Sumitomo Mitsui Financial Group, Inc.
(Securities Code: 8316)
Sumitomo Mitsui Banking Corporation
Nikko Cordial Securities Inc.

Sumitomo Mitsui Banking Corporation’s Acquisition of
Nikko Cordial Securities Inc. as its Wholly-Owned Subsidiary,
Commencement of Operation by Nikko Cordial Securities Inc. as Securities andInvestment Banking Company, and Establishment of Business Cooperation between
Both Companies
TOKYO, October 1, 2009 --- Sumitomo Mitsui Banking Corporation (“SMBC”, President:Masayuki Oku), a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG,President: Teisuke Kitayama) hereby announces that, pursuant to the agreement reached on May
1, 2009 among SMBC, Nikko Citi Holdings, Inc. (Chairman, Representative Director, President
and CEO: Douglas L. Peterson), a wholly-owned subsidiary of Citigroup Inc. (“Citi”,Headquarters: New York, U.S.), and other affiliates of Citi, SMBC has acquired all of the sharesof Nikko Cordial De-merger Preparatory Company Ltd. (the “Acquisition of Target Shares”),
making it a wholly-owned subsidiary of SMBC. Nikko Cordial De-merger Preparatory
Company succeeded all of the operations (excluding selected assets and liabilities) of Nikko
Cordial Securities Inc. (“Former Nikko Cordial”, President: Eiji Watanabe), which was engaged
mainly in the retail securities business (the “Retail Business”), and certain businesses, including
the domestic debt and equity underwriting businesses, of Nikko Citigroup Ltd. (“Former NikkoCiti”), which was engaged mainly in the wholesale securities business (the “WholesaleBusiness” and with the Retail Business, collectively, the “Target Businesses”), through acorporate de-merger (the “De-merger”). (As of today, Former Nikko Citi’s name has beenchanged to Citigroup Global Markets Japan Inc.)As explained below, in addition to the Target Businesses, SMBC indirectly acquired, certain
assets succeeded or transferred to Former Nikko Cordial or Nikko Cordial De-merger
Preparatory Company Ltd. from related companies of Citi through in-kind contributions, etc.
(together with the Acquisition of Target Shares, the “Transaction”) as a result of the Acquisitionof Target Shares.
As of today, Nikko Cordial De-merger Preparatory Company Ltd.’s name has been changedto Nikko Cordial Securities Inc. (President: Eiji Watanabe)

1. About the TransactionThe business environment surrounding the financial industry has been changing dramaticallysince the Lehman Brothers collapse in September 2008, as the global financial industry has
moved to realign itself, and banks and securities firms have accelerated integration activities. InJapan, there was also the amendment of firewall regulations.
In addition to such changes in the external environment, the financial and capital markets areshowing signs of normalizing as the global economic recovers, and a new financial businessmodel which boldly captures new customer needs and business opportunities for the next
generation, as well as taking into account the lessons learned from the financial crisis, isexpected to be created.
Under such changing circumstances, through the Transaction, Nikko Cordial Securities will
launch its business and be reborn as a new securities and investment banking company, with1

close collaboration between its retail and wholesale arms, as a result of its succession of all theoperations (excluding selected assets and liabilities) of Former Nikko Cordial, which alreadyfirmly establishes its domestic retail securities business, and hiring top-class, experienced
professionals from the Wholesale Business of Former Nikko Citi.
As announced on May 1, 2009, SMFG brought Nikko Cordial Securities into a member of its
group companies (the “SMFG Group”) as a wholly-owned subsidiary of SMBC so that it can
respond rapidly and effectively to changes in the business environment and capture the newbusiness opportunities arising from these changes in order to quickly establish the next pillar in
its foundation for future growth.
Going forward, by positioning Nikko Cordial Securities at the center of the SMFG Group’s
securities business strategy, SMFG plans to create a new leading financial services group which
combines customer base, stability and reliability of a commercial bank with thehighly-sophisticated securities expertise of Nikko Cordial Securities, and provide all of ourretail and wholesale customers with highly value-added products and services, based on the“Spirit of Innovation,” “Speed,” and “Solution & Execution”.

2. Collaboration between SMBC and Nikko Cordial Securities(1) Collaboration in the Retail Business
By adding Nikko Cordial Securities as a new SMFG Group member, SMFG’s retailplatform will expand to JPY 65 trillion in financial assets under account, with approximately
9,800 sales personnel at 600 locations nationwide.
On the strength of this platform, we will respond to the various needs of our customers bystrengthening the SMFG Group’s retail financial business through the introduction ofconsulting know-how established over the years and new products and services developed
through cooperation between SMBC and Nikko Cordial Securities.
Specific cooperative projects planned between the two companies in the retail businessare as follows:1) Sale of Investment Trust Products by SMBC and Nikko Cordial Securities
Today, SMBC and Nikko Cordial Securities begin providing new investment products
developed jointly by the two companies that aim to capture new global economic trends.
SMBC and Nikko Cordial Securities will jointly develop and provide superior products.
2) Joint Seminars
Starting from October 3, 2009, joint seminars, co-sponsored by SMBC and Nikko
Cordial Securities, will be held in Tokyo, at the Tokyo International Forum, continued inother cities as Yokohama, Nagoya and Osaka. Each seminar will include keynote
speeches by notable figures that have extensive experience and deep insights in botheconomics and politics, and a briefing by a Nikko Cordial Securities’ strategist on therecent investment environment and market forecasts and updates.
3) Referral Services for Customers
We will start referral services between SMBC and Nikko Cordial Securities. SMBC
will introduce its customers to Nikko Cordial Securities upon customer’s request, andNikko Cordial Securities will refer to SMBC its customers who have mortgage loan needs,for example.
2We will deliver optimal financial products and services tailored to the needs ofcustomers both at SMBC and Nikko Cordial Securities.
4) Placing New ATMs on the Branches of Nikko Cordial Securities
ATMs that accept SMBC cash cards have been installed at the head office, Ikebukuro,
Yokohama-Ekimae, Nagoya, Osaka, and Kobe Branches of Nikko Cordial Securities andstarted operating as of today.
We plan to expand this ATM network based on customer needs.
5) OtherTargeting April 2010 or later, we intend to launch a securities intermediary businessbetween SMBC and Nikko Cordial Securities. We intend to aggressively implement
projects bridging the divide between banking and securities industries in order to offer
more convenience and higher value-added products and services to our customers.
(2) Collaboration in the Wholesale Business
Nikko Cordial Securities will start a full-line wholesale securities business by adding a
newly-launched sales & trading business and an investment banking business, including
underwriting, to be conducted mainly by employees hired from Former Nikko Citi, to thecorporate business and the M&A advisory business, which have been conducted by Former
Nikko Cordial. Also in the overseas market, by maintaining the cooperative relationshipwith Citi that was built over the years by Former Nikko Cordial, we will continue to deliver
high value-added services, such as proposals for increasing enterprise value and capitalmanagement to corporate clients.
Going forward, concurrently with our efforts to further strengthen the wholesale securities
business of Nikko Cordial Securities, we will pursue an integrated business model between
banking and securities activities based on the close cooperation between SMBC and Nikko
Cordial Securities and will provide high-quality services to a broad range of customers,from global companies to small and medium-sized enterprises, that bridge the divide
between banking and securities industries.
For the present, we will actively refer to Nikko Cordial Securities to the SMBC’s
corporate clients who wish to engage Nikko Cordial Securities to assist, for example, in theissuance and/or investment of stocks/fixed income securities, and we will also provide
optimal products and services tailored to the needs of our clients in cooperation with Nikko
Cordial Securities. We have established “The SMBC Desk” at Nikko Cordial Securities as
the point of contact for the integration of our banking and securities services, and it will beat the core of the development of integrated businesses model between banking andsecurities activities going forward.
Further, we will launch a securities intermediary business at SMBC in cooperation withNikko Cordial Securities and are considering establishing an organization whose staffs willserve customers concurrently as both companies in order to rapidly and steadily expand theintegrated banking and securities services business.

3. Overview of the Transaction(1) Overview
SMBC acquired the following Target Businesses and assets from Citi, etc.
3−−−−−The entire business (excluding certain assets and liabilities) of Former Nikko Cordial
Certain businesses of Former Nikko Citi (including its domestic equity and debt
underwriting business)
Other subsidiaries and affiliates related to the Target Businesses (Nikko System
Solutions, Ltd., Nikko Global Wrap, Ltd., Nikko Business Systems Co., Ltd., etc.)(hereinafter the “Affiliates”)
Strategic Shareholdings
Other assets including the “Nikko” brand and related trademarks

The Acquisition of Target Shares was implemented in a manner by which SMBC obtained
Nikko Cordial Securities’ shares from Former Nikko Cordial immediately after the successionof the Target Businesses by Nikko Cordial Securities as a result of the De-merger from Former
Nikko Cordial and Former Nikko Citi.
In addition, the acquisition of the shares of the Affiliates or other assets was implemented in amanner by which Nikko Cordial Securities either (i) succeeded such shares or other assets
which had been assigned or transferred to Former Nikko Cordial from related companies of Citi
prior to the De-merger, or (ii) acquired such shares or other assets after the De-merger.
(2) Final Acquisition Price
The final acquisition price is the sum of:1) The acquisition price for the Target Shares, etc.

JPY 545.0 billion (note that
this figure will be adjusted
by the end of December,
2009, based on the net
assets, etc. of Nikko Cordial
Securities as of the effective
date of the De-merger.)2) Strategic Shareholdings

JPY 29.8 billion＊Note that JPY 201.0 billion in cash was excluded from the scope of the Transaction,and it has been retained by Former Nikko Cordial and was not transferred to Nikko
Cordial Securities.

4. Miscellaneous(1) Business Alliance with Citi with respect to the operations of Nikko Cordial Securities
Pursuant to the agreement between SMFG and Citi, announced on May 1, 2009, to enter
into an alliance agreement, we have concluded a strategic business alliance centering on
various collaborative activities between Nikko Cordial Securities and Citigroup Global
Markets Japan.
(2) Future Outlook
There is no revision to the earnings forecast for the fiscal year ending March 31, 2010 inconnection with the Transaction.

4[Reference]
1. Outline of Nikko Cordial Securities Inc.
(1) Company Name

Nikko Cordial Securities Inc.
(The company name changed from “Nikko Cordial De-merger
Preparatory Company Ltd.” as of October 1, 2009）(2) Description of PrincipalBusiness(3) Location of Head Office(4) Representative(5) Amount of Capital(6) Date of Incorporation(7) Number of Employees(8) Major Shareholders andShareholding Ratio(9) Relationship with theListed Company

Financial Instruments Business, etc.
3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo
Representative Director and President, Eiji Watanabe
JPY 10 billion
June 15, 2009
Approx. 6,400 persons*
Sumitomo Mitsui Banking Corporation 100%
CapitalRelation
Personnel
Relationship
BusinessRelationship100% owned through Sumitomo MitsuiBanking Corporation
No personnel relationship as of the end ofFY3/2009 (Former Nikko Cordial)
No specific business relationship as of the endof FY3/2009 (Former Nikko Cordial)* The figures are estimates as of September 15, 2009 and exclude contracted employees, part-timers, and temps.
Note: No financial conditions and operating results are disclosed as Nikko Cordial Securities is a newly-founded entity.

2. Operating Results and Financial Condition of Former Nikko Cordial (Non-consolidated)
FY3/2009
OperatingRevenues
Net OperatingRevenues
Operating
IncomeOrdinary
IncomeNet Income
Net Assets
Total Assets

JPY 164,135 million

1st Quarter, FY3/2010
JPY 42,496 million
JPY 41,859 million

JPY 158,942 million

JPY 10,295 million

JPY 19,685 million

JPY 11,031 million

JPY 22,158 million
JPY (3,626) million
JPY 393,392 million
JPY 1,466,956 million

JPY 8,253 million
JPY 401,681 million
JPY 1,207,438 million

3. SMFG’s Consolidated Earnings Forecast for FY3/2010 (announced on May 15, 2009) and
SMFG’s Consolidated Financial Results for the Previous Period

FY3/2010 Forecast
FY3/2009 ResultsConsolidated
Ordinary Income
JPY 3,400,000
millionJPY 3,552,843
million
5Consolidated
Ordinary Profit
JPY 510,000
millionJPY 45,311 million

Consolidated Net
Income (Loss)
JPY 220,000
million
JPY (373,456)
million