Slide 1: Management Report FY2012
Management Report FY2012 May 17, 2013 Credit Saison won “Porter Prize 2012” ” CREDIT SAISON CO., LTD. Photo：Akagi Nature Park
Slide 2: Agenda
AGENDA ◆ FY2012 2012 Highlights Ⅰ．FY FY201 FY2012 2012 Financial Report Ⅱ．FY FY201 FY2013 2013 Management Vision Ⅲ．FY2013 FY2013 Management Strategies Ⅳ．Social Social Contribution Activities This report contains forward-looking statements that reflect our plans and expectation. These forward-looking
Slide 3: Main Topics of the 2012 Fiscal Year
Main Topics of the 2012 Fiscal Year （１）Made advance investment through collaboration to ASEAN countries and China （Petrovietnam Finance, Cyber Agent, Digital Garage Group) （２）Reached one of the largest number of newly issued consolidated cards: 3.22 million cards (up 21% YOY) （３）AMEX brand: New issu
Slide 4: FY2012 Financial Report
Ⅰ．FY2012 Financial Report 1. Financial Results 2. Results by Business Segment 3. Contributions by Consolidated Companies 4. Main Indices (Non-Consolidated) 5. Trends in the cash advance business 6. No.1 Credit Management and Collection 7. Financial Indices 8. Dividends 2
Slide 5: Financial Results
1. Financial Results (￥ Billion) FY2013 YoY(%) FY2011 YoY(%) FY2012 YoY(%) （Estimate） ） Operating Revenues 244.0 85.4 244.4 100.2 251.0 102.7 Consolidated Ordinary Income 38.5 114.3 53.2 137.9 51.3 96.4 Quarter Net Income 9.4 73.7 32.7 346.6 32.0 97.6 Earnings per Share (¥) 51 73.7 178 346.6 174 97.
Slide 6: Results by Business Segment
2. Results by Business Segment （¥ billion） ） Operating revenues Operating income (loss) FY2011 FY2012 YoY (%) FY2011 FY2012 YoY (%) Credit Service 198.8 190.4 95.8 27.1 24.1 89.1 Lease 14.6 14.4 98.4 5.0 6.1 120.5 Finance 15.7 17.3 110.3 7.7 8.9 115.5 Real Estate- related 3.0 9.8 320.6 (10.1) 0.9 －
Slide 7: Contribution by Consolidated Companies
3. Contribution by Consolidated Companies Ordinary Ordinary income: income: Difference Difference between between consolidated consolidated and non-consolidated figures and non- non - consolidated figures Non-consolidated Consolidated Difference Contribution Contribution to to consolidated consolida
Slide 8: Reference (1) Progress of the real estate business (Atrium Co., Ltd.)
Reference (1) Progress of the real estate business (Atrium Co., Ltd.) While the market improves, the asset reduction plan processed as planed. ＜Retain business＞ ＞ Small to medium-scale development, value up or income-producing properties, and Servicing prperties ・ Appropriate replacement of assets s
Slide 9: Reference (2) Credit business on a consolidated basis
Reference (2) Credit business on a consolidated basis Expand our market share by establishing No.1 card issuer status on consolidated basis FY2012 FY2012（Plan） Shopping Total of 7 companies Number of Transaction cards issued Volume Credit Saison Co., Ltd. 2.51 3.54 Number of Idemitsu Credit Co., Ltd
Slide 10: Main Indices (Non-Consolidated)
4. Main Indices (Non-Consolidated) FY2011 FY2012 FY2013 YoY(%) YoY(%) (Estimate) YoY(%) New Applications (millions) 2.60 101.2 3.38 130.0 3.50 103.6 New Card Issued (millions) 1.96 92.5 2.51 128.1 2.60 103.6 Total Cardholders 24.75 24.82 25.20 87.3 100.3 101.5 (millions) （△3.59） （△ ） （+0.07） ） （+0.3
Slide 11: Reference (3) Share of Cards (Non-consolidated)
Reference (3) Share of Cards （Non-consolidated） ） Transaction volume of the Premium cards is triple as much as that of the average 【FY2012】 【Share of Total Cardholders】 【Share of Shopping Transaction Volume】 4.5% Premium SAISON SAISON MMC Premium Proper Proper 10.2% 15.8% 16.3% Takashimaya 18.4% Tak
Slide 12: Trends of the Cash Advance Business
5. Trends of the Cash Advance Business [Credit Saison (non-consolidated)] Operating revenues Balance FY 2006 (billion yen) End of September, 2007 (billion yen) Operating Balance: revenues: 600.1 billion yen 700 118.3 billion yen FY201 FY2013 2013 140 （Plan） Plan） 600 Balance: 224 billion yen 120 Ope
Slide 13: Trends in interest repayment claims
6-① Trends in interest repayment claims The interest repayment claims are in the downward trend. Monthly average number 7,000 5,900 6,000 4,900 5,100 4,700 5,000 4,400 4,000 3,100 3,000 2,500 3,200 3,200 1,800 2,000 2,500 2,700 2,300 1,000 1,600 900 1,300 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 Trends
Slide 14: Trends in delinquency of over 90 days
② Trends in delinquency of over 90 days 6-② Enhanced risk control and reduction of interest repayment claims has made progress the soundness of loans Delinquency of over 90 days Delinquency of over 90 days （Consolidated） (Non-Consolidated) 6% 5.39% 5.41% 6% 5% 5% 4.12% 3.93% Cash Advance 3.54% 3.40%
Slide 15: Credit cost/Provision for loss on interest repayment
6-③ Credit cost/Provision for loss on interest repayment As the credit quality improves, the credit cost decreases. ■ Credit cost results and estimate （¥ billion） ） FY2013 Factors of credit cost reduction FY2012 （Estimate） ） ・Proper screening Difference Difference ・Strengthen collection ・Reduction o
Slide 16: Financial Indices
7. Financial Indices Consolidated Non-Consolidated Difference Difference Shareholders’ 391.4 ＋38.7 349.2 ＋26.7 Equity Total Assets 2,141.8 (14.1) 2,051.9 (7.5) Shareholders’ Equity Ratio 18.3% ＋1.9% 17.0% ＋2.3% ※1 ROE 8.6% ＋2.0% 7.4% (0.3%) ROA ※2 2.5% ＋0.7% 2.0% ±0% ※1 ROE is calculated to assume t
Slide 17: Dividends
8. Dividends FY2012 FY2013 （Plan） Dividend per ¥30 ¥30 share Total cash ¥5.5 billion ¥5.5 billion dividend Payout ratio (Consolidated) 16.8％ 17.2％ Payout ratio (Non-Consolidated) 22.8％ 22.8％ 15
Slide 18: Reference (4) Fund Structure Changes in interest-bearing debt
Reference (4) Fund Structure Changes in interest-bearing debt（Non-Consolidated）） Average Funding 1.4 1% （Billion） 1 .42% 1 .43% 1 .33% 1.29% 2, 000 1, 748 1, 645 1, 572 270 1, 365 1, 334 1, 500 235 255 160 133 262 110 220 260 273 208 32 1, 000 106 742 15 500 1 ,0 5 6 1 ,0 0 4 999 1 ,0 0 7 985 0 ’ ０８
Slide 19: Management Vision for Fiscal 2013
Ⅱ． Management Vision for Fiscal 2013 Through “collaboration management which utilizes strategic advantages”, 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 issuer on a co
Slide 20: Strengthen the ability to convey information by pursuing innovation
② Strengthen the ability to convey information by “pursuing innovation” which breaks conventional boundaries ・ Each division (each related company) thoroughly pursues the “creation of popularity, autonomy and superiority” for its own functions and services. ・ As more and more of our competitors are
Slide 21: Management Strategy for Fiscal 2013
Ⅲ. Management Strategy for Fiscal 2013－ －Shift to active advance investment １． Asia strategy focusing on ASEAN The potential of the global economy will shift to “Asia” in the 21st century. There is a high possibility that Asia will form a triumvirate together with “North/South America” and the “Euro
Slide 22: Life Assist Points, Collaboration Management, Management Reform
４． ３． Implementation of Life Assist Points Consumer spending composes 60% of the GDP. Cash is the payment method for 56% of such transactions. We will implement a “Life Assist Point system” and seek to amend laws and regulations surrounding the industry. ５． Pursuit of collaboration management There
Slide 23: Asia strategy focusing on ASEAN
① Asia strategy focusing on ASEAN 1-① Trends in transaction volume by global area Changes in transaction volume by area FY2011 transaction volume by area 60% N/S America Other 50% 6.6% 40% Europe N/S America 30% 34.4% Asia-Pacific 20% Asia-Pacific 37.2% 10% Other Europe 0% 21.8% 2000 01 02 03 04 05
Slide 24: Entry into retail finance through alliances in Asia
② 1-② Asia strategy focusing on ASEAN Entry into the retail finance business through alliances with local national corporations and major domestic online companies Kun min Chin Taipei g a Nanning Guangzhou China-Vietnam Taiwan North-South Economic Corridor Economic Hong Kong Myanmar Hanoi Corridor H
Slide 25: Establish SAISON-AMEX as a strategic advantage
① Establish SAISON-AMEX as a strategic advantage 2-① Forecast for U.S. credit card market ・The U.S. is an advanced nation in terms of cashless transactions. In 2016, the share of credit cards for consumer spending will reach 34% and the share for cash and checks will fall greatly. ・Looking at the br
Slide 26: Establish SAISON-AMEX as a strategic advantage: acquisition channels
2-② Establish SAISON-AMEX as a strategic advantage Enhance acquisition channels expected to have high usage ■ Enhance promotion system for AMEX cards with high usage and high revenue ・Develop new channels～Develop external offices Full-scale entry into trading companies and other corporations/fields
Slide 27: Reference (5) Saison American Express Card PLATINUM
Reference(5) Saison American Express® Card Eikyufumetsu Points （¥1,000＝ 1,000＝1Point／ 1Point／Indefinite period） period） ： Overseas is twicedouble ／ domestic is one and a half PLATINUM service： correspond to 24hours・ Concierge service： 24hours・365day Priority pass : free registration (usual annual fe
Slide 28: Invigorate consumer spending
3-① Invigorate consumer spending Invigorate regions, improve card service and contribute to the ssales ales of member corporations ■ Invigoration of areas～ Promote card usage/invigorate towns 2012 Aug. to Sept. Ikebukuro Dec. Sapporo/Hakata 2013 Apr. to May Shibuya/Sendai Save money when shopping by
Slide 29: Invigorate consumer spending: Expand net business
3-② Invigorate consumer spending ｰ Expand net business Establish an Eikyufumetsu points economic sphere for net business - Improve user royalties with thorough use of Eikyufumetsu points - ■ 2 founding of Eikyufumetsu.com nd ・ Shift from shop-centered site to product-centered site ・ Strengthen sales
Slide 30: Reference (6) Eikyufumetsu.com transaction volume / Internet members
Reference(6) Eikyufumetsu.com transaction volume / Internet members Transition （¥ One hundred million） (ten thousand people) April 2011 July 2012 Eikyufumets Plus Conducted TV-CM （Toolbar）Start 140 Transaction volume 900 Internet members September 2010 Also open to non-membership 800 120 card “Eikyu
Slide 31: Invigorate consumer spending: Overtake cash
③ 3-③ Invigorate consumer spending ｰ Overtake cash spending Comparison of share for payment service methods in consumer spen ding in Japan and the U.S. ・“Cash” composes 56% of 278 trillion yen in private final consumption expenditures. ・“Credit cards” account for only about 34 trillion yen or 12.1％.
Slide 32: Invigorate consumer spending: Use of smartphones
④ Invigorate consumer spending ｰ Use of smartphones 3-④ Use smartphone and the internet to overtake the cash market ■ Entry into payment infrastructure business using smartphones and tablets ・Spread the smartphone payment service terminal “Coiney” ⇒Develop the small-amount payment service market for
Slide 33: Life Assist Point system
3-⑤ Invigorate consumer spending － Life Assist Point system [Goal] By using credit cards to create a new expenditure framework, we seek to raise individual consumption which composes half of GDP, raise the economic growth rate, increase consumer prices and wages, stop deflation and lower the unemplo
Slide 34: Life Assist Points (forecasted effects)
⑥ Invigorate consumer spending－Life Assist Points (forecasted effects) 3-⑥ 【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 stor
Slide 35: Collaborative Management: Lease and Rental Business
3-⑦ Collaborative Management ～ Lease and Rental Business Taking action to achieve transaction volume of 200 billion yen (mid-term target) ■ Further strengthening of sales ability ・ According to characteristics of stores, strengthening of an effective and detailed sales approach ■ Incorporate market
Slide 36: Collaborative Management: Credit Guarantee Business
3-⑧ Collaborative Management ～ Credit Guarantee Business Accumulate a high-quality guarantee balance by creating a close relationship with partners ■ Accumulate balance with existing partners Balance (100 million yen) Number of partners ・Free loans used as business capital, 2,500 600 triple screenin
Slide 37: Collaborative Management: Finance Sales
3-⑨ Collaborative Management ～ Finance Sales Active promotion of loan business utilizing the Saison brand ■ Seek No. 1 share in the industry, strengthen sales for Flat 35 ・ Expand alliances by utilizing a home loan package consisting of “Flat 35 and Flat 35 Plus”. ・ Expand sales channels such as dea
Slide 38: Management reform: Personnel strategy
4-① Management reform to realize innovation ～ Personnel strategy Seek to become the “No. 1 corporation for achievement by women” and “No. 1 corporation for invigoration of personnel.” Shift to “21st century management” in which intellectual sensitivity is an important key. ■ Develop innovative leade
Slide 39: Reference (7) Female managers appointment status
Reference(7) Female managers appointment status of Credit Saison ■ Sex, age-specific distribution of the employee Female Male ～29s 86.1% 13.9% The woman ratio 30～39s 75.5% 24.5% of the employee 40～49s 74.8% 25.2% 78.0％ 50s～ 74.5% 25.5% Total 78.0% 22.0% 0% 20% 40% 60% 80% 100% ■ Sex, age-specific di
Slide 40: Changes in domestic credit card industry
① Changes in domestic credit card industry 5-① 2000～01 2002～03 2004～05 2006～07 2008～09 2010～12 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 Contro
Slide 41: Restructuring of the Domestic Credit Card Industry
②Restructuring of the Domestic Credit Card Industry 5-② 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 Financ
Slide 42: Domestic Market Share (Shopping Transaction Volume)
③ Domestic Market Share (Shopping Transaction Volume) 5-③ ■ Card shopping transaction volume (issuer base) 【2011 fiscal year】 】 Seven Card Service 1.5％ 1.5％ Regional banks Our Group Aplus 1.7％ 1.7％ FC/BC 17.2％ 17.2％ Other Epos Card 1.7％ 1.7％ 6.5％ 6.5％ Our company (non- (non-consolidated)10.1％ consol
Slide 43: Social Contribution Through Activities to Protect the Natural Environment
Ⅳ．Social Contribution Through Activities to Protect the Natural Environment ○ No. of days open: FY2012: 166 → FY2013: 170 (increase of 4 days YOY *Newly established “Supporter Thanks Day”) ○ No. of visitors: FY2012: 28,890 → FY2013: 32,000 (110.7% of the last year) This year, the 4th year of operati