Investor Presentaiton

BOJ'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

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