Priority Issues for Us

Reconstruction after the earthquake and tsunami
- Measures for Japan's regeneration

The March 11 earthquake and tsunami (The Great East Japan Earthquake) undermined power generation capacity and severed manufacturing supply chains across the nation. This was in addition to the severe damage sustained by agriculture and fisheries in the Northeast.

The disaster also threw into relief many social issues facing the nation. By leveraging our role as a leading financial services group, we are committing our full range of resources to dealing with the enormous task of regional reconstruction after the earthquake, in partnership with stakeholders including enterprises, local governments and non-profit organizations.

Further measures needed:

• Wide-ranging financial support for the reconstruction of infrastructure
• Ongoing disaster recovery activities by employee volunteers
• Comprehensive support for industrial recovery in partnership with local governments and financial institutions in the disaster-affected areas

Environmental measures
- Creating systems for sustainability

The SMFG group has positioned environmental businesses as an area where it can most effectively leverage its role as a leading financial services group. This is a priority field for the future.

Measures are being stepped up on a range of fronts - not only involving a low-carbon society, but also dealing with issues such as water supply, soil contamination, energy and biodiversity. We aim to contribute to sustainable development by supporting the worldwide adoption of Japan's much-admired technological breakthroughs, with a particular focus on the Asian region.

Further measures needed:

• Give further support for businesses involved in greenhouse gas reduction, water supply, new energy and resource initiatives
• Do more to safeguard biodiversity, in our capacity as a financial institution
• Share our information assets and know-how globally in the environmental business

Shrinking and aging population
- Ensuring peace of mind for the future

Currently, the proportion of people aged 65 or over in Japan has reached 23.4%*. SMFG will help create frameworks enabling the elderly to enjoy a vibrant lifestyle with peace of mind, through support for life-cycle planning and other measures. The SMFG group aims to create systems and a corporate culture that foster a sound balance between work and care needs, given that many group employees will later need to nurse ailing relatives.
*Estimates by the Statistics Bureau, Ministry of Internal Affairs and Communications (October 1, 2011)

Further measures needed:

• Support businesses involved in health, medical and nursing care
• Expand range of financial products and services for the elderly (planning for asset management for old age)
• Foster a better work-life balance

Global challenges
- Symbiosis and diversity

In anticipation of further global expansion, the SMFG group is aggressively internationalizing its operations both in Japan and overseas. Initiatives include aggressive development of advisory services for infrastructure upgrades in emerging economies, a cross-departmental endeavor, as well as contributions to the international community and the environmental business, chiefly through branches and representative offices overseas.

We will continue to discuss and review various approaches to issues facing the international community so as to build up trust internationally as a global player.

Further measures needed:

• Share expertise in corporate social responsibility with the international community
• Improve financial services in preparation for the globalization of operations in Japan (multilingual support)
• Promote diversity