Sumitomo Mitsui Financial Group, Inc.

(Code: 8316)

Sumitomo Mitsui Banking Corporation

 

 

Organizational Restructuring for Promoting ブックメーカーjリーグ Credit Card

Business Strategy of Sumitomo Mitsui Financial Group

 

 

TOKYO, September 29, 2008 -  Sumitomo Mitsui Financial Group, Inc. (“SMFG”, President: Teisuke Kitayama) and Sumitomo Mitsui Banking Corporation (“SMBC”, President: Masayuki Oku) hereby announce that they resolved at meetings of their respective boards of directors toproceed with ブックメーカーjリーグ following actions, subject to ブックメーカーjリーグ permission and approvals of ブックメーカーjリーグ relevant authorities, in additionto ブックメーカーjリーグestablishment of an intermediate holding company (SMFG Card & Credit, Inc. (“FGCC”)) as separately announced in ブックメーカーjリーグ press release entitled “Progress of ブックメーカーjリーグ Credit Card Business Strategy of Sumitomo Mitsui Financial Group”:

 

(i)    SMBC implements a corporate split through which FGCC will succeed to ブックメーカーjリーグ control and management of Central Finance Co., Ltd. (“CF”), OMC Card, Inc. (“OMC”) and QUOQ Inc. (“QUOQ”);

(ii)   SMFG implements a share exchange through which FGCC will become a wholly-owned subsidiary of SMFG with ブックメーカーjリーグ objective of transferring FGCC shares to be delivered to SMBC by virtue of ブックメーカーjリーグ corporate split mentioned in (i) above to SMFG; and,

(iii) SMFG implements a corporate split through which FGCC will succeed to ブックメーカーjリーグ control and management of Sumitomo Mitsui Card Co., Ltd.(“SMCC”),CF, OMC and QUOQ.

 

 

I. Corporate Split (kan’i bunkatsu) of SMBC into FGCC

 

1.   Purpose of Corporate Split

 

ブックメーカーjリーグ absorption-type corporate split of SMBC into FGCC (ブックメーカーjリーグ “Corporate Split I”) is implemented as a part of ブックメーカーjリーグ organizational restructuring to position FGCCas anintermediate holding company which is wholly owned by SMFG and holds shares in SMCC, CF, OMC and QUOQ.

 

2.   Summary of Corporate Split

 

(1) Schedule of Corporate Split

September 29, 2008        Meeting of ブックメーカーjリーグ board of directors for approval of ブックメーカーjリーグ execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Corporate Split I (SMBC)

October 1, 2008              Meeting of ブックメーカーjリーグ board of directors and extraordinary meeting of shareholders for approval of ブックメーカーjリーグ execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Corporate Split I (FGCC)

October 1, 2008              Execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Corporate Split I (SMBC and FGCC)

December 1, 2008          Effective date of ブックメーカーjリーグ Corporate Split I

 (schedule)

 

(Note) Pursuant to Article 784, Paragraph 3 of ブックメーカーjリーグ Corporation Act, SMBC will execute ブックメーカーjリーグ agreement onブックメーカーjリーグCorporate Split I without obtaining ブックメーカーjリーグ approval of its shareholders’ meeting.

 

 

(2) Method of Corporate Split

Spin-off (bunsha-gata) absorption-type corporate split in which FGCC will be ブックメーカーjリーグ successor company and SMBC will be ブックメーカーjリーグ splitting company.

 

(3) Details of Allotment of Shares
FGCC will allot and deliver to SMBC 22,049 shares of FGCC common stock.

 

(4) Basis for Calculation of Number of Shares to be Allotted

Daiwa Securities SMBC Co. Ltd. (“Daiwa Securities SMBC”) was appointed to calculate ブックメーカーjリーグ number of shares to be allotted by FGCC to SMBC upon ブックメーカーjリーグ Corporate Split I with ブックメーカーjリーグ view of ensuring ブックメーカーjリーグ fairness and appropriateness of such calculation, and ブックメーカーjリーグ number of shares to be allotted was determined based on such calculation result.

Daiwa Securities SMBC calculated ブックメーカーjリーグ number by (i) computing ブックメーカーjリーグ values of assets and liabilities to be succeeded through evaluating ordinary shares in each of CF, OMC and QUOQ to be succeeded by FGCC from SMBC and (ii) value of ブックメーカーjリーグ shares in FGCC.

 

(5) Capital Reduction due to Corporate Split
There will be no capital reduction in SMBC due to ブックメーカーjリーグ Corporate Split I.

 

(6) Treatment of Stock Acquisition Rights and Bonds with Stock Acquisition Rights
SMBC has not issued any stock acquisition rights or bonds with stock acquisition rights.

 

(7) Rights and Obligations to be Succeeded by ブックメーカーjリーグ Successor Company

FGCC will succeed to ブックメーカーjリーグ assets and liabilities related to SMBC’s control and management of CF, OMC and QUOQ, SMBC’s rights and obligations as well as contractual statuses associated therewith.

 

(8) Prospect of Performance of Obligations

SMFG and SMBC have concluded that ブックメーカーjリーグ obligations to be assumed by each of ブックメーカーjリーグ splitting company (SMBC) and ブックメーカーjリーグ successor company (FGCC) after ブックメーカーjリーグ Corporate Split I will be performed when due.

 

3.   Profile of ブックメーカーjリーグ Companies Involved in Corporate Split

 

	Splitting Company	Successor Company
Trade Name	Sumitomo Mitsui Banking Corporation	SMFG Card & Credit, Inc.(*)
Description of Business	Banking business	Management and administration of subsidiaries and affiliates etc.
Date of Incorporation	June 6, 1996	October 1, 2008
Location of Head Office	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo
Name and Title of Representative	Masayuki Oku President	Takeshi Kunibe Representative Director and President
Amount of Capital	JPY 664,986 million (As of March 31, 2008)	JPY 100 million
Total Number of Issued Shares	Common Stock: 56,355,849 shares (As of March 31, 2008) Preferred Stock: 70,001 shares (As of March 31, 2008)	Common Stock: 200 shares

 

Net Assets	JPY 5,080,747 million (consolidated) (As of March 31, 2008)	JPY 200million (non-consolidated)
Total Assets	JPY 108,637,791 million (consolidated) (As of March 31, 2008)	JPY 200million (non-consolidated)
Fiscal Year End	March 31	March 31
Major Shareholders and Shareholding Ratio	Common Stock Sumitomo Mitsui Financial Group, Inc. (100.00%)   Preferred Stock Sumitomo Mitsui Financial Group, Inc. (100.00%) (As of March 31, 2008)	Sumitomo Mitsui Financial Group, Inc. (100.00%)

(*) All data concerning SMFG Card & Credit, Inc., presented in ブックメーカーjリーグ above table are as of October 1, 2008 (prospect).

 

4.   Outline of Business subject to Corporate Split

 

(1) Description of ブックメーカーjリーグ Business subject to Corporate Split

Control and management by SMBC of CF, OMC and QUOQ.

 

(2) Items and Amounts of Assets and Liabilities subject to Corporate Split

(JPY millions; estimates as of September 29, 2008)
Assets		Liabilities
Item	Book Value	Item	Book Value
Fixed Assets	26,187		−
Total	26,187	Total	−

 

5.   Status of Successor Company

 

Trade Name	SMFG Card & Credit, Inc.
Description of Business	Management and administration of subsidiaries and affiliates etc.
Location of Head Office	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo
Name and Title of Representative	Takeshi Kunibe, Representative Director and President
Amount of Capital	JPY100 million
Fiscal Year End	March 31

 

6.   Status of Subsidiary after Corporate Split

 

Trade Name	Sumitomo Mitsui Banking Corporation
Description of Business	Banking business
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
Fiscal Year End	March 31

 

7.   Earnings Forecasts

 

ブックメーカーjリーグCorporate Split I will not have any impact on ブックメーカーjリーグ consolidated results of SMFG.

 

 

II． Share Exchange (kan’i kabushiki kokan) for Making FGCC a Wholly-Owned Subsidiary of SMFG

 

1.   Purpose of Share Exchange

 

ブックメーカーjリーグ share exchange between SMFG and FGCC (ブックメーカーjリーグ “Share Exchange”) is implemented as a part of ブックメーカーjリーグ organizational restructuring to position FGCCas anintermediate holding company which is wholly owned by SMFG and holds shares in SMCC, CF, OMC and QUOQ.

 

2.   Summary of Share Exchange

 

(1) Schedule of Share Exchange

September 29, 2008        Meeting of ブックメーカーjリーグ board of directors for approval of ブックメーカーjリーグ execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Share Exchange (SMFG)

October 1, 2008              Meeting of ブックメーカーjリーグ board of directors for approval of ブックメーカーjリーグ execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Share Exchange (FGCC)

October 1, 2008              Execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Share Exchange (SMFG and FGCC)

December 1, 2008          Effective date of ブックメーカーjリーグ Share Exchange

(schedule)

 

(Note) SMFG and FGCC will execute ブックメーカーjリーグ agreement on ブックメーカーjリーグ Share Exchange without obtaining ブックメーカーjリーグ approval of ブックメーカーjリーグ meetings of their respective shareholders pursuant to Article 796, Paragraph 3 (SMFG) and Article 784, Paragraph 1 (FGCC) of ブックメーカーjリーグ Corporation Act, respectively.

 

(2) Details of Allotment of Shares upon Share Exchange

 

	Sumitomo Mitsui Financial Group, Inc. (wholly owning parent company  in ブックメーカーjリーグ Share Exchange)	SMFG Card & Credit, Inc. (wholly-owned subsidiary  in ブックメーカーjリーグ Share Exchange)
Share Exchange Ratio	1	1.493
Number of New Shares Issued upon Share Exchange	SMFG will use 32,919 shares of its treasury stock for ブックメーカーjリーグ allotment of shares in ブックメーカーjリーグ Share Exchange.

(Note) 1.493 shares of SMFG common stock will be allotted to one share of FGCC common stock; provided, however, that no share will be allotted to 200 shares of FGCC common stock held by SMFG in ブックメーカーjリーグ course of Share Exchange.

 

(3) Basis for Calculation of Share Exchange Ratio

Daiwa Securities SMBC was appointed to calculate ブックメーカーjリーグ share exchange ratio with ブックメーカーjリーグ view of ensuring ブックメーカーjリーグ fairness and appropriateness of such calculation, and ブックメーカーjリーグ number of shares to be allotted was determined based on such calculation result.

Daiwa Securities SMBC calculated ブックメーカーjリーグ ratiobycomputing ブックメーカーjリーグ values of ブックメーカーjリーグ shares in SMFG and FGCC through utilizing ブックメーカーjリーグ market stock price method and ブックメーカーjリーグ market value net assets method, respectively.

 

(4) Treatment of Stock Acquisition Rights and Bonds with Stock Acquisition Rights of Wholly-Owned Subsidiary after Share Exchange

FGCC has not issued any stock acquisition rights or bonds with stock acquisition rights.

 

3.   Profile of Companies Involved in Share Exchange

 

	Wholly Owning Parent Company in ブックメーカーjリーグ Share Exchange	Wholly-owned Subsidiary in ブックメーカーjリーグ Share Exchange
Trade Name	Sumitomo Mitsui Financial Group, Inc.	SMFG Card & Credit, Inc. (Note 1)
Description of Business	Management and administration of banks and other companies which it is permitted to hold as its subsidiaries under ブックメーカーjリーグ Banking Law; and other businesses incidental to ブックメーカーjリーグ foregoing	Management and administration of subsidiaries and affiliates etc.
Date of Incorporation	December 2, 2002	October 1, 2008
Location of Head Office	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo
Name and Title of Representative	Teisuke Kitayama President	Takeshi Kunibe Representative Director and President
Amount of Capital	JPY 1,420,877 million (As of March 31, 2008)	JPY 100 million
Total Number of Issued Shares	Common stock: 7,733,653.77 shares (As of March 31, 2008) Preferred stock: 120,101 shares (As of March 31, 2008)	Common Stock: 200 shares
Net Assets	JPY 5,224,076 million (consolidated) (As of March 31, 2008)	JPY 200 million (non-consolidated)
Total Assets	JPY 111,955,918 million (consolidated) (As of March 31, 2008)	JPY 200 million (non-consolidated)
Fiscal Year End	March 31	March 31
Major Shareholders and Shareholding Ratio (Note 2)	ブックメーカーjリーグ Master Trust Bank of Japan, Ltd. (trust account) (6.37%) Japan Trustee Services Bank, Ltd. (trust account) (6.31%) Nippon Life Insurance Company (1.99%) State Street Bank and Trust Company (Standing agent: Mizuho Corporate Bank, Ltd., Kabutocho Custody & Proxy Department) (1.84%) State Street Bank and Trust Company 505103 (Standing agent: Mizuho Corporate Bank, Ltd., Kabutocho Custody & Proxy Department) (1.66%) (As of March 31, 2008)	Sumitomo Mitsui Financial Group, Inc. (100.00%)

(Note 1)    All data concerning SMFG Card & Credit, Inc., presented in ブックメーカーjリーグ above table is as of October 1, 2008 (prospect).

(Note 2)    ブックメーカーjリーグ major shareholders on ブックメーカーjリーグ table are major holders of common stock.

 

4.   Status after Share Exchange

 

Trade Name	Sumitomo Mitsui Financial Group, Inc.
Description of Business	Management and administration of banks and other companies which it is permitted to hold as its subsidiaries under ブックメーカーjリーグ Banking Law; and other businesses incidental to ブックメーカーjリーグ foregoing
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
Fiscal Year End	March 31

 

5.   Earnings Forecasts

ブックメーカーjリーグ Share Exchange will not have any impact on ブックメーカーjリーグ consolidated results of SMFG.

 

 

III. Corporate Split (kan’i bunkatsu) of SMFG into FGCC

 

1.   Purpose of Corporate Split

 

ブックメーカーjリーグ absorption-type corporate split of SMFG into FGCC (ブックメーカーjリーグ “Corporate Split II”) is implemented as a part of ブックメーカーjリーグ organizational restructuring to position FGCCas anintermediate holding company which is wholly owned by SMFG and holds shares in SMCC, CF, OMC and QUOQ.

 

2.   Summary of Corporate Split

 

(1) Schedule of Corporate Split

September 29, 2008        Meeting of ブックメーカーjリーグ board of directors for approval of ブックメーカーjリーグ execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Corporate Split II (SMFG)

October 1, 2008              Meeting of ブックメーカーjリーグ board of directors and extraordinary meeting of shareholders for approval of ブックメーカーjリーグ execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Corporate Split II (FGCC)

October 1, 2008              Execution of ブックメーカーjリーグ agreement on ブックメーカーjリーグ Corporate Split II (SMFG and FGCC)

December 1, 2008          Effective date of ブックメーカーjリーグ Corporate Split II

(schedule)

 

(Note) Pursuant to Article 784, Paragraph 3 of ブックメーカーjリーグ Corporation Act, SMFG will execute ブックメーカーjリーグ agreement on ブックメーカーjリーグ Corporate Split II without obtaining ブックメーカーjリーグ approval of a general meeting of its shareholders.

 

(2) Method of Corporate Split

Spin-off (bunsha-gata) absorption-type corporate split in which FGCC will be ブックメーカーjリーグ successor company and SMFG will be ブックメーカーjリーグ splitting company.

 

(3) Details of Allotment of Shares
FGCC will allot and deliver to SMFG 100 shares of FGCC common stock.

 

(4) Basis for Calculation of ブックメーカーjリーグ Number of Shares to be Allotted

ブックメーカーjリーグ allotment of shares in ブックメーカーjリーグ Corporate Split II will not affect ブックメーカーjリーグ amount of SMFG’s net assets, irrespective of ブックメーカーjリーグ number of shares to be allotted by FGCC to SMFG. This is because FGCC, ブックメーカーjリーグ successor company in ブックメーカーjリーグ corporate split is a wholly-owned subsidiary of SMFG and ブックメーカーjリーグ Corporate Split II is a spin-off type split. Therefore, ブックメーカーjリーグ number of shares to be allotted by FGCC to SMFG was determined at their discretion.

 

(5) Capital Reduction due to Corporate Split
There will be no capital reduction in SMFG due to ブックメーカーjリーグ Corporate Split II.

 

(6) Treatment of Stock Acquisition Rights and Bonds with Stock Acquisition Rights
There will be no change in ブックメーカーjリーグ treatment of ブックメーカーjリーグ stock acquisition rights issued by SMFG.

 

(7) Rights and Obligations to be Succeeded by ブックメーカーjリーグ Successor Company

FGCC will succeed to ブックメーカーjリーグ assets and liabilities related to SMFG’s control and management of SMCC, CF, OMC and QUOQ, SMFG’s rights and obligations as well as contractual statuses associated therewith.

 

(8) Prospect of Performance of Obligations

SMFG has concluded that ブックメーカーjリーグ obligations to be assumed by each of ブックメーカーjリーグ splitting company (SMFG) and ブックメーカーjリーグ successor company (FGCC) after ブックメーカーjリーグ Corporate Split II will be performed when due.

 

3.   Profile of ブックメーカーjリーグ Companies Involved in Corporate Split

	Splitting Company	Successor Company
Trade Name	Sumitomo Mitsui Financial Group, Inc.	SMFG Card & Credit, Inc. (Note 1)
Description of Business	Management and administration of banks and other companies which it is permitted to hold as its subsidiaries under ブックメーカーjリーグ Banking Law; and other businesses incidental to ブックメーカーjリーグ foregoing	Management and administration of subsidiaries and affiliates etc.
Date of Incorporation	December 2, 2002	October 1, 2008
Location of Head Office	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo
Name and Title of Representative	Teisuke Kitayama President	Takeshi Kunibe Representative Director and President
Amount of Capital	JPY 1,420,877 million (As of March 31, 2008)	JPY 100 million
Total Number of Issued Shares	Common stock: 7,733,653.77 shares (As of March 31, 2008) Preferred stock: 120,101 shares (As of March 31, 2008)	Common Stock: 200 shares
Net Assets	JPY 5,224,076 million (consolidated) (As of March 31, 2008)	JPY 200million (non-consolidated)

 

Total Assets	JPY 111,955,918 million (consolidated) (As of March 31, 2008)	JPY 200million (non-consolidated)
Fiscal Year End	March 31	March 31
Major Shareholders and Shareholding Ratio (Note 2)	ブックメーカーjリーグ Master Trust Bank of Japan, Ltd. (trust account) (6.37%) Japan Trustee Services Bank, Ltd. (trust account) (6.31%) Nippon Life Insurance Company (1.99%) State Street Bank and Trust Company (Standing agent: Mizuho Corporate Bank, Ltd., Kabutocho Custody & Proxy Department) (1.84%) State Street Bank and Trust Company 505103 (Standing agent: Mizuho Corporate Bank, Ltd., Kabutocho Custody & Proxy Department) (1.66%) (As of March 31, 2008)	Sumitomo Mitsui Financial Group, Inc. (100.00%)

(Note 1)    All data concerning SMFG Card & Credit, Inc., presented in ブックメーカーjリーグ above table are as of October 1, 2008 (prospect).

(Note 2)    ブックメーカーjリーグ major shareholders on ブックメーカーjリーグ table are major holders of common stock.

 

4.   Outline of Business subject to Corporate Split

 

(1) Description of ブックメーカーjリーグ Business subject to Corporate Split

Control and management by SMFG of SMCC, CF, OMC and QUOQ.

 

(2) Items and Amounts of Assets and Liabilities subject to Corporate Split

(JPY millions; estimates as of September 29, 2008)
Assets		Liabilities
Item	Book Value	Item	Book Value
Fixed Assets	117,556		−
Total	117,556	Total	−

 

5.   Status of Successor Company

 

Trade Name	SMFG Card & Credit, Inc.
Description of Business	Management and administration of subsidiaries and affiliates etc.
Location of Head Office	1-2, Yuraku-cho 1-chome, Chiyoda-ku, Tokyo
Name and Title of Representative	Takeshi Kunibe, Representative Director and President
Amount of Capital	JPY100 million
Fiscal Year End	March 31

 

6.   Status of Listed Company after Corporate Split

 

Trade Name	Sumitomo Mitsui Financial Group, Inc.
Description of Business	Management and administration of banks and other companies which it is permitted to hold as its subsidiaries under ブックメーカーjリーグ Banking Law; and other businesses incidental to ブックメーカーjリーグ foregoing
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
Fiscal Year End	March 31

 

7.   Earnings Forecasts

 

ブックメーカーjリーグCorporate Split II will not have any impact on ブックメーカーjリーグ consolidated results of SMFG.

 

 

END