SEVEN BANK, Annual LTD. Report 2017 http://www.sevenbank.co.jp/english/ir/ SEVEN BANK, LTD. Annual Report 2017 For the year ended March 31, 2017 010-01-1708-1,000-TP Copyright © 2017 Seven Bank, Ltd. All rights reserved Printed in Japan 005_9663385842908.indd 1,3 2017/08/29 16:24:34 “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 meth- ods, changes in lifestyles and other factors, our business environment is un- dergoing radical change. It is hard to predict what kind of future awaits us in some years or some decades. We aim to respond fl exibly to such changes in society and diversifying custom- er 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 SEVEN BANK, LTD. Annual Report 2017 SEVENSEVEN BANK, BANK, LTD. LTD. Annual Annual Report Report 2017 20172 2 h2-p1_9663385842908.indd すべてのページ 2017/08/30 14:31:11 Message from the Management Contents We will leverage our Medium-Term Management 4 Message from the Management Corporate Principles 1. We aim to be a sincere company that Plan as a Bridge to the Next Growth Stage. Seven Bank’s Businesses our customers trust. 5 Seven Bank’s Growth and History 2. We aim to be a sincere company that 7 Major Businesses our business partners, shareholders, We sincerely appreciate your using the services provided by Seven Bank. and local communities trust. Since its establishment in 2001, Seven Bank has made continuous efforts to provide ATM Seven Bank’s Growth Strategies 3. We aim to be a sincere company that our employees trust. services that can be accessed “anytime, anywhere, by anyone, and with safety and security.” In the 9 Medium-Term Management Plan year ended March 31, 2017, the number of ATMs installed in Japan, which are used by approxi- 11 Interview with President Kensuke Futagoishi Management Policy 17 Feature: Seven Bank’s Endeavors mately 2.2 million customers a day, exceeded 23,000. 1. We aspire to be a trusted financial ser- In recent years, the business environment surrounding the Bank has seen radical changes Value Created by Seven Bank vice provider that fully meets customer needs. including the spread of smartphones, the emergence of new settlement services and changes in 23 Seven Bank’s Standards of Judgment and Behavior 2. We act to promptly introduce the customers’ lifestyles. 25 Providing Social Infrastructure Accessible Anytime benefits of technical innovation and pursue self-development. 35 Realizing Secure Services for Everyone To address such changes in our business environment, Seven Bank has announced a three- 3. We strive to contribute to the stability 41 Initiatives to Reduce the Environmental Burden and advancement of the financial year Medium-Term Management Plan (the “Plan”). Although our businesses have centered on 43 For the Development of Local Communities system by providing a secure and ATM services to date, we will now strive to diversify our businesses while steadily expanding 46 Promoting Close Communication efficient payment infrastructure. 47 Creating a Fulfilling Workplace ATM services as our main business. Positioning the three years under this Plan as a bridge to the Charter of Ethics (abridged) next growth stage, we will solidify our new growth stage by making full efforts to achieve the Structure that Supports Growth 1. Be fully aware of the public nature and Plan. 49 Seven Bank Management Team social responsibilities of a bank. Being a provider of ATM services as part of the social infrastructure, the Bank regards it an 51 Status of Corporate Governance 2. Provide highly convenient, custom- 53 Risk Management Initiatives er-focused services, matched to important responsibility to continue to provide a secure and efficient settlement infrastructure for current needs. 55 Compliance Initiatives customers. Under the Management Policy of achieving corporate growth while solving social 3. Act with integrity and fairness. 4. Communicate with society. issues, we will continue sincere efforts to deliver safe and secure services for all customers. Financial Section 5. Have respect for humanity. We would appreciate the continued support and encouragement of our stakeholders. 58 Management’s Discussion and Analysis 63 Status of the Corporate Group July 2017 64 Management Policy, etc. 65 Consolidated Financial Statements Forward-looking Statements 101 Company Information This document contains statements concerning the current plans, expectations, 103 History 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 105 Financial Highlights forward-looking statements. Forward-looking statements may include, but are not limited to, words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” 107 Principal Data “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-look- ing 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-look- ing statements. Seven Bank disclaims any obligation to revise forward-looking statements in light of new information, future events, or other findings. 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. Takashi Anzai Kensuke Futagoishi Chairman and Representative Director President and Representative Director 3 SEVEN BANK, LTD. Annual Report 2017 SEVEN BANK, LTD. Annual Report 2017 4 010_9663385842908.indd 3 2017/08/29 13:40:24 010_9663385842908.indd 4 2017/08/29 13:40:25 Seven Bank’s Businesses Seven Bank’s Growth and History Number of ATMs installed “If there was an ATM at Seven-Eleven, it would be more convenient…” 23,368 In response to such comments from customers, Seven Bank was established and it 22,472 has striven since inception to provide ATM services that can be accessed “anytime, anywhere, by anyone, and with safety and security.” 21,056 Currently, the number of our ATMs installed in Japan has exceeded 23,000 and ATM 19,514 services are now provided overseas as well. Number of ATM transactions per year We will further enhance the convenience of bank accounts for 18,123 796 million financial services and promote the development of unique financial products. 16,632 Seven Bank will continue to take on new challenges to achieve 15,363 782 Initiated issuance of 743 cash cards with debit sustainable growth and development. 14,601 736 function 13,803 698 Initiated the ATM 13,032 655 business in the Republic 12,088 609 of Indonesia (subsidiary 11,484 590 ATMi) 555 Exceeded 1.5 million 9,981 accounts 498 Initiated the back-office support on commission (subsidiary Bank 7,804 418 Business Factory) Initiated the ATM business in North America (subsidiary FCTI) 342 Exceeded 1 million accounts 5,250 Initiated services for cards Listed on the First Section of the issued overseas 257 Tokyo Stock Exchange 3,657 Completed installation of ATMs in all 47 prefectures Introduction of third-generation ATMs Listed on the JASDAQ Initiated international money transfer IY Bank Co., Ltd., 158 Introduction of sec- Securities Exchange services established ond-generation ATMs (currently the Tokyo Stock Company name changed Exchange JASDAQ Initiated personal loan 72 to Seven Bank, Ltd. Market) services 14 2001 >>>2002 >>>2003 >>>2004 >>>2005 >>>2006 >>>2007 >>>2008 >>> 2009 >>>2010 >>>2011 >>>2012 >>>2013 >>>2014 >>>2015 >>> 2016 (Fiscal Year) Corporate Value in Numbers (As of March 31, 2017) Scale of Business Profitability Shareholder Returns Number of ATM Number of Partner Financial ROE Payout ratio installations 23,368 units Institutions, etc. 601 13.1% 42.6% During the year ended March 31, 2017, we promoted We aim to partner with all financial institutions so Regarding the return on equity (consolidated), or Regarding returns to our shareholders, Seven the installation of ATMs at various locations, including that any cards held by customers will be available net income divided by average total shareholders’ Bank targets an annual minimum payout ratio of Seven-Eleven stores. This resulted in an increase of 896 at our ATMs. equity, Seven Bank has maintained a level of over 40% or more from fiscal 2017. units in the number of ATMs installed. 13% in recent years. 19 セブン銀行 ディスクロージャー誌 2017 セブン銀行 ディスクロージャー誌 2017 20 5 SEVEN BANK, LTD. Annual Report 2017 SEVEN BANK, LTD. Annual Report 2017 6 p5-p6_9663385842908.indd すべてのページ 2017/08/30 15:09:45 Seven Bank’s Businesses Major Businesses Seven Bank creates “new kinds of convenience” based on its network of ATMs accessible 24 hours a day, 365 days a year in partnership with financial institutions. In addition, we also provide ATM ser- vices overseas and back-office support on commission through our subsidiaries.