SMFG Capital Ratio Information ■  Standardized Approach 1. Scope 2. Credit Risk-Weighted Asset Calculation Methodology 3. Exposure Balance by Risk Weight Segment ■  Credit Risk Mitigation (CRM) Techniques 1. Risk Management Policy and Procedures A. Collateral (Eligible Financial or Real Estate Collateral) B. Guarantees and Credit Derivatives (1) Scope and Management The following consolidated subsidiaries have adopted the standardized approach for exposures as of March 31, 2011 (i.e. consolidated  subsidiaries not listed in the “Internal Ratings-Based (IRB) Approach: 1. Scope” on page 181). Sumitomo Mitsui Finance and Leasing Co., Ltd., Kansai Urban Banking Corporation and Cedyna Financial Corporation These are consolidated subsidiaries judged not to be significant in terms of credit risk management based on the type of business, scale,  and other factors. These subsidiaries will adopt the standardized approach on a permanent basis.  A 100% risk weight is applied to claims on corporates in accordance with Article 45 of the Notification, and risk weights corresponding to  country risk scores published by the Organization for Economic Co-operation and Development (OECD) are applied to claims on sovereigns  and financial institutions. In calculating credit risk-weighted asset amounts, SMFG takes into account credit risk mitigation (CRM) techniques. Specifically, amounts  are adjusted for eligible financial or real estate collateral, guarantees, and credit derivatives or by netting loans against the obligors’ deposits  with SMFG financial institutions. The methods and scope of these adjustments and methods of management are as follows. SMBC designates deposits and securities as eligible financial collateral, and land and buildings as eligible real estate collateral.  Real estate collateral is evaluated by taking into account its fair value, appraisal value, and current condition, as well as our lien  position. Real estate collateral must maintain sufficient collateral value in the event security rights must be exercised due to delinquency.  However, during the period from acquiring the rights to exercising the rights, the property may deteriorate or suffer damage from  earthquakes or other natural disasters, or there may be changes in the lien position due to, for example, attachment or establishment of  liens by a third party. Therefore, the regular monitoring of collateral is implemented according to the type of property and the type of  security interest. Guarantors are sovereigns, municipal corporations, credit guarantee corporations and other public entities, financial institutions, and  C&I companies. Counterparties to credit derivative transactions are mostly domestic and overseas banks and securities companies. Credit risk-weighted asset amounts are calculated taking into account credit risk mitigation of guarantees and credit derivatives  acquired from entities with sufficient ability to provide protection such as sovereigns, municipal corporations and other public sector  entities of comparable credit quality, and financial institutions and C&I companies with sufficient credit ratings. SMFG  2011 190 Notes: 1. The above amounts are exposures after CRM (but before deduction of direct write-offs). Please note that for off-balance sheet assets the credit equivalent amount has been  included. 2. “Securitization exposures” have not been included. March 31 Billions of yen 2011 2010 Of which assigned  country risk score Of which assigned  country risk score 0% ............................................................................................ ¥ 8,773.2  ¥ 81.6  ¥ 6,454.8 ¥ 89.9 10% .......................................................................................... 243.3 — 277.8 — 20% .......................................................................................... 814.8 298.2 801.0 343.4 35% .......................................................................................... 1,061.6 — 1,126.2 — 50% .......................................................................................... 377.7 2.8 210.7 1.2 75% .......................................................................................... 3,242.1 — 1,352.8 — 100% ........................................................................................ 5,645.9 0.1 5,567.0 0.1 150% ........................................................................................ 78.4 — 41.1 — Capital deduction ..................................................................... 0.0 — 0.0 — Others ....................................................................................... 0.0 — 0.0 — Total .......................................................................................... ¥20,237.0 ¥382.8 ¥15,831.4 ¥434.5 (1) Consolidated Subsidiaries Planning to Adopt Phased Rollout of the IRB Approach (2) Other Consolidated Subsidiaries