October 3, 2016
SMBC Nikko Securities Inc.

Notice regarding Changes in Subsidiaries among the SMFG Group

Please be informed that Sumitomo Mitsui Financial Group, Inc., our parent company, has today issued
the attached press release.
###This material is an English translation of Japanese announcement made on October 3, 2016. Although the company intended to faithfullytranslate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed and thus you areencouraged to refer to the original Japanese document.

October 3, 2016
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation

Notice regarding Changes in Subsidiaries among the SMFG GroupTokyo, October 3, 2016 --- Sumitomo Mitsui Financial Group, Inc. (SMFG, President:Koichi Miyata) acquired 100% of shares in SMBC Nikko Securities Inc. (SMBC Nikko,President and CEO: Yoshihiko Shimizu) and 60% of shares in Sumitomo Mitsui AssetManagement Company, Limited (SMAM, President & CEO: Takashi Matsushita; and togetherwith SMBC Nikko, the “Two Subsidiaries”) as a dividend in kind which Sumitomo MitsuiBanking Corporation (SMBC, President and CEO: Takeshi Kunibe), a wholly owned subsidiaryof SMFG, distributed on October 1, 2016. We hereby announce that, as a result of suchacquisitions of shares, the Two Subsidiaries became direct subsidiaries of SMFG and changes insubsidiaries among SMFG’s group (the “Change”) occurred.

1. Background and Reason of the Change
As announced in the press release “Execution of the Merger Agreement between SMBC
Nikko Securities and SMBC Friend Securities” dated September 30, 2016, SMBC Nikko andSMBC Friend Securities Co., Ltd. (SMBC Friend, President: Koichi Danno) are tentatively
scheduled to be merged in January 2018, with SMBC Nikko as the surviving company andSMBC Friend as the absorbed company, with the aim of strengthening further thecompetitiveness of the SMFG group’s securities business through synergies from the merger
while capitalizing on the strengths of each company. Prior to the merger, SMBC Nikko
became a direct subsidiary of SMFG as a result of the Change.
In addition, as announced in the press release “Completion of Additional Acquisition ofShares and Consolidation of Sumitomo Mitsui Asset Management Company, Limited” datedJuly 29, 2016, since SMBC became the holder of 60% of shares in SMAM, SMAM became aconsolidated subsidiary of SMFG. This causes SMFG to further develop SMAM and to makeefforts in fulfillment of its fiduciary duty. As a part of such efforts, SMFG acquired shares in
SMAM and made SMAM its direct subsidiary. This will allow SMFG to supervise further
efficient and appropriate management of conflict of interests.
2. Corporate Profiles of the Subsidiaries Changed
SMBC distributed shares of the Two Subsidiaries to SMFG as a dividend in kind utilizing
other capital surplus as dividend resource (qualified dividend in kind) on October 1, 2016. The
following are corporate profiles of the subsidiaries changed due to the dividend in kind.

(1)SMBC Nikko(1) Company NameSMBC Nikko Securities Inc.

(2) Location of Head Office3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo(3) Title and Name of Representative

Yoshihiko Shimizu, President and CEO(4) Business Profile

Securities services(5) Establishment

June 15, 2009

(6) Capital Amount

10 billion yen(7) Major Shareholders andShareholding Ratios

Sumitomo Mitsui Financial Group, Inc.

(2)

100.0%SMAM(1) Company Name

Sumitomo Mitsui Asset Management Company, Limited(2) Location of Head Office

5-1, Atago 2-chome, Minato-ku, Tokyo(3) Title and Name of Representative

Takashi Matsushita, President & CEO(4) Business Profilea) Investment Management (Discretionary/Advisory)b) Investment Trust Fund Management(5) Establishment

July 15, 1985

(6) Capital Amount2 billion yen(7) Major Shareholders andShareholding Ratios

Sumitomo Mitsui Financial Group, Inc.
Sumitomo Life Insurance Company
Mitsui Sumitomo Insurance Company, Limited

3. Corporate Profile of the Company which Conducted the Dividend in Kind
(1) Company Name

Sumitomo Mitsui Banking Corporation(2) Location of Head Office1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo(3) Title and Name of Representative

Takeshi Kunibe, President and CEO(4) Business Profile

Banking services

60.0%
20.0%
20.0%

(5) Establishment

June 6, 1996

(6) Capital Amount

1,770.9 billion yen(7) Major Shareholders andShareholding Ratios

Sumitomo Mitsui Financial Group, Inc.

100.0%

4. Outlook
The Change is a transaction among the SMFG group and will not change the amount ofconsolidated net assets, and will not have any impact on SMFG’s consolidated financial results.

[Reference] Capital Relationship among the Related Parties<Before the Change>

SMFG

100%100%

SMBC Friend

SMBC
60%100%

SMBC Nikko

SMAM<After the Change>

SMFG

100%

SMBC

100%

100%

SMBC Nikko*

SMBC Friend*

60%

SMAM

* Tentatively scheduled to be merged inJanuary 2018End.