December 17, 2009
To all concerned
Company name: East Japan Railway Company
Representative: Satoshi Seino, President
(Code: 9020, Section 1 of Tokyo / Osaka / Nagoya)
Contact for inquiries: Tadao Maekawa, Public Affairs
Department Manager
(TEL: 03-5334-1300)
At a meeting of the board of directors today, East Japan Railway Company (JR East) determined that it would conclude an absorption-type spin-off contract under which our 100% subsidiary View Card Co., Ltd. (below, VC) will succeed to the rights and duties of JR East’s credit card business as of February 1, 2010 (this succession was determined at a meeting of the board of directors on July 22, 2009, and announced in "Business Succession Through the Establishment of Subsidiaries and Spin-offs"). Details are below. Because this spin-off is to a 100% subsidiary, some disclosure items and details have been omitted.
[Reference] Overview of JR East’s credit card business
1. | Business launched | : | 1993 | |
2. | Members | : | 3.19 million (as of March 31, 2009) | |
3. | Transactions | : | Shopping: 880.1 billion yen; cashing: 34.4 billion yen (results for FY2008) | |
4. | Main products | : | "VIEW Suica" Card, Otona no Kyujitsu Club Card, Lumine Card, JAL Card Suica, Bic Camera Suica Card, etc. | |
1. |
Objective of reorganizationJR East’s credit card business has grown rapidly since its launch in 1993, with several attractive services including partner cards with other businesses and combined Suica/credit cards. The environment facing the credit card business, however, has changed greatly in recent years, in part because of stronger regulations on the business. To enhance profitability and competitiveness under these circumstances, JR East is opting to let a subsidiary succeed to its credit card business with the objective of ensuring a more dynamic business operations system and strengthening management of the business. By having a company specifically focused on the business to which it is succeeding, we seek to be able to make decisions more quickly and respond flexibly to changes in the business environment, thereby enhancing profitability and competitiveness. |
2. |
Overview of spin-off
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3. |
Overview of companies involved in spin-off |
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(Units: 1,000,000 yen, unless otherwise noted.) |
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* |
Items marked with * for the succeeding company are estimates for February 1, 2010. The following is an overview as of September 30, 2009. | ||
• Address | : | 2-2 Yoyogi 2-chome, Shibuya-ku, Tokyo | |
• Capital | : | 100,000,000 yen | |
• Employees | : | 2 (non-consolidated) | |
• Major customers | : | none | |
• Major bank | : | Mizuho Corporate Bank, Ltd. | |
* |
The company did a stock split of 100 shares for each ordinary share, effective January 4, 2009. The numbers given for "consolidated net assets per share (yen)," "consolidated net income per share (yen)" and "dividends per share (yen)" are calculated as if this stock split took place at the beginning of March 2007. | ||
* |
Because VC was established on September 1, 2009, there are no most recent business years to give settled data for. |
[Overview of business division being spun off]
(1) | Business of the division being spun off | |||||||||
Credit card business (except business related to Business EkiNet and VIEW Web). The Suica business (including Suica licensing for credit cards issued by others) is not included in the credit card business to which VC is succeeding. | ||||||||||
(2) | Business results for the division being spun off |
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(Units: 100 million yen) |
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(3) | Assets and liabilities being spun off, and values | |||||||||||||||||||||
(Units: 1 million yen) |
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4. |
Status after reorganizationThe spin-off will have no effect on JR East’s name, address, representative’s title, business description, capital or fiscal period. |
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5. |
OutlookBecause VC, the succeeding company, is a wholly-owned subsidiary, the spin-off will have no effect on consolidated results. |
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End |