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Financial Results for Fiscal 2016 · Financial Results Digest Ordinary income: ¥121.6 billion (up...
Transcript of Financial Results for Fiscal 2016 · Financial Results Digest Ordinary income: ¥121.6 billion (up...
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 1
Financial Results for Fiscal 2016
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 2
Number of ATMs and Daily Average Transactions per ATM
ATM Usage and Income per Transaction
Credit Ratings/Dividends
Financial Results Digest
Income Statement (Consolidated)
Note: Earnings announcement data can be found on our website.
(http://www.sevenbank.co.jp/english/ir/library/presentation/)
Income Statement (Seven Bank, Ltd.)
Settlement and Account Business
Subsidiary in North America
Subsidiary in Indonesia/ Subsidiary in Japan
Daily Average Transactions per ATM versus Previous Year by Month
7
8
3
4
6
13
14
9
10
12
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 3
Financial Results Digest
Ordinary income: ¥121.6 billion (up ¥1.7 billion year-on-year)
Ordinary profit: ¥36.7 billion (down ¥0.4 billion year-on-year)
Net income: ¥25.1 billion (up ¥0.4 billion year-on-year)
・Domestic business: Weak growth in number of ATM transactions, but recent recovery trend
Achieved plan for financial services
・Overseas business: Smooth progress in preparing for installation of ATMs at
U.S. 7-Eleven stores
■ Annual dividends per share were ¥9.00 (interim: ¥4.25, period-end: ¥4.75),
an increase of ¥0.50 per share
FY16 Financial Results(Consolidated)
Planned increases in both ordinary income (¥130.8 billion) and ordinary profit (¥38.6 billion)
・ATM Platform Business: 820 million ATM transactions per year with steady growth in both quality and scale
・Settlement and account Business: ¥24.0 billion balance of personal loans at fiscal year-end;
1,150,000 international money transfer transactions per year
・Overseas Business: Start installing approximately 8,000 ATMs at U.S. 7-Eleven stores
■ Scheduled interim and period-end dividends of ¥4.75 per share each for total
annual dividends of ¥9.50 per share
FY17 Outlook(Consolidated)
Formulated a Medium-Term Management Plan for the Period Ending in FY19
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FY15FY16
FY17 Plan
Plan
(Feb. 2017)
Changes
from FY15
results
Full yearH1
Changes
from FY16
results
Changes
from FY16
H1 results
Ordinary income 119.9 122.3 121.6 1.7 130.8 9.2 62.7 1.5
Ordinary expenses 82.7 85.0 84.8 2.1 92.1 7.3 43.4 1.3
Ordinary profit 37.1 37.2 36.7 (0.4) 38.6 1.9 19.2 0.2
Net income attributable to owners of the parent 24.7 25.3 25.1 0.4 26.4 1.3 13.1 0.2
Notes:1. Amounts less than one hundred million yen have been truncated.2. Previous-year comparisons are based on the units used in these materials.3. Exchange rates on the consolidated income statement:
per USD 1FY15=¥121.10, FY16= ¥108.78, FY17 Plan= ¥110.00per IRD 100FY15= ¥0.905, FY16= ¥0.817, FY17 Plan= ¥0.900
Income Statement (Consolidated)
(Billion yen)
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成長のあゆみ 台数の増加
Seven Bank, Ltd.
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FY15FY16
FY17 Plan
Plan
Changes
from FY15
results
Full year H1Changes
from FY16
results
Changes
from FY16
H1 results
Ordinary income 110.4 113.8 113.1 2.7 117.0 3.9 58.5 1.7
ATM-related fee income 102.2 104.2 103.7 1.5 106.0 2.3 53.3 1.0
Ordinary expenses 71.4 74.3 74.1 2.7 76.0 1.9 37.9 1.2Interest expenses 1.2 1.0 0.9 (0.3) 0.8 (0.1) 0.3 (0.1)ATM placement feeexpenses 12.7 14.0 13.8 1.1 14.6 0.8 7.2 0.3
Outsourcing expenses 17.6 18.0 17.8 0.2 18.5 0.7 9.3 0.4Maintenance fees 3.9 3.8 4.0 0.1 4.2 0.2 2.1 0.1Depreciation andamortization 17.4 17.8 17.5 0.1 16.1 (1.4) 8.0 (0.6)
Ordinary profit 39.0 39.5 38.9 (0.1) 41.0 2.1 20.5 0.5
Extraordinary gain (loss) (0.1) (0.1) (0.1) 0.0 (0.1) 0.0 (0.0) 0.0Income taxes 12.8 12.1 11.8 (1.0) 12.5 0.7 6.3 0.2
Net income 26.1 27.2 26.8 0.7 28.3 1.5 14.2 0.4
EBITDA 56.4 57.3 56.5 0.1 57.1 0.6 28.6 0.0
No. of ATMs installed at end of term (units) 22,472 23,500 23,368 896 24,300 932 23,800 771
ATM-related fee income per
transaction (yen)133.6 133.0 133.1 (0.5) 132.3 (0.8) 132.3 (0.8)
Daily average transactions per ATM(transactions/ATM/day)
98.8 95.8 95.5 (3.3) 94.7 (0.8) 95.9 (1.1)
Total no. of transactions (millions) 782 800 796 14 820 24 412 11Note: EBITDA = Ordinary profit + Depreciation and amortization
Income Statement (Seven Bank, Ltd.)
(Billion yen)
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16,91418,142
19,335 20,415 21,238
24,300
1,2091,372
1,7212,057
2,130
111.1107.8
100.998.8
95.5 94.7
0
10
20
30
40
50
60
70
80
90
100
110
0
10,000
20,000
30,000
FY12 FY13 FY14 FY15 FY16 FY17 Plan
(ATMs)
21,056
18,123
Daily average transactions per ATM (Transactions/ATM/day)
Outside the 7&i Group
Inside the 7&i Group
Note: Daily average transactions per ATM for the period excludes balance inquiries, e-money charges, PIN changes and daily withdrawal limit changes.
19,514
22,472
Number of ATMs and Daily Average Transactions per ATM
23,368
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Daily Average Transactions per ATM versus Previous Year by Month
96.6%
95.9%
96.6%
96.0%
96.5%
97.2%
95.3%
96.4%
96.2%
95.5%
96.1%
96.8%
98.1%
98.7%
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
2015/4 5 6 7 8 9 10 11 12 2016/1 2 3 4 5 6 7 8 9 10 11 12 2017/1 2 3
Recovery
FY15 FY16
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638 673 679 712 724820
5962 64
70 71
130.3 131.2136.2 133.6 133.1 132.3
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
0
200
400
600
800
1,000
FY12 FY13 FY14 FY15 FY16 FY17 Plan
(Yen)(Million transactions)
Notes:
1. Total of transactions for the period excludes balance inquiries, e-money charges, PIN changes and daily withdrawal limit changes.
2. ATM-related fee income per transaction = ATM-related fee income / (Total of transactions – Total of transactions without ATM-related fee income (i.e. sales proceeds deposits)
3. In this report, securities, life insurance, credit card, consumer credit and consumer financing companies are all referred to as “non-banks.”
743698 736
Fee income per transaction(Yen)
Non-banks
Total number of transactions
for the period
Non-banks (%) 8.5% 8.5% 8.6% 8.9% 9.0%
782
ATM Usage and Income per Transaction
796
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189391
633816
9791,150
338
704
1,152
1,514
1,827
2,000
0
2000
0
600
1,200
FY12 FY13 FY14 FY15 FY16 FY17
Plan
International money
transfer services
Debit services
Personal loan services
Number of individual accounts and
balance of deposits
Settlement and Account Business
(Billion yen)
(Thousands of transactions)
Interest on loans (Million yen)
Fee income(Million yen)
No. of money transfer transactions
during the period
No. of accounts (Thousands of accounts)
(百万件)
FY16 FY17 Plan
Accounts(Thousands of accounts)
149 350
Number of transactions(Thousands of transactions)
1,160 9,000
143.9 158.9 190.4 212.4
245.2
107.3
153.1
180.6 177.3
151.6
410.0
1,066
1,214
1,405
1,562
1,690
1,790
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
0
250
500
FY12 FY13 FY14 FY15 FY16 FY17 Plan
(Billion yen)
Balance of time deposits
Balance of ordinary deposits
3.3 5.210.4
16.219.8
24.0
411613
1,157
2,091
2,704
3,300
0
1500
3000
0
15
30
FY12 FY13 FY14 FY15 FY16 FY17
Plan
Loan balance
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成長のあゆみ 台数の増加
Consolidated Subsidiaries
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FY15FY16
FY17 Plan
Plan(May 2016)
Changes
from FY15
resultsFull year H1
Changes
from FY16
results
Changes
from FY16
H1 results
Ordinary income 78.5 79.8 77.6 (0.9) 122.8 45.2 37.2 (1.7)
Ordinary expenses 80.6 82.0 84.2 3.6 130.6 46.4 43.1 2.2
Ordinary profit (2.0) (2.1) (6.6) (4.6) (7.8) (1.2) (5.9) (4.0)
Net income (1.5) (1.6) (4.3) (2.8) (5.0) (0.7) (3.7) (2.4)
EBITDA 4.4 5.0 0.2 (4.2) 3.5 3.3 (3.0) (4.5)
Number of ATMs (units) 6,625 6,700 6,227 (398) 12,640 6,413 4,500 (1,937)
FCTI
(Million US$)
・FY16
Decrease in sales due to falling short of planned number of ATM installations, etc., and increase in expenses including
ATM placement fees and interest expenses
・FY17 Plan
Installation of ATMs in U.S. 7-Eleven stores to begin in August, with completion scheduled for February 2018
Subsidiary in North America
Note: Number of ATMs installed as of March 31, 2017: 5,829 (4,762 directly owned, 1,067 owned by location where installed)
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 13
ATMi BBF
FY15 FY16
FY17 Plan
Full yearH1
Ordinary
income687 815 926 460
Ordinary
expenses646 833 894 440
Ordinary
profit (loss)40 (18) 32 20
Net income
(loss)29 (18) 20 13
(Million yen)
FY15 FY16
FY17 Plan
Full yearH1
Ordinary
income14 49 127 50
Ordinary
expenses62 131 224 100
Ordinary
profit (loss)(47) (82) (97) (50)
Net income
(loss)(38) (47) (72) (37)
(Million yen)
Notes:1. Exchange rate per IDR 100:
FY15 = ¥0.905, FY16 = ¥0.817, FY17 Plan = ¥0.9002. 127 ATMs installed as of March 31,. 2017
Subsidiaries in Indonesia and Japan
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3.25 3.50 3.75 4.00 4.25 4.75
3.504.00
4.254.50
4.754.75
41.4 42.0 41.0 40.942.7 42.8
0
20
40
0.00
2.00
4.00
6.00
8.00
10.00
FY12 FY13 FY14 FY15 FY16 FY17 Plan
(Yen)
Cash dividends and payout ratio
FY16: Annual dividends of ¥9.00 per share (Total dividends ¥10.7 billion)
FY17: Forecast annual dividends of ¥9.50 per share (Total dividends ¥11.3 billion)
Year-end dividend
Interim dividend
Payout ratio (%)
6.757.50
9.50
8.00
Dividend
8.50
S&P A+ (stable)
R&I AA
Credit ratings
Non-consolidated capital adequacy ratio (domestic standard; preliminary figure): 56.2%ROE (consolidated): 13.1%
Financial position
Credit Ratings/Dividends
9.00
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FY17-FY19Medium-Term Management Plan
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成長のあゆみ 台数の増加
Plan for Ordinary Income
Settlement and Account Business
Installation of ATMs at U.S. 7-Eleven Stores
Basic Policy for the Three-Year Period
Targets for the Three-Year Period (Consolidated)
Ordinary Income and Ordinary Profit
Group Financial Strategy
Envisioned Group Financial Strategy
Overseas Business
ATM Platform Business
Create New Styles of ATM Usage Capital Policy
Basic Policy for Shareholder Returns
20
21
17
18
19
22
28
29
24
25
26
30
31
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 17
Create new styles of ATM usage
ATM Platform Business
Provide financial services that meet the needs of the 22 million customers
who visit Seven & i Group stores each day
Settlement and account Business
Get U.S. operations on their way, establish a solid platform in Asia
Overseas Business
Achieve Growth in Our Main Business
as We Diversify Our Operations
Basic Policy for the Three-Year Period
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 18
¥121.6 billionOrdinary
income
FY16 Results FY19 Plan
Ordinary
profit ¥36.7 billion
¥161.6 billion
¥44.7 billion
ROE 13.1% 13% or higher
Targets for the Three-Year Period (Consolidated)
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-200
0
200
400
600
800
1,000
1,200
1,400
1,600
経常収益(セブン銀) 経常収益(子会社)
Ordinary Income and Ordinary Profit
121.6
105.5
83.983.6
47.9
Ordinary income
(Billion yen)
36.7
Ordinary profit
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17Plan
FY18Plan
FY19Plan
35.727.424.6
10.0
161.6
44.7
Seven Bank, Ltd.
Subsidiaries
Period of plan
Note: Consolidated results from FY12
160
140
120
100
80
60
40
20
-20
0
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Plan for Ordinary Income
121.6
161.6+15.0+5.0
(Billions yen)
Ordinary income/Ordinary profit
FY16 FY19 PlanATM Settlement
and AccountOverseas
Domestic Overseas
+20.0
Ordinary income +¥40.0 billion
Ordinary profit +¥8.0 billion
Platform
+20.0
36.7
44.7
Ordinary income
Ordinary profit
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 21
+¥15.0 billion in income over the three years from FY17 to FY19
Steady expansion of scale
Achieve a net increase of 3,000 ATMs over three
years+¥10.0
billion
+¥5.0
billion
ATM Platform Business
Further improvement in quality
Raise the utilization rate by improving the user environment, conducting area-based sales promotions, etc.
Create new styles of ATM usage
Add new services and partners with enhanced ATM functions such as smartphone compatibility
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 22
Start development of
Next-generation ATM
Existing partners
Financial Institutions
Banks, securities companies,
insurance companies, non-banks,
etc.
Partners in New Categories
・Fund transfers
・Receiving agents
・Settlement entities for
communications,
etc.
Create New Styles of ATM Usage (1)
New!Additional partners
+
New!
Direct connection
by dedicated lines
(ISO), CAFIS
Rela
y
Smartphone
compatibility
New!
Card
ATM platform
Further enhance both
quality and scale
+
Increase occasions
for use
Respond to
changes in
lifestyles
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 23
Meet
cust
om
er
need
s
・Input receipt number
・Confirm recipient
2. Input receipt number
1. Get receipt info
・Get receipt info
from business entity
3. Get cash
・Get cash
・Get receipt
Am
ou
nts
less
th
an
¥1,0
00
Create New Styles of ATM Usage (2)
Example: Cash receipt service
・Refunds (Mail-order returns, ticket
refunds, etc.)
・Prizes, campaigns
・Wages, remuneration
・Various benefit payments, etc.
Growing Demand
Remittances from business entitiesto individuals
4. Show receipt to get coins
Problem
・Takes time
・High cost
Solution
New scheme
using
convenience
stores
Bills at ATM
Coins at cash register
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Settlement and Account Business
Increase income by ¥5.0 billion through growth of current lineup of services
International
money
transfer services
Debit services
Acceptance of
cash proceeds
from sales services
Increase remittances 1.5 times to
1.5 million transactions per year
Provide to 25% of all individual accounts for a cumulative total of
600,000 cards issued
Increase number of accounts by 2,000 to
10,000 accounts (excluding 7-Eleven accounts)
Loan services Increase loan balance 1.5 times to ¥30.0 billion
FY19 Targets
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Group Financial Strategy
Build a new settlement platform for more convenient shopping
Provide settlement services to 22 million store customers each day
Develop new “close at hand and convenient” financial products with good value
Provide financial services suitable for the Seven & i Group
Work to create new financial services
that integrate financial companies with retail outlets
Strategic Points
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グループ来店2,200万人/日のお客さまEnvisioned Group Financial Strategy (1)
StoresBank
accounts,
credit cards,
e-money,
etc.
ATM
Smart-
phone
Cash
Cu
stom
ers
(1) Register with apps for credit, e-money, debit, etc.
(2) Easy payment at cash registers, on e-commerce, or via smartphone
App
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 27
Customers
Ban
k lo
an
E-m
on
ey
Customers
Offer customers convenient financial services with good value
Until now EnvisionedD
eb
it
Inte
rnati
on
al
mo
ney
tran
sfer
Cre
dit
Insu
ran
ce, etc
.
Financial service private brand
+
Co
nven
ien
t fi
nan
cial
serv
ices
as
an
ext
en
sio
n o
f p
urc
hase
s
Ban
k lo
an
E-m
on
ey
Deb
it
Inte
rnati
on
al
mo
ney t
ran
sfer
Cre
dit
Insu
ran
ce, etc
.
+
Unable to meet customer needs
Envisioned Group Financial Strategy (2)
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 28
Increase income by ¥20.0 billionover the three years from FY17 to FY19
United States
Indonesia
New services
New areas
Increase to around 14,000 ATMs with
installations in U.S. 7-Eleven stores
Generate initial results from operating ATMs
Lay the groundwork for offering back-office
support for banks
Introduce new services tailored to the area
Consider expansion of operating area
+¥20.0
billion
+more
Overseas Business
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 29
Ordinary
income
Total number of
ATMs
US$122 million
12,500
FY17 FY18
US$277 million
13,200
FY19
US$290 million
14,000
Installation of ATMs at U.S. 7-Eleven Stores
Smooth ATM installations and
stable operation
・Raise service quality
・Work for efficient operation
・Successively introduce new services
Incr
ease
use
rs a
nd
inco
me
ATMs at
7-Eleven stores included in above
8,000+ 7-Eleven new store openings
400
+ 7-Eleven new store openings
500
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 30
Capital Policy
Proactive investment in improving ATM infrastructure, etc.
Investment for growth
Allocate net income generated over the three-year period (¥85.0 billion)
mainly to investment for growth and shareholder returns
¥20.0 billion or more
BCP/flexible response
(Group Financial Strategy, new investment opportunities)
Further strengthen the management base ¥20.0 billion or more
Use results of income growth to enhance returns
Shareholder returns ¥40.0 billionor more
Ensure increased income and sufficient capital adequacy ratioMaintain capital efficiency (ROE) at current level (13%)
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 31
7.5 8.0
8.5 9.0
9.5
13 14 15 16 FY17 Plan FY18 Forecast FY19 ForecastFY14 FY15 FY16
Minimum 40% payout ratio
・Using dividends as the basis for shareholder returns, aim to achieve a steady increase
in dividends along with continuous growth, with a minimum payout ratio of 40%
・Flexibly conduct share repurchases in line with the share price level after considering factors
such as business results and financial position
Basic Policy for Shareholder Returns
(Yen)
Cash dividends
Steady increase
Period of plan
FY13
Minimum 35% payout ratio
Copyright (c) 2017 Seven Bank, Ltd. All rights reserved. 32
These presentation materials contain forward looking statements concerning forecasts, expectations, goals and plans related to the
financial results of Seven Bank, Ltd. (“Seven Bank”) and its consolidated subsidiaries. Except for concrete historical facts, these forward
looking statements are based on the information available when they were written. As such, these forward-looking statements may
contain some premises (assumptions). These statements and premises (assumptions) are subjective and subject to various risks and
uncertainties. As a result of such risks and uncertainties, the actual financial results of Seven Bank may differ substantially from these
forecasts and expectations. Such risks and uncertainties include, but are not limited to, system failures, disasters, crimes and other
various risks surrounding the ATM platform, settlement and account and overseas businesses. Any information in these materials, which
is other than that of Seven Bank and its consolidated subsidiaries, is based on publicly available information. We have not validated the
accuracy or appropriateness of such information and do not guarantee its accuracy. All rights reserved.