Corporate Profile 2023
We Will Continue to Support the Future of Our Customers and Society

https://www.smbc-cf.com/english/corporate/index.html

2-2-31,Toyosu,Koto-ku,Tokyo,135-0061,Japan
Corporate Communication & Sustainability Dept2-2-31,Toyosu,Koto-ku,Tokyo,135-0061,Japan
TEL.03-6887-1274
Corporate Communication & Sustainability Dept2022.2

TEL.03-6887-1274
2022.22023.9

TOP MESSAGE

Consumer Finance
We Aim to Create

President and Representative Director,
Chief Executive Officer

Ryohei Kaneko

Since our establishment in March 1962, we have offered con-business areas.” Though our efforts with these four strategies,

sumer financial services that promptly meet the diverse fund-

we aim for sustainable growth. In September 2023, we defineding needs of our customers by developing safe and convenient

our core value as “PROMISE as a Lifestyle Support Brand,” andpersonal loan products and building the infrastructure for deal-

we updated our brand logo and slogan. The new brand slogan

ing with customer inquiries and loan applications while keeping

is “We PROMISE you a thumbs-up.” It has a double meaning:pace with changes in people’s lives and lifestyles. On April 1,

we PROMISE you to give you a thumbs-up when you want to2012, we became a member of the SMBC Group, and on July 1

use our services, and we also PROMISE that you will give us aof the same year, we changed our company name from Prom-

thumbs-up when you use our services. These are the promis-

ise Co., Ltd. to SMBC Consumer Finance Co., Ltd. (SMBCCF).

es we have made since Promise and will continue to make toWith a view to further growth, we have striven to strengthen

you with the brand name “PROMISE.” Our view of consumer

not only our financing (direct loan) business but also our loan

finance is to provide stable, continuous services through whichguarantee, overseas, and loan management businesses as thecustomers can borrow money with peace of mind. Working

nucleus of the SMBC Group’s consumer finance business inclosely with our customers, we will strive to build a sound con-cooperation with Sumitomo Mitsui Banking Corporation andsumer finance market by providing optimal services and sup-other SMBC Group companies. In recent years, the environment

port tailored to customers’ specific needs. We will also take ac-

surrounding us has been changing rapidly due to many factors,

tion to resolve social issues and achieve sustainability throughincluding an accelerating pace of technological innovation andour business activities. On March 20, 2022, we celebrated thethe entry of companies entering the financial sector from other

60th anniversary of our founding. We will remain steadfast inindustries. Having recognized this environment, we have for-our commitment to be the global consumer finance company

mulated a medium-term management plan for the three-yearthat is most trusted by our customers.

period starting from fiscal 2023, and we have set this policy:“We Will Continue to Support the Future of Our Customers andSociety.” Moreover, we have added our fourth strategic pillar“pursuing social value” to the following three: “increasing themarket share of our core business,” “significantly strengthening our management foundation,” and “expanding into new12History of our company

2011

Our 60-year history

Movements of the industry and the world

Incorporation of “Kansai
Finance” in Osaka City

Agreed on a broad business andcapital alliance with Sumitomo
Mitsui Financial Group (SMFG)

Finance

2011

Great East Japan
Earthquake

2013

2010

Full enforcement of Money Lending Business Act commenced

2008

2010

Global financial crisis● Customer Service Plazas established

Here we would like to introduce our 60-year long journey along with movements of this consumer finance industry.

1962●Changed company name to SMBC Consumer● Acquired At-Loan

Established in March 1962 as “Kansai Finance”, our company celebrated our 60th anniversary in March 2022.

● Acquired Sanyo Shinpan

2015

PROMISE (THAILAND)
opened for business

March 2022.We have always wished to be a reliable2014

their feelings. Each of us will continue to pursue

Changed Mobit to a wholly-owned
subsidiarypartner by staying close to our customers and sharing
customer satisfaction and achieve sustainable growthby PROMISEing CF (Customer First) for our customers
and society.

2018

Merger with
Sanyo Shipman

2006

We celebrated our 60th anniversary of our company in

4 PROMISE subsidiary companies
opened for business in mainland China

Social security and tax
number (My Number)system commenced
in Japan2007 –

2005

2004

Aiming for further
customer satisfaction
and sustainable growth● Became a wholly owned subsidiary of SMFG

became its consolidated subsidiary)of changing the consumer finance industry

History of the company

2012● SMFG conducted a TOB for PROMISE (PROMISE

Adopted SMBC Group’s unified logo

● Supreme Court Judgment on

2003

Started guarantee business

1962 –

Business Act passed andannounced

2001

Established PAL Servicer(now Abilio Servicer)● Change company name to “Kansai PROMISE”● Commencement ofconsumer finance businessusing PC (PROMISE Check)3

Acquired 49% interest in FE Credit in Vietnam

1997

Liaison group established by five major
consumer finance companies

2000

PROMISE, APLUS, and Sanwa Bank
(now The Bank of Tokyo-Mitsubishi UFJ)established one joint-venture loan
company named Mobit (now SMBC Mobit)

1999

1995

Hanshin-Awaji earthquake

1996

Change of the PROMISE logo

Essay Contest”● Listed on the First Section of

the Tokyo Stock Exchange

In February of the following year, thecompany name was changed to“Kansai PROMISE”, incorporating theidea that “Lenders and customers
are supposed to be equal, and shallengage in translations openly andkeep our promises to each other.”
Even though it is no longer the current
company name, “PROMISE” is stilla widely recognized brand of ourservice.

1989 –
Overseas Expansion

Tokyo Olympic Games

1963 –

1993

Registered as over-the-countershare in the Japan Securities
Dealers Association●Commencement of “PROMISE

1964

Ryoichi Jinnai

Spirit in the company’s name
1963

2007

2021

Japan Financial Service
Association establishedThe origin of our company
Ryoichi Jinnai, the founder of our company established Kansai Finance (company name at thetime) in March 1962. Mr. Jinnai worked to develop a new consumer finance system with“easiest to use and repay from consumers’ perspective” in mind, despite the absolute advantage of supplier side in the market at that time.
Believing the best finance from customer’s perspective is one with no interest, no duration,and no collection calls, he set up his own consumer finance business to commercialize thisidea.

The two companies conducted businessmerger with the objective to better respondto changing business environment andpromote growth strategies.

“Refund of Interest on Settlement”● Amended Money Lending

1969
Founded Japan
Consumer Finance
Association (JCFA)
jointly by 11 companies

1969

Expanded business into Tokyo with theestablishment of Tokyo PROMISE

1974

Merger of Kansai PROMISE
and Tokyo PROMISE
Changed the company nameto PROMISE Trust

1980

Changed the company
name to PROMISE

1983

1983 –The industry’s first
automated credit
assessment systemcommenced operation

In August 1983, the existing credit assessment
system, which has been improving since its
foundation, was drastically reviewed. The
industry’s first automated credit assessment
system using past customer transaction data
has been introduced through state-of-the-art
computer systems.

In August 1989, the company made its
entry to the automobile installment sales
market in Taiwan. In February 1992, ourfirst overseas consumer finance businesssubsidiary PROMISE(HONGKONG)Co.,
Ltd. was established.

1989

Beginning of the
New era “Heisei”

Money Lending Business
Act took effect4SMBC Group

Business Outline

As an SMBC Group Member

Firm Advancements and Further Challenges

The SMBC Group launched a new group-wide management framework in April 2017, introducing the business division system to further enhance its
ability to interact with customers in an integrated manner as a unified group. In April 2018, “SMBC” was designated as Group's main brand. In
addition, the Group has also unified the naming and logo of member companies with their cooperation, in an effort to enhance group brand recognition
and brand value. In addition, together with the ‘Vision’ describing the objectives in mid-to-long-term and the ‘Five-Values’ to be shared by all officers
and employees, SMBC Group forms our basis corporate philosophy in order to fulfull missions to all stakeholders.

Corporate philosophy
system of SMBC GroupWe grow and prosper together with our customers, by providing services of greater value to them.
We aim to maximize our shareholders' value through the continuous growth of our business.
●
We create a work environment that encourages and rewards diligent and highly-motivated employees.
●
We contribute to a sustainable society by addressing environmental and social issues.
●●

MissionMissions to Fulfill

A trusted global solution provider committed to the growth of ourcustomers and advancement of society

VisionA pioneer in consumer financeIntegrity
As a professional, always act with sincerity and a high ethical standard.

Mid-to-long-term Envision

Customer First
Always look at it from the customer's point of view, and provide value based on their individual needs.

Proactive & Innovative

Five Values
Values to be shared by
all Officers and Employees

Our origin goes back to the establishment of “Kansai Financing” on March 20, 1962. The company changed its name to “Kansai PROMISE” inFebruary of the following year and commenced its consumer finance business in that year specializing in small unsecured loan. It introduced financesystem using checkbooks in similar form of a promissory note, what was the predecessor of revolving model.

Embrace new ideas and perspectives, don't be deterred by failure.

20 years later, we became the first consumer finance company in Japan to

The essence to our business is credit expertise. We inquire with credit bureau not

Speed & Quality

introduce an automated credit provision system in August 1983.This system

only during the pre-contract assessment process but also on a regular basis after

Differentiate ourselves through the speed and quality of our decision-making and service delivery.

allows us to automatically set the credit limits and make quick and accurate loan

a contract is established. We do so in order to learn about any changes in theTeam"SMBC Group"decisions based on customer information gathered through inquiries to customers

customer's situation and check their individual transactions one by one to ensure

and credit bureau, along with customer attributes and transactions accumulated

they do not overstretch themselves. The characteristics of consumer financesince our establishment.

business is described as 4“S”: Speed, Simple, Secret, Safety. We have been

Respect and leverage the knowledge and diverse talent of our global organization, as a team.

providing services following this “4S” so that customers can get finance from us

List of SMBC Group Companies

To date, we have been reviewing and improving this system on a regular basis, inwith peace of mind. Leveraging this strength of “4S” cultivated in the consumer

order to provide credit in light of the management environment as needed. We

finance business, we are utilizing the same business model and credit expertise

also constructed credit provision systems that calculated appropriate credit limit

to expand our guarantee business in collaboration with financial institution

for each customer in compliance with relevant laws and regulations of eachpartners, our global business development in Taiwan, Hong Kong, Thailand,

foreign country, same as Japan. Furthermore, we utilized AI technology tomainland China, and Vietnam, and our servicer business as well.

re-construct our credit assessment system in 2018. Leveraging the strength ofGroup Companies

5

Company Name

EstablishedPrinciple BusinessCompany Name

Established

Abilio Servicer Co., Ltd.

March 1999

Loan management
and collection

PROMISE（SHENYANG）CO.,LTD.

December 2010

SMBC Guarantee Co., Ltd.

July 1976

Credit Guarantee

Promise Consulting Service（Shenzhen）Co.,Ltd.

July 2012

PROMISE（HONG KONG）
CO.,LTD.

February 1992

Consumer finance

PROMISE（TIANJIN）CO.,LTD.

December 2012

Small loans(Consumer finance)
Outsourcing for the operationof group companies, Systemdevelopment & planning
Small loans(Consumer finance)

良京實業股份有限公司

August 1989

Loan management
and collection

PROMISE（CHONGQING）CO.,LTD.

August 2013

Small loans(Consumer finance)

普羅米斯資産管理股份有限公司

April 2014

Loan management
and collection

PROMISE（CHENGDU）CO.,LTD.

November 2013

Small loans(Consumer finance)

PROMISE（THAILAND）
CO.,LTD.

March 2004

Consumer finance

PROMISE（WUHAN）CO.,LTD.

November 2013

Small loans(Consumer finance)

PROMISE（SHENZHEN）
CO.,LTD.

May 2007

Small loans(Consumer finance)

PROMISE（SHANGHAI）CO.,LTD.

May 2014

Small loans(Consumer finance)

VPBank SMBC Finance Company Limited

February 2015

Consumer financePrinciple Businessthis system and digital technologies, we are working to improve the accuracy of

As a pioneer in this Japanese consumer finance market, we will continue toour credit judgement so our customers can make transactions with security anddevelop services to improve security and convenience while leveraging ourpeace of mind.

expertise to develop various businesses in order to meet diverse funding needs ofcustomers.

Outline of the credit provision system
Money Lending Business Act

Automated credit provision
Constituent elements of the automatedcredit provision system
Customer information (age, occupation, etc.)
Personal credit information(borrowing status, Status of repayments, etc.)
Record of transactions

Credit information agencies
Inquiry and registration of
personal credit information

JICC Japan credit Information Refernce Center Corp.
CIC Credit Information Center

Provision of personalcredit information

6

Business Outline

Financing business

Solution business

Providing Better Services to More Customers

Expanding into new business areas through collaboration

Financing services that provide greater convenience for customers

Expansion of our loan guarantee business and creation of new businesses and services

PROMISE is one of our financing business arms. Its main offering is Free
Cashing (revolving loans), which meets the various borrowing needs of individual customers. Other offerings include Card Loans for the Self-employed,
which meet the funding needs of self-employed individuals, and Consolidation Loans, which aim to ease the burden on those who are repaying multipleloans. In recent years, under the theme of digital transformation, we havebeen providing App Loans using our official app PROMISE as a platform inorder to speedily meet customers’ financial needs. Utilizing the resources of
the SMBC Group, in February 2022, we introduced V Points, a point service
common to the Group, and in March 2023, we started issuing Promise Visa
cards, which has credit functions from Sumitomo Mitsui Card Co., Ltd.

Our medium-term management plan for fiscal 2023 onward states “expanding into new business areas” as one of our strategies, and we are working tocreate new businesses and services while further expanding our loan guarantee business by providing solutions designed for financial institutions.

Outstanding loan balance

Total Memberships(1000 people)

1,403

1,395

1,482

(100 million yen)

7,468

7,345

7,818

(1) External guarantees for housing loans
By building a system of collaboration with SMBC Guarantee Co., Ltd., whichbecame our subsidiary in 2022, we are newly selling guarantees for housing
loan products offered by regional financial institutions.

2022/32023/32021/32022/32023/3

Automated
contract machines

Mail(unstaffed branches)

Customer Service Centers(non-face-to-face)

7

Business AffairsCenter(non-face-to-face)individuals● Loan Operations● Guarantees of SMBC

Digitization Platform

housing loans● Loan guarantee partnerships
with regional banks● Affiliated loans

New

Service provision model

Company A

Company B
Platform

Loan guarantee
companies

Internet

Member services● Unsecured loans for

Existing

Changecontract details

Repay

for regional banks

Resources

NTT Data Japan

Telephone

Borrow

For the creation of new businesses and services, we are promoting collaboration and co-creation with corporate customers, mainly based on the SMBC
Group’s customer base. By leveraging the expertise we have cultivated inconsumer finance, we aim to propose solutions that may contribute to the revitalization of our partners’ core business and their business diversification,
thereby developing our new business models.

New business areas● Housing loan guarantees

Existing

Financial
institutions

Apply · Contract* The COPC® CX Standard for CSPs Release 7.0 is a global quality assurance standard that was developed specifically for contact center operations to improve customer satisfaction and ensure efficient
operations. This certification is given to contact centers that have fulfilled and maintained the prescribedstandards to an excellent level, particularly in relation to customer response performance.

(3) New partnerships in guaranteeing personal loans
Leveraging the expertise we have developed in credit and loan management,
we currently partner with 188 financial institutions to provide them with personal loan guarantees. Aiming to further expand our loan guarantee business,
we are promoting new loan guarantee partnerships with financial institutions
by strengthening our collaboration with the SMBC Group and providing theLoan Operations Digitization Platform.

● Unsecured loan guarantees

Customers

Customer

Customer Service Centers have established a system that centrally holds
information about individual customers’ use of our services and provides all
kinds of support, thereby allowing customers to use our services with peaceof mind. The Centers’ constant efforts to improve customer response quality
have resulted in 11 consecutive years of certification under COPC,®* orinternational quality assurance standards for contact center operations,since 2013.

Market and customers

Various channels available to meet different customer needs(2) Provision of the Loan Operations Digitization Platform
In collaboration with NTT Data Japan Corporation, we have built a platformthat supports the digitalization of overall operations regarding loans, and wehave begun providing the platform to financial institutions. In the personalloan business, financial institutions and loan guarantee companies are facedwith inflated system costs and more complicated administrative operations.
By resolving these issues through the realization of digital transformation andproviding new value to financial institutions and users, we aim to contributeto the expansion of the personal loan market and become the industry
standard.

New

2021/3We have established a network of various channels in order to promptly meetcustomer needs for convenient services that can be used at any time,
anywhere, with peace of mind. At our Customer Service Centers, located ineastern and western Japan, we receive and screen loan applications, andprovide consultation and guidance on borrowing and repayment throughcontactless channels, including our automated loan contracting machines,
the Internet, and telephone. In February 2023, we introduced a consulting
service via smartphone, whereby customers can receive advice on an
application for a new loan from an avatar whose voice and gestures arematched to one of our employees. This service allows us to present materials
and share screens depending on individual customers’ inquiries. The

As solutions for financial institutions, we are promoting the planning andsales of (1) external guarantees for housing loans, (2) provision of the Loan
Operations Digitization Platform, and (3) new partnerships in guaranteeing
personal loans.

Customer contact support

All-online loan application andconclusion with eKYC

Data linkage between banks and Automatic loan screening retrials
loan guarantee companies
by loan guarantee companies

Loan guarantee
company A

Loan guarantee
company B

Loan guarantee
company C

Loan guarantee companies other than
SMBCCF may participate.

SMBCCF
Card loans
Free-purpose loans etc.

8Business Outline

Loan Guarantee business

Overseas business

Providing Services to Meet Diverse Funding Needs

Providing Reliable and Secure Financial Services Worldwide

Expansion of our loan guarantee businessthrough the use of our expertise

Consumer financial services spreading in Asia
Leveraging the credit, loan management, business operation, and marketing expertise we have developed in Japan, we have established local subsidiaries in Taiwan, Hong Kong, Thailand, and mainland China, and conduct business in those countries and regions.
Our overseas business started in Taiwan in 1989. In 1992, we established PROMISE (HONG KONG)
CO., LTD. as our first consumer finance subsidiary outside Japan.

Leveraging the expertise we have developed in credit and loan management, we are engaged in the loan
guarantee business. When our partner financial institution receives an application for an unsecured personalloan, it screens the application, and then we, as the loan guarantee company, conduct guarantee screening,based on which the financial institution accommodates the applicant with the loan. If it becomes difficult forthe customer to repay the loan, we will repay the financial institution on behalf of the customer.

PROMISE(SHENYANG) CO., LTD.
PROMISE(TIANJIN) CO., LTD.

PROMISE(WUHAN) CO., LTD.

Overseas Base (As of June 30, 2023)

PROMISE(SHANGHAI) CO., LTD.
PROMISE(SHENZHEN) CO., LTD.

Partner financial institutions across Japan (as of June 30, 2023)
Banks
Credit unions
Credit associations
OthersPartner financial institutions to which loan
guarantee is provided

CHINA

71
79
34
4

188

PROMISE (HONG KONG) CO., LTD.
PROMISE (CHONGQING) CO., LTD.

TAIWANHONG KONG

shopfront in Cheng Du

Guarantee Center

THAILAND(Tokyo)PROMISE (Thailand) CO., LTD.

shopfront in Hongkong

VIETNAM

Guarantee Center(Fukuoka)

Our loan guarantee business started in April 2003. In 2005, we formed aloan guarantee partnership with Sumitomo Mitsui Banking Corporation, acompany of the SMBC Group, which we have joined. We now partner with financial institutions across Japan to provide them with loan guarantees. Our
Guarantee Centers, located in Tokyo and Fukuoka, are entrusted with application reception and guarantee screening for unsecured personal loans provided by our partner financial institutions. In October 2018, they became Japan’s first guarantee centers serving as BPO* contractors to obtaincertification under COPC® international quality assurance standards.
We also dispatch our employees to some of our partner financial institutions.
The employees provide support in setting up and operating call centers, andshare our expertise with the financial institutions in collaboratively runningthe call centers, including the Sumitomo Mitsui Banking Corporation Card
Loan Plaza, which opened in 2005.
We will continue to conduct appropriate credit management, develop financial products tailored to the characteristics and needs of our partner financial
institutions, and plan and propose sales promotions and other matters forthese financial institutions, thereby meeting a broad range of financial needsof customers.

Liang Jing Co., Ltd.

VPBank SMBC Finance Company Limited

Promise Asset Management Co., Ltd.

shop inside shopping center in Thailand

Support tailored to a wide variety of needs

Customer
Application

Loan

Partner financial institutions
Various kinds of support
Solution Sales Dept.
Guarantee Business Dept.
Product development
Promotion support

Guarantee Centers(Tokyo and Fukuoka)

SMBC
Consumer
Finance

System provision

Reception of loan applications
Guarantee screening
Business processing

Guaranteed loans outstanding(Billion yen)

11,022* BPO, or business process outsourcing, refers to continuous entrustment of a series of business processes to outside companies.

SMBC

9

PROMISE(SHENZHEN) CO., LTD. Administration Center

PROMISE (CHENGDU) CO., LTD.

10,916

11,437

5,523

5,516

5,847

5,499

5,400

5,590

2021/32022/32023/3

PROMISE (HONG KONG) offers unsecured and unguaranteed small loans to
individuals as we do in Japan, and has 19 staffed branches throughout HongKong. In response to recent growing needs for online transactions, PROMISE(HONG KONG) introduced an all-online service in November 2014 tostrengthen its online application reception function. This is just one exampleof PROMISE (HONG KONG)’s efforts to quickly grasp customer needs andprovide highly convenient services.
Based on our track record at PROMISE (HONG KONG), we established PROMISE (THAILAND) in 2004. PROMISE (THAILAND) has reception desks at 102
service points* throughout the country, and strives to enhance sales promotions through TV commercials and Internet advertising, aiming to become afamiliar personal loan company.
* These unstaffed reception desks only receive loan applications in contrast to staffed branches, which
cover the entire process, from loan application and conclusion to repayment.

In 2021, as part of the SMBC Group’s Asian multi-franchise strategy, we acquired a 49% stake in FE Credit, Vietnam’s largest consumer finance company. We aim to contribute to FE Credit’s further development by leveraging theconsumer finance expertise we have cultivated over many years in Asia. By
absorbing FE Credit’s advanced digital methods and other expertise, we also
aim to strengthen the growth strategies of both companies.

Customer loans outstanding(Billion yen)

1,256
1,136

1,041
308

After gaining experience in running PROMISE (HONG KONG) and PROMISE(THAILAND), we have established local subsidiaries in seven cities in mainland China. The service brand we use in mainland China is Bo Min Kuai Yi
Dai. The sales staff strive to develop local networks, and the local subsidiaries
endeavor to improve customer convenience through personal authentication
on an online platform and the digitalization of contract documents, aiming toprovide local customers with services of their choice.

234

309

495
354

305

428

473

528

2021/32022/32023/3

Hong Kong

ThailandMainland China

Other financial institutions

10

Business Outline

Sustainability

Sustainability at SMBC Consumer Finance

Loan management business

SMBC Consumer Finance is involved in activities for the realization of a sustainable society in accordance with the basic policy set out by theStrengthening Businesses with Expertise

SMBC Group.

Loan management system that supports other businesses

SMBC Group Statement on Sustainability

In addition to our credit investigation expertise, one other strength of SMBC
Consumer Finance is our loan management expertise, which support otherbusinesses.
Our Loan management services are provided by Customer Support Centerand subsidiary company Abilio Servicer. These two organizations work
together to build the best possible loan management system.
The Customer Support Center is newly established in April 2021 through the
integration of previous Counseling Center (offered repayment consultation
services by dedicated staffs with specialist expertise to support customers
from their perspectives) and Loan Administration Center (provided
management and collection of long-overdue loans in the Financing Business,
reimbursement claims in the Loan Guarantee Business, handling ofcustomer claims for repayment of settled interests and legal advice) to
combine their strengths and benefit from the synergy.

repayment concerns directly over the phone to gain an understanding of
their circumstances and needs, in order to offer tailored proposals andadvice for solutions. Through such approach, we are seeking to support both
‘Now’ and ‘Future’ of our customers by providing ‘genuine repayment
consultations’.
Abilio Servicer undertakes the servicer business of managing and collecting
loans and purchases small and large loans from financial institutions acrossthe country. With an extensive network of five operating bases across Japan,
Abilio Servicer is developing its business activities by providing services tomore than 2,200 financial institutions which consist primarily of banks andcredit unions. In addition, Abilio Service is also taking on new challenges
including business revitalization projects and collaboration with other SMBC
Group companies.

Engagement Circle〜Joining Hands and Connecting with Each Other〜

As a Group which has roots in Mitsui and Sumitomo, SMBC Group has
continuously upheld its commitment to sustainability. Based on initiativethat we have set out for our concentrated efforts for issues in society,we will drive forward our efforts to make sustainability a reality.

Bond formed between
customers and employees
through products
and services

Defi nition of Sustainability
SMBC Group defines sustainability as “creating a society in which to-

Bond formed withcustomers based on trust
built through contribution
to society

day’s generation can enjoy economic prosperity and well-being and pass
Realization of
Sustainable Growth

it on to future generations.”

Our “Customer First(CF)” Promise！
From meeting Employee
expectations(ES) to exceeding
employee expectations(EX)Sustainability at SMBC Consumer Finance
As a member of SMBC Group, we establish solid management infra-

Customer Support Center staffs communicate with customers about

From meeting Customer
expectations(CS)to exceeding
Customer expectations(CX)

Realizationof a sustainable Society

structure and ensure thorough compliance. Each employee thinks about"what we can do" to solve the problems of all stakeholders and contribute to sustainable development of the society as a whole.

Loan management system
Financing
Business

Loan
Guarantee
Business

Customer

Bond formed between society
and employees though CSR activities

We have identified the following “important sustainability topics” to tackle through our business operation: “Forming a sound consumer finance

SMBC Consumer Finance (SMBCCF) expressing our PROMISE (which is also
our service brand) of “Customer First” approach.

market”, “Building a lively society and happy, healthy lifestyle for People”, and “Promoting earth-friendly business activities.”

Loan Management business
Management andcollection of loans

Consultation for
repayment

Customer Support Center

The roles we assume andthe specifi c actions we take
Providing social value by
leveraging the strengths ofour company (employees)

Abillio Servicer• Financial and economic
education seminars• Social contribution activities(donations and local contribution)

Coexistence and co-prosperity with society

Environment

Poverty anddisparity• Response to environmental issues

DE&I andhuman rights
Priority issues(materiality)common to
SMBC Group
companies

Consumer finance that supports
comfortable living• Appropriate screening and credit• CFP promotion in each department

11

Declining birthrate
and aging population

Japan’s regrowth

Respecting the fundamental humanrights of all people, thereby maintaining
good social conditions and providing
a pleasant work environment• Promotion of EX and D&I• Workplace culture that welcomes ambitious attempts• Work style reform through DX• Pro bono
• Response to human rights issues

Ensuring a healthy market and providing financial
services that are easily accessible to everyone• Improving services by promoting digitalization and other methods• Customer-oriented consultation

12

Sustainability

Social Contribution Activities

Working for Customer Satisfactions

Education programs to improve fi nancial literacy
Financial and economic education seminars
The SMBC Group aims to create a society where everyone can acquire correct knowledge aboutmoney and live with peace of mind. To this end, the Group provides a variety of financial and economic education for a wide range of generations by leveraging the knowledge and expertise possessed by

CX (Customer Experience)

BPR* (Business Process Re-engineering)

Initiatives to improve services througha thorough customer-fi rst approach

Company-wide BPR Promotion

Since our founding, we have striven to improve CX by thoroughly provid-

individual Group companies. As a member of the SMBC Group, we have worked to spread financial

ing services from the customer’s perspective, including App Loans,and economic education among students, who will shape the future, as well as local residents.

which allow customers to complete the entire loan process, from appli-

This education activity started in 2011 and has been participated in by over 1.5 million people in to-cation to borrowing, on their smartphones, and V Points, which can betal, as of March 2023. Moreover, our financial and economic education activities have been support-

used conveniently in their daily lives. This fiscal year, we are promoting

ed by the Ministry of Education, Culture, Sports, Science and Technology, and won the Judging Com-effective companywide CX activities under the basic policy of “enhancing

mittee’s Encouragement Award at the Awards for Companies Promoting Experience-based Learning* Review and restructure business operations with the objective of improving effi ciency or
productivity.

our CX activities that focus on the provision of ‘services that exceed cus-

Activities for Youth.

tomer expectations’ and pursuing desirable results.” We aim to provide
the best services that meet the needs of individual customers, both interms of digital technology and human touch.

The video content shows receipt of the Award of Excellence in the Consumer
Education Material Award 2022, conducted by the National Institute on Consumer Education.

CX

Beginning in June 2021, 40 videos of content were made available free of charge to support schools that
had been missing out on face-to-face teaching opportunities due to the COVID-19. As educational materials that can be effectively used in schools, we received the Award of Excellence in the Consumer Education Material Award 2022, conducted by the National Institute on Consumer Education.

Digital technology

Customer

CustomerDeveloping an active learning type program

We established “BPR Business Department” in FY2020 in order to improvecustomer satisfaction and gain competitive advantage against other companies. It will take over BPR promotion activities previously conducted byeach department and function as a centralized, cross-organizational department responsible for BPR planning and promotion for the entire group.

貯める

借りる

We will not stop holding seminars where you can acquire correct knowledge about"money" until now. The program was created to provide an opportunity to confront future life and working in society through the study of "money", and to foster
an attitude of actively learning on one's own initiative.

We are a long-standing sponsor of The Promise Essay Contest. The 27th contest has been conducted in 2022. In recent years,
this contest has seen over 7,000 entries from a wide range of age groups and have been utilized in school education as inclass learnings and assignments.

We uphold the following as the ultimate objectives of BPR: Allocating theadditional availabilities created by BRP to “EX improvement”, “CX improvement” and “Expansion into new growing fields” and leading to the company’s future growth. In addition, The “BPR promotion leader”*nominated fromeach department, the BPR promotion department and other related departments in head office will work together to form a team and collaborateclosely to discover and implement BPR proposals for improvement.
* Responsible for actively promote BPR activities by sharing initiatives and broadcasting informationcompany-wide.

Example of CX improvement through BPR Business Dept.

Companywide service improvement activities
aimed at exceeding customer expectations

Employee

On a daily basis, we identify issues to address and points to be improved, based on the feedback that customers directly give us, as well
as service and business improvement proposals that employees comeup with in their daily work.
These identified issues and points to be improved are mutually discussed from various perspectives among personnel from customer ser-Donationsdetermined.
The voices of customers and the progress of improvements are promptly
shared with all employees, as well as management, through meetings
and web-based internal newsletters. We strive to promptly implement
the determined solutions with the cooperation of the relevant departments.
For examples of the improvements we have made based on customer
feedback, please visit our website.

Environment management system
In October 2014, we established an environmental policy and built an environmental management system to contribute to the environment through our business, such as increasing customer convenience through digitalization, promoting the use of web statements, and promoting card-less transactions.

13

CX

RPA

Customers

Availability Creation* A matching donation scheme allowing employees to determine the recipient and monthly donation value. The amount is deducted from participating employee’s monthly salary and complimented by certain payment from the company.

RPA

Providing optimized
customer service

vice departments and head office divisions, and specific solutions are
System automation & review of business processes

The internal fund-raising system Yakusoku-no-Mori* has been set up as a scheme that allows employees to think about andparticipate in contribution to society in a more familiar way. Through this scheme, we provide support for children's welfare facilities (Japan National Council of Children's Homes), children's self-reliance living assistance services (National Council of Self-Reliance Support Homes) andprojects to raise hearing dogs (The Japan Hearing Dogs for Deaf People). We also provide support through the SMBC Group Rising Fund for executives and employees of SMBC Group companies.

Customer support
task

Typing checktask

Introduction of RPA

Supporting cultural education activities

Human
touch

From BPR to company growth

Consultation
Enhancement

Resources
allocated to
new business
areas

14

Sustainability

Corporate Governance

Employee facing initiatives

How we evaluate our employees

Basic Stance on Corporate Governance

SMBC Consumer Finance evaluates our employees as “Human Capital” and believes in “Supporting each individual growth.” Based on thisbelief, we are actively focusing on employee training in line with three policies: 1. Provide training tailored to career needs; 2. Encourage
employees to develop skills; and 3. Provide ongoing training for the career advancement of diverse employees. We are also concentrating ourefforts on the development of human capital “capable of sensing current needs based on changes and trends in the internal and external
environment, carefully considering necessary action, and rising to the challenge of our transformation for the creation of new value”.

Diversity Initiatives
We are committed to promoting diversity with the objective of creating awork environment where each employee can fulfill their full potential andfeel motivated to work, irrespective of gender, age, nationality, disability,or form of employment. To this end, we take various measures, such as
introducing region-specific job and short-time work systems to support
a balance between work and childcare, implementing various training
programs to promote the empowerment of female and senior employees, promoting understanding of LGBTQ issues, and revising our HR

lifestyles. To strengthen the EAP*2 system, we are developing a range ofactivities, including responses to leaves of absence and return to work,
the planning and promotion of mental health education, the enhancementof cooperation with industrial doctors and industrial health staff, theestablishment of a healthcare room and the holding of safety and healthcommittee meetings.
*1 Cafeteria plan: A welfare program operation method by which points are granted to eligible employees each year so that they can choose and use the predetermined menus within the range ofpoints granted.
*2 EAP: Employee Assistance Programsystems. We have also appointed engagement ambassadors in each department to help change the mindset of employees and create a motivating work environment. Through these initiatives, we aim
to create an environment where diverse talents can work with a sense of achievement
and passion to grow.

We believe that effective corporate governance is integral to the prosperous coexistence of SMBC Consumer Finance and its groupcompanies with society as a trusted corporate citizen. To this end, we constantly strive to strengthen our management structure, improve ourinternal control and audit systems and further improve the efficiency, soundness and transparency of management through the prompt andfair disclosure of corporation information on a pillar of ethical and legal compliance.

Risk Management

Response to antisocial forces

We are enhancing our risk management system with proactive involvement

We have organized our preparedness for severing all relationships withof the executive team, in order to properly manage and control various risks

antisocial forces by establishing a basic policy on how to deal with thesesurrounding the Company and each group company, maintain sound andforces. We have established the Basic Policy on the Exclusion of Antisocial

appropriate organization management, and continuously improve our cor-

Forces to sever and eliminate relationships with antisocial forces in a

porate value. We have established Risk Management Committee to identify

determined attitude, maintain public confidence in SMBC Consumer

and appropriately manage all risks surrounding the entire company Group.

Finance, ensure businesses are run appropriately, and prevent damage

By providing flexible support across the whole company when any risk iscaused by antisocial forces.

actualized, we aim to maintain sound business operation and ensure ap-

Implementation of Health & Productivity Management

propriate management. In addition, we have introduced the SMBC Group’s

Our management foundation is supported by our employees. In order torisk-sensitive business management system in order to bring it up to an

maintain and improve the health of themselves and their families, we

advanced level.

common Risk Appetite Framework as one part of our effort to build ahave appointed the President and Representative Director as the Chief

Countermeasures against money laundering andterrorism financing

Health Management Officer, and we promote health management based

We are taking steps to prevent the violation of regulations on money laun-on our Health & Productivity Declaration Statement. In March 2023, wereceived the “Excellent Corporation for Health Management (Large Cor-

Compliancedering and terrorism financing based on requests from international organizations such as FATF* and countries concerned, as well as laws and regu-

poration Category)” certification, which was jointly issued by the Ministry

Positioning thorough compliance as one of our most important manage-

lations in Japan and other countries, to secure appropriate businessof Economy, Trade and Industry and the Japan Health Council.

ment issues, we go beyond simply complying with laws and regulations

operations.

to ensure that our conduct is in line with social norms and widely sup-15

* We have established the ‘Antisocial Forces Exclusion Protocols’ which contains this policy.

Efforts to increase the employee satisfaction level

Health & Productivity Declaration Statement

We are taking steps to not only increase the customer satisfaction level,
but also create a working environment with a high employee satisfactionlevel. We are also striving to achieve a work-life balance for employees by
supporting their life events and work at the same time, through measures
such as introducing region-specific jobs and work in a reduced schedule,
providing information to employees who have taken maternity leave andchildcare leave, and holding a support seminar for return to work. For
employees who wish to focus on selfimprovement, we have also introduced
correspondence courses to help themacquire qualifications such as the head ofmoney lending operations and improve theirskills. We are also enhancing the quantityand quality of welfare program menus by
introducing a cafeteria plan*1, for example,
in which employees can use the welfare
program in step with changes in their

SMBC Consumer Finance is committed to “Health & Productivity Management”, to enable every employee to continue working
energetically in good physical and mental health and delivering
customer-oriented services for the realization of its Vision for
the Future: Aiming to become a highly trustworthy global consumer fi nance company.
SMBC Consumer Finance also declares that it is working
closely with its health insurance society to actively encourage
employees and their families to take the initiative and maintainand improve their own health.

ported by society. To this end, we work to enhance and strengthen our* An abbreviation for the Financial Action Task Force.

compliance system through modifications to our company regulations
and organizational structure, and the implementation of in-house education and ongoing awareness-building activities. Our organizational struc-

BCP (Business Continuity Plan)

ture for compliance consists of the Risk Management Department,

We have established procedures in relation to emergency measures, in or-

which supervises compliance, the Compliance Promotion Department,

der to respond promptly and appropriately in the event of an emergency

which strengthens coordination between operations divisions, and asuch as natural disasters. In addition, we have formulated a BCP (Businesscompliance officer in each department. They all work to maintain ourContinuity Plan) to ensure business continuity and early recovery from suchappropriate system of complying laws and regulations. The Internal Audit

events. We conduct ‘BCP Training’ on a regular basis, including various

Department and the Global Internal Audit Department regularly audit

trainings on initial response and other measures upon large-scale disasters

such compliance system and activities from an independent standpoint(earthquake, etc.). Through these on-going trainings, issues are identified

to verify their appropriateness. Moreover, we have set up consultationand improvements are considered to enhance our emergency response

desks both inside and outside the company to enhance our ability tosystem.

control ourselves through the early detection and correction of acts that
violate laws and regulations, and we strive to reinforce our whistleblowing system under the Whistleblower Protection Act.

16

Company Overview

Organization

Information

Financial Highlights■ Planning &Coordination Office

Corporate Planning Dept.

Operating income(Yen million)

Consumer loans outstanding(Yen million)

Accounting Dept.
Corporate Communication＆Sustainability Dept.
Human Resources Dept.

General Meetingof Shareholders

300,000

294,089

273,481

268,920

1,200,000

250,000

General Affairs Dept.
Audit & Supervisory
Board Member

Board of Directors

Audit & Supervisory
Board Members’ Dept.

■ Credit Risk Monitoring Office

100,000

400,000

BPR Business Dept.

200,000

March 20, 1962

System Development Dept.

Paid-in Capital

140,737 million Yen

Infrastructure Systems Dept.

Shareholder

Sumitomo Mitsui Financial Group 100%

Fiscal Year

April 1 to March 31

03-6887-1515

Principal Business

Consumer Finance, Guarantee

Employees

Business Promotion Dept.

FY2022

FY2023

Guarantee Business Dept.

■ CLP Promotion Office■ Recurring profit

43.1 years old

Overseas Business Dept.

Association membershipJapan Financial Service Association,
Japan Credit Card Association,
Japan Business Federation

Customer Service Center*1■ Net income

73,4611,500,000

68,641

59,52754,137

1,357,840

44,081900,000

40,000600,000

20,000

Guarantee Center*3*1 Two Customer Service Centers serving theHigashi-Nihon and Nishi-Nihon*2 Eleven Customer Service Plazas in
Sapporo,Sendai, Shinjuku, Kanazawa, Nagoya,Umeda, Hiroshima, 0Matsuyama, Fukuoka,
Kagoshima, and Naha
*3 Two Guarantee Centers (Tokyo and Fukuoka)

1,917,183

1,200,000

Customer Service Plaza*2* These are all (unstaffed) stores equippedwith automated contract machines.

2,100,000
1,800,000

85,15060,000(Yen million)

1,818,133

100,000

80,000Loan Management Dept.

581* (as of June 30, 2023)

FY2023(Yen million)

Solution Business Promotion Dept.

2,139 (male 1,166, female 973)

0

Total assets

Recurring profit / Net income

IT Strategy Dept.

Average Age of Employees

Service channels

FY2021■ System Security
Management Office

System Planning Dept.

Date of Establishment

Telephone0Internal Management Dept.

SMBC Consumer Finance Co., Ltd.

2-2-31, Toyosu, Koto-ku,
Tokyo, 135-0061, Japan

FY2022600,000

Credit Planning Dept.

Trade Name

Head Office

FY2021

1,223,517

800,000

50,000President

1,144,156

150,000

Customer Experience Dept. ■ Customer Relationship Office
Exterior of Headquarters Office

1,137,138

1,000,000

200,000

Risk Management Dept.

1,400,000

0

Customer Support Center

300,000

FY2021

FY2022

FY20230

FY2021

FY2022

FY2023Business Affairs Center
Internal Audit Dept.

(Figures as of March 31, 2023)

Global Internal Audit Dept.
(as of April 1 , 2023)

Net assets / Equity Ratio

List of Officers

800,000

Ryohei Kaneko

Audit & Supervisory Board Member Tomoichirou Muneno

Managing Executive Officer Tsuneo Yamamoto

700,000

Director, Vice President Executive Officer Senior Managing

Masatsugu Kojima

Audit & Supervisory Board Member Hideki Yamaguchi

Managing Executive Officer Takeyoshi Enomoto

600,000

Director, Senior Managing Executive Officer

Masaki Miura

Audit & Supervisory Board Member Akihiro Ito

Executive Officer

Hiroshi Kato

Director, Managing Executive Officer

Tatsuya Iochi

Executive Officer

Akira Sato

Director, Executive Officer

Masafumi Ogawa

Executive Officer

Yoshiyuki Kawamoto

Director, Executive Officer

Hiroshi Kikugawa

Executive Officer

Takayuki Okada

Director, Executive Officer

Norihisa Miyashita

Executive Officer

Nobuhiko Kobayashi

Director

Takashi Yamashita

Executive Officer

Atsushi Uematsu

Executive Officer

Shuuichirou Takubo

President and Representative Director, Chief Executive Officer

17

Interest-bearing debt
(Yen-millon/%)(As of June 30 , 2023)

500,000■ Net assets

Equity Ratio

1,200,000

1,030,148

662,490

1,058,126

1,000,000

576,154477,507800,000

735,865

600,000

400,000
300,000(Yen million)

35.17

31.69

34.56
400,000

200,000
200,000

100,000
0

FY2021

FY2022

FY20230

FY2021

FY2022

FY202318