Transcript of "02 15-14 saisoncard results-q3_2013"
February 7, 2014
Credit Saison Co., Ltd.
Public Relations Office
Credit Saison (8253) Announces Financial Results for April - December 2013
During the April - December period of fiscal 2013, shopping transaction volume grew by
6.6% year-on-year through increased sales of high-priced products due to recovery in
consumer spending, payment of summer bonuses during a period of surging demand prior
to the scheduled increase in consumption tax, billing through a variety of payment methods
such as revolving payments, and implementation of promotions to encourage card usage.
Also, in the internet business, transaction volume for the point website Eikyufumetsu.com
grew by 8.2% and the number of internet members increased by 1.05 million in the period
under review, reaching a total of 9.61 million. Besides, “Saison CLO”, a service which
introduces the card members through internet to the affiliated stores, have been started to
build the revenue basis. Furthermore, in addition to issuing new credit cards and promoting
card usage, the Company actively worked to expand business in order spread prepaid card
and smartphone settlement services and to realize a cashless society. In the Lease
Business, in addition to increasing the number of new affiliated stores, the Company
expanded the lineup of products and constructed a foundation for stable future growth.
Consequently, lease transaction volume grew by 6.9% year-on-year. In the Finance
Business, as part of the credit guarantee business, the Company began handling free-loan
guaranteed products at Kyoto Chuo Shinkin Bank and formed close relationships with
partner financial institutions. As a result, the guarantee balance grew by 12.7% year-on-year.
Moreover, due to increased usage before the scheduled increase in consumption tax, the
number of loans and loan amount increased for the long-term fixed-rate housing loan Flat 35.
As a result, operating revenue grew by 9.5% year-on-year and the Company worked to
realize comprehensive growth as a non-bank financial business. Consequently, operating
revenue was ¥186.5 billion, up 1.4% year-on-year; operating income was ¥33.3 billion, up
0.7% year-on-year; ordinary income was ¥42.4 billion, up 3.3% year-on-year; and April to
December 2013 net income was 27.5 billion, up 5.6% year-on-year.
A summary of performance for each segment is as follows.
（１）Credit Services Business
As the Company worked to increase transaction volume by expanding its customer base,
applications grew steadily both through online application and application through partner
retailers, with efforts directed toward increasing the number of card members forecasted to
have a high card usage rate and high usage price. Card issuance grew 2.8% year-on-year
to 1,940,000 new cards. In shopping, recovery in consumer spending led to an increase in
high-price consumption at department stores and home electronics retailers. There were
also steady results from promotions for card usage in partnership with retailers timed to
match the period of surge in demand prior to the scheduled increase in consumption tax.
Furthermore, the Company contributed to revitalization in the areas of Yaesu/Nihonbashi,
Kyoto and Sapporo through card usage in partnership with retailers and credit card
companies in each area. In communications, there was an increase in usage for public utility
charges. As a result, shopping transaction volume grew 6.6% year-on-year to ¥2,831.8
billion. Moreover, as part of efforts to realize a cashless society, the Company began to
issue Cocokara Club cards (Visa prepaid cards) from April and it continued to be strong,
with 2.66 million cards issued. Also, the Company strengthened sales activities to credit
card member stores in order to spread the smartphone settlement service “Coiney.” As a
result of prior investments associated with new cards and promotion of usage, overall
operating revenue in the Credit Services Business was ¥141.9 billion, down 1.2%
year-on-year, and operating income was ¥15.9 billion, down 17.6% year-on-year.
（２） Lease Business
In leasing operations, in addition to increasing the number of new partner retailers, the
Company focused on leading sales outlets while implementing campaigns to meet the
needs of partners and expanding the product lineup to include kitchen equipment. As a
result, transaction grew 6.1% year-on-year to ¥78.0 billion. In rental operations, the
Company enjoyed growth in sales of LED lighting, serving the demand for energy-efficient
solutions; this segment saw transaction volume soar 20.9% year-on-year to ¥5.4 billion. As
a result, transaction volume for the entire Lease Business was ¥83.5 billion, up 6.9%
（３） Finance Business
In the credit guarantee business, the Company cooperated closely in both sales and
management with partner financial institutions. As a result, guaranteed balance increased
steadily by 12.7% year-on-year to ¥222.3 billion. Also, from December 2013, the Company
began handling free-loan guaranteed products at Kyoto Chuo Shinkin Bank. In Flat 35, a
family of long-term, fixed low-interest mortgage loans, based on increase usage spurred by
the scheduled increase in consumption tax, the Company continued transactions in Flat 35
PLUS, a combined loan product for Flat 35 with 100% execution, and expanded sales
channels. As a result, new lending soared 46.0% year-on-year to ¥47.9 billion, while loan
balance jumped 38.4% year-on-year to ¥194.1 billion. In Asset Formation Loans, by
beginning sales of the new product Asset Formation Loans (a form of loans for purchasing
apartments) in December 2013 in order to diversify our finance businesses, lending
transaction remained steady at ¥15.7 billion. Furthermore, The Company also redoubled its
efforts to assure prudent loan management. As a result, operating revenue for the entire
Finance Business was ¥14.0 billion, up 9.5% year-on-year, and operating income was ¥7.1
billion, up 6.8% year-on-year.
（４） Real Estate Related Business
Thanks to active sales efforts and a recovery in the real-estate market, Atrium Co., Ltd., a
consolidated subsidiary, is advancing steadily.
２．Overview of Ordinary Income and Net Income
Prudent risk management aimed at expanding the portfolio of high-quality credit obligations
has enabled the Company to reduce loan-loss expenses 20.5% year-on-year to ¥14.2 billion.
At the same time, the Company has built a solid foundation for future growth by making prior
investments associated with new cards and promotion of usage. These efforts produced a
rise in sales expenses of 1.6% year-on-year to ¥153.1 billion. Ordinary income was ¥42.4
billion, up 3.3% year-on-year.
As a result, April to December 2013 net income was ¥27.5 billion, up 5.6% year-on-year.
(For your reference)
◆Non-consolidated Results for April - December 2013
(1)New card members acquired
(2)New cards issued
(3)Total No. of card members
(4)Active card members
(6)Shopping transactions Volume
(7)Shopping revolving credit balance
(8)Card advance transaction volume
(9) Card cash advance balance
(10) Operating revenue
(12)Apr. to Dec. 2013 Net income