SMBC Group Report 2018

CEO CEO SMBC Group Report 2018 1

SMBC 4 SMBC 6 7 ESG 10 SMBC 12 CEO 20 22 CFO 27 28 30 32 34 36 38 40 42 SMBC SMBC Group Report 2018 IIRC 2013 12 SMBC Group Report 2018 CSR 2017 2017 42018 3 2018 4 2018 7 2 SMBC Group Report 2018

68 44 52 54 58 72 74 78 80 64 67 21 5229 Form 20-F 100-0005 1-1-2 TEL 03 3282-8111 SMBC Group Report 2018 3

SMBC SMBC 400 & SMBC 2018 1 SMBC 1590 1895 2019 4 SMBC 1673 1876 2001 2002 2003 2004 2005 2006 2007 IT 4 SMBC Group Report 2018

SMBC SMBC 2015 11 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ACLEDA Bank SMBC Rail Services Vietnam Eximbank BTPN SMBC Aviation Capital / RBS Aerospace NISA 8% 9 EU SMBC Group Report 2018 5

SMBC ROE* 10,000 5,000 7,344 % 15 10 8.8% 0 13 14 15 16 17 0 13 14 15 16 17 * 278 1,044 7 8% % 80 Tier1* % 15 14.5% 60.9% 60 10 0 13 14 15 16 17 0 14/3 15/3 16/3 17/3 18/3 * 2019 3 2017 60.9%2016 62.1% 1% Tier1 2.3% 1 2018 6 200 170 Moody s A1 P-1 A1 P-1 100 S&P A- A A-1 Fitch A F1 A F1 0 13 14 15 16 17 R&I A+ AA- a-1+ JCR AA- AA J-1+ 2017 20101 170 6 SMBC Group Report 2018

ESG SMBC work with Pride LGBT PRIDE SMBC 3 2 Smart Work 4.540 2 SMBC SMBC7 SMBC Group Report 2018

SMBC ESG Environment P60 CO2 t-co2 250 198 t-co2 200 150 33 CO2 100 50 0 13 14 15 16 17 10,856 t-co2 2017 Social P62 P76 4,500 3,400 % 25 21.0% 3,000 15 2020 20% 1,500 0 14 17 0 2019 25% 15/3 16/3 17/3 18/3 % 40 33.3% % 2.6 2.4 2.37% 30 2.2 0 14/6 18/4 0 14 15 16 17 3 1 8 SMBC Group Report 2018

SMBC 9 Governance P44 2017 7 10 3 2018 6 28 41 3 10 3 17 7 1 2 1 1 1 SRI SMBC CSR SRI GPIF ESG SMBC Group Report 2018

SMBC SMBC SMBC SMBC E S G P30 P32 P34 P36 10 SMBC Group Report 2018

SMBC Group Report 2018 11

CEO CEO 12 SMBC Group Report 2018

SMBC 13 SMBC Group Report SMBC CEO 2017 10 10 10 10 10 40 FinTech SMBC Group Report 2018

CEO P4 SMBC AI IoT CEO SMBC 2014 10 10 2017 4 2019 3 SMBC Group Next Stage 1 2 3 4 4 SMBC 14 SMBC Group Report 2018

SMBC 15 ROE 2017 8.8% 20% 3 SMBC 2015 SDGs 10 SMBC Group Next Stage 2017 SMBC Group Next Stage Discipline Focus Integration 3 CxO 1 2017 CEO P76 P59 SDGs P20 SMBC Group Next Stage SMBC Group Report 2018

CEO Integration P28 4 P27 4 SMBC SMBC 2018 3 SMBC Discipline FocusDiscipline RPA Robotic Process Automation 110550 500 260 2018 2018 3 1 3 3 SMBC 3 2018 O&D Origination & Distribution 16 SMBC Group Report 2018

2017 1033 430 Focus 7 BTPN& SMBC 2018 5 P40 SMBC17 SMBC Group Report 2018

CEO SMBC P38 SMBC IC QR P25 2018 5 2017 12 Tier1 10% 18 SMBC Group Report 2018

SMBC 19 40% 2020 4 40% 2017 1 2010 1702018 2017170 700Tier1 2019 3 10%2017 1,000 2018 SMBC Customer First CEO 2018 7 SMBC Group Report 2018

MBC SMBC S 2017 2019 Discipline 1 Focus 2 3 7 Integration ESG 2019 ROE 7 8% 7% 20161% 2020 60%201662.1% Tier1* 1,2 10% 2016 8.3% *1 25% *2 Tier1 Enhance Grow Transform Build 20 SMBC Group Report 2018

SMBC CxO 7 Enhance Grow Build 1 No.1 2 3 4 5 6 & 7 SMBC 2018 5 40% SMBC CxO 40% Tier1 10% ROE* 3 7 8% ROE* 4 8% *3 *4 SMBC Group Report 2018 21

CFO CFO 2017 2017 603 2 9,811 1 8,162 710 1 2,038 702 942 639 1,189 500 1,583 1 1,641 278 7,344 P80 2018 2018 488 1 1,550 344 7,000 6,000 22 SMBC Group Report 2018

SMBC 23 SMBC Group Next Stage SMBC 3 ROETier1 3 2017 ROE 8.8% 60.9% Tier1 9.5% 2019 3 10%1 2016 2017 2019 ROE 7.8%* 1 8.8% 7 8% 7% 62.1% 60.9% 20161% 2020 60% Tier1* 2, 3 8.3% 9.5% 10% *1 *2 25% *3 Tier1 ROE 2017 ROE ROE 8.8% ROE 7 8%7% ROE 2017 60.9% 3 3 500 260 RPA 3 3001,500 110550 3 430 103134 SMBC SMBC 2018 1 SMBC Group Report 2018

CFO RPA 3 4,000 2017 1,000 202060% Tier1(CET1) 2017 12 70%72.5% CVA Tier1 2017 2018 2019 3 10% 1 Tier1 % 15 12 9 * 4 11.9 12.2 9.9 10.0 14.5 11.8 * 5 [9.7] 8.3 [11.1] 9.5 2019 3 10% Tier1 ( ) Tier1 ( 6 3 0 16/3 17/3 18/3 17/3 18/3 65.9 70.6 63.5 7.90 (1.35) 8.68 (1.54) 9.22 (1.69) 88.8 (85.6) 8.68 (1.54) 82.4 (78.7) 9.22 (1.69) 2017 2018 20bp 30bp 2017 40bp 2018 11 *4 2019 3 *5 25% 24 SMBC Group Report 2018

SMBC 18 CEO 2018 5 ROE ROE 8% ROE * 6 2020 4 40% *6 Tier12015 9 28%2020 14% 5 5,000 20171,150 2015 9 2,300 1,150 2018 33,450 2018 6 1 200 150 100 50 0 100 11 10 110 12 120 13 140 14 15 16 17 170 170 * 7 26.8% 21.3% 20.3% 26.2% 32.7% 29.9% 32.7% 34.3%* 8 150 150 42.2% *7 *8 2018 7,000 1170 2017 20 8 6 4 2 0 6.40 1.80 15/9 28% 6.55 1.79 16/3 27% 7.14 24% 7.53 1.69 1.57 17/3 18/3 21% *9 CET1 CET1 2015 11 G-SIFIs CET1 CET1* 9 2017 2015 9 2018 3 2018 3 5 2020 14% 1,150 2,300 1,150 3,450 SMBC Group Report 2018 25

CFO 2017 BEPS* 10 2017 12 2018 4 SMFG *10 OECDBase Erosion and Profit Shifting CFO 2017 IR Day CFO 26 SMBC Group Report 2018

SMFG 2018 4 SMBC SMBC Point1 SMBC SMBC Point2 Point3 1 SMBC Point4 2 & SMBCNEWS RELEASE SMBC Group Report 2018 27

SMBC 2017 4 CxO 4 CxO CxO SMBC & SMBC CxO CFO CSO CRO CCO Chief Financial Officer Chief Strategy Officer Chief Risk Officer Chief Compliance Officer 28 SMBC Group Report 2018

SMBC29 3,198 2017 2,995 11,329 214 6 319 74 96 12,038 16 17 3,982 4,785 SMBC CHRO CIO CDIO CAE Chief Human Resources Officer Chief Information Officer Chief Digital Innovation Officer Chief Audit Executive SMBC Group Report 2018

No.1 SMBCNo.1 4,30051,800 No.1 2017 34213,115 2142,995 ROE 7.5% 103 *1 *2 *3 2017 * 1 13,115 342 10,275 161 78.3% 0.8% 2,995 214 ROE* 2 7.5% * 3 13.8 SMBC 2.0 1.5 1.7 2017 2018 2021 7 23 100 1.0 16 52 100 0.5 0 15/3 16/3 17/3 18/3 SMBC 8 41 100 31 116 300 30 SMBC Group Report 2018

SMBC 31 6 2018 SMBC 2017 2IC 2018 3 2017SMBC SMBC 2018 SDGs SMBC 15 14 13 12 11 0 17/3 18/3 20/3 SMBC * 4 * 5 5 4 0 IC 17/3 1.1 5% 60 17/3 2.8 % 25 0 16 17 *4 SMBC 1 *5 20 15 ESG SMBC SDGsP59 SMBC Group Report 2018

M&A 1 SMBC 2017 & 677,729 6 4,785 ROE 11.4% M&A 1 2017 * 1 7,729 67 3,478 16 45.0% 0.6% 4,785 6 ROE* 2 11.4% * 3 20.1 *1 *2 *3 M&A 8,695 341 9,036 2 103 1 248 145 16 17 16 17 32 SMBC Group Report 2018

SMBC IPO IPO SMBC SMBC ROE SMBC SDGs 50 0 25 16 17 M&A * PMI Post Merger Integration M&A SMBC IPO M&A IPO M&A SMBC SMBC SMBC SMBC SMBC SMBC SMFL SMBC SDGsP59 SMBC SMBC PMI* 33 SMBC Group Report 2018

SMBC SMBC40130 200110 SMBC SMBC 2017 3886,320 3193,982 ROE 10.6% 2,000 2017 * 1 6,320 388 2,807 232 44.4% 1.0% 3,982 319 ROE* 2 10.6% * 3 21.0 *1 *2 *3 60% 20% PF TF 20% LBO PF TF 10 250 200 150 100 50 0 15/3 16/3 17/3 18/3 34 SMBC Group Report 2018

SMBC 1,200 900 CMS 600 SMBC 300 M&A 0 14 15 16 17 FX 2,000 200 10 1,500 150 1,000 100 500 50 BTPN 0 0 14 15 16 17 & SMBC & PF LBO TF SDGs SMBC * * SMBC SDGsP59 SMBC Group Report 2018 35

ALM SMBC SMBC & 2017 643,562 743,198 ROE 33.5% & 2017 * 1 3,562 64 539 33 15.1% 0.7% 3,198 74 ROE* 2 33.5% * 3 5.9 *1 *2 *3 & SMBC () % 2016 3,500 35 2.1 650 160 30 3,000 1.8 25 2,500 1.5 20 0 16 17 19 0 0 14 15 16 17 36 SMBC Group Report 2018

SMBC 37 & SMBC SDGs & SMBC SDGsP59 700 600 500 400 300 200 100 0 14 17 SMBC Group Report 2018

2020 SMBC SMBC50 SMBC GMO SMBC No.1 No.1 38 SMBC Group Report 2018

SMBC 39 EC 2018 5 SMBC POS GMO SMBC GMO * SMBC IC QR * GMO 2.5 SMBC SMBC SMBC Group Report 2018

103 430 2020 3 2017 103 PERSONAL RESERVATION SMBC The PERSONAL 2018 3 40 SMBC Group Report 2018

SMBC 41 SMBC 1 2 3 3 ATM SHARE DIGITAL SMBC SMBC SMBC SMBC Group Report 2018

1 2 SMBC 2018 hoops link tokyo 2018 2016 2 Incubation & Innovation Initiative 32018 100 2018 3 31 5 AI IoT IT FOLIO Co-LABO MAKER URL https://mirai.ventures/event/event-1045/ 42 SMBC Group Report 2018

SMBC 43 2018 1. 2. 3. hoops link tokyo 4. 5. 3 4 5 hoops link tokyo SMBC 2017 9 hoops link tokyo hoops hoops link tokyo NPO IT hoops link tokyo SMBC VOICE hoops link tokyo? URL http://hoops-link-tokyo.com/ SMBC Group Report 2018

SMBC 2002 2005 2006 2010 2014 2015 SMFG 5 3 8 2016 SMBC 2017 7 33 CxO 44 SMBC Group Report 2018

SMBC 45 SMFG SMBC 2017 6 SMBC Group Report 2018

SMBC 2 31 2018 6 2817 10 7 2016 2017 14 10 144 82 46 SMBC Group Report 2018

SMBC 47 1 5 2 4 1 5 2 4 2 3 M. 1 3 2 3 1 1 2 1 * * SMBC Group Report 2018

SMFG 2017 2 2017 SMBC Academy PC 1 2 3 3 1,000 3 1,000 2% 4 3 5 1 1 2 SMFG6 http://www.smfg.co.jp/aboutus/pdf/cg_guideline.pdf 48 SMBC Group Report 2018

SMBC 49 SMFG 2017 SMFG 42018 45 6 1 ) 177 2018 3 31 4 SMBC Group Report 2018

SMBC Group Next Stage 2 1. 2. 0 150% 70% SMFG/SMBC 30% 40 % 25 % 0 150% SMFG ROE RORA CET1 TSR 50 SMBC Group Report 2018

SMBC 51 CxO 2017 4 CxO 4 CxO CEO 9 CxO CxO CAE SMBC Group Report 2018

Q 1967 2004 2010 20112014 2015 2017 52 SMBC Group Report 2018

SMBC 53 Q SMBC 2017 SMBC SMBC Q SMBC SMBC SMBC Q SMBC CFO SMBC Group Report 2018

2018 6 28 1976 2003 2006 2009 2010 2011 2017 CEO 1976 2003 2006 2007 2009 2011 2017 CEO 1982 2009 2012 2014 2016 2017 CRO 1981 2010 2011 2013 2014 2017 CFO CSO 1982 2009 2012 2013 2014 2015 2017 2018 54 SMBC Group Report 2018

SMBC 55 CIO CDIO 1982 2010 2011IT 2013 2015 2017 CCO CHRO 1984 2012 2014 2016 1981 2008 2011 2014 2017 2015 2016 2017 1984 2006 2013 2015 2017 SMBC 1976 2003 2006 2008 2009 2011 SMBC 2013 SMBC 2016 SMBC Group Report 2018

2018 6 28 1967 1987 1992 1996 1998 2000 2004 2010 2011 2014 2015 2017 1976 2003 2007 & 2008 & 2015 1970 1974 1991 2010 2013 2014 2017 1973 2005 2007 2009 2011 2014 2015 56 SMBC Group Report 2018

SMBC 57 1977 2004 2007 2009 2010 2011 2017 2018 1984 1999 2015 2017 1987 Dow Corning Corporation 2008 2009 CEO 2011 Dow Corning Corporation - / CEO 2015 M. 7 215 P35 SMBC Group Report 2018

SMBC SDGs CSR SMBCCSR CSR 1 23 4 CSR 3 SDGsCSR SMBC CSR CSR CSR NGO SMBC CSR http://www.smfg.co.jp/responsibility/ 58 SMBC Group Report 2018

SMBC SDGs Sustainable Development Goals 2015 9 17 SDGs Environment Social Governance SDGs SMBC59 SMBC Group Report 2018

Environment ESG SAFE SDGs SMBC 2015 10 20 5 2017 10 11 5 SMBC ISO140011998 7 * 1 2017 2030 2009 19.0% *1 SMBC & SMBC ISO14001 60 SMBC Group Report 2018

SMBC 61 21 TCFD* 2 2017 12 One Planet Summit *2 Task Force on Climate-related Financial Disclosures 2015 4 FSB SMBC 2017 3,000 2015 2017 1. 2. 3. SMBC Group Report 2018

Social 10 21 JUNIOR SAFE 2015 3 Djarum Djarum Foundation 2017 5 2,400 13 2017 SMBC 2018 31 6,000 2015 7 2018 5 20 15 10 5 4,500 7 0 14 15 16 17 62 SMBC Group Report 2018

1 32 2,100 NGO NGO NPO SMBC SIB SIB 2011 5SMBC 2016 2017100 600 SMBC 3 6 5 4 2 7 SMBC63 SMBC Group Report 2018

SMBC CS CS CS CS CS CS CS CS CS ISO10002 SMBC ISO 10002/ JIS Q 10002 64 SMBC Group Report 2018

SMBC 65 SMBC *2017 3 2017 6SMBC SMBC PDCA SMBC SMBC 5 Five Values Customer First 1. 2. 3. 4. 5. SMBC SMBC * SMBC SMBC 1. 2. 3. 4. P22 5. SMBC Group Report 2018

2 3 4 5 6 7 8 9 NISA 10 11 12 13 14 15 1 2017 SMBC SMBC 11 20% 42% SMBC 17% 14% +2,500 +40,000 +2,000 +1,500 +32,000 +24,000 120 123 126 130 +1,000 +500 +16,000 +8,000 41% 29% 47% 42% 42% 42% 20% 42% 0 500 0 8,000 14 15 16 17 1,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 16,000 4 5 6 7 8 9 10 11 12 1 2 3 SMBC 14 15 16 17 SMBC SMBC PRESTIA 574 23% 12% 593 37% 13% 613 30% 12% 681 17% 14% 14 15 16 17 66 SMBC Group Report 2018

SMBC IIA * CAE IIA G-SIFIs * The Institute of Internal Auditors, Inc. IIA 1941 CIA SMBC CAE SMBC Group Report 2018 67

SMBC SMBC * * SMBC 68 SMBC Group Report 2018

SMBC69 SMBC GDP SMBC 3 SMBC P7SMBC Group Report 2018

VaR* 1 * 2 *1 VaR *2 CRO CRO SMBC CRO ALM IT 70 SMBC Group Report 2018

SMBC 71 3 3 3 3 1 2 1 2 * 2 1 3 12 12 * 2008 2013 3 2017 12 2022 2027 25% 2017 2 2018 11 Tier1 2019 310% 1 SMBC 1. 2. 3. 4. 5. SMBC Group Report 2018

SMBC SMBC CCO SMBC SMBC CCO 72 SMBC Group Report 2018

SMBC73 AML CFT SMBC FATF* 1 OFAC* 2 SMBC SMBC 1. 2. 3. SMBC SMBC *1 FATF Financial Action Task Force *2 OFAC Office of Foreign Assets Control SMBC SMBC Group Report 2018

SMBC 10 Five Values SMBC2017 SMFG Five Values 2018 OJT 74 SMBC Group Report 2018

SMBC 75 SMBC40 SMBC 2014 2017 1,000 SMBC FG SMBC 10,000 7,500 5,000 2,500 Global Co-working Program 0 10 5 17 SMBC Group Report 2018

SMBC SMBC SMFG SMFG & 3 2017 2019 4,000 RPA IT SMBC SMBC 4 & SMBC & CHRO SMBC9 SMBC SMBC SMBC SMBC & SMBC 1 Smart Work 4.5 76 SMBC Group Report 2018

SMBC 77 SMBC 3 21% 2018 3 25% 2020 3 SMBC SMBC SMBC SMBC 70 SMBC 4 SMBC 2 SMBC Group Report 2018

SMBC SMBC NGO NPO 78 SMBC Group Report 2018

SMBC79 SMBC 16 CFO SMBC SMBC IR Day 2017 * 1 827 * 2 18 467 6 3 *1 193 *2 SMBC IR Day SMBC Pitch Contest SMBC SMBC Pitch Contest SMBC Group Report 2018

2013 2014 2015 2016 2017 28,982 29,804 29,040 29,207 29,811 14,842 15,052 14,229 13,586 13,902 9,871 9,996 10,075 10,171 10,705 4,270 4,757 4,735 5,450 5,203 15,699 16,593 17,248 18,124 18,162 54.2% 55.7% 59.4% 62.1% 60.9% 102 (106) (362) 246 390 13,385 13,105 11,429 11,329 12,038 (491) 78 1,028 1,644 942 (1,239) (801) (32) 611 (267) 892 667 690 550 1,189 (445) (482) (1,239) (176) (645) 14,323 13,212 9,853 10,059 11,641 (96) (118) (51) (266) (553) 4,588 4,414 2,250 1,710 2,705 1,285 1,144 1,084 1,018 1,040 8,354 7,536 6,467 7,065 7,344 1,615,344 1,834,426 1,865,858 1,977,916 1,990,491 682,277 730,682 750,661 802,373 729,459 271,528 296,337 252,644 246,318 257,127 1,525,294 1,727,463 1,761,382 1,865,573 1,874,362 943,319 1,010,479 1,106,688 1,178,302 1,164,775 137,135 138,259 142,504 118,809 112,203 90,050 106,963 104,477 112,343 116,129 64,012 70,184 74,543 81,191 86,370 34,801 40,984 45,345 50,368 55,526 8,780 20,039 14,595 16,125 17,534 17,240 16,717 15,310 14,993 12,196 15.51% 16.58% 17.02% 16.93% 19.36% Tier1 12.19% 12.89% 13.68% 14.07% 16.69% Tier 10.63% 11.30% 11.81% 12.17% 14.50% 1 120 140 150 150 170 20.3% 26.2% 32.7% 29.9% 32.7% ROE 13.8% 11.2% 8.9% 9.1% 8.8% 14,828 19,207 16,759 18,909 21,454 102.88 120.15 112.62 112.19 106.25 80 SMBC Group Report 2018

SMBC81 1.5 1.34 1.31 603 2 9,811 1.14 1.20 1.13 1.0 0.84 0.75 0.65 0.5 0.71 0.73 SMBC 0 38 1 13 14 15 16 17 8,162 2017 5,770 SMBC* 619 327 SMBC 246 187 36 24 SMBC 58 * SMBC 144 390 710 1 2,038 702 942 639 1,189 SMBC 468 6451 1,641 1,583 2019 2017 287 553 2016 996 2,705 278 7,344 SMBC Group Report 2018

1 6,891 73 8,962 100 75.6 73.9 68.3 69.3 63.4 21.1 15.2 18.9 19.2 20.7 50 48.2 49.3 50.1 54.5 53.2 0 14/3 15/3 16/3 17/3 18/3 4 6,525 110 2,432 120 105.6 110.2 98.8 91.3 84.1 44.1 47.6 60 34.5 36.0 39.8 40.2 41.8 42.3 43.6 45.3 0 14/3 15/3 16/3 17/3 18/3 20170.98% 0.06% 1 0.02% 0.99 0.98 0.98 0.97 0.98 1.05 0.00 0.00 0.00 0.00 0.00 0.01 0.99 0.98 0.98 0.97 0.98 1.04 1 809 25 7,127 2,195 2 4,082 % 2017 2016 1Q 2Q 3Q 4Q 2017 2017 38,893 1,316 21,737 2,518 118,342 16,528 444 160 97,167 390 1,901 163 254,402 18,234 24,082 2,195 2,554 6,723 0.78% 0.22% % 18,000 6.0 13,733 12,000 11,748 4.0 9,927 9,277 8,814 7,690 6,226 6,723 5,677 6,000 1.74 4,363 2.0 1.39 1.15 1.00 0.78 1.21 0.97 0.78 0 0.65 0.51 0 14/3 15/3 16/3 17/3 18/3 82 SMBC Group Report 2018

SMBC83 Tier1 6,0893,305 7 1,433 Tier1 14.50% 19.36% 2019 3 Tier114.5% 2017 2016 Tier1 92,174 86,085 6,089 Tier1 13,929 13,377 552 Tier1 106,102 99,462 6,640 Tier2 16,939 20,275 3,336 123,041 119,737 3,305 635,403 706,835 71,433 Tier1 14.50% 12.17% 2.33% Tier1 16.69% 14.07% 2.62% 19.36% 16.93% 2.43% 2019 3 Tier1 92,174 86,787 5,387 Tier1 14.5% 12.2% 2.3% Tier1 11.8% 10.0% 1.8% 2017 1 20 10 170 2018 5 6700 1 200 170 150 100 50 0 150 150 140 120 13 14 15 16 17 20.3% 26.2% 32.7% 29.9% 32.7% 42.2% 1,537 700 2018 5 156 19 SMBC Group Report 2018

SMBC2020 2020 2020 4,000 ATM 2020 SMBC 2020 2020 84 SMBC Group Report 2018

SMBC http://www.smfg.co.jp/ http://www.smfg.co.jp/english/ http://www.smfg.co.jp/investor/ http://www.smfg.co.jp/english/investor/ CSR) http://www.smfg.co.jp/responsibility/ http://www.smfg.co.jp/english/responsibility/ SMBC Group Report 2018 85