Credit Cost
６. Credit Risk / Credit Cost ■Trends in Credit Risk 6% 6% Delinquency of over 90 days Delinquency of over 90 days 5% (Consolidated) 5% (Non-Consolidated) 4% 4% 2.92% Cash Advance 3% 3% 2.32% 2.40% 2.28% 2.02% 2.18% 2% 1.51% 1.48% 1.56% 1.59% 2% 1.71% 1.46% 1.51% 1.28% 1.32% Credit Card 1% 1% 1.36% 1
Slide 12: 7. Interest Repayment Claims
７. Interest Repayment Claims ■Trends in new claims handled by lawyers and ■Trend of provision for loss on interest dudicial scrivener (monthly average) repayment (Unit: billion yen) Monthly average (Unit: number of cases handled) Non- Consoli 2,500 Results dated consolid ated 2,100 Reversal 5.2 4.7
Slide 13: 8. Financial Indices
８. Financial Indices ■Shareholder’s Equity ・ Total Assets ・ Shareholder’s Equity Ratio Consolidated Non-Consolidated change from change from end of FY2015 end of FY2015 Shareholders’ Equity 438.2 billion ＋19.4 372.9 billion ＋13.5 Total Assets 2,608.5 billion ＋57.5 2,518.7 billion ＋4.9 Shareholders’
Slide 14: (Reference) Fund Structure Changes in Interest-bearing Debt
(Reference) Fund Structure Changes in Interest-bearing Debt (Non-Consolidated) [ Rating ] Long-term Ratio ： 71％ FY２０１６ bond issue April：Issuance volume of 20 billion yen R&I A+ Fixed Ratio ： 61％ * For individuals Period: 5 years Interest rate: 0.300% Average Funding 1.29% 1.15% October：Issuance volu
Slide 15: (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 16: Ⅱ. FY2016 Management Strategy
Ⅱ．FY2016 Management Strategy ◆ Basic Policy of Medium-Term Management Plan・Management Target ◆ Management vision ◆ Management strategy, FY2016 Second Half CREDIT SAISON Alliance Network 14
Slide 17: Basic Policy of Medium-Term Management Plan・Management Target
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 18: Medium-Term Management Vision
Medium-Term Management Vision Neo Finance Company in Asia - Achievement of Innovation and Change of Business Model - Leading-Edge Service Company Ⅳ Ⅰ Payment Finance Card Business Finance Business CREDIT AMEX Cards, Prepaid Cards, Eikyufumetsu SAIS N Leasing and Rental, Credit Guarantee, Flat 35, Po
Slide 19: Strategies for Achievement of Medium-Term Management Vision
Strategies for Achievement of Medium-Term Management Vision STRATEGY Ⅱ STRATEGY Ⅳ Alliance strategy with open innovation Diversified business operation in broad ranges of Asia <Entered markets> <To be entered> 9 Full operation of big data business 9 Creation of synergy effects through collaboration
Slide 20: Challenge of the changing business model in card business (1)
Challenge of the changing business model in card business(1) < STRATEGY Ⅰ > Expansion of customer base ◆Systemization of Membership Application Ratio of applications from tablet First-half result: approx. 80% (+25% from the previous year) ⇒ mid-term target: 95% ◆Maximization of Number of Newly Issue
Slide 21: Challenge of the changing business model in card business (2)
Challenge of the changing business model in card business(2) < STRATEGY Ⅰ > Securing the position as a prepaid card service provider ◆Promotion of cashless payment by expansion of the product lineup ◆Promotion of new collaboration and value addition by Total issued cards: utilizing the know-how as a
Slide 22: Challenge of the changing business model in card business (3)
Challenge of the changing business model in card business(3) < STRATEGY Ⅰ > Acquisition of the business relating to settlement service for corporate customers ◆Acquisition of business relating to BtoB area with Money Forward ”MF Cloud Bill” ◆Development of solution tools targeting corporate customer
Slide 23: Alliance Strategy with Open Innovation (1)
Alliance Strategy with Open Innovation (1) < STRATEGY Ⅱ > Development of “Saison DMP,” an infrastructure for big data processing, in collaboration with Digital Garage, Inc. *Data Management Platform Development of data base foundation Growth of advertising business by utilization of by accumulation
Slide 24: Alliance Strategy with Open Innovation (2)
Alliance Strategy with Open Innovation (2) < STRATEGY Ⅱ > “DG Lab,” an open-innovation type research & development organization The organization was established in collaboration between Digital Garage, Kakaku.com. and Saison, in order to develop innovative technologies in the fields of blockchain, a
Slide 25: Alliance Strategy with Open Innovation (3)
Alliance Strategy with Open Innovation (3)< STRATEGY Ⅱ > Robot Advisor offers the optimized asset A full-fledged long-term asset management management plan to each investor. fund assists customers’ asset formation. Monex-Saison-Vanguard Investment Partners,Inc. ・Cutting-edge IT technology and world-
Slide 26: Multidirectional Alliance in Finance Business (1)
Multidirectional Alliance in Finance Business (1) < STRATEGY Ⅲ > Lease & Rental Credit Guarantee ◆Launched to support the “subsidy utilization ◆Enhancement in customer convenience through the scheme to complete all the procedures on the web (no face-to-face leasing” to respond to the “reduced tax ra
Slide 27: Multidirectional Alliance in Finance Business (2)
Multidirectional Alliance in Finance Business (2) < STRATEGY Ⅲ > Flat 35 Asset Formation Loan ◆Strengthening sales capability by increasing ◆Customization of marketability matching agents and through collaboration with real-estate market needs dealers selling apartments and houses ◆Strengthening of
Slide 28: Diversified Business Operation in Broad Ranges of Asia (1)
Diversified Business Operation in Broad Ranges of Asia (1) < STRATEGY Ⅳ > Deployed overseas bases Shanghai Local Affiliate (Consulting company) Hanoi Local Affiliate “Saison Business China (shanghai) Myanmar Consulting (Shanghai)” Laos Vietnam (Hanoi/Ho Chi Minh) Vietnam Thailand Capital participati
Slide 29: Diversified Business Operation in Broad Ranges of Asia (2)
Diversified Business Operation in Broad Ranges of Asia (2) < STRATEGY Ⅳ > HD SAISON Finance Company Vietnam (Saison’s stake: 49%, Joint Venture Business) Loans for purchase of motor cycle , smartphones and Business operation consumer electronics ・Maximization of the synergy effect of the collaborati
Slide 30: Diversified Business Operation in Broad Ranges of Asia (3)
Diversified Business Operation in Broad Ranges of Asia (3) < STRATEGY Ⅳ > Indonesia (Saison’s stake: 70%, Joint venture business) Singapore （Saison’s stake: 15%, Capital and business tie-up） ・Core company of Modern Group in Indonesia ・Virtual prepaid card operations (under international brands) ・Hav
Slide 31: Activities for Sustainable Enhancement in Our Corporate Value
Ⅲ． Activities for Sustainable Enhancement in Our Corporate Value Facilitation of “ESG Management” for long-term and sustainable enhancement in the corporate value E nvironment Operation of “Akagi Nature Park” (symbiosis with nature) Promotion to facilitate contribution to the “Funds for Construction
Slide 32: Activities for Enhancement in Corporate Governance
Activities for Enhancement in Corporate Governance Medium- and long-term enhancement in the corporate value by achieving the management philosophy and medium-term management plan Interaction with shareholders and appropriate information disclosure Development of environment Enhancement of effectiven
Slide 33: Diversity Management (1)
Diversity Management (1) ◆Basic concept of diversity In order to enhance skills and quality of work of each employee, we promote the diversity activities to respect, accept and leverage the diversity of each employee. By implementing the measures for development of leaders and human resources, assis
Slide 34: Diversity Management (2)
Diversity Management (2) Innovation of work style ◆Introduction of commuting in early morning, and recommendation of staggered working hours, variable working hours and shift work Business operation starts and closes respectively one hour earlier in summer, and overtime work after 8:00 p.m. is prohi
Slide 35: CSR and Contribution to Society (1)
CSR and Contribution to Society (1) ◆Basic concept of CSR and contribution to society We believe that as Corporate Social Responsibility (CSR), “the Company that bears social responsibilities should not only fulfill its obligations such as compliance with laws and regulations and redistribution of p
Slide 36: CSR and Contribution to Society (2)
CSR and Contribution to Society (2) Support for Japan’s National Soccer Teams Support for music performance ◆As a supporting company of Japan’s National Soccer ◆In addition to support for Teams, the Company supports activities of performance by Mr. Jose “Samurai Blues,” “Nadeshiko Japan” and “U-19 C
Slide 37: (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. (FY2014 → FY2019 forecast) ※【ＹｏＹ】 Prepaid card, other Pay-easy Collected from 4.1％ （FY2019：3.4％） 5.2％[1.0p] convenience stores 3.5％[0.1p] Check Cash Transfer, account 10.4％ Tr
Slide 38: (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