Seven Bank : Established a Group Company in Malaysia

June 6, 2024

Seven Bank Established a Group Company

in Malaysia

• An Overseas Group Company in the 4th Operating Base following the U.S., Indonesia, and the Philippines -

We hereby announce that Seven Bank, Ltd. (location of head office: Chiyoda-ku, Tokyo; President and Representative Director: Masaaki Matsuhashi) established a local corporation in Malaysia, which is an overseas group company of Seven Bank in the fourth operating base following the U.S., Indonesia, and the Philippines, through joint investment of four companies, Seven Bank, 7-ELEVEN SERVICES SDN. BHD. (hereinafter referred to as "SES") which is a wholly-owned subsidiary of 7-ELEVEN MALAYSIA SDN. BHD. (hereinafter referred to as "SEM"), a local investment holding company HQZ CREDIT SDN. BHD. (hereinafter referred to as "HQZ"), and a local investment holding company SMRT HOLDINGS BERHAD (hereinafter referred to as "SMRT") as of May 30, 2024 (hereinafter referred to as the "Group Company").

1. Background of the establishment of the local corporation in Malaysia

Malaysia is currently showing economic growth at 3.7% (GDP growth rate in 2023/according to the Department of Statistics Malaysia), and its demographic dividend period is forecast to continue until 2050 with a large proportion of younger generations, just like Indonesia and the Philippines. In addition, given that the amount of cash in circulation has increased every year, we regard the country as one of the promising Asian markets.

Particularly, as for lifestyle habits in Malaysia, the proportion of people who pay in cash on a daily basis exceeds 70%, with the average number of withdrawals using ATMs being high compared with Japan and other Asian countries. In addition, while the total number of ATMs currently stands at around 15,000 or so throughout the nation, the number of ATMs per 1 million population amounts to 446. For these reasons, Seven Bank has judged that growth potential is expected in the ATM business in this country.

2. Description of the business in Malaysia

The Group Company, based in Kuala Lumpur, the capital of Malaysia, will proceed with the placement of banknote-recycling-type ATMs mainly in regions where there are fewer bank branches and existing ATMs, and will operate ATMs by utilizing know-how that Seven Bank has accumulated to date. As there are few ATMs placed within convenience stores in the locality, we will aim to intertwine finance and retail services by providing new financial services through convenience store ATMs by sequentially installing ATMs in 7-Eleven stores, which have been familiar to the people for around 40 years as an icon of convenience stores in Malaysia.

Image of the signing ceremony for a joint venture agreement; from left: Mr. Hew Chee Wai (HQZ), Mr. Tan U-Ming (SES), Jo Watabe (Seven Bank), Mr. Maha Ramanathan Palan (SMRT)

Going forward, we will continue to step up our efforts to further improve services with Japanese and overseas group companies working in an integrated fashion toward achieving our purpose "Create a better version of daily life by going beyond the wishes of our customers."

3. Overview of the company

Company name	ABADI TAMBAH MULIA INTERNASIONAL MALAYSIA SDN. BHD.
Location	Kuala Lumpur, Malaysia
Representative	Jo Watabe
Amount of Capital	MYR13.2 million (approx. JPY396 million) *Calculated at MYR1 = JPY30
	Seven Bank: 50.1%
Investment ratio	SES: 24.9%
HQZ: 20.0%
	SMRT: 5.0%

Date of establishment

May 30, 2024

[About 7-ELEVEN SERVICES SDN. BHD.]

A Malaysian company. This company is a wholly-owned subsidiary of 7-ELEVEN MALAYSIA SDN. BHD., which is the largest operator of "7-Eleven"24-hour convenience stores in Malaysia and has over 2,500 stores throughout the country. It is an affiliates of Berjaya Corporation Berhad, a conglomerate company in Malaysia.

[About HQZ CREDIT SDN. BHD.]

A Malaysian company. The company is principally engaged in the investment holdings, money lending, and factoring activities.

[About SMRT HOLDINGS BERHAD]

A Malaysian company. This company is an investment holding company listed on the ACE market of Bursa Malaysia.

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