Credit Saison Co., Ltd. · TSE:8253
Credit Saison — FY2010 2Q Earnings Presentation
32 slides from Credit Saison's earnings presentation, Nov 10, 2010
Slide 1: FY2010 2nd Quarter Management Report
FY2010 2nd Quarter Management Report 2010.11.10
Slide 2: Agenda
AGENDA ◆ FY2010 2nd Quarter Business Highlights ◆ FY2010 2nd Quarter Financial Report ◆ Business Strategy ◆ Current State of the Domestic Card Market (Reference Material) This report contains forward-looking statements that reflect our plans and expectation. These forward-looking statements are not
Slide 3: Main Topics of the First Half of 2010 Fiscal Year
Main Topics of the First Half of 2010 Fiscal Year ◇ Start of management of Akagi Nature Park (April) ★ Second donation from YM Saison Card to regions (May) ◇ Announcement of strengthening of partnership ties with American Express (June) ◇ Full enforcement of Money Lending Business Control and Regula
Slide 4: FY2010 2nd Quarter Financial Report
FY2010 2nd Quarter Financial Report 1. Financial Results 2. Results by Business Segment 3. Contributions by Consolidated Companies 4. Main Indices (Non-Consolidated) 5. Effects of the Full-scale Enforcement of Money Lending Business Law / Credit Risk 7. Financial Indices 8. Revision of Full Year Fin
Slide 5: 1. Operating Results
1. Operating Results (¥ billion) FY2009 FY2010 FY2010 nd YoY (%) nd YoY (%) YoY (%) 2 Quarter 2 Quarter (Estimate) Operating Revenues 156.7 91.5 145.2 92.7 285.0 92.9 Consolidated Ordinary Income 19.1 66.7 17.6 92.0 24.5 62.6 Quarter Net Income 8.6 55.4 9.9 115.1 12.0 64.2 Earnings per Share (¥) 47.
Slide 6: 2. Results by Business Segment
2.Results by Business Segment (¥ billion) Operating Revenues Operating Income FY2009 FY2010 FY2009 FY2010 YoY (%) YoY (%) 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter Credit Service 126.7 118.0 93.2 12.3 6.9 56.3 Finance 15.0 15.0 98.8 3.2 5.8 181.1 Real Estate- related 8.8 5.8 65.8 1.4 (0.1) － E
Slide 7: 3. Contribution to Consolidated Results
3.Contribution to Consolidated Results Ordinary Ordinary income: income: Difference Difference between between Non- Non-consolidated Consolidated Difference consolidated consolidated and and non- non -consolidated figures non-consolidated figures Ordinary ¥13.1billion ¥17.6billion ¥4.5 billion incom
Slide 8: (Reference) Progress of Atrium Reorganization Plan
(Reference) Progress of Atrium Reorganization Plan The plan of reconstruction of Atrium is progressing along as planned ・Reduction of assets is advancing favorably through sales of mainly small and medium size housing ・The results of servicing are surpassing the expectations owing to reconstruction
Slide 9: 4. Main Indicators (Non-consolidated)
4. Main Indicators (Non-consolidated) FY2009 FY2010 FY2010 2nd Quarter YoY (%) 2nd Quarter YoY (%) (Estimate) YoY (%) New Applications (millions) 1.56 115.6 1.40 89.7 3.00 98.4 New Card Issued (millions) 1.31 106.0 1.11 85.1 2.50 96.5 Total Cardholders 27.96 28.38 28.7 (millions) 101.6 100.3 101.5 (
Slide 10: (Reference) Share of Cards
（Reference）Share of Cards The transaction volume per card for premium cards is 5 times that of the other cards. 【Share of Total Cardholders】 【Share of Shopping Transaction Volume】 Premium,5.0% Saison Saison MMC, Proper, Proper, 9.5% 16.2% Premium,19.6% 17.8% LABI, 7.4% Seibu, Sogo, MMC, Seibu, Sogo,
Slide 11: 5(1) Effects of Full Enforcement of Money Lending Business Law
5(1) Effects of Full Enforcement of Money Lending Business Law Effects of full-scale enforcement of Money Lending Business Law could be larger by market shrink and total lending restriction ■ Revision of estimate of cash advance transaction volume, balance, and revenue decrease due to market reducti
Slide 12: 5(2) Forecast for claims handled by lawyers
5(2) Forecast for claims handled by lawyers Number of cases of the first half calmed down There was an increase in the latter half of the year influenced by total lending restriction and applications and dropped to about 10% from the previous for applicability of the Corporate Reorganization Act yea
Slide 13: 5(3) Credit cost/Provision for loss on interest repayment
5(3) Credit cost/Provision for loss on interest repayment Reduced credit cost total., keeping the level of the provision for loss on interest repayment ■Credit cost results and estimate (Unit: billion yen) Full Year Estimate 2nd Quarter Initial Revised Difference Estimate Estimate Credit Cost 33.1 6
Slide 14: 6. Financial Indices
6. Financial Indices (¥ billion) Consolidated Non-consolidated change from change from end of FY2009 end of FY2009 Shareholders’ Equity 339.7 +0.7 316.8 (2.8) Total Assets 2,321.9 (52.1) 2,155.2 (45.1) Shareholders’ Equity Ratio 14.6% +0.3% 14.7% +0.2% CORPORATE STRATEGY ２０１０ CREDIT SAISON CO., LTD.
Slide 15: (Reference) Fund Structure
(Reference) Fund Structure (Unit: billion yen) 【Consolidated】 【Non-consolidated】 Total Balance: Total Balance: 1,751.8 1,632.9 Corporate bonds Corporate 246.1 bonds CP 245.0 170.0 CP Debts 170.0 Liquidation of 1,103.2 Debts receivables Liquidation of 985.3 232.5 receivables 232.5 Long Term Ratio：74%
Slide 16: 7. Revision of full year financial estimate
7.Revision of full year financial estimate Initial Estimate New Estimate Difference Reasons for the revision （Published on （Ｂ） （Ｂ－Ａ） May 14）（Ａ） Operating 288 285 (3) ・Cash advance Consolidated Revenues revenues decreased Ordinary Income 21 24.5 ＋3.5 due to restriction of total lending ・Risk asset co
Slide 17: Business Strategy
Business Strategy Ⅰ． Business Strategy of our company Ⅱ． Priority Policies, FY2010 Second Half CORPORATE STRATEGY ２０１０ CREDIT SAISON CO., LTD. 15
Slide 18: Competitive advantages and characteristics of our company
Competitive advantages and characteristics of our company (1) Customer base of 35 million people Creditability with 35 million people with two brands of SAISON and UC including agency services for joint venture companies. A customer base with highly valuable operation performance, attributes, areas,
Slide 19: Credit Saison Business Strategy
Ⅰ. Credit Saison Business Strategy ■Credit card business Prior investments aiming at medium- and long-term profit increases, such as strengthening of membership base and transaction volume ・Stable expansion and development of cards based on business sites ・Implementation of measures aiming at expans
Slide 20: Achievement of the Structural Reform and of the Innovations
Achievement of the Structural Reform and of the Innovations (1) Branch Network (1) Business with corporations (corporate cards, lease and rental) (2) Agent functions (cultivation of affiliated stores) (3) Area marketing (expansion in allied shop numbers) (2) Saison Counters (1) The partners are give
Slide 21: Competitive advantages; Shift into multi-financial business
(6) Competitive (1) New Saison American Express Card advantages (2) Wal-Mart Card Saison (3) Establishment of joint venture company with 7&I group (7) Shift into multi (1) Reform and expansion of credit guarantee business financial business (2) Innovation of mortgage-backed lending business/ flat 35
Slide 22: Action Plans for the second half of 2010
Ⅱ. Action Plans for the second half of 2010 Expansion and development of cards and shopping transaction volume ■Stable expansion and development of the number of cards (3 million) ・Selection of the products for expansion and strengthening according to profitability of each card ・Strengthening of exp
Slide 23: Affiliation strategy (1) Strengthening of affiliation with American Express
Affiliation strategy (1) Strengthening of affiliation with American Express (started from July, 2010) ■Strengthening of status cards (with annual fees) ・Modification of card design Issue of four types of cards using the image of centurion (Commander of a company of 100 soldiers in the Roman Empire)
Slide 24: Saison American Express Card Main services
Saison American Express® Card 〖Main services〗 ★・・・NEW Permanently usable points (1,000 yen = one point / indefinite term): Saison Platinum 2 times in foreign countries / 1.5 times in Japan American Express® Card Concierge service: operating 24 hours 365 days a year Priority pass: free registration (
Slide 25: Affiliation strategy (2) Comprehensive business alliance with Seven & i
Affiliation strategy (2) “Comprehensive business alliance with Seven & i Financial Group ■Conclusion of a comprehensive business alliance agreement (September 10, 2010) ・Acquirement of joint venture status for the affiliate card issuer enterprise of our company, SOGO, and Seibu ①Establishment on Sep
Slide 26: Affiliation strategy (3) Strengthening of affiliation with Wal-Mart
Affiliation strategy (3) Strengthening of affiliation with Wal-Mart (starting from September, 2010) ■The objective of issuing Wal-Mart Card Saison ・Reexamination of affiliation strategy ①Contribution to customer strategy of Wal-Mart Japan and Seiyu Improvement in the number of new customers and the
Slide 27: Net strategy: lifting restrictions on permanent points use
Net strategy: lifting the restrictions regarding services to allow use of permanent points to members other than of Saison and UC (starting from September, 2010) ■Allowing use of permanently usable points through use of eikyufumetsu.com (net shopping mall) ・ Anyone over 16 can now use eikyufumetsu.c
Slide 28: [Reference] Schematic of Internet Business
[Reference] Schematic of Internet Business Using Points Appropriation to Payment of Shopping - Limited to Net members Expansion of Profits Internet cardholders Cost Reduction （ Net Answer, @ U-Net ） ・Affiliated profit ・Web billing ・Profit from advertising Profiling ・WEB News ・Profit from printing WE
Slide 29: Cost control: 7 billion yen cost reduction
Cost control: "7 billion yen cost reduction through structural reform of the enterprise" ■Billing cost (▲ reduction of ¥ 2 billion ) ・Web details expansion, promotion of postcard-type detailed statements, 25g weight saving for letters, etc. ■Expansion related cost (▲ reduction of ¥ 1.2 billion) ・Sel
Slide 30: Lease & rental and loan enterprise expansion
Lease & rental enterprise "Massive expansion of rental business" ■Expansion of rental business ・Expansion into the industry of home electronics rental (with its future demand for digital terrestrial broadcasting) - an industry we have not yet tried ourselves in (medical facilities, homes for the age
Slide 31: Reorganization of the Domestic Credit Card Industry
(5) Reorganization of the Domestic Credit Card Industry Sumitomo Mitsui FG Mizuho Credit Saison Resona FG HD Mitsui Sumitomo Card Cedyna Orico Resona Shizugin Card Idemitsu Takashimaya Yamada SAISON Japan Post Bank Credit credit Financial Card Promise ORIX Sanyo Credit Shinpan YM Aeon Daiwa House Se
Slide 32: Domestic market share (shopping transaction volume)
(Reference) Domestic market share (shopping transaction volume) ■ Card shopping transaction volume (issuer base) [2009 fiscal year] FC and BC of regional banks 5.7％ Our company G APLUS 16.7％ 1.5％ Other Our company Rakuten KC 2.2％ 8.4％ Non-consolidated 12.7％ Joint Venture Card companies 4.0％ Life 2.7