Translation of the Japanese press release
August 24, 2009
Nikko Cordial Securities Inc.

Corporate Organization and Executive Structure of New Company
Nikko Cordial Securities Inc. (the “Current Nikko Cordial Securities”) will start operations
as a new company (the corporate name is scheduled to be changed to Nikko CordialSecurities Inc. from Nikko Cordial Securities De-Merger Preparatory Company Ltd. as ofOctober 1, 2009) by succeeding all the operations of Nikko Cordial Securities Inc. andpart of operations of Nikko Citigroup Limited etc., subject to relevant authorities’
approvals and registrations, and will build a new structure of a full-line securities firm as
a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation.
The announcement is hereby made as the corporate organization and executive
structure of the new company as of the starting date of business operations weredecided today.
1. Outline of Organizational Structure of New Company
The new company will build a new corporate structure by adding the following elements
to the operations of the Current Nikko Cordial Securities centered on retail securities
business.
(1) Build a structure for domestic equity and bond underwriting and investmentbanking operations and reinforce and expand wholesale securities business with anaim to further enhancing customer service. Establish wholesale trading division.
(2) Develop and expand internal control structure that will help support the full-line
brokerage operations and take in functions such as finance and media relations thathave been operated under the existing holding company, Nikko Citi Holdings Inc.
(3) Multiple organizations will respond to step up coordination with Sumitomo Mitsui
Banking Corporation in the areas such as intermediary business, compliance, risk
management and audit.
(4) Build a structure for managing affiliates that will be taken in as subsidiaries at thistime of business reorganization.

2. Outline of New Company (As of October 1, 2009 – Planned)
1. Corporate Name

Nikko Cordial Securities Inc.

2. Line of Business

Financial Instruments Transactions, etc.

3. Date of Establishment

June 15, 2009

4. Address of Head Office3-3-1 Marunouchi Chiyoda-ku, Tokyo5. Representative

Eiji Watanabe, President & CEO

6.

Capital10 billion yen

7.

Total Number of Shares
200,000 shares
Outstanding

8.

Fiscal term end

March 31

9.

Number of employees

6,960

10. Major shareholder andVoting right

Sumitomo Mitsui Banking Corporation 100％

11. Major Banking Relationship Sumitomo Mitsui Banking Corporation
3. Executive Structure (As of October 1, 2009 – planned)
Kazuyoshi Kimura[New] Chairman

Naoyuki Kawamoto[New] Vice Chairman, Co-Head of Risk Management and
Co-Head of Finance[Previous] Managing Director, Sumitomo Mitsui BankingCorporation

Eiji Watanabe[New] President & CEO[New] Executive Deputy President

Noriyuki Ogasawara[Previous] Director

Yuichiro Takada

Masashi Iwakigawa

Hideto Yoshikawa

Masaaki Mizuno
Noriyoshi Suzuki
Naofumi Fuke

[New] Executive Deputy President, Co-Head of Corporate
Business and Co-Head of Institutional Business[Previous] Managing Director, Sumitomo Mitsui BankingCorporation[New] Senior Executive Managing Director, Head of PublicInstitutions[New] Senior Executive Managing Director, Head ofInstitutional Business Unit
[Previous] Senior Executive Managing Director, Head ofInstitutional Business Unit, Head of IPO Underwriting &Consulting, Head of Institutional Business Tokai and Headof Institutional Business Kinki[New] Senior Executive Managing Director, Head ofProducts and Head of Research[New] Senior Executive Managing Director, Head of Retail
Business Kinki, Hokuriku & Shinetsu and Head of WealthManagement[New] Senior Executive Managing Director, Head of Retail
Business Planning and Head of Financial ProductsIntermediary BusinessHiroshi Kobayashi[New] Senior Executive Managing Director, Co-Head ofBusiness & Strategic Planning[Previous] Director, Sumitomo Mitsui Banking Corporation

Shinya Tamoto
Hitoshi Chinen
Yasushi Tachihara
Kenichi Shimizu

Shuichi Kondo[New] Executive Director, Head of Finance[New] Executive Director, Head of Compliance, Head ofGeneral Administration and Head of Risk Management[Previous] Executive Director, Head of Compliance andHead of General Management[New] Executive Director, Head of Administrative Operationand Head of Business & Strategic Planning[New] Managing Executive Officer, Head of Institutional
Business Western Japan[Previous] Executive Managing Director, Head ofInstitutional Business Western Japan[New] Managing Executive Officer, Head of Institutional
Business Tokai[Previous] Managing Executive Officer

Eiji Yamada

Takashi Yoshikawa[New] Managing Executive Officer, Head of Institutional
Business Eastern Japan[Previous] Executive Managing Director, Head ofInstitutional Business Eastern Japan[New] Managing Executive Officer, Head of Corporate
Business and Head of Corporate Business I[Previous] Managing Executive Officer

Masaya Owada

Kunio Oda

[New] Managing Executive Officer, Head of Corporate
Development Service[Previous] Executive Director, Head of Corporate
Development Service[New] Managing Executive Officer, Head of Institutional
Business Kinki[Previous] Executive Officer

Akira Nokina

Hitoshi Hiramatsu

Taro Hayashi[New] Managing Executive Officer, Head of Retail Business
Eastern Japan & Metropolitan East
[Previous] Executive Officer, Head of Retail Business East
Japan & Metropolitan East[New] Managing Executive Officer, Head of Retail Business
Metropolitan West & Tokai[Previous] Executive Officer, Head of Retail Business
Metropolitan West & Tokai[New] Managing Executive Officer, Co-Head of Products
Planning & Operation and Head of Capital Markets
Origination[Previous] Managing Director, Nikko Citigroup Limited

Masuo Fukuda[New] Managing Executive Officer, Head of Investment
Banking Division and Co-Head of Corporate Business I[Previous] Managing Director, Nikko Citigroup Limited

Hiroshige Jikihara[New] Executive Officer, Head of Personnel Development[New] Executive Officer, Head of Asset Management

Osamu Morita[Previous] Executive Director, Head of Asset Management
Yasuyoshi Asano
Tatsuya Kaneko[New] Executive Officer, Co-head of Wealth Management
and Co-Head of Solution Strategy[New] Executive Officer, Deputy Head of Investment
Banking Division[Previous] Executive Officer

Kenichi Tamura[New] Executive Officer, Deputy Head of Investment
Banking Division[Previous] Executive Officer

Naotaka Fujishiro

Toyoshi Maeda

Toshio Sadayuki
Hiroaki Toyoda[New] Executive Officer, Head of Retail Business Tokyo[New] Executive Officer, Co-Head of Solution Strategy,
Head of Compensation & Benefit Planning and Head ofCorporate Business II[Previous] Executive Officer, Co-Head of Solution Strategy
and Head of Listed & OTC, Private Companies[New] Executive Officer, Head of Retail Business WesternJapan[New] Executive Officer, Head of Products Planning &Operation and Co-Head of Products[New] Executive Officer, Deputy Head of Products

Norihei Matsumoto[Previous] President, Nikko Financial Intelligence, Inc.
[New] Executive Officer, Head of Internal Audit
Michinori Ando
[Previous] General Manager, Internal Inspection
Kouichirou Seo[New] Standing Statutory Auditor

Masayoshi Sato[New] Statutory Auditor

Yukio Rimbara[New] Statutory Auditor4. Organization of New Company (As of October 1, 2009 – planned)“New” means an organization that does not exist in the Current Nikko Cordial Securities
and “Renamed” means an organization to be succeeded from the Current Nikko Cordial
Securities and its name is changed.
(1) Audit-related organization
・Internal Audit (Renamed)(2) Compliance-related organizations
・General Compliance Management (Renamed)
・Product Compliance・Securities Trading Supervisory Operation
・Institutional Business Administration
・Security Management (New)・Underwriting Reviews (New)(3) Administration-related organizations
・Communications (New)・Legal (Renamed)・Funding & Cash Management (New)・Securities Settlement
・Administrative Services (New)・Human Resources(4) Administrative Operation-related organizations
・Administrative Operation
・System Planning & Operation(5) Personnel Development-related organization
・Personnel Development(6) Risk Management-related organization
・Risk Management(7) Finance-related organizations
・Finance Control (New)・Treasury (Renamed)(8) Products Planning & Operation-related organization
・Products Planning & Operation(9) Asset Management-related organizations
・Asset Management Products・Asset Management Marketing
・Insurance Business・Investment Advisory Business(10)Products-related organizations
・Equity・Equity Advice Center・Financial Market Products・Financial Market Products Trading (Renamed)(11)

Capital Markets Origination (New)・Equity Capital Markets (New)・Debt Capital Markets (New)・Debt Syndicate (New)・Alternative Markets (New)(12)

Corporate Development Service
・Corporate Development Service(13)

Research-related organization
・Global Investment Strategy(14)

Business & Strategic Planning-related organizations
・International Business (Renamed)
・Overseas Office・Management Planning & Administration
・Institutional Business Development
Customer Relations
・Business Research(15)

Retail Business Planning-related organizations
・Customer Service Center
・Direct Marketing
・Retail Business Planning・Solution Business Planning(16)

Retail Business Eastern Japan & Metropolitan East
・Tokyo District Sales Department
・Branch Offices(17)

Retail Business Tokyo・Branch Offices(18)

Retail Business Metropolitan West & Tokai・Branch Offices(19)

Retail Business Kinki, Shinetsu & Hokuriku
・Branch Offices(20)

Retail Business Western Japan・Branch Offices

(21)Financial Products Intermediary Business・Financial Products Intermediary Business with SMBC (New)・Financial Products Intermediary Business(22)

Public Institutions
・Public Institutions I
・Public Institutions II・Public Institutions III
・Public Institutions IV・Public Institution Operation(23)

Wealth Management
・Private Banking
・Personal Advisory for Corporate Employees
・Sales Group for Wholesale Clients・Private Companies(24)

Solution Strategy-related organizations
・Solution Business Planning I
・Corporate Strategy(25)

Compensation & Benefit Planning-related organization
・Compensation & Benefit Planning(26)

Investment Banking (New)・Investment Banking I (New)・Investment Banking II (New)・Investment Banking III (New)・Investment Banking IV (New)・Investment Banking V (New)・Investment Banking VI (New)・Capital Markets Execution (New)・IPO Underwriting & Consulting(27)

Corporate BusinessCorporate Business I (New)・Listed Companies I (New)・Listed Companies II (New)・Financial Institutions & Public Sector (New)
Corporate Business II (Renamed)
・Listed Companies IV
・Listed Companies V
・Listed Companies VI(28)Institutional BusinessInstitutional Business Eastern Japan・Institutional Clients Department, Sapporo Branch・Institutional Clients Department, Sendai Branch

・Institutional Clients Department, Niigata Branch・Institutional Clients Department, Saitama Branch・Institutional Business Kanto
・Institutional Clients Department, Chiba Branch・Institutional Clients Department, Yokohama Branch・Institutional Clients Department, Mito BranchInstitutional Business Tokai
・Institutional Business Nagoya (New)・Institutional Clients Department, Shizuoka BranchInstitutional Business Kinki
・Institutional Business Osaka (New)・Institutional Clients Department, Kyoto Branch・Institutional Clients Department, Kobe BranchInstitutional Business Western Japan・Institutional Clients Department, Okayama Branch・Institutional Clients Department, Hiroshima Branch・Institutional Clients Department, Fukuoka Branch・Institutional Clients Department, Yamaguchi Branch
5. Others
The major entities that will become wholly-owned subsidiaries of Nikko Cordial
Securities Inc. on the starting date of business are as follows:
There will be no changes in corporate names and other details.
Nikko Global Wrap Ltd.
Nikko Systems Solutions, Ltd.
Nikko Pension Consulting Co., Ltd.
Nikko Financial Intelligence, Inc.
Nikko Investor Relations Co., Ltd.
Nikko Enterprise Co., Ltd.
Nikko Business Systems Co., Ltd.
###Media:Nikko Cordial Securities Inc.
81-3-6270-9279

[Appendix 1 ]Eiji Watanabe
Nikko Cordial Securities Inc.
President & CEO――――――――――――――――――――――――――――――――――――――
Eiji Watanabe has been appointed as President & CEO of Nikko Cordial Securities Inc.,
effective October 1, 2009.
He is presently President & CEO of the Current Nikko Cordial Securities Inc.
Previously, he served as Executive Deputy President, Compliance & Administrative
Operation of the Current Nikko Cordial Securities Inc., since Feb. 2007.
He served as Senior Executive Managing Director and Senior Executive Officer of theCurrent Nikko Cordial Securities Inc., responsible for Compliance and Administrative
Operation since March 2003.
He was a director of the Current Nikko Cordial Securities Inc., responsible for theConsulting Business since October.2001.
Initially appointed as Executive Officer of The Nikko Securities Co.,Ltd. in March 2000,
he had served as head of the Consulting Business and General Manager of Consulting
Support Department.
He has been in a position of leadership since March.1995, serving as Head of CEOOffice, General Manager of Management Planning & Administration and General
Manager of Shibuya Branch of The Nikko Securities Co.,Ltd.
He joined The Nikko Securities Co.,Ltd. in April 1976, after receiving a Bachelor’s
degree in Law from Waseda University.
He is married and has two sons.