Strengths and Challenges

(Case 1) Overseas business especially in Asia

The position of Asia for our corporate customers has become more important as evidenced by percentage of sales of Asian subsidiaries within all of the overseas subsidiaries for Japanese companies reaching to the level of 50%. Loan demand in Asia is extremely strong especially from infrastructure development. Furthermore, the progress of FTAs and EPAs among Asian countries is encouraging cross-boarder transactions within production and assembly facilities in the area.

Capturing these opportunities, we aim to promote conventional finance for corporate customers, infrastructure and natural resources related project finance in each country, loan syndication, trade finance and settlement services such as global cash management service (CMS) by responding to different character in each market.

Furthermore, we will improve our service through alliances with leading banks in Asia, in addition to expansion of our own channel network.

In Americas and Europe, we are continuing to bolster specific products with competitive edge in global basis, including SMBC's project finance.

With these initiatives, in the medium to long term, we aim to increase the proportion of Banking profit from International Banking Unit to overall Marketing units, which was 20% in FY3/2010.

<Reference 1> Trends of Banking profit in International Banking Unit *1

*1Sum of SMBC and its major overseas subsidiaries
*2Collective term composed of Consumer Banking Unit, Middle Market Banking Unit, Corporate Banking Unit and International Banking Unit. For the purpose of this chart, Banking profit from SMBC's major overseas subsidiaries are included

<Reference 2> Business expansion in Asia (SMBC)

*3Boldfaced and underlined banks represent ones with SMBC's investment (including the one to be invested)
*4Channel network of SMBC and its overseas subsidiaries

<Reference 3> Financial products with a globally competitive edge (SMBC)