News Releases
Credit Card ブックメーカーjリーグ Strategy of Sumitomo Mitsui Financial Group(1/1)
Sumitomo Mitsui Financial Group, Inc.
(Code: 8316)
Sumitomo Mitsui Banking Corporation
Central
Finance ブックメーカーjリーグ., Ltd.
(Code: 8588)
OMC Card, Inc.
(Code: 8258)
Sumitomo Mitsui Card ブックメーカーjリーグ., Ltd.
Credit Card ブックメーカーjリーグ Strategy of Sumitomo Mitsui
Financial Group
1. Background
Along with changes in customer lifestyles and the diversification
of the settlement market caused by an evolution of IT technologies, the
Japanese credit card market has been steadily expanding, and further growth is
expected amid the spread of new domains of settlement, including petty cash
settlement. On the other hand,
under the requirement for development of new technologies and services, such as
electronic money, and for investment in systems that meet more deep, sophisticated
and diversified customers’ needs, and under the influence of the amendment to
the Money Lending ブックメーカーjリーグ Law and the proposed revision to the Installment
Sales Law, among other factors, the ブックメーカーjリーグ environment surrounding the
industry has been dramatically changing and has put the industry to a major
turning point.
With these circumstances in mind, SMFG group took notice not only of the
growth potential of the credit card ブックメーカーjリーグ but also of its role as a gateway
for integration of financial
transactions by individuals as well as the ブックメーカーjリーグ’ evolutionary nature which
may lead to development of the contracting ブックメーカーjリーグ or other deals with
corporations. Since April
2007, SMFG has formed an alliance with CF, a credit finance-related card issuer,
and OMC, a credit card company affiliated with a retailer, having decided to
focus more than ever on the credit card ブックメーカーjリーグ as one of the core elements of
the retail ブックメーカーjリーグ.
Under a new platform equipped with an overwhelming customer base and
diverse strengths of affiliation with banking, retail and credit sales
businesses, SMFG group has conducted an extensive study on the best management structure
and ブックメーカーjリーグ strategy without being confined to the existing framework.
2. Outline of the Credit
Card ブックメーカーjリーグ Strategy
With the objective of establishing the number one credit card ブックメーカーjリーグ
entity in
(1) Establishment of a
Two-company System within the Group by Merger of CF, OMC and QUOQ
As separately announced today in the press release entitled “Basic
Agreement on Merger of Central Finance ブックメーカーjリーグ., Ltd., OMC Card, Inc. and QUOQ
Inc.,” CF, OMC and QUOQ Inc. (“QUOQ”, President: Shinpei
Nihei) have basically agreed to merge (the “Merger”), setting April 1,
2009 as the target date (hereinafter the company
formed by the Merger shall be referred to as the “Merged Company”). Upon the Merger, the industry’s top class
credit card company will be born within SMFG group on a par with SMCC. The group’s credit card businesses will
be consolidated into a framework based on a two-company system, namely SMCC and
the Merged Company, which have different strengths.
SMCC will develop its ブックメーカーjリーグ as a full-line credit card company with
strengths in organizational power, infrastructure and networks, while maintaining
its existing brand image. On the
other hand, the Merged Company will maintain its independence as a listed
corporation, while keeping a sense of unity as a member of SMFG group, and as a
core company within SMFG group which stands on a par with SMCC. It will develop ブックメーカーjリーグ through its
expertise and agility in the markets where its strength has been built in
affiliation with the retail and credit sales businesses.
The two companies, which are among the biggest in Japan but with totally different
characteristics, will seek to enhance their respective strengths within the
group, and strive to provide an appropriate response to the diverse needs of
For the purpose of clearly defining the positioning of the Merged Company
as a core company within the group, SMFG intends to increase the voting rights
in the Merged Company to around the 40% range, and the specific means to
implement this plan is going to be discussed. The confirmation of the Merger is
subject to the approval by resolutions of the general meetings of the
shareholders, the permission and authorization of the relevant authorities as required
by law, and the necessary consent of related parties.
(2) Realization of Synergy through
Establishment of a Solid Partnership between SMCC and the Merged Company
(I) Thorough pursuit of the economies
of scale as a whole group
(I) Systems
SMCC and the Merged Company will unify their systems.
For this purpose, SMCC and the Merged Company are going to conduct a joint
study of the optimal system configuration which would enable good use of each
party’s strengths as well as full use of the economies of scale, and will jointly
develop the systems for the next stage.
* As
to the existing systems, the group will promptly build organic linkages between
the parties’ systems, and accelerate integration of the systems to a maximum
extent, with consideration given to the economic rationality and other factors.
(ii) Processing
operations
SMCC and the Merged Company will ultimately unify their processing
operations to generate a low-cost operation. They will also strive for the
streamlining and standardization of ブックメーカーjリーグ processing as well as for the establishment
of a next-generation ブックメーカーjリーグ processing scheme.
- Streamlining of ブックメーカーjリーグ: improvement of personnel and facilities operation
rates, taking advantage of differences in the demands of each party’s ブックメーカーjリーグ
schedule.
- Standardization of ブックメーカーjリーグ: unification of the ブックメーカーjリーグ flows and
processes for admission of new card holders, various notifications etc., while ensuring
consistency with the systems integration.
- Establishment of next-generation ブックメーカーjリーグ processing: use of OCR and other
IT devices, promotion of offshoring, etc.
(iii) Acquiring
operations
The acquiring operations will be centralized in SMCC, which already
demonstrates its strengths as one of the largest acquirers in
(ii) Maximization of
top-line synergy through the utilization of each party’s strengths
(I) Establishment
of “multiple” collaboration scheme for affiliated card marketing
SMCC has the advantage
of cutting-edge technologies and advanced infrastructure functions, as typified
by “iD” that was jointly developed with NTT DoCoMo, Inc. The Merged Company has strength in its
unique know-how on cardholder solicitation and marketing power which was accumulated
through its people-oriented philosophy characteristic of a retailer-affiliated
company, as well as its detailed marketing systems linked with the credit sales
ブックメーカーjリーグ.
Taking notice of such
differences in the strengths of SMCC and the Merged Company, we will invest the
management resources intensively in the markets where each party can capitalize
on its specific advantages, in order to develop the entire SMFG group’s ability
to meet the increasingly sophisticated needs of its ブックメーカーjリーグ partners.
Furthermore, the group will offer general services and functions which combine
both companies’ strengths to its affiliated partners who have broad needs in
the markets in which SMCC’s and the
Merged Company’s strengths overlap, going beyond the framework of affiliation
with “banking/ retail/credit sale” businesses.
(ii) Expansion
of the contracting ブックメーカーjリーグ
SMCC and the Merged Company
will position the contracting ブックメーカーjリーグ as one of their key businesses and seek
to formulate a best mix of each party’s strengths. We will pursue an expansion of the
contracting on a group basis and strive for the status of being the number one
contracting ブックメーカーjリーグ in the credit card
(iii) Establishment
of other broad-ranging common frameworks for reinforcement of the top-line
SMCC and the Merged Company
will formulate common frameworks in broad areas, including utilization of high
technology, promotion of shopping revolving and other financing means, efforts
to be chosen as the customers’ main credit card provider, exploration of new
markets such as petty cash settlement and public money markets, development of
common products, and sharing of know-how.
(iii) Fortifying the alliance through
establishment of an intermediary holding company
Subject to the permission and approvals of the relevant authorities, SMFG
will establish, aiming at a smooth alliance between SMCC and the Merged
Company, an intermediate holding company (the “Intermediate Holding Company”)
wholly owned by SMFG, setting October 1, 2008 as the target date. Immediately upon the incorporation of the
Intermediate Holding Company, SMFG and SMBC will transfer to the Intermediate
Holding Company all the shares in CF, OMC, QUOQ andSMCC
held by SMFG or SMBC.
The Intermediate Holding Company will set up a group-wide unified strategic
policy and work to establish an integrated framework of partnership among CF, OMC
and QUOQ (the Merged Company from April 2009), and SMCC, with the objective
of a thorough pursuit of the economies
of scale and reinforcement of the top-line synergy.
For the purpose of smooth implementation of the strategies and sharing of
know-how, each of the parties will dispatch personnel to the Intermediate
Holding Company, and will also exchange personnel among themselves.
(3) Medium-term Target
As a result of the promotion of the above-described credit card ブックメーカーjリーグ
strategy, our target for the aggregate shopping turnover of SMCC and the Merged
Company for the fiscal year of 2011 will be JPY 12 trillion (up 70% over the
estimate for the current fiscal year, and representing a market share of over
20%), and operating profit to be JPY 60 to 70 billion (up approximately JPY 50
billion from the forecast for the current fiscal year), with the prospect of a
growth of the income from the shopping credit ブックメーカーjリーグ due to the top-line
synergy, as well as realization of the cost synergy, among other factors.
(4) Proposed Schedule
September 2008 (target) - Execution of the agreement on merger of CF,
October 2008 (target) - Establishment of the Intermediate Holding Company
April 1, 2009 (target) - Merger of CF, OMC and QUOQ
3. ブックメーカーjリーグ Forecast
(1) SMFG
There will be no revision to the ブックメーカーjリーグ forecast for the
fiscal year ending March 2008 in connection with this matter.
(2) CF
There will be no revision to the ブックメーカーjリーグ forecast for the
fiscal year ending March 2008 in connection with this matter.
(3) OMC
There will be no revision to the ブックメーカーjリーグ forecast for the
fiscal year ending February 2008 in connection with this matter.
(Reference: Overview of the Credit Card Strategy)
(Reference: Profiles of the Parties)
○ Profile
of Sumitomo Mitsui Financial Group, Inc.
|
Trade Name |
Sumitomo Mitsui Financial Group, Inc. |
|
Description of Principal ブックメーカーjリーグ |
Management and administration of banks and other companies
which it is permitted to hold as its subsidiaries under the Banking Law; and
other businesses incidental to the foregoing. |
|
Date of Incorporation |
December 2, 2002 |
|
Location of Head Office |
1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo |
|
Name and Title of Representative |
Teisuke Kitayama, President |
|
Amount of Capital |
JPY 1,420,877 million (As of September 30, 2007) |
|
Number of Employees |
46,442 (Consolidated) (As of September 30, 2007) |
|
Major Shareholders and Shareholding Ratio |
Japan Trustee Services Bank, Ltd. (trust account) 5.64% The Master Trust Bank of Japan, Ltd. (trust account) 5.37% The Chase Manhattan Bank, N.A. London 2.66% (As of September 30, 2007) |
○ Profile
of Sumitomo Mitsui Banking Corporation
|
Trade Name |
Sumitomo Mitsui Banking Corporation |
|
Description of Principal ブックメーカーjリーグ |
Banking ブックメーカーjリーグ |
|
Date of Incorporation |
June 6, 1996 |
|
Location of Head Office |
1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo |
|
Name and Title of Representative |
Masayuki Oku, President |
|
Amount of Capital |
JPY 664,986 million (As of September 30, 2007) |
|
Number of Employees |
17,945 (Non-Consolidated) (As of September 30, 2007) |
|
Major Shareholders and Shareholding Ratio |
Sumitomo Mitsui Financial Group, Inc. 100.00% (As of September 30, 2007) |
○ Profile
of Central Finance ブックメーカーjリーグ., Ltd.
|
Trade Name |
Central Finance ブックメーカーjリーグ., Ltd. |
|
Description of Principal ブックメーカーjリーグ |
Credit card ブックメーカーjリーグ, shopping credit ブックメーカーjリーグ, loan
ブックメーカーjリーグ, guarantee ブックメーカーjリーグ, money collection agency ブックメーカーjリーグ |
|
Date of Incorporation |
January 28, 1960 |
|
Location of Head Office |
20-27, Nishiki 3-chome, Naka-ku, Nagoya-shi, Aichi |
|
Name and Title of Representative |
Tatsuo Tsuchikawa, President &
Director |
|
Amount of Capital |
JPY 23,254 million (As of September 30, 2007) |
|
Number of Employees |
2,415 (Consolidated) (As of September 30, 2007) |
|
Major Shareholders and Shareholding Ratio |
Sumitomo Mitsui Banking Corporation 14.29% Sumitomo Mitsui Financial Group, Inc. 8.78% Mitsui & ブックメーカーjリーグ., Ltd. 8.78% (As of September 30, 2007) |
○Profile
of OMC Card, Inc.
|
Trade Name |
OMC Card, Inc. |
|
Description of Principal ブックメーカーjリーグ |
Credit card ブックメーカーjリーグ |
|
Date of Incorporation |
September 11, 1950 |
|
Location of Head Office |
16-4, Konan 2-chome, Minato-ku, Tokyo |
|
Name and Title of Representative |
Hiromichi Funabashi, Chairman & CEO |
|
Amount of Capital |
43,343 million (As of August 31, 2007) |
|
Number of Employees |
1,296 (Consolidated) (As of August 31, 2007) |
|
Major Shareholders and Shareholding Ratio |
The Nomura Trust and Banking ブックメーカーjリーグ., Ltd. (trust account) 27.44%*1 The Daiei, Inc. 20.60% Acom ブックメーカーjリーグ., Ltd. 15.02% (As of August 31, 2007) |
*1 SMBC owns the trust beneficial interest
in the trust assets composed of the 58,633 thousand shares (which
represents 27.44% of the total number of the issued shares) held by The Nomura
Trust and Banking ブックメーカーjリーグ., Ltd. (trust account). The term of this trust expired on
February 8, 2008, and thereupon SMBC acquired the above-mentioned shares
constituting the trust assets, and
○Profile
of Sumitomo Mitsui Card ブックメーカーjリーグ., Ltd.
|
Trade Name |
Sumitomo Mitsui Card ブックメーカーjリーグ., Ltd. |
|
Description of Principal ブックメーカーjリーグ |
Credit card ブックメーカーjリーグ, loan ブックメーカーjリーグ, guarantee
ブックメーカーjリーグ, gift card ブックメーカーjリーグ and ancillary businesses |
|
Date of Incorporation |
December 26, 1967 |
|
Location of Head Office |
5-15, Imabashi 4-chome, Chuo-ku, Osaka-shi, Osaka |
|
Name and Title of Representative |
Koichi Tsukihara, President |
|
Amount of Capital |
JPY 34,000 million (As of September 30, 2007) |
|
Number of Employees |
1,997 (Non-Consolidated) (As of September 30, 2007) |
|
Major Shareholders and Shareholding Ratio |
Sumitomo Mitsui Financial Group, Inc. 66.0% NTT DoCoMo, Inc. 34.0% (As of September 30, 2007) |
[For Reference] Other Press Release Issued Today
concerning this Matter:
・SMFG, SMBC, CF, OMC and QUOQ
“Basic Agreement on Merger of Central Finance ブックメーカーjリーグ., Ltd., OMC Card, Inc. and
QUOQ Inc.”
END
