Slide 1: Financial Results of FY2018
Financial Results of FY2018 2019. 5. 16 CREDIT SAISON CO., LTD.
Slide 2: AGENDA
AGENDA Ⅰ． FY 2018 Highlights Ⅱ． FY 2018 Financial Report Ⅲ． Mid-term Management Plan Ⅳ． ESG-related Higashi Ikebukuro 52 Formed by female employees of Credit Saison (the “Company”) and its affiliates, which the head office is located on the 52nd floor of the Sunshine 60 Building, Higashi Ikebukuro.
Slide 3: I. FY 2018 Highlights
Ⅰ. FY 2018 Highlights Payment Finance Settlement Business Finance Business ■ Pioneering efforts in cardless payment schemes ■ Providing support to build the ideal home Introduced a QR code payment service "Pay by App" Began providing “Saison Reform Loan,” for Mitsui Shopping Park Card Saison meeting
Slide 4: Financial Results (JGAAP)
II. FY2018 Financial Report 1-(1). Financial Results (JGAAP) ＜ JGAAP ＞ (Billion yen) FY2017 YoY (%) FY2018 YoY (%) Consolidated Operating revenue 292.1 104.7 304.8 104.3 Ordinary income 56.7 106.9 54.1 95.5 Quarter net income 38.3 90.7 34.0 88.7 Consolidated Operating revenue 249.8 104.7 259.0 103.7
Slide 5: Financial Results (IFRS) / Differences between JGAAP and IFRS
1-(2). Financial Results (IFRS / Differences between JGAAP and IFRS) ＜ IFRS ＞ (Billion yen) FY2017 YoY (%) FY2018 YoY (%) Consolidated Net revenue 293.2 - 304.8 104.0 Business Income 57.3 - 52.2 91.1 Net Income 38.4 - 30.5 79.4 ＜ FY2018 Differences between JGAAP and IFRS ＞ JGAAP IFRS Differences Mai
Slide 6: Results by Business Segment (IFRS)
2. Results by Business Segment (IFRS) Net revenue Business Income (Billion yen) FY2017 FY2018 YoY (%) FY2017 FY2018 YoY (%) Credit Service 222.4 228.5 102.7 27.9 16.9 60.6 Lease 12.8 12.5 97.7 4.4 5.7 128.8 Finance 35.5 39.2 110.4 16.6 19.2 115.3 Real estate-related 15.4 18.1 117.0 6.1 8.3 134.7 Ent
Slide 7: Contribution by Consolidated Companies
3. Contribution by Consolidated Companies Non-Consolidated Consolidated Difference Contribution by consolidated companies Ordinary Income Business Income ¥39.6 billion ¥52.2 billion ¥12.6 billion Income Income Major consolidated subsidiaries Major equity method affiliates contribution contribution A
Slide 8: Main Indices (Non-consolidated)
4. Main Indices (Non-consolidated) FY2017 FY2018 FY2019(Target) YoY (%) YoY (%) YoY (%) New Card Issued 2.44 93.4 2.11 86.5 2.00 94.6 (millions) Total Cardholders 26.95 101.8 26.79 99.4 26.97 100.7 (millions) Active Cardholders 14.98 101.3 14.90 99.4 14.96 100.4 (millions) Transaction Volume 4,931.1
Slide 9: Credit Risk / Credit Cost
5. Credit Risk / Credit Cost ■Trends in Credit Risk 6% 6% Delinquency over 90 days Delinquency over 90 days 5% (consolidated) 5% (non-consolidated) 4% 4% Cash advance 3% 3% 2.40% 2.45% 2.51% 2.65% 2.18% Credit card 1.48% 1.56% 1.58% 1.69% 1.64% 1.93% 2% 2% 1.32% 1.46% 1.58% 1.85% Shopping 1% 1.71% 1
Slide 10: Interest Repayment Claims
6. Interest Repayment Claims No. of new interest repayment No additional provision is Current provision is at a planned for FY2019. The claims shows 15% decrease sufficient level. future trend is yet to be from the previous fiscal years. monitored. Trend in new interest repayment claims Trend of
Slide 11: Trends in Management Indicators
7. Trends 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 12: Trends in dividend per share & Payout ratio
8. Trends in dividend per share & Payout ratio Dividend policy: Maintaining stable payout Despite facing management challenges, the Company has never cut its dividends. 80 (Unit: yen) Full migration of the Associated Core System 58.3% (2nd release of the system) 60% Payout ratio 1st release of the 5
Slide 13: Fund Structure and trends in interest-bearing debt
(Reference) Fund Structure and trends in interest-bearing debt (non-consolidated) 3 years consecutively Long-term ratio： 66％ Rating: R&I A+ Fixed ratio： 60％ First in a credit card company - 20 years super long-term bond Average Funding Bond Bondissued issued in FY 2018 in FY2018 0.98% 0.83% Apr. Vol
Slide 14: III. New Medium-Term Management Plan (FY2019 - FY2021)
III. New Medium-Term Management Plan (FY2019 - FY2021) ◆ New Medium-Term Management Vision ◆ Medium-Term Management Plan - Numerical Targets - ◆ Recap of the Previous Medium-Term Management Plan and Vision for the New Medium-Term Management Plan ◆ Key Points of the New Medium-Term Management Plan 12
Slide 15: New Medium-Term Management Vision: Neo Finance Company in Asia
New Medium-Term Management Vision: Neo Finance Company in Asia Mission Statement A Finance Company Advancing with Customers for 50 Years: ~ Providing Peace of Mind and Discovering Potentials in Money ~ Providing house card functions integrated with affiliated partners’ customers strategies, and expa
Slide 16: Medium-Term Management Plan - Numerical Targets
Medium-Term Management Plan - Numerical Targets - In FY2019, income is expected to drop as a result of an increase in costs associated with systems and costs pertaining to the update of IC cards in advance, and also due to the absence of other special factors which occurred during FY2018 (rationaliz
Slide 17: Recap of Previous Plan and Vision for New Plan
Recap of the Previous Medium-Term Management Plan and Vision for the New Medium-Term Management Plan < Previous Plan 2016-2018 > < New Plan 2019-2021 > 3 years spent to complete construction of the 3 years towards transformation and renewed growth foundations towards our renewed growth strategies ut
Slide 18: Key Points of the New Medium-Term Management Plan
Key Points of the New Medium-Term Management Plan Credit Services Segment Growth strategies and structural reform I Credit Services Segment in the payment business Lease & Finance Segment 1. Expansion of shopping transaction volumes < BtoC field> Income from consolidated contributions, etc. 2. Expan
Slide 19: Expansion of shopping transaction volumes (BtoC)
Growth Strategies and Structural Reform Payment Solution I Settlement Business Solution Business in the Payment Business 1. Expansion of shopping transaction volumes < BtoC field> (1) Strengthen customer base through the (Examples) expansion of new partnership networks • New partnerships, business c
Slide 20: Expansion of shopping transaction volumes (BtoC)
Growth Strategies and Structural Reform Payment Solution I Settlement Business Solution Business in the Payment Business 1. Expansion of shopping transaction volumes <BtoC field> (3) Transition to smartphone-based card services ＜ a. Instant sign-up/usage via smartphone (cardless payment)＞ ＜ b. Easie
Slide 21: Expansion of shopping transaction volumes (BtoB)
Growth Strategies and Structural Reform Payment Solution I Settlement Business Solution Business in the Payment Business 2. Expansion of shopping transaction volumes <BtoB field> (1) Streamlining of cashless methods in settlement (2) Expansion to SME* market between companies ・Expansion of sole prop
Slide 22: Shopping transaction volume target for FY2021
Growth Strategies and Structural Reform Payment Solution I Settlement Business Solution Business in the Payment Business 1. Expansion of shopping transaction volumes <BtoC field> 2. Expansion of shopping transaction volumes <BtoB field> Stimulate new growth in shopping transaction volumes through in
Slide 23: Expansion of cash advance business
Growth Strategies and Structural Reform Payment Solution I Settlement Business Solution Business in the Payment Business 3. Expansion of cash advance business (1) Enhancing merchantability and convenience in line with customer needs a. Flexible settings for cash advance interest rates b. Online appl
Slide 24: Creation of new businesses and enhancement of digital marketing
Growth Strategies and Structural Reform Investment I Asset Management Business in the Payment Business 4. Creation of new businesses and enhancement of digital marketing (1) Stepping up efforts in asset management business I. Development of asset Creation of asset management services used by over a
Slide 25: Improving members' QoL through digital x service
Growth Strategies and Structural Reform Digital Marketing I Digital Marketing Business in the Payment Business 4. Creation of new businesses and enhancement of digital marketing (2) Improving members’ QoL through the evolution of “digital” × “service” Quality of Life Improving members’ quality of li
Slide 26: Strengthening relationships with partners and new alliances
Finance II Further expansion of Finance Business as a non-bank Finance Business 1. Strengthening of relationships with partners and expansion of new alliances Speed up the process from consultation to Flat 35 contract procedures through establishing one- 【 Finance operating assets 】 stop managemen
Slide 27: Expanding the Earnings Base of Global Business
III Expanding the Earnings Base of Global Business Global Asia Business with a View to the Future 1. Transition from “sowing stage” to “harvesting stage” in countries where we have operations Providing consumption & operating fund through collaboration with local companies to Contribute to regional
Slide 28: Expanding the Earnings Base of Global Business: examples by country
III Expanding the Earnings Base of Global Business Global Asia Business with a View to the Future 1. Transition from “sowing stage” to “harvesting stage” in countries where we have operations (Examples of businesses in each country) Vietnam HD SAISON Finance Company • Joint venture established in Ma
Slide 29: Basic Agreement on Dissolution of Business Partnership with Mizuho Bank
Conclusion of a Basic Agreement Concerning Factors Including Constructive Dissolution of the Comprehensive Business Partnership with Mizuho Bank (1) Mizuho Mileage Club Card Saison Issuance will be continued Main policy (2) UC brand credit cards agreed upon (3) Qubitous Co., Ltd. Business scope rela
Slide 30: IV. ESG-related initiatives
IV. ESG-related initiatives Doing what we can as a company to contribute to the development of society and solution of issues through our business activities, and create a more convenient and fulfilling sustainable society Initiatives Related SDGs • Promoting environmental preservation activities by
Slide 31: 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 (FY 2017) U.S.A. (FY2016 → FY2021 forecast) ※ (YoY) ※(share forecast of FY2021) Prepaid card, other Pay-Easy Convenience store 3.9％ (FY 2021：3.5％) 5.9％(＋0.5p) payment Check, 8.4％ 3.9％(＋0.4p) (FY 2021：2.5％) Cash
Slide 32: Domestic Market Share (Shopping Transaction Volume)
(Reference) Domestic Market Share (Shopping Transaction Volume) ■ Card shopping transaction volume (issuer base) 【FY 2017】 Regional Banks FC/BC, Aplus 1.2％ Others Credit Saison Group 11.6％ CS (non- 14.0％ Seven Card Service 1.4％ consolidated) MI Card 2.0％ 8.8％ Affiliated Companies Epos Card 3.0％ 5.2％