Topics ◆  Expansion of Securities Businesses in Overseas  Markets  ■  Investment Banking Collaboration with SMBC Nikko Securities Underwriting amount for  “Japanese Corporate Bonds” Market share* Number of referrals by SMBC to SMBC Nikko  Securities ◆ Environmental Business SMFG consolidates the resources from the Investment Banking  Unit of SMBC and SMBC Nikko Securities and other Group  companies to assist its clients with their business develop- ment and enhancement of their corporate value by providing  optimized solutions for the needs of its clients in areas such as  fund-raising and asset management, M&A, risk-hedging, and  payment and settlement. As the businesses of our corporate clients become further  globalized and the number of investors increases, SMBC Nikko  Securities has began its operations of M&A advisory services,  underwriting bonds and brokerage services (for Japanese  stocks) at its overseas offices. We plan to further globalize our  operations, and respond appropriately and timely to the sophis- ticated financial needs of our clients. As of April 1, 2011, Nikko Cordial Securities, which became  a wholly owned subsidiary of SMBC on October 1, 2009,  changed its corporate name to SMBC Nikko Securities Inc. As  the core securities firm for the Group, it has expanded its retail  and wholesale businesses by closely working with SMBC.  In the league tables published by Thomson Reuters for fiscal  2010, SMFG was ranked fourth in the M&A advisory services  category for publicly announced mergers involving Japanese  companies with a market share of 19.2%. We placed fifth for  underwriting amount for the “Japanese Corporate Bonds”  category (market share of 16.6%). We continue to strengthen  the cooperation between SMBC Nikko Securities and SMBC  and to respond to the diverse needs of our clients for raising  capital from the market, cross-border M&A transactions and  securitization. *Source: Thomson Reuters  Underwriting amount for “Japanese Corporate Bonds”  Information contained in this document for the period prior to September 2009 is  based on the information provided by the former Nikko Cordial Securities Inc. The SMBC’s subsidiaries, SMBC Nikko Capital Markets  Limited (UK) and SMBC Nikko Securities America, Inc. (US),  have begun and are expanding their securities business  operations in London and New York, respectively. SMBC  Nikko Securities’ wholly owned subsidiaries in Hong Kong  and Shanghai also commenced securities business and M&A  advisory service operations in January 2011. June 30, 2011 SMBC established its Environmental Products Department  in October 2007 to promote its environmental businesses.  It also developed a cross-organizational “Growing Industrial  Cluster*$^{1}$ Project Team” in July 2010 to promote businesses  associated with four growing industrial sectors. It cross- organizationally promotes efforts aimed at expanding, identi- fying and creating mid- to long-term business opportunities  for our clients by cooperating with industries, government  and universities, and collecting information from the domestic  and international networks. As a result of these measures, a CDM*$^{2}$ project, which  we supported in Singapore for the trading of emission credits,  became the country’s first such large project to be registered  by the United Nations, and we provided financing by utiliz- ing the Nippon Export and Investment Insurance (“NEXI”) for  Vietnam’s first hydroelectric power generation business by the  private sector. These initiatives contributed to our nomination  for the award of “Sustainable Bank of the Year 2011 (Cross- Regional category),” organized by the Financial Times and the  International Finance Corporation. * 1 The four growing industrial sectors are: the “Environment,” “New  Energy,” “Water” and “Natural Resources.” *$^{2}$ “Clean Development Mechanism” 0 200 400 600 800 1,000 ■  Investment Management ■  Investment banking businesses 2009 Oct.-Dec. 2011 Jan.-Mar. 2010 Oct.-Dec. 2010 Jul.-Sept. 2010 Apr.-Jun. 2010 Jan.-Mar. FY2009 FY2010 SMBC Nikko Securities SMBC Nikko Securities 1st Fiscal 2013 (Target) 16.6% 6.2% 13 SMFG  2011