ANNUAL REPORT 2011 for the year ended March 31, 2011

Strategic Priorities

New Initiatives

Seven & i Group

Based on the comprehensive alliance with Seven Financial Service Co., Ltd. and Sogo & Seibu Co., Ltd., the Millennium Card and Club On Card Saison operations were spun off and transferred to a newly established joint venture, Seven CS Card Service Co., Ltd., on April 1, 2011. This move enables Credit Saison to provide its customers with a range of attractive services from Seven & i Group companies.

Working in collaboration with Seven Card Service Co., Ltd., the new joint venture will offer an integrated package of card-related services, including electronic money and a shared points program. By playing a role in Seven & i Group customer marketing, the joint venture aims with Seven Card Service to generate shopping transactions in excess of ¥2 trillion from a total membership base of at least 10 million.

As part of our efforts to enhance customer services, from July 2011, customers using our credit cards at nationwide Seven Eleven convenience stores and Ito Yokado department stores and supermarkets have been able to register for a new service to receive "nanaco" points in addition to the usual Eikyufumetsu points.

Alliance Strategy with Seven & i Group

Alliance Strategy with Seven & i Group

New Settlement Methods

Prepaid card

Credit Saison is striving to become No. 1 in Japan's cashless settlement market. To do this, we will add prepaid settlement, money transfer and other services to complement our credit card and financial services businesses, with the ultimate goal of becoming a "Comprehensive Settlement Solutions Company."

In August 2010, in collaboration with Visa Worldwide, we began issuing the Uniqlo Online Gift Card, which represents Japan's first prepaid card using the Visa processing service. Also, in May 2011, Credit Saison became the first credit card company in Japan to be registered as a fund transfer agent, and with this new status, we began in August 2011 to issue the NEO Money international prepaid card targeting tourists, business travelers, exchange students and others traveling out of Japan.

Alliance with China UnionPay (CUP)

In August 2011, Credit Saison concluded an alliance with China UnionPay and began signing up affiliated stores to accept CUP cards. The CUP card brand has grown fast, with global settlement of some ¥139 trillion. Working in partnership with Mizuho Bank, Ltd. and UC Card Co., Ltd., Credit Saison aims over the next three years to build a network of 50,000 affiliated stores across Japan that accept CUP cards to generate an additional revenue stream from card commissions.

During fiscal 2011, Credit Saison plans to begin issuing prepaid cards that Japanese travelers can use at overseas CUP member stores in China and other countries. Future plans also call for issuance of CUP-branded credit cards.

Return of Profits to Shareholders

Credit Saison has a basic policy of continuing to provide a stable return of profits to shareholders over the long term. Though regulatory change has significantly impacted our revenues and we continue to experience a challenging business environment, we have enhanced efficiency through structural reforms to maintain our profit level and built a stronger foundation to support future growth. In view of this, we will continue to pay a dividend of ¥30 per share for fiscal 2011. We also plan to pay ¥30 per share for fiscal 2012.

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