Credit Saison Co., Ltd. · TSE:8253
Credit Saison — H1 FY2022 Earnings Presentation
39 slides from Credit Saison's earnings presentation, Nov 10, 2022
Slide 1: Financial Results Briefing of First Half of FY2022
Financial Results Briefing of First Half of FY2022 November 10, 2022 Credit Saison Co., Ltd. 1
Slide 2: Agenda
AGENDA Financial Results of FY2022 1H Financial Policy & Capital Policy Managing Executive Officer, CFO Shingo Baba Business Strategy for FY2022 2H Executive President and COO Katsumi Mizuno Sustainability-related information This report contains forward-looking statements that reflect our plans
Slide 3: Financial Results of FY2022 1H / Financial Policy & Capital Policy
Financial Results of FY2022 1H/ Financial Policy & Capital Policy 3
Slide 4: Financial Results Digest
Financial Results Digest • In our payment business, in addition to the recovery trend, which includes double-digit growth in card shopping transaction volume, there was steady growth in all business segments including solid growth in our finance business as a 2nd pillar, and expanding income contrib
Slide 5: Financial Results ① Results by Business Segment (IFRS)
Financial Results ① ~ Results by Business Segment (IFRS) ~ (billion yen) <Net revenue> (billion yen) <Business profit> 200.0 +11% 39.3 +5% 157.3 40.0 149.2 35.3 0.7 (－) 150.0 7.5 (▲26%) 3.2 3.1 (▲2%) 30.0 10.1 12.3 (▲18%) 15.1 11.0 (+13%) 100.0 25.8 (+11%) 23.2 20.0 9.8 6.0 (+1%) 2.5 (▲13%) 5.9 2.9
Slide 6: Financial Results ② Main Increases/Decreases in Business Profit
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 ¥23.4billion(▲¥0.52billion) ¥39.3billion(+¥4.03billion) ¥15.8billion(+¥4.56billion
Slide 7: Credit Risk
Credit Risk Delinquency over 90 days remained at a low level. Revised full-year forecast in consideration of credit cost being lower than initially expected. Delinquency over 90 days(consolidated) Delinquency over 90 days(non-consolidated) 5.0% 5.0% Cash 4.0% Credit card 4.0% advances 3.0% 2.65% 2.6
Slide 8: Interest Repayment Claims
Interest Repayment Claims Additional provision of ¥13.6 billion on the consolidated basis and Level of provision adequate at No plans for additional provision ¥12.7 billion on the present Monitoring future trends nonconsolidated basis in fiscal 2021 No. of new claims and price per claim (monthly a
Slide 9: Revision of Business Results Forecast for FY2022
Revision of Business Results Forecast for FY2022 <MAIN INCREASES/DECREASES IN BUSINESS PROFIT IN 2H FY2022> (billion yen) (billion yen) Previously 5.0 2.2 Current Amount of announced forecast increase 1H results 2H forecast forecast (Announced 9.5 November 10) (decrease) (C) (B－C) Non- (Announced Ma
Slide 10: 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 10billio
Slide 11: Capital Policy (Risk Capital Management)
Capital Policy (Risk Capital Management) Background to Review of Risk Capital Allocation Model Top Priority Implement review of the surplus risk capital allocation model in light of As a non-bank with interest-bearing debt in excess of approximately 2.5 trillion changes in the Company's business env
Slide 12: Business Strategy for FY2022 2H
◆Business Strategy for FY2022 2H 12
Slide 13: Recovery in card shopping transaction volume
Payment Recovery in card shopping transaction volume Card shopping transaction volume has recovered to higher than the pre-pandemic level and has maintained double-digit growth rate year on year Annual plan revised up based on current conditions Card shopping transaction volume and year-on-year card
Slide 14: Expansion of young members
Payment Expansion of young members New product releases since FY2020 have achieved a certain level of success in attracting young members. Percentage of new members by age group Industry Credit Saison FY2012 FY2022 1H average 2021 10% 20% 30% [Source] Japan Consumer Credit Association Japan credit c
Slide 15: New GOLD Card Strategy
Payment New GOLD Card Strategy Started invitations for SAISON GOLD Premium, a New Royalty Service (from July 29, 2022) Partnering with GOLD AMEX to increase customer spending by promoting usage as main card New GOLD Card Strategy Customer spending Promote usage as main card by shifting ordinary card
Slide 16: AMEX Strategy (1) - Expand the Affluent Segment
Payment AMEX Strategy (1) - Expand the Affluent Segment Issue a top-tier card for the affluent segment that exceeds PLATINUM AMEX and is completely invitation-only Full-scale operation of affluent segment business <Product lineup for individual members> <Initiatives for affluent segment business> Co
Slide 17: AMEX Strategy (2) - Expansion of Business in the BtoB Field
Payment AMEX Strategy (2) - Expansion of Business in the BtoB Field Growth rate of card shopping transaction volume in the BtoB field remained over 30% even during the pandemic Work to further expand market share in BtoB field by launching new products Year-on-year card shopping transaction volume i
Slide 18: Expand processing revenue
Payment Expand processing revenue Work to expand revenue in processing business through existing and new contractors Existing contractors Processing revenue outlook Further expand revenue of existing contractors Further expand revenue in the future by 400 acquiring new contractors Expand the top l
Slide 19: Integrate payment business × finance business
Payment Finance Integrate payment business × finance business Expand sales of payment-related products to individual customers and corporate customers of finance business No. of business partners Approx. 300 companies No. of business No. of business partners Approx. partners 330,000 companies Approx
Slide 20: Integrate payment business × finance business - rent guarantee
Payment Finance Integrate payment business × finance business - rent guarantee Since rent guarantee users can pay their monthly rent and guarantee commission with a Saison Card, cross-sell Saison Card membership when they apply for a rent guarantee. Benefit for payment business Benefit for finance b
Slide 21: Strong accumulation of balances in the finance business
Finance Strong accumulation of balances in the finance business LEASE/FINANCE-RELATED BUSINESS PRODUCT BALANCE TARGET (INCLUDES OFF-BALANCE SHEET) Asset Formation Loan (billion yen) 3,500.0 Sell receivables to improve asset efficiency Lease 3,000.0 Promote corporate merchandise sales to 330,000 leas
Slide 22: Construction of foundation for business expansion
Global Acceleration of global business expansion Establishment of operating companies in India and five Southeast Asian countries to accelerate the development and expansion of the lending business in Asia Kisetsu Saison Finance (India) Pvt. Ltd. Digital lending business based on BtoBtoC model Const
Slide 23: Global Business Business Profit Trend
Global Business Business Profit Trend (billion yen) 80 Accumulated profit for each country’s business 7.0 70 60 50 40 30 20 10 0 FY21 1H FY22 1H FY21 FY22 FY24 -10 [Plan] [Plan] レンディング インベストメント 23
Slide 24: India
Global Lending Business India Kisetsu Saison Finance (India) Pvt. Ltd. - Credit Saison India Balance growing in excess of budget due to expansion of lending in partnership with fintech Aim for further expansion by accelerating direct lending and creating new businesses Business model Trend for outst
Slide 25: Vietnam and Singapore lending and investment business
Global Lending Business Investment Business Vietnam Singapore HD SAISON Finance Company Ltd. Saison Capital Pte. Ltd. Motorbike loans, etc. have recovered to pre-pandemic levels. In addition to fintech and e-commerce, we are actively In particular, cash loans are driving overall growth, which invest
Slide 26: Creation of new business
Innovative New business Creation of new business Create new businesses using flexible and optimal methods to meet diversifying values and needs Digital comics <July 2022> Financial Pets services <August 2022> <July 2022> Circular BtoB economy <August 2022> <September 2022> 26
Slide 27: Digital strategy
Digital Digital strategy Promote innovation using digital technology Use digital technology in line with digital penetration rate of business to transform customer/employee experience, create innovative business models, and provide inspiring Innovation experiences that exceed society’s expectations
Slide 28: Create digital human resources
Digital Create digital human resources Increase the number of digital human resources to 1,000 by FY2024 to accelerate the shift to a digital organization by nurturing digital human resources through enhancement of human resource development systems and a digital certification system Create 1,000 di
Slide 29: Sustainability related information
Sustainability related information 29
Slide 30: 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 move society forward in ways only Credit Saison can by leveraging our unique knowhow, management resources, and
Slide 31: Addressing climate change
Environment Addressing climate change Announced endorsement of TCFD recommendations Joined TCFD Consortium (May 2022) Submitted first response to CDP Climate Change 2022 Questionnaire Disclosed information based on TCFD (August 2022) disclosure framework 31
Slide 32: Business development aimed at contributing to environmental issues
Environment Business development aimed at contributing to environmental issues (June and August 2022) Japan’s first Realization of carbon neutral lifestyle Creation of new circular networks and new value to realize a recycling-oriented society SAISON CARD Digital for becoz Established Re Saison
Slide 33: Contribution to society
Environment Society Contribution to society Operate the Akagi Nature Park A forest unique to Japan, a country with four beautiful seasons. A one-of-a-kind forest With the theme of “coexistence of humanity and nature” and the concept of providing lush natural scenery to pass on to future children,
Slide 34: Issuance of the first Credit Saison social bonds
Society Issuance of the first Credit Saison social bonds (June 2022) Solving social issues faced by underserved small and micro businesses and individuals in Southeast Asia, India, and other emerging economies Capital increase and loan for local subsidiary in India Loan for local subsidiary in S
Slide 35: Diversity, Equity, and Inclusion
Society Diversity, Equity, and Inclusion - Credit Saison's Diversity Declaration - Credit Saison aims to be a company where we acknowledge and harness each other’s capabilities so all employees can actively contribute and thrive as individuals. Diversity mark determined through internal applicatio
Slide 36: Diversity, Equity, and Inclusion
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 37: Financial education for the next generation
Society Financial education for the next generation Education for the Next-Generation and Financial Education Signing ceremony for education partnership agreement “Business trip class ~SAISON TEACHER~” at Reitaku University (August 2022) Hold financial education for children to become independent
Slide 38: (Reference) Information on the Integrated Report
(Reference) Information on the Integrated Report Issuance of integrated report to enhance disclosure of financial and non-financial information Received an award at the International ARC Awards 2022 for the second year in a row Award category <First award> • Silver in PDF Version of Annual Report
Slide 39: Reference: Major External Certifications
Reference : Major External Certifications Selected for five years in a row GPIF-adopted ESG index for status GPIF-adopted ESG index for companies with superb Ministry of Economy, Trade and Industry certification Project sponsored by Nikkei of information disclosure and carbon gender diversity system