#1Fixed Income Investor Presentation June 2022 Unless otherwise indicated, the financial figures for SMFG and SM BC included in this presentation are prepared in accordance with generally accepted accounting principles in Japan, or Japanese GAAP SMBC SUMITOMO MITSUI FINANCIAL GROUP Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved.#2This document contains "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995) regarding the intent, belief or current expectations of us and our managements with respect to our future financial condition and results of operations. In many cases but not all, these statements contain words such as "anticipate," "believe," "estimate,” “expect,” “intend,” “may,” “plan,” "probability," "risk,” “project,” “should,” “seek," "target," "will" and similar expressions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward-looking statements contained or deemed to be contained herein. The risks and uncertainties which may affect future performance include: the COVID-19 pandemic and collateral events; deterioration of Japanese and global economic conditions and financial markets; declines in the value of our securities portfolio; incurrence of significant credit-related costs; our ability to successfully implement our business strategy through our subsidiaries, affiliates and alliance partners; and exposure to new risks as we expand the scope of our business. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the date of this document. We undertake no obligation to update or revise any forward-looking statements. Please refer to our most recent disclosure documents such as our annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as our earnings press releases, for a more detailed description of the risks and uncertainties that may affect our financial condition and our operating results, and investors' decisions. Exchange rates (TTM) SMFG Definitions Sumitomo Mitsui Financial Group, Inc. Sumitomo Mitsui Banking Corporation SMBC Trust Bank SMBC SMBC Trust SMFL Sumitomo Mitsui Finance and Leasing SMBC Nikko SMBC Nikko Securities SMCC SMBCCF SMDAM SMBCAC Major local subsidiaries Consolidated Non-consolidated Expenses (non-consolidated) Net business profit Retail Business Unit (RT) Sumitomo Mitsui Card Company SMBC Consumer Finance Sumitomo Mitsui DS Asset Management SMBC Aviation Capital SMBC Bank International, SMBC Bank EU, SMBC (China) SMFG consolidated SMBC non-consolidated Expenses excluding non-recurring losses Profit before provision for general reserve for possible loan losses Domestic retail business Wholesale Business Unit (WS) Domestic wholesale business The end of Mar. 21 The end of Mar. 22 Global Business Unit (GB) International business USD JPY 110.71 JPY 122.41 EUR JPY 129.75 JPY 136.81 Global Markets Business Unit (GM) Market / Treasury related businesses Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 1#3Agenda Results •Key credit messages Financial results •Financial impact from Russia ⚫Balance sheet and loan balance • Loans •Asset quality Funding & Capital ⚫Foreign currency assets and funding • Foreign currency issuance and redemptions •TLAC ⚫Capital strategy ⚫Credit ratings of selected G-SIBS Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 2#4Key credit messages (Consolidated, unless otherwise indicated, FY3/22) Strong and diversified earnings capability Sound loan portfolio USD 5.8 bn SMFG's profit attributable to owners of parent*1 1.08% SMFG NPL ratio Breakdown of consolidated net business profit by business unit Global Markets Retail Wholesale Global 0.77% SMBC NPL ratio (non-consolidated) Robust liquidity (average Jan. - Mar. 22) 56.2% Loan to deposit ratio 141.7% LCR Sound capital position High credit ratings 14.45% CET1 ratio (Fully-loaded basis) A1/A1 SMBC/SMFG Moody's rating 16.56% Total capital ratio A/A- SMBC/SMFG S&P rating *1 Converted into USD at period-end exchange rate (As of Apr. 30, 2022) Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 3#5FY3/2022 financial results VS. FY3/22 YOY (JPY bn) Target 1 Consolidated gross profit 2,945.5 +139.3 G&A expenses 1,821.1 +74.0 2 Overhead ratio 61.8% (0.5)% Equity in gains (losses) 3 28.5 +3.5 of affiliates Consolidated 4 1,152.9 +68.9 +32.9 net business profit 5 Total credit cost 274.4 (86.1) +74.4 6 Gains (losses) on stocks 209.1 +116.5 7 Other income (expenses) (46.9) +58.1 8 Ordinary profit 1,040.6 +329.6 +60.6 9 Extraordinary gains (losses) (111.0) (72.3) 10 Income taxes 214.5 +58.2 Profit attributable to 11 706.6 +193.8 +36.6 owners of parent 12 ROE 7.3% +1.9% Consolidated gross profit: increased YoY due to strong performance of RT, WS and GB Business Units, despite lower gains on sales of bonds in GM Business Unit. Impact of SMBC Nikko case: approx. JPY (10) bn. G&A expenses: increased YoY due mainly to business recovery from COVID-19, as well as higher variable marketing costs of SMCC, which successfully increased its number of new customers. ● Equity in gains of affiliates: increased YoY due mainly to business recovery in affiliates in Asia. Impairment of aircraft at SMBCAC: JPY 47 bn Total credit cost: JPY 75 bn of reserve for exposure to Russia including forward-looking provisions. Gains on stocks: increased YoY due to higher gains on sales of strategic shareholdings (JPY 162 bn, YoY JPY 97 bn) Other income: increased YoY due to the absence of loss from forward dealings recorded in FY3/21. Allowance on interest repayment: JPY 32 bn, YoY JPY (7) bn Extraordinary losses: recorded impairment of branches and software at SMBC and SMBC Trust, as well as freight cars at SMBC Rail Services. Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 4#6Consolidated net business profit Strong profits in WS and GB offset impact from Russia and the profit decline in GM. COVID-19 im pact remains in consumer finance, but the decrease in card loan balance is bottoming out. Breakdown of YoY (JPY bn) GM (72.3) Impact from Russia (47) COVID-19 impact *2 (JPY bn) Credit card (JPY bn) 30 SMB CAC 200 commissions THE 150 100 Others*1 RT WS.GB (excl. impact from Russia) +105.6 FX +38 1,084.0 FY3/21 *1 Incl. recovery from COVID-19 *2 After considering ownership ratio *3 Excluding the impairment of aircraft leased to Russian airlines Excl. Russia 10 (10) (30) 19 20 21 22E 19 20 21 22E (FY) (FY) (JPY bn) (Ref.) Card loan balance 1,152.9 SMBCCF (JPY tn) 400 1.8 300 200 100 0 19 20 FY3/22 20 21 22E (FY) 1.7 1.6 0 19 20 1Q 2Q 3Q 4Q 21 (FY) Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 5#7Financial impact from Russia FY 3/22: Total negative im pact was approx. JPY 100 bn, incl. forward-looking reserves and impairments. FY 3/23: Potentially volatile depending on the situation in Russia. FY 3/22 Net operating profit JPY (47) bn Impairment of aircraft (leased to Russian airlines) 52% of NBV of aircraft (after net guarantee deposits, etc.) JPY (82) bn After considering tax and ownership ratio (66%) JPY (47) bn Credit cost JPY 75 bn FY 3/23 Absorb losses with forward-looking reserves and impairment implemented in FY3/22 • Upside and downside volatility remains Upside ✓ Reversal from forward-looking provisions and no further downgrades from exposure in Russia Early receipt of the insurance in SMBCAC Approx. 30% of exposure to Russian borrowers o/w forward-looking provisions Bottom-line profit *1 After considering tax and ownership ratio Downside ✓ Additional impairment for aircraft JPY 40 bn (max. USD 460 mn*1) ✓ Additional credit cost JPY (100) bn ✓ Expropriation of Russian local subsidiary Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 6#8SMBC Group's update on Russia Exposure to Russia (incl. exposure of the Russian subsidiary) "1 Decreased by USD 200 mn from Jan.22 Deposits in the Russian central bank increased due to repayment of Ruble loans Mar. 14 (USD bn) 012 3 4 5 6 | Aircraft leasing NBV of aircraft in Russia: USD 0.8 bn, approx. 6% of all aircraft (after impairment on Mar. 22) Notice issued to all Russian airline customers terminating the leasing, and requiring the grounding, of all aircraft (Collected 1 out of 35 aircraft) All aircraft are insured - timing and amount of recovery remain to be confirmed • Performance has been recovering excl. Russian impact (USD mn) Jan.22 3.1 bn 400 Mar.22 2.9 bn Undrawn commitments Russian*2 Non-Russian Financial institutions Central bank 200 SMB CAC net profit excl. revenue and costs relating to Russian airlines :IILL 17 18 19 20 21 22E (FY) *1 Managerial accounting basis. Loans, commitment lines, guarantee investments, etc. of consolidated subsidiaries and major equity-method affiliates calculated based on ultimate risk countries. *2 Including project finance and ship finance. Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 7#9Balance sheet and loan balance Balance sheet (as of Mar. 22) Total assets : JPY 257.7 tn (Consolidated) Cash and due from banks JPY 74.8 tn Deposits, negotiable certificates of deposit (NCD) JPY 161.7 tn Loans JPY 90.8 tn Securities JPY 38.5 tn JGBs JPY 15.8 tn Other liabilities JPY 83.9 tn Other assets JPY 53.5 tn Total net assets JPY 12.2 tn Total stockholders' equity JPY 9.9 tn Loan to deposit ratio Risk-weighted assets 56.2% JPY 72.4 tn ROE (Denominator: Total stockholders' equity) 7.3% Loan balance (JPY tn) (Non-consolidated) ■Domestic loans ■ Overseas loans 87.7 81.9 80.2 29.7 25.0 25.6 54.6 56.9 58.0 Mar. 19 Mar. 21 Mar. 18 Mar. 20 Mar. 22 Of which loans to the Japanese government, etc. and SMFG 2.6 tn 2.6 tn 2.4 tn Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 80#10Domestic loans *1 Balance (JPY tn) Others 60 60 50 50 40 40 30 30 20 20 10 ■Individuals ■Mid-sized corporations and SMEs Large corporations (Non-consolidated) Spread*2 (Non-consolidated) Mid-sized corporations and SMEs 0.8% Large corporations 0.6% Mar. 17 Sep. 17 Mar. 18 Sep. 18 Mar. 19 Sep. 19 Mar. 20 0 0.4% Mar. 18 Mar. 19 Mar. 20 Mar. 21 Mar. 22 *1 Managerial accounting basis *2 Monthly average loan spread of existing loans, excludes loans to the Japanese government Sep. 20 Mar. 21 Sep. 21 Mar. 22 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 9#11Overseas loans *1 Balance (USD bn) 300 ■ EMEA Americas ■ Asia 250 200 150 100 50 50 Spread*2 1.4% 1.2% 1.0% 0 0.8% Mar. 18 Mar. 19 Mar. 20 Mar. 21 Mar. 22 Mar. 17 Sep. 17 Mar. 18 Sep. 18 Mar. 19 *1 Includes trade bills. Managerial accounting basis, translated into USD at respective period-end exchange rates. Sum of SMBC and Major local subsidiaries *2 Managerial accounting basis. Monthly average loan spread of existing loans чи Sep. 19 Mar. 20 Sep. 20 Mar. 21 Sep. 21 Mar. 22 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 10#12Asset quality - solid loan portfolio NPLs and NPL ratio*1 (JPY tn) Total credit cost and total credit cost ratio*2 Consolidated (left axis) 2.0 1.6 Consolidated (left axis) (JPY bn) Non-consolidated (left axis) -Consolidated (right axis) 8% 600 -Non-consolidated (right axis) (bp) Non-consolidated (left axis) Consolidated (right axis) 60 500 Non-consolidated (right axis) 50 50 6% 400 360.5 40 40 36bp 300 1.2 1.2 274.4 50 30 25bp 242.7 26bp 1.0 4% 200 170.6 161.1 20 20 0.8 18bp 15bp 0.8 100 10 0.7 0.6 5bp 49.6 0.4 2% 0 0 0.4 0.98% 1.08% 0.68% (100) (10) 0.77% 0.65% 0.0 0.46% Mar. 17 Mar. 18 Mar. 19 Mar. 20 Mar. 21 Mar. 22 0% (200) (20) FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 Coverage ratio*3 Consolidated Non-consolidated 66.26% 66.98% 81.71% 79.64% *1 NPL ratio = NPLs based on the Financial Reconstruction Act (excluding normal assets) / Total claims *2 Total credit cost ratio = Total credit cost / Total claims *3 Ratio of the collateral, guarantees and specific and general reserves to total NPLs Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 11#13Asset quality - securities portfolio *1 JGBs Foreign bonds Stocks (Non-consolidated) (JPY tn) JGBs (JPY tn) Foreign bonds (JPY tn) Stocks -Net unrealized gains (losses) Net unrealized gains (losses) -Net unrealized gains (losses) 15.8 14.3 7.1 9.5 9.3 9.0 2.17 1.96 1.21 3.5 3.2 2.6 0.18 (0.04) (0.01) (0.40) (0.01) (0.05) Mar. 19 Mar. 20 Mar. 21 Mar. 22 Mar. 19 Mar. 20 Mar. 21 Mar. 22 Mar. 19 Mar. 20 Mar. 21 Mar. 22 *1 Securities classified as other securities. Includes negotiable certificates of deposit classified as "Cash and due from banks," and beneficiary claims on loan trust classified as "Monetary claims bought," in addition to "Securities" stated in the Non-consolidated balance sheets Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 12#14Agenda Results •Key credit messages Financial results •Financial impact from Russia ⚫Balance sheet and loan balance • Loans •Asset quality Funding & Capital ⚫Foreign currency assets and funding • Foreign currency issuance and redemptions •TLAC ⚫Capital strategy ⚫Credit ratings of selected G-SIBS Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 13#15Foreign currency assets and funding Non-JPY Balance Sheet Overview *1 (as of Mar. 22) (USD bn) 1 Non-JPY Balance Sheet Development (USD bn) (USD bn) Deposits 600 600 400 Med-Long term funding Loans, etc 550 550 300 500 500 200 450 450 Deposits (incl. deposits from 100 400 Interest earning assets central banks) 400 (Loans, trade bills 350 and securities, etc.) 350 Mar. 18 Mar. 19 Mar. 20 Mar. 21 Mar. 22 300 250 200 300 Medium-to long-term funding Currency Breakdown 250 (incl. Corporate bonds, Interest-earning Currency swaps, etc.) 200 assets 150 Others (incl. highly CDs & CP 150 liquid assets) *2 Others Deposits Medium-long term funding *3 AUD Others EUR Others 100 100 AUD GBP 50 50 GBP Foreign bonds, NCD Interbank (incl. Repo) 50 USD USD EUR EUR USD 0 Assets Liabilities *1 Managerial accounting basis. Sum of SMBC and major local subsidiaries *2 Deposits placed with central banks, etc. *3 Excludes JPY funding, certificate of deposits and transferable deposits. Among all bonds priced by Mar. 22, only includes issuance with original maturity of two years or more and its tap issue as of Mar. 22. Translated into USD at the exchange rates as of the end of Mar. 22. Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 14#16Redemption Issuance Foreign currency issuances and redemptions Non-JPY issuances and redemptions"1 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (USD bn) 20 16.6 15 14.4 0.5 10.5 10.0 10 13.0 8.7 0.9 11.1 0.9 5.3 ■SMBC covered bonds SMBC senior bonds ■SMFG senior bonds SMBC subordinated bonds ■SMFG subordinated bonds 5 7.9 7.8 4.1 3.6 0.2 2.9 1.1 1.2 (1.6) (0.5) (1.1) (1.0) (1.1) (0.6) (0.5) (1.3) (1.3) (5.8) (7.4) (6.9) (2.2) (7.6) (5) (6.6) (6.0) (4.9) (7.7) (4.2) (10.2) (2.5) (7.4) (6.9) (7.6) (0.9) (1.5) (7.6) (1.8) (7.2) (10) (9.2) (9.6) (9.4) (9.3) (10.8) *1 The sum of SMFG and SMBC, each on a non-consolidated basis. Excludes JPY funding, certificate of deposits and transferable deposits. All redemptions were, or are expected, at maturity other than for callable bonds, which were, or are expected to be, redeemed at their respective 1st call dates, while there is no assurance they will be redeemed at such time. Among all bonds priced by Mar. 22, only includes issuance with original maturity of two years or more and its tap issue as of Mar. 22. Translated into USD at the exchange rate as of the end of each period for FY3/18-FY3/22, and as of Mar. 22 for FY 3/23-FY 3/27 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 15#17TLAC ratio and requirements TLAC ratio Risk-weighted assets basis TLAC ratio (transitional basis) (JPY bn) Mar. 2022 30.5% 30.8% 30.2% 29.5% 29.3% 30% 29.2% 28.5% 25% 20% 19.5% Requirements HE External TLAC Risk-weighted assets (RWA) A 20,628.1 B 72,350.1 TLAC ratio (RWA basis) Capital buffers (including CCyB) (A/B) C 28.51% D (3.53%) 21.5% Ref: TLAC ratio of RWA (C-D) E 24.98% Leverage exposure (LE) F 216,080.4*1 TLAC ratio (LE basis) (A/F) G 9.54% 15% Mar.19 Sep.20 Mar.20 Sep.20 Mar.21 Sep.21 Mar.22 Requirements Leverage exposure basis 10% 8.2% 8.2% 7.6% 6.0% 5% Requirements 0% 10.3% 9.8% 10.0% 9.5% Minimum external TLAC (RWA basis) 6.75% +) capital buffers *2 Effective level of minimum After 2022 18% +3.5% 21.5% external TLAC (RWA basis) Minimum external TLAC (LE basis) 6.75% Mar.19 Sep.20 Mar.20 Sep.20 Mar.21 Sep.21 Mar.22 *1 LE excludes deposits with the Bank of Japan under the FSA's temporary relief on leverage ratio calculation from Jun. 20 until Mar. 24 *2 Excludes countercyclical buffer (CCyB) for RWA requirements. As for the G-SIB buffer, SMFG was allocated to bucket 1 according to the latest list published by the FSB Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 16#18TLAC Issuance Results and Strategy TLAC issuances and redemptions *1 (USD bn) Redemption Issuance 15 13.0 10 5.4 11.1 7.9 7.8 ■ USD ■ EUR - AUD Others Maintain issuance level of USD 8-10 bn 5 0 Mar. 18 Mar.19 Mar.20 (5) Mar.21 (2.5) Mar.22 Mar.23 Mar.24 (4.2) Mar.25 Mar.26 (6.6) (6.0) (4.9) (10) (7.7) Historicalissuance calendar *2 $ $ 10y €1.5bn 5y/10y 5y/10y $4.5bn 5y/10y 5y/10y €1.25bn $4.25bn A$ 5.5 AUD750mm $3.5bn $ Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar $ 5y/10y $4.0bn 5y $Formosa 30nc10y A$ 5y AUD1.0bn 5y/10y $ 7y Green 5y/10y €500mm $2.5bn $2.25bn€500mm: $470mm 5y/10y $ Formosa 30nc10y $2.75bn $265mm $ $ 5y/10y 7y 5y/10y $2 Obr 500mp $2.5bn A$ 5y Green €500mm 5y/10y $4.5bn 5y/10y 5y 10 $1.5bn AWD625mm€1.25bn 5y/10y $3.0bn 5y(Re-open) $850mm Formosa 7y 30mc10y €500mm$500mm 5y/7y/10y $5.0bn Apr May FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 $Formosa FY3/22 30nc10y $500mm *1 The sum of SMFG Senior Bonds issuances and redemptions. All redemptions were, or are expected, at maturity other than for callable bonds, which were, or are expected to be, redeemed at their respective 1st call dates, while there is no assurance they will be redeemed at such time. Among all bonds priced by Mar. 22, only includes issuance with original maturity of two years or more and its tap issue as of Mar. 22. Translated into USD at the exchange rate as of the end of each period for FY3/18-FY3/22, and as of Mar. 22 for FY3/23-FY 3/26 *2 Based on pricing date. $ 5y/10y $2.5bn $ Formosa 3y Green/5y/10y/20y 30nc10y $420mm $Formosa $2.5bn 5y/7yGreen/20y 30nc10y $2.0bn $315mm Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 17#19Capital Basel Ill fully-loaded basis Tier2 AT1 Net unrealized gains on other securities CET1 Post-Basel III (financial target) Net unrealized gains on other securities CET1 Net unrealized gains on other securities (JPY tn) RWA 1.1% 1.0% Net unrealized gains on other securities 16.4% 15.6% 16.0% 14.5% Mar.19 Mar.20 Mar.21 Mar.22 Mar. 19 Mar. 20 Mar. 21 Mar. 22 58.9 61.6 66.0 72.4 Mid-long term Target 10% Requirement 8% Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 18#20Subordinated bonds Investment highlights Recent issuances and maturity profile. Recent issuances (AT1/Tier 2) High credit quality Strong capital High CET1 ratio Strong liquidity: Low loan to Security type AT1 deposit ratio Strong credit : Low NPL ratio Tier 2 (USD) Issue date Jan. 27, 2022 Sep. 17, 2021 Amount JPY 80 bn USD 850 mn Tenor Coupon *1 PerpNC10 20y 0.840% 2.930% Maturity profile by debt class*2 • AT 1 (USD bn) High credit rating High credit rating of senior and subordinated bonds (Tier 2) due in part to the support framework 0.7 ■ JPY 1.2 1.2 0.7 0.7 0.8 0.7 FY3/23 24 25 26 27 28 88 29 29 50 30 31 Tier 2 (USD bn) Scarcity value Offers investment diversification opportunities to investors - USD ■ JPY 2.6 1.4 1.0 1.1 0.8 0.5 FY3/23 24 25 25 26 27 28 29 29 32 32 30 31 32 333 33 33 *1 Reset at 5y JGB+70bp every 5 years after the first call date *2 AT1 Capital and Tier 2 Capital include previously issued Basel 2-eligible bonds. The sum of SMFG and SMBC, each on a non-consolidated basis. All redemptions were, or are expected at maturity other than for callable bonds, which were, or are expected to be redeemed at their respective 1st call dates, while there is no assurance they will be redeemed at such time. Include all bonds priced by Mar. 22. Translated at the exchange rate as of Mar. 22 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 19#21TLAC eligible senior unsecured notes Basel III Tier 2 notes (As of Apr. 30, 2022) Credit ratings of selected G-SIBS OpCo senior unsecured notes / Excluded liabilities Notch Difference (between OpCo senior and TLAC senior notes) Moody's SMFG Mizuho MUFG BAC Citi JPM Barclays HSBC DB*1 BNP*1 CS UBS*2 Aa2 Aa3 A1 0 0 3 3 3 3 A2 A3 2 4 3 4 3 Baa1 Baa2 Baa3 Ba1 Ba2 S&P SMFG Mizuho MUFG BAC Citi JPM Barclays HSBC DB*1 BNP*1 CS UBS*2 AA- A+ A A- 2 2 2 3 3 2 2 3 BBB+ 3 BBB BBB- BB+ *1 For DB and BNP, OpCo senior notes and TLAC eligible senior notes mean preferred senior notes and non- preferred senior notes, respectively *2 Backed senior unsecured rating of UBS Group Funding (Switzerland) guaranteed by UBS Group AG for TLAC eligible senior notes Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 20 20#22Appendix#23SMFG / SMBC overview SMFG (Consolidated) Global banking group originated in Japan SMBC (Non-consolidated) Core operating entity within SMFG franchise (FY 3/22) Market Capitalization (TSE:8316, NYSE:SMFG) B/S Assets Loans Deposits*2 Loans/Deposits Gross Profit P/L Net Income CET1 ratio (As of May. 25, 2022) JPY 5.4 tn / USD 42.3 bn unlisted (wholly-owned by SMFG) JPY 228 tn/USD 1,862 bn JPY 258 tn / USD 2,105 bn JPY 91 tn USD 742 bn JPY 149 tn / USD 1,214 bn 56.2% JPY 2,946 bn / USD 24.1 bn Consolidated gross profit JPY 707 bn / USD 5.8 bn Profit attributable to owners of parent 14.45% JPY 88 tn USD 716 bn JPY 141 tn / USD 1,152 bn 56.9% JPY 1,579 bn / USD 12.9 bn Gross banking profit JPY 546 bn / USD 4.5 bn Net income NPL ratio 1.08% Ratings (Moody's / S&P) A1/A- Business Franchise (As of Apr 30, 2022) 0.77% A1/A Holds top-tier companies in banking, leasing, securities services, consumer finance, and other businesses • 153 overseas offices*3 *1 Converted into USD at March 2022 fiscal year-end exchange rate Market capitalization converted to USD at the May. 25, 2022 exchange rate *2 Excludes negotiable certificates of deposits *3 Excludes offices planned to be closed *1 (As of Apr 30, 2022) ● 454 domestic branches 27 million retail accounts (As of Mar. 31, 2022) (As of Mar. 31, 2022) Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 22#24Group structure *1 Sumitomo Mitsui Financial Group Consolidated total assets Consolidated subsidiary Equity-method affiliate Banking JPY 258 tn Credit Moody's S&P Fitch R&I JCR ratings A1/P-1 A-/- A/F1 A+/- AA-/- Sumitomo Mitsui Banking Corporation Moody's S&P Fitch A1 A A SMBC Trust Bank (92%) PT Bank BTPN Tbk Consumer Finance Sumitomo Mitsui Card SMBC Consumer Finance (74.9%) Fullerton India Securities SMBC Nikko Securities Leasing Others (50%) Sumitomo Mitsui Finance and Leasing (SMBC 32%, SMFL 68%) SMBC Aviation Capital (50.1%) Japan Research Institute *1 As of the end of Mar. 22 Unless otherwise stated, each consolidated subsidiary is a wholly owned subsidiary of Sumitomo Mitsui Financial Group Sumitomo Mitsui DS Asset Management Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 23 23#25Trend of major income components - Consolidated Consolidated gross profit ■Consolidated gross profit Consolidated net business profit" (JPY bn) 2,945.5 2,000 2,806.2 2,768.6 1,500 (JPY bn) 3,500 3,000 2,500 2,000 1,000 1,500 1,000 500 500 0 0 FY3/03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Net income/ ■Consolidated net business profit (new definition) Consolidated net business profit (old definition) 1,085.0 1,152.9 1,084.0 FY3/03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 ■ Profit attributable to owners of parent (JPY bn) 1,000 750 500 250 ■Consolidated net income ■ Total credit cost (JPY bn) 1,500 706.6 703.9 512.8 1,000 500 ■Total credit cost 170.6 360.5 274.4 170.6 LL FY3/ 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 (250) (500) (500) FY3/ 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 *1 We have changed the definition of "Consolidated net business profit" from the FY3/15. The figure for FY3/14 has been adjusted retrospectively Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 24 24#26Diversified revenue sources Breakdown of consolidated gross profit FY 3/03 Other group companies SMBC Domestic loan / deposit related revenue International business*1 Fee income, Trading income, etc. FY 3/22 Other group companies Leasing Securities Services • Consumer Finance • Others SMBC Domestic loan / deposit related revenue International business*1 Fee income, Trading income, etc. Breakdown of overseas loan balance (Mar. 22) By industry Material and energy ■Finance and insurance Various services ■Transportation Construction and real estate Retail, wholesale and commodities Automobile and machinery By domicile EMEA Western Europe Eastern Europe Northern Europe Middle East Asia/Pacific Asia Pacific Americas North America Electronics ■IT Others *1 Includes major overseas banking subsidiaries Africa Central and South America Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 25#27Performance of SMBC and group companies SMBC Other major group companies (left results of FY3/22/right: YoY) SMBCCF VS. FY3/22 YOY (JPY bn) Target SMCC SMBC Nikko 1 Gross banking profit 1,579.2 +97.5 (JPY bn) Gross profit 406.0 +20.4 387.1 (42.6) 254.9 (4.8) 2 o/w Net interest income 1,091.1 +154.7 Expenses 339.9 +22.6 318.2 +4.7 116.4 +5.8 o/w Gains (losses) on cancellation 3 41.5 +7.7 of investment trusts 4 Domestic 638.8 +55.3 Net business profit 65.9 (2.8) 68.9 Net income 19.8 (16.0) (47.3) 51.4 (40.7) 138.5 (10.6) *2 58.8 +4.7 5 Overseas 452.3 +99.4 (Equity method affiliate) 6 o/w Net fees and commissions 398.5 +67.8 50.1% 50% *3 7 Domestic 198.2 +22.0 SMBC Trust SMDAM SMFL 8 Overseas 200.3 +45.7 Gross profit 48.5 +8.3 39.2 +5.1 233.4 +56.7 o/w Net trading income+ 9 87.4 (125.1) Net other operating income Expenses 44.1 +0.2 30.2 (2.1) 103.2 +17.5 10 o/w Gains (lossses) on bonds (42.4) (122.3) 11 Expenses 857.2 +40.7 Net business profit 4.4 +8.1 9.1 +7.3 138.2 +43.0 12 Banking profit 721.9 +56.8 +46.9 Net income (15.9) (7.4) 5.4 +33.4 35.4 +1.7 13 Total credit cost 161.1 (81.6) +81.1 14 Gains (losses) on stocks 157.3 +93.7 15 Extraordinary gains (losses) 27.9 +77.8 16 Net income 546.3 +208.3 +86.3 *1 Including profit from overseas equity-method affiliates of SMBC Nikko (consolidated subsidiaries of SMFG) *2 Deduct internal transactions *3 Managerial accounting basis Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 26 26#28Balance sheet Consolidated Composition of loans and deposits *1,2 (JPY tn) Mar. 22 vs. Mar. 21 3% Total assets 257.7 +15.1 3% 18% 15% o/w Cash and due from banks 74.8 +2.2 *1 o/w BOJ's current account balance 58.6 (1.2) 15% o/w Loans 90.8 +5.7 Domestic loans Domestic 12% deposits o/w Domestic loans *1 58.0 +1.1 2% 65% 67% *2 o/w Large corporations 19.2 (0.2) Mid-sized corporations & SMES Individuals*2 *2 19.6 +0.5 11.9 (0.2) 3 *3 o/w Securities 38.5 +2.0 o/w Other securities o/w Stocks JGBs Foreign bonds 38.1 +1.7 3.4 (0.3) Spread-based ■Prime-rate-based Mortgage, etc. Others Non-JPY B/S *2,4 Ordinary Current ■ Time Foreign currency Others (Sundry, etc.) 15.8 +1.5 12.1 (0.1) (USD bn) Total liabilities 245.5 +14.8 Deposits (incl. deposits from o/w Deposits 148.6 +6.6 *1 o/w Domestic deposits" 118.7 +6.0 Interest-earning assets 361 central banks) 235 Individuals 56.1 +2.7 Corporates o/w NCD 62.6 +3.3 Mid-long term funding (incl. corporate bonds, currency swaps, etc.) 129 13.1 +0.5 Others 125 Total net assets Loan to deposit ratio 12.2 +0.3 Foreign bonds, NCD 69 CD/CP 74 Interbank (incl. Repo) 117 56.2% Assets / Liabilities 555 *1 Non-consolidated *2 Managerial accounting basis *3 After adding back the portion of housing loans securitized in FY3/22 of JPY 124.0 bn *4 Sum of SMBC and major local subsidiaries Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 27 27#29Capital/RWA Mar. 22 Requirement Mar. 21 Mar. 22 (JPY bn) Capital ratio Total capital 12,289.3 11,983.8 Total capital ratio 16.56% 11.5% Tier1 capital 11,199.3 11,186.2 CET1 ratio (Basel III fully-loaded basis) 14.45% 8% o/w CET1 capital 10,562.8 10,458.4 excl. net unrealized gains on other securities 12.1% Tier2 capital 1,090.0 797.5 CET1 ratio (Post-Basel III reforms) 11.2% 8% External TLAC 19,373.3 20,628.1 excl. net unrealized gains 10.0% on other securities Risk-weighted assets 66,008.0 72,350.1 External TLAC ratio Leverage exposure 198,170.8 216,080.4 RWA basis 24.98% 18.0% Leverage exposure basis 9.54% 6.75% Leverage ratio 5.17% 3% LCR (Average 4Q FY3/22) 141.7% 100% *1 Excluding countercyclical buffer Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 28#30Financial highlights - IFRS *1 Income statement data Reconciliation with Japanese GAAP (JPY bn) FY 3/20 FY 3/21 (At and for FY3/21, JPY bn) Total equity Net profit Net interest income 1,316.3 1,383.1 IFRS 12,276.2 705.1 Net Fee and commission income 943.3 972.7 Scope of consolidation 144.1 (5.7) Net Trading income 134.1 237.7 Derivative financial instruments 235.0 (94.8) Other operating income 310.2 572.1 Total operating income 2,703.9 3,165.6 Net operating income 2,443.9 2,883.1 Profit before tax 282.8 956.5 Net profit 231.0 705.1 Statement of financial position data (JPY bn) FY 3/20 FY 3/21 Total assets Loans Deposits 212,158.5 235,025.0 94,671.8 97,714.9 138,431.4 155,493.7 Differences arising from different accounting for: Investment securities (342.9) (113.3) Loans and advances 337.9 (60.9) Investments in associates and 95.5 joint ventures (3.4) Property, plant and equipment 22.2 2.5 Lease accounting 0.8 (1.0) Defined benefit plans 46.0 0.0 Deferred tax assets (36.7) 15.5 Foreign currency translation Classification of equity and 20.2 (658.4) (12.5) liability Others (95.8) (15.4) Tax effect of the above (124.7) 79.6 Total equity 10,934.9 12,276.2 Japanese GAAP 11,899.1 515.9 *1 Consolidated Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 29 29#31Yen bond portfolio Non-consolidated (Total balance of Other securities with maturities and bonds classified as held-to-maturity - total of JGBs, local gov. bonds and corporate bonds) (JPY tn) 40 35 30 450 50 ■1 year or less ■ 1 to 5 years ■5 to 10 years More than 10 years 31.5 28.4 28.9 25 20 15 25 19.4 17.8 19.6 17.6 12.6 16.3 16.4 12.3 11.9 10.6 10.0 9.0 10 5 0 Mar.08 Mar.09 Mar.10 Mar.11 Mar.12 Mar.13 Mar.14 Mar.15 Mar. 16 Mar.17 Mar. 18 Mar.19 Mar.20 Mar.21 Mar.22 of which JGBs (JPY tn) 13.8 14.0 9.8 8.0 9.3 6.3 7.1 14.3 15.8 Average duration (years)" 2.4 1.8 1.1 1.4 1.9 1.8 1.1 1.8 2.8 2.9 2.3 3.2 2.9 2.5 2.8 Unrealized gains (losses) (JPY bn)2 (129.5) (1.2) 116.1 71.9 104.4 95.3 60.0 45.9 103.8 57.5 44.2 60.5 21.4 7.9 (49.4) *1 Excluding bonds classified as held-to-maturity, bonds for which hedge-accounting is applied, and private placement bonds. Duration of 15-year floating rate JGBS is regarded as zero *2 15-year floating-rate JGBs have been evaluated at their reasonably estimated price from Mar. 09 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 30 30#32Strategic shareholdings (JPY tn) Reduction Book value of domestic listed stocks Amount of reduction JPY 122 bn 6.09 FY3/21 JPY 55 bn FY3/22 JPY 67 bn Consent of sales JPY 58 bn Current reduction plan Total JPY 181 bn 1.33 1.27 1.20 Apr.01 Mar.20 Mar.21 Mar.22 Mar.25 Ratio of shares 149% to CET 1*1 16% 15% 14% *1 Basel III fully-loaded basis, excl. net unrealized gains on other securities Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 31#33Overseas loan balance classified by borrower type *1 Total Non-Japanese corporations and others (product type lending) Japanese corporations By region (Mar. 22) ■Non-Japanese corporations and others (product type lending) ■Japanese corporations (USD bn) 300 250 200 150 100 50 50 Mar. 18 Mar. 19 Mar. 20 Mar. 21 Mar. 22 *1 Managerial accounting basis. Sum of SMBC and major local subsidiaries *2 Excludes BTPN in Indonesia 100% 75% 50% 25% 0% Total Asia Americas EMEA Major marketing channels in Asia (Mar. 22)*2 ■Non-Japanese corporations and others (product type lending) Japanese corporations 100% 75% 50% 25% 0% Sydney Hong Kong Indonesia Singapore China Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. Bangkok Seoul 32 32#34Australia (JPY bn) 2,500 2,000 1,500 1,000 1,000 500 500 0 0 Mar.18 Mar.19 Mar.20 Mar.21 Mar.22 Loan balance in Asian countries/areas *1 Hong Kong (JPY bn) 2,500 2,000 Singapore (JPY bn) 2,500 2,000 1,500 1,000 Cu Cu Cu ulu 1,500 500 Mar.18 Mar.19 Mar.20 Mar.21 Mar.22 Mar.18 Mar.19 Mar.20 Mar. 21 Mar.22 China (JPY bn) Indonesia Thailand (JPY bn) (JPY bn) 2,000 2,000 1,000 1,500 1,500 750 1,000 1,000 500 500 500 250 0 0 0 Mar.18 Mar.19 Mar.20 Mar. 21 Mar.22 Mar.18 Mar.19 Mar.20 Mar. 21 Mar.22 Mar.18 Mar.19 Mar.20 Mar.21 Mar.22 India (JPY bn) 1,000 750 500 250 Taiwan Korea (JPY bn) (JPY bn) 1,000 1,000 750 750 500 500 250 250 0 Mar.18 Mar.19 Mar.20 Mar. 21 Mar.22 Mar.18 Mar.19 Mar.20 Mar. 21 Mar.22 Mar.18 Mar.19 Mar.20 Mar 21 Mar.22 *1 Managerial accounting basis. Sum of SMBC and major local subsidiaries Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 33 33#35Japanese and non-Japanese corporate exposures** (JPY tn) 40 30 30 Japanese 20 10 0 Internal Rating (Certainty of debt repayment) Non-Japanese 0 10 20 30 40 (JPY tn) 1-3 (Very high - Satisfactory) 4-6 (Likely - Currently no problem) 7 (excl. 7R) (Borrowers requiring caution) 7R, 8-10 (Substandard borrowers - Bankrupt borrowers) Others ■Mar.20 Mar.21 ■Mar.22 JPY 56.7 tn Total (as of Mar.22) *1 Managerial accounting basis. Exposure includes loans, acceptances and guarantees, foreign exchanges, private placement, suspense payments, undrawn commitments, and derivatives, etc. Excluding the exposure to SMFG consolidated subsidiaries, retail customers in Japan, Japanese government, etc., and specialized lending JPY 40.2 tn Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 34 =4#36SMCC Financial results Key figures (JPY tn) 20 20 Sales handled YoY -O-YoY (industry) M FY3/19 FY3/20 FY3/21 FY3/22 (mn) 20% 60 10% 50 0% 40 -10% 0 # of card holders Mar.19 Mar.20 Mar. 21 Mar.22 FY3/21 FY3/22 YOY (JPY bn) Operating revenue 447.5 470.5 +23.1 30 o/w Commission fee 143.7 164.0 +20.3 Finance 101.5 98.2 (3.3) Sales on credit 32.3 29.5 (2.9) 10 Receipt agency 48.1 50.1 +2.0 0 Operating expense 413.0 439.5 +26.5 o/w Expenses for 22.7 25.6 +2.9 loan losses Expense for 14.4 10.0 interest repayments (4.4) Ordinary profit (loss) 35.3 34.1 (1.1) Net income 35.8 19.8 (16.0) Finance outstanding 667.5 677.9 Market share "2 Issuing *1 The Japan Consumer Credit Association "Credit card behavior investigation" Shopping credit amount *2 METI "Indices of Tertiary Industry Activity" Sales credit business handled (2021 : JPY 68 tn) Acquiring 12% 25% Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 35 55#37SMBC Nikko Financial results Client assets (JPY tn) FY3/21 FY3/22 YOY (JPY bn) 80 Net operating revenue 357.9 334.2 (23.7) 60 SG&A expenses 273.4 275.4 +2.0 60 Ordinary income 90.7 65.3 (25.4) 40 40 Net income 71.7 49.7 (22.0) 20 20 (JPY bn) 120 ■ Net operating revenue Equity brokerage commissions Subscription commissions on investment trust, fund wrap fee and agency commissions 0 Jun.20 Sep.20 Dec. 20 Mar. 21 Jun.21 Sep.21 Dec.21 Mar.22 Product sales Investment trusts Underwriting commissions Net trading income (JPY tn) ■Foreign bonds 4 Subscription of equities ■Fund wrap Domestic bonds Variable annuities/insurances 100 3 80 60 2 40 1 20 0 0 1Q 2Q 3Q 4Q FY3/21 1Q FY3/22 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/21 1Q FY3/22 2Q 3Q 4Q Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 36 66#38SMBCCF Financial results FY3/21 FY3/22 YOY (JPY bn) Consumerloans Promise (overseas) ■Mobit | Loan guarantee SMBC Others Promise Operating income 273.5 268.9 (4.6) +0.6% (0.9)% (JPY bn) o/w Interest revenues 178.8 176.7 (2.1) Loan guarantee 61.1 57.1 (4.0) revenues Operating expenses 200.8 200.5 (0.3) (JPY bn) 1,192.6 1,137.1 1,144.2 1,211.5 107.4 104.1 113.6 1,102.2 1,091.6 289.3 286.2 296.0 610.1 552.3 551.6 o/w Expenses for 53.3 48.7 (4.6) loan losses Expense for 9.9 10.8 +0.9 795.9 746.8 734.5 loan guarantees 601.4 549.9 540.0 Expenses for 24.0 22.0 (2.0) interest repayments Ordinary profit 73.5 68.6 (4.9) Mar.18 Mar. 19 Mar.20 Mar.21 Mar.22 Mar. 18 Mar. 19 Mar.20 Mar. 21 Mar.22 No. of interest refund claims Net income 54.1 85.2 +31.1 NPLs 85.2 96.1 (Thousand) 60 (NPL ratio) 7.49% 8.40% 45 Allowance on interest 100.8 95.9 30 repayments (provision) 3.4 yrs 3.5 yrs 15 0 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 37#39SMBCAC Financial results Global passenger demand forecast *3 Domestic demand is expected to recover in 2023 (USD mn) FY 3/21 FY 3/22 YOY (%) Total revenue 1,214 1,479 +265 200 Domestic o/w Lease revenue 1,119 1,366 +247 Credit Asset 334 907 impairment charges" (573) 100 Net income 17 (283) (300) Aircraft asset" *2 15,340 16,210 +870 Net asset 3,305 3,322 +17 0 ROE 0.5% (8.5)% (9.0)% 15 17 19 21 International 23 23 25 25 Aircraft business of SMBC Group Our Strengths (USD mn) SMBCAC related SMFL SMBC Wide body (A350 B787) 800 Acquired SMBCAC Aircraft portfolio Narrow body 600 Over 80% 400 200 Fitch rating 0 Liquidity - A No.1 in Industry *4 11 12 13 14 15 16 17 18 19 20 21 (200) *1 Gross before netting guarantee deposits etc. *2 Include Aircraft pre-delivery payments *3 IATA / Tourism Economics. Represents changes from CY 19 *4 SMBCAC related includes revenue after the acquisition in June *5 Neo/MAX/A350/B787 Total 27 27 29 (CY) Avg. age 4.2 years Fuel efficient*5 Approx. 60% Undrawn commitment lines USD 3.1 bn Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 38 88#40BTPN Financial results*1 Customer Jan-Mar. Retail Wholesale 2019 2020 2021 (JPY bn) 2022 sinaya Gross banking profit 99.6 91.1 106.2 28.2 btpn Operating expenses 56.3 50.9 56.6 14.8 High-net-worth Large corporations Mid-sized corporations SMBC ·--- Middle class Jenius Net profits 20.3 12.9 21.6 6.4 SM Es bisnis btpn' ROE 9.9% 6.1% 8.6% 9.2% pure btpn Mass market Micro business Loans 1,119.9 Deposits Total assets 686.8 1,434.9 1,355.4 1,008.0 1,098.4 745.8 886.0 1,554.5 1,210.1 btpr owners 907.2 1,635.4 mitra usaha skyst btprí Syariah btpn' SMBC's Global Support Net interest margin" (%) 6.6 6.9 5.1 5.1 4.7 NPL ratio *2 (%) 3.7 3.1 2.7 2.2 1.5 Digital Banking Loan breakdown*3 BTPN Syariah Retail Banking 8% 21% Business Banking 10% Corporate Banking 61% BNI Mandiri BCA BTPN BRI BTPN BCA Mandiri BRI BNI *1 TTM as of Dec. 19: IDR 1 = JPY 0.0079, Dec. 20: IDR 1 = JPY 0.0074, Dec. 21: IDR 1 = JPY 0.0081, Mar. 22: IDR 1 = JPY 0.0085 *2 Based on each company's disclosure (Dec. 21 results) *3 As of Dec. 21 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 39 39#41Credit ratings of Aussie and Canadian banks OpCo senior unsecured notes / Excluded liabilities Notch Difference (between TLAC senior and Tier 2 notes) Moody's TLAC eligible senior unsecured notes Basel III Tier 2 notes (As of Apr. 30, 2022) SMFG BMO BNS RBC TD ANZ CBA NAB Westpac Aa1 Aa2 Aa3 A1 11 A2 2 A3 2 2 Baa1 Baa2 Baa3 S&P SMFG BMO BNS RBC TD ANZ CBA NAB Westpac AA- A+ A A- ++ ++ BBB+ BBB BBB- BB+ Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 40 40#42Safeguards before incurring losses at PoNV - capital requirement-based corrective measures We will be required to meet various capital requirements before reaching a point of non-viability ("PoNV") SMFG CET1 ratio Capital requirement*2 8% 14.45% *1 (excl. Net G-SIB buffer [Backet 1] (1.0%) 7% unrealized gains on other securities: 12.1%) 5.125%- CET 1 ratio (Basel III fully-loaded 4.5% basis) 0%- *1 As of the end of Mar. 22 *2 Excluding countercyclical buffer Actions Capital conservation buffer (2.5%) Capital remediation plan to be required Capital distribution to be limited (including dividend on and buy-back / redemption of common equity and AT1 instruments) CET1 can be generated by write-down of AT 1 instruments Pre-determined recovery plan to be implemented at certain trigger level Minimum CET1 requirement (4.5%) Prompt corrective action to be implemented PONV - suspension of payment or having negative net worth Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 41#43Safeguards before incurring losses at PONV - safeguards to prevent systemic disruption PONV Prior to Framework Liquidity support and capital injection Specified Item 1 Measures set forth in the Deposit Insurance Act ("DIA") Subject entities Financial institutions Including banks and bank holding companies ("BHCS") Capital injection Banks and BHCs Act on Special Measures for Strengthening Financial Functions Capital injection PONV suspension of payment or having negative net worth Posterior to Item 1 Measures set forth in the DIA Financial assistance for orderly resolution Specified Item 2 Measures set forth in the DIA Financial assistance exceeding payout cost or Temporary nationalization Banks and BHCs Financial institutions Including banks and BHCS Banks Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 42#44Orderly resolution regime in Japan An orderly resolution is expected to be commenced subsequent to PoNV after SMFG absorbs losses incurred by its material subsidiaries. 1 All Basel Ill eligible AT1 and Tier 2 instruments will be fully written down upon PoNV pursuant to their terms. 2 Senior notes may incur losses depending on recovery value through court-administered insolvency proceedings. Business as usual Holding Company ("HoldCo") Systemically important assets and liabilities, incl. common stock of OpCo Other assets and liabilities, incl. Hold Co senior debt instruments, etc Illustrative orderly resolution process Reaching PONV suspension Transfer of payment or having negative net worth Bridge financial institution ("Good Bank") OpCo common stock, etc. Common stock Орсо Deposits, etc Common stock/ intercompany loan Operating Bank ("OpCo") Deposits, etc 1 AT1 and Tier2 Fully written down before insolvency proceedings Hold Co ("Bad Bank") Hold Co senior debt, etc. Source: Japanese FSA 2 TLAC Senior Notes May incur losses depending on Insolvency proceedings recovery value Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 43#45Application of Basel III (capital ratio)*1 Mar.24 Mar.25 Mar.26 Mar.27 Mar.28 Mar.29 Revised standardized approach and internal ratings- based framework for credit Revised credit valuation adjustment (CVA) framework Implement RWA Revised operational risk framework Output floor 50% 55% 60% 65% 70% 72.5% Capital requirements Total capital ratio Implementation of output floor A: RWA based on internal ratings-based approach (IRB) B: RWA based on standardized approach (SA) Tier1 ratio A > B x capital floor RWA = A CET1 ratio Capital conservation buffer*2 Common Equity Tier1 Additional (CET1) Tier 2 B x capital floor Tier 1 A: IRB B: SA 2.5% 4.5% 1.5% 2.0% 10.5% A≤ Bx capital floor RWA =Bx capital floor G-SIFIs surcharge (CET1 capital) Bucket 1 Bucket 2 Bucket 3 1.0% 1.5% 2.0% Bucket 4 2.5% Bucket 5 3.5% A: IRB *1 Japanese FSA announced that it will postpone the implementation of unimplemented Basel III standards until Mar. 24 *2 Countercyclical buffer (CCyB) omitted B x capital floor B: SA Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 44#46Major regulatory updates related to COVID-19 1-year deferral of Basel III implementation Postponement of the implementation date for the Basel III standards was declared by GHOS to respond to the immediate financial stability priorities on the global banking system. Revision Standard Original implementation date Revised implementation date Leverage ratio framework and G-SIB buffer Standardized approach for credit risk IRB approach for credit risk Operational risk framework CVA framework Market risk framework Output floor Pillar 3 disclosure framework January 2022 January 2023 January 2022 January 2023 transitional arrangements to transitional arrangements to January 2027 January 2022 January 2028 January 2023 Temporary relief on leverage ratio calculation in Japan The temporarily relieved leverage ratio requirements have been applied by Japanese FSA, in accordance with the Bank of Japan's extended monetary policy easing. • • Exclusion of the deposits at BOJ from the denominator of the leverage ratio calculation until Mar. 2024 Maintaining the current minimum requirement of 3% Source: Bank for International Settlements Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 45#47Core policy of the new Medium-Term Management Plan Mid-long term Vision A trusted global solution provider committed to the growth of our customers and advancement of society Future directions 1 Data oriented 2 Building platforms 3 Solution provider Core Policy Transformation Transform existing businesses Business strategy Growth Seek new growth opportunities Management base Quality Elevate quality in all aspects Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 46 40#48Cost control Cost reduction initiatives are making good progress and expected to exceed the initial target" by JPY 30-40 bn due to acceleration of digital shift. Target Status of key initiatives Reform of (50) bn domestic business (25) bn (25) bn Retail branch re organization Integration of group operations Acceleration of digital shift Results *2 Reduced workload of 3.3K people - Digitalize payment businesses - Reallocate workforce of domestic wholesale (48) bn and wealth management businesses - Improve efficiency of headquarters Completed shift to smart branches ahead of schedule (18) bn Operate in small headcount by digitalizing operations and eliminating cash Review overseas expenses Integrate functions of SMCC and SMBCFS (20) bn Share systems and review assets Total JPY 30-40 bn Reallocate resources JPY 100 bn + + Additional 20 bn in best case to digital and overseas businesses (86) bn *1 Cumulative cost reduction target for the three-year period covered by the current medium-term management plan *2 Cumulative result of FY20 and FY21 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 47#49Base expenses and headcount Base expenses *1 (JPY bn) Key cost control initiatives Resource allocation (e.g. overseas business, strategic investment, system expenses) COVID-19 Impact 1 ! 1,530 1,510 COVID-19 Rebound 1,520 Headcount 106K Previous plan (3.3)K Domestic (4.9)K (7)K Domestic Current plan (8)K 103K Fullerton +15 K 101K 98 K *2 Mar.17 Mar.20 Mar.21 Mar.22 Mar.23E IT investment (JPY bn) 440 CEO budget JPY 130 bn Additional + JPY 30 bn Digitalize payment services Enhance system operations FY3/18 FY3/21 FY3/20 FY3/21 FY3/22 -FY3/20 -FY3/23 *1 G&A expenses excluding cost related to investment for future grow th, revenue-linked variable cost and others. Exchanged at USD1=JPY 105 (projected rate in medium-term management plan) Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 48 *2 Added the impact of group reorganization retrospectively#50Seven key strategies Transformation 1 Pursue sustainable growth of wealth management business Transform existing businesses 2 Improve productivity and strengthen solutions in the domestic wholesale business 3 Enhance overseas CIB business to im prove asset/capital efficiency 4 Hold the number one position in payment business 5 Enhance asset-light business on a global basis 6 Expand franchise in Asia and strengthen digital banking Growth Seek new growth 7 Develop digital solutions for corporate clients opportunities Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 49 49#51Roadmap Addressing Climate Change We have established a long-term action plan "Roadmap Addressing Climate Change" in order to realize a carbon neutral society by 2050. Setting short- to medium-term measures as "Action Plans", we are addressing climate change issues as the entire group 2022- 2030 2040 Scope 3 Disclose mid- to long- Scope 1,2 Netzero GHG emissions Zero balance for loans extended to coal-fired power generations term goals Medium-Term Management Plan Roadmap Action Plan STEP1 Action Plan STEP2 2050 Scope 3 Netzero GHG emissions 1 and set reduction targets 2 2030 Main measures Measure portfolio GHG emissions 1 Specific efforts Achieve net zero emissions (Scope 3) by 2050 Reduce GHG emissions of the entire Achieve net zero emissions (Scope 1,2) by SMBC Group Calculate portfolio GHG emissions Set mid- to long-term reduction targets Grasp changes in the industrial structure 3 Capture opportunities Enhance businesses addressing decarbonization Engagement 3 Enhance businesses addressing climate change and decarbonization Execute JPY 30 tn of sustainable finance by 2030 towards transition Comprehend risks Risk mitigation Enhance governance/business 4 management framework Appoint Group CSUO and establish the Sustainability Committee 5 5 Enhance risk management framework Expand scope of scenario analysis and revise policies for businesses and sectors Enhance risk management framework Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 50 50#52New disclosures and targets We expanded the phase-out plan for coal-fired power generations, set mid-term (2030) financed emissions reduction target for the power sector, and disclosed financed emissions for the energy sector. Mid-term financed emissions reduction target for the energy sector (O&G and coal) will be disclosed in the TCFD report scheduled to be published in August 2020 2030 Balance of c.300 loans for Project Finance Disclosed coal-fired power c.150 (50)% generation Corporate c.80 New (JPY bn) Finance (tied to facilities) Mar. 22 Financed emissions PowerSector*1 (gCO2e/kWh) 332 New 138-195 2040 In addition to project finance for which the phase-out plan is set already, added zero balance target to corporate finance tied to facilities by 2040 Support the transitions and innovation of customers Achieve well below 2°C Reduction target target and aim at 1.5°C target as a global financial institution Disclosed current financed emissions Scheduled to announce mid- term reduction target in August Set targets in three sectors *2 ahead of NZBA 2 schedule (Power, O&G, coal) New Financed emissions 87.6 Energy Sector (oil and gas, coal)*1 (MtCO2e) To be announced in August *1 Calculated financed emissions in this document are the results as of May 2022. Figures are subject to revision due to change of calculation methodology, and etc. *2 Net-Zero Banking Alliance Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 51#53Efforts this year This year, we implemented a large-scale organizational reform, increasing the number of employees and revising the executive compensation system Organizational reforms Revised April 2022 Established the "Sustainability Division" and the "Environmental and Social Risk Management Department" to strengthen organizational capabilities for sustainability adding more human resources Group CSUO Quantitative ESG evaluation for compensation Introduced quantitative ESG evaluation in addition to the existing qualitative evaluation to further strengthen management commitment to sustainability Base salary Fixed compensation Group CRO Annual performance-linked (0-150%) Bonus •Cash •Stock Compen- sation Plan II Standard level Annual performance New ESG evaluation ●Sustainable finance Sustainability New Division Consolidating knowledge/expertise of the Group Risk Mgmt Unit Consolidating related functions Sustainable Solution Department Corporate Sustainability Department New Environmental and Social Risk Management Dept. Individual's performance, etc. Quantitative Achievement of in-house targtets ●Reduction of Scope 1/2 GHG emissions Qualitative Evaluation of major ESG rating agencies Mid-term performance-linked (0-150%) Stock Compen- sation Plan I Standard level ±10% Mid-term performance, etc. Financial performance Share performance Qualitative evaluation All domestic Corporate Business Offices Sustainability New Ambassador Stock Compen- sation Plan III Including "ESG initiatives" Promotion reward plan Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 52 52#54Other major updates (since April 2022) We are accelerating groupwide efforts to achieve carbon neutrality by enhancing resources, reducing in- house GHG emissions, advancing scenario analyses and expanding solutions Item s Organizational Structure Executive Compensation Rules and Policies Scope 1 and 2 Reductions Enhanced Scenario Analyses Sustainability Investment Fund • . Contents Established the "Sustainability Division" and the "Environmental and Social Risk Management Dept." to strengthen organizational capabilities for sustainability with more human resources Introduced quantitative ESG evaluation in addition to the existing qualitative evaluation to further strengthen management's commitment to sustainability Formulating the "SMBC Group Environmental and Social Framework" Establishing the "Social Contribution Policy" and the "Sustainable Procurement Policy" Four HQ buildings fully implementing renewable energy to achieve net zero Scope 1 and 2 emissions by 2030 Launched the "SMBC Kawasaki Mega Solar Place" project - the first 1MW class solar power generation facility owned by a Japanese major bank Conducted scenario analyses of transition risks in iron & steel and automotive sectors, in addition to energy and power sector (first Japanese bank to include the iron & steel sector) Set a JPY 20 billion "Sustainability Investment Fund" to create new solutions, etc. SMDAM joined NZAMI Participated in "Carbonplace", a payment platform for carbon credit transactions, as the first sustainability investment project SMDAM joined NZAMI*, a global initiative of asset managers, to achieve net zero GHG emissions from the investment portfolio by 2050 *1 Net Zero Asset Managers initiative Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 53#55Sophistication of sustainability management system Regarding climate change issues as one of our significant management issues, we are continuously improving our sustainability management system under the leadership of the Group CEO. Advancement of management system October 2018 April 2020 Established "Corporate Sustainability Committee” Chairman - Group CEO Members - Head of each group companies Revised management philosophy and established "Statement on Sustainability" SMBC Group GREEN x GLOBE 2030 "Create the future of the earth and humanity with our customers" Group CSUO/Sustainability Committee In addition to the Group CSUO position, the Sustainability Committee was established last year ahead of competitors, to enhance sustainability management from both execution and supervision perspectives The Sustainability Committee was held twice in FY2021 Board of Directors Nomination Committee Audit Committee 2021/07 Compensation Committee Risk Committee April 2021 July 2021 April 2022 Sustainability Committee Appointed Group C SuO Established "Sustainability Committee" Established "Sustainability Division" and "Environmental and Social Risk Management Department" • Introduced quantitative ESG evaluation to executive compensation ⚫ Formulated "SMBC Group Environmental and Social Framework" Chairperson External Director Eriko Sakurai External Director Masaharu Kohno Chairman of the Board of Directors Director Jun Ohta Takeshi Kunibe 2021/04 Report Professor, University of Tokyo Yukari Takamura JRI Senior Counselor Eiichiro Adachi Group CSUO (Chief Sustainability Officer) Responding to ESG rating agencies and disclosure of non- financial information Climate change response including business Corporate initiatives (Social contributions etc.) Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 54#56Structure of the Board Internal Directors (executive) 5 directors # of the Board of Directors 15 directors Knowledge and experience we expect in particular Ratio :47% Managem ent Legal/risk Finance Global managem ent Account ing IT/DX Sustainabi lity Outside Directors 7 directors T. Kunibe AL J. Ohta AL M. Takashima ་་ T. Nakashima T. Kudo Internal Directors (non-executive) 3 directors Non-executive directors: 67% 2 women 1 foreign national A. Inoue T. Isshiki Y. Kawasaki M. Matsumoto 、 A. M. Mitchell A་ S. Yamazaki M. Kohno Y. Tsutsui K. Shinbo E. Sakurai A、 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 55#57Rationale for Issuing Green Bonds SMBC Group's motivation toward green bond issuance Strong Track Record in Green Finance SMBC Group's significant growth in Renewable Energy Finance SMBC Group Green Bonds Development of Green Bond Market Green bonds have been utilized for sustainability commitment Attract New Investors Attract new investors and thereby diversify investor base What will be achieved by green bond issuance Promotion of SMBC Group's Sustainability Commitment Transformation to more resilient business model Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 56 60#58Key Aspects of SMBC Group's Green Bond Framework Based on Green Bond Principles Billy 1. Use of Proceeds • Project Categories 1.Renewable Energy 2. Energy Efficiency 3. Green Buildings 2. Evaluation and Selection AFFORDABLE AND 13 CLIMATE ACTION CLEAN ENERGY 4.Clean Transportation SUSTAINABLE CITIES AND COMMUNITIES AFFORDABLE AND INDUSTRY, INNOVATION CLEAN ENERGY AND INFRASTRUCTURE INDUSTRY, INNOVATION AND INFRASTRUCTURE 11 SUSTAINABLE CITIES AND COMMUNITIES SMBC Group's 5.Pollution Prevention & Control GOOD HEALTH SUSTAINABLE CITIES AND WELL-BEING AND COMMUNITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION Sector policy SMBC Group's Green Bond framework Environmental Policy Credit Policy Sector Policy Green Bond Framework oll Look Back Period: 24 months More than 90% of the funds are allocated to Renewable Energy . 4. Reporting Annually updated ✓ Allocation Proceeds ✓ Project Category, Amount, Country, Agreement Date Impact Reporting CO2 Emissions Reduction (inc. o/w SMBC Financed base) ✓ External Review Report from Sustainalytics . All of information is Updated within one year from issue date ✓ Available on our Website SUSTAINALYTICS SUSTAINALYTICS Framework Overview and Second-Party Opreon Sumitomo Mitsui Financial Group, Inc./ Sumitomo Mitsui Banking Corporation's Green Bond Framework Say where and 2017 書 Eligible Green Assets 3. Management of Proceeds • Pending allocation of proceeds : short-term financial instruments. Green Bond SMBC Investor SM FG (Issuer) Net Proceeds Inter-Group Loan Green Assets Loan Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 57 40#59Overview of Green Bond Issuance and Allocated Green Assets Balance of Green Bond Issuance and Allocated Green Assets *1 (as of Mar. 21) Overview of Allocated Green Assets (EUR mn) 2,000 Total: 1,910.9mn Waste to Energy ■ Japan ■Australia Total: 1,675.1mn Biomass 3% 32% 4% 1,600 By 4% Geography 2021/1/12 15% Solar Energy SMFG USD500mn 26% France ■Canada ■ Peru ■India ■Mexico ■ Argentina UK ■Chile ■Belgium ■ USA ■Germany 1,200 800 400 2019/5/30 SMFG EUR500mn 2018/12/20 SMBC AUD83.2mio, USD227.8mn 2017/10/11 SMFG EUR500mn Green Bond Issuance Outstanding *1 Translated into EUR at the exchange rates as of Mar. 21 Wind Energy Allocated Green Assets Outstanding 3% 10% Wind Energy By 23% Technology Solar Energy Biomass 64% Waste to Energy Facility Capacity (Number of Projects) 8642086420 18 16 14 12 10 16 16 11 <100MW 100-250MW 250-500MW 500-750MW 750-1000MW In addition to the above, SMFG issued USD500mn of Green Bond in Jan. 22. We are preparing for annual reporting and all the updates will be available on our Website. Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 58#60Green Bond Impact Reporting Impact Reporting (as of Mar. 21) DOID HEALTH ONE LENG Category Sub Category Country Number of Projects Capacity (MW) Renewable Energy Estimated CO2 emissions reduction (t-CO2/Year) o/w SMBC Group financed Wind energy Argentina, Australia, Belgium, Canada, Chile, France, Germany, Japan, Peru, UK 27 8,429.15 MW 9,248,043.51 t-CO2 1,792,903.59 t-CO2 Australia, France, Solar energy India, Japan, Mexico, USA 16 1,753.64 MW 1,791,986.80 t-CO2 396,831.16 t-CO2 Biomass Japan, UK 4 424.90 MW 1,969,653.27 t-CO2 454,523.79 t-CO2 Pollution Prevention & Control Waste to Energy Australia 1 36.00 MW 147,478.56 t-CO2 32,985.11 t-CO2 *1 Translated into EUR at the exchange rates as of Mar. 21 Total 13,157,171.14 t-CO2 2,677,243.66 t-CO2 SMFG/SMBC Green Bond Outstanding (as of Mar. 21)*1 CO2 Avoidance per EUR1mn EUR 1,675.1mn 1,598.29 t-CO2 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 59#61Use of Proceeds Statement for each Issuance 1/4 2017/10/11 SMFG Green Bond EUR 500mn Net Proceeds from Note Issuance • Sumitomo Mitsui Financial Group EUR500,000,000 0.934% Senior Notes due 2024 Use of Proceeds as of Mar. 2021 EUR 500mn Loan Category Sub-Category Agreement Currency Country Date Loan balance (EUR mn)*1 CO2 Emissions Reduction (t-CO2) (o/w SMBC Group Financed) Renewable Energy Wind Energy 2018/12 GBP UK 88 532,108 45,701 Renewable Energy Wind Energy 2017/2 EUR Germany 9 403,135 40,851 Renewable Energy Wind Energy 2019/7 GBP UK 76 519,746 22,105 Renewable Energy Wind Energy 2018/6 EUR Germany 46 364,710 30,422 Renewable Energy Wind Energy 2017/5 EUR Belgium 23 128,542 16,977 Renewable Energy Renewable Energy Wind Energy 2017/12 EUR Belgium 8 93,472 24,216 Wind Energy 2017/7 EUR France 17 21,128 7,183 Renewable Energy Wind Energy 2017/11 EUR France 30 18,211 4,431 Renewable Energy Renewable Energy Wind Energy 2018/12 GBP UK 36 411,038 58,745 Solar Energy 2017/3 EUR France 21 2,689 592 Renewable Energy Solar Energy 2016/8 USD USA 14 243,814 48,045 Renewable Energy Renewable Energy Solar Energy 2016/12 USD USA 22 409,512 37,931 Solar Energy 2016/11 AUD Australia 15 301,742 60,346 Renewable Energy Solar Energy 2016/9 JPY Japan 77 27,862 21,495 Renewable Energy Solar Energy 2015/12 JPY Japan 24 14,374 8,033 Renewable Energy Solar Energy 2019/7 JPY Japan 21 25,727 8,351 Total 528 3,517,814 435,423 Net Proceeds from Note Issuance EUR 500mn CO2 avoidance per EUR1mn 870.85 t-CO2 *1 Translated into EUR at the exchange rates as of Mar. 21 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 60#62Use of Proceeds Statement for each Issuance 2/4 2018/12/20 SMBC Green Bond USD227.8m n/AUD 83.2m n Net Proceeds from Note Issuances • Sumitomo Mitsui Banking Corporation USD227,800,000 3.370% Senior Notes due 2023 • Sumitomo Mitsui Banking Corporation AUD83,200,000 2.900% Senior Notes due 2023 Use of Proceeds as of Mar. 2021 USD 227.8mn AUD 83.2mn Loan Category Sub-Category Agreement Currency Country Date Loan balance (EUR mn)*1 CO2 Emissions Reduction (t-CO2) (o/w SMBC Group Financed) Renewable Energy Wind Energy 2018/3 JPY Japan 39 263,994 37,298 Renewable Energy Wind Energy 2017/1 AUD Australia 27 344,290 68,367 Renewable Energy Wind Energy 2018/5 EUR Belgium 34 101,380 12,941 Renewable Energy Wind Energy 2018/6 USD Argentina 15 37,192 15,619 Renewable Energy Wind Energy 2018/6 USD Argentina 10 66,830 28,066 Renewable Energy Solar Energy 2018/3 JPY Japan 41 20,744 13,511 Renewable Energy Solar Energy 2018/6 JPY Japan 26 29,307 7,866 Renewable Energy Solar Energy 2017/3 JPY Japan 17 8,046 5,875 Renewable Energy Solar Energy 2017/4 JPY Japan 9 7,378 3,320 Renewable Energy Renewable Energy Solar Energy 2017/5 USD USA 21 76,767 15,353 Biomass 2018/3 JPY Japan 54 268,647 102,527 Total 293 1,224,576 310,743 *1 Translated into EUR at the exchange rates as of Mar. 21 Net Proceeds from Note Issuances CO2 avoidance per EUR1mn USD 227.8mn AUD 83.2mn (EUR 248.44mn equiv.)*1 1,250.78 t-CO2 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 61#63Use of Proceeds Statement for each Issuance 3/4 2019/05/30 SMFG Green Bond EUR 500mn Net Proceeds from Note Issuance • Sumitomo Mitsui Financial Group EUR500,000,000 0.465% Senior Notes due 2024 Use of Proceeds as of Mar. 2021 EUR 500mn Loan Category Sub-Category Agreement Currency Country Date Loan balance (EUR mn)*1 CO2 Emissions Reduction (t-CO2) (o/w SMBC Group Financed) Renewable Energy Wind Energy 2018/12 GBP UK 27 380,302 18,287 Renewable Energy Wind Energy 2018/11 GBP UK 99 777,941 388,970 Renewable Energy Wind Energy 2017/8 AUD Australia 51 752,386 85,531 Renewable Energy Wind Energy 2018/6 AUD Australia 32 378,684 94,671 Renewable Energy Wind Energy 2018/12 CAD Canada 64 205,687 44,257 Renewable Energy Renewable Energy Pollution Prevention & Control Renewable Energy Wind Energy 2017/8 USD Peru 57 184,058 29,776 Wind Energy 2018/8 JPY Japan 86 1,235,160 369,195 Waste to Energy 2018/10 AUD Australia 58 147,488 32,985 Solar Energy 2018/3 USD Mexico 19 141,809 31,837 Renewable Energy Solar Energy 2018/6 JPY Japan 25 16,601 5,953 Renewable Energy Renewable Energy Biomass 2018/6 JPY Japan 84 279,886 83,320 Biomass 2018/9 JPY Japan 30 1,140,000 Total 633 5,640,000 230,393 1,415,177 Net Proceeds from Note Issuance EUR 500mn CO2 avoidance per EUR1mn 2,830.35 t-CO2 *1 Translated into EUR at the exchange rates as of Mar. 21 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 62#64Use of Proceeds Statement for each Issuance 4/4 2021/01/12 SMFG Green Bond USD500mn Net Proceeds from Note Issuance • Sumitomo Mitsui Financial Group USD500,000,000 0.508% Senior Notes due 2024 Use of Proceeds as of Mar. 2021 USD 500mn Loan Category Sub-Category Agreement Currency Country Date Loan balance (EUR mn)*1 CO2 Emissions Reduction (t-CO2) (o/w SMBC Group Financed) Renewable Energy Wind Energy 2019/11 USD Chile 69 198,578 25,611 Renewable Energy Wind Energy 2019/3 GBP UK 90 192,500 43,313 Renewable Energy Wind Energy 2019/8 GBP UK 82 336,528 66,933 Renewable Energy Wind Energy 2019/8 AUD Australia 46 590,525 90,687 Renewable Energy Wind Energy 2020/7 AUD Australia 48 630,025 108,751 Renewable Energy Wind Energy 2020/2 JPY Japan 23 79,890 13,999 Renewable Energy Solar Energy 2019/4 EUR India 45 433,878 115,589 Renewable Energy Solar Energy 2020/2 JPY Japan 31 31,737 12,734 Renewable Energy Biomass 2020/3 JPY Japan 23 281,120 38,284 Total 457 2,774,781 515,901 *1 Translated into EUR at the exchange rates as of Mar. 21 Net Proceeds from Note Issuance CO2 avoidance per EUR1mn USD 500mn (EUR 426.6mn equiv.)*¹ 1,209.33 t-CO2 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 63#65SMBC covered bond: Investment highlights The SMBC Covered Bond Programme offers an opportunity to gain exposure to one of the highest quality asset classes in Japan with a top notch rating. Historically, Japanese banks have not been active in the secured market due to absence of dedicated covered bond legislation. Our contractual framework will satisfy key covered bond requirements for investors and enable SMBC to gain access to broader capital markets and to further diversify its investor base. Solid Credit of SMBC • Strong and diversified earnings capability • Sound loan portfolio Robust liquidity • Sound capital position • High credit ratings Robust Residential Loan Market of Japan Japan's strong and stable economy Solid growth High gross national savings • Low unemployment rate Low household debt to net disposable income • Stable housing market with low delinquency • Robust RMBS market SMBC Covered Bond • SMBC's robust residential loan underwriting and risk management framework Dual recourse to segregated cover pool and SMBC • Cover pool consisting of AAA-rated Japanese self- originated RMBS Daily collateral top-up 25% minimum OC Attractive Product Structure Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 64#66SMBC Covered Bond Programme Under the Trust Act of Japan, bondholders have dual recourse to SMBC's assets and the segregated cover pool assets. To protect bondholders, the Programme puts self-originated Japanese RMBS as collateral under the TRS. Segregation of assets is ensured in the case of SMBC's insolvency because enforceability of the TRS is protected under the Netting Act of Japan. Coverpool assets remain on the balance sheet of SMBC acting in its own capacity. BNY Mellon Corporate Trustee Services Limited Bond Trustee / Security Trustee at issue ongoing & at maturity Trust Deed SMBC Bondholders Covered Bonds (Moody's: Aaa) Covered Bond Proceeds (Moody's: A1 (Stable) / S&P: A (Positive)) Covered Bond Proceeds SMBC (acting in its proprietary capacity) TRS Counterparty Self-originated Japanese Aaa-rated RMBS*2 Interest & Principal of Covered Bond (Bond Coupon Frequency) RMBS Cash Flow (JPY/ Monthly payment) Total Return Swap ("TRS") / Credit Support Annex ("CSA") SMBC (acting as trustee of the Trust*1) Issuer Interest & Principal of Covered Bond (Bond Coupon Frequency) *1 SMBC, licensed by Japanese FSA as financial institutions which engage in trust business, acting as trustee on behalf of a specified money trust (tokutei kinsen shintaku) No. 0010-377600-0001 (the "Trust") *2 Cover pool assets may include senior tranches Aa-rated RMBS where higher haircut ratio of 20% is applied, JGB and cash Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 65 55#67Self originated residential loans SMBC Sumitomo Mitsui Trust Bank SMBC covered bond: Cover pool summary RMBS Summary Terms*1 Collateral Originator/Servicer Asset Trustee Domestic Region*1*2 Hyogo Kyoto Revolving Format Liquidity Static pool Other Regions Domestic trust beneficiary interest Greater Osaka Cash reserve Osaka Interest Payments Principal Payments Hedging Arrangements Master Trust Clean-up Call Back-up Servicer Credit Enhancement Not appointed at closing Overcollateralisation Senior/subordinate tranching Excess spread Monthly/Fixed coupon Monthly / Pass through None Standalone structure 10% Chiba Greater Tokyo Saitam a Kanagawa Maximum principal balance JPY 200million Loan Term Up to 35 years Loan Guarantee Senior Tranche Rating Guaranteed by SMBC Guarantee Co., Ltd. Moody's: Aaa (sf) *1 Pool data as of Feb. 22 *2 By loan balance Tokyo Osaka Fukuoka Tokyo + Greater Tokyo Tokyo Nagoya Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 66#680.0% 2.0% Sep-06 Sep-07 Sep-08 Sep-09 Japan Source: Moody's UK Sep-10 4.0% Sep-11 Sep-12 Historical trend of delinquency and prepayment rate Delinquency rate in the Japanese RMBS market has been low supported by the strong job market and stringent underwriting practices. Current Prepayment rate of Japanese RMBS market is low compared to other developed countries. RMBS 90+ Days Delinquency 6.0% 30% Prepayment Rate Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Germany France Italy Australia Sep-20 Sep-21 Murley 4.97% 1.08% 0.68% 0.44% 0.03% 0.01% 0% 10% 20% Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Note: Japan UK Germany France UK data between Sep 2006 and May 2007 is not available Source: Moody's Sep-17 Sep-18 Sep-19 Sep-20 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. Italy Sep-21 67 9.91% 7.14% 2.99% 2.71% 14.91%#690 350 Housing market developments Japanese house prices have been stable with limited impact of the global financial crisis compared to other developed countries, and are now in an upward trend. Negative impact of COVID-19 on housing starts is smaller than during the financial crisis and homeownership rate has been stable at approx. 60%. House Prices Housing Starts / Homeownership Rate 300 250 House Price Index (2002 = 100) 150 100 50 50 355.8 2,000 302.3 221.2 213.0 209.4 200 200.1 183.2 Sep-02 France Source: Bank for International Settlements Sep-03 Sep-04 Sep-05 Japan Sep-06 Sep-07 Sep-08 Italy USA Sep-09 Sep-10 Sep-11 Sep-12 UK Australia Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Canada Singapore Sep-21 Sep-20 Germany Units (in thousands) 1,500 1,000 118.9 95.4 500 Housing Starts (left axis) 70% Homeownership Rate (right axis) 61.7% 61.2% 61.1% 61.2% 0 FY03/02 FY03/03 FY03/04 FY03/05 FY03/06 FY03/07 FY03/09 FY03/08 FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 FY03/16 FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 Source: Ministry of Land, Infrastructure, Transport and Tourism, Statistics Bureau, Ministry of Internal Affairs and Communications Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 50% 68 55% 60% 65%#70Japanese economy Real GDP growth rate (annualized QoQ change)" (contribution, %) 30 321 20 10 Property price of residential land and condominiums *2 Residential land in all locations in Japan Residential land in Tokyo Condominium in Tokyo Household sector Net Exports Private non-resi.investment Public demand Inventories Real GDP 140 130 120 110 100 0 (10) 90 (20) (30) 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4123412341234 1 2 3 4 2013 2014 2015 2016 2017 2018 2019 2020 2021 280 80 70 Indicators to measure progress out of deflation*3 CPI (%) 4 3 2 1 0 (1) excl. fresh food excl. fresh food & energy 2008 2009 2010 (%) GDP deflator GDP gap Unit labor cost 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 00 8 4 st 0 (4) (2) (3) 1234 12 34 12 34 12 34 12 34 12 34 12 34 12 34 12 34 1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (8) (12) 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2341234 2013 2014 2015 2016 2017 2018 2019 2020 *1 Cabinet Office. Seasonally adjusted series. Household sector = Private consumption + Private residential investment, Inventories = Change in private and public inventory, Public demand = Government consumption + Public investment *2 Ministry of Land, Infrastructure, Transport and Tourism. Real Estate Economic Institute Co., Ltd. Condominium in Tokyo is the first half of the year *3 Statistics Bureau, Cabinet Office and Ministry of Internal Affairs and Communications 2021 Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 69 69#71BOJ's monetary policy Timeline Apr. 2013 Jan. 2016 Sep. 2016 Jul. 2018 Apr. 2019 Oct. 2019 Apr. 2020 Mar. 2021 Sep. 2021 Apr.2022 Introduction of the Quantitative and Qualitative Monetary Easing (QQE) Introduction of Negative Interest Rate Policy Introduction of QQE with yield curve control Introduction of forward guidance for policy rates Clarification of forward guidance for policy rates Update of forward guidance for policy rates Enhancement of monetary easing Further Effective and Sustainable Monetary Easing Introduction of Climate Response Financing Operations Clarification of consecutive fixed-rate purchase operations Three-tiersystem in current accounts at BOJ (0.1)% Policy-Rate Balance 0% Macro Add-on Balance Basic Balance +0.1% Recent announcements Mar. 2021 Yield curve control • Purchase a necessary amount of JGBS without setting an upper limit so that 10-year JGB yield will remain at around zero percent. • Yield fluctuations range of +/-0.25% from the target Guidelines for asset purchases • Maintain annual paces of increase for ETFs and J-REITS • Extend purchase of CP and corporate bonds till Sep. 2021 Sep.2021 Climate Response Financing Operations • To provide funds to financial institutions within the amount outstanding of their investment or loans that contribute to Japan's actions to address climate change, with a view to supporting private sector efforts on climate change. • Interest rate on its program at 0% with the duration of loan being 1 year (can be rolled over). Apr. 2022 Clarification of consecutive fixed-rate purchase operations • Clarified at the April meeting that the BOJ will offer to purchase 10-year JGBS at 0.25 percent every business day through fixed-rate purchase operations, unless it is highly likely that no bids will be submitted. Source: Bank of Japan Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. 70#72BOJ's initial monetary policy responses to COVID-19 *1 BOJ's initiative to support the Japanese economy • Measures to facilitate corporate financing •Temporary increase in purchase of CP and corporate bonds⇒ Ended in March 2022 •Introduction of special funds-supplying operation by facilitating banks to extend loans to companies affected by COVID-19 FX liquidity support to banks •Enhance the provision of liquidity via the standing USD liquidity swap line arrangements, in coordination with 6 major central banks ⚫Stabilizing financial markets •Further active purchases of ETFs & J-REIT as well as JGBS & T-Bills Initiatives CP/Corporate Bond Purchase Special funds-supplying operations ("SFSO")*1 USD Funds-Supplying Operations ETF/J-REIT purchase JGBS & T-Bills purchase Notes with most recent update The Bank has purchased CP and corporate bonds with an upper limit on the amount outstanding of about 20 trillion yen in total until the end of March 2022. From April 2022 onward, it purchases these assets at about the same pace as it did before the COVID-19 pandemic, so that their amounts outstanding will gradually return to pre-pandemic levels, namely, about 2 trillion yen for CP and about 3 trillion yen for corporate bonds. New scheme introduced in Mar. 2021 where BOJ set applied interest rate/incentive for categories as follows; 0.2% for Category I, 0.1% for Category II and 0% for Category III. Category I is loans through SFSO by financial institutions themselves, Category II is loans through SFSO including private debt pledged as collateral and Category III is loans through Loan Support Program (Including Climate Response Financing Operations). At OIS +25bps (cut by 25bps) and for 1-week maturity operations (84 days maturity operation was discontinued as of July 1st 2021) Increase in purchase amounts at annual pace of up to about JPY 12tn and about JPY 180bn, respectively, for the time being. (In principle, about JPY 6tn and JPY 90bn) => Maintaining the same annual pace increase Against the backdrop of rising 10-year interest rates, fixed-rate purchase operations will be offered every business day except when no bids are clearly expected after May 2, 2022, and purchases will be made so that the yield on the highest yielding of the three current 10-year JGB issues will be 0.25%. The amount of purchases is unlimited. Copyright ©2022 Sumitomo Mitsui Financial Group. All Rights Reserved. Special Funds-Supplying Operations to Facilitate Financing in Response to the Novel Coronavirus (COVID-19) Source: Bank of Japan 71