Credit Saison
Vision and Strategy Report

CORPORATEREPORT 2020
Aiming to Become a Leading-edge Service Company

Credit Saison Co., Ltd.
Sunshine 60 Bldg., 1-1 Higashi-Ikebukuro 3-chome, Toshima-ku, Tokyo 170-6073, Japan

https://corporate.saisoncard.co.jp/

Management
Philosophy

Editorial Policy
Credit Saison works diligently to provide its wide range of stakeholders including customers, shareholders andinvestors with accurate information in an equitable manner on a timely basis.
In addition to an overview of its operating results and financial standing , the Credit Saison Vision and Strategy
Report 2020 contains non-financial information that covers a wide range of environmental, social and governance(ESG) as well as other fields. This report is intended to help our many stakeholders to better understand theCompany’s efforts to create value over the medium and long term and ensure its sustainable growth.

CONTENTS
We will fulfill our corporate social responsibility by striving to meet

Visionthe expectations of all of our customers, shareholders, and business partners.
We will compete successfully in the market by promoting our three sharedvalues: practical implementation of the principles of customer satisfaction as aleading-edge service company; mutual respect for our interests and those of our■ Message from Top Management

4■ A History of Challenge and Change

6■ Value Creation Process8■ New Medium-term Management Plan

10

■ Payment Business14■ Solution Business16■ Asset Management Business18■ Digital Marketing20■ Finance Business22■ Global Business

24■ Creating Value in Collaboration with Stakeholders

26

Strategybusiness partners; and developing a corporate culture of creative innovation.

The Conceptbehind Our Logo

Sustainability■ Commitment to SDGs

28

■ Initiatives for the Development of a Prosperous Society

30■ Promoting Diversity and Inclusion

32■ Key Characteristics

34■ Initiatives toward an organization in which each andevery employee can demonstrate his or her abilities

35■ Taking on the Challenge of Reform as We Create Credit Saison

36■ Akagi Nature Park: Preserving a Lush Forest for the Children of the Future38

Corporate Governance■ Corporate Governance41
44■ Dialogue with Shareholders and Investors (IR activities)

45

Financial Information

Saison Blue

About the Company’s corporate colors■ 11-Year Summary of Select Financial Data

46

■ Management’ s Discussion and Analysis

48… Symbolizing people’s happiness and aspirations■ Consolidated Financial Statements

62

Saison Green … Symbolizing trust, peace of mind, culture and innovation

Corporate Data
■ History64■ Board of Directors and Audit & Supervisory Board Members & Executive Officer 66■ Examples of Cards Issued

67■ Major Business Sales Bases and Organization Chart

68■ List of Affiliated Companies

69■ Stock Information and Shareholders Memo70

■ Corporate Information

71

Forward-looking Statements
This report contains information including details of the Company’s management plans, projections, strategies and estimatesthat are not historical facts. This information reflects the beliefs of management based on currently available information.
Projections and forward-looking statements are subject to certain risks and uncertainties. As a result, projections of future
performance, the business environment and other forward-looking estimates may differ materially from actual results.

23

VisionVisionStrategy

Sustainability

Corporate
Governance

Message from Top Management

Representative, Chairman and CEO

Representative, Executive President and COO

Hiroshi Rinno

Masahiro Yamashita

Group Synergies and a Blue Ocean Shift

Challenging Ourselves to be a Finance Company
Advancing with Customers for 50 Years

2020 is likely set to become a landmark year in human history, similar to the Great Depression that took place in 1929.
Beginning with an upsurge in dictatorships, I believe that we are confronting a variety of crises. This include:
simultaneous heavy falls in stocks, crude oil and precious metal prices; feelings of dread with regard to the new type ofcorona pneumonia; confusion caused by the U.S.-China battle for supremacy; a tightening of global regulations onhuman interactions and physical exchanges; and postponing of the Olympic Games.
The business environment will naturally be affected, and the upheaval that will likely occur in the 21st century hit
companies directly.
Depending on the environment surrounding a business and the type of industry, the corporate response will appear thesame but be beset with difficulties. The digital revolution and global management are dealing telling blows and thecompetition for survival will also be fierce in the extreme.
Our management reforms are as follows:(1) Redefining what a company should be:
Brand establishment in Asia in the broader sense for the rebuilding and development of the SAISON BRAND(2) Thorough corporate reforms:
Break with convention to become a global company with the utilization of DX and AI positioned at the core of ourbusiness strategy(3) Clarification of competitive strategy:
Establishment of a unique non-bank model to provide various financial services centered on settlement(4) Process to make management organization more flexible
Recruit and develop human resources that embody thoroughness for Group management and corporate marketing
We will pursue Group synergies by leveraging all innovative management methods to not only generate growth andresults as an individual company from the 20th century, but also renovate businesses, products and services that
become obsolete by means of innovation. We will also work to realize a Blue Ocean Shift and active roles for all
employees as well as operate with the goal of remaining a company that is not only an enjoyable place for people towork, but also pays high wages.

I have held the posts of President and COO since March 2019.
In addition to the Management Philosophy on which have placed value so far, that of remaining a “leading-edge service
company," we last year adopted “becoming a finance company advancing with customers for 50 years” as our mission
statement and formulated a new Medium-term Management Plan for the next three years. While aid to be in an “erawhen people often live to be 100,” we are aiming to remain a true finance company that can continue to provide
side-by-side proposals tailored to the life stage of each customer.
In 2019, Japan witnessed the change to the Reiwa era in accordance with the emperor’s enthronement, reports of “20million yen funds needed for retirement,” an increase in the consumption tax, damage from typhoons and heavy rain as
well as the global achievements of Japanese athletes. A pandemic was declared early in 2020 due to the worldwide
spread of a new coronavirus. At the time of writing, there are concerns of a tremendous impact, matching or exceedingthat of the Lehman Brothers crisis, on the world economy, with no return to normality in sight.
Meanwhile, Credit Saison has undertaken a raft of initiatives designed to help us achieve our Medium-termManagement Plan. These initiatives have included: the introduction of an executive officer system with the aim ofquickly recruiting talented individuals and fostering management candidates; the establishment of a Nomination andRemuneration Committee to ensure fairness and transparency in personnel affairs; the buying back of treasury stock;
revisions to our IR methods and explanatory materials; the putting into practice of efficient organizational managementby moving organizational and personnel changes from spring to autumn; the making of a capital and business alliancewith a major securities company; and the execution of unprecedented sales promotions and promotional measures.
In addition, on April 1, the Company was re-integrated with Qubitous for the first time in 13 years, enabling newcontracted services and seamless processing by means of new systems.
This year (FY2020) being the second year of the Medium-term Management Plan, we would like to carry out new
initiatives geared toward the achievements of our goals. We would also like to take this as an opportunity to publish
this report and work to further deepen communications with all our stakeholders.
Based on important themes and trends compatible with the current fashion, we would like to add qualitative data toquantitative data and report on the progress of the Medium-term Management Plan while understanding our strengths
and businesses.
By practicing ESG management, as we have been since the 1980s, we will contribute to the development of a more
plentiful and convenient society, thereby achieving sustainable improvement in corporate value and making acontribution to society.

45Financial
Information

Corporate
Data

VisionVisionStrategy

Sustainability

Corporate
Governance

Financial
Information

A History of Challenge and Change
Deeply engaged in card business activities, which have evolved
through a process of dramatic innovation, Credit Saison is expanding
into a peerless new finance company in Asia.

Anticipating trends with each changing era, Credit Saison has continued to provide groundbreaking products
and services through a process of sustained innovation. Drawing on a customer base that comprises around37 million (consolidated) cardholders and roughly 16 million online members, while leveraging its preeminent
payment business know-how, the Company is committed to evolving further as an innovative finance company.

Operating revenue (consolidated)
OperatingrevenueInnovation history

2013(Billions of yen)

3,500

Scaled up
overseas business

1997
3,000

1990

Started an alliancewith American Express

2,500

2017

Introduced
signature-less payments,
the first in Japan

Abolished employee
classification system

2010

Worked toward permanent
employment for all employees

American Express
Issued the world’s first
American Express cards
with a centurion design

Introduced a common
HR system for all employees

2,000

1982
1,500

2002

Issued cards with no annual fee

EstablishedEikyufumetsu Points
Platform

Established pioneering model for instantcredit screening and card issuance2016

Began a nationwide networkof Saison Counters

1,000

Started providing“Point Investment Services”
for investment using
Eikyufumetsu Points

500

0

From 1951 Challenge to Change Common Practices in the Industry

From 2000 Diversified Business and Expanded Alliances

1951

2000

1980

1990

From 2010 Scaled-up Payment Business and Full-scale Global Business2010

FY2019 (Forecast)

Consolidated basis* Financial statements prepared on a consolidated basis from FY1999. And has applied the IFRS to its consolidated accounts from fiscal 2018.

Historicalcontext

1950-1980s

1990s

2000s

2010s

2020〜

From the period of high economic growth to the bubble economy
Japan’s GNP ranks second in the world
Oil shock, end of the Cold War

Collapse of the bubble economy, Heisei recession
Japan-US trade friction, Plaza Accord
Onset of the advanced information society due to widespread
Internet use

Global financial crisis
Lehmann shock
Internet proliferation among individual users exceeds 70%

Abenomics
Economic slowdown in China,
negative interest rates Transition from a
trade-to investment-oriented nation

Tokyo Olympics
Foreign visitors to Japan
reaches 40 million 100%
conversion to IC credit cards

67

Corporate
Data

VisionVisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Credit Saison’s Value Creation Process
Social Issues (Environmental Change)

Contributing to the creation of a sustainable society even moreconvenient and prosperous than it is today

Credit Saison’s
Underlying Capital

Credit Saison’s Strengths

Professional human resources wellversed in a variety of fields including
credit and financeIntellectual capital
Credit know-how and membershipbase nurtured over the 69 years since
the Company’s founding

Helping individual
vibrant life

3,239 (including 2,424 women)

Payment

P14

歴史
History

Digital Marketing

Section chief
P16

Diversity
多様性

Providing business

Revenue base focusing
mainly on payment
and finance activities

solutions to corporate
customers

Finance

Average overtime hours per monthfor 23 years
since October 1996
（ Continuously）Intellectual capital2019 Apr. Earn points with an increase in class rank; launched Saison Classe, a newservice that offers user class-based benefits according to usage results

P20

Jun. Supporting the management of Post Office Club, a nationwide
membership service run by JAPAN POST Co., Ltd.
Commissioned to undertake various activities including the developmentof membership management system and administration of call centers

P22

Jun. In collaboration with Japan’s Central Federation of Societies of Commerceand Industry, supported the transition to cashless transactions by small- andmedium-sized business operators
Sep. Entered into a capital and business alliance with Daiwa Securities Group Inc.
Oct. Issued freee Saison Platinum Business American Express® cards; built a credit
model using corporate financial and transaction data

P24

Global business

Oct. Began engaging in digital marketing business activities in India
Nov. Launched Saison Cardless Payment, a smartphone-based instant sign-up andinstant use service
Nov. Started providing Saison Pocket, a smartphone securities service
Dec. Ideal new business card for small- and medium-sized enterprises andsole-proprietors

Innovation
イノベーション

Industry-leading membership andcustomer baseBusiness development
leveraging independent
non-bank activities

Total cardholders▶

Number of stores/organizations
with affiliate cards issued to▶

Around 250

Branches in Japan ▶ 10;
Overseas branches▶ 9 countries

Started recruiting Saison Cobalt Business American Express® business cards

Financial capital

Framework Underpinning Corporate Value Creation

Increase Group-wide earnings¥52.2 billion

Consolidated business income (IFRS)
Issuance of super long-term (20-year) bondMarketing network focusing mainly
on Japan and ASEAN
Around 37 million (consolidated)

12%
26%
69%
13.1 days
72.9%
10.2 hours

P18

Finance business

GlobalAverage number of paid leave days approved
Ratio of paid leave used

Digital marketing

Credit rating▶R&I A+

Social capital

Around 75%

Ratio of female managers
General manager

Asset management business

Customer database of around37 million (consolidated) members

Workstyle reform

Creating a comfortable environment by promoting diversity

Section head

Solution

Investment

Founded in 1951

Sound financial baseContinued progress
toward diversity

Human capital

Payment business

Solution business

Founding▶69 years

Financial capitalContinued transition
to a cashless society(40% in 2025)

Ratio of female employees

members lead a

Number of employees▶

Global economic
growth led mainly by
Asia

Value Created
Operating across six business domains
in a bid to improve customer QOL

Scale
スケール

Industry-leading
membership andtransaction balance

Declining population

Rapid development
of digital technology

Credit Saison’s Business Model

Human capital
Diverse human resources including
female employees who play anactive role

Declining birthrate
and aging population

Sustainability
Adept at increasing
members’ LTV*LTV : Life Time Value

Number of stores/
organizations with corporate card andcards for SMEs issued▶

Challenging ourselves to be a financecompany advancing with customers for
50 yearsStrengthening engagement between the
Company and its employees by promoting
diversity

Medium-term Management Plan

Realizing diversity

Jun. 2017 ¥10.0 billion(Card company first)

Apr. 2018 ¥15.0 billion
Apr. 2019 ¥12.0 billion

Social and Related CapitalStrengthening corporate governanceCorporate governanceRisk capital management through the
optimal allocation of capital

Donations through Eikyufumetsu Points

Financial and capital policies

Overseas expansion

Around 50,000 companies

8

9

Cumulative total ¥0.6 billion

Started digital lending business activities inIndia through Kisetsu Saison Finance (India)
Private Limited in October 2019

Corporate
Data

VisionVisionRecap of Previous Medium-term Management Plan

Numerical
Targets

Facing challenges of new business models
Expansion of stock business and fee business

FY2015 (fiscal year ended March 2016): Consolidated ordinary income
FY2018:60.0 billion (JGAAP)

New
Midterm
Business
VisionNeo Finance Company in Asia

MissionStatement

QR code payment

Collaboration with partners’ apps

Providing house card functions integrated withalliance partner's customer strategy, expanding
customer base through settlement services

Debit top-up

Numerical
Targets
October 2016

July 2018

January 2019

Finance operating assets (including off-balance)
FY2015:

Approximately

FY2018:

Approx. ¥1 trillion

Approx. ¥1.8 trillion

doubleBecoming a finance company advancing with customers
for 50 years
Providing peace of mind and discovering potentials in money

Full Migration to Associated Core System (Expansion of settlement platforms and Finance Business)
Contactless payments

Financial
Information—Three years toward transformation and renewed growth utilizing these functions—

Neo Finance Company in Asia Realizing innovation and changing business models¥43.8 billion (JGAAP)

Corporate
Governance

New Medium-term Management Plan (FY2019–FY2021)—Three years spent to complete construction of the foundations toward our renewed growth strategies—

Vision to 2018

Sustainability

New Medium-term Management Plan

Previous Medium-term Management Plan (FY2016–FY2018)

Basic
PolicyStrategy

Utilizing know-how from Japan, expand financial
services in high-potential emerging markets in
Asia

Consolidated business income (≒ consolidated ordinary income)
FY2018¥52.2 billion (IFRS)FY2021¥60.0 billion (IFRS)

Regarding FY2019 (consolidated business income target ¥42.5 billion) as lowest point,
work toward returning to a growth trajectory over the next three years

Our Aims for the New Medium-term Management Plan
Ⅰ Growth strategies and structural reform in the payment business (Credit Service Segment)
1 Expansion of shopping transaction volumes (BtoC field)

Expansion of global business into more countries

2 Expansion of shopping transaction volumes (BtoB field)
FY2015

Five countries（

China, Vietnam, Indonesia,
Singapore, Cambodia

Approximately

FY2018

doubleNine countries）（

India,Thailand,
Myanmar, Philippines）

Payment

Solution

Payment Business

Solution Business

Investment

Digital Marketing

Asset Management Business

Digital Marketing

3 Expansion of shopping revolving/cash advance business
4 Creation of new businesses and enhancement of digital marketing

Ⅱ Further expansion of finance business as a non-bank (Lease & Finance Segment)

Numerical Results (JGAAP)

1 Strengthening of relationships with partners and expansion of new alliances
FY2015
Consolidated ordinary income¥43.8 billion

FY2018
Consolidated ordinary income¥54.1 billion

Growth rate

24%＋

Ⅲ Expanding the earnings base of global business with a view to the future (Global Business)
1 Transition from “sowing stage” to “harvesting stage” in countries where we have operations

10

FinanceFinance Business

11

GlobalGlobal BusinessCorporate
Data

VisionVision

New Medium-term Management Plan

Financial
Information

Six business domains to assist in improving customers’ QOL

Further acceleration of “revival of card business” and “transformation to a general non-bank”
GlobalCorporate
Governance

Sustainability

Product Lineup Compatible with Quality of Life (QOL)

Profit Structure Reform

Payment

Strategy

Lease

Finance

FY2008

Real estate-related

Finance

Payment Business

Asset Management Business

Finance Business

Solution

Digital Marketing

GlobalSolution Business

Digital Marketing

Global Business

FY2021FY2018Business Income

Business Income

¥34.5

¥52.2

¥60.0

Providing house card functions integrated with affiliated partners’ customer strategies
and expanding our customer base through settlement services(IFRS) future image(IFRS)

billionbillionbillionInvestment

Entertainment

Operating
Revenue(JGAAP)

Payment

Diverse Lineup of Money Services for Customers (Individual/Company)

Cross-sectional Approach Based on Customer Needs and Life Cycles

Payment

Finance

Payment Business

Finance BusinessHouseholdpurchase/leasing

Shopping

By using credit cards with long service lives as touchpoints,
we endeavored to maximize lifetime value (LTV)by cross-selling based on customers’ life cycle and transaction data

Real estatetransactions

Borrowing

Remittances

Credit card
Prepaid card
Rent guarantee

Investment trust
Revolving/
cash advance Insurance Furusato donation
Card rank up
Multipurpose loan

Automobile
insurance
Asset formationloans

Flat 35 loans
Revolving/
cash advanceTemporary increase/installment

HealthDementia prevention
Renovation loan

Real estate
secured loan
House cleaning

Renovations

Financialarrangements
Purchasing

Savings

Investment
Asset
management

Settlement ofexpenses
Operational efficiency

IndividualCollege

Start
work

Marriage

TravelRaisingchildren

Car

House

MovingNursingRenovation

Inheritance

Medicalcare

18 years old

Lease & rental
Cards for sole
proprietor and SMEs
(Business AMEX)

Investment

Solution
Solution Business

WelfareInheritance

AssetManagement Business
資産運用ビジネス

70 years old

Financing
Merchant stores /Individual article installment
Business funding

Point Mall
Advertising
Privileged affiliatedstoresCorporate card
INVOICE(billing service)

Money transfer
Payment agency service
Advance salary
payment service

Corporate card
ConcurSansanReal estate
financing

Life events (start work,
marriage, raising children...)Corporate cycle(foundation, growth/maturity, transformation)

GlobalDigital Marketing

Global Business

Digital Marketing

Expand sales of financial product through customer-oriented,
cross-sectional sales between businesses

Corporate

Utilizing know-how from Japan, expand financial services inhigh-potential emerging markets in Asia
Foundation

GrowthMaturity

12

Transformation

13

Corporate
Data

Strategy

VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Payment Business
Expanding the customer base through a broad-based alliance network
Credit Saison is developing alliances to advance customer convenience and meet the needs of its diverse
range of partners. In addition to credit cards, we are working to diversify payment services that contribute to
the elimination of the cash market, including prepaid cards and smartphone-based payment systems, all withthe aim of realizing a safe, secure, and convenient cashless society.

Background on the payment business
which methods will become mainstream. It is clear thatsmartphones are being increasingly used as payment
devices. Due to the proliferation of payment service
providers, it is now possible for consumers to select the
optimal payment method in terms of convenience,
including speed and ease of use, and of discount rate at
the time of purchase. This has contributed to an ongoingincrease in the use of payment methods other than plastic
cards, especially among younger consumers.

The credit card payment ratio in Japan is about 20%,
which is rather low when compared with the developed
economies overseas. However, the government throughmeasures centered on a national strategy aims to improvethat ratio to 40% by 2025. Payment methods are becoming increasingly diversified, with businesses with
substantial customer bases, including in the retail sector,
linking smartphone payments to payment systems suchas credit cards, and introducing contactless and QR code
payment systems. Amid such an environment, it is unclear

For many years we have operated a payment businesspayment services in the digital age. In line with customer

service that offers the strength of “immediate/instant carddemands to be able to immediately use credit card

issuance” thereby providing our customers with added

services without having to wait for delivery of the actual

value and benefits immediately after they apply for a card

card after applying, we launched the Saison Cardlessat a partner company, including at all PARCO and Mitsui

Payment service in November 2019. While we previously

Fudosan commercial facilities. We believe it important tooffered immediate use at partner stores that used partner

provide this “immediate/instant card issuance service” in aapps, further development contributed to the creation of amanner tailored to the needs of today’s customers, andnew payment service in which we issued a virtual

focus on simplifying card introductions to more flexibly

smartphone credit card (with card information visible

provide this service.

through an app), that allowed its immediate use,

We are promoting the construction of an all-in-one smart-regardless of location, including at online stores and brick-phone payment service as part of our goal of providing

and-mortar outlets.

Medium-to long-term initiatives

Background on the shift to a cashless society

Point

Key issues and solutions

To not only adapt to a cashless society but also toof following, expand its service network for members toreceive discounts and preferential treatment from various

and improve active member unit prices, Saison Card will,

affiliated stores.

1

2

3

increase active members over the medium-to long-term

Consumer rebate businesses andthe consumption tax rate hike

The Tokyo Olympics

The development of APIs in
Japan’s banksin pursuing a strategy which no other company is capable

In line with the hike in the consumption tax
rate, the Japanese government is promoting a cashless society as part of its national
strategy. The shift to a cashless society is
being advanced through support for the
introduction of cashless terminals andconsumer rebates on the use of cashless
payment systems.

T h e g o v e r n m e n t ’s n a t i o n a l s t r a t e g y
includes establishing Japan as a touristfriendly country with the world’s mostadvanced environment for card-based
payments. Japan aims to promote thedevelopment of infrastructure allowing the
introduction of contactless (NFC) payment
systems in tourist destinations that are
frequented by overseas visitors.

The development of APIs (application
programming interfaces) allows secure data
sharing between banks and exter nal
operators. The linking of APIs allows
businesses other than financial institutions
to provide highly advanced financial
services.

Examples of services
Saison Cardless Payment

Credit cards

No need to wait for card delivery!

Everything from application to shopping on just your smartphone!

Main indicators

Apply
easily!

Total card
members

Total
number of prepaid
cards issued

Card shoppingtransaction volume

Cashadvances

About
37 million

About
50 million¥4.7885
trillion¥242.9billion(consolidated)

We recognize that competition in cashless systems is centered not only in the establishment of cashless systems that replace
cash, but also in refining by as much as possible the value of offering credit, which is a key function of the business andwhere Credit Saison can provide added value that is unique to the company. In the digital environment prevalent today, speed
is just as important as safety and security. As the user experience (UX) that customers expect in the enrollment to issuanceprocess, as well as in payments, evolves, there has been an ongoing acceleration in DX (digital transformation) in regard to
the acquisition of information, the granting of credit, and in payment devices. In the BtoB domain, in addition to paymentsrelated operations, we will continue along with our financing business, to provide a variety of multifaceted solutions aimed atcomprehensively resolving corporate financing issues.

Yoshiaki Miura

Prepaid cards
Cardless Payment

Key New Payment Services (Scheduled for release in the fall of 2020)(1) Issuance of a smartphone-based virtual card
(2) Japan’s first numberless plastic card

(Front)Managing Director, Managing Executive Officer General Manager of Payment Business Division

14(Back)

Numberless plastic card face image

15

Corporate
Data

Strategy

VisionStrategy

Corporate
Governance

Sustainability

Financial
Information

Solution Business
Providing optimal business support solutions, realizing a better society
The labor market in Japan is now facing a number of challenges, including a worker shortage, as well as how
best to improve productivity per person, enact workstyle reforms, and achieve a better work-life balanceamong employees. Amid such an environment, we are leveraging the experience gained over many years in
the credit card business, our customer base of about 37 million (consolidated) users, and a rich variety ofalliance partners to promote enhanced efficiency in back-office operations and a shift toward cashless
operations in the corporate market in order to create a better society and fuller lives for all workers.

Main indicators

Corporate payment market in Japan

Companies
issued corporate
and SME cards

Annualtransaction
volume

About

About
¥700.0 billion

50,000
Solution services offered by Credit Saison

Streamlining expense
settlement operations

The decline in the size of the working population in recent years has made it vital forcompanies to improve productivity and reduce operations. In addition to the issuance ofcredit cards, Credit Saison works with our partner organizations providing expense
reporting systems to streamline operations in this field and bolster corporate governance.

Improving cash flow

There are a number of reasons for companies to improve cash flow, including to secure
funds for business investment, capex, and operating capital. Credit Saison’s businessfunding service is Japan’s first service allowing affiliated stores to acquire future
receivables. We also provide receivables purchasing services and solutions in thecorporate payments domain.

Support in establishingcashless systems

Using our accumulated
knowledge to provide
business support

The Ministry of Economy Trade and Industry (METI) has released a “Cashless Vision”
calling for a cashless settlement rate of 40% by 2025. With the goal of supporting thedevelopment of a cashless society, we are providing support in establishing cashlesssystems that improve business productivity and enhance convenience for consumers.

Companies are facing a wide range of challenges, including in recruiting, increasing sales,
and improving efficiency in operations. Credit Saison offers a number of services, mainly inthe field of payments, though these services are not limited to traditional payment services
and include payment services that are tailored to current trends.

16

About
¥917
trillion

Annualtotal value ofcorporate payments¥920
trillionand small business owners using freee’s cloud-based
accounting software the “freee Saison Platinum American
Express ® Card,” which uses a credit model based on
corporate financial and transaction data.

With the aim of resolving corporate challenges, Credit
Saison provides solutions services that are tailored to thesize and needs of a given company. In line with our goal ofpromoting cashless systems in the BtoB domain, we
partnered with freee to begin issuing to sole proprietors

Examples of services
Streamlining expenses settlement operations

Cashless support

Improving cash flow

Business support

Medium- to long-term initiatives
through the construction of an original credit model based ontransaction history (including transaction volume and content)
and the creation of an ID for all businesses within a given
company.

We are working to build a cross-business platform in order tocreate solution proposals that better meet the needs of ourcustomers. Our goal is to improve the sophistication of oursolutions business, including by providing timely andappropriate corporate financing and lending proposals■Cross-business corporation platform

Money card

Director, Executive Officer In charge of Business Solution Dept.

About
¥3
trillion

Key issues and solutions

Cloud-based accounting

Shunji Ashikaga

By non-card
payments*Source: Credit Saison estimates based on the VISA Worldwide “Japan’s
corporate market and Visa strategy” report and other sources

Expense settlement system

The Company’s Medium-term Management Plan focuses in particular on expanding card shopping transaction volume in the
BtoB domain. Leveraging strengths such as a wide variety of business partners, a customer base of about 37 million
individuals, and experience in the credit card business built up over many years, we continue to promote a cashless shift in
the corporate market and enhanced efficiency in back-office operations.
Our goal for the future is to achieve the integrated management of corporate information through the use of affiliated storesand leasing contracts. We will construct our own credit model based on a company’s transaction history with us, and use it in
future corporate financing and lending activities.

By cardpayments

Corporate cards

Funding
Business card

Payment statements (WEB)Sole
proprietor

Large
corporations

Affiliated stores withpreferential treatment

CorporatecommonIDs
Corporate card

Transfer services

Leasing and financing services
Business matching

ConcurSmall- andmedium-sizedenterprises
Advanced Pay

17

Cloudsign

Employees working at companies
Entering the “toC” domain

Cards for individuals

Loans

Insurance

Money transfers

Corporate
Data

Strategy

VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Asset Management Business Investment
Supporting customers’ first steps in investment for their 100-year lives
Using a credit card with a long service life as a touch point by which to remain side by side with the life
events of its customers, this business is supporting the first steps members take in asset formation. We
would like to raise asset formation literacy through a service that allows members to experience long-term
investment with ease. We also believe that that this feature will stimulate interest in financial products from awide demographic, including among the young and women raising children, and contribute to the sounddevelopment of the financial market as a whole.
In the years to come, we will support asset formation that is tailored to each customer by providing a variety
of investment-related solutions.

Background to asset management business
Asset Management Service-Related History

In December 2016, we launched our “Point Investment
Services” ahead of other companies in the industry. The
number of users has reached about 500,000 in the three
years or so since the service started, and the service has
been supported by so many customers that it appears in the
top ranking of Eikyufumetsu Points exchanges. This service
allows customers to simulate the experience of asset
management without the hassle of opening a securities
account. One of the features of this service is that it is often
used by young people who are new to investing, which they
had previously thought to be far beyond their means. We
believe that having them experience long-term investment,
while enjoying the added bonus of points, will lead to actual
investments from customers.

2016 December Started to offer “Point Investment Services”
2018 March Established investment platform,“Investment Accounts”
Launched new point investment service
June Patent acquired for Point Investment

Services (Patent No. 6357521)
2019 November Started to offer “Seven Pocket” smartphone

securities services“Point investment service” course list
Japanese Equities Index(TOPIX) Course
This course is linked to the TSE
stock index, thereby enabling theexperience of investment whiledeveloping a feel for the state of theJapanese economy.

Main Indicators

Eikyufumetsu Points
Point investment
Point Investment
Services

Assets under management
in long-term asset
formation funds

500,000 users
About ¥1billion invested
About

About
¥300 billion

Key issues and solutions
On the other hand, the reality is that, when investment
beginners begin investing, there are many who think theprocess is “scary” or “troublesome,” or that they will notunderstand. We released “Saison Pocket” in November 2019
to solve these problems and realize investment that is“customer friendly,” “simple,” and “easy to understand.”Customers are able to open securities accounts following
easy procedures and start amassing investment trusts andstocks by card payments. Purchases by means of Eikyufumetsu Points are also possible, and we will support customers’ smooth transitions to real investments.

The Japanese social security system is beset with a variety
of problems. In particular, as the future of the pension system
becomes increasingly uncertain, it is becoming common tothink that asset formation for the future will be based on
individuals taking responsibility for themselves.
Recently, the “¥20 million needed for retirement issue” hasbecome a hot topic in Japan, and interest in asset formation
has increased around the world. Also in Japan, there has
certainly been heightened interest in investment, partly due
to institutional support from government, such as the
Tsumitate NISA tax incentive system and iDeCo pension.

Features of Saison Pocket

U.S. Equities Index (VOO) Course

Active Course

This course is linked to the stock index of 500
major stocks (large-cap stocks) on the U.S. market,
thereby enabling the experience of investment whiledeveloping a feel for the state of the world economy,in which there are many global companies.

This course aims for active gains focusedon foreign stocks and bonds.

Balanced Course

Asset Formation Expert Course

Global Balanced Course

This course is geared toward stable
investment operation mainly indomestic bonds.

This course invests in equities around the worldfrom a long-term perspective. Customers are able
to experience diversified investment in selectedcompanies around the world.

This course invests in world stocks andbonds. By investing even in bonds withmoderate price movements, customers canexperience risk-reducing investment.

Individual Stock Course
This is a course on which the points increase and decrease in accordance with actual stock prices. Stock points exchanged from Eikyufumetsu Points
increase or decrease in accordance with the movements in the stock prices of real companies.

Said to be a service geared toward the affluent segment, asset formation is likely considered by most customers to beirrelevant to their own lives. At Credit Saison, we are working to enhance the asset management business domain by listening
to questions posed by customers, namely, “How can I nurture the growth of my own money?” and “Just how can I manage
my critical assets?” Saison Asset Management Co., Ltd., a Saison Group company, had grown to ¥300 billion in assets undermanagement as of February 2020, and in the third year of Point Investment Services, which Saison Card holding members
can begin easily, the number of users reached the 500 thousand level. We are delighted to continue offering services that
support our customers, and that manage the assets entrusted to us in a safe and easy-to-understand manner.

Kaori Shimada

Executive Officer In charge of Asset Management Dept.

18

Easy to understand! With two funds,
investment trusts do not cause confusion

First-in-industry service!
Enables amassing of stocks by card payments

Managed by Saison Asset Management, there are two types ofinvestment trusts from which to choose: Saison Vanguard Global
Balanced Fund and Saison Asset Formation Master Fund. With Saisonand UC card payments, customers can start amassing investment trusts
from as little as ¥1,000 a month.

Customers can amass listed companies’ stocks for a specified pricestarting at ¥5,000 every month, payable by card. They can choose from
more than 100 brands that have a wide lineup from various industries.

Customer friendly! Peace of mind as customers canmake purchases with Eikyufumetsu Points

Simple!
Easy account opening by linking card information

Using Eikyufumetsu Points, customers can amass investment trusts andstocks and purchase investment trusts on a case-by-case basis. Recommended for those who are confused about actually investing with money
and want to make effective use of their Eikyufumetsu Points.

If customers log in with an ID and password via the Saison Card/UC Card
“Saison Portal” or “UC Portal” apps or the “Net Answer” and “At You
Net” internet services, card information will be linked automatically. If
customers have their smartphone and necessary identity verification
documents to hand, they can open an account smoothly.

Medium- to long-term initiatives
platforms that can support the asset formation of all Saison
Card and UC Card members, including those who alreadyhave experience of investing and the affluent segment.

The “Saison Pocket” was launched to target those new toinvesting, who make up the majority of cardholding
members. In the years to come, we will continue to build

19

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VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Digital Marketing
Realizing an Ever-greater Quality of Life for Customers
by Utilizing Digital Technology

Main Indicators

Being involved in any number of financial milestones that come about in the course of our customers’ lives,
we find it our mission to help realize a greater quality of life (QOL) for our customers by proposing optimal
services. In a situation in which digital technology is rapidly evolving, we are working with great vigor to
implement new technologies. Making use of digital technologies, we conduct digital analyses and digitalmarketing, and this more than ever enables us to provide customers with high-quality content at precisely
the right time. The result is to maximize the customer’s experience and customer value.

Digital Marketing at Credit Saison

Registered
Internet service
Net Answer and
At U Net members

No. of downloadsof the Saison Portaland UC Portal
smartphone apps

16 million

6.5 millionOpeninnovation initiatives
Joint operation of the open
innovation R&D organization,
DG LABKey issues and solutions

Modern society has been changing in recent years. No
longer is it “more,” but rather “better,” and it is not a“lifestyle satisfied by material wealth,” but in demand is a“lifestyle in which every day is fulfilling, and emotionallyand physically satisfying.” To bring our customers’ QOL toa level that is higher than at present, digital technology will
be used to deliver “new information” and “information thatpeople want to know” at the appropriate time and in atimely manner. We believe that enriching customers’
lifestyles in this way will lead to improvements in their
QOL.

“Offering high-quality
contents at precisely
the right time”
Customers’ Experiences
and Maximizing
Customer Value

Cross-selling andup-selling of various
Company services inline with the life eventsof customers.

it comes to leveraging big data, it’s all about analyzing
customer information. That is why the Company isdeveloping a concierge service in line with customer needs
and offering services suited to major life events. In terms oftechnology, we are actively collaborating through an open
innovation R&D organization while putting to use our own
internal systems to the maximum extent.

The advent of AI, blockchain and other technologies isdriving change at a dramatic pace in all aspects of theCompany’s business, whether it be with our products, sales
or competition. We believe it is important to “face up to
concerns from the perspective and feelings of a typicalindividual, including one’s own self, and then to imagine andcreate services that will please customers.” Moreover, when

Creating new added
value by utilizing digitalcontents intended torealize a greater qualityof life for customers

Examples of services
Effectively andsmoothly provide“high-quality
content” with digitaltechnology

Marketing automation (MA)

Saison Classe

Giving customers the information that meets their needs means
providing information at the optimal timing through automateddistribution of high-quality contents, obtained without a middleman,
and that links customers’ various settlement and behavioral data. Thisis how we realize an enhanced customer experience with quality
service.

Targeting card members who use Saison Portal and
UC Portal smartphone apps for Saison Card and UC
Card, we introduced a service whereby a customer
can earn points by raising their ranking in accordancewith their usage records. Class can be changed based on score, andusing a smartphone app makes it easy to obtain preferential usage andto confirm information on special offers.

STOREE SAISON

Saison Cardless Payment“STOREE SAISON,” a store that accepts Eikyufumetsu Points, is a media-type mail order site that introduces products
and experiences, both in and outside of Japan, to enrich the daily livesof customers. It does not merely introduce an item, but also tells thestory of how that item came about, the struggles the item’s creator
faced in its production, as well as their originality and ingenuity andother matters of what the creator of that item was thinking. Moreover, it
conveys recommended ways to enjoy the item, and other information.

We have commenced availability of Saison Cardless Payment, offeredto new members of PARCO Card, an affiliated card, so that they will beable to become Saison Card members promptly, and on any
smartphone. Based upon online safety and security, identity verification
makes it possible to undertake membership processing online, and touse immediately following completion of credit examination. This not
only heightens convenience for customers, but enhances the customer
experience.

Information usage policy
with its customers’ consent, to assist in improving
customer QOL. The Company’s policy in digital marketingis that we will remain in compliance while building ourbusiness.

Appropriately managing the customer information that isreceived into its care from customers based on the
Personal Information Protection Law and other laws, theCompany will effectively utilize the valuable information,

Having adopted a “leading-edge service company” management philosophy, Credit Saison has from the start, taken theinitiative to offer innovative services in the card industry. Today, as DX (digital transformation) is rising in importance, and weare a company that consistently confronts challenges, we are engaging in DX Promotion as a priority management strategy.
Domains driven by digital technology to dramatically alter the customer experience and business streamlining stretch acrossthe Company, starting with credit operations, such as credit examination and issue, usage, invoicing, development, and credit
management, to the marketing domain, consisting of branding, sales promotion, and CRM, and on to organizational activities
to develop new businesses that utilize Company resources and raise internal productivity. Through DX, Credit Saison has set
its sights on providing an outstanding service experience to our card users, partner clients, card affiliated stores and all of ourcustomers.

Kazutoshi Ono

Director, Managing Executive Officer Head of Digital Innovation Division

20

Medium- to long-term initiatives
house. However, even if we are somehow able to lift thedegree of importance that technology has to play, in the end,
what is most important is the customer. Creating a customer
experience that fully delights and surprises will require theubiquitous use of technology. We will undertake activities
with the aim of becoming just such a company.

As people’s lifestyles have changed to revolve around theirsmartphones, the business environment in which theCompany operates is also transforming at a breathtaking
pace on many fronts, including products, sales andcompetition. To respond swiftly and precisely to suchchanges, we have begun to hire and nurture our own
engineers so as to be able to bring digital technologies in21

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Financial
Information

Finance Business
Utilizing its sales capabilities and nationwide network built up in the cardbusiness, Credit Saison provides finance services tailored to market needs
Having launched our lease business in 1982 and credit guarantee business in 1985, for more than 30 years
we have continued to explore the needs of our partners and affiliates, developing products and improving
those operations that come with each demand. We have also steadily expanded our asset balance by
providing financial services in tune with market needs and strengthening relationships with our partners andaffiliates based on heavily customer-oriented products, such as the launching of our Flat 35 loans in 2009 andSaison Asset Formation Loans in 2013.

Credit Saison’s finance business domains
Lease &
Rental Business

Credit Guarantee
Business

Primarily in the area of credit guarantees for unsecured personal loans that do not set conditions
on the use of funds, we work closely with partner financial institutions, while supporting thepromotion of loans to individuals.

Flat 35 Loans andRent Guarantee

Offering Flat 35 loans (purchase-type loans and guarantee-type loans), we are also developing
lifestyle creation financial services, from rental to home purchase.

Real Estate
Finance

We are expanding our loan portfolio with loans provided to individuals to purchase real estate forinvestment purposes (Saison Asset Formation Loans), loans for renovations, loans for project
financing offered to real estate business operators (Real Estate Mortgage Loans) and real estate
non-recourse loans.

Main Indicators¥308.5billionCredit Guarantee
Balance of
Receivables¥346.6billionAsset Formation
Loan Balance of
Receivables¥506.2billionCredit Saison is expanding its finance business based on the three pillars of “Lease & Rental,” “Credit Guarantee,” and “Other
Finance Products.” For the Lease & Rental pillar, we are forging ahead with sales, mainly for OA equipment and kitchenequipment that is in line with the capital investment plans of businesses. For the Credit Guarantee pillar, we specialize in thearea of credit guarantees for unsecured personal loans that do not set conditions on the use of funds, working through partner
financial institutions, with which we collaborate closely in terms of both marketing and credit controls as we strive to acquire
new business. For the Other Finance Products pillar, we are offering unique products and services tailored to customer
needs—led by Flat 35 loans, asset formation loans and rent guarantees—while endeavoring to accumulate high-quality assets
by building on strengthened relationships with our partners and affiliates. Moving forward, we will continue to utilize our sales
capabilities and nationwide network built up in the card business, and work to put in place a business foundation as a nonbank resilient to environmental changes and with diverse sources of revenue through strengthened relationships with partnercompanies and the provision of finance services tailored to market needs.

Tatsunari Okamoto Managing Director, Managing Executive Officer Head of Finance Division22

business opportunities but also, in social terms, requiring
improvements in QOL for everyone. In addressing suchdiverse finance needs, Credit Saison will bring both its
intellectual and human capital to bear as the Company
works to create, through our finance business, a society inwhich companies can grow over the long-term andeveryone can live with peace of mind.

Finance needs are evolving in today’s “era of a 100-year
life,” with its accelerating trend toward a declining birthrate and aging population.
Responding to capital investments that addressenvironmental and social issues—such as expanding
services for foreign-national residents and senior citizens
as new segments and eco and security products to realizea safe and sustainable society—is not only creating new

A service lineup that addresses diverse finance needs

We are forging ahead with finance leases, business-use installment sales, and rentals, especiallyfor office automation (OA) equipment and LED lighting that align with the capital investment plansof businesses.

Lease & Rental
Balance of
Receivables

Key issues and solutions

Under the concept of its lifestyle creation
financial services, the Company is developing a broad range of products that give
close consideration to the lifecycles of ourcustomers, and that contribute to improvements in QOL. We provide products that
accommodate rental contracts and homepurchases, and all their associated costs.
Moreover, we respond to home demand thatis the foundation of individual customer
lifestyles, and also assist with asset formation
through real estate, thus supporting with thecreation of an affluent daily life.

Credit Guarantees for
Unsecured Personal Loans
That Do Not Set Conditions on
the Use of Funds

Partnerfinancial
institutions
Individual
customers
Rent guaranteeHome purchase finance
Purchase financing forreal estate for investment
Renovation financing

Regional
authorities
Regional
revitalization

Small-to mid-sizedcompanies andstart-up ventures

Lease
Business-use
installment sales
RentalBusiness matching

Becoming a finance company
advancing with customers for
50 years

In the credit guarantee business, we undertake guarantees
for unsecured loans that do not set conditions on use offunds provided by our partner financial institutions forindividuals to put customers’ minds at ease. In addition, we
also pay close attention to Japan’s regions and the trading
partners of our partner financial institutions nationwide, andby accumulating information on the characteristics andneeds of those regions are contributing to business matching
and regional revitalization. Specializing in and providing
backup for the capital investments of small- and mid-sizedbusinesses and start-up ventures, our lease & rental businessunderpins sustainable business growth through its handlingof environmental products that work to address businesstrends. As a way to tackle issues internally, we aim to expand
profits by undertaking activities that streamline RPA and AI
and that continuously mitigate risk. Furthermore, we seek toexpand the credit domain through risk analysis, as well as tocreate new business opportunities and enhanced services.

Medium-to long-term initiatives
In addition, Credit Saison will develop new products basedon proprietary big data-driven marketing, and will offer the
new finance services that the times and society demand,
including for senior citizens, foreign national residents, andthe high net-worth segment. While growing profits based ona balance of risk mitigation and tackling new challenges, andfurther advancing the diversification of Company managementthat has driven our progress as a credit card company, weare building a business foundation as a company that will
advance together with our customers for 50 years.

As a leading company in the lease & rental business, we
provide ongoing support to the management of enterprises.
The credit guarantee business provides conventional
individual-focused products, and in addition, endeavors todevelop finance products for small- and mid-sizedbusinesses that will lead to revitalization throughout
Japan, including the country’s regional areas. Keeping aneye on our partner financial institutions, business partners
and other peripheral companies, we aim to create business
opportunities by leveraging our nationwide network.

23

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Sustainability

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Governance

Financial
Information

Global BusinessRealizing financial inclusionin the spirit of equal partnership with local companies

Business strategies

Those who are unable to access bank financial services (the unbanked segment) account for the majority of
the Asian population. Focusing on the financial services needs of such people, the Credit Saison Group
collaborates with local companies while providing finance services and financial solutions. We will contributeto regional economic development in the future by providing financial business tailored to each country.

Status of overseas business development
Myanmar
Undertaking the business-license application
procedures required for the launch of the
microfinance business(as of March 2020)

Approaches from boththe traditional domains and Fintech

China

Thailand
SIAM SAISON Co., Ltd.

Credit Saison Corporation (Shanghai) Limited

・Established November 2018 (Investment
ratio 40%)
・Digital credit granting / payment business・Established March 2005 (Investment
ratio 100%)
・Consulting business

Areas where market
entry completed

India

Areas we areconsidering entering

Kisetsu Saison Finance(India) Private Limited

Strategic targets are those who areunable to receive financial services from banks(Traditional)(Local partners [JVs])●Microfinancing ●Loans●Credit cards●Articles●Local leading companies /conglomerates●Multinational companies●Japanese companies(Fintech)(IT)(Strategic Investments)●Lending/P2P●Mobile payments
●EC

●KYC
●AI credit granting●Scoring●Overseas corporate venture capital (CVC)●Leading FinTech companies●IT start-ups

High income(Targets)Bankaccount
holders

Unbankedsegment
Middle class
Small- andmedium-sizedenterprises

Those
withoutbankaccounts(CS Value)・Established June 2018 (Investment
ratio 99.99%)
・Digital lending business

Philippines
Undertaking preparations for the launchof the loan business (as of March 2020)

TaiwanBangladesh

Cambodia

Singapore
Credit Saison Asia Pacific Pte. Ltd.

・Established May 2014 (Investment
ratio 100%)
・Overseas business development
and integrated management

Idemitsu Saison
Microfinance(Cambodia) Plc.

Malaysia

Idemitsu Saison
Microfinance(Cambodia) Plc.

・Established August 2015
(Subsidiary of an affiliated company inwhich Credit Saison holds a 50% stake)・Loan and installment payments business

Grab Financial Services
Asia Inc.

・Established December 2017
・Digital lending businessIndonesia
Saison Capital Pte. Ltd.

・Established June 2019
(Investment ratio 100%)・Investment and financing foroverseas start-ups

In response to rapid changes in the environment as well as
growth in many Asian countries, we are taking on thechallenge of developing new business models in addition
to our operations in more traditional business domains.
Maintaining our commitment to trust and cooperation with
our partners as well as a “customer-first” attitude, we aim
to provide financing services that meet the local needs ofthe unbanked segment by investing in and collaboratingwith local companies, including those operating in the
FinTech domain.

Amid expectations for an ongoing expansion in both
population and GDP, we expect significant growth in Asia
moving forward, although the fact that relatively few
people in the region have bank accounts indicates that thecurrent level of financial services being offer may not be
sufficient to meet the needs of all the people. Given these
conditions, the leapfrog effect brought on by the spread ofsmartphones and rapid progress of digitalization iscontributing to new services being developed using thelatest in cutting-edge technologies.

Vietnam

中国上海

September2015有限公司設立(Investment ratio 70%)
・Established
世尊商務諮詢
（上海）
・Digital lending business /Leasing business2014年 5月 シンガポールに現地法人を設立

・Established May 2015 (Investment ratio 49%)・Retail finance business2015年 5月 ベトナムにHD Bankと資本業務提携
Credit Saison’s global businessdates backto 2005,
when the Company
entered the market in Shanghai, China. In 2011, weHD SAISON
FinanceCompanyLtd. 設立
started market research in Southeast Asia, which is forming the core of our current business, and as of 2019 have entered
9月 インドネシアにファイナンス事業会社
nine countries, including affiliated companies and investment destinations as well as those yet to be unannounced. It isthought that the rapidly PT.
growing,
middle-classin Asian countries will utilize state-of-the-art financial
SaisonModern unbanked
Finance segment
設立
services centered on smartphones in using easier and more seamless services. Irrespective of the format, the Company will
2016年 1月 当社出資先 出光クレジット
work with a variety of local partners to develop business to understand the markets, culture and business practices of those
出光セゾンマイクロファイナンス
（カンボジア）有限会社設立countries.

2017年 12月 Grab Holdings Inc. と資本業務提携

Katsumi Mizuno

CapitalJapanese brandKey issues and solutions
The duplication and diversification of businesses

Strengthening the corporate governance system

In addition to a steady expansion in our businesses, centered mainly on
existing businesses in the nine countries in which we already operate,
we are advancing initiatives such as collaboration with multinational
companies as well as the development of networks, mobile payment
systems, AI credit granting, and digital scoring operations in order tofurther complement the strengthening of our businesses in eachcountry.

Expanding our business and moving into new countries requires arobust support system. In addition to upgrading the management
system for each operating company, we are creating a mutual checking
system involving business supervision and monitoring from the Tokyo
headquarters as well as the Singapore subsidiary in its capacity as aregional headquarters.

Medium- to long-term initiatives
Business model
diversification

Expanding the geographic
scope of our business

Globalization inhuman resources

In addition to direct investment, we are also
developing a variety of business andcollaborative models, including those
focused on corporate venture capital
investment and business support throughthe creation of financing schemes.

We are focused on expanding the geographic
scope of our operations, and are considering
adding businesses in Africa and South America to those already in place in Southeast
Asia and South Asia.

We believe a diversity of values to be indispensable to the development of our businessin areas with different cultures and businesspractices. In addition to the active recruitmentof local employees, we will continue to promote the appointment of executive candidates regardless of whether or not they are
Japanese.

Grab Financial Services Asia Inc. 設立

Managing Director, Managing Executive Officer Head of Global Business Division

2018年 11月 タイにサイアム・セメント・グループ、三井物産と提携
SIAM SAISON Co., Ltd. 設立合意
2019年 6月 海外のスタートアップ企業への投融資を強化
24
Saison Capital Pte. Ltd. 設立

Low income

HD SAISON
Finance Company Ltd.

PT. Saison
Modern Finance2005年 10月 海外事業初進出

Trust /
Coexistence25

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Value Co-creation with Stakeholders
Aiming to be a finance company advancing with customers for 50 years-Credit Saison from the perspective of our stakeholders-

Payment BusinessIn order to remain a company on which society depends, we feel it is important to understand what our
stakeholders demand of us and to reflect these demands in our services and business activities.
Moreover, from our perspective, our stakeholders are a critical factor in raising corporate value. We thus feelthat always sincerely accepting their expectations and exacting opinions is essential to our sustained
growth.
As one of the voices of our stakeholders, we offer a message from our business partners.

hey Co., Ltd., Representative
Director and Vice-president
Coiney, Inc., Representative Director

Credit Saison stakeholders

Naoko Samata

Business
partners

Shareholders

Employees

Regional
communities

Customers

with each other that are open and equitable.
Because they also take this stance towardoutside companies like ourselves, they serveas an excellent partner that makes many
quick decisions. Against the backdrop of
this continued, deep partnership, we willproduce significant results along the lines ofpromoting a cashless society in Japan, so I
look forward to working with them in the
future.

Finance Business

Credit Saison
Administrative
agencies

Ever since our first year in business when
we were still located in one room of acondominium and operated with just a few
people, we have had the pleasure of working
with Credit Saison. Although the term open
innovation has come into common use
today, I would like to offer my gratitude to
Credit Saison for being an innovator of thisconcept at the time and for their strong,unwavering support over the seven years
since. The Credit Saison management andemployees maintain very close relationships

Although our connection with Credit Saison
began when they initially approached us uponcommercializing “Saison Asset Formation
Loans,” our relationship has continued tobroaden each year and today includes credit
guarantees for rent and jointly organized
events at the Akagi Nature Park.
I often hear our employees state that the
response and quick footwork to conditions at
hand of all at Credit Saison has been a savior.
I believe this is because Credit Saison has ahighly mobile, flexible, and governance-basedmana gement polic y tha t consider s it
important to be first to go beyond the boundsof a credit card company and to promotebusinesses that utilize digital technology and
ESG management. This is something that I
also feel is important when advancing ourown business, and I feel that this policy has
also become deeply rooted in the employees
as part of their corporate culture.
I look forward to a long-lasting relationshipwith Credit Saison into the future.

FJ Next Co., Ltd.
Chairman, President and CEO

Yukiharu Hida

Messages from business partners

Global Business

Payment Business

Mitsui Fudosan
Retail Management Co., Ltd.
President and Chief Executive Officer

Takehisa Aoyagi

The Mitsui Fudosan Group has had arelationship with Credit Saison over the 20
years since we first issued an affiliate card in
2000. With the number of members now
exceeding 3.5 million, the affiliate card has
become irreplaceable as a critical contact
point that links our customers to LaLaport,
Mitsui Outlet Park, and the other commercial
facilities that we operate. Over the past 20
years, all at Credit Saison have been involved
with our business, and faced many trying
situations and difficult circumstances. Yet(Executive Chairman as of April 2020)26

their employees have always remained
cordial as they tackled these issues and havebuilt these 20 years together with us as true
“partners.” Rapidly responding to thechanges of the times, they had been quick towork on partner card settlements via ourapp. Although our commercial facilities arealso in the midst of major changes in thebusiness environment, I hope that we canboth continue to demonstrate our sharedspirit of undertaking challenges as we build
the next ten and twenty years together.

Gojo & Company, Inc.,
Chief Executive Officer

Taejun ShinUpon working together with Credit Saison, I
investigated their history. Having beenlaunched from the reorganization of Midoriya
Department Stores, I felt that Credit Saison
had nurtured a solid entrepreneurial spirit
throughout its history of honing its wisdomand quick-thinking skills while expanding its
business. All of the employees at Credit
Saison with whom we have worked havebeen extremely charming, possessed of asense of duty, and highly educated.
Yet, at the same time, I am impressed that27

they always remember to be imaginative.
Within this corporate culture, I have strongly
felt the DNA of Seiji Tsutsumi and the spiritof Chairman Rinno as the one who
rejuvenated the company. I am deeply
grateful that Credit Saison accepted our
spirit as a company founded to create theWorld Bank of the private sector and fortheir being the first from Japan to provide
large-scale financing. We ask for theircontinued partnership into the future.

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Commitment to SDGs

We contribute through the everyday
operation of our businesses toresolving problems and move society
forward in ways only Credit Saison
can and aim to create a sustainable
society even more convenient andprosperous than it is today.
Representative, Executive President and COO

Masahiro Yamashita●Operate the Akagi Nature Park
●Reduce paper consumption and CO2

emissions

Basic approach to ESG Management●Realization of a cashless society●Donation by exchanging points and card

payments

Based on our “leading-edge service company” management
philosophy, we contribute through the everyday operation of ourbusinesses to resolving problems and move society forward in ways
only Credit Saison can by leveraging our unique know-how,management resources, and the experiences of each of our employees.
We will create a sustainable society that is even more convenient andprosperous than today’s.

●Education for the Next-Generation and

Financial Education●Support for sporting and cultural activities●Reform working styles

Practice ESG
Management●Establish a nomination andremuneration committee●Strengthen the management

Environment

monitoring system

SDG Initiatives
Contributing to the SDGs for 2030 is one of the major goals of Credit
Saison. Meanwhile, simultaneously creating "Social Value" and"Economic Value" is one of the obligations placed on companies
engaged in global business. In order to fulfill these goals andobligations we are steadily advancing ESG Management.

28

SocialBe a leading-edge
service company

29

GovernanceCorporate
DataSustainability

VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Initiatives for the Development of a Prosperous Society

Based on our “leading-edge service company” management philosophy, we contribute through the everyday
operation of our businesses to resolving problems and moving society forward in ways only Credit Saison canby leveraging our unique know-how, management resources, and the experiences of each of our employees.
Through our efforts we will help to create a sustainable society that is even more convenient and prosperous
that it is today.

Realizing an even more secure, safe, and convenient cashless society
Building a variety of payment schemes

Promoting education for the next-generation and financial education
We have participated in Quest Education, an inquirybased learning program at over 200 schools nationwide
over the past ten years as part of our effort to provide
financial education to students in Japan.
Through these types of activities, employees become
more deeply involved with society in general, which
contributes to their own growth as it supports student
learning.

With the goal of realizing a cashless society, we are addressing the building of a varietyof payment platforms that contribute to enhanced convenience for our customers.
In addition to issuing plastic cards, including credit cards and prepaid cards, our efforts
in recent years have also been focused on next-generation payment systems, including

Credit card

Prepaid card

Smartphone payment

smartphone-based payment systems and QR code systems in cooperation withaffiliated apps.

The appropriate management of personal information
We manage personal information in accordance with laws, regulations and other requirements, including guidelines and industry rules. We have alsoestablished internal corporate rules, and give our employees internal training and compliance-related education. Our efforts to raise awareness of information
management include the use of the “personal information manager” qualification established by the Japan Consumer Credit Association, a qualification that isessentially compulsory for employees who handle personal information at Credit Saison. In terms of handling personal information, we are improving security
through the use of dedicated lines, restricted access, the use of TLS/SSL (transport layer security/secure socket layer) cryptographic communications
technology, and strict controls on entry to/exit from information terminal locations.

SAISON TEACHER on-site classes
With the aim of helping children in the next generation acquire a proper level of financial knowledge and become independent consumers,
Credit Saison offers on-site classes at schoolsa ro u n d t h e c o u n t r y. U n d e r t h e S A I S O NTEACHER Saison Financial Education Program, employees with a wide range of financial
knowledge instruct children in how to makethe most appropriate choices in a cashless society with an overabundance of different payment methods.

In May 2006, Credit Saison was authorized to use the PrivacyMark, a certification given to businesses with appropriate systems for handling personal
information, and we continue our efforts to maintain and enhance the protection level of personal information.

Preventing excess debt

Improving the accuracy of unauthorized use detection (AI)

Understanding the importance of maintaining a balance

We are providing a safe and secure payment environment by improving the accuracy of

between the prevention of “multiple debtors” due to overuse

unauthorized use detection systems that use the latest technologies.

and contributing to economic development through theenrichment of customers' lives, we strive to properly manage
personal information and work to prevent the occurrence of“multiple debtors” through carefully granting credit andconducting appropriate follow-up after credit is given.

Information / cybersecurity

Providing financial services in Asia
We are contributing to theeconomic development
and betterment of local
people’s lives in emerging
economies in Southeast

For online systems storing important customer information,

Asia by providing financial

including the card applications and Net Answers, we use ainfrastructure through tie-

cryptographic communication technology called TLS / SSL toups and mergers withprotect that personal information.

local companies.

With the desire to continue to grow alongside Japan’s nationalsoccer team, we have been a supporting company to the teamsince 2001 and through a sponsorship agreement with the AsianFootball Confederation (AFC) have supported the soccer
community in Asia since 2014. We are also committed to supporting
the dreams of children by providing valuable opportunities that areoutside the realm of normal daily activities for those who will leadthe next generation, including as part of our “High Touch Kids”
program.
Credit Saison since 1999 has been a sponsor of performances inJapan by José Carreras, one of the members of world-renowned
The Three Tenors, and makes donations to and supports theactivities of the José Carreras Leukemia Foundation.
We continue to contribute to society by providing support anddonations to these kinds of sporting and cultural activities.

Donations by exchanging points and card payments
We contribute to local communities and society
through research donations and the promotion ofdisaster recovery assistance through points
exchanges and donations by card. We are also
developing investment simulation services, suchas the points management service, as well as
support in life design and financial education,
including by providing investment opportunities.

Support for sporting and cultural activities

Environment conservation initiatives

Kanagawa Pet Life Fund30

Support for reconstruction of
Shuri Castle in Naha, Okinawa

We are working to reduce paper consumption by promoting online card statements and applications.
We are also promoting paperless operations by using digital counters and accepting 95% of in-person card application on tablet
devices.

31

Corporate
DataSustainability

VisionStrategy

Corporate
Governance

Sustainability

Financial
Information

Promoting Diversity and Inclusion

Director, Executive Officer
General Manager, Processing
Business Division, in chargeof the Strategic Human
Resources Dept.

Credit Saison has before the spread of ideas such as“promoting the careers of women” and “diversity” played an
active role in advancing the roles of women in a variety ofoccupations, and we believe this has contributed to our growth.
We are working to create a system and foster a corporate
culture based on mutual understanding in which not only
women, but all employees from different backgrounds can workin a comfortable atmosphere and to the best of their abilities.

Common HR system for all employees■Abolishes employee classification system and with the exception of certain part-time employees,
establishes all employees as full time while unifying the wage and compensation programs.
System prior to reforms (until September 2017)
General work employees

Indefinite-termMonthly salary

Kazue Yasumori

Temporary employeesWith the goal of becoming a company which is adept at change, we believe it is important to have an organization that is staffed with avariety of employees who have the option of pursuing a variety of careers, and to focus on the activities of each employee and how they
can best contribute.
To that end, we are working to create an organization that can take on challenges and enables all its employees, regardless of theirgender, age, educational history, or personal background, to freely express their opinions and to face challenges.

・Abolishing employee classifications and moving all employees toindefinite-term contracts
・Realizing equal pay for equal work based on role・Bonuses are provided to all employees twice a year
・Unification of all programs, including defined-contribution pension plans
and welfare benefit programs

Indefinite-term

Bonus

Defined-contribution
pension plan

Our thoughts on diversity and inclusion

Currently (from September 16, 2017)

Professional employees

Monthly salary

Bonus

Full-time employees

Indefinite-termMonthly salaryMate employees (part-time employees)

Fixed-term employment

Fixed-term employment

Monthly salary

Hourly wage

■Broadening the scope of available ways to work and working hours to create a more comfortable working environment
We have increased the number of working hour and workstyle options so that each employee can perform to the best of their abilities.
System allowing paid leave to be taken on an hourly basis

number of working hours per day, only a set number of working hours permonth. Employees are able to determine their own working hours withinthat scope and are accordingly better able to harmonize their work lives
with their private lives.

The system allows employees to take paid leave on an hourly basis (up to
five days a year).

Reduced working hours and days

Credit Saison aims for a diversity in which employees
can recognize and make the most of each other’s capabilities
Since the 1980s Credit Saison has actively engaged in the hiring of women. In order to realize the participation of women in a broad rangeof roles and positions, we have continued to listen to the opinions of our employees and enhanced our personnel systems in order tomitigate the number of female employees quitting work or abandoning their careers due to major life events such as marriage or childbirth.
Through many years of improving its systems and building on results, Credit Saison has, even while having in place a range of constraints,
cultivated a corporate culture which accepts, understands, and supports colleagues, both men and women, who aim to balance work withchildcare.

Bonus

Defined-contribution
pension plan

Working remotely

The system allows shorter working hours per day and a reduced number ofworking days per month so that employees can continue their careers by
better balancing their work responsibilities with their life responsibilities,
including in respect to childcare, nursing care, and various other life events.
Employees can shorten their working hours and the number of days
worked not only for childcare and nursing care-related reasons, but also for
self-development.

A system that enables employees to work at home in the same way as in
the office. This allows greater efficiency by greatly reducing commuting andtravel time.

Outside employment
With the goal of broadening the knowledge and promoting the individual
growth of our employees, a system for the development of humanresources that can contribute to society by creating an environment inwhich they can choose from a variety of work styles.

Flextime
The system allows employees to work efficiently without establishing a set

Career support mechanisms
Creating a mechanism to accelerate diversity and inclusion
With the goal of creating an environment and corporate culture that bolsters the potential of each and every employee, in September
2017, we moved to a system based on an employee’s role rather than employment classification (equal pay for equal work) and combined
the defined contribution pension system and welfare benefits system into a common personnel system for all employees. We also
introduced a system allowing flexible workstyles, including work-from-home, flextime, paid leave that can be taken on an hourly basis,and shorter working hours, which are not limited to those using it for childcare or nursing care reasons. As a result, employees can now
choose from a variety of work styles tailored to their individual circumstances.
From 2019, to serve as mechanisms to support the career development of individuals we have, at the organizational level, held humanresource development meetings to focus on development programs for individual employees. We have also introduced one-on-one
meetings—in an effort to create an environment where managers and employees can mutually discuss taking on new challenges withpeace of mind—and career development support that encourages employees to think for themselves, while aiming to foster further growthin both the Company and our employees.
Credit Saison has created an environment in which our employees can better themselves and improve their performance in the workplace.
We intend to promote the further understanding of our systems and mechanisms moving forward, and will work to create an organizationthat allows each employee to choose the most appropriate way to work based on their individual circumstances and accordingly achieve
the maximum results possible.

Focusing mainly on the career development sheet, a support system is in place that allows employees to think about their careers andtake the initiative regarding their future.
The forming of a career planby the individual

Examination of the training anddevelopment plan by the manager

Two-way communication

Independent consideration of one’s
career with a clear understanding ofstructural changes in a company’sbusinesses and shifts in the social
environment

Fully understanding employees’ traits
and characteristics while discussing andformulating plans for the development of
the employee and the growth ofthe organization.

To create an environment in whichchallenges can be faced with peace ofmind, making rules covering
opportunities for employee to manager
consultations

Career development sheet(once a year)

Human resource development meetings
held by the divisions and departments(once a year)

One-on-one meetings(once a month)Thinking about theemployee’s career

Career development sheet

Choice-based training (OFFJT)

Employee growthand organizational
growthFrom the previous career management sheet, we have upgraded content so as to give
more consideration to an employee’s understanding of their current standing, where
they want to be, and what actions and support are necessary to achieve this goal.

Support from a variety of programs to assist employees to learn on their own

Self-education

Taking on
new challenges

32

Professional training (OJT)

Acquiring work skills from on-the-job training with the goal of improving performance

A system allowing
employees to self-report

Employees can state which roles they wish to take on in the career development sheets,
dream challenge applications, and during internal recruitment.

33

Corporate
DataSustainability

VisionStrategy

Sustainability

Corporate
Governance

Key Characteristics

Initiatives Toward an Organization in Which Eachand Every Employee can Demonstrate His or Her Abilities

SWITCH SAISON

Promoting health and productivity management

Credit Saison offers an in-house venture program to quickly make employee’s
ideas a part of the business.
This program was created to encourage a corporate culture that allows
employees to conceive ideas and to found new services that addresschanges in social needs and markets.
All employees are eligible to take part, and the program provides support
through a mentor program in order to commercialize their ideas and enables
the originator to be flexibly reassigned in relation to the adopted proposal.

Adoption/Commercialization■Policies■Specific Activities

Companies comply with mandatory safety considerations.
Final screening
Development period
Secondary screening

In-house experts
are appointed as
mentors who
accompany theoriginator for two
to three months
as they formulatea business plan

Primary screening

Regular health checkups for all employees for the purpose of
employee health management, and the early detection andprevention of diseases. 100% participation rate.

Companies maintain the necessary systems for safety
management. Specifically, companies promote systems fortask environments, work environment management, and healthmanagement while providing education on occupational safety
and health to supervisors and managers as well as employees.

Conduct stress checks, organizational analysis, and provide
feedback to the workplace. Promote measures to improve theworkplace environment.

Employees take steps on their own to ensure their safety andimprove their health.

Establish and implement a return-to-work program as a followup system for employees with physical or mental illness
covering taking leave to returning back to work.

① Employees actively participate in activities topromote health that companies implement.
② Employees are responsible for managing their own
health so they can do their work enthusiastically.

Improve health literacy by sending out information on healthmatters through Company newsletters and the intranet.
Promote understanding and further knowledge relating tomental health matters during new employee and new manager
trainings.
Hold participatory seminars (food, exercise, women-specifichealth issues, etc.) in line with health issues at each branch
office.

■System for Promoting Health and Productivity Management

Eikyufumetsu chips
In December 2018, Credit Saison introduced a peer-to-peer bonus
system that allows employees to send each other chips along withwords of gratitude. Composed of the terms peer, meaning colleague
or coworker, and bonus, peer-to-peer bonuses represent a systemthat allows employees to send incentives to each other for the results
and contributions of those jobs that are not easily recognized on a
day-to-day basis.
Named "Eikyufumetsu Chips," Credit Saison uses this system tostimulate communication that crosses between locations anddepartments.

CREDIT SAISON AWARD

Financial
Information

Implement measures against lifestyle-related diseases (walking
competitions, non-smoking programs, etc.) in cooperation withthe health association.

The industrial physicians of the Health Management
Office, public health nurses, and Strategic Human
Resources Dept. play a central role in promoting activities
for maintaining and improving employees’ health.
Furthermore, in addition to Companywide activities, awellness promotion leader is assigned to each branch
office nationwide with activities carried out in response toissues at each office.
A system has been set up that allows employees to easily
consult and collaborate with the Health Management
Office and HR staff regarding their mental and physicalwellbeing.

Recommend self-investment in health using cafeteria points.
Recommend wellness leave (a complete medical checkup once
every 5 years) for maintaining mental and physical health.
Establish various systems that allow flexible work-styles tobalance medical treatment with work, such as hourly paid
leave, half-day paid leave, flex-time, staggered working hours,
and telework.
Implement a rework entry system that allows employees to reenter the Company under the same conditions as when they
retired, within 5 years after retirement, even if they once retired
after the leave period had ended.

Upgrading the office environment
the marketing department prior to 2012, but followingchanges in the surrounding environment this was changed
to the CREDIT SAISON AWARD in 2012. This change
served to create opportunities for changing awarenessand behavior with the support of the entire Company,
encouraging a corporate culture that is unique to Credit
Saison, and strengthening the organization.

Held since 2012, the CREDIT SAISON AWARD serves as alocation that enables the entire Company to come together
as one and form a strong organization. By sharing thecorporate vision and by praising each other for day-to-day
results in a way that crosses between departments, this
AWARD encourages a corporate culture in which both
employees and the Company contribute to each other.
A separate award ceremony had been held specifically for

34

operations.
Going beyond simply renovating the physical office space
itself, replacing internal phone lines with mobile phones
has enabled location-independent communication. A
document management system was also introduced inorder to help the office go paperless. Credit Saison willcontinue to actively promote work style reforms among
employees and streamline operations.

In order to consistently provide new value as a leadingedge service company, Credit Saison must deploy newservices by allowing each employee to demonstrate theircreativity.
Therefore, since 2017 Credit Saison has worked to upgrade
the office environment at the Sunshine 60 Building Head
Office for the purpose of [1] reforming work styles, [2]stimulating communication, and [3] streamlining

35

Corporate
DataSustainability

VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Taking on the Challenge of Reform as We Create Credit Saison
As a leading-edge service company that promotes diversity and inclusion, the broad range of members in each sector at
Credit Saison work to create value for our customers and contribute to society. Here we will introduce several employees
undertaking the challenge of reform through their work, including those who use systems and mechanisms designed tohelp them play an active role and those who are working to give form to their personalities and ideas under Credit Saison's
corporate culture of freely undertaking challenges.

Mariko Yamabe
Hired in 2005 as a new college graduate
Digital Marketing Dept. Section Manager

Shiori Abe
Hired in 2012 as a new college graduate
Customer Satisfaction Planning Dept.

Teppei Kobayashi
Hired in 2016 as a mid-career recruit
Kanagawa Branch Office Marketing
Section No. 2

Realizing new CSR activities aspart of the first batch of SWITCHSAISON

Practicing problem-solvingfrom the stance of bothcustomers and employees as
only a concerned person can

Credit Saison employees visit elementary, middle, and highschools throughout Japan as "SAISON TEACHERs," and holdon-site courses to provide financial literacy. In fact, this
SAISON TEACHER program was proposed and eventuallycommercialized under the SWITCH SAISON in-house venture
program. I feel that Credit Saison has established anenvironment that makes it easy to undertake challenges
because the corporate culture encourages this and there aresupport systems in place. I work every day through trial-anderror to acquire accurate financial knowledge that will ensure asafe, bountiful future for younger generations.

Credit Saison employs roughly 20 persons with hearing
impairments throughout Japan. The biggest challenge forhearing impaired persons is properly gathering information at
the right timing. As someone in this situation, I established the"Deaf Project" with my colleagues. The main activities include
adopting ICT tools to facilitate in-house communication,
introducing the "Saison Sign Language Service" as a solution
for customers with hearing impairments, and offering financial
services to deaf sports associations. My hope is to approach
problem-solving in a way that is unique to myself throughwork.

Producing results as a team,
not as an individual

Saki Tokushige
Hired in 2006 as a new college graduate
North Kanto Branch Office Marketing
Section No. 1 Section Chief

Through digital channels (the Saison Card website, apps,SNSs), I work to express and promote the appeal of Credit
Saison. Because I must pick up my children every day at a
specific time, I strive to work more resourcefully, for example
by fully utilizing remote work, slack, and other tools, as well as
by taking advantage of the reduced working hours system andthe full-time flextime system. Although only one year has
passed since my assignment as section manager, I am
conscious of creating an environment that enables teammembers to utilize their fields of specialty and to work
enjoyably, and value face-to-face time with the members, ifeven for a short time using one-on-one meetings.

Making proposals tailored tocustomer needs at themarketing front lines
I consider each customer individually to propose solutions
tailored to their specific needs, including business cards andcashless systems that target sole proprietor and small- andmid-sized enterprises / businesses, as well as finance related
products. Although I entered the Company as a specialist, I
have undertaken the challenge of general positions in order toexpand my personal role. I will continue to value thecolleagues with whom I work and, as Credit Saison is regarded
as a leading-edge service company, pursue customer
satisfaction by listening to the feedback from each of ourcustomers.

Rie Mizuno
Hired in 2011 as a new college graduate
KISETSU SAISONFINANCE (INDIA) Private Limited

Moe Hiraga
Hired in 2018 as a new college graduate
Digital Marketing Dept.

Takuma Miyoshi
Hired in 2014 as a mid-career recruit
Asset Management General Manager,
Asset Management Officer

Uniquely contributing to thedevelopment of new services
as a younger employee

Conceiving asset management
services by sharing wisdomamong diverse members

In April 2019, we released Saison Classe, which provides
benefits based on rankings corresponding to the usage statusof our services. Before I entered the Company, I had absolutely
no experience in the digital field and as a new employee hadno experience in systems. Specifically because of this,however, I felt that I was able to see things from a perspective
much closer to that of our customers and actively expressed
my opinions. Having a corporate culture that makes it easy toundertake challenges by lending an ear to and incorporating
the opinions of new employees, Credit Saison has enabled me
to grow and create services that are tailored to our customers.

After launching the "Point Investment Services" as a newservice through which users can "experience simulated
investment using points" in December 2016, many others
followed suit. This service was originally conceived by aninterdepartmental, participatory "task force" and emerged
from a corporate culture that nurtures individuals who spareno effort in fields outside their current positions and a spirit ofteam work. In November 2019, I built the foundation forcustomers to make fixed period investments in a familiar, easy
way as part of the new "Saison Pocket" securities service. And
I will continue to boldly undertake the challenge of new
businesses based on new ideas.

36

Undertaking challenges in a
stimulating environment isenabled by Credit Saison's
corporate culture

Masahito Miyawaki
Hired in 2007 as a new college graduate
Alliance Development Dept. Section
Manager

At an affiliate of Credit Saison involved in digital lending inIndia, I am engaged in governance management, accounting,human resources and general affairs. I have also been involved
in several projects thus far that have considered entry into new
countries. My hope is to contribute to each of these countries
through business, for example by providing funding to mobile
finance service providers that digitize systems through whichgovernment funds are provided to households that require
education subsidies. I believe that the deeply rooted open,
frank, and innovative corporate culture of Credit Saison is one
if the reasons I was assigned to this work as a result of
conveying my unwavering desire to be involved in global
business from the time of my hiring. And I will continue tomake valuable contributions to society across national
borders.

Escaping comfort zones anddiving into unknown regions
As part of a new business development team, I create new
businesses that maintain an awareness of "Zero-ichi" and that
do not get caught up on existing businesses or concepts.
Even if a service that I feel has potential or something that I
think is interesting lies in an unknown region for me, I actively
go out to collect information and endeavor to dive in of myown initiative so that we can update our services in step withchanges in society. I feel that Credit Saison has a corporate
culture that allows me to take on any challenge as long as I am
passionate about it.

37

Corporate
DataSustainability

VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Preserving a Lush Forest for the Children of the Future

Contributing to Society through the Management of Akagi Nature Park
Looking back on the history of Akagi Nature Park

Initiatives for the next generation

since 2010 as one of its social contribution activities.
Credit Saison cardholders receive special treatment with respect
to admission fees. In addition to the wide range of environmental
conservation activities undertaken in conjunction with the local
community and supporting companies, the Company isemploying the park’s facilities to push forward various initiatives
that help support the next generation and contribute to the region
by invigorating tourism.

Akagi Nature Park is located at the foot of Mt. Akagi on the westernside, at an elevation of 600 to 700 meters. Flowers bloom all overthe park in spring, the whole area is brimming with life in the summer,
and the trees turn to vibrant colors in the fall. The rich experience ofthe four seasons of Japan is interwoven into the forest, and you cantruly experience the beauty of nature here. In order to pass a lush
forest on to the children who will bear the burdens of the next
generation, Credit Saison has been managing Akagi Nature Park

Guided by the philosophy of passing a lush forest on to the children of the future and heightening sensitivities toward nature, Credit Saison
conducts seasonal programs and tours. In fiscal 2018, the number of visitors came to 4,593, up 31% compared with the previous year.

■Children’s programs

Akagi Nature Park by the Numbers■ Number of visitors (FY2010-FY2018)(People)100,000■ Number of supporting companies (FY2010-FY2018)(Companies)
40

Forest Family Drawing Competition

Work experience in the forestry industry

First-hand look at the skills of a charcoal Nature observation tour
artisanParent and child yoga class

Photo contest■Parent and child bus
tour to promote improved
health sponsored by
Fukushima Prefecture■Providing courseworkassignments to theSpecial Needs Education
School for the Deaf,
University of Tsukuba■ Number of individual supporters (FY2011-FY2018)(People)
2,000

1,594

31

89,780Parent and child photography class30

50,00020

1,000

23,984

20
10

446
0

2010

2012

2014

2016

2018
(FY)

0

2010

2014

2018
(FY)

0

2011

2013

2015

2017

2018
(FY)

Initiatives for regional revitalization

SpringSummerAutumnWinterCredit Saison’s social contribution activities span a broad range of fields. In the managing Akagi Nature
Park, the Company has helped to revitalize the region by increasing the number of visitors from both
inside and outside Gunma Prefecture. Positive steps are also being taken to improve the health of local
residents.

■Credit Saison concluded a cooperation agreement with Shibukawa City across a wide range of fields
in April 2019.

Initiatives on environmental conservation

Every effort is being made to strengthen collaboration in a bid to reinforce operating foundations. This includes
contributing to the local community, raising the profile of Akagi Nature Park, and upgrading and expanding services
and events.

■Initiatives aimed at passing on a lush forest■Asagimadara (chestnut tiger butterfly) migration survey

Instead of growing flowers, Credit Saison is committed to properly organizing
the environment in a bid to assist its natural growth. With this as its guiding
policy, the Company has worked diligently to transform this mixed forest thatwas initially composed of mostly pine and cedar trees into a balanced
environment where a variety of tree and flower species can thrive. Everyeffort is being made to recreate a forest in which visitors can experience therich seasons of Japan while maintaining and strengthening ecosystems.

Traveling over distances that extend for more than 1,000 kilometers,
thousands of Asagimadara, chestnut tiger butterflies, migrate to various
locations including Akagi Nature Park each year. A marking survey isconducted to track movements of this butterfly species at the time of
migration. In 2015, butterflies were marked and recaptured in Yonaguni
Island, Okinawa Prefecture, some 2,000 kilometers from their point oforigin.

Examples of
initiatives• Environment Division /Parent and child environmental study group • Akagi Public Hall /Nature observation meeting• Shibukawa Sports Club /Nordic walking event, walking class • Transportation Policy Division /Bus riding class •Nursing Care Insurance Division /Care prevention supporter representative training • Children’s Division /Matchmaking event • Children’s Division /Child-rearing event to promote exchange between parents and children as wellas improved health • other

Tsutomu Takagi, Shibukawa City
Mayor (left) and Katsumi Mizuno,
Managing Director , Credit Saison
Co., Ltd. (right) at Shibukawa City
Hall

Welfare initiatives
Certified as a forest therapy site, Akagi Nature Park holds conducts various programs as a part of efforts to promote a healthy lifestyle.

38■Forest therapy site certification■Programs

Enjoying the forest leads toheightened comfort of mind andbody, and increased recuperation.
There are expectation that thisrelaxation effect can havebeneficial effects for preventive medicine such as
improving immune system function. Throughphysio-psychological studies, Akagi Nature Parkhas been certified as a forest therapy site.

Among a host of programs andactivities held at Akagi Nature
Park, visitors can engage in Nordic walking and yoga, participate
in walking events held by the
National Federation of Health
Insurance Societies, while also
taking part in breathing exercises
and other events.

39

Corporate
DataSustainability

Corporate GovernanceVisionStrategy

Corporate
Governance

Sustainability

Financial
Information

Corporate GovernanceOur basic view on corporate governanceDiversity- and Human Resources-related Data

■No. of employees■Average age/Average years of service(People)
3,500

3,297

3,000

2,483

2,500
2,000

3,239

(Age)

(Years)(Days)

（％）

40.0

11.1

14.0

80

39.5

2,424

2,289

1,500

39.0

39.5

692

814

815

2016

2017

2018 (FY)■■Males■■Females

10.9
10.8
10.7

37.5

10.6

37.0

10.5

36.0

0

39.2

11.0

38.0

36.5

1,000
500

11.0

11.0

38.5

1,597

■Average no. of paid leave approved/
Ratio of paid leave used

10.4

10.4

36.6

10.2

2016

■■Average age

70

10.0

56.8

52.4

60
50

8.0

13.1

6.0
4.0

10.0

9.2

2017

2018 (FY)

10.1

Average years of service

10

2016

2018 (FY)2017■■Average no. of paid leave approved0

https://corporate.saisoncard.co.jp/esg/governance/pdf/governance_report_1911.pdf

Corporate Governance Structure(People)(People)(Hours)

260

350

16.0

1

230

1

253

2
220

222

200

2016

■■Females■■Males2018 (FY)

0

4.0

3

5

2016

2017

8
2018 (FY)

0.0

2016

2017

■No. of section chiefs■No. of section heads(People)(People)(People)

120

200

92
83

80

10

99
12

160
140

11

180

47

45

82

87

46
250

150

130

123

207
162

2017

■■Males■■Females

2018 (FY)

50

2016

2017

■■Males■■Females

Four (Three)
Three

Board of Directors

Cooperation

Internal Audit Office

Guidance

Important Committees

Representative
Directors(Risk Management Committee,
Compliance Committee, etc.)

Audit

Delegation ofManagement Authority

Departments
Corporate Planning Dept.,
Corporate Risk Management Dept., etc.

Appointment/
Consultation

Report/AdviceNomination &Remuneration
Committee
Internal/males

Outside/males

Internal/females

Outside/females

200

Management/executive systemstrengthening its management oversight function by coordinatingwith directors, executive officers and others from the Internal Audit
Office and the unit responsible for supervision of internal controls.
The Company will introduce an executive office system on March
1, 2020 and aims to further enhance corporate governance by
creating an environment in which the Board of Directors canconcentrate on management and supervisory functions in orderto respond more quickly to changes in the business environment.
At the same time, we will be expanding opportunities for the
recruitment of management personnel in order to foster thedevelopment of the next generation of leaders.

Credit Saison (the Company) has adopted the Audit & Supervisory
Board (ASB) model, with ASB members, for its corporate
governance system. To ensure we retain the confidence of ourshareholders and other investors, we strive to improve andstrengthen corporate governance by nominating outside directors
and outside ASB members. The Board of Directors andNomination & Remuneration Committee receive advice andrecommendations from outside directors to ensure theappropriateness of business decision-making. This enables
directors, who are well versed in business matters, to maintain andimprove management efficiency. In addition, the ASB is

100

20

2016

Five

134

40

0

291

253

200

80
60

20
0

310

100

72

2018 (FY)

350
300

120

60
40

177

168

Three

2.0

■■No. using short work hours as a childcare option ■■No. using system for nursing care leave180

Appointed

Of outside directors, the number who are “independent directors”
The number of Audit & Supervisory Board members stipulatedby the Articles
Number of Audit & Supervisory Board members (of which areoutside Audit & Supervisory Board members)
Number of outside Audit & Supervisory Board members who are“independent directors”

Election

Monitoring/
Audit &
Supervisory Board Inspection

Monitoring■No. of general managers

100

10.2

6.0

50

2017

Independent
AuditorElection

8.0

100

227
210

11.1

10.0

150

Outside directors on the Board

General Meeting of Shareholders

Management
Function

14.5

12.0

200

15 (Three)

Election/Delegation/Supervision

14.0

228

President

Number of directors (of which are outside Directors)

Guarantee of effectiveness

250

240

307

285

300

250

Chairman of the Board of Directors

Management Monitoring System

Ratio of paid leave used

■Average overtime hours per month

One year

Timely disclosure and provision of materials■No. using short work hours as a childcare option/
No. using system for nursing care leave

25

Term of office for directors stipulated by the Articles◆For details, please see our Corporate Governance ReportElection■No. of employees taking up childcare leave

Number of directors stipulated by the Articles

20

2.0
0

40

Company with
Audit & Supervisory
Board Members

Governance System

30

10.3

35.5
35.0

72.9

12.0

Matters Concerning Composition ofGoverning Bodies and Organization Management

To realize our basic management policy of obtaining theunderstanding and consent of our shareholders by continuously
improving corporate value over time and creating innovative
services, the Credit Saison Group is implementing a variety of
initiatives to improve and strengthen our corporate governance inrecognition of the enormous importance of bolstering management supervisory functions to attain business objectives andenhance management transparency.

2018 (FY)

0

103

91

2017

2018 (FY)91
2016■■Males■■Females

Nomination & Remuneration Committee
The Committee consults with the Board of Directors about
matters related to the appointment and dismissal of directors andthe formulation of remuneration policies for directors, deliberates
them and submits reports about such matters to the Board of
Directors.

As an advisory body to the Board of Directors, the Nomination &Remuneration Committee has five members, the majority ofwhom are outside directors. The Committee is chaired by theCompany’s Chairman and CEO, and its members are appointed
by resolution of the Board of Directors.

*As of June 20, 201940

41

Corporate
DataCorporate GovernanceVisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Corporate GovernanceStatus of compliance with the Corporate Governance Codecreation of succession plan guidelines in line with the Company’s
medium- to long-term strategies

The Credit Saison Group follows all of the principles stipulated in
the Tokyo Stock Exchange’s Corporate Governance Code withthe exception of the following:

Supplementary Principle 4.3 (3)Roles and Responsibilities of the Board (3)The Company at this time has not established special proceduresor evaluation criteria for the dismissal of the CEO.
However, if a CEO, etc. causes significant damage to the Group,or violates laws, regulations, or the Articles of Incorporation in amanner that merits dismissal, the Board of Directors with theparticipation of outside directors will deliberate the matter
thoroughly before moving to dismiss.

Supplementary Principles 4.1 (3)Roles and Responsibilities of the Board (1)The business environment in which the Company operates has
been significantly impacted by advancements in digitaltechnologies, including FinTech, and given the expansion inbusinesses requiring fresh perspectives, including theestablishment of overseas operations, it may not always beappropriate to establish set standards based on one-time
discussions for knowledge, experience, and ability required for
the Chief Executive Officer (CEO). The Company at present has
not formulated specific succession plans for the CEO nor
conducted oversight in regard to such at the Board of Directors.
The Credit Saison Group intends to review how the Board of
Directors can effectively oversee succession plans moving
forward, including through the creation of succession plan
guidelines in line with the Company’s medium- to long-term
strategies.

Principle 4.11 Preconditions for Board andAudit & Supervisory Board EffectivenessIn a rapidly changing business environment, the Credit Saison
Group believes it is important to improve the value-creation
function of the Company by ensuring that the Board of Directors
is well balanced in terms of experience, knowledge, and special
abilities, and not just in terms of gender or nationality.
We have appointed directors with a sufficient level of diversitythat are able to effectively respond to business format changes
while leveraging our strengths in line with our medium- to longterm strategies. At present, the structure of the Board of Directors
does not sufficiently take gender and nationality into account.
With the Company’s medium- to long-term strategies in mind, we
will strive to appoint a diverse range of directors, including inregard to gender and nationality. The Company’s independent
outside directors are appointed based on the need for humanresources with the knowledge necessary to effectively contributeto sustainable growth and the enhancement of corporate value
over the medium to long term, including in financial matters suchas capital efficiency. Our Audit & Supervisory Board members areappointed based on their experience, abilities, and knowledge infinance, accounting, and legal affairs.

Supplementary Principle 4.3 (2)Roles and Responsibilities of the Board (3)The business environment in which the Company operates has
been significantly impacted by advancements in digitaltechnologies, including FinTech, and given the expansion inbusinesses requiring fresh perspectives, including theestablishment of overseas operations, it may not always beappropriate to establish set standards based on one-time
discussions for knowledge, experience, and ability required by
the Chief Executive Officer (CEO). The Company at present has
not established special procedures or evaluation criteria for
appointing its CEO.
The Credit Saison Group intends to review procedures forproperly appointing qualified CEOs, including through theCompliance with the Corporate Governance Code◆For details, please see the Credit Saison website
https://corporate.saisoncard.co.jp/esg/governance

The effectiveness of the Board of Directors
Implementation
Summary

With the goal of improving the effectiveness of the Board of Directors, the Company implements a self-evaluation-based annual
assessment and analysis for all directors and corporate auditors (including retirees before the expiration of their term of office)elected in the previous year. A questionnaire is given to each director and auditor covering the following items, with the Board of
Directors conducting discussions based on feedback from the results.

Assessment Items(1) Composition of the Board of Directors (2) Management of the Board of Directors (3) Roles and Responsibilities of the Board of
Directors

Summary ofAssessment
Results● We have confirmed that the Board of Directors is operating at a generally proper level, and that the effectiveness of Board of
Directors as a whole has been secured.
● Based on the evaluation of the Board of Directors conducted last year, the Company developed rules for preparing Board of
Directors materials so that the information necessary for deliberations at Board of Directors meeting can be more easily included,with issues narrowed down on the specification and clarification of risks contributing to greater ease in the making of decisions.
● In recognition of the need to further invigorate discussions related to improving corporate value at the Board of Directors
meetings, the Company will strive to improve management in order to further increase effectiveness.

42

Status of outside officers
Attendance status for FY18
Name

Reasons for the appointment of outside Directors andoutside Audit & Supervisory Board members

Outside Director
Kaoru Hayashi

Mr. Hayashi is a founding manager of Internet service company Digital
Garage with extensive experience and broad insight in IT, marketing, and
FinTech. Mr. Hayashi was appointed with the aim of the Company benefitting from his useful advice on management, delivered from a neutral andobjective standpoint.

Outside Director
Naoki Togashi

Mr. Togashi is a management consultant with extensive experienceand broad insight in corporate management, including in areas such as
strategic consulting in a wide range of financial fields both in Japan andoverseas. He was appointed with the aim of the Company benefittingfrom his useful advice on management, delivered from a neutral andobjective standpoint.

Outside Director
Nana Otsuki

As an analyst with many years spent at domestic and overseas financial
institutions, Ms. Otsuki has extensive experience and broad insight in regard to the analysis of financial markets in Japan and overseas. She wasappointed with the aim of the Company benefitting from her useful advice
on management, delivered from a neutral and objective standpoint.

Status of concurrent positions

President and Group CEO
Chairman of the Board, Kakaku.com, Inc.

Trustee, Japan Association of Corporate Executives

Outside Audit &Supervisory
Board member
Hiroaki Igawa

Working for many years in the Ministry of Finance and the Tokyo Regional
Taxation Bureau, Mr. Igawa has served as the Director General of the Kyushu
Local Finance Bureau and as a Taxation Department General Manager. He
has extensive experience and broad insight in accounting and finance, andwhile he does not have direct experience in corporate management, hepossesses the ability to conduct objective and neutral audits.

Outside Audit &Supervisory
Board member
Chie KasaharaWith many years of service as a lawyer, Ms. Kasahara has a wealth of experience and broad insight into the law, and has played an important rolein the audits focused on corporate governance and the legality of duties
executed by the Company’s Board of Directors. While she does not havedirect experience in corporate management, she was appointed basedon her ability to provide objective and neutral audits.

15/18
meetings

econtext Asia Limited Director President & Chairman

Director, Nagahori Corporation.

With many years of experience at the National Police Agency, Mr. Harada
has serves in senior law enforcement positions, including as the chief ofnumerous Prefectural Police Headquarters. He has not been directly involved in the management of a company, but has experience in organizational management and crisis management. He was appointed to provide
a neutral and objective outlook on the legalities of management actions.

Audit andSupervisory
Board

Representative Director, Digital Garage, Inc.

Japan Representative Partner, Oliver Wyman Group

Outside Audit &Supervisory
Board member
Munehiro Harada

Board ofDirectors

16/18
meetings

Executive Officer, Monex, Inc. Professor, Nagoya
University of Commerce and Business Graduate School
Visiting Professor, Faculty of International Politics,
Nishogakusha University

18/18
meetings

Audit & Supervisory Board Member, Tokio Marine
Holdings, Inc.

Senior Partner, Atsumi & Partners(currently Atsumi & Sakai)

18/18
meetings

13/13
meetings

Strengthening the compliance and risk management systems
various issues within the Group and matters of control that poseserious risks, the Group Strategy Office of the Corporate Planning
Department leads the way in monitoring business execution atGroup companies and sharing information with management
departments of Group companies.
As for our compliance system, our Compliance Committee andCorporate Risk Management Department have been establishedto ensure legal compliance, fairness, and ethical standards in our
corporate activities. In addition to assigning complianceresponsibilities to employees in each department, we issued adeclaration on how the Company should conduct its activities
and are strengthening our compliance system by making sureemployees know about our compliance help desk, holding
compliance training sessions, and distributing a pamphlet
outlining rigorous adherence to the Company’s standards ofconduct, which sets out how directors, executive officers, andemployees should conduct themselves.
We will continue to study approaches to management that best
suit the Credit Saison Group in light of global trends in corporate
governance and our basic policies for ensuring the proper
functioning of internal controls.

In order to keep improving our corporate value, we identify theenhancement of corporate governance as a key management
initiative. To this end, we are improving our internal control
systems, strengthening our risk management framework, andfully adhering to compliance requirements.
In establishing internal control systems, the Board of Directors
decides on basic policies for such, with the aim of building
systems that ensure appropriate and efficient operations mainlyin the Corporate Planning Department, the unit responsible foroverseeing internal controls. As for internal controls on financial
reports, the Corporate Risk Management Department leads theway in promoting the proper functioning of internal controls in the
Company and at our consolidated Group companies, while theInternal Audit Office carries out independent monitoring.
Regarding risk management, the Risk Management Committee
and Corporate Risk Management Department lead the way inpreventing risks from materializing and in working to minimize theeffects on the Company when they do arise. Accordingly, we
strive to maintain our risk management framework by holding
regular internal training sessions for employees in accordancewith “risk management rules,” “rules concerning loss risk
management,” and “crisis management rules.” With respect to43

Corporate
DataCorporate GovernanceVisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Dialogue with Shareholders and Investors (IR activities)

Corporate Governance
Remuneration for directors and audit & supervisory board members
About Director Remuneration
Credit Saison has established the Director Remuneration
Rules in the Board of Directors as the policy for determining
the amount for director remuneration, etc., and thecalculation method thereof. The director remuneration
system is composed of "basic remuneration," which isdetermined separately for each director based on a
remuneration standard corresponding to his or her position
and management responsibility level and includes
remuneration used to purchase the Company's shares as along-term incentive, and of "variable remuneration (bonuses)," which is calculated based on the results of the mutual
evaluation made by all directors regarding the Company's
performance for the individual fiscal year and the degree ofcontribution (including future growth strategies) each director
has made to the Company's performance (outside directors
only receive fixed remuneration).

cap annual remuneration for directors at ¥750 million (annual
remuneration for outside directors capped at ¥50 million) andcap annual remuneration for ASB members at ¥150 million(salaries paid to executive directors for their work as
employees are not included in the remuneration caps).
The amount paid to each director is determined individuallyby the Company's Chairman and CEO, who is delegated to
do so by the Board of Directors, within the scope delegatedby Board of Directors resolution and in compliance with the
Director Remuneration Rules.
Credit Saison resolved to establish a Nomination andRemuneration Committee as a voluntary advisory committee
at the Board of Directors meeting held on June 7, 2019, inthe following manner. In regard to director remuneration for
FY2020 (the 71st period), this committee will report on thefollowing matters based on the submission by the Board of
Directors.

In order to increase corporate value, variable remuneration(bonuses) uses the growth rate for non-consolidated ordinary
income (excluding transient factors, etc.) as one of thequantitative performance indicators. In addition, the resultsof the evaluation made by all directors, including the recipient
directors, regarding the degree of contribution each director
has made to the Company's performance is used as aqualitative performance indicator.

・ Resolution of General Meeting of Shareholders regarding
election/dismissal of directors
・ Formulation of the remuneration policy and the individual
remuneration package of directors
Othermatters raised by the Board of Directors
・・Formulation, amendment or abolition of basic policies thatare necessary for deliberation of matters stated above
・Other matters deemed necessary by the committee

Variable remuneration (bonuses) is calculated by multiplying
the performance-linked factor for the quantitative indicator
compared with the standard amount for each position (theyear-on-year quantitative performance indicator) and theperformance-linked factor for the qualitative evaluation(generally 80% - 130%). The performance-linked factor for
the quantitative indicator during the year under review was
95%.

year under review. Moreover, as of September 30, 2019,
approximately 38% of the Company's issued shares were
held by foreign shareholders. Given this, Credit Saison
strives to build active, ongoing relationships through faceto-face meetings at conferences that are also attended byinvestors from abroad, conference calls, and other IR
activities targeting overseas-based investors.

Credit Saison endeavors to convey corporate information
to all shareholders and investors in a prompt, fair, and easy
to understand manner for the purpose of sustained growthand greater corporate value, and strives to expand thescope of disclosed information. Briefings are held twice ayear (second quarter and fourth quarter) for institutional
investors and sell-side analysts, during which time therepresentative director provides financial summary,management strategy, and sales progress reports for the■Results of IR Activities in FY2018
Financial Results Briefing
Individual meetings with sell-side
analysts/institutional investors
Securities company organized
conferences

2
190
4

■General Meeting of Shareholders
In order to ensure shareholders have sufficient time toconsider resolutions, Credit Saison sends the convocation
notice prior to the date specified by law (at least two weeks
before the General Meeting of Shareholders date) anddiscloses such on the Company's website and TDnet.
69th Ordinary General Meeting of Shareholders (held June 20, 2019)
Participating shareholders
Ratio of voting rights exercised

112
83.6%

The total amount of remuneration for FY2018 under review
for different classifications of directors and ASB members,
along with sub-totals for different types of remuneration, areshown below.

Classification

Directors (Excluding outside directors)

The composition ratio for remuneration is generally 80% forbasic remuneration (including remuneration used to purchase
the Company's shares as a long-term incentive) and 20% forbonuses, where the ratio of bonuses varies in accordancewith the Company's performance, etc. Remuneration for
Audit & Supervisory Board (ASB) members consists entirelyof fixed remuneration, where the amount of remuneration foreach ASB member is determined through consultation
among the ASB. This amount falls within the total amountapproved by the General Meeting of Shareholders .

Total
remuneration(Millions of
yen)

497

Total amount of
remuneration by type(Millions of yen)Basicremuneration

Bonuses384

113

Numberof people

15

ASB members (Excluding outside ASB members)

4

4

−

1

Outside directors

24

24

−

3

Outside ASB members

26

26

−

3

Notes: 1. The total amount of remuneration paid to directors does not include employee
salaries in the case of employees who serve concurrently as executive
directors.
2. As of March 31, 2019, the Company had 15 directors and three ASB members.
3. Basic remuneration includes amounts used to purchase the Company’s
shares (contribution to shareholders’ association made up of directors).

Name, classification, total remuneration (consolidated)
and total amount of remuneration (consolidated) by typeof each director, outside director and ASB member
We omitted listing individuals as there were no directors,
outside directors or ASB members whose total remuneration
exceeded ¥100 million.

For the total amount of the calculation method-based
remuneration for directors, outside directors and ASB
members, resolutions were approved at the 57th ordinary
general meeting of shareholders held on June 23, 2007 to
44■Website "IR Information"
Credit Saison discloses detailed IR information to allshareholders, investors, and other stakeholders on thewebsite. We will continue to strive to disclose timely,
impartial information.

■Delivery of "Business Reports" to Shareholders
Credit Saison mails "Business Reports" to shareholders
twice a year, at the end and middle of the period, to reportdevelopments in the Company's performance for each half,
as well as our initiatives and vision for the future, in an easy
to understand manner.

■For details, please visit our website
https://corporate.saisoncard.co.jp/ir/■For details, please visit our website
https://corporate.saisoncard.co.jp/ir/business_report/

45

Corporate
Data

Financial Information

VisionStrategy

Corporate
Governance

Sustainability

Financial
Information

Corporate
Data

ELEVEN-YEAR SUMMARY OF SELECT FINANCIAL DATA
Thousands of
U.S. dollars (Note 4)

Millions of yen

IFRS

2019

Net revenue

¥

2018

304,855

293,250$ 2,746,194

Business profit

52,23357,314

470,525

Profit before tax

45,76352,850412,250

Profit attributable to owners of the parent

30,51738,446274,906

Total equity

491,741

490,849

4,429,706

Total assets

3,212,465

2,946,97828,938,527

Equity attributable to owners of the parent per share (JPY)3,006.14

2,993.18

27.07

186.84235.391.68

Return on equity (ROE) (%)

6.2

8.2

6.2

Return on assets (ROA) (%)

1.0

1.4

1.0

Shareholders’ equity ratio (%)

15.3

16.6

15.3

Basic net income per share (JPY)¥2019
The Credit Saison Group has applied the International Financial Reporting Standards (IFRS) to its consolidated accounts from FY 2018. For the purpose of comparison,
financial data for the previous fiscal year are also presented under IFRS.
The Group has also applied IFRS 9 (Financial Instruments) from the beginning of FY 2018 (April 1, 2018).

Thousands of
U.S. dollars (Note 4)

Millions of yen

JGAAP

2019

2018

2017

2016

2015

2014

2013

2012

2011

2009

2010

2019

2008

CONSOLIDATED
For the year:

Operating revenues (Note 1)¥

292,184¥

278,945¥

269,918¥

259,077¥

247,577¥

247,577¥

244,405¥

244,009¥285,712¥306,855¥

327,089$ 2,746,322
̶

241,741

236,661

221,553

206,193

197,852

197,852

187,170

192,184

235,758

246,305

268,658

̶

9,672

11,07011,771

12,723

13,38913,38814,922

19,95822,577

24,37723,882

̶Total operating expenses

262,524

251,412

247,730

233,325

218,915

211,241

211,241

202,093

212,143

258,335

270,682

292,540

2,364,875

Operating income

42,344

40,771

31,21436,594

40,16136,33636,33642,312

31,86527,37736,17334,548381,446

Net income attributable to owners of the parent

34,01638,33042,253

26,163

12,62925,551

25,552

32,7709,453

12,82918,680△ 55,513

306,431

Financial costs

Total equity

320,595$ 4,484,778

Total assets¥

3,217,448

2,940,022

2,720,051

2,550,990

2,373,299

2,285,943

2,285,943

2,141,802

2,155,906

2,231,246

2,374,129

2,407,064

28,983,412

Interest-bearing debt (Note 2)

2,206,239

1,957,244

1,857,477

1,729,066

1,557,836

1,468,740

1,468,740

1,359,856

1,409,802

1,657,832

1,776,827

1,893,017

102.48¥ △ 308.25

Net income per share¥

Per share data(in yen and U.S. dollars): Equity per share
Key financial ratios (%):¥

̶

Selling, general and administrative expenses

At year-end:

304,869

497,855

208.27¥¥

480,669

234.67¥¥446,882258.70¥¥418,988

147.37¥¥447,083

68.77

¥

¥

422,830

139.15¥¥422,829139.15¥¥394,868

178.45¥¥355,727

¥

51.48

¥

347,915

69.86

¥

¥

341,405¥

20,024,105$

1.87

3,046.68

2,933.46

2,724.88

2,563.61

2,424.05

2,283.29

2,283.29

2,131.58

1,920.65

1,879.98

1,845.82

1,766.95

27.44

Return on equity (ROE)

7.0

8.3

9.8

6.1

2.9

6.3

6.3

8.8

2.7

3.8

5.7

̶

7.0

Return on assets (ROA)

1.1

1.4

1.6

1.1

0.5

1.2

1.2

1.5

0.4

0.6

0.8

̶

1.1

Equity ratio

15.5

16.3

16.4

16.4

18.8

18.3

18.3

18.3

16.4

15.5

14.3

13.2

15.5

NON-CONSOLIDATED
For the year:

At year-end:

Key financial ratios (%):

NON-CONSOLIDATEDTransaction volume:

Operating revenues (Note 1)¥

270,900$ 2,333,287

215,726

207,093

203,038

186,493

169,900

160,927

160,927

149,844

153,505

194,194

205,042

220,708

1,943,305

Financial costs

9,748

9,872

11,282

12,62014,067

15,11915,11916,88218,80919,97722,221

21,53087,815

Operating income

33,54332,90024,31729,60035,37029,82629,82637,39437,89325,48430,661

28,661

302,167

Net income

25,87522,191

21,04625,571

11,316

18,637

18,637

24,147

5,613

7,596

16,137△ 44,972

233,095

304,230$ 3,671,142

Selling, general and administrative expenses

Total equity¥

259,018

407,533¥¥

249,865

396,831¥¥238,637

374,478¥¥

228,713359,428¥¥

219,337

388,470¥¥

205,873

367,808¥¥

205,873

367,808¥¥

204,121349,202¥¥210,207¥322,502¥239,657

320,303¥¥257,924

319,712¥¥

Total assets

3,107,284

2,831,297

2,623,644

2,468,797

2,287,986

2,200,459

2,200,459

2,051,908

2,059,435

2,097,773

2,200,459

2,220,791

27,991,028

Interest-bearing debt (Note 2)

2,203,239

1,953,740

1,852,551

1,725,891

1,551,189

1,457,001

1,457,001

1,337,201

1,368,154

1,575,231

1,645,206

1,748,245

19,847,211

Return on equity (ROE)

6.4

5.8

5.7

6.8

3.0

5.2

5.2

7.2

1.8

2.4

5.2

̶

6.4

Return on assets (ROA)

0.9

0.8

0.8

1.1

0.5

0.9

0.9

1.2

0.3

0.4

0.7

̶

0.9

Equity ratio

13.1

14.0

14.3

14.6

17.0

16.7

16.7

17.0

15.7

15.3

14.5

13.7

13.1

Card shopping¥ 4,788,537¥ 4,683,039¥ 4,476,608¥ 4,258,285¥ 4,089,390¥ 3,852,980¥ 3,852,980¥ 3,547,050¥ 3,402,494¥ 3,953,411¥ 3,844,670¥ 3,891,076$ 43,136,090

Cash advances

242,980

248,157

253,837

267,724

277,026

264,092

264,092

260,089

266,904

371,403604,347

765,385

2,188,816

Specialty loans

512,063

328,300

212,218

121,294

74,68745,50645,50632,95034,59736,514

43,768326,170

4,612,765

Agency services (Note 3)

3,014,831

2,873,184

2,671,711

2,522,243

2,434,825

2,303,998

2,303,998

2,166,062

2,112,431

1,362,275

1,310,419

1,347,260

27,158,199

Leases

115,589

114,569

108,102

106,000

106,801

114,694

114,694

105,356

96,852

94,831

100,893

100,727

1,041,251

Guarantees

114,277

131,923

159,915150,101

137,335

126,281

126,281

115,297

92,83773,37585,637

107,532

1,029,438

Others25,77430,67732,17833,29833,73230,00530,00523,86920,482

22,89523,38022,475

232,185¥ 8,814,054¥ 8,409,849¥ 7,914,569¥ 7,458,945¥ 7,153,796¥ 6,737,558¥ 6,737,558¥ 6,250,675¥ 6,026,599¥ 5,912,587¥ 6,013,118¥ 6,560,174$ 79,398,743

Total transaction volume

Notes: 1. Operating revenues do not include consumption taxes.
2. Interest-bearing debt includes asset-backed securities.
3. Agency services show transactions handled on behalf of other companies’ cards.
4. Japanese yen amounts have been translated into U.S. dollars at the rate of ¥111 = U.S.$1, the approximate exchange rate on March 31, 2019, for the convenience of the reader.

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MANAGEMENT’S DISCUSSION AND ANALYSISFY2018 (from April 1, 2018, to March 31, 2019)and loan balance for Saison Asset Formation Loans in thefinance business segment.

OVERALL EARNINGS IN FY2018
The Credit Saison Group has applied the International
Financial Reporting Standards (IFRS) to its consolidated
accounts from fiscal 2018. For the purpose of comparison,
financial data for the previous fiscal year are also presented
under IFRS.
The Group has also applied IFRS 9 (Financial Instruments)from the beginning of FY2018 (April 1, 2018).
In the fiscal year under review, the domestic economy
remained on a gradual recovery track as employment andincome conditions continued to improve, while various
measures implemented by the government also yieldedsome benefit. At the same time, there are conditions thatbear watching; namely, the effect trade issues have on the
global economy, the outlook for the Chinese economy,
uncertainty surrounding developments and policies inoverseas economies, and the impact of volatility in financial
capital markets.
Against this backdrop, we entered the final year of our
medium-term business plan in which we set out our
medium-term management vision of becoming a “NeoFinance Company in Asia” under our “leading-edge service
company” management philosophy. Mainly by using leadingedge technologies and combining our existing strengths withnew strengths, we have continued to embrace the challengeof transforming into an innovative corporate entity that
continually leverages technological innovation such as
FinTech to address changes in customer values and thebreakdown of existing business models.

Financial costs came to ¥9.878 billion (+7.2% YoY).
Table 2 shows a breakdown of income from the paymentbusiness segment.

EQUITY-METHOD INCOME

Table 2: Breakdown of income from payment business segment(Millions of yen)
2018

2017

% change

136,464

132,016

3.4

Merchant fees

75,00373,876

1.5

Customer fees

53,09149,940

6.3

Card shopping

8,368

8,199

2.1

Cash advances

33,08434,735△4.8

Loans on deeds

1,071

1,298

△17.5

Processing/transactions handled
on behalf of other companies’ cards

28,22727,034

4.4

Annual fees, etc.

Agency services

15,89615,130

5.1

Credit service-related income

11,507

10,834

6.2

Total credit service business income

226,250

221,049

2.4

SG&A EXPENSES AND
IMPAIRMENT OF FINANCIAL ASSETS
Table 3 shows a breakdown of selling, general andadministrative (SG&A) expenses and impairment of financial
assets. SG&A expenses and impairment of financial assets
came to ¥255.063 billion (+4.8% YoY) due mainly to anincrease in costs linked to growth in card transaction volume
and a higher depreciation burden from the joint core system.
Table 3: Breakdown of SG&A expenses and impairment of financial assets(Millions of yen)

NET REVENUE

2018

2018

2017

226,250

221,049

2.4

Income from the lease business

12,57912,860△2.2

Income from the finance business

39,23135,536

10.4

Income from the real estate-related business

17,177

14,292

20.2

Income from the entertainment business

8,761

9,288

△5.7

Financial income

854

223

281.9

Total net revenue

304,855

293,250

4.0

34,26530,08313.9

22,33818.0

Impairment of financial assets(financial guarantee contracts)

7,736

7,117

8.7

176

627

△71.8

220,797

213,398

3.5

SG&A expenses excluding cost of
uncollectible receivables(Millions of yen)
% change

Included in the above:Advertising expenses

24,32026,445△8.0

Provision for point program

13,033

16,642△21.7

Personnel expenses

50,88850,966△0.2

Fees paid

74,88869,7227.4

255,063

243,482

4.8

Total SG&A expenses andimpairment of financial assets

48% change

26,352

Provision for losses on interest repayment

Table 1: Main items in consolidated income statement

2017

Impairment of financial assets (receivables)

Cost of uncollectible receivables

Table 1 shows a breakdown of net revenue. Net revenue inFY2018 came to ¥304.855 billion (+4.0% YoY), mainlyreflecting increases in card shopping transaction volume andcard shopping revolving credit balance in the paymentbusiness segment and a higher credit guarantee balance

Income from the payment business1. Credit Card BusinessIn terms of the key indicators for FY2018, we added 2.11
million new card members, a decrease of 13.5% year on
year. The total number of card members at the end of
FY2018 dipped 0.6% from the previous fiscal year-end to
26.79 million, while the number of active card members forthe year also dropped 0.6% to 14.90 million.
Card shopping transaction value came to ¥4,788.5 billion(+2.3% YoY), while cash advance transaction value totaled¥248.7 billion (–2.1%). At the end of the fiscal year, the card
shopping revolving credit balance stood at ¥422.5 billion(+2.0% YoY) and the balance of cash advances at ¥231.8
billion (–0.4%).

FINANCIAL COSTS

Equity-method income came to ¥7.355 billion (–40.2% YoY).

OTHER REVENUE
Other revenue came to ¥4.138 billion (–69.2% YoY),
reflecting the dropout of capital gains on the sale ofinvestment securities booked the previous fiscal year.

a) Promoting cashless payments by remodeling ourcredit card businesses
We aim to become the number one company in the cashless
payment market by diversifying payment services andbreaking the dominance of the cash market with credit
cards, prepaid cards, smartphone payments, and mobile
POS systems. Beyond consumer initiatives, we are working
to tap into the corporate payments market by expanding thedomain of cashless payments in the corporate transaction
space and improving back-office operational efficiency with
optimal solutions to meet the scale and needs of companies.

OTHER EXPENSES
Other expenses came to ¥5.643 billion (–58.0% YoY) owing
to lower one-off costs associated with the migration to the
new joint core system compared to the previous fiscal year.
As a result of the above, net income attributable to owners of
the parent totaled ¥30.517 billion (–20.6% YoY).

• In aiming to expand our customer base, we continued torecruit prospective platinum and gold card members,
which offer the prospect of high utilization and highspending per transaction, especially for our Mitsui
Shopping Park Card Saison, a credit card we issue
together with Mitsui Fudosan and Mitsui Fudosan RetailManagement, as well as our premium card series Saison
American Express® Card. In addition, we strove to increase
membership in corporate and individual proprietor cards
that help support business operations.
• To expand card transaction volume, in July 2018 welaunched a QR code-based payment service for holders of
the Mitsui Shopping Park Card Saison using the Mitsui
Shopping Park smartphone app. We also stepped up
promotions to stimulate card usage centering on affiliatedmerchants, as well as campaigns targeting revolving credit
and seasonal bonus-based debt repayments. And wecontinued to encourage card use for settling recurring
payments such as utility bills, mobile phone subscriber
fees, taxes, and insurance premiums.
• As for initiatives to tap into the corporate market, weformed alliances with companies such as a cloud-based
expense settlement solutions firm to offer companies a
way to considerably reduce their expense settlement

SEGMENT CONDITIONS<Payment Segment>
The credit service segment is composed of the credit cardbusiness and servicer (loan collection agency) business.
In FY2018 we worked to bolster the segment’s earnings
base. In particular, we promoted cashless transactions byremodeling the credit card business, created business byleveraging digital devices and customer data, further
developed our retail finance businesses in Asia, and built aplatform for our longer-term overseas strategy. In addition,
we have sought to improve business efficiency by, forexample, continuously taking steps to deal with credit risk
and automating customer services and back-office
operations with the use of technology.
Although net revenue for the segment totaled ¥228.518
billion (+2.7% YoY), business income decreased 39.4% year
on year to ¥16.915 billion mainly because of the fallback
from year-earlier gains on the partial sale of investment
securities held by an equity method affiliate, higher costs
linked to growth in card transaction volume, and an increasein depreciation burden from the joint core system that cameonline in November 2017.

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workload by combining their service with our corporatecards. We also endeavored to provide optimal solutions
tailored to the business scale and requirements ofcompanies mainly through the issuance of the Saison
Platinum Business American Express® Card, a businesscard that meets the business expense settlement needs ofindividual proprietors.
• In expanding the scope of credit card payments, we
continue to handle system development and operations forthe prepaid “mijica” card issued by Japan Post Bank. This
card now has Visa debit functionality and participates inthe Eikyufumetsu Points program. We have now issued
more than 50 million prepaid cards in total, including the
COCOKARA CLUB CARD, which we issue via a tie-up withleading drugstore chain Cocokara Fine, the au WALLET
Prepaid Card and prepaid MasterCard®-branded Web
Money Card, for which we handle card issuance and otheroperations in collaboration with KDDI and WebMoney,
respectively, and Osaifu Ponta, a card issued by Lawson
for which we are responsible for membership management.
• As a new initiative, we concluded a memorandum of
understanding with Liquid, a company that develops
biometric personal identification technology, and kicked off
the process of investigating new online-based methods ofidentification in order to alleviate the burden of customers
going through personal verification procedures.

experience—which has four investment courses (active,
balanced, Japanese equity (TOPIX), and US equity (VOO))
and a savings feature—many of our customers have used
the service as a catalyst to learn about investment andtake their first steps toward building wealth. And in
September 2018 we launched an equities course in whichusers can experience investing their Saison Eikyufumetsu
Points by linking them to the share prices of realcompanies.
• By leveraging our internet member base of 15.82 million(+5.4% YoY) and the 5.49 million (+37.9%) app downloads,
through partnerships that enable us to mine data we own
with respect to customer attributes, card usage history,
and web behavior history, along with the data of third
parties, we are working to create big data-driven marketing
and ad businesses in which we can deliver marketing
solutions to corporate clients and send appropriate
information to card members.
c) Initiatives for managing credit risk
For initial and intermediate credit checks, we are working to
reduce damage from improper use via stronger monitoringand implement appropriate credit checks in response tocustomer conditions and internal and external environments.
In debt collection, we take steps to prevent delinquencies bysending reminders to send payments before a payment
deadline. Meanwhile, we preserve the soundness of ourreceivables portfolio by providing compassionate support todelinquent customers through much-improved contact andcounseling. Moreover, we aim to provide safe and securetransaction environments mainly by enhancing the accuracyof detecting unauthorized credit card use by equipping oursystems with artificial intelligence. We also seek to improvecustomer satisfaction with highly convenient services.

b) Business creation leveraging digital devices andcustomer data
We made efforts to further expand net members andsmartphone app users in order to capture opportunities inthe still-expanding online marketplace and also engaged in
flexible collaborations with venture companies boasting newtechnologies and leading firms that possess high-quality
content platforms. By melding big data generated by ourcard members with premium content and digital technology,
we are endeavoring to establish a new business modelthrough which we actively develop and deliver various
proprietary products and services such as Saison DMP/
DSP* and our Point Investment Service.

d) Advancing our retail finance businesses in Asia andlaying the foundations for a longer-term overseas
strategy
We identify our overseas business as a future earnings pillar
and are therefore stepping up our full-scale entry into theretail finance business to meet the needs of each country in
the rapidly growing Asian region.

*Saison DMP is our big data platform; Saison DSP is our Saison DMP-powered managed advertising service.

• We aim to contribute to the sound development of thebroader financial market by sparking interest andinvolvement in financial products among various customer
segments, but mainly the younger generation and female
users, by letting them easily experience investing throughour Point Investment Service using Saison Eikyufumetsu
Points. By providing this long-term investment simulation• In Vietnam, HD Saison Finance Company is expanding its
operations mainly in the installment credit business foritems such as motorcycles and home appliances. We aresuccessfully boosting our presence in the country, reflectedin the steady increase in both sales offices and credit
balance. We have also managed to launch our credit
business there sooner than expected after pushing ahead

50<Finance Segment>with preparations since last year. Our goal is to become thedominant number one comprehensive retail financecompany in Vietnam.
• In Indonesia, PT. Saison Modern Finance started
cooperating with FinTech players in the rapidly growing
field of P2P lending. We are looking to move into profit in
the digital lending business and accelerate growth with theaim of establishing Indonesia’s only multi e-financecompany.
• Grab Financial Services Asia, a company we establishedunder a capital tie-up with leading Southeast Asianridesharing service operator Grab (now Grab Holdings), ismaking preparations for the full-scale launch of its
smartphone-based digital lending business in Southeast
Asian countries. Initially, the business will start extendingloans to registered Grab drivers before being expanded toordinary customers later on. In the future we aim toestablish a credit scoring system with a view to creating
new businesses and commercializing cardless payments.
Operations have already commenced in five countries in
the region, including Singapore, and we will continue towork on boosting our presence in Southeast Asia.
• Siam Saison, a joint venture company we establishedthrough an alliance with SCG Trading—a subsidiary of theSiam Cement Group, Thailand’s biggest constructiongroup—and Mitsui & Co., started offering an array of BtoB
financial services for Thailand’s construction industry,including order placement and payment of materials andinstallment payments. We intend to contribute to thesustained development of the Thai economy by expanding
this business to other industries in the future.

The finance segment comprises the credit guarantee
business and other finance-related business. In the former,
we focused on securing favorable deals through close
collaboration with partner financial institutions in terms ofboth marketing and controls. In other finance-related
business, we worked to build up high-quality loans in our
portfolio by meeting the needs of our sales partners, mainlywith our Flat 35 loans and Saison Asset Formation Loans.
As a result of the above, net revenue in the fiscal year underreview increased 10.4% year on year to ¥39.231 billion andbusiness income rose 15.3% to ¥19.29 billion.
1. Credit Guarantee Business• In the credit guarantee business, we focused on securinghigh quality transactions through close collaboration withpartner financial institutions in terms of both marketing andcredit controls, particularly in the area of guarantees for
multi-purpose loans on deeds for individual customers.
• We endeavored to establish a sophisticated partnershipframework with regional financial institutions through multipurpose loan guarantee products where the allowable usesof loan proceeds were expanded to include businessfinance. As a result, Credit Saison maintained partnerships
with 403 regional financial institutions in FY2018 (two lessthan in FY2017). The guarantee balance (before financial
guarantee liabilities) increased 0.6% from the previous
fiscal year-end to ¥346.6 billion.
2. Other Finance-related Business• Underpinned by the sense of trust and reassurance in the
Saison brand that we have cultivated through card member
benefits and in our credit card business, we promoted our
Flat 35 loans to assist home-buying customers, given thatit comes packaged with Saison Home Assist Loans tocover miscellaneous expenses when purchasing a home.
As a result, loans executed in FY2018 increased 13.4%
year on year to 7,514 for an executed loan value of ¥221.7
billion (+12.8%) and the total loan balance (after transfer ofreceivables to Japan Housing Finance Agency) grew
28.8% from the previous fiscal year-end to ¥764.6 billion.
• The number of executed Saison Asset Formation Loans(loans for purchasing investment property) increased
42.9% year on year to 7,287 owing to greater cooperation
with partners through study sessions and the like. The
executed loan value for these loans climbed 37.8% year
on year to ¥190.2 billion and the loan balance expanded
48.2% to ¥506.2 billion from the previous fiscal year-end.

2. Servicer (Loan Collection Agency) Business
The servicer business is mainly engaged in the consignment
collection of small unsecured loans. Net revenue increased
owing to growth in the number of companies outsourcing
receivable collections in the core agency services business.
Accordingly, overall business profit also increased.

<Lease Segment>
Leveraging our know-how in credit examination and speed
in granting credit as key strengths, we continue to mainly
engage in sales of office automation (OA) equipment, kitchenequipment, and air conditioners to meet the capex plans ofbusinesses. In the lease segment, we strengthened
relationships of trust by implementing a joint campaign withexisting mainstay lease dealers and worked to strengthen
our marketing to new priority dealers. As a result, net
revenue came to ¥12.586 billion (–2.3% YoY) and businessincome to ¥5.720 billion (+28.8%).

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MANAGEMENT’S DISCUSSION AND ANALYSISAs a result of the above, the balance of receivables held in
the other finance-related business came to ¥687.6 billion in
FY2018, up 41.2% from the previous fiscal year-end.
We also started offering our Saison Renovation Loan in
February 2019 to meet the needs of our customers for funds
to undertake renovations. Customers can apply for thisproduct online or through their smartphone and in place of ahuman operator, an AI-powered chatbot is ready to handle
customer inquiries 24 hours a day, every day of the year. We
have thus far met the needs of customers transitioning from
renting to buying a home mainly with our Flat 35 loans,
Saison Asset Formation Loans, and our Saison Rent
Guarantee Rent Quick service, but we will continue toexpand our so-called life-creation financial services with theaddition of the Saison Renovation Loan.

<Real Estate-related Business Segment>

to mitigate refinancing risk and reduce costs by strengthening relationships with existing lenders. In addition, theCompany aims to diversify sources of procurement by
cultivating new lenders, focusing on financial institutions
that offer the prospect of stable transactions over the longterm. In the case of direct procurement, apart from corporate bonds and commercial paper, Credit Saison is aiming
to mitigate liquidity risk and reduce costs by diversifying
its financing methods to include the securitization of receivables, which are immune to the Company’s creditworthiness.
To ensure smooth procurement of funds from capital
markets, the Company has obtained credit ratings from
Rating and Investment Information, Inc. (R&I) for the bondsthat Credit Saison issues. The Company has received an A+
rating for its domestic unsecured corporate bonds and an
a-1 rating for its domestic commercial paper.

This segment comprises the real estate and real estate leasebusinesses. Chiefly owing to the impact of sustained
demand for mainly non-investment properties driven by brisk
market conditions, net revenue in FY2018 rose 17.0% year
on year to ¥18.113 billion and business income grew 34.7%
to ¥8.35 billion.

2. Liquidity Management
Of the Credit Saison Group’s assets, 65.5% are installment
receivables, mainly in the credit service segment. Theirannual average turnover rate is in excess of three times,
helping Credit Saison to maintain a high level of liquidity.

<Entertainment Business Segment>

3. Cash Flowsa) Cash Flows from Operating Activities
Net cash used in operating activities in FY2018 was¥192.438 billion, compared to ¥40.023 billion used in theprevious fiscal year.
The outflow was mainly due to the booking of ¥45.763 billion
in pretax income and revenue from a net increase in tradereceivables, including accounts payable, and other liabilitiesof ¥18.248 billion on the one hand, and a net increase intrade receivables, including installment receivables, andother receivables of ¥252.393 billion, on the other.

This segment consists mainly of amusement businesses inwhich we strive to create sound, safe, and comfortablefacilities that have the backing of our customers. In FY2018,
net revenue dropped 5.7% year on year to ¥8.761 billion andbusiness income declined 2.3% to ¥2.078 billion.

LIQUIDITY AND FINANCIAL POSITION
1. Fund Procurement
The Credit Saison Group emphasizes stability and low costin fund procurement, and is endeavoring to diversify its
procurement methods. Key procurement methods include
counterparty transactions with banks, related financial
institutions, life insurance companies, and non-life insurancecompanies, along with indirect fund procurement such as
syndicated loans and establishing commitment lines withfinancial institutions. We also endeavor to procure funds
directly, issuing corporate bonds and commercial paper. As
of March 31, 2019, our consolidated interest-bearing debt
stood at ¥2,203.8 billion (including lease obligations of ¥1.5
billion). Of this, loans accounted for 57.1%, corporate bonds
for 18.8%, commercial paper for 23.2%, and securitizationof receivables, etc. for 0.9%.
With regard to indirect procurement, Credit Saison is strivingb) Cash Flows from Investing Activities
Net cash used in investing activities in FY2018 reached¥40.313 billion, compared to ¥45.134 billion used in theprevious fiscal year.
The outflow was mainly due to payments of ¥27.339 billion
for purchases of intangible assets as well as property andequipment related to the development of the joint coresystem, despite proceeds of ¥1.458 billion from the sales orredemptions of investment securities.

Table 5 shows changes in the allowance for uncollectible
receivables.

While the repayment of long-term debt resulted in an outflow
of ¥55.364 billion, there was inflow from a net increase incommercial paper of ¥121.5 billion, ¥115.9 billion from longterm loans, and ¥94.547 billion from the issuance of bonds.
As a result of the above, cash and cash equivalents as ofMarch 31, 2019 increased by ¥9.462 billion from the previous
fiscal year-end to ¥82.642 billion.

Table 5: Changes in allowance for uncollectible receivables(Millions of yen)

CREDIT RISKS
Table 4 shows a comparison of delinquent receivables andallowance for receivables.
Total receivables for credit risk purposes is the balanceobtained by adding contingent liabilities to the balances of
installment receivables on a managed basis, purchased
receivables, and lease investment assets. The balance ofreceivables overdue by more than 90 days totaled ¥60.527
billion (+14.9% YoY). The allowance for doubtful accounts incurrent assets as of March 31, 2019 was ¥67.244 billion(+29.9% YoY). As a result, the sufficiency ratio in relation to
the balance of receivables overdue by more than 90 days
increased to 146.7% from 121.6% at the end of the previous
fiscal year.

(Millions of yen)
2018

2017

2,797,166 2,524,884% change
10.8(2) Receivables overdue by more than 90
days

60,52752,674

14.9(3) Collateralized portion included in (2)14,687

10,11745.2(4) Allowance for doubtful accounts (current
assets)67,24451,75329.9

Receivables overdue by more than 90 days
as a percentage of receivables [(2) ÷ (1)]

2.2%

2.1%

̶

Ratio of allowance for uncollectible
receivables to receivables overdue by morethan 90 days [(4) ÷ ((2) – (3))] (sufficiency
ratio)

146.7%

121.6%

̶(Reference)
Receivables overdue by more than 90days excluding collateralized portion as apercentage of receivables [((2) – (3)) ÷ (1)]

1.6%

1.7%

̶

c) Cash Flows from Financing Activities
Net cash provided by financing activities in FY2018 reached¥242.211 billion, compared to ¥92.945 billion provided in theprevious fiscal year.

52

2017

Allowance for doubtful accounts atthe beginning of the year

53,57750,204

6.7

Impact of application of IFRS 9

13,799̶̶

53% change

Increase

33,19628,506

16.5

Decrease

31,502

25,132

25.3

Allowance for doubtful accounts at
the end of the year

69,07053,577

28.9

̶

19

̶

(Reference) Losses on bad debt

Table 4: Comparison of delinquent receivables andallowance for receivables(1) Receivables

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the lives of our customers with a focus on credit card,
prepaid card, and other payment services.
We aim to continuously enhance our corporate value bypracticing ESG-conscious management and contributing to
the development of an even more convenient andprosperous society.

MANAGEMENT PRINCIPLES,
BUSINESS ENVIRONMENTS,
ISSUES TO ADDRESS
Forward-looking statements contained herein are based on
the Credit Saison Group’s judgment as of the end of the
fiscal year under review.

(3) Objective Indicators for Assessing
Achievement of Management Targets(1) Our Basic Management Principles
We fulfill our corporate social responsibility by striving tomeet the expectations of all of our customers, shareholders,and business partners and suppliers. We, as a leading-edge
service company, will compete successfully in the market bypromoting our three shared values: practical implementationof the principles of customer satisfaction; mutual respect forour interests and those of our business partners andsuppliers; and developing a corporate culture of creative
innovation.
In our various businesses in Japan, for example our core
payment businesses and lease and finance businesses, we
continue to bolster synergies with Group companies. At thesame time, we are working to improve and strengthen our
network of alliances with a broad array of companies toprovide high value-added services to our customers. In our
global businesses, meanwhile, we aim to contribute to thedevelopment of regional economies by delivering financial
solutions that are well-suited to the actual conditions in the
countries where we have a business presence.

In seeking to enhance corporate value, business income,ROE, and shareholders’ equity ratio are the key performanceindicators for the Group.

(4) Business and Financial Issues
The following are the business issues the Group must
address as of the end of FY2018, as well as the various
measures for doing so.
1.Growth strategies and structural reforms in paymentbusinesses
We aim to become the number one company in the cashless
payment markets for both consumer spending and corporatetransactions by deploying measures to diversify payment
services and break the dominance of the cash market withmainly credit cards, prepaid cards, smartphone payments,and mobile POS systems.
In the consumer spending domain, we intend to expand ourcustomer base through a network of new alliances,collaborative services, and more subcontracted operations.
We also plan to switch our customer service structure to one
that provides varied levels of service depending on thecustomer’s track record instead of a uniform service,
implement initiatives that enable customers to complete
various services on their smartphones, and take steps totransform our business model, including the digitalization of
our Saison Counters.
In the corporate transaction domain, we will aim to realize
cashless transactions in the corporate market by expanding
our sales activities to the SME market and take steps tobuild a corporate platform.

(2) Medium- to Long-term Business Strategy
Based on our “leading-edge service company” management
philosophy, we continue to ceaselessly pursue customer
convenience and generate innovative services throughalliances with various partners that transcend the traditionalframeworks of group affiliations and business formats.
Driven by the use of leading-edge technologies and the entry
of industry outsiders, new financial services are emerging
one after the other and giving rise to more intense competition in the business environment that envelops our Group.
In the midst of these circumstances, we have set ourselves a
medium-term management vision of becoming a “NeoFinance Company in Asia” and formulated a medium-term
management plan to run through FY2021. The plan carries
the following mission statement: A Finance Company
Advancing with Customers for 50 Years—Providing Peace ofMind and Discovering Potentials in Money.
In aiming to achieve the targets in our medium-term
management plan, we will embrace the challenge oftransforming into a finance company that provides optimum
services related to the various money events that occur in

2.Creating businesses that improve quality of life forcustomers
Not only do we intend to further boost net member numbers
and smartphone app users in order to capture opportunities
in the still-expanding online marketplace, we also plan toestablish a new business model that blends our big data andcustomer platforms with the resources of external parties byengaging in flexible collaborations with venture companies
boasting new technologies and leading firms that possess

54

high-quality content platforms.
We will endeavor to improve the quality of life for ourcustomers by using digital technology to effectively andefficiently provide premium content and highly convenient
payment functions.

Business-related Risks
The following information is an overview of matters that
could significantly influence investor decisions. Forwardlooking statements contained herein are based on the Credit
Saison Group’s judgment as of the date financial statements
were presented to the relevant authorities.

3.Strengthening relationships with partners andexpanding new alliances in lease and financebusinesses
Outside of our credit card businesses, we are working todiversify our revenue sources through stronger relationships
with corporate partners by providing finance functions thatmatch market needs. These include the provision of leases
and rentals for office automation (OA) equipment, kitchenequipment, and other hardware that align with the capital
investment plans of businesses, credit guarantees weunderwrite on unsecured personal loans that can be used asworking capital or for business funds extended by regional
financial institutions with whom we are partnered, Flat 35
loans that come with special perks for card members, andSaison Asset Formation Loans that support the purchase ofproperty for investment purposes. We have thus far met thecapital needs of customers purchasing homes with our Flat
35 loans and Saison Asset Formation Loans, but we willcontinue to expand our so-called life creation financial
services covering customers transitioning from renting tohome buying or undertaking renovations with our Saison
Rent Guarantee Rent Quick service and Saison Renovation
Loan.

(1) Economic Conditions
The results and financial position in the Credit Saison
Group’s primary payment, lease, finance, real estate-related
and entertainment segments are subject to the influence ofdomestic economic conditions. Factors contingent upon
economic conditions, including worsening of the employment environment, disposable household income orconsumer spending accompanying an economic recession,
may affect transaction volume and repayment in Groupbusinesses including credit cards, loans, credit guarantees,
and real estate mortgage loans, and therefore have thepotential to negatively impact Group operating revenues andcredit cost.
Small- and medium-sized companies are the principal
customer group of the lease segment. Factors contingent
upon economic conditions, including contraction in capital
expenditures and deteriorating corporate performanceaccompanying an economic recession, have the potential tonegatively impact operating revenues, losses on uncollectible
receivables and other results, as well as our financial position.

(2) Change in Cost of Funds
4.Expanding our earnings platform in global
businesses with an eye to the future
We identify our global businesses as future earnings pillars
and are therefore stepping up our full-scale entry into theretail finance business to meet the needs of each country in
the rapidly growing Asian region.
To make further inroads in the finance business predominantly in Asia and to contribute to the development ofregional economies, we will continue to work on expanding
our businesses in the region and building a foundation for alonger-term overseas strategy with an eye on opportunities
for strategic partnerships with FinTech firms and Japanesecompanies that have entered those markets as well as local
companies.

The Group utilizes interest rate swaps and other means as ahedge against rises in interest rates, in addition to issuing
corporate bonds and borrowing from financial institutions tosecure stable and fixed funding. Nevertheless, unforeseenchanges in financial conditions and a reduction in the Credit
Saison Group’s credit rating may increase interest rates onfunds the Group procures and have the potential tonegatively impact operating revenues and other results aswell as our financial position. Changes in interest rates onloans and other instruments are impacted by a wide array of
considerations. These include changes in the terms ofcustomer contracts and interest rates applicable to othercompanies in the consumer credit business. The Credit
Saison Group may be unable to price its products andservices to reflect higher interest rates on the capital it
procures, which would have the potential to reduce theGroup’s interest margin.

(3) Competitive Environment
Japan’s financial system has undergone deregulation, which

55

Corporate
Data

Financial Information

VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

MANAGEMENT’S DISCUSSION AND ANALYSIS

has resulted in energetic restructuring of the retail financial
services industry in Japan. Industry realignment in the credit
card sector, the entry of competitors from other industries
and other events have caused competition to intensify. In
this changing market, the results and financial position of theCredit Saison Group may be negatively impacted by theoccurrence of events such as reduced profitability due to adecrease in fee rates from member stores or changes in theterms of transactions with business partners.

personal information concerning its cardmembers andothers, and implements appropriate controls throughout theGroup. However, if an incident such as leakage or illegal useof this information were to occur, the Group might be subject
to administrative guidance, orders, or fines for violation ofbusiness process regulations under the Private Information
Protection Law. This would damage the Credit Saison
Group’s credibility and cause other problems that would
have the potential to negatively impact the Credit Saison
Group’s performance and financial position.

(4) Unfavorable Performances among Primary
Alliance Partners

Regarding Management Indicators
In recent years, asset efficiency (ROA) has declined due tothe expansion of the finance business that contributed
profits and the decrease in yields in the each business, aswell as the increase in depreciation expenses due to theoperation of the Associated Core System. On the other
hand, we are actively promoting overseas expansion withthe aim of building foundation for new businesses andsustainable growth in the future.

Financial Policy & Capital Policy
Regarding structure of interest-bearing debt:
Over 60% of the interest-bearing debt is composed oflong-term funds such as long-term borrowing andcorporate bonds
Active use of CP benefited from Bank of Japan's
introduction of negative interest rates
Fixed interest rate procurement accounts for about 60%of the total, reducing interest rate fluctuation risk

Changes in asset balance by business(7) Regulatory Changes

In the payment segment, the Credit Saison Group has
agreements, including affinity card issuance and members t o re c o n t r a c t s , w i t h n u m e ro u s c o m p a n i e s a n dorganizations. Unfavorable performances among these
alliance partners have the potential to negatively impact theCredit Saison Group’s performance and financial position.
For example, the Credit Saison Group acquires many of its
new cardmembers through the outlets of alliance partners in
the retailing industry. Reduced ability to attract customers or
lower sales among these companies may lead to weak
cardmember acquisition and sluggish transaction volume,and therefore has the potential to negatively impact theCredit Saison Group’s operating revenues.
Given that the Credit Saison Group has entered into capitaltie-ups with some of these partners, unfavorable
performances at alliance partners have the potential tonegatively impact the Group’s performance and financial
position.

The Credit Saison Group operates in accordance withcurrent regulations and the risks that result from theseregulations. The Group’s businesses are subject to the
Installment Sales Act, the Money Lending Business Act andother laws. Circumstances arising from future amendments
to these laws, or changes or tightening of their interpretation,or new legal restrictions, would have the potential tonegatively impact the Credit Saison Group’s operations,performance and financial position.
Moreover, a portion of interest that was higher than theinterest rate ceiling set by the Interest Rate Restriction Act
has been deemed invalid and may be subject to claims forreimbursement. Credit Saison is booking an allowance forlosses on interest repayments in preparation for future claims
for reimbursements of this type, but future regulatory
revisions or regulatory trends that unexpectedly expanded
such reimbursement claims would have the potential tonegatively impact the Credit Saison Group’s performanceand financial position.
The type, content and degree of potential regulatory
revisions are difficult to predict, and the Credit Saison Group
has no control over their potential impact on its operations.

(5) System Operation Problems
The Credit Saison Group relies heavily on computer systems
and communication networks in numerous aspects of its
main businesses, including the payment segment. A numberof situations could compromise the Credit Saison Group’s
sales capabilities, damage its credibility and cause otherproblems that would have the potential to negatively impact
the Credit Saison Group’s performance and financial
position. These situations include Group and counterparty
system inoperability resulting from temporary systemoverloads due to factors such as system errors or spikes inaccess caused by Group or counterparty hardware orsoftware problems; breakdowns in communication networks
resulting from factors including natural disasters andaccidents; and illegal or inappropriate system operation.

Balance of interest-bearing debt (Note 1) (Note 2)(non-consolidated)(9) Natural Disasters etc.
Major natural disasters such as earthquakes could cause
physical damage to shops and facilities owned by the Credit
Saison Group, and personal injury to employees. Such
events have the potential to negatively impact the Group’s
performance and financial position.

(6) Leakage of Personal Information and Other
Issues

20,00015,00011%

12%18,50917,241
400
2,360

400
3,580

2,800

3,050

11,681

11,47919,516
200

6%

8%

5,110

20%

5%

4,150

45%

5%

55%

4%

3,895
3,400

4%

5%

22,011
200

11%

9%

10,00012,021

12,551

Payment business
Investments-related0
Borrowing

2015
Bonds

2016
CP

2017

2018 (FY)

Liquidation of receivables(Note 1) Interest-bearing debt includes loans that have been moved off the balance
sheet due to liquidation.
(Note 2) Lease obligations are excluded from interest-bearing debt.

Long-term / fixed borrowing ratio (non-consolidated)
90.0%

80.0%

Long-term borrowing ratio
73.9%
68.2%

70.0%

60.0%

Lease business

Saison Fundex business

5,000

64.2%
61.8%

50.0%

67.3%

62.6%

65.9%

60.3%

Fixed interest borrowing ratio

40.0%
2015

2016

2017

2018

(FY)

The Credit Saison Group maintains a large volume of

56

2018

(Billions of yen)

25,000(8) Impairment of Non-financial Assets
Significant declines in the fair value of the land and property
owned by the Credit Saison Group or deterioration inearnings in a business using fixed assets when a near-term
recovery is unlikely could impair such fixed assets and havethe potential to negatively impact the Group’s performanceand financial position.

2014

57

Finance business

Atrium business (real estate-related)
Other assets

Corporate
Data

Financial Information

VisionStrategy

Corporate
Governance

Sustainability

Financial
Information

Corporate
Data

MANAGEMENT’S DISCUSSION AND ANALYSIS

Capital Policy (Shareholder Returns & Management Indicators)
Maintaining and improving financial soundness as a priority, aiming to improve asset efficiency by realizing sustainablegrowth through strategic investments in Japan and overseas, expanding business with excellent asset efficiency, andreducing inefficient assets.

Maintaining andimproving financial soundness (credit rating A+)

Distribution of capital surplus

Risk capital management

Aggressive investment in growing fields• Strategic investments in Japan and overseas(capital alliance / M&A)
• Investments in new alliances in various businesses• Knowing the possible risks for each business• Minimizing risks by not depending on any
business solely• Improving asset efficiency (=profit margin)• Expansion of surplus quota by changing thebusiness portfolio

To increase shareholder value, Credit Saison attaches
great importance to initiatives aimed at reinforcing its
corporate structure and achieving ongoing expansion inits businesses. On returning profits to shareholders, we
strive to enlarge internal reserves to realize the initiatives
articulated above, while we also seek to deliver appropriate, stable, and continuing dividend payments to ourshareholders.
As a matter of basic policy, a fiscal year-end dividend ispaid once a year from retained earnings. The annual
general meeting of shareholders is the decision-making

body that authorizes fiscal year-end dividends. Regarding
dividends from retained earnings for the fiscal year underreview, based on the above, the amount has been set at¥45 per share.
Also, the Company plans to invest internal reserves
efficiently in order to achieve low-cost operations andpromote expansion of its businesses.
We have stipulated in our articles of incorporation to namethe Board of Directors as the body in charge of authorizing
interim dividends, with September 30 of every year as therecord date.

Performance indicators

Dividend per share and payout ratio

Appropriate shareholder returns• Stable & continuous dividends through expansion ofrevenue base
• Stock buyback to improve capital efficiency

Capital policy (Risk capital management)● Re-measurement is performed regularly to reflect track record updates and changes on balance sheet.

• No dividend cuts in the past even during times of management hardship•Shareholders'equity ratio:•ROE of10%+550 (Billions of yen)

● ALM management is introduced to measure risk and allocate risk capital for each business.
● Profit & loss fluctuation risks are measured by aiming at a confidence level of 99.75% using EaR ※ model in order tomaintain A+ rating.

Dividend policy: Stable and continuous dividend payments

Medium- to long-term KPIAround15%(%) 25500

490.9

Atrium businessreorganization(spin-off)

20
60
15

Payment business

Lease business

Credit guarantee
business

Interest rate

Bad debt

etc.
Finance business

Real estatebusiness

Affiliatedcompanies

45
Start of Atrium
restructuring plan

15.3

Risk factors

Completion ofAtriumrestructuring plan

40

Full
implementationof revised
Money Lending
Business Act

30

10

400

6.2

350

23.7
45

20

5

0

300
11

12

13

14

15

16

Equity ratio

0

0
08

18 (FY)IFRSJ-GAAP

Shareholders' equity

17

09

10

11

12

13

ROE

Dividend per share

Risk capital allocation policy(excludes the impact of adopting IFRS 9)

1. 20% of consolidated capital out of risk capitalsurplus is secured as the minimum required capital(¥100.7 billion).

(2018)

Risk capital allocate foreach business

2. After excluding minimum required capital,
investment allowance (¥16.6 billion) is allocated tohigh-profit business, growing business, newbusiness, or returns to shareholders.

378.9bil¥

Dividends ¥7.4bil

3. Return on investment is verified by monitoring eachbusiness asset, and investments are planned byreplacing, reducing and effectively using inefficient
assets.

Minimum required capital
Risk capitalsurplus¥117.3bil¥

100.7bilInvestment
allowance ¥16.6bil

58

14

15

16

17

18

19 (FY)(Forecast)

18.6 12.8 9.4 32.7 25.5 12.6 26.1 42.2 38.3 30.5 30
Net▲
income (¥55.5 bil) bil
bil bil
bil
bil
bil
bil
bil
bil
bil bil
J-GAAP

Consolidated capital: ¥503.5 billion

15

35

30

Price
fluctuation(%) 60

1st stage release of
joint core system※Earnings at Risk

450

Assets categorized by business

Completion of system migration(2nd stage system release)

80 (Yen)59

Payout ratio

IFRS

Financial Information

VisionStrategy

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONCONSOLIDATED STATEMENT OF INCOME

Credit Saison Co., Ltd. and Consolidated Subsidiaries

Credit Saison Co., Ltd. and Consolidated Subsidiaries

As of March 31, 2019

For the Year Ended March 31, 2019

Thousands of U.S.
dollars

Millions of yen

Note

As of March 31,
2019

As of March 31,
2018

IFRS transition date
(As of April 1,2017)

Financial
Information

Thousands of U.S. dollars

Note

FY2018(April 1, 2018 toMarch 31, 2019)

FY2017(April 1, 2017 toMarch 31, 2018)

FY2018(April 1, 2018 toMarch 31, 2019)

Revenues

Cash and cash equivalents

8, 39

Trade and other receivables

9, 37, 38, 39

Operational investment securities

Corporate
GovernanceMillions of yen

As of March 31,
2019

AssetsInventories

Sustainability¥

82,642¥

2,393,197

73,179¥2,154,678

65,4652,012,153$

Income from the credit service business

29, 39¥ 226,250¥ 221,049$ 2,038,111

744,460

Income from the lease business

29, 3912,57912,860113,319

21,558,392

Income from the finance business

29, 3939,23135,536353,406

Revenue from the real estate-related business

29, 3942,09837,388379,23129

50,82751,272457,862

29, 32, 39

854

223

7,699

Total

371,842358,3313,349,629

Of interest income *107,221̶

965,86810

151,385

137,486

133,180

1,363,710

11, 19, 39

39,97335,95732,878360,087

Revenue from the entertainment business
Finance income

Investment securities

12, 19, 39

91,553

100,179

85,787

824,734

Other financial assets

13, 37, 38, 39

11,916

11,947

9,646

107,344

Cost of sales

14

29,34130,22130,798264,317

For the real estate-related business

30

24,921

23,095

224,494

For the entertainment business

30

42,066

41,984

378,939

66,98765,080603,434

304,855

293,250

2,746,194

Property, plant and equipment
Intangible assets

15

219,972

220,609

204,463

1,981,559

Investment property

17

56,68349,97042,768510,613

Investments accounted for using equity method

18

92,75288,51881,936

835,536

Deferred tax assets

20

32,14830,67938,446289,603

Finance costs

98,167

Share of profit of investments accounted for using equity method

10,897

Other assets¥ 3,212,465

Total assets

13,549¥ 2,946,978

8,277¥ 2,745,804$ 28,938,527

Liabilities and equity

Financial guarantee liabilities

Net revenue
Selling, general and administrative expenses

31

220,974

214,026

1,990,585

Impairment losses on financial assets

39

34,08829,456

307,075

32, 39

9,878

9,211

88,98318

7,355

12,306

66,259Other income

33, 394,138

13,43437,281Other expenses

33, 395,643

13,44650,84145,76352,850412,250

16,423

14,463

147,941

29,34038,386

264,308

Owners of parent

30,51738,446274,906

Non-controlling interests(1,176)(59)(10,597)

Profit29,34038,386

264,308

Profit before tax
Income tax expense

Liabilities
Trade and other payables

Total

21, 38, 39¥

314,72939¥

299,714¥241,308$ 2,835,145

8,305

7,396

6,465

74,820Bonds and borrowings

22, 392,203,818

1,956,979

1,857,074

19,852,436

Other financial liabilities

23, 38, 39

28,441

20,59915,171

256,205

Income taxes payable

20

3,120

5,044

9,544

28,107

Provision for point card certificates24

104,963

101,319

94,033

945,527

Provision for loss on interest repayments

24

17,762

23,11430,567160,008

Other provisions

24

1,530

1,147

922

13,789Deferred tax liabilities

20

1,025

1,013

814

9,233

Other liabilities

26

37,02639,80133,013

333,5442,720,724

2,456,129

2,288,917

24,508,820

Total liabilities
Equity20

ProfitProfit attributable toYen

Earnings per share

U.S. dollars

Basic earnings per share35¥ 186.84¥ 235.39

Diluted earnings per share

35

̶

̶

27

75,92975,92975,929683,986

Capital surplus

27

85,642

85,62985,630771,485

Retained earnings

27

360,303344,291

311,539

3,245,681

̶(*) Pursuant to IFRS 9, interest income is calculated using the effective interest method.

RECONCILIATION FROM PROFIT BEFORE TAX TO BUSINESS PROFITTreasury shares

27(52,881)(52,880)(52,879)(476,363)

27, 3922,00435,913

34,619198,222

For the Year Ended March 31, 2019

Millions of yen

Total equity attributable to owners of parent
Non-controlling interests

490,998

488,883

454,838

4,423,013

743

1,965

2,047

6,693

491,741

490,849

456,886

4,429,706¥ 3,212,465¥ 2,946,978¥ 2,745,804$ 28,938,527

Total equity
Total liabilities and equity

1.68

Credit Saison Co., Ltd. and Consolidated Subsidiaries

Share capital

Other components of equity$

60

Profit before tax
Reconciliations (Other income)Reconciliations (Other expenses)

Thousands of U.S. dollars

FY2018(April 1, 2018 toMarch 31, 2019)

FY2017(April 1, 2017 toMarch 31, 2018)

FY2018(April 1, 2018 toMarch 31, 2019)¥ 45,763¥ 52,850$ 412,250

̶
5,517(8,812)
13,277

̶
49,705

Subtotal

6,469

̶
4,464

58,274

Business profit

52,23357,314

470,525

Adjustments for the application of the effective interest method to financial assets

For details on the reconciliation items, please refer to Note “7. Operating Segments.”

61

951

8,569

Corporate
Data

Financial Information

VisionStrategy

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYCONSOLIDATED STATEMENT OF CASH FLOWS

Credit Saison Co., Ltd. and Consolidated Subsidiaries

Credit Saison Co., Ltd. and Consolidated Subsidiaries

For the Year Ended March 31, 2019

For the Year Ended March 31, 2019

Millions of yen

FY2017(April 1, 2017 to March 31, 2018) Note
Balance as of April 1, 2017

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesOther
componentsof equity¥ 75,929¥ 85,630¥ 311,539
38,446¥ (52,879)¥ 34,619

Other comprehensive income34̶Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer from other componentsof equity to retained earnings

̶

27
27
28

57

Changes in ownership interest in
subsidiaries̶¥ 75,929

Balance as of March 31, 2018

1,351
1,351

(5,719)27

Total transactions with owners

̶(1)

38,446

(0)

(32)

(0)
¥ 85,629(5,693)¥ 344,291¥ 454,838
38,446
1,351
39,798(1)
̶
(5,719)(57)¥ 35,913¥ 2,047
(59)
(12)
(72)

Total

Note

¥ 456,886
38,386
1,339
39,726(1)
̶
(5,719)

̶

(57)

(1)
¥ (52,880)

Noncontrollinginterests

Total

Balance as of April 1, 2018
Cumulative effect of accountingchange¥ 75,929¥ 85,629¥ 344,291¥ (52,880)¥ 35,913¥ 488,883(3,343)(12,491)

32,569476,391
30,517(10,203)
20,314(0)
0(5,719)5(9,148)75,929

Restated balance

85,629ProfitOther comprehensive income34̶Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer from other componentsof equity to retained earnings

̶

27
27
28

335,143
30,517(52,880)

30,517

̶
(0)
0

(0)

(10,203)(10,203)(5,719)27

362

Changes in ownership interest in
subsidiaries̶¥ 75,929

Balance as of March 31, 201912
¥ 85,642¥ 1,96513(5,357)¥ 360,303(0)¥ (52,881)(362)¥ 22,004(5,706)¥ 490,998

¥

(36)
743

Capitalsurplus$ 683,986

Balance as of April 1, 2018
Cumulative effect of accountingchangeSharecapitalRetainedearnings$ 771,368 $ 3,101,447

5771,368

ProfitOther comprehensive income

34

Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer from other componentsof equity to retained earnings

̶

27
27
28

Balance as of March 31, 2019

3,019,035
274,906(476,359)

274,906

̶
(5)
1

(0)

27

3,261

Total

$ 4,403,957(112,529)

293,396

4,291,428
274,906(91,912)
182,993(5)
0(51,521)(91,912)(91,912)(3,261)

8,160

83,286

Share of loss (profit) of investments accounted for using equity method(7,355)(12,306)(66,259)

Loss (gain) on sales of investment securities

̶
1,054

(8,536)

̶
9,502(4,305)(125,202)(1,551)(3,344)(13,979)

Increase (decrease) in trade and other payables

18,24855,813

164,387

478,357
29,340(10,213)
19,127(0)
0(5,719)

Increase (decrease) in provision for point card certificates

3,643

7,286

32,821

Increase (decrease) in provision for loss on interest repayments(5,352)(7,453)(48,211)

Increase (decrease) in financial guarantee liabilities

1,260

930

11,354

Other(1,831)

6,303(16,500)(1,606,667)(178,356)(20,413)Interest and dividends received

4,304

3,223

38,777

Interest paid

(9,325)(9,137)(84,006)

Subtotal

Income taxes refund

820

64

7,395

Income taxes paid

(9,882)(13,759)(89,024)(192,438)(40,023)(1,733,525)(5,673)¥ (11,711)

1,458

14,712

13,139(27,339)(37,578)(246,278)

Net cash used in operating activities
Cash flows from investing activities
Proceeds from sales or redemption of investment securities
Purchase of property, plant and equipment, and intangible assets
Proceeds from sale of property, plant and equipment, and intangible assets(23)

Payments for acquisition of subsidiaries(5,742)¥ 491,741¥

Purchase of investment securities

̶

Purchase of investment property
Payments for loans receivableCollection of loans receivable
Other

Total

$ 17,706$ 4,421,664(112,529)

̶̶$ 683,986

117

4,309,134
264,308(92,003)
172,305(5)
0(51,521)̶

116(48,259)$ 771,485 $ 3,245,681

62(4)(3,261)(51,408)$ (476,363) $ 198,222 $ 4,423,013(325)(51,110)

33

20

299

(8,028)(7,531)(72,325)

̶
(664)

(951)
(1,503)

̶(5,989)

27

17

251

(126)

(609)

(1,138)(40,313)(45,134)(363,152)

Net increase (decrease) in short-term borrowings

36

Net increase (decrease) in commercial papers

36¥

121,500

31,5001,094,495

Repayment of securitized borrowings

36
36

̶
115,900(20,000)

Proceeds from long-term borrowings

104,700̶
1,044,050

Repayments of long-term borrowings

36(55,364)(69,656)(498,730)

Proceeds from issuance of bonds

36

94,547

84,694

851,706

Redemption of bonds

36(20,026)(50,000)(180,398)

Repayments of lease obligations

36

(603)

(561)

(5,437)

(23)

(10)

(207)

Proceeds from sale of treasury shares

0

Payments for purchase of treasury shares

(0)

̶
(1)

(5)

Payments for acquisition of interests in subsidiaries from non-controlling interests

Dividends paid
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents

117$

Cash flows from financing activities

Noncontrollinginterests

17,706(10,597)(90)(10,688)102(13,898)

System transfer cost

Net cash used in investing activities(30,117)(51,521)

Changes in ownership interest in
subsidiaries
Total transactions with owners

̶

Other
componentsof equity$ (476,359) $ 323,514(82,412)683,986

Restated balance

Treasuryshares9,245

Decrease (increase) in operational investment securities for sale

Thousands of U.S. dollars
Equity attributable to owners of parent
Note(19,368)

Interest expenses

Decrease (increase) in inventories¥ 490,849(36)(1,611)

29,721(12,491)
1,965(1,176)(10)(1,186)(2,150)(2,273,606)

Total

̶

(362)

13

Total transactions with owners

Noncontrollinginterests

Total

213,136

Interest and dividend income

12,969(5,764)¥ 490,849

Other
componentsof equity412,250(140,801)(10)¥ 1,965

Treasuryshares$13,5283,299(5,753)¥ 488,883

Retainedearnings

52,85023,660(252,393)(43)

Capitalsurplus¥

Depreciation and amortization

Decrease (increase) in trade and other receivables

(10)

Share
capital45,763

FY2018(April 1, 2018 toMarch 31, 2019)

̶

(32)

Equity attributable to owners of parent¥

FY2017(April 1, 2017 toMarch 31, 2018)

Loss (gain) on valuation of investment securities

Millions of yen

FY2018(April 1, 2018 to March 31, 2019) Note

Cash flows from operating activities
Profit before tax

FY2018(April 1, 2018 toMarch 31, 2019)

Financial
Information

Thousands of
U.S. dollars

Millions of yen

Equity attributable to owners of parent

ProfitCorporate
Governance

Sustainability

(207)

(325)
(51,733)$ 6,693 $ 4,429,706

Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period

8

Cash and cash equivalents at end of period

863(8,000)¥$(72,065)

0(5,719)(5,719)(51,521)242,21192,9452,181,887

3

(72)

34

9,462

7,714

85,24473,179¥18,00082,642

65,465¥73,179659,215$

744,460

Corporate
DataCorporate Data

VisionStrategy

Sustainability

Corporate
Governance

Financial
Information

Our History
News releases and latest topics arepresented on our corporate website.

As a leading service company, Credit Saison has resolutely been challenging itself to be the first in the industry forinnovation creation, expanded its business domain, and working on a wide variety of alliances beyond the Company’s
affiliates. Look out for more things to come from Credit Saison.
From 1951

From 2000

From 2010

Challenge to change common practices in the industry

Diversified business and expanded alliances

Scaled-up payment business and full-scale global business

1951

May. Company established as Midoriya Co., Ltd.

1968

Jun. Listed on the First Section of the Tokyo Stock Exchange.

1976

Mar.

Formed a capital tie-up with Seibu Department Stores,
Ltd. (currently Sogo & Seibu Co., Ltd.)

1980

Aug.

The Company’s name was changed from Midoriya
Department Stores to Seibu Credit Co., Ltd.

1982

Aug. issuance.

2000

2002

Aug. “Net Answer,” an Internet service, started.

Feb.

1985

1988

Jul.

Jun.

Launched Super Value Plus, exclusive insurance formembers.

2004

Basic agreement reached with Takashimaya Company,
Apr. Limited on a strategic alliance in the credit card business.
(TAKASHIMAYA Saison Card issued in September 2004).

Developed an international credit card with nomembership fees through a tie-up with Visa
and Mastercard.

2011

Basic agreement on forming a strategic alliance concluded
and UC CARD Co., Ltd.

Apr. New credit center Ubiquitous started operation.
2012

1989

1990

Credit Saison began to issue Saison Postal
Savings Cards, the first cards in Japan to
Apr.
support signatureless transactions (in Seiyu
food outlets).

1991

Jan. Affinity card business started.

1995

Jun. JCB Co., Ltd.

Aug.

Tie-up with China UnionPay for affiliated store operationsin Japan.

Nov.

Started the first use of Eikyufumetsu points for net
shopping in the industry.

Apr.

Started handling “Flat 35 Plus” mortgage loan
packages.

Oct. Saison Platinum American Express® Card issued.

2006

Credit Saison merged with
Jan. UC Card Co., Ltd. (cardissuance business).

Jun.

2013

Agreements to form a business alliance with The Shizuoka

Apr.

Oct.

2014

(Heart One Card issued in May 2007)

2008

Saison Asset Management Co., Ltd. launched own
investment trusts.
Mar. Agreement for comprehensive alliance with Yamaguchi
Financial Group, Inc. (YM Saison Card issued in October2007).

2009

64

Jun.

Rental business launched (commencement of home
appliance rental in an alliance with Yamada Denki).

Oct.

L a u n c h e d n e w c re d i t o p e r a t i o n c e n t e r “ K a n s a i
Ubiquitous”.

Mar. Started handling “Flat 35” loans.

Tied up Saison Eikyufumetsu Points Program with JP
Bank’s prepaid card “mijica.”

Apr.

Acquired 100% shares of Omnibus K.K., a digitalmarketing company.

indefinite-term contracts.
Formed a capital tie-up with leading Southeast Asian

Dec. ridesharing service operator Grab Holdings Inc. andestablished Grab Financial Services Asia Inc.
2018

Mar.

2015

Established investment platform “Investment Accounts.”
Launched new point investment service.
Established Kisetsu Saison Finance (India) Private Limitedin India

June

Established a local subsidiary in Vietnam to
conduct consulting.
Nov.

Credit Saison Partners with SCG, Mitsui & Co. Agreeingon Establishment of SIAM SAISON Co., Ltd. in Thailand.

Apr. Opened a representative office in Jakarta, Indonesia.
Jan. Started handling Saison Reform Loan.
Apr.

Commenced Saison Portal and UC Portal thatJul.
provide smartphone apps for cardmembers.

Shareholder agreement signed with Daiwa House Industry

Issued SAISON Platinum Business American Express ®
Jan.
Card for individual proprietors and business owners.

Jan.

Abolished employee classifications and launched a

2019

Points exchange website “Eikyufumetsu.com”(Current
Saison Point Mall) launched.

Established Qubitous Co.,L t d . , t h e i n d u s t r y ’s f i r s t
comprehensive processing
Oct.
service specialist. (Qubitous
integrated by absorption-typemerger in April 2020).

Started handling “Saison Property Investment Loan” forpurchasing apartment for investment purposes.

May. Established a local subsidiary in Singapore.

Nov. Co., Ltd. and joint venture established.

2007

Sep.

Sep. common HR system under which all employees are on

Entered alliance with Coiney, Inc. on smartphonesettlements.

October 2006 and ALL-S Card issued in April 2007).

SAISON American Express ® Card
issued through an affiliation withOct.
AMERICAN EXPRESS®.

Commenced offering “Saison Smart Money Transfer
Service”.

Jul. “Saison Rent Guarantee Rent Quick” launched.

Jan. Started handling Saison Asset Formation Loans.

Comprehensive alliance formed with Yamada Denki Co., Ltd.
(Yamada LABI Card launched in July of the same year).

Jul. Bank, Ltd. (Shizugin Saison Card Co., Ltd. established inMay.

Jun. Established a representative office in Hanoi, Vietnam.

Mar. Saison Card Loan issued.

Saison JCB Card issued in cooperation with1997

I s s u e d N E O M O N E Y, a p r e p a i d c a r dJul. exclusively for use by Japanese travelers
visiting other countries.

Aug. with the Mizuho Financial Group, Inc., Mizuho Bank, Ltd.
2005

Company name changed to Credit Saison Co.,
Oct.
Ltd.

2017

Feb. up with Resona Holdings, Inc. (Resona Card+S (Resona
Card Saison) was issued in October 2004).

Feb. Commenced offering Saison “Home Assist Loans”.

“Point Investment Services” for long-term
Dec. investment using Saison Eikyufumetsu points
started.

Decision made to form a strategic equity and business tie-

Started the lease business.

May. Started credit guarantee business.

2016

S t re n g t h e n e d a l l i a n c e w i t h A M E R I C A N
EXPRESS® and extended card lineup to four
card categories.

Aug. Kosan Co., Ltd. (Idemitsu Card mydoplus issued in April
Sep.

Basic agreement reached on comprehensive businessalliance with SEVEN & i FINANCIAL GROUP CO., LTD.
(Apr. 2011, Sogo & Seibu Card business was split off into
a new joint venture).

Apr. Started operation of Akagi Nature Park.

2004).

Started a nationwide network of Saison Counters.

Mar. Seibu Card name changed to SAISON CARD.

Mar.

Agreement reached on a comprehensive alliance with
2003

Started issuing Seibu Cards, instant credit and instant

1983

Eikyufumetsu Points, which never expire,
started.

2010

Sep.

Saison Asset Management Co., Ltd. formed a capital andoperational alliance with Japan Post Co., Ltd.

Nov.

Formed a capital and operational alliance with Singaporebased MatchMove Pay Pte Ltd.

Established Saison Capital Pte. Ltd. as an overseas

Jun. venture capital vehicle

Formed a comprehensive capital and business tie-up with
Vietnam’s Ho Chi Minh Development Joint Stock
Commercial Bank (HD Bank) and established HD SAISON
May. Finance Company Ltd.

Jun.

Launched the special class benefit program, Saison
Classe.

Sep.

Capital business partnership with Daiwa Securities Group
Inc.

Oct.

Started issuing “freee Saison Platinum Business American
Express® Card”

Nov.

S t a r t e d “ S a i s o n C a rd l e s s P a y m e n t ” f o r i n s t a n t
membership, instant usage via smartphones

Nov.

Started providing “Saison Pocket” smartphone securities
service.

Established Saison Ventures Co., Ltd., the first
corporate venture capital established by
Japanese credit card company.

Started recruiting the “Saison Cobalt Business American
Express® Card” business card.

Dec.
Established PT. Saison Modern Finance, a finance services
company, in Indonesia.

Sep.

65

Corporate
DataCorporate Data

VisionBoard of Directors / Audit & Supervisory Board Members /Executive Officer (As of March 1, 2020)

Issued Cards-Examples

Board of Directors

Premium Cards

SAISON Platinum
American Express® Card

Strategy

Sustainability

Corporate
Governance

Financial
Information

For Individual proprietorships
and small businesses

SAISON Gold
American Express® Card

SAISON Blue
American Express® Card

SAISON Pearl
American Express® Card

SAISON Platinum BusinessAmerican Express® Card

PARCO Card

Mitsui Shopping Park Card Saison

MUJI Card

Loft Card(PARCO CO., LTD.)(Mitsui Fudosan Co., Ltd. and Mitsui Fudosan
Retail Management Co., Ltd.)(Ryohin Keikaku Co., Ltd.)(THE LOFT CO., LTD.)

Main Retail Affiliate Cards

Hiroshi Rinno

N&R

Representative,
Chairman and CEO

Masahiro Yamashita

N&R

Representative,
Executive President and COO

Corporate strategy, global strategy, branding,affiliated companies affairs

Naoki Takahashi

Representative,
Executive Vice President and CHO

Overall management execution, credit card joint
ventures affairs Head of Public Relations Office,Payment Business Division, Sales Development
Division

Promotions of strategies, new businesses, Headof Audit Office, General Affairs Dept., Strategic
Human Resources Dept., IT Strategy Dept.

N&R
Nomination & Remuneration Committee member

Walmart Card SAISON
American Express® Card
(Seiyu G.K. and Walmart Japan Holdings Co., LTD.)

Main Retail Affiliate Cards

Katsumi Mizuno

Tatsunari Okamoto

Yoshiaki Miura

Shingo Baba

Kazutoshi Ono

Akihiro Matsuda

Head of Branding Strategy
Dept., Processing Business
Division, Global Business
Division, In charge of Strategic
Planning Dept.

Head of Branding Strategy
Dept., Processing Business
Division, Global Business
Division, In charge of Strategic
Planning Dept.

General Manager, Payment
Business Division, Sales
Development Division,
In charge of Solution Business
Dept., Affinity Business Dept.
No.1 & 2, Business Strategy
Dept., Alliance Development
Dept.

Head of Corporate Planning
Dept., Corporate Risk
Management Dept., Treasury &Accounting Dept.

Head of Digital Innovation
Division, General Manager,
Digital Innovation Division,
General Manager, Technology
CenterIn charge of special role

Kazue Yasumori

Kaoru Hayashi N&R

Managing Director,
Managing Executive Officer

Yasuyuki Isobe
Director,
Executive Officer

Head of Credit Division, General
Manager, Credit Division, In
charge of Card Finance Dept.,
Affiliated Store Planning Dept.

Managing Director,
Managing Executive Officer

Shunji Ashikaga
Director,
Executive Officer

Director,
Managing Executive Officer

Director,
Managing Executive Officer CTO

Director,
Executive Officer

TAKASHIMAYA SAISON Card
(Takashimaya Company, Limited)

Airline and Railway
Affiliate Cards

Director,
Executive Officer

In charge of Saison AMEX Dept.,
Business Solution Dept.,
Credit Guarantee Dept.,
Corporate Sales in Sales
Planning Dept.

Audit & Supervisory Board Members

Managing Director,
Managing Executive Officer

Outside Director (Independent)

Naoki Togashi N&R

Outside Director (Independent)

Nana Otsuki N&R

Outside Director (Independent)

Tokyo Metro To Me CARD
(Tokyo Metro Co., Ltd.)

Airline and Railway Affiliate Cards

YAMADA LABI ANA MILEAGE CLUB
Card SAISON American Express® Card

SEIBU PRINCE CLUB Card
Saison(Yamada Denki Co., Ltd. and All Nippon
Airways Co., Ltd.)(SEIBU HOLDINGS INC.)

Other Affiliate Cards

JQ CARD Saison

MileagePlus SAISON Card

(Kyushu Railway Company)(United Airlines, Inc.)

Social Contribution Cards

MIZUHO Mileage Club Card Saison

Cinemileage-card Saison

JAPAN Card Saison(Mizuho Bank, Ltd.)(TOHO CINEMAS LTD.)(Japan Football Association)

Japan Leukemia Research
Fund Card Saison(Japan Leukemia Research Fund)

Non-affiliate Cards (Proper Credit Cards)

Corporate Card

Prepaid Card

General Manager, Processing
Business Division, In charge ofStrategic Human Resources
Dept.

Executive Officer

SAISON CARD International

UC CardUC Card Gold for SMEs

UC Corporate Card (Gold)

COCOKARA CLUB CARD
(cocokara fine Inc.)

Haruhisa Kaneko
Standing Audit & Supervisory
Board Members

Hiroaki Igawa

Standing Audit & Supervisory
Board Member (Outside)

Munehiro HaradaStanding Audit & Supervisory
Board Member (Outside)

Executive President

Executive Officer

Masahiro Yamashita

Akihiro Matsuda

Executive Vice President

Yasuyuki Isobe

Naoki Takahashi

Shunji Ashikaga

Managing Executive Officer

Kazue Yasumori

Katsumi Mizuno

Keitaro Shigemasa

Tatsunari Okamoto

Naoki Nakayama

Yoshiaki Miura

Kaori Shimada

Shingo Baba

Masaki Negishi

Kazutoshi Ono

Kosuke Mori

Chie Kasahara

Prepaid Card

Keitaro Shigemasa
Managing Executive
Officer CIO

Executive Officer

Kaori Shimada
Executive Officer

NEO MONEYPICOCA card with prepaid &loyalty points function

PARCO PRICA

Azalea card

KAWATOKU Parc Card

(Parco Co., Ltd.)(Kawasaki Azalea)(Kawatoku Co., Ltd.)(Alpico Holdings Co., Ltd.)

Prepaid Card with Saison Eikyufumetsu Points Program• Online editions• Sapporo• Sendai• Chiba• Kumamoto

Masaki Negishi

Audit & Supervisory Board
Member (Outside)

Naoki Nakayama

House Prepaid Card

Executive Officer

Kosuke Mori
Executive Officer

mijica (online edition)(Japan Post Bank)*Six directors (and concurrently) executive officers, namely, Shingo Baba, Kazutoshi Ono, Akihiro Matsuda, Yasuyuki Isobe,
Shunji Ashikaga, Kazue Yasumori, will have ended their tenure as of a general meeting of shareholders to be held on June 18,
2020. Consequently, they are scheduled to retire as directors.

66

67

Corporate
DataCorporate Data

VisionHead Office

Tohoku Branch Office
7F Sendai Shogin Bldg., 1-24, Chuo
3-chome, Aoba-ku, Sendai City, Miyagi
980-0021, Japan

3F ORE Omiya Bldg., 114-1, Miyacho
1-chome, Omiya-ku, Saitama City,
Saitama 330-0802, Japan

General Meeting of Shareholders
Board of Directors

East Kanto Branch Office

Audit & Supervisory Board
Audit & Supervisory Board Members

Representative Directors

Public Relations Office
Branding Strategy Dept.

Audit OfficeFinance Planning Dept.

Corporate Planning Dept.

Corporate Planning OfficeLeasing & Rental Business Dept.

Strategic Business Planning Office

Operation Center

Group Strategic Management OfficeBusiness Management Group

Compliance OfficeTreasury & Accounting Dept.
General Affairs Dept.

Planning Group
Sales GroupOperation Center
Finance Business Dept.

Career Development Dept.
Customer Satisfaction Planning Dept.

Customer Relations Office

Structured Finance Group
Housing Loan Center
Asset Formation Loan Group
Rent Guarantee GroupIT Strategy Dept.

Digital Service Dept.

Infrastructure Management Dept.

Digital Marketing Dept.

Kansai Branch Office
4F Kansai Ubiquitous Bldg., 12-11,
Minamisenba 1-chome, Chuo-ku, Osaka
City, Osaka 542-0081

Chugoku/Shikoku Branch Office
5F Otemachi Center Bldg., 8-5, Otemachi
2-chome, Naka-ku, Hiroshima City,
Hiroshima 730-0051, Japan

Business System Planning Dept.

Processing Business Division

Operation Planning Dept.
Promotion Group
Planning Group

Product Development Dept.
Digital Platform Development Dept.
Technology Center

Internet advertisement agency business, marketing
consulting business

CASALAGO CO., LTD.

Import and sales of lifestyle goods

Concerto Inc.

Amusement services, amusement business, realestate rental business

SAISON ASSET MANAGEMENT CO.,LTD.

Asset management

Saison Personalplus Co., Ltd.

Temp staff and services

Saison Fundex Corporation

Loans, real estate, credit guarantees

Saison Ventures Co., Ltd.

Identification and investment in start-ups

Saison Insurance Service Inc.

Life/non-life insurance agency business

Credit Saison Asia Pacific Pte. Ltd.

Overseas business development and regional
headquarters in Singapore

PT. Saison Modern FinanceDigital lending, payments, points business, andlease business in Indonesia

Sales Development Division

Sales Planning Dept.

Osaka Information Center

Corporate Group

Consulting Center
Billing Settlement Center

Hokkaido Branch Office

Tokyo Risk Management Center

Tohoku Branch OfficeOsaka Risk Management CenterNorth Kanto Branch Office

Screening Center

Credit Planning Dept.
Credit Risk Management Dept.
Credit Management Dept.

Tickets saleIdemitsu Credit Co., Ltd.

Credit card business, prepaid card business, financebusiness

Shizugin Saison Card Co., Ltd.

Credit cards and credit guarantees, prepaid cardbusiness

Saison Information Systems Co., Ltd.

Information processing services

Seven CS Card Service Co., LTD.

Credit card business

Daiwa House Financial Co., Ltd.

Credit card businessTakashimaya Financial Partners Co.,
Ltd. (See Note)

Credit card business

Republic of India *₂

Yamada Financial Co., Ltd.

Credit card business

Kingdom of Cambodia *₄
Kingdom of Thailand *₅

Resona Card Co., Ltd.

Credit cards and credit guarantees

Republic of the Philippines

HD SAISON Finance Company Ltd.

Finance business in Vietnam

Tokyo Metropolitan Area Management Dept.
Tokyo Branch Office
Kanagawa Branch Office
Corporate Sales Dept. No.1
Chubu/Kinki Management Dept.

Payment Business Division

Strategic Planning Dept.
Saison AMEX Dept.

Kyushu Branch OfficePlanning Group
Sales Group
Solution Business Dept.
Affinity Business Dept. No.1
Affinity Business Dept. No.2
Business Strategy Dept.
Business Solution Dept.
Card Finance Dept.
Alliance Development Dept.
Affiliated Store Planning Dept.

Singapore

Business Development Dept.

Credit Saison Asia Pacific PTE. LTD.
16 Collyer Quay #21-01, Income At Raffles
Singapore 049318

Asset Management Dept.
*1 CS Asia Pacific Pte.
*5 SIAM SAISON*2 Kisetsu Saison Finance*6 世尊商務諮詢*3 Saison Modern Finance*7 HD SAISON Finance*4 Idemitsu Saison Microfinance(Abbreviation)

68

Major Equity-Method Affiliates
Eplus Inc.

East Kanto Branch Office

Credit Division

Total of 34 companies

Management Group
East Japan Management Dept.

Business Center

9F Kyukan Hakata Ekimae Bldg., 19-27,
Hakataekimae 2-chome, Hakata-ku,
Fukuoka City, Fukuoka 812-0011, Japan

Shanghai, China

Digital Innovation DivisionTokyo Information Cente

Development GroupCREDIT SAISON CORPORATION(SHANGHAI) LIMITEDNo. 909. 9F, No. 409-459 Landmark East
Nanjing Rd. Shanghai, China

Omnibus K.K.

Operation Center

System Development Dept.

4F NMF Nagoya Yanagibashi Bldg.,
16-28, Meieki-minami 1-chome,
Nakamura-ku, NagoyaCity, Aichi 4500003, Japan

Cleaning, security, property maintenance services

Business Management Group

2F Otowa NS Bldg., 10-2, Otowa
2-chome, Bunkyo-ku, Tokyo 112-0013,
Japan

Tokai Branch Office

AIR Co., Ltd.

Credit Guarantee Dept.

System Planning Dept.

3F Nisso Dai-5 Bldg., 10-39, Kita-saiwai
2-chome, Nishi-ku, Yokohama City,
Kanagawa 220-0004, Japan

Comprehensive real estate business, servicing
business

Finance DivisionTokyo Branch Office

Kanagawa Branch Office

Atrium Co., Ltd.

Management Conference

Strategic Human Dept.

19F WBG Marive East Tower., 6-1, Nakase
2-chome, Mihama-ku, Chiba City, Chiba
261-7119, Japan

Financial
Information

Main Consolidated Subsidiaries

Corporate Risk Management Dept.

North Kanto Branch Office

Corporate
Governance(* In the order of the Japanese syllabary As of December 31, 2019)

Organization Chart

Hokkaido Branch Office
3F Sapporo Center Bldg., 2-2, Kita-5-jo
Nishi 6-chome, Chuo-ku, Sapporo City,
Hokkaido 060-0005, Japan

Sustainability

List of Affiliated Companies

Major Business Sales Based (As of April 1, 2020)

Sunshine 60 Bldg., 1-1 Higashi-Ikebukuro
3-chome, Toshima-ku, Tokyo 170-6073,
Japan

Strategy

Tokai Branch OfficeKansai Branch Office
Corporate Sales Dept. No. 2
West Japan Management Dept.
Chugoku/Shikoku Branch Office
Kyushu Branch Office
Global Business Division

Global Strategy Planning Dept.
Republic of Singapore *₁
Republic of Indonesia *₃

People`s Republic of China *₆

Socialist Republic of Vietnam *₇
Republic of the Union of Myanmar

Total of 30 companies
Note: Having merged with Takashimaya Hoken Co., Ltd., Takashimaya Credit Co. Ltd. changed its name to Takashimaya Financial Partners Co., Ltd. (March 1, 2020)

69

Corporate
DataCorporate Data

VisionCommon Stock Outstanding 185,444 thousand shares

Number of Shareholders 14,391

Major Shareholders (Top 10)
Institution
The Master Trust Bank of Japan Ltd. (trust account)
Japan Trustee Service Bank Ltd. (trust account)
BNYMSANV AS AGENT/CLIENTS LUX UCITS NON TREATY 1
Japan Trustee Service Bank Ltd. (trust account 9)
Trust & Custody Services Bank, Ltd.(Securities Investment Trust Account)
Mizuho Bank, Ltd.
Japan Trustee Service Bank Ltd. (trust account 5)

Equity stake
Number of Shares (thousand)Ownership Percentage (%)
28,801
17.63
14,872
9.10
8,516
5.21
6,345
3.88
4,692
2.87
3,000
1.84
2,719
1.66

STATE STREET LONDON CARE OF STATE STREET BANK AND TRUST,BOSTON SSBTC A/C UK LONDON BRANCH CLIENTS - UNITED KINGDOM

2,680

1.64

JPMorgan Securities Japan Co., Ltd.
JP MORGAN CHASE BANK 385151

2,613
2,511

1.60
1.54

Corporate
Governance

Financial
Information

Name

Credit Saison Co., Ltd.

Incorporated

May 1, 1951

Head OfficeSunshine 60 Bldg., 1-1 Higashi-Ikebukuro 3-chome, Toshima-ku, Tokyo 170-6073, Japan

Representative

Hiroshi Rinno, Representative, Chairman and CEO
Masahiro Yamashita, Representative, Executive President and COO
Naoki Takahashi, Representative, Executive Vice President and CHO

Paid-in Capital¥75,929 million

Listed Stock ExchangeTokyo (First Section)

Business① Payment Segment (credit card business, servicing (loan collection agency) business, etc.)② Lease Segment (lease business)③ Finance Segment (credit guarantee business and finance-related business)④ Real Estate-Related Segment (real estate business and real estate leasing business, etc.)⑤ Entertainment Segment (amusement business, etc.)* The 22,034,232 treasury shares held by Credit Saison are not included in the above list of major shareholders. * Ownership percentages are based on the number of outstanding shares excluding treasury shares.

Securities Companies 4.86%

Sustainability

Corporate Profile

Stock Information (as of March 31, 2019)

Common Stock Authorized 300,000 thousand shares

Strategy

Individual Investors, others 4.20%
Number of regular employees

Other Corporation 5.09%

3,239

Note: In addition to our regular employees, we employ temporary and part-time employees, with the average number of non-regular
employees per term at 647 (based on conversion to a 7.5-hours workday)
Note: E mployee data is as of March 31, 2019.

Treasury Stocks 11.88%

Financial Institution 40.41%

Composition of
Shareholders

Foreign Investors 33.57%

Shareholders Memo
Fiscal Year
Ordinary General Meeting of Shareholders

Period beginning on April 1 and ending on March 31 of the following year
Convened each year in June

Record Date

Ordinary general meeting of shareholders and year-end dividend payments - March 31
Should any other record date be required, a public notice will be issued in advance.

Transfer Agent and Administrator of Special
Sumitomo Mitsui Trust Bank Limited, 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan
Accounts
Administrative Office of Transfer Agent

Stock Transfer Agency Business Department,
Sumitomo Mitsui Trust Bank Limited, 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Mailing Address

Stock Transfer Agency Business Department,
Sumitomo Mitsui Trust Bank Limited, 2-8-4, Izumi, Suginami-ku, Tokyo 168-0063, Japan

Telephone Inquiries
URL

0120-782-031 (9:00-17:00 excluding weekends and holidays)
https://www.smtb.jp/personal/agency/index.html

Method of Public NoticeElectronic notice (Credit Saison website)
https://corporate.saisoncard.co.jp/en/public_announcement/

Stock Listing
Securities code

Tokyo Stock Exchange
8253[Notice of Address Change, etc. and Inquiries Relating to Shares]
Shareholders who have an account with a securities company are asked to contact the relevant securities company regarding address change and other notices, as well as inquiries.
Shareholders who do not have an account with a securities company are asked to call the number indicated above for telephone inquiries.
[Special Accounts]
For shareholders who were not using the “Hofuri” system (Japan Securities Depository Center, Inc.) prior to the introduction of the electronic share certificate system, an account (special account) has been opened at Sumitomo Mitsui Trust Bank Limited above as the transfer agent. Inquiries on special accounts should be directed to the transfer agent at the number
indicated above for telephone inquiries.

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Editor’s postscript
The Credit Saison Vision and Strategy Report 2019 is our first integrated report and is intended to provide a greater understanding of
the Company to all our stakeholders, both inside and outside the Company.
Fiscal 2019 was a transformational year for Credit Saison, with the Company seeing its first new president in 19 years, announcing its
new Medium-term Management Plan (FY19–FY21), establishing its Nomination and Remuneration Committee, and announcing acapital and business tie-up with Daiwa Securities Group Inc. Project members have been working toward the publication of thisreport since September 2019, maintaining a strong desire to help even more people understand the Company’s efforts toward
creating a new Credit Saison.
Looking ahead, we will continue to seek the honest opinions of our readers so that we can further deepen communication with all
stakeholders while upgrading and expanding the content of the report.

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Corporate
Data