Credit Saison Co., Ltd. · TSE:8253
Credit Saison — H1 FY2013 Earnings Presentation
35 slides from Credit Saison's earnings presentation, Nov 11, 2013
Slide 1: FY2013 2nd Quarter Management Report
FY2013 2nd Quarter Management Report There are said to be 26 species of maples in Japan. 22 species of maples can be found in Akagi Nature Park. Recipient of the 2012 Porter Prize. 2013. 11. 11 CREDIT SAISON CO., LTD.
Slide 2: Agenda
AGENDA ◆ FY2013 First Half Business Highlights Ⅰ．FY2013 First Half Financial Report Ⅱ．FY2013 Management Strategies Ⅲ． Social Contribution Activities This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are not guarantees of future p
Slide 3: Main Topics of the First Half of 2013 Fiscal Year
◆ Main Topics of the First Half of 2013 Fiscal Year Apr. ◆ Issuance of the “Cocokara Club Card”, Japan’s first Visa prepaid card which can be used at stores accepting Visa both in Japan and overseas ➥ Exceeded total of 2 million members in October ◆ Founded consulting company in Hanoi, Vietnam and s
Slide 4: I. FY2013 First Half Financial Report
Ⅰ. FY2013 First Half Financial Report 1. Financial Results 2. Results by Business Segment 3. Contributions by Consolidated Companies 4. Progress of the business of real estate business (Atrium group) 5. Main Indices (Non-Consolidated) 6. Trends in the cash advance business 7. Interest repayment clai
Slide 5: 1. Financial Results
1. Financial Results (¥ billion) FY2012 FY2013 FY2013 nd YoY (%) YoY (%) YoY (%) 2 Quarter 2nd Quarter （Estimate) Operating 122.4 96.0 123.9 101.2 251.0 102.7 Revenues Consolidated Ordinary 27.9 111.9 27.3 97.8 51.3 96.4 Income Quarter Net 17.6 101.1 17.6 99.8 32.0 97.7 Income Earnings per 93.38 101
Slide 6: 2. Results by Business Segment
2. Results by Business Segment （¥ billion） Operating Revenues Operating Income FY2012 FY2013 FY2012 FY2013 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2ndQuarter Credit Service 95.3 93.8 98.4 12.6 9.9 78.7 Lease 7.2 6.9 95.9 3.4 2.8 81.2 Finance 8.4 9.0 106.7 4.5 4.5 100.5 Real Estate- relat
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 ¥20.2 billion ¥27.3billion 7.0billion Contribution Contribution to to ordinary Major c
Slide 8: 4. Progress of the Real Estate Business (Atrium Group)
4. Progress of the Real Estate Business (Atrium Group) In In improving improving market market trends, trends, asset asset reduction reduction proceeds proceeds at at aa high high profit profit margin margin • Realized sales focusing on real estate with high profit rate, profit exceeds the plan. • C
Slide 9: 5. Main Indices (Non-Consolidated)
5. Main Indices (Non-Consolidated) FY2012 FY2013 FY2013 2nd Quarter YoY(%) 2nd Quarter YoY(%) （Estimate） YoY(%) New Applications (millions) 1.62 131.7 1.77 109.3 3.50 103.6 New Card Issued (millions) 1.22 131.1 1.28 105.0 2.60 103.6 Total Cardholders 24.73 24.81 25.20 99.4 100.3 101.5 (millions) （△0
Slide 10: Share of Cards (Non-consolidated)
（ Reference ） Share of Cards (Non-consolidated） Transaction Transaction volume volume ofof the the Premium Premium cards cards is is triple triple as as much much as as that that of of the the average average （Profitability （Profitability about about 30-60 30-60 times times the the general general c
Slide 11: 6. Trends of the Cash Advance Business
6. Trends of the Cash Advance Business Transaction volume shows recovery trend, balance continues to decrease but at a smaller rate ■ Transaction volume trends ■ Balance trends End of Fiscal 2013 (Plan) (100 million yen) Balance of 220 billion yen (approx. one-third of 600.1 billion yen peak) 10% Op
Slide 12: 7. Interest repayment claims
7. Interest repayment claims ■New generation past trends attorney intervention（Year comparison） Monthly average number Trends in new claims handled by lawyers and other proxies 7,000 Settlements of interest repayment claims 5,900 6,000 4,900 5,100 5,000 4,700 4,400 4,000 3,100 3,000 2,500 3,200 3,20
Slide 13: 8. Credit Risk・Credit Cost
8. Credit Risk・Credit Cost ■Credeit Risk Delinquency of over 90 days Delinquency of over 90 days 6% 6% 5.39% 5.41% （Consolidated） （Non-Consolidated） 5% 5% Credit Card 3.93% 4% 3.54% 3.40% 4% 3.58% Cash Advance 3.32% 2.66% 2.92% 3% 3% 2.39% 2.62% 2.02% 1.79% 2% 2% 2.53% 1.71% 1.52% 2.38% 1% 1.84% 1%
Slide 14: 9. Financial Indices
9. Financial Indices (¥ billion) Consolidated Non-consolidated change from change from end of FY2012 end of FY2012 Shareholders’ 409.8 +18.3 360.5 +11.3 Equity Total Assets 2,144.0 ＋2.2 2,056.0 ＋4.1 Shareholders’ 19.1% +0.8% 17.5% ＋0.5% Equity Ratio 12
Slide 15: Fund Structure
（Reference）Fund Structure Changes in interest-bearing debt（Non-Consolidated） Average Funding 1.43% 1.41% （Billion） 1.33% 1.29% １,６４５ 1.21% １,５７2 1,365 1,414 1,334 【Rating】 Long-term Ratio：79% R&I A+ Fixed Ratio：65% 13
Slide 16: Slide 16
Slide 17: II. FY2013 Management Strategies
Ⅱ. FY2013 Management Strategies ◆ Management Vision ◆ Management Strategies ◆ Priority Policies, FY2013 Second Half 14
Slide 18: FY2013 Management Vision
◆ FY2013 Management Vision As a final step “collaborative management utilizing strategic assets” and “break cash dominance” establish a multi-core system for revenue sources by further refining our Asia strategy and by accelerating our shift to non-bank business and our acquirement of the No. 1 card
Slide 19: Provide Customer Solutions Through Collaboration of Strategic Products
Provide Customer Solutions Through Collaboration of Strategic Products High onsite capability Credit card customer base クレジットカード顧客基盤 Saison American Express® Card 永久不滅ポイント Eikyufumetsu Points “Store/Counter Network” Credit Business Group 353,500 グループ million members万会員 Consolidated shopping transact
Slide 20: Management Strategies and Priority Policies, FY2013 Second Half
◆Management Strategies and Priority Policies, FY2013 Second Half 1 Asia Asia strategy strategy focusing on ASEAN to achieve a high growth The The market market share share through through Establish Establish SAISON-AMEX SAISON-AMEX as as aa strategic strategic 2 advantage advantage Break Break cash
Slide 21: 1. Asian Strategy Focusing on ASEAN
1. Asian Strategy Focusing on ASEAN Starting retail finance business in ASEAN countries Kum ing 中国 Founded local Shanghai Taipei subsidiary Nanning Guangzhou Taiwan Hong Kong Myanmar Hanoi Haiphong Chiang-Rai Yangon Laos Phitsanulok Donhan Mawlamyaing Philippines Manila Dawei バンコク Bangkok Vietnam Ca
Slide 22: 2. Enhancement of Customer Base Through New Card Application
2. Enhancement of Customer Base Through New Card Application Strengthen member application channels for cards with high usage volume and high usage amount ■ Strengthen system for promoting AMEX card ・ Increase BtoB payment by through application of new members for platinum business cards for busines
Slide 23: 3. Measures to Expand Shopping Transaction Volume
3. Measures to Expand Shopping Transaction Volume Promote Promote regional regional vitalization, vitalization, improve improve card card services services and and capture capture demand demand associated associated with with increase increase in in consumption consumption tax tax Sapporo ■ Regional
Slide 24: 4. Expand Internet Business
4. Expand Internet Business Improve user royalties utilizing Eikyufumetsu points ■ Introduce convenient services ・ Introduce “Point Declaration” service ・ Introduce smartphone application for Eikyufumetsu.com ■ Develop new businesses ・ Technological/information partnership with venture corporations
Slide 25: 5. Comparison of Share for Payment Service Methods in Japan and the U.S.
5. Comparison of Share for Payment Service Methods in Consumer Spending in Japan and the U.S. Japan (FY2012) U.S.A. (FY2012 → FY2016 forecast) Prepaid card, other Collected from 4.3% Pay-easy convenience stores (FY2016：4.2%) 2.9% 3.0% Check Cash Transfer, account 13.9% 18.2% (FY2016：9.0%) (FY2016：13
Slide 26: 6. Overtake the Cash Market and Develop New Markets
6. Overtake the Cash Market and Develop New Markets Overtake the cash market through the keyword “low cost” ■ Active promotion of prepaid cards ・Issuance of Visa prepaid card Cocokara Club Card 1st Half Results 1.88 million cards Yearly Target 7.25 million cards ・No credit screening, account registr
Slide 27: 7. Life Assist Point System
7. Life Assist Point System Introduce Introduce the the Life Life Assist Assist Point Point System System as as aa measure measure for for stimulating stimulating consumption consumption via via credit credit card card Award points Raise individual Economic recovery when card is used consumption whi
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] ① Net increase in final Before implementation (FY2011) consumption expenditures After implementation Collected from Approx. 11.7 trillion yen convenience stores （Final private consumer P
Slide 29: 8. Finance Business Lease and Rental Business
8. Finance Business Lease and Rental Business Increase Increase transaction transaction volume volume through through sales sales focusing focusing on main stores and and development development of of new new products products ■ Dramatic increase in sales ability ・Detailed sales approach to main sto
Slide 30: 9. Finance Business Credit Guarantee Business
9. Finance Business Credit Guarantee Business Accumulate Accumulate aa high-quality high-quality guarantee guarantee balance balance by by invigorating invigorating existing existing partners partners and and forming forming new new partnerships partnerships ■ Increase balance with existing partners
Slide 31: 10. Finance Business Other Finance Products
10. Finance Business Other Finance Products Active promotion of loan business utilizing the Saison brand ■ Expand Flat 35 with goal of capturing No. 1 share in industry ・Conduct sales based on features such as “speedy screening,” “granting of loans on Saturdays, Sundays and holidays,” and “loans for
Slide 32: Changes in domestic credit card industry
（Reference）Changes in domestic credit card industry 2000～01 2002～03 2004～05 2006～07 2008～09 2010～13 Enactment of revised Supreme Court decision to return Enactment of Article 3 of the Full enactment of the revised Investment Act excessive interest payments revised Moneylending Control Moneylending C
Slide 33: 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 Shizuoka Bank Pocket Credit Credit Yamada Credit Saison Card Card JAL Cardﾞ Aeon Seven Card
Slide 34: Domestic Market Share (Shopping Transaction Volume)
（Reference） 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 V
Slide 35: III. Social Contribution Through Activities to Protect the Natural Environment
III. Social Contribution Through Activities to Protect the Natural Environment 3 years have passed since the park opened and it has become more well-known. 29,763 people have already visited the park this year, more than the total for last years (130.8% increase YOY; as of Sept. 30). Starting from t