Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2013 Earnings Presentation
37 slides from Credit Saison's earnings presentation, May 16, 2014
Slide 1: Management Report FY2013
Management Report FY2013 2014. 5. 16 CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA ◆ FY2013 Highlights Ⅰ．FY2013 Financial Report Ⅱ．FY2014 Management Vision Ⅲ．FY2014 Management Strategies Ⅳ．Social Contribution Activities This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are not guarantees of future perfor
Slide 3: Main Topics of the 2013 Fiscal Year
Main Topics of the 2013 Fiscal Year ■ The number of card holders of the first Visa prepaid card in Japan "Cocokara Club Card" exceeds 3 million Card ■ Launch of making inroads into the small sum payments market using smartphones through Business a capital alliance with Coiney ■ Development of region
Slide 4: FY2013 Financial Report
Ⅰ．FY2013 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. Dividends 2
Slide 5: 1. Financial Results
1. Financial Results (￥ Billion) FY2014 YoY(%) FY2012 YoY(%) FY2013 YoY(%) （Estimate） Operating Revenues 244.4 100.2 247.5 101.3 253.0 102.2 Consolidated Ordinary Income 53.2 137.9 44.4 83.5 40.0 90.0 Quarter Net Income 32.7 346.6 25.5 78.0 23.0 90.0 Earnings per Share (¥) 178 346.6 139 78.0 125 90.
Slide 6: 2. Results by Business Segment
2. Results by Business Segment （¥ billion） Operating revenues Operating income (loss) FY2012 FY2013 YoY (%) FY2012 FY2013 YoY (%) Credit Service 190.4 189.6 99.6 24.1 14.7 60.9 Lease 14.4 14.2 98.9 6.1 6.0 98.0 Finance 17.3 19.1 110.3 8.9 10.0 112.1 Real Estate- related 9.8 12.6 129.2 0.9 3.8 408.3
Slide 7: 3. Contribution by Consolidated Companies
3. Contribution by Consolidated Companies Ordinary income: Difference between consolidated and non-consolidated figures Non-consolidated Consolidated Difference Contribution to consolidated results Ordinary income ¥34.8 billion ¥44.4 billion 9.5billion Contribution Contribution to to ordinary Major
Slide 8: Reference) Progress of the Real Estate Business (Atrium Group)
Reference) Progress of the Real Estate Business (Atrium Group) Ensuring good understanding of market trends and promoting reduction of assets on accelerated schedule <Stabilization of the management base, and improvement in profitability> ■ Business to be adjusted - Launch of development of large as
Slide 9: 4. Main Indices (Non-Consolidated)
4. Main Indices (Non-Consolidated) FY2012 FY2013 FY2014 YoY(%) YoY(%) (Estimate) YoY(%) New Applications (millions) 3.38 130.0 3.32 98.2 3.40 102.4 New Card Issued (millions) 2.51 128.1 2.53 100.7 2.50 98.8 Total Cardholders 24.82 24.75 25.15 100.3 99.7 101.6 (millions) （+0.07） （△0.06） （+0.40） Activ
Slide 10: 5-①. Trend of Credit Business (Shopping)
5-①. Trend of Credit Business (Shopping) Counteraction of the buying rush before consumption tax increase is anticipated to affect only some of the businesses ■ Share by industry ■ Transaction volume trend YoY Comparison of April - February transaction volume -> YoY (Unit: 100 million Comparison of
Slide 11: 5-②. Trend of Credit Business (Cash Advance)
5-②. Trend of Credit Business (Cash Advance) Pursuing a good balance between risk and profit [New card holders] - Improvement of assignment of cash advance limits - Expansion of clients opting for cash advance limits of 300,000 or more [Existing card holders] - Prompting active use through assignmen
Slide 12: 6. Credit Risk / Credit Cost
6. Credit Risk / Credit Cost ■Trends in Credit Risk 6% Delinquency of over 90 days 6% 5.39% 5.41% Delinquency of over 90 days (Consolidated) (Non-Consolidated) 5% 5% Credit Card 3.93% 4% 3.54% 3.40% 4% 3.58% 3.32% Cash Advance 2.92% 3% 2.66% 3% 2.39% 2.32% 2.02% 1.51% 2% 2.53% 1.71% 2% 2.38% 1.28% S
Slide 13: 7. Interest Repayment Claims
7. Interest Repayment Claims ■ Trend of loans accompanying intervention by judicial scriveners or lawyers (Unit: number of cases handled) The pace of decrease of occurrences of 7,000 5,900 loans requiring intervention by a third party 6,000 got slower than the initial estimations due to 5,000 4,700
Slide 14: 7. Financial Indices
7. Financial Indices Consolidated Non-Consolidated Difference Difference Shareholders’ ¥419.4 billion ＋28.0 ¥367.8 billion ＋18.6 Equity Total Assets ¥2,286.0 billion ＋144.2 ¥2,200.4 billion ＋148.5 Shareholders’ Equity Ratio 18.3% ＋0.0% 16.7% △0.3% ※1 ROE 6.6% △2.0% 5.8% △1.6% ※2 ROA 2.0% △0.5% 1.6%
Slide 15: 8. Dividends
8. Dividends FY2013 FY2014（Plan） Dividend per ¥30 ¥30 share Total cash ¥5.5 billion ¥5.5 billion dividend Payout ratio (Consolidated) 21.5％ 24.0％ Payout ratio (Non-Consolidated) 29.6％ 31.5％ 13
Slide 16: Fund Structure and 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 Average Funding (Billion yen) 1.43% 1.41% - Establishment of 1.33% 1.29% 1.15% commitment line 2,000 Tota
Slide 17: II. FY2014 Management Vision
II. FY2014 Management Vision Taking on a challenge of changing the business model through strengthening of corporate sales under the motto of "Strategic weapons x All kinds of corporations and individuals in and outside the country x Diverse domain identities“ Also, while employing efficiently the p
Slide 18: 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 19: Provide Customer Solutions Through Collaboration of Strategic Products
Provide Customer Solutions Through Collaboration of Strategic Products ② Saison American Express® Card ③ Eikyufumetsu Points ④ High onsite capability ① Credit card customer base “Store/Counter Network” ． Ⅰ 1 Credit Business Group 35 million members Consolidated shopping transaction volume High statu
Slide 20: Promotion of cashless payments for payments by corporate clients
Conversion to corporate sales offering the Company's strategic weapons in many directions Promotion of cashless payments for payments by corporate clients ■ Developing the corporate payments area that offers a high potential as a market Amount paid by The corporate payments market in Japan is 940 tr
Slide 21: Comparison of Share for Payment Service Methods in Consumer Spending in Japan and the U.S.
Comparison of Share for Payment Service Methods in Consumer Spending in Japan and the U.S. Credit card usage in Japan account for only 13% of the consumer spending while that In USA 28% and in Korea 57%. Japan (FY2012) U.S.A. (FY2012 → FY2017 forecast) Prepaid card, other Collected from 4.3% Pay-eas
Slide 22: Overthrowing the Cash Market
Overthrowing the Cash Market Taking on a challenge of shifting the society towards cashless payments by prepaid cards and smartphones ■ Issuing the Company's own and affiliated prepaid cards and conducting other measures to expand the card lineup matching the needs of the market - MasterCard, Web Mo
Slide 23: Sales Promotion of the Card Centering on the Centurion AMEX Card
Sales Promotion of the Card Centering on the Centurion AMEX Card Increase in number of cards issued centered on actively used cards ■ Promotion of marketing activities of business cards targeting small and medium sized enterprise owners and one man businesses - Development of new channels using the
Slide 24: Master Concept of the Life Assist Point System
Master Concept of the Life Assist Point System [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 economic stimulus package of approximately 5,500 billion yen, but as
Slide 25: Benefits of Life Assist Point System (Forecast)
Benefits of Life Assist Point System（Forecast） [Image of effects from implementation of Life Assist Point system] ① Net increase in final Before implementation (FY2012) consumption expenditures After implementation Collected from Approx. 12.2 trillion yen convenience stores （Final private consumer P
Slide 26: Further Development of the Internet Business
Further Development of the Internet Business Innovation through cooperation and capital alliances with the leading venture businesses ■ Improvement in convenience of eikyufumetsu.com, and activation of the Internet members - Construction of a framework making it unnecessary to actually visit the sit
Slide 27: Expansion of the Finance Business - Lease & Rental Section
Expansion of the Finance Business - Lease & Rental Section Strengthening of marketing centered on the existing shops and increase in transaction volume by sales promotion of new products ■ Improvement in marketing activities targeting the existing shops - Effective and delicate marketing approach ma
Slide 28: Expansion of the Finance Business - Credit Guarantee Section
Expansion of the Finance Business - Credit Guarantee Section Reinforcement of products & screening ability aiming at revitalization of the connection with the existing clients and stable growth to prepare for buildup of a good-quality balance ■ Revitalization of the connection with the existing clie
Slide 29: Expansion of the Finance Business - Finance Business Section
Expansion of the Finance Business - Finance Business Section Actively promoting the loan business efficiently employing the Saison brand ■ Expansion of "flat 35" aiming for acquisition of the industry No.1 share - Speedy screening/availability of conclusion of contracts on 2,786 Saturdays, Sundays,
Slide 30: 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 Kunmin China Saison Business Taipei Natural gas/Oil g Sino-Vietnam Consulting(Shanghai) pipeline Expressway Taiwan Southern Guangzhou Economic Corridor Hanoi
Slide 31: Asian Strategy Focusing on ASEAN
Asian Strategy Focusing on ASEAN ■ Image of entry into the nonbank business in the Asian countries Schemes & know-how of the Acquisition of nonbank Company's business license Capital subscription to and merger and acquisition with Multi-collaboration the existing nonbank companies Japanese partner c
Slide 32: Promotion of Collaborational Management - Strategic Investment
Promotion of Collaborational Management - Strategic Investment Making preliminary moves for the medium- and long-term growth by versatile and strategic business investments Through collaboration with businesses in and outside the country using strategic investments and capital subscription promote d
Slide 33: Innovations in the Personal Rating System and Work Methods
Innovations in the Personal Rating System and Work Methods By bettering yourself during time spent off work, change yourself "Establishment of workplace environment where employees do not work overtime" Abolishment or innovations of underproductive business processes such as internal reporting and r
Slide 34: Changes in domestic credit card industry
Changes in domestic credit card industry 2000～01 2002～03 2004～05 2006～07 2008～09 2010～13 Enactment of revised vestment Supreme Court decision to return Enactment of Article 3 of Full enactment of the revised Act（Maximum interest: 29.2％） excessive interest payments Moneylending Control Act Moneylendi
Slide 35: Restructuring of the Domestic Credit Card Industry
5-②Restructuring 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 Shizuoka Bank Pocket Credit Credit Yamada Credit Saison Card Card JAL Cardﾞ Aeon Seven Card Financia
Slide 36: Domestic Market Share (Shopping Transaction Volume)
Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【2012 fiscal year】 Regional banks Our Group Seven Card Service 1.6％ FC/BC Other 16.6％ Aplus 1.7％ 6.5％ Epos Card 1.9％ Our Company MI Card 2.4％ （non-consolidated）9.9％ VIEW Card 3.5％ Joint Venture Card
Slide 37: Credit business on a consolidated basis
(Reference) Credit business on a consolidated basis Expand our market share by establishing No.1 card issuer status on consolidated basis FY2013 New Total Card Transaction applications Holders Volume Credit Saison Co., Ltd. 3.23 24.75 4.11 Idemitsu Credit Co., Ltd. 0.24 3.23 0.78 Seven CS Card Servi