September 26, 2014
SMBC Nikko Securities Inc.
Announcement by Tetsuya Kubo (President & CEO) at the fall 2014 meeting ofdepartment heads and branch managers of SMBC Nikko Securities Inc.

Looking back over the first half of the year, despite some impact from the market environment, I havenoticed that a sense of unity enhanced in each branch of the sales unit, starting with the notion that thebranch manager is the face of SMBC Nikko in each region. Also, our client base has been steadily
expanding as a result of our Banking-Securities integration strategy. The corporate business,investment banking, and international business units have also observed steady performance.
The external environment, such as the macro-economic policies of the government, various legislativechanges, or unusually long period of low interest rates, urges individuals to promote a shift “fromsavings to investment” after experiencing deflation for many years. In the second half, it will be ourobjective to continue to expand our client base with an eye toward the future.
The sales unit will need to further expand its assets under management by responding to a wide rangeof clients’ needs through the consulting business, and by realizing net increases in investment trusts
and obtaining more SMAs. In order to expand the assets under management, it is critical that we not
only utilize the Banking-Securities integration, but also that we ourselves increase our assets
independently. Furthermore, to expand our client base, we will need to continue our efforts toaggressively capture NISA (Nippon Individual Saving Account) clients. We will endeavor to continue tostrengthen the Banking-Securities integration in the corporate business and investment banking units
while strengthening the sales and trading capabilities globally in the products unit and the international
business unit.
I would like to convey the following three thoughts to all of my staff.
(1) Strength in sustainability- This is the time for change. Proceeding with our tireless efforts as a team, by reviewing ourdomestic business operations, we will achieve a paradigm in our domestic marketing strategies
that prioritizes the balance of assets under management.
- A flexible mindset matters to each of us in order to develop our business culture, to accept andutilize creative and different ideas.
- To achieve this, I would like you to be open-minded to diversity, a great strength of our company
to energize our organization.

This material is an English translation of Japanese announcement made on September 26, 2014. Although the company
intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are
not guaranteed and thus you are encouraged to refer to the original Japanese document.

(2) Further improvement of business productivity- Seek to further improve business productivity by saving time through higher efficiency andsimplified rules.
(3) Compliance- Make self monitored compliance a reality, by implementing compliance under the responsibilityof each department.
On October 1, 2014, SMBC Nikko will mark the fifth anniversary of becoming a member of theSumitomo Mitsui Financial Group. Let us continue to take each step forward together, toward our lofty
ideal to become “Japan’s No. 1 full-line securities company”.

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