News Release

[Sumitomo Mitsui Financial Group, Inc.]Notice regarding Change of Status of a Subsidiary(1/1)


The original texts of this press release are prepared in the Japanese language, and this translation is only provisional.



Sumitomo Mitsui Financial Group, Inc.



Notice regarding Change of Status of a Subsidiary



TOKYO, July 2, 2007 --- Sumitomo Mitsui Financial Group, Inc.(SMFG, President: TeisukeKitayama) and Sumitomo Mitsui Banking Corporation (SMBC, President: Masayuki Oku) hereby announce that Central Finance Co., Ltd.(CF, President & Representative Director: Tatsuo Tsuchikawa), which is an equity method affiliated company of both SMFG and SMBC, has acquired common shares of QUOQ Inc. (QUOQ, President: Shinpei Nihei) worth JPY 7,500,000,000 through a third-party allocation. As a result of this acquisition, QUOQ, which was formerly an equity method affiliated company of both SMFG and SMBC, become a consolidated subsidiary of both SMFG and SMBC.


1.Reasons for Change of Status

The change of status is due to CFfs acquisition of common shares of QUOQ through a third-party allocation based on the capital alliance between CF and QUOQ, as we announced by the press release titled gCentral Finance, Sumitomo Mitsui Financial Group and Mitsui & Co., Ltd. to Form Strategic Alliance in Consumer Finance Businessh on April 27, 2007.


2. Method of Change of Status

By issuance of common shares worth JPY 7,500,000,000 through a third-party allocation to CF, QUOQ become an equity method affiliated company of CF who will have 20% share of its total voting rights. Therefore, QUOQ become a consolidated subsidiary of both SMFG and SMBC.


1)    Issuance of common shares by QUOQ

i)     Number of shares to be issued: 480,000 shares

ii)    Aggregate amount of issue price: JPY 7,500,000,000

iii)   Company and the number of shares to be allocated: CF 480,000 shares

iv)   Payment date: July 2, 2007


3. Outline of QUOQ Inc.


Corporate Name



Sumitomo Fudosan Mita Twin Buildings West Hall, 3-5-27 Mita, Minato-ku, Tokyo


Shinpei Nihei, President

Establishment date

April 5, 1978


4,750 million yen (as of July 2, 2007)

Main shareholders
(as of July 2, 2007)



No. of Shares

AS% of total outstanding shares

Central Finance Co., Ltd.

3-20-27 Nishiki, Naka-ku, Nagoya-shi, Aichi-ken



Ginsen Co., Ltd.

4-6-12 Kouraibashi, Chuo-ku, Osaka-shi, Osaka-fu



Sumitomo Mitsui Banking Corporation

1-2 Yurakucho 1-chome, Chiyoda-ku, Tokyo



Main businesses

Consumer installment credit, consumer loan, guarantee and money collection agency service

with SMFG


56.5% on a consolidated basis(as of July 2, 2007)






1,472 (as of March 31, 2007)

Earnings & Financial Situation

(ended March 2006)

(ended March 2007)


Operating income

67,319 million yen

62,109 million yen

Operating profit

2,456 million yen

1,069 million yen

Net income/loss

2,480 million yen

(21,562 million yen)

Total assets

934,062 million yen

879,066 million yen

Stockholdersf equity

48,779 million yen

25,070 million yen


4. Date of Effectiveness

    July 2, 2007


5. Earnings Forecasts

There is no revision to SMFGfs earnings forecasts for the fiscal year ending March 31, 2008.

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