ANNUAL REPORT 2013 for the year ended March 31, 2013



Results for Fiscal 2012

Credit card-based shopping has been growing in step with expansion of the areas in which credit cards can be used. However, revisions to the Money Lending Business Act caused a contraction in the market for cash advances on credit cards. As a result, management conditions remain highly challenging. Credit Saison has responded by working to build a foundation for new growth; we have been expanding cashless settlement services centered on credit cards, enhancing fee-based business using the Internet, and promoting non-bank financial functions like the lease and finance businesses. We have also made a full-scale entry into other Asian markets.

In the Credit Service Segment, our mainstay business, we continued to solicit members for the Saison American Express Card, for which high usage rates and spending per transaction are expected, and for affinity cards in tie-ups with partner companies. We also continued to appeal for new members using the Internet. As a result of these efforts we gained 3.38 million new cardmembers in fiscal 2012, an increase of 30% over the previous year. Total cardmembers were 24.82 million, a year-on-year rise of 70,000, and active cardmembers were 13.62 million, up 630,000 from the previous year-end, as we continued to steadily broaden our customer base.

In the credit card shopping business, transaction volume increased at a healthy rate, by 4.2% year on year to ¥3,547.0 billion. We provided cardmembers with special benefits when using their credit cards, in partnership with various companies. We also ran Regional Revitalization Campaigns in Ikebukuro, Sapporo, Fukuoka and other areas to stimulate new consumption, and promoted the use of credit cards for settlement of recurring payments like mobile phone bills.

The balance of cash advances declined, due to the lingering impact of restrictions on total loan amounts that went into effect with full enactment of the Money Lending Business Act. However, new users increased as more new cards were issued and transaction volume recovered to increase year on year beginning in December.

In the Lease Segment, we strengthened ties with existing customers and conducted sales activities to recruit new partner merchants. Lease transaction volume increased by 8.8% over last year, to ¥105.3 billion.

In the Finance Segment, revenue from the credit guarantee business continued to increase at a brisk pace. The business provides guarantees for free-loans to individuals and small business operators in partnership with credit unions and other local financial institutions around the country.

As a result, operating revenues increased by 0.2% year on year to ¥244.4 billion.

Regarding costs, the cost of uncollectible receivables dropped 24.6% year on year. Our receivables situation improved due to efforts to strengthen claim management and reduce the occurrence of claims requiring third-party intervention. In addition, we continued to streamline operations and our credit card joint ventures performed well for the year. Ordinary income therefore climbed 37.9% compared to last year to ¥53.2 billion and net income rose 246.6% to ¥32.7 billion.


  (Billions of yen)
Operating revenues Operating income
2013 % change 2013 % change
Credit Service 190.4 (4.2) 24.1 (10.9)
Lease 14.4 (1.6) 6.1 20.5
Finance 17.3 10.3 8.9 15.5
Real estate-related 9.8 220.6 0.9
Entertainment 13.5 4.6 2.1 1.9
       Total 245.6 0.1 42.3 32.7
Inter-segment transactions (1.2) 0.0
Consolidated 244.4 0.2 42.3 32.8

(Year ended March 31)


  Figures in parentheses are change from the end of previous fiscal year
2013 % change
New applications (millions) 3.38 30.0
New cards issued (millions) 2.51 28.1
Total cardmembers (millions) 24.82
(Up 0.07)
Active cardmembers (millions) 13.62
(Up 0.63)
Transaction volume 3,807.1 3.8
  Card shopping (¥ billion) 3,547.0 4.2
  Cash advances (¥ billion) 260.0 (2.6)

(Year ended March 31)

Business Breakdown

Business Breakdown

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