Post on 02-Feb-2020
May 24, 2016
Medium-Term Management Plan Business Strategy Briefing
<Retailing Segment>
Today’s Agenda
1. Transition to SC Business Model
2. Promotion of Omni-Channel
Retailing Strategy
(丸井グループ上席執行役員・丸井取締役社長 佐々木 一)
Transition to SC Business Model
~Co-Creation of Stores~
■Japanese Population (1995 indexed to 100)
Social Trends: Population Trends
4
People
in their 20s
68%
Working-age
population
88%
100
1995 2015
・Population of people in their 20s declining after 1996 peak, declining faster than working-age population
30–64
years old
97%
50
【Peaks】
Working-age
population: 1995
People in their 20s: 1996
Source: Population Estimates, Statistics Bureau, Ministry of Internal Affairs and Communications
Total consumption
Social Trends: Shift from Consumption of Goods to Consumption of Experiences
Clothing
Eating out
Telecommunications services
Newspapers and magazines
Leisure
61%
109%
263%
106%
71%
90%
Source: Family Income and Expenditure Survey, Statistics Bureau, Ministry of Internal Affairs and Communications (two-or-more-person households in which head of household works, “food” excludes “eating out,” “leisure” based on Company data)
Exp
erie
nces
Good
s
・Clothing (apparel) consumption plummeted to 60% of 1995’s level
■Consumption Expenditures (1995 indexed to 100)
100
1995 2015
Food 89%
50
5
Social Trends: Strong Performance of Shopping Centers Able to Cater to Consumption of Experiences
Source: Japan Council of Shopping Centers, Japan Chain Stores Association, and Japan Department Stores Association
Department stores
Chain stores
72%
82%
Shopping centers 136%
1995 2015
・Difficult environment for department stores and chain stores focused on goods
■Sales Amounts by Store Type (1995 indexed to 100)
100
50
6
Difficulties Faced as Prior MARUI Strengths Prove Ineffectual in Changing Operating Environment
Young Fashion Akai Cards × ×
Product sales ¥236.5 billion
Record high ¥525.4 billion
Strengths
Up 2.2 times
FY81 FY92 FY11
Urgent need to transition to new business model
7
2007: Return to the Basics of Creating Products Based on Customer Needs
Young (People in their 20s)
Fashion (Goods) ×
Everyone (All ages)
Lifestyle (Goods and experiences) ×
Corporate philosophy: Continue evolving to better aid our customers
Start of co-creation initiatives for maintaining connection with customers and co-creating customer happiness
8
Co-Creation Store Development and Product Creation
・Expansion of lifestyle category products
・Enlargement of rest areas
・No. 1 in customers per floor area
among all stores (1st fiscal year after opening)
Store Development (October 2007)
Planning meetings held with aggregate total of 150 customers
Product Creation (2010~)
Shoes evolved based on input and desires of more than
80,000 customers
・Comfortable, fashionable, and
reasonably priced
・Expanded size range with 12 sizes
・Massive hit selling 2.5 million pairs
Yurakucho Marui Rakuchin Kirei Pumps
9
Lack of Income Improvement Despite Growth in Customer Base and Numbers
Gross profit
Customer numbers
・Lack of income improvement despite ongoing growth in customer numbers and people over 30 coming to represent 80% of customer base
105%
98%
101%
■Distribution of Customer Base
45% 80%
100% Up for 8
consecutive years (~FY15)
FY07 FY14
FY07 FY14 FY09
People over 30
■Year-on-Year Increases in Customer Numbers and Gross Profit
10
Introduce lifestyle category tenants
2014: Transition to Fixed-Term Rental Contract Model to Meet Needs and Generate Income
~2006
Young ×
Fashion
Consignment buying
2007~
Everyone ×
Lifestyle
Consignment buying
Met needs ≠ Income Income decrease
2014~
Everyone ×
Lifestyle
Fixed-term rental
Met needs = Income
Consignment buying
Fixed-term rental
Customer needs
Cannot generate
Can generate
Income
Percent commission
Fixed rent
11
Hakata Marui: Next-Generation SC Style Store Using Fixed-Term Rental Contracts
“The wide range of affordable items makes it easy to go every day.” “With an assortment of sundries and food, men and women of all ages can enjoy the store.”
Investment
amount: ¥5.7 billion
ROI: 12%
NOI yield:
More than 4%
Opened on April 21, 2016
12
Co-Creation Store Development
Lifestyle Apparel
Hakata Marui 70% 30%
Urban Marui stores 40% 60%
■Planning Meetings with Customers (600 meetings attended by aggregate total of 15,000 people)
“It’s boring if there is nothing but clothes.”
“I would go more often if the store
had sundries and food.”
■Customer Feedback after Opening
・Distribution of Product Categories
Store Development Based on Customer Needs
■Food Dealers
oeuf TAMACO Sandwiches (Sandwiches)
Tetsu Ojisan no Mise (Cheesecakes)
pao crepe MILK (Crepes)
Dashidokoro Hyoshiro (Soup and seasonings)
FAR EAST BAZAAR (Dried fruits and nuts)
■Three Telecommunications Service Providers
13
【Purchases by Age Group】
Hakata Marui
Yurakucho Marui
20s 80s~
Exceptionally popular among all age groups
Performance of Hakata Marui
Customers
30s 40s 50s 60s 70s
Purchases Card Applications
1.1 times higher 2.3 times higher 2.2 times higher
■Performance in 1st Month after Opening (vs. 1st month performance at Yurakucho Marui, per floor area)
Purchase numbers
・Higher customer numbers due to co-creation store development and it benefits in Fintech segment
14
Increased Revenue-Producing Floor Space due to
Higher Asset Efficiency of SC Style
Consignment buying model stores
(No revenues)
Hakata Marui
Sales floor
Sales floor
Revenue-producing floor space: 1.1–1.2 times larger
15
Walkway Storage
Revenues generated from sales floors,
walkways, and storage
Storage divided and rented Storage space lent free-of-charge
(Revenues) (No revenues)
SC Style Store Operation with High Capital Efficiency
Revenues
Costs
Customers
■Hakata Marui vs. Consignment Buying Model Stores
・Increased income thanks to low-cost operation and higher customer numbers drawn to lifestyle-oriented store
Revenues per floor area
Revenue-producing floor space
Personnel expenses (back-office staff)
Depreciation
Purchases (per floor area)
Credit card applications (per floor area)
Unchanged
1.1–1.2 times larger
Down 50%
Down 40%
2.2 times higher
2.3 times higher
Income Consignment buying SC <
16
FY2016 FY2017
Deployment of Two Store Brands: Marui and Modi
■Shibuya Marui
Kashiwa VAT Kashiwa Marui
■Shizuoka Marui Purchases
1.7 times higher
(vs. former Marui City Shibuya)
NOI yield 4.4% (1st year forecast)
Marui Building
Building A Marui Building B Modi
Open in second half of FY2017 (tentative)
Opened on May 20, 2016
■Kashiwa Marui
17
To reopen as Modi in October 2016 (tentative)
Plan for Transition to Fixed-Term Rental Contracts and Income Improvement Forecasts
Fixed-term rental contract
floor space (200,000 ㎡)
Income improvement
amounts (Aggregate)
¥0.9 billion ¥6.0 billion ¥7.0 billion
Ratio of fixed-term rental contracts
(Average) 3% 13% 38% 74% 94% 100%
Ratio of fixed-term rental contracts
(Year-end) 7% 20% 60% 90% 100%
FY15 FY16 FY17 FY18 FY19 FY20 FY21
15,000 ㎡
Increase value through contract renewals
Five-year aggregate benefit: ¥6.0 billion
・Complete transition to SC and fixed-term rental contracts by FY2019
and then increase value through contract renewals to improve income
25,000 ㎡
85,000 ㎡
55,000 ㎡
20,000 ㎡
* Ratio of fixed-term rental contracts = Fixed-term rental contracted floor space ÷ Total floor space capable of being contracted as fixed-term rental * Sections not applicable for fixed-term rental contracts: Sections not applicable for fixed-term rental contracts based on contracts with building owners, directly managed sales floors, event spaces, food sales floors, etc.
Benefits
18
Promotion of Omni-Channel Retailing Strategy
~Business Development Focused on E-Commerce~
Marui Specialty Stores: Business Structure Transformation for Establishing Growth Platforms
Select and concentrate on product categories
and PBs to be pursued for the future
・Abolished three categories in FY2016
NB
Expand sales floors to increase sales
Optimize through selection and concentration
PB Fixed-term
rental for NBs PB
・Target profit margin of 3% based on average market rental fees, promote
business structure transformation through selection and concentration
・Optimize sales floors
【vs. FY2014】 70% in FY2016, 60% in FY2021
20
[Consignment buying] [SC style]
PBs: Growth of Women’s Shoes
・Aggregate sales of 2.5 million pairs since 2010 launch of Rakuchin Kirei Pumps (PB co-created with customers)
Comfortable Fashionable
Reasonably priced
Available in various sizes
■Sales Growth on Women’s
Shoes PB Sales Floors
FY10
× Distribution
IT
Company employees
Co-Created PBs Management
Resources
Up 2.2 times
FY16 Uniqueness
21
PBs: Women’s Pants— Next Promising Category after Shoes
■Hakata Marui (Performance in 1st month after opening)
Women’s Pants Market
Extend size range expansion initiatives from shoes to women’s pants
Customers
Dissatisfied with pants
68%
■2014 Market Scale
Skirts
Pants
¥330.0 billion
¥780.0 billion
Up 24% from 2010
[Size range]
12 sizes
(55 cm–88 cm waists)
[Sales]
4.0 times higher (vs. existing stores)
Size % of total population
% of total sales
Regular 75% 92%
Small, large 25% 8%
2.4 times higher
22 Source: Women’s Bottoms Market, Apparel Industry 2015, Yano Research Institute Ltd.
Direct Marketing: Transition from Apparel to Accessories
51%
49%
48%
+10%
-4%
+3%
[YoY]
Apparel
Accessories 52%
■Sales Growth and Distribution
・Sales of shoes and other accessories 1.6 times higher than
three years ago, growing to exceed apparel sales
■Accessory Sales (FY13 indexed to 100)
100
+119%
+63%
+38%
Women’s shoes PBs
Shoes
Bags
Total +59%
Total
Higher sales and income for 1st time in 4 years
FY13 FY16 FY16 FY15
23
Encourage Purchase of Multiple Items
Increase Sales
and Income
Conduct Further
Growth Investments
Increase
Female Customers
Enhance AI-powered
recommendation systems
【1st purchases by new customers】
No. 1 Pumps No. 2 Women’s bags No. 3 Women’s leather accessories
Expand Accessory Lineup
Rate of customers purchasing multiple items that remain
customers in following year: 2–4 times higher than Customers purchasing
only one item
Direct Marketing: Virtuous Cycle Arising on Accessories
・Focus on accessories to encourage increased female customers
to purchase multiple items and thereby grow income
24
Room for Future Growth in E-Commerce Market
■Japanese E-Commerce Market
¥3 trillion
1.0%
Ratio of e-commerce to total retail ¥13 trillion
U.K.
China
U.S.
Source: Ministry of Economy, Trade and Industry for Japanese market data, eMarketer Inc. for BtoC market data and ratios of e-commerce to total retail of overseas markets
・E-commerce market quadrupled in size over short period, but ratios of e-commerce sales to total retail sales in overseas markets still greatly exceed Japanese market
2005 2014
4.4%
11.6%
8.3%
5.8%
Japan
25
Start of e-commerce Referrals from stores
■Direct Marketing Sales
Omni-Channel Retailing Strategy Centered on E-Commerce
・Certain catalogs discontinued in FY2015 to transition to pure e-commerce direct marketing, Marui specialty store and direct marketing organizations integrated in FY2016 to advance omni-channel retailing strategy
Stagnancy
Catalogs
FY02 FY05 FY16
Both catalogs and e-commerce * Start of e-commerce
Transition to pure e-commerce * Integration of organizations
26
Customer E-Commerce Needs
Confirmation of sizes and materials before purchase
No items or sizes out of stock
Response
Pick up products at stores
Integrated inventories of Internet and physical stores
Purchase online → Pick up at stores
Ability to try on
Try-on events based around MARUI’s unique e-commerce operations
Already addressed through omni-channel retailing strategy
Only possible in physical stores
Acceleration of Omni-Channel Retailing Strategy in Response to E-Commerce Needs
27
Rakuchin Kirei Pumps Try-on Events
Hold short-term event stores
・No new investment or fixed costs, low costs, and low risk
Ship product
Company Internet shopping platform
No inventories
No new store investments or hiring
No fixed costs
Sell via tablet
Allow customers to try on
Display only samples
【Scheme】 【Benefits】
Nagoya Central Park
AMU PLAZA KAGOSHIMA
28
Try-on Store Business Model
* Product sales indexed to 100
= - + +
* Purchases indexed to 100 (aggregate total)
・Model for improving corporate value by
maximizing earnings without assets
■Customers
■Income Structure
380
Total income
100
Product sales
310
Card revenues
230
Internet revenues
260
Expenses
100
Purchases
= + + 225 75
Card applications
50
Internet service registrations
Medium-to-long-term earnings
29
Nationwide Deployment of Try-on Stores
・Deploy nationwide centered on collaboration card facilities
FY2016 FY2017
1. Deploy at collaboration card facilities
2. Transition from try-on store to full-fledged store
3. Extend initiative to other PBs and NBs
30
Chubu
region
Tokai
region
Chugoku
region
Kyushu
region
MALera GIFU
Nagoya Central Park
Kamiyacho Shareo
Nishitetsu-Fukuoka
(Tenjin) Station
Metro area
Hokuriku
Kansai
Kyushu
【Try-on Store Annual Plan: 50 Events】
unimo Chiharadai
KORINBO TOKYU SQUARE
KUZUHA MALL
AMU PLAZA KAGOSHIMA
Omni-Channel Retailing: Income Improvement Forecasts
Specialty stores
PBs
E-commerce
Income improvement
¥1.0 billion
Total income improvement
More than
¥4.0 billion More than
¥3.0 billion
in five years
31 FY21 FY16
・Expand business scope and target ongoing income growth
Retailing: Factors Affecting Operating Income
Income Improvements
from transition to fixed-term
rental contracts
Non-fixed rental
sections, etc.
Operating income
More than
¥18.0 billion
Omni-channel retailing
Facility management
and distribution
¥7.9 billion
-2.5
+6.0
+3.0
+1.0
+2.7
Former Retailing and Store Operation
Former Retailing-Related
Services
FY21 FY16
32
■Operating Income and ROIC Forecasts
■Balance Sheet Forecasts
More than 5.3%
FY21 FY16
・Improve asset efficiency to achieve ROIC of more than 5.3% by FY2021
Total Assets
¥300.0 billion
Liabilities
¥60.0 billion
Shareholders’
equity
¥240.0 billion
Equity ratio
81%
Total Assets
¥320.0 billion
Liabilities
¥100.0 billion
Shareholders’ equity
¥220.0 billion
Equity ratio
Approx. 70%
Retailing: Balance Sheet and ROIC Forecasts
¥10.6 billion
More than
¥18.0 billion
3.5%
FY21 FY16
33
<Fintech>
Medium-Term Management Plan Business Strategy Briefing
May 24, 2016
Review of Credit Card Services Development
Today’s Agenda
1
New Medium-Term Management Plan
2
Review of Credit Card Services
Development
0
100
200
300
400
500
600
700
Credit Card Services Transformation 1: Shift from Retailing Support to Cash Advances
■Consolidated Operating Income (Billions of yen)
FY82 FY07 FY91
1980s: Cards for supporting retailing with credit focused on the young and fashion
37
1990s: Cards for cash advances emphasizing consumer loan revenues
70
60
50
40
30
20
10
40
50
60
70
80
90
100
110
120
98 99 00 01 02 03 04 05
-1000
-500
0
500
1000
1500
2000
2500
3000
Credit Card Services Transformation 2: Cash Advances
■Cash Advance Users and Outstanding Loans (Thousands of people)
Outstanding Loans
・Outstanding loans increase despite decrease in user numbers, loans per customers reach ¥320,000 (increase of ¥200,000) in seven years
Users
38
FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06
・Card withdrawals exceed new applications, decreasing to 3.9 million
4.0 million Cardholders
1,200
1,100
1,000
900
800
700
600
500
400
(Billions of yen)
300
250
200
150
100
50
50
10
4.2 million
0
300
600
Credit Card Services Transformation 3: Money Lending Business Act Revision ・Sharp decline in cash advance revenues, previous supporter of business earnings, following revision of Money Lending Business Act
FY16 FY97 FY08
-¥25.5 billion
■Cash Advance Revenues (Billions of yen)
Money Lending Business Act revision
(2006)
39
・Massive change in earnings structures, alliances, and businesses of credit card companies
・Withdrawals and reorganizations in consumer finance industry
■Impact on Credit Card Industry
60
30
Credit Card Services Innovation 1: Launch of EPOS Card
・Visa license acquired in 2005, began issuing EPOS cards in 2006
・Only issued and valid at Marui stores (In-house credit card)
・Annual fees
・Cash advances
Akai Card
・Issued and valid everywhere
(Multipurpose card)
・No annual fees
・Card shopping
EPOS Card
40
0
1000
2000
3000
-3000
-2000
-1000
0
1000
2000
3000
0
100
200
300
400
500
600
Credit Card Services Innovation 2: Business Model Transformation
FY16 FY12
Consumer loans outstanding
Installment sales accounts
receivable
41
■Installment Sales Accounts Receivable and Consumer Loans Outstanding
FY16 FY07
エポスNet
年会費無料化
On-the-spot, in-store issuance of IC chip-equipped Visa cards
Internet services (EPOS Net)
Gold cards
Maruko and Maruo Week
Design cards
Collaboration cards
Platinum cards
Tablets
■Business Evolution
・Transition from cash advance to card shopping, transformation toward business model emphasizing active users
Credit card users
■Credit Card Users
FY06
3.9 million
(Thousands of people)
FY02
300
200
100
(Billions of yen)
3,000
2,000
1,000
Credit Card Services Innovation 3: Pursuit of Further Growth
・Began issuing collaboration cards in 2008, started nationwide expansion in 2014
■Collaboration Cardholders
42
09.3. 10.3 11.3 12.3 13.3 14.3 15.3 16.3
310,000 people
210,000 people
130,000
people
Company partners
Facility partners
2 partners
2,000 people
7 partners
11 partners
13 partners
7 partners
3 partners
14 partners
20 partners
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Strengths Supporting Credit Card Services Growth
【1】Operation by employees with retailing experience
【2】Advanced credit card issuing system
【3】Unique credit expertise and customer assets
【4】Coordination with Group businesses
World’s first on-the-spot, in-store issuance of IC chip-equipped cards, industry’s fastest application system
Cardholder organizations with high ratios of youths, Gold cards with no annual fees
Highly efficient business operation through integration with retailing and in-house system development by Group companies
Assistance for partners and support for facility operation from retailing perspective
43
New Medium-Term Management Plan
45
・Infrastructure development leading up to 2020 to drive industry growth, market scale expected to expand to ¥70–¥80 trillion ・EPOS Card transaction volume growth exceeding industry growth, further growth to be pursued going forward
¥38 trillion
¥70-¥80 trillion
Card Shopping Transaction Trends and Future Credit Card Market
Industry
EPOS Card
<Credit Transaction Volume and Growth Rates>
¥50 trillion
FY12 FY16 FY21
Source: Consumer Credit Statistics from Japan (FY11–FY15), Japan Consumer Credit Association
Credit transaction
volume (Industry)
Comparison with Competitors
[Cardholders] [Card Transactions]
[Operating Income]
[Operating Income per Active Card]
6.1 million
25.6 million
25.9 million
¥1,310.0 billion
¥4,530.0 billion
¥4,470.0 billion
¥22.0 billion
¥7.0 billion
¥37.0 billion
¥19,600 ¥13,900
¥5,700 ¥400 ¥2,300
¥10,100 ¥7,800
EPOS Card
Company A
Company B
Revenue Expenses
Income
* Figures from FY2016, segment based * Total for card shopping and cash advance transactions
¥13,700 ¥13,300
46
・Only one-fourth as many cardholders as other companies but incredibly high revenues per active card
EPOS Card
Company A
Company B
EPOS Card
Company A
Company B
EPOS Card Company A Company B
1. Expand business scope to continually grow credit card operations
Fintech Growth Strategies
3. Increase service revenues by leveraging customer assets and expertise
2. Promote highly unique businesses through collaboration with
other Group companies
Increase operating income and
improve capital efficiency
47
Expand cardholder numbers × Improve usage ratio and amounts
+
48
Rural
Internet, digital content
Stores, products
Previous
Urban
Going forward
Expansion of Business Scope
Internet service applications Collaboration with content creators
Development of collaboration
facilities
49
Credit Card Operations 1: Facility Development, Merging Personnel with Retailing Experience and IT
■Characteristics of EPOS Card
Card application centers and dedicated staff
On-the-spot, in-store issuance of IC chip-equipped Visa cards
Benefits available to all cardholders and referral model sending customers to partners
Tenant relations and other support from retailing perspective
×
×
×
■New Collaboration Partner from First Half of 2016
・Chitose Outlet Mall Rera (partner from April 2016)
Commence collaboration with five to six new facilities each year
・New offices scheduled for establishment in Hokkaido and Nagoya areas
■Expand Office Network
Sapporo
Nagoya
Office
New office
Aim to secure more than 30 facility partners by FY2021
50 50
Credit Card Operations 2: Unique Internet Application, In-Store Pick-up Scheme
FY14 FY15 FY16 vs. FY14
Total 17,000 33,000 56,000 +228%
Outside business
area 4,000 7,000 14,000 +255%
Inside business
area 13,000 26,000 42,000 +220%
<Number of New Cardholders Applying Online>
・Deploy expertise to realize card pick-ups at partner facilities and other innovations outside of Marui store business area going forward
Target swift achievement of more than 100,000
new cardholders annually * Same level as six Kansai region prefectures
■Internet Applications
33,000
17,000
Up 3.3
times
Launched in May 2014
FY12 FY13 FY14 FY15 FY16
Same day
Apply online, pick up at store
56,000
51
Credit Card Operations 3: Collaboration with Video Game Content Creators
■Video Game Company Collaboration Partners
・IDEA FACTORY Co., Ltd. (Partner from July 2014)
・CAPCOM CO., LTD. (Partner from September 2015)
・KOEI TECMO GAMES CO., LTD. (Partner from March 2016)
Video game
company X
Marui stores
(Average)
Card usage ratio
○ 95%
Ratio of women ◎ 72%
Ratio of cardholders under 30
◎ 56%
■Cardholder Base Characteristics
* Comparisons to Marui stores (average): Higher ◎ Approx. same ○
■Events Held Across Japan
4,100 applications
* Including events at Marui stores
41 events held in 2015
52
Highly Original Businesses 1: Coordination with Group Businesses
EPOS Card Applicants at AMU PLAZA OITA
30 Card
applicants per day
20 Prior to opening specialty store (October 2015)
After opening specialty store (November 2015–
March 2016)
Synergies AMU PLAZA OITA
EPOS card application center
Marui Shoes store
Marui Shoes store EPOS card application center
・Productivity: 4 times higher
■New applications same as at medium-sized Marui store
(Per employee card issuances at AMU PLAZA OITA / Per employee card issuances at Marui stores)
■Highly efficient cardholder acquisition without substantial assets
* Investment of ¥6–¥8 billion necessary to build store capable of acquiring same number of cardholders
・Investment at AMU PLAZA OITA: ¥30 million
Support community through MARUI GROUP’s integrated operations
E.g., content-related events, try-on stores, facility management, and distribution operations
Facilities (Marui, Collaboration
partners)
Shopping districts
Local companies
Universities, theme parks, sports teams,
etc.
Highly Original Businesses 2: Evolving Customer Referral Model
Shared cardholders
<Going forward> <Previous>
Collaboration partner
Refer customers
Recruit cardholders
Shared points
Shared benefits
■Initiative Example: Event Held Together with the Community
OSOMATSU ICHI at BonBelta Tachibana (Miyazaki)
・10,000 visitors from across Japan
・Economic benefits related to dining and lodging realized through collaboration with neighboring shopping district
・Contribution to partner facility sales
・Card applications 20 times higher than usual
53
54
Expansion of Service Revenues: Rent Guarantee and Insurance Operations Utilizing Expertise
・Increase earnings through coordination with credit cards
FY16 FY17.3 FY19 FY21
… …
¥2.3 billion
Rent guarantees
¥0.7 billion
Up 3 times
Rent guarantee earnings
Card earnings
+
Rent guarantees Cards
Cards
<Operating income>
■Rent Guarantees ■Insurance
・Establish new growth track through co-creation with customers and business partners
Previous
Going forward
Internet sales
Face-to-face sales
PB NB
… …
¥1.2 billion
Insurance
¥0.6 billion
Up 2 times
FY16 FY17 FY19 FY21
<Operating Income>
・Expand revenues from services with low financing burdens and high capital efficiency
55
IT Utilization: Sophisticated Credit Card Issuing System and Ongoing Operation Streamlining
Operating income
Inspection / collection expenses
Transactions
(Changes vs. figures from FY2014 indexed to 1)
Up 2.4 times
FY14 FY16 FY21
Up 1.4 times
<System Development>
More than 100 orders each year (1 order every 3 days)
Ongoing operation streamlining through
integration with systems
1. Application via tablet
2. On-the-spot card issuance
3. Completion of bank account registration
4. Explanation of usage and benefits
Industry-first, high-speed issuance of IC chip-equipped Visa cards
(patented)
Entire process completed
in as little as 20 minutes
Record high of 1,182 cards issued
in a single day * April 23, 2016 (Sunday)
<Hakata Marui>
Up 1.6 times Up 1.2
times
Up 2.6 times
Up 1.4 times
Numerical Targets
Fintech: Medium-Term Transaction Volume and Operating Income Targets
・Target total transactions of more than ¥2,500.0 billion and operating income of more than ¥40.0 billion in FY2021
17.3 18.3 19.3 20.3 21.3
¥2,500.0 billion~
8.0 million~
7.0 million~
Total Fintech Transactions
6.4 million
¥2,000.0 billion~
¥1,724.0 billion
Cardholders
¥40.0 billion~
Operating income ¥30.0 billion~
FY17 FY18 FY19 FY20 FY21
¥25.5 billion
FY21 FY16
■Operating Income and ROIC Forecasts
■Balance Sheet Forecasts
More than 4.1% 3.9%
FY21 FY16
・Increase operating receivables to ¥250.0 billion and achieve ROIC of more than 4.1% by FY2021
FinTech: Balance Sheet and ROIC Forecasts
Operating receivables
¥413.9 billion
Liabilities ¥410.0 billion
of which
interest-bearing debt is
¥359.3 billion
¥23.1 billion
More than
¥40.0 billion
Equity ratio 10%
Former Credit Card Services ¥22.2 billion
Former Retailing-
Related Services ¥0.9 billion
Total assets ¥460.0
billion
58
Operating receivables
¥680.0 billion
Liabilities ¥650.0 billion
of which
interest-bearing debt is
¥590.0 billion
Equity ratio Approx. 10%
Total assets ¥720.0
billion