Financial Results for the Fiscal Seven Bank, Ltd.

Transcription

1 Qqqq Fancial Results for the Fiscal 21 May 211 Qqqq

2 Q qqq Highlights Highlights Page Page 1 Impact Impact Great Great East East Japan Japan Earthquake Earthquake 2 Income Income statement statement 3 Facr Facr analysis analysis ATM-related ATM-related fee fee come come 4 Steady Steady crease crease number number 5 ATM ATM usage usage unit unit fee fee come come 6 Status Status Accounts Accounts 7 Fancial Fancial Position Position 8 Major Major Initiatives Initiatives 9 Strength Strength ATM ATM busess busess 1 1 Develop Develop Fancial Fancial Services Services Busess Busess Dividend Dividendpolicy Support Support Rebuildg Rebuildg Efforts Efforts Initiatives Initiatives Conserve Conserve Energy Energy Appendix is available at the Seven Bank home page ( ) These presentation materials conta forward lookg statements concerng forecasts, expectations, goals plans related the fancial results ( Seven Bank ). Except for concrete hisrical facts, these forward lookg statements are based on the formation available when they were written. As such, these forward-lookg statements may conta some premises (assumptions). These statements premises (assumptions) are subjective subject various risks uncertaties. As a result such risks uncertaties, the actual fancial results Seven Bank may differ substantially from these forecasts expectations. Such risks uncertaties clude, but are not limited, system failures, disasters, crimes other various risks surroundg the ATM fancial busesses. Any formation these materials, which is other than that Seven Bank, is based on publicly available formation we have not validated the accuracy appropriateness such formation do not guarantee its accuracy. All rights reserved. Qqqq

3 Highlights FY1 Fancial Results ATM stallations transactions with deposit-takg fancial stitutions creased steadily. Revenue prits decled, however, due the significant impact the decle transactions with non-banks revision terms busess. Though ordary come undershot the target, reductions ordary expenses enabled Seven Bank achieve the ordary prit target. The Bank returned prits shareholders through semiannual dividends share buybacks. (1) Dividends Interim: 2,6 yen per share / year-end: 2,6 yen per share (2) Buybacks 29,147 shares repurchased for 4.99 bn yen Total return ratio 7.3% FY11 Outlook Higher revenues expected on expansion ATM stalled base new cusmers. Higher prits expected on contued tight cost controls fset higher depreciation other expenses stemmg from new rollout 3G. 1

4 Impact Great East Japan Earthquake (March 11, 11, 211) Year Year on on Year Year Total Total Transactions Transactions (vs. (vs. 21) 21) 1 1 Mar Mar Mar. March April Japan Disaster-stricken areas (Iwate, Miyagi, Fukushima, Ibaraki Prefectures) Greater Tokyo area Other regions *Immediately *Immediately after after March March 11, 11, transactions transactions plunged, plunged, maly maly the the affected affected area, area, but but have have returned returned pre-disaster pre-disaster levels levels (%) 2. Inoperable (units) March 11 March 2 March 31 approx. 2,1 approx Extraordary Extraordary loss loss from from disaster disaster A tal tal loss loss mn mn yen yen charged charged FY1 FY1 for for loss loss other other assets assets Rollout Rollout plan plan for for 3G 3G revised revised downward downward Plan Plan about about 3, 3, revised revised about about 1,2 1,2 due due parts parts shortages shortages production production constrats constrats 2

5 Income statement FY9 Full year (Unit:Billion y en) Ordary come ATM-related fee come Ordary expenses Interest expenses ATM placement fee expenses Outsourcg expenses Matenance fees Rent f or premises equipment Depreciation expenses Ordary prit Extraordary ga (loss) Income taxes Net come No. stalled at end term (units) ATM-related fee come per transaction (yen) Daily average transactions per ATM (Transactions /ATM /day) Total no. transactions (millions) Actual results FY1 Actual results Reviced full year plan Changes from FY9 results FY11 Plan Changes from FY1 results 14,61 15,4 15, , , Notes: Amounts less than unit have been truncated. Changes from the previous fiscal year changes from its itial plan have been compared units one 1 million yen (for tal transactions, one thous units), amounts less than this unit have been truncated. H1 Changes from FY1 H1 results 3

6 Year on year facr analysis ATM-related fee come (bn. yen) HI -2.3 bn. yen < FY1 actual Half-year trend > H2-2.4 bn. yen H1 +.4 bn yen FY11 forcast H bn yen < FY1 actual Full year -4.7 bn yen Full year trend > FY11 forcast Full year +2.2 bn yen Increase revenues due crease tal number partner-bank transactions achieve by steadily creasg the number stalled Decrease revenues due decle partner consumer lendg card transactions decrease transactions reduction unit fee come Decrease revenues due revision terms busess with partner banks the impact peter out FY1 4

7 Steady crease number (No. ) Trends Trends number number 18, 16, 14, 12, 12,88 No. stalled outside 7&i Group(left scale) 13, , , , Approx. 16,3 1, 8, 6, 12,88 12,678 13,321 13,985 14,623 4, 2, No. stalled side 7&i Group(left scale) FY6 FY7 FY8 FY9 FY1 FY11 forcast Net crease Approx. 95 5

8 ATM usage ATM-related fee come Rates Non-Banks transactions ATM-related ATM-related fee fee come come (yen) , ATM ATM usage usage 9 (million transactions) ATM-related fee come per transaction 19. Total transactions for the priod(left scale) Daily average transactions per ATM(right scale) Non-Banks % 18.% 16.2% 13.6% 1.5% FY6 FY7 FY8 FY9 FY1 FY11 forcast Bankg / Fancial Institutions (transactions /ATM /day) Notes: 1. Total transactions for the period exclude balance quiries, e-money charges, PIN changes daily withdrawal limit changes. 2. Total transactions for the period have been truncated at one million. ATM-related fee come ratio transactions have been truncated at the first decimal place. 3. ATM-related fee come per transaction =ATM-related fee come / (Total transactions for the period Total transactions without ATM-related fee come (i.e. Sales deposits)) 4. Securities companies, life surance companies other fancial stitutions are referred as non-banks this document

9 Status Accounts Seven Seven Bank Bank deposits deposits (dividual) (dividual) (Balances, Billion yen) Number account (right scale) (left scale) Term deposit account balances Ordary deposit accounts (left scale) Offered Offered special special promotional promotional terest terest rate rate for for term term deposits deposits around around wter wter bonus bonus season season Incentive Incentive period: period: Nov. Nov. 22, 22, Jan. Jan. 3, 3, Rate: 1-year deposit at.4% (.2% crease) Rate: 1-year deposit at.4% (.2% crease) (Number accounts unit = 1,) 1, Personal Personal loan loan Pursue Pursue itiatives itiatives develop develop new new cusmers, cusmers, cludg cludg possible possible loan-limit loan-limit creases creases Contract Balance FY 1 9, 536 mn yen Notes Amounts less than unit have been truncated. FY 11 Plan 2, 2,4 mn yen International International money money transfer transfer On On March March 22, 22, 211, 211, began began service service through through Internet/mobile Internet/mobile bankg; bankg; ATM-based ATM-based service service scheduled scheduled start start July July 7

10 Fancial position as March 31, 211 Balance Balance Sheet Sheet Cash placed our Increase followg crease number Securities required for transfer settlement overdraft with Bank Japan accounts ATM-related temporary advances: Funds provisionally paid cusmers correspondent fancial stitutions withdrawg from our. (Increases result when term-end day is a non-busess day sce amounts cannot be settled.) *In prciple, for transactions with nonbanks there is no remag balance ATM-related temporary payments sce these are settled our corporate account on the same day Maly Stware stware-related temporary accounts Loans bills discounted.5 Cash Due from banks 385.(+ 9.8) Securities 99.9(+ 1.5) ATM-Related temporary payments etc. 75.4(+ 5.3) Tangible fixed assets 9.3(- 1.8) Intangible fixed assets 18.6(+.2) Deffered tax assets 1.1 Allow ance for credit loss -. Negotiable certificate deposits 2.6 ( -1.3) Call money 2.8 ( -1.5) Call Loan 1. ( -1.) Provision for bonus.3 (Unit : Billion yen) Deposits(Individuals) 212.3(+82.6) Deposits(Corporate) 1.3(+ 21.1) Borrowed money 2.(+ 1.1) Bonds 9.(± ) ATM-related temporary advances 39.(-.2) Capital sck 3.5(± ) Capital Surplus 3.5(-1.2) Retaed earngs 53.3(+ 5.7) Loss from evaluetions other securities +. New share w arrants.1 Assets 6(+ 97.2) Liabilities Net Assets 6(+ 97.2) Liabilities (+ 92.6) Net assets (+ 4.6) Note: Figures brackets refer change from March 31, 21 are calculated units million yen, then truncated at the first decimal place Ordary deposits: bn yen Term deposits: 14.6 bn yen 2 nd issue(26)36. bn yen (5yr bond) 3 rd issue(26)24. bn yen (7yr bond) 4 th issue(29) 1. bn yen (3yr bond) 5 th issue(29) 2. bn yen (5yr bond) ATM-related temporary advances: Provisional deposits cusmers correspondent fancial stitutions pendg next busess day settlement with those stitutions. Sound Sound fancials fancials Tier Ⅰcapital ratio (Domestic Stard) 51.21%( prelimary figure ) Ratgs( as Mar. 31, 211 ) S&P(Long-term counter party ratg) AA- R&I(Issuer ratg) AA 8

11 Major Initiatives Strengthen ATM Busess Exp ATM network widen cusmer base Develop Fancial Services Busess Full-scale rollout dividual loan ternational money transfer Create New Busess Open overseas fer bankg agency Over the next decade, Seven Bank aims widen the ATM cusmer base develop new revenue sources 9

12 Strengthen ATM Busess Exp Exp ATM ATM network network widen widen cusmer cusmer base base Aim steadily crease transactions by raisg awareness close convenient ATM network, by actively expg stallations Widen Widen cusmer cusmer base base Tap Tap latent latent needs needs Appeal Appeal middle-aged middle-aged housewives housewives with with security, security, safety, safety, convenience convenience Exp Exp ATM ATM alliances alliances Approach Approach fancial fancial stitutions stitutions areas areas where where SEJ SEJ has has yet yet penetrate penetrate Exp Exp stallations stallations Exp Exp non-group non-group locations locations Exp Exp sales sales staff staff troduction troduction routes routes Actively Actively exp exp ATM ATM base base Greater Greater Tokyo Tokyo Osaka Osaka commercial commercial districts districts Status non-group locations locations & average transaction trends (No. ) Breakdown stallations Airport Railway Total 8.1 Commercial facilities Other locations Daily average transactions per ATM (right scale) 72.7 No. stalled (left scale) FY FY FY7 FY8 FY9 FY1 FY (transactions/ ATM/day) FY Notes 1: Locations average transactions, breakdown stallations exclude securities location 2: Start stallation non-groiup locations from July 27 1

13 Develop Fancial Services Busess Develop Develop fancial fancial busess busess Aim diversify revenues by expg range convenient fancial usg our well-developed ATM network (mn yen) 2, 1,5 1, 5 Revenues from Account Personal loan Exchang related Cash pickup delivery Convenient sales proceed deposit FY7 FY8 FY9 FY1 FY11 Plan Develop Develop existg existg Money Money transfer transfer by by ATM, ATM, Internet, Internet, mobile mobile devices devices Convenient Convenient sales sales proceed proceed deposit deposit Exp Exp non-seven-eleven non-seven-eleven FY7: FY7: 4 4 companies companies FY1: FY1: companies companies Cash Cash pickup pickup delivery delivery FY1 FY1 results: results: I-Yokado I-Yokado : : sres sres York York Mart Mart : : sres sres Akachan Akachan Honpo Honpo : : sres sres + Develop Develop new new International International money money transfer transfer Personal Personal loan loan 11

14 Develop Fancial Services Busess International International money money transfer transfer Service benefits fees On On March March 22, 22, 211, 211, launched launched itially itially through through Internet/mobile Internet/mobile bankg bankg Exp Exp busess busess by by quickly quickly stabilizg stabilizg service service ATM-based ATM-based scheduled scheduled from from July July Aim Aim widen widen cusmer cusmer base base early early through through national national communities communities tie-up tie-up with with Western Western Union Union 24/7, 365 availability Simple, affordable charges Many locations (4K receipt locations 2 countries) Funds received as quickly as a few mutes Market size Transfer amount Transfer charge Seven Bank Up 1, 99 1,1 5, 5,1 1, 1,5 2, Other banks 4, Aim for 1 mn transactions with 3-5 years Non-Japanese registered livg Japan ( s people) Cha 68 Philippes 21 Korea 58 Brazil 27 Other 46 Total 2,2 *Based on statistics released by Japanese government on July 7, 21 12

15 Dividend policy Policy Policy Seven Seven Bank Bank aims aims mata mata a stable stable dividend dividend payout, payout, targetg targetg a mimum mimum payout payout ratio ratio 35% 35% through through semiannual semiannual payments payments (terim (terim year-end). year-end). Dividend Dividend payout payout payout payout ratio ratio 8, 6, (yen) 35.5 Interim (left scale) Payout ratio (right scale) Year end (left scale) 37.7 (%) 4 4, 2,8 2,75 2,6 2,6 2 2, 4,2 2,1 2,45 2,6 2,6 FY7 FY8 FY9 FY1 FY11 Plan Note : From FY8, the Bank has paid dividends twice a year through terim year-end payments 13

16 Initiatives Conserve Energy Support Rebuildg Efforts Rebuildg Rebuildg support support Cash Cash donations donations The The Bank Bank is is solicitg solicitg donations donations through through onle onle bankg bankg service service (began (began March March scheduled scheduled contue contue through through May May 31, 31, 211) 211) March April Seven Bank 11,266,772 yen 2,188,92 yen 7&i Group 2,8,24,133 yen 551,256,759 yen Mobile Mobile disaster-stricken disaster-stricken areas areas 3 3 mobile mobile planned planned from from mid-may mid-may Major Major Initiatives Initiatives ATM-related ATM-related Energy Energy conservation conservation Reduce Reduce time time until until transaction transaction screen switches screen switches power-savg power-savg mode mode Reduce Reduce normal normal brightness brightness secondary secondary screen screen Roll Roll out out power-savg power-savg 3G 3G,, maly maly Tokyo Tokyo Electric Electric Power-admistered Power-admistered areas areas (48% (48% power power savg savg vs. vs. 2G 2G ) ) Other Other Power Power f f sign sign lights lights ATM ATM booths booths (non-7-11 (non-7-11 ) ) Energy-savg Energy-savg throughout throughout fices fices 14