Consolidated Statements of Cash Flows SMFG Sumitomo Mitsui Financial Group, Inc. and Subsidiaries SMFG  2011 75 Millions of yen Millions of  U.S. dollars (Note 1) Year ended March 31 2011 2010 2011 Cash flows from operating activities: Income before income taxes and minority interests ........................................ ¥ 827,313 ¥ 558,097 $ 9,950 Depreciation ..................................................................................................... 154,267  136,860 1,855  Losses on impairment of fixed assets .............................................................. 5,411  12,856 65  Amortization of goodwill ................................................................................... 22,938  18,634 276  Gains on negative goodwill .............................................................................. (409) — (5) Gains on step acquisitions ............................................................................... (12,655) — (152) Equity in losses of affiliates .............................................................................. 13,319  21,542 160  Net change in reserve for possible loan losses ................................................ (13,433) (1,419) (162) Net change in reserve for employee bonuses .................................................. 1,057  7,543 13  Net change in reserve for executive bonuses .................................................. 163  813 2  Net change in reserve for employee retirement benefits .................................. (2,987) 903 (36) Net change in reserve for executive retirement benefits .................................. (5,642) 204 (68) Net change in reserve for point service program ............................................. (1,420) (17) Net change in reserve for reimbursement of deposits ..................................... (1,810) (43) (22) Net change in reserve for loss on interest repayment ...................................... (17,566) (211) Interest income ................................................................................................. (1,612,599) (1,695,805) (19,394) Interest expenses ............................................................................................. 294,947  314,893 3,547  Net gains on securities ..................................................................................... (61,648) (19,837) (741) Net losses from money held in trust ................................................................. 148  245 2  Net exchange losses ........................................................................................ 280,834  83,038 3,377  Net (gains) losses from disposal of fixed assets .............................................. 5,029  (11,176) 60  Net change in trading assets ............................................................................ 7,813  (983,770) 94  Net change in trading liabilities ........................................................................ 256,101  1,195,098 3,080  Net change in loans and bills discounted ........................................................ 1,401,384  3,591,071 16,854  Net change in deposits ..................................................................................... 3,628,657  1,918,359 43,640  Net change in negotiable certificates of deposit .............................................. 1,380,003  (462,243) 16,597  Net change in borrowed money (excluding subordinated borrowings) ............ 4,569,942  541,021 54,960  Net change in deposits with banks .................................................................. (1,196,723) (770,291) (14,392)  Net change in call loans and bills bought and others ...................................... (18,924) (474,477) (228) Net change in receivables under securities borrowing transactions ................ 700,211  (3,226,847) 8,421   Net change in call money and bills sold and others ......................................... 165,025  (473,642) 1,985  Net change in commercial paper ..................................................................... 26,333  310,787 317  Net change in payables under securities lending transactions ........................ 1,397,458  (3,409,463) 16,806  Net change in foreign exchanges (assets) ........................................................ (7,663) (220,622) (92) Net change in foreign exchanges (liabilities) .................................................... 64,083  (89,277) 771  Net change in lease receivables and investment assets .................................. 152,703  202,531 1,836  Net change in short-term bonds (liabilities) ...................................................... (101,780) 168,836 (1,224) Issuance and redemption of bonds (excluding subordinated bonds) .............. 515,688  (211,844) 6,202  Net change in due to trust account .................................................................. 56,617  98,635 681  Interest received ............................................................................................... 1,635,444  1,760,370 19,669  Interest paid ...................................................................................................... (309,401) (341,821) (3,721) Other, net .......................................................................................................... (279,956) (321,815) (3,367) Subtotal  ............................................................................................................ 13,918,277  (1,772,056) 167,388  Income taxes paid ............................................................................................ (124,540) (108,864) (1,498) Net cash provided by (used in) operating activities  .......................................... 13,793,737  (1,880,921) 165,890 