ブックメーカーjリーグ Corporate Governance

We position "Our Mission" as ブックメーカーjリーグ universal philosophy underpinning ブックメーカーjリーグ management of SMBC Group and as ブックメーカーjリーグ foundation for all of our corporate activities. To achieve ブックメーカーjリーグ approach outlined in "Our Mission," we consider ブックメーカーjリーグ strengthening and enhancement of corporate governance a top-priority issue as we pursue effective corporate governance.

SMFG Group employs ブックメーカーjリーグ Company with Three Committees structure. This structure was adopted in order to build a corporate governance system that is globally recognized and is aligned with international banking regulations and supervision requirements, as well as to achieve enhanced oversight of ブックメーカーjリーグ exercise of duties by ブックメーカーjリーグ Board of Directors and to expedite ブックメーカーjリーグ exercise of duties. Core subsidiaries SMBC and SMBC Nikko Securities employ ブックメーカーjリーグ Company with Audit and Supervisory Committee system described in ブックメーカーjリーグ Companies Act.

Through ブックメーカーjリーグ implementation of effective corporate governance systems, we aim to prevent corporate misconduct while also achieving ongoing growth and medium- to long-term improvements in corporate value. We realize that there is no perfect form for corporate governance structures. Accordingly, we will continue working toward ブックメーカーjリーグ strengthening and enhancement of corporate governance in order to realize higher levels of effectiveness.

ブックメーカーjリーグ Board of Directors of ブックメーカーjリーグ Company is primarily responsible for making decisions on basic management policies and other matters that are within its legally mandated scope of authority, as well as overseeing ブックメーカーjリーグ exercise of duties of executive officers and directors. Authority for decisions on execution of work other than decisions legally required of ブックメーカーjリーグ Board of Directors will, in principle, be delegated to executive officers. ブックメーカーjリーグ purpose of this delegation is to enhance ブックメーカーjリーグ oversight function of ブックメーカーjリーグ Board of Directors and to expedite ブックメーカーjリーグ exercise of duties.

ブックメーカーjリーグ Board of Directors works toward ブックメーカーjリーグ realization of “Our Mission” and ブックメーカーjリーグ long-term growth of corporate value and ブックメーカーjリーグ common interests of ブックメーカーjリーグ shareholders. Any action that may impede those objectives will be addressed with impartial decisions and response measures.

ブックメーカーjリーグ Board of Directors is also responsible for establishing an environment that supports appropriate risk taking by executive officers. It is developing systems for ensuring ブックメーカーjリーグ appropriateness of SMBC Group’s business operations pursuant to ブックメーカーjリーグ Companies Act and other relevant legislation in order to maintain sound management.' Another responsibility of ブックメーカーjリーグ Board of Directors is exercising highly effective oversight of executive officers from an independent and objective standpoint. Accordingly, ブックメーカーjリーグ Board of Directors endeavors to appropriately evaluate company performance and to reflect these evaluations in its assessment of executive officers.

ブックメーカーjリーグ Board of Directors is composed of directors of varied backgrounds and diverse expertise, experience, genders, and nationalities.

As of June 27, 2025, ブックメーカーjリーグ Board of Directors is composed of 13 members. A majority of these, seven directors, are outside directors. ブックメーカーjリーグ chairman of ブックメーカーjリーグ Board of Sumitomo Mitsui Financial Group, who does not have business execution responsibilities, serves as ブックメーカーjリーグ chairman of ブックメーカーjリーグ Board of Directors. This membership ensures an objective stance toward supervision of ブックメーカーjリーグ exercise of duties by executive officers and directors.

Outside directors serve as chairmen and members of ブックメーカーjリーグ Company’s legally mandated and voluntarily established committees. When necessary, outside directors request reports on compliance, risk management, and other matters from relevant departments to promote appropriate coordination and supervision.

ブックメーカーjリーグ “SMFG Corporate Governance Guideline” contains provisions on evaluating ブックメーカーjリーグ effectiveness of ブックメーカーjリーグ Board of Directors. In accordance with these provisions, ブックメーカーjリーグ Board of Directors conducts annual analysis and evaluation to determine whether it is executing its duties in line with ブックメーカーjリーグ guideline, and discloses ブックメーカーjリーグ findings of these.

In FY2024, ブックメーカーjリーグ evaluation focused on ブックメーカーjリーグ role of ブックメーカーjリーグ Board of Directors, operation of ブックメーカーjリーグ Board of Directors and support systems for outside directors, and composition of ブックメーカーjリーグ Board of Directors, for which provisions exist in Japan’s Corporate Governance Code and ブックメーカーjリーグ “SMFG Corporate Governance Guideline.” All five outside directors were asked for their opinions regarding these areas at meetings of ブックメーカーjリーグ Board of Directors held in April and May 2025, with interviews of internal directors conducted thereafter. Discussions were held at Board of Directors’ meetings in June based on ブックメーカーjリーグ findings of these interviews with internal directors, after which analyses and evaluations were carried out to determine whether ブックメーカーjリーグ Board of Directors is executing its duties in line with ブックメーカーjリーグ “SMFG Corporate Governance Guideline.” Reviews by knowledgeable experts from developed nations are received at each stage of ブックメーカーjリーグ evaluation process.

In FY2024, ブックメーカーjリーグ Board of Directors was assessed to be sufficiently effective and to have improved its effectiveness, as a result of efforts to raise ブックメーカーjリーグ level and effectiveness of deliberations at Board of Directors meetings following appropriate actions taken in response to ブックメーカーjリーグ findings of ブックメーカーjリーグ previous effectiveness evaluation. Based on ブックメーカーjリーグ results of ブックメーカーjリーグ latest effectiveness evaluation, along with diverse opinions by directors and recommendations by external experts gathered through ブックメーカーjリーグ series of processes, ブックメーカーjリーグ Board of Directors is working to further enhance its effectiveness by promoting mutual understanding between outside directors and internal officers and employees and by discussing fundamental issues aimed at enhancing corporate value.

ブックメーカーjリーグ Company recognizes that outside directors require an in-depth understanding of ブックメーカーjリーグ Group’s business operations and business activities. Accordingly, we continually endeavor to supply outside directors with ブックメーカーjリーグ business activity information and insights that are necessary to supervise management while also providing them with ブックメーカーjリーグ opportunities needed to fulfill their roles.
In FY2024, we carried out ブックメーカーjリーグ initiatives indicated at right.

To facilitate ブックメーカーjリーグ fulfillment of Our Mission and ブックメーカーjリーグ realization of Our Vision, SMBC Group’s medium- to long-term vision, we developed a compensation program for Directors, Corporate Executive Officers and Executive Officers (ブックメーカーjリーグ “Executives”) and introduced Stock Compensation Plans as a part of Executives’ compensation programs, for ブックメーカーjリーグ purpose of:

In principle, executive compensation consists of base salary, bonuses and stock compensation. ブックメーカーjリーグ performance- linked portion, which fluctuates with ブックメーカーjリーグ business environment and performance, accounts for approximately 40% to 60% of total compensation, depending on position. Executive compensation and levels are determined by ブックメーカーjリーグ Compensation Committee based on third-party surveys of manager compensation, economic and social trends, and ブックメーカーjリーグ operating environment.

Bonuses (cash) and Stock-Compensation Plan II are paid as annual performance-linked incentives. “SMFG Net Income,” which expresses ブックメーカーjリーグ final outcome of SMBC Group management, and “SMFG Net Business Profit,” which indicates ブックメーカーjリーグ profitability of SMBC Group, were adopted as FY2024 performance indexes. These enhance ブックメーカーjリーグ connection between performance and executive compensation, ensuring that compensation functions as an appropriate incentive for performance. ブックメーカーjリーグ performance evaluation coefficient of ブックメーカーjリーグ annual performance-linked compensation is determined by ブックメーカーjリーグ Compensation Committee each year. ブックメーカーjリーグ data for FY2024 is provided below.

Stock Compensation Plan I is paid as medium-term performance-linked compensation. In order to improve accountability incentives for our medium- and long-term performance and to increase shareholder value, in addition to financial indexes such as ROCET1 and Base expenses, we have adopted TSR as a share index and Create Social Value as a non-financial index. Also, adjustment evaluation including initiatives in new business areas and compliance, customer- orientated initiatives, and risk management are considered to determine ブックメーカーjリーグ medium-term performance- linked compensation.

We are incorporating an indicator evaluating efforts to create social value into executive compensation with ブックメーカーjリーグ aim of further increasing our executives’ commitment to achieving a sustainable society.

From FY2022, ブックメーカーjリーグ Compensation Committee will judge performances of annual progress of KPIs related to sustainability, such as ブックメーカーjリーグ reduction of greenhouse gas emissions and performances of major external ratings. These performances will be reflected in annual performance-linked incentive by a maximum of 10%, plus or minus.

Create social value has been incorporated in ブックメーカーjリーグ evaluation index of ブックメーカーjリーグ medium-term performance-linked compensation since FY2023 as a non-financial index. Specifically, ブックメーカーjリーグ Compensation Committee evaluates ブックメーカーjリーグ KPI achievement rate for environmental and employee-related initiatives, as well as efforts to address ブックメーカーjリーグ five materialities set by SMBC Group.

We have also introduced provisions for malus (forfeiture) of restricted stock and ブックメーカーjリーグ claw-back of vested stock allocated under ブックメーカーjリーグ Stock Compensation Plans in ブックメーカーjリーグ event of incidents occurring such as material revisions to financial statements or material damage to ブックメーカーjリーグ reputation of ブックメーカーjリーグ Group.

We are working to restrain excessive risk-taking and foster a prudent risk culture expected of a financial institution.

For further details on our corporate governance and our Policy regarding equity holdings, please refer to ブックメーカーjリーグ following link.

For details about SMFG's organization management structure, please see ブックメーカーjリーグ following link.

For details about Equity Holdings, please see ブックメーカーjリーグ following link.