Slide 1: Management Report FY2014
Management Report FY2014 アイ １ポイントに♥がある。 2015. 5. 14 CREDITSAISON CO., LTD.
Slide 2: Agenda
AGENDA ◆ FY2014 Highlights Ⅰ．FY2014 Financial Report Ⅱ．FY2014 Management Vision 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 performance and known and unknown ris
Slide 3: Main Topics of the 2014 Fiscal Year
Main Topics of the 2014 Fiscal Year Payment ▪ The shopping transaction volume exceeds 4 trillion Card Business ▪ Substantial expansion in the Revolving balance to 294.9 billion yen (YoY Comparison+10%) ▪ Establishment of a sales system targeting corporations comprising all sections and all employees
Slide 4: FY2014 Financial Report
Ⅰ．FY2014 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 Presented the Town Card Festivalstotal 8. Financial In
Slide 5: 1. Financial Results
1. Financial Results (￥ Billion) FY2015 YoY(%) FY2013 YoY(%) FY2014 YoY(%) （Estimate） Operating Revenues 247.5 101.3 259.0 104.6 268.0 103.4 Consolidated Ordinary Income 44.4 83.5 43.6 98.4 54.5 124.8 Quarter Net Income 25.5 78.0 12.6 49.4 35.0 277.1 Earnings per Share (¥) 139.15 78.0 68.77 49.4 190
Slide 6: 2. Results by Business Segment
2. Results by Business Segment （¥ billion） Operating revenues Operating income (loss) FY2013 FY2014 YoY (%) FY2013 FY2014 YoY (%) Credit Service 189.6 199.2 105.1 14.7 15.3 104.9 Lease 14.2 13.9 97.7 6.0 5.9 98.2 Finance 19.1 22.8 119.3 10.0 13.2 132.0 Real Estate- related 12.6 13.0 103.3 3.8 4.5 11
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 ¥38.4 billion ¥43.6 billion 5.2billion Contribution Contribution to Major consolidated
Slide 8: (Reference) Progress of the Real Estate Business (Atrium Group)
(Reference) Progress of the Real Estate Business (Atrium Group) With sales/ joint development of large properties, progress made as planned for the final fiscal year of the project liquidating liquidation businesses [Ebisu development: Exterior image] ▪ Business to be liquidated ▪ Ebisu Boosted deve
Slide 9: 4. Main Indices (Non-Consolidated)
4. Main Indices (Non-Consolidated) FY2013 FY2014 FY2015 YoY(%) YoY(%) (Estimate) YoY(%) New Applications (millions) 3.32 98.2 3.00 90.6 3.40 113.0 New Card Issued (millions) 2.53 100.7 2.37 93.6 2.70 113.8 Total Cardholders 24.75 24.97 25.60 99.7 100.9 102.5 (millions) （△0.06） （0.22） （+0.63） Active
Slide 10: 5-(1) Credit business trend to shopping business
5-(1) Credit business trend to shopping business [Transaction volume] ▪ Expanding the customer base with focus on cards with (Billion yen) 4,450 high usage volume like the American Express 120% Centurion Card ▪ Promoting use of company’s cards in supermarkets, 4,089 shopping centers, etc., at the sa
Slide 11: 5-(2) Credit business trend-cash advance
5-(2) Credit business trend-cash advance Granting credit limits based on customers’ wishes Challenging cash advance business with new ideas [Credit Saison alone] Business profit [Increasing cards with cash advance function] Balance Transaction volume (YoY Comparison) ▪ Putting to good use the compan
Slide 12: 6. Credit Risk / Credit Cost
6. Credit Risk / Credit Cost Capturing both young and senior customers with a flexible credit policy ■Trends in Credit Risk Delinquency of over 90 6% 6% 5.41% days Delinquency of over 90 days (Consolidated) (Non-Consolidated) 5% 5% Credit Card 3.93% 4% 3.40% 4% 3.32% 2.92% Cash Advance 3% 2.66% 3% 2
Slide 13: 7. Interest Repayment Claims
7. Interest Repayment Claims As the number of new cases of third party interventions based on aggressive advertisement of some judicial scriveners and lawyers was higher than expected,Made provisions of allowance for loss due to interest repayment. ■ Trends in new claims handled by lawyers ■ Trend o
Slide 14: (Reference) Progress status of associated core system development
(Reference) Progress status of associated core system development Continuous development towards system release in the second half of 2016 [Purposes of development] ■ Consolidating customer management ▪ Central management of Saison/UC brand customer information ■ Aiming at efficiency in developing a
Slide 15: 8. Financial Indices
8. Financial Indices Consolidated Non-Consolidated Difference Difference Shareholders’ ¥445.1 billion ＋25.8 ¥388.4 billion ＋20.6 Equity Total Assets ¥2373.2 billion ＋87.3 ¥2287.9 billion ＋87.5 Shareholders’ 18.8% ＋0.4% 17.0% ＋0.3% Equity Ratio ※1 ROE 6.1% △0.5% 6.1% ＋0.3% ※2 ROA 1.9% △0.1% 1.7% ＋0.1
Slide 16: (Reference) Fund Structure 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 [Rating] (Billion yen) R&I A+ Average Funding FY2014 bond issue 2,000 1.33% 1.41% 1.29% 1.15% 0.98% 20,00
Slide 17: II. Management vision for the fiscal year 2015
II. Management vision for the fiscal year 2015 Neo Finance Company in Asia ~ Accomplishing change in business model ~ To become a company (team) people are proud to work with by maintaining the competitive superiority with the introduction of branding strategies and innovative services that utilize
Slide 18: Strategy I: Payment Card Business
< STRATEGY Ⅰ > Payment Card Business Promoting individual consumption and defying the cash market ■ With Saison American Express® card, ■ Strengthening cooperation with making our cards the main cards for every user e-commerce businesses ▪ Expanding the sales of the exclusive cards ▪ Capture e-comme
Slide 19: Strategy I: Payment Card Business (prepaid/smartphone)
< STRATEGY Ⅰ > Payment Card Business Increase in payments by cards based on multi-lateral use of prepaid cards/smartphone payments ■ Establishment of the Company as the No. 1 prepaid 2,000 card service in Japan [Change in number issued] ・ “Establishment of leading edge business foundations (Unit: Te
Slide 20: Strategy I: Solution Business
Solution < STRATEGY Ⅰ > Solution Business Intensive promotion of a sales system targeting corporations ■ Promotion of cashless payments in the corporate market ・ Maximum utilization of strategic products to increase sales of corporate products such as corporate cards ・ Improvement in service line-up
Slide 21: Strategy I: Finance Business
Finance < STRATEGY Ⅰ > Finance Business Responding to financing needs by a variety of finance products [Lease & Rental] [Credit Guarantee] ■ Expansion of transaction volume by ■ Revitalization of the connection with strengthening marketing existing clients ・ Joint promotion of grade-up contracts wit
Slide 22: Strategy I: Finance Business
< STRATEGY Ⅰ > Finance Finance business Response to the financing needs by a variety of finance products [Items related to finance business] (Unit: billion yen) 350 338 [Trends in balance of assigned claims] ■ Marketing- and operation- integrated promotion of Flat 35 (Flat 35) 300 • Speedy examinati
Slide 23: Strategy I: Internet Business
< STRATEGY Ⅰ > Internet Internet business Development of the Internet business and use of smartphones correspondence “Establishment of big data business" and “nurturing of the advertisement/marketing business" [Advertising business] Card Advertisement Solution • Profitability improvement and expansi
Slide 24: Strategy II: Improvement in customer value with innovation
< STRATEGY Ⅱ > Improvement in customer value with innovation Payment Solution Card Business Solution Business Individuals Collaboration with Corporations Finance Internet Real strategic weapons Internet Finance business Internet business ・Excavation of leading finance technology (FinTech) • Finding
Slide 25: Strategy III: Global Overseas Business
< STRATEGY Ⅲ > Global Overseas business Establishment of a business foundation in ASEAN Kunmi Taipei Natural gas/ Overseas bases Vietnam Saison ng Petroleum Sino-Vietnam Expressway Consulting pipeline Company Taiwan China (Shanghai) Limited Kunming–Bangkok Expressway Guangzhou Saison Business Consul
Slide 26: Strategy III: Capital and business alliances
< STRATEGY Ⅲ > Global Overseas business Promoting a concrete business with a capital and business alliance company ■ Establishment of HD SAISON Finance Company ■ Capital and business alliance with Matchmove Pay by entering into a capital and business alliance Pte Ltd. with HD Bank ~Pioneering develo
Slide 27: Comparison of Share for Payment Service Methods in Japan and the U.S.
Comparison of Share for Payment Service Methods in Consumer Spending in Japan and the U.S. Japan (FY2013) U.S.A. (FY2013 → FY2018 forecast) ※【ＹｏＹ】 Prepaid card, other Collected from 4.3％ Pay-easy convenience stores (FY2018: 3.4%) 3.4% [0.4p] 3.2% Cash Check Transfer, account [0.2p] 11.8％ 17.4％ Trans
Slide 28: (Reference) 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 三井住友 カード セディナ オリコ りそなｶｰﾄﾞ 出光 髙島屋 ﾔﾏﾀﾞ 静銀 ｸﾚｼﾞｯﾄ ｸﾚｼﾞｯﾄ ﾌｨﾅﾝｼｬﾙ ｾｿﾞﾝｶｰﾄﾞ ポケット カード ジャックス JALｶｰﾄﾞ イオン セブンカード フィナンシャル 大和ﾊｳｽ セブンCS サービス サービス YMセゾン SMBC ﾌｨﾅﾝｼｬﾙ カード ｺﾝｼｭｰﾏｰ
Slide 29: Domestic Market Share (Shopping Transaction Volume)
Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【2013 fiscal year】 Regional banks Seven Card Service 1.5% FC/BC Our Group Other 16.1% Aplus 1.6% 7.0% Epos Card 2.1% Our Company (non-consolidated) 9.7% MI Card 2.4% Joint Venture Card companies 6.4%
Slide 30: (Reference) 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 FY2014 New Total Card Transaction applications Holders Volume Credit Saison Co., Ltd. 3.00 24.97 4.36 Idemitsu Credit Co., Ltd. 0.25 3.24 0.78 Seven CS Card Servi
Slide 31: Contribution to society: Japan's National Soccer Teams
Ⅲ． Contribution to society (2) ~ Japanʼs National Soccer Teams Japanʼs National Soccer Teams 「Nadeshiko JAPAN」 「SAMURAI BLUE」 Supporting Company ハリルホジッチ監督 Schedule Nadeshiko Japan (2015) May.24, Against New Zealand in Kagawa May.28 Against Italia in Nagano June.8 World Cup （Against Switzerland） June
Slide 32: Contribution to society: Social and cultural activities
Ⅲ． Contribution to society (2) ~ Social and cultural activities Support of Center for iPS Cell Research and Application run by Professor Yamanaka Soliciting for donations from users using Eikyufumetsu Points or cards to "the Center for iPS Cell Research and Application" headed by Professor Shinya Ya