[Translation]

Strategic shareholdings Policy and Standards of execution of voting rights as to strategic shareholdings

The strategic shareholdings policy and standards of execution of voting rights as to strategic shareholdings to be disclosed in SMFG corporate Governance Guideline Article 12 are summarized below.

1. Strategic shareholdings Policy

-     SMFG will engage in strategic shareholdings in the case that it is authorized to be necessary for SMFG’s mid to long term growth.

-     SMFG will ensure the economic rationale of strategic shareholdings, with attention to the soundness, based on an appropriate consideration of risks, the pursuit of profits appropriate thereto, and other such means.

-     SMFG will appropriately execute rights, including voting rights, as to strategic shareholdings.

-     SMFG will comply with relevant laws and regulations with respect to the operation of strategic shareholdings.

2. Standards of execution of voting rights as to strategic shareholdings

-     In order to appropriately execute rights as a shareholder, SMFG will, in principle, execute voting rights on all proposals as to strategic shareholdings.

-     From the perspective of increasing the corporate value over the mid to long term of the corporations in which SMFG has strategic shareholdings, SMFG will appropriately judge whether to vote for or against each individual proposal, taking into account the issuer’s management situation.

-     If there is any concern about a conflict of interests occurring, SMFG will implement appropriate measures in accordance with the Management Policy Concerning Conflicts of Interest.