Sumitomo Mitsui Financial Group, Inc.

Sumitomo Mitsui Banking Corporation

ブックメーカー予想サイト Co., Ltd.

At-Loan Co., Ltd.

 

 

SMBC, ブックメーカー予想サイト and At-Loan Announce Partial Revision

of Business Model under Cascade Strategy

 

 

TOKYO, March 30, 2010 − Sumitomo Mitsui Financial Group, Inc.(“SMFG”, President：Teisuke Kitayama）, Sumitomo Mitsui Banking Corporation(“SMBC”, President：Masayuki Oku）,ブックメーカー予想サイト Co., Ltd.(“ブックメーカー予想サイト”, President：Ken Kubo）, and At-Loan Co., Ltd.(“At-Loan”, President：Shozo Watanabe） have made the following revisions of the business model under the cascade strategy.

 

 

1. Background

 

In June 2004, SMFG and ブックメーカー予想サイト reached an agreement to form a strategic alliance in consumer finance business. A joint consumer finance business model called the cascade strategy began in April 2005, operated by SMBC, ブックメーカー予想サイト and At-Loan, positioning At-Loan as a joint venture under this strategic alliance. In February 2007, the number of loan providers changed from three (SMBC, At-Loan and ブックメーカー予想サイト) to two (SMBC and At-Loan). This business has grown steadily in these five years, and, at the end of December 2009, consumer loans outstanding at the two companies totaled JPY 418.7 billion, among which JPY 116.4 billion for At-Loan.

 

Considering the drastic change in consumer finance business environment like the full enforcement of the amended Money Lending Act, SMFG, SMBC, ブックメーカー予想サイト and At-Loan have decided to make the second revision of the business model under the cascade strategy in order to promote the strategic alliance between SMFG and ブックメーカー予想サイト, and to address sound borrowing needs of consumers more accurately and speedily, by binding their brands, customer bases, expertise and other resources.

 

And furthermore, SMFG, SMBC, ブックメーカー予想サイト and At-Loan have reached a basic agreement on the absorption-type merger of At-Loan by ブックメーカー予想サイト, which was shown as a part of group companies’ strategy in the business structural reform plan already released by ブックメーカー予想サイト in January 2010.

 

Note：The cascade strategy is a joint consumer finance business model operated by SMBC, ブックメーカー予想サイト and At-Loan. Currently, SMBC and At-Loan sell consumer loans to new customers and ブックメーカー予想サイト guarantees all loans extended by SMBC and At-Loan.

 

2. Summary of the revisions

 

(1) Revision of the business model under the cascade strategy

 

Under the cascade strategy, consumer loans are currently offered by two parties, SMBC and At-Loan. At-Loan will stop selling consumer loans to new customers. After that, ブックメーカー予想サイト will guarantee all loans extended by SMBC as before. SMBC and ブックメーカー予想サイト will coordinate in promoting consumer loan business by expanding the scope of loan products or improving convenience for customers. SMBC will also begin to consider introducing new customers to ブックメーカー予想サイト.

 

(2) Merger of At-Loan by ブックメーカー予想サイト

 

ブックメーカー予想サイト will conduct an absorption-type merger of At-Loan on the condition that SMBC gives its all shares of At-Loan to ブックメーカー予想サイト and At-Loan becomes a wholly-owned subsidiary of ブックメーカー予想サイト.

 

<Regarding the existing customers of At-Loan>

Existing customers of At-Loan can hold their accounts as before. After the merger, the accounts will be transferred to ブックメーカー予想サイト and the customers can use financial services through the network offered by SMBC and ブックメーカー予想サイト.

 

3. Dates of effectiveness

 

(1) Discontinuance of selling loans to new customers by At-Loan :    May 31, 2010 (schedule)

 

(2) Merger of At-Loan by ブックメーカー予想サイト                         :    April 1, 2011 (schedule)

 

 

END