Message from Top Management We extend our deepest sympathies and heartfelt condolences to all those who have suffered and the families and  friends of those who tragically lost their lives in the Great East Japan Earthquake which struck Northeastern Japan  in March 2011. We pray for the earliest recovery for the affected people and areas. We would like to thank all of our stakeholders for your continued support and patronage. We, Koichi Miyata and Takeshi Kunibe, succeeded the management in April 2011, and assumed the positions  of President of Sumitomo Mitsui Financial Group and President and CEO of Sumitomo Mitsui Banking Corporation,  respectively. In this annual report, we would like to present our initiatives implemented in fiscal 2010 and our  management policies going forward. In fiscal 2010, we implemented our initiatives to secure a resilient  capital base and enhance our business portfolio in order to achieve  sustainable growth in accordance with the following two manage- ment policies: 1) “forward looking” — transforming our business  model to grow steadily under a new regulatory and competitive  environment, and 2) emphasizing return on risks and costs in order  to improve our asset quality and thoroughly control expenses and  credit costs. earnings of consolidated subsidiaries such as Kansai Urban  Banking Corporation and Cedyna. Also, in order to achieve medium- to long-term growth, we  made steady progress in strengthening our focused business areas  by enhancing collaboration between SMBC’s domestic and overseas  branches, expanding our overseas channel network especially in  Asia, strengthening alliances with major local banks, and improving  capabilities of SMBC Nikko Securities. To accelerate our business  development as a global player, we listed on the New York Stock  Exchange in November 2010. SMFG’s consolidated ordinary profit increased by ¥266.7 billion  to ¥825.4 billion and net income increased by ¥204.3 billion to  ¥475.9 billion. This significant increase was due mainly to: In May 2011, we launched our medium-term management plan  starting from fiscal 2011 and ending in 2013, for the first three years  of the second decade of our business operations; our group was  originally formed at the establishment of SMBC in 2001. I sincerely believe that my mission as President of SMFG is to orchestrate the  group in its next stage of development by further strengthening cooperation  among our group companies and improving our ability to act with speed, leverag- ing our existing business platform and corporate infrastructure we have created as  a leading financial services group.  We, the SMFG group, strive to enhance our capabilities to comprehensively  provide our clients with diverse and sophisticated financial products and services,  including broker/dealer services in addition to our core commercial banking  services.  Koichi Miyata President Sumitomo Mitsui Financial Group, Inc. - an increase in SMBC’s banking profit due to an increase in gains  on sale of bonds by successfully managing interest-rate fluctuation,  - a decrease in total credit cost as a result of tailored efforts to assist  clients to improve their businesses and financial condition, and,  - an earnings contribution of SMBC Nikko Securities (for- merly Nikko Cordial Securities), in addition to the improved  Management Policies Going Forward —Overview of the Medium-term Management Plan— Principal Initiatives in Fiscal 2010 SMFG  2011 2