Slide 1: Management Report
Management Report May 20 2004 Credit Saison Co., Ltd In the following brief, the figures described in the business performance target or the like are projected data based on conclusions and suppositions according to the information currently available to us. The actual results of business performanc
Slide 2: Highlights FY2003
Financial Results for FY2003 CORPORATE STRATEGY CREDIT SAISON CO., LTD. Highlights FY2003 ¾Basic agreement reached between Takashimaya and Credit Saison for a strategic tie-up of their card business Apr. 2004 ¾Tie-up with Seibu Dome, payment by credit card for beer bought from refreshment vendors in
Slide 3: Indices FY2003 (1) and (2)
Indices FY2003 - (1) The figures in parentheses represent the difference compared with the previous year. Results for FY2003 Target for FY2004 (1)New applications 2.11 million (85%) 2.0 million (2)New cards issued 1.86 million (82%) 1.8 million (3)Total number of 15.87 million (0.97 million) 16.7 mi
Slide 4: New applications, new cards issued, and cardmembers
(1) New applications, and (2) New cards issued Improving the quality of the service by maintaining 2 million newly developed cards. Unit: million 3.0 2.8 New applications New cards issued 2.5 2.5 2.5 2.3 2.1 2.0 2.0 2.0 1.9 1.8 1.7 1.5 1.0 0.5 0 CORPORATE STRATEGY CREDIT SAISON CO., LTD. 4 (3) Total
Slide 5: Card transaction volume and credit loan outstanding
(5) Card transaction volume Aiming at a double digit growth of card cash advance transactions as well as card shopping transactions together with continuing tightened credit management. Yen in billions 2,643 Card cash advance 2,409 2,343 Card cash 2,500 advance 2,122 496 548 93% 1,856 534 prev of 2,
Slide 6: Uncollectible receivables, delinquency and write-offs
Progress in relation to the cost of uncollectible receivables Although the absolute amount of uncollectible receivables has increased according to the rise in the ratio of the allowance for doubtful accounts (results of the past 3 years), the pace of the increase is expected to decline. (+10%) Yen i
Slide 7: Operating revenues, ordinary income and net income
(7) Operating revenues, and (8) Ordinary income Ensuring increases in FY2004 as well, both in sales and profits through an increase in operating revenues through growth in the card transaction volume and complete cost control. Yen in billion 200 189.0 175.7 180 171.8 160 154.2 133.8 140 120 bill ion
Slide 8: Summary of Consolidated Results and Financial Summary
Summary of Consolidated Results Consolidated Consolidated Subsidiaries Subsidiaries (FY2003) (FY2003) Consolidated Results Results (1) Saison Fundex Loans and mortgage securities Projec- End of End of (2) Atrium Real estate tion in FY2002 FY2003 (3) Atrium Servicing Credit collection agent FY2004 (4
Slide 9: Management Strategy
Management Strategy CORPORATE STRATEGY CREDIT SAISON CO., LTD. CONTENTS I. Future Strategy II. Business Strategy III. Fund Procurement and Personnel Affairs Strategy CORPORATE STRATEGY CREDIT SAISON CO., LTD. 9
Slide 10: I. Future Strategy
I. Future Strategy [1] Reorganization of the credit card industry [2] Customer strategy [3] Tie-up strategy CORPORATE STRATEGY CREDIT SAISON CO., LTD. Ref. Composition of the shareholders Companies with a higher foreign stockholding ratio Trend in the composition of the shareholders of Credit Saison
Slide 11: Reorganization of the credit card industry: market share
Reorganization of the credit card industry: (1) Share in the US Trend in the share accounted for by the credit card industry for the top ten multipurpose credit cards according to their Comparison of the share of the balance in the US credit balance industry (estimated figures for FY2002) . % Bank o
Slide 12: Customer strategy
[2] Customer strategy: (1) Organizing important customers Acquired 27% of the department store network. Market share for department stores in FY2002 Seibu 7.1% Sogo 5.5% Takashimaya 11.6% Others Tenmaya 1.6% 50.6% Meitetsu Mitsukoshi1.0% 8.1% Isetan 5.3% Daimaru 5.2% Matsuakaya 4.0% CORPORATE STRATE
Slide 13: Tie-up strategy: new scheme and processing business
[3] Tie- Tie-up strategy: (1) Proposal for a new tie- tie-up scheme Building a stronger partnership by offering capital, personnel resources and know-how. <Current model> <New scheme> Partnership Card company Credit Clients Saison Tie-up card Franchisee Capital, Personnel resources, Know-how Clients
Slide 14: II Business Strategy
[3] Tie- Tie-up strategy: (2) Expansion of the processing business Improving the quality of the service through the construction of a new infrastructure center, and promoting cost reductions through complete streamlining. streamlining. Starting operations in spring 2005. High level ordinary profit r
Slide 15: Measures to improve profitability
[1] Measures to improve profitability: (1) Introduction of a newly newly designed card Breaking the barrier of house cards through a multipurpose card strategy that meets customer needs. Saison Card Tie- Tie-up card with company A Large clients Others * Seibu Department Stores, Seiyu, Parco Others S
Slide 16: Measures to improve continuity
[2] Measures to improve continuity: (1) Diffusion of consecutive payments by card Promotion of the diffusion of consecutive payments using cards by strengthening the cardholders’ motivation to make Saison Card their principal card through the spread of the permanent perdurable point system, and offe
Slide 17: Measures to improve safety: risk management
[3] Measures to improve safety: Handling risk management Credit Approval line Appropriateness Starting “HEARTS” Credit Tightening ratio Million yen Trend in the amount of damage caused • Raise limitation for good customers by the illegal use of credit cards Monitoring Limitation • Reduce limitation
Slide 18: Fund procurement and personnel affairs strategy
[1] Fund procurement strategy Addressing a variety of measures, including the liquidation of credit, and building a stable basis for fund procurement that meets the market environment. Composition of liabilities with interest Trend in the ratio of long-term loans to short-term loans ¥659.1 bil. ¥698