Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation
ブックメーカーサッカー Corporation

Announcement Regarding Transfer of the Shares of ブックメーカーサッカー Credit from SMBC to ブックメーカーサッカー and
New Business Alliance Agreement Between Four Companies Including SMFG

 

TOKYO, April 26, 2012 --- Sumitomo Mitsui Financial Group, Inc. (hereinafter, “SMFG”),  Sumitomo Mitsui Banking Corporation (hereinafter, “SMBC”), ブックメーカーサッカー Corporation (hereinafter, “ブックメーカーサッカー”) announced today a)the agreement to transfer all shares of ブックメーカーサッカー Credit Corporation (hereinafter, “ブックメーカーサッカー Credit”) held by SMBC to ブックメーカーサッカー pursuant to necessary arrangements with the relevant authorities, resulting in making ブックメーカーサッカー Credit a wholly-owned subsidiary of ブックメーカーサッカー, and b)the entrance into a new business alliance agreement between the four companies of SMFG, SMBC, ブックメーカーサッカー and ブックメーカーサッカー Credit in place of the previously concluded alliance agreement for the purpose of maintaining the close relationship between SMFG group and ブックメーカーサッカー and its affiliated group companies (hereinafter, “ブックメーカーサッカー Group”). The details are as follows.

1.               Purpose
SMFG group and ブックメーカーサッカー Group entered into a joint venture agreement in July 2009 with SMBC acquiring 51% of ブックメーカーサッカー Credit shares and ブックメーカーサッカー retaining 49%. Since then, ブックメーカーサッカー Credit has responded to the wide-ranging needs of its customers leveraging the human resources and knowledge of SMFG group and ブックメーカーサッカー Group in addition to its own business knowledge.  
ブックメーカーサッカー Credit launched its low interest rate, large credit line “VIP Loan Card” in 1987, and has expanded its business operation by increasing the number of customers centered primarily on high income individuals. ブックメーカーサッカー Credit has played a major role in the consumer finance business of SMFG group and ブックメーカーサッカー Group with exceptionally high-quality assets. Additionally, ブックメーカーサッカー Credit has realized synergies within SMFG group through this alliance, such as the business alliance for guarantees provided by Promise Co., Ltd. (hereinafter, “Promise”), a member of SMFG group. As a result, ブックメーカーサッカー Credit has generated profit and contributed to both SMFG group and ブックメーカーサッカー Group, despite a changing market environment with restrictions on total loan amounts per borrower and a lower ceiling on interest rates.

Currently, SMFG group and ブックメーカーサッカー Group have recognized that the consumer finance industry is starting to see a decrease in number of refund claims and a bottom out of borrowings. Based on such recognition, SMFG made Promise a wholly-owned subsidiary on April 1, 2012 with the aim of further strengthening Promise’s collaboration with SMFG’s group companies and creating an organizational framework allowing prompt and flexible strategic decision-making as a group. ブックメーカーサッカー Group started a card loan business through ブックメーカーサッカー Bank in March 2012 to strengthen its ability to capture future consumer finance demand.
In this way, SMFG group and ブックメーカーサッカー Group have developed their respective consumer finance business and plan to concentrate their management resources within their groups. Therefore, as the most appropriate initiative, SMFG group and ブックメーカーサッカー Group has reached an agreement that ブックメーカーサッカー will purchase all the shares of ブックメーカーサッカー Credit held by SMBC (4,004,824 shares, 51% of outstanding) and reclassify it from equity-method affiliate to wholly-owned subsidiary, and that both groups will enter into a new business alliance.

2.               Business Alliance between SMFG and ブックメーカーサッカー Group
After the transfer of the shares of ブックメーカーサッカー Credit, the four companies of SMFG, SMBC, ブックメーカーサッカー and ブックメーカーサッカー Credit will enter into a new business alliance in place of the previously concluded business alliance agreement between the three companies of SMBC, ブックメーカーサッカー and ブックメーカーサッカー Credit. SMFG group and ブックメーカーサッカー Group will continue the close relationship and increase the corporate value through this new business alliance.
ブックメーカーサッカー Credit will continue to secure a director seat from SMFG, and maintain the alliance including guarantees between Promise and ブックメーカーサッカー Credit, and loan servicing business of ブックメーカーサッカー Credit managed by SMFG group.

3.          Overview of ブックメーカーサッカー Credit

1.		Company Name	ブックメーカーサッカー Credit Corporation
2.		Address	22-20 Akebonocho 2-chome, Tachikawa-shi, Tokyo
3.		Representative	Masatoshi Kenmochi, President
4.		Main Business	Retail financial services
5.		Capital	22,170 million yen (As of March 31, 2011)
6.		Established	June 1979
7.		Shareholders (%)	SMBC (51%), ブックメーカーサッカー (49%) As of March 31, 2011
8.		Relationships
		Capital Relationship	SMFG indirectly holds 4,004,824 common shares of ブックメーカーサッカー Credit (51% of outstanding shares). ブックメーカーサッカー holds 3,847,773 common shares of ブックメーカーサッカー Credit (49% of outstanding shares).
		Personal Relationship	Among ブックメーカーサッカー Credit’s directors, 3 are executives from SMFG subsidiary SMBC and one is an executive from ブックメーカーサッカー. Among ブックメーカーサッカー Credit’s auditors, 2 are executives from SMFG subsidiary SMBC and one is an executive from ブックメーカーサッカー. As of March 31, 2012, 2 employees from SMBC are dispatched to ブックメーカーサッカー Credit. 5 employees from ブックメーカーサッカー Credit are dispatched to ブックメーカーサッカー.
		Business Relationship	SMFG subsidiary SMBC and ブックメーカーサッカー provide lending to ブックメーカーサッカー Credit.
		Status of related parties	ブックメーカーサッカー Credit is a subsidiary of SMFG and is therefore a related party. ブックメーカーサッカー Credit is also an equity-method affiliate of ブックメーカーサッカー and is therefore a related party.
9.		Recent 3 year performance and financial condition (Millions of yen, unless specified otherwise)
	Fiscal Year		Fiscal year ended March 31, 2009	Fiscal year ended March 31, 2010	Fiscal year ended March 31, 2011
	Net Assets		44,419	47,579	50,000
	Total Assets		353,017	324,380	279,564
	Net Assets per Share (yen)		29,285.16	6,059.13	6,367.32
	Total Revenue		37,949	35,372	31,461
	Ordinary Income		9,837	5,519	4,127
	Net Income		6,259	3,108	2,420
	Net Income per Share (yen)		4,126.47	458.76	308.18
	Dividend Per Share : Common Shares (yen)		27,656	-	-

 

4.      Overview of Sumitomo Mitsui Banking Corporation

1.		Company Name	Sumitomo Mitsui Banking Corporation
2.		Address	1-2 Marunouchi 1-chome, Chiyoda-ku, Tokyo
3.		Representative	Takeshi Kunibe, President and CEO
4.		Main Business	Banking
5.		Capital	1,770,996 million yen (As of March 31, 2011)
6.		Established	June 6, 1996
7.		Shareholder (%)	SMFG (100%) As of March 31, 2011
8.		Relationships
		Capital Relationship	There is no capital relationship between SMBC and ブックメーカーサッカー.
		Personal Relationship	Yoshinori Yokoyama, one of ブックメーカーサッカー’s outside directors, is concurrently serving as outside director of SMBC.
		Business Relationship	SMBC provides lending to ブックメーカーサッカー.
		Status of related parties	SMBC is not a related party of ブックメーカーサッカー.
9.		Recent 3 year performance and financial condition (Millions of yen, unless specified otherwise)
	Fiscal Year		Fiscal year ended March 31, 2009	Fiscal year ended March 31, 2010	Fiscal year ended March 31, 2011
	Consolidated Net Assets		4,518,647	6,894,564	6,983,132
	Consolidated Total Assets		115,849,385	120,041,369	132,715,674
	Consolidated Net Assets per Share (yen)		41,492.54	49,036.12	50,344.52
	Consolidated Ordinary Income		2,989,608	2,579,933	2,711,380
	Consolidated Ordinary Profit		59,285	557,781	751,208
	Consolidated Net Income		(317,306)	332,497	450,832
	Consolidated Net Income per Share (yen)		(5,740.34)	4,240.20	4,184.89
	Dividend Per Share: Common Shares (yen)		1,638	1,620	1,388

 

5.      Overview of ブックメーカーサッカー Corporation

1.		Company Name	ブックメーカーサッカー Corporation
2.		Address	4-1 Hamamatsu-cho 2-chome, Minato-ku, Tokyo
3.		Representative	Makoto Inoue, President and Chief Operating Officer
4.		Main Business	Diversified financial services
5.		Capital	144,007 million yen (As of March 31, 2011)
6.		Established	April 17, 1964
7.		Shareholders (%)	Japan Trustee Services Bank, Ltd. (10.47%) The Master Trust Bank of Japan, Ltd. (9.50%) As of March 31, 2011
8.		Recent 3 year performance and financial condition (Millions of yen, unless specified otherwise)
	Fiscal Year		Fiscal year ended March 31, 2009	Fiscal year ended March 31, 2010	Fiscal year ended March 31, 2011
	Total Shareholders’ Equity		1,167,530	1,298,684	1,319,341
	Total Assets		8,369,736	7,739,800	8,581,582
	Shareholders’ Equity per Share (yen)		13,059.59	12,082.56	12,273.11
	Total Revenues		1,032,486	912,294	970,110
	Net Income		21,924	37,757	67,275
	Net Income Per Share (yen)		246.59	370.52	625.88
	Dividend Per Share: Common Shares (yen)		70	75	80

 

 

6.      Number of Shares to be Acquired and Amount Held After the Transfer

1. Shares Held Before Transfer	3,847,773 shares  (Number of voting rights: 3,847,773)  (Percentage held: 49.0%)
2. Number of Shares Acquired	4,004,824 shares  (Number of voting rights: 4,004,824)  (Percentage of outstanding shares: 51.0%)  (Acquisition price: Will be disclosed upon ブックメーカーサッカー  confirmation)
3. Shares Held After Transfer	7,852,597 shares  (Number of voting rights: 7,852,597)  (Percentage held: 100.0%)

 

7.      Transaction Schedule

         April 26, 2012                 Contract conclusion (Share transfer contract, Alliancecontract)

         June 29, 2012 (Planned)            Transaction execution

8.             Future Outlook

The impact of this transaction on SMFG's business performance is estimated to be minor.

The impact of this transaction on ブックメーカーサッカー's business performance is estimated to be minor.