Meanwhile, our basic policy on returns to shareholders is to  increase returns consistently and continuously through the sustain- able growth of enterprise value, by sustaining a consolidated payout  ratio of over 20%, while prudently managing the level of retained  earnings to maintain our financial soundness in view of the public  nature of banking business operations. Our group has been rapidly expanding our business operations as  each group company has been growing to become a major player in  its business area and we have increased the number of group com- panies through acquisitions, including SMBC Nikko Securities. Also,  in order to meet the global strengthening of financial regulations, we  are required to focus further on the enhancement of our risk-return  and cost-return profiles and steadily expand our bottom-line profit.  Therefore, we will strengthen our group management capabilities  including risk management, control consolidated overhead ratio at  50-55% and develop human resources required for global business  expansions. In order to achieve these two goals, we will proactively allocate  risk-adjusted assets into strategic business areas while controlling  aggregate volume of risk-adjusted assets by reducing low-yielding  assets, and strengthen our capital base by consistently accumulat- ing retained earnings. We will consider any increases of shareholders  returns, by taking into account the level of our regulatory capital,  payout ratio and dividends. ◎ Establish a solid financial base and corporate  infrastructure ◎ Capital Policy and Returns for Shareholders We shall sincerely and faithfully pursue these initiatives to meet  the expectations of our stakeholders. In the medium-term management plan, we have set a management  goal to achieve Core Tier I ratio* of approximately 8% on March  31, 2014. This means that we will strive to achieve a capital ratio  of approximately 1% higher than the Basel III required level of 7%  by five years earlier than the Basel III full implementation deadline of  March 2019. * Calculated based on the definition under Basel III in 2019; all regulatory  adjustments are deducted from Common Equity Tier I, excluding net unreal- ized gains (losses) on other securities (SMFG consolidated). ◎ Group Structure* September 2011 Takeshi Kunibe President and CEO Sumitomo Mitsui  Banking Corporation Koichi Miyata President Sumitomo Mitsui Financial Group, Inc. * As of Jun. 30, 2011 for shareholding ratio and as of Mar. 31, 2011 for other figures. Consolidated total assets ¥138 trillion 12.47% 40% 60% 100% 100% 100% 100% 100% 22% 66% 100% 51% 34% ¥115 trillion ¥74 trillion ¥55 trillion approx. 26 million approx. 119,000 Consolidated Tier I ratio Total assets Deposits Loans Number of retail accounts Number of corporate loan clients Sumitomo Mitsui Finance and Leasing Japan Research Institute SMBC Nikko Securities SMBC Friend Securities SMFG Card & Credit Sumitomo Mitsui Card Sumitomo  Corporation (Consumer finance) (Credit card) (Securities) (System engineering and  management consulting, etc.) (Leasing) NTT DOCOMO Cedyna Promise ORIX Credit Corporation Sumitomo Mitsui Financial Group Sumitomo Mitsui Banking Corporation Became a wholly-owned subsidiary (Oct. 2009) Became a consolidated subsidiary (Jul. 2009) Became a wholly-owned subsidiary (May 2011) SUMITOMO MITSUI Banking Corporation SMFG  2011 7