Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2017 Earnings Presentation
36 slides from Credit Saison's earnings presentation, May 16, 2018
Slide 1: Launched from Japan, The World's First Saison American Express Card
Launched from Japan, The World’s First Saison American Express® Card 2018. 5. 16 CREDITSAISON CO., LTD.
Slide 2: Agenda
AGENDA ◆ FY2017 Highlights Ⅰ． FY2017 Financial Report Ⅱ． FY2018 Management Strategies Ⅲ． ＥＳＧ‐related Higashi Ikebukuro 52 An entertainment group consists of female employees of Credit Saison (the “Company”) which the head office is located on the 52nd floor of the Sunshine 60 building in Higashi Ike
Slide 3: Highlights of 2017 Fiscal Year
Highlights of 2017 Fiscal Year FY 2014 and beyond Neo Finance Company in Asia FY 2025 - and next 10 years - Efforts for Business Model Change FY 2016 FY 2017 FY 2018 Working-Style Reform Brand Image Enhancement Creation of Growth Opportunity Introduced a “new human resource policy” to Higashi Ikebuk
Slide 4: Financial Results
１. Financial Results (¥ Billion) FY2016 YoY(%) FY2017 YoY(%) Operating 278.9 103.3 292.1 104.7 Consolidated Revenues Ordinary Income 53.0 121.1 56.7 106.9 Quarter Net Income 42.2 161.5 38.3 90.7 Earnings per Share (¥) 258.70 175.5 234.67 90.7 Operating consolidated Revenues 238.6 104.3 249.8 104.7 N
Slide 5: Results by Business Segment
２. Results by Business Segment Operating revenues Operating income (¥ Billion) FY2016 FY2017 YoY(%) FY2016 FY2017 YoY(%) Credit Service 211.6 220.3 104.1 7.9 12.7 159.6 Lease 13.2 12.8 97.0 4.3 4.3 100.8 Finance 31.0 35.4 114.0 12.8 16.2 126.5 Real Estate- related 13.6 15.4 113.4 4.9 6.4 130.5 Enter
Slide 6: Contribution by Consolidated Companies
３. Contribution by Consolidated Companies Ordinary income: Difference between Non-consolidated Consolidated Difference consolidated and non-consolidated figures Ordinary Contribution to consolidated results ¥38.8 billion ¥56.7 billion ¥17.8 billion income Contribution to Contribution Major consolida
Slide 7: Main Indices (Non-Consolidated)
４．Main Indices (Non-Consolidated) FY2016 FY2017 FY2018（Target） YoY(%) YoY(%) YoY(%) New Card Issued (millions) 2.61 99.8 2.44 93.4 2.00 81.8 Total Cardholders 26.46 26.95 27.4 103.3 101.8 101.7 (millions) （＋0.85） （+0.48） （＋0.45） Active Cardholders 14.8 15.0 16.0 100.1 101.3 106.8 (millions) （＋0.01）
Slide 8: Credit Risk / Credit Cost
５．Credit Risk / Credit Cost ■Trends in Credit Risk 6% 6% Delinquency of over 90 Delinquency of over 90 5% days (Consolidated) 5% days (Non-Consolidated 4% 4% Cash Advance 3% 3% 2.45% 2.51% 2.32% 2.18% 2.40% 1.69% Credit Card 2% 1.51% 1.48% 1.56% 1.58% 2% 1.32% 1.46% 1.58% 1.85% 1.28% Shopping 1% 1%
Slide 9: Interest Repayment Claims
6. Interest Repayment Claims No. of new interest repayment No additional provision is planned for claims shows 30% decrease from Current provision is at a sufficient FY 2018 the previous fiscal years level The future trend is yet to be monitored Trend in new interest repayment claims Trend of pr
Slide 10: Changes in Management Indicators
7. Changes in Management Indicators The company is determined to attain sustainable growth through strategic investments in Japan and overseas countries, meanwhile, enhance asset efficiency through expansion of high asset efficiency business and reduction of inefficient assets. Medium- and long-term
Slide 11: Return to Shareholders
8. Return to Shareholders Dividend policy: Maintaining stable payout Despite facing management challenges, the Company has never cut its dividends. FY 2018 (Forecast) In 2018, upon migration to the associated core system and a ■ Change in dividend per share downward trend in the number of repaym
Slide 12: Fund Structure and Changes in Interest-bearing Debt
(Reference) Fund Structure Changes in Interest-bearing Debt (Non-Consolidated) Card company's first [ Rating ] Long-term Ratio ： 67％ super long-term bond R&I A+ Fixed Ratio ： 63％ with a term of 20 years FY2017 bond issued 1.15% 0.98% Average Funding 0.83% 0.66% 0.53% May：Issuance volume of 25 billio
Slide 13: Revision of Numerical Targets in Medium-Term Management Plan
Revision of Numerical Targets in Medium-Term Management Plan Non-Operating Operating Revenues Operating Expenses Consolidated Revenues ordinary income - ¥2.5 billion Consolidated ordinary income ¥60.0 +¥9.0 billion +¥2.5 billion billion ¥55.0 - ¥4.0 billion billion (- ¥5.0 System-related Cost reduct
Slide 14: FY2018 Management Vision
FY2018 Management Vision Medium-Term Management Vision Neo Finance Company in Asia FY2016 FY2017 FY2018 To fully dedicate ourselves to fulfill customers’ needs and convenience CREDIT To become an organization where each individual and team contributes in wealth creation To transform ourselves start
Slide 15: Evolving into an era that demands newness and differences
Evolving into an era that demands “newness” and “differences” Capital alliance with local Asian companies Creation of new business models such as FinTech • Launch of credit card business • Enhancement in cardless at Vietnam HD SAISON settlement function and strengthening alliance phone apps with bus
Slide 16: Challenges for Top-Line Growth
Challenges for Top-Line Growth Strategy for new alliances To provide products and services that is contributable to our business partners, such as affinity credit card, prepaid card, mobile payment system and business processing Functions to meet business partners’ demand Department stores Supermark
Slide 17: Remodeling of Credit Card Business
Payment Remodeling of Credit Card Business Card Business Model change in customer acquiring, credit granting Securing competitive advantage through combination system and merchant acquiring of prepaid cards and the Eikyufumetsu point ● Implementation of strategies to promote paperless and ● Implemen
Slide 18: Growth Strategies in Finance Business (1)
Growth Strategies in Finance Business (1) Finance Finance Business Lease & Rental Credit Guarantee Strengthen business approach towards main Reassure the advantage of our service which is suppliers by utilizing the sales power of available for business fund purpose branches across Japan Revitali
Slide 19: Growth Strategies in Finance Business (2)
Growth Strategies in Finance Business (2) Flat 35 Asset Formation Loan Speed up the process from consultation to loan Increase competitiveness by customizing products that agreement through standardized management system meet the market needs Strengthen the relationship with existing agencies
Slide 20: Strengthening of Corporate Business Power and Full-scale Solution
Strengthening of Corporate Business Power and Full-scale Solution Solution Business Expansion of B2B Business Promoting cashless settlement at the corporate level by proposing solutions best fit the needs of each client Increase in efficiency in expenses reimbursement Share of shopping transaction v
Slide 21: Creation of Business Leveraging Digital Devices and Customer Data (1)
Creation of Business Leveraging Digital Devices Internet Content Business and Customer Data (1) “Creation of unique content that provides competitive advantage” Open innovation To provide high-quality content with strong support from customers (alliance with in an effective and efficient manner by u
Slide 22: Creation of Business Leveraging Digital Devices and Customer Data (2)
Creation of Business Leveraging Digital Devices Internet Content Business and Customer Data (2) In order to speed up the process of realizing the ultimate objective of Eikyufumetsu points to serve as currency, we aimed to enhance the convenience and versatility of the point system, encouraging custo
Slide 23: Strengthening of prior investment in Asia Business
Strengthening of prior investment in Asia Business by Global Asia Business utilizing elite workforces • Actualizing business in India, Myanmar, Thailand and Philippines • Indirect investment and business alliance with Asia leading IT venture companies through investment fund. • Developing resilient
Slide 24: [Asia Business] HD SAISON
Global [Asia Business] HD SAISON Asia Business Partnered up with Vietnam HD Bank on inclusive business, started the business as “HD SAISON Finance Company” since May 2015, developing its business primarily on motorcycle loans, home appliances loans and personal loans. • Started investment in May 201
Slide 25: [Asia Business] Grab Financial Services Asia Inc.
Global [Asia Business] Grab Financial Services Asia Inc. Asia Business Grab Holdings Inc. • Established in 2012, a on-demand ride-hailing and mobile payment services platform provider • Has its business operating in 8 Southeast Asia countries (Singapore, Malaysia, Indonesia, Vietnam, the Philippines
Slide 26: Asset Management Business
Securing Uniqueness and Competitive Advantage in Assets Investment Asset Management Management and Formation Market Business Assisting each customer’s assets management Supporting customers’ asset management with Providing wrap account management service professional long-term asset management and b
Slide 27: Views on ESG for Sustainable Growth
Views on ESG for Sustainable Growth Based on our management philosophy “Leading-Edge Service Company”, we are determined to contribute in social development and problem solving in a manner where only Credit Saison could make it, through our daily business operation, in order to create a convenient a
Slide 28: Advertising & Publicity – Efforts in enhancing brand image
Advertising & Publicity – Efforts in enhancing brand image Development of a new strategic PR system “Advertising X PR activities X Empathetic Contents” Employment of all workers as permanent employees / women’s participation in society Promotion of “same wage for same work” Promotion of telework Hig
Slide 29: Diversity & Inclusion
Diversity & Inclusion Diversity Declaration by Credit Saison System to promote diversity and inclusion Towards an organization where everyone could shine their Create a culture to embrace the diversity in gender, age, true selves, show mutual respect and work together nationality, value and others R
Slide 30: (Reference) Environment
(Reference) Environment (Activities for environmental preservation) We contribute to environmental preservation by various activities including operation of the Akagi Nature Park and use of environment-friendly materials. We also make efforts for environmental reservation in our daily works represen
Slide 31: (Reference) Social
(Reference) Social (Contribution to society) By upholding the belief that “as an important entity in the society, a company does not only follow the rules or contributing profit, but also respond to the current and potential needs of the people, community and society through developing business with
Slide 32: (Reference) Governance
(Reference) Governance (Activities for governance enhancement) Recognizing it is vital to secure transparency in management and to enhance management supervisory capability in realizing management targets, we carry out various activities for enhancement of corporate governance. Enhancement of effect
Slide 33: 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 (FY2016) U.S.A. (FY2016 → FY2021 forecast) ※【ＹｏＹ】 ※【 Share forecast of FY2020 】 Convenience store Prepaid card, other Pay-easy payment 3.9％ （FY2021：3.5％） 5.4％[0.2p] 3.5％ [±0.0p] Cheque 8.4％ Cash Account transfer
Slide 34: Japan, the less-developed country in cashless settlement
(Reference) Japan, the “less-developed country in cashless settlement” • The Japanese government aimed to achieve 40% of cashless settlement in 2025, which is 2 years earlier than the original plan, in order to cut down the costs related to distribution and management of cash for ATM machines and et
Slide 35: Domestic Market Share (Shopping Transaction Volume)
(Reference) Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【2016 fiscal year】 Our Group Long-term target Regional banks 30％ Aplus 1.2％ 14.6％ FC/BC Seven Card Service 1.5％ Other Our Company 10.9％ (non-consolidated) MI Card 2.2％ 9.2％ Epos Card 2.8％
Slide 36: Recommended Product: Saison American Express Card
[Recommended Product] Saison American Express® Card Eikyufumetsu point (1,000 yen = 1 point / indefinite period): X 2 for overseas use / X 1.5 for domestic use PLATINUM Concierge service: 24hours / 365days Priority pass: No registration fee (annual membership fee: US$399) Free baggage delivery servi