[PDF]Integrated Report 2018

SEVEN BANK, LTD. Integrated Report 2018 http://www.sevenbank.co.jp/english/ir/ For the year ended March 31, 2018 Copyright © 2018 Seven Bank, Ltd. All rights reserved “If there was an ATM at Seven-Eleven, it would be more convenient …” In response to such comments from customers, Seven Bank was established and it has created ATM services that can be accessed “anytime, anywhere, by anyone, and with safety and security.” Currently, due to the spread of smartphones, diversifi cation of payment methods, changes in lifestyles and other factors, our business environment is undergoing radical change. It is hard to predict what kind of future awaits us in some years or some decades. We aim to respond flexibly to such changes in society and diversifying customer needs by continuing to change with the times. We will continue to provide new kinds of convenience that society requires, for use by anyone, with safety and security. Together with the times Together with you 1 2 Contents Challenging Limitless Possibilities Corporate Principles Strengths of Seven Bank 1. Innovation Born of Our DNA ························································· 5 1. We aim to be a sincere company that 2. Growth as Social Infrastructure ··················································· 7 our customers trust. 3. Positioning ··················································································· 9 Seven Bank Growth Drivers ······························································ 11 2. We aim to be a sincere company that Value Co-Creation ············································································· 13 our business partners, shareholders, Value Co-Creation Case Study ·························································· 15 and local communities trust. Major Performance Indicators ··························································· 19 3. We aim to be a sincere company that our employees trust. PART 1 Strategy Strategy of adding depth and growth as social infrastructure Message from the President ····························································· 22 Management Policy Feature: Efforts of Seven Labo to Promote Innovation ······················ 27 1. We aspire to be a trusted fi nancial PART 2 Value service provider that fully meets Value Co-Creation through ATMs that meet customers’ needs customer needs. ATM Functions That Anyone Can Use with Peace of Mind ················ 32 Convenient Bank Account Just Like a “Wallet” ································· 35 2. We act to promptly introduce the Overseas ATM Development ····························································· 37 benefi ts of technical innovation and Offering a User Environment Where Safety and Security Are Maximized ··· 39 pursue self-development. Measures to Prevent Financial Crime ················································ 41 Accepting Cash Proceeds from Sales (for Corporate Customers) ····· 42 3. We strive to contribute to the stability and advancement of the fi nancial PART 3 Governance system by providing a secure and Establishing a company that provides value to society effi cient payment infrastructure. Governance Report ··········································································· 44 Corporate Governance ······································································ 45 Seven Bank Management Team ························································ 51 Charter of Ethics (abridged) Risk Management Initiatives ····························································· 53 Compliance Initiatives ······································································· 55 1. Be fully aware of the public nature and social responsibilities of a bank. PART 4 Sustainability 2. Provide highly convenient, customer- Business activities and the pursuit of value in social and focused services, matched to current environmental areas Creating Safe Workplaces That Promote Employees’ Growth ··········· 58 needs. For the Development of Local Communities ······································ 61 3. Act with integrity and fairness. Activities to Combat Climate Change ················································ 63 4. Communicate with society. 5. Have respect for humanity. Financial Section Management’s Discussion and Analysis ··········································· 66 Status of the Corporate Group ·························································· 71 Management Policy, etc. ··································································· 72 Consolidated Financial Statements ··················································· 73 Company Information ······································································ 109 History ···························································································· 111 Principal Data ·················································································· 113 About this publication This integrated report includes information related to Seven Bank’s management policy, business performance, business overview, corporate social responsibility (CSR) and fi nancial position. It has also been prepared to include comprehensive non-fi nancial information that supports our sustainable growth. Forward-looking Statements: This document contains statements concerning the current plans, expectations, strategies and beliefs of Seven Bank, Ltd. (“Seven Bank”). Statements contained herein that relate to future operating performance and that are not historical facts are forward-looking statements. Forward-looking statements may include, but are not limited to, words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” “potential,” “possibility” and similar words that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, are based on judgments made by the management of Seven Bank, based on information that is currently available to it. As such, these forward-looking statements are subject to various risks and uncertainties, including, but not limited to, changes in the level of demand for the services offered by Seven Bank, challenges Seven Bank faces in achieving further growth and various other factors. As a result of such risks and uncertainties, the actual business results of Seven Bank may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. Seven Bank disclaims any obligation to revise forward-looking statements in light of new information, future events or other fi ndings. The information contained in this document does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. 3 4 —Challenging Limitless Possibilities— Strengths of Seven Bank1 Innovation Born of Our DNA Created in Unprecedented Business Based on ATM Service “If there was an ATM at Seven-Eleven, it would be more convenient …” Seven Bank was created in response to customers’ comments like this. Our commitment to offering ATM services that are really required by customers is the foundation supporting our business. Response to s A business created in response to customer feedback s Launched in April 2001 as IY Bank Co., Ltd., a spin-off from our logistics and retail business s History of our challenges to create a sequence of new ATM-centered services Seven Bank’s History Initiated personal loan services 2001 IY Bank Co., Ltd. established 2010 Customer Introduced third-generation ATMs Within two months of the launch of our ATM service, more than 1,000 ATMs were installed Initiated international money transfer services 2002 2011 Listed on the First Section of the Tokyo Stock Exchange 2003 2012 Acquired all issued shares of Financial Consulting & Trading International, Inc. (currently FCTI, Inc.) of the United States to make it a wholly owned subsidiary 2004 2013 Feedback Number of ATMs installed exceeded 10,000 Established PT. ABADI TAMBAH MULIA INTERNASIONAL Introduced second-generation ATMs (“ATMi”), a joint venture operating ATMs in Indonesia 2005 Company name changed to Seven Bank, Ltd. 2014 Established Bank Business Factory Co., Ltd., a wholly owned VXEVLGLDU\HQJDJHGLQEDFNRIŰFHVXSSRUWRQFRPPLVVLRQ Initiated services for cards issued overseas 2006 2015 Expanded language options on ATM screens and slips to Began loading money onto nanaco 12 languages, etc., when cards issued overseas are used electronic money cards at ATMs 2007 Completed installation of ATMs in all 47 prefectures 2016 Began issuing cash cards with a debit function 2008 Listed on the JASDAQ Securities Exchange 2017 Began offering the ATM deposit/withdrawal service via smartphone (currently the Tokyo Stock Exchange JASDAQ Market) 2009 2018 Established Seven Payment Service, Ltd., a wholly owned subsidiary offering remittance and settlement services Installed approximately 8,000 ATMs in 7-Eleven stores in the United States Launched cash receipt service 5 6 —Challenging Limitless Possibilities— Strengths of Seven Bank2 Growth as Social Infrastructure Performance as Social Infrastructure Seven Bank is installing ATMs at “nearby and convenient” locations, including Seven-Eleven stores as well as hubs for transportation, logistics and tourism. We have built

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