Credit Saison Co., Ltd. · TSE:8253
Credit Saison — Q2 FY2018 Earnings Presentation
32 slides from Credit Saison's earnings presentation, Nov 14, 2018
Slide 1: Financial Results (2nd quarter of FY 2018)
Financial Results (2nd年度 2016 決算説明会 quarter of FY 2018) 2018. 11. 14 CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA Ⅰ． FY 2018 Highlights Ⅱ． FY 2018 Financial Report Ⅲ． FY 2018 Management strategies Ⅳ． ESG-related Higashi Ikebukuro 52 Formed by female employees of Credit Saison (the “Company”) and its affiliates, which the head office is located on the 52nd floor of the Sunshine 60 Building, Higashi Ikebuk
Slide 3: FY 2018 Highlights
FY 2018 Highlights Payment Finance Card Business Finance Business ■ Pioneering efforts in cardless payment schemes ■ New home-buying supporting service Mitsui Shopping Park Card Saison starts providing Providing “SAISON Life Support”, a life-supporting QR code payment service “Pay by app” benefit se
Slide 4: 1. Financial Results
1. Financial Results (Billion yen) Q2 FY 2017 YoY (%) Q2 FY 2018 YoY (%) 145.4 106.0 150.2 103.3 Consolidated Operating revenues Ordinary income 36.2 116.9 26.8 74.1 Quarter net income 32.0 113.3 18.4 57.6 Earnings per share (¥) 195.98 113.3 112.82 57.6 consolidated Operating revenues 123.7 105.6 12
Slide 5: 2. Results by Business Segment
2. Results by Business Segment Operating revenues Operating income (Billion yen) Q2 FY 2017 Q2 FY 2018 YoY (%) Q2 FY 2017 Q2 FY 2018 YoY (%) Credit Service 109.1 111.6 102.3 11.3 3.8 33.7 Lease 6.4 6.3 98.4 2.1 3.1 144.9 Finance 17.2 20.0 115.8 7.9 8.7 110.5 Real estate-related 8.2 8.2 99.8 4.0 3.6
Slide 6: 3. Contribution by Consolidated Companies
3. Contribution by Consolidated Companies Difference between consolidated and Non-consolidated Consolidated Difference non-consolidated ordinary income Ordinary Contribution to consolidated results ¥18.2 billion ¥26.8 billion ¥8.6 billion income Contribution Contribution Major consolidated subsidiar
Slide 7: 4. Credit Risk / Credit Cost
4. Credit Risk / Credit Cost ■Trends in Credit Risk 6% 6% Delinquency over 90 days Delinquency over 90 days 5% (consolidated) 5% (non-consolidated) 4% 4% 3% 3% 2.40% 2.45% 2.51% 2.61% 2.18% Cash advance 1.48% 1.56% 1.58% 1.69% 1.71% 1.46% 1.58% 1.85% 1.99% 2% 2% 1.32% Credit card 1.71% 1.86% 1% 1% 1
Slide 8: 5. Interest Repayment Claims
5. Interest Repayment Claims No. of new interest repayment No additional provision is Current provision is at a planned for FY 2018. The claims shows 20% decrease sufficient level. future trend is yet to be from the previous fiscal years. monitored. Trend in new interest repayment claims Trend o
Slide 9: 6. Financial Indices
6. Financial Indices ■Equity capital, total assets, equity ratio Consolidated Non-consolidated YoY changes YoY changes Equity capital 492.9 ＋13.8 404.2 ＋7.3 (billion yen) Total assets 3,626.0 ＋122.6 2,951.1 ＋119.8 (billion yen) Equity ratio 16.1% (0.2%) 13.7% (0.3%) 7
Slide 10: 7. Revision on earning forecasts
7. Revision on earning forecasts (billion yen) Previous forecasts Revised Difference (on 15th May) forecasts (A-B) (A) (B) Operating Revenue 311.0 305.5 (5.5) Consolidated Ordinary Income 55.0 51.0 (4.0) FY 2018 Net Income 35.5 33.0 (2.5) Operating Revenue 267.3 261.8 (5.5) Non- Ordinary Income 41.5
Slide 11: 8. Main Indices (Non-consolidated)
8. Main Indices (Non-consolidated) FY 2017 FY 2018 FY 2018 (Revised Earning Forecasts) Q2 YoY (%) Q2 YoY (%) YoY (%) New Card Issued 1.26 98.3 1.06 84.3 2.00 81.8 (millions) Total Cardholders 26.84 103.2 26.85 100.1 27.14 100.7 (millions) Active Cardholders 14.92 101.4 15.00 100.5 15.10 100.8 (milli
Slide 12: Fund Structure and Bond Issued in FY 2018
(Reference) Fund Structure and trends in interest-bearing debt (non-consolidated) 2 years consecutively Long-term ratio： 67％ Rating: R&I A+ Fixed ratio： 61％ First in a credit card company - 20 years super long-term bond 0.98% 0.83% Average Funding Bond issued in FY 2018 0.66% 0.53% 0.49% April: Volu
Slide 13: Management Vision of FY 2018
Management Vision of FY 2018 N eo F inance C ompany in A sia • Thorough pursuit of customer needs and • Being an organization in which individuals convenience and team create wealth • Shedding reliance on past successes and • Being an organization that strives to attain transforming from scratch sig
Slide 14: Growth Strategies for Card Business
Growth Strategies for Card Business Business environment: The government’s target: 40% Consumption tax hike Stabilized operation of the Concern over rising interest Technology advancement cashless ratio by 2025 2% points rebate Associated Core System rates Opportunity to expand the settlement market
Slide 15: Pioneering efforts in cardless settlement schemes
Pioneering efforts in cardless settlement schemes Payment Card Business To build a platform of next generation settlement seeking users convenience in addition to credit cards and prepaid cards Credit Cards (Examples) Prepaid Card (Examples) Issued under Credit Saison Administered under consignment
Slide 16: Top line growth by leveraging the Associated Core System
Top line growth by leveraging the Associated Core System Payment Card Business ◆Schedule FY 2017 FY 2018 FY 2019 onwards 28th October 2018 Expand the top line by 26th November 2017 Follow-up Second Release of working on new projects on Release of the Associated on stable the system (UC card services
Slide 17: Solution Business: accelerating cashless in corporate settlements
Bolstering of corporate business strengths and full-scale expansion Solution Solution Business of B2B business Credit Saison providing a wide range of solutions outdoing a card company’s basic services Accounting, expense settlement Customer attraction and sales boosting and administration support F
Slide 18: Digital Shift
Internet Creation of business leveraging digital devices and users data Contents Business Quality Of Life Effectively and efficiently providing convenient payment methods and good contents leveraging digital to realize a higher quality of life Improving customer satisfaction and enhancing the Realiz
Slide 19: Challenge on new EC mall business
Internet Creation of business leveraging digital devices and users data Contents Business ◆Challenge on new EC mall business Services by Regional specialties start-up companies ［Direct shipping of regional specialties］ Introducing groundbreaking products or services, Exclusively chosen local special
Slide 20: Working to make asset management services a core business
Ensuring our uniqueness in asset management and Investment Asset Management Business asset formation market ◆Working to make asset management services a core business Saison Asset Management Co., Ltd. Monex-Saison-Vanguard Investment Partners Support asset management via genuine long- Provide wrap a
Slide 21: Growth strategies in Finance Business (1)
Finance Growth strategies in Finance Business (1) Finance Business Lease & Rental Credit Guarantee Strengthening business approach towards main Reassuring the versatility of the fund purpose which retailers by sales power of branches across Japan can be used for business funds and others Promo
Slide 22: Growth strategies in Finance Business (2)
Finance Growth strategies in Finance Business (2) Finance Business Flat 35 Loan Asset Formation Loan Speed up the process from consultation to loan Increase competitiveness by customizing agreement through one-stop management products that suits market needs system Speed up the process from re
Slide 23: Strengthening up-front investment in the Asia business
Strengthening up-front investment in the Asia business with Global Asia Business small number of highly skilled employees Embark on retail financing business that suits each country by expanding flexible and altruistic business considering respective country’s situation with creative ideas while min
Slide 24: Examples of overseas businesses
Global Examples of overseas businesses Asia Business Vietnam HD SAISON Finance Company Singapore Grab Financial Services Asia • Joint venture established in May 2015 • Joint venture established in December 2017 (49% stake owned) • Providing loans to registered drivers and • Loans for motorcycles, sm
Slide 25: New overseas business SIAM SAISON Co.,Ltd.
Global New overseas business Asia Business Thailand SIAM SAISON Co.,Ltd. • SIAM SAISON Co.,Ltd. is established on agreement between Credit Saison, Siam Cement Group and Mitsui & Co. • Along the initiative of the Thailand government, SIAM SAISON aimed to build a fast and accurate credit granting and
Slide 26: ESG efforts towards sustainable growth
ESG efforts towards sustainable growth We aim to contribute through the everyday operation of our business to resolving problems and move society forward in ways only Credit Saison can by leveraging our unique know-how, management resources, and the experiences of each of our employees. We also aim
Slide 27: ESG efforts towards sustainable growth (examples)
ESG efforts towards sustainable growth (examples) ■Providing social infrastructure and promoting community development through the creation of cashless society ＜Japan＞ ＜Overseas＞ New business creation and supports towards start-up companies Partnering with local companies focused on ASEAN countries
Slide 28: ESG efforts towards sustainable growth (examples)
ESG efforts towards sustainable growth (examples) Akagi Nature Park Donations via Points Exchange With the goal of making coexistence between humanity and nature a reality, we manage the ・Donations for Great East Japan earthquake victims (¥630 mil) Akagi Nature Park in order to pass on the park’s ・D
Slide 29: Comparison of Share for Payment Methods in Japan and the U.S.
Comparison of Share for Payment Methods in Consumer Spending in Japan and the U.S. Japan (FY 2017) U.S.A. (FY2016 → FY2021 forecast) ※ (YoY) ※(share forecast of FY2021) Prepaid card, other Pay-Easy Convenience store 3.9％ (FY 2021：3.5％) 5.9％(＋0.5p) payment Check, 8.4％ 3.9％(＋0.4p) (FY 2021：2.5％) Cash
Slide 30: (Reference) Domestic Market Share (Shopping Transaction Volume)
(Reference) Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【FY 2017】 Regional Banks FC/BC, Aplus 1.2％ Others Credit Saison Group 11.6％ CS (non- 14.0％ Seven Card Service 1.4％ consolidated) MI Card 2.0％ 8.8％ Affiliated Companies Epos Card 3.0％ 5.2％
Slide 31: Recommended Product: Saison American Express Card
[Recommended Product] Saison American Express® Card Eikyufumetsu point (1,000 yen = 1 point / indefinite period): x2 for overseas use / x1.5 for domestic use PLATINUM Concierge service: 24 hours / 365 days Priority pass: No registration fee (annual membership fee: US$399) Annual fee Free baggage del
Slide 32: Memo
Memo 32