ANNUAL REPORT Year ended March 31, 2011 2011 The Trust Bank
Chuo Mitsui Trust Group and The Sumitomo Trust and Banking Group integrated to form the new trust bank group “Sumitomo Mitsui Trust Group” on April 1, 2011. We will form “The Trust Bank,” a new trust bank group with significant expertise and a wide range of capabilities in swiftly providing comprehensive solutions to our clients.
Symbol Mark The symbol mark features “Future Bloom” representing the vision of Sumitomo Mitsui Trust Group, which is “to generate new value through the combination of significant expertise and comprehensive capabilities, and to help the future of our clients and society bloom.” The four clear petals show our “Mission” to each stakeholder of clients, society, shareholders and employees. The four colors of petals represent our Codes of Conduct (“Value”): “Truthfulness and Loyalty” (natural green), “Dedication and Development” (golden orange), “Trust and Creativity” (blue green), and “Self-help and Self-discipline” (sky blue). Management Principles (“Mission”)
(I) Swiftly provide comprehensive solutions to our clients by fully utilizing the significant expertise and comprehensive capabilities. (II) Adhere to the principles of sound management based on a high degree of self-discipline with the background of “Trustee Spirit” and establish strong credibility from society. (III) Strive to fulfill all shareholder expectations by creating distinct values through fusing the various func- tions featuring the trust bank group. (IV) Offer a workplace where the diversity and creativity of its employees are more fully utilized to add value to the organization and where employees can have pride and be highly motivated in fulfilling their missions.
Ideal Model (“Vision”) —Towards “The Trust Bank”—
Based on the “Trustee Spirit” and with significant expertise and comprehensive capabilities, Sumitomo Mitsui Trust Group will create distinct values by leveraging a new business model, combining its banking, asset management and administration, and real estate businesses, and will move onto the global stage as a leading trust bank group which boasts the largest and highest status in Japan.
Codes of Conduct (“Value”)
In order to pursue the Management Principles of Sumitomo Mitsui Trust Group, the executives and employees commit themselves to comply with the six Codes of Conduct described below.
Completely Client-oriented—Truthfulness and Loyalty We will adhere to the highest degree of “Truthfulness and Loyalty” as well as credibility and sureness, and will carry out all our responsibilities for client satisfaction and comfort as our top priority.
Contribution to Society—Dedication and Development We will remain dedicated in all our efforts, with “Frontier Spirit,” and continue to contribute to society.
Realization of Organizational Capability—Trust and Creativity We will realize our organizational capabilities with full of mutual trust and creativity through improve- ment by mutual learning and continuous personal transformation of various people who share the enthusiasm for trust.
Establishment of Individuality—Self-help and Self-discipline With a spirit of self-help and self-discipline as well as a sense of ownership, we will carry out our responsibilities.
Strict Compliance with Applicable Laws and Regulations We will strictly comply with all applicable laws, rules and regulations, and will ensure that all our corpo- rate activities meet the highest standards of social norms.
Resolute Stance against Antisocial Forces We will continue to take a resolute stance against antisocial forces, which may threaten public order and the security of civil society.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 1 2 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Contents 10 2
Kazuo Tanabe President
First, we would like to extend our heartfelt thanks to all First, we would like to extend our heartfelt for all the We wish to convey our deepest sympathy Inc., and On April 1, 2011, Chuo Mitsui Trust Holdings, Based on the “Trustee Spirit” and with significant With social and economic structures undergoing signifi- Top Message Top stakeholders for your invaluable support. Earthquake, and people affected by the Great East Japan can achieve the we sincerely hope that the affected areas quickest possible recovery. Ltd., carried out The Sumitomo Trust and Banking Co., management integration through a share exchange and newly established a holding company, “Sumitomo Mitsui Trust Holdings, Inc.” expertise and comprehensive capabilities, the newly formed Sumitomo Mitsui Trust Group (the “Group”) will work to create distinct values by leveraging a new busi- ness model, combining its banking, asset management and administration, and real estate businesses, and will move onto the global stage as a leading trust bank group which boasts the largest scale and highest status in Japan. cant changes worldwide, our clients are facing increasingly advanced and complex issues concerning their financing 4 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview more soinJapanbecauseoftheMarch11earthquake.For facing increasinglyadvancedandcomplexissues,allthe undergoing significantchangesworldwide,ourclientsare Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Top Interview At atimewhensocialandeconomicstructuresare Q about theprospects ofthenewGroup. HitoshiTsunekageBanking Co.,Ltd.Chairman andPresident KazuoTanabe answerquestions agement integrationbetweenChuoMitsuiTrust Holdings,Inc.,andTheSumitomo Trust and Sumitomo MitsuiTrust Holdings,Inc.,wasestablishedonApril1,2011,asaresult oftheman- Towards “TheTrust Bank” Please explainthebackground tothemanagementintegration. we canmeetsuchclients’needs. and comprehensivecapabilitiesthatareuniquetotheGroup, provide clientswithcomprehensivesolutions. create anewtrustbankgroupthatisbetterabletoswiftly resources, whichincludepersonnelandknow-how,wecan groups’ strengthsthroughthesharingoftheirmanagement tribution oftheirclientbases.Second,byleveragingthetwo given theircomplementarynaturesintermsofregionaldis- fact thattheyareengaginginthesamebusinessesandalso possible synergyeffectsgiventheircloseaffinityduetothe groups areperfectpartnersthatcanrealizethegreatest tion basedonthefollowingconclusions.First,two Banking Group,havedecidedonthemanagementintegra- cy, pensions,assetinheritance,andbusinesssuccession. ment undertheprolongedperiodoflowinterestratepoli- about theirfuture,particularlywithregardtoassetmanage- I assumethatmanyindividualclientshavevagueanxieties strategies amidintensifyingglobalcompetition.Meanwhile, of newgrowthstrategiestotherebuildingtheirfinancial challenges, rangingfromthefinancingandformulation example, Ipresumethatcorporateclientsarefacingvarious We believethatbyfullyutilizingthesignificantexpertise Chuo MitsuiTrustGroupandTheSumitomo Top Message Special Feature on the Financial Highlights Review of Operations Management Structure Corporate Data 5 Top Interview Management Integration Top Interview Top Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report sound management based on a high degree of self-disci- sound management based on a high degree by actively engag- pline and greatly contribute to society activities. ing in corporate social responsibility (CSR) (4) For society, the Group will adhere to the principles of For society, the Group will adhere to the principles (4) Sumitomo Mitsui Trust Group expresses its vision of becoming “The Trust Bank” of becoming “The Trust its vision expresses Group Sumitomo Mitsui Trust capabilities. Please elaborate. comprehensive with significant expertise and Q tion with a new business model, creating distinct, high value-added services by combining banking, asset man- agement and administration, and real estate businesses. the diversity and creativity of its employees are more fully used to add value to the organization, and where employees can have pride and be highly motivated in fulfilling their missions. swiftly provides comprehensive solutions by making full use of its significant expertise and comprehensive capabilities. “The Trust Bank” means becoming the ultimate trust “The Trust Bank” means becoming being the ultimate We will work to earn the distinction of bank. In other words, “The Trust Bank” is a leading trust bank. In other words, “The Trust Bank” highest status in bank group, with the largest scale and and adminis- Japan, combining banking, asset management possessing signifi- tration, and real estate businesses and The Group cant expertise and comprehensive capabilities. that provides high will aim to become a trust bank group clients, sharehold- added value to all stakeholders, including ers, employees, and society. by accomplishing the trust bank, or simply “The Trust Bank,” following four objectives: For clients, the Group will serve as a trusted partner that (1) For shareholders, the Group will act as a financial institu- (2) the Group will offer a workplace where For employees, (3) 6 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview and realestate.Inaddition,weexpecttoachievecostsyn- wholesale business,assetmanagementandadministration, ucts, toindividualsandcorporateclients,housingloans, products, includinginvestmenttrustsandinsuranceprod- functions, tosuchbusinessareasassalesofinvestment 500 employees,mainlyinheadquarterswithoverlapping and realizerevenuesynergiesbyredeployingmorethan through themanagementintegration. on anextensiveandwell-balancedsalesstructurecreated bined poolofpersonnel,know-how,andstrengthsbased to realizesynergyeffectsbymakingthemostofcom- our managementresources,includingpersonnel.Weaim more preciselyandswiftlybyprovidingawidevarietyof be separatelyoperated,wecanrespondtoclients’needs under whichthebankingandtrustbusinesseshavecometo solutions incorporatingoursuperiorproductsandservices. gy istomeetclients’needsbyprovidingcomprehensive expertise andcomprehensivecapabilities,ourbasicstrate- ferent fromthoseofmegabanks.Utilizingoursignificant Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Top Interview Specifically, wewillstrengthenourmarketingcapabilities The managementintegrationhassignificantlyincreased Unlike thebusinessmodelsofotherfinancialgroups, We aimtocreateabusinessmodelthatisdistinctlydif- Q Q from otherfinancialgroups. Please explainthestrengths thatdistinguishSumitomoMitsuiTrust Group Please describethesynergy effects thatare expectedtoberealized inthefuture. networks andgroupcompanies. quarters andbranches,thereorganizationofbranch such asITsystemintegration,theconsolidationofhead- steadily implementingmeasurestorealizecostsynergies, personnel amongtheGroup’strustbanks.Wearealso and thesharingofsalesknow-howthroughanexchange measures asthemutualsupplyofproductsandservices tion ofrevenuesynergies,weareactivelypromotingsuch together asadefactoonebank.Toacceleratetherealiza- to mergeinApril2012,theyarealreadyworkingclosely branches andthereductionofvariouscosts. ergies throughtheconsolidationofheadquartersand of themanagementintegration. know-how thathavebeensignificantlyenhancedasaresult and servicesutilizingthepersonnel,salescapabilities, ture byprovidingabroadrangeofsophisticatedproducts tion businessesinanintegratedmanner. taking theoperationofbanking,trustandassetadministra- financial groupspecializedintrustbankingJapan,under- products andservicesthatareuniquetousasthesole While thethreetrustbankswithinGroupareplanned We willstrivetofurtherexpandtheGroup’ssalesstruc- Top Message Special Feature on the Financial Highlights Review of Operations Management Structure Corporate Data 7 Top Interview Management Integration Top Interview Top Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Second, we are working to achieve the early realization of Second, we are working financial sound- Third, we will work to further enhance synergy effects of the management integration. The three synergy effects of the Group—The Chuo Mitsui Trust and trust banks within the Limited; Chuo Mitsui Asset Trust and Banking Company, Sumitomo Trust and Banking Company, Limited; and The as a de facto Banking Co., Ltd.—will work closely together activities within one bank and actively conduct collaborative actively promote an the Group. At the same time, we will the implemen- exchange of personnel in order to promote Group, encourage tation of collaborative measures in the the process of the rapid sharing of know-how, and facilitate management integration. is resilient to eco- ness. We will build a balance sheet that more balanced nomic cycles by such means as constructing individuals and pro- loan portfolio by focusing on loans to balance. We moting a reduction in the cross shareholding by ensuring will also achieve enhanced financial soundness and quantity sufficient capital in terms of both quality our utmost to through accumulating earnings. By doing implement the above priority policies, we will work to establish a solid status. Priority Policies for Fiscal Year 2011 Priority Policies for Fiscal Year Strengthen fee businesses, enhance basic earnings fee businesses, Strengthen of growth and simultaneously develop new sources power, Achieve the early realization of synergy effects of effects of synergy Achieve the early realization the management integration Further enhance financial soundness 3 1 2 Please describe your priority policies for fiscal year 2011. your priority policies for fiscal Please describe Q There are three priority policies for fiscal year 2011. There are three priority strengthen fee businesses, enhance First, we will seek to earnings, we While implementing measures to increase our basic earnings power, and develop new sources of our basic earnings time. We will explore new markets and growth at the same in fee busi- expand our market shares by actively engaging sales busi- nesses, such as investment trust and insurance business, and nesses, asset management and administration have positioned as real estate business, all of which we a well-balanced loan strategic areas. In addition, we will build earnings power portfolio and strengthen the entire Group’s and credit through the promotion of loans to individuals in order to develop exposure to corporate clients. Moreover, global business new sources of growth, we will pursue a new client base. expansion, particularly in Asia, and create strategy that would We will realize a medium-term growth growth by making enable the Group to achieve sustainable new businesses increased efforts to develop and establish that will serve as new pillars of earnings. solid business will also work to establish and operate processes and IT systems. 8 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview as theconditions becomemet. raising ourenterprisevalue.We willmakerepaymentassoon ing thesynergyeffectsof managementintegrationand will raisethestockpricetoasufficient levelbysteadilyrealiz- repayment ofpublicfunds,a stock priceriseisessential.We and avoidproducingadverseeffectsonthemarket.For while takingduecaretomaintainmanagementsoundness soon aspossiblethroughsuchmethodssalesinthemarket be repaidatanearlydate,weplantocompleterepaymentas approximately 30%asofMarch31,2011). pared withthepre-managementintegrationratioof total outstandingcommonshares(asofApril1,2011)(com- funds. Theamountaccountsforapproximately12%ofthe price) inSumitomoMitsuiTrustHoldings,Inc.,aspublic thousand commonshares(worth¥200.35billionattheissue equity TierIratio”ofthesetwogroupsstoodatapproxi- enhance theirfinancialsoundness,thecombined“common and BankingGrouphavealreadybeenmakingeffortsto the endofMarch2019. raise our“commonequityTierIratio”to7%orhigherby among otherfactors.Asforaspecificbenchmark,wemust that wastriggeredbytheU.S.subprimemortgagecrisis, quantity inlightoftheexperiencesfinancialcrisis er levelofcapitalthanbeforeintermsbothqualityand bank capitaladequacy,banksarerequiredtosecureahigh- Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Top Interview In accordancewiththeprinciplethatpublicfundsshould The ResolutionandCollectionCorporationowns500,875 As ChuoMitsuiTrustGroupandTheSumitomo Under BaselIII*,anewglobalregulatorystandardon Q Q Please describeyourresponse tothenewcapitalregulations. Please describethestatusofpublicfunds. * Basel III:IIIisanewcapitalregulatorystandardthatwasannouncedby (common equityTierIratio)mustbekepthigherthanaprescribedlevel. capital componentstorisk-weightedassets,suchasinvestmentsandloans, common equityandretainedearnings,requiresthattheratioofthose be usedtocoverunexpectedlossesanddonotneedrepaid,suchas “common equityTierI,”whichiscomprisedofcapitalcomponentsthatcan uled tobephasedinstartingattheendofMarch2013.BaselIIInewlydefines intended toenhancethesoundnessofinternationallyactivebanks,issched- the BaselCommitteeonBankingSupervisioninDecember2010.III, ital efficiency. to maximizeshareholderprofitsbypursuingenhancedcap- through theaccumulationofretainedearnings,andwillaim to meetthenewcapitalregulations. the endofMarch2011,indicatingthatwearewellprepared mately 8%(afterconsideringphase-inarrangements)asof 100 200 300 400 500 (Billions ofYen) Status ofPublicFunds Pu 0 We willcontinueworkingtoensureadequatecapital b lic fun March 2006 d En 432.25 s d of Market sales Market sales March 2007 July 2006 En 400.25 32.00 Preferred shares d of Buy Market sales March 200 b July 2007 acks En 363.25 37.00 d of 8 Market sales March 2009 July 200 En 200.35 8 76.50 6.40 d of 8 Buy July 200
March 2011
Common shares En b 200.35 acks d of 8 Top Message Special Feature on the Financial Highlights Review of Operations Management Structure Corporate Data 9 Top Interview Management Integration Top Interview Top Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report With uncertainty hanging over the global economic and With uncertainty hanging over the global We sincerely hope to continue receiving your support. Based on this policy, we plan to pay a dividend of ¥8 per Based on this policy, financial environment, our operating environment is growing financial environment, our operating environment impact of the Great increasingly severe as a result of the to tackle the chal- East Japan Earthquake. Even so, we aim accomplish by all lenges we face with a firm resolve to means whatever must be undertaken at this time, regardless of how much the circumstances around us change. ratio of approximately 30% in light of a comprehensive eval- ratio of approximately as our medium-term ROE target and uation of such factors environment. the strategic investment dividend common share (which translates into a consolidated ending March 2012 payout ratio of 31.5%) for the fiscal year of ¥110.0 billion on forecasted consolidated net income of negative good- (excluding the “gain on the amortization accounting). will,” which is a one-time factor in consolidated Please give a message to stakeholders. Please explain your dividend policy. Please explain Q Q Fiscal year 2011 is the first year of the new trust bank Fiscal year 2011 is the first year of the We regard the return of profits to shareholders as one of We regard the return on common To be more specific, regarding dividends group, marking a fresh start for us following the establish- group, marking a fresh start for us following year, we will under- ment of the Group. In this memorable with the process of take two major tasks: steadily proceeding of the Group’s management integration toward the merger trust banks into a new one in April 2012 and resolving imme- diate challenges, such as enhancing our capabilities of pro- viding comprehensive solutions to clients. our important management policies. Our basic policy is to our important management commensurate with business return profits to shareholders shareholders’ expectations through results. We will satisfy working to the return of profits, while simultaneously investments increase our enterprise value through strategic that will lead to new growth. dividend payout shares, we aim to ensure a consolidated Financial Highlights Terms with an asterisk are explained in “Glossary” on page 12. Top Message Top Interview
Former Chuo Mitsui Trust Holdings
In the consolidated financial results for the year ended March 31, 2011, net business profit before credit costs decreased by ¥2.0 billion year on year to ¥116.4 billion, mainly due to a decline in net interest income and related profit, despite a recovery in net fees and commissions and related profit (such as the sale fees of investment trusts and real estate brokerage fees), and an increase in net other operating profit, which includes net gains on bonds. Ordinary profit increased by ¥1.2 billion year on year to ¥84.7 billion, and net income increased by ¥0.4 billion to ¥47.2 billion, as a result of a decrease in total credit costs, mainly as a result of an improvement in the credit status of clients, which more than offset an allowance for loan losses posted after estimating the effects of the Great East Japan Earthquake. Financial Highlights • FY2010 Financial Results:
Management Integration Total Credit Costs* 4.5 (10.8) 15.3 141.7 %
Total Credit Costs* 6.7 (6.1) 12.9 209.8 %
Note: Amounts less than ¥100 million are rounded down. Management Structure
Corporate Data Consolidated Tier I Capital Ratio 11.63% 9.86% 1.77%
10 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 11 Top Interview Management Integration ter 23.6 g to sales tantial in mar- — 0.6 % 3.2 % (6.4)% 56.1 % 57.0 % 97.2 % (12.0)% (32.0)% (20.5)% (43.5)% (26.0)% (23.9)% (24.8)% 239.0 % Change Change (761.3)% (267.8)% (400.2)% Financial Highlights Financial (2,144.7)% 4 2.4% 2.8 0.7 (3.8) (1.0) (9.8) (3.4)% 30.3 48.3 51.8 1.78% 1.23% (27.5) (32.2) (23.6) (47.3) (45.6) (44.3) (55.4) (22.6) (29.9) 16.94 Billions of Yen (Unless specified otherwise) Billions of Yen (Unless specified otherwise) Change (A)–(B) Change (A)–(B) Change (A)–(B) Change (A)–(B) er non-recurring profit” which are related to domes- 10 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 8.4 7.4 5.0% (1.2) (4.2) 33.1% 21.6 9.86% 53.1 87.5 15.6 16.1 (47.9) (49.7) 30.17 127.5 13.85% 197.8 148.1 175.4 185.2 (129.2) Terms with an asterisk are explained in “Glossary” on page 12. in “Glossary” are explained with an asterisk Terms 14 7.4% (1.4) 29.7% 72.0 73.5 90.3 11.7 15.1 83.5 (28.8) (36.5) (57.7) (14.1) (22.4) 15.63% 11.09% 47.11 129.7 140.8 174.2 100.7 (128.4) FY2010 (A) FY2009 (B) FY2010 (A) FY2009 (B) FY2010 (A) FY2009 (B) March 2011 (A) 2010 (B) March The Sumitomo Trust and Banking The Sumitomo Trust (1) (1) Net Interest Income and Related Profit* Net Fees and Commissions and Related Profit* Net Trading Profit Net Other Operating Profit General and Administrative Expenses Ordinary profit declined by ¥47.3 billion year on year to ¥100.7 billion, as a result of a ¥32.2 billion increase in total subs billion, as a result of a ¥32.2 billion increase by ¥47.3 billion year on year to ¥100.7 Ordinary profit declined In the consolidated financial results for the year ended March 31, 2011, net business profit before credit costs decreased by ¥ 31, 2011, net business profit before credit results for the year ended March In the consolidated financial tic and overseas credit investment. Consolidated BIS Capital Adequacy Ratio Consolidated Tier I Capital Ratio Consolidated Dividend Payout Ratio Dividend per Share on Common Share (Yen) Net Income Total Credit Costs* Total Substantial Credit Costs Net Non-recurring Profit Ordinary Profit Extraordinary Profit Net Business Profit before Credit Costs* Total Substantial Credit Costs Return on Shareholders’ Equity Net Income per Common Share (Yen) Total Credit Costs* Net Business Profit before Credit Costs* Ordinary Profit Net Income
Financial Highlights Review of Operations Management Structure Corporate Data 13 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Topics ...... 24 Specific Measures for Integration ...... 23 Financial and Capital Strategies of Sumitomo Mitsui Trust Group Financial and Capital Strategies of ...... 22 Revenue and Financial Targets of Sumitomo Mitsui Trust Group Revenue and Financial Targets of Sumitomo ...... 22 Network of Sumitomo Mitsui Trust Group Network of Sumitomo Mitsui Trust ...... 21 Growth Strategy of Sumitomo Mitsui Trust Group Growth Strategy of Sumitomo Mitsui ...... 17 Basic Strategy and Growth Strategy of Sumitomo Mitsui Trust Group Basic Strategy and Growth Strategy . . . . . 16 Corporate Histories Leading Up to the Management Integration Corporate Histories Leading Up to ...... 14 Special Feature on the Management Integration: on Special Feature 14 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Corporate HistoriesLeadingUptotheManagementIntegration Special FeatureontheManagementIntegration: The SumitomoTrustandBanking Chuo MitsuiTrustHoldings The followingisasummaryofcorporatehistoriesleadinguptothemanagementintegration. Sumitomo MitsuiTrust Holdings,Inc.,wasestablishedonApril1,2011. The ChuoTrust&BankingCo.,Ltd. The MitsuiTrustCompany,Limited Sumitomo TrustCo.,Ltd. is established. is established. is established. 1962 1925 1924 The SakuraTrustandBankingCo.,Ltd. The MitsuiTrustandBankingCompany,Limited the businessoperationsofHokkaidoTakushoku The ChuoTrust&BankingCo.,Ltd.,tookover The ChuoTrust&BankingCo.,Ltd.,and Banking Company,Limited Bank Co.,Ltd.,intheHonshuarea. The ChuoMitsuiTrustand is established. merge tobecome 1995 2000 1998 Merged withDaiwaInternationalTrustBank, Ltd. Merged withSBTrustBankCo.,Ltd. The DaiwaBank,Limited(CurrentlyResonaLtd.) 2000 Established throughjointinvestmentwith Banking Company,Limited The ChuoMitsuiTrustand is esta The SakuraTrustandBankingCo.,Ltd.,changesto Japan TrusteeServicesBank,Ltd. 2000 Banking Company,Limited Mitsui TrustHoldings,Inc. Mitsui TrustHoldings,Inc. b Mitsui AssetTrustand lishe Bankin The ChuoMitsuiTrustan Capital participationby d is established. withthetransferofstockfrom 2000 g 2002 2002 Company,Limite
d d
s, g g
Top Message Special Feature on the in h the d
Financial Highlights Review of Operations Management Structure Corporate Data 15
Top Interview Management Integration g Bankin d g on April 1, 2012 throu nificant d g . d lishe b ; Chuo Mitsui Asset Trust an ” d ol mark implies, Co., Lt rella of Sumitomo Mitsui Trust Hol representin to help the future g b b ” e esta d b ination of si loom. b the future. to b Bankin d d which represents the d ” er the um d ilities, an b Company, Limite society is planne Future Bloom h the com g d anks un “ g d” b Future Blue, Bankin “ Symbol Mark d Corporate Color April 1, 2011 iary trust d si The Sumitomo Trust an b d Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Establishment of Establishment evokes the closeness an of our clients an ; an d ol mark features d comprehensive capa b d an the vision of Sumitomo Mitsui Trust Group, which is the vision of Sumitomo Mitsui Trust Group, ration of the sense of value that the sym enerate new value throu g g The sym er of the three su The corporate color is g to inte “ Sumitomo Mitsui Trust Bank, Limite expertise an mer Inc.: The Chuo Mitsui Trust an Company, Limite “ Sumitomo Mitsui Trust Holdings, Inc. Sumitomo Mitsui Special Feature on the Management Integration: Corporate Histories Leading Up to the Management Integration Management to the Up Leading Histories Corporate Integration: the Management on Feature Special e name to s, Inc. d g in tra d d istere g 2007 2008 Trust & Banking Co., Ltd. es its re Mitsui Trust Hol g The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Chuo Mitsui Trust Holdings, Inc. chan Merged with Barclays Global Investors Japan Chuo Mitsui Capital Company Limited Mitsui Asset Trust and Banking Company, Limited changes to The Sumitomo Trust and Banking Co., Ltd. Chuo Mitsui Asset Management Company, Limited Chuo Mitsui Asset Management Company, Limited Special Feature on the Management Integration: Basic Strategy and Growth Strategy of Sumitomo Mitsui Trust Group Top Message Top Interview Basic Strategy
(1) Provide Comprehensive Solutions, with Superior Products and Services across Business Fields Leverage the high level of expertise and a wide range of capabilities cultivated by Sumitomo Mitsui Trust Group over the years, to provide comprehensive solutions with superior products and services across various business fields to meet clients’ needs
Financial Highlights (2) Concentrate Resources on Prioritized Strategic Areas and Focus on the Pursuit of Synergies Aim to improve profitability and realize stable and sustainable growth by concentrating management resources on strategic areas where Sumitomo Mitsui Trust Group has competitiveness and expects stronger growth and business synergies across different business fields
(3) Financial Soundness and Capital Efficiency Aim to secure capital adequacy in terms of quality and quantity, maintain a sound financial position, and enhance capital efficiency through the reinforcement of fee businesses by leveraging trust functions Special Feature on the Management Integration Growth Strategy
(1) Allocate resources to businesses with high growth potential—fee businesses including trust and asset administration businesses (investment trust and insurance sales, asset management and administration, real estate business, etc.)—to develop the market and enhance market position
(2) Provide a variety of functions to the wide client base, and enhance basic profitability in the bank-
Review of Operations ing business by achieving a more balanced loan portfolio
Strengthen Enhance basic fee businesses earnings power
Make full use of high-level expertise and Make use of the client base, comprehensivepp capabilitieses which has been diversified and expanded through the integration Investment Trust and Insurance Sales • Sales of investment trust and insurance Management Structure • Fund wraps Asset Management and Administration Business Banking Business • Pension and overseas asset trust businesses (wholesale business and loans to individuals) • Investment trust management and • Loans to individuals administration • Overseas credit for Japanese corporations • Syndicated loans and asset securitization Real Estate Business • Sales of financial products • Real estate brokerage (for corporate and individual clients)
Corporate Data • Manage real estate investments and securitization of real estate
16 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 17 Top Interview Management Integration
d in d 6 oals. g iscretionary d 64.1 36.2 100.3 FY2010 and SMA* uct which is investe 5 investment d d Account is a d e g investment trust plans to match the d 30.2 22.0 52.2 FY2009 uct whose investment policy is customize ual customer. ine d d b ivi d STB s risk tolerance an ’ investment pro multiple, com for each in customer 0 CMTB 75 50 25 5 Discretionary investment pro 5 6 The Separately Mana 100 * * Balance of Fund Wrap* (Billions of Yen) Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Not only will we further leverage the product develop- Not only will we further leverage the 2.2 2.1 4.4 1.1 (2) Strengthen Consulting Capabilities the investment trust ment and sales support capabilities of we will also management subsidiaries in the Group, and asset strengthen our product provision capabilities (1) mutually provid- management consulting capabilities by our product ing strategic products to expand and enhance to facilitate the shar- lines, (2) encouraging staff interaction seminars, etc. In ing of know-how, and (3) holding joint increase addition to these initiatives, we will substantially which are strategic the sales staff handling fund wraps, as we work to products for high net-worth individuals, of sales to such expand our client base and the volume high net-worth individuals. Combined 4 1.2 0.7 1.9 0.4 STB* Trillions of Yen 3 1.0 1.3 2.4 0.6 CMTB* of Investment Trust and Insurance 2 One of the strengths of Sumitomo Mitsui Trust Group (the “Group”) is its fee businesses. of Sumitomo Mitsui Trust Group One of the strengths around 30% of their gross busi- the same industry earn fees that are Other companies in is higher than those of other bank fee revenue ratio, at 42%, ness profit. The Group’s the medium term, we will put spe- increase the fee revenue ratio over groups. To further insurance sales businesses, which our investment trust and cial effort into expanding in terms of sales volume. positions among Japanese banks have one of the leading and Sales Volume*
1
and Insurance Sales Strategy Of the 500 people who will be transferred from back Of the 500 people who will be transferred Investment Trust (Strengthen Fee Businesses [1]) (Strengthen Fee Businesses (Investment Trust and Insurance Sales) Net Asset Balance of Investment Trust Cumulative Insurance Sales Total *3 CMTB: Company, Limited The Chuo Mitsui Trust and Banking *4 STB: The Sumitomo Trust and Banking Co., Ltd. Balance* office sections accompanying the management integration, office sections accompanying the management to strength- 400 will be reassigned as sales representatives our sales en our sales structure. As a way to strengthen new branches, pri- channels, we are considering opening of Tokyo, Nagoya, marily in the three metropolitan areas our existing branch and Osaka, in addition to reorganizing of marketing, we networks. To enhance the effectiveness contribution pen- will utilize the sales channel for defined which trust banks sions and also workplace channels, in channel. have an advantage, as well as the Internet (1) Strengthen Marketing Capabilities Special Feature on the Management Integration: Management on the Feature Special Group Trust Mitsui Sumitomo of Strategy Growth (*1 As of March 31, 2011, *2 FY2010) 18 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview (As ofMarch31,2011) Assets underManagementofInvestmentTrust Subsidiaries Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report STBAssetManagementCo.,Ltd. NikkoAsset ManagementCo.,Ltd. *4 NikkoAM: ChuoMitsuiAsset ManagementCompany,Limited *3 STAM: ChuoMitsuiAsset TrustandBankingCompany,Limited *2 CMAM: *1 CMAB: (As ofMarch31,2011) Assets underManagementofTrustBanks(Non-consolidated) (1) Strengthen AssetManagement MarketingTargeting Special FeatureontheManagementIntegration:GrowthStrategyofSumitomoMitsuiTrustGroup will worktoincreaseourinvestorbasemorequicklybyuti- trust managementbusiness. as twoaxesresponsibleforthegrowthofourinvestment mentioned aboveandNikkoAssetManagementCo.,Ltd., newly createdinvestmenttrustmanagementsubsidiary als andcorporations.Wewillalsostrategicallydevelopthe expand andenhanceoursaleschannelstargetingindividu- will useournetworkofpartnerfinancialinstitutionsto the integratedtrustbank,whichwilllaunchinApril2012,we sales supportcapabilities.Inadditiontothebaseof how todrasticallystrengthenourproductdevelopmentand is scheduledforApril,2012.Wewillcombinetheirknow- Company, Limited,withSTBAssetManagementCo.,Ltd., Asset Management sesudrMngmn . . 3.8 1.4 2.3 Assets underManagement sesudrMngmn 442. 49.0 24.6 24.4 Assets underManagement and Administration (Strengthen FeeBusinesses[2]) Business Strategy In ouroverseasassetmanagementservicesbusiness,we The integrationofChuoMitsuiAssetManagement Retail andOverseasClients strengthen ourcapabilitiesformanagingforeignstocks,especiallyAsianstocks. these capabilitiesforindividualclientsandoverseasinstitutionalinvestors.Wewillalso investors, suchascorporatepensionfundsandpublicfunds.Wewillleverage provision ofassetmanagementandadministrationservicesfordomesticinstitutional The Grouphasachievedstrongbrandrecognitionandgainedextensiveexpertiseinthe CMAM* CMAB* 1 2 Trillions ofYen Trillions ofYen STAM* STB 3 Combined Combined + Nikko AM* (2) Strengthen ForeignStockManagementAbilities, institutions, etc. networks andformingpartnershipswithoverseasfinancial lizing theGroup’soverseasassetmanagementandsales asset managerintheAsianmarket. initiatives toestablishthestatusofGroupasatopclass foreign stocks,especiallyAsianstocks.Weaimtousethese 2010. Intheseways,wewillstrengthenourabilitytomanage company, acquiredbyNikkoAssetManagementCo.,Ltd.,in and DBSAssetManagement,aSingaporeassetmanagement asset managementcompanyinAustraliaandNewZealand, Also, wewillworkincooperationwithTyndallInvestment,an Banking, makingthisourbaseformanagementandresearch. Mitsui TrustandBankingTheSumitomo 12.8 We willintegratetheHongKongsubsidiariesofTheChuo Especially forAsianStocks 4 (As ofMarch31,2011) Administration subsidiaries Overseas AssetManagementand Asset Administration Asset Management Hong Kong U.K. Subsidiary Subsidiary CMTB Luxembourg U.S. Subsidiary Hong Kong U.S. Subsidiary Subsidiary Subsidiary STB Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 19 Top Interview Management Integration 0 100 500 400 300 200 ht) g 0.1 8 (Billions of Yen) 2 FY2010 ement (Ri g 9,493.7 Real Estate (Left) 236.7 d Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report FY2009 9,659.1 (Real Estate Securitization Business, Real Estate (Real Estate Securitization Business, Real Investment Advisory Business, etc.) 0 In the real estate securitization business, we will utilize In the real estate securitization business, ,000 Balance of Real Estate Asset Mana Balance of Securitize the expanded client base that resulted from the integra- the expanded client base that resulted services tion, and strengthen our real estate securitization will also work to for domestic and foreign investors. We operations by reduce the costs for real estate securitization systems to raise integrating the real estate administration investment advisory operational efficiency. In the real estate as a trust bank to business, we will utilize our strengths investors, especially strengthen our marketing to overseas and institutional in Asia, and also to pension funds our product investors. At the same time, we will enhance needs. planning capabilities to meet investors’ (2) Strengthen Real Estate Investment Related Services (2) 8 6,000 4,000 2,000 Balance of Securitized Real Estate, Balance of Real Estate Asset Management (Billions of Yen) 10,000 Special Feature on the Management Integration: Growth Strategy of Sumitomo Mitsui Trust Group Mitsui of Sumitomo Strategy Growth Integration: the Management on Feature Special Combined Combined STB STB The Group’s strength is that we can propose more comprehensive services of asset man- is that we can propose more comprehensive The Group’s strength engaged in real estate operations, for our clients, as we are agement and administration the two groups’ real estate infor- and trust operations. We will share as well as banking the integration, with the aim been expanded and enhanced through mation, which has putting our efforts into real transaction volume. We will also continue of increasing our investors. related services for domestic and foreign estate investment Billions of Yen Billions of Yen 3.3 4.5 7.8 10.5 17.5 28.0 CMTB CMTB Real Estate With regard to real estate or property brokerage transac- With regard to real estate or property brokerage (Strengthen Fee Businesses [3]) (Strengthen Fee Businesses Business Strategy Real Estate Trust Fees, etc. (FY2010) Revenue from Real Estate Brokerage (including brokerage subsidiaries) (FY2010) tions, The Chuo Mitsui Trust and Banking has an excellent tions, The Chuo Mitsui Trust and Banking such as investment client base of professional investors, has a strong funds, while The Sumitomo Trust and Banking the know-how of corporate client base. We will combine the volume of real both trust banks, working to expand our information estate-related information, and strengthen our sales represen- matching capabilities. We will increase and boost sales to tatives to attract new domestic investors will also build an overseas investors, especially in Asia. We by real estate market earnings structure that is less affected brokerage trans- conditions by promoting the value-added use of real actions through consulting on the effective environmental estate, as well as construction consulting, consulting, and financial and tax consulting. (1) Strengthen the Real Estate Brokerage Business (1) Strengthen the Real Estate Brokerage 20 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: (As ofSeptember30,2010) which 5thorHigherLoanProvider Number ofClientCompaniesin (1) Offer TotalSolutionsbyLeveraging theGroup’s Special FeatureontheManagementIntegration:GrowthStrategyofSumitomoMitsuiTrustGroup and expandthebalanceofcorporateloans. Mitsui TrustandBanking’sclientbase,worktomaintain loans toJapanesecorporationsoperatingoverseasinChuo financial institutions.Moreover,wewillfocusonpromoting ment truststosuchclientsasuniversities,collegesand sales ofmarket-basedfinancialproductsandprivateplace- es. Wewillalsoworkoninvestmentsales,whichinclude services, corporatepensiontrustsandM&Aadvisoryservic- loans, monetaryclaimsecuritization,stocktransferagency diverse productsandservices,whichincludesyndicated position. WewillleveragethesetooffertheGroup’s enhanced ourclientbaseandstrengthenedbusiness Total (Strengthen EarningsFoundation) Banking Business The managementintegrationdramaticallyexpandedand Ranked 1st–5th Ranked 1st–3rd Diverse Functions integration countsthecompaniesinwhicheithergroupisrankedhigher. The numberofclientcompaniesineachlendingrankbeforemanagement Strategy Pre-Management Integration Approx. Approx. Approx. 460 280 580 balanced loanportfolio. also expandhousingloanstoindividualclientsasoneofitscoreassets,andbuildamore partner” whoprovidestotalsolutionscombiningtheGroup’sdiversefunctions.Wewill ed andexpandedthroughtheintegration,enhanceourpresenceasa“strategic In thebankingbusiness,wewillutilizeourcorporateclientbase,whichwascomplement- Post-Management Integration Approx. Approx. Approx. 510 370 580 Up Approx. Up Approx. Change 50 90 Loan Portfolio (Trillions ofYen) 10 20 30 0 (2) Build theLoanPortfoliobyExpanding Loansto ance oftheentireGroup. needs, withtheaimofexpandingindividualloanbal- the useofdiversesaleschannelstomeetvariedclient client introductionactivitieswithintheGroupandmaximize fiscal year2015.Wewillalsoworktowidelypromotemutual boost individualloanstoabout30%ofourloanportfolioin housing loanstoindividualsonavaluebasisandaim ing wearetargetingabouta10%marketsharefornew solid growthinourhousingloanbalance.However,bank- strengths ofatrustbank,wehavebeenabletoachieve (exclu Loans toJapaneseCorporations Loans toIn Loans toJapaneseCorporationsOperatin By leveragingoursalesbase,whichisoneofthe Individuals d in g loanstoJapanesecorporationsoperatin d 1.4 ivi d uals (Actual) FY2010 14.0 21.4 5.9 (In Approx. Approx. Approx. Approx. FY2015 d icative) 15 25 g 2 8 Overseas g overseas) Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 21 Top Interview Management Integration 5 6 17 10 38 Branches Overlapping branches
75
Total Tokyo Metropolitan Area Total 75 (49.0%) 37 (24.2%) 20 (13.1%) 21 (13.7%) STB 153 (100.0%) branches 37
Kansai Area branches 6 4 — — 10 Total 21
Offices Other Areas Consulting Total u Area branches b 6 17 18 10 51 New York Branch Subsidiary (Asset management and global custody business) London Branch Subsidiary (Global custody business) Singapore Branch Shanghai Branch Subsidiary (Consulting business), Beijing Representative Office Subsidiary (Finance business and asset management business) Jakarta Representative Office Seoul Representative Office Bangkok Representative Office 20
Chu Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Branches Total 6 (9.8%) 23 (37.7%) 22 (36.1%) 10 (16.4%) 61 (100.0%) CMTB 5 1 — 19 25 Consulplaza 33 10 13 11 67 Branches CMTB STB New York Representative Office Subsidiary (Securities business), London Representative Office Singapore Representative Office Beijing Representative Office Subsidiary (Asset management business) An overseas network that can provide global financial services 52 (56.5%) 15 (16.3%) 14 (15.2%) 11 (12.0%) 92 (100.0%) Luxembourg Shanghai Beijing Hong Kong Others Balanced domestic branch networks, focused on the Tokyo metropolitan, Kansai and Chubu areas Balanced domestic branch networks,
Overseas Network Domestic Branch Networks Domestic Branch Asia Singapore U.S.Europe New York London Chubu Area Other Areas Total Tokyo Metropolitan Area Kansai Area (As of March 31, 2011) (As of March 31, 2011)
Chuo Mitsui Trust Group has many branches in the Tokyo Chuo Mitsui Trust and Chubu areas. The Sumitomo Trust metropolitan and many branches in the Tokyo metropoli- Banking Group has Through the management integra- tan and Kansai areas. on building a balanced network focused tion, the Group is Chubu areas. the Tokyo metropolitan, Kansai and Special Feature on the Management Integration: Management on the Feature Special Group Trust Mitsui Sumitomo of Network The Group has an overseas network that can provide global financial services, The Group has an overseas network that can provide global financial services, and a consulting business. including a loan business, an asset management and administration business, 22 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Sumitomo MitsuiTrust Group Financial andCapitalStrategiesof Special FeatureontheManagementIntegration: Sumitomo MitsuiTrust Group Revenue andFinancialTargets of Special FeatureontheManagementIntegration: remainin Assumptions: We assumethatamo Assumptions: Consoli Consoli efficiency. Wetherebyaimtomaximizeshareholderprofits. adequacy intermsofqualityandquantity,furtherstrengthenoursoundfinancialposition,enhancecapital With aviewtowardthenewBIScapitaladequacyregulations(BaselIII),ourbasicapproachistosecure The revenueandfinancialtargetsforfiscalyear2015areasfollows. Revenue Targets d d ate ate We aimatearlyrepayment, to share pricemovements,etc. (secon metho Approximately Approximately d d netincome: net Repayment of d d Public Funds b ary offerin s suchassaleinthemarket usiness profit Policy on g
b elow 1%,lon ¥220.0 ¥460.0 un he We tar g b s), correspon d dg efore cre er thecurrent re e effects) ofa d g erate economicrecovery willcontinuethrou et across sharehol g d b it costs: terminterest rates y d in g b g out 30%ofconsoli ulations asofMarch 31,2014.
Shareholdings Reduction of b b Policy on illion illion Cross d in b g Capital elow 2%,an Policy
b alance (aftera Non-consoli Consoli Financial Targets d ate d theNikkeiavera a Assumin capital ratioof10%orhi maintain aconsoli d d d ate Tier Icapital Tier equacy re year. Re our policyistotar in accor Our policyistoshare profits withsharehol payout ratioofapproximately 30%. d d d ROE: ate justin g h March 31,2016,withshortterminterest rates d g overhea thecurrent BIScapital d g g ance withtheprofit levelofeach fiscal ar g for ulations, weaimto d in g d ratio(OHR): e atthe¥14,500level. g d
d ate ivi g Dividend et aconsoli d Policy d en Tier I Tier g Approximately Approximately her. d s forcommonshares, d ate d 40 10
d ivi d d en ers
d % % Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 23 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report loans to them who have demand for borrowing at their net- works overseas. This agreement made it possible to use four overseas branch offices of The Sumitomo Trust and Banking to provide loans to corporate clients of The Chuo Mitsui Trust and Banking’s 20 branches in Japan that han- dle corporate loans. trust and insurance products, the arrangement of loans uti- trust and insurance of our domestic and overseas lizing the business know-how of our real estate branch offices, and the strengthening also working on pro- information matching function. We are of both groups moting interaction between the personnel for the early realization of synergy effects.
at times other than on weekdays from 8:45 a.m. to 6:00 p.m., and at times other than on weekdays from 8:45 a.m. p.m. Saturdays (excluding holidays) from 9:00 a.m. to 2:00 Since before the management integration on April 1, 2011, the Group has been working on various measures for the Group has been working on integration on April 1, 2011, Since before the management are described below. integration. Those specific measures of synergies from the management the early realization In February 2011, The Chuo Mitsui Trust and Banking and It previously cost ¥105 for a client of The Chuo Mitsui It previously cost ¥105 for a client of We are working to expand and enhance the products and We are working to expand 3. Execution of Banking Agency Agreement for Loans to Japanese Corporations Operating Overseas 3. Execution of Banking Agency Agreement for Loans to Japanese Corporations 2. Mutual Utilization of ATM (Automated Teller Machine) 2. Mutual Utilization of ATM (Automated 1. Initiatives to Expand and Enhance the Products and Services 1. Initiatives to Expand
Note: There is a ¥105 fee (including consumption tax) per withdrawal if used There is a ¥105 fee (including Note: Special Feature on the Management Integration: Management on the Feature Special Integration for Measures Specific The Sumitomo Trust and Banking executed a banking agency agreement for loans to Japanese corporations operating overseas. This agreement was concluded to meet needs of corporate clients of The Chuo Mitsui Trust and Banking more fully than before, by utilizing The Sumitomo Trust and Banking’s bank agency system and providing Trust and Banking to withdraw cash from an ATM of The Trust and Banking to withdraw cash from versa. Since February Sumitomo Trust and Banking, and vice withdrawals. 2011, there is no longer a charge for cash services for clients. Specifically, we are studying various ini- services for clients. and implementing tiatives for better meeting client needs, include holding these initiatives one by one. Such initiatives and enhancing our joint seminars for the clients, expanding of investment product lineup through the mutual provision 24 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview under theComprehensiveAssessmentSystemforBuildingEnvironmentalEfficiency(CASBEE). thereby workonlowCO ground andfourundergroundwillfeatureanenvironmentallyfriendlyexteriorenergy-efficientfacilities.We Chiyoda-ku, Tokyo,whichisbeingjointlydevelopedwithothercompanies.Thenewbuildingwillhave27floorsabove Sumitomo MitsuiTrustHoldings,Inc.andthenewtrustbankareanofficebuildingnowunderconstructioninMarunouchi, Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Completeimage • • Newheadofficebuildingunderconstruction Topics Special FeatureontheManagementIntegration: New HeadOfficeBuildingUnderConstruction Sumitomo MitsuiTrustBank,LimitedisscheduledtobecreatedinApril2012.Theplannedheadquarterslocationofboth 2 emissions andgreeneryinthelowerlevel,aimingtoobtainhighestclass“S”assessment Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 25 Top Interview Management Integration 1 . . . 35 . . . . 43 . . . . 30 . . . . 38 . . . . 31 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Wholesale and Retail Client Services Group/Retail Financial Services Business Wholesale and Retail Client Services Group/Retail Financial Services Business ...... 44 Wholesale and Retail Client Services Group/Wholesale Financial Services Business . . . . 46 Wholesale and Retail Client Services Group/Real Estate Business ...... 48 Specialized Departments and Units/Fiduciary Services Business ...... 50 Specialized Departments and Units/Global Markets Business ...... 52 Business Outline ...... Business Outline ...... Business Outline ...... Individual Services ...... Corporate Services ...... Asset Management Business ...... 39 Asset Administration Business ...... 4 Pension Management Services ...... 42 Group Companies ...... 53 The Sumitomo Trust and Banking Co., Ltd. (“STB”) ...... 43 Chuo Mitsui Asset Trust and Banking Company, Limited (“CMAB”) Chuo Mitsui Asset Trust and Banking ...... 38 The Chuo Mitsui Trust and Banking Company, Limited (“CMTB”) The Chuo Mitsui Trust and Banking ...... 30
(Billions of Yen) • Net Business Profit before (Billions of Yen) (%) 121.5 118.4 Credit Costs: 125.0 112.8 116.4 150.0 139.2 3.0 108.9 103.5 Profit decreased, mainly due to the shrink- Top Message Top Interview 118.3 100.0 age of the loan-deposit margin, caused by a decline in interest rates. 100.0 89.6 2.0 75.0 Net business profit before credit costs decreased 1.4 1.3 50.0 by ¥5.4 billion year on year to ¥103.5 billion on a 50.0 1.0 non-consolidated basis, and by ¥2.0 billion to ¥116.4 1.0 25.0 billion on a consolidated basis, mainly due to a decrease in net interest income and related profit, 0 0 0 FY2008 FY2009 FY2010 despite a recovery in net fees and commissions and End of End of End of related profit (such as the sales fees of investment March 2009 March 2010 March 2011 * Figures for FY2008 are based on former standards. trusts and real estate brokerage fees), as well as a Assets Classified under the Financial Reconstruction Act (Left) Ratio to Total Loan Balance (Right) CMTB+CMAB (Non-consolidated) Consolidated steady increase in net gains on bonds. Financial Highlights
(Billions of Yen) • Net Interest Income and (Billions of Yen) (Trillions of Yen) 150.0 Related Profit: 2,000 20 130.4 132.0 125.9 127.0 Profit decreased due to a decline in mar- 16.46 106.4 108.7 ket interest rates and a decrease in bond 1,500 13.80 15 100.0 balances, etc. 12.05 11.63 1,038 9.86 Net interest income and related profit decreased 1,000 891 8.74 1,119 10 by ¥19.5 billion year on year to ¥106.4 billion on a 50.0 7.3 7.5 non-consolidated basis, and by ¥18.3 billion to 500 6.7 5 ¥108.7 billion on a consolidated basis, due to a 646 742 791 smaller loan-deposit margin caused by a decline in 0 0 0 FY2008 FY2009 FY2010 market interest rates, as well as a decrease in interest End of End of End of
Special Feature on the March 2009 March 2010 March 2011
Management Integration revenues resulting from declines in balances of bond CMTB+CMAB (Non-consolidated) Consolidated portfolio and loans. Capital (Left) Tier I Capital (Left) Risk-Weighted Assets, etc. (Right) BIS Capital Adequacy Ratio (%) Tier I Capital Ratio (%)
(Billions of Yen) • Net Fees and Commissions and 125.0 118.8 Related Profit: 98.4 100.4 Profit increased on both a consolidated 100.0 91.6 and non-consolidated basis, due to a 80.2 79.1 recovery in investment trust sales and real 75.0 Review of Operations estate brokerage transactions. Glossary 50.0 Net fees and commissions and related profit increased by ¥1.0 billion year on year to ¥80.2 billion Problem assets based on the Financial 25.0 on a non-consolidated basis, and by ¥2.0 billion to Reconstruction Act ¥100.4 billion on a consolidated basis, mainly due to Assets for which disclosure is required by the 0 FY2008 FY2009 FY2010 firm investment trust sales, as well as a recovery in Financial Reconstruction Act, and which are classi- real estate brokerage transactions. fied as follows. These are generally used in refer- CMTB+CMAB (Non-consolidated) Consolidated ring to “non-performing loans.”
Loans in Bankrupt and Practically Bankrupt Loans to debtors who are legally bankrupt (due to bankruptcy, corporate reorganization or reha- bilitation proceedings, etc.), or virtually bankrupt.
Management Structure (Billions of Yen) • Net Income: 60.0 57.6 Doubtful Loans 49.4 Net income decreased due to the posting 46.8 47.2 of impairment losses as a result of stock Loans to debtors who are not legally bankrupt, 40.0 price declines and despite improved total but whose financial conditions and business credit costs. results have deteriorated, with a high likelihood 20.0 that the lender will not be able to collect the Net income decreased by ¥8.1 billion year on year to principal or receive interest in accordance with ¥49.4 billion on a non-consolidated basis, while 0 the contract. increased by ¥0.4 billion to ¥47.2 billion on a consolidat- -80.0 ed basis, mainly due to the posting of impairment loss- Substandard Loans -79.9 es for some stocks which saw substantial price declines Loans more than three months past due and -100.0 -92.0 and for which the likelihood of recovery is not expected, FY2008 FY2009 FY2010 loans whose terms have been modified to sup-
Corporate Data although total credit costs decreased, largely owing to port debtors through such means as interest an improvement in the credit status of clients, despite CMTB+CMAB (Non-consolidated) Consolidated reductions or exemptions. the allowance for loan losses posted after estimating the effects of the Great East Japan Earthquake.
26 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Review of Operations:
Terms with an asterisk are explained in “Glossary” below. o Interview Top Status of Main Businesses Message Top
• Problem Assets Based on the • Investment Trust and Insurance-related Business Financial Reconstruction Act* (Non-consolidated): (Billions of Yen) Solid growth in sales of investment trusts 30.0 and insurance, etc. Ratio to total loan balance improved to 1.0%, mainly due to a decrease in doubt- 21.7 21.4 Sales of investment trusts and insurance, etc., saw 20.0 11.1 19.3 5.6 solid growth, centering on investment trusts, with ful loans. 7.0 sales increasing by ¥210.3 billion year on year to The total balance of problem assets based on 15.7 10.0 12.3 ¥655.4 billion on a value basis. Also, fees from sales of the Financial Reconstruction Act decreased by 10.5 investment trusts and insurance, etc., grew by ¥2.0 bil- ¥28.7 billion from the end of the previous fiscal year
0 lion to ¥21.4 billion, due to increased sales of invest- Highlights Financial to ¥89.6 billion, and the ratio of problem assets FY2008 FY2009 FY2010 ment trusts, etc., on a value basis. based on the Financial Reconstruction Act to the total loan balance improved by 0.3% to 1.0%, main- Sales Fees of Insurance, etc. ly due to a decrease in doubtful loans*, resulting Sales Fees of Investment Trusts from the improvement in the credit status of clients. (Billions of Yen) 800.0 655.4 600.0 163.9 445.0 491.4 • Total Qualifying Capital, etc. 400.0 369.1 139.9 177.3 (Consolidated): 305.1 200.0 Continued to maintain sufficient levels of cap- 191.7 Integration Management pca etr nthe on Feature Special ital (in terms of both quality and quantity) 0 FY2008 FY2009 FY2010 Total qualifying capital increased by ¥80.7 billion from the end of the previous fiscal year through the Sales Volume of Insurance, etc. accumulation of retained earnings, while risk- Sales Volume of Investment Trusts weighted assets* decreased by ¥0.72 trillion, cen- tering on credit risk-weighted assets, which resulted in improvements in the consolidated capital ade- • Real Estate Business quacy ratio* by 2.66% to 16.46% and the consolidat- (Billions of Yen) (Case) Solid growth in brokerage fees, etc., due to ed Tier I capital ratio* by 1.77% to 11.63%. 15.0 300 recovery in market conditions The number of real estate brokerage transactions 10.0 9.7 180 213 200 steadily increased, thanks to a recovery in real estate 7.6 market conditions. Real estate brokerage fees 159 6.3 Operations of Review 5.0 100 increased by ¥1.2 billion year on year to ¥7.6 billion, as a result of our efforts to strengthen profitability, in 0 0 addition to an increase in the number of brokerage FY2008 FY2009 FY2010 transactions. With recovery in real estate market con- ditions, there was solid growth in the number of real Real Estate Brokerage Fees (Left) Number of Real Estate Brokerage Transactions (Right) estate brokerage transactions, and our efforts to strengthen profitability produced results. (Billions of Yen) The balance of securitized real estate decreased by 6,000.0 ¥271.7 billion from the end of the previous fiscal year, 5,180.5 5,057.8 Capital Adequacy Ratio 4,786.1 to ¥4,786.1 billion. The ratio of total qualifying capital to risk- 4,000.0 weighted assets, and one of the indicators show- aaeetSrcueCroaeData Corporate Structure Management ing the soundness of banks. Internationally 2,000.0 active banks are required to maintain the ratio at 8% or higher. 0 End of End of End of Tier I Capital Ratio March 2009 March 2010 March 2011 The ratio obtained by dividing Tier I capital Balance of Securitized Real Estate (composed of core capital, consisting primarily of the capital stock, the capital surplus, and retained earnings) by risk-weighted assets, etc. A high Tier I ratio equals a high core capital ratio, • Individual Loan* Business indicating a high quality of capital. (Billions of Yen) Ongoing active efforts for housing loans Risk-Weighted Assets, etc. 4,000.0 3,619.0 The balance of housing loans increased ¥3.9 bil- 3,368.3 3,585.5 Calculated by multiplying assets, such as loans 287.8 250.3 lion from the end of the previous fiscal year, to 3,000.0 368.0 3,331.2 3,335.1 and securities, by percentages commensurate 3,000.2 ¥3,335.1 billion, as a result of the continued active with the risk associated with each asset. 2,000.0 marketing efforts.
1,000.0
0 End of End of End of March 2009 March 2010 March 2011 Sole Proprietorships, etc. Housing Loans * Balance post-securitization
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 27
(Billions of Yen) • Net Business Profit before (Billions of Yen) (%) 250.0 241.1 Credit Costs: 200.0 2.0 176.5 201.0 Consolidated net profit decreased, mainly Top Message Top Interview 197.8 200.0 155.7 175.4 174.2 due to a decrease in non-consolidated net 150.0 1.4 1.5 interest income and related profit, despite 116.4 150.0 129.7 1.2 profit growth in group companies. 100.0 1.0 100.0 Net business profit before credit costs decreased by 0.9 ¥23.6 billion year on year to ¥174.2 billion, mainly due 50.0 0.5 50.0 to a decrease in net interest income and related profit caused by a decline in market interest rates, despite a 0 0 0 FY2008 FY2009 FY2010 recovery in net fees and commissions and related profit End of End of End of (such as the sales fees of investment trusts and real March 2009 March 2010 March 2011 Non-consolidated Consolidated estate brokerage fees), the full-year earnings contribu- Assets Classified under the Financial Reconstruction Act (Left) Ratio to Total Loan Balance (Right) tion of Nikko Asset Management, and increased earn- ings contributions by some group companies. Financial Highlights
(Billions of Yen) • Net Interest Income and (Billions of Yen) (Trillions of Yen) 200.0 188.4 Related Profit: 2,000 1,880 20 182.3 185.2 1,777 Profit decreased due to a shrinkage in the 1,682 163.8 155.9 150.0 140.8 loan-deposit margin and the disappear- 1,500 13.9 13.85 15.6315 ance of a one-time effect posted in the 11.09 12.09 12.8 12.0 100.0 previous fiscal year. 1,000 10 Net interest income and related profit decreased 9.86 7.63 50.0 by ¥44.3 billion year on year to ¥140.8 billion on a non- 500 5 consolidated basis, and by ¥32.4 billion to ¥155.9 bil- 1,061 1,266 1,333 lion on a consolidated basis, mainly due to a smaller 0 0 0 FY2008 FY2009 FY2010 loan-deposit margin caused by lower market interest End of End of End of
Special Feature on the March 2009 March 2010 March 2011
Management Integration rates, the disappearance of dividend from subsidiary Non-consolidated Consolidated that had been posted in the previous fiscal year that Capital (Left) Tier I Capital (Left) Risk-Weighted Assets, etc. (Right) resulted from a gain on retirement of perpetual subor- BIS Capital Adequacy Ratio (%) Tier I Capital Ratio (%) dinated bonds, and a decline in market-related profit.
(Billions of Yen) • Net Fees and Commissions and 200.0 Related Profit: 160.0 Profit increased on both a consolidated and 150.0 131.9 138.9 a non-consolidated basis, due to a recovery in sales of investment trusts and insurance
Review of Operations and real estate brokerage transactions. 100.0 84.6 87.5 90.3 Glossary Net fees and commissions and related profit 50.0 increased by ¥2.8 billion year on year to ¥90.3 billion Problem assets based on the Financial on a non-consolidated basis, and by ¥21.1 billion to Reconstruction Act ¥160.0 billion on a consolidated basis, due to a Assets for which disclosure is required by the 0 FY2008 FY2009 FY2010 recovery in sales of investment trusts and insurances Financial Reconstruction Act, and which are classi- and real estate brokerage transactions, and also fied as follows. These are generally used in refer- Non-consolidated Consolidated due to the full-year earnings contribution of Nikko ring to “non-performing loans.” Asset Management. Loans in Bankrupt and Practically Bankrupt Loans to debtors who are legally bankrupt (due to bankruptcy, corporate reorganization or reha- bilitation proceedings, etc.), or virtually bankrupt.
Management Structure (Billions of Yen) • Net Income: 100.0 Profit increased due to the posting of tax Doubtful Loans 83.5 effect income resulting from the reorgani- Loans to debtors who are not legally bankrupt, 80.0 73.5 but whose financial conditions and business zation of subsidiaries, despite higher total results have deteriorated, with a high likelihood 60.0 53.1 credit costs caused by the earthquake. that the lender will not be able to collect the Net income increased by ¥51.8 billion year on year 38.9 principal or receive interest in accordance with 40.0 to ¥73.5 billion on a non-consolidated basis, and by the contract. 21.6 ¥30.3 billion to ¥83.5 billion on a consolidated basis, 20.0 7.9 due to posting of tax effect income resulting from the Substandard Loans 0 reorganization of subsidiaries, despite an increase in Loans more than three months past due and FY2008 FY2009 FY2010 total substantial credit costs owing to additional loans whose terms have been modified to sup- Corporate Data allowances for loan losses, including group compa- port debtors through such means as interest Non-consolidated Consolidated nies, which were posted after estimating the effect reductions or exemptions. caused by the Great East Japan Earthquake.
28 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Review of Operations:
Terms with an asterisk are explained in “Glossary” below. o Interview Top Net Business Profit before Credit Costs, by Business Message Top
• Problem Assets Based on the (Billions of Yen) • Retail Financial Services Business 30.0 Financial Reconstruction Act* Lower profit due to shrinkage in loan- (Non-consolidated): 22.6 deposit margin Ratio to total loan balance improved to 1.2%, 19.7 Net business profit before credit costs decreased with solid decrease in the total balance. 20.0 18.1 14.9 14.9 by ¥3.7 billion year on year to ¥11.1 billion on a non- The total balance of problem assets based on the 11.1 consolidated basis, and by ¥3.2 billion to ¥14.9 billion Financial Reconstruction Act decreased by ¥20.8 bil- 10.0 on a consolidated basis, due to a decline in net inter- lion from the end of the previous fiscal year, to est income resulting from a shrinkage in the loan- ¥155.7 billion, and the ratio of problem assets based deposit margin, despite increased fees from sales of iaca Highlights Financial on the Financial Reconstruction Act to the total loan 0 investment trusts and insurance. balance improved by 0.2% to 1.2%, mainly due to a FY2008 FY2009 FY2010 decrease in the balances of doubtful loans* and Non-consolidated Consolidated substandard loans*, despite an increase in loans in bankrupt and practically bankrupt*. (Billions of Yen) • Wholesale Financial Services 120.0 Business 102.1 95.3 100.0 89.6 Lower profit due to decreased net interest 81.8 income and related profit, in addition to the • Total Qualifying Capital, etc. 80.0 disappearance of a one-time effect 61.0 63.1 (Consolidated): 60.0 Net business profit before credit costs decreased by Continued to maintain sufficient levels of cap- 40.0 ¥18.7 billion year on year to ¥63.1 billion on a non-consoli- Integration Management ital (in terms of both quality and quantity). dated basis, and by ¥12.5 billion to ¥89.6 billion on a consol- the on Feature Special Total qualifying capital increased by ¥103.5 bil- 20.0 idated basis, due to smaller net interest income and related lion from the end of the previous fiscal year through 0 profit, as well as the disappearance of a gain on sales of the accumulation of retained earnings, while risk- FY2008 FY2009 FY2010 international credit securities posted in the previous fiscal weighted assets* decreased by ¥0.8 trillion, center- year, despite favorable results in group companies. Non-consolidated Consolidated ing on credit risk-weighted assets, which resulted in improvements in the consolidated capital adequacy (Billions of Yen) • Treasury and Financial Products ratio* by 1.78% to 15.63% and consolidated Tier I 150.0 Business capital ratio* by 1.23% to 11.09%. 130.7 Lower profit, due to risk reduction in bonds 120.0 Net business profit before credit costs decreased 90.0 by ¥20.9 billion year on year to ¥46.1 billion, mainly 67.0 due to a decline in trading earnings, in addition to a eiwo Operations of Review 60.0 46.1 substantial reduction of the balances of domestic and overseas bonds in anticipation of rising interest rates. 30.0
0 FY2008 FY2009 FY2010
(Billions of Yen) • Fiduciary Services Business 40.0 Consolidated net profit increased due to Capital Adequacy Ratio 31.3 full-year earnings contribution of Nikko The ratio of total qualifying capital to risk- 30.0 27.5 28.7 weighted assets, and one of the indicators show- 24.2 Asset Management. aaeetSrcueCroaeData Corporate Structure Management ing the soundness of banks. Internationally Net business profit before credit costs increased 20.0 18.7 17.4 active banks are required to maintain the ratio at by ¥4.4 billion year on year to ¥28.7 billion on a con- 8% or higher. solidated basis thanks to the full-year earnings contri- 10.0 bution of Nikko Asset Management, while on a Tier I Capital Ratio non-consolidated basis, it decreased by ¥1.3 billion The ratio obtained by dividing Tier I capital 0 to ¥17.4 billion, mainly due to increased fees paid out (composed of core capital, consisting primarily FY2008 FY2009 FY2010 for outsourcing. of the capital stock, the capital surplus, and Non-consolidated Consolidated retained earnings) by risk-weighted assets, etc. A high Tier I ratio equals a high core capital ratio, (Billions of Yen) indicating a high quality of capital. • Real Estate Business 12.0 10.2 Higher profits on a consolidated and a non- Risk-Weighted Assets, etc. 8.9 consolidated basis due to increased broker- Calculated by multiplying assets, such as loans 9.0 age fees and securities, by percentages commensurate Net business profit before credit costs increased with the risk associated with each asset. 6.0 5.6 4.8 by ¥5.2 billion year on year to ¥8.9 billion on a non- 4.1 3.6 consolidated basis, and by ¥6.1 billion to ¥10.2 billion 3.0 on a consolidated basis, mainly due to increased real estate brokerage fees resulting from improved real 0 estate market conditions. FY2008 FY2009 FY2010
Non-consolidated Consolidated
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 29 Top Message Top Interview Financial Highlights
A trust bank that provides services for individual and corporate clients The Chuo Mitsui Trust and Banking Company, Limited Special Feature on the Management Integration
Individual Services Corporate Services
Investment Trusts Financial Services Diverse Financing Techniques Annuity Insurance Advisory Functions
Review of Operations Business Matching Deposit and Trust Products Fund-management Products Real Estate Business Investment Trust Wrap Accounts Real Estate Brokerage Real Estate Securitization Loans to Individuals Real Estate Appraisals and Assessment Real Estate Services Consulting on Effective Use of Real Estate Stock Transfer Agency Services Management Structure Testamentary and Inheritance Services Stock-related Services Advice on IPOs Practical, Stock-related Legal Assistance IT Support Services Support Services for Investor Relations Activities Corporate Data
30 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 31 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report CMTB’s individual loan business strategy aims at differ- CMTB’s individual businesses, In the real estate and testamentary-related ment trust wrap accounts) that meet clients’ diverse needs, ment trust wrap accounts) consulting services. as well as high-quality banks. CMTB provides a wide selection entiation from other its unique qualities, to meet user of products that reflect into account the different lifestyles of requirements, taking each generation. and a declining against a backdrop of the aging society expertise birthrate, CMTB applies its asset utilization the needs for effec- through high-quality consulting to meet from one gen- tive asset utilization, smooth asset succession preservation. eration to the next, and strategies for asset maintain its position in the vanguard in its market, in terms maintain its position in the vanguard in sales and annuity of the balances of both investment trust insurance sales. Individual Services
Notable Achievements in Sales of Investment Trusts and Annuity Insurance Notable Achievements in Sales of Investment CMTB handles a rich variety of investment trusts and CMTB handles a rich variety of investment The businesses for individual clients of the Chuo Mitsui The businesses for insurance-related In the investment trust and annuity Investment trusts and other securities investments are CMTB is working to expand its lineup of investment trust In May 2010, CMTB began offering the Australia Public CMTB’s Expanding Lineup of Investment Trust Products CMTB’s Expanding Lineup of Investment 2. Product and Service Outline 2. Product
1. Business Outline Review of Operations: Review Banking and Trust Chuo Mitsui The annuity insurance geared to client needs, and comple- annuity insurance geared to client needs, to accurate, high- ments these funds with expanded access CMTB is able to quality consulting services. As a result, Trust and Banking Company, Limited (“CMTB”) include Trust and Banking annuity insurance-related business, investment trust and real estate business, and testamen- individual loan business, CMTB conducts each business on the tary-related business. will strive to actively offer new products basic premise that it and services tailored to meet client needs. needs for asset man- business, responding to the increasing mass retirement of agement against the backdrop of the pension system, baby boomers and the reform of the public (investment trusts, CMTB provides a variety of products and invest- annuity insurance, deposit and trust products, attracting growing attention as a means of asset manage- ment that can be expected to deliver comparatively high profits, if managed effectively, during an extended period of low interest rates. products so that it can better accommodate clients’ increasingly diverse needs in line with changing lifestyles. and Corporate Bond Fund (the “Aussie Bond,” established and managed by Chuo Mitsui Asset Management Company, Limited), which invests in Australian public and corporate bonds, and delivers a monthly dividend payment. 32 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview by NipponLifeInsuranceCompany). Katachi” single-paymentwholelifeinsurance(underwritten Primary LifeInsuranceCompany,Limited)inJuly2010. whole lifeinsurance(underwrittenbyMitsuiSumitomo for inheritancetaxpayment. inheritance assetsandthepreparationoffundsnecessary ing moreattentionforgoalssuchasthesmoothdivisionof inheritance, single-paymentwholelifeinsuranceisattract- advanced assetmanagementexpertiseofspecialists. days, andthereareincreasingexpectationsforthe in theworld’srealestateinvestmenttrusts(REITs). Australian dollar,andBrazilianreal),eachofwhichinvests from amongfourcurrencies(Japaneseyen,U.S.dollar, Management Co.,Ltd.),whichallowsinvestorstoselect Plus,” establishedandmanagedbyNomuraAsset World REITCurrencySelectionFundseries(“World Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Review ofOperations:TheChuoMitsuiTrustandBanking Expanded LineupofSingle-PaymentWholeLifeInsurance In December2010,CMTBalsobeganoffering“Yumeno CMTB beganoffering“SekainoKajitsu”single-payment Amid growinginterestinplanningandpreparingan Market conditionsarebecomingmorecomplexnowa- In February2011,CMTBbegansellingtheNomura ing avarietyofusefulinformation ontopicsrangingfromfinancetolifestyles. and ticketsales(servicecontentvariesdependingonthetransaction balance). tial interestratesandreducedfees,informationabouttheater productions, enjoy accesstospecialinformationandvariousprivileges,including preferen- individual aggregatetransactionbalanceexceeding¥10 million.Members Best Quality CMTB alsopublishesabiannual informationmagazineformembers,offer- CMTB created“BestQuality,”amembers-onlyservicefor clientswithan Investment TrustWrapAccounts the reportingofresults. each client’smanagementneedsandrisktolerance, include thedesignofcustom-tailoredportfoliosbasedon vides comprehensiveassetmanagementservicesthat CMTB handlesinvestmenttrustwrapaccounts,andpro- Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 33 Top Interview Management Integration ), a style - α Review of Operations: The Chuo Mitsui Trust and Banking Trust Mitsui Chuo The of Operations: Review Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Responding to diversifying lifestyles and a range of retail Responding to diversifying including seminars and individual sessions arranged with Chuo Mitsui Realty, to enhance consultation services cover- ing all real estate categories. For members and special members of CMTB’s members-only “Best Quality” service who seek real estate brokerage services, CMTB maintains a preferred system that discounts brokerage fees at the time of contract signing. secured financial instrument that enables clients to acquire secured financial instrument that enables funds for any purpose of their choosing. opt into a package that carries a rider against all three opt into a package stroke and heart attack— major diseases in Japan—cancer, for cancer. and one specifically CMTB complements its housing banking requirements, of products that utilize homes as col- loans with a selection loans ( lateral. This includes home-backed card Capitalizing on Real Estate Applying Asset Utilization Expertise through High-Quality Consulting Applying Asset Utilization Expertise Home-Backed Loans for Seniors Ensure Comfort in Old Age Home-Backed Loans for Seniors Ensure Wide Variety of Loans Geared to the Lifestyles of Individuals Wide Variety of Loans CMTB maintains close ties with Chuo Mitsui Realty Co., Leading the way in the finance industry, CMTB has been Leading the way in the finance industry, CMTB provides loans to first-time homeowners for the CMTB provides loans Ltd., a member of the Chuo Mitsui Trust Group with years of experience in the market and an extensive service net- work, to precisely address all the issues that emerge in dealing with real estate from a client’s perspective. CMTB lists numerous buildings on Chuo Mitsui Realty’s website and optimizes a wide range of information opportunities, handling reverse mortgages since 2005, providing elderly handling reverse mortgages since 2005, them to maintain a homeowners with funds that enable years. In addition, comfortable lifestyle in their retirement home remodeling in October 2009, CMTB began offering principal repay- loans for older clients (with a lump-sum of home renova- ment) for use by seniors in the funding tions for improved barrier-free access. purchase or construction of a new home, the purchase of a of a new home, the purchase of purchase or construction of an older dwelling, or the refinancing home upon the sale the scope of lending choices also of a home. However, added convenience, such as an includes formats with miscellaneous expenses into a loan, as option to combine that grant borrow- well as loans with repayment provisions of unforeseen cir- ers added peace of mind in the event borrowers can cumstances, such as illness. For the latter, 34 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview information throughdisplays that canbeviewedbyclients. dures. Italsoprovidesmore detailedandtimelymarket filled inbyclientsaspartofinvestment trustrelatedproce- matically reducingtheamount ofinformationthatmustbe conduct bankingtransactions. known as“Palette”forusebyclientsvisitingbranchesto 2010. Thisnewproductenablesclientstoflexiblydesignate insurance trust)andbeganofferingthisproductinJuly developed ChuoMitsui’s“AnshinSupportTrust”(alife Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Review ofOperations:TheChuoMitsuiTrustandBanking the statedwishesofdeceased. to guaranteeaccuratedistributionofassetsaccording assistance, suchascustodyofwillsandexecutorservices wealth. CMTBalsoofferssubsequent of willsfortheexpeditioustransfer pertinent adviceonthepreparation a trustbankcanpossesstoextend the testamentarytrustexpertiseonly legal considerations.CMTButilizes all angles,includingtaxationand testamentary-related businesscovers ed byclientsintheirdailylives,forexampleattrainstations ing-oriented officesathighlyconvenientlocationsfrequent- CMTB willcontinue makingeffortstoreduce theamount Among thesystem’scapabilities isfunctionalityfordra- CMTB hasintroducedanewbranchterminalsystem Together withPrudentialLifeInsuranceCo.,Ltd.,CMTB CMTB hasestablishedanetworkof CMTB’s comprehensiveviewof Enhancing theNetworkthroughInitiativeslikeDevelopmentofDistinctiveBranchOffices Introduction ofaNewBranchTerminalSystem Jointly DevelopedAcrossIndustries Japan’s First“LifeInsuranceTrust” Consulplaza Testamentary Trusts Openings Consulplaza consult- CMTB’s reputationforitsproductdevelopmentcapability. uct tobeofferedinJapanandconsequentlyhashelpedboost function asanextrafeature,isthefirstlifeinsurancetrustprod- such proceedsaretobeused. be disbursed,howtheyaretoandtheways in advancethepartiestowhomlifeinsuranceproceedswill over manyyears. valuable informationinadditiontoexpertisedeveloped needs, leveragingtheenhancedcapabilitiestoprovide vides morerobustsupportforclients’assetmanagement of timeneededforbankingtransactions,asCMTBpro- and payinginheritancetaxonbehalfofthesuccessor. as depositsandstocks,convertingassetsintocash), registering realestate,transferringownershipofassetssuch assets andcarryingoutassociatedprocedures(including asset inventory,documentingdiscussionsofhowtodivide sor, includinginvestigatinginheritedassets,creatingan densome inheritanceproceduresonbehalfofthesucces- smooth thesuccessionprocess.CMTBcancompletebur- and commercialfacilities,suchasdepartmentstores. asset management,loans,wills,inheritance,andrealestate. home fromwork.Clientscandiscussvarioustopics,including remain openduringeveninghours,forpeoplereturning Consulplazas This product,whichincludestheflexibleassetdisbursement CMTB alsooffersinheritancecoordinationservicesto Inheritance CoordinationServices are generallyopenyear-round,andtheoffices Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 35 Top Interview Management Integration Review of Operations: The Chuo Mitsui Trust and Banking Trust Mitsui Chuo The of Operations: Review Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Real Estate Brokerage and Securitization Services Real Estate Brokerage and Securitization Comprehensive Skills of Real Estate Professionals Comprehensive Skills of Real Estate Reinforce Consultation Capabilities Real Estate Appraisals and Effective Use of Property CMTB makes full use of accumulated real estate devel- In the field of property sales and purchase for business In the field of property sales and purchase CMTB has a number of real estate specialists, including CMTB has a number Real Estate Business 2. Product and Service Outline 2. Product 1. Business Outline opment and management know-how to extend advice on the design of suitable plans for eliciting greater practical value from old buildings and idle land. CMTB also draws on the considerable expertise of its own real estate appraisers to address heightened demand for accurate assessment of property values, paralleling the move to introduce international accounting standards. use, CMTB’s seasoned professionals boast solid experi- use, CMTB’s seasoned professionals matters, ence and expertise in various real estate-related with finely tuned including taxation and law. They respond clients and take on precision to the needs of corporate the preparation of everything from structural surveys to transfers of ownership. In the area of improved balance sheet composition and funding, CMTB assists clients in creating financial strategy solutions such as securitization and other methods. real estate appraisers, on staff. Drawing on the many years real estate appraisers, accumulated by these profes- of experience and expertise is able to offer sionals and their predecessors, CMTB estate-related con- clients a comprehensive range of real including broker- sultations from various starting points, utilization and real age and securitization, effective land respond accurately estate appraisals and assessment, to companies. to demand for financial solutions for client Corporate Services Assorted Solutions to Support Clients’ Efforts to Enhance Operations Broaden Fund Supply through Varied Financing Techniques CMTB maximizes the unique characteristics inherent in a Real estate asset finance, such as non-recourse loans and Real estate asset finance, such as non-recourse CMTB For clients interested in corporate restructuring, their operations, For clients interested in revitalizing CMTB draws on a wealth of experience and expertise CMTB draws on a financing CMTB supplies funds through its diverse Financial Services 2. Product and Service Outline 2. Product 1. Business Outline trust bank to provide clients with a wide selection of corpo- rate value-enhancing solutions, from introductions that can lead to mergers and acquisitions involving business divi- sions and subsidiaries to the liquidation of assets and the restructuring of corporate real estate (CRE strategies). CMTB also presents workable business strategies, such as methods to facilitate business succession and measures to deflect hostile takeover bids. real estate securitization utilizing the real estate-managed real estate securitization utilizing the real companies, has trusts CMTB runs and special-purpose of com- numerous applications ranging from securitization projects. pany-owned properties to real estate investment increasing corpo- provides leveraged finance services for means as manage- rate value through restructuring by such ment buyouts and leveraged buyouts. throughout the cor- CMTB supplies funds to meet needs porate rehabilitation process through debtor-in-possession financing and other means. developed over its many years in the industry to provide developed over its geared to the needs of its clients. financing that is carefully including corpo- functions for a broad range of activities, rate restructuring. 36 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview consistent effortstoenhancethe contentofitsconsultations. that clientsmayhave.CMTB’s capabilitiesareenhancedby place tofacilitateresponses any realestateinvestmentneed estate investmentadvisoryand thereforehasastructurein specialized sections.CMTBis registeredasageneralreal ment andrealestateinvestmentpromotiondepartmentsas estate thattheycancountontodeliverasteadycashflow. remain keentoacquireandoperaterevenue-generatingreal corporate managementandfinancialstrategies,whileinvestors companies, realestatetransactionsstillformthebackboneof take moretime,demandforrealestateremainsfirm.Formany tion stoodatabout¥4.7trillion,asofMarch31,2011. ices ofahighcaliber.Thevaluetrustsunderadministra- to userrequirementsandoffersadministration-relatedserv- such trusts,CMTBsuggestssecuritizationschemesmatched ture ofrealestatesecuritization,andintheadministration and disposeofrealestaterepresentafundamentalstruc- of truststomanagethesubjectproperty.Trusts real estatefundsalmostalwaysincludestheestablishment fueled bydiversifyinginvestmentneeds. REIT market,aswelldemandforprivatefundformation assets throughsecuritizationofrealestate,anexpandedJ- the trendamongcompaniestoreduceandrecombine business tocapitalizeonemergingopportunities,suchas gies. CMTBisalsoreinforcingitsproposal-makingactivi- respective propertyholdingsandrelatedutilizationstrate- actively encouragingclientstoundertakeareviewof strategies isgrowing.Againstthisbackdrop,CMTB Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Review ofOperations:TheChuoMitsuiTrustandBanking CMTB designateditsrealestateinvestmentadvisorydepart- While atruerecoveryintherealestatemarketisexpectedto The formationofrealestatesecuritizationschemesand CMTB energeticallypromotesitsrealestatefund-related The importanceofrealestateincorporatemanagement Fulfill InvestmentNeedswithPertinentRealEstate Consultations Aggressively PromoteRealEstateFund-relatedBusiness Corporate RealEstateStrategies Administration ofSecuritizedRealEstateTrusts management andrealestatebusinesses. Mitsui TrustGroup’sskilledpersonnel andexpertiseintheasset estate trustbeneficiaryrights by bringingtogethertheChuo and advisoryservicesassociated withinvestmentssuchasreal operations inMarch2010,will offerinvestmentmanagement estate astheunderlyingasset.Thenewcompany,whichbegan investors securitiessuchastrustbeneficiaryrightswithreal handle theinvestmentmanagementbusinessbyoffering Mitsui TrustRealtyCompany,LimitedinNovember2009to tic andoverseasinstitutionalinvestors,CMTBestablishedChuo services hasearnedCMTBhighmarksfromtheseclients. the 35listedinvestmentcompanies.Thehighqualityofits vided assetcustodyandotheradministrationservicesto10of of listedinvestmentcompaniesandasMarch31,2011,pro- es. CMTBhasparticipatedintheestablishmentofanumber general officework,suchascorporateadministrativeprocess- well asactualcustodyoftheseassets,andtheexecution ings, includingcash,titledeedsandmarketablesecurities,as es, suchasthecreationofaccountingbooksforassethold- administration ofinvestorlistsaswellassetcustodyservic- source totrustbanksandotherfinancialinstitutionsthe ceptions ofeachclientwithregardtopropertyholdings. and theabilitytopinpointchangingneedsper- many yearsinfinancingandrealestate-relatedoperations, Integral tothisprocessistheknow-howacquiredover ties, withafocusonrealestatesalesandsecuritization. A SubsidiarytoHandletheInvestmentManagementBusiness Asset CustodyandGeneralAdministrationforListedJ-REITs J-REIT investmentcompaniesarelegallyobligatedtoout- In ordertoexpanditsassetmanagementservicesfordomes- Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 37 Top Interview Management Integration Review of Operations: The Chuo Mitsui Trust and Banking Trust Mitsui Chuo The of Operations: Review Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report (“Practices for Creating the Minutes of General (“Practices for Creating the Minutes Investor relations (IR) refers to public relations activities targeting investors, specifically the full range of activities by which corporations provide the information needed to make investment decisions to shareholders and investors in a timely, fair, and ongoing manner. Shareholder relations (SR) refers to those activities targeting shareholders. * Investor Relations (IR) and Shareholder Relations (SR) Shareholders’ Meetings, Board of Directors Meetings and Board of Auditors Meetings”) in March 2011. These pro- vide explanations on the operation of shareholders’ meet- ings based on the latest laws, using model cases and making full use of the writers’ actual experiences. lists, sending out voting notices and invitations to share- lists, sending out voting and calculating and distributing holders’ general meetings, to stock-related events, including dividends, in addition splits and the transfer of shares. capital increases, stock (JIPDEC) in July 2010. The Privacy Mark is granted to an (JIPDEC) in July 2010. The Privacy Mark taking appropriate entity who has developed a system for of personal informa- protection measures in the handling operated by tion, based on the Privacy Mark System to enhance its infor- JIPDEC. CMTB will continue working the protection of mation management system, including personal information. Jitsumu Sokai Torishimariyakukai Kansayakukai Gijiroku Sakusei no (“Stock Kabunushi Heisei 23 Nenban Investor Relations (IR)* and Shareholder Relations (SR)* Support Practical, Stock-related Legal Assistance Strengthen Information Management System in Back Office Operations Strengthen Information Management CMTB offers beneficial shareholder survey services to CMTB’s specialized staff possessing a wealth of experi- CMTB’s specialized staff possessing a CMTB outsources its back office operations to Japan CMTB outsources its back office operations Stock transfer agency services ensure swift and accurate Stock transfer agency Stock Transfer Agency Services Stock Transfer Kabushiki Jitsumu Kabunushi Sokai no Point Matters: Hints on Executing General Shareholders’ Meetings (2011 edition)”) in February 2011, and 2. Product and Service Outline 2. Product 1. Business Outline identify domestic and overseas institutional investors not listed in shareholders’ registries such as domestic institu- tional investor beneficial shareholder data creation services and foreign beneficial shareholder surveys. In addition, CMTB provides an extensive selection of services designed to offer comprehensive support for corporate IR and SR activities, including individual shareholder analysis reports. ence offer various seminars and study sessions on an indi- ence offer various seminars and study vidual basis for stock-issuing companies on such themes as the Companies Act and the handling of the general share- holders’ meeting. CMTB published Stockholders Data Service Company, Limited, a 50:50 joint Stockholders Data Service Company, Limited, Banking Co., Ltd., in venture established with Mizuho Trust is working to April 2008. Japan Stockholders Data Service services by improve its stock transfer agency-related system. The strengthening its information management Mark by Japan company was granted use of the Privacy Corporation Information Processing Development execution of a multifaceted array of corporate actions, execution of a multifaceted in of stock-issuing clients and all done assumed on behalf and taxation rules. These services accordance with legal tasks, namely, maintaining shareholder encompass annual Top Message Top Interview Financial Highlights
A trust bank that provides services for institutional investors Chuo Mitsui Asset Trust and Banking Company, Limited Special Feature on the Management Integration
Asset Management Asset Administration Pension Management Business Business Services
Employee pension fund trusts, defined benefit corporate pension trusts, tax-qualified pension trusts, national pension fund trusts
Defined contribution pension operations (asset administrators, administration managers)
Individually operated designated money trusts (shiteitan)*1
Review of Operations Money trusts other than shiteitan (moneyfund trusts) Stock buyback money trusts other than shiteitan*2 Designated composite trusts Securities management trusts
Securities investment trusts Specified money trusts (tokkin)*3 Specified money in trusts other than money trusts Investment management business Specified composite trusts Investment advisory business Managed securities trusts Management Structure Trust-style rights plans*4 Employee stock Pension Trusts ownership (ESOP) trusts*5 Securities Trusts
*1. Trusts for which the trustee has the authority to manage the entrusted funds at its own discretion within the range and type of assets designated by the trustor. *2. Trusts to facilitate the purchase of own shares (treasury stock) from the market on behalf of the trustor, i.e., the client company. This is a specified investment-style product that allows purchases at the trustee’s discretion, thereby averting possible violation of regulations by the client company concerning market manipulation and insider trading. *3. Trusts for which the trustor has full discretionary rights for management of the entrusted assets. *4. Products utilizing trust schemes that function as measures to deflect hostile takeovers. A trust is set up for equity warrants prior to the execution of subscription rights to new shares, so that if a hostile takeover bid is tabled, new shares can be issued to existing shareholders, essentially terminating the predatory action. *5. Trusts designed to function as an employee incentive by utilizing existing employee stock ownership plans. In addition to enrichment of social welfare programs, benefits Corporate Data include creation of a stable base of shareholders and effective utilization of treasury stock.
CMAB also handles other products, including money claims in trust, in addition to the products listed above.
38 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 39 Top Interview Management Integration ministration Group d Department Department Risk Management Investment Planning Investment Supervision Group Investment A y Group Group d g ement Group ement Group g g Income Group ineerin Income Group Quantitative d g Mana d ement Stu d d g ement Group Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report g Providing High-quality Products Department Department n Fixe g Mana Quantitative Investment Active Fun Fixed Income Investment Forei Passive Bon Japanese Fixe Asset Mana Passive Equity Mana Investment En Group g in d As one of the largest asset management companies in As one of the largest asset management Tra Japan, CMAB is providing high-quality products for active Japan, CMAB is providing high-quality fund managers fund management, whereby experienced compiled by top- establish funds based on research data in terms of quality class corporate and quantitative analysts which draws and quantity, and passive fund management, the 1985 launch of on years of accumulated results since to promote the passive funds, featuring domestic stock products. The process and improve the quality of related alternative company also offers a variety of high-quality including hedge funds designed to meet client needs, equity funds. funds, real estate funds, REITs, and private scale of the funds handled at Chuo Mitsui Asset Trust and scale of the funds handled in Limited (“CMAB”) is one of the largest Banking Company, the merits of this scale, as well as Japan, and CMAB utilizes group of some 200 professionals, to the talents of a skilled management performance. achieve excellent fund n Equity Group g Investment Group d Analysts Group Investment Group Investment Department Forei Equity Department Japanese Equity Group Fun Real Estate Investment Group Fund Business and Alternative y Group Group g g al Relation Group uct Plannin Investment b d General Affairs Group General Affairs Glo Pro Investment Strate Planning Department See process for fund management PLAN DO SEE → Do Function-specific Structure → Trust Fund Trust Pension Fund
Investment Department
Investment Department Consistent Fund Management Principle and Consistent Fund Management Principle
Asset Management Division Management Asset Providing Top Class Asset Management Expertise and Providing Top Class Asset Management to Meet Client Needs High-Quality Alternative Funds Designed Fund management operations at CMAB are under- Fund management operations at CMAB The Asset Management Division is responsible for about The Asset Management Asset Management Business Asset Management products. As a multi-product firm, CMAB provides diverse products. As a multi-product firm, CMAB funds, passively products, including actively managed targeting both for- managed funds and alternative funds, eign and domestic investment. pinned by a fundamental principle that prioritizes consis- pinned by a fundamental principle that to manage funds. tency and clarity in the processes used have been arranged To support this principle, operations the all-encom- into a function-specific structure paralleling passing Plan • Divisional Structure for Asset Management 2. Product and Service Outline 2. Product
1. Business Outline Review of Operations: Review Banking and Asset Trust Mitsui Chuo ¥24 trillion in funds. These funds from clients are combined in These funds from clients are combined ¥24 trillion in funds. corporate pensions, public pen- various formats, including funds, and are managed according to sions and public sector with the explicit input of clients. The proposals formulated 40 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview risk management,compliance andperformanceevaluation. asset managementoperations andaunifiedstructurefor pendent riskmanagementstructurespecificallycreatedfor a trustee.Thiscommitmentissubstantiatedbyaninde- Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Review ofOperations:ChuoMitsuiAssetTrustandBanking the diversificationofalternativeproducts. infrastructure investmentfunds,whicharearesponseto range ofcountriesinwhichinvestmentsaremade,and fying sourcesofbothriskandincomebyexpandingthe high growthoverthemediumtolongterm,whilediversi- countries acrossAsiatotakeadvantageofexpectations ucts suchasAsianequityactivefunds,whichinvestin for matchingclients’needsandthefeaturesofnewprod- performance backedbygrowthinemergingcountries. long-term perspective,orrespondingtotheneedforhigh ance, promotingdiversifiedinvestmentfromamedium-to to respondtheneedforstabilizedinvestmentperform- tion ofportfolios—onesinwhichrisk-returnisconstrained consulting servicesinregardtotheappropriatecomposi- Consultations toMeetaDiverseRangeofPortfolioNeeds In addition,toguaranteethe integrity andtransparencyof CMAB strictlyadherestotheresponsibilitiesexpectedof CMAB isextendingthescopeofitsconsultingservices Reflecting clients’variedneeds,CMABispromotingits Fulfill FiduciaryResponsibilityThroughaUnifiedRiskManagement System Advanced ConsultingCapabilitiesExercisingExpertisetotheFullestExtent New ProductConsultations such asdynamichedging. downside risksandexchangeratemanagementservices such asportfolioinsuranceagainstsignificantmarket in clients’pensionliabilities,CMABcanprovideservices development approachesforaccommodatingfluctuations needs. Inadditiontoproposingportfoliomanagementand application ofinternalcontrols duringtheverificationperiod. received anSAS70auditor’s reportattestingtoeffective accordance withtheU.S.auditingstandardSAS70,and agement businessbyanexternalauditingcorporation in its services,CMABwelcomedexaminationofassetman- Group’s network. ble fundstooverseasinstitutionalinvestorsviathe Japanese stocks.CMABisalsoinvolvedinsellingapplica- foreign-owned fundsthatconcentrateinvestmentin services fornon-residentsandoffersinvestmentadviceon clients, CMABenteredthebusinessofassetmanagement needs ofindividualinvestorsaswell. through servicesforinstitutionalinvestorstomeetthe to applyrespectedfundmanagementexpertiseacquired these timesoflowinterestrates.CMABhasendeavored to theirpotentialforgeneratingrelativelyhighearningsin ment trusts,whicharepopularwithindividualclientsdue services, suchasthepromisingfieldofadviceoninvest- CMAB hasenthusiasticallyembracedinvestmentadvisory Consultations ConcerningPortfolioRiskManagement CMAB’s consultationservicesfocusonriskmanagement With aneyetowardfurthercultivatingitsbaseofnew Seeking toestablishawider,moreresilientprofitbase, Promoting NewBusinesses Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 41 Top Interview Management Integration Review of Operations: Chuo Mitsui Asset Trust and Banking and Trust Asset Mitsui Chuo of Operations: Review Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Japan Trustee Services Bank is Japan’s largest asset Japan Trustee Services Bank is Japan’s CMAB also offers the “Universe Comparison Service,” a CMAB maintains a system to monitor the execution of administrator with entrusted assets of about ¥184 trillion administrator with entrusted assets of Trustee Services as of March 31, 2011. As always, Japan services to its Bank delivers high-level asset administration by the size of clients, and utilizes the returns granted of these services all entrusted assets to make execution the more efficient. ful to risk management efforts. high-value-added method that compares the relative per- formance of one pension fund against other pension funds in a fixed universe, according to several classifications, including the pension system, such as employee pension funds and defined benefit corporate pension funds, or by the scale of invested assets. asset management operations by Japan Trustee Services Bank. The status of this monitoring system was also checked by an external auditing corporation in accordance with SAS 70 criteria and also received a report confirming effective application of internal controls during the verification period. requires swift and accurate responses to the evolving requires swift and management and reform of the globalization of fund clearing and settlement system. It also domestic securities services, including securities lend- requires higher-quality management, and sophisticated infor- ing and transition presentation of mation services, such as the integrated administration results. Online Information Access Benefiting from Transfer of Assets to Japan Trustee Services Bank Strict Application of Internal Controls and External Audits Upgrade Information Services Improve Business Efficiency Through Economies of Scale Improve Business Efficiency Through To underpin reliability and transparency in asset manage- For clients, including pension funds, which require asset Seeking to capitalize on the economies of scale in the Seeking to capitalize on the economies Asset administration and asset management are com- Asset administration Asset Administration Business Asset Administration ment operations, the business activities of Japan Trustee Services Bank were examined by an external auditing corpo- ration in accordance with the U.S. auditing standard SAS 70. The resulting SAS 70 auditor’s report demonstrated effective application of internal controls during the verification period. administration services, CMAB undertakes master record- keeping services. In addition to the collection, integration and processing of fund management data compiled by multiple asset administrators, these services facilitate time- ly and unified online access to data regarding investment status and performance evaluations as well as reports use- basic operations of asset administration, CMAB has basic operations of asset administration, assets to Japan entrusted administration of its trust Trustee Services Bank, Ltd. 2. Product and Service Outline 2. Product 1. Business Outline plementary sides of the same business coin, wherein asset plementary sides of the basic elements of asset mainte- administrators handle settlement, accounting and nance, including custody, the various assets designated for record-keeping, for to reliable and investment by fund managers. In addition increasingly precise data processing, asset administration 42 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview tion ofatotal889defined-benefitcorporatepension March 31,2011,CMABwasentrustedwiththeadministra- and maintenanceofmembersbeneficiaries.As from designofpensionsystemstoactuarialcalculations Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 2. Product andServiceOutline 1. BusinessOutline Review ofOperations:ChuoMitsuiAssetTrustandBanking status ofparticipants,”CMAB periodicallyreportsonpar- entrusting companieswho“want toknowtheinvestment to thechoicesmadebyparticipants. Tomeettheneedsof asset administration. education services,theprovisionoffinancialproducts,and operation andadministrationofpensionplans,investment implementation ofdefinedcontributionpensionplans, ing retirementbenefitschemes,adviceonthedesignand structure. CMAB’sservicesincludetheverificationofexist- enabling “one-stopshopping”withafull-scalesupport CMAB featuresafulllineofservicesaspackage, benefit obligations,thedesignofretirement sive solutionstodiverseandcomplexissuesofretirement rate executives.Indeed,thesituationrequirescomprehen- retirement benefitschemesareapriorityissueforcorpo- accounting, effortstomitigatetherisksassociatedwith plans bythattime,CMABprovidesactiveclientsupport, in March2012.Inordertocompletethetransitionnew Pension ManagementServices CMAB providesacomprehensiverangeofservices, Defined contributionpension plansoperateaccording As adefinedcontributionpensiontrusteeorganization, Following theintroductionofretirementbenefit The tax-qualifiedpensionplanwillbeabolishedbylaw Services SupportingDefinedContributionPensions Extend ComprehensiveAdviceonIndividualRetirementBenefitSchemes Support TransitionfromTax-QualifiedPensionPlanSystem anced plansanddefinedcontributionpensionplans. funds with1.93millionparticipants. funds, employeepensionandtax-qualified and otherservices. management institutionsfor theirinvestmenteducation 20 itemsinthesatisfactionevaluation onoperationaland revitalize thedefinedcontributionpensionplan. ices andadditionalfinancialproducts,aimingtofurther actively recommendsplansforongoingeducationalserv- addition, basedontheresultsofsuchreports,CMAB tion ofyields,aswellthestatusfinancialproducts.In tion, theallocationofpensioncontributions,distribu- ticipant trendanalysisregardingthestatusofassetalloca- mulated overtheyears. consulting services,drawingonextensiveexpertiseaccu- prompt provisionofdiverseinformationandfinelytailored schemes andassetmanagement. pension plan. benefit corporatepensionplanoradefinedcontribution helping themwiththeprocessoftransferringtoadefined * According tothe“OpinionSurvey ofPeopleinChargeDefined 401k EducationalSociety. Contribution CorporatePensionPlans (2010),”conductedbytheNPO CMAB isalsoactivelyengagedinservicesforcash-bal- Thanks totheseactivities,CMABrankedtop*for11of CMAB offersitsclientsoptimalsolutionsthroughthe o Interview Top o Message Top iaca Highlights Financial aaeetIntegration Management pca etr nthe on Feature Special
A trust bank that provides services for individual and corporate clients and institutional investors The Sumitomo Trust and Banking Co., Ltd.
Retail Financial Services Business Wholesale Financial Services Business Real Estate Business
Asset Securitization Arrangements, Real Estate Brokerage, Operations of Review Deposits, Real Estate Non-Recourse Loans, Real Estate Securitization- Syndicated Loans, Investment Trusts, related Business, Insurance, Project Finance, Buyout Finance, Consulting on Effective Use of Discretionary Investment Real Estate and in Construction, Management Products, Credit Investment, Real Estate Investment Loans, M&A Advisory, Advisory Services, Will Trust and Estate Settlement Services Related to Employee Services, Stock Ownership Plan (ESOP) Real Estate-related Trust Trusts and Other Corporate Operations, Second Life Support Services, Welfare Programs,
Private Banking Consulting for Corporate Clients, Real Estate Appraisal Data Corporate Structure Management Stock Transfer Agency Operations
Fiduciary Services Business Global Markets Business
Pension Trust Business Pension Plan Designing, Investment Functions Asset Management, Financial Operations, Management of Subscribers Investment Operations and Beneficiaries Client Functions Investment Management Market-making Operations, Business Marketing Operations Securities Processing Services Administrative Functions Business
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 43 Review of Operations: The Sumitomo Trust and Banking Top Message Top Interview
Wholesale and Retail Client Services Group/Retail Financial Services Business
1. Business Outline In addition to products usually handled by commercial aims to become its retail clients’ main bank for asset man- banks, such as deposits, investment trusts, annuity insur- agement and administration. ance, and housing loans, the Retail Financial Services Starting in 1977 when we placed financial consultants Business provides a wide range of products and services ahead of other banks, our staff with specialized knowledge
Financial Highlights which are only in trust banks (real estate, will trust and such as Asset Management Advisors have been providing estate settlement services), providing consulting that is complete services as an advisory partner who can be trust- customized to the needs of each individual client. The ed and relied on. Sumitomo Trust and Banking Co., Ltd. (“STB”) thereby
2. Product and Service Outline Deposits In the area of foreign currency deposits, STB offers products including a foreign currency time deposit prod- STB has a lineup of distinctive deposit instruments, uct that is available in a choice of five currencies and fea-
Special Feature on the such as “Good Select,” which, in principle, if held to tures an attractive interest and foreign exchange fee Management Integration maturity without cancellation can be offered at a favor- structure (nickname: “Gaika-Kakumei”), as well as foreign able interest rate. currency ordinary deposits.
Investment Trusts special markets, industry sectors and funds of funds, which invest in By taking advantage of having two asset management multiple investment trusts. In this companies under our wing—STB Asset Management Co., way, STB can offer the proper com-
Review of Operations Ltd. and Nikko Asset Management Co., Ltd.—we provide a bination of instruments to appro- rich variety of investment trusts products. Our targets of priately meet each client’s needs. investment range from domestic and overseas bonds and stocks to real estate investment trusts. They feature a ver- satile lineup of investment styles, including diversified investments in global bonds and stocks and investments in • Sumishin J-REIT Research Open (every month, settlement type)
Insurance insurance, and handle a wide range of client needs. For
Management Structure example, we provide consultations on preparing for living We support our clients’ affluent lifestyles and as a way costs after retirement, providing an inheritance for one’s of consulting we utilize life insurance products, such as family members, and growing assets while reducing the variable annuity insurance and single premium whole life risk of losses for assets under management. Corporate Data
44 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 45 Top Interview Management Integration • Sumishin Fund Wrap • Review of Operations: The Sumitomo Trust and Banking Trust and Sumitomo The of Operations: Review Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report various needs such as asset management, real estate uti- lization and asset inheritance. Through STB Wealth Partners Co., Ltd., we also provide consulting on inheri- tance and business succession, as we work to provide complete asset management and administration services by the entire STB Group. cution. We also offer estate settlement services to give cution. We also offer estate settlement property succession clients appropriate advice concerning we offer the and assist with various procedures. Moreover, Planning,” as asset succession planning product “Estate varied needs. part of our efforts to respond to our clients’ ing loans such as “Relay Plan Flex” consumer loans such ing loans such as “Relay Plan Flex” consumer Loan” home equity as the discretionary “Housing Card use the remain- loans for clients with housing loans, which our “Apartment ing equity in a home as collateral, and enlarge- Loan,” which provides capital for construction, apartments, ment, renovation, or refinancing of lease-use rental condominiums, etc. and a plan combining investment trusts with special interest and a plan combining investment trusts rate time deposits. We also provide a wide range of servic- es to meet client demands such as “Shintaku Sedai Kurabu”—a membership-based service that is fully loaded with financial and non-financial privileges. Wrap” as advanced management Wrap” as advanced line. services in our product Loans Private Banking Second Life Support Services Will Trust and Estate Settlement Services Discretionary Investment Management Products Discretionary Investment STB promptly to the demand for consultation responds In order to support those clients who are starting their STB provides a will trust service in which our profession- STB provides a will trust service in which Beginning with providing a wide range of asset man- STB is very highly regarded as an asset management STB is very highly on loans, primarily at 17 branch offices across Japan, on loans, primarily at 17 branch offices and at the which feature Housing Loan Centers, To meet Condominium Loan Promotion Department. we provide hous- clients’ needs in different phases of life, second life as they enter the “retirement” phase, which is one of the biggest life events, STB provides its special inter- est rate plan combining time deposits with different periods al staff including financial consultants handle everything al staff including financial consultants storage and exe- from consultation on will writing through agement products and asset administration products use- ful for asset preservation and inheritance such as business inheritance trust, we are building a system that employs a full-time relationship manager to respond to our clients’ expert by many pension funds and institutional investors. expert by many pension edge management skills and know- To provide cutting our individual clients, which have been how in this area to Financial Services Business, we cultivated by our Retail investment management prod- provide the discretionary SMA” and “Sumishin Fund ucts by including “Sumishin 46 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview through bankingandtrustoperations,STBprovidessolu- ture. Basedontherichfunctionsandexpertisegained overseas financialmarketsinaconsolidatedbusinessstruc- tions tofinancialinstitutions,non-profitorganizations,and range ofclientsfromlargetosmallandmid-sizecorpora- Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 2. Product andServiceOutline 1. BusinessOutline Review ofOperations:TheSumitomoTrustandBanking loan itselfisrepaid exclusivelyfromthecash floworiginat- carried outand theassetsaretransferred to anSPC.The purchasing realestateinwhich realestatesecuritization*is real estate* (loans andbillsdiscounted,accountsreceivable,etc.) involve splittingoffspecificassetssuchasmonetaryclaims *2 SPC:SpecialPurposeCompany *1 Realestate-relatedsecuritizationisprovidedbytheEstateBusiness. obtain beneficiaryrights)and(2)theSPC* (a methodofentrustingassetsandallowinginvestorsto ed bytheseassets,tosellinstrumentsinvestors. instruments basedupontherevenue(cashflow)generat- clients bymakingactiveuseofourtrustfunction. oped newproductsandprovidedvarioussolutionsto terms ofbothqualityandquantity.Wehavealsodevel- securitization fieldamongdomesticfinancialinstitutions in STB hascurrentlysecuredatopclasspositionintheasset actively withthedevelopmentofnewproducts.Asaresult, accounts receivabletrustsin1991andwehaveproceeded securitization arrangements.Forexample,wedeveloped assets ascollateral).STBwasanearlypioneerofasset such asanSPCandsecuritiesareissuedthattreatthese method bywhichassetsaretransferredtoacorporation Wholesale andRetailClientServicesGroup/Wholesale FinancialServicesBusiness Wholesale FinancialServicesBusinesscoversawide A realestatenon-recourseloan isaformoffinancingfor Asset securitizationarrangementsareoperationsthat Asset securitizationmethodsinclude(1)thetrustmethod we alsoprovidethefollowingproductsandservices. In additiontomakingavailabletheusualcorporateloansanddepositfacilities, Asset SecuritizationArrangements Real EstateNon-RecourseLoans 1 from theirownersandcreatingfinancial 2 method (a asset managementproducts. financial intermediarybusinessbyprovidingclientswith functions, STBisplacingeffortsinassetmanagement-type loans, makingthemostoftrustandfinancialintermediary value. Inadditiontoprovidingconventionalcorporate tions toeachclientaidinraisingenterpriseandasset able energybusinesses. ious fields,like windpowergenerationand otherrenew- capital needsofawidevariety oflong-termprojectsinvar- ration. AtSTB,werespond todomesticandoverseas ies, petrochemicalplants, and naturalresourceexplo- of powerplants,railroads,roads, ports,etc.andoilrefiner- raise fundsforinfrastructure projectssuchasthebuilding its collateraltotherelevantproject’sassets,isused from specificprojectsastherepaymentsourceandlimits as throughthesecuritizationofsuchcredits. finance. Wearealsodevelopingthecreditloanmarket,such areas suchasrealestatenon-recourseloansandbuyout clients. STBisengagedincomposingsyndicatedloans on thesamecontracts,tosatisfyfundingneedsof which jointlysupplyfundsunderthesameconditions,based consisting ofleadfinancialinstitutions,called“arrangers,” ritization projects. actively workingtoadvancegoodqualityrealestatesecu- STB, wearecooperatingwiththeRealEstateBusiness, ing fromtherealestateorproceedsonitssale.At * A typeofassetsecuritization.Thesecurityisissuedbackedbytherevenue obtained fromrealestate,suchasrentincome,itsresource. Project finance,whichemploysthecashflowgenerated A syndicatedloanisaschemefororganizingsyndicate, Syndicated Loans Project Finance Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 47 Top Interview Management Integration Review of Operations: The Sumitomo Trust and Banking Trust and Sumitomo The of Operations: Review Stock Transfer Agency Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Consulting for Corporate Clients In response to various consulting needs of corporate In response to various consulting needs Services Related to Employee Stock Ownership Plan Services Related to As solutions to various welfare-related issues of our cor- As solutions to various As an agent of record for listed companies, STB’s transfer As an agent of record for listed companies, Moreover, by deploying expert legal affairs consultants (ESOP) Trusts and Other Corporate Welfare Programs (ESOP) Trusts and clients, STB package of solutions, which organ- offers a total real estate func- ically make use of its banking, trust and to our corporate tions. We provide consulting services concerns, clients on financial matters, business restructuring consulting services and anti-takeover measures, as well as on business succession for business owners. porate clients, we actively offer new products, such as porate clients, we to revitalizing ESOP associations ESOPs, which contribute of employee participation in man- and promoting a sense saving plans, which enable the agement, and installment management burden on compa- reduction of the asset employees’ asset nies, while at the same time helping building efforts. agency service system promptly and accurately processes agency service system promptly and large amounts of clerical work such as managing sharehold- er lists, performing dividend calculations, purchasing odd lots of stock and distributing general shareholders’ meet- ing-related documents. who have thorough knowledge of stock-related matters, we are able to meet the needs of our client companies with a comprehensive system for providing consultation. This includes consultation regarding various stock-related mat- ters, such as matters related to corporate reorganization strategies, as well as IR consulting and developing defenses against hostile takeovers. M&A Advisory Buyout Finance Credit Investment STB and capital alliance advisory has positioned M&A Credit investment comprises activities aimed at con- Credit investment comprises activities STB is carrying out investment using a variety of instru- Buyout finance consists mainly of finance for the purpose Buyout finance consists activities as an effective function for enhancing enterprise value, and is actively engaging in these advisory activities related to business acquisition, contributing to the improvement of enterprise value, the sales of non-core businesses, and management buyouts, etc. structing a portfolio made up of financial instruments such structing a portfolio made up of financial a return while as loans and securities, and pursuing borrower or the attempting to control risk should the (= credit risk). financial instrument issuer go into default and a wide range of ments centered on corporate bonds, handle investment asset-backed securities. In addition, we in domestic and foreign private equity funds. of providing acquisition capital when private equity funds of providing acquisition investment purposes) acquire a compa- (unlisted shares for of a company seeks to buy out their ny, or the management single business unit of their company. own company or a buyout financing to meet clients’ vari- STB actively arranges selling noncore business groups in the ous needs, such as taking owner- course of corporate business reorganization, managed listed companies private, etc. 48 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview will providerealestate-relatedcomprehensivesolutions. izing intherealestatebusiness,RealEstateBusiness organically. Operatedbyalargestaffofpersonnelspecial- opportunities byjoiningthesethreebusinessestogether and appraisalservices).STBwilldevelopahostofbusiness estate infrastructureservices(includingrealtrusts and managementofprivaterealestatefunds),(3) management (includingREIT[realestateinvestmenttrusts] securitization andconsulting),(2)realestateinvestment (1) realestatetransactionservices(includingbrokerage, be roughlyclassifiedintothefollowingthreecategories: Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 2. Product andServiceOutline 1. BusinessOutline Review ofOperations:TheSumitomoTrustandBanking ment andoperationaftersecuritization. of termsfinancing,etc.),and(6)realestatemanage- investors), (5)fund-raisingfordebt-tranche(adjustment (4) fund-raisingforequity-tranche(solicitationof ed partiesandbuildingastructureforsecuritization), estate properties,(3)arrangement(coordinatingrelat- (1) identificationofclientneeds,(2)evaluationreal of thefollowingrealestate-securitizationoperations: ness, whichischaracterizedbytheone-stopprovision condominium sitestofactories,distributioncentersites, dle awidediversityoftransactionsrangingfromofficeand Wholesale andRetailClientServicesGroup/Real EstateBusiness The businessoperationsoftheRealEstateBusinesscan STB isapioneeroftherealestatesecuritizationbusi- In thecommercialrealestatebrokeragebusiness,wehan- providing servicesuniquetoatrustbank Working incollaborationwiththeWholesaleandRetailFinancialServicesBusinesses, Real EstateSecuritization-relatedBusiness Real EstateBrokerage • Ensurin (privatereal estatefun • RealEstateBusinessModel • Real EstateSecuritizationSchemesand small andmedium-sizedcommercialproperties. offers housingbrokerageforindividualsand Moreover, oursubsidiarySumishinRealtyCompany,Limited experience inthisfieldandourbroadinformationnetwork. commercial facilitiesandhotelsbymakinguseofourample supply toinvestors) investment mana the RoleofSTB of STB Each Department Mana Department Ori Real Estate (Real Estate)) Ori (Owners of Investment Management g (REIT an g g inal Assets g ement sta inators b • Enhanceourclientan stren • Differentiation throu le profit throu Real Estate Real EstateFun d Mana g ement g Real EstateTransfers thene Arran d g Departments composition, Corporate ement ofPrivate Business Lease b d usiness g g cooperationwithre h the ement (Brokera Transaction Services d s) g Real Estate d h constructionconsultin Consultin
(Special Purpose Real EstateBusiness b g usiness e, Securitization, Company) Development Department Assets such as Real Estate, etc. SPC • Mana • Improve competitivenessthrou g b fi real estatetrustservices rationalization an ) g ase throu d Infrastructure Services ional
Capital Liabilities uciary system g (RealEstateTrusts, Appraisal Services) ement ofcompliance, b Real Estate anks an g Real EstateFinance h g Department Structure Investments d d others Equity Investors De streamlinin Arran b d t Investors
g Providing ement Loans, etc. g g of h Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 49 Top Interview Management Integration
d d h use of g Asset company throu Security ensure management one-time passwor d d ocument is sent d er ocument is returne Internet d d Can make inquiries anytime Or er d Previous flow is reverse Previous Or asis b Review of Operations: The Sumitomo Trust and Banking Trust and Sumitomo The of Operations: Review Client aily d inquiry server Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report htly, with inquiries htly, on a g d STB’s ni d Input Department ate d server Internal processe Up Real Estate Management We also provide investors with accurate investment We also provide investors with accurate Also, we employ development-type consulting begin- Also, we employ development-type real estate market” expected With the “environmental Functions (for External Inquiries) wide variety of appraisal projects from many private-sector companies and public organizations, and is highly praised as an authoritative appraisal organization. We are capable of responding to a broad range of appraisal needs thanks to our large staff of experienced real estate appraisers. advice, and have also constructed a thorough asset man- advice, and have also constructed a thorough estate investment agement system. In the field of real Trust), Top trusts J-REIT (Japanese Real Estate Investment Nippon Steel City REIT, Inc.—established jointly by and STB—was list- Produce, Inc., Oji Real Estate Co., Ltd., progress. ed in March 2006 and has made steady • Real Estate Total Management System’s Internet Real Estate Total Management System’s • ning with construction project plans for commercial and ning with construction aimed at effective property use and distribution facilities and construction. extending to design we intend to develop environ- to expand in the future, and services, and actively mentally friendly properties and services, including related promote such businesses financial businesses. Consulting on Effective Use of Consulting on Effective Real Estate and in Construction Real Estate Appraisal Operations Real Estate-related Trust Operations Real Estate Investment Advisory Services In line with the Corporate Real Estate (CRE) strategies, STB is endeavoring to develop this business by providing STB is endeavoring to develop this business In the real estate securitization market, the need for In the real estate securitization market, With regard to the existing long-term lease land trust In the construction consulting business, STB provides In the construction management integration, accounting system changes and real estate securitization, the demand for real estate appraisal is becoming very high. STB is entrusted with a real estate investment information to investors as well as by real estate investment information to investors offering real estate determining the composition of and of its real estate- investment products that make full use judgment abilities. related information gathering power and trust services is increasing exponentially. In response, we trust services is increasing exponentially. and improve the are working to promote rationalization a real estate total efficiency of our business by means of centralizes control management system (“SMART”) that system. over the information system and accounting business, we are attempting to restructure this business in order to improve its profitability. In addition, in certain cases, we sell property in the secondary market following consultations with the consignor. comprehensive consulting services concerning the func- comprehensive consulting of buildings and the architectural tions and quality at each stage from planning through processes and costs in construction work and completion estimation, design, of its clients. order to meet the needs 50 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview approximately ¥80trillion. Co., Ltd.,whilethetotalvolumeofentrustedassetsreached Asset ManagementCo.,Ltd.andSTB lion inassetsundermanagement,includingthoseforNikko the FiduciaryServicesBusinesshadapproximately¥38tril- and arehighlyregardedbyclients.AsofMarch31,2011, expertise concerningassetmanagementandadministration teristic servicesofSTBmakeadeptuseitshigh-level tlement ofdomesticandoverseassecurities.Thesecharac- services businessprovidessuchascustodyandset- chased byindividualinvestors.Thesecuritiesprocessing planning andmanagementofmutualfundsthatcanbepur- ment servicesandinvestments,alsoperformsproduct investors, withadviceaboutawidevarietyofassetmanage- clients, includingdomesticandoverseasinstitutional investment managementbusinessprovidescorporate scriber/beneficiary managementandbenefitpayments.The pension fundoperationandmanagementsub- tem-related consultationandactualsystemplanning,to trust servicesinpackageform,rangingfrompensionsys- sion trustbusinessprovidescorporateclientswithpension and thesecuritiesprocessingservicesbusinesses.Thepen- businesses: thepensiontrust,investmentmanagement, Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report defined contributionpension plansandthenumberof negotiating withgovernment andregulatoryauthorities. agement, includinglabor-management consultationand practical supportconcerning systemintroductionandman- Moreover, inordertorealizeourclients’goals,weoffer corporate pensionsystemsortomodifyexistingsystems. cial situationsofcorporateclients,tohelpthemintroduce management strategy,aswellthepersonnelandfinan- ning consultingintheformofoptimizedplansthatreflect Pension TrustBusiness 2. Product andServiceOutline 1. BusinessOutline Review ofOperations:TheSumitomoTrustandBanking Specialized DepartmentsandUnits/FiduciaryServicesBusiness The FiduciaryServicesBusinessisconstructedfromthree Furthermore, thenumber ofcompaniesadopting providessystem plan- In thepensiontrustbusiness,STB Pension PlanDesigning • FiduciaryServicesBusinessModel and pensionbeneficiaries. isabletomeettheneedsofbothbusinessowners STB ment. Byenhancingthequality ofsuchservicesinthisway, which focusonfinancialplanning fortheyearsafterretire- investment, an“AdvancedInvestmentEducationCourse,” enhanced convenience,andbyofferingseminarsonasset simulations throughanInternet-basedservicefor have upgradedthequalityofourservicesbyproviding ing increasinglydiversified.Inresponsetosuchtrends,we administration servicesrequiredbyourclientsarebecom- addition, overtheyears,typesofoperationand pension beneficiarieshavebeensteadilyincreasing.In (System) MultiPlan (Management) SecuritiesProcessing FunctionsIncludingGlobalCustodyService Qualifie Benefits System Define Pension Plans Pension Plans Cash Balance Contri Fun Employees Retirement Corporate Solution Define Pension System Needs d Plan System d d b Benefit Pension ution Support forChoosinganOptimumPlanorProduct d Product Composition In-House Managed Thorough ConsultingFunctions,From Total Support (Management) OpenPlatform-Type Functions Products Operation &Management Pension SystemDesignto Multi-Product Mix Externally Managed Product Provision Functions Products Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 51 Top Interview Management Integration Others Review of Operations: The Sumitomo Trust and Banking Trust and Sumitomo The of Operations: Review Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Management of Subscribers and Beneficiaries Management of Subscribers STB provides a variety of retirement benefit services STB provides a variety of retirement Through Japan Pension Operation Service, Ltd., a com- Through Japan Pension Our securities custody services in Japan are provided Also, through our overseas subsidiaries in the United including various liability assessment services based on including various liability assessment and retirement retirement benefit accounting standards benefit trusts. pany we established together with Mizuho Trust and pany we established (“Mizuho Trust”), we perform services Banking, Co., Ltd. plan administration, subscriber such as corporate pension administration and and beneficiary record-keeping By combining the human resources allowance payments. and Mizuho Trust, we deliver a high and know-how of STB using a state-of- level of service promptly and efficiently, risk manage- the-art system complemented by a thorough ment system. supports the strength of our pension trust business together supports the strength of our pension trust us to succinctly grasp with consulting strengths, which allows we careful- our clients’ asset management needs. Moreover, from other financial ly select high-quality products available institutions, such as real estate funds or hedge funds, and provide them in combination with our own products. This is another distinctive feature of STB. through Japan Trustee Services Bank, Ltd., which is a joint venture by STB, Resona Bank, Ltd., and Sumitomo Mitsui Trust Holdings, Inc. States and Luxembourg, we have developed the global custody service concerning overseas securities investment. Asset Management The pension asset management services provided by The pension asset STB’s business manages investment management Our asset management products, managed by our expe- The securities processing services business safely stores STB begin with consulting, in which we discuss with the STB begin with consulting, and the most appropriate course of client their objectives Through these consultations, we asset management. of the assumed environ- come to a shared understanding such as interest rate rises and stock ment and risk factors which we offer asset manage- price declines, following needs. In addition, ment products in line with the client’s optimized combina- we propose products to our clients as both in-house tions of our rich product offering, including from other developed products and products available financial institutions. entrusted assets and offers an investment advisory service entrusted assets and offers an investment and overseas insti- for corporate clients, such as domestic tutional investors, and individual clients. rienced analysts and fund managers, have obtained high evaluations from clients and even specialized agencies such as asset management consulting companies. This rich lineup Investment Management Business securities in which our clients have invested and provides, both in Japan and overseas, a wide range of services relat- ed to securities processing, such as trading settlement, interest and dividend collection, preparing reports for clients regarding the status of asset management and cus- tody and securities lending. Securities Processing Services Business 52 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview operations andmarketingoperations. vidual andcorporateclients,includemarket-making tions. Theclientfunctions,providingservicetobothindi- comprised offinancialoperationsandinvestmentopera- administrative functions.Theinvestmentfunctionsare ly dividedintoinvestmentfunctions,clientfunctionsand Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report execute thenecessaryhedgingoperations. measure marketrisksfacedbySTB,decideourpolicy,and spective. Weanalyzemarketandeconomicconditions, in ordertosecurestableearningsfromacompany-wideper- Investment Functions 2. Product andServiceOutline 1. BusinessOutline Review ofOperations:TheSumitomoTrustandBanking holding period,andallocatethemasintelligentlypossible. business intothreedimensionsofstrategy,capabilityand derivatives. Tomaximizeprofit,wecategorizetheinvestment bonds, stocks,credits,realestates,commodities,andtheir wide varietyoffinancialinstrumentssuchascurrencies, Specialized DepartmentsandUnits/GlobalMarketsBusiness The functionsoftheGlobalMarketsBusinessarebroad- Financial operationsareintendedtomanagemarketrisks, Through ourproprietarytradingoperations,weinvestina Synergies betweenthethreefunctionshelpprovidevarioustypesofaddedvaluetoclients Investment Operations Financial Operations • Global MarketsBusinessModel and settlement transactions. correctly processcomplexand largevolumeadministration provideshigh-qualityadministrativeservices to tions. STB and settlementoftransactions formarket-makingtransac- Administrative Functions products bymakingfulluseofourfinancialtechnology. to supplyhigh-quality,low-priced,market-basedfinancial and foreignexchange-relatedtransactions.Wealsowork intermediary servicestoclientsforinterestratederivatives needs inatimelymannerandatanappropriateprice. products andfinancialconsultingservicesthatmatchclient providesmarket-basedfinancial Client ServicesGroup,STB Client Functions Administrative functionsplay aroleofadministration ncnutn aktmkn prtos T provides In conductingmarket-makingoperations,STB In closecooperationwithourWholesaleandRetail AdministrativeClient Investment Functions Functions Functions Market-makin Investment Operations Marketin Settlement Functions Financial Operations Market- Interme Mana Transactions an Pursuin Sumitomo Trust Proprietary Investments Sales ofMarket- Financial RiskControl g Financial Pro g ement an b d Operations Market-making Operations ase iation inMarket- g g Operations Returnsthrou d Marketing Operations FinancialPro d d Structurin d b ucts ase b d g d ase h g ucts of d
Synergy betweenFinancial Products individual functions Market-based Financial Risk Management Consulting Added Value Financial Various
Offering services Government Corporate Overseas Clients Retail Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 53 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Sumishin Realty Company, Limited Chuo Mitsui Realty Company, Limited Tokyo Securities Transfer Agent Co., Ltd. Japan TA Solution, Ltd. Limited Japan Stockholders Data Service Company, Japan Pension Operation Service, Ltd. Limited Sumishin Real Estate Loan & Finance, Chuo Mitsui Finance Service Co., Ltd. BUSINEXT CORPORATION Sumishin Card Company, Limited Chuo Mitsui Card Co., Ltd. Sumishin Life Card Company, Limited Sumishin Panasonic Financial Services Co., Ltd. Chuo Mitsui Asset Management Company, Limited Chuo Mitsui Asset Management Co., Ltd. STB Asset Management Co., Ltd. Nikko Asset Management Company Limited Chuo Mitsui Capital STB Investment Corporation Management Co., Ltd. STB Real Estate Investment Company, Limited Chuo Mitsui Trust Realty Co., Ltd. Top REIT Asset Management Mitsui & Co., Logistics Partners Ltd. Japan Trustee Services Bank, Ltd. STB Research Institute Co., Ltd. ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● (As of June 30, 2011) (As of
Subsidiary or affiliate of Sumitomo Mitsui Trust Holdings, Inc. Subsidiary or affiliate of The Chuo Mitsui Trust and Banking Company, Limited Subsidiary or affiliate of The Sumitomo Trust and Banking Co., Ltd.
● ● ● Leasing Card Services Financial Services Pension Operations Stock Transfer Agency Services Real Estate Research Institute Highly Specialized Trust Bank Focusing on Custody Business Highly Specialized Trust Bank Focusing on
Asset Management Asset Management Review of Operations: Review Companies Group 54 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report UnitedStates Overseas Equity InvestmentandManagement Training andHumanResources Loan Guarantees Internet Bank Consulting Review ofOperations:GroupCompanies ● ● Subsidiary oraffiliateofTheSumitomoTrustandBankingCo., Ltd. Subsidiary oraffiliateofTheChuoMitsuiTrustandBankingCompany, Limited China United Kingdom Luxembourg ● ● ● ● ● ● ● ● ● ● ● ● ● Sumitomo TrustandBanking(Luxembourg)S.A. Sumitomo TrustandBankingCo.(U.S.A.) CMTB EquityInvestmentsCo.,Ltd. HR OneCorporation Sumishin GuarantyCompanyLimited Chuo MitsuiGuaranteeCo.,Ltd. SBI SumishinNetBank,Ltd. STB WealthPartnersCo.,Limited Zijin TrustCo.,Ltd. STB Consulting(China)Co.,Ltd. Chuo MitsuiInvestmentsHongKongLtd. The SumitomoTrustFinance(H.K.)Ltd. Chuo MitsuiTrustInternationalLimited Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 55 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Corporate Social Responsibility (CSR) Management Corporate Social Responsibility (CSR) ...... 68 Efforts to Enhance Customer Satisfaction Efforts to Enhance Customer Satisfaction ...... 66 Control of Information Disclosure and Internal Auditing Control of Information Disclosure and . . . 65 Capital Management ...... 64 Risk Management ...... 62 Client Protection Management ...... 61 Compliance System ...... 59 Corporate Governance, Internal Control Corporate Governance, Internal Control ...... 56 Management Structure: 56 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview ment andadministration,realestatebusinesses. est statusinJapan,combiningthebanking,assetmanage- trust bankgroupwhichboaststhelargestscaleandhigh- ment structurethatitdeemsappropriateforaleading Mitsui TrustGroup(the“Group”)willestablishamanage- Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1. BasicPolicy Control Internal Corporate Governance, Management Structure: Under thefollowingmanagementprinciples,Sumitomo • Offer aworkplacewhere thediversityandcreativity • Strive tofulfillallshareholderexpectationsbycre- • Adhere totheprinciplesofsoundmanagement • Swiftly providecomprehensivesolutionstoits their missions. can haveprideandbehighlymotivatedinfulfilling value totheorganizationandwhereemployees of itsemployeesaremorefullyutilizedtoadd functions featuringthetrustbankgroup. ating distinctvaluesthroughfusingthevarious strong credibilityfromsociety. background of“TrusteeSpirit”andestablish based onahighdegreeofself-disciplinewiththe comprehensive capabilities. clients byfullyutilizingitssignificantexpertiseand —Management Principles— pertaining tothe BoardofDirectors’resolutions. Board ofDirectors, andundertakespreliminary discussions ness activities,inlinewithbasic policyestablishedbythe addresses materialissuesrelating totheexecutionofbusi- ticipation ofrelevantofficers. TheExecutiveCommittee Executive Committee,chaired bythepresidentwithpar- ence oftheauditfunction. rate auditorsareexternaltoensureindepend- Sumitomo MitsuiTrustHoldings.Amajorityofourcorpo- of subsidiariesandcontributestosufficientaudits This contributestoasystemwhichauditsthemanagement concurrent positionsasauditorsatsubsidiarytrustbanks. been setatoneyear. of thebusinessenvironment,termforalldirectorshas parency inmind,especiallygiventherapidtransformation against subsidiaries.Withgreatermanagementtrans- internal auditingandcementsthecheckingfunction not holdconcurrentpositionsatsubsidiaries,supervises The directorofSumitomoMitsuiTrustHoldings,whodoes implementation ofbusinessstrategieswithintheGroup. trust banksandareresponsibleforensuringeffective Trust Holdingsareconcurrentlydirectorsatsubsidiary (2) BusinessExecutionandSupervisionSystem • Managinginternalauditing. • Supervisingcompliancemanagementand • Supervisingriskmanagement, • Monitoringadministrationofbusinessactivities, • Allocatingmanagementresources, • Formulatinggroupmanagementstrategy, ties forthefollowingfunctions: management ofbusinessoperations,takingresponsibili- company, SumitomoMitsuiTrustHoldingsfocusesonthe ness activitiesinanindependentmanner.Asaholding and ChuoMitsuiCapital)topursuetheirrespectivebusi- management company(ChuoMitsuiAssetManagement Sumitomo TrustandBanking)eachsubsidiaryasset and Banking,ChuoMitsuiAssetTrustThe allows eachsubsidiarytrustbank(TheChuoMitsuiTrust (1) Role ofSumitomoMitsuiTrustHoldingsintheGroup System 2. OutlineofCorporateGovernance Under theBoardofDirectors isestablishedthe Along withthis,someofthecorporateauditorshold In theGroup,someofdirectorsSumitomoMitsui In theGroup,thereisamanagementstructurewhich Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 57 Top Interview Management Integration Management Structure: Corporate Governance, Internal Control Internal Governance, Corporate Structure: Management Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report The full-time corporate auditors work to share informa- The full-time corporate with the Corporate auditors hold periodic meetings audit unit, corpo- At periodic meetings with the internal Regarding internal auditing*, an internal audit unit is * For details concerning internal auditing, please refer to page 65. tion with part-time corporate auditors at the Board of tion with part-time and liaison meetings by giving them Corporate Auditors collected in daily audit activi- reports on audit information information on proposals at important ties. These include Executive Committee, and the con- meetings such as the of Sumitomo Mitsui Trust Holdings tent of investigations corporate auditors perform and subsidiaries. Part-time perspectives, such as legal auditing from multi-faceted addition to stating and corporate management ones, in Board of Directors their opinions at the meetings of the and Board of Corporate Auditors, etc. information, as Independent Auditors, receiving auditing of auditing per- well as reports on auditing plans, status to exchanging formed, auditing results, etc., in addition needed. They also opinions and sharing information as Auditors monitor and verify whether the Independent and perform audit- maintain an independent standpoint ing appropriately. opinions on rate auditors receive reports and exchange and indica- internal auditing results, give recommendations information tions to the internal audit unit, and exchange the effectiveness as needed. This system works to maintain build strong coop- of auditing by corporate auditors and to internal audit- eration among the three types of auditing: and auditing by ing, auditing by Independent Auditors, corporate auditors. established which is independent of units pertaining to business execution. The internal audit unit creates the pol- icy on development of internal auditing system and inter- nal auditing plans of the Group, performs internal auditing for each business execution unit, and indicates and recom- mends points to be improved. It also periodically and appropriately reports to the Board of Directors on internal auditing results and status of progress and achievement of the internal auditing plans. Sumitomo Mitsui Trust Holdings has adopted a corpo- In accordance with the policy on audit and the alloca- An internal control system is designed to prevent miscon- An internal control system order to accom- At Sumitomo Mitsui Trust Holdings, in The Council to Promote Business Revitalization Plan and The Council to Promote for the transparency and soundness This system works rate auditor system, with a Board of Corporate Auditors comprised of two full-time auditors and four part-time audi- tors (external auditors), for a total of six corporate auditors. tion of duties determined by the Board of Corporate Auditors, the corporate auditors attend the Board of Directors and other important meetings, and receive reports from directors regarding the status of execution of duties. They also browse important documents, investi- gate the headquarters, receive business reports from sub- sidiaries as necessary, etc. They thereby audit the directors’ execution of duties. (4) Audit duct from taking place by putting various mechanisms and duct from taking place by putting various sound man- rules into place for the purpose of conducting are four objectives: agement in the company. Basically, there (2) reliability of (1) effectiveness and efficiency of operations, laws and ordinances financial reporting, (3) compliance with (4) safeguarding of concerning business activities, and by developing assets. A company achieves these objectives and operating its internal control system. the Board of plish the four abovementioned objectives, on Internal Control, Directors decides on the Basic Policy (1) Compliance for development of the following systems: Business execution system, (2) Risk management system, (3) of management, system, (4) System to obtain transparency appropriateness of (5) Management system to ensure the storage and man- operations at the Group, (6) Information system, and (8) agement system, (7) Internal auditing auditors. For the sys- System regarding audits by corporate operated based on tems that have been developed and these policies, please refer to pages 56–65. (3) Internal Control CSR Council are established as bodies at the same level as CSR Council are established The Business Management the Executive Committee. committees are also established. Committee and other for faster decision making. of management, and 58 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report • Corporate GovernanceSystem Seated, fromleft: Standing, fromleft: Management Structure:CorporateGovernance,InternalControl
Subsidiary Trust Banks and Asset Management Companies Holding Company Mana Formulatin g Shinji Ochiai, Takashi Kamikanda, Akio Otsuka, Katsuhiko Kudo, Nobuo Iwasaki, Kiyoshi Mukohara, Hitoshi Tsunekage, ement Strate g Group Committees Director; Director andManagingExecutiveOfficer; g Executive Committee y Director andSeniorManagingExecutiveOfficer; Monitorin Managing ExecutiveOfficer; Business Plannin of BusinessActivities Representative DirectorandDeputyPresident; Representative DirectorandChairman; Managing ExecutiveOfficer; Kunitaro Kitamura, * 2 g A Subsidiary Trust BanksandAssetManagementCompanies General Meetin d ministration g Boar Mana d Representative DirectorandDeputyPresident; ofDirectors Sumitomo MitsuiTrust Holdings g g Koichi Hozumi, ement Resources Allocatin ofSharehol Tetsuo Ohkubo, g Shuichi Kusakawa, d Kazuo Tanabe, ers Councils Managing ExecutiveOfficer Risk Mana Junichi Sayato, Jun Okuno, Director andManagingExecutiveOfficer; Supervisin Mana Boar * 1 Corporate Au d g Senior ManagingExecutiveOfficer; Representative DirectorandPresident; g ofCorporateAu ement ement g Director Risk Director andManagingExecutiveOfficer; Supervisin d itors Compliance d Mana itors g g Compliance ement IT Committee Inte Disclosure Committee Internal Au Enterprise RiskMana Business Mana * CSR Council Council toPromote BusinessRevitalizationPlan * 2 1 g ration Promotion Committee d it Committee g Internal Au ement Committee Mana g ement Committee Au g in d g itin d Internal itin g g Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 59 Top Interview Management Integration
Other subsidiaries
d al an of Directors g d Le Boar Executive Committee The Sumitomo Trust and Banking Trust Compliance Department of Directors of Directors d d Boar Boar Executive Committee Executive Committee Compliance Department Trust and Banking Trust Chuo Mitsui Asset Compliance Department Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Sumitomo Mitsui Trust Holdings Sumitomo Mitsui Trust of Directors d Boar Executive Committee Compliance Department The Chuo Mitsui Trust and Banking Trust The Group positions supervision of the entire group’s The Group positions is established in the hold- The Compliance Department on com- For specific practice plans in various measures devel- The subsidiary trust banks and other subsidiaries cope In addition, in order to promptly and appropriately • Group Compliance Structure • 2. Outline of Initiatives System (1) Group Compliance as one of the most important func- compliance structure company. The holding company’s tions of the holding establish standards which executives Compliance Rules follow. and employees must compliance ing company as the department to manage creates a compli- for the whole group. This department of compliance ance policy, and monitors the situation Department management and execution. The Compliance its findings regard- reports to the Executive Committee on and execution. ing the status of compliance management each fiscal year, pliance, a Compliance Program is made and progress status is periodically assessed. suit their own op appropriate compliance systems which compliance poli- operations’ characteristics, based on the cy established by the holding company. Trust Holdings has with any violation, Sumitomo Mitsui which all execu- established a compliance hotline through violations to the tives and employees can directly report attorney’s office, Compliance Department and an external channels. without having to go through regular reporting
by organized crime Compliance Standards for Executives and Employees 1. Gain the trust of society 2. Respond resolutely to antisocial forces Prevent improper use of financial functions 3. 4. Ensure transparency of management Build sound and normal relations with interested parties 5. 6. Thorough implementation of fair activities 7. Thorough control of information 8. Enhance workplace order With recent progress in deregulation of the financial With recent progress rules such as Compliance means adherence to various an appropriate To achieve thorough compliance and
1. Basic Initiative Policy 1. Basic Initiative Management Structure: Management System Compliance industry, financial transactions and services are diversify- industry, financial transactions need to work on various issues by thor- ing, and there is a of the self-responsibility principle ough implementation in financial institutions. Under these and self-help efforts and enhance client trust, sound conditions, to maintain based on strict self-disci- and appropriate management Sumitomo Mitsui pline is essential. From this viewpoint, as one of Trust Group (the “Group”) positions compliance the most important management issues. company rules, laws, regulations, market rules, and internal norms. Trust is the in addition to conformity to social is natural- Group’s greatest asset, and achieving compliance individual employee ly a basic principle. Executives and each daily operations. must solidly practice compliance in our Group has estab- system which suits “The Trust Bank,” the specific compli- lished Codes of Conduct (“Value”) and Rules. A checking ance standards in the Compliance developed, so the system and promotion system are also out sincere and fair Group complies with these and carries these systems, the company activities. By developing to address issues Group is promoting various initiatives appropriate action and problem points and to enable based on self-discipline. 60 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report company’s compliancedepartmenthastheprimary rules anditemswhichmustbefollowed. thoroughly informedaboutthelaws,regulations,various company andeachgroupcompany,employeesare Group, aComplianceManualiscreatedfortheholding (2) InitiativestoFosterComplianceAwareness Management Structure:ComplianceSystem The Groupisalsoenhancingtrainingcourses,andeach In ordertofostercomplianceawarenessthroughoutthe .OfferingtoThirdParties 5. Consignment 4. 3. PurposeofUse AppropriateAcquisition 2. Compliance withallApplicableLawsand 1. except incases specifiedbylawsandregulations. without obtainingpriorconsent fromtheclient any thirdpartypersonalinformation heldforclients The companiesintheGroup shallnotprovideto management ofthepersonalinformation. shall beproperlysupervisedtopromotethesafe of thepersonalinformation,thenconsignee If thecompaniesinGroupconsignhandling other purpose. by lawsandregulations,shallnotuseitforany prescribed purposeexceptasotherwiseprovided used, andshallonlyuseitwithintheconfinesof announce howthepersonalinformationshallbe The companiesintheGroupshallnotifyor and legalmeans. sary forouroperationsandonlythroughproper information fromclientsonlytotheextentneces- The companiesintheGroupshallobtainpersonal agencies includingotherstandards. mation andguidelinessetforthbygovernment laws pertainingtotheprotectionofpersonalinfor- The companiesintheGroupshallcomplywith Regulations, etc. ers, haveestablishedthefollowingpolicies,andwedeclarethatallourexecutivesemployeesshallabidebythispolicy. We atSumitomoMitsuiTrustGroup,intheutmostefforttoprotectpersonalinformationofourclientsandsharehold- Sumitomo MitsuiTrust Group PrivacyPolicy and instructionsindailyworkprocesses. and studyinhis/herworkplaceprovidingguidance client attributesofthecompanybyimplementingtraining with regardtocharacteristicsofbusinessandproduct compliance awarenessandensuringthorough compliance ateachcompanyisresponsibleforenhancing compliance themes.Meanwhile,thepersoninchargeof responsibility forprovidingtrainingastocompany-wide .ContinuousImprovement 8. Safety Measures 7. 6. RespondingtoInquiriesfromClients,etc. appropriately handlepersonal information. tance ofprotectingpersonal informationandto employees aretrainedtounderstand theimpor- tecting personalinformation. Allexecutivesand strive toimprovethecomplianceprogramforpro- The companiesintheGroupcontinuallyreviewand protect personalinformationhasbeendeveloped. tion, andthegovernanceframeworknecessaryto affairs, andsystemstomanagepersonalinforma- measures intermsoftheirorganizations,personnel Group takeappropriatesafety The companiesinthe be handledquicklyandaccurately. content, etc.relatedtopersonalinformationshall tions, suggestionsorinquiriesandcorrectionsof information, andanyinquiriesconcerningques- cedures forcorrectinganddisclosingpersonal The companiesintheGroupshallestablishpro- ing theclient’sconsent. may beprovidedtothethirdpartywithoutobtain- then thepersonalinformationheldforclient is sharedwithaspecifiedpartysetforthseparately, cession ofbusinessinamergerorotherwiseifit client’s personalinformationconsequenttothesuc- However, ifthecompaniesinGroupprovidea Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 61 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report SMTH quickly responds to inquiries and complaints SMTH quickly responds information, and SMTH appropriately manages client carries out When outsourcing its operations, SMTH the inter- The Group, in order to avoid unfairly impairing In order to properly manage conflict of interest, SMTH (2) Client Support Management (2) Client Support manner, aiming to resolve them from clients in a sincere understanding and consent as by obtaining the client’s It also works to recognize and analyze much as possible. inquiries and complaints in order to the causes of such improve the operations. Management (3) Client Information the Group, SMTH when using client information jointly in protection, complies with laws on personal information in the finan- guidelines on personal information protection regulations so as cial industry, and other related laws and to ensure appropriate use of such information. (4) Outsourcing Management and monitoring appropriate management, such as selection performance of of outsourced contractors, to ensure proper of clients, includ- operations as well as appropriate handling ing appropriate management of client information. (5) Conflict of Interest Management operations proper- ests of clients, manages and carries out as well as the ly in accordance with laws and regulations, Rules. Thus, it Group’s Conflict of Interest Management works to gain greater trust from clients and society. has established the Compliance Department that is responsible for such management for the whole group, and has assigned General Manager of the Compliance Department as a supervisor in charge of such manage- ment. SMTH has thus developed a system to properly per- form the management of conflict of interest for the whole Group, and verify the effectiveness of the system periodi- cally and appropriately to continually improve it. It also provides periodic training and education in the Group and keeps executives and employees informed on the identifi- cation and management of transactions with the risk of conflict of interest.
In providing financial products and services to clients, SMTH does not use its dominant bargaining position in Amid growing number of financial products with ever Amid growing number Trust Group Under such conditions, Sumitomo Mitsui system are also A checking system and promotion devel- The subsidiary trust banks and other subsidiaries (1) Management of Accountability to Clients SMTH considers the client’s knowledge, experience, assets situation and purpose of their transactions, and pro- vides appropriate and sufficient explanations to obtain the client’s understanding and consent. transactions with clients, for acts which harm client inter- ests. Nor does it provide explanations which might be mistakenly considered as an abuse of the dominant bar- gaining position. 2. Outline of Initiatives
1. Basic Initiative Policy 1. Basic Initiative Management Structure: Management Management Protection Client more complex mechanisms and unique characteristics, more complex mechanisms for financial institutions to properly there is a strong need clients the mechanisms and risks of and fully explain to gain their understanding. It is also those products and that financial institutions appropri- increasingly important and requests from clients and ately respond to complaints properly manage client information. as one of its most (the “Group”) positions client protection client expectations important management issues. To meet Trust Holdings of and trust in the Group, Sumitomo Mitsui in its Client (“SMTH”) established the basic policy each group com- Protection Management Rules to enable convenience. pany to enhance client protection and these and carries developed, so the Group complies with By developing out sincere and fair company activities. various initiatives these systems, the Group is promoting and to enable to address issues and problem points appropriate action based on self-discipline. systems in op appropriate client protection management of their own opera- accordance with the characteristics by SMTH. tions, based on the basic policy established 62 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview agement system,leveragingthestrengthsofbothgroups. integration, anddeveloppracticalefficientriskman- external environmentalchangesandthemanagement respond tochangeintheriskstructureresultingfrom Group (the“Group”). scope andsustainablegrowthofSumitomoMitsuiTrust business operationsfortheexpansionof and advanceitsriskmanagement,whichformsthebasisof Accordingly, SMTHismakingconstanteffortstoenhance one ofthemostimportantmanagementissues. teristics ofitsoperationsandenvironmentalchangesas lishment ofariskmanagementsystemsuitedtothecharac- and thehigheststatusinJapan,SMTHpositionsestab- advanced riskmanagementandpreventiveaction. SMTH thinksthatthereisanincreasingneedformore growing tensionintheMiddleEast.Inthisenvironment, nuclear problems,Europe’sfiscaldeficitand recent GreatEastJapanEarthquakeandsubsequent of newriskswhichalsoaffectfinancialmarkets,suchasthe ued conditionswhereitmustpreparefortheemergence Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1. BasicInitiativePolicy Risk Management Management Structure: • Risk Categories • Risk Other risks (Below are“risksub-categories”) Operational Risk Funding Risk Market Risk Credit Risk In thefiscalyear2011,SMTHwillflexiblyandaccurately As thetrustbankgroupwhichboastslargestscale Sumitomo MitsuiTrustHoldings(“SMTH”)facescontin- Tangible AssetRisk Human ResourceRisk Legal &ComplianceRisk System Risk Information SecurityRisk Business ProcessingRisk Reputational Risk Risk Category such reasonsasmassmediareports,rumorsor speculation. Risk thattheGroupincurslossesduetoa(possible) majorimpactonbusinessasaresultofdeteriorationinreputationforS Risk thattheGroupincurslossesduetorisksother thancreditrisk,marketliquidityriskoroperationalrisk.Include war, crime,flawedassetmanagement. Risk thattheGroupincurslossesduetolossor damagetotangibleassets(movables,realestate,facilities,fixtures,etc.), Risk thattheGroupincurslossesduetosuchissues asunequalorunfairmanagementofpersonnelandharassment. Risk thattheGroupincurslossesduetouncertainlegalaspectsoftransactions,orinsufficient compliancewithlaws, Risk thattheGroupincurslossesduetosuchreasonsascomputersystemfailure,malfunction, defect,andmisuse. ment ofinformation(includingclientmanagement). Risk thattheGroupincurslossesforsuchreasonsaslossofconfidentialityinformationbelonging totheGroup,owings Risk thattheGroupincurslossesarisingfromexecutivesoremployeesneglectingtoengageinproper businessactivities,oro Risk thattheGroupincurslossesresultingfrominadequateorfailedinternalprocesses,people andsystemsorfromexternale significantly higherthanusual. Risk thattheGroupincurslossesinasituationwhereitbecomesimpossibletosecurenecessary fundsorbecomesobligatoryto tageous thanusualduetomarketturmoil. losses causedinasituationwhereitbecomesimpossibletoconducttransactionsthemarket orbecomesobligatorytotradea market riskfactorssuchasinterestrates,securitiesprices,foreignexchangerates.Ofthis,“market liquidityrisk”inpart Risk thattheGroupincurslossesduetofluctuationsinvalueofassets/liabilities(including off-balancesheetassets/li eign exchange,politicalandeconomicconditionsofthecountryobligor. tion inthefinancialconditionofanobligor.Ofthis,“countryrisk”particularmeansriskthat theGroupincurslosseson Risk thattheGroupincurslossesduetovalueofanasset(includingoff-balancesheetassets)decreasingorimpairingowi risks, basedonSMTH’spolicyconcerningriskmanagement. tems suitedtothecharacteristicsoftheirownoperationsand ment companiesdevelopappropriateriskmanagementsys- plans forriskmanagementeachfiscalyear. monitoring, controlandreduction.Itcreatespolicies ties, whichincluderiskidentification,assessment, ture sothatitcanappropriatelyperformaseriesofactivi- Group. Ithasclarifiedtheauthorityandorganizationalstruc- for thebasicpointsofriskmanagementwhole management companiesasneeded. guidance toitssubsidiarytrustbanksandasset of thewholeGroup,aswelltosuperviseandprovide overall groupriskmanagementandmonitorthestatus (2) RiskManagementMethods to thecharacteristicsofrespectiverisks. risk,” and“Otherrisks.”Itmanagestheserisksaccording “Credit risk,”“Market“Funding“Operational faced bythewholeGroupinbusinessoperationsinto (1) TypesofRisk 2. OutlineofInitiatives The subsidiarytrustbanksandassetmanage- SMTH hasalsoestablishedtheRiskManagementRules SMTH hasestablishedadepartmenttosupervisethe SMTH classifiesriskcategoriesbythecauseofrisks Definition s reputationalrisk. ther incidentssuchasaccidentorfraud. icular meansriskthattheGroupincurs resultingfromsuchfactorsasdisaster, abilities), duetofluctuationsinvarious creditprovidedoverseas,duetofor- regulations, etc. MTH oritssubsidiaries,owingto uch factorsasimpropermanage- vents. ng tosuchreasonsasdeteriora- t pricessignificantlydisadvan- raisefundsatinterestrates Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 63 Top Interview Management Integration
Internal Audit Department ories g Risk Reputational across risk cate across d le d Risks Other Corporate Auditors Office Management Structure: Risk Management Structure: Management le b i ement is han g g Risk Asset ministration Dept. d Tan Corporate A Crisis mana * Other Risk Dept. Human Human g Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Resource Resources Corporate Auditors al & g al Dept., Risk Dept. Board of Corporate Auditors Board g Le Compliance Le Compliance Management (Economic Capital Management) Management (Economic SMTH manages various risks in its Group and compre- SMTH manages various the risks subject to the Enterprise In addition, among g amount of loss anticipated within a certain period (the holding period) amount of loss anticipated within a certain period interval). SMTH is within the range of certain probability (the confidence interval of 99%. applying a measurement with a one-tailed confidence Business Management Committee * Value at Risk (VaR): Risk amount measurement indicator. The maximum Value at Risk (VaR): Risk amount measurement indicator. The * (4) Enterprise Risk Management and Integrated Risk (4) Enterprise Risk risks unique to the Group organization hensively measures company cannot recognize alone, such which each group the Group. It manages these risks as spread of risks within with the Group’s overall financial by comparing them Risk Management). strength (Enterprise which are quan- Risk Management, SMTH combines risks the integrated VaR*, tifiable with a unified criteria such as them with the and manages these risks by comparing (Integrated Risk Group’s overall financial strength secure both capi- Management). Aiming to simultaneously use, the Integrated tal adequacy and efficiency of capital with risk limits set Risk Management seeks to comply financial strength based on risk capital allocated within the and pursues maximum risk-return. Risk Dept. System System The Sumitomo Plannin Trust and Banking Trust Risk Security ance Consultation & Reportin Information d g Board of Directors Board g ept. Executive Committee d Risk Trust and Banking Trust Chuo Mitsui Asset Dept. & Risk Management Department Business Plannin each Processin General Meeting of Shareholders Operations Supervision & Gui Risk Operational The Chuo Mitsui Trust and Banking Trust Risk Funding Enterprise Risk Management Committee Risk Market Risk Credit Integrated Risk Management Corporate Risk Management Department Enterprise Risk Management Risk Management-related Departments Risk Management-related The roles and responsibilities of the management struc- The roles and responsibilities management policy and strategic Clarifies the Group’s of risk man- Directors are fully aware of the importance appropri- Accurately recognize risk status, and conduct of risk Verifies the appropriateness and effectiveness Sumitomo Mitsui Trust Holdings Sumitomo Mitsui Trust • Risk Management Structure • ture and principal departments related to risk manage- ture and principal ment are as follows. 1) Board of Directors risk management policy based on the goals, formulates the development of appropriate risk strategic goals, supervises and implements appropriate measures management system, policy throughout to raise awareness of the risk management the Group. 2) Directors, Officers in Charge management con- agement, and officers in charge of risk for developing and sider policies and specific measures establishing proper risk management systems. 3) Risk Management-related Departments risks, through ate management and operations regarding risk identification, a series of activities, which include assessment, monitoring, control and reduction. 4) Internal Audit Department independent of management system as a department business execution. (3) Risk Management Structure (3) Risk Management 64 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview of capital. makes effortstoimproveitscapitalandtheefficientuse ensures sufficientcapitaltomeettherisksitfacesand agement withaneyetowardsthenewBaselregulations, adequacy ratioasstipulatedbylawsandregulations. itoring andcontrolofcapital,calculationthecapital capital adequacy,appropriateallocation,evaluation,mon- encompasses theimplementationofmeasuresconcerning making efficientuseofcapital.Also,capitalmanagement taining andincreasingtheefficiencyofitsbusinessesby remain soundbyimprovingitscapitalreservesandmain- nesses ofSumitomoMitsuiTrustGroup(the“Group”) Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report • Capital ManagementSystem ment (economicenvironment,marketetc.) draw up acapitalplanbasedontheexternalenviron- (1) operating inaccordancewithaPDCAcycleasfollows: (1) BasicPolicyonCapitalAdequacyandthe 2. OutlineofInitiatives 1. BasicInitiativePolicy Capital Management Management Structure: Consultation &Reportin The Groupcreatesthebasicpolicyoncapitalman- Capital managementisaimedatensuringthatthebusi- The Groupaimstomaintainsufficientcapitalby Trust andBanking Management System The ChuoMitsui management Capital regulations • Monitoring • Control • Planning Capital Management Departments and Internal AuditDepartments Capital ManagementDepartmentsandInternal adequacy ratio plan Capital ratio calculation • Disclosure • Capitaladequacy and management ratio calculation adequacy Capital g Chuo MitsuiAsset Trust andBanking Economic capital allocation plan • Measurement and • Control • Planning Monitoring Risk capital management Executive Committee Boar d ofDirectors Trust andBanking
The Sumitomo Assessment of capital adequacy level Mana Enterprise Risk g ement Committee policies onefficient Implementation of Implementation of policies oncapital Balance between • Enhancementof • Improvement of • Monitoring • Capitalprocurement • Planning ROE andRORA adequacy level fee businesses risk-return ratio and management use ofcapital Capital plan Other group companies Direction &Gui the riskmanagement methodemployedfor internaluse. management systembyimproving itsorganiclinkagewith ment, SMTHaimstoraisethe levelandefficiencyofthe trol) inordertoensureitsfairness andappropriateness. adequacy ratio(includingplanning, monitoringandcon- calculation andappropriatemanagementofthecapital adequacy ratio.Accordingly,SMTHworksfortheaccurate (3) PolicyonCalculationandManagementof ate controlofcapitaladequacy. of Directors,andinthisway,SMTHisensuringappropri- reported quarterlytotheExecutiveCommitteeandBoard the plannedfigures. and monitorswhetherornottheactualresultsarewithin amounts ofeachriskcategoryandgroupcompany, risk amountthatisacceptableagainstcapital,and 99.9% withtheregulatoryrequiredcapital. pares theamountofriskwithaconfidenceinterval Also, fromtheviewpointofdepositorprotection,itcom- ties andTierIcapital—thefundamentalcapitalcategory. risk capital,whichisthesumofunrealizedgainsonsecuri- amount ofriskwithaconfidenceinterval99%the SMTH evaluatescapitaladequacybycomparingthe establishing multipledefinitionsofcapitalandriskasfollows. (2) PolicyonEvaluation,MonitoringandControlof management ascapitaldepartments. capital managementandoneinchargeofenterpriserisk agement ofcapitalbyinstallingadepartmentincharge constructed anecessarysystemfortheappropriateman- above evaluations. vals; and(4)improvecapitalriskcontrolbasedonthe evaluate thecapitaladequacylevelatappropriateinter- in thecapitalplan;(3)monitorsituationand etc.); (2)carryoutthecapitaladequacymeasuresdecided and theinternalenvironment(riskprofile,strategicgoals, d Moreover, withregardtocapital adequacyratiomanage- The Grouprecognizestheimportanceofcapital The resultsofsuchevaluationandmonitoringare SMTH alsodeterminesplannedfiguresfortheoverall From theviewpointofensuringbusinesscontinuity, The Groupevaluatescapitaladequacymultilaterallyby Moreover, SumitomoMitsuiTrustHoldings(“SMTH”)has ance Capital AdequacyRatio Capital Adequacy Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 65 Top Interview Management Integration g d ers d office d epartments of Directors d d itors Hea d epartments an of Sharehol General Meetin Boar d Executive Committee sales itors g d itin d Internal au unit of Corporate Au g Corporate Au d itin Internal auditing d Boar Internal au g itors d itors Monitorin d g g of Corporate Au Corporate Au d itin Department Internal Audit d eration & reportin b Committee Boar Internal Audit eli Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report d g ers d Internal au Prior epartment of Directors d d of Sharehol General Meetin Each Boar Executive Committee Sumitomo Mitsui Trust HoldingsSumitomo Mitsui Trust Subsidiary trust bank, etc. In accordance with the Group’s policy on the development of In accordance with the Group’s policy on without delay to The results of internal auditing are reported The Group considers that establishing an effective internal audit- The Group considers that 2. Outline of Initiatives Internal Auditing Policy 1. Basic Initiative internal auditing system and its plans for internal auditing set out internal auditing system and its plans for internal by the Internal by the Board of Directors after prior deliberations develops inter- Audit Committee, the Internal Audit Department standpoint nal auditing system and verifies from an independent auditing system the appropriateness and effectiveness of internal It also con- for all operations undertaken by SMTH departments. and subsidiary asset ducts auditing of each subsidiary trust bank extent that does not management company, as needed, to an violate any laws and regulations. the President and the officers in charge, along with timely and appropriate reporting to the Board of Directors and the Internal Audit Committee. ing system commensurate with the type of risk and the degree of with the type of risk and the degree ing system commensurate to appropriate legal compliance, risk involved is indispensable risk management, etc. Therefore, SMTH has client protection, and Audit Department in charge of internal established an Internal of departments involved in the execution audits, independent of a established an Internal Audit Committee as operations. It has also deliberate on policies and measures to consultative body to The Internal Audit strengthen its internal auditing system. for supervising the Department, as the department responsible recognition of Group’s internal audits, works to ensure adequate within the the status of internal auditing system development and supervision for Group and has the role of providing guidance internal auditing system establishment and management.
d itors d
g g itors d
eficiencies foun
d
Reportin Reportin
Department, Group) Internal Control
g of Corporate Au d of internal controls Corporate Au Departments in charge Boar
(Financial Plannin
• Evaluate of internal effectiveness controls • Report evaluation results • Confirmof correction
Departments in charge of internal controls
Evaluation
Evaluation epartments epartments ent d d d epartment of Directors d d Presi office office sales d
d d Each Boar Executive Committee an Hea
Reporting on results of deliberations
ement-relate
g
information page 510.
Mana
Committee Management- related information
information disclosure Information Disclosure Departments in charge of In order to ensure timely, accurate, and fair disclosure of man- In order to ensure timely, accurate, and fair Control Report Furthermore, in order to adapt to the Internal Adopting observance standards that all executives and employ- Adopting observance Trust Holdings Based on this philosophy, Sumitomo Mitsui Subsidiary trust bank, etc. Sumitomo Mitsui Holdings Trust Please refer to • Control of Information Disclosure• Internal Auditing Implementation System • * 2. Outline of Initiatives
Control of Information Disclosure of Information Control Policy 1. Basic Initiative Management Structure: Management Information of and InternalControl Disclosure Auditing agement-related information, the Group has established the agement-related information, the Group deliberates the neces- Information Disclosure Committee, which management-related sity and appropriateness of disclosure of management related. information and information that could be information disclosure It also considers the appropriateness of system, particularly its establishment and management. effectiveness of inter- System, each fiscal year, SMTH evaluates the nal control concerning financial reporting. The results of the evalua- tion and status of corrective measures for deficiencies found are reported to the President and the Board of Directors. Based on this report, the President makes an “Internal Control Report,” which evaluates the effectiveness of internal control concerning financial reporting, and submits it to the relevant financial authority along with the Securities Report. ees must uphold to ensure the transparency of corporate manage- ees must uphold to ensure and fair disclosure of corporate ment through appropriate Mitsui Trust Group (the “Group”) has set information, Sumitomo Rules and Information Disclosure out Information Disclosure established an internal control system to Guidelines, and has are made in accordance with relevant laws, ensure that disclosures including the Companies Act, the Banking regulations and rules, Act. Act, and the Financial Instruments and Exchange in order to clarify its (“SMTH”) has established a disclosure policy* externally, thereby basic policy on disclosure both internally and it is working to ensure ensuring appropriate disclosure. In this way, through appropriate the transparency of corporate management disclosure of corporate information. 66 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview sound management. sincerity, placingprimeimportanceoncredibilityand mind andensuretheirsatisfactionwithsupremeloyalty a “customer-firstapproach”andtoofferclientspeaceof prehensive solutions.Itisalsomakingeveryefforttoadopt prehensive capabilitiestoquicklyprovideclientswithcom- bank ofchoiceforclients. improving itsproductsandservices,inordertoremainthe Sumitomo MitsuiTrustGroup(the“Group”)iscontinually being demanded.Torespondtosuchdemands, are alsobeingcomparedandhigherlevelsofservices able toclients.Servicesprovidedbyfinancialinstitutions choice offinancialinstitutionsandproductsarenowavail- Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report received fromtheclients. improvements, basedonthefeedbackandrequests es byreviewingitsproductsandservicesmaking products andservices. mulate improvementmeasures,inordertoprovidebetter ments responsibleforsupervisingbusinessoperationsfor- analyzes theirresponsestoidentifyproblempoints. valuable clientfeedback. fiscal year2010.TheseprovidedtheGroupwithmuch postcards andabout10,000repliestoitsquestionnairesin and questionnairessentouttoclientsbymail. “Voice ofCustomers”postcardsavailableateveryoffice phone centersanditswebsite,aswellthroughthe requests atbranchesthroughoutJapan,throughtele- Initiative toUseClientFeedbackImproveServices (1) 2. OutlineofInitiatives 1. BasicInitiativePolicy Efforts toEnhanceCustomerSatisfaction Management Structure: The Groupisutilizingitssignificantexpertiseandcom- Because ofadvancesininformationtechnology,awider In thisway,theGroupworkstoprovidesuperiorservic- Based ontheseresults,themanagementanddepart- It gathersallfeedbackandrequestsfromclients receivedabout85,000“VoiceofCustomers” The Group receivesmuchclientfeedbackandmany The Group etc. Thisinformationisupdatedregularlytwiceayear. porate clientsobtainedthroughpostcardsanditswebsite, made, reflectingthefeedbackandrequestsofretailcor- (2) Company-wideEffortsto On itswebsite,theGroupinformsclientsofimprovements Enhance CustomerSatisfaction * The toppageofSumitomoTrust’s“Effortstoimproveourservices * The toppageofChuoMitsui’s“Effortstoimproveourservices http://www.sumitomotrust.co.jp/about-us/cs/04.html based onclientfeedback”(AvailableinJapaneseonly) http://www.chuomitsui.co.jp/topics/torikumi_03.html based onclientfeedback”(AvailableinJapaneseonly) Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 67 Top Interview Management Integration ■ Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Initiatives to Facilitate Financing Initiatives to ■ Sumitomo Mitsui Trust Group (the “Group”) considers the facilitation of financing to Group (the “Group”) considers the Sumitomo Mitsui Trust Measures to Facilitate of the Act concerning Temporary In light of the enforcement through a system at branch offices to In addition to facilitating financing operations to improve and revitalize their business The Group also assists SMEs with efforts year. On March 31, 2011, the SME Financing Facilitation Act was extended for one small and medium-sized enterprises and individuals seeking housing loans as one of enterprises and individuals seeking small and medium-sized missions. its most important social Enterprises (SMEs), etc. (SME Financing Financing for Small and Medium-Sized took steps to further enhance their financial Facilitation Act), the trust banks in the Group a basic policy on the facilitation of financing to intermediary function and established and appropriate response to requests from SMEs in December 2009 to ensure a prompt consultations, restructuring of loan repayment SMEs and housing loan clients for various conditions, etc. to clients’ consultations about or requests provide a prompt and appropriate response conditions, etc., and a system at the head for the restructuring of loan repayment activities, the Group responds to clients’ office to fully grasp the branch office support through a toll-free telephone number as well requests for consultation and complaints as branch offices. and providing business consultations, man- operations by considering their conditions business reconstruction strategies, and agement guidance, support for formulating other support services. and Considering this, the Group will continue working together to provide appropriate of SMEs proactive financial intermediary services to facilitate the business activities consulta- and to help housing loan clients enjoy a stable lifestyle. Also, when there are etc. from tions about or requests for the restructuring of loan repayment conditions, the clients directly or indirectly affected by the March 11 Great East Japan Earthquake, account Group works to respond in a flexible and appropriate manner, taking into each client’s circumstances. 68 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview sincerely putthispolicyintopractice. All theexecutivesandemployeeswillworktogetherto Mitsui TrustGroup”(pleaserefertothepageatright). “Basic PolicyontheSocialResponsibilityofSumitomo by itsclientsandotherstakeholders. es tosolvethesocialandenvironmentalproblemsfaced Group willprovideuniquevaluethroughitscorebusiness- impact oftheGroup’sbusinessactivitiesonsociety, sustainable society.Whilegivingdueconsiderationtothe ty consistsofmakingactivecontributionstobuildinga Group (the“Group”)recognizesthatitssocialresponsibili- backed bythe“TrusteeSpirit,”SumitomoMitsuiTrust agement basedonahighdegreeofself-disciplineand and makepositivecontributionstowardsolutions. with theseproblems,becomingmuchmoreconcerned, tain growthintothefuture,theymustinvolvethemselves of companies.Therefore,inorderforcompaniestomain- ing increasinglyserious,weakenthebusinessfoundations rights violations,etc.Theseproblems,whicharebecom- lems: globalwarming,lossofbiodiversity,poverty,human Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report UnitedNationsGlobalCompact • takes partintheirvariousactivities. lines andprinciplesregardingcorporateconduct (1) AccessiontoInternationalGuidelinesforCorporate 2. OutlineofInitiatives 1. BasicInitiativePolicy Corporate SocialResponsibility(CSR)Management Management Structure: tainable growth. corporate voluntaryinitiatives aimedatachievingsus- environment andanti-corruption, whichisthebasisfor ing oftenprinciplesregarding humanrights,labor, The UNGlobalCompactisacodeofconductconsist- Based ontheseconcepts,theGrouphascreated In additiontoadheringtheprinciplesofsoundman- The worldfacesvariousenvironmentalandsocialprob- The Grouphasaccededtovariousinternationalguide- Conduct, etc.andRelatedActivities entities), throughwhichCSRactivitiesareconducted. been establishedattheGroupcompanies(thepromoting Chairman. IndividualCSRpromotionsystemshavealso tion ofCSR,withthePresidentSMTHservingasits entire groupmaintainsaunifieddirectioninthepromo- company managementorganizationtoensurethatthe (2) CSRPromotionSystem ThePrinciplesforResponsibleInvestment • TheUnitedNationsEnvironmentProgrammeFinance • ing decisionsregardingassetmanagement. (Environmental, Social,andGovernance)factorsinmak- cial institutionstodeclarethattheyconsiderESG These principlesrequireinstitutionalinvestorsandfinan- sustainable development. consideration tothepreservationofenvironmentand encourage financialinstitutionstotakeactionsthatgive The UNEPFIisaninternationalnetworkestablishedto Initiative (UNEPFI) The GrouphasestablishedaCSRCommitteeascross- the Group The Committeereview an CSR Committee The Group companiesconductCSR activities aspromoting entities ’ s CSRpoliciesan Other Group Companies Banking Co.,Ltd. The SumitomoTrust and d d Banking Company, Limited Chuo MitsuiAssetTrust and promotes measures Banking Company, Limited The ChuoMitsuiTrust and S Presi Chairperson:C CSRPromotion Office Plannin Corporate Secretariat: d ent g Department, Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 69 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Management Structure: Corporate Social Responsibility (CSR) Management (CSR) Responsibility Social Corporate Structure: Management (Sustainability Policy) Basic Policy on the Social Responsibility of Sumitomo Mitsui Trust Group Social Responsibility of Sumitomo Mitsui Basic Policy on the innovative products and services to help solve social and environmental problems. innovative products and services to help solve efforts to quickly meet the demands of clients and link their feedback products and services. In addition, we make service enhancement. to business improvements and product and to take the lead in rationally selecting financial products and build- ment authorities, NPOs, etc., to enable clients ing sound assets. conforms to societal norms. disclosure of corporate information, etc. engaging in fair competition and appropriate organized crime. vent improper use of financial functions by businesses by cooperating with ety, and will work to solve problems which obstruct these aims through our core various stakeholders. achieve work-life balance. and social contribution such communities where we engage in corporate activities, through our business activities as educational and cultural activities. • We work to solve social and environmental problems from a global perspective through our core businesses. • We work to solve social and environmental models and functions that are unique to a trust bank group and develop new business We integrate the diverse • the details of our strive to provide in-depth explanations and proposals so that clients can fully understand We • of client information. • We strive to undertake meticulous management govern- and awareness-raising activities by cooperating with educational institutions, We engage in educational • that laws, regulations and rules, and conduct our activities in a sincere and fair manner We strictly adhere to all • stakeholders, and fulfill our responsibilities as a member of society, We build sound and proper relationships with • forces which threaten public order and safety, and work to pre- We maintain a resolute stance against antisocial • society, a natural symbiosis society which fosters biodiversity, and a circulatory soci- We aim to build a low-carbon • • on energy and resource conservation to reduce the environmental burden caused by our own activities. We work in all our activities. • We respect individual rights and diverse values, rejecting unjustifiable acts of discrimination employees’ diverse ways of working, and strive to We create a safe and pleasant workplace environment, respect • bodies. • We work to develop the skills of employees and strive to build sound minds and We aim to revitalize the community and build a rich living environment in cooperation with various partners in all • At Sumitomo Mitsui Trust Group, based on our Management Principles (“Mission”), our Ideal Model (“Vision”) and our Principles (“Mission”), our Ideal Model (“Vision”) Group, based on our Management At Sumitomo Mitsui Trust investors, stakeholders, such as clients, shareholders, we respect dialogue with all Codes of Conduct (“Value”), and authorities and international institutions, partners, local communities, NPOs, government employees, business building a sustainable society. play an active role in 1.Environmental Problems through Business Contribute to Solving Social and 2. Respect the Client 3. Earn the Trust of Society 4. Address Environmental Issues 5. Respect the Individual 6. Participate in and Contribute to the Community 70 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report balance ofthese loanshasbeengrowingsteadily. the Installation of SolarPanels”forexisting houses, andthe municipalities. TheGroupalso provides“LoansExclusivelyfor subsidies offeredbytheJapanese governmentandlocal is growingquickly,benefitting frompolicyinitiativessuchas ronmentally friendlyhousing. local governments.Thissupportsmoreconstructionofenvi- possible throughcollaborationwithvariouscompaniesand respond tothedegreeofenvironmentalfriendliness,made loan productsthatapplypreferentialinterestratescor- energy efficiency,wehaveenhancedourlineupofhousing generation systemorpoweredbynaturalgasforincreased the expansionofthismarket. promote environmentallyfriendlyhousingandaccelerate major roletoplayinthisarea,andwehavebeenworking energies, theGroupthinksthathousingsectorhasa 2) HousingLoansforEnvironmentallyFriendly * A systemwhereby companiesreceiveanenvironmentalratingfortheir has beenattractingattentioninrecentyears. held bycompaniesandeffortstopreservebiodiversity,which as theenvironmentalconsiderationofrealestateproperties mental ratingsystemconsistsofanevaluationsuchitems borrowing company’sstatus,forexample.SMTH’senviron- the resultsofenvironmentalratings,whichcanimprove available loansatpreferentialinterestratescorrespondingto to encouragecompanies’environmentalinitiativesbymaking by offering“EnvironmentalRatingLoans*.”Thisproductaims ation toenvironmentalissuesintheirbusinessmanagement initiatives. TheGroupsupportscompaniesthatgiveconsider- ing interestincompaniesthatarepromotingenvironmental 1) EnvironmentalRatingLoans als whowanttoshowconsiderationforenvironmentalissues. and servicestosupporttheeffortsofcompaniesindividu- to theenvironmentinitsbusinessactivities. scale. Thus,theprivatesectormustalsogiveconsideration loss ofbiodiversityarebecomingmoreseriousonaglobal (3) InitiativesthroughBusiness(theEnvironment) Management Structure:CorporateSocialResponsibility(CSR) item, andthepreferentialinterestrateisdecidedbasedonthisenvironmentalrating. initiatives, basedoncertainevaluationcriteria.Pointsaregivenforeach The marketforresidentialsolar powergenerationsystems Specifically, fornewhousesequippedwithasolarpower Amid growinginterestinenergysavingandrenewable When clientschooseproductsandservices,theyareshow- The Groupdevelopsandoffersvariousfinancialproducts Environmental problemssuchasglobalwarmingandthe We alsoprovidecarbonoffsetproducts,whichCO create smallerlotsandsellthemwidelytocompanies,etc. transactions. Wearetakingadvantageofourtrustfunctionto rights tradingundertheKyotoProtocolaremainlyforlarge developing variousfinancialproducts.Forexample,emission tary meansforreducinggreenhousegasesandiscurrently Group positionsemissionrightsasaneffectivecomplemen- large impactonthebusinessactivitiesofcompanies.The part ofourfocused effortstoexpandtheSRImarket. operator inJapan.Wewillcontinue developingnewfunds,as ¥100 billion,oneofthelargest balancesheldbyanSRIfund ance ofSRIfundsunderthe Group’s managementreached public pensionfunds.AsofMarch 31,2011,theaggregatebal- ments forindividuals,defined contribution pensionplans,and include instrumentsforcorporatepensionfundsandinstru- from earlyon. sis, andhasbeenputtingeffortintopromotingthesefunds ment criteria,whichisdeterminedbasedonfinancialanaly- company’s ESGinitiatives,inadditiontotraditionalinvest- make investmentdecisionsbasedonanevaluationofeach developed SociallyResponsibleInvestment(SRI)fundsthat governance (G)inassetmanagement.TheGrouphas sideration oftheenvironment(E),society(S),and tainable society,thereareincreasingcallsgloballyforcon- 5) SRIFund groups, bringingtogethervariousrealestateprofessionals. fostering themarket,forexample,byorganizingstudy construction consulting.Wearealsofocusingoureffortson business, andisactivelypromotingenvironmentallyfriendly ties willbecomeoneofthenewpillarsrealestate The Grouprecognizesthatenvironmentallyfriendlyproper- effects, therebyincreasingthevalueofpropertyitself. the worker’sproductivity,andbringsaboutotherpositive has highenvironmentalvalue,cutsenergycosts,enhances 4) EnvironmentallyFriendlyProperty-relatedInitiatives effective useofemissionrightstoourclients. generated fromleaseproperties.Thisisonewaywepropose CO been tightenedtopromotereductionsintheemissionsof 3) HandlingofGreenhouseGasEmissionCredits The GroupisexpandingitslineupofSRIfunds,which In ordertousecapitalmarketfunctionsachieveasus- An “Environmentallyfriendlyproperty”issustainable,and 2 Regulations suchastheEnergyConservationActhave and othergreenhousegases,thishasalsohada 2 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 71 Top Interview Management Integration Organization World Wide Fund for Nature Japan Ecosystem Conservation Society—Japan National Federation of UNESCO Associations in Japan Japan Cancer Society Japan Guide Dog Association Médecins Sans Frontiéres Japan The Japan Prize Foundation Japan Arts Council The Central Community Chest of Japan Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Organizations receiving donations (Clients choose from these 9 organizations) (Can change donation recipients on a yearly basis) Management Structure: Corporate Social Responsibility (CSR) Management (CSR) Responsibility Social Corporate Structure: Management According to a survey* by the Trust Companies According to a survey* by the Trust among various Donation recipients can be chosen from A growing number of people are indicating a desire to A growing number and ensure a comfortable life after To allay these concerns collateral, and the loan is repaid in a lump sum, for example, from the pro- collateral, and the loan is repaid in a lump sum, for passing. ceeds from the sale of the house upon the borrower’s Field Environment Environment Community/ Cultural heritage Medical care Social welfare Overseas aid Academic achievements Culture Great East Japan Earthquake reconstruction support 4) Social Contribution Donation Trust who have ¥10 Association of Japan, 73.9% of individuals to make some kind million or more of financial assets want to Tomorrow” of donation. The Group offers the “Bridge responds to such social contribution donation trust, which which to make client wishes, and creates a trust through social contribu- donations to organizations that undertake tion activities. are used for partner charitable organizations. Donations support, with the those activities the donor wants to development. They objective of supporting their further can also be used to support reconstruction following the Great East Japan Earthquake. * “Basic Survey on the Status of Donations and Use of Trusts.” 3) Reverse Mortgages homes after their retirement, and live in their current their homes, they do not have enough although they own in their retirement years. money to live comfortably provides reverse mortgages,* which retirement, the Group borrow funds on an ongoing basis while enable individuals to their homes. These borrowed funds can they continue living in for the payment of be used for various purposes, including home renovations, monthly living expenses, the funding of to a care house, etc. and the payment of fees upon admission A loan that allows an individual to borrow funds using their residence as * For parents of children with severe physical or mental The Group provides special donation trusts, which uti- There are increasing numbers of individuals who want There are increasing numbers of individuals range of fields, Charitable trusts are used in a wide trusts as of The Group was managing 235 charitable Japan’s transition into an aging society has resulted in Japan’s transition into to develop and provide various finan- The Group is working special donation tax in cases where an individual entrusts a trust bank with money, securities, etc. for a specific severely disabled person as a benefici- ary (Inheritance Tax Act, Article 21-4). * A system under which donations of up to ¥60 million are exempt from the * disabilities due to injuries sustained in traffic accidents, disease, etc., ensuring their future income and lifestyles is a difficult problem. lize the “gift tax exemption system for people with special disabilities*,” created to ensure the stability of the future lives of such people. With this product, we manage assets donated by parents, relatives and benefactors and man- age payments for actual living costs and hospitalization and medical costs, to support people with serious physical or mental disabilities. 2) Special Donation Trusts to donate their own assets for various charitable activities, to donate their own assets for various profits to socie- and companies which want to return their scheme for ty. A charitable trust is a legally prescribed and manage trustees like trust banks to safely administer of the chari- such assets, and contributes to the realization table purposes intended by the entrusters. Uses include reflecting the wishes of the fund providers. grants for research the provision of academic scholarships, overseas eco- in the natural sciences and the humanities, development and nomic and technical aid, community environmental protection activities, etc. under manage- March 31, 2011, with the balance of assets number of adminis- ment totaling ¥29 billion, and both the management are tered and the balance of assets under top class in the industry. 1) Charitable Trusts the emergence of social problems in medical, nursing the emergence of care, and other fields. which take advantage of its financial cial products and services contribute to solving such problems. and trust functions to (4) Initiatives through Business (Society) (4) Initiatives through 72 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report tribute toawareness raisingonbiodiversity issuesby held inNagoya inOctober2010.Ourbranches alsocon- Parties totheConventionon BiologicalDiversity(COP10), Keidanren atthe10thMeeting oftheConference international meetingssponsored bytheUNand 4) InitiativestoAddressBiodiversity-related Issues teach employeeshowtoassistwheelchairusers. ing ofdementia,aswellawheelchairworkshop,to People withDementia”topromoteacorrectunderstand- by offeringa“WorkshoponBecomingSupporterof tion, eachbranchismakingeffortstosupporttheelderly tion totheirspousesandotherfamilymembers.Inaddi- which peoplewrite,expressingtheirfeelingsofapprecia- we continueholdingthe“LoveLettersatSixty”event in tally andphysicallyhealthyprosperous“secondlife,” 3) InitiativestoSupporttheElderly ties andcreatearichlivingenvironment. ing activities,etc.Thesehelprevitalizethelocalcommuni- the localcommunity’snonprofitorganizations,treeplant- for longstandinglocalindustries,cleanupprogramswith ed inthelocalcommunities.Weparticipateexhibitions trust withcustomersbyconductingactivitiesthatareroot- 2) InvolvementandContributionstotheLocalCommunity and nonprofitorganizations. ducting streetcampaignsincollaborationwithlocalpolice seminars onmeasurestopreventsuchscamsandcon- branches worktopreventbanktransferscamsbyholding junior highandschoolstudents.Ournationwide cation throughworkshopsandfieldtripsforelementary, university students.Wealsoprovidefinancialliteracyedu- nomics atuniversitiesinJapanandoverseasforadults have establishedcoursesinthefieldsoffinanceandeco- the financialliteracyofordinarypeople.Forexample,we 1) FinancialLiteracyEducationSupport clients andthelocalcommunity. ous socialactivitiestoplayausefulroleinthelivesofits (5) SocialContributionActivities Management Structure:CorporateSocialResponsibility(CSR) The Groupparticipatedinvarious events,suchasthe As anactivitytosupport“successfulaging”foramen- Our nationwidebranchesworktobuildarelationshipof The Groupisengagedinvariousactivitiestoimprove As agoodcorporatecitizen,theGroupengagesinvari- 1) EffortstoReduceCO (6) EffortstoConserveEnergyandResources invites membersofthelocalcommunitytoparticipate. organizing the“BiodiversityWalkRally,”aneventwhich and theintroductionofESCO* Chuo MitsuiTrustandBanking’sSystemCenter(Chofu), donations from thepublic. Banking alsoopened donationaccounts,and aresoliciting Mitsui TrustandBanking andSumitomoTrust Society andtheCentralCommunity ChestofJapan.Chuo has donated¥100millionthrough theJapaneseRedCross Earthquake andtohelprebuild disasterareas,theGroup (7) ResponsetotheGreatEastJapanEarthquake duction ofhybridvehicles. maintain ahighadoptionrateandwillincludetheintro- use byemployeesatitsbranches.Wewillcontinueto ing carmodelsasthevehiclestobedrivenforbusiness 3) AdoptionofLow-PollutingVehicles of operationalefficiency. to promoteresourceconservationandtheenhancement some ofourmajorbusinessoffices.Wearethusworking activities forISO14001certification,whichweobtainedat paper resourcesandanalyzebusinessprocessesthrough tive useofpapertobeanimportantissue.Werecycle such asprintedmatterforclients.Weconsidertheeffec- 2) ResourceConservationActivities *2. Energy ServiceCompany:Thiscompanyprovidescomprehensiveservic- *1. Building EnergyManagementSystem:Ahighlyefficientenergymanage- obligation tocuttotalCO environmental protectionordinancewhichimposesan response totheTokyoMetropolitangovernment’srevised implement theirownsimilarmeasures.Inparticular,asa as encouragingeachandeveryemployeetosteadily energy-saving equipmentatlargebusinessoffices,aswell ing ourmeasuresthroughtheintroductionofBEMS* Banking’s FuchuBuilding. The GroupisworkingtocutCO To supportreliefforvictims oftheGreatEastJapan The Groupispromotingtheintroductionoflow-pollut- The Grouphandleslargevolumesofpaperresources ing equipment. es, suchastheprovision,maintenanceandmanagementofenergy-sav- equipment andfacilities,dependingontheindoorenvironment. ment systemwhichreducestheamountofenergyconsumptionby 2 Emissions 2 emissions, wearestrengthen- 2 at theSumitomoTrust& 2 emissions byinstalling 1 at Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 73 Top Interview Management Integration Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., ...... 85 Chuo Mitsui Asset Trust and Banking Company, Limited Chuo Mitsui Asset Trust and Banking . . . . . 82 The Chuo Mitsui Trust and Banking Company, Limited The Chuo Mitsui Trust and Banking ...... 76 Sumitomo Mitsui Trust Holdings, Inc. Sumitomo Mitsui Trust Holdings, Inc...... 74 Corporate Data: 74 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Thenumberofemployeesindicatestotalpersonnel,etc.,excludingsecondedtoothercompanies and temporary Notes: Akio Otsuka Director Jun Okuno Director Tetsuo Ohkubo Director, ManagingExecutiveOfficer Shinji Ochiai Director, ManagingExecutiveOfficer Junichi Sayato Director, ManagingExecutiveOfficer Nobuo Iwasaki Director, SeniorManagingExecutiveOfficer Kunitaro Kitamura Representative Director,DeputyPresident Kiyoshi Mukohara Representative Director,DeputyPresident Kazuo Tanabe Representative Director,President Hitoshi Tsunekage Representative Director,Chairman Board ofDirectors andExecutiveOfficers Corporate Data:SumitomoMitsuiTrust Holdings,Inc. Employees Average AnnualSalary Average LengthofEmployment Average Age Number ofEmployees Category 4. The employees’union,namedChuoMitsui TrustGroupStaffUnion,has92members,includingsecondedstaff.Therearenoitem 3. Averageannualsalaryincludesbonusandextrapayment. AllemployeesaretransferredfromTheChuoMitsuiTrustandBanking Company,Limited,andtheaveragelengthofemployment 2. between managementandlabor. (The numbersshownbelowarethoseatformerChuoMitsuiTrustHoldings,Inc.,asofMarch31,2011) Koichi Hozumi Managing ExecutiveOfficer Takashi Kamikanda Managing ExecutiveOfficer Katsuhiko Kudo Managing ExecutiveOfficer Shuichi Kusakawa Senior ManagingExecutiveOfficer Yasuhiko Takano Corporate Auditor Toshio Hoshino Corporate Auditor Hiroyuki Nakanishi Corporate Auditor Hitoshi Maeda Corporate Auditor Tetsuo Amano Senior CorporateAuditor Teruhiko Sugita Senior CorporateAuditor (As ofJuly1,2011) 16 years,6months 41 years,5months ¥ 10,420thousand Executive Officer General ManagerofFinancialPlanningDepartment Tadashi Nishimura Executive Officer General ManagerofComplianceDepartment Yuzuru Kawaguchi Executive Officer General ManagerofRiskManagementDepartment Tsuyoshi Saito Executive Officer General ManagerofCorporatePlanningDepartment Tomoyuki Kiyotsune Executive Officer Akihiko Shirayama Executive Officer Hideki Hiraki Executive Officer Masahiro Tsuchiya Executive Officer Yasumi Nose March 31,2011 andpart-timestaff. includes serviceyearsatthecompany. 115 s warrantingspecialmention 40 years,10months 15 years,7months ¥ 9,780thousand March 31,2010 110 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 75 Top Interview Management Integration — — — — — — — — — — — 33.3 (%) (%) Group Ownership Group Ownership Department ination Department Department g d 33.3 g Department (%) (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 g Department Ownership Ownership g ministration Department Coor d it Department d ement Department d g an g al Department Corporate Data: Sumitomo Mitsui Trust Holdings, Inc. Holdings, Trust Mitsui Data: Sumitomo Corporate g Corporate Plannin Corporate Financial Plannin Plannin Corporate A Human Resources Department Human Resources Risk Mana Compliance Department Le Operations Plannin System Plannin Internal Au Business Business Scope of Scope of Trust and Banking Business Trust and Banking Business Trust and Banking Business Investment Trust Management Business Private Equity Fund Management Business Trust and Banking Business Capital Procurement through the Issue of Preferred Stock Capital Procurement through the Issue of Preferred Stock Capital Procurement through the Issue of Preferred Stock Capital Procurement through the Issue of Preferred Stock Capital Procurement through the Issue of Preferred Stock Capital Procurement through the Issue of Preferred Stock Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report (As of June 30, 2011) (Millions) (Millions) ¥ 399,697 ¥ 11,000 ¥ 342,037 ¥ 300 ¥ 1,247 ¥ 51,000 ¥ 29,200 ¥ 31,700 ¥ 10,800 ¥ 33,700 ¥ 42,700 ¥ 41,600 itors Office Paid-in Capital Paid-in Capital d Corporate Committee Au Subsidiaries Date of Date of Establishment Establishment itors May 26, 1962 December 28, 1995 July 28, 1925 September 19, 1986 March 1, 2000 June 20, 2000 March 11, 2002 March 10, 2003 March 10, 2004 February 8, 2007 January 29, 2008 November 28, 2008 d Au Corporate (As of April 1, 2011) (As of ement g Council Executive Committee of Location Location Mana d itors d Au Boar 33-1, Shiba 3-chome, Minato-ku, Tokyo 23-1, Shiba 3-chome, Minato-ku, Tokyo 5-33, Kitahama 4-chome, Chuo-ku, Osaka 23-1, Shiba 3-chome, Minato-ku, Tokyo 2-8, Nihonbashi-muromachi 3-chome, Chuo-ku, Tokyo Harumi Island Triton Square Tower Y 8-11, Harumi 1-chome, Chuo-ku, Tokyo PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands Corporate g ers d of d Boar Directors Name Name Company Limited Banking Company, Limited Banking Company, Limited Banking Co., Ltd. Company, Limited (Cayman) Limited (Cayman) Limited (Cayman) Limited (Cayman) Limited (Cayman) Limited (Cayman) Limited of Sharehol Japan Trustee Services Bank, Ltd. Chuo Mitsui Asset Trust and The Sumitomo Trust and Chuo Mitsui Asset Management Chuo Mitsui Capital The Chuo Mitsui Trust and CMTH Preferred Capital 7 MTH Preferred Capital 5 CMTH Preferred Capital 6 MTH Preferred Capital 3 MTH Preferred Capital 4 MTH Preferred Capital 1 General Meetin Japan Subsidiaries and Affiliated Companies Subsidiaries and Affiliated Organizational Chart Organizational Overseas 76 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Thenumberofemployeesindicatestotalpersonnel,etc.,excluding secondedtoothercompaniesandtemporary Notes: Takashi Kamikanda Managing ExecutiveOfficer Taro Kiritani Managing ExecutiveOfficer Naoya Syouji Managing ExecutiveOfficer Nobuo Iwasaki Senior ManagingExecutiveOfficer Tetsuo Amano Corporate Auditor Hiroyuki Nakanishi Corporate Auditor Yasuhiko Takano Corporate Auditor Yasuhiro Wakasa Corporate Auditor Mamoru Kawakami Director, SeniorManagingExecutiveOfficer Kunitaro Kitamura Representative Director,DeputyPresident Itaru Masuda Representative Director,DeputyPresident Jun Okuno Representative Director,President Kazuo Tanabe Representative Director,Chairman Board ofDirectors andExecutiveOfficers Corporate Data:TheChuoMitsuiTrust andBankingCompany, Limited Employees Average AnnualSalary Average LengthofEmployment Average Age Number ofEmployees Category 3. The employees’ union,namedChuoMitsuiTrust GroupStaffUnion,has3,273members. There arenoitemswarrantingspecialme 3. 2. Averageannualsalary includesbonusandextrapayment. (As ofMarch31,2011) General ManagerofInternalAuditDepartment Hirofumi Wakui Executive Officer General ManagerofRiskManagementDepartment Tsuyoshi Saito Executive Officer Corporate PlanningDepartment General Managerof Tomoyuki Kiyotsune Executive Officer Real EstateBusinessDepartmentI General Managerof Yoshiaki Koshimura Executive Officer Mutsumi Watanabe Executive Officer General ManagerofOsakaBranch Masashi Hirose Executive Officer Toshiyuki Ueki Managing ExecutiveOfficer General ManagerofTreasuryDepartment Masaru Hashimoto Managing ExecutiveOfficer General ManagerofNagoyaBranch Takuya Miyazaki Managing ExecutiveOfficer Katsuhiko Kudo Managing ExecutiveOfficer Youichi Nakae Managing ExecutiveOfficer (As ofJuly1,2011) 11 years,0months 42 years,6months Executive Officer Corporate BusinessPromotionDepartment General Managerof Taichi Kano Executive Officer Department IV General ManagerofHeadOfficeBusiness Hiroyuki Yamada Executive Officer General ManagerofSystemPlanningDepartment Yasumi Nose Executive Officer General ManagerofComplianceDepartment Yuzuru Kawaguchi Executive Officer General ManagerofYokohamaeki-NishiguchiBranch Tadao Umezawa Head OfficeBusinessDepartmentIII General Managerof Kenji Kaiya Executive Officer General ManagerofBusinessPlanningDepartment Seiji Iwakuma Executive Officer General ManagerofHumanResourcesDepartment Akira Yokota Executive Officer Department General ManagerofIntegrationPromotion Atsushi Kaibara Executive Officer ¥ 6,045thousand March 31,2011 andpart-timestaff. 6,376 ntion betweenmanagement andlabor. 10 years,4months 42 years,2months ¥ 5,890thousand March 31,2010 6,373 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 77 Top Interview Management Integration Office Financial Institutions Department Office Office Business Department I Business Office Institution Business Department Office Office Business Department II Business Office Office Business Department III Business Office Office Business Department IV Business Office Office Business Department V Business Office d d d d d d d Hea Hea Hea Domestic Branches Office Overseas Representative Hea Hea Hea Hea Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Finance Department d Corporate Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Corporate ministration Department d visory Department d A d Structure d an ination Department Department g y Department d g Department Department d ency Department ency Business Department Department ency Business Promotion g g Department g g g Department g ministration Department ministration Department Department g ministration Department d d Coor g d it Department d ement Department d g an g ration Promotion Department ration Promotion al Finance Department it Investment an it Supervision Department I it Supervision Department II g al Department b d d d g Corporate Plannin Inte Financial Plannin Corporate A Department Human Resources Risk Mana Plannin Compliance Department Le Customer Service Department Department Treasury Business Plannin Private Bankin Department Channel Business Direct Loan Plannin Corporate Business Promotion Department Corporate Business Promotion Real Estate Asset Finance Department Cre Cre Cre Glo Settlement A Real Estate Plannin Real Estate Business Department I Real Estate Business Department II Department I Real Estate Investment Promotion Department II Real Estate Investment Promotion Real Estate Investment A Real Estate Custo Real Estate Supervision Department A Stock Transfer A Stock Transfer A Stock Transfer Operations A System Plannin Internal Au
(As of April 1, 2011) (As of
itors Office itors d Au
Corporate
itors d Au
Corporate
Council Committee
Committee
ement g Mana Executive
itors d Au
Corporate
of d Boar
Directors of Sharehol of ers d
of d Boar General Meetin General g Organizational Chart Organizational 78 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Matsudo Branch Funabashi Branch Chiba Branch Sugito Branch Tokorozawa Branch Omiya Branch Urawa Branch Tamasakuragaoka Branch Machida Branch Hachioji Branch Tachikawa Branch Kichijyoji Branch Shakujii Branch Ikebukuro Branch Ogikubo Branch Nakano Branch Shibuya Branch Sangenjaya Branch Omori Branch Ueno Branch Shinjyuku-Nishiguchi Branch Shinbashi Branch Nihonbashi-eigyobu (Branch) Head Office Kanto Branches Corporate Data:TheChuoMitsuiTrustandBankingCompany,Limited 20-1, Shinbashi2-chome,Minato-ku,Tokyo105-0004,Japan Tokyo 103-0022,Japan 1-1, Nihonbashi-muromachi2-chome,Chuo-ku, 33-1, Shiba3-chome,Minato-ku,Tokyo105-8574,Japan 2-1, Hon-cho,Matsudo,Chiba271-0091,Japan 3-1, Honcho1-chome,Funabashi,Chiba273-0005, Japan 1-16, Fujimi1-chome,Chuo-ku,Chiba260-0015, Japan Saitama 345-0036,Japan 13-12, Sugito2-chome,Sugito-machi,Kitakatsushika-gun, 3-5, Hiyoshi-cho,Tokorozawa,Saitama359-8691,Japan Saitama 330-0846,Japan 1, Daimon-cho1-chome,Omiya-ku, 12-1, Takasago1-chome,Urawa-ku,Saitama330-0063,Japan 1-5, Sekido1-chome,Tama,Tokyo206-0011,Japan 5-14, Naka-cho3-chome,Atsugi,Kanagawa243-0018,Japan Atsugi RepresentativeOffice,MachidaBranch 3-4, Haramachida6-chome,Machida,Tokyo194-0013,Japan 9-1, Asahicho,Hachioji,Tokyo192-0083,Japan Tokyo 190-0012,Japan 6-1, Akebonocho2-chome,Tachikawa, Tokyo 180-0004,Japan 14-9, Kichijyoji-honcho1-chome,Musashino, Tokyo 177-0041,Japan 14-1, Shakujiicho2-chome,Nerima-ku, Tokyo 171-0021,Japan 15-9, Nishiikebukuro1-chome,Toshima-ku, Tokyo 167-0043,Japan 16-16, Kamiogi1-chome,Suginami-ku, 62-5, Nakano5-chome,Nakano-ku,Tokyo164-0001,Japan Japan 2-2, Dougenzaka1-chome,Shibuya-ku,Tokyo150-0043, 1-1, Taishidou4-chome,Setagaya-ku,Tokyo154-0004,Japan 1-1, Sannou2-chome,Ota-ku,Tokyo143-0023,Japan 19-10, Ueno1-chome,Taito-ku,Tokyo110-0005,Japan Tokyo 160-0023,Japan 1-4, Nishishinjuku1-chome,Shinjuku-ku, banks fromOctober11,2011(therewillbenochangeinbranchnumbersofSumitomoTrust).Thankyouforyourunderstanding. er, wedecidedtochangebranchnumbersandnameswithrespectsomebranchesthesamenamenumberattwotrust Trust andBankingCo.,Ltd.,willplantomergeonApril1,2012,establish“SumitomoMitsuiBank,Limited.”Prior The ChuoMitsuiTrustandBankingCompany,Limited,AssetSumitomo (As ofJune30,2011) Head Office, DomesticBranchesandSatelliteOffices Okazaki Branch Toyohashi Branch Shizuoka Branch Numazu Branch Tokai Fukui Branch Kanazawa Branch Toyama Branch Niigata Branch Hokuriku Sendai Branch Sapporo Branch Hokkaido, Tohoku Maebashi Branch Utsunomiya Branch Odawara Branch Fujisawa Branch Yokosuka Branch Kawasaki Branch Tama-Plaza Branch Yokohamaeki-Nishiguchi Branch Yachiyo Branch Futamatagawa RepresentativeOffice, 16, Koseidori-nishi3-chome,Okazaki,Aichi444-0059, Japan Aichi 440-0888,Japan 135, Ekimaeoodori1-chome,Toyohashi, 9-5, Miyuki-cho,Aoi-ku,Shizuoka420-0857,Japan 4-2, Otemachi5-chome,Numazu,Shizuoka410-0801,Japan 7-1, Chuo1-chome,Fukui910-0006,Japan 10, Shimotsutsumi-cho,Kanazawa,Ishikawa920-0917,Japan 1-36, Sakuramachi1-chome,Toyama930-0003,Japan 6-905, Nishibori-maedori,Chuo-ku,Niigata951-8062,Japan Miyagi 980-0021,Japan 3-3, Chuo3-chome,Aoba-ku,Sendai, Hokkaido 060-0001,Japan 3, Kita-ichijyou-nishi3-chome,Chuo-ku,Sapporo, Gunma 371-0023,Japan 2-12, Honmachi2-chome,Maebashi, 4-12, Hon-cho,Utsunomiya,Tochigi320-0033,Japan Kanagawa 250-0011,Japan 2-12, Sakae-cho1-chome,Odawara, Kanagawa 251-0055,Japan 21-1-101, Minami-Fujisawa,Fujisawa, Kanagawa 238-0008,Japan 3, Odaki-cho2-chome,Yokosuka, Kanagawa 210-0007,Japan 3-1, Ekimaehoncho,Kawasaki-ku,Kawasaki, Kanagawa 225-0002,Japan 15-8, Utsukushigaoka2-chome,Aoba-ku,Yokohama, Kanagawa 241-0821,Japan 3-2, Futamatagawa1-chome,Asahi-ku,Yokohama, Kanagawa 220-0005,Japan 6-31, Minami-saiwai1-chome,Nishi-ku,Yokohama, Chiba 276-0033,Japan 3-1, YachiyodaiMinami1-chome,Yachiyo, Yokohamaeki-Nishiguchi Branch Yokkaichi Branch Gifu Branch Ichinomiya Branch Nagoyaekimae Branch Nagoya Branch Oita Branch Kumamoto Branch Saga Branch Fukuoka Branch Kita-Kyushu Branch Takamatsu Branch Hiroshima Branch Okayama Branch Tottori Branch Chugoku, Shikoku,Kyushu Tsukaguchi Branch Kobe Branch Hirakata Branch Ikeda Branch Abeno Branch Namba Branch Umeda Branch Osaka Branch Kyoto Branch Otsu Branch Kinki Kanayamabashi RepresentativeOffice, 5-4, Suwa-cho,Yokkaichi,Mie510-8650,Japan 3, Nagazumi-cho2-chome,Gifu500-8175,Japan 7-15, Sakae3-chome,Ichinomiya,Aichi491-0858,Japan 26-8, Meieki3-chome,Nakamura-ku,Nagoya, Aichi 460-0022,Japan 14-9, Kanayama1-chome,Naka-ku,Nagoya, Aichi 460-0008,Japan 15-33, Sakae3-chome,Naka-ku,Nagoya, 3-23, Chuo-machi1-chome,Oita870-0035,Japan 10-34, Hanabata-cho,Kumamoto860-0806,Japan 3-2, Matsubara1-chome,Saga840-0831,Japan 9-17, Tenjin1-chome,Chuo-ku,Fukuoka810-0001, Japan Fukuoka 802-0004,Japan 1-5, Kaji-machi1-chome,Kokurakita-ku,Kita-Kyushu, 9-4, Konya-machi,Takamatsu,Kagawa760-0027,Japan 12-8, Motomachi,Naka-ku,Hiroshima730-0011,Japan 11-28, Omote-cho1-chome,Okayama700-0822,Japan 103, Imamachi1-chome,Tottori680-0822,Japan Hyogo 661-0002,Japan 15-1, Tsukaguchicho1-chome,Amagasaki, Hyogo 651-0088,Japan 1-18, Onoedori7-chome,Chuo-ku,Kobe, 19-1, Okahigashimachi,Hirakata,Osaka573-0032,Japan 1-1-134, Kureha-cho,Ikeda,Osaka563-0048,Japan 3-15, Abenosuji1-chome,Abeno-ku,Osaka545-0052,Japan 7-17, Namba3-chome,Chuo-ku,Osaka542-0076,Japan 8-47, Kakuda-cho,Kita-ku,Osaka530-0017,Japan 2-21, Kitahama2-chome,Chuo-ku,Osaka541-0041,Japan Shijyodori, Shimogyo-ku,Kyoto600-8007,Japan 66, Tachiurinishimachi,Higashiiru,Higashitoin, 3-10, Umebayashi1-chome,Otsu,Shiga520-0051,Japan Nagoya Branch Aichi 450-0002,Japan the merg- Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 79 Top Interview Management Integration 655 Third Avenue, 26th Floor, New York, NY 10017-5617, U.S.A. 8 Shenton Way, #14-02, Singapore Singapore 068811, Republic of Gong Office Building, Room 5011, 5th Floor, Chang Fu District, No. 26, Jianguomenwai Dajie, Chaoyang of China Beijing 100022, People’s Republic Street, 7th Floor, Milton Gate, 60 Chiswell London EC1Y 4SA, U.K. Overseas Representative Office Representative Overseas New York Representative Office New York Representative Office Singapore Representative Beijing Representative Office Office London Representative Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Corporate Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Corporate Promotion Office Promotion Customer Services Customer 33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan 33-1, Shiba 3-chome, Minato-ku, Consulplaza Consulplaza 9-4, Kojidai 5-chome, Nishi-ku, Kobe, Hyogo 651-2273, Japan 14-2, Takamatsu-cho, Nishinomiya, Hyogo 663-8204, Japan 3, Shinsenrihigashimachi 1-chome, Toyonaka, Osaka 560-0082, Japan 8-30-3, Matsugamoto-cho, Ibaraki, Osaka 567-0033, Japan 8-11, Gakuenkita 1-chome, Nara 631-0036, Japan 8-47, Kakuda-cho, Kita-ku, Osaka 530-0017, Japan 15-33, Sakae 3-chome, Naka-ku, Nagoya, Aichi 460-0008, Japan 66, Tachiurinishimachi, Higashiiru ,Higashitoin, Shijyodori, Shimogyo-ku, Kyoto 600-8007, Japan 4-1, Ofuna 1-chome, Kamakura, Kanagawa 247-0056, Japan 3, Kita-ichijyou-nishi, 3-chome, Chuo-ku, Sapporo, Hokkaido 060-0001, Japan 1-3, Nakagawachuo 1-chome, Tsuzuki-ku, Yokohama, Kanagawa 224-0003, Japan 16-1, Totsuka-cho, Totsuka-ku, Yokohama, Kanagawa 244-0003, Japan 7-3, Aobadai 1-chome, Aoba-ku, Yokohama, Kanagawa 227-0062, Japan 6-1, Kamiooka-nishi 1-chome, Konan-ku, Yokohama, Kanagawa 233-8556, Japan 6-1, Kita-saiwai 1-chome, Nishi-ku, Yokohama, Kanagawa 220-0004, Japan 1-1, Hiyoshi 2-chome, Kohoku-ku, Yokohama, Kanagawa 223-0061, Japan 1-1, Mizonokuchi 2-chome, Takatsu-ku, Kawasaki, Kanagawa 213-0001, Japan 4-1, Kamiasao 1-chome, Asao-ku, Kawasaki, Kanagawa 215-0021, Japan 7-1, Yatsu 7-chome, Narashino, Chiba 275-0026, Japan 1-11, Kashiwa 1-chome, Kashiwa, Chiba 277-0005, Japan 1-1, Fujiminohigashi 1-chome, Fujimi, Saitama 354-0036, Japan 5-1, Irifune 1-chome, Urayasu, Chiba 279-0012, Japan 44, Ochiai 1-chome, Tama, Tokyo 206-0033, Japan 44, Ochiai 1-chome, Tama, Tokyo 12-1, Takasago 1-chome, Urawa-ku, Saitama 330-0063, Japan 12-21, Jiyugaoka 2-chome, Meguro-ku, 12-21, Jiyugaoka 2-chome, Meguro-ku, Tokyo 152-0035, Japan 5-34, Seijo 6-chome, Setagaya-ku, Tokyo 157-0066, Japan 5-34, Seijo 6-chome, Setagaya-ku, Setagaya-ku, 12-5, Minamikarasuyama 4-chome, Tokyo 157-0062, Japan 1-4, Nishishinjuku 1-chome, Shinjuku-ku, 1-4, Nishishinjuku 1-chome, Shinjuku-ku, Tokyo 160-0023, Japan Consulplaza Seishinchuo Consulplaza Nishinomiyakitaguchi Consulplaza Senrichuo Consulplaza Ibaraki Consulplaza Gakuenmae Consulplaza Umeda Consulplaza Kyoto Consulplaza Sapporo Consulplaza Nagoya Consulplaza Kohoku Consulplaza Ofuna Consulplaza Aobadai Consulplaza Kamiooka Consulplaza Totsuka Consulplaza Yokohamaeki-Nishiguchi Consulplaza Hiyoshi Consulplaza Shinyurigaoka Consulplaza Kashiwa Consulplaza Mizonokuchi Consulplaza Shinurayasu Consulplaza Tsudanuma Consulplaza Tama center Consulplaza Urawa Consulplaza Fujimino Consulplaza Jiyugaoka Consulplaza Seijo Consulplaza Chitosekarasuyama Consulplaza Shinjyuku-Nishiguchi 80 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Note: Businesshandledbytrustcontractagenciesincludeslandtrust,designatedgiftcharitableetc. * Trust agencyisacollectivetermfortrustcontractagenciesundertheBusinessAct,and concurrentlyengaged Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Number ofContractedTrust Agencies* Corporate Data:TheChuoMitsuiTrustandBankingCompany,Limited Business Offices,etc.OperatingBankAgencyService Trade NameofBankServiceAgency Bank ServiceAgency Total Tax andAccountingFirms Business Enterprises Securities Firms Banks, Shinkinetc. Provision, etc.ofTrustBusinessbyFinancialInstitutions. City Banks,etc. (Total ofFinancialInstitutions) Shinkin Banks Second RegionalBanks Regional Banks Type (As ofJune30,2011) (50) 77 18 16 12 22 51 6 2 1 Head office,Osakabranch,Nagoyabranch(3outlets) Chuo MitsuiAssetTrustandBankingCompany,Limited Agencies (Note) Trust Contract (43) 45 12 11 20 44 — — 1 1 (As ofJune30,2011) Number ofAgencies Agencies EngagedinConcurrentBusiness Agency Service Stock Transfer (21) intrustbusinessunderArticle1oftheActon 23 14 22 — — 1 1 3 4 Service Related to Wills (28) 55 18 12 11 29 6 2 1 5 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 81 Top Interview Management Integration — — — — — — — — — — — — — — 50.0 44.0 50.0 CMTB Group CMTB Group CMTB Group Ownership (%) Ownership (%) Ownership (%) 5.0 50.0 49.9 29.0 50.0 (%) (%) (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Ownership Ownership Ownership Business Business Business Scope of Scope of Scope of Securities Business In the process of liquidation Investment Advisory Services Computer-related Services Property Management Business Agency Services Loan Administration Business Training Programs Business Investment, Management and Administration of Stocks Business Housing Loan Guaranty Business Credit Cards Business Residential Brokerage Business Finance Services Stock Transfer Agency Services Asset Management Business Investment Company (Asset Management) Agency Services Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Corporate Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Corporate (As of June 30, 2011) (As of (Millions) (Millions) (Millions) £20 $0.1 HK$11.04 ¥ 200 ¥ 100 ¥ 450 ¥ 100 ¥ 100 ¥ 100 ¥ 301 ¥ 300 ¥ 300 ¥ 3,150 ¥50 ¥ 300 ¥ 150 ¥ 2,000 Paid-in Capital Paid-in Capital Paid-in Capital Subsidiaries Affiliated Companies Affiliated Date of Date of Date of Establishment Establishment Establishment July 2, 1986 March 21, 2001 October 31, 2008 January 20, 1986 April 2, 1988 May 24, 1990 March 13, 2001 February 7, 1997 September 18, 2003 July 10, 1978 March 22, 1984 February 5, 1988 November 9, 2004 November 1, 1962 November 20, 2009 July 13, 2004 April 1, 2008 Location Location Location 7th Floor, Milton Gate, 60 Chiswell Street, London EC1Y 4SA, U.K. Suite 4108, Two Exchange Square, 8 Connaught Place, Central, Hong Kong 1-21, Shimo-Meguro 6-chome, Meguro-ku, Tokyo 33-1, Shiba 3-chome, Minato-ku, Tokyo 3-8, Higashi-nihonbashi 3-chome, Chuo-ku, Tokyo 3-8, Higashi-nihonbashi 3-chome, Chuo-ku, Tokyo 3-8, Higashi-nihonbashi 3-chome, Chuo-ku, Tokyo 33-1, Shiba 3-chome, Minato-ku, Tokyo 17-18, Meguro-honcho 2-chome, Meguro-ku, Tokyo 12-16, Koishikawa 1-chome, Bunkyo-ku, Tokyo 4-4, Nihonbashi-muromachi 3-chome, Chuo-ku, Tokyo 2-8, Nihonbashi-muromachi 3-chome, Chuo-ku, Tokyo 6-2, Otemachi 2-chome, Chiyoda-ku, Tokyo 2-8, Nihonbashi-muromachi 3-chome, Chuo-ku, Tokyo 4-3 Hitotsubashi 2-chome, Chiyoda-ku, Tokyo 8-4 Izumi 2-chome, Suginami-ku, Tokyo Name Name Name Company, Limited Co., Ltd. Co., Ltd. Company, Limited Company, Limited Company, Limited Co., Ltd. Co., Ltd. Technology Co., Ltd. Limited Company, Limited Partners Ltd. International Ltd. Hong Kong Limited Chuo Mitsui Finance Service Tokyo Securities Transfer Agent Chuo Mitsui Trust Realty Chuo Mitsui Create CMTB Equity Investments Chuo Mitsui Card Co., Ltd. CMTB Facilities Company, Chuo Mitsui Business Co., Ltd. Japan Stockholders Data Service Chuo Mitsui Realty Chuo Mitsui Guarantee Chuo Mitsui Loan Business Chuo Mitsui Information Mitsui & Co., Logistics Chuo Mitsui Trust Chuo Mitsui Investments, Inc. Chuo Mitsui Investments Japan Overseas Subsidiaries and Affiliated Companies Affiliated and Subsidiaries 82 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview oe:1.Thenumberofemployeesindicatestotalpersonnel,etc.,excludingsecondedtoothercompaniesandtemporary Notes: Yasuo Kuwana Director, ManagingExecutiveOfficer Shunichi Sakata Director, SeniorManagingExecutiveOfficer Ken Sumida Representative Director,President Board ofDirectors andExecutiveOfficers Corporate Data:ChuoMitsuiAssetTrust andBankingCompany, Limited Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Employees Average AnnualSalary Average LengthofEmployment Average Age Number ofEmployees Category 4. Theemployees’union,namedChuoMitsuiTrustGroupStaffUnion,has543members.Therearenoitemswarrantingspecialment 4. 3. Averageannualsalaryincludesbonusandextrapayment. 2. AveragelengthofemploymentpertainingtothestaffreassignedfromTheChuoMitsuiTrustandBankingCompany,Limitedincl (As ofMarch31,2011) Financial PlanningDepartment General Managerof Corporate PlanningDepartment General Managerof Hiroshi Misawa Managing ExecutiveOfficer Yasuhiro Yonezawa Corporate Auditor Norihide Kirihara Corporate Auditor Minoru Nakamura Corporate Auditor (As ofJuly1,2011) 39 years,10months 14 years,9months Trust AssetsPlanningDepartment General Managerof Jiro Araumi Executive Officer General ManagerofSystemPlanningDepartment Yasumi Nose Executive Officer Yoshinori Miyamoto Executive Officer Investment PlanningDepartment General Managerof Seigo Kimoto Executive Officer ¥ 8,941thousand March 31,2011 andpart-timestaff. ion betweenmanagementandlabor. 651 udes serviceyearsatthecompany. 13 years,11months 39 years,4months ¥ 8,741thousand March 31,2010 645 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 83 Top Interview Management Integration oya Branch g Pension Business Department I Pension Business Department II Pension Business Department Pension Business Department III Institutional Business Department Na Osaka Branch Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Corporate Data: Chuo Mitsui Asset Trust and Banking Company, Limited Company, Banking and Trust Asset Mitsui Data: Chuo Corporate Department Department ination Department g Department Department g Alternative Investment Department d g Department g d g Department ministration Department g ministration Department d ministration Department Investment Department d Coor d it Department d d ement Department d Investment Department g d an g Income Investment Department ration Promotion Department ration Promotion Business an d g d al Department g Corporate Plannin Inte Financial Plannin Corporate A Department Human Resources Risk Mana Plannin Compliance Department Le Assets Plannin Trust Pension Consultin Investment Plannin Pension Fun Fun Trust Equity Department Fixe Quantitative Investment Department Fun Pension Trust Department Pension Trust A Assets Trust Operations A System Plannin Internal Au
(As of April 1, 2011) (As of
itors Office itors d Au
Corporate
itors d Au
Corporate
Committee
Executive
itors d Au
Corporate
of d Boar
Directors of Sharehol of ers d
of d Boar General Meetin General g Organizational Chart Organizational 84 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1. “Trust contractagencies”referstotrustagenciesconducting,astheirownbusiness,actsfallingunderthe Notes: Osaka Branch Nagoya Branch Branches Corporate Data:ChuoMitsuiAssetTrustandBankingCompany,Limited Number ofContractedTrust Agencies* Not applicable Bank ServiceAgency Head Office * “Trust agencies”referstotrustagenciesasprovidedinArticle39,Paragraph1,Item3oftheOrdinanceforEnforcement Total Banks, Shinkinetc. 9 oftheFinancialInstrumentsandExchangeAct,amongintermediaryserviceforconclusiontrustcontracts. Financial Institutions,andagenciesconducting,astheirownbusiness,actsfallingunderthehandlingofpublicprivateo contract agenciesundertheTrustBusinessAct;engagedintrustbusiness(asconcurrentoperations)Article1o tracts pertainingtowhichthesaidinstitutionsareentrustedwithwholeorapartoftrustbusiness).Specifically,“trus Financial Institutions(thosewhoarecommissionedbyfinancialinstitutionscarryingouttrustbusinesstoperformanintermed 2-21, Kitahama2-chome,Chuo-ku,Osaka541-0041,Japan 15-33, Sakae3-chome,Naka-ku,Nagoya,Aichi460-0008,Japan 33-1, Shiba3-chome,Minato-ku,Tokyo105-8574,Japan City Banks,etc. (Total ofFinancialInstitutions) Shinkin Banks Second RegionalBanks Regional Banks Type 2. BusinesshandledbyagenciesengagedintrustbusinessasconcurrentoperationsincludessolicitationforNationalPensionF trust contractagenciesincludespensiontrust,securitiesmonetaryclaimandemployeetrust. in Article2,Paragraph8,Item9oftheFinancialInstrumentsandExchangeAct,amongintermediaryserviceforconclusion (As ofJune30,2011) (As ofJune30,2011) (47) 49 12 11 24 49 2 (As ofJune30,2011) Agencies (Note) Trust Contract t agencies”isthegenerictermusedtorefertrust handling ofpublicandprivateofferingasprovided ffering asprovidedinArticle2,Paragraph8,Item iary oragencyservicefortheconclusionofcon- (47) the ActonProvision,etc.ofTrustBusinessby f theActonProvision,etc.ofTrustBusinessby 49 12 11 24 49 2 Number ofAgencies und. of trustcontracts.Businesshandledby Agencies Engagedin Concurrent Business (22) 23 23 1 8 6 8 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 85 Top Interview Management Integration s Act. Executive Officer Masakazu Kinoshita Executive Officer Mashiba Fujita General Manager of Fukuoka Branch Executive Officer Shinji Nagano General Manager of Real Estate Business Development Department Executive Officer Sekine Kazuhiro General Manager of Corporate Trust Business Department I Executive Officer Akira Kamiyo General Manager of Global Credit Supervision Department I Executive Officer Nishino Toshiya General Manager of Kyoto Branch Hideaki Kosone Hideaki Executive Officer Nishimura Tadashi Management General Manager of Financial Department Executive Officer Tsuchiya Masahiro Planning General Manager of Corporate Department Executive Officer Takakura Toru Head Office Executive and General Manager of Integration Promotion Department Executive Officer Kokubo Ichiro General Manager of IT & Business Process Planning Department Executive Officer (As of July 1, 2011) (As of Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Toshio Yamasaki Toshio General Manager of Umeda Branch Executive Officer Akihiko Shirayama General Manager of Planning and Coordination Department and Head Office Executive Keiji Tanaka Regional Executive of Nagoya and General Manager of Nagoya Branch Executive Officer Satoru Abe General Manager of Retail Business Planning and Promotion Department Executive Officer Kunihiko Tsuneyoshi General Manager of Corporate Business Department I, Osaka Executive Officer Managing Executive Officer Jun Sasaki General Manager of Global Markets Planning Department and Treasury Units, Global Markets Managing Executive Officer Hideki Hiraki General Manager of Corporate Risk Management Department Executive Officer Shigemasa Shibata Executive Officer Managing Executive Officer Managing Executive Yagi Yasuyuki Managing Executive Officer Kitano Yukihiro Managing Executive Officer Kouji Nohara Managing Executive Officer Koji Yosomiya Managing Executive Officer Tanaka Yoshikazu Corporate Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking and Trust Sumitomo The Data: Corporate * Messrs. Koichi Takamura, Hitoshi Maeda and Toshio Hoshino are external auditors defined in Article 2, Item 16 of the Companie * Messrs. Koichi Takamura, Hitoshi Maeda and Toshio Hoshino are external auditors defined in Article 2, Item Corporate Auditor Sugita Teruhiko Corporate Auditor* Hoshino Toshio Corporate Auditor* Hitoshi Maeda Corporate Auditor Tsuboi Tatsuya Masaru Suzuki Corporate Auditor* Koichi Takamura Junichi Sayato Senior Corporate Auditor Director, Managing Executive Officer Koichi Hozumi Director, Managing Executive Officer Director, Managing Executive Officer Fuminari Suzuki Director, Managing Executive Officer Ohkubo Tetsuo Director, Managing Executive Officer Hidehiko Asai Rikiya Hattori Director, Senior Executive Officer Sumikazu Tsutsui Shuichi Kusakawa Director, Senior Executive Officer Kiyoshi Mukohara Director, Senior Executive Officer Akio Otsuka Executive Officer Director, Deputy President (Representative Director) Hitoshi Tsunekage Executive Officer Director, Deputy President (Representative Director) Chairman of the Board, President Chairman of the Director) (Representative Board of Directors and Executive Officers Executive and Directors of Board 86 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview oe:1.Figuresfortheaverageage,lengthofemploymentand monthlysalaryareroundeddowntotheirrespect Notes: Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Employees Corporate Data:TheSumitomoTrustandBankingCo.,Ltd. Average MonthlySalary Average LengthofEmployment Average Age Total Employees Category Female Male Female Male Female Male Female Male 4. AveragemonthlysalaryincludesovertimepayinMarchandexcludesbonuses. 3. Figures fortotalemployeesincludeoverseasstaff(ofwhomtherewere309asofMarch31,2007;3302008;3 2. Figures fortotalemployeesdonotincludetemporarystaff(ofwhomtherewere85asofMarch31,2007;812 31, 2010;and349asofMarch2011). March 31,2010;and98asof2011). (As ofMarch31,2011) 13 years,3months 11 years,8months 36 years,6months 41 years,6months 39 years,1month 9 years,11months March 31,2011 ¥ 324thousand ¥ 535thousand ¥ 435thousand 12 years,11months 11 years,3months 36 years,2months 41 years,3months 38 years,9months 3,025 3,085 6,110 9 years,6months ¥ 316thousand ¥ 521thousand ¥ 423thousand March 31,2010 3,039 3,065 6,104 41 years,1month 10 years,11months 12 years,8months 36 years,0months 38 years,7months 9 years,2months ¥ 313thousand ¥ 534thousand ¥ 429thousand March 31,2009 2,993 3,056 6,049 10 years,months 35 years,10months 40 years,11months 38 years,6months 12 years,5months 9 years,1month ¥ 316thousand ¥ 547thousand ¥ 438thousand March 31,2008 ive units. 60 asofMarch31,2009;349 008; 80asofMarch31,2009;90 2,876 2,993 5,869 10 years,months 35 years,11months 12 years,5months 40 years,8months 38 years,5months 9 years,2months March 31,2007 ¥ 300thousand ¥ 525thousand ¥ 420thousand 2,719 2,890 5,609 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 87 Top Interview Management Integration overseas) g lic Institutions Department in b d Pu d Tokyo Business Department Tokyo Department I Corporate Business Tokyo Department II Corporate Business Tokyo Department III Corporate Business Tokyo Department IV Corporate Business Tokyo Department V Corporate Business Tokyo Department VI Corporate Business Tokyo Department VII Corporate Business Tokyo Department VIII Corporate Business Tokyo Financial an Financial Institutions Department Osaka Business Department Corporate Business Department I, Osaka Corporate Business Department II, Osaka Corporate Business Department III, Osaka Offices Overseas Representative Branches (inclu Corporate Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Corporate Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report al Markets b Department Department Department g Department al Markets g ministration Department Department Department g Promotion Department Promotion g Department b d g g d g al Markets Department b an Department, Osaka Department g g Development Department ement Department g g d ement Department al Markets g al Markets ination Department Investment Department g b Department Department al Markets Marketin b ement Department d d al Markets Unit, Glo g g b d ency Department g b g ement Department ucts Promotion Department ucts Promotion ution Pension Department g Department Unit, Glo g d b an g visory Department ministration Department itors Office g g Quantitative Investment Department Coor ement Department ement Services Department d d d it Department it Supervision Department I it Supervision Department II d d g g ucts an d d d s Investment Department Real Estate Finance Department Finance Department visory Department Unit, Glo d Compliance Department d d d d g an an d Contri g ic Investin g d g ominium Loan Promotion Department ominium Loan Promotion Income Investment Department quarters of General Affairs Department Affairs quarters of General ration Promotion Department ration Promotion on Unit, Glo al Markets Plannin al Cre al Cre it Pro d d d g al an d b b b d exin uciary Risk Mana ency Business Promotion Department ency Business Promotion g d d g
Treasury Operations Department Treasury Unit, Glo Treasury Strate Business Development Unit, Glo Market Makin Marketin Trust Fun Trust Pension Investment Department Pension Business Department Business Department, Osaka Corporate Trust Business Department I Corporate Trust Business Department II Corporate Trust Glo Lon New York Unit, Glo New York Fixe Equity Investment Department In Pension Trust Department Pension Trust Pension Consultin Define Asset Mana Securities Business Promotion Department Securities Business Promotion Asset Mana Stock Transfer A Stock Transfer Structure Corporate A Structure Wholesale Operations Department Glo Glo Statutory Au Internal Au Real Estate Business Plannin Real Estate Business Development Department Real Estate Mana Real Estate Department I Real Estate Department II Real Estate Department III Real Estate Department, Osaka Real Estate Investment Department Securities Business Plannin Hea Corporate Plannin Fi Financial Mana Plannin Corporate A Personnel Department Le Customer Satisfaction Promotion Department Customer Satisfaction Promotion Corporate Risk Mana Research Department Department Research Plannin IT & Business Process Operations Process Plannin Operations Process Retail Business Plannin Direct Bankin Direct Private Bankin Department Personal Loan Promotion A Con Investment Pro Private A Wholesale Business Plannin International Business Plannin Cre IT System Promotion Department IT System Promotion & A IT System Infrastructure Business Research an Business Research Inte Architecture Consultin Architecture Asian Business Development Department Architecture Consultin Architecture Pension Actuarial Services Department
Services Business Services Services Business Services Business Business
(As of April 1, 2011) (As of Business Estate Real
Retail Financial Retail Wholesale Financial Wholesale al Markets al b Glo uciary Services uciary d Fi it Risk d ement Group
g Cre
Retail Client Services Group Services Client Retail d an Wholesale Units d an Departments d Specialize
Mana
ALM Committee ALM it Risk Committee Risk it d Cre ement Committee ement g Mana Asset uciary d Fi
Executive Committee Executive
visors d A CEO d an ent d Presi itors d Au Statutory
Chairman of the Boar the of Chairman d of Directors of d Boar of Statutory Au Statutory of d Boar itors d
General Meetin General of Sharehol of g ers d Organizational Chart Organizational 88 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Kawanishi Branch Kyoto Branch Nara SaidaijiBranch Wakayama Branch Yao Branch Ibaraki Branch Takatsuki Branch Hirakata Branch Senri ChuoBranch Toyonaka Branch Senboku SatelliteOffice,SakaiBranch Sakai Branch Abenobashi Branch Namba HousingLoanCenterSatelliteOffice Namba Branch Koshien SatelliteOffice,UmedaBranch Ashiya SatelliteOffice,UmedaBranch Nishinomiya SatelliteOffice,UmedaBranch Umeda Branch Osaka BusinessDepartment Kinki Branches Corporate Data:TheSumitomoTrustandBankingCo.,Ltd. 3-33, Takamatsu-cho,Nishinomiya,Hyogo663-8204,Japan 8-47, Kakuda-cho,Kita-ku,Osaka530-0017,Japan 5-33, Kitahama4-chome,Chuo-ku,Osaka540-8639,Japan 7-18, Chuo-cho,Kawanishi,Hyogo666-0016,Japan Kyoto 600-8411,Japan 612, Karasuma-doriShijo-sagaruSuiginya-cho,Shimogyo-ku, 1-50, SaidaijiHigashi-machi2-chome,Nara631-0821,Japan 3-6, HigashiKuramae-cho,Wakayama640-8203,Japan Osaka 581-0004,Japan 6-8, HigashiHon-machi3-chome,Yao, 2-30, Futaba-cho,Ibaraki,Osaka567-0829,Japan 5-20, Konya-machi,Takatsuki,Osaka569-0804,Japan 13-20, OkaHigashi-cho,Hirakata,Osaka573-0032,Japan Osaka 560-0082,Japan 1-3, ShinsenriHigashi-machi1-chome,Toyonaka, 1-1, Hon-machi1-chome,Toyonaka,Osaka560-0021,Japan Osaka 590-0115,Japan 2-1, Chayamadai1-chome,Minami-ku,Sakai, Osaka 590-0028,Japan 59-2, MikunigaokaMiyuki-dori,Sakai-ku,Sakai, 6-1, Abenosuji1-chome,Abeno-ku,Osaka545-0052,Japan 4-4, Namba4-chome,Chuo-ku,Osaka542-0076,Japan 1-60, Namba5-chome,Chuo-ku,Osaka542-0076,Japan * ThisofficewillbecloseddownonJuly8,2011. Hyogo 663-8166,Japan 4-3, KoshienTakashio-cho,Nishinomiya, 5-2, Funado-cho,Ashiya,Hyogo659-0093,Japan banks fromOctober11,2011(therewillbenochangeinbranchnumbersofSumitomoTrust).Thankyouforyourunderstanding. er, wedecidedtochangebranchnumbersandnameswithrespectsomebranchesthesamenamenumberattwotrust Trust andBankingCo.,Ltd.,willplantomergeonApril1,2012,establish“SumitomoMitsuiBank,Limited.”Prior The ChuoMitsuiTrustandBankingCompany,Limited,AssetSumitomo (As ofJune30,2011) Kichijoji Branch Aobadai SatelliteOffice,ShibuyaBranch Shibuya Branch Futako TamagawaSatelliteOffice, Shibuya Branch Shinjuku Branch Chitose KarasuyamaSatelliteOffice, Shinjuku Branch Tama SakuragaokaSatelliteOffice, Shinjuku Branch Ikebukuro Branch Kashiwa SatelliteOffice,UenoBranch Ueno Branch Tokyo ChuoBranch Tokyo BusinessDepartment South TowerSatelliteOffice, Tokyo BusinessDepartment Toranomon SatelliteOffice, Tokyo BusinessDepartment Kanto, Koshinetsu Himeji Branch Akashi Branch Kobe Branch Tokyo 180-0004,Japan 2-14, KichijojiHon-cho2-chome,Musashino, Kanagawa 227-0062,Japan 9-2, Aobadai2-chome,Aoba-ku,Yokohama, Tokyo 158-0094,Japan 22-12, Tamagawa2-chome,Setagaya-ku, 22-3, Jinnan1-chome,Shibuya-ku,Tokyo150-0041,Japan Tokyo 157-0062,Japan 4-31, MinamiKarasuyama6-chome,Setagaya-ku, 7-5, Sekido1-chome,Tama,Tokyo206-0011,Japan Tokyo 160-0022,Japan 26-11, Shinjuku3-chome,Shinjuku-ku, Tokyo 170-0013,Japan 41-7, HigashiIkebukuro1-chome,Toshima-ku, 1-2, Asahi-cho1-chome,Kashiwa,Chiba277-0852,Japan 20-8, Ueno1-chome,Taito-ku,Tokyo110-0005,Japan 3-1, Yaesu2-chome,Chuo-ku,Tokyo104-8476,Japan Tokyo 100-6611,Japan 9-2, Marunouchi1-chome,Chiyoda-ku, Tokyo 105-0003,Japan 7-1, NishiShinbashi1-chome,Minato-ku, 3-1, Yaesu2-chome,Chuo-ku,Tokyo104-8476,Japan 252, Ekimae-cho,Himeji,Hyogo670-0927,Japan Hyogo 673-0891,Japan 6-31, Oakashi-cho1-chome,Akashi, Hyogo 651-0087,Japan 1-6, Goko-dori8-chome,Chuo-ku,Kobe, Domestic Network Omiya Branch Koshigaya Branch Tsudanuma Branch Chiba Branch Hachioji Branch Tachikawa SatelliteOffice,KichijojiBranch Kanazawa Branch Shizuoka Branch Nagoyaekimae Branch Nagoya Branch Tokai, Hokuriku Sendai Branch Sapporo Branch Hokkaido, Tohoku Niigata Branch Kofu Branch Sagami OnoBranch Fujisawa Branch Konandai Branch Yokohama Branch Tokorozawa Branch Saitama 330-0846,Japan 6-1, Daimon-cho1-chome,Omiya-ku, Saitama 343-0816,Japan 14-22, Yayoi-cho,Koshigaya, Chiba 274-0825,Japan 14-5, MaebaraNishi2-chome,Funabashi, 1-15, Fujimi1-chome,Chuo-ku,Chiba260-0015,Japan 1-4, Asahi-cho,Hachioji,Tokyo192-0083,Japan Tokyo 190-0012,Japan 4-5, Akebono-cho2-chome,Tachikawa, Ishikawa 920-0869,Japan 1-18, KamiTsutsumi-cho,Kanazawa, 3-10, Koya-machi,Aoi-ku,Shizuoka420-0852,Japan Aichi 450-0003,Japan 24-30, MeiekiMinami1-chome,Nakamura-ku,Nagoya, Aichi 460-0008,Japan 1-1, Sakae4-chome,Naka-ku,Nagoya, Miyagi 980-0021,Japan 2-10, Chuo2-chome,Aoba-ku,Sendai, Hokkaido 060-0001,Japan 3, Kita1-joNishi3-chome,Chuo-ku,Sapporo, Niigata 951-8068,Japan 1178-1, KamiOkawaMae-doriRokuban-cho,Chuo-ku, Yamanashi 400-0031,Japan 17-14, Marunouchi1-chome,Kofu, Kanagawa 252-0303,Japan 13-7, Sagamiono3-chome,Minami-ku,Sagamihara, Kanagawa 251-0026,Japan 1-2, KugenumaHigashi,Fujisawa, Kanagawa 234-0054,Japan 15-2-102, Konandai3-chome,Konan-ku,Yokohama, Kanagawa 220-0005,Japan 14-10, MinamiSaiwai1-chome,Nishi-ku,Yokohama, 12-1, Hiyoshi-cho,Tokorozawa,Saitama359-1123,Japan the merg- Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 89 Top Interview Management Integration Overseas Network Overseas 15th Floor, GPF Witthayu Tower A, Suite 1502, 93/1 Wireless Road, Pathumwan, Bangkok 10330, Thailand 155 Bishopsgate, London EC2M 3XU, U.K. 155 Bishopsgate, London EC2M NY 10022, U.S.A 527 Madison Avenue, New York, 068811, 8 Shenton Way, #45-01, Singapore Republic of Singapore Pudong New Area, 50F Jin Mao Tower, 88 Shiji Dadao of China Shanghai 200121, People’s Republic 11th Floor, Summitmas I, JI. Jenderal Sudirman, Kaveling 61-62, Jakarta 12190, Indonesia 7th Floor, Chang Fu Gong Office Building, A-26, Jianguomenwai Dajie, Chaoyang District, Beijing 100022, People’s Republic of China 100-716, 20th Floor, Samsung Life Building, #150, 2-Ka, Taepyung-Ro, Chung-Ku, Seoul, Korea Branch Bangkok Representative Office London Branch New York Branch Singapore Branch Shanghai Branch Office Representative Jakarta Representative Office Beijing Representative Office Seoul Representative Office Corporate Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Corporate Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Promotion Office Promotion Customer Services Customer 9-2, Marunouchi 1-chome, Chiyoda-ku, 9-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6611, Japan 7-8-101, Kinsei-cho, Kagoshima 892-0828, Japan 12-1, Tenjin 2-chome, Chuo-ku, Fukuoka 810-0001, Japan 2-5, Tetori Hon-cho, Kumamoto 860-0808, Japan 11-1, Sanban-cho 4-chome, Matsuyama, 11-1, Sanban-cho 4-chome, Matsuyama, Ehime 790-0003, Japan 2-12, Kamiya-cho 2-chome, Naka-ku, 2-12, Kamiya-cho 2-chome, Naka-ku, Hiroshima 730-0031, Japan 4-24, Ebisu-machi 1-chome, Hofu, Yamaguchi 747-0036, Japan 1-5, Ekimoto-machi, Kita-ku, Okayama 700-0024, Japan 1-5, Ekimoto-machi, Kita-ku, Okayama 720-0063, Japan 15-1, Moto-machi, Fukuyama, Hiroshima Kagoshima Branch Kyushu Fukuoka Branch Kumamoto Branch Matsuyama Branch Yamaguchi Hofu Branch Okayama Branch Fukuyama Branch Hiroshima Branch Chugoku, Shikoku 90 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report * Trust agencyisacollectivetermfortrustcontractagenciesundertheBusinessAct,and concurrentlyengaged Number ofContractedTrust Agencies* Corporate Data:TheSumitomoTrustandBankingCo.,Ltd. Bank ServiceAgency Total Business Enterprises Securities Firms Banks, Shinkinetc. Business Offices,etc.OperatingBankAgencyService Trade NameofBankServiceAgency Provision, etc.ofTrustBusinessbyFinancialInstitutions. City Banks,etc. (Total ofFinancialInstitutions) Shoko ChukinBank Shinkin CentralBank,Banks Second RegionalBanks Regional Banks Type (As ofJune30,2011) (51) 69 11 13 29 53 5 2 1 8 Trust Contract Agencies Fukuoka Branch,OitaBranch(Total:20branches) Osaka Branch,KobeHiroshimaTakamatsu Kanazawa Branch,ShizuokaNagoyaKyoto Yokohamaekinishiguchi Branch,SapporoSendai Shibuya Branch,IkebukuroOmiyaChiba Head Office(Branch),ShinbashiBranch,Shinjyuku-Nishiguchi The ChuoMitsuiTrustandBankingCompany,Limited (37) 42 27 39 1 2 2 1 4 5 Agency Service Stock Transfer (As ofJune30,2011) (27) 22 28 32 — — — 5 4 1 Number ofAgencies Agencies EngagedinConcurrentBusiness intrustbusinessunderArticle1oftheActon Service Related to Wills (33) 48 10 20 34 4 1 1 6 6 National PensionFund Solicitation for (15) 15 15 — — — — 6 4 5 Top Message Special Feature on the
Financial Highlights Review of Operations Management Structure Corporate Data 91 Top Interview Management Integration 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.0 45.0 60.0 65.0 70.0 70.1 95.0 STB Group Ownership (%) 5.0 85.0 98.6 80.0 84.8 50.0 40.0 35.0 30.0 29.8 50.0 50.0 40.0 40.0 38.0 35.8 33.3 (%) 100.0 100.0 100.0 100.0 100.0 100.0 Ownership Business Scope of Corporate Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Corporate Building Management Business Loan Guarantee Business Consulting Business Money Lending Business Clerical Agency, Temporary Staffing Business Investment Advisory, Investment Management Training Programs, Personnel-related Services Investment Management, Investment Advisory IT, Calculation Outsourcing Business Leasing, Installment Purchase Services, Credit Card Business Credit Card Business Venture Capital Business IT, Calculation Outsourcing Businesses Investment Management, Investment Advisory Survey, Research, Consulting, Investment Advisory Real Estate Brokerage Business Banking Business Calculation of Pension Payments, etc., Clerical Outsourcing Business Money Lending Business Credit Cards Business Investment Corporation, Asset Management Business HR-related Services Business Trust, Banking Businesses Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report (As of June 30, 2011) (As of (Millions) ¥50 ¥ 300 ¥ 155 ¥ 6,000 ¥80 ¥ 300 ¥ 100 ¥ 17,363 ¥ 2,005 ¥ 25,584 ¥50 ¥35 ¥ 100 ¥ 300 ¥ 300 ¥ 300 ¥ 31,000 ¥ 1,500 ¥ 9,000 ¥ 255 ¥ 300 ¥ 519 ¥ 51,000 Paid-in Capital Date of Establishment June 30, 1948 August 25, 1977 November 6, 1989 January 22, 1992 July 3, 1995 November 7, 2005 April 3, 2006 December 1, 1959 July 1, 1998 February 27, 1967 June 24, 1983 March 22, 2000 February 12, 1973 November 1, 1986 July 1, 1988 January 24, 1986 June 3, 1986 December 21, 2004 January 18, 2001 October 27, 2004 October 22, 2004 May 20, 2002 June 20, 2000 Location 5-33, Kitahama 4-chome, Chuo-ku, Osaka 11-5, Nihonbashi-honcho 4-chome, Chuo-ku, Tokyo 3-1, Yaesu 2-chome, Chuo-ku, Tokyo 2-1, Yaesu 2-chome, Chuo-ku, Tokyo 1-10, Nikko-cho, Fuchu, Tokyo 9-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 9-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 7-1, Akasaka 9-chome, Minato-ku, Tokyo 1-1, Nikko-cho, Fuchu, Tokyo 5-30, Doujima 1-chome, Kita-ku, Osaka 11-5, Nihonbashi-honcho 4-chome, Chuo-ku, Tokyo 4-13, Kyobashi 1-chome, Chuo-ku, Tokyo 1-3, Shinsenri Nishi-machi 1-chome, Toyonaka, Osaka 3-1, Yaesu 2-chome, Chuo-ku, Tokyo 3-13, Toranomon 4-chome, Minato-ku, Tokyo 105-0003, Japan 3-1, Yaesu 2-chome, Chuo-ku, Tokyo 6-1, Roppongi 1-chome, Minato-ku, Tokyo 1, Nihonbashihakozakicho 24-chome, Chuo-ku, Tokyo 31-19, Shiba 2-chome, Minato-ku, Tokyo 31-19, Shiba 2-chome, Minato-ku, Tokyo 13-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 4-1, Shibakouen 2-chome, Minato-ku, Tokyo 8-11, Harumi 1-chome, Chuo-ku, Tokyo Name Bank, Ltd.* Limited Limited Co., Ltd. Limited Company Limited Co., Ltd. Co., Ltd. Management Co., Ltd. Co., Ltd. Co., Ltd. Company Limited Company Limited Co., Limited Loan & Finance, Limited Company, Limited Service, Ltd. Services Co., Ltd. SBI Sumishin Net Bank, Ltd. Top REIT Asset Management STB Investment Corporation STB Asset Management STB Research Institute STB Business Partners Nikko Asset Management Japan TA Solution, Ltd. Sumishin Guaranty STB Wealth Partners Sumishin Real Estate Sumishin Business Service STB Real Estate Investment HR One Corporation Japan Trustee Services Sumishin Life Card Company, Japan Pension Operation BUSINEXT CORPORATION Sumishin Realty Company, Sumishin Information Service Sumishin Panasonic Financial Sumishin Card Company, The Sumishin Shinko Japan * Sumitomo Mitsui Trust Holdings’ direct ownership of Japan Trustee Services Bank, Ltd., is 33.3%. * Subsidiaries and Affiliated Companies Affiliated and Subsidiaries 92 Special Feature on the Top Message Corporate Data Management Structure Review of Operations Financial Highlights Management Integration Top Interview Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Corporate Data:TheSumitomoTrustandBankingCo.,Ltd. STB PreferredCapital5 STB PreferredCapital4 STB PreferredCapital3 Overseas Zijin TrustCo.,Ltd. Crecer AssetFunding Fresco AssetFunding STB PreferredCapital2 STB FinanceCaymanLtd. STB OmegaInvestmentLtd. Sumitomo TrustandBankingCo. Sumitomo TrustandBanking The SumitomoTrustFinance STB Consulting(China)Co.,Ltd. Corporation Corporation (Cayman) Ltd. (Luxembourg) S.A. (H.K.) Ltd. (U.S.A.) (Cayman) Ltd. (Cayman) Ltd. (Cayman) Ltd. Name People’s RepublicofChina District, Nanjing210008, 2 ZhongshanRoad(N),Gulou 30th Floor,ZifengTower, Cayman Islands Grand Cayman,KY1-1104, PO Box309,UglandHouse, Cayman Islands Grand Cayman,KY1-1104, PO Box309,UglandHouse, Operations Department Banking Co.,Ltd.Treasury c/o TheSumitomoTrustand Cayman Islands, Grand Cayman,KY1-1104, PO Box309,UglandHouse, Operations Department Banking Co.,Ltd.Treasury c/o TheSumitomoTrustand Cayman Islands, Grand Cayman,KY1-1104, PO Box309,UglandHouse, Operations Department Banking Co.,Ltd.Treasury c/o TheSumitomoTrustand Cayman Islands, Grand Cayman,KY1-1104, PO Box309,UglandHouse, Operations Department Banking Co.,Ltd.Treasury c/o TheSumitomoTrustand Cayman Islands, Grand Cayman,KY1-1104, PO Box309,UglandHouse, Operations Department Banking Co.,Ltd.Treasury c/o TheSumitomoTrustand Cayman Islands, Grand Cayman,KY1-1104, PO Box309,UglandHouse, Cayman Islands Grand Cayman,KY1-1104, PO Box309,UglandHouse, Republic ofChina Beijing 100022,People’s Chaoyang District, Jianguomenwai Dajie, Office Building,A-26, 3rd Floor,ChangFuGong Hoboken, NJ07030,U.S.A. 111 RiverStreet, of Luxembourg Luxembourg, GrandDuchy 18, BoulevardRoyal,L-2449, Hong Kong 8 ConnaughtPlace,Central, Three ExchangeSquare, Suites 704-706,7thFloor, Location September 25,1992 August 29,2001 January 19,2000 November 26,2008 May 26,2008 February 14,2007 November 21,2005 January 19,1993 June 6,2006 October 25,2004 May 20,2002 April 22,1985 July 4,1978 Establishment Date of Paid-in Capital M 500 RMB 0.001 $ 0.001 $ 70,900 ¥ 111,600 ¥ 51,500 ¥ 51,500 ¥ $0.01$60 200 ¥ $56 $30 $45 (Millions) Trust, FinanceBusinesses Finance Business Finance Business Finance Business Finance Business Finance Business Finance Business Finance Business Finance Business Consulting Business Finance ,TrustBusinesses Securities Businesses Trust, Finance, Finance Business Scope of Business Ownership 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 (%) 19.9 75.0 0.0 0.0 Ownership (%) STB Group 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former Financial Summary: Inc. Holdings, Trust How to Read the Financial Statements of Trust Banks 94 Data/ Financial Management’s Discussion and Analysis 96 Consolidated Five-Year Summary 101 akn opn,Limited Company, Banking Financial Data: and Trust Mitsui Chuo The
Former Chuo Mitsui Trust Holdings, Inc. (“CMTH”) 102 Data/ Financial Consolidated Balance Sheets 102 Consolidated Statements of Income 103 Consolidated Statement of Comprehensive Income 104 Consolidated Statements of Changes in Equity 105 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Consolidated Statements of Cash Flows 107 iaca Data/ Financial Notes to Consolidated Financial Statements 109 Independent Auditors’ Report 156 Non-consolidated Balance Sheets (Supplemental Information–Unaudited) 157 Non-consolidated Statements of Income (Supplemental Information–Unaudited) 158 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
Financial Statements of Subsidiary Banks (Trust Account–Unaudited) 159 Mitsui Chuo Former
Notes to Financial Statements of Subsidiary Banks (Trust Account–Unaudited) 160 Group Trust The Chuo Mitsui Trust and Banking Company, Limited (“CMTB”) 162 Consolidated Balance Sheets 162 Consolidated Statements of Income 163
Consolidated Statement of Comprehensive Income 164 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Consolidated Statements of Changes in Equity 165 Consolidated Statements of Cash Flows 167 Notes to Consolidated Financial Statements 169 Independent Auditors’ Report 214
Non-consolidated Balance Sheets (Supplemental Information–Unaudited) 215 Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Non-consolidated Statements of Income (Supplemental Information–Unaudited) 216 Chuo Mitsui Asset Trust and Banking Company, Limited (“CMAB”) 217 Non-consolidated Balance Sheets (Supplemental Information–Unaudited) 217 Non-consolidated Statements of Income (Supplemental Information–Unaudited) 218 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 93 Financial Summary: How to Read the Financial Statements of Trust Banks Trust Group Financial Summary/ Former Chuo Mitsui
Trust Account and Banking Account The Concept of Net Business Profit (Gyomu Juneki )
Trust banks keep two types of accounts: the banking To calculate core profits—excluding items outside core account, which is the institution’s own; and the trust operations, such as stock earnings and losses and write- Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui account, which is the account of beneficiaries. Trust banks offs of non-performing assets—we calculate the net busi- have a number of trust accounts, reflecting the fact that ness profit by selecting only those items that express the they must separately administer the assets of each trust earnings from core operations from within the income contract. In principle, details of individual accounts are dis- statement. closed only to trustors or beneficiaries. Nevertheless, the Net business profit is calculated by subtracting the gen- total balances of money and pension trusts are recorded eral and administrative expenses and the transfer to the
Financial Data/ in the trust account’s aggregate balance sheet. The main general allowance for loan losses from gross business The Chuo Mitsui Trust and
Banking Company, Limited assets and liabilities of the trust account with principal profit. Gross business profit comprises: guarantee agreement are also disclosed. • Net interest income (such as from deposits, loans and Although trust assets nominally belong to trust banks, in marketable securities); fact they belong to the beneficiaries. The institutions • Net fees and commissions (trust fees, and fees and com- therefore receive trust fees for managing these accounts. missions); After deductions for fees and expenses, the profits gener- • Net trading income (earnings from trading purpose Financial Data/ ated with these accounts all become trust assets. transactions); and Banking Company, Limited Chuo Mitsui Asset Trust and Trust fees represent one source of income in the bank- • Net other business income (such as earnings from for- ing account. In other words, the income statements of the eign exchange and bond trading). banking account reflects both earnings from banking operations and from trust operations. Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
94 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary: How to Read the Financial Statements of Trust Banks omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Net Business Profit at Trust Banks To adjust for this difference and more accurately reflect Data/ Financial the profitability of core operations, trust banks calculate In addition to net business profit, trust banks disclose net business profit before trust account write-offs. This net business profit before trust account write-offs. With allows a comparison with other banks according to net trust banks, the net business profit calculated according to business profit. the formula mentioned above does not adequately reflect Pre-provision profit is calculated by adding back the akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The the profitability of core operations. Trust fees, which are transfer to the general allowance for loan losses from net iaca Data/ Financial part of business profit, are calculated after subtracting business profit before trust account write-offs. The pur- loan write-offs in the trust account. Therefore, net business pose of this calculation is to show the trend of a bank’s profit is smaller than a trust bank’s actual profitability in earning power by eliminating all credit costs including core operations. transfers to general reserves. hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Net Trust Fees (after trust account write-offs) +Net Interest Income Data/ Financial +Net Fees and Commissions +Net Trading Income +Net Other Business Income Gross Business Profit – General and Administrative Expenses (excluding non-recurring expenses)
Net Business Profit Data/ Disclosure Qualitative II Basel +Trust Account Write-offs Mitsui Chuo Former Net Business Profit before Trust Account Write-offs Group Trust
• Sample Calculation of Net Business Profit before Trust ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Account Write-offs Inc. Holdings, Trust
Net business profit other than for trust fees Trust fees before loan write-offs
Loan write-offs Net business profit other than for trust fees (a) Trust fees (b) in the trust account (c) 150 70 30 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel
Net business profit (a+b)
220
Net business profit before trust account write-offs (a+b+c)
250 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 95 Financial Summary: Management’s Discussion and Analysis Trust Group Financial Summary/ Former Chuo Mitsui
Overview of the Fiscal Year ended March 31, 2011 Business Performance Net Business Profit before Credit Cost Financial and Economic Environment Consolidated net business profit before credit costs With respect to the economic conditions during this decreased by ¥2.0 billion from FY2009 to ¥116.4 billion, main- Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui period, the pace of economic growth in developing coun- ly due to shrinkage of loan-deposit margin and a decrease in tries slowed down slightly due to tightened monetary poli- the average balance of the bond portfolio, despite a recov- cy, while U.S. or other developed countries’ economies ery in net fees and commissions (such as sales fees of invest- have recovered increasingly by the effect of economic ment trusts and real estate brokerage fees), and a significant measures. In Japan, economic condition seemed to start increase in net gains on bonds from FY2009. recovering mainly in the fields of export and production
Financial Data/ from the beginning of year 2011 while there was a tempo- Ordinary Profit and Net Income The Chuo Mitsui Trust and
Banking Company, Limited rary stagnation in last autumn due to weakened demand Consolidated ordinary profit increased by ¥1.2 billion from abroad and diminished policy effect. However, the from FY2009 to ¥84.7 billion. Consolidated net income Great East Japan Earthquake which occurred on March 11 increased by ¥0.4 billion from FY2009 to ¥47.2 billion and has seriously impacted the Japanese economy by reduc- net income per common share is ¥28.51. ing production. In the financial markets, short-term interest rates
Financial Data/ Total Credit Costs (overnight call rates) hovered below the Bank of Japan’s Consolidated total credit costs improved by ¥15.3 bil- Banking Company, Limited Chuo Mitsui Asset Trust and target rate of 0.1% after comprehensive monetary easing lion from FY2009, leading to the reversal of ¥4.5 billion measures in October. These rates fell to 0.06% level at the due to improvement in the credit status of clients which end of the current fiscal year since Bank of Japan has resulted in the reversal of the allowance for loan losses, strengthened monetary easing measures after the Great despite posting of required allowance for loan losses after East Japan Earthquake. Long-term interest rates climbed estimating the effects of the Great East Japan Earthquake Trust Group up to mid 1.2% after falling to mid 0.8% level in October. in 4Q FY2010. Former Chuo Mitsui Basel II Qualitative Disclosure Data/ The Nikkei Stock Average hovered weakly due to wors- ening financial problems in Europe and appreciating yen Analysis of Profit/Loss trend. It finished at the mid ¥9,700 level although drop- Net interest income decreased by ¥11.9 billion from ping over ¥1,000 to the ¥8,200 level soon after the Great FY2009 to ¥100.7 billion. In addition to a smaller loan- East Japan Earthquake. deposit margin, declines in the average balances of bond In the foreign exchange market, the yen trended higher portfolio and loans resulted in lower interest revenues. Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ against the dollar, appreciating from the ¥93 range in early Net fees and commissions increased by ¥2.0 billion from October to the ¥80 range at the end of the period, and FY2009 to ¥61.6 billion, mainly due to an increase in sales hovered around low ¥80 range afterward. The yen appreci- volume of investment trusts and real estate increased by ated to ¥76.26, the highest level in the past, in overseas ¥1.4 billion from FY2009, due to growth in real estate bro- market on March 17, but finished 2010 at low ¥83 range kerage transactions, while stock transfer agency services after coordinated intervention at the end of the period. decreased by ¥1.2 billion from FY2009, due to the disap- pearance of demand resulting from the adoption of paper- Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited less system for stock certificates. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
96 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary: Management’s Discussion and Analysis omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Net trading income increased by ¥0.9 billion from ness profit decreased by ¥7.6 billion from FY2009 to Data/ Financial FY2009 to ¥3.5 billion. ¥239.6 billion. Net other ordinary income increased by ¥7.8 billion On the other hand, general and administrative expens- year-on-year mainly due to a increase in gains on sales of es decreased by ¥4.4 billion from FY2009 to ¥126.4 billion. foreign bonds. Net business profit before credit costs was ¥116.4 bil- As a result of the aforementioned figures, gross busi- lion, a decrease of ¥2.0 billion from FY2009. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The iaca Data/ Financial Operating Results (Consolidated)
Millions of Yen Millions of U.S. Dollars Years Ended March 31 2011 2010 Changes 2011 Trust Fees ¥ 46,720 ¥ 50,874 ¥ (4,153) $ 561 Net Interest Income 100,783 112,690 (11,907) 1,212 hoMtu se rs and Trust Asset Mitsui Chuo Net Fees and Commissions 61,688 59,678 2,009 741 Limited Company, Banking
Net Trading Income 3,501 2,592 908 42 Data/ Financial Net Other Ordinary Income 26,995 19,186 7,809 324 General and Administrative Expenses(*) 126,416 130,823 (4,406) 1,520 Net of Other Income and Expenses (26,489) (29,400) 2,911 (318) Income before Income Taxes and Minority Interests 86,783 84,798 1,985 1,043 Net Income ¥ 47,277 ¥ 46,826 ¥ 450 $ 568
Net Business Profit before Credit Costs ¥ 116,443 ¥ 118,487 ¥ (2,044) $ 1,400 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former (*) Excluding non-recurring expenses. rs Group Trust
Trust Fee
The Chuo Mitsui Trust and Banking Company, Limited and Chuo Mitsui Asset Trust and Banking Company, Limited receive for controlling and managing trust properties held under trust agreement between them and their clients. ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Net Interest Income (Consolidated)
Millions of Millions of Yen U.S. Dollars Years Ended March 31 2011 2010 Changes 2011 Interest Income ¥ 160,477 ¥ 181,592 ¥ (21,114) $ 1,929 Interest on Loans and Discounts 106,584 122,029 (15,445) 1,281 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Interest and Dividends on Securities 48,613 55,570 (6,957) 584 Interest on Due from Banks 452 189 262 5 Interest on Interest Rate Swaps 2,948 1,998 949 35 Other 1,879 1,803 75 22 Interest Expenses ¥ 59,694 ¥ 68,901 ¥ (9,206) $ 717 Interest on Deposits 41,318 46,393 (5,075) 496 Interest on Borrowings 2,675 3,838 (1,162) 32 ae IQatttv icoueData/ Disclosure Quantitative II Basel
7,512 and Trust Asset Mitsui Chuo
Interest on Bonds Payable 7,642 129 91 Limited Company, Banking Interest on Payables under Securities Lending Transactions 2,537 3,483 (945) 30 Other 5,520 7,672 (2,152) 66 Net Interest Income ¥ 100,783 ¥ 112,690 ¥ (11,907) $ 1,212
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 97 Financial Summary: Management’s Discussion and Analysis Trust Group Financial Summary/ Former Chuo Mitsui
Net Other Ordinary Income (Consolidated)
Millions of Yen Millions of U.S. Dollars Years Ended March 31 2011 2010 Changes 2011
Financial Data/ Other Ordinary Income ¥ 36,224 ¥ 27,505 ¥ 8,719 $ 435 Trust Holdings, Inc. Former Chuo Mitsui Gains on Foreign Exchange 231 1,283 (1,052) 2 Gains on Sales and Redemption of Bonds (a) 35,981 21,764 14,216 432 Other 11 4,456 (4,445) 0 Other Ordinary Expenses ¥ 9,228 ¥ 8,318 ¥ 909 $ 110 Losses on Sales and Redemption of Bonds (b) 8,611 8,245 366 103 Losses on Derivatives 472 — 472 5 Other 143 73 70 1 Financial Data/ Net Other Ordinary Income ¥ 26,995 ¥ 19,186 ¥ 7,809 $ 324 The Chuo Mitsui Trust and Banking Company, Limited Net Gains on Bonds (a)-(b) ¥ 27,369 ¥ 13,519 ¥ 13,849 $ 329
General and Administrative Expenses (Consolidated)
Millions of Millions of Yen U.S. Dollars Years Ended March 31 2011 2010 Changes 2011 Financial Data/ Taxes Other than Income Taxes ¥ 5,535 ¥ 5,765 ¥ (230) $ 66 Banking Company, Limited Chuo Mitsui Asset Trust and Personnel Expenses 61,095 66,973 (5,878) 734 Other (Non-personnel Expenses) 59,785 58,084 1,701 719 General and Administrative Expenses (*) ¥ 126,416 ¥ 130,823 ¥ (4,406) $ 1,520
(*) Excluding non-recurring expenses. Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
98 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary: Management’s Discussion and Analysis omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Net Other Income and Expenses (Consolidated) Data/ Financial
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 Years Ended March 31 Carrying Amount Carrying Amount Changes Carrying Amount Other Income ¥ 28,865 ¥ 24,740 ¥ 4,124 $ 347 akn opn,Limited Company, Banking
Gains on Sales of Stocks and Other Securities (a) 15,838 16,055 (217) 190 and Trust Mitsui Chuo The Net Reversal of Allowance for Loan Losses 764 — 764 9 iaca Data/ Financial Recoveries of Written-off Claims 6,926 2,147 4,779 83 Other 5,336 6,537 (1,201) 64 Other Expenses ¥ 55,354 ¥ 54,141 ¥ 1,212 $ 665 Losses on Sales of Stocks and Other Securities (b) 6,220 1,578 4,641 74 Losses on Devaluation of Stocks and Other Securities (c) 6,692 2,238 4,454 80 Written-off of Loans 3,173 10,339 (7,166) 38 hoMtu se rs and Trust Asset Mitsui Chuo Provision for Allowance for Loan Losses — 360 (360) — Limited Company, Banking
Losses on Sale of Loans — 7 (7) — Data/ Financial Losses on Disposal of Tangible Fixed Assets 759 501 257 9 Losses on Impairment of Fixed Assets 1,108 41 1,108 13 Management Integration Expenses 3,397 525 2,871 40 Other 34,003 38,589 (4,585) 408 Net of Other Income and Expenses ¥ (26,489) ¥ (29,400) ¥ 2,911 $ (318) Net Gains on Stocks and Other Securities (a)-(b)-(c) ¥ 2,925 ¥ 12,238 ¥ (9,313) $ 35 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former rs Group Trust Financial Conditions Total Equity As of March 31, 2011, consolidated total equity decreased Total Assets by ¥2.4 billion from FY2009 to ¥844.1 billion, mainly due to a As of March 31, 2011, consolidated total assets decreased decrease in valuation difference on available-for-sale securi- by ¥746.8 billion from FY2009 to ¥14,231.0 billion. ties, while an increase in retained earnings. ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former In the major account, the balance of loan and bills dis- Inc. Holdings, Trust counted decreased by ¥77.6 billion from FY2009 to Assets Classified under the Financial Reconstruction Act ¥8,864.2 billion, and that of securities decreased by As of March 31, 2011, the total of “Bankrupt and practi- ¥815.1billion from FY2009 to ¥3,710.5 billion. cally Bankrupt,” “Doubtful.“ And “Substandard“ (Banking and trust accounts combined; non-consolidated basis) Total Liabilities loans decreased by ¥28.6 billion year-on-year. Bankrupt akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The As of March 31, 2011, consolidated total liabilities and practically bankrupt categories decreased by ¥2.5 bil- Data/ Disclosure Quantitative II Basel decreased by ¥744.4 billion from FY2009 to ¥13,386.9 bil- lion, and the Doubtful category decreased by ¥33.0 billion. lion, mainly due to a decrease in payables under securities The percentage of these classified assets to total loans lending transactions and borrowed money. The balance of and equipment assets was 0.97%. deposits increased by ¥531.9 billion from FY2009 to ¥9,619.0 billion, mainly due to an increase in time deposits ae IQatttv icoueData/ Disclosure Quantitative II Basel
and ordinary deposits. and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 99 Financial Summary: Management’s Discussion and Analysis Trust Group Financial Summary/ Former Chuo Mitsui
Total Assets Classified under the Financial Reconstruction Act (Banking and Trust Accounts Combined; Non-consolidated)
Classification Billions of Yen, Except for Percentages Balance Coverage Ratio Allowance Ratio As of March 31 2011 2010 2011 2010 2011 2010 Financial Data/ Bankrupt and Practically Bankrupt (A) ¥ 17.3 ¥ 19.8 100% 100% 100% 100% Trust Holdings, Inc. Former Chuo Mitsui Doubtful (B) 44.0 77.0 86% 92% 40% 67% Substandard (C) 28.2 21.2 41% 23% 13% 12% Ordinary Assets 9,196.7 9,258.8 Total of (A), (B) and (C) ¥ 89.5 ¥ 118.2 Total ¥ 9,286.3 ¥ 9,377.1
Financial Data/ Breakdown of Credit Costs (Non-consolidated; Banking and Trust Accounts) The Chuo Mitsui Trust and Banking Company, Limited Millions of Millions of Yen U.S. Dollars Years Ended March 31 2011 2010 Changes 2011 Banking Account ¥ (6,756) ¥ 3,884 ¥ (10,640) $ (81) Written-off Loans 1,264 7,006 (5,741) 15 Provision for Allowance for Loan Losses — — — —
Financial Data/ General Allowance — — — — Banking Company, Limited Chuo Mitsui Asset Trust and Specific Loan Loss Allowance — — — — Losses on Sale of Loans — 7 (7) — Recoveries of Written-off Claims (2,202) (1,685) (516) (26) Reversal of Allowance for Loan Losses (5,819) (1,444) (4,374) (70) Trust Account ¥— ¥ 2,268 ¥ (2,268) $— Total Credit Costs ¥ (6,756) ¥ 6,152 ¥ (12,909) $ (81) Trust Group Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Net Interest Spread (CMTB; Non-consolidated Domestic Banking account, loan trust and JOMTs combined)
Percentage Points Years Ended March 31 2011 2010 Changes Average Yield on Interest-earning Assets (a) 1.10% 1.20% (0.09)% Loans and Bills Discounted (A) 1.34 1.51 (0.17) Securities 0.87 0.80 0.07 Average Yield on Interest-bearing Liabilities (b) 0.43 0.46 (0.02) Trust Holdings, Inc. Former Chuo Mitsui Deposits (B) 0.41 0.47 (0.05) Basel II Quantitative Disclosure Data/ Gross Margin (a)-(b) 0.67 0.73 (0.06) Loans-Deposit Margin (A)-(B) 0.92 1.04 (0.11) Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
100 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Summary: Summary/ Financial Consolidated Five-Year Summary Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
CMTH Data/ Financial Billions of Yen 2011 2010 2009 2008 2007 Banking Account (As of March 31) Total Assets ¥ 14,231.0 ¥ 14,977.9 ¥ 15,086.4 ¥ 14,472.8 ¥ 14,090.5 Cash and Due from Banks 502.1 262.2 232.9 212.5 498.0 akn opn,Limited Company, Banking Call Loans and Bills Bought 6.9 9.8 15.3 204.8 111.1 and Trust Mitsui Chuo The Securities 3,710.5 4,525.6 4,896.6 4,647.9 4,511.7 iaca Data/ Financial Loans and Bills Discounted 8,864.2 8,941.9 8,584.2 7,852.0 7,377.3 Foreign Exchanges 12.2 0.7 0.8 0.8 0.9 Customers’ Liabilities for Acceptances and Guarantees 317.0 384.1 475.5 584.0 711.1 Total Liabilities ¥ 13,386.9 ¥ 14,131.4 ¥ 14,397.9 ¥ 13,453.6 ¥ 12,953.1 Deposits 9,619.0 9,087.1 9,446.4 8,830.5 8,529.7 hoMtu se rs and Trust Asset Mitsui Chuo Call Money and Bills Sold 351.9 306.1 253.4 291.5 547.3 Limited Company, Banking
Borrowed Money 678.9 1,217.2 1,692.5 474.3 393.2 Data/ Financial Foreign Exchanges — 0.0 0.0 0.0 0.0 Acceptances and Guarantees 317.0 384.1 475.5 584.0 711.1 Total Equity ¥ 844.1 ¥ 846.5 ¥ 688.4 ¥ 1,019.2 ¥ 1,137.3
Trust Account* (As of March 31)
Total Assets ¥ 38,432.0 ¥ 37,835.1 ¥ 36,070.2 ¥ 48,171.7 ¥ 45,154.0 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Loans 231.8 254.9 609.3 676.8 779.6 rs Group Trust Securities 80.4 82.6 84.5 8,306.9 7,662.3 Beneficiary Rights 30,598.5 29,356.1 27,193.3 30,578.5 28,750.0 Total Liabilities ¥ 38,432.0 ¥ 37,835.1 ¥ 36,070.2 ¥ 48,171.7 ¥ 45,154.0 Money Trusts 9,082.6 9,453.1 10,059.2 18,601.5 17,336.2 Pension Trusts 6,995.5 6,749.4 6,723.0 6,894.8 6,657.5 Property Formation Benefit Trusts 13.3 13.6 14.3 15.4 16.3 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Loan Trusts 228.2 358.7 504.0 664.1 835.8 Inc. Holdings, Trust Securities Investment Trusts 12,494.5 11,222.4 8,507.6 11,729.5 11,022.7
Statements of Income (Fiscal years ended March 31) Total Income ¥ 358.8 ¥ 368.0 ¥ 422.2 ¥ 468.5 ¥ 468.0 Total Expenses 272.0 283.2 531.9 332.7 288.3 Income (Loss) before Income Taxes and Minority Interests 86.7 84.7 (109.6) 135.7 179.6 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Net Income (Loss) ¥ 47.2 ¥ 46.8 ¥ (92.0) ¥ 71.8 ¥ 112.7 Data/ Disclosure Quantitative II Basel
Note: All figures are based on the consolidated financial statements. * All figures are combined totals from CMTB, and CMAB. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 101 Financial Data: Consolidated Balance Sheets Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) and Consolidated Subsidiaries As of March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Assets Financial Data/ Cash and Cash Equivalents (Note 27) ¥ 465,221 ¥ 237,851 $ 5,594 Trust Holdings, Inc. Former Chuo Mitsui Due from Banks Other than Due from The Bank of Japan (Note 27) 36,939 24,388 444 Call Loans and Bills Bought (Note 27) 6,936 9,884 83 Receivables under Securities Borrowing Transactions (Note 27) 9,378 1,521 112 Monetary Claims Bought (Note 27) 99,921 98,818 1,201 Trading Assets (Notes 27 and 28) 36,568 22,778 439 Money Held in Trust (Note 27) 2,065 2,234 24 Securities (Notes 4, 10 and 27) 3,710,513 4,525,683 44,624 Loans and Bills Discounted (Notes 5, 10 and 27) 8,864,266 8,941,948 106,605 Financial Data/ Foreign Exchanges (Note 6) 12,259 767 147
The Chuo Mitsui Trust and Other Assets (Notes 7, 10, 27 and 28) 446,145 Banking Company, Limited 393,956 4,737 Tangible Fixed Assets (Note 8) 123,584 126,000 1,486 Intangible Fixed Assets (Note 9) 56,994 58,940 685 Deferred Tax Assets (Note 25) 143,055 150,296 1,720 Customers’ Liabilities for Acceptances and Guarantees (Note 11) 317,098 384,117 3,813 Allowance for Loan Losses (47,690) (53,410) (573) Total Assets ¥ 14,231,070 ¥ 14,977,966 $ 171,149 Financial Data/ Liabilities and Equity Banking Company, Limited Chuo Mitsui Asset Trust and Liabilities: Deposits (Notes 10, 12 and 27) ¥ 9,619,022 ¥ 9,087,107 $ 115,682 Call Money and Bills Sold (Note 27) 351,956 306,161 4,232 Payables under Securities Lending Transactions (Notes 10 and 27) 1,161,653 1,702,697 13,970 Trading Liabilities (Notes 27 and 28) 7,716 7,911 92 Borrowed Money (Notes 10, 13 and 27) 678,983 1,217,246 8,165 Foreign Exchanges (Note 6) — 21 — Trust Group Bonds Payable (Notes 14 and 27) 267,247 234,750 3,214
Former Chuo Mitsui Due to Trust Accounts (Note 27) 801,657 995,612 9,641 Basel II Qualitative Disclosure Data/ Other Liabilities (Notes 15, 27 and 28) 156,055 170,887 1,876 Provision for Bonuses 3,133 3,160 37 Provision for Retirement Benefits (Note 16) 2,859 2,662 34 Provision for Directors’ Retirement Benefits 253 1,704 3 Provision for Contingent Losses (Note 17) 15,335 12,022 184 Deferred Tax Liabilities (Note 25) 3,967 5,346 47 Acceptances and Guarantees (Note 11) 317,098 384,117 3,813 Total Liabilities ¥ 13,386,939 ¥ 14,131,410 $ 160,997 Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Commitments and Contingent Liabilities (Note 18)
Equity (Note 19): Capital Stock (Note 20) ¥ 261,608 ¥ 261,608 $ 3,146 Retained Earnings 406,002 377,619 4,882 Treasury Stock-at Cost 411,673 Shares in 2011 and 366,149 Shares in 2010 (Note 20) (282) (270) (3) Accumulated Other Comprehensive Income Valuation Difference on Available-for-sale Securities 4,408 35,002 53 Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Deferred Gains or Losses on Hedges 3,406 2,705 40 Revaluation Reserve for Land (Note 8) (16,537) (15,532) (198) Foreign Currency Translation Adjustment (2,129) (1,738) (25) Total 656,476 659,394 7,895 Minority Interests 187,653 187,161 2,256 Total Equity ¥ 844,130 ¥ 846,556 $ 10,151 Total Liabilities and Equity ¥ 14,231,070 ¥ 14,977,966 $ 171,149 See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
102 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Consolidated Statements of Income Group Trust Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Income: Interest Income: Interest on Loans and Discounts ¥ 106,584 ¥ 122,029 $ 1,281 akn opn,Limited Company, Banking Interest and Dividends on Securities 48,613 55,570 584 and Trust Mitsui Chuo The 181
Interest on Call Loans and Bills Bought 367 4 Data/ Financial Other Interest Income (Note 21) 4,912 3,810 59 Trust Fees (Note 22) 46,720 50,874 561 Fees and Commissions 82,579 80,790 993 Trading Income 3,943 2,592 47 Other Ordinary Income (Note 23) 36,224 27,505 435 Other Income (Note 24) 28,865 24,740 347 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Total Income ¥ 358,809 ¥ 368,095 $ 4,315 iaca Data/ Financial
Expenses: Interest Expenses: Interest on Deposits ¥ 41,318 ¥ 46,393 $ 496 Interest on Call Money and Bills Sold 537 725 6 Interest on Borrowings 2,675 3,838 32
Other Interest Expenses (Note 21) 15,163 17,943 182 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Fees and Commissions Payments 20,890 21,112 251 rs Group Trust Trading Expenses 441 — 5 Other Ordinary Expenses (Note 23) 9,228 8,318 110 General and Administrative Expenses 140,931 149,232 1,694 Other Expenses (Note 24) 40,840 35,733 491 Total Expenses ¥ 272,026 ¥ 283,296 $ 3,271 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Income before Income Taxes and Minority Interests ¥ 86,783 ¥ 84,798 $ 1,043 Inc. Holdings, Trust
Income Taxes (Note 25): Income Taxes-current 6,452 8,149 77 Income Taxes-deferred 25,524 22,150 306 Total Income Taxes 31,977 30,299 384 Income before Minority Interests 54,806 — 659 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Minority Interests in Income 7,529 7,672 90 Data/ Disclosure Quantitative II Basel Net Income ¥ 47,277 ¥ 46,826 $ 568
U.S. Dollars Yen (Note 1) 2011 2010 2011 Per Share of Common Stock (Note 31): Basic Net Income ¥ 28.51 ¥ 31.41 $ 0.34 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 103 Financial Data: Consolidated Statement of Comprehensive Income Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Income before Minority Interests ¥ 54,806 ¥— $ 659 Financial Data/ Other Comprehensive Income Trust Holdings, Inc. Former Chuo Mitsui Valuation Difference on Available-for-sale Securities (30,147) — (362) Deferred Gains or Losses on Hedges 701 — 8 Foreign Currency Translation Adjustment (390) — (4) Attributable to Equity Method Affiliates (22) — (0) Total Other Comprehensive Income ¥ (29,860) ¥— $ (359) Comprehensive Income
Financial Data/ Comprehensive Income Attributable to Owners of the Parent 16,993 — 204 Comprehensive Income Attributable to Minority Interests 7,952 — 95 The Chuo Mitsui Trust and Banking Company, Limited Comprehensive Income ¥ 24,945 ¥— $ 300 Financial Data/ Banking Company, Limited Chuo Mitsui Asset Trust and Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
104 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Consolidated Statements of Changes in Equity Group Trust Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Capital Stock Balance at the End of the Previous Period ¥ 261,608 ¥ 261,608 $ 3,146 Changes of Items during the Period akn opn,Limited Company, Banking Total Changes of Items during the Period ¥—¥— $— and Trust Mitsui Chuo The ¥ 261,608
Balance at the End of the Current Period ¥ 261,608 $ 3,146 Data/ Financial Retained Earnings Balance at the End of the Previous Period ¥ 377,619 ¥ 338,564 $ 4,541 Changes of Items during the Period Cash Dividends (19,896) (7,765) (239) Net Income 47,277 46,826 568 Disposal of Treasury Stock (3) (5) (0) hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Reversal of Revaluation Reserve for Land 1,004 — 12 Total Changes of Items during the Period ¥ 28,382 ¥ 39,055 $ 341 Data/ Financial Balance at the End of the Current Period ¥ 406,002 ¥ 377,619 $ 4,882 Treasury Stock Balance at the End of the Previous Period ¥ (270) ¥ (262) $(3) Changes of Items during the Period Purchase of Treasury Stock (17) (18) (0)
Disposal of Treasury Stock 5 9 0 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Total Changes of Items during the Period ¥ (11) ¥(8) $(0) rs Group Trust Balance at the End of the Current Period ¥ (282) ¥ (270) $(3) Accumulated Other Comprehensive Income Valuation Difference on Available-for-sale Securities Balance at the End of the Previous Period ¥ 35,002 ¥ (83,325) $ 420 Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity (30,593) 118,327 (367) ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Total Changes of Items during the Period ¥ (30,593) ¥ 118,327 $ (367) Inc. Holdings, Trust Balance at the End of the Current Period ¥ 4,408 ¥ 35,002 $ 53 Deferred Gains or Losses on Hedges Balance at the End of the Previous Period ¥ 2,705 ¥ 2,406 $ 32 Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity 701 298 8 Total Changes of Items during the Period ¥ 701 ¥ 298 $8 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Balance at the End of the Current Period ¥ 3,406 ¥ 2,705 $ 40 Data/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 105 Financial Data: Consolidated Statements of Changes in Equity Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Revaluation Reserve for Land Financial Data/ Balance at the End of the Previous Period ¥ (15,532) ¥ (15,532) $ (186) Trust Holdings, Inc. Former Chuo Mitsui Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity (1,004) — (12) Total Changes of Items during the Period ¥ (1,004) ¥— $ (12) Balance at the End of the Current Period ¥ (16,537) ¥ (15,532) $ (198) Foreign Currency Translation Adjustment Balance at the End of the Previous Period ¥ (1,738) ¥ (2,045) $ (20)
Financial Data/ Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity (390) 307 (4) The Chuo Mitsui Trust and Banking Company, Limited Total Changes of Items during the Period ¥ (390) ¥ 307 $(4) Balance at the End of the Current Period ¥ (2,129) ¥ (1,738) $ (25) Minority Interests Balance at the End of the Previous Period ¥ 187,161 ¥ 187,041 $ 2,250 Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity 492 119 5 Financial Data/ Total Changes of Items during the Period ¥ 492 ¥ 119 $5 Banking Company, Limited Chuo Mitsui Asset Trust and Balance at the End of the Current Period ¥ 187,653 ¥ 187,161 $ 2,256 Total Equity Balance at the End of the Previous Period ¥ 846,556 ¥ 688,455 $ 10,181 Changes of Items during the Period Cash Dividends (19,896) (7,765) (239) Net Income 47,277 46,826 568
Trust Group Purchase of Treasury Stock (17) (18) (0)
Former Chuo Mitsui Disposal of Treasury Stock 2 4 0 Basel II Qualitative Disclosure Data/ Reversal of Revaluation Reserve for Land 1,004 — 12 Net Changes of Items Other than Shareholders’ Equity (30,796) 119,053 (370) Total Changes of Items during the Period ¥ (2,425) ¥ 158,100 $ (29) Balance at the End of the Current Period ¥ 844,130 ¥ 846,556 $ 10,151 See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements. Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
106 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Consolidated Statements of Cash Flows Group Trust Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Cash Flows from Operating Activities: Income before Income Taxes and Minority Interests ¥ 86,783 ¥ 84,798 $ 1,043 Depreciation and Amortization 12,296 11,135 147 akn opn,Limited Company, Banking Loss on Impairment of Fixed Assets 1,108 41 13 and Trust Mitsui Chuo The 2,451
Amortization of Goodwill 2,270 27 Data/ Financial Equity in Losses (Earnings) of Affiliates (553) 814 (6) Increase (Decrease) in Allowance for Loan Losses (5,720) (8,111) (68) Increase (Decrease) in Provision for Bonuses (26) 80 (0) Increase (Decrease) in Provision for Retirement Benefits 197 268 2 Increase (Decrease) in Provision for Directors’ Retirement Benefits (1,450) 73 (17) Increase (Decrease) in Provision for Contingent Losses 3,313 (206) 39 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Interest Income (160,477) (181,592) (1,929) Interest Expenses 59,694 68,901 717 Data/ Financial Losses (Gains) on Securities (29,479) (18,967) (354) Losses (Gains) on Money Held in Trust (115) (144) (1) Foreign Exchange Losses (Gains) 50,355 34,951 605 Losses (Gains) on Disposal of Tangible Fixed Assets 617 267 7 Net Decrease (Increase) in Trading Assets (13,790) 15,471 (165)
Net Increase (Decrease) in Trading Liabilities (195) (956) (2) Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Net Decrease (Increase) in Loans and Bills Discounted 77,682 (357,653) 934 rs Group Trust Net Increase (Decrease) in Deposits 531,914 (359,387) 6,397 Net Increase (Decrease) in Borrowed Money (Excluding subordinated borrowings) (538,263) (475,319) (6,473) Net Decrease (Increase) in Due from Banks (Excluding due from the bank of Japan) (12,551) (8,712) (150) Net Decrease (Increase) in Call Loans and Bills Bought 1,890 10,127 22 Net Decrease (Increase) in Receivables under Securities Borrowing Transactions (7,857) 7,291 (94) Net Increase (Decrease) in Call Money and Bills Sold 45,795 52,683 550 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Net Increase (Decrease) in Payables under Securities Lending Transactions (541,044) 447,049 (6,506) Inc. Holdings, Trust Net Decrease (Increase) in Foreign Exchange-assets (11,492) 35 (138) Net Increase (Decrease) in Foreign Exchange-liabilities (21) (20) (0) Net Increase (Decrease) in Due to Trust Accounts (193,955) 115,695 (2,332) Interest Income (Cash basis) 169,068 182,130 2,033 Interest Expenses (Cash basis) (52,624) (68,108) (632) Other Net 16,268 12,463 195 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Subtotal (510,362) (432,447) (6,137) Data/ Disclosure Quantitative II Basel Income Taxes Paid (9,045) (4,013) (108) Net Cash Provided by (Used in) Operating Activities ¥ (519,408) ¥ (436,461) $ (6,246) ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 107 Financial Data: Consolidated Statements of Cash Flows Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Cash Flows from Investing Activities: Financial Data/ Purchases of Securities ¥ (7,517,154) ¥ (6,619,136) $ (90,404) Trust Holdings, Inc. Former Chuo Mitsui Proceeds from Sales of Securities 7,828,396 6,651,069 94,147 Proceeds from Redemption of Securities 434,664 385,705 5,227 Increase in Money Held in Trust — (2,500) — Decrease in Money Held in Trust 109 2,637 1 Purchases of Tangible Fixed Assets (5,717) (3,446) (68) Proceeds from Sales of Tangible Fixed Assets 1,437 353 17
Financial Data/ Purchases of Intangible Fixed Assets (7,537) (9,302) (90) Proceeds from Sales of Intangible Fixed Assets 339 1,064 4 The Chuo Mitsui Trust and Banking Company, Limited Net Cash Provided by (Used in) Investing Activities ¥ 734,537 ¥ 406,443 $ 8,833
Cash Flows from Financing Activities: Increase in Subordinated Borrowings ¥ 5,000 ¥ 65,000 $ 60 Decrease in Subordinated Borrowings (5,000) (65,000) (60) Proceeds from Issuance of Subordinated Bonds 40,000 103,000 481 Financial Data/ Payments for Redemption of Subordinated Bonds — (37,274) — Banking Company, Limited Chuo Mitsui Asset Trust and Dividends Paid (19,896) (7,765) (239) Dividends Paid to Minority Shareholders (7,460) (7,649) (89) Purchases of Treasury Stock (17) (18) (0) Proceeds from Sales of Treasury Stock 2 4 0 Net Cash Provided by (Used in) Financing Activities ¥ 12,628 ¥ 50,296 $ 151
Trust Group Effect of Exchange Rate Changes on Cash and Cash Equivalents ¥ (388) ¥ 302 $(4)
Former Chuo Mitsui Net Increase (Decrease) in Cash and Cash Equivalents ¥ 227,369 ¥ 20,581 $ 2,734 Basel II Qualitative Disclosure Data/ Cash and Cash Equivalents at the Beginning of the Period ¥ 237,851 ¥ 217,270 $ 2,860 Cash and Cash Equivalents at the End of the Period ¥ 465,221 ¥ 237,851 $ 5,594
See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements. Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
108 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Notes to Consolidated Financial Statements Group Trust Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
1. Basis of Presentation for the convenience of readers outside Japan and have Data/ Financial been made at the rate of ¥83.15 to U.S.$1, the approxi- The accompanying consolidated financial statements mate rate of exchange as of March 31, 2011. Such transla- (banking account) have been prepared from the accounts tions should not be construed as representations that the maintained by Sumitomo Mitsui Trust Holdings, Inc. (for- Japanese yen amounts could be converted into U.S. dol- mer Chuo Mitsui Trust Holdings, Inc. “CMTH”) and its lars at that or any other rate. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The consolidated subsidiaries (together, the “CMTH Group”) Amounts less than one million Japanese yen and one iaca Data/ Financial in accordance with accounting principles generally accept- million U.S. dollars have been truncated, except for per ed in Japan “Japanese GAAP,” and certain accounting share information. As a result, the total may not be equal and disclosure rules under Financial Instruments and to the total of individual amounts. Exchange Act of Japan and the Banking Law of Japan, which are different in certain respects as to application 2. Summary of Significant Accounting Policies hoMtu se rs and Trust Asset Mitsui Chuo and disclosure requirements of International Financial Limited Company, Banking
Reporting Standards. 1. Scope of Consolidation Data/ Financial Under Japanese GAAP, a consolidated statement of The consolidated financial statements include the income and comprehensive income is required from the accounts of CMTH and its significant subsidiaries. The fiscal year ended March 31, 2011 and has been presented number of consolidated subsidiaries as of March 31, 2011 herein. Accordingly, accumulated other comprehensive and 2010 was 25. Major consolidated subsidiaries are The
income is presented in the consolidated balance sheet Chuo Mitsui Trust and Banking Company, Limited Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former and the consolidated statement of changes in equity. “CMTB,” Chuo Mitsui Asset Trust and Banking Company, rs Group Trust Information with respect to other comprehensive income Limited “CMAB,” Chuo Mitsui Asset Management for the year ended March 31, 2010 is disclosed in Note 30. Company, Limited “CMAM” and Chuo Mitsui Capital In addition, “income before minority interests” is dis- Company Limited “CMC.” closed in the consolidated statement of income from the Under the control or influence concept, those compa- fiscal year ended March 31, 2011. nies in which the parent company, directly or indirectly, is ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former In preparing these consolidated financial statements, able to exercise control over operations are fully consoli- Inc. Holdings, Trust certain reclassifications and rearrangements have been dated, and those companies over which CMTH Group has made to CMTH’s consolidated financial statements issued the ability to exercise significant influence are accounted domestically in order to present them in a form that is for by the equity method, unless in either case the compa- more familiar to readers outside Japan. In addition, certain nies are immaterial. reclassifications and rearrangements have been made in The number of affiliates accounted for by the equity akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The the consolidated financial statements for the fiscal years method was three in 2011 and four in 2010. Japan Trustee Data/ Disclosure Quantitative II Basel ended March 31, 2010 to conform to classifications and Information Systems, Ltd. was excluded from the affiliates presentations used in the consolidated financial statement accounted for by the equity method due to merger with for the fiscal year ended March 31, 2011. Japan Trustee Service Bank, Ltd. in 2011. Investments in The consolidated financial statements are stated in unconsolidated subsidiaries are stated at cost. If the equity Japanese yen, the currency of the country in which CMTH method of accounting had been applied to the investments
is incorporated and operates. The translations of Japanese in these subsidiaries, the effect on the accompanying con- Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking yen amounts into U.S. dollar amounts are included solely solidated financial statements would not be material.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 109 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Any differences between the cost of an acquired sub- 3. Cash and Cash Equivalents sidiary or associated company and the fair value of its net Cash equivalents are short-term investments that are assets at the date of the acquisition are amortized over a readily convertible into cash and that are exposed to period within 20 years, or charged to expense as incurred insignificant risk of changes in value. Cash equivalents Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui if such differences are considered to be immaterial. include amounts due from the Bank of Japan. All significant intercompany transactions, balances and unrealized profits have been eliminated in consolidation. 4. Mark-to-Market Accounting for Trading Purpose Transactions 2. Business Combination Transactions for trading purposes (that is, transactions On December 26, 2008, the Accounting Standards which seek to capture gains arising from short-term
Financial Data/ Board of Japan (the “ASBJ”) issued a revised accounting changes in interest rates, currency exchange rates or mar- The Chuo Mitsui Trust and
Banking Company, Limited standard for business combinations, ASBJ Statement ket prices of securities and other market-related indices or No.21, “Accounting Standard for Business Combinations.” from gaps among markets) are included in trading assets Major accounting changed under the revised accounting and trading liabilities on a trade date basis. Trading securi- standard are as follows; ties and monetary claims bought for trading purposes (1) The current accounting standard for business combina- recorded in these accounts are stated at market value and tions allows companies to apply the pooling of interests trading-related financial derivatives are at the amounts Financial Data/ method of accounting when certain specific criteria are that would be settled if they were terminated at the end of Banking Company, Limited Chuo Mitsui Asset Trust and met such that the business combination is essentially the fiscal year. regarded as a uniting-of-interests. The revised standard Unrealized gains and losses on trading transactions are requires accounting for such business combinations by the recognized in the consolidated statements of income. purchase method and the pooling of interests method of accounting is no longer allowed. 5. Translation of Foreign Currency Accounts Trust Group (2) The current accounting standard requires that research The consolidated trust bank subsidiaries maintain their Former Chuo Mitsui Basel II Qualitative Disclosure Data/ and development costs be charged to expense as accounting records in Japanese yen. Assets and liabilities incurred. Under the revised standard, in-process research denominated in foreign currencies are translated into and development (IPR&D) acquired in a business combi- Japanese yen using the exchange rate prevailing at each nation is capitalized as an intangible asset. balance sheet date. (3) The current accounting standard requires that a bargain The balance sheet accounts of the consolidated foreign purchase gain (negative goodwill ) be systematically amor- subsidiaries are translated into Japanese yen at the cur- Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ tized within 20 years. Under the revised standard, the rent exchange rate as of each balance sheet date except acquirer recognized a bargain purchase gain in profit or for equity, which is translated at the historical rate. loss on the acquisition date after reassessing whether it has Differences arising from such translation are shown as correctly identified all of the assets acquired and all of the “Foreign currency translation adjustment” under accumu- liabilities assumed with a review of such procedures used. lated other comprehensive income in a separate compo- This standard is applicable to business combinations nent of equity. undertaken on or after April 1, 2010, with early adoption Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited permitted for fiscal years beginning on or after April 1, 2009. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
110 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
6. Securities The interest rate swaps which qualify for hedge Data/ Financial Securities other than investments in unconsolidated accounting and meet specific matching criteria are not subsidiaries and associated companies are classified remeasured at market value but the differential paid or and accounted for, depending on management’s intent, received under the swap agreements is recognized and as follows: included in interest expenses or income. (1) Trading securities, which are held for the purpose of akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The earning capital gains in the near term, are reported at fair 8. Tangible Fixed Assets iaca Data/ Financial value and the related unrealized gains and losses are Tangible fixed assets are carried at cost less accumulat- included in earnings. ed depreciation. Depreciation of tangible fixed assets (2) Held-to-maturity debt securities, which are expected to owned by the consolidated trust bank subsidiaries is com- be held to maturity with the positive intent and ability to puted by the declining-balance method, while the hold to maturity, are reported at amortized cost; and straight-line method is applied to buildings acquired after hoMtu se rs and Trust Asset Mitsui Chuo (3) Available-for-sale securities, which are not classified as April 1, 1998. The range of useful lives is from 10 to 50 Limited Company, Banking either of the aforementioned securities are reported at fair years for buildings, and from three to eight years for Data/ Financial value, with unrealized gains and losses, net of applicable equipment. Depreciation of tangible fixed assets owned taxes, reported in a separate component of equity. by other consolidated subsidiaries is mainly computed by Japanese stocks and stock-investment trust classified as the straight-line method over the estimated useful lives of available-for-sale securities are revalued at the average the respective assets.
market price of the final month in the fiscal year. Available- Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former for-sale securities with fair value other than Japanese 9. Software rs Group Trust stocks and stock-investment trust are revalued at the bal- Capitalized software for internal use is amortized by the ance sheet date. straight-line method over the estimated useful lives of the Non-marketable available-for-sale securities are stated software (principally five years). at cost determined by the moving-average cost method. For other than temporary declines in fair value, securities 10. Impairment of Fixed Assets ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former are reduced to net realizable value by a charge to expense. CMTH Group reviews its long-lived assets for impair- Inc. Holdings, Trust Securities in money held in trust are classified and account- ment whenever events or changes in circumstance indi- ed for in the same manner as securities described above. cate the carrying amount of an asset or asset group may not be recoverable. An impairment loss would be recog- 7. Derivatives and Hedging Activities nized if the carrying amount of an asset or asset group Financial derivatives are classified and accounted for exceeds the sum of the undiscounted future cash flows akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The as follows: expected to result from the continued use and eventual Data/ Disclosure Quantitative II Basel (1) except as discussed below, all derivatives are recognized disposition of the asset or asset group. The impairment as either assets or liabilities and measured at fair value, and loss would be measured as the amount by which the carry- gains or losses on derivative transactions are recognized in ing amount of the asset exceeds its recoverable amount, the consolidated statements of operations; and which is the higher of the discounted cash flows from the (2) for derivatives used for hedging purposes, if derivatives continued use and eventual disposition of the asset or the
qualify for hedge accounting because of the high correla- net selling price at disposition. Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking tion and effectiveness between the hedging instruments and the hedged items, certain domestic consolidated sub- sidiaries use the deferral hedge method or the fair value hedge method.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 111 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
11. Allowance for Loan Losses able amount is estimated by deducting from the amount of Allowance for loan losses of major consolidated sub- claims the realizable value of collateral or the amount likely sidiaries is maintained in accordance with internally estab- to be recovered based on guarantees. lished standards for write-offs and allowance for loan losses. In addition, allowance for loan losses caused by the Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui (1) For claims against borrowers that are legally bankrupt, Great East Japan Earthquake was reasonably estimated such as borrowers in bankruptcy and under special liquida- and posted in the fiscal year ended March 31, 2011. tion proceedings (“legal bankruptcy”), and against bor- The outstanding amount thus determined is then directly rowers that are in substantially similar adverse condition written off from the amount of claims as the unrecoverable (“virtual bankruptcy”), allowances are maintained at 100% amount, which totaled ¥22,345 million ($268 million) and of the amount of claims net of expected amounts recover- ¥33,562 million as of March 31, 2011 and 2010, respectively.
Financial Data/ able from the disposal of collateral and/or the amounts Other consolidated subsidiaries provide for “allowance The Chuo Mitsui Trust and
Banking Company, Limited recoverable under guarantees. for loan losses” based on the past experience and man- (2) For claims against borrowers that have not yet become agement’s assessment of the loan portfolio. legally or virtually bankrupt but that are very likely to become bankrupt (“possible bankruptcy”), allowances are 12. Provision for Bonuses maintained at amounts deemed necessary to absorb loss- Provision for bonuses is provided for the payment of es on the amount of claims less expected amounts recov- employees’ bonuses based on estimates of the future pay- Financial Data/ erable from the disposal of collateral and/or the amounts ments attributed to the current fiscal year. Banking Company, Limited Chuo Mitsui Asset Trust and recoverable under guarantees, based on the overall assessment of the borrowers’ repayment ability. 13. Provision for Directors’ Retirement Benefits For claims against large borrowers that are classified as Provision for directors’ retirement Benefits is provided possible bankruptcy and close observation borrowers for at the amount which would be required if all directors, which future cash flows could be reasonably estimated, corporate auditors and executive officers retired at the Trust Group allowances are provided for the difference between the pres- balance sheet date. The retirement benefits for directors Former Chuo Mitsui Basel II Qualitative Disclosure Data/ ent value of expected future cash flows discounted at the and corporate auditors are paid subject to the approval contracted interest rate and the carrying value of the claims. of the shareholders. (3) For claims against other borrowers judged to be in CMTH and certain domestic consolidated subsidiaries legal bankruptcy, virtual bankruptcy and possible bank- decided to terminate unfunded retirement benefit plan for ruptcy, as mentioned above, allowances are maintained at directors. The unpaid balance determined in connection rates derived from historical loan loss experiences, etc. with this termination, which totaled ¥1,059 million ($12 mil- Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ (4) Allowance for losses on loans to restructuring countries lion) as of March 31, 2011 was reclassified to other liabilities. is maintained in order to cover possible losses based on the political and economic climates of those countries. 14. Provision for Retirement Benefits and Pension Plans All claims are assessed by the operating sections and CMTH and its principal domestic subsidiaries have each Credit Supervision Department based on the internal defined benefit plans (employee pension fund plans and guidelines for self-assessment on asset quality. tax qualified pension plans) and lump-sum severance Subsequently, the Internal Audit Department, which is inde- indemnity plans. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited pendent from the operating sections, reviews these self- CMTH and its principal domestic subsidiaries account assessments, and the allowances are provided based on the for the liability for retirement benefits based on the pro- results of the self assessments. With respect to claims with jected benefit obligations and plan assets at the balance collateral and/or guarantees extended to borrowers who sheet date. are in legal bankruptcy or virtual bankruptcy, the unrecover- Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
112 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
15. Provision for Contingent Losses In addition, the revised accounting standard permits leas- Data/ Financial Provision for contingent losses, which is provided for es which existed at the transition date and do not transfer possible losses from contingent events related to off-bal- ownership of the leased property to the lessee to continue ance sheet and other transactions, is calculated by estima- to be accounted for as operating lease transactions. tion of the impact of these contingent events. CMTH Group continues to account for leases which exist- (1) Provision for Reimbursement of Deposits ed at the transition date and do not transfer ownership of the akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Provision for reimbursement of deposits which were leased property to the lessee as lease transactions operating. iaca Data/ Financial derecognized as liabilities under certain conditions is pro- vided for the possible losses on the future claims of with- 18. Per Share Information drawal based on the historical reimbursement experience. Basic net income per share is computed by dividing net (2) Provision for Possible Losses Related to Land Trust income available to common shareholders by the weighted- Provision for possible losses related to land trust is pro- average number of common shares outstanding for the period. hoMtu se rs and Trust Asset Mitsui Chuo vided for estimated losses deemed necessary for potential Cash dividends per share presented in the accompany- Limited Company, Banking damages to the compensation rights being acquired, ing consolidated statements of operations are dividends Data/ Financial when a liability for reimbursement, as a trustee of a land applicable to the respective years, including dividends to trust, is incurred due to the future business circumstances be paid after the end of the year. of the land trust. 19. New Accounting Pronouncements
16. Income Taxes (1) Accounting Changes and Error Correction Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former The provision for income taxes is computed based on In December 2009, ASBJ issued ASBJ Statement No.24 rs Group Trust the pretax income included in the consolidated state- “Accounting Standard for Accounting Changes and Error ments of operations. The asset and liability approach is Corrections” and ASBJ Guidance No.24 “Guidance on used to recognize deferred tax assets and liabilities for the Accounting Standard for Accounting Changes and Error expected future tax consequences of temporary differ- Corrections.” Accounting treatments under this standard ences between the carrying amounts and the tax bases of and guidance are as follows; ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former assets and liabilities. 1) Changes in Accounting Policies: Inc. Holdings, Trust Deferred taxes are measured by applying currently When a new accounting policy is applied with revision enacted tax laws to the temporary differences. of accounting standards, a new policy is applied retro- spectively unless the revised accounting standards include 17. Leases specific transitional provisions. When the revised account- In March 2007, the ASBJ issued ASBJ Statement No.13, ing standards include specific transitional provisions, an akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The “Accounting Standard for Lease Transactions,” which entity shall comply with the specific transitional provisions. Data/ Disclosure Quantitative II Basel revised the previous accounting standard for lease transac- 2) Changes in Presentations tions issued in June 1993. The revised accounting standard When the presentation of financial statements is for lease transactions is effective for fiscal years beginning changed, prior period financial statements are reclassified on or after April 1, 2008 with early adoption permitted for in accordance with the new presentation. fiscal years beginning on or after April 1, 2007. 3) Changes in Accounting Estimates
The revised accounting standard requires that all A change in an accounting estimate is accounted for in Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking finance lease transactions be capitalized to recognize the period of the change if the change affects that period lease assets and lease obligations in the balance sheet. only, and is accounted for prospectively if the change affects both the period of the change and future periods.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 113 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
4) Corrections of Prior Period Errors 2. Accounting Standard for Equity Method When an error in prior period financial statements is dis- CMTH Group has started to adopt ASBJ Statement covered, those statements are restated. No.16 “Accounting Standard for Equity Method of This accounting standard and the guidance are applica- Accounting for Investments” (issued by ASBJ on March 10, Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui ble to accounting changes and corrections of prior period 2008) and Practical Issue Task Force No.24 “Practical errors which are made from the beginning of the fiscal Solution on Unification of Accounting Policies Applied to year that begins on or after April 1, 2011. Associates Accounted for Using the Equity Method” (issued by ASBJ on March 10, 2008) from the current fiscal year. 3. Changes in Significant Accounting Policies There was no effect on statements of income with regard to this adoption.
Financial Data/ 1. Financial Instruments The Chuo Mitsui Trust and
Banking Company, Limited CMTH Group applied revised ASBJ Statement No.10 3. Asset Retirement Obligations “Accounting Standard for Financial Instruments” and CMTH Group applied ASBJ Statement No.18 issued ASBJ Guidance No.19 “Guidance on Accounting “Accounting Standard for Asset Retirement Obligations” Standard for Financial Instruments and Related and ASBJ Guidance No.21 “The Guidance on Accounting Disclosures” at the prior fiscal year end. Standard for Asset Retirement Obligations” from the As a result, compared with the previous treatments, beginning of FY 2010. Financial Data/ “Securities” decreased by ¥419 million, “Deferred tax As a result, compared with the previous treatments, Banking Company, Limited Chuo Mitsui Asset Trust and assets” decreased by ¥235 million, “Valuation difference “Income before income taxes and minority interests” on available-for-sale securities” increased by ¥344 million, decreased by ¥260 million ($3 million). “Income before income taxes and minority interests” increased by ¥1,534 million, in 2010. Trust Group 4. Securities Former Chuo Mitsui Basel II Qualitative Disclosure Data/
Securities as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Japanese Government Bonds ¥ 1,358,354 ¥ 2,031,802 $ 16,336 Japanese Municipal Bonds 154 644 1 Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Japanese Corporate Bonds 294,437 296,390 3,541 Japanese Stocks 595,453 657,373 7,161 Other Securities 1,462,113 1,539,472 17,584 Total ¥ 3,710,513 ¥ 4,525,683 $ 44,624
Securities in unconsolidated subsidiaries and associated companies totaled ¥133,113 million ($1,600 million) and ¥130,700 million as of March 31, 2011 and 2010, respectively. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited The related information for 2011 and 2010 is disclosed in Note 27. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
114 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
5. Loans and Bills Discounted Data/ Financial
Loans and bills discounted as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Bills Discounted ¥ 3,035 ¥ 4,325 $ 36 and Trust Mitsui Chuo The Loans on Notes 1,280,104 1,298,472 15,395 iaca Data/ Financial Loans on Deeds 6,832,558 6,928,690 82,171 Overdrafts 748,567 710,459 9,002 Total ¥ 8,864,266 ¥ 8,941,948 $ 106,605
1. Loans to Borrowers in Bankruptcy and Non-Accrual Loans 3. Restructured Loans hoMtu se rs and Trust Asset Mitsui Chuo Loans are generally placed on non-accrual status when Restructured loans are loans on which major consolidat- Limited Company, Banking substantial doubt is judged to exist as to the ultimate col- ed subsidiaries have granted concessions (for example, Data/ Financial lectibility of either principal or interest. reduction of the face amount or maturity amount of the Loans to borrowers in bankruptcy represent non-accru- debt or accrued interest) to debtors in financial difficulties ing loans, after the partial write-off of claims deemed to assist them in their financial recovery and eventually uncollectible, to debtors who are legally bankrupt as enable them to pay their creditors. Loans classified as
defined in Article 96, Paragraph 1, Subparagraphs 3 and 4 loans to borrowers in bankruptcy or non-accrual loans or Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former of Enforcement Ordinance for the Corporation Tax Law. loans past due three months or more are excluded. rs Group Trust Non-accrual loans are non-accruing loans other than loans to borrowers in bankruptcy and loans for which inter- Bills discounted are accounted for as secured lending est payment is deferred in order to assist the debtor’s transactions in conformity with the Industry Audit recovery from financial difficulties. Committee Report No.24, “Treatment of Accounting and Auditing Concerning Accounting for Financial Products in ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former 2. Loans Past Due Three Months or More the Banking Industry” issued by the JICPA on February 13, Inc. Holdings, Trust Loans classified as loans to borrowers in bankruptcy or 2002. Bills discounted by CMTB are permitted to be sold non-accrual loans are excluded. or pledged.
Loans and bills discounted as of March 31, 2011 and 2010 included the followings.
Millions of Yen Millions of akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The
U.S. Dollars Data/ Disclosure Quantitative II Basel 2011 2010 2011 Loans to Borrowers in Bankruptcy ¥ 11,195 ¥ 14,278 $ 134 Non-accrual Loans 52,814 79,645 635 Loans Past Due Three Months or More 43 58 0 Restructured Loans 33,487 16,904 402 Total ¥ 97,541 ¥ 110,885 $ 1,173
These claims are before deduction of the allowance for loan losses. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 115 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
6. Foreign Exchanges
Foreign exchanges as of March 31, 2011 and 2010, consisted of the following:
Millions of
Financial Data/ Millions of Yen U.S. Dollars Trust Holdings, Inc. Former Chuo Mitsui 2011 2010 2011 Assets: Due from Foreign Banks ¥ 12,259 ¥ 767 $ 147 Total ¥ 12,259 ¥ 767 $ 147 Liabilities: Due to Foreign Banks ¥— ¥— $—
Financial Data/ Other — 21 — Total ¥— ¥ 21 $— The Chuo Mitsui Trust and Banking Company, Limited
7. Other Assets
Other assets as of March 31, 2011 and 2010, consisted of the following:
Millions of Financial Data/ Millions of Yen U.S. Dollars Banking Company, Limited Chuo Mitsui Asset Trust and 2011 2010 2011 Prepaid Expenses ¥ 861 ¥ 884 $ 10 Accrued Income 36,556 37,838 439 Prepaid Pension Expenses 95,318 100,379 1,146 Receivables for Securities Transactions 74,411 108,253 894 Financial Derivatives 41,004 45,053 493
Trust Group Financial Stabilization Fund Contribution 82,061 82,061 986
Former Chuo Mitsui Other 63,742 71,674 766 Basel II Qualitative Disclosure Data/ Total ¥ 393,956 ¥ 446,145 $ 4,737 Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
116 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
8. Tangible Fixed Assets Data/ Financial
Tangible fixed assets as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Land ¥ 80,955 ¥ 81,958 $ 973 and Trust Mitsui Chuo The Buildings 34,835 37,384 418 iaca Data/ Financial Equipment 7,502 6,456 90 Other 291 200 3 Total ¥ 123,584 ¥ 126,000 $ 1,486
Accumulated depreciation amounted to ¥90,225 million nent of equity. Continuous readjustment is not permitted hoMtu se rs and Trust Asset Mitsui Chuo ($1,085 million) and ¥91,612 million as of March 31, 2011 unless the land value subsequently declines significantly Limited Company, Banking and 2010, respectively. such that the amount of the decline in value should be Data/ Financial Under the Law of Land Revaluation, The Mitsui Trust removed from the land revaluation difference account and and Banking Company, Limited, the forerunner of CMTB, related deferred tax liabilities. elected a one-time revaluation for its own-use land to a As of March 31, 2011 and 2010, the carrying amount of value based on real estate appraisal information as of the land after the above one-time revaluation exceeded
March 31, 1998. the market value by ¥4,625 million ($55 million), and ¥4,416 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former The resulting land revaluation difference represents million, respectively. rs Group Trust unrealized appreciation of land and is stated as a compo-
9. Intangible Fixed Assets
Intangible fixed assets as of March 31, 2011 and 2010, consisted of the following: ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Millions of Inc. Holdings, Trust Millions of Yen U.S. Dollars 2011 2010 2011 Software ¥ 18,886 ¥ 16,221 $ 227 Goodwill 33,034 35,304 397 Other 5,074 7,414 61 Total ¥ 56,994 ¥ 58,940 $ 685 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 117 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
10. Collateral
The carrying amounts of assets pledged as collateral and the related collateralized debt as of March 31, 2011 and 2010, were as follows: Financial Data/ Trust Holdings, Inc. Former Chuo Mitsui Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Securities ¥ 1,765,965 ¥ 2,529,071 $ 21,238 Loans and Bills Discounted 527,615 765,768 6,345 Other Assets 69 70 0 Total ¥ 2,293,650 ¥ 3,294,909 $ 27,584 Financial Data/ Deposits ¥ 6,475 ¥ 3,959 $ 77 The Chuo Mitsui Trust and Banking Company, Limited Payables under Securities Lending Transactions 1,161,653 1,702,697 13,970 Borrowed Money 585,330 1,123,400 7,039 Total ¥ 1,753,459 ¥ 2,830,057 $ 21,087
In addition, securities pledged as collateral for exchange Also, securities deposits (included in other assets) as of
Financial Data/ settlements, for derivative transactions and for certain other March 31, 2011 and 2010 were ¥8,794 million ($105 million) Banking Company, Limited Chuo Mitsui Asset Trust and purposes as of March 31, 2011 and 2010 were ¥691,706 mil- and ¥8,860 million, respectively. lion ($8,318 million) and ¥655,266 million, respectively.
11. Customers’ Liabilities for Acceptances and Guarantees
All contingent liabilities arising from acceptances and Guarantee obligations for privately offered bonds (pro- Trust Group guarantees are reflected in acceptances and guarantees. vided in accordance with Article 2, Paragraph 3 of the Former Chuo Mitsui Basel II Qualitative Disclosure Data/ As a contra account, customers’ liabilities for acceptances “Financial Instruments and Exchange Law”) in “Securities” and guarantees are shown as assets in the consolidated were ¥138,578 million ($1,666 million) and ¥124,395 million balance sheets representing CMTH right of indemnity as of March 31, 2011 and 2010. from the applicant.
12. Deposits Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Deposits as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Current Deposits ¥ 114,642 ¥ 113,513 $ 1,378 Ordinary Deposits 1,368,505 1,153,395 16,458 Deposits at Notice 18,618 21,514 223 Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Time Deposits 7,684,782 7,421,637 92,420 Negotiable Certificates of Deposit 327,020 327,190 3,932 Other 105,454 49,856 1,268 Total ¥ 9,619,022 ¥ 9,087,107 $ 115,682 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
118 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
13. Borrowed Money Data/ Financial
Borrowed money as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Borrowed Money ¥ 586,483 ¥ 1,124,746 $ 7,053 and Trust Mitsui Chuo The Subordinated Borrowings 77,500 77,500 932 iaca Data/ Financial Perpetual Subordinated Borrowings 15,000 15,000 180 Total ¥ 678,983 ¥ 1,217,246 $ 8,165
The weighted-average rates calculated from the interest rates and the balances as of March 31, 2011 and 2010, were 0.40% and 0.27%, respectively. hoMtu se rs and Trust Asset Mitsui Chuo Annual maturities of borrowed money as of March 31, 2011, for the next five years are as follows: Limited Company, Banking iaca Data/ Financial Millions of Yen Millions of Fiscal year ending March 31 U.S. Dollars 2012 ¥ 588,328 $ 7,075 2013 15,268 183 2014 5,220 62 2015 60,126 723 2016 5,038 60 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Total ¥ 673,983 $ 8,105 Mitsui Chuo Former rs Group Trust
14. Bonds Payable
Bonds payable as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust 2011 2010 2011 Issuer: CMTB, 2.08% Unsecured Perpetual Subordinated Bonds ¥ 16,100 ¥ 16,100 $ 193 2.03% Unsecured Subordinated Bonds Due 2015 40,000 40,000 481 5.50% USD Unsecured Perpetual Subordinated Notes 63,147 70,650 759 2.06% Unsecured Perpetual Subordinated Bonds 5,000 5,000 60 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The 4.46% Unsecured Perpetual Subordinated Bonds 10,000 10,000 120 Data/ Disclosure Quantitative II Basel 2.95% Unsecured Subordinated Callable Bonds Due 2017 50,000 50,000 601 1.51% Unsecured Subordinated Callable Bonds Due 2020 25,000 25,000 300 1.07% Unsecured Subordinated Callable Bonds Due 2020 18,000 18,000 216 1.17% Unsecured Subordinated Callable Bonds Due 2021 10,000 — 120 1.64% Unsecured Subordinated Bonds Due 2021 30,000 — 360 Total ¥ 267,247 ¥ 234,750 $ 3,214 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 119 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Annual maturities of bonds as of March 31, 2011 for the next five years were as follows:
Millions of Yen Millions of Fiscal year ending March 31 U.S. Dollars 2012 ¥— $—
Financial Data/ 2013 55,000 661 Trust Holdings, Inc. Former Chuo Mitsui 2014 — — 2015 83,000 998 2016 73,147 879 Total ¥ 211,147 $ 2,539
15. Other Liabilities Financial Data/ The Chuo Mitsui Trust and
Banking Company, Limited Other liabilities as of March 31, 2011 and 2010, consisted of the following: Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Accrued Expenses ¥ 67,572 ¥ 59,009 $ 812 Unearned Income 31,800 33,955 382
Financial Data/ Financial Derivatives 33,629 45,420 404 Income Taxes Payable 3,166 5,464 38 Banking Company, Limited Chuo Mitsui Asset Trust and Payable for Securities Transaction 41 10,115 0 Other 19,843 16,922 238 Total ¥ 156,055 ¥ 170,887 $ 1,876
16. Retirement and Pension Plans Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Employees who terminate their services with CMTH or defined benefit plans (employee pension fund plans and certain domestic consolidated subsidiaries are, under tax qualified pension plans) and lump-sum severance most circumstances, entitled to retirement and pension indemnity plans. Certain domestic consolidated sub- benefits determined by reference to basic rates of pay at sidiaries have lump-sum severance indemnity plans and the time of termination, length of service and conditions integrated contributory pension plans. under which the termination occurs. If the termination is The consolidated trust bank subsidiaries contributed Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ involuntary, caused by retirement at the mandatory retire- certain available-for-sale securities with a fair value to the ment age or caused by death, the employee is entitled to employee retirement benefit trust for their pension plans. greater payment than in the case of voluntary termination. The securities held in this trust are qualified as plan assets. CMTH and its principal domestic subsidiaries have Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
120 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(1) The funded status for employees’ retirement benefits as of March 31, 2011 and 2010, consisted of the following: Data/ Financial
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Projected Benefit Obligation ¥ (185,335) ¥ (182,101) $ (2,228) Fair Value of Plan Assets 193,333 209,054 2,325
7,998 26,953 96 Limited Company, Banking
Unfunded Projected Benefit Obligation and Trust Mitsui Chuo The Unrecognized Actuarial Loss 84,461 70,763 1,015 Net Amount Accrued on the Consolidated Balance Sheets 92,459 97,717 1,111 Data/ Financial Prepaid Pension Expenses (Included in other assets) 95,318 100,379 1,146 Provision for Retirement Benefits ¥ (2,859) ¥ (2,662) $ (34)
(2) The components of net periodic benefit costs for the fiscal years ended March 31, 2011 and 2010, were as follows: hoMtu se rs and Trust Asset Mitsui Chuo Millions of Limited Company, Banking Millions of Yen U.S. Dollars iaca Data/ Financial 2011 2010 2011 Service Cost ¥ 4,076 ¥ 4,012 $ 49 Interest Cost 3,435 3,433 41 Expected Return on Plan Assets (9,568) (2,626) (115) Recognized Actuarial Loss 13,842 18,079 166 Other 474 392 5 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
Net Periodic Benefit Costs ¥ 12,261 ¥ 23,290 $ 147 Mitsui Chuo Former rs Group Trust
(3) Assumptions used for the fiscal years ended March 31, 2011 and 2010, were as follows:
2011 2010 Discount Rate 1.9% 1.9% Expected Rate of Return on Plan Assets 4.5% 1.4%
Method of Attributing the Projected Benefits to Periods of Services Mainly point basis Mainly point basis Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Recognition Period of Actuarial Loss 8 to 9 years 8 to 9 years Inc. Holdings, Trust
17. Provision for Contingent Losses
Provision for contingent losses as of March 31, 2011 and 2010, consisted of the following:
Millions of Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Millions of Yen U.S. Dollars Data/ Disclosure Quantitative II Basel 2011 2010 2011 Provision for Reimbursement of Deposits ¥ 5,255 ¥ 5,105 $ 63 Provision for Possible Losses Related to Land Trust 9,612 6,462 115 Other 468 454 5 Total ¥ 15,335 ¥ 12,022 $ 184 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 121 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
18. Commitments and Contingent Liabilities 19. Equity
(1) Certain consolidated subsidiaries issue commitments to Japanese companies are subject to the Companies Act extend credit and establish credit lines for overdrafts by of Japan (the “Companies Act”). The significant provisions Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui making agreements to meet the financing needs of their in the Companies Act that affect financial and accounting customers. The total balance of unused commitment lines matters are summarized below: as of March 31, 2011 and 2010, was ¥2,659,342 million (1) Dividends ($31,982 million) and ¥2,370,526 million, respectively, of Under the Companies Act, companies can pay dividends which commitment lines whose maturities are less than at any time during the fiscal year in addition to the year-end one year were ¥2,507,273 million ($30,153 million) and dividend upon resolution at the shareholders’ meeting. For
Financial Data/ ¥2,220,327 million, respectively. companies that meet certain criteria such as: 1) having a The Chuo Mitsui Trust and
Banking Company, Limited Many of these commitment lines expire without being Board of Directors, 2) having independent auditors, 3) hav- drawn. As such, the total balance of unused commitment ing a Board of Corporate Auditors, and 4) where the term of lines does not necessarily impact future cash flows of the service of the directors under the company’s article of incor- subsidiaries. Furthermore, many commitment lines contain poration is prescribed as one year rather than two years for provisions that allow the subsidiaries to refuse to advance a normal term, the Board of Directors may declare divi- funds to the customers or reduce the contract amount of dends (except for dividends in kind) at any time during fiscal Financial Data/ the commitment lines under certain conditions. year if the company has so prescribed in its articles of incor- Banking Company, Limited Chuo Mitsui Asset Trust and The subsidiaries may also request customers to provide poration. However, CMTH cannot do so because it does collateral, if necessary, such as real estate or securities on not meet all the above criteria. the execution date of the contract. After the execution The Companies Act permits companies to distribute div- date, the subsidiaries periodically monitor the customers’ idends- in-kind (non-cash assets) to shareholders subject to creditworthiness over the term of the contracts in accor- certain limitation and additional requirements. Semiannual Trust Group dance with internal policies, and take measures to manage interim dividends may also be paid once a year upon reso- Former Chuo Mitsui Basel II Qualitative Disclosure Data/ the credit exposures such as revising the terms of the con- lution by the Board of Directors if the articles of incorpora- tracts, if necessary. tion of the company so stipulate. The Companies Act provides certain limitations on the amounts available for (2) Under certain trust agreements, repayments of the dividends or the purchase of treasury stock. The limitation principal of the customers’ trust assets are guaranteed by is defined as the amount available for distribution to the CMTB. Regarding guaranteed trusts, CMTB guaranteed shareholders, but the amount of net assets after dividends Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ the principal amount of ¥883,457 million ($10,624 million) must be maintained at no less than ¥3 million. and ¥1,024,773 million for certain money trusts as of March (2) Increases/decreases and transfer of capital stock, 31, 2011 and 2010, respectively, and ¥226,456 million reserve and surplus ($2,723 million) and ¥357,078 million for loan trusts as of The Companies Act requires that an amount equal to March 31, 2011 and 2010, respectively. 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid- in capital (a component of capital surplus) depending on Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited the equity account charged upon the payment of such div- idends until the total of aggregate amount of legal reserve and additional paid-in capital equals 25% of the capital stock. Under the Companies Act, the total amount of addi- tional paid-in capital and legal reserve may be reversed without limitation. The Companies Act also provides that Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/ capital stock, legal reserve, additional paid-in capital,
122 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
other capital surplus and retained earnings can be trans- The Companies Act also provides that companies can Data/ Financial ferred among the accounts under certain conditions upon purchase both treasury stock acquisition rights and treas- resolution of the shareholders. ury stock. Such treasury stock acquisition rights are pre- (3) Treasury stock and treasury stock acquisition rights sented as a separate component of equity or deducted The Companies Act also provides for companies to pur- directly from stock acquisition rights. chase treasury stock and dispose of such treasury stock by Under the Banking Law of Japan, the consolidated trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The resolution of the Board of Directors. The amount of treas- bank subsidiaries are required to appropriate an amount iaca Data/ Financial ury stock purchased cannot exceed the amount available equal to 20% of dividends as a legal reserve or as addi- for distribution to the shareholders which is determined by tional paid-in capital depending on the equity account a specific formula. charged upon the payment of such dividends until the Under the Companies Act, stock acquisition rights are total of aggregate amount of legal reserve and additional presented as a separate component of equity. paid-in capital equals 100% of the capital stock. hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
20. Issued Shares and Treasury Stock Data/ Financial
Issued shares and Treasury stock as of March 31, 2011, consisted of the following:
Number of Shares (Thousands) Per Share Outstanding Outstanding Fiscal Year- Authorized at the End of Increase Decrease at the End of end Cash
Class of stock Previous Period Current Period Dividend Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Issued Shares Common Stock 4,068,332 1,658,426 — — 1,658,426 ¥4.00 ($0.04) Group Trust Class V Convertible Preferred Stock 62,500 — — — — — Class VI Convertible Preferred Stock 62,500 — — — — — Treasury Stock Common Stock (*1) 366 53 7 411 —
(*1) The increase in the number of the treasury stock of common stock includes the shares acquired within the preapproved limit on treasury stock acquisition of odd-lot shares. ae IQatttv icoueData/ Disclosure Quantitative II Basel
The decrease includes the disposal of odd-lot shares. Mitsui Chuo Former rs odns Inc. Holdings, Trust
Issued shares and Treasury stock as of March 31, 2010, consisted of the following:
Number of Shares (Thousands) Per Share Outstanding Outstanding Fiscal Year- Authorized at the End of Increase Decrease at the End of end Cash Class of stock Previous Period Current Period Dividend akn opn,Limited Company, Banking
Issued Shares and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Common Stock (*1) 4,068,332 1,157,551 500,875 — 1,658,426 ¥8.00 Class II Convertible Preferred Stock (*1) 93,750 93,750 — 93,750 — — Class III Convertible Preferred Stock (*1) 156,406 31,468 — 31,468 — — Class V Convertible Preferred Stock 62,500 — — — — — Class VI Convertible Preferred Stock 62,500 — — — — — Treasury Stock Common Stock (*2) 324 54 12 366 — ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo Class II Convertible Preferred Stock (*1) — 93,750 93,750 — — Limited Company, Banking Class III Convertible Preferred Stock (*1) — 31,468 31,468 — —
(*1) Pursuant to the provisions of the Company’s Articles of Incorporation, CMTH, acquired all relevant preferred stock on August 1, 2009, subscribed by the Resolution and Collection Corporation (“RCC”), and issued CMTHs’ common stocks to RCC in exchange for these preferred stocks. CMTH subsequently cancelled all the relevant pre- ferred stocks immediately after obtaining these stocks. (*2) The increase in the number of the treasury stock of common stock includes the shares acquired within the preapproved limit on treasury stock acquisition of odd-lot shares. The decrease includes the disposal of odd-lot shares.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 123 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
21. Other Interest Income and Expenses
(1) Other interest income for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Financial Data/ Millions of Yen U.S. Dollars Trust Holdings, Inc. Former Chuo Mitsui 2011 2010 2011 Interest on Due from Banks ¥ 452 ¥ 189 $5 Interest on Interest Rate Swaps 2,948 1,998 35 Interest on Monetary Claims Bought 1,155 1,351 13 Other 356 271 4 Total ¥ 4,912 ¥ 3,810 $ 59 Financial Data/ The Chuo Mitsui Trust and
Banking Company, Limited (2) Other interest expenses for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Interest on Bonds Payable ¥ 7,642 ¥ 7,512 $ 91 Interest on Payables under Repurchase Agreements and
Financial Data/ Payables under Securities Lending Transactions 2,537 3,500 30
Banking Company, Limited 4,983 6,929 59 Chuo Mitsui Asset Trust and Other Total ¥ 15,163 ¥ 17,943 $ 182
22. Trust Fees
CMTB and CMAB receive fees for controlling and managing trust properties held under trust agreements between Trust Group them and their clients. Former Chuo Mitsui Basel II Qualitative Disclosure Data/
23. Other Ordinary Income and Expenses
(1) Other ordinary income for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars Trust Holdings, Inc.
Former Chuo Mitsui 2011 2010 2011 Basel II Quantitative Disclosure Data/ Gains on Foreign Exchange ¥ 231 ¥ 1,283 $2 Gains on Sales and Redemption of Bonds 35,981 21,764 432 Gains on Derivatives — 2,566 — Other 11 1,890 0 Total ¥ 36,224 ¥ 27,505 $ 435
(2) Other ordinary expenses for the fiscal years ended March 31, 2011 and 2010, consisted of the following: Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Losses on Sales and Redemption of Bonds ¥ 8,611 ¥ 8,245 $ 103 Losses on Derivatives 472 — 5 Other 143 73 1 Total ¥ 9,228 ¥ 8,318 $ 110 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
124 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
24. Other Income and Expenses Data/ Financial
(1) Other income for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Gains on Sales of Stocks and Other Securities ¥ 15,838 ¥ 16,055 $ 190 and Trust Mitsui Chuo The Gains on Money Held in Trust 115 168 1 iaca Data/ Financial Net Reversal of Allowance for Loan Losses 764 — 9 Recoveries of Written-off Claims 6,926 2,147 83 Gains on Disposal of Tangible Fixed Assets 141 234 1 Other 5,078 6,134 61 Total ¥ 28,865 ¥ 24,740 $ 347 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
(2) Other expenses for the fiscal years ended March 31, 2011 and 2010, consisted of the following: Data/ Financial
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Losses on Sales of Loans ¥— ¥7 $— Write-off of Loans 3,173 10,339 38 Losses on Sales of Stocks and Other Securities 6,220 1,578 74 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Losses on Devaluation of Stocks and Other Securities 6,692 2,238 80 Mitsui Chuo Former
Loss on Money Held in Trust — 24 — Group Trust Provision of Allowance for Loan Losses — 360 — Losses on Disposal of Tangible Fixed Assets 759 501 9 Losses on Impairment of Fixed Assets 1,108 41 13 Management Integration Expenses 3,397 525 40 Other 19,488 20,114 234 ¥ 35,733 Data/ Disclosure Quantitative II Basel
Total ¥ 40,840 $ 491 Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 125 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
25. Income Taxes
CMTH and its domestic consolidated subsidiaries are statutory tax rate of approximately 40.69% for the fiscal subject to Japanese national and local income taxes years ended March 31, 2011 and 2010. Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui which, in the aggregate, resulted in a normal effective
(1) The tax effects of significant temporary differences and loss carry-forwards, which resulted in deferred tax assets and lia- bilities as of March 31, 2011 and 2010, were as follows:
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 Financial Data/ Deferred Tax Assets: The Chuo Mitsui Trust and Banking Company, Limited Allowance for Loan Losses ¥ 23,561 ¥ 28,832 $ 283 Tax Loss Carry-forwards 88,388 160,547 1,063 Securities 15,711 12,801 188 Valuation Difference on Available-for-sale Securities 11,936 — 143 Provision for Retirement Benefits 7,416 6,281 89 Other 52,123 54,918 626
Financial Data/ Valuation Allowance (38,958) (88,356) (468) Banking Company, Limited Chuo Mitsui Asset Trust and Total Deferred Tax Assets 160,179 175,025 1,926 Deferred Tax Liabilities: Valuation Difference on Available-for-sale Securities (4,213) (13,856) (50) Gains on Return of Securities from Employee Retirement Benefit Trusts (8,799) (8,799) (105) Deferred Gains or Losses on Hedges (2,330) — (28) Other (5,747) (7,419) (69)
Trust Group Total Deferred Tax Liabilities (21,091) (30,075) (253) ¥ 144,949 Former Chuo Mitsui Net Deferred Tax Assets ¥ 139,088 $ 1,672 Basel II Qualitative Disclosure Data/
(2) A reconciliation between the normal effective statutory tax rate and the actual effective tax rates reflected in the accompanying consolidated statements of operations for the fiscal years ended March 31, 2011 and 2010, was as follows:
2011 2010 Normal Effective Statutory Tax Rate 40.69% 40.69% Valuation Allowance (2.66) (5.57) Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Nontaxable Dividends Received (0.45) (0.36) Other, Net (0.72) 0.97 Actual Effective Tax Rate 36.84% 35.73% Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
126 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
26. Leases Data/ Financial
Lessee sition cost and accumulated depreciation and obligations Total lease payments under finance lease arrangements under finance leases as of March 31, 2011 and 2010, and the that do not transfer ownership of the leased property to the related depreciation expense and interest expense under lessee were ¥5 million ($0 million) and ¥11 million for the fis- finance leases for the fiscal years ended March 31, 2011 and akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The cal years ended March 31, 2011 and 2010, respectively. 2010, on an “as if capitalized” basis were as follows: iaca Data/ Financial Pro forma information on leased property such as acqui-
Millions of Yen 2011 2010 Equipment Other Total Equipment Other Total Acquisition Cost ¥ 13 ¥— ¥ 13 ¥ 45 ¥— ¥ 45 11 — 11 37 — 37 Accumulated Depreciation and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Net Leased Property ¥1 ¥— ¥1 ¥7 ¥— ¥7 iaca Data/ Financial
Millions of U.S. Dollars 2011 Equipment Other Total Acquisition Cost $0 $— $0 Accumulated Depreciation 0 — 0 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Net Leased Property $0 $— $0 Mitsui Chuo Former rs Group Trust
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Obligations under Finance Leases: Due within One Year ¥1 ¥6 $0
Due after One Year 0 2 0 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Total ¥2 ¥8 $0
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Depreciation Expense ¥4 ¥9 $0 Interest Expense 0 0 0 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Total ¥5 ¥9 $0
Depreciation expense and interest expense, which were not reflected in the accompanying consolidated statements of operations, were computed by the straight-line method and the interest method, respectively. The minimum rental commitments under noncancellable operating leases as of March 31, 2011 and 2010, were as follows:
Millions of Yen Millions of
U.S. Dollars Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking 2011 2010 2011 Due within One Year ¥ 309 ¥ 341 $3 Due after One Year 137 435 1 Total ¥ 447 ¥ 777 $5
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 127 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
27. Financial Instruments, Securities and Money Held in Trust
Financial Instruments These financial instruments are exposed to the market risk of fluctuations in interest rates, foreign exchange rates, Financial Data/ Trust Holdings, Inc. Former Chuo Mitsui 1. Outline of Financial Instruments and market prices of securities as well as volatility. Some (1) Group Policy for Financial Instruments of these financial instruments are less liquid than listed With CMTH in a pivotal position as bank holding com- equity securities and government bonds and thus more pany, CMTH Group is engaged in a range of financial serv- prone to market fluctuations. ice businesses including trust banking business by CMTB One of CMTH Group’s main sources of earnings is and CMAB, investment trust management business by the spread between the interest income from loans and
Financial Data/ CMAM, private equity fund management business by securities, etc. and interest expenses on deposits, etc., The Chuo Mitsui Trust and
Banking Company, Limited CMC, credit guarantee business and credit card business which is exposed to the interest rate risk that such profit by other subsidiaries. To facilitate these businesses, CMTH can be compromised by the magnitude and timing of Group is holding financial assets such as loans and bills fluctuations in investment interest rate and funding discounted and securities, while funding by accepting sav- interest rate. ings deposits. The policies as well as measures regarding 3) Liquidity Risk on Fund Raising how to manage or fund financial assets and liabilities are CMTH Group raises funds primarily through savings Financial Data/ determined primarily under the annual plans prepared by deposits from domestic corporate and individual cus- Banking Company, Limited Chuo Mitsui Asset Trust and each Group company. Risks associated with the Group- tomers, along with repurchase agreements in bond lend- wide financial assets and liabilities are monitored by ing market, borrowed money and issuance of corporate CMTH. CMTB and CMAB are monitoring their respective bonds. These financing activities are exposed to the liq- risks while implementing comprehensive Asset-Liability uidity risk that financing could become costlier or more Management (ALM). Meanwhile CMTB is engaged in restricted due to the circumstances including deteriora- Trust Group derivative transactions in an effort to contain market risk tion in CMTH Group’s financial condition or business Former Chuo Mitsui Basel II Qualitative Disclosure Data/ and other risks arising from its assets and liabilities within results, bad reputation of CMTH Group, worsening eco- the level commensurate with its management capacity. nomic environment and lowering market liquidity. (2) Content of Financial Instruments and Risks Arising from 4) Purposes for Derivative Transactions 1) Credit Risk (a) Banking Accounts CMTH Group’s credit arrangement involves loans to In banking accounts, CMTH Group enters into corporate and individual customers, along with invest- derivative transactions for the purpose of hedging Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ ment in shares and bonds issued by its client companies interest rates, currency exchange, and other risks per- and derivative transactions. Such credit arrangement is taining to CMTH Group’s assets and liabilities. exposed to credit risk of the borrowers, investees and In principle, mark-to-market accounting is applied counterparties in the event of deterioration in their to the banking account derivative transactions into financial condition. which CMTH Group enters. Within hedged derivative 2) Market Risk transactions entered into for hedging purposes, In the course of trading and investment activities, hedge accounting is applied to transactions deemed Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited CMTH Group handles financial instruments including to have high hedge effectiveness, and the deferral equity securities, investment trusts, investments in silent hedge method, the fair value hedge method, and partnership, foreign securities, foreign exchanges and interest rate swaps meeting certain conditions derivatives, in addition to a portfolio of domestic bonds method are applied. consisting of primarily the Japanese government bonds. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
128 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(b) Trading Accounts 2) Market Risk Management Data/ Financial In trading accounts, CMTH Group engages in deriv- (a) Market Risk Management ative transactions primarily as a means of earning from With regard to market risk, CMTH Group maintains short-term price fluctuations. CMTH Group also pro- a basic policy through its Rules for Market Risk vides its customers with a broad range of high-value- Management and follows Regulations for Market Risk added products and financial risk management Management to reinforce and control accurate hedg- akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The methods based on these transactions. Before entering ing techniques and risk. An independent check sys- iaca Data/ Financial into such a transaction, CMTH Group endeavors to tem has been established whereby the divisions that ensure that customers have sufficient understanding of execute transactions are clearly separate from the the content and risks entailed in such transactions. divisions that process the transactions, and overall (3) Risk Management for Financial Instruments management of market risk is consolidated under the CMTH sets out basic framework of the Group-wide risk Risk Management Department, which is independent hoMtu se rs and Trust Asset Mitsui Chuo management in the Rules for Risk Management, establishing of both the front and back offices and pinpoints the Limited Company, Banking the Risk Management Department which as a risk manage- status of activities undertaken by both office cate- Data/ Financial ment coordinating function, provides supervision, control gories. This department identifies and analyzes and guidance to bank subsidiaries, etc. in regard to issues group-wide risk, tracks compliance with risk limits and including the development of an adequate risk manage- reports to the director in charge on a daily basis and ment system, while monitoring CMTH Group’s risk situation. to the Executive Committee on a monthly basis.
1) Credit Risk Management Risks arising from the fluctuations of investment Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former CMTH Group’s basic policy for managing credit risk interest rate and funding interest rate, are managed rs Group Trust associated with transactions involving credit arrange- by the ALM at CMTB. For the purpose of ALM, the ment is set out in the Rules for Credit Risk Management, Financial Planning Department supervises overall while specific procedures such as a rating system, ALM operations, and the Risk Management assessment of assets and centralized credit risk man- Department is responsible for management and agement are set out in the Rules for Corporation Credit analysis relating to ALM, such as risk monitoring. The ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Rating and other rules. Risk Management Department is engaged in day-to- Inc. Holdings, Trust To determine whether to provide credit for individual day monitoring by using gap analysis and interest cases, the Credit Supervision Department independent rate sensitivity analysis based on the comprehensive of the Marketing Department is conducting rigorous grasp of interest rates and terms/maturities of finan- credit assessment and reviews in terms of the criteria cial assets and liabilities, which are reported monthly including purpose of loans, repayment capability, collat- to the ALM Committee established with the purpose akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The eral effect and profitability on case-by-case basis. to discuss matters regarding ALM. The ALM Data/ Disclosure Quantitative II Basel Credit lines for derivative and other transactions are Committee also discusses the matters including the established through strict procedures, in accordance corporate policy for market-related transactions, with trading standards provided separately. The compli- development of cash planning and implementation ance status of such credit lines and other conditions is of hedging operation. appropriately monitored. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 129 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
(b) Quantitative Information regarding Market Risk 3) Liquidity Risk Management on Fund Raising a) Financial Instruments Held in Banking Account CMTH Group’s basic policy for managing liquidity CMTH Group calculates the Value at Risk (VaR) of risk is set out in the Rules for Cash Flow Risk financial instruments held in banking account by histor- Management. Liquidity risk is managed by Risk Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui ical simulation method (confidence interval: 99%, hold- Management Department that monitors compliance ing period: set in accordance with the components of with the predetermined guidelines on funding gap, instruments (maximum one year), and observation while contingency procedures are in place to enable period: 3 years). As of March 31, 2011, the total amount flexible responses in the event of an emergency. of market risks (estimated loss) for financial instruments (4) Supplementary Explanation Concerning Fair Values of held in banking account was ¥218.9 billion ($2.6 bil- Financial Instruments
Financial Data/ lion). CMTH Group conducts the back testing in order Fair values of financial instruments are based on quoted The Chuo Mitsui Trust and
Banking Company, Limited to compare the VaR calculated by model with the actu- prices in active markets. If a quoted price is not available, al profits and losses. Through the results of the back other rational valuation techniques are used instead. testing in 2010, it confirms that the model covers the Calculation of such fair value involves certain assumptions, market risks precisely enough. Nonetheless, VaR meas- and could vary when different assumptions are employed. ures the market risks under a certain event probability calculated statistically on the basis of the historical Financial Data/ market volatility and it could not cover the market risk Banking Company, Limited Chuo Mitsui Asset Trust and in case market environment changes drastically. b) Financial Instruments Held in Trading Account CMTH Group calculates the Value at Risk (VaR) of financial instruments held in trading account by his- torical simulation method (confidence interval: 99%, Trust Group holding period: 10 days, and observation period: 3 Former Chuo Mitsui Basel II Qualitative Disclosure Data/ years). As of March 31, 2011, the total amount of mar- ket risks (estimated loss) for financial instruments held in trading account was ¥0.1 billion ($0.0 billion). CMTH Group conducts the back testing in order to compare the VaR calculated by model with the actual profits and losses. Through the results of the back Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ testing in 2010, it confirms that the model covers the market risks precisely enough. Nonetheless, VaR measures the market risks under a certain event prob- ability calculated statistically on the basis of the histor- ical market volatility and it could not cover the market risk in case market environment changes drastically. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
130 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
2. Fair Value of Financial Instruments these values are described below. Financial instruments Data/ Financial The carrying amount on the consolidated balance whose fair values are not readily determinable are not sheets and fair value of financial instruments as of March included in the table (See Notes B). 31, 2011 and 2010 as well as the differences between
Millions of Yen Millions of U.S. Dollars Carrying Unrealized Carrying Unrealized akn opn,Limited Company, Banking
Fair Value Fair Value and Trust Mitsui Chuo The March 31, 2011 Amount Gain (Losses) Amount Gain (Losses)
(1) Cash and Cash Equivalents ¥ 465,221 ¥ 465,221 ¥— $ 5,594 $ 5,594 $— Data/ Financial (2) Due from Banks Other than Due from the Bank of Japan 36,939 36,939 — 444 444 — (3) Call Loans and Bills Bought 6,936 6,936 — 83 83 — (4) Receivables under Securities Borrowing Transactions 9,378 9,378 — 112 112 — (5) Monetary Claims Bought (*1) 99,842 100,413 571 1,200 1,207 6 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking (6) Trading Assets Trading Securities 24,273 24,273 — 291 291 — Data/ Financial (7) Money Held in Trust 2,065 2,065 — 24 24 — (8) Securities Held-to-maturity Debt Securities 248,572 248,433 (138) 2,989 2,987 (1) Other Securities 3,217,371 3,217,371 — 38,693 38,693 — (9) Loans and Bills Discounted 8,864,266 106,605 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
Allowance for Loan Losses (*1) (46,731) (562) Mitsui Chuo Former 8,817,534 8,875,778 58,243 106,043 106,744 700 rs Group Trust Total Assets ¥ 12,928,135 ¥ 12,986,810 ¥ 58,675 $ 155,479 $ 156,185 $ 705 (1) Deposits ¥ 9,619,022 ¥ 9,653,771 ¥ 34,748 $ 115,682 $ 116,100 $ 417 (2) Call Money and Bills Sold 351,956 351,956 — 4,232 4,232 — (3) Payables under Securities Lending Transactions 1,161,653 1,161,653 — 13,970 13,970 —
(4) Borrowed Money 678,983 682,810 3,827 8,165 8,211 46 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former (5) Bonds Payable 267,247 272,476 5,229 3,214 3,276 62 Inc. Holdings, Trust (6) Due to Trust Account 801,657 801,657 — 9,641 9,641 — Total Liabilities ¥ 12,880,520 ¥ 12,924,325 ¥ 43,805 $ 154,907 $ 155,433 $ 526 Derivative Transactions (*2) To which Hedge Accounting is Not Applied ¥ 5,318 ¥ 5,318 ¥— $63$63 $— To which Hedge Accounting akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The is Applied 8,080 8,080 — 97 97 — Data/ Disclosure Quantitative II Basel Total Derivative Transactions ¥ 13,399 ¥ 13,399 ¥— $ 161 $ 161 $—
(*1) General as well as specific allowance for loan losses in respect of loans and bills discounted is excluded. As allowances for monetary claims bought are immaterial, it is deducted from the carrying amount. (*2) Derivative transactions included in trading assets and trading liabilities or other assets and other liabilities are collectively indicated. Receivables and payables incurred by derivative transactions are presented in net. Net payables are presented in parenthesis. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 131 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Yen
Carrying Fair Value Unrealized March 31, 2010 Amount Gain (Losses) (1) Cash and Cash Equivalents ¥ 237,851 ¥ 237,851 ¥—
Financial Data/ (2) Due from Banks Other than Trust Holdings, Inc. Former Chuo Mitsui Due from the Bank of Japan 24,388 24,388 — (3) Call Loans and Bills Bought (*1) 9,871 9,884 13 (4) Receivables under Securities Borrowing Transactions 1,521 1,521 — (5) Monetary Claims Bought (*1) 98,598 98,655 56 (6) Trading Assets Trading Securities 50 50 — Financial Data/ (7) Money Held in Trust 2,234 2,234 —
The Chuo Mitsui Trust and (8) Securities Banking Company, Limited Held-to-maturity Debt Securities 659,925 659,794 (131) Other Securities 3,626,041 3,626,041 — (9) Loans and Bills Discounted 8,941,948 Allowance for Loan Losses (*1) (51,873) 8,890,074 8,951,323 61,249 ¥ 13,550,558 ¥ 13,611,745 ¥ 61,187 Financial Data/ Total Assets (1) Deposits ¥ 9,087,107 ¥ 9,126,543 ¥ 39,436 Banking Company, Limited Chuo Mitsui Asset Trust and (2) Call Money and Bills Sold 306,161 306,161 — (3) Payables under Securities Lending Transactions 1,702,697 1,702,697 — (4) Borrowed Money 1,217,246 1,221,320 4,074 (5) Bonds Payable 234,750 237,844 3,093 (6) Due to Trust Account 995,612 995,612 — Trust Group Total Liabilities ¥ 13,543,577 ¥ 13,590,180 ¥ 46,603 Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Derivative Transactions (*2) To which Hedge Accounting is Not Applied ¥ (3,749) ¥ (3,749) ¥— To which Hedge Accounting is Applied 8,905 8,905 — Total Derivative Transactions ¥ 5,156 ¥ 5,156 ¥—
(*1) General as well as specific allowance for loan losses in respect of Call loans and bills bought, loans and bills discounted is excluded. As allowances for loan losses in respect of call monetary claims bought are immaterial, they are deducted from the carrying amount. Trust Holdings, Inc. Former Chuo Mitsui (*2) Derivative transactions included in trading assets and trading liabilities or other assets and other liabilities are collectively indicated. Basel II Quantitative Disclosure Data/ Receivables and payables incurred by derivative transactions are presented in net. Net payables are presented in parenthesis. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
132 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Notes: A. Calculation method of fair values of financial instruments Data/ Financial
Assets Following an examination of the recent market environ- (1) Cash and cash equivalents and (2) Due from banks ment, market values of floating-rate Japanese government other than due from the Bank of Japan bonds (JGBs) are believed to remain inappropriate to be Deposits without maturity are stated at their carrying treated as their fair values. Therefore reasonably assessed akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The amounts as their fair values approximate carrying values of floating-rate JGBs are recorded as the carrying iaca Data/ Financial amounts. Deposits with maturities with shorter deposit amount for the year ended March 31, 2010. Thus com- terms (within one year) are stated at their carrying amounts pared with the cases where market prices are recorded as as their fair values approximate carrying amounts. the carrying amounts, “Securities” increased by ¥8,013 (3) Call loans and bills bought and (4) Receivables under million, “Deferred tax assets” decreased by ¥3,255 million, securities borrowing transactions while “Valuation difference on available-for-sale securi- hoMtu se rs and Trust Asset Mitsui Chuo These are subject to shorter agreed periods (within one ties” increased by ¥4,757 million. Limited Company, Banking year), and are stated at their acquisition costs as their fair Reasonably assessed values of floating-rate JGBs are deter- Data/ Financial values approximate acquisition costs. mined based on the discounted cash flow method. Price- (5) Monetary claims bought determining variables include JGB yield and its volatility. Of the monetary claims bought, beneficiary certificates (9) Loans and bills discounted representing interest in a trust holding loan receivables Of loans and bills discounted, those with floating rates
are stated at the prices quoted by brokers. Other mone- reflect market rates at short intervals, whose fair values Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former tary claims bought with shorter agreed periods (within one approximate acquisition costs unless borrowers’ credit- rs Group Trust year), are stated at their acquisition costs as their fair val- worthiness changes significantly after the loans are made, ues approximate acquisition costs. and acquisition costs are stated as the fair values. (6) Trading assets Meanwhile, those with fixed rates are stated at the fair val- Securities including bonds held for trading purposes are ues, as calculated by discounting principal and interest by stated at the prices quoted by Japan Securities Dealers the interest rate reflecting credit risk by category based on ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Association. the nature of loan, internal rating and term. Those loans Inc. Holdings, Trust (7) Money held in trust with shorter contract periods (within one year) are stated Securities comprising trust assets in money held in trust at acquisition cost which approximate their fair values. are stated at the prices quoted by brokers. Claims under legal bankruptcy, virtual bankruptcy and (8) Securities possible bankruptcy, whose expected amounts of loan Of securities of various categories; (i) equity securities are losses are calculated based on the expected recoverable akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The stated at the prices quoted on the stock exchanges: (ii) pri- amounts from their collateral or guarantee, are stated at Data/ Disclosure Quantitative II Basel vately offered corporate bonds are stated at the values cal- their acquisition costs at the consolidation date less the culated by discounting principal and interest by the interest current expected amount of loan losses, which approxi- rate reflecting credit risk, by category based on internal rat- mate their fair values. Of loans and bills discounted, those ing and term, (iii) other bonds are stated at the prices pub- without scheduled due dates thanks to the special condi- lished by Japan Securities Dealers Association or the prices tions such as the ones limiting the loan amounts within the
quoted by brokers. Investment trust beneficiary certificates values of pledged assets, are stated at acquisition costs Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking are stated at the official reference price published by securi- which are assumed to approximate their fair values ties investment trust and management firms. because of the estimated repayment period and interest rate conditions, etc.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 133 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Liabilities (4) Borrowed money (1) Deposits Borrowings are stated at their present values, as calcu- For demand deposits, the amount payable (carrying lated by discounting principal and interest by the interest amount) in case demand is made on the consolidation rate assumed for similar borrowings. Those borrowings Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui date is treated as their fair value. Meanwhile for time with shorter contract periods (within one year) are stated deposits, present values calculated by discounting future at acquisition costs which approximate their fair values. cash flows by category based on terms, etc., by the inter- (5) Bonds payable est rate applicable to newly deposited savings are Bonds payable are stated at the prices quoted by Japan deemed to be their fair values. For time deposits with Securities Dealers Association, or in the absence of such shorter deposit terms (within one year) and those with market values, at their present values as calculated by dis-
Financial Data/ floating rates, carrying amounts approximate fair values, counting principal and interest by the interest rate The Chuo Mitsui Trust and
Banking Company, Limited and thus quoted as such. assumed for the similar bond issues. Negotiable certificates of deposit are all with shorter (6) Due to trust account deposit terms (within one year) and are stated at their car- Due to trust account is stated at the amounts payable rying amounts which approximate their fair values. (book value) in case demand is made on the consolida- (2) Call money and bills sold and (3) Payables under securi- tion date. ties lending transactions Financial Data/ These are subject to shorter agreed periods (within one Banking Company, Limited Derivative Transactions Chuo Mitsui Asset Trust and year), and are stated at their acquisition costs as their fair The information regarding derivatives transactions is values approximate acquisition costs. included in Note 28 “Derivative Information.”
Notes: B. Financial instruments whose fair values are not readily determinable are listed below. These items are not included in “Asset (8) Other securities” stated in fair value of financial instruments. Trust Group Millions of Former Chuo Mitsui Millions of Yen
Basel II Qualitative Disclosure Data/ U.S. Dollars 2011 2010 2011 Category Carrying Amount Carrying Amount Carrying Amount Unlisted Japanese Stocks (*) ¥ 88,332 ¥ 109,399 $ 1,062 Subscription Certificates (*) 20,404 120,210 245 Foreign Securities 2,719 10,106 32 Total ¥ 111,456 ¥ 239,716 $ 1,340 Trust Holdings, Inc. Former Chuo Mitsui Fair Values of these items are not disclosed because there is no market price, and it is very difficult to identify fair values. Basel II Quantitative Disclosure Data/ Securities in subsidiaries and associated companies are not included in the table. (*) For the year ended March 31, 2011, impairment losses of ¥299 million ($3 millions) on unlisted Japanese stock and ¥155 million ($1 million) on subscription certificates were posted. For the year ended March 31, 2010, impairment losses of ¥498 million on unlisted Japanese stock were posted. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
134 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Notes: C. Scheduled redemption amount of monetary claims and securities with maturity after the balance sheet date. Data/ Financial
Millions of Yen 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Due from Banks ¥ 436,628 ¥—¥—¥—¥—¥— akn opn,Limited Company, Banking
Call Loans and Bills Bought 6,936 — — — — — and Trust Mitsui Chuo The Receivables under Securities iaca Data/ Financial Borrowing Transactions 9,378 — — — — — Monetary Claims Bought 33,489 5 225 6,014 — 60,186 Securities 199,199 973,346 494,082 430,668 349,598 483,874 Held-to-maturity Debt Securities 21,330 194,835 10,000 — — 22,405 Japanese Government Bonds — 135 — — — — Japanese Corporate Bonds — — — — — 22,405 hoMtu se rs and Trust Asset Mitsui Chuo Other Securities with Maturity 177,868 778,511 484,082 430,668 349,598 461,468 Limited Company, Banking
Japanese Government Bonds 89,000 496,153 149,825 261,234 273,742 88,295 Data/ Financial Japanese Municipal Bonds — — 154 — — — Japanese Corporate Bonds 19,017 131,372 76,566 21,429 6,960 16,685 Loans and Bills Discounted (*) 3,052,750 1,552,986 986,954 466,573 493,778 2,014,269 Total ¥ 3,738,381 ¥ 2,526,338 ¥ 1,481,261 ¥ 903,256 ¥ 843,377 ¥ 2,558,329
(*) Of the loaned monies, ¥60,687 million ($729 million) that cannot envisage scheduled redemption amount such as claims under legal bankruptcy, virtual bankruptcy and pos- sible bankruptcy, and ¥234,218 million ($2,816 million) without specified terms are not included. ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former rs Group Trust Millions of Yen 2010 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Due from Banks ¥ 227,418 ¥—¥—¥— ¥—¥— Call Loans and Bills Bought 9,884 — — — — — ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former
Receivables under Securities Inc. Holdings, Trust Borrowing Transactions 1,521 — — — — — Monetary Claims Bought 24,522 — 1,009 674 — 72,748 Securities 778,482 861,309 1,059,065 264,043 398,851 422,067 Held-to-maturity Debt Securities 411,155 79,623 146,700 — — 22,445 Japanese Government Bonds 399,155 135 — — — — Japanese Corporate Bonds — — — — — 22,445 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Other Securities with Maturity 367,327 781,686 912,365 264,043 398,851 399,622 Data/ Disclosure Quantitative II Basel Japanese Government Bonds 285,228 499,179 379,993 1,934 337,055 129,151 Japanese Municipal Bonds 490 — — 153 — — Japanese Corporate Bonds 53,738 113,344 77,383 13,954 416 15,107 Loans and Bills Discounted (*) 2,875,574 1,752,678 864,238 306,764 403,055 2,401,545 Total ¥ 3,917,403 ¥ 2,613,988 ¥ 1,924,313 ¥ 571,482 ¥ 801,906 ¥ 2,896,361
(*) Of the loaned monies, ¥93,843 million that cannot envisage scheduled redemption amount such as claims under legal bankruptcy, virtual bankruptcy and possible bankrupt- cy, and ¥241,533 million without specified terms are not included. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 135 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years
Financial Data/ Due from Banks $ 5,251 $—$—$— $— $— Trust Holdings, Inc. Former Chuo Mitsui Call Loans and Bills Bought 83 — — — — — Receivables under Securities Borrowing Transactions 112 — — — — — Monetary Claims Bought 402 0 2 72 — 723 Securities 2,395 11,705 5,942 5,179 4,204 5,819 Held-to-maturity Debt Securities 256 2,343 120 — — 269 Japanese Government Bonds — 1 — — — — Financial Data/ Japanese Corporate Bonds — — — — — 269 The Chuo Mitsui Trust and
Banking Company, Limited Other Securities with Maturity 2,139 9,362 5,821 5,179 4,204 5,549 Japanese Government Bonds 1,070 5,966 1,801 3,141 3,292 1,061 Japanese Municipal Bonds — — 1 — — — Japanese Corporate Bonds 228 1,579 920 257 83 200 Loans and Bills Discounted (*) 36,713 18,676 11,869 5,611 5,938 24,224 Total $ 44,959 $ 30,382 $ 17,814 $ 10,862 $ 10,142 $ 30,767 Financial Data/ Banking Company, Limited Chuo Mitsui Asset Trust and Notes: D. Amounts of repayment of Japanese corporate bonds, borrowed money and other interest-bearing liabilities, scheduled after the consolidation date.
Millions of Yen 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Trust Group Deposits (*) ¥ 6,020,099 ¥ 2,282,348 ¥ 1,238,722 ¥ 64,817 ¥ 13,033 ¥— Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Call Money and Bills Sold 351,956 — — — — — Payables under Securities Lending Transactions 1,161,653 — — — — — Borrowed Money 588,328 20,489 65,165 5,000 — — Bonds Payable — 55,000 156,147 — 40,000 16,100 Due to Trust Account 801,657 — — — — — Total ¥ 8,923,695 ¥ 2,357,837 ¥ 1,460,035 ¥ 69,817 ¥ 53,033 ¥ 16,100 Trust Holdings, Inc. Former Chuo Mitsui (*) Of deposits, demand deposits are included in “within one year.” Also deposits include current deposits. Basel II Quantitative Disclosure Data/
Millions of Yen 2010 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Deposits (*) ¥ 5,315,432 ¥ 2,456,425 ¥ 1,246,313 ¥ 63,046 ¥ 5,889 ¥— Call Money and Bills Sold 306,161 — — — — — Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Payables under Securities Lending Transactions 1,702,697 — — — — — Borrowed Money 1,128,924 18,122 65,199 5,000 — — Bonds Payable — 55,000 83,000 70,650 10,000 16,100 Due to Trust Account 995,612 — — — — — Total ¥ 9,448,828 ¥ 2,529,547 ¥ 1,394,513 ¥ 138,697 ¥ 15,889 ¥ 16,100
(*) Of deposits, demand deposits are included in “within one year.” Also deposits include current deposits. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
136 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of U.S. Dollars Data/ Financial 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Deposits (*) $ 72,400 $ 27,448 $ 14,897 $ 779 $ 156 $— Call Money and Bills Sold 4,232 — — — — —
Payables under Securities Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Lending Transactions 13,970 — — — — — Borrowed Money 7,075 246 783 60 — — Data/ Financial Bonds Payable — 661 1,877 — 481 193 Due to Trust Account 9,641 — — — — — Total $ 107,320 $ 28,356 $ 17,559 $ 839 $ 637 $ 193
Securities hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking iaca Data/ Financial In addition to “Securities” on the consolidated balance sheet, the following information includes other monetary claims bought in Monetary claims bought and trading account securities and commercial papers in Trading assets.
1. Trading Securities
Valuation Difference
Reflected on the Statements of Income Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Millions of Yen Millions of U.S. Dollars Group Trust March 31 2011 2010 2011 Trading Securities ¥ (35) ¥ (52) $(0)
2. Held-to-maturity Debt Securities
Millions of Yen Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Type of Bond Carrying Amount Fair Value Unrealized Gains March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Government Bonds ¥ 135 ¥ 136 ¥0 Japanese Corporate Bonds 22,405 22,676 270 Others 176,263 177,276 1,012 Subtotal 198,805 200,090 1,284 Securities with Unrealized Losses Others 98,422 97,491 (931) akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Total ¥ 297,227 ¥ 297,581 ¥ 353
Millions of Yen
Type of Bond Carrying Amount Fair Value Unrealized Gains March 31, 2010 (Losses) Securities with Unrealized Gains Japanese Government Bonds ¥ 399,291 ¥ 401,557 ¥ 2,265 Japanese Corporate Bonds 22,445 22,761 315
Others 61,436 62,120 683 Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Subtotal 483,173 486,438 3,264 Securities with Unrealized Losses Others 237,908 234,348 (3,559) Total ¥ 721,082 ¥ 720,787 ¥ (294)
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 137 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars
Type of Bond Carrying Amount Fair Value Unrealized Gains March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Government Bonds $1 $1 $0
Financial Data/ Japanese Corporate Bonds 269 272 3 Trust Holdings, Inc. Former Chuo Mitsui Others 2,119 2,132 12 Subtotal 2,390 2,406 15 Securities with Unrealized Losses Others 1,183 1,172 (11) Total $ 3,574 $ 3,578 $4
3. Available-for-sale Securities
Financial Data/ Millions of Yen
The Chuo Mitsui Trust and Unrealized Gains Banking Company, Limited Type of Bond Carrying Amount Acquisition Cost March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Stocks ¥ 291,768 ¥ 199,113 ¥ 92,655 Bonds 293,892 288,558 5,333 Japanese Government Bonds 154,977 152,281 2,696 Japanese Municipal Bonds 154 149 4 Japanese Corporate Bonds 138,760 136,127 2,632 Financial Data/ Others 311,210 306,970 4,239 Banking Company, Limited Chuo Mitsui Asset Trust and Subtotal 896,871 794,642 102,228 Securities with Unrealized Losses Japanese Stocks 195,033 249,473 (54,439) Bonds 1,336,512 1,354,833 (18,321) Japanese Government Bonds 1,203,241 1,220,246 (17,005) Japanese Corporate Bonds 133,270 134,586 (1,315) Others 806,728 839,486 (32,757)
Trust Group Subtotal 2,338,275 2,443,794 (105,518)
Former Chuo Mitsui Total ¥ 3,235,147 ¥ 3,238,437 ¥ (3,289) Basel II Qualitative Disclosure Data/
Millions of Yen
Type of Bond Carrying Amount Acquisition Cost Unrealized Gains March 31, 2010 (Losses) Securities with Unrealized Gains Japanese Stocks ¥ 361,705 ¥ 243,680 ¥ 118,025 Bonds 485,802 475,890 9,912 Japanese Government Bonds 348,255 339,921 8,333 Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Japanese Municipal Bonds 644 639 4 Japanese Corporate Bonds 136,902 135,328 1,573 Others 285,046 282,148 2,897 Subtotal 1,132,554 1,001,719 130,835 Securities with Unrealized Losses Japanese Stocks 186,268 231,287 (45,019) Bonds 1,421,297 1,434,858 (13,561) Japanese Government Bonds 1,284,255 1,296,509 (12,254) Japanese Corporate Bonds 137,042 138,348 (1,306) Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Others 899,196 924,407 (25,210) Subtotal 2,506,762 2,590,553 (83,791) Total ¥ 3,639,316 ¥ 3,592,272 ¥ 47,044 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
138 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of U.S. Dollars Data/ Financial
Type of Bond Carrying Amount Acquisition Cost Unrealized Gains March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Stocks $ 3,508 $ 2,394 $ 1,114 Bonds 3,534 3,470 64 Japanese Government Bonds 1,863 1,831 32 Japanese Municipal Bonds 1 1 0 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Japanese Corporate Bonds 1,668 1,637 31
Others 3,742 3,691 50 Data/ Financial Subtotal 10,786 9,556 1,229 Securities with Unrealized Losses Japanese Stocks 2,345 3,000 (654) Bonds 16,073 16,293 (220) Japanese Government Bonds 14,470 14,675 (204) Japanese Corporate Bonds 1,602 1,618 (15) hoMtu se rs and Trust Asset Mitsui Chuo Others 9,702 10,096 (393) Limited Company, Banking Subtotal 28,121 29,390 (1,269) iaca Data/ Financial Total $ 38,907 $ 38,946 $ (39)
4. Held-to-maturity Debt Securities Sold during the Current Fiscal Year
Millions of Yen
Acquisition Cost Sales Amount Gains (Losses) on From April 1, 2010 to March 31, 2011 of Sales Amount Sales Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Japanese Government Bonds ¥ 399,155 ¥ 400,515 ¥ 1,359 rs Group Trust (Reason for sales) Bonds were sold before maturity, in accordance with article 282, paragraph 1 of “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting Standard Committee Report No.14).
Millions of Yen Acquisition Cost Gains (Losses) on
Sales Amount Data/ Disclosure Quantitative II Basel From April 1, 2009 to March 31, 2010 of Sales Amount Sales omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Japanese Government Bonds ¥ 198,921 ¥ 200,169 ¥ 1,247 Other 2,175 4,027 1,852 Total ¥ 201,096 ¥ 204,196 ¥ 3,099
(Reason for sales) Bonds were sold before maturity, in accordance with article 282, paragraph 1 of “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting Standard Committee Report No.14) and sold with credit deterioration in accordance with article 83, paragraph 1 of the guidelines. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Millions of U.S. Dollars
Acquisition Cost Sales Amount Gains (Losses) on From April 1, 2010 to March 31, 2011 of Sales Amount Sales Japanese Government Bonds $ 4,800 $ 4,816 $16
5. Available-for-sale Securities Sold during the Current Fiscal Year
Millions of Yen ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking From April 1, 2010 to March 31, 2011 Sales Amount Gains on Sales Losses on Sales Japanese Stocks ¥ 59,920 ¥ 16,280 ¥ 2,929 Bonds 5,198,251 9,691 3,134 Japanese Government Bonds 5,099,968 9,310 3,129 Japanese Corporate Bonds 98,282 380 4 Others 2,140,986 25,497 4,243 Total ¥ 7,399,157 ¥ 51,470 ¥ 10,307
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 139 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Yen From April 1, 2009 to March 31, 2010 Sales Amount Gains on Sales Losses on Sales Japanese Stocks ¥ 72,793 ¥ 17,754 ¥ 974 Bonds 4,693,067 7,747 2,096
Financial Data/ Japanese Government Bonds 4,604,510 7,417 2,093 Trust Holdings, Inc. Former Chuo Mitsui Japanese Corporate Bonds 88,557 329 3 Others 1,762,574 11,550 1,771 Total ¥ 6,528,435 ¥ 37,052 ¥ 4,842
Millions of U.S. Dollars From April 1, 2010 to March 31, 2011 Sales Amount Gains on Sales Losses on Sales
Financial Data/ Japanese Stocks $ 720 $ 195 $35 Bonds 62,516 116 37 The Chuo Mitsui Trust and Banking Company, Limited Japanese Government Bonds 61,334 111 37 Japanese Corporate Bonds 1,181 4 0 Others 25,748 306 51 Total $ 88,985 $ 619 $ 123
Financial Data/ 6. Impairment of Securities Normal issuers: Fair value is 30% or more lower than Banking Company, Limited Chuo Mitsui Asset Trust and Available-for-sale securities with fair value are consid- acquisition cost. ered as impaired if the fair value decreases significantly Within the normal issuers under the rules of self-assess- below the acquisition cost and such decline is not consid- ment above, when the fair value of which security is 30% or ered as recoverable. The fair value is recognized as the more but less than 50% lower than acquisition cost, the consolidated balance sheet amount and the amount of security is judged individually, and unless the decline in its
Trust Group impairment is accounted for as valuation loss for the cur- fair value below the cost is temporary, the security is
Former Chuo Mitsui rent fiscal year. accounted as impaired. All others are considered as the Basel II Qualitative Disclosure Data/ For the fiscal year ended March 31, 2011, Impairment decline in fair value below the cost is other than tempo- losses were ¥6,336 million ($76 million), which included rary, and treated as impaired. ¥6,237 million ($75 million) of Japanese stocks and ¥99 mil- Legal bankrupt issuers: Issuers that are legally bankrupt lion ($1 million) of Japanese corporate bonds. or formally declared bankrupt. For the fiscal year ended March 31, 2010, Impairment Virtual bankrupt issuers: Issuers that are not legally losses were ¥1,583 million, which includes ¥1,569 million of bankrupt but regarded as substantially bankrupt. Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Japanese stocks. Possible bankrupt issuers: Issuers that are not currently The internal policy on determining that decline in the bankrupt, but are perceived to have a high risk of falling fair value represents a condition of “significant decline.” into bankruptcy. Legal bankrupt/Virtual bankrupt/Possible bankrupt Issuers requiring caution: Issuers that are identified for issuers: Fair value is lower than acquisition cost. close monitoring. Issuers requiring caution: Fair value is 30% or more Normal issuers: Issuers other than the above four cate- lower than acquisition cost. gories of issuers. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
140 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Money Held in Trust Data/ Financial
1. Money Held in Trust for Trading Purpose There were no corresponding items as of March 31, 2011 and 2010.
2. Money Held in Trust being Held to Maturity Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The There were no corresponding items as of March 31, 2011 and 2010. iaca Data/ Financial
3. Other Money Held in Trust (other than for trading purpose and being held to maturity)
Millions of Yen
Carrying Amount Acquisition Cost Difference Positive Negative March 31, 2011 Difference Difference Other Money Held in Trust ¥ 2,065 ¥ 1,700 ¥ 364 ¥ 364 ¥ — hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Note: Each of positive difference and negative difference is the components of difference. iaca Data/ Financial
Millions of Yen
Carrying Amount Acquisition Cost Difference Positive Negative March 31, 2010 Difference Difference Other Money Held in Trust ¥ 2,234 ¥ 1,694 ¥ 540 ¥ 540 ¥ —
Note: Each of positive difference and negative difference is the components of difference. ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former rs Group Trust Millions of U.S. Dollars
Carrying Amount Acquisition Cost Difference Positive Negative March 31, 2011 Difference Difference Other Money Held in Trust $ 24 $ 20 $4 $4 $—
Note: Each of positive difference and negative difference is the components of difference. ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 141 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
28. Derivatives Information
1. Derivatives to which Hedge Accounting is Not Applied Contract or notional amount, fair value, unrealized gains (losses) and calculation method of fair value are as follows: Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui Note that contract or notional amounts do not represent the market risk exposure associated with the derivatives.
(1) Interest Rate Transactions
Millions of Yen 2011 2010 Contract or Contract or Unrealized Notional Amount Fair Unrealized Notional Amount Fair Financial Data/ Gains Gains Over Value (Losses) Over Value (Losses) Total One Year Total One Year The Chuo Mitsui Trust and Banking Company, Limited Over-the-counter: Interest Rate Swaps: Fixed Rate Receipt, Floating Rate Payment ¥ 6,411,695 ¥ 5,625,450 ¥ 127,940 ¥ 127,940 ¥ 5,210,194 ¥ 3,794,889 ¥ 148,272 ¥ 148,272 Floating Rate Receipt, Fixed Rate Payment 6,399,587 5,580,007 (123,069) (123,069) 5,134,979 3,747,950 (145,257) (145,257) Financial Data/ Floating Rate Receipt, Banking Company, Limited Chuo Mitsui Asset Trust and Floating Rate Payment 32,200 32,200 2,644 2,644 32,200 32,200 2,821 2,821 Interest Rate Swaptions: Selling 80,400 52,150 (1,763) 454 57,150 37,750 (1,284) 161 Buying 103,524 61,459 2,200 1,502 77,078 45,329 1,565 1,051 Others: Selling 56,747 20,974 (58) 7 56,551 56,498 (67) 143 Buying 96,229 60,974 57 (2) 95,920 95,920 67 (31) Trust Group Total — — ¥ 7,951 ¥ 9,476 — — ¥ 6,119 ¥ 7,162 Former Chuo Mitsui Basel II Qualitative Disclosure Data/
Millions of U.S. Dollars 2011 Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Over-the-counter: Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Interest Rate Swaps: Fixed Rate Receipt, Floating Rate Payment $ 77,109 $ 67,654 $ 1,538 $ 1,538 Floating Rate Receipt, Fixed Rate Payment 76,964 67,107 (1,480) (1,480) Floating Rate Receipt, Floating Rate Payment 387 387 31 31 Interest Rate Swaptions: Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Selling 966 627 (21) 5 Buying 1,245 739 26 18 Others: Selling 682 252 (0) 0 Buying 1,157 733 0 (0) Total — — $95$ 113
Note: Fair value is calculated according to discounted present value, the option pricing model and other valuation techniques. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
142 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Currency Transactions Data/ Financial
Millions of Yen 2011 2010 Contract or Contract or Notional Amount Unrealized Notional Amount Unrealized Fair Gains Fair Gains Over Value Value Total (Losses) Over (Losses) One Year Total One Year akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Over-the-counter:
Currency Rate Swaps ¥ 41,575 ¥ 41,575 ¥ 78 ¥ 78 ¥ 48,375 ¥ 46,515 ¥ 132 ¥ 132 Data/ Financial Foreign Exchange Contracts: Selling 1,565,752 9,759 (28,998) (28,998) 1,041,461 385 (29,707) (29,707) Buying 1,627,638 30,826 26,666 26,666 1,058,211 777 30,483 30,483 Total — — ¥ (2,253) ¥ (2,253) — — ¥ 907 ¥ 907 hoMtu se rs and Trust Asset Mitsui Chuo Millions of U.S. Dollars Limited Company, Banking
2011 Data/ Financial Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Over-the-counter: Currency Rate Swaps $ 500 $ 500 $0$0
Foreign Exchange Contracts: Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Selling 18,830 117 (348) (348) rs Group Trust Buying 19,574 370 320 320 Total — — $ (27) $ (27) Note: Fair value is calculated according to discounted present value, the option pricing model and other valuation techniques.
(3) Stock Transactions
There was no contract or notional amount of stock transactions as of March 31, 2011. Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Millions of Yen 2010 Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Listed: akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Stock Index Options: Selling ¥ 475 ¥— ¥(0) ¥4 Buying 1,987 — 0 (33) Total — — ¥0 ¥ (28)
Note: Fair value is calculated according to closing market prices on the stock exchanges, such as the Tokyo Stock Exchange. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 143 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
(4) Bond Transactions
Millions of Yen 2011 2010 Contract or Contract or
Financial Data/ Notional Amount Unrealized Notional Amount Unrealized Fair Gains Fair Gains Trust Holdings, Inc. Former Chuo Mitsui Over Value (Losses) Over Value (Losses) Total One Year Total One Year Listed: Bond Future: Selling ¥ 13,962 ¥—¥7¥7 — — — — Bond Future Options: Buying — — — — ¥ 31,093 ¥—¥ 49 ¥ (26) Financial Data/
The Chuo Mitsui Trust and Millions of U.S. Dollars Banking Company, Limited 2011 Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Listed: Financial Data/ Bond Future: Banking Company, Limited Chuo Mitsui Asset Trust and Selling $167$—$0$0
Note: Fair value is calculated according to closing market prices on the stock exchanges, such as the Tokyo Stock Exchange and the prices offered by information venders.
(5) Credit Derivative Transactions
Millions of Yen
Trust Group 2011 2010
Former Chuo Mitsui Contract or Contract or
Basel II Qualitative Disclosure Data/ Notional Amount Unrealized Notional Amount Unrealized Fair Gains Fair Gains Over Value (Losses) Over Value (Losses) Total One Year Total One Year Over-the-counter: Credit Default Swaps: Selling ¥ 5,000 ¥ 5,000 ¥ (386) ¥ (386) ¥ 15,000 ¥ 15,000 ¥ (10,826) ¥ (10,826)
Trust Holdings, Inc. Millions of U.S. Dollars Former Chuo Mitsui Basel II Quantitative Disclosure Data/ 2011 Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Over-the-counter: Credit Default Swaps: Selling $ 60$60$(4)$(4) Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Notes: 1. The fair values of these credit default swaps were determined based on the values reasonably estimated by using our own calculation methods. The values reasonably estimated by using our own calculation methods are calculated by the theory value model on the basis of analysis such as price change chronological order compari- son of the market price of the credit default swap and a price comparison between similar articles. 2. “Selling” refers to acceptance transactions on credit risk. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
144 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
The fair values of some credit default swaps in deriva- culation methods are calculated by the theory value Data/ Financial tives were previously measured at the prices offered by model on the basis of analysis such as price change brokers. However, a judgment has been made by man- chronological order comparison of the market price of the agement that the current market prices are not indicative credit default swap and a price comparison between simi- of fair values. At the end of the fiscal year 2010, the fair val- lar articles. ues of these credit default swaps were determined based akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The on the values reasonably estimated by using our own cal- 2. Derivatives to which Hedge Accounting is Applied iaca Data/ Financial culation methods. As a result, other liabilities and other Contract or notional amount, fair value, unrealized gains ordinary expenses decreased by and income before (losses) and calculation method of fair value are as follows: income taxes and minority interests increased by ¥1,537 Note that contract or notional amounts do not represent million, respectively. the market risk exposure associated with the derivatives. The values reasonably estimated by using our own cal- hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
(1) Interest Rate Transactions Data/ Financial
Millions of Yen 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year
Primary Method Interest Rate Swaps: Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Fixed Rate Receipt rs Group Trust Floating Rate Payment Securities ¥ 100,000 ¥ 100,000 ¥ 3,173 Floating Rate Receipt Fixed Rate Payment Securities 100,000 100,000 (4,160) Fixed Rate Receipt Floating Rate Payment Borrowed Money 17,500 15,000 266 Fixed Rate Receipt ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Floating Rate Payment Bonds Payable 108,147 108,147 8,766 Inc. Holdings, Trust Total — — ¥ 8,046
Millions of Yen 2010 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Method Derivatives Item Total Over One Year Data/ Disclosure Quantitative II Basel Primary Method Interest Rate Swaps: Fixed Rate Receipt Floating Rate Payment Securities ¥ 100,000 ¥ 100,000 ¥ 1,592 Floating Rate Receipt Fixed Rate Payment Securities 100,000 100,000 (2,610) Fixed Rate Receipt Floating Rate Payment Borrowed Money 17,500 17,500 344 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo Fixed Rate Receipt Limited Company, Banking Floating Rate Payment Bonds Payable 115,650 115,650 8,535 Fixed Rate Receipt Floating Rate Payment Deposits 70,579 — 4 Total — — ¥ 7,866
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 145 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Total Over One Year Value
Financial Data/ Method Derivatives Item Trust Holdings, Inc. Former Chuo Mitsui Primary Method Interest Rate Swaps: Fixed Rate Receipt Floating Rate Payment Securities $ 1,202 $ 1,202 $38 Floating Rate Receipt Fixed Rate Payment Securities 1,202 1,202 (50) Fixed Rate Receipt Floating Rate Payment Borrowed Money 210 180 3 Financial Data/ Fixed Rate Receipt The Chuo Mitsui Trust and Banking Company, Limited Floating Rate Payment Bonds Payable 1,300 1,300 105 Total — — $ 96
Notes: 1. These transactions are accounted for using the deferral hedge accounting individually in accordance with JICPA Guidance on Accounting Standard for Financial Instruments. 2. Fair values are calculated according to discounted present value.
(2) Currency transactions
Financial Data/ Millions of Yen Banking Company, Limited Chuo Mitsui Asset Trust and 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Primary Method Foreign Exchange Forward Contracts: Buying Bonds Payable ¥ 2,844 ¥ 2,183 ¥ (39) Trust Group
Former Chuo Mitsui Millions of Yen Basel II Qualitative Disclosure Data/ 2010 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Primary Method Foreign Exchange Forward Contracts: Buying Bonds Payable ¥ 3,523 ¥ 2,844 ¥ 249 Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Millions of U.S. Dollars 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Primary Method Foreign Exchange Forward Contracts: Buying Bonds Payable $ 34 $ 26 $ (0)
Notes: 1. These transactions are accounted for using the deferral hedge accounting individually in accordance with JICPA Guidance on Accounting Standard for Financial Instruments. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited 2. Fair values are calculated according to discounted present value. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
146 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(3) Bond Transactions Data/ Financial
Millions of Yen 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year akn opn,Limited Company, Banking
Method of Recognizing Gains or Bond OTC Options: and Trust Mitsui Chuo The Losses on Hedged Items Selling Securities ¥ 490,000 ¥— ¥ (99) iaca Data/ Financial Buying Securities 490,000 — 173 Total — — ¥74
Millions of Yen 2010 Contract or Notional Amount hoMtu se rs and Trust Asset Mitsui Chuo Fair Limited Company, Banking Hedge Accounting Type of Major Hedged Total Over One Year Value
Method Derivatives Item Data/ Financial Primary Method Bond Forward Agreements: Selling Securities ¥ 18,730 ¥— ¥ (14) Method of Recognizing Gains or Bond OTC Options: Losses on Hedged Items Selling Securities 605,000 — (19) Buying Securities 605,000 — 824
Total — — ¥ 789 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former
Millions of U.S. Dollars Group Trust 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Method of Recognizing Gains or Bond OTC Options: ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former
Losses on Hedged Items Selling Securities $ 5,892 $— $(1) Inc. Holdings, Trust Buying Securities 5,892 — 2 Total — — $0
Note: Fair values are calculated according to the prices offered by information vendors, the option pricing model and other valuation techniques. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 147 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
29. Segment Information
CMTH Group applied ASBJ Statement N0.17 CMTB is principally engaged in the retail investment busi- “Accounting Standard for Segment Information ness (sales of investment trust, individual annuity insurance Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui Disclosures” (revised on March 27, 2009) and ASBJ and other products), lending related business (corporate Guidance No.20 “Guidance on Accounting Standard for loans, mortgage loans, real estate asset finance, etc.), real Segment Information Disclosures” from this fiscal year end. estate business, stock transfer agency business and other. CMAB is principally engaged in the asset management 1. Segment Information business of pension trusts and securities trusts, asset admin- (1) Outline of Reportable Segments istration business and pension fund administration business.
Financial Data/ A reportable segments for the Group is a component The asset management companies consist of CMAM and The Chuo Mitsui Trust and
Banking Company, Limited unit that constitutes a business for which discrete financial CMC. CMAM is principally engaged in investment trust information is available and is regularly reviewed by the management services and CMC is principally engaged in Board of Directors to determine the allocation of manage- private equity fund management services. ment resources and assess its performance. CMTH Group has established a management system (2) The method of calculation of ordinary income, profit or loss, which enables each group company to conduct its operat- assets, liabilities and other items by reportable segment Financial Data/ ing activities independently. CMTH Group separates its Accounting policies adopted by the reported operating Banking Company, Limited Chuo Mitsui Asset Trust and operations into the following companies: two trust banks, segments are same as those described in Note 2 CMTB and CMAB, and two asset management compa- “Summary of Significant Accounting Policies.” Profit for nies, CMAM and CMC. In addition, CMTH, the holding reportable segments is determined based on income company, aims to maximize CMTH Group profits by ensur- before income taxes and minority interests for this period. ing an appropriate allocation of management resources to In allocating income before income taxes and minority Trust Group each operating division. interests, the values of internal transactions are treated Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Accordingly, CMTH Group’s reportable segments are consistently as those held with external customers. distinguished at the company level. Thus, the following In Note 29, ordinary income represents total income companies are distinguished as three groups and defined less extraordinary income, and ordinary expenses repre- as reportable segments: sents total expenses less Extraordinary loss. Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
148 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(3) Information about ordinary income, profit or loss, assets, liabilities and other items by reportable segment Data/ Financial
Millions of Yen 2011 Reportable Segment Asset Other Total Adjustment Carrying CMTB CMAB Management Total Amount Subsidiaries akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Ordinary Income:
External Customers ¥ 282,539 ¥ 40,950 ¥ 10,447 ¥ 333,936 ¥ 17,040 ¥ 350,977 ¥—¥ 350,977 Data/ Financial Intersegment 6,043 2,554 93 8,691 40,478 49,169 (49,169) — Total 288,582 43,505 10,540 342,628 57,518 400,147 (49,169) 350,977 Segment Profit 68,412 11,163 532 80,108 21,395 101,503 (14,719) 86,783 Segment Assets 13,791,942 153,637 5,809 13,951,389 1,003,677 14,955,066 (723,995) 14,231,070 Segment Liabilities 13,055,323 111,747 1,605 13,168,676 58,925 13,227,601 159,338 13,386,939
Other Items and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Depreciation and Amortization ¥ 10,072 ¥ 1,397 ¥76¥ 11,546 ¥ 1,079 ¥ 12,626 ¥ (329) ¥ 12,296 iaca Data/ Financial Interest Income 158,103 125 66 158,295 19,626 177,921 (17,443) 160,477 Interest Expenses 59,636 109 — 59,746 211 59,958 (264) 59,694 Extraordinary Income 8,136 — — 8,136 1,107 9,243 (1,411) 7,832 (Recoveries of written-off claims) 5,819 — — 5,819 1,107 6,926 — 6,926 Extraordinary Loss 4,770 1,183 91 6,044 3,001 9,046 (3,292) 5,753 (Management integration expenses) 3,372 566 58 3,996 2,661 6,658 (3,260) 3,397 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former
Millions of Yen Group Trust 2010 Reportable Segment Asset Other Total Adjustment Carrying CMTB CMAB Management Total Amount Subsidiaries Ordinary Income: ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former External Customers ¥ 297,998 ¥ 41,193 ¥ 10,353 ¥ 349,545 ¥ 15,971 ¥ 365,516 ¥—¥ 365,516 Inc. Holdings, Trust Intersegment 8,261 2,894 (43) 11,112 30,395 41,508 (41,508) — Total 306,260 44,087 10,309 360,657 46,366 407,024 (41,508) 365,516 Segment Profit 74,647 13,093 407 88,148 10,569 98,717 (13,918) 84,798 Segment Assets 14,481,460 140,313 5,320 14,627,094 1,009,839 15,636,933 (658,966) 14,977,966 Segment Liabilities 13,749,429 97,566 1,482 13,848,478 61,218 13,909,696 221,713 14,131,410 Other Items akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Depreciation and Amortization ¥ 9,002 ¥ 1,273 ¥81¥ 10,357 ¥ 1,096 ¥ 11,453 ¥ (318) ¥ 11,135 Data/ Disclosure Quantitative II Basel Interest Income 180,444 198 6 180,649 12,503 193,153 (11,561) 181,592 Interest Expenses 68,881 151 — 69,033 191 69,224 (323) 68,901 Extraordinary Income 3,443 — — 3,443 821 4,265 (1,685) 2,579 (Recoveries of written-off claims) 1,444 — — 1,444 702 2,147 — 2,147 Extraordinary Loss 731 51 10 793 878 1,672 (475) 1,196 (Management integration expenses) 428 50 10 489 507 997 (471) 525 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 149 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars 2011 Reportable Segment Asset Other Total Adjustment Carrying Amount
Financial Data/ CMTB CMAB Management Total Subsidiaries Trust Holdings, Inc. Former Chuo Mitsui Ordinary Income: External Customers $ 3,397 $ 492 $ 125 $4,016$ 204 $ 4,221 $—$4,221 Intersegment 72 30 1 104 486 591 (591) — Total 3,470 523 126 4,120 691 4,812 (591) 4,221 Segment Profit 822 134 6 963 257 1,220 (177) 1,043 Segment Assets 165,868 1,847 69 167,785 12,070 179,856 (8,707) 171,149
Financial Data/ Segment Liabilities 157,009 1,343 19 158,372 708 159,081 1,916 160,997 Other Items The Chuo Mitsui Trust and Banking Company, Limited Depreciation and Amortization $ 121 $16$0$ 138 $12$ 151 $(3)$ 147 Interest Income 1,901 1 0 1,903 236 2,139 (209) 1,929 Interest Expenses 717 1 — 718 2 721 (3) 717 Extraordinary Income 97 — — 97 13 111 (16) 94 (Recoveries of written-off claims) 69 — — 69 13 83 — 83 Extraordinary Loss 57 14 1 72 36 108 (39) 69 Financial Data/ (Management integration expenses) 40 6 0 48 32 80 (39) 40 Banking Company, Limited Chuo Mitsui Asset Trust and Notes: 1. “Ordinary income” corresponds to “Net sales” of financial products and services. The adjustment shows the difference between ordinary income for management reporting purpose and for the purpose of preparing consolidated statements of income. 2. “Other” consists of consolidated subsidiaries other than trust banks and asset management companies as described above, and segments not included in reportable segments. 3. “Adjustment” includes the eliminations and adjustments required for internal transactions. In addition, adjustments of segment assets and segment liabilities include ¥267,368 million ($3,215 million) and ¥335,960 million for the fiscal year ended March 31, 2011 and 2010, respectively related to “Customers’ liabilities for acceptances and guarantees” and “Acceptance and guarantee” for mortgage loans. 4. Segment profit has been calculated in line with income before income taxes and minority interests as adjusted in the consolidated statement of income. Trust Group 2. Related Information Former Chuo Mitsui Basel II Qualitative Disclosure Data/ The fiscal year ended March 31, 2011 (1) Information by Service
Millions of Yen 2011 Corporate Consumer Pension/ Business Loans Market Securities Other Total
Trust Holdings, Inc. Ordinary Income from External Customers ¥ 61,451 ¥ 57,424 ¥ 62,128 ¥ 49,994 ¥ 119,977 ¥ 350,977 Former Chuo Mitsui Basel II Quantitative Disclosure Data/
Millions of U.S. Dollars 2011 Corporate Consumer Pension/ Business Loans Market Securities Other Total Ordinary Income from External Customers $ 739 $ 690 $ 747 $ 601 $ 1,442 $ 4,221
Note: “Ordinary income” corresponds to “Net Sales” of financial products and services. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
150 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Information by Geographical Region geographical region, since tangible fixed assets located in Data/ Financial 1) Ordinary Income Japan exceeds 90% of total tangible fixed assets of the CMTH Group omits ordinary income information by consolidated balance sheet as of March 31, 2011. geographical region, since ordinary income generated from transactions with domestic external customers (3) Information by Major Customer exceeds 90% of ordinary income of the consolidated CMTH Group omits major customer information, since akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The statement of income for this period. there is no particular customer who accounts for more iaca Data/ Financial 2) Tangible Fixed Assets than 10% of ordinary income of the consolidated state- CMTH Group omits tangible fixed asset information by ment of income for this period.
3. Information about Loss on Impairment of Fixed Assets by Reportable Segment
Millions of Yen hoMtu se rs and Trust Asset Mitsui Chuo 2011 Limited Company, Banking
Reportable Segment Data/ Financial Asset Other Eliminations/ Total CMTB CMAB Management Total Corporate Subsidiaries Loss on Impairment of Fixed Assets ¥ 522¥ 585 ¥30 ¥ 1,139 ¥— ¥ (30) ¥ 1,108
Millions of U.S. Dollars ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
2011 Mitsui Chuo Former
Reportable Segment Group Trust Asset Other Eliminations/ Total CMTB CMAB Management Total Corporate Subsidiaries Loss on Impairment of Fixed Assets $6$7 $0 $13$— $ (0)$13
4. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Millions of Yen Inc. Holdings, Trust 2011 Reportable Segment Asset Other Eliminations/ Total CMTB CMAB Management Total Corporate Subsidiaries Amortized in the Fiscal Year Ended March 31, 2011 ¥— ¥— ¥— ¥—¥— ¥ 2,270 ¥ 2,270 akn opn,Limited Company, Banking
Balance as of March 31, 2011 and Trust Mitsui Chuo The — — — — — 33,034 33,034 Data/ Disclosure Quantitative II Basel
Millions of U.S. Dollars 2011 Reportable Segment Asset Other Eliminations/ Total CMTB CMAB Management Total Corporate Subsidiaries
Amortized in the Fiscal Year Ended March 31, 2011 $— $— $— $—$— $27$27 Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Balance as of March 31, 2011 — — — — — 397 397
Note: Major details as follows: Amortized in the fiscal year ended March 31, 2011 CMAB ¥ 1,679 million ($ 20 million) Tokyo Securities Transfer Agent ¥ 499 million ($ 6 million) Balance as of March 31, 2011 CMAB ¥26,036 million ($313 million) Tokyo Securities Transfer Agent ¥6,997 million ($84 million)
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 151 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
5. Information about Gain on Negative Goodwill by Reportable Segment There is no information applicable to this disclosure.
The following segment information for the fiscal year ended March 31, 2010 was not applied the revised Accounting Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui Standard and Guidance, ASBJ Statement No.17 and Guidance No.20.
6. Business Segment Information
Millions of Yen 2010
Trust and Other Eliminations/ Banking Finance-related Total Corporate Consolidated Financial Data/ Business Operations
The Chuo Mitsui Trust and Ordinary Income: Banking Company, Limited External Customers ¥ 344,794 ¥ 20,721 ¥ 365,516 ¥—¥ 365,516 Intersegment 16,325 17,069 33,395 (33,395) — Total Ordinary Income 361,120 37,791 398,911 (33,395) 365,516 Ordinary Expenses 269,802 35,196 304,998 (22,898) 282,100 Ordinary Profit ¥ 91,317 ¥ 2,595 ¥ 93,912 ¥ (10,496) ¥ 83,415 Assets, Depreciation and Capital Expenditures: Financial Data/ Total Assets ¥ 14,912,355 ¥ 868,481 ¥ 15,780,836 ¥ (802,869) ¥ 14,977,966 Banking Company, Limited Chuo Mitsui Asset Trust and Depreciation 10,641 494 11,135 — 11,135 Capital Expenditures 12,247 501 12,749 — 12,749
Note: “Other finance-related operations” mainly consists of credit guarantee services, credit card services and Investment Trust Management services.
7. Geographical Segment Information
Trust Group Since domestic (Japan) total ordinary income and total assets by geographic segment for the fiscal years ended March
Former Chuo Mitsui 31, 2010, represented more than 90% of the consolidated total ordinary income and total assets, geographic segment Basel II Qualitative Disclosure Data/ information was not required to be disclosed.
8. Ordinary Income from International Operations
Millions of Yen, Except for Percentages 2010 Ordinary Income from International Operations (A) ¥ 57,363 Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Consolidated Ordinary Income (B) 365,516 (A)/(B) (%) 15.6%
Note: Ordinary income from international operations represents ordinary income arising from international operations both in and outside Japan.
30. Comprehensive Income
(1) Comprehensive income for the year ended March 31, 2010 was the following: Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Millions of Yen 2010 Comprehensive Income Attributable to: Owners of the Parent ¥ 165,760 Minority Interests 7,750 Total Comprehensive Income ¥ 173,510 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
152 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Other comprehensive income for the year ended March 31, 2010 consisted of the following: Data/ Financial
Millions of Yen 2010 Other Comprehensive Income: Valuation Difference on Available-for-sale Securities ¥ 118,361 Deferred Gains or Losses on Hedges 298 akn opn,Limited Company, Banking Foreign Currency Translation Adjustment 307 and Trust Mitsui Chuo The 43
Attributable to Equity Method Affiliates Data/ Financial Total Other Comprehensive Income ¥ 119,011
31. Per Share Information
Diluted net income per share for the fiscal year ended March 31, 2011 and 2010 are not stated as there were no potential hoMtu se rs and Trust Asset Mitsui Chuo dilutive securities. Basic net income per share (“EPS”) for the fiscal years ended March 31, 2011 and 2010 were as follows: Limited Company, Banking iaca Data/ Financial Thousands Millions of Yen of Shares Yen U.S. Dollars
Fiscal year ended Net Income Weighted-average EPS EPS March 31, 2011 Shares Basic EPS Net Income Available to
Common Shareholders ¥ 47,277 1,658,044 ¥ 28.51 $ 0.34 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former
Thousands Group Trust Millions of Yen of Shares Yen
Fiscal year ended Net Income Weighted-average EPS March 31, 2010 Shares Basic EPS Net Income Available to
Common Shareholders ¥ 46,826 1,490,670 ¥ 31.41 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 153 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
32. Subsequent Events
Share Exchange Mitsui Trust Holdings, Inc. be the acquired company, due CMTH has conducted a statutory share exchange which to shareholders of Sumitomo Trust and Banking Co., Ltd., Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui took effect on April 1, 2011 and changed its trade name to a wholly owned subsidiary, will have the largest percent- Sumitomo Mitsui Trust Holdings, Inc., following the conclu- age of voting rights of the integrated company. sion of the Share Exchange Agreement and Management Integration Agreement with The Sumitomo Trust and 2. Acquisition Cost of Acquired Company Banking Co., Ltd. on August 24, 2010, and the approval of ¥489,114 million ($ 5,882 million) the extraordinary general meetings of shareholders held on
Financial Data/ December 22, 2010. 3. Exchange Ratio by type of shares and methods of calcu- The Chuo Mitsui Trust and
Banking Company, Limited lating share exchange ratio and number of shares allotted 1. Outline of the Business Combination (1) Exchange Ratio by type of shares (1) Name and Business of Acquired Company 1) Common Shares Name of acquired company: Chuo Mitsui Trust 1.49 shares of common share in Sumitomo Mitsui Holdings, Inc. Trust Holdings, Inc. were allotted and delivered for each Business Activities: bank holding company share of common share in The Sumitomo Trust and Financial Data/ (2) Main Reason of the Business Combination Banking Co., Ltd. Banking Company, Limited Chuo Mitsui Asset Trust and Objectives of the Management Integration is to form 2) Preferred Shares “The Trust Bank,” a new trust bank group that, with a Each share of Sumitomo Mitsui Trust Holdings, Inc. combination of significant expertise and comprehensive Class VII preferred shares was allotted and delivered to capabilities, will provide better and swifter comprehensive each share of the First Series of The Sumitomo Trust solutions to their clients than ever before, by combining and Banking Co., Ltd. Class II Preferred Shares. Trust Group their personnel, know-how and other managerial Former Chuo Mitsui Basel II Qualitative Disclosure Data/ resources and fusing both groups’ strengths such as Chuo (2) Methods of Calculating Share Exchange Ratio Mitsui Trust Holdings group’s agility and The Sumitomo 1) Common Shares Trust and Banking group’s diversity. In order to support the respective efforts of Chuo (3) Date of Business Combination Mitsui Trust Holdings, Inc. and The Sumitomo Trust and April 1, 2011 Banking Co., Ltd. to ensure the fairness of the exchange (4) Legal form of Business Combination ratio of common shares (the “Common Share Exchange Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Statutory share exchange (Chuo Mitsui Trust Holdings, Ratio”), Chuo Mitsui Trust Holdings, Inc. has appointed Inc. as wholly owning parent company, Sumitomo Trust JPMorgan Securities Japan Co., Ltd. (“J.P. Morgan”) and and Banking Co., Ltd. as wholly owned subsidiary) Nomura Securities Co., Ltd. (“Nomura Securities”) as its (5) Name after Management Integration financial advisors, and The Sumitomo Trust and Banking Sumitomo Mitsui Trust Holdings, Inc. Co., Ltd. has appointed UBS Securities Japan Ltd (6) Voting Rights Acquired (“UBS”) and Daiwa Securities Capital Markets Co. Ltd. 100% (“Daiwa”) to perform financial analysis. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited (7) Reason for Determining Acquiring Company Chuo Mitsui Trust Holdings, Inc. and The Sumitomo By applying “Accounting Standard for Business Trust and Banking Co., Ltd., on several occasions, con- Combinations (ASBJ Statement No.21) and the Guidance ducted careful negotiations and discussions on the on Accounting Standard for Business Combinations and Common Share Exchange Ratio, comprehensively tak- Accounting Standard for Business Divestitures (ASBJ ing into account factors such as the financial position, Guidance No.10)” it is decided that Sumitomo Trust and assets and future prospects of each party, with Chuo Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/ Banking Co., Ltd. be the acquiring company and Chuo Mitsui Trust Holdings, Inc. making reference to the
154 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
financial analysis prepared by J.P. Morgan and Nomura 4. Amount of Gain on Negative Goodwill and Reason for Data/ Financial Securities, and The Sumitomo Trust and Banking Co., Recognizing Negative Goodwill Ltd. to the financial analysis prepared by UBS and (1) Amount of Gain on Negative Goodwill Daiwa. As a result of such negotiations and discussions, ¥43,431 million ($ 522 million) Chuo Mitsui Trust Holdings, Inc. and The Sumitomo Trust and Banking Co., Ltd. concluded that the (2) Reason for Recognizing Negative Goodwill akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Common Share Exchange Ratio set out above is appro- STB accounted for the difference between the acquisi- iaca Data/ Financial priate and agreed on it. tion cost and the equivalent amount of STB, in net of 2) Preferred Shares assets and liabilities acquired, as negative goodwill. Chuo Mitsui Trust Holdings, Inc. and The Sumitomo Trust and Banking Co., Ltd. have agreed that the terms 5. Amounts of Assets and Liabilities Acquired on Date of and conditions of the First Series of Sumitomo Mitsui Business Combination hoMtu se rs and Trust Asset Mitsui Chuo Trust Holdings, Inc. Class VII Preferred Shares shall be (1) Assets Limited Company, Banking
substantially the same as those of the First Series of The Total Assets ¥ 14,158,131 million Data/ Financial Sumitomo Trust and Banking Co., Ltd. Class II Preferred ($ 170,272 million) Shares, and that exchange ratio for preferred shares Loans and Bills Discounted ¥ 8,855,145 million stated above is appropriate, since no market price ($ 106,496 million) exists for the First Series of The Sumitomo Trust and (2) Liabilities
Banking Co., Ltd. Class II Preferred Shares and such The Total Liabilities ¥ 13,437,699 million Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Sumitomo Trust and Banking Co., Ltd. Preferred Shares ($ 161,607 million) rs Group Trust are so-called “bond-type.” Deposits excluding NCD ¥ 9,326,751 million ($ 112,167 million) (3) Number of Delivered Shares The figures described above “4. Amount of Gain on 1) Common Shares Negative Goodwill and Reason for Recognizing Negative 2,495,060,141 Goodwill” and “5. Amounts of Assets and Liabilities ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former 2) Preferred Shares Acquired on Date of Business Combination” are the Inc. Holdings, Trust 109,000,000 expected amounts based on available information as of the filing date of financial statement.
Cash Dividends The following appropriation of retained earnings of CMTH as of March 31, 2011, was approved at the general meeting akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The of shareholders held on June 30, 2011: Data/ Disclosure Quantitative II Basel
Millions of Millions of Yen U.S. Dollars Fiscal Year-end Dividends: Common Stock, ¥4.00 ($0.04) per Share ¥ 6,632 $79 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 155 Financial Data: Independent Auditors’ Report Trust Group Financial Summary/ Former Chuo Mitsui Financial Data/ Trust Holdings, Inc. Former Chuo Mitsui Financial Data/ The Chuo Mitsui Trust and Banking Company, Limited Financial Data/ Banking Company, Limited Chuo Mitsui Asset Trust and Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
156 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Non-consolidated Balance Sheets (Supplemental Information–Unaudited) Group Trust Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) As of March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars 2011 2010 2011 Assets Current Assets: Cash and Due from Banks ¥ 1,462 ¥ 1,922 $ 17 Securities 23,000 35,000 276 Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Deferred Tax Assets — 267 — Accrued Income 0 1 0 Data/ Financial Income Tax Refunds Receivable 3,438 2,024 41 Other Current Assets 868 48 10 Total Current Assets 28,769 39,263 345 Non-current Assets: Tangible Fixed Assets 1 1 0 hoMtu se rs and Trust Asset Mitsui Chuo Intangible Fixed Assets 7 4 0 Limited Company, Banking Investments and Other Assets: 765,879
765,419 9,205 Data/ Financial Investment Securities 652 652 7 Investments in Subsidiaries and Affiliates (Stocks) 764,391 764,406 9,192 Deferred Tax Assets — 459 — Other Investments 376 361 4 Total Non-current Assets 765,428 765,885 9,205 Total Assets ¥ 794,198 ¥ 805,149 $ 9,551 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former
Liabilities and Equity Group Trust Liabilities: Current Liabilities: Accrued Expenses ¥ 1,365 ¥ 1,379 $16 Income Taxes Payable 2 40 0 Provision for Bonuses 90 80 1
Other Current Liabilities 296 168 3 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Total Current Liabilities 1,755 1,668 21 Non-current Liabilities: Bonds Payable 189,700 189,700 2,281 Provision for Retirement Benefits 1,177 1,041 14 Provision for Directors’ Retirement Benefits — 363 — Other Non-current Liabilities 195 — 2 Total Non-current Liabilities 191,072 191,105 2,297 Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Total Liabilities ¥ 192,827 ¥ 192,774 $ 2,319
Equity: Capital Stock ¥ 261,608 ¥ 261,608 $ 3,146 Capital Surplus 118,665 118,668 1,427 Retained Earnings 221,379 232,368 2,662 Treasury Stock-at Cost ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo 411,673 Shares in 2011 and 366,149 Shares in 2010 (282) (270) (3) Limited Company, Banking Total Equity ¥ 601,370 ¥ 612,375 $ 7,232 Total Liabilities and Equity ¥ 794,198 ¥ 805,149 $ 9,551
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 157 Financial Data: Non-consolidated Statements of Income (Supplemental Information–Unaudited) Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) Fiscal years ended March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Operating Income:
Financial Data/ Dividends Received from Subsidiaries ¥ 17,112 ¥ 10,043 $ 205 Trust Holdings, Inc. Former Chuo Mitsui Fees and Commissions Received from Subsidiaries 5,652 3,607 67 Total Operating Income 22,764 13,651 273
Operating Expenses: Interest on Bonds Payable 7,487 7,674 90 General and Administrative Expenses 2,911 2,871 35 Total Operating Expenses 10,398 10,545 125 Financial Data/ Operating Profit 12,366 3,106 148 The Chuo Mitsui Trust and
Banking Company, Limited Non-operating Income Interest Income 0 0 0 Interest on Securities 19 47 0 Commission Fee 0 0 0 Interest on Refund of Income Taxes and Other 6 10 0 Other Non-operating Income 36 7 0
Financial Data/ Total Non-operating Income 64 66 0 Non-operating Expenses Banking Company, Limited Chuo Mitsui Asset Trust and Commission Fee 128 376 1 Management Integration Expenses 2,661 507 32 Other Non-operating Expenses 3 4 0 Total non-operating expenses 2,792 889 33 Income before Income Taxes 9,638 2,283 115 Income Taxes: Trust Group Income Taxes-current 3 3 0 Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Income Taxes-deferred 727 (585) 8 Total Income Taxes 731 (582) 8 Net Income ¥ 8,906 ¥ 2,865 $ 107
Yen U.S. Dollars Net Income per Share of Common Stock ¥ 5.37 ¥ 1.92 $ 0.06 Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
158 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Financial Statements of Subsidiary Banks (Trust Account–Unaudited) Group Trust Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) As of March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars 2011 2010 2011 Assets: Loans (Note 2) ¥ 231,858 ¥ 254,912 $ 2,788 Securities (Note 3) 80,477 82,610 967 Beneficiary Rights 30,598,538 29,356,150 367,992 Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Securities Held in Custody Accounts 120 123 1 Monetary Claims 1,417,076 1,528,858 17,042 Data/ Financial Tangible Fixed Assets 5,029,793 5,334,660 60,490 Intangible Fixed Assets 31,047 26,982 373 Other Claims 37,047 37,588 445 Due from Banking Account 801,657 995,612 9,641 Cash and Due from Banks 204,436 217,640 2,458 hoMtu se rs and Trust Asset Mitsui Chuo Total Assets ¥ 38,432,054 ¥ 37,835,141 $ 462,201 Limited Company, Banking iaca Data/ Financial Liabilities: Money Trusts (Note 4) ¥ 9,082,635 ¥ 9,453,157 $ 109,231 Pension Trusts 6,995,575 6,749,433 84,132 Property Formation Benefit Trusts 13,339 13,657 160 Loan Trusts (Note 5) 228,260 358,777 2,745 Securities Investment Trusts 12,494,552 11,222,499 150,265 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Money in Trust Other than Money Trusts 339,469 343,023 4,082 Mitsui Chuo Former
Securities in Trust 1,385,581 1,369,355 16,663 Group Trust Money Claims in Trust 1,435,954 1,548,503 17,269 Real Estate in Trust 76,231 75,951 916 Composite Trusts 6,380,413 6,700,739 76,733 Other Trusts 40 42 0 Total Liabilities ¥ 38,432,054 ¥ 37,835,141 $ 462,201 ae IQatttv icoueData/ Disclosure Quantitative II Basel
See Notes to Financial Statements of Subsidiary Banks (Trust Account–Unaudited). Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 159 Financial Data: Notes to Financial Statements of Subsidiary Banks (Trust Account–Unaudited) Sumitomo Mitsui Trust Holdings, Inc. (Former Chuo Mitsui Trust Holdings, Inc.) Fiscal years ended March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
1. Trust Accounts
Under the Trust Law of Japan, trust activities must be 2011 and 2010, was ¥1,109,914 million ($13,348 million) administered separately from a commercial banking busi- and ¥1,381,852 million, respectively. Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui ness. As a result, assets accepted in trust must be segre- The translations of Japanese yen amounts into U.S. dol- gated from other assets. Within the general category of lar amounts are included solely for the convenience of trust accounts, each trust account is segregated from readers outside Japan and have been made at the rate of other trust assets. Accordingly, the financial statements of ¥83.15 to U.S.$1, the approximate rate of exchange as of CMTH, do not reflect CMTH’s records as to the assets March 31, 2011. Such translations should not be construed accepted in trust, which are maintained separately under as representations that the Japanese yen amounts could
Financial Data/ the trust account. be converted into U.S. dollars at that or any other rate. The Chuo Mitsui Trust and
Banking Company, Limited Under certain trust agreements, repayments of the prin- Amounts less than one million Japanese yen and one cipal of the customers’ trust assets are guaranteed by million U.S. dollars have been truncated. As a result, the CMTB, and such guaranteed principal as of March 31, total may not be equal to the total of individual amounts.
2. Loans Financial Data/ Loans as of March 31, 2011 and 2010, consisted of the following: Banking Company, Limited Chuo Mitsui Asset Trust and
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Loans on Deeds ¥ 216,478 ¥ 230,794 $ 2,603 Loans on Notes 15,379 24,118 184 Total ¥ 231,858 ¥ 254,912 $ 2,788 Trust Group Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Under certain trust agreements, repayments of the principal of the customers’ trust assets are guaranteed by banking subsidiaries, and loans on such guaranteed trust assets as of March 31, 2011 and 2010, included the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Loans to Borrowers in Bankruptcy ¥ 13 ¥— $0 Non-accrual Loans 153 172 1 Trust Holdings, Inc. Former Chuo Mitsui Loans Past Due Three Months or More Basel II Quantitative Disclosure Data/ — — — Restructured Loans 7,844 8,926 94 Total ¥ 8,011 ¥ 9,099 $ 96
3. Securities
Securities are stated at market price or at cost by each trust agreement. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and
Banking Company, Limited Securities held as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Japanese Government Bonds ¥ 79,945 ¥ 81,954 $ 961 Japanese Stocks 482 488 5 Other Securities 49 167 0 Total ¥ 80,477 ¥ 82,610 $ 967 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
160 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Financial Statements of Subsidiary Banks (Trust Account–Unaudited) omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
4. Balance of Money Trusts Data/ Financial
The principal amounts of certain money trusts are guaranteed and the balance of these accounts is as follows:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Assets: and Trust Mitsui Chuo The Loans ¥ 242,262 ¥ 222,715 $ 2,678 Data/ Financial Other 660,770 782,525 7,946 Total ¥ 883,485 ¥ 1,024,787 $ 10,625
Liabilities: Principal ¥ 883,457 ¥ 1,024,773 $ 10,624 Allowance for the Impairment of Guaranteed Trust Principal 33 43 0 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Other (5) (29) (0) Total ¥ 883,485 ¥ 1,024,787 $ 10,625 Data/ Financial
In the case of certain money trusts, the principal amount is guaranteed and, as the above table indicates, allowance for the impairment of guaranteed trust principal is set aside by banking subsidiaries. The figures of the table include funds reinvested from the other trusts managed by a banking subsidiary. ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former
5. Balance of Loan Trusts Group Trust
The balance of loan trusts is as follows (the figures of the table include funds reinvested from the other trusts managed by a banking subsidiary):
Millions of Millions of Yen U.S. Dollars ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former
2011 2010 2011 Inc. Holdings, Trust Assets: Loans ¥—¥—$— Securities 482 488 5 Other 229,125 361,317 2,755 Total ¥ 229,607 ¥ 361,806 $ 2,761 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Liabilities: Data/ Disclosure Quantitative II Basel Principal ¥ 226,456 ¥ 357,078 $ 2,723 Allowance for the Impairment of Guaranteed Trust Principal 1,377 2,129 16 Other 1,774 2,598 21 Total ¥ 229,607 ¥ 361,806 $ 2,761
As in certain money trusts, the principal amount of loan trusts is guaranteed and, as the above table indicates, ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo allowance for the impairment of guaranteed trust principal is set aside by banking subsidiaries. Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 161 Financial Data: Consolidated Balance Sheets The Chuo Mitsui Trust and Banking Company, Limited, and Consolidated Subsidiaries As of March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Assets Financial Data/ Cash and Cash Equivalents (Note 27) ¥ 438,270 ¥ 225,570 $ 5,270 Trust Holdings, Inc. Former Chuo Mitsui Due from Banks Other than Due from the Bank of Japan (Note 27) 36,872 24,286 443 Call Loans and Bills Bought (Note 27) 6,936 9,884 83 Receivables under Securities Borrowing Transactions (Note 27) 9,378 1,521 112 Monetary Claims Bought (Note 27) 99,921 98,818 1,201 Trading Assets (Notes 27 and 28) 36,568 22,778 439 Money Held in Trust (Note 27) 2,065 2,234 24 Securities (Notes 4, 10 and 27) 3,598,866 4,414,926 43,281
Financial Data/ Loans and Bills Discounted (Notes 5, 10 and 27) 8,864,266 8,941,948 106,605 Foreign Exchanges (Note 6) 12,259 767 147 The Chuo Mitsui Trust and Banking Company, Limited Other Assets (Notes 7, 10, 27 and 28) 361,127 412,807 4,343 Tangible Fixed Assets (Note 8) 123,094 125,162 1,480 Intangible Fixed Assets (Note 9) 27,252 27,361 327 Deferred Tax Assets (Note 25) 140,785 147,841 1,693 Customers’ Liabilities for Acceptances and Guarantees (Note 11) 317,098 384,117 3,813 Allowance for Loan Losses (47,652) (53,370) (573) Total Assets ¥ 14,027,112 ¥ 14,786,655 $ 168,696 Financial Data/ Banking Company, Limited Chuo Mitsui Asset Trust and Liabilities and Equity Liabilities: Deposits (Notes 10, 12 and 27) ¥ 9,647,696 ¥ 9,127,480 $ 116,027 Call Money and Bills Sold (Note 27) 248,956 217,161 2,994 Payables under Securities Lending Transactions (Notes 10 and 27) 1,161,653 1,702,697 13,970 Trading Liabilities (Notes 27 and 28) 7,716 7,911 92 Borrowed Money (Notes 10, 13 and 27) 678,983 1,217,246 8,165
Trust Group Foreign Exchanges (Note 6) — 21 —
Former Chuo Mitsui Bonds Payable (Notes 14 and 27) 267,247 234,750 3,214 Basel II Qualitative Disclosure Data/ Due to Trust Accounts (Note 27) 801,657 995,612 9,641 Other Liabilities (Notes 15, 27 and 28) 148,731 163,570 1,788 Provision for Bonuses 2,587 2,643 31 Provision for Retirement Benefits (Note 16) 1,663 1,592 20 Provision for Directors’ Retirements Benefits 253 1,115 3 Provision for Contingent Losses (Note 17) 15,335 12,022 184 Deferred Tax Liabilities (Note 25) 3,966 5,345 47 Acceptances and Guarantees (Note 11) 317,098 384,117 3,813 Trust Holdings, Inc. Former Chuo Mitsui Total Liabilities ¥ 14,073,289 Basel II Quantitative Disclosure Data/ ¥ 13,303,547 $ 159,994
Commitments and Contingent Liabilities (Note 18)
Equity (Note 19): Capital Stock (Note 20) ¥ 399,697 ¥ 399,697 $ 4,806 Capital Surplus 149,011 149,011 1,792 Retained Earnings 183,738 142,334 2,209 Accumulated Other Comprehensive Income Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Valuation Difference on Available-for-sale Securities 4,400 34,968 52 Deferred Gains or Losses on Hedges 2,140 1,891 25 Revaluation Reserve for Land (Note 8) (16,537) (15,532) (198) Foreign Currency Translation Adjustment (2,129) (1,738) (25) Total 720,322 710,632 8,662 Minority Interests 3,242 2,733 38 Total Equity ¥ 723,564 ¥ 713,366 $ 8,701 Total Liabilities and Equity ¥ 14,027,112 ¥ 14,786,655 $ 168,696 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/ See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.
162 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Consolidated Statements of Income Group Trust The Chuo Mitsui Trust and Banking Company, Limited, and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Income: Interest Income: Interest on Loans and Discounts ¥ 106,584 ¥ 122,029 $ 1,281 akn opn,Limited Company, Banking Interest and Dividends on Securities 48,494 55,379 583 and Trust Mitsui Chuo The 181
Interest on Call Loans and Bills Bought 367 4 Data/ Financial Other Interest Income (Note 21) 4,901 3,798 58 Trust Fees (Note 22) 11,402 15,713 137 Fees and Commissions 72,309 70,922 869 Trading Income 3,943 2,592 47 Other Ordinary Income (Note 23) 36,224 27,505 435 Other Income (Note 24) 29,956 25,852 360 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Total Income ¥ 314,184 ¥ 323,975 $ 3,778 iaca Data/ Financial
Expenses: Interest Expenses: Interest on Deposits ¥ 41,339 ¥ 46,444 $ 497 Interest on Call Money and Bills Sold 427 575 5 Interest on Borrowings 2,675 3,837 32
Other Interest Expenses (Note 21) 15,163 17,943 182 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Fees and Commissions Payments 10,540 11,677 126 rs Group Trust Trading Expenses 441 — 5 Other Ordinary Expenses (Note 23) 9,228 8,318 110 General and Administrative Expenses 117,777 126,184 1,416 Other Expenses (Note 24) 40,044 36,123 481 Total Expenses ¥ 237,639 ¥ 251,105 $ 2,857 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Income before Income Taxes and Minority Interests ¥ 76,544 ¥ 72,869 $ 920 Inc. Holdings, Trust
Income Taxes (Note 25): Income Taxes-current 909 1,618 10 Income Taxes-deferred 25,649 23,668 308 Total Income Taxes 26,559 25,287 319 Income before Minority Interests 49,985 — 601 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Minority Interests in Income 85 54 1 Data/ Disclosure Quantitative II Basel Net Income ¥ 49,900 ¥ 47,527 $ 600
U.S. Dollars Yen (Note 1) 2011 2010 2011 Per Share of Common Stock (Note 31): Basic Net Income ¥ 19.22 ¥ 20.73 $ 0.23 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 163 Financial Data: Consolidated Statement of Comprehensive Income The Chuo Mitsui Trust and Banking Company, Limited, and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Income before Minority Interests ¥ 49,985 ¥— $ 601 Financial Data/ Other Comprehensive Income Trust Holdings, Inc. Former Chuo Mitsui Valuation Difference on Available-for-sale Securities (30,144) — (362) Deferred Gains or Losses on Hedges 249 — 2 Foreign Currency Translation Adjustment (390) — (4) Total Other Comprehensive Income ¥ (30,286) ¥— $ (364) Comprehensive Income Comprehensive Income Attributable to Owners of the Parent 19,190 — 230
Financial Data/ Comprehensive Income Attributable to Minority Interests 508 — 6 Comprehensive Income ¥ 19,699 ¥— $ 236 The Chuo Mitsui Trust and Banking Company, Limited Financial Data/ Banking Company, Limited Chuo Mitsui Asset Trust and Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
164 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Consolidated Statements of Changes in Equity Group Trust The Chuo Mitsui Trust and Banking Company, Limited, and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Capital Stock Balance at the End of the Previous Period ¥ 399,697 ¥ 399,697 $ 4,806 Changes of Items during the Period akn opn,Limited Company, Banking Total Changes of Items during the Period ¥—¥— $— and Trust Mitsui Chuo The ¥ 399,697
Balance at the End of the Current Period ¥ 399,697 $ 4,806 Data/ Financial Capital Surplus Balance at the End of the Previous Period ¥ 149,011 ¥ 149,011 $ 1,792 Changes of Items during the Period Total Changes of Items during the Period ¥—¥— $— Balance at the End of the Current Period ¥ 149,011 ¥ 149,011 $ 1,792 Retained Earnings hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Balance at the End of the Previous Period ¥ 142,334 ¥ 94,807 $ 1,711 Changes of Items during the Period Data/ Financial Cash Dividends (9,501) — (114) Net Income 49,900 47,527 600 Reversal of Revaluation Reserve for Land 1,004 — 12 Total Changes of Items during the Period ¥ 41,404 ¥ 47,527 $ 497 Balance at the End of the Current Period ¥ 183,738 ¥ 142,334 $ 2,209
Accumulated Other Comprehensive Income Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Valuation Difference on Available-for-sale Securities ¥ 34,968 ¥ (83,321) $ 420 rs Group Trust Balance at the End of the Previous Period Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity (30,567) 118,289 (367) Total Changes of Items during the Period ¥ (30,567) ¥ 118,289 $ (367) Balance at the End of the Current Period ¥ 4,400 ¥ 34,968 $ 52 Deferred Gains or Losses on Hedges ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Balance at the End of the Previous Period ¥ 1,891 ¥ 1,757 $ 22 Inc. Holdings, Trust Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity 249 134 2 Total Changes of Items during the Period ¥ 249 ¥ 134 $2 Balance at the End of the Current Period ¥ 2,140 ¥ 1,891 $ 25 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 165 Financial Data: Consolidated Statements of Changes in Equity Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Revaluation Reserve for Land Financial Data/ Balance at the End of the Previous Period ¥ (15,532) ¥ (15,532) $ (186) Trust Holdings, Inc. Former Chuo Mitsui Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity (1,004) — (12) Total Changes of Items during the Period ¥ (1,004) ¥— $ (12) Balance at the End of the Current Period ¥ (16,537) ¥ (15,532) $ (198) Foreign Currency Translation Adjustment Balance at the End of the Previous Period ¥ (1,738) ¥ (2,045) $ (20)
Financial Data/ Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity (390) 307 (4) The Chuo Mitsui Trust and Banking Company, Limited Total Changes of Items during the Period ¥ (390) ¥ 307 $(4) Balance at the End of the Current Period ¥ (2,129) ¥ (1,738) $ (25) Minority Interests Balance at the End of the Previous Period ¥ 2,733 ¥ 2,449 $ 32 Changes of Items during the Period Net Changes of Items Other than Shareholders’ Equity 508 283 6 Financial Data/ Total Changes of Items during the Period ¥ 508 ¥ 283 $6 Banking Company, Limited Chuo Mitsui Asset Trust and Balance at the End of the Current Period ¥ 3,242 ¥ 2,733 $ 38 Total Equity Balance at the End of the Previous Period ¥ 713,366 ¥ 546,824 $ 8,579 Changes of Items during the Period Cash Dividends (9,501) — (114) Net Income 49,900 47,527 600
Trust Group Reversal of Revaluation Reserve for Land 1,004 — 12
Former Chuo Mitsui Net Changes of Items Other than Shareholders’ Equity (31,206) 119,014 (375) Basel II Qualitative Disclosure Data/ Total Changes of Items during the Period ¥ 10,197 ¥ 166,542 $ 122 Balance at the End of the Current Period ¥ 723,564 ¥ 713,366 $ 8,701
See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements. Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
166 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Consolidated Statements of Cash Flows Group Trust The Chuo Mitsui Trust and Banking Company, Limited, and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Cash Flows from Operating Activities: Income before Income Taxes and Minority Interests ¥ 76,544 ¥ 72,869 $ 920 Depreciation and Amortization 10,823 9,789 130 akn opn,Limited Company, Banking Loss on Impairment of Fixed Assets 522 41 6 and Trust Mitsui Chuo The 705
Amortization of Goodwill 558 6 Data/ Financial Equity in Losses (Earnings) of Affiliates (220) 895 (2) Increase (Decrease) in Allowance for Loan Losses (5,717) (8,108) (68) Increase (Decrease) in Provision for Bonuses (56) 71 (0) Increase (Decrease) in Provision for Retirement Benefits 71 58 0 Increase (Decrease) in Provision for Directors’ Retirement Benefits (861) 45 (10) Increase (Decrease) in Provision for Contingent Losses 3,313 (206) 39 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Interest Income (160,348) (181,389) (1,928) Interest Expenses 59,606 68,800 716 Data/ Financial Losses (Gains) on Securities (29,432) (18,951) (353) Losses (Gains) on Money Held in Trust (115) (144) (1) Foreign Exchange Losses (Gains) 50,355 34,951 605 Losses (Gains) on Disposal of Tangible Fixed Assets 604 265 7 Net Decrease (Increase) in Trading Assets (13,790) 15,471 (165)
Net Increase (Decrease) in Trading Liabilities (195) (956) (2) Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Net Decrease (Increase) in Loans and Bills Discounted 77,682 (357,653) 934 rs Group Trust Net Increase (Decrease) in Deposits 520,216 (362,718) 6,256 Net Increase (Decrease) in Borrowed Money (Excluding subordinated borrowings) (538,263) (475,319) (6,473) Net Decrease (Increase) in Due from Banks (Excluding due from the bank of Japan) (12,585) (8,739) (151) Net Decrease (Increase) in Call Loans and Bills Bought 1,890 10,127 22 Net Decrease (Increase) in Receivables under Securities Borrowing Transactions (7,857) 7,291 (94) Net Increase (Decrease) in Call Money and Bills Sold 31,795 56,683 382 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Net Increase (Decrease) in Payables under Securities Lending Transactions (541,044) 447,049 (6,506) Inc. Holdings, Trust Net Decrease (Increase) in Foreign Exchange-assets (11,492) 35 (138) Net Increase (Decrease) in Foreign Exchange-liabilities (21) (20) (0) Net Increase (Decrease) in Due to Trust Accounts (193,955) 115,695 (2,332) Interest Income (Cash basis) 168,843 187,874 2,030 Interest Expenses (Cash basis) (52,534) (66,086) (631) Other Net 14,278 607 171 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Subtotal (551,385) (450,963) (6,631) Data/ Disclosure Quantitative II Basel Income Taxes Paid (1,663) 853 (20) Net Cash Provided by (Used in) Operating Activities ¥ (553,049) ¥ (450,109) $ (6,651) ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 167 Financial Data: Consolidated Statements of Cash Flows Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars (Note 1) 2011 2010 2011 Cash Flows from Investing Activities: Financial Data/ Purchases of Securities ¥ (7,339,120) ¥ (6,441,189) $ (88,263) Trust Holdings, Inc. Former Chuo Mitsui Proceeds from Sales of Securities 7,828,187 6,650,948 94,145 Proceeds from Redemption of Securities 256,737 207,843 3,087 Increase in Money Held in Trust — (2,500) — Decrease in Money Held in Trust 109 2,637 1 Purchases of Tangible Fixed Assets (5,622) (3,142) (67) Proceeds from Sales of Tangible Fixed Assets 1,438 351 17
Financial Data/ Purchases of Intangible Fixed Assets (6,089) (7,271) (73) Proceeds from Sales of Intangible fixed Assets 0 567 0 The Chuo Mitsui Trust and Banking Company, Limited Net Cash Provided by (Used in) Investing Activities ¥ 735,639 ¥ 408,245 $ 8,847
Cash Flows from Financing Activities: Increase in Subordinated Borrowings ¥ 5,000 ¥ 65,000 $ 60 Decrease in Subordinated Borrowings (5,000) (65,000) (60) Proceeds from Issuance of Subordinated Bonds 40,000 103,000 481 Financial Data/ Payments for Redemption of Subordinated Bonds — (37,274) — Banking Company, Limited Chuo Mitsui Asset Trust and Dividends Paid (9,501) — (114) Net Cash Provided by (Used in) Financing Activities ¥ 30,498 ¥ 65,725 $ 366
Effect of Exchange Rate Changes on Cash and Cash Equivalents ¥ (388) ¥ 302 $(4) Net Increase (Decrease) in Cash and Cash Equivalents ¥ 212,700 ¥ 24,163 $ 2,558 Cash and Cash Equivalents at the Beginning of the Period ¥ 225,570 ¥ 201,406 $ 2,712
Trust Group Cash and Cash Equivalents at the End of the Period ¥ 438,270 ¥ 225,570 $ 5,270 Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements. Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
168 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Notes to Consolidated Financial Statements Group Trust The Chuo Mitsui Trust and Banking Company, Limited, and Consolidated Subsidiaries Fiscal years ended March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
1. Basis of Presentation for the convenience of readers outside Japan and have Data/ Financial been made at the rate of ¥83.15 to U.S.$1, the approxi- The accompanying consolidated financial statements mate rate of exchange as of March 31, 2011. Such transla- (banking account) have been prepared from the accounts tions should not be construed as representations that the maintained by The Chuo Mitsui Trust and Banking Japanese yen amounts could be converted into U.S. dol- Company, Limited “CMTB,” and its consolidated sub- lars at that or any other rate. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The sidiaries (together, the “CMTB Group”) under the umbrella Amounts less than one million Japanese yen and one iaca Data/ Financial of Sumitomo Mitsui Trust Holdings, Inc. (former Chuo million U.S. dollars have been truncated, except for per Mitsui Trust Holdings, Inc. “CMTH”) in accordance with share information. As a result, the total may not be equal accounting principles generally accepted in Japan to the total of individual amounts. “Japanese GAAP,” and certain accounting and disclosure rules under the Financial Instruments and Exchange Act of 2. Summary of Significant Accounting Policies hoMtu se rs and Trust Asset Mitsui Chuo Japan and the Banking Law of Japan, which are different in Limited Company, Banking certain respects as to application and disclosure require- 1. Scope of Consolidation Data/ Financial ments of International Financial Reporting Standards. The consolidated financial statements include the Under Japanese GAAP, a consolidated statement of amounts of CMTB and its significant subsidiaries. The income and comprehensive income is required from the number of consolidated subsidiaries as of March 31, 2011 fiscal year ended March 31, 2011 and has been presented and 2010 was 15.
herein. Accordingly, accumulated other comprehensive Under the control or influence concept, those companies Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former income is presented in the consolidated balance sheet in which CMTB, directly or indirectly, is able to exercise con- rs Group Trust and the consolidated statement of changes in equity. trol over operations are fully consolidated, and those com- Information with respect to other comprehensive income panies over which CMTB has the ability to exercise for the year ended March 31, 2010 is disclosed in Note 30. significant influence are accounted for by the equity In addition, “income before minority interests” is dis- method, unless in either case the companies are immaterial. closed in the consolidated statement of income from the The number of affiliates accounted for by the equity ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former fiscal year ended March 31, 2011. method was two in 2011 and three in 2010. Japan Trustee Inc. Holdings, Trust In preparing these consolidated financial statements, Information System, Ltd. was excluded from affiliates account- certain reclassifications and rearrangements have been ed for by the equity method due to selling shares in 2011. made to CMTB’s consolidated financial statements issued Investments in unconsolidated subsidiaries are stated at domestically in order to present them in a form that is cost. If the equity method of accounting had been applied more familiar to readers outside Japan. In addition, certain to the investments in these subsidiaries, the effect on the akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The reclassifications and rearrangements have been made in accompanying consolidated financial statements would Data/ Disclosure Quantitative II Basel the consolidated financial statements for the fiscal years not be material. ended March 31, 2010 to conform to classifications and Any differences between the cost of an acquired sub- presentations used in the consolidated financial state- sidiary or associated company and the fair value of its net ments for the fiscal year ended March 31, 2011. assets at the date of the acquisition are amortized over a The consolidated financial statements are stated in period within 20 years, or charged to expense as incurred
Japanese yen, the currency of the country in which CMTB if such differences are considered to be immaterial. Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking is incorporated and operates. The translations of Japanese All significant intercompany transactions, balances and yen amounts into U.S. dollar amounts are included solely unrealized profits have been eliminated in consolidation.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 169 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
2. Business Combination 4. Mark-to-Market Accounting for Trading Purpose On December 26, 2008, the Accounting Standards Transactions Board of Japan (the “ASBJ”) issued a revised accounting Transactions for trading purposes (that is, transactions standard for business combinations, ASBJ Statement which seek to capture gains arising from short-term Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui No.21, “Accounting Standard for Business Combinations.” changes in interest rates, currency exchange rates or mar- Major accounting changed under the revised accounting ket prices of securities and other market-related indices or standard are as follows; from gaps among markets) are included in trading assets (1) The current accounting standard for business combina- and trading liabilities on a trade date basis. Trading securi- tions allows companies to apply the pooling of interests ties and monetary claims bought for trading purposes method of accounting when certain specific criteria are recorded in these accounts are stated at market value and
Financial Data/ met such that the business combination is essentially trading-related financial derivatives are at the amounts The Chuo Mitsui Trust and
Banking Company, Limited regarded as a uniting-of-interests. The revised standard that would be settled if they were terminated at the end of requires accounting for such business combinations by the the fiscal year. purchase method and the pooling of interests method of Unrealized gains and losses on trading purpose trans- accounting is no longer allowed. actions are recognized in the consolidated statements (2) The current accounting standard requires that research of income. and development costs be charged to expense as Financial Data/ incurred. Under the revised standard, in-process research Banking Company, Limited 5. Translation of Foreign Currency Accounts Chuo Mitsui Asset Trust and and development (IPR&D) acquired in a business combi- CMTB maintains its accounting records in Japanese nation is capitalized as an intangible asset. yen. Assets and liabilities denominated in foreign curren- (3) The current accounting standard requires that a bargain cies are translated into Japanese yen using the exchange purchase gain (negative goodwill ) be systematically amor- rate prevailing at each balance sheet date. tized within 20 years. Under the revised standard, the The balance sheet accounts of the consolidated foreign Trust Group acquirer recognized a bargain purchase gain in profit or subsidiaries are translated into Japanese yen at the cur- Former Chuo Mitsui Basel II Qualitative Disclosure Data/ loss on the acquisition date after reassessing whether it has rent exchange rate as of each balance sheet date except correctly identified all of the assets acquired and all of the for equity, which is translated at the historical rate. liabilities assumed with a review of such procedures used. Differences arising from such translation are shown as This standard is applicable to business combinations “Foreign currency translation adjustment” under accumu- undertaken on or after April 1, 2010, with early adoption lated other comprehensive income in a separate compo- permitted for fiscal years beginning on or after April 1, 2009. nent of equity. Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ 3. Cash and Cash Equivalents 6. Securities Cash equivalents are short-term investments that are Securities other than investments in unconsolidated readily convertible into cash and that are exposed to subsidiaries and associated companies are classified insignificant risk of changes in value. Cash equivalents and accounted for, depending on management’s intent, include amounts due from the Bank of Japan. as follows: (1) Trading securities, which are held for the purpose of Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited earning capital gains in the near term, are reported at fair value, and the related unrealized gains and losses are included in earnings; Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
170 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Held-to-maturity debt securities, which are expected to 8. Tangible Fixed Assets Data/ Financial be held to maturity with the positive intent and ability to Tangible fixed assets are carried at cost less accumulat- hold to maturity, are reported at amortized cost; and ed depreciation. Depreciation of tangible fixes assets (3) Available-for-sale securities, which are not classified as owned by CMTB is computed by the declining-balance either of the aforementioned securities, are reported at method, while the straight-line method is applied to build- fair value, with unrealized gains and losses, net of applica- ings acquired after April 1, 1998. The range of useful lives akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ble taxes, reported in a separate component of equity. is from 10 to 50 years for buildings, and from three to iaca Data/ Financial Japanese stocks and stock-investment trust classified as eight years for equipment. Available-for-sale securities are revalued at the average Depreciation of tangible fixes assets owned by consol- market price of the final month in the fiscal year. idated subsidiaries is mainly computed by the straight- Available-for-sale securities with fair value other than line method over the estimated useful lives of the Japanese stocks and stock-investment trust are revalued respective assets. hoMtu se rs and Trust Asset Mitsui Chuo at the balance sheet date. Limited Company, Banking
Non-marketable available-for-sale securities are stated 9. Software Data/ Financial at cost determined by the moving-average cost method. Capitalized software for internal use is amortized by the For other than temporary declines in fair value, securities straightline method over the estimated useful lives of the are reduced to net realizable value by a charge to expense. software (principally five years). Securities in money held in trust are classified and
accounted for the same as securities described above. 10. Impairment of Fixed Assets Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former CMTB Group reviews its longlived assets for impairment rs Group Trust 7. Derivative and Hedging Activities whenever events or changes in circumstance indicate the Financial derivatives are classified and accounted for carrying amount of an asset or asset group may not be as follows: recoverable. An impairment loss would be recognized if (1) Except as discussed below, all derivatives are recognized the carrying amount of an asset or asset group exceeds the as either assets or liabilities and measured at fair value, and sum of the undiscounted future cash flows expected to ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former gains or losses on derivative transactions are recognized in result from the continued use and eventual disposition of Inc. Holdings, Trust the consolidated statements of operations; and the asset or asset group. The impairment loss would be (2) for derivatives used for hedging purposes, if derivatives measured as the amount by which the carrying amount of qualify for hedge accounting because of the high correla- the asset exceeds its recoverable amount, which is the tion and effectiveness between the hedging instruments higher of the discounted cash flows from the continued use and the hedged items, CMTB and certain domestic con- and eventual disposition of the asset or the net selling akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The solidated subsidiaries use the deferral hedge method or price at disposition. Data/ Disclosure Quantitative II Basel the fair value hedge method. The interest rate swaps which qualify for hedge 11. Allowance for Loan Losses accounting and meet specific matching criteria are not Allowance for loan losses of CMTB and major consoli- remeasured at market value but the differential paid or dated subsidiaries is maintained in accordance with inter- received under the swap agreements is recognized and nally established standards for write-offs and allowances
included in interest expenses or income. for loan losses. Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 171 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
(1) For claims against borrowers that are legally bankrupt, In addition, allowance for loan losses caused by the such as borrowers in bankruptcy and under special liquida- Great East Japan Earthquake was reasonably estimated tion proceedings (“legal bankruptcy”), and against bor- and posted in the fiscal year ended March 31, 2011. rowers that are in substantially similarly adverse condition The outstanding amount thus determined is then directly Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui (“virtual bankruptcy”), allowances are maintained at 100% written off from the amount of claims as the unrecoverable of amount of claims net of expected amounts recoverable amount, which totaled ¥22,345 million ($268 million) and from the disposal of collateral and/or the amounts recov- ¥33,562 million as of March 31, 2011 and 2010, respectively. erable under guarantees. Other consolidated subsidiaries provide for “allowance (2) For claims against borrowers that have not yet become for loan losses” based on the past experience and man- legally or virtually bankrupt but that are very likely to agement’s assessment of the loan portfolio.
Financial Data/ become bankrupt (“possible bankruptcy”), allowances are The Chuo Mitsui Trust and
Banking Company, Limited maintained at amounts deemed necessary to absorb loss- 12. Provision for Bonuses es on the amount of claims less expected amounts recov- Provision for bonuses is provided for the payment of erable from the disposal of collateral and/or the amounts employees’ bonuses based on estimates of the future pay- recoverable under guarantees, based on the overall ments attributed to the current fiscal year. assessment of the borrowers’ repayment ability. For claims against large borrowers that are classified as
Financial Data/ 13. Provision for Directors’ Retirement Benefits possible bankruptcy and close observation borrowers for Provision for directors’ retirement benefits is provided Banking Company, Limited Chuo Mitsui Asset Trust and which future cash flows could be reasonably estimated, at the amount which would be required if all directors, cor- allowances are provided for the difference between the pres- porate auditors and executive officers retired at the bal- ent value of expected future cash flows discounted at the ance sheet date. The retirement benefits for directors and contracted interest rate and the carrying value of the claims. corporate auditors are paid subject to the approval of the (3) For claims against other borrowers judged to be in shareholders. Trust Group legal bankruptcy, virtual bankruptcy and possible bank- CMTB decided to terminate unfunded retirement benefit Former Chuo Mitsui Basel II Qualitative Disclosure Data/ ruptcy, as mentioned above, allowances are maintained at plan for directors. The unpaid balance determined in connec- rates derived from historical loan loss experiences, etc. tion with this termination, which totaled ¥641 million ($7 mil- (4) Allowance for losses on loans to restructuring countries lion) as of March 31, 2011 was reclassified to other liabilities. is maintained in order to cover possible losses based on the political and economic climates of those countries. 14. Provision for Retirement Benefits and Pension Plans All claims are assessed by the operating sections and CMTB has defined benefit plans (employee pension Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ each Credit Supervision Department based on the internal fund plans and tax qualified pension plans) and lump-sum guidelines for self-assessment on asset quality. severance indemnity plans. Subsequently, the Internal Audit Department, which is CMTB accounts for the liability for retirement benefits independent from the operating sections, reviews these based on the projected benefit obligations and plan self-assessments, and the allowances are provided based assets at the balance sheet date. on the results of the self-assessments. With respect to claims with collateral and/or guarantees Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited extended to borrowers who are in legal bankruptcy or vir- tual bankruptcy, the unrecoverable amount is estimated by deducting from the amount of claims the realizable value of collateral or the amount likely to be recovered based on guarantees. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
172 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
15. Provision for Contingent Losses In addition, the revised accounting standard permits leas- Data/ Financial Provision for contingent losses, which is provided for es which existed at the transition date and do not transfer possible losses from contingent events related to off-bal- ownership of the leased property to the lessee to continue ance sheet and other transactions is calculated by estima- to be accounted for as operating lease transactions. tion of the impact of these contingent events. CMTB Group continues to account for leases which exist- (1) Provision for Reimbursement of Deposits ed at the transition date and do not transfer ownership of the akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Provision for reimbursement of deposits which were leased property to the lessee as operating lease transactions. iaca Data/ Financial derecognized as liabilities under certain conditions is pro- vided for the possible losses on the future claims of with- 18. Per Share Information drawal based on the historical reimbursement experience. Basic net income per share is computed by dividing net (2) Provision for Possible Losses Related to Land Trust income available to common shareholders by the weight- Provision for possible losses related to land trust is pro- ed-average number of common shares outstanding for hoMtu se rs and Trust Asset Mitsui Chuo vided for estimated losses deemed necessary for potential the period. Limited Company, Banking damages to the compensation rights being acquired, Cash dividends per share presented in the accompany- Data/ Financial when a liability for reimbursement, as a trustee of a land ing consolidated statements of operations are dividends trust, is incurred due to the future business circumstances applicable to the respective years, including dividends to of the land trust. be paid after the end of the year.
16. Income Taxes 19. New Accounting Pronouncements Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former The provision for income taxes is computed based on (1) Accounting Changes and Error Correction rs Group Trust the pretax income included in the consolidated statements In December 2009, ASBJ issued ASBJ Statement No.24 of operations. The asset and liability approach is used to “Accounting Standard for Accounting Changes and Error recognize deferred tax assets and liabilities for the expect- Corrections” and ASBJ Guidance No.24 “Guidance on ed future tax consequences of temporary differences Accounting Standard for Accounting Changes and Error between the carrying amounts and the tax bases of assets Corrections.” Accounting treatments under this standard ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former and liabilities. Deferred taxes are measured by applying and guidance are as follows; Inc. Holdings, Trust currently enacted tax laws to the temporary differences. 1) Changes in Accounting Policies: When a new accounting policy is applied with revision 17. Leases of accounting standards, a new policy is applied retro- In March 2007, the ASBJ issued ASBJ Statement No.13, spectively unless the revised accounting standards include “Accounting Standard for Lease Transactions,” which specific transitional provisions. When the revised account- akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The revised the previous accounting standard for lease transac- ing standards include specific transitional provisions, an Data/ Disclosure Quantitative II Basel tions issued in June 1993. The revised accounting standard entity shall comply with the specific transitional provisions. for lease transactions is effective for fiscal years beginning on or after April 1, 2008 with early adoption permitted for fiscal years beginning on or after April 1, 2007. The revised accounting standard requires that all
finance lease transactions be capitalized to recognize Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking lease assets and lease obligations in the balance sheet.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 173 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
2) Changes in Presentations As a result, compared with the previous treatments, When the presentation of financial statements is “Securities” decreased by ¥419 million, “Deferred tax changed, prior period financial statements are reclassified assets” decreased by ¥235 million, “Valuation difference in accordance with the new presentation. on available-for-sale securities” increased by ¥344 mil- Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui 3) Changes in Accounting Estimates lion,” Income before income taxes and minority interests” A change in an accounting estimate is accounted for in increased by ¥1,534 million in 2010. the period of the change if the change affects that period only, and is accounted for prospectively if the change 2. Accounting Standard for Equity Method affects both the period of the change and future periods. CMTB Group has started to adopt ASBJ Statement 4) Corrections of Prior Period Errors No.16 “Accounting Standard for Equity Method of
Financial Data/ When an error in prior period financial statements is dis- Accounting for Investments” (issued by ASBJ on March 10, The Chuo Mitsui Trust and
Banking Company, Limited covered, those statements are restated. This accounting 2008) and Practical Issue Task Force No.24 “Practical standard and the guidance are applicable to accounting Solution on Unification of Accounting Policies Applied to changes and corrections of prior period errors which are Associates Accounted for Using the Equity Method” (issued made from the beginning of the fiscal year that begins on by ASBJ on March 10, 2008) from the current fiscal year. or after April 1, 2011. There was no effect on statements of income with regard to this adoption. Financial Data/ 3. Changes in Significant Accounting Policies Banking Company, Limited Chuo Mitsui Asset Trust and 3. Asset Retirement Obligations 1. Financial Instruments CMTB Group applied ASBJ Statement No.18 CMTB Group applied revised ASBJ Statement No.10 “Accounting Standard for Asset Retirement Obligations” “Accounting Standard for Financial Instruments” and and ASBJ Guidance No.21 “the Guidance on Accounting issued ASBJ Guidance No.19 “Guidance on Accounting Standard for Asset Retirement Obligations” from the Trust Group Standard for Financial Instruments and Related beginning of FY2010. Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Disclosures” at the prior fiscal year end. As a result, compared with the previous treatments, “Income before income taxes and minority interests” decreased by ¥238 million ($2 million).
4. Securities Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Securities as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Japanese Government Bonds ¥ 1,269,385 ¥ 1,942,833 $ 15,266 Japanese Municipal Bonds 154 644 1 Japanese Corporate Bonds 294,437 296,390 3,541 Japanese Stocks 575,396 637,391 6,919 Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Other Securities 1,459,492 1,537,666 17,552 Total ¥ 3,598,866 ¥ 4,414,926 $ 43,281
Securities in unconsolidated subsidiaries and associated companies totaled ¥1,138 million ($13 million) and ¥1,234 mil- lion as of March 31, 2011 and 2010, respectively. The related information for 2011 and 2010 is disclosed in Note 27. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
174 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
5. Loans and Bills Discounted Data/ Financial
Loans and bills discounted as of March 31, 2011 and 2010, consisted of the following:
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Bills Discounted ¥ 3,035 ¥ 4,325 $ 36 and Trust Mitsui Chuo The Loans on Notes 1,280,104 1,298,472 15,395 iaca Data/ Financial Loans on Deeds 6,832,558 6,928,690 82,171 Overdrafts 748,567 710,459 9,002 Total ¥ 8,864,266 ¥ 8,941,948 $ 106,605
1. Loans to Borrowers in Bankruptcy and Non-Accrual Loans 3. Restructured Loans hoMtu se rs and Trust Asset Mitsui Chuo Loans are generally placed on non-accrual status when Restructured loans are loans on which CMTB and major Limited Company, Banking substantial doubt is judged to exist as to the ultimate col- consolidated subsidiaries have granted concessions (for Data/ Financial lectibility of either principal or interest. example, reduction of the face amount or maturity amount Loans to borrowers in bankruptcy represent non-accru- of the debt or accrued interest) to debtors in financial diffi- ing loans, after the partial write-off of claims deemed culties to assist them in their financial recovery and even- uncollectible, to debtors who are legally bankrupt as tually enable them to pay their creditors. Loans classified
defined in Article 96, Paragraph 1, Subparagraphs 3 and 4 as loans to borrowers in bankruptcy or non-accrual loans Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former of Enforcement Ordinance for the Corporation Tax Law. or loans past due three months or more are excluded. rs Group Trust Non-accrual loans are non-accruing loans other than These claims are before deduction of the allowance for loans to borrowers in bankruptcy and loans for which inter- loan losses. est payment is deferred in order to assist the debtor’s financial recovery from financial difficulties. Bills discounted are accounted for as secured lending transactions in conformity with the Industry Audit ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former 2. Loans Past Due Three Months or More Committee Report No.24, “Treatment of Accounting and Inc. Holdings, Trust Loans classified as loans to borrowers in bankruptcy or Auditing Concerning Accounting for Financial Products in nonaccrual loans are excluded. the Banking Industry” issued by the JICPA on February 13, 2002. Bills discounted by CMTB are permitted to be sold or pledged. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Loans and bills discounted as of March 31, 2011 and 2010 included the followings. Data/ Disclosure Quantitative II Basel
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Loans to Borrowers in Bankruptcy ¥ 11,195 ¥ 14,278 $ 134 Non-accrual Loans 52,814 79,645 635 Loans Past Due Three Months or More 43 58 0
Restructured Loans 33,487 16,904 402 Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Total ¥ 97,541 ¥ 110,885 $ 1,173
These claims are before deduction of the allowance for loan losses.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 175 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
6. Foreign Exchanges
Foreign exchanges as of March 31, 2011 and 2010, consisted of the following:
Millions of
Financial Data/ Millions of Yen U.S. Dollars Trust Holdings, Inc. Former Chuo Mitsui 2011 2010 2011 Assets: Due from Foreign Banks ¥ 12,259 ¥ 767 $ 147 Total ¥ 12,259 ¥ 767 $ 147 Liabilities: Due to Foreign Banks ¥— ¥— $—
Financial Data/ Other — 21 — Total ¥— ¥ 21 $— The Chuo Mitsui Trust and Banking Company, Limited
7. Other Assets
Other assets as of March 31, 2011 and 2010, consisted of the following:
Millions of Financial Data/ Millions of Yen U.S. Dollars Banking Company, Limited Chuo Mitsui Asset Trust and 2011 2010 2011 Prepaid Expenses ¥ 690 ¥ 666 $8 Accrued Income 28,983 29,361 348 Prepaid Pension Expenses 83,995 87,727 1,010 Receivables for Securities Transactions 74,411 108,253 894 Financial Derivatives 41,004 45,053 493
Trust Group Financial Stabilization Fund Contribution 82,061 82,061 986
Former Chuo Mitsui Other 49,980 59,682 601 Basel II Qualitative Disclosure Data/ Total ¥ 361,127 ¥ 412,807 $ 4,343 Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
176 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
8. Tangible Fixed Assets Data/ Financial
Tangible fixed assets as of March 31, 2011 and 2010, consisted of the following:
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Land ¥ 80,955 ¥ 81,958 $ 973 and Trust Mitsui Chuo The Buildings 34,694 37,054 417 iaca Data/ Financial Equipment 7,152 5,948 86 Other 291 200 3 Total ¥ 123,094 ¥ 125,162 $ 1,480
Accumulated depreciation amounted to ¥88,195 million nent of equity. Continuous readjustment is not permitted hoMtu se rs and Trust Asset Mitsui Chuo ($1,060 million) and ¥89,630 million as of March 31, 2011 unless the land value subsequently declines significantly Limited Company, Banking and 2010, respectively. such that the amount of the decline in value should be Data/ Financial Under the Law of Land Revaluation, The Mitsui Trust removed from the land revaluation difference account and and Banking Company, Limited, the forerunner of CMTB, related deferred tax liabilities. elected the one-time revaluation for its own-use land to a As of March 31, 2011 and 2010, the carrying amount of value based on real estate appraisal information as of the land after the above one-time revaluation exceeded
March 31, 1998. the market value by ¥4,625 million ($55 million), and ¥4,416 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former The resulting land revaluation difference represents million, respectively. rs Group Trust unrealized appreciation of land and is stated as a compo-
9. Intangible Fixed Assets
Intangible fixed assets as of March 31, 2011 and 2010, consisted of the following: ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Millions of Inc. Holdings, Trust Millions of Yen U.S. Dollars 2011 2010 2011 Software ¥ 15,340 ¥ 12,579 $ 184 Goodwill 6,997 7,555 84 Other 4,914 7,225 59 Total ¥ 27,252 ¥ 27,361 $ 327 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 177 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
10. Collateral
The carrying amounts of assets pledged as collateral and the related collateralized debt as of March 31, 2011 and 2010, were as follows: Financial Data/ Trust Holdings, Inc. Former Chuo Mitsui Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Securities ¥ 1,765,965 ¥ 2,529,071 $ 21,238 Loans and Bills Discounted 527,615 765,768 6,345 Other Assets 69 70 0 Total ¥ 2,293,650 ¥ 3,294,909 $ 27,584 Financial Data/ Deposits ¥ 6,475 ¥ 3,959 $ 77 The Chuo Mitsui Trust and Banking Company, Limited Payables under Securities Lending Transactions 1,161,653 1,702,697 13,970 Borrowed Money 585,330 1,123,400 7,039 Total ¥ 1,753,459 ¥ 2,830,057 $ 21,087
In addition, securities pledged as collateral for exchange Also, securities deposits (included in other assets) as of
Financial Data/ settlements, for derivative transactions and for certain other March 31, 2011 and 2010 were ¥7,868 million ($94 million) Banking Company, Limited Chuo Mitsui Asset Trust and purposes as of March 31, 2011 and 2010 were ¥602,737 mil- and ¥7,985 million, respectively. lion ($7,248 million) and ¥566,297 million, respectively.
11. Customers’ Liabilities for Acceptances and Guarantees
All contingent liabilities arising from acceptances and Guarantee obligations for privately offered bonds (pro- Trust Group guarantees are reflected in acceptances and guarantees. vided in accordance with Article 2, Paragraph 3 of the Former Chuo Mitsui Basel II Qualitative Disclosure Data/ As a contra account, customers’ liabilities for acceptances “Financial Instruments and Exchange Law”) in “Securities” and guarantees are shown as assets in the consolidated were ¥138,578 million ($1,666 million) and ¥124,395 million balance sheets representing CMTB’s right of indemnity as of March 31, 2011 and 2010. from the applicant.
12. Deposits Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Deposits as of March 31, 2011 and 2010, consisted of the following:
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 Current Deposits ¥ 115,104 ¥ 113,981 $ 1,384 Ordinary Deposits 1,371,394 1,156,767 16,493 Deposits at Notice 18,618 21,514 223 Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Time Deposits 7,687,182 7,423,237 92,449 Negotiable Certificates of Deposit 350,020 362,190 4,209 Other 105,376 49,787 1,267 Total ¥ 9,647,696 ¥ 9,127,480 $ 116,027 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
178 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
13. Borrowed Money Data/ Financial
Borrowed money as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Borrowed Money ¥ 586,483 ¥ 1,124,746 $ 7,053 and Trust Mitsui Chuo The Subordinated Borrowings 77,500 77,500 932 iaca Data/ Financial Perpetual Subordinated Borrowings 15,000 15,000 180 Total ¥ 678,983 ¥ 1,217,246 $ 8,165
The weighted-average rates calculated from the interest rates and the balances as of March 31, 2011 and 2010, were 0.40% and 0.27%, respectively. hoMtu se rs and Trust Asset Mitsui Chuo Annual maturities of borrowed money as of March 31, 2011, for the next five years are as follows: Limited Company, Banking iaca Data/ Financial Millions of Yen Millions of Fiscal year ending March 31 U.S. Dollars 2012 ¥ 588,328 $ 7,075 2013 15,268 183 2014 5,220 62 2015 60,126 723 2016 5,038 60 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Total ¥ 673,983 $ 8,105 Mitsui Chuo Former rs Group Trust
14. Bonds Payable
Bonds payable as of March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust 2011 2010 2011 Issuer: CMTB, 2.08% Unsecured Perpetual Subordinated bonds ¥ 16,100 ¥ 16,100 $ 193 2.03% Unsecured Subordinated Bonds Due 2015 40,000 40,000 481 5.50% USD Unsecured Perpetual Subordinated Notes 63,147 70,650 759 2.06% Unsecured Perpetual Subordinated Bonds 5,000 5,000 60 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The 4.46% Unsecured Perpetual Subordinated Bonds 10,000 10,000 120 Data/ Disclosure Quantitative II Basel 2.95% Unsecured Subordinated Callable Bonds Due 2017 50,000 50,000 601 1.51% Unsecured Subordinated Callable Bonds Due 2020 25,000 25,000 300 1.07% Unsecured Subordinated Callable Bonds Due 2020 18,000 18,000 216 1.17% Unsecured Subordinated Callable Bonds Due 2021 10,000 — 120 1.64% Unsecured Subordinated Bonds Due 2021 30,000 — 360 Total ¥ 267,247 ¥ 234,750 $ 3,214 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 179 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Annual maturities of bonds as of March 31, 2011, for the next five years were as follows:
Millions of Yen Millions of Fiscal year ending March 31 U.S. Dollars 2012 ¥— $—
Financial Data/ 2013 55,000 661 Trust Holdings, Inc. Former Chuo Mitsui 2014 — — 2015 83,000 998 2016 73,147 879 Total ¥ 211,147 $ 2,539
15. Other Liabilities Financial Data/ The Chuo Mitsui Trust and
Banking Company, Limited Other liabilities as of March 31, 2011 and 2010, consisted of the following: Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Accrued Expenses ¥ 66,038 ¥ 56,827 $ 794 Unearned Income 31,228 33,527 375
Financial Data/ Financial Derivatives 33,629 45,420 404 Income Taxes Payable 792 2,587 9 Banking Company, Limited Chuo Mitsui Asset Trust and Payable for Securities Transaction 41 10,115 0 Other 17,001 15,091 204 Total ¥ 148,731 ¥ 163,570 $ 1,788
16. Retirement and Pension Plans Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Employees who terminate their services with CMTB or CMTB has defined benefit plans (employee pension certain domestic consolidated subsidiaries are, under most fund plans and tax qualified pension plans) and lump-sum circumstances, entitled to retirement and pension benefits severance indemnity plans. Certain domestic consolidated determined by reference to basic rates of pay at the time subsidiaries have lump-sum severance indemnity plans and of termination, length of service and conditions under integrated contributory pension plans. which the termination occurs. If the termination is involun- CMTB contributed certain available-for-sale securities Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ tary, caused by retirement at the mandatory retirement age with a fair value to the employee retirement benefit trust or caused by death, the employee is entitled to greater for their pension plans. The securities held in this trust are payment than in the case of voluntary termination. qualified as plan assets. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
180 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(1) The funded status for employees’ retirement benefits as of March 31, 2011 and 2010, consisted of the following: Data/ Financial
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 Projected Benefit Obligation ¥ (154,287) ¥ (151,871) $ (1,855) Fair Value of Plan Assets 166,760 180,112 2,005
12,473 28,241 150 Limited Company, Banking
Unfunded Projected Benefit Obligation and Trust Mitsui Chuo The Unrecognized Actuarial Loss 69,858 57,894 840 Net Amount Accrued on the Consolidated Balance Sheets 82,331 86,135 990 Data/ Financial Prepaid Pension Expenses (Included in other assets) 83,995 87,727 1,010 Provision for Retirement Benefits ¥ (1,663) ¥ (1,592) $ (20)
(2) The components of net periodic benefit costs for the fiscal years ended March 31, 2011 and 2010, were as follows: hoMtu se rs and Trust Asset Mitsui Chuo Millions of Limited Company, Banking Millions of Yen U.S. Dollars iaca Data/ Financial 2011 2010 2011 Service Cost ¥ 3,222 ¥ 3,187 $ 38 Interest Cost 2,861 2,867 34 Expected Return on Plan Assets (8,310) (2,233) (99) Recognized Actuarial Loss 11,110 14,880 133 Other 402 318 4 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
Net Periodic Benefit Costs ¥ 9,287 ¥ 19,020 $ 111 Mitsui Chuo Former rs Group Trust
(3) Assumptions used for the fiscal years ended March 31, 2011 and 2010, were as follows:
2011 2010 Discount Rate 1.9% 1.9% Expected Rate of Return on Plan Assets 4.6% 1.4%
Method of Attributing the Projected Benefits to Periods of Services Mainly point basis Mainly point basis Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Recognition Period of Actuarial Loss 9 years 9 years Inc. Holdings, Trust
17. Provision for Contingent Losses
Provision for contingent losses as of March 31, 2011 and 2010 consisted of the following:
Millions of Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Millions of Yen U.S. Dollars Data/ Disclosure Quantitative II Basel 2011 2010 2011 Provision for Reimbursement of Deposits ¥ 5,255 ¥ 5,105 $ 63 Provision for Possible Losses Related to Land Trust 9,612 6,462 115 Other 468 454 5 Total ¥ 15,335 ¥ 12,022 $ 184 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 181 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
18. Commitments and Contingent Liabilities 19. Equity
(1) CMTB and certain consolidated subsidiaries issue com- Japanese companies are subject to the Companies Act mitments to extend credit and establish credit lines for of Japan (the “Companies Act”). The significant provisions Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui overdrafts by making agreements to meet the financing in the Companies Act that affect financial and accounting needs of their customers. The total balance of unused matters are summarized below: commitment lines as of March 31, 2011 and 2010, was (1) Dividends ¥2,759,342 million ($33,185 million) and ¥2,470,526 million, Under the Companies Act, companies can pay dividends respectively, of which commitment lines whose maturities at any time during the fiscal year in addition to the year-end are less than one year were ¥2,607,273 million ($31,356 mil- dividend upon resolution at the shareholders meeting. For
Financial Data/ lion) and ¥2,320,327 million, respectively. companies that meet certain criteria such as: 1) having a The Chuo Mitsui Trust and
Banking Company, Limited Many of these commitment lines expire without being Board of Directors, 2) having independent auditors, 3) hav- drawn. As such, the total balance of unused commitment ing a Board of Corporate Auditors, and 4) where the term of lines does not necessarily impact future cash flows of service of the directors under the company’s article of incor- CMTB and certain consolidated subsidiaries. Furthermore, poration is prescribed as one year rather than two years for many commitment lines contain provisions that allow a normal term, the Board of Directors may declare divi- CMTB and certain consolidated subsidiaries to refuse to dends (except for dividends in kind) at any time during fiscal Financial Data/ advance funds to the customers or reduce the contract year if the company has so prescribed in its articles of incor- Banking Company, Limited Chuo Mitsui Asset Trust and amount of the commitment lines under certain conditions. poration. However, CMTB cannot do so because it does not CMTB and certain consolidated subsidiaries may also meet all the above criteria. request customers to provide collateral, if necessary, such The Companies Act permits companies to distribute div- as real estate or securities on the execution date of the idends-in-kind (non-cash assets) to shareholders subject to contract. After the execution date, CMTB and certain con- certain limitation and additional requirements. Semiannual Trust Group solidated subsidiaries periodically monitor the customers’ interim dividends may also be paid once a year upon reso- Former Chuo Mitsui Basel II Qualitative Disclosure Data/ creditworthiness over the term of the contracts in accor- lution by the Board of Directors if the articles of incorpora- dance with internal policies, and take measures to manage tion of the company so stipulate. The Companies Act the credit exposures such as revising the terms of the con- provides certain limitations on the amounts available for tracts, if necessary. dividends or the purchase of treasury stock.
(2) Under certain trust agreements, repayments of the prin- Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ cipal of the customers’ trust assets are guaranteed by CMTB. Regarding guaranteed trusts, CMTB guaranteed the principal amount of ¥883,457 million ($10,624 million) and ¥1,024,773 million for certain money trusts as of March 31, 2011 and 2010, respectively, and ¥226,456 million ($2,723 million) and ¥357,078 million for loan trusts as of March 31, 2011 and 2010, respectively. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
182 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Increases/decreases and transfer of capital stock, (3) Treasury stock and treasury stock acquisition rights Data/ Financial reserve and surplus The Companies Act also provides for companies to pur- The Banking Law of Japan requires that an amount chase treasury stock and dispose of such treasury stock by equal to 20% of dividends must be appropriated as a legal resolution of the Board of Directors. The amount of treas- reserve (a component of retained earnings) or as addition- ury stock purchased cannot exceed the amount available al paid-in capital (a component of capital surplus) depend- for distribution to the shareholders which is determined by akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ing on the equity account charged upon the payment of specific formula. iaca Data/ Financial such dividends until the total of aggregate amount of Under the Companies Act, stock acquisition rights are legal reserve and additional paid-in capital equals 100% of presented as a separate component of equity. the capital stock. The Companies Act also provides that The Companies Act also provides that companies can capital stock, legal reserve, additional paid-in capital, purchase both treasury stock acquisition rights and treas- other capital surplus and retained earnings can be trans- ury stock. Such treasury stock acquisition rights are pre- hoMtu se rs and Trust Asset Mitsui Chuo ferred among the accounts under certain conditions upon sented as a separate component of equity or deducted Limited Company, Banking resolution of the shareholders. directly from stock acquisition rights. Data/ Financial
20. Issued Shares and Treasury Stock
Issued shares and Treasury stock as of March 31, 2011, consisted of the following:
Number of Shares (Thousands) Per Share Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Outstanding Outstanding Fiscal Year-
Authorized at the End of Increase Decrease at the End of end Cash Group Trust Class of stock Previous Period Current Period Dividend Issued Shares Common Stock 3,911,104 2,595,958 — — 2,595,958 ¥3.09 ($0.03)
Issued shares and Treasury stock as of March 31, 2010, consisted of the following: ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Number of Shares (Thousands) Per Share Inc. Holdings, Trust Outstanding Outstanding Fiscal Year- Authorized at the End of Increase Decrease at the End of end Cash Class of stock Previous Period Current Period Dividend Issued Shares 3,911,104 1,687,833 908,125 — 2,595,958 ¥3.66 Common Stock Class I Convertible Preferred Stock 362,941 Second Series 93,750 — 93,750 — — akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Third Series 133,281 — 133,281 — — Treasury Stock Class I Convertible Preferred Stock Second Series — 93,750 93,750 — — Third Series — 133,281 133,281 — —
Pursuant to the provisions of the Company’s Articles of Incorporation, CMTB, acquired all relevant preferred stock on August 1, 2009, subscribed by CMTH, and issued CMTB’s common stocks to CMTH in exchange for these preferred stocks. CMTB subsequently cancelled all the relevant preferred stocks immediately after obtaining these stocks. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 183 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
21. Other Interest Income and Expenses
(1) Other interest income for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Financial Data/ Millions of Yen U.S. Dollars Trust Holdings, Inc. Former Chuo Mitsui 2011 2010 2011 Interest on Due from Banks ¥ 441 ¥ 177 $5 Interest on Interest Rate Swaps 2,948 1,998 35 Interest on Monetary Claims Bought 1,155 1,351 13 Other 356 271 4 Total ¥ 4,901 ¥ 3,798 $ 58 Financial Data/ The Chuo Mitsui Trust and
Banking Company, Limited (2) Other interest expenses for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Interest on Bonds Payable ¥ 7,642 ¥ 7,512 $ 91 Interest on Payables under Repurchase Agreements and
Financial Data/ Payables under Securities Lending Transactions 2,537 3,500 30
Banking Company, Limited 6,929 Chuo Mitsui Asset Trust and Other 4,983 59 Total ¥ 15,163 ¥ 17,943 $ 182
22. Trust Fees
CMTB receives fees for controlling and managing trust properties held under trust agreements between it and its clients. Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ 23. Other Ordinary Income and Expenses
(1) Other ordinary income for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011
Trust Holdings, Inc. ¥ 1,283 Former Chuo Mitsui Gains on Foreign Exchange ¥ 231 $2 Basel II Quantitative Disclosure Data/ Gains on Sales and Redemption of Bonds 35,981 21,764 432 Gains on Derivatives — 2,566 — Other 11 1,890 0 Total ¥ 36,224 ¥ 27,505 $ 435
(2) Other ordinary expenses for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Millions of Yen U.S. Dollars 2011 2010 2011 Losses on Sales and Redemption of Bonds ¥ 8,611 ¥ 8,245 $ 103 Losses on Derivatives 472 — 5 Other 143 73 1 Total ¥ 9,228 ¥ 8,318 $ 110 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
184 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
24. Other Income and Expenses Data/ Financial
(1) Other income for the fiscal years ended March 31, 2011 and 2010, consisted of the following:
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 akn opn,Limited Company, Banking Gains on Sales of Stocks and Other Securities ¥ 15,778 ¥ 16,052 $ 189 and Trust Mitsui Chuo The Gains on Money Held in Trust 115 168 1 iaca Data/ Financial Net Reversal of Allowance for Loan Losses 762 — 9 Recoveries of Written-off Claims 6,926 2,147 83 Gain on Disposal of Tangible Fixed Assets 141 234 1 Other 6,233 7,249 74 Total ¥ 29,956 ¥ 25,852 $ 360 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
(2) Other expenses for the fiscal years ended March 31, 2011 and 2010, consisted of the following: Data/ Financial
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Losses on Sales of Loans ¥— ¥7 $— Write-off of Loans 3,173 10,339 38 Losses on Sales of Stocks and Other Securities 6,219 1,578 74 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Losses on Devaluation of Stocks and Other Securities 6,692 2,238 80 Mitsui Chuo Former
Losses on Money Held in Trust — 24 — Group Trust Provision of Allowance for Loan Losses — 363 — Losses on Disposal of Tangible Fixed Assets 745 500 8 Losses on Impairment of Fixed Assets 522 41 6 Management Integration Expenses 2,891 428 34 Other 19,798 20,601 238 ¥ 36,123 Data/ Disclosure Quantitative II Basel
Total ¥ 40,044 $ 481 Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 185 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
25. Income Taxes
CMTB and its domestic consolidated subsidiaries are statutory tax rate of approximately 40.63% for the fiscal subject to Japanese national and local income taxes years ended March 31, 2011 and 2010. Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui which, in the aggregate, resulted in a normal effective
(1) The tax effects of significant temporary differences and loss carry-forwards, which resulted in deferred tax assets and lia- bilities as of March 31, 2011 and 2010, were as follows:
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 Financial Data/ Deferred Tax Assets: The Chuo Mitsui Trust and Banking Company, Limited Allowance for Loan Losses ¥ 23,561 ¥ 28,832 $ 283 Tax Loss Carry-forwards 84,934 160,068 1,021 Securities 15,680 12,770 188 Valuation Difference on Available-for-sale Securities 11,924 — 143 Provision for Retirement Benefits 3,515 2,851 42 Other 50,532 53,575 607
Financial Data/ Valuation Allowance (34,851) (87,919) (419) Banking Company, Limited Chuo Mitsui Asset Trust and Total Deferred Tax Assets 155,294 170,180 1,867 Deferred Tax Liabilities: Valuation Difference on Available-for-sale Securities (4,212) (13,856) (50) Gains on Return of Securities from Employee Retirement Benefit Trusts (8,799) (8,799) (105) Deferred Gains or Losses on Hedges (1,464) — (17) Other (3,998) (5,028) (48)
Trust Group Total Deferred Tax Liabilities (18,474) (27,683) (222) ¥ 142,496 Former Chuo Mitsui Net Deferred Tax Assets ¥ 136,819 $ 1,645 Basel II Qualitative Disclosure Data/
(2) A reconciliation between the normal effective statutory tax rate and the actual effective tax rates reflected in the accompanying consolidated statements of operations for the fiscal years ended March 31, 2011 and 2010, was as follows:
2011 2010 Normal Effective Statutory Tax Rate 40.63% 40.63% Valuation Allowance (3.83) (5.80) Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Nontaxable Dividends Received (0.45) (0.37) Other, Net (1.64) 0.24 Actual Effective Tax Rate 34.69% 34.70% Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
186 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
26. Leases Data/ Financial
Lessee sition cost and accumulated depreciation and obligations Total lease payments under finance lease arrangements under finance leases as of March 31, 2011 and 2010, and the that do not transfer ownership of the leased property to the related depreciation expense and interest expense under lessee were ¥5 million ($0 million) and ¥11 million for the fis- finance leases for the fiscal years ended March 31, 2011 and akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The cal years ended March 31, 2011 and 2010, respectively. 2010, on an “as if capitalized” basis were as follows: iaca Data/ Financial Pro forma information on leased property such as acqui-
Millions of Yen 2011 2010 Equipment Other Total Equipment Other Total Acquisition Cost ¥ 13 ¥— ¥ 13 ¥ 45 ¥— ¥ 45 11 — 11 37 — 37 Accumulated Depreciation and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Net Leased Property ¥1 ¥— ¥1 ¥7 ¥— ¥7 iaca Data/ Financial
Millions of U.S. Dollars 2011 Equipment Other Total Acquisition Cost $0 $— $0 Accumulated Depreciation 0 — 0 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Net Leased Property $0 $— $0 Mitsui Chuo Former rs Group Trust
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Obligations under Finance Leases: Due within One Year ¥1 ¥6 $0
Due after One Year 0 2 0 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Total ¥2 ¥8 $0
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Depreciation Expense ¥4 ¥9 $0 Interest Expense 0 0 0 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Total ¥5 ¥9 $0
Depreciation expense and interest expense, which were not reflected in the accompanying consolidated statements of operations, were computed by the straight-line method and the interest method, respectively. The minimum rental commitments under noncancellable operating leases as of March 31, 2011 and 2010, were as follows:
Millions of Yen Millions of
U.S. Dollars Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking 2011 2010 2011 Due within One Year ¥ 309 ¥ 341 $3 Due after One Year 137 435 1 Total ¥ 447 ¥ 777 $5
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 187 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
27. Financial Instruments, Securities and Money Held in Trust
Financial Instruments These financial instruments are exposed to the market risk of fluctuations in interest rates, foreign exchange rates, Financial Data/ Trust Holdings, Inc. Former Chuo Mitsui 1. Outline of Financial Instruments and market prices of securities as well as volatility. Some (1) Group Policy for Financial Instruments of these financial instruments are less liquid than listed With CMTH in a pivotal position as bank holding compa- equity securities and government bonds and thus more ny, CMTB Group is engaged in a range of financial service prone to market fluctuations. businesses including trust banking business by CMTB cred- One of CMTB Group’s main sources of earnings is the it guarantee business by CMTB’s subsidiaries, and credit spread between the interest income from loans and secu-
Financial Data/ card business. To facilitate these businesses, CMTB Group rities, etc. and interest expenses on deposits, etc., which is The Chuo Mitsui Trust and
Banking Company, Limited is holding financial assets such as loans and bills discount- exposed to the interest rate risk that such profit can be ed and securities, while funding by accepting savings compromised by the magnitude and timing of fluctua- deposits. The policies as well as measures regarding how tions in investment interest rate and funding interest rate. to manage or fund financial assets and liabilities are deter- 3) Liquidity Risk on Fund Raising mined primarily under the annual plans prepared by each CMTB Group raises funds primarily through savings Group company. Risks associated with the Group-wide deposits from domestic corporate and individual cus- Financial Data/ financial assets and liabilities are monitored by CMTH. tomers, along with repurchase agreements in bond Banking Company, Limited Chuo Mitsui Asset Trust and CMTB is monitoring its respective risks while implementing lending market, borrowed money and issuance of corpo- comprehensive Asset-Liability Management (ALM). rate bonds. These financing activities are exposed to the Meanwhile CMTB is engaged in derivative transactions in liquidity risk that financing could become costlier or an effort to contain market risk and other risks associated more restricted due to the circumstances including dete- with its assets and liabilities within the level commensurate rioration in CMTB Group’s financial condition or busi- Trust Group with its management capacity. ness results, bad reputation of CMTB Group, worsening Former Chuo Mitsui Basel II Qualitative Disclosure Data/ (2) Content of Financial Instruments and Risks Arising from economic environment and lowering market liquidity. 1) Credit Risk 4) Purposes for Derivative Transactions CMTB Group’s credit arrangement involves loans to (a) Banking Accounts corporate and individual customers, along with invest- In banking accounts, CMTB Group enters into ment in shares and bonds issued by its client companies derivative transactions for the purpose of hedging and derivative transactions. Such credit arrangement is interest rates, currency exchange, and other risks per- Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ exposed to credit risk of the borrowers, investees and taining to CMTB Group’s assets and liabilities. counterparties in the event of deterioration in their In principle, mark-to-market accounting is applied financial condition. to the banking account derivative transactions into 2) Market Risk which CMTB Group enters. Within hedged derivative In the course of trading and investment activities, transactions entered into for hedging purposes, CMTB Group handles financial instruments including hedge accounting is applied to transactions deemed equity securities, investment trusts, investments in silent to have high hedge effectiveness, and the deferral Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited partnership, foreign securities, foreign exchanges and hedge method, the fair value hedge method, and derivatives, in addition to a portfolio of domestic bonds interest rate swaps meeting certain conditions consisting of primarily the Japanese government bonds. method are applied. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
188 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(b) Trading Accounts 2) Market Risk Management Data/ Financial In trading accounts, CMTB Group engages in deriv- (a) Market Risk Management ative transactions primarily as a means of earning from With regard to market risk, CMTB maintains a basic short-term price fluctuations. CMTB Group also pro- policy through its Rules for Market Risk Management vides its customers with a broad range of high-value- and follows Regulations for Market Risk Management added products and financial risk management to reinforce and control accurate hedging techniques akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The methods based on these transactions. Before entering and risk. An independent check system has been iaca Data/ Financial into such a transaction, CMTB Group endeavors to established whereby the divisions that execute trans- ensure that customers have sufficient understanding of actions are clearly separate from the divisions that the content and risks entailed in such transactions. process the transactions, and overall management of (3) Risk Management for Financial Instruments market risk is consolidated under the Risk CMTB sets out basic framework of risk management in Management Department, which is independent of hoMtu se rs and Trust Asset Mitsui Chuo the Rules for Risk Management, establishing the Risk both the front and back offices and pinpoints the sta- Limited Company, Banking
Management Department which as a risk management tus of activities undertaken by both office categories. Data/ Financial coordinating function and striving to achieve adequate risk This department identifies and analyzes group-wide management. risk, tracks compliance with risk limits and reports to 1) Credit Risk Management the director in charge on a daily basis and to the CMTB’s basic policy for managing credit risk associated Executive Committee on a monthly basis.
with transactions involving credit arrangement is set out in Risks arising from the fluctuations of investment Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former the Rules for Credit Risk Management, while specific pro- interest rate and funding interest rate, are managed rs Group Trust cedures such as a rating system, assessment of assets and by the ALM at CMTB. For the purpose of ALM, the centralized credit risk management are set out in the Financial Planning Department supervises overall Rules for Corporation Credit Rating and other rules. ALM operations, and the Risk Management To determine whether to provide credit for individual Department is responsible for management and cases, the Credit Supervision Department independent analysis relating to ALM, such as risk monitoring. The ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former of the Marketing Department is conducting rigorous Risk Management Department is engaged in day-to- Inc. Holdings, Trust credit assessment and reviews in terms of the criteria day monitoring by using gap analysis and interest including purpose of loans, repayment capability, collat- rate sensitivity analysis based on the comprehensive eral effect and profitability on case-by-case basis. grasp of interest rates and terms/maturities of finan- Credit lines for derivative and other transactions are cial assets and liabilities, which are reported monthly established through strict procedures, in accordance to the ALM Committee established with the purpose akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The with trading standards provided separately. The compli- to discuss matters regarding ALM. The ALM Data/ Disclosure Quantitative II Basel ance status of such credit lines and other conditions is Committee also discusses the matters including the appropriately monitored. corporate policy for market-related transactions, development of cash planning and implementation of hedging operation. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 189 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
(b) Quantitative Information Regarding Market Risk 3) Liquidity Risk Management on Fund Raising a) Financial Instruments Held in Banking Account CMTB’s basic policy for managing liquidity risk is set CMTB calculates the Value at Risk (VaR) of financial out in the Rules for Cash Flow Risk Management. instruments held in banking account by historical sim- Liquidity risk is managed by Risk Management Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui ulation method (confidence interval: 99%, holding Department that monitors compliance with the prede- period: set in accordance with the components of termined guidelines on funding gap, while contingency instruments (maximum one year), and observation procedures are in place to enable flexible responses in period: 3 years). As of March 31, 2011, the total the event of an emergency. amount of market risks (estimated loss) for financial (4) Supplementary Explanation Concerning Fair Values of instruments held in banking account was ¥218.6 billion Financial Instruments
Financial Data/ ($2.6 billion). CMTB conducts the back testing in order Fair values of financial instruments are based on quoted The Chuo Mitsui Trust and
Banking Company, Limited to compare the VaR calculated by model with the prices in active markets. If a quoted price is not available, actual profits and losses. Through the results of the other rational valuation techniques are used instead. back testing in 2010, it confirms that the model covers Calculation of such fair value involves certain assumptions, the market risks precisely enough. Nonetheless, VaR and could vary when different assumptions are employed. measures the market risks under a certain event prob- ability calculated statistically on the basis of the histor- Financial Data/ ical market volatility and it could not cover the market Banking Company, Limited Chuo Mitsui Asset Trust and risk in case market environment changes drastically. b) Financial Instruments Held in Trading Account CMTB calculates the Value at Risk (VaR) of financial instruments held in trading account by historical sim- ulation method (confidence interval: 99%, holding Trust Group period :10 days, and observation period: 3 years). As Former Chuo Mitsui Basel II Qualitative Disclosure Data/ of March 31, 2011, the total amount of market risks (estimated loss) for financial instruments held in trad- ing account was ¥0.1 billion ($0.0 billion). CMTB conducts the back testing in order to com- pare the VaR calculated by model with the actual prof- its and losses. Through the results of the back testing Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ in 2010, it confirms that the model covers the market risks precisely enough. Nonetheless, VaR measures the market risks under a certain event probability cal- culated statistically on the basis of the historical mar- ket volatility and it could not cover the market risk in case market environment changes drastically. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
190 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
2. Fair Value of Financial Instruments are described below. Financial instruments such as unlisted Data/ Financial The carrying amount on the consolidated balance sheets Japanese stocks whose fair values are not readily deter- and fair value of financial instruments as of March 31, 2011 minable are not included in the table (See Notes B). and 2010 as well as the differences between these values
Millions of Yen Millions of U.S. Dollars Carrying Unrealized Carrying Unrealized akn opn,Limited Company, Banking
Fair Value Fair Value and Trust Mitsui Chuo The March 31, 2011 Amount Gain (Losses) Amount Gain (Losses)
(1) Cash and Cash Equivalents ¥ 438,270 ¥ 438,270 ¥— $ 5,270 $ 5,270 $— Data/ Financial (2) Due from Banks Other than Due from the Bank of Japan 36,872 36,872 — 443 443 — (3) Call Loans and Bills Bought 6,936 6,936 — 83 83 — (4) Receivables under Securities Borrowing Transactions 9,378 9,378 — 112 112 — (5) Monetary Claims Bought (*1) 99,842 100,413 571 1,200 1,207 6 hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking (6) Trading Assets Trading Securities 24,273 24,273 — 291 291 — Data/ Financial (7) Money Held in Trust 2,065 2,065 — 24 24 — (8) Securities Held-to-maturity Debt Securities 248,572 248,433 (138) 2,989 2,987 (1) Other Securities 3,128,343 3,128,343 — 37,622 37,622 — (9) Loans and Bills Discounted 8,864,266 106,605 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
Allowance for Loan Losses (*1) (46,731) (562) Mitsui Chuo Former 8,817,534 8,875,778 58,243 106,043 106,744 700 rs Group Trust Total Assets ¥ 12,812,089 ¥ 12,870,765 ¥ 58,675 $ 154,084 $ 154,789 $ 705 (1) Deposits ¥ 9,647,696 ¥ 9,682,445 ¥ 34,748 $ 116,027 $ 116,445 $ 417 (2) Call Money and Bills Sold 248,956 248,956 — 2,994 2,994 — (3) Payables under Securities Lending Transactions 1,161,653 1,161,653 — 13,970 13,970 —
(4) Borrowed Money 678,983 682,810 3,827 8,165 8,211 46 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former (5) Bonds Payable 267,247 272,476 5,229 3,214 3,276 62 Inc. Holdings, Trust (6) Due to Trust Account 801,657 801,657 — 9,641 9,641 — Total Liabilities ¥ 12,806,194 ¥ 12,849,999 ¥ 43,805 $ 154,013 $ 154,539 $ 526 Derivative Transactions (*2) To which Hedge Accounting is Not Applied ¥ 5,318 ¥ 5,318 ¥— $63$63 $— To which Hedge Accounting akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The is Applied 8,080 8,080 — 97 97 — Data/ Disclosure Quantitative II Basel Total Derivative Transactions ¥ 13,399 ¥ 13,399 ¥— $ 161 $ 161 $—
(*1) General as well as specific allowance for loan losses in respect of loans and bills discounted is excluded. As allowances for loan losses in respect of monetary claims bought are immaterial, it is deducted from the carrying amount. (*2) Derivative transactions included in trading assets and trading liabilities or other assets and other liabilities are collectively indicated. Receivables and payables incurred by derivative transactions are presented in net. Net payables are presented in parenthesis. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 191 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Yen
Carrying Fair Value Unrealized March 31, 2010 Amount Gain (Losses) (1) Cash and Cash Equivalents ¥ 225,570 ¥ 225,570 ¥—
Financial Data/ (2) Due from Banks Other than Trust Holdings, Inc. Former Chuo Mitsui Due from the Bank of Japan 24,286 24,286 — (3) Call Loans and Bills Bought (*1) 9,871 9,884 13 (4) Receivables under Securities Borrowing Transactions 1,521 1,521 — (5) Monetary Claims Bought (*1) 98,598 98,655 56 (6) Trading Assets Trading Securities 50 50 — Financial Data/ (7) Money Held in Trust 2,234 2,234 —
The Chuo Mitsui Trust and (8) Securities Banking Company, Limited Held-to-maturity Debt Securities 659,925 659,794 (131) Other Securities 3,537,062 3,537,062 — (9) Loans and Bills Discounted 8,941,948 Allowance for Loan Losses (*1) (51,873) 8,890,074 8,951,323 61,249 ¥ 13,449,196 ¥ 13,510,383 ¥ 61,187 Financial Data/ Total Assets (1) Deposits ¥ 9,127,480 ¥ 9,166,916 ¥ 39,436 Banking Company, Limited Chuo Mitsui Asset Trust and (2) Call Money and Bills Sold 217,161 217,161 — (3) Payables under Securities Lending Transactions 1,702,697 1,702,697 — (4) Borrowed Money 1,217,246 1,221,320 4,074 (5) Bonds Payable 234,750 237,844 3,093 (6) Due to Trust Account 995,612 995,612 — Trust Group Total Liabilities ¥ 13,494,949 ¥ 13,541,553 ¥ 46,603 Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Derivative Transactions (*2) To which Hedge Accounting is Not Applied ¥ (3,749) ¥ (3,749) ¥— To which Hedge Accounting is Applied 8,905 8,905 — Total Derivative Transactions ¥ 5,156 ¥ 5,156 ¥—
(*1) General as well as specific allowance for loan losses in respect of Call loans and bills bought, loans and bills discounted is excluded. As allowances for loan losses in respect of monetary claims bought are immaterial, it is deducted from the carrying amount. Trust Holdings, Inc. Former Chuo Mitsui (*2) Derivative transactions included in trading assets and trading liabilities or other assets and other liabilities are collectively indicated. Basel II Quantitative Disclosure Data/ Receivables and payables incurred by derivative transactions are presented in net. Net payables are presented in parenthesis. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
192 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Notes: A. Calculation method of fair values of financial instruments Data/ Financial
Assets Following an examination of the recent market environ- (1) Cash and cash equivalents and (2) Due from banks ment, market values of floating-rate Japanese government other than due from Bank of Japan bonds (JGBs) are believed to remain inappropriate to be Deposits without maturity are stated at their carrying treated as their fair values. Therefore reasonably assessed akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The amounts as their fair values approximate carrying values of floating-rate JGBs are recorded as the carrying iaca Data/ Financial amounts. Deposits with maturities with shorter deposit amount for the year ended March 31, 2010. Thus com- terms (within one year) are stated at their carrying amounts pared with the cases where market prices are recorded as as their fair values approximate carrying amounts. the carrying amounts, “Securities” increased by ¥8,013 (3) Call loans and bills bought and (4) Receivables under million, “Deferred tax assets” decreased by ¥3,255 million, securities borrowing transactions while “Valuation difference on available-for-sale securi- hoMtu se rs and Trust Asset Mitsui Chuo These are subject to shorter agreed periods (within one ties” increased by ¥4,757 million. Limited Company, Banking year), and are stated at their acquisition costs as their fair Reasonably assessed values of floating-rate JGBs are deter- Data/ Financial values approximate acquisition costs. mined based on the discounted cash flow method. Price- (5) Monetary claims bought determining variables include JGB yield and its volatility. Of the monetary claims bought, beneficiary certificates (9) Loans and bills discounted representing interest in a trust holding loan receivables Of loans and bills discounted, those with floating rates
are stated at the prices quoted by brokers. Other mone- reflect market rates at short intervals, whose fair values Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former tary claims bought with shorter agreed periods (within one approximate acquisition costs unless borrowers’ creditwor- rs Group Trust year), are stated at their acquisition costs as their fair val- thiness changes significantly after the loans are made, and ues approximate acquisition costs. acquisition costs are stated as the fair values. Meanwhile, (6) Trading assets those with fixed rates are stated at the fair values, as calcu- Securities including bonds held for trading purposes are lated by discounting principal and interest by the interest stated at the prices quoted by Japan Securities Dealers rate reflecting credit risk by category based on the nature ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Association. of loan, internal rating and term. Those loans with shorter Inc. Holdings, Trust (7) Money held in trust contract periods (within one year) are stated at acquisition Securities comprising trust assets in money held in trust cost which approximate their fair values. Claims under legal are stated at the prices quoted by brokers. bankruptcy, virtual bankruptcy and possible bankruptcy, (8) Securities whose expected amounts of loan losses are calculated Of securities of various categories; (i) equity securities based on the expected recoverable amounts from their akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The are stated at the prices quoted on the stock exchanges: collateral or guarantee, are stated at their acquisition costs Data/ Disclosure Quantitative II Basel (ii) privately offered corporate bonds are stated at the val- at the consolidation date less the current expected amount ues calculated by discounting principal and interest by of loan losses, which approximate their fair values. Of loans the interest rate reflecting credit risk, by category based and bills discounted, those without scheduled due dates on internal rating and term, (iii) other bonds are stated at thanks to the special conditions such as the ones limiting the prices published by Japan Securities Dealers the loan amounts within the values of pledged assets, are
Association or the prices quoted by brokers. stated at acquisition costs which are assumed to approxi- Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Investment trust beneficiary certificates are stated at the mate their fair values because of the estimated repayment official reference price published by securities investment period and interest rate conditions, etc. trust and management firms.
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 193 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Liabilities (4) Borrowed money (1) Deposits Borrowings are stated at their present values, as calcu- For demand deposits, the amount payable (carrying lated by discounting principal and interest by the interest amount) in case demand is made on the consolidation rate assumed for similar borrowings. Those borrowings Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui date is treated as their fair value. Meanwhile for time with shorter agreed periods (within one year) are stated at deposits, present values calculated by discounting future acquisition costs which approximate their fair values. cash flows by category based on terms, etc., by the inter- (5) Bonds payable est rate applicable to newly deposited savings are Bonds payable are stated at the prices quoted by Japan deemed to be their fair values. For time deposits with Securities Dealers Association, or in the absence of such shorter deposit terms (within one year) and those with market values, at their present values as calculated by dis-
Financial Data/ floating rates, carrying amounts approximate fair values, counting principal and interest by the interest rate The Chuo Mitsui Trust and
Banking Company, Limited and thus quoted as such. assumed for the similar bond issues. Negotiable certificates of deposit are all with shorter (6) Due to trust account deposit terms (within one year) and are stated at their car- Due to trust account is stated at the amounts payable rying amounts which approximate their fair values. (book value) in case demand is made on the consolida- (2) Call money and bills sold and (3) Payables under securi- tion date. ties lending transactions Financial Data/ These are subject to shorter contract periods (within Banking Company, Limited Derivative transactions Chuo Mitsui Asset Trust and one year), and are stated at their acquisition costs as their The information regarding derivatives transactions is fair values approximate acquisition costs. included in Note 28 “Derivative Information.”
Notes: B. Financial instruments whose fair values are not readily determinable are listed below. These items are not included in “Asset (8) Other securities” stated in fair value of financial instruments. Trust Group Millions of Former Chuo Mitsui Millions of Yen
Basel II Qualitative Disclosure Data/ U.S. Dollars 2011 2010 2011 Category Carrying Amount Carrying Amount Carrying Amount Unlisted Japanese Stocks (*) ¥ 87,454 ¥ 89,417 $ 1,051 Subscription Certificates (*) 123,443 119,785 1,484 Foreign Securities 9,914 8,735 119 Total ¥ 220,812 ¥ 217,938 $ 2,655 Trust Holdings, Inc. Former Chuo Mitsui Fair Values of these items are not disclosed because there is no market price, and it is very difficult to identify fair values. Basel II Quantitative Disclosure Data/ Securities in subsidiaries and associated companies are not included in the table. (*) For the year ended March 31, 2011, impairment losses of ¥299 million ($3 million) on unlisted Japanese stock and ¥155 million ($1 million) on subscription certificates were posted. For the year ended March 31, 2010, impairment losses of ¥498 million on unlisted Japanese stock were posted. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
194 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Notes: C. Scheduled redemption amount of monetary claims and securities with maturity after the balance sheet date. Data/ Financial
Millions of Yen 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Due from Banks ¥ 409,611 ¥—¥—¥—¥—¥— akn opn,Limited Company, Banking
Call Loans and Bills Bought 6,936 — — — — — and Trust Mitsui Chuo The Receivables under Securities iaca Data/ Financial Borrowing Transactions 9,378 — — — — — Monetary Claims Bought 33,489 5 225 6,014 — 60,186 Securities 110,272 1,003,670 527,909 476,629 349,649 483,874 Held-to-maturity Debt Securities 21,334 194,835 10,000 — — 22,405 Japanese Government Bonds — 135 — — — — Japanese Corporate Bonds — — — — — 22,405 hoMtu se rs and Trust Asset Mitsui Chuo Other Securities with Maturity 88,938 808,835 517,909 476,629 349,649 461,468 Limited Company, Banking
Japanese Government Bonds — 496,153 149,825 261,234 273,742 88,295 Data/ Financial Japanese Municipal Bonds — — 154 — — — Japanese Corporate Bonds 19,017 131,372 76,566 21,429 6,960 16,685 Loans and Bills Discounted (*) 3,052,750 1,552,986 986,954 466,573 493,778 2,014,269 Total ¥ 3,622,437 ¥ 2,556,662 ¥ 1,515,089 ¥ 949,217 ¥ 843,428 ¥ 2,558,329
(*) Of the loaned monies, ¥60,678 million ($729 million) that cannot envisage scheduled redemption amount such as claims under legal bankruptcy, virtual bankruptcy and pos- sible bankruptcy, and ¥234,218 million ($2,816 million) without specified terms are not included. ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former rs Group Trust Millions of Yen 2010 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Due from Banks ¥ 215,035 ¥—¥—¥— ¥—¥— Call Loans and Bills Bought 9,884 — — — — — ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former
Receivables under Securities Inc. Holdings, Trust Borrowing Transactions 1,521 — — — — — Monetary Claims Bought 24,522 — 1,009 674 — 72,748 Securities 689,482 861,295 1,058,822 263,942 398,784 422,067 Held-to-maturity Debt Securities 411,155 79,623 146,700 — — 22,445 Japanese Government Bonds 399,155 135 — — — — Japanese Corporate Bonds — — — — — 22,445 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Other Securities with Maturity 278,327 781,671 912,122 263,942 398,784 399,622 Data/ Disclosure Quantitative II Basel Japanese Government Bonds 196,228 499,179 379,993 1,934 337,055 129,151 Japanese Municipal Bonds 490 — — 153 — — Japanese Corporate Bonds 53,738 113,344 77,383 13,954 416 15,107 Loans and Bills Discounted (*) 2,875,574 1,752,678 864,238 306,764 403,055 2,401,545 Total ¥ 3,816,020 ¥ 2,613,974 ¥ 1,924,069 ¥ 571,381 ¥ 801,839 ¥ 2,896,361
(*) Of the loaned monies, ¥93,843 million that cannot envisage scheduled redemption amount such as claims under legal bankruptcy, virtual bankruptcy and possible bankrupt- cy, and ¥241,533 million without specified terms are not included. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 195 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years
Financial Data/ Due from Banks $ 4,926 $—$—$— $— $— Trust Holdings, Inc. Former Chuo Mitsui Call Loans and Bills Bought 83 — — — — — Receivables under Securities Borrowing Transactions 112 — — — — — Monetary Claims Bought 402 0 2 72 — 723 Securities 1,326 12,070 6,348 5,732 4,205 5,819 Held-to-maturity Debt Securities 256 2,343 120 — — 269 Japanese Government Bonds — 1 — — — — Financial Data/ Japanese Corporate Bonds — — — — — 269 The Chuo Mitsui Trust and
Banking Company, Limited Other Securities with Maturity 1,069 9,727 6,228 5,732 4,205 5,549 Japanese Government Bonds — 5,966 1,801 3,141 3,292 1,061 Japanese Municipal Bonds — — 1 — — — Japanese Corporate Bonds 228 1,579 920 257 83 200 Loans and Bills Discounted (*) 36,713 18,676 11,869 5,611 5,938 24,224 Total $ 43,565 $ 30,747 $ 18,221 $ 11,415 $ 10,143 $ 30,767 Financial Data/ Banking Company, Limited Chuo Mitsui Asset Trust and Notes: D. Amounts of repayment of Japanese corporate bonds, borrowed money and other interest-bearing liabilities, scheduled after the consolidation date.
Millions of Yen 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Trust Group Deposits (*) ¥ 6,048,773 ¥ 2,282,348 ¥ 1,238,722 ¥ 64,817 ¥ 13,033 ¥— Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Call Money and Bills Sold 248,956 — — — — — Payables under Securities Lending Transactions 1,161,653 — — — — — Borrowed Money 588,328 20,489 65,165 5,000 — — Bonds Payable — 55,000 156,147 — 40,000 16,100 Due to Trust Account 801,657 — — — — — Total ¥ 8,849,369 ¥ 2,357,837 ¥ 1,460,035 ¥ 69,817 ¥ 53,033 ¥ 16,100 Trust Holdings, Inc. Former Chuo Mitsui (*) Of deposits, demand deposits are included in “within one year.” Also deposits include current deposits. Basel II Quantitative Disclosure Data/
Millions of Yen 2010 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Deposits (*) ¥ 5,355,804 ¥ 2,456,425 ¥ 1,246,313 ¥ 63,046 ¥ 5,889 ¥— Call Money and Bills Sold 217,161 — — — — — Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Payables under Securities Lending Transactions 1,702,697 — — — — — Borrowed Money 1,128,924 18,122 65,199 5,000 — — Bonds Payable — 55,000 83,000 70,650 10,000 16,100 Due to Trust Account 995,612 — — — — — Total ¥ 9,400,200 ¥ 2,529,547 ¥ 1,394,513 ¥ 138,697 ¥ 15,889 ¥ 16,100
(*) Of deposits, demand deposits are included in “within one year.” Also deposits include current deposits. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
196 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of U.S. Dollars Data/ Financial 2011 Within One to Three to Five to Seven to Over One Year Three Years Five Years Seven Years Ten Years Ten Years Deposits (*) $ 72,745 $ 27,448 $ 14,897 $ 779 $ 156 $— Call Money and Bills Sold 2,994 — — — — —
Payables under Securities Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Lending Transactions 13,970 — — — — — Borrowed Money 7,075 246 783 60 — — Data/ Financial Bonds Payable — 661 1,877 — 481 193 Due to Trust Account 9,641 — — — — — Total $ 106,426 $ 28,356 $ 17,559 $ 839 $ 637 $ 193
Securities hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking iaca Data/ Financial In addition to “Securities” on the consolidated balance sheet, the following information includes other monetary claims bought in Monetary claims bought and trading account securities and commercial papers in Trading assets.
1. Trading Securities
Valuation Difference
Reflected on the Statements of Income Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Millions of Yen Millions of U.S. Dollars Group Trust March 31 2011 2010 2011 Trading Securities ¥ (35) ¥ (52) $(0)
2. Held-to-maturity Debt Securities
Millions of Yen Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Type of Bond Carrying Amount Fair Value Unrealized Gains March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Government Bonds ¥ 135 ¥ 136 ¥0 Japanese Corporate Bonds 22,405 22,676 270 Others 176,263 177,276 1,012 Subtotal 198,805 200,090 1,284 Securities with Unrealized Losses Others 98,422 97,491 (931) akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Total ¥ 297,227 ¥ 297,581 ¥ 353
Millions of Yen
Type of Bond Carrying Amount Fair Value Unrealized Gains March 31, 2010 (Losses) Securities with Unrealized Gains Japanese Government Bonds ¥ 399,291 ¥ 401,557 ¥ 2,265 Japanese Corporate Bonds 22,445 22,761 315
Others 61,436 62,120 683 Data/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Subtotal 483,173 486,438 3,264 Securities with Unrealized Losses Others 237,908 234,348 (3,559) Total ¥ 721,082 ¥ 720,787 ¥ (294)
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 197 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars
Type of Bond Carrying Amount Fair Value Unrealized Gains March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Government Bonds $1 $1 $0
Financial Data/ Japanese Corporate Bonds 269 272 3 Trust Holdings, Inc. Former Chuo Mitsui Others 2,119 2,132 12 Subtotal 2,390 2,406 15 Securities with Unrealized Losses Others 1,183 1,172 (11) Total $ 3,574 $ 3,578 $4
3. Available-for-sale Securities
Financial Data/ Millions of Yen
The Chuo Mitsui Trust and Unrealized Gains Banking Company, Limited Type of Bond Carrying Amount Acquisition Cost March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Stocks ¥ 291,768 ¥ 199,111 ¥ 92,656 Bonds 293,892 288,558 5,333 Japanese Government Bonds 154,977 152,281 2,696 Japanese Municipal Bonds 154 149 4 Japanese Corporate Bonds 138,760 136,127 2,632 Financial Data/ Others 311,152 306,914 4,237 Banking Company, Limited Chuo Mitsui Asset Trust and Subtotal 896,813 794,585 102,228 Securities with Unrealized Losses Japanese Stocks 195,033 249,473 (54,439) Bonds 1,247,543 1,265,852 (18,308) Japanese Government Bonds 1,114,272 1,131,265 (16,993) Japanese Corporate Bonds 133,270 134,586 (1,315) Others 806,728 839,485 (32,757)
Trust Group Subtotal 2,249,305 2,354,812 (105,506)
Former Chuo Mitsui Total ¥ 3,146,119 ¥ 3,149,397 ¥ (3,278) Basel II Qualitative Disclosure Data/
Millions of Yen
Type of Bond Carrying Amount Acquisition Cost Unrealized Gains March 31, 2010 (Losses) Securities with Unrealized Gains Japanese Stocks ¥ 361,705 ¥ 243,680 ¥ 118,025 Bonds 456,806 446,895 9,911 Japanese Government Bonds 319,259 310,926 8,333 Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Japanese Municipal Bonds 644 639 4 Japanese Corporate Bonds 136,902 135,328 1,573 Others 285,046 282,148 2,897 Subtotal 1,103,558 972,723 130,834 Securities with Unrealized Losses Japanese Stocks 186,268 231,287 (45,019) Bonds 1,361,324 1,374,873 (13,549) Japanese Government Bonds 1,224,282 1,236,525 (12,242) Japanese Corporate Bonds 137,042 138,348 (1,306) Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Others 899,186 924,397 (25,210) Subtotal 2,446,779 2,530,558 (83,779) Total ¥ 3,550,337 ¥ 3,503,282 ¥ 47,055 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
198 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of U.S. Dollars Data/ Financial
Type of Bond Carrying Amount Acquisition Cost Unrealized Gains March 31, 2011 (Losses) Securities with Unrealized Gains Japanese Stocks $ 3,508 $ 2,394 $ 1,114 Bonds 3,534 3,470 64 Japanese Government Bonds 1,863 1,831 32 Japanese Municipal Bonds 1 1 0 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Japanese Corporate Bonds 1,668 1,637 31
Others 3,742 3,691 50 Data/ Financial Subtotal 10,785 9,556 1,229 Securities with Unrealized Losses Japanese Stocks 2,345 3,000 (654) Bonds 15,003 15,223 (220) Japanese Government Bonds 13,400 13,605 (204) Japanese Corporate Bonds 1,602 1,618 (15) hoMtu se rs and Trust Asset Mitsui Chuo Others 9,702 10,096 (393) Limited Company, Banking Subtotal 27,051 28,320 (1,268) iaca Data/ Financial Total $ 37,836 $ 37,876 $ (39)
4. Held-to-maturity Debt Securities Sold during the Current Fiscal Year
Millions of Yen
Acquisition Cost Sales Amount Gains (Losses) on From April 1, 2010 to March 31, 2011 of Sales Amount Sales Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Japanese Government Bonds ¥ 399,155 ¥ 400,515 ¥ 1,359 rs Group Trust (Reason for sales) Bonds were sold before maturity, in accordance with article 282, paragraph 1 of “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting Standard Committee Report No.14).
Millions of Yen Acquisition Cost Gains (Losses) on
Sales Amount Data/ Disclosure Quantitative II Basel From April 1, 2009 to March 31, 2010 of Sales Amount Sales omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Japanese Government Bonds ¥ 198,921 ¥ 200,169 ¥ 1,247 Other 2,175 4,027 1,852 Total ¥ 201,096 ¥ 204,196 ¥ 3,099
(Reason for sales) Bonds were sold before maturity, in accordance with article 282, paragraph 1 of “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting Standard Committee Report No.14) and sold with credit deterioration in accordance with article 83, paragraph 1 of the guidelines. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Millions of U.S. Dollars
Acquisition Cost Sales Amount Gains (Losses) on From April 1, 2010 to March 31, 2011 of Sales Amount Sales Japanese Government Bonds $ 4,800 $ 4,816 $16
5. Available-for-sale Securities Sold during the Current Fiscal Year
Millions of Yen ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking From April 1, 2010 to March 31, 2011 Sales Amount Gains on Sales Losses on Sales Japanese Stocks ¥ 59,830 ¥ 16,220 ¥ 2,929 Bonds 5,198,251 9,691 3,134 Japanese Government Bonds 5,099,968 9,310 3,129 Japanese Corporate Bonds 98,282 380 4 Others 2,140,986 25,497 4,243 Total ¥ 7,399,067 ¥ 51,410 ¥ 10,307
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 199 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Yen From April 1, 2009 to March 31, 2010 Sales Amount Gains on Sales Losses on Sales Japanese Stocks ¥ 72,793 ¥ 17,754 ¥ 974 Bonds 4,693,067 7,747 2,096
Financial Data/ Japanese Government Bonds 4,604,510 7,417 2,093 Trust Holdings, Inc. Former Chuo Mitsui Japanese Corporate Bonds 88,557 329 3 Others 1,762,509 11,548 1,771 Total ¥ 6,528,370 ¥ 37,049 ¥ 4,842
Millions of U.S. Dollars From April 1, 2010 to March 31, 2011 Sales Amount Gains on Sales Losses on Sales
Financial Data/ Japanese Stocks $ 719 $ 195 $35 Bonds 62,516 116 37 The Chuo Mitsui Trust and Banking Company, Limited Japanese Government Bonds 61,334 111 37 Japanese Corporate Bonds 1,181 4 0 Others 25,748 306 51 Total $ 88,984 $ 618 $ 123
Financial Data/ 6. Impairment of Securities Normal issuers: Fair value is 30% or more lower than Banking Company, Limited Chuo Mitsui Asset Trust and Available-for-sale securities with fair value are consid- acquisition cost. ered as impaired if the fair value decreases significantly Within the normal issuers under the rules of self-assess- below the acquisition cost and such decline is not consid- ment above, when the fair value of which security is 30% or ered as recoverable. The fair value is recognized as the more but less than 50% lower than acquisition cost, the consolidated balance sheet amount and the amount of security is judged individually, and unless the decline in its
Trust Group impairment is accounted for as valuation loss for the cur- fair value below the cost is temporary, the security is
Former Chuo Mitsui rent fiscal year. accounted as impaired. All others are considered as the Basel II Qualitative Disclosure Data/ For the fiscal year ended March 31, 2011, Impairment decline in fair value below the cost is other than tempo- losses were ¥6,336 million ($76 million), which included rary, and treated as impaired. ¥6,237 million ($75 million) of Japanese stocks and ¥99 mil- Legal bankrupt issuers: Issuers that are legally bankrupt lion ($1 million) of Japanese corporate bonds. or formally declared bankrupt. For the fiscal year ended March 31, 2010, Impairment Virtual bankrupt issuers: Issuers that are not legally losses were ¥1,583 million, which includes ¥1,569 million of bankrupt but regarded as substantially bankrupt. Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Japanese stocks. Possible bankrupt issuers: Issuers that are not currently The internal policy on determining that decline in the bankrupt, but are perceived to have a high risk of falling fair value represents a condition of “significant decline.” into bankruptcy. Legal bankrupt/Virtual bankrupt/Possible bankrupt Issuers requiring caution: Issuers that are identified for issuers: Fair value is lower than acquisition cost. close monitoring. Issuers requiring caution: Fair value is 30% or more Normal issuers: Issuers other than the above four cate- lower than acquisition cost. gories of issuers. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
200 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Money Held in Trust Data/ Financial
1. Money Held in Trust for Trading Purpose There were no corresponding items as of March 31, 2011 and 2010.
2. Money Held in Trust being Held to Maturity Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The There were no corresponding items as of March 31, 2011 and 2010. iaca Data/ Financial
3. Other Money Held in Trust (other than for trading purpose and being held to maturity)
Millions of Yen
Carrying Amount Acquisition Cost Difference Positive Negative March 31, 2011 Difference Difference Other Money Held in Trust ¥ 2,065 ¥ 1,700 ¥ 364 ¥ 364 ¥ — hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Note: Each of Positive Difference and Negative Difference is the components of Difference. iaca Data/ Financial
Millions of Yen
Carrying Amount Acquisition Cost Difference Positive Negative March 31, 2010 Difference Difference Other Money Held in Trust ¥ 2,234 ¥ 1,694 ¥ 540 ¥ 540 ¥ —
Note: Each of Positive Difference and Negative Difference is the components of Difference. ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former rs Group Trust Millions of U.S. Dollars
Carrying Amount Acquisition Cost Difference Positive Negative March 31, 2011 Difference Difference Other Money Held in Trust $ 24 $ 20 $4 $4 $—
Note: Each of Positive Difference and Negative Difference is the components of Difference. ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 201 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
28. Derivatives Information
1. Derivatives to which Hedge Accounting is Not Applied Contract or notional amount, fair value, unrealized gains (losses) and calculation method of fair value are as follows: Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui Note that contract or notional amounts do not represent the market risk exposure associated with the derivatives.
(1) Interest Rate Transactions
Millions of Yen 2011 2010 Contract or Contract or Unrealized Notional Amount Fair Unrealized Notional Amount Fair Financial Data/ Gains Gains Over Value (Losses) Over Value (Losses) Total One Year Total One Year The Chuo Mitsui Trust and Banking Company, Limited Over-the-counter: Interest Rate Swaps: Fixed Rate Receipt, Floating Rate Payment ¥ 6,411,695 ¥ 5,625,450 ¥ 127,940 ¥ 127,940 ¥ 5,210,194 ¥ 3,794,889 ¥ 148,272 ¥ 148,272 Floating Rate Receipt, Fixed rate Payment 6,399,587 5,580,007 (123,069) (123,069) 5,134,979 3,747,950 (145,257) (145,257) Financial Data/ Floating Rate Receipt, Banking Company, Limited Chuo Mitsui Asset Trust and Floating Rate Payment 32,200 32,200 2,644 2,644 32,200 32,200 2,821 2,821 Interest Rate Swaptions: Selling 80,400 52,150 (1,763) 454 57,150 37,750 (1,284) 161 Buying 103,524 61,459 2,200 1,502 77,078 45,329 1,565 1,051 Others: Selling 56,747 20,974 (58) 7 56,551 56,498 (67) 143 Buying 96,229 60,974 57 (2) 95,920 95,920 67 (31) Trust Group Total — — ¥ 7,951 ¥ 9,476 — — ¥ 6,119 ¥7,162 Former Chuo Mitsui Basel II Qualitative Disclosure Data/
Millions of U.S. Dollars 2011 Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Over-the-counter: Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Interest Rate Swaps: Fixed Rate Receipt, Floating Rate Payment $ 77,109 $ 67,654 $ 1,538 $ 1,538 Floating Rate Receipt, Fixed Rate Payment 76,964 67,107 (1,480) (1,480) Floating Rate Receipt, Floating Rate Payment 387 387 31 31 Interest Rate Swaptions: Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Selling 966 627 (21) 5 Buying 1,245 739 26 18 Others: Selling 682 252 (0) 0 Buying 1,157 733 0 (0) Total — — $95$ 113
Note: Fair value is calculated according to discounted present value, the option pricing model and other valuation techniques. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
202 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Currency Transactions Data/ Financial
Millions of Yen 2011 2010 Contract or Contract or Unrealized Notional Amount Fair Notional Amount Fair Unrealized Value Gains Gains Over (Losses) Over Value (Losses) Total One Year Total One Year akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Over-the-counter:
Currency Rate Swaps ¥ 41,575 ¥ 41,575 ¥ 78 ¥ 78 ¥ 48,375 ¥ 46,515 ¥ 132 ¥ 132 Data/ Financial Foreign Exchange Contracts: Selling 1,565,752 9,759 (28,998) (28,998) 1,041,461 385 (29,707) (29,707) Buying 1,627,638 30,826 26,666 26,666 1,058,211 777 30,483 30,483 Total — — ¥ (2,253) ¥ (2,253) — — ¥ 907 ¥ 907 hoMtu se rs and Trust Asset Mitsui Chuo Millions of U.S. Dollars Limited Company, Banking
2011 Data/ Financial Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Over-the-counter: Currency Rate Swaps $ 500 $ 500 $0$0
Foreign Exchange Contracts: Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Selling 18,830 117 (348) (348) rs Group Trust Buying 19,574 370 320 320 Total — — $ (27) $ (27) Note: Fair value is calculated according to discounted present value, the option pricing model and other valuation techniques.
(3) Stock Transactions
There was no contract or notional amount of stock transactions as of March 31, 2011. Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Millions of Yen 2010 Contract or Notional Amount Fair Unrealized Gains Over Value (Losses) Total One Year Listed: akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Stock Index Options: Selling ¥ 475 ¥— ¥(0) ¥4 Buying 1,987 — 0 (33) Total — — ¥0 ¥ (28)
Note: Fair value is calculated according to closing market prices on the stock exchanges, such as the Tokyo Stock Exchange. ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 203 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
(4) Bond Transactions
Millions of Yen 2011 2010 Contract or Contract or
Financial Data/ Notional Amount Unrealized Notional Amount Unrealized Fair Gains Fair Gains Trust Holdings, Inc. Former Chuo Mitsui Over Value (Losses) Over Value (Losses) Total One Year Total One Year Listed: Bond Future: Selling ¥ 13,962 ¥—¥7¥7 — — — — Bond Future Options: Buying — — — — ¥ 31,093 ¥—¥ 49 ¥ (26) Financial Data/
The Chuo Mitsui Trust and Millions of U.S. Dollars Banking Company, Limited 2011 Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Listed:
Financial Data/ Bond Future: Banking Company, Limited Chuo Mitsui Asset Trust and Selling $167$—$0$0
Note: Fair value is calculated according to closing market prices on the stock exchanges, such as the Tokyo Stock Exchange and the prices offered by information venders.
(5) Credit Derivative Transactions
Millions of Yen
Trust Group 2011 2010 Contract or Contract or Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Notional Amount Unrealized Notional Amount Unrealized Fair Gains Fair Gains Over Value Value Total (Losses) Over (Losses) One Year Total One Year Over-the-counter: Credit Default Swaps: Selling ¥ 5,000 ¥ 5,000 ¥ (386) ¥ (386) ¥ 15,000 ¥ 15,000 ¥ (10,826) ¥ (10,826)
Trust Holdings, Inc. Millions of U.S. Dollars Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ 2011 Contract or Notional Amount Unrealized Fair Gains Over Value (Losses) Total One Year Over-the-counter: Credit Default Swaps: Selling $ 60$60$(4)$(4) Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Notes: 1. The fair values of these credit default swaps were determined based on the values reasonably estimated by using our own calculation methods. The values reasonably estimated by using our own calculation methods are calculated by the theory value model on the basis of analysis such as price change chronological order compari- son of the market price of the credit default swap and a price comparison between similar articles. 2. “Selling” refers to acceptance transactions on credit risk. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
204 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
The fair values of some credit default swaps in derivatives culation methods are calculated by the theory value Data/ Financial were previously measured at the prices offered by brokers. model on the basis of analysis such as price change However, a judgment has been made by management that chronological order comparison of the market price of the the current market prices are not indicative of fair values. At credit default swap and a price comparison between simi- the end of the fiscal year 2010, the fair values of these credit lar articles. default swaps were determined based on the values rea- akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The sonably estimated by using our own calculation methods. 2. Derivatives to which Hedge Accounting is Applied iaca Data/ Financial As a result, other liabilities and other ordinary expenses Contract or notional amount, fair value, unrealized gains decreased by and income before income taxes and minority (losses) and calculation method of fair value are as follows: interests increased by ¥1,537 million, respectively. Note that contract or notional amounts do not represent The values reasonably estimated by using our own cal- the market risk exposure associated with the derivatives. hoMtu se rs and Trust Asset Mitsui Chuo (1) Interest Rate Transactions Limited Company, Banking
Millions of Yen Data/ Financial 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Primary Method Interest Rate Swaps:
Fixed Rate Receipt Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Floating Rate Payment Securities ¥ 100,000 ¥ 100,000 ¥ 3,173 Floating Rate Receipt Group Trust Fixed Rate Payment Securities 100,000 100,000 (4,160) Fixed Rate Receipt Floating Rate Payment Borrowed Money 17,500 15,000 266 Fixed Rate Receipt Floating Rate Payment Bonds Payable 108,147 108,147 8,766 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Total — — ¥ 8,046 Inc. Holdings, Trust
Millions of Yen 2010 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Primary Method Interest Rate Swaps: Data/ Disclosure Quantitative II Basel Fixed Rate Receipt Floating Rate Payment Securities ¥ 100,000 ¥ 100,000 ¥ 1,592 Floating Rate Receipt Fixed Rate Payment Securities 100,000 100,000 (2,610) Fixed Rate Receipt Floating Rate Payment Borrowed Money 17,500 17,500 344 Fixed Rate Receipt ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo Floating Rate Payment Bonds Payable 115,650 115,650 8,535 Limited Company, Banking Fixed Rate Receipt Floating Rate Payment Deposits 70,579 — 4 Total — — ¥ 7,866
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 205 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Total Over One Year Value
Financial Data/ Method Derivatives Item Trust Holdings, Inc. Former Chuo Mitsui Primary Method Interest Rate Swaps: Fixed Rate Receipt Floating Rate Payment Securities $ 1,202 $ 1,202 $38 Floating Rate Receipt Fixed Rate Payment Securities 1,202 1,202 (50) Fixed Rate Receipt Floating Rate Payment Borrowed Money 210 180 3 Financial Data/ Fixed Rate Receipt The Chuo Mitsui Trust and Banking Company, Limited Floating Rate Payment Bonds Payable 1,300 1,300 105 Total — — $ 96
Notes: 1. These transactions are accounted for using the deferral hedge accounting individually in accordance with JICPA Guidance on Accounting Standard for Financial Instruments. 2. Fair values are calculated according to discounted present value.
(2) Currency Transactions
Financial Data/ Millions of Yen Banking Company, Limited Chuo Mitsui Asset Trust and 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Primary Method Foreign Exchange Forward Contracts: Buying Bonds Payable ¥ 2,844 ¥ 2,183 ¥ (39) Trust Group
Former Chuo Mitsui Millions of Yen Basel II Qualitative Disclosure Data/ 2010 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Primary Method Foreign Exchange Forward Contracts: Buying Bonds Payable ¥ 3,523 ¥ 2,844 ¥ 249 Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Millions of U.S. Dollars 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Primary Method Foreign Exchange Forward Contracts: Buying Bonds Payable $ 34 $ 26 $ (0)
Notes: 1. These transactions are accounted for using the deferral hedge accounting individually in accordance with JICPA Guidance on Accounting Standard for Financial Instruments. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited 2. Fair values are calculated according to discounted present value. Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
206 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(3) Bond Transactions Data/ Financial
Millions of Yen 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year akn opn,Limited Company, Banking
Method of Recognizing Gains or Bond OTC Options: and Trust Mitsui Chuo The Losses on Hedged Items Selling Securities ¥ 490,000 ¥— ¥ (99) iaca Data/ Financial Buying Securities 490,000 — 173 Total — — ¥74
Millions of Yen 2010 Contract or Notional Amount hoMtu se rs and Trust Asset Mitsui Chuo Fair Limited Company, Banking Hedge Accounting Type of Major Hedged Total Over One Year Value
Method Derivatives Item Data/ Financial Primary Method Bond Forward Agreements: Selling Securities ¥ 18,730 ¥— ¥ (14) Method of Recognizing Gains or Bond OTC Options: Losses on Hedged Items Selling Securities 605,000 — (19) Buying Securities 605,000 — 824
Total — — ¥ 789 Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former
Millions of U.S. Dollars Group Trust 2011 Contract or Notional Amount Fair Hedge Accounting Type of Major Hedged Value Method Derivatives Item Total Over One Year Method of Recognizing Gains or Bond OTC Options: ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former
Losses on Hedged Items Selling Securities $ 5,892 $— $(1) Inc. Holdings, Trust Buying Securities 5,892 — 2 Total — — $0
Note: Fair values are calculated according to the prices offered by information vendors, the option pricing model and other valuation techniques. akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 207 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
29. Segment Information
CMTB Group applied ASBJ Statement No.17 “Accounting CMTB is principally engaged in the retail investment busi- Standard for Segment Information Disclosures” (revised on ness (sales of investment trust, individual annuity insurance Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui March 27, 2009) and ASBJ Guidance No.20 “Guidance on and other products), lending related business (corporate Accounting Standard for Segment Information Disclosures” loans, mortgage loans, real estate asset finance, etc.), real from this fiscal year end. estate business, securities transfer agency business and other.
1. Segment Information (2) The method of calculation of ordinary income, profit or loss, (1) Outline of Reportable Segments assets, liabilities and other items by reportable segment
Financial Data/ A reportable segment for CMTB Group is a component Accounting policies adopted by the reported operating The Chuo Mitsui Trust and
Banking Company, Limited unit that constitutes a business for which discrete financial segments are same as those described in Note 2 information is available and is regularly reviewed by the “Summary of Significant Accounting Policies.” Profit for Board of Directors to determine the allocation of manage- reportable segments is determined based on income ment resources and assess its performance. before income taxes and minority interests for this period. CMTB Group has established a management system In allocating income before income taxes and minority which enables each group company to conduct its operat- interests, the values of internal transactions are treated Financial Data/ ing activities independently. CMTH, the holding company, consistently as those held with external customers. Banking Company, Limited Chuo Mitsui Asset Trust and aims to maximize CMTH Group profits by ensuring an In Note 29, ordinary income represents total income appropriate allocation of management resources to each less extraordinary income, and ordinary expenses repre- operating division. sents total expenses less Extraordinary loss. Accordingly, CMTB Groups’ reportable segments are distinguished at the company level. Thus, CMTB is defined Trust Group as reportable segments: Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
208 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(3) Information about ordinary income, profit or loss, assets, liabilities and other items by reportable segment Data/ Financial
Millions of Yen 2011
CMTB Other Total Adjustment Carrying Amount Ordinary Income: akn opn,Limited Company, Banking
External Customers ¥ 287,621 ¥ 18,732 ¥ 306,354 ¥—¥ 306,354 and Trust Mitsui Chuo The Intersegment 961 15,772 16,733 (16,733) — iaca Data/ Financial Total 288,582 34,504 323,087 (16,733) 306,354 Segment Profit 68,412 4,072 72,484 4,060 76,544 Segment Assets 13,791,942 216,632 14,008,575 18,536 14,027,112 Segment Liabilities 13,055,323 57,155 13,112,478 191,069 13,303,547 Other Items Depreciation and Amortization ¥ 10,072 ¥ 1,068 ¥ 11,141 ¥ (317) ¥ 10,823 hoMtu se rs and Trust Asset Mitsui Chuo Interest Income 158,103 2,604 160,707 (358) 160,348 Limited Company, Banking
Interest Expenses 59,636 211 59,848 (242) 59,606 Data/ Financial Extraordinary Income 8,136 1,107 9,243 (1,413) 7,830 (Recoveries of written-off claims) 5,819 1,107 6,926 — 6,926 Extraordinary Loss 4,770 340 5,110 (480) 4,630 (Management integration expenses) 3,372 — 3,372 (480) 2,891
Millions of Yen Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former 2010 rs Group Trust CMTB Other Total Adjustment Carrying Amount Ordinary Income: External Customers ¥ 304,212 ¥ 17,183 ¥ 321,395 ¥—¥ 321,395 Intersegment 2,048 15,810 17,858 (17,858) — Total 306,260 32,994 339,254 (17,858) 321,395 ae IQatttv icoueData/ Disclosure Quantitative II Basel
Segment Profit 74,647 1,111 75,758 (2,889) 72,869 Mitsui Chuo Former rs odns Inc. Holdings, Trust Segment Assets 14,481,460 212,703 14,694,163 92,492 14,786,655 Segment Liabilities 13,749,429 59,514 13,808,944 264,344 14,073,289 Other Items Depreciation and Amortization ¥ 9,002 ¥ 1,090 ¥ 10,093 ¥ (303) ¥ 9,789 Interest Income 180,444 2,555 183,000 (1,611) 181,389 Interest Expenses 68,881 191 69,073 (273) 68,800 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Extraordinary Income 3,443 821 4,265 (1,685) 2,579 Data/ Disclosure Quantitative II Basel (Recoveries of written-off claims) 1,444 702 2,147 — 2,147 Extraordinary Loss 731 370 1,102 (4) 1,097 (Management integration expenses) 428 — 428 — 428 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 209 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
Millions of U.S. Dollars 2011
CMTB Other Total Adjustment Carrying Amount
Financial Data/ Ordinary Income: Trust Holdings, Inc. Former Chuo Mitsui External Customers $ 3,459 $ 225 $ 3,684 $— $ 3,684 Intersegment 11 189 201 (201) — Total 3,470 414 3,885 (201) 3,684 Segment Profit 822 48 871 48 920 Segment Assets 165,868 2,605 168,473 222 168,696 Segment Liabilities 157,009 687 157,696 2,297 159,994 Other Items Financial Data/ Depreciation and Amortization $ 121 $12 $ 133 $(3) $ 130 The Chuo Mitsui Trust and
Banking Company, Limited Interest Income 1,901 31 1,932 (4) 1,928 Interest Expenses 717 2 719 (2) 716 Extraordinary Income 97 13 111 (17) 94 (Recoveries of written-off claims) 69 13 83 — 83 Extraordinary Loss 57 4 61 (5) 55 (Management integration expenses) 40 — 40 (5) 34
Financial Data/ Notes: 1. “Ordinary income” corresponds to “Net sales” of financial products and services. The adjustment shows the difference between ordinary income for management reporting purpose and for the purpose of preparing consolidated statements of income. Banking Company, Limited Chuo Mitsui Asset Trust and 2. “Other” consists of consolidated subsidiaries other than CMTB, and segments not included in reportable segments. 3. “Adjustment” includes the eliminations and adjustments required for internal transactions. In addition, adjustments of segment assets and segment liabilities include ¥267,368 million ($3,215 million) and ¥335,960 million for the fiscal year ended March 31, 2011 and 2010, respectively related to “Customers’ liabilities for acceptances and guarantees” and “Acceptance and guarantee” for mortgage loans. 4. Segment profit has been calculated in line with income before income taxes and minority interests as adjusted in the consolidated statement of income.
2. Related Information Trust Group The fiscal year ended March 31, 2011 Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ (1) Information by Service
Millions of Yen 2011 Corporate Consumer Business Loans Market Other Total Ordinary Income from External Customers ¥ 61,451¥ 57,424 ¥ 62,128 ¥ 125,348 ¥ 306,354 Trust Holdings, Inc. Former Chuo Mitsui Millions of U.S. Dollars Basel II Quantitative Disclosure Data/ 2011 Corporate Consumer Business Loans Market Other Total Ordinary Income from External Customers $ 739$ 690 $ 747 $ 1,507 $ 3,684
Note: “Ordinary income” corresponds to “Net Sales” of financial products and services. Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
210 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Information by Geographical Region geographical region, since tangible fixed assets located in Data/ Financial 1) Ordinary Income Japan exceeds 90% of total tangible fixed assets of the CMTB Group omits ordinary income information by consolidated balance sheet as of March 31, 2011. geographical region, since ordinary income generated from transactions with domestic external customers (3) Information by Major Customer exceeds 90% of ordinary income of the consolidated CMTB Group omits major customer information, since akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The statement of income for this period. there is no particular customer who accounts for more iaca Data/ Financial 2) Tangible Fixed Assets than 10% of ordinary income of the consolidated state- CMTB Group omits tangible fixed asset information by ment of income for this period.
3. Information about Loss on Impairment of Fixed Assets by Reportable Segment
Millions of Yen hoMtu se rs and Trust Asset Mitsui Chuo 2011 Limited Company, Banking
Eliminations/ Data/ Financial CMTB Other Corporate Total Loss on Impairment of Fixed Assets ¥ 522¥— ¥ — ¥ 522
Millions of U.S. Dollars 2011 Eliminations/ CMTB Other Total Data/ Disclosure Qualitative II Basel Corporate Mitsui Chuo Former
Loss on Impairment of Fixed Assets $6$— $ — $ 6 Group Trust
4. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of Yen 2011 Eliminations/ CMTB Other Corporate Total Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Amortized in the Fiscal Year Ended March 31, 2011 ¥— ¥— ¥ 558 ¥ 558 Balance as of March 31, 2011 — — 6,997 6,997
Millions of U.S. Dollars 2011 Eliminations/ CMTB Other Corporate Total akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Amortized in the Fiscal Year Ended March 31, 2011 $— $— $6 $6 Balance as of March 31, 2011 — — 84 84
Note: Major details as follows: Amortized in the fiscal year ended March 31, 2011 Tokyo Securities Transfer Agent ¥ 499 million ($ 6 million) Balance as of March 31, 2011 Tokyo Securities Transfer Agent ¥6,997 million ($84 million) ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 211 Financial Data: Notes to Consolidated Financial Statements Trust Group Financial Summary/ Former Chuo Mitsui
5. Information about Gain on Negative Goodwill by Reportable Segment There is no information applicable to this disclosure.
The following segment information for the fiscal year ended March 31, 2010 was not applied the revised Accounting Financial Data/ Trust Holdings, Inc.
Former Chuo Mitsui Standard and Guidance, ASBJ Statement No.17 and Guidance No.20.
6. Business Segment Information
Millions of Yen 2010
Trust and Other Eliminations/ Banking Finance-related Corporate Consolidated Financial Data/ Business Operations
The Chuo Mitsui Trust and Ordinary Income: Banking Company, Limited External Customers ¥ 311,314 ¥ 10,081 ¥— ¥ 321,395 Intersegment 1,588 4,020 (5,608) — Total Ordinary Income 312,902 14,102 (5,608) 321,395 Ordinary Expenses 240,360 14,293 (4,646) 250,007 Ordinary Profit ¥ 72,541 ¥ (191) ¥ (961) ¥ 71,388 Assets, Depreciation and Capital Expenditures: Financial Data/ Total Assets ¥ 14,776,664 ¥ 61,520 ¥ (51,528) ¥ 14,786,655 Banking Company, Limited Chuo Mitsui Asset Trust and Depreciation 9,378 410 — 9,789 Capital Expenditures 9,979 434 — 10,413
Note: “Other finance-related operations” mainly consists of credit guarantee services, and credit card services.
7. Geographical Segment Information
Trust Group Since domestic (Japan) total ordinary income and total assets by geographic segment for the fiscal years ended March
Former Chuo Mitsui 31, 2010 represented more than 90% of the consolidated total ordinary income and total assets, geographic segment Basel II Qualitative Disclosure Data/ information was not required to be disclosed.
8. Ordinary Income from International Operations
Millions of Yen, Except for Percentages 2010 Ordinary Income from International Operations (A) ¥ 57,794 Trust Holdings, Inc. Former Chuo Mitsui
Basel II Quantitative Disclosure Data/ Consolidated Ordinary Income (B) 321,395 (A)/(B) (%) 17.9%
Note: Ordinary income from international operations represents ordinary income arising from international operations both in and outside Japan.
30. Comprehensive Income
(1) Comprehensive income for the year ended March 31, 2010 was the following: Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Millions of Yen 2010 Comprehensive Income Attributable to: Owners of the Parent ¥ 166,258 Minority Interests 131 Total Comprehensive Income ¥ 166,390 Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
212 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Consolidated Financial Statements omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
(2) Other comprehensive income for the year ended March 31, 2010 consisted of the following: Data/ Financial
Millions of Yen 2010 Other Comprehensive Income: Valuation Difference on Available-for-sale Securities ¥ 118,366 Deferred Gains or Losses on Hedges 134 akn opn,Limited Company, Banking Foreign Currency Translation Adjustment 307 and Trust Mitsui Chuo The ¥ 118,807
Total Other Comprehensive Income Data/ Financial
31. Per Share Information
Diluted net income per share for the fiscal year ended March 31, 2011 and 2010 is not stated as there were no potential dilutive securities. Basic net income per share (“EPS”) for the fiscal years ended March 31, 2011 and 2010 was as follows: hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking Thousands Millions of Yen of Shares Yen U.S. Dollars Data/ Financial
Fiscal year ended Net Income Weighted-average EPS EPS March 31, 2011 Shares Basic EPS Net Income Available to Common Shareholders ¥ 49,900 2,595,958 ¥ 19.22 $ 0.23 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former Millions of Yen Thousands Yen of Shares Group Trust
Fiscal year ended Net Income Weighted-average EPS March 31, 2010 Shares Basic EPS Net Income Available to Common Shareholders ¥ 47,527 2,292,420 ¥ 20.73 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust 32. Subsequent Events
The following appropriation of retained earnings of CMTB as of March 31, 2011, was approved at the general meeting of shareholders held on June 29, 2011:
Millions of Yen Millions of
U.S. Dollars Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel Fiscal Year-end Dividends: Common Stock, ¥3.09 ($0.03) per share ¥ 8,021 $96 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 213 Financial Data: Independent Auditors’ Report Trust Group Financial Summary/ Former Chuo Mitsui Financial Data/ Trust Holdings, Inc. Former Chuo Mitsui Financial Data/ The Chuo Mitsui Trust and Banking Company, Limited Financial Data/ Banking Company, Limited Chuo Mitsui Asset Trust and Trust Group Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
214 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Non-consolidated Balance Sheets (Supplemental Information–Unaudited) Group Trust The Chuo Mitsui Trust and Banking Company, Limited As of March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars 2011 2010 2011 Assets Cash and Cash Equivalents ¥ 434,960 ¥ 221,587 $ 5,231 Due from Banks Other than Due from the Bank of Japan 36,872 24,286 443 Call Loans — 6,512 — Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Receivables under Securities Borrowing Transactions 9,378 1,521 112 Monetary Claims Bought 99,921 98,818 1,201 Data/ Financial Trading Assets 36,568 22,778 439 Securities 3,682,399 4,494,557 44,286 Loans and Bills Discounted 8,861,578 8,938,774 106,573 Foreign Exchanges 12,259 767 147 Other Assets 355,446 410,641 4,274 hoMtu se rs and Trust Asset Mitsui Chuo Tangible Fixed Assets 98,389 99,887 1,183 Limited Company, Banking Intangible Fixed Assets 19,311
19,876 239 Data/ Financial Deferred Tax Assets 134,463 140,434 1,617 Customers’ Liabilities for Acceptances and Guarantees 49,680 48,101 597 Allowance for Loan Losses (39,852) (46,519) (479) Total Assets ¥ 13,791,942 ¥ 14,481,460 $ 165,868
Liabilities and Equity ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
Liabilities: Mitsui Chuo Former
Deposits ¥ 9,706,188 ¥ 9,184,360 $ 116,731 Group Trust Call Money 248,956 217,161 2,994 Payables under Securities Lending Transactions 1,161,653 1,702,697 13,970 Trading Liabilities 7,716 7,911 92 Borrowed Money 678,983 1,217,246 8,165 Foreign Exchanges — 21 —
Bonds Payable 267,247 234,750 3,214 Data/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust Due to Trust Accounts 801,657 995,612 9,641 Other Liabilities 116,361 127,070 1,399 Provision for Bonuses 2,011 2,050 24 Provision for Directors’ Retirement Benefits — 875 — Provision for Contingent Losses 14,867 11,567 178 Acceptances and Guarantees 49,680 48,101 597
Total Liabilities ¥ 13,055,323 ¥ 13,749,429 $ 157,009 Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel
Equity: Capital Stock ¥ 399,697 ¥ 399,697 $ 4,806 Capital Surplus 149,011 149,011 1,792 Retained Earnings 211,557 177,199 2,544 Valuation Difference on Available-for-sale Securities (9,249) 19,762 (111) Deferred Gains or Losses on Hedges 2,140 1,891 25 ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo Revaluation Reverse for Land (16,537) (15,532 ) (198) Limited Company, Banking Total Equity ¥ 736,619 ¥ 732,030 $ 8,858 Total Liabilities and Equity ¥ 13,791,942 ¥ 14,481,460 $ 165,868
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 215 Financial Data: Non-consolidated Statements of Income (Supplemental Information–Unaudited) The Chuo Mitsui Trust and Banking Company, Limited Fiscal years ended March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Income:
Financial Data/ Interest Income: Trust Holdings, Inc. Former Chuo Mitsui Interest on Loans and Discounts ¥ 105,956 ¥ 121,276 $ 1,274 Interest and Dividends on Securities 46,901 55,265 564 Interest on Call Loans and Bills Bought 364 179 4 Other Interest Income 4,880 3,722 58 Trust Fees 11,402 15,713 137 Fees and Commissions 60,993 59,136 733 Trading Income 3,943 2,592 47 Financial Data/ Other Ordinary Income 36,223 27,505 435
The Chuo Mitsui Trust and Other Income Banking Company, Limited 26,053 24,311 313 Total Income ¥ 296,719 ¥ 309,704 $ 3,568
Expenses: Interest Expenses: Interest on Deposits ¥ 41,380 ¥ 46,535 $ 497
Financial Data/ Interest on Call Money and Bills Sold 427 575 5 Interest on Borrowings 2,665 3,827 32 Banking Company, Limited Chuo Mitsui Asset Trust and Other Interest Expenses 15,163 17,943 182 Fees and Commissions Payments 14,606 15,571 175 Trading Expenses 441 — 5 Other Ordinary Expenses 9,091 8,318 109 General and Administrative Expenses 109,896 117,473 1,321 Other Expenses 34,635 24,811 416 Trust Group Total Expenses ¥ 228,307 ¥ 235,056 $ 2,745 Former Chuo Mitsui
Basel II Qualitative Disclosure Data/ Income before Income Taxes ¥ 68,412 ¥ 74,647 $ 822 Income Taxes: Income Taxes-current 158 183 1 Income Taxes-deferred 25,400 24,600 305 Total Income Taxes 25,558 24,783 307 Net Income ¥ 42,854 ¥ 49,863 $ 515 Trust Holdings, Inc. Former Chuo Mitsui Yen U.S. Dollars Basel II Quantitative Disclosure Data/ Per Share of Common Stock: Basic Net Income ¥ 16.50 ¥ 21.75 $ 0.19 Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
216 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former Financial Data: Summary/ Financial Non-consolidated Balance Sheets (Supplemental Information–Unaudited) Group Trust Chuo Mitsui Asset Trust and Banking Company, Limited As of March 31, 2011 and 2010 omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust
Millions of Data/ Financial Millions of Yen U.S. Dollars 2011 2010 2011 ASSETS Cash and Cash Equivalents ¥ 26,950 ¥ 12,281 $ 324 Due from Banks Other than Due from the Bank of Japan 529 569 6 Securities 89,185 89,185 1,072 Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Other Assets 29,861 31,631 359 Tangible Fixed Assets 362 679 4 Data/ Financial Intangible Fixed Assets 3,653 3,711 43 Deferred Tax Assets 3,095 2,254 37 Total Assets ¥ 153,637 ¥ 140,313 $ 1,847
LIABILITIES AND EQUITY hoMtu se rs and Trust Asset Mitsui Chuo Liabilities: Limited Company, Banking Deposits ¥ 96
¥ 86 $1 Data/ Financial Call Money 103,000 89,000 1,238 Other Liabilities 8,282 7,944 99 Provision for Bonuses 379 367 4 Provision for Directors’ Retirement Benefits — 158 — Total Liabilities ¥ 111,747 ¥ 97,566 $ 1,343 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel
Equity: Mitsui Chuo Former
Capital Stock ¥ 11,000 ¥ 11,000 $ 132 Group Trust Capital Surplus 21,246 21,246 255 Retained Earnings 9,650 10,507 116 Valuation Difference on Available-for-sale Securities (7) (6) (0) Total Equity ¥ 41,889 ¥ 42,747 $ 503 Total Liabilities and Equity ¥ 153,637 ¥ 140,313 $ 1,847 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 217 Financial Data: Non-consolidated Statements of Income (Supplemental Information–Unaudited) Chuo Mitsui Asset Trust and Banking Company, Limited Fiscal years ended March 31, 2011 and 2010 Trust Group Financial Summary/ Former Chuo Mitsui
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Income:
Financial Data/ Interest Income: Trust Holdings, Inc. Former Chuo Mitsui Interest and Dividends on Securities ¥ 115 ¥ 187 $1 Interest on Due from Banks 9 11 0 Trust Fees 35,343 35,186 425 Fees and Commissions 7,961 8,662 95 Other Income 74 39 0 Total Income ¥ 43,505 ¥ 44,087 $ 523
Financial Data/ Expenses:
The Chuo Mitsui Trust and Interest Expenses: Banking Company, Limited Interest on Borrowings ¥0 ¥0 $0 Other Interest Expenses 109 150 1 Fees and Commissions Payments 12,906 11,885 155 General and Administrative Expenses 18,078 18,845 217 Other Expenses 1,246 111 14
Financial Data/ Total Expenses ¥ 32,341 ¥ 30,993 $ 388 Income before Income Taxes ¥ 11,163 ¥ 13,093 $ 134 Banking Company, Limited Chuo Mitsui Asset Trust and Income Taxes: Income Taxes-current 5,361 6,294 64 Income Taxes-deferred (840) (988) (10) Total Income Taxes 4,520 5,306 54 Net Income ¥ 6,643 ¥ 7,787 $ 79 Trust Group Yen U.S. Dollars Former Chuo Mitsui Basel II Qualitative Disclosure Data/ Per Share of Common Stock: Net Income ¥ 11,071.66 ¥ 12,978.93 $ 133.15 Trust Holdings, Inc. Former Chuo Mitsui Basel II Quantitative Disclosure Data/ Basel II Quantitative Disclosure Data/ The Chuo Mitsui Trust and Banking Company, Limited Banking Company, Limited Chuo Mitsui Asset Trust and Basel II Quantitative Disclosure Data/
218 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust
This section outlines matters to be stated in explanatory documents relating to the fis- omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust cal year separately stipulated by the Director-General of the Financial Services Agency Data/ Financial (Notification No. 15 of Financial Services Agency, March 23, 2007) with regard to the status of capital adequacy as set forth in Article 19-2, Paragraph 1, Item 5-(d) of the Enforcement Regulations of the Banking Act (Ministry of Finance Ordinance No. 10, 1982). The “Capital Adequacy Ratio Notification” indicates standards for judgments by banks akn opn,Limited Company, Banking on whether or not their capital adequacy status is appropriate in light of the assets, etc., and Trust Mitsui Chuo The held pursuant to the provisions of Article 14-2 of the Banking Act (Financial Services Data/ Financial Agency Notification No. 19, March 27, 2006), and “Consolidated Capital Adequacy Ratio Notification” indicates standards for judgment by financial holding companies on whether or not the capital adequacy status is appropriate in the light of the assets, etc., held pur- suant to the provisions of Article 52-25 of the Banking Act (Financial Services Agency hoMtu se rs and Trust Asset Mitsui Chuo Notification No. 20, March 27, 2006). Limited Company, Banking iaca Data/ Financial The Risk Management System of the former Chuo Mitsui Trust Group (as of March 31, 2011) appears on the following pages.
Basel II Qualitative Disclosure Data: Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former
Former Chuo Mitsui Trust Group 220 Group Trust The Chuo Mitsui Trust and Banking Company, Limited (“CMTB”) 224 Chuo Mitsui Asset Trust and Banking Company, Limited (“CMAB”) 236 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 219 220 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ment companiesondevelopment ofproperrisk tions toitssubsidiarybanks and subsidiaryassetmanage- Group, andtoalsosupervise, manageandissueinstruc- management andmonitortheriskstatusofCMTH as adepartmenttosupervisetheoverallCMTHGrouprisk respect toriskmanagementintheCMTHGroup. and formulatespoliciesplansforeachfiscalyearwith basic agendaforriskmanagementintheCMTHGroup system byestablishingtheRulesforRiskManagementas a CMTH aimstoimproveandupgradeitsriskmanagement important functionsoftheholdingcompany,“CMTH.” ment fortheentireCMTHGroupasoneofmost (2) RiskClassificationandManagementSystem and upgradingofbothsystems. CMTH Groupalsocontinuestopromotetheimprovement status ofrisk-takingandbusinessstrategies,etc.The level, thetaprootofmanagementvitality,inlight framework forassessmentandcontrolofcapitaladequacy simultaneously createdacapitalmanagementsystemas within thelimitsformaintainingmanagementvitality,and ment ofrisksinacomprehensivemannerandtokeep management systemtoserveasaframeworkforascertain- that lossescanbecontainedwithinacertainscope. of risks,andcontrolriskseveninthecasetheyappearso ular toeachbusinessortransaction,preventtheappearance of themostimportantfunctions. corporate value,and,tothatend,riskmanagementisone sidiary intheCMTHGroupisvitaltoimprovementof management oftheentireCMTHGroupandeachsub- recognition ofthefactthatensuringsoundandstable working toimproveitsriskmanagementsystemwiththe (1) BasicPoliciesonRiskManagement 1. OverviewofRiskManagement ChuoMitsuiTrustFormer Group Basel IIQualitativeDisclosureData: CMTH hasinstitutedtheRiskManagementDepartment The CMTHGrouppositionssupervisionofriskmanage- The CMTHGrouphasestablishedanintegratedrisk Risk managementaimstoproperlyhandletheriskspartic- Former ChuoMitsuiTrustGroup(the“CMTHGroup”)is subsidiary assetmanagement companies. Management providedbyCMTH andsubsidiarybanks departments arespecifiedintherespectiveRulesforRisk Executive Officersinchargeoftheriskmanagement The rolesandresponsibilitiesoftheseDirectors risks andmethodsimportanceofriskmanagement. cient understandingofsource,typeandcharacteristics examine policiesandspecificmeasures,basedonasuffi- departments strivetoaccuratelyrecognizethestatusand the ExecutiveOfficersinchargeofriskmanagement impact ontheachievementoftheirstrategictargets,and recognize thefactthatriskmanagementhasamaterial banks andsubsidiaryassetmanagementcompaniesduly agement isensured. carries outproperriskmanagementsothatsoundman- and analysisoftheriskstatusCMTHGroup, management companies,performsmonitoring,appraisal information fromsubsidiarybanksandasset tics, compliance,andeachbusinesshavebeendeveloped. proper riskmanagementcorrespondingtocharacteris- policies determinedbyCMTHtobecarriedout,systemsfor companies, inorderforriskmanagementandcompliance banks andsubsidiaryassetmanagementcompanies. and thestatusofimprovementscarriedoutbysubsidiary essary instructionsuponreceiptofreportsonauditresults banks andassetmanagementcompaniesissuesnec- CMTH supervisesinternalauditfunctionsofsubsidiary internal auditsforeachdepartmentofCMTH.Inaddition, audit systemfortheentireCMTHGroupandcarriesout CMTH determinespolicyimprovementsoftheinternal and operations. CMTH Groupandtomonitorthestatusofmanagement has beeninstitutedtoformulatepoliciesfortheentire supervision ofcompliance,theComplianceDepartment management systems.Additionally,asadepartmentfor Additionally, theDirectorsofCMTHandsubsidiary The BoardofDirectorsCMTHobtainsnecessary At subsidiarybanksandassetmanagement In regardtointernalaudits,asystemisinplacewhich Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 221
Used risk capital Used risk capital Used risk capital Used risk capital Each business division operates its business so that the required risk capital stays within the scope of allocated capital
Required Required Required risk capital risk capital risk capital
Allocation of capital to each business division Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report
Basel II Qualitative Disclosure Data: Former Chuo Mitsui Trust Group Trust Mitsui Chuo Former Data: Disclosure II Qualitative Basel Allocated capital
The capital management departments assess the level The capital management departments is conducted Assessment of the capital adequacy level Capital costs based on the capital allocated to each business divi- costs based on the capital more effectively for efficient, sion in order to utilize operations of capital. In addition, the risk-return-conscious indices for earnings after adjusting for CMTH Group sets of capital costs associated with each risk, in consideration loans and marketable securities, and product, including when undertaking new invest- uses these as benchmarks ments and loans. Capital Strategy 3) Assessment of Capital Adequacy Level, of soundness of capital adequacy from the viewpoint formulated or reex- each time a capital allocation plan is Committee and the amined, and reports to the Executive Board of Directors. ratio under based on the status of the capital adequacy and results of regulations, ratio of Tier I capital to capital capital allocation verification of the appropriateness of the of the plan, etc. For verification of the appropriateness with the verification capital allocation plan, simultaneously of capital allocation, of the appropriateness of the method against stress phe- the level at which capital can buffer nomena is also verified. • Capital Allocation Scheme The CMTH Group undertakes capital allocation opera- The CMTH Group undertakes capital Each business division operates its business in compli- The capital allocation plan is reexamined on a regular The CMTH Group calculates various management The CMTH Group has built an integrated risk manage- The CMTH Group tions by allocating capital of the CMTH Group to each tions by allocating capital of the CMTH market risk, and business division for its risks (credit risk, plan is formulated operational risk). The capital allocation of CMTH based by the capital management department the integrated risk on the risk status ascertained through and undergoes management system and the annual plan, the risk manage- a verification of its appropriateness by decided on by the ment supervision department and is Board of Directors. ance with the allocated risk capital (amount of required risk capital). The risk management supervision department monitors the adherence to the allocated risk capital (amount of required risk capital) and the risk status on a monthly basis and reports to the Executive Committee and the Board of Directors. basis each quarter, and also whenever deemed necessary due to modifications to the business plan of any one of the CMTH Group companies or changes in risk status, etc., as needed. indices such as income or loss after deducting capital 2) Capital Allocation Operations ment system as a framework for risk management to ment system as a by keeping risks within the lim- secure sound management vitality. In integrated risk manage- its for management to management are classified into ment, risks subject risk, liquidity risk, and operational risk credit risk, market personnel risk and (processing risk, system risk, legal risk, corresponding to tangible asset risk); and management various risks are each risk characteristic is carried out while comprehensively. ascertained, appraised and managed are reported to The results of the monitoring of risk status of Directors on a the Executive Committee and the Board monthly basis. (3) Integrated Risk Management and Capital Allocation (3) Integrated Risk System 1) Integrated Risk Management 222 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group not all,ofthecapitalpieatCMTHonaconsolidatedbasis, In addition,TierIcapitalaccountsforthelargestslice,if Company, Limited(“CMAB”),onanon-consolidatedbasis. solidated basis,andChuoMitsuiAssetTrustBanking Limited (“CMTB”),onaconsolidatedbasisandnon-con- basis, TheChuoMitsuiTrustandBankingCompany, lations arewellabove8%forCMTHonaconsolidated 4) CapitalAdequacyStatus an adequatefinancialbasethatcorrespondstotherisks. capital financing,etc.,andtherebymakeeffortstoensure strategy toprovidegoalsforcapitallevelsandpolicies capital adequacylevel,weformulateandcarryouta Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report •BreakdownofCapital • CapitalAdequacyRatioasofEndMarch2011 Basel IIQualitativeDisclosureData:FormerChuoMitsuiTrustGroup 10.00% 15.00% 20.00% 10.00% 15.00% 20.00% 0.00% 5.00% 0.00% 5.00% The CMTHGroup’scapitaladequacyratiosunderregu- Moreover, basedontheresultsofassessment MB o-osldtdCMAB,non-consolidated CMTB, non-consolidated MH osldtdCMTB,consolidated CMTH, consolidated adequacy adequacy 16.46% 15.67% Capital Capital ratio ratio 10.83% 11.63% Tier I Tier I ratio ratio 20.00% 30.00% 40.00% 10.00% 15.00% 20.00% 10.00% 0.00% 0.00% 5.00% adequacy adequacy 31.44% 15.47% Capital Capital ratio ratio 31.44% 10.51% Tier I Tier I ratio ratio CMTH Groupissufficient. changes inmarkets,etc.). (past economyrecessions,landpricedrops,drastic a sufficientlevelasbufferagainststressphenomena I capitalandTierIIcapital,etc.),about¥635.5billion,ison allocated riskcapital(requiredcapital)and(Tier used is¥371.7billion.Inaddition,thebalancebetween (required riskcapital)is¥483.8billion.Riskcapitalactually on aconsolidatedbasis,theallocatedriskcapital ¥1,119.3 billion*(TierIcapitalof¥791.1billion)CMTH basis, andatCMABonanon-consolidatedbasis. at CMTBonaconsolidatedbasisandnon-consolidated * Though theCMTHGroupusesDomesticStandard,BISStandardisused for itscapitalallocationoperations. As statedabove,thecapitaladequacylevelof Under thecapitalallocationplan,againstof MB o-osldtdCMAB,non-consolidated CMTB, non-consolidated Other Other MH osldtdCMTB,consolidated CMTH, consolidated Tier II Tier II 30% 29% Tier I Tier I 70% 71% Other Tier II 32% 100% Tier I Tier I 68% Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 223 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: Former Chuo Mitsui Trust Group Trust Mitsui Chuo Former Data: Disclosure II Qualitative Basel The CMTH Group has established an emergency The CMTH Group established a backup office in case The CMTH Group has Earthquake this In response to the Great East Japan the busi- The CMTH Group will continuously maintain (4) Business Continuity Management (4) Business Continuity for quick and appropriate responses, response framework of business operations in case and to ensure the execution malfunction, outbreak of infection or of a disaster, system disrupt business operations, and other event that might drills on a regular basis. has been conducting a natural disaster. the head office is rendered unusable by serviced by Tokyo March and rolling blackouts in areas established the Electric Power Company (TEPCO), CMTH the CMTH Group, Joint Crisis Management Task Force for Group took var- based on its contingency plan. The CMTH branches in disaster ious actions to continue operations at areas and areas serviced by TEPCO. business operations ness continuity plan for sustaining its in the event of crisis. Market risk Operational risk Credit risk Confidence interval Used 371.7 124.4 227.6 risk capital 19.7 1 year 99% 1 year Time Horizon 483.8 158.4 305.7 risk capital 19.7 asset composition (1 year max.) Holding period corresponding to Tier I 791.1 328.2 Tier II Other Capital Required 1,119.3 0 200 800 600 400 Capital Management Systems Capital Management The CMTH Group will continuously verify the scope of The CMTH Group Operational risk Market risk 99% Credit risk 99% Prerequisite 1,000 (Billions of Yen) 1,200 5) Upgrading of Integrated Risk Management and Upgrading of Integrated 5) risk to be managed, risk measurement methods, capital risk to be managed, capital adequacy level assessment allocation methods, that integrated risk management and methods, etc., so will be more effective, and will strive capital management the systems. to improve and upgrade • Capital and Risk Capital 224 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ticular division’s riskexceedsorislikely toexceedthe the capitalallocationplan,and ifitispredictedthatapar- supervision divisionmonitors thestatusofcompliancewith with therespectiveallocated capital.Theriskmanagement the planengagesinbusiness operationsincompliance department thatreceivesallocation ofcapitalaccordingto Executive CommitteeandBoardofDirectors,each reexaminations notifiedbyCMTHarereportedtoCMTB’s Department managestangibleassetrisks. personnel risks;andtheCorporateAdministration legal risks;theHumanResourcesDepartmentmanages ages systemrisks;andtheLegalDepartmentmanages processing risks;theSystemPlanningDepartmentman- Department andotherheadofficedepartmentsmanage risk andoperationalrisk;theOperationsAdministration manages overallcontrol,creditrisk,marketliquidity each typeofrisk,andtheRiskManagementDepartment while givingdueconsiderationtoriskmanagement. have beeninstitutedtoworkonvariousmanagementtasks Committee, andAssetAssessmentInspectionCommittee Management (ALM)Committee,InvestmentandCredit business administration.Inaddition,theAsset-Liability tion byidentifyingbankwideriskandconsideringoverall Committee alsoworkstowardahealthierbusinessfounda- tion andthedeterminationofriskstatus.TheExecutive sions aboutriskmanagementpoliciespriortoimplementa- Directors, undertakesavarietyofactivities,includingdiscus- Committee, whichfallsundertheauthorityofBoard tent ofspecificstandardsineachtyperisk. and theregulationsbasedontheserulesdetailcon- hedge risk,andthestructureauthorityforriskcontrol, types ofriskrequiringattention,thetechniquesappliedto CMTB’s basicrulesforriskmanagement,includingthe Rules forRiskManagement.Thisdocumentsetsout by CMTH,theBoardofDirectorsatCMTBestablished accordance withtheriskmanagementpoliciesformulated (1) BasicPoliciesonRiskManagement 1. OverviewofRiskManagement The ChuoMitsuiTrust andBankingCompany, Limited Basel IIQualitativeDisclosureData: In addition,thecapitalallocationplanandplansfor CMTB hasestablishedmanagementdepartmentsfor In regardtoadministrativestructure,theExecutive In ordertobuildaproperriskmanagementsystemin been madetowarditsupgrading. agement planformulatedeachfiscalyear,andeffortshave been addedasanissuetobehandledintheinternalman- reports toCMTHandconsultsonmeasuresforhandling. amount ofcapitalallocatedtothedivision,itpromptly ment, assetassessment, verificationsrelating toratingsys- credit riskmeasurement, concentrationriskmanage- structured financemanagement, estimationofparameters, rating system,aretailreceivables managementsystem, each credit-relatedbusiness, thefollowingarestipulated:a response tothetransactionform andcharacteristics,etc.of ed basis.Assystemsforcreditriskmanagement,in supervision ofriskmanagementatCMTBonaconsolidat- etc.; theRiskManagementDepartmentalsoperforms performs managementrelatingtomarkettransactions, solidated subsidiaries,andeachcredit-relateddepartment to transactionsbysalesdepartmentsandbranchesorcon- Management Departmentperformsmanagementrelating (2) CreditRiskManagementSystem weighted assetsunderBaselII. rating-based approachforcalculationofthecreditrisk- sheet transactions. lending transactions,markettransactionsandoff-balance- ment includesoverallcredit-relatedbusinessincluding nonperforming assets,thetargetforcreditriskmanage- asset qualityandaverttheunpredictabledevelopmentof Rules forCreditRiskManagement.Inordertomaintain and providesspecificsforcreditriskmanagementinthe with theriskmanagementpoliciesdeterminedbyCMTH, agement intheRulesforRiskManagement,accordance borrowers. CMTBstipulatesabasicframeworkforriskman- assets) asaresultofdeteriorationfinancialconditions or extinguishmentofassets(includingoff-balance-sheet (1) CreditRiskManagementPolicies 2. Credit Risk The riskmanagementsystemspecifiedbyCMTHhas In regardtocreditriskmanagement,theRisk Note thatCMTHandCMTBusethefoundationinternal Credit riskistheofsufferinglossesduetoadecrease Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 225
Operational risk management
Liquidity risk management Amount of loss Maximum value that could occur in a certain confidence interval
Market risk management
Asset assessment
Credit concentration Average value risk management
Credit risk measurement Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report
Estimation of parameters Credit cost Credit risk amount
Structured finance management the status The risk management departments monitor are performed in Calculations of credit risk amounts Frequency of occurrence of loss of occurrence of Frequency 2) Credit Risk Management Methods status of the capital of credit risk amounts and compliance division by allocated to each credit-related business to the Executive CMTH, and report the risk amount status on a monthly basis. Committee and the Board of Directors using estimated principle by Monte Carlo Simulation system. parameters based on an internal rating • Calculation of Credit Risk Amount Basel II Qualitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo The Data: Disclosure II Qualitative Basel Retail receivables management
Case rating The Rules for Risk Management
Proprietorship credit rating Credit Risk Management Real estate asset finance credit rating
Vessel and aircraft finance credit rating
Project finance credit rating Rating System
Financial institution Credit Rating System credit rating
Sovereign credit rating The credit supervision division, which functions inde- Corporation credit rating supervises and The Risk Management Department Thereby a system is established in which credit manage- pendently from business promotion divisions, controls the credit risk on each transaction under respective depart- mental authorities. A multifaceted perspective is applied, one that stresses fund application, repayment capability and cash flow, as well as collateral status and corporate client profitability. For major loan assessments, the lending arrangements are presented to the Investment and Credit Committee, which consists of the president and related executives, where the primary objectives of loan and secu- rity investment are discussed at the executive level. (3) Other Related Matters on Credit Risk 1) Credit Screening issues instructions on the improvement and upgrading of issues instructions on the improvement with the risk management systems in collaboration for subsidiaries responsible departments in each business system in as well, to improve the credit risk management characteristics of conformance with the scale and business each subsidiary. ment on a consolidated basis is managed identically to that of the bank itself. tems and such, monitoring and reporting, and risk assess- tems and such, monitoring and reporting, of new products and ment methods upon the introduction new business. • Credit Risk Management System • Credit Risk Management 226 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group • RelationshipBetweenInternalRatingandBorrowerClassification tain percentageforaspecificindustrialsector,futurehan- composition ratiobyindustryclassificationexceedacer- balance compositionratioandthecreditriskamounts Investment andCreditCommittee.Inthecasewhere amounts byindustrialsector,andreportingismadetothe quarter onthestatusofbalanceandcreditrisk agement level.Monitoringisotherwiseperformedeach against default,anddiscussionswillbeheldattheman- which includethetargetcreditbalanceandsafeguards requires discussionondirection,measureswillbedrafted, ing, thecreditbalanceexceedsbenchmarkandthus Investment andCreditCommittee.If,basedonmonitor- ance statusonamonthlybasis,andreporttothe risk managementdepartmentsalsomonitorthecreditbal- needed tomanageandcontrolcreditriskexposures.The requires discussionwithmanagementonthedirection er companiesandcorporategroups,whichifreached benchmark regardinglendinglimitstorespectiveborrow- sector, internalratingorcorporategroup,CMTBsetsa centration extendedtoborrowersinaspecificindustrial Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQualitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited nenlRtn BorrowerClassification Internal Rating Additionally, inordertoeliminateexcessivecreditcon- C+ B+ D3 D2 D1 C- C A B E F Legal BankruptcyBorrowers Virtual BankruptcyBorrowers/ Possible BankruptcyBorrowers Borrowers whoRequireCarefulMonitoring Normal Borrowers Substandard Debtors from alegalorformalperspective. Borrowers inseriousfinancial difficultyandsubstantiallybankrupt,or, infact,havealreadygonebankrupt, for whomthereisahigh possibilityofbankruptcy. Borrowers infinancialdifficultiesandwhosemanagement improvementplanshavenotprogressedwelland Law EnforcementRegulations. where receivablesrequiringcloseobservation haveariseninaccordancewiththeFinancialReconstruction Borrowers whosebusinessconditionisweakor unstable,orwhosefinancialconditionisproblematic,and their financialconditionandfuturebusinessperformance. status ofperformanceitsobligations.These areprimarilycorporationsthatwillrequirefullattentionto and alreadyhavehadproblems,orthereisan extremely highpossibilityofadisruptionbeingcreatedinthe Borrowers whosebusinessperformanceisweak orwhichhavematerialproblemsintheirfinancialcondition, lematic, butwhosefinancialconditionandbusinessperformance,etc.,willrequirefullattention. tions. Theseareprimarilycorporationswhosestatusofperformanceobligationsiscurrently non-prob- for whichthereisahighpossibilityofdisruptionbeingcreatedinthestatusitsperformance ofobliga- Borrowers whosebusinessconditionisweakorunstable,financialproblematic, and primarily corporationswhosefinancialconditionandfuturebusinessperformancerequireattention. for whichthereisapossibilitythattheabilitytofulfillobligationswillbedamagedinfuture. Theseare the caseofadeteriorationinbusinessenvironment,financialconditionoreconomic and Borrowers whocurrentlyhavetheabilitytofulfillobligations,butforwhichthereisuncertainty orfragilityin ness conditions,butwhichneedsomeattentioninregardstofuturebusinessperformance. economic environment.Theseareprimarilycorporationscurrentlyinnon-problematicfinancial andbusi- by whichtheabilitytofulfillobligationswouldbedamagedincaseofadeterioration the businessor Borrowers whoseabilitytofulfillobligationsiscurrentlynon-problematic,butrecognized to havefactors These areprimarilycorporationsinfairlygoodfinancialconditionandwhosebusinessconditions arestable. decline inabilitytoperformobligationsdueadeteriorationthebusinessoreconomic environment. Borrowers whoseabilitytofulfillobligationsisnon-problematic,buttherearatherlargeconcern abouta rank. Theseareprimarilycorporationsingoodfinancialconditionandwhosebusinessconditions arestable. deterioration inthebusinessoreconomicenvironment,comparedwithgrouphigher internalrating Borrowers whoseabilitytofulfillobligationsishigh,butsuchmorelikelydecline in thecaseofa ditions arefavorable. favorable, andmid-to-smallormicrocorporationsinexcellentfinancialconditionwhosebusinesscon- ing rank.Theseareprimarilycorporationsinexcellentfinancialconditionandwhosebusinessconditions rioration inthebusinessoreconomicenvironment,comparedwithgrouphighestinternalrat- Borrowers whoseabilitytofulfillobligationsishigh,butwhichareabitmorelikelybeaffectedbydete- business conditionsarefavorable. governments, localpublicorganizations,etc.,andcorporationsinexcellentfinancialconditionwhose Borrowers ofthehighestinternalratingrankwithveryhighabilitytofulfillobligations.Theseareprimarily ment andin-housemodels.Aninternalratingisassigned ers andformeasurementofcreditriskusingassess- assessment andactivatedforcheckingcorporateborrow- rating systemlinkedtoborrowerclassificationinasset credit ratingsystemhasbeenintroducedasaninternal 1. Internal RatingSystem asset assessmentsystemforloanassetsandsuch. pool managementsystemforretailreceivablesandan system andcaseratingforcorporateborrowers,a been madetoimprovethesystemwithaninternalrating 3) CreditRiskManagementforEach loan assets. of concentratedcreditriskbyflexiblypurchasingorselling management (CPM)withmeasuressuchasthereduction to theInvestmentandCreditCommittee. dling policies,includingrestrictionofcreditaresubmitted Targeting allcorporateborrowers,aneleven-stage For creditriskmanagementofeachcredit,effortshave CMTB takesinitiativestoupgradethecreditportfolio Definition Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 227 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Pool Classification System Other Related Matters As to corporate exposures, CMTB has prepared four In our asset assessment system, the Business Departments In our asset assessment when a trigger We have established a system by which, Moreover, from the viewpoint of ensuring proper prof- 3. Internal Rating Systems (1) Overview of Internal Rating and internal rating systems in response to the probability of default of the borrower: “corporation credit rating sys- tem,” “sovereign credit rating system,” “financial institu- tion credit rating system” and “proprietorship credit rating 4. Asset Assessment System Asset 4. the initial assessment, and responsible and branches perform such as the Credit Supervision supervisory divisions the secondary assessment, paying due Departments perform asset soundness, and after going attention to ensuring audit by the Internal Audit Department, through an internal to the Executive Committee and the the results are reported assessment serve as Board of Directors. Not only does asset financial statements a foundation for the creation of accurate which middle man- of CMTB, it also functions as a device by borrower-specific agement can more accurately ascertain is in question, the problems, and, when a borrower’s credit “managed receiv- borrower’s receivables are classified into to the ables” and “caution receivables” corresponding policies are formu- degree of credit risk, and future handling under the instruc- lated and then a follow-up is carried out tions of the credit supervision division. Problematic Receivables Management and 5. bankruptcy occurs, phenomenon including arrearage or report on the sta- the Business Departments and branches and the credit risk tus to the credit supervision division of credit management division so that any deterioration risk can be promptly ascertained. its, based on the internal rating for each borrower, an “index spread” is determined that corresponds to the risk degree for each case, such as duration of credit and preservation status, and thus efforts are made to improve lending profitability. Basel II Qualitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo The Data: Disclosure II Qualitative Basel For retail receivables, as a framework for the establish- In order to set basic lending spread standards that are In order to set basic lending spread standards ment and management of pool classifications that are sub- divided in response to risk characteristics, the retail receivables management system has been introduced for credit assessment, as well as for measurement of credit risk. Allocation of retail receivables to pool classifications is carried out when a sales department or branches per- form lending procedures relating to the relevant receiv- ables. Under this system, the credit risk management division reexamines the allocation to pool classifications for all retail receivables is reexamined on the basis of information registered in the system as of the end of March each year. 3. Retail Receivables Management System 3. 2. Case Rating System 2. a case rating to be used as indexes for lending operations, relating to lending system is employed for transactions borrowers, and acceptances and guarantees for corporate established as a in which hierarchical classifications are of credit to the result of adding the factors of duration ratings is carried out expected loss ratio. Assigning of case when the sales department and branches perform lending procedures relating to the relevant receivables, and recon- sideration is done in a timely and appropriate fashion. that takes into consideration all of the available, relevant that takes into consideration material information. Additionally, and most current carried out more than once per year, reconsideration is of the occurrence of a phenomenon and also in the event on the appraisal of the credit risk of with a material impact rating is assigned by the sales the borrower. An internal based on quantitative assess- department and branches, and qualitative assessment by affili- ment by financial data etc., with ate companies and actual asset appraisal, external ratings, etc. corrections made using reference to judges that a However, if the credit supervision division the light of the actu- particular modification is necessary in is assigned and al status of the borrower, a modified score Under this sys- then the final internal rating is determined. verifies the rating tem, the credit risk management division status on a regular assignment process and operational basis to maintain its appropriateness. 228 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (2) OnIndividualSystems management system”hasbeenprepared. In addition,astoretailexposure,a“retailreceivables tem,” and“realestateassetfinancecreditratingsystem.” credit ratingsystem,”“vesselandaircraftsys- loss ratio,etc.,ofreceivables,whichare“projectfinance three internalratingsystemstorespondtheexpected ables. Astospecializedlending,CMTBhasdeveloped tem respondingtotheexpectedlossratio,etc.,ofreceiv- system,” and“caseratingwhichisasys- Basel IIQualitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited )“Realestateassetfinancecreditrating system”isa 8) “Vesseland aircraftfinancecreditratingsystem”isa 7) “Projectfinance creditratingsystem”isasystemto 6) “Caseratingsystem”isasystemtoassigninternalratings 5) “Proprietorshipcreditratingsystem”isasystemto 4) “Financialinstitutioncreditratingsystem”is asystem 3) “Sovereigncreditratingsystem”isasystem toassign 2) Inthe“corporationcreditratingsystem,”forgeneral 1) system toassign internalratingsbased on theLTV factors particulartothesubject vesselsandaircraft. eration theDSCRstandard of thesubjectpartyand system tograntinternalratings bytakingintoconsid- to thesubjectproject. and interest)ofthesubjectpartyfactorsparticular ratio ofcashflowtoamountpaymentprincipal standard ofDSCR(debtservicecoverageratio,the assign internalratingsbytakingintoconsiderationthe by addingloanperiod,etc.,totheexpectedlossratio. tax declarationdocuments,etc. assign internalratingsusingscoringmodelsbasedon external ratingsasprimaryfactors. quantitative andqualitativeinformationuponusing to assigninternalratingstakingintoconsideration the centralgovernmentasprimaryfactors. internal ratingsuponusingexternalandsuchof purpose offoundationandfoundingentity. ing byemphasizingqualitativeinformationincluding nal rating;fornon-profitorganizations,weassignarat- assessment underexternalratings,weassignaninter- and, uponaddingaqualitativeassessmentandan ment basedonfinancialdataisbuiltforeachindustry, corporations, amodelrelatingtoquantitativeassess- of creditrisks. cation areutilizedformeasurement andcapitalallocation rating, PDandLGDestimated foreachretailpoolclassifi- portfolio management. Executive Committeeevery threemonthsandusedfor nal ratingsfortheportfolioofCMTBisreportedto will betheindexforlendingoperations.Balancebyinter- setting alendingspreadstandard(“indexspread”)that sion. Caseratingisusedasabasicfactorinthecaseof management systemincreditassessmentandsupervi- (4) StatusofUseEachSystemandParameter during theterm. nal surroundings,etc.,parameterswillbemodifiedeven with theactualsituationduetoadrasticchangeofexter- the estimatedvalueisjudgednottobeinconformance Estimated valueisreexaminedonceperyear;however,if added usingavailableinformationandmethods. data, conservativeandappropriatemodificationswillbe data, ifthereisaninsufficiencyorinconsistencyinthe (EAD) ofexposureorientedtoretail. PD, LossGivenDefault(LGD)andExposureAt Probability ofDefault(PD)corporateexposures,and (3) EstimationofParameters 0 Ineachoftheabovementionedsystems,internal 10) )“Retailreceivablesmanagement system” isasystem 9) Moreover, suchparametersas estimatedPDbyinternal We utilizetheratingsystemandretailclassification Regarding theestimation,basedoninternalresults Relevant totheestimationofparameters,weestimate Estimated Value maintain appropriateness. process andoperationalstatusonaregularbasis stipulate thattheriskmanagementdivisionverify the ratingandallocationtopoolclassifications,we than onceperyear,andforproceduresassigning rating andpoolclassificationarereexaminedmore of transactionsandoverduestatus,etc. risk characteristicsoftheborrowers, to determinepoolclassificationcorrespondingthe disposable amountofcollateral)thesubjectparty. standard (loantovalue,theratioofloansprojected Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 229 Back office information Transaction profit and loss status Reporting on risk and Middle office Transaction management Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Monitoring ALM Committee Board of Directors Executive Committee capital For market risk management, CMTB utilizes Value at Risk Market risk at CMTB is contained through the efforts of CMTB maintains a structure that averts potential risk In regard to market-related transactions, the front office In regard to market-related Front office Allocation of (3) Market Risk Management Method (VaR), which is defined as a maximum loss of the total expo- sure, within 1% probability. VaR is calculated using the his- torical simulation method, based on market historical data. the middle office division, which monitors CMTB’s risk sta- tus and ensures compliance to the risk capital amount set by CMTH as the upper limit of market risk assumed. Reports are sent to the assigned Executive Officer on a daily basis. before it becomes obvious. Alarm points and loss limits have been set to prevent the expansion of losses following a bad turn in market trading, and the middle office division tracks profits and losses. (2) Market Risk Management System (2) Market Risk Management while the back office divi- divisions execute transactions, of these transactions, and the sion confirms the content controls the market risk. Each office middle office division of the others, creating a cross- category is independent At CMTB, the Risk Management check structure. middle office division performs moni- Department as the risks on a daily toring and reporting of overall market for preparing basis. This department is also responsible operations that proposals and supervising market analysis at CMTB. improve market risk management skills • Market Risk Management System Basel II Qualitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo The Data: Disclosure II Qualitative Basel Parameters Value Market risk is the possibility that the value of assets and Market risk is the possibility that the value CMTB stipulates the basic framework for risk manage- The target of market risk management comprehensively Verification relating to the appropriateness of the hier- Verification relating verifica- As to verification of estimation of parameters, value and actual If a discrepancy between the estimated (1) Market Risk Management Policies rates, foreign liabilities will fluctuate with changing interest exchange rates, the price of marketable securities, and other market factors, and thereby cause losses. ment in the Rules for Risk Management and provides specifics of market risk management in the Rules for Market Risk Management, in accordance with the risk management policies determined by CMTH. includes foreign exchange and interest rate transactions in trading operations, and in addition, bond portfolios, funds, cross-holding shares, etc., in banking operations. 4. Market Risk and Liquidity Risk 4. archy and the PD standard, etc., in the rating system is car- archy and the PD standard, of more than once per year. ried out with a frequency relating to the significance and Moreover, verification classification, etc., as to pool classifi- homogeneity of pool a exposure is also carried out with cations relating to retail frequency of more than once per year. estimated param- tion such as back testing relating to the of more than eter value is carried out with a frequency once per year. is any problem in value arises in back testing or if there discrepancy or another verification, the factors in that we consider problem are analyzed, and when necessary, the parameters and reexamining the estimation logic for the rating system. (5) Verification of Each System and Estimation of (5) Verification of Each 230 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group • ComparisonofVaRandProfit/Loss of VaR-basedriskmeasurements. compare VaRagainstprofitorloss,toascertainthevalidity backtests,which performs supplementary measure,CMTB appropriateness ofCMTHcapitalallocationplans.Asa since April1990,andusestheresultsforverificationof cal priceswingsthathaveactuallyoccurredinthemarket tices, CMTBalsoexecutesstresstests,whichassumeradi- Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQualitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Observation period:April2010toMarch2011(245businessdays) 1day 1% Probability ofloss: Time horizon: Assumptions forcalculationofVaR
Profit/Loss An exampleofbacktestingontradingtransactionsfollows. Cementing itspositiononstrictrisk-controllingprac- (Millions of Yen) － － － － 400 100 400 300 200 100 200 300 0 0 800 600 0 Profit/Loss andVaR ScatterDiagram 200 (Millions ofYen) VaR 400 interest raterisk. ment andanalysisrelatingto ALM,suchasmonitoringof Risk ManagementDepartmentisresponsibleformanage- carries outoverallsupervisionofALMoperations,andthe (5) ALMManagement the middleofficedivision. conditions tokeepamountswithintheassignedlimitsas The RiskManagementDepartmentmonitorscompliance type oftransaction,basedonsuchfactorsasmarketscale. risk. Onthemarketfront,tradinglimitsaresetforeach Department, whichisresponsibleforcontrollingcashflow Department handleriskmanagementfortheTreasury flow riskdoublesurebylettingtheRiskManagement accurateidentificationofcash makes emergency. CMTB which orchestratemeasurestobeinvokedintimesof responses throughthepreparationofcontingencyplans, alsofacilitatesflexible,bankwide uidity risk.CMTB and monitorsadherencetothesestandardscontrolliq- CMTB establishesguidelines,particularlyforcashgaps, disadvantageous thanusual.Onthecash-flowfront, institution tofulfilltransactionsatpricesnoticeablymore ability tocompletetransactions,orcompelsafinancial es whenmarketturmoilimpedesafinancialinstitution’s usual. Inamarketsense,liquidityriskmayprecipitateloss- to acquirefundsatblatantlyhigherinterestratesthan financial position,orwhenainstitutionisforced tion isunabletosecurenecessaryfunds,dueapoor risk bearsthepotentialforlosseswhenafinancialinstitu- (4) LiquidityRiskManagement ciently accuratetopredictmarketrisk. results showthatCMTB’sVaRcalculationmodelissuffi- CMTB’s VaRassumesaprobabilitylossof1%,andthe 245 businessdays,dailylossesneverexceededtheVaR. range ofroughly¥10millionto¥730million,andout In regardtoALM,theFinancialPlanningDepartment Liquidity riskistwofold.Inacash-flowsense,liquidity VaR tradingtransactionsinfiscal2010movedwithina Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 231 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Operational risk is the risk of loss arising from inadequate Assumptions in calculation of the amount of interest Assumptions in calculation 99 percentile value and 1 per- For the yen and dollar, that stays for a A core deposit is defined as a deposit 5. Operational Risk Management System 5. Operational Risk Management (1) Basic Policy on Operational Risk Management or failed internal processes, people and systems or from external events. This risk includes processing risk and sys- tem risk as well as legal risk, personnel risk and tangible asset risk. Recognizing that all operations entail operational risk, we have an operational risk management system. In addition to appropriate identification and assessment of operational risk in both qualitative and quantitative aspects, we establish a system for controlling and monitoring opera- tional risk and a system for executing contingency and busi- ness continuity plans to mitigate operational risk. For calculation of the operational risk equivalent amount under Basel II, we use the Standardized Approach. interest rate shock based on the range of past interest rate interest rate shock the level of interest rate risk volatility, and of ascertaining ratio to capital (Tier I + Tier II). amounts using the the outlier standards are as follows: rate risk relating to Rate Shock Interest (a) a rate fluctuation measured within centile value of interest of observation of period of holding of 1 year and a period rate shock by 5 years, and for other currencies, interest applied. parallel transfer of up and down 2% is (b) Core Deposit from liquidity long period without being withdrawn deposits, etc.). The deposits (ordinary deposits and current smallest among 1) amount of core deposit is defined as the 2) the amount minimum balance in the past five years, annual amount of arrived at by deducting the maximum balance, or 3) outflow in the past five years from the current to reach maturity, 50% of the current balance. It is assumed years. with a monthly equal cash outflow, in five Basel II Qualitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo The Data: Disclosure II Qualitative Basel Method of ascertaining interest rate risk of assets and Method of ascertaining the degree of impact on periodic Method of ascertaining interest rate risk for assets and Method of ascertaining interest rate risk by sorting Method of ascertaining interest rate Moreover, an ALM Committee has been established for Moreover, an ALM asset and liability status, market At the ALM Committee, risk monitor- For implementation of multi-dimensional liabilities by the amount of change in present value under [Interest Rate Risk Relating to Outlier Standards] profits and losses due to interest rate volatility with assump- tions that include future balance, spread, applicable interest rate, etc., based on certain interest rate scenarios. [Periodic Profit and Loss Simulation] liabilities by the amount of volatility in current value when interest rate yield curves shift in parallel by 0.01%. [BPV] assets and liabilities in contract units by interest rate assets and liabilities in contract units difference (gap) change period and looking at the period. between assets and liabilities in each particular [Maturity Gap] the purpose of integrally managing flexible operations of the purpose of integrally based on interest rate trends, or market-related business operations, and deliberating on mat- various types of hedge to meet monthly or more frequently. ters regarding ALM, situations and other related matters risk and cash flow risk with discussion on investment policies are reported along and hedge for bonds and stock, capital plan formulation, operation implementation and other matters. analysis by maturity ing, CMTB uses such methods as gap basis, interest ladder on an interest rate change period value (BPV), periodi- rate sensitivity analysis by basis point based on multiple cal profit and loss simulation analysis value fluctuation interest rate scenarios, and present to the outlier analysis under interest rate shock relating standards as the ALM management method. 232 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Do Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report through follow-upCSAandoperational riskmeasurement. to verifytheeffectivenessof CMTB’sriskmitigationplans quantitative aspects.ThePDCA cyclehasbeenestablished plan tomanagetherisksassessed inbothqualitativeand department establishesandimplementsariskmitigation of potentialoperationalrisksestimatedthroughCSA.Each realization ofoperationalrisk—andscenariodata—severity calculated usinginternallossdata—lossesarisingfromthe ment ofoperationalrisks,theriskamount is (control self-assessment,“CSA”hereinafter)semiannually. self-assessment ontheeffectivenessofinternalcontrol risks inherentinvariousbusinessprocesses,wecarryout (3) OperationalRiskManagementMethod system risk,legalpersonnelandtangibleassetrisk. Department, etc.,whichareresponsibleforprocessingrisk, Resources DepartmentandCorporateAdministration Planning Department,LegalHuman er withtheOperationsAdministrationDepartment,System and developCMTB’soperationalriskmanagementtogeth- department. Thisdepartmenthasbeenworkingtoimprove Department asanintegratedoperationalriskmanagement (2) OperationalRiskManagementSystem • PDCACycleforOperationalRisk Basel IIQualitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Results achievedby implementing risk- Additionally, forquantitativeidentificationandassess- In ordertoqualitativelyidentifyandassessoperational CMTB hasestablishedtheRiskManagement mitigation plans risk-mitigation plans following review Re-implement Check External lossdata Plan risk-mitigation plans Establish Business environment Internal controlfactor Scenario CSA asset efficiency,weexamine thescaleoftransaction from theviewpointofALM control andimprovementof 2) ManagementMethodofSecuritization Exposure on risk. formed forthepurposeofensuringproperprofitsbased real estateassetfinance,principalriskwillbetransferred. cipal riskofacertainextent;however,insecuritization beneficial interestaftersecuritizationaswellandholdprin- tion ofhousingloans,wewillreservesubordinated ness orimprovementofassetefficiency.Asforsecuritiza- estate assetfinanceaimingatfinancingintermediacybusi- ALM controlandassetefficiency,securitizationofreal securitization ofhousingloansprimarilyaimingtoimprove investor byinvestmentinsecuritizationproducts. and thecasewhereweacquiresecuritizationexposureas lying assetsforsecuritizationtransactionsasoriginator, case whereweareinvolvedintheestablishmentofunder- 1) ManagementPoliciesonSecuritizationExposure (1) SecuritizationExposure 6. OtherRelatedMatters With respecttosecuritization transactionsasoriginator, Acquisition ofsecuritizationexposureasinvestorisper- In securitizationtransactionsasoriginator,thereare There aretwocasesofsecuritizationtransactions:the Data forcalculatingoperationalriskamount Verify effectivenessofrisk-mitigationplans Calculate operationalriskamount Action Scenario data(analysis) risk-mitigation plans Internal lossdata Review risk-mitigation plans Do Implement Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 233 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Bank Accounts Bank Accounts Bank Accounts We measure risk amounts for capital subscriptions or We measure risk amounts simulation For marketable stock using the historical taking into con- Additionally, with regard to credit risk, risks by asset For equity exposures, we manage credit In regard to equity exposures, risk management super- Additionally, in order to eliminate excessive credit con- (2) Equity Exposures in Bank Accounts (2) Equity Exposures Equity Exposures in Management Policies Regarding 1) the banking account in accordance equity exposures in management system and methods, with the following risk results, we verify whether the risk and, based on the to the capital, and control the amount is proper compared proper risk amount. Equity Exposures in Management System Regarding 2) Risk Amount Measurement 1. the market risk method, based on market historical data, price volatility. amounts are measured with regard to measure the credit sideration credit concentration risk, we of loan, etc. risk amount together with the amount 2. Asset Assessment period (including assessments done each accounting amount subject to quarterly and interim), with the total asset assessment. Management Method Regarding Equity Exposures in 3) vision division performs monitoring with regard to the sta- tus of credit risk and market risk amounts, as well as the status of compliance with capital allocation amounts, and reports on the status of risk amounts to the Executive Committee and the Board of Directors on a monthly basis. centration in a specific industry, internal rating classifica- tion, borrower or group, we monitor equity exposures together with lending on a monthly basis and report to the Investment and Credit Committee. Monitoring is also implemented for the status of balance and credit risk amount by industry each quarter, and the results are reported to the Investment and Credit Committee. Basel II Qualitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo The Data: Disclosure II Qualitative Basel Concerning acquisition of securitization exposure as an Concerning acquisition as originator, we Concerning securitization transactions as investor, for Concerning securitization transactions these as In securitization transactions, we recognize exposure, If we have equity reserved for securitization If there is a difference between the book value and face investor, the president is responsible for decision-making investor, the president involving amounts in excess of cer- related to investments tain levels, on a product-by-product basis. loan receivables, carry out credit risk management of the methods of which are the underlying assets, using system, just as asset assessment system and internal rating manage cash flow with other loan assets. We also strictly risk, relating to securitization. credit risk based each product acquired, we measure the and subordinated on external ratings, underlying assets measure the interest complementation ratio, etc. Also, we transfer as the reim- rate risk fluctuation relating to capital bursements progress. are paid. sales of assets when the sales proceeds the market value by we consider the difference between assets and mar- the DCF method for the entire underlying ket value of equity for transfer as market value of the reserved equity, and calculate the book value for equity for transfer and equity for reserve by dividing the book value of the entire underlying asset by the market value. As to equity for transfer, we recognize the difference between the book value and the market value as capital gains or losses, and as to the reserved equity, since the extinguishment requirements of financial assets are not satisfied, we do not recognize capital gains or losses. value of reserved equity, in the period until completion of reimbursement of equity for transfer, the book value is modified in response to the cash flow of the entire under- lying asset. and the scheme adequately, and check the legal aspects and the scheme adequately, well. It is determined that decisions of the agreement as Board of Directors after the Executive will be made by the a of securitization of receivables of Committee in the case certain value or greater. 234 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report tion inthenamesoncollateralsharecertificates,etc. considering whetherornotthereisexcessiveconcentra- ketability iscarefullyjudgedandassessed,forexample,by obligatory whenadvancingaloan. ments onregistrationuponacquisitionofcollateral,are whether thecollateralisperfectedbyexecutionofagree- acquisition canbeaneffectivemeansofpreservation,and settlor haslawfultitlesothatthecollateralsubjectto ined eachmonthandtheratiotoloanischecked. Additionally, assessmentofmarketablesecuritiesisreexam- reexamined onthebasisofpastcollateralsalesrecords. cially forrealestatecollateral,assessmentrateshavebeen collateral aresetforrespectivetypesofcollateral,andespe- of assessments. of collateral,andalsorulesmanualsforreexamination in responsetocollateralcharacteristicstheassessment and managementmethodsaredeterminedrespectively. pledge ofobligation,andothermovablesimmovables, mercial bills,securities,realestate,assignmentofobligation, 1) Collateral cedures andmanagerialobligationswithregardtoloans. Loan andRelatedMatterstodeterminebasicpolicies,pro- credit risksuchascollateralorguaranteesintheRulesof (3) CreditRiskMitigationMeasures Basel IIQualitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Upon acquisitionofcollateral,itseffectivenessandmar- Moreover, procedurestoconfirmwhetherthecollateral In regardtoassessmentmethod,ratesfor Additionally, wehavedeterminedassessmentmethods Collateral isclassifiedintotypesasdepositcollateral,com- CMTB stipulatesrulesregardingreductionmethodsfor on adailybasis. ing, anddepositstatusforeachcompanyisascertained at thetimeoflendinginresponsetobalancelend- balance ofdeposits,depositstatusisindividuallychecked ers andCMTB.Moreover,asforthestatusoflending Transaction Agreement,etc.,executedbetweenborrow- ensuring legaleffectivenessunderCivilLawandBank 3) Offset risk concentration. several percentisbyindividuals,andtherenoexcessive guarantees, about10%isguaranteedbycorporationsand housing loanswithmortgages.Asfortheremainderof about 80%thereof,andthegreaterpartofthislendingis antees byconsolidatedsubsidiariesofCMTBaccountfor credit concentrationriskismanagedthroughmonitoring. as includedintherelevantcorporategroup,andexcessive nection withtheprimarydebtor,guarantorismanaged guarantee fromapartythathaspersonnelorcapitalcon- same corporategroup,and,additionally,inthecaseofa guarantor andprimarydebtoraremanagedasaunitofthe parent companyorasubsidiaryoftheprimarydebtor, lending, toassesscreditworthiness. internal ratingtoallcorporateguarantors,asusedfor son withhighcreditworthiness,andinadditionassignsan whether theguarantorhasfundsandisacompetentper- mary guarantors.Additionally,forlending,CMTBconfirms associations, guaranteecompaniesandindividualsaspri- rations (primarilyparentcompanies),creditguarantee 2) Guarantees Offset proceduresfordepositsareperformedafter In regardtoguaranteesforlendingindividuals,guar- If aguarantorinlendingorientedtocorporationis In guarantees,CMTBprescribesprocedureswithcorpo- Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 235 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Amount of positive replacement cost of derivative prod- Amount of positive on an ongoing We will reexamine risks to be managed in charge We established an Internal Audit Department President, and Internal audit results are reported to the 3) Amount Posted as Assets 3) is by the expected loss ratios uct transaction multiplied replacement cost as the credit risk cor- deducted from the is then the remainder of the amount rection amount and posted as assets. Relating to Other Risks (5) Management System the integrated risk basis by assuming every risk within to maintain an management and continue to make efforts integrated risk management system. (6) Internal Audit System from departments of audit work, which is independent audit plans are involved in performing operations. Internal the internal created based on the policy for developing Internal audits are audit system as determined by CMTH. units, business done on audited units: headquarters’ These verify departments and branches, and subsidiaries. of the internal con- the appropriateness and effectiveness trols system, etc. of Directors. There is are also reported directly to the Board taking actions to a system to provide instructions for improve audited units, if there are problems in audited units’ internal controls systems, etc. Basel II Qualitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo The Data: Disclosure II Qualitative Basel For credit risk of derivative products transactions, we For credit risk of derivative products Additionally, monitoring of credit concentration status is In regard to counterparty risks of derivative products trans- In regard to counterparty risks of derivative assessment, As the relevant risk is subject for asset For application of bilateral netting agreements to be For application of conduct monitoring on the status of credit risk amounts conduct monitoring on the status of and compliance status with allocated capital amounts in the same way as the lending operations. carried out together with loans, as subject of management of credit concentration risk. 2) Credit Risk Management 2) actions, based on the credit equivalents arrived at by adding actions, based on the credit equivalents amounts multiplied future latent exposure (notional principal agreement with the by add-on) to the cost of executing an third party (replace- same cash flow as of that point with a as follows: ment cost), credit risk management is performed 1) Asset Assessment through asset credit risk management is performed term (including assessment implemented on each fiscal quarterly and interim terms). (4) Credit Risk of Derivative Products Transactions (4) Credit Risk of Derivative Products legally effective, CMTB obtains a legal opinion under the legally effective, CMTB where the counterparty is established laws of the country where overseas branch offices of the or located (countries for the transaction type pre- counterparty are located) Swap and Derivatives scribed under International it master agreements, etc., by which Association (ISDA) judges the legal effectiveness. 4) Netting 236 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report agement plan formulated eachfiscalyear,and effortshave been addedasanissuetobe handledintheinternalman- report toCMTHandconsulton measuresforhandling. the amountofcapitalallocated tothedivision,theypromptly ed thataparticulardivision’srisk exceedsorislikelytoexceed of compliancewiththecapitalallocationplan,andifitispredict- ance withtherelevantamountofcapital. ing totheplanengagesinbusinessoperationscompli- each departmentthatreceivesallocationofcapitalaccord- to theExecutiveCommitteeandBoardofDirectors, reexamination ofwhichCMTHnotifiesCMABarereported tangible assetrisks. and theCorporateAdministrationDepartmentmanages Human ResourcesDepartmentmanagespersonnelrisks, system risks,theLegalDepartmentmanageslegal processing risks,theSystemPlanningDepartmentmanages Department andotherheadofficedepartmentsmanage risk, andoperationaltheOperationsAdministration manages overallcontrolandcreditrisk,marketliquidity each typeofrisk,andtheRiskManagementDepartment bankwide riskandconsideringoverallbusinessadministration. works towardahealthierbusinessfoundationbyidentifying the determinationofriskstatus.TheExecutiveCommitteealso about riskmanagementpoliciespriortoimplementationand Directors, undertakesavarietyofactivities,includingdiscussions Committee, whichfallsundertheauthorityofBoard of specificstandardsineachtyperisk. and theregulationsbasedontheserulesdetailcontent hedge risk,andthestructureauthorityforriskcontrol, types ofriskrequiringattention,thetechniquesappliedto out CMAB’sbasicrulesforriskmanagement,includingthe lished theRulesforRiskManagement.Thisdocumentsets cializing inpensionandsecuritiestrustbusinesses,estab- CMTH, theBoardofDirectorsatCMAB,asatrustbankspe- accordance withtheriskmanagementpoliciesformulatedby (1) RiskManagementSystem 1. RiskManagementSystem Chuo MitsuiAssetTrust andBankingCompany, Limited Basel IIQualitativeDisclosureData: The riskmanagementsystem specifiedbyCMTHhas The riskmanagementsupervisiondivisionmonitorsthestatus In addition,thecapitalallocationplanandplansforits CMAB hasestablishedmanagementdepartmentsfor In regardtoadministrativestructure,theExecutive In ordertobuildaproperriskmanagementsystemin sible forsubject assetswithsufficientattention toensuringthe Committee andBoardofDirectors onamonthlybasis. and reportsthestatusofrisk amountstotheExecutive ries outmeasuringandmonitoring ofcreditriskamounts, (2) CreditRiskManagementSystem upon theintroductionofnewproductsandbusiness. and reporting,assetassessment,riskassessmentmethods system, weprescribemeasurementofcreditrisks,monitoring as callandnegotiabledeposits.Inthecreditriskmanagement Management Departmenttargetinginterbanktransactionssuch Management andstriveforpropermanagement. tent ofcreditriskmanagementintheRulesforCreditRisk risk remainslimited.However,westipulatethespecificcon- (1) BasicPoliciesandManagementSystemforCreditRisk 2. Credit RiskManagementSystem strategy ischecked. request withCMAB’scapabilitiesisconfirmedandprocedural the timeanewcontractisformed.Thecompatibilityof trustee examination,similartothatfordesignatedtrusts,at lished parameters.Forspecifiedtrusts,CMABconductsa clients andmanagesrespectiveassetswithintheseestab- nal standardsforexercisingdiscretionaryrightsgrantedby and preferredassetcomposition.CMABalsosetsclearinter- contract conditions,suchasdesignatedinvestmenttargets trusts, CMABmanagesentrustedfundsinaccordancewith agement isconductedforeachcategory.Fordesignated trusts, forwhichCMABdoesnotholdsuchrights.Riskman- cretionary rightsforthemanagementofassets,andspecified are trustsforwhichCMAB,initscapacityastrustee,holdsdis- divided broadlyintotwocategories:designatedtrusts,which carries outadequateriskmanagement.Trustoperationsare should acceptacertaindegreeofresponsibilityandtherefore with thebeneficiaries.ButCMABtakesviewthatatrustee management forCMAB’scoretrustbusinessesessentiallylies been madetowarditsupgrading. Asset assessment isperformedattheheadquarters respon- The managementoftherisk managementdivisionscar- Management ofcreditriskisperformedbytheRisk In principle,CMABdoesnotengageinlendingsocredit The burdenofcreditrisk,marketandliquidityrisk Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 237 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report For ALM as well, cash flow management is the main oper- For ALM as well, cash Recognizing that all operations entail operational risk, we Recognizing that all operations entail operational Department CMAB has established the Risk Management In order to qualitatively identify and assess operational Additionally, for quantitative identification and assess- the Risk Management Department conducting risk manage- the Risk Management our management of cash flow risk is impec- ment, we ensure that engage in business such as acceptance of cable. As we do not and individuals as other banks, nor deposits from corporations invest in securities, etc., for the purpose of perform operations to risk is limited to cash flows relating to the gaining profits, liquidity bonds for settlement collateral. purchase of government supervises ation, and the Financial Planning Department Risk Management overall ALM operations, and the and analysis Department is responsible for management relating to ALM, such as risk monitoring. 4. Operational Risk Management System 4. Operational Risk Management (1) Basic Policy on Operational Risk Management In addition to have an operational risk management system. of operational appropriate identification and assessment aspects, we establish risk in both qualitative and quantitative operational risk and a system for controlling and monitoring business continuity a system for executing contingency and plans to mitigate operational risk. (2) Operational Risk Management System as an integrated operational risk management department. This department has been working to improve and develop CMAB’s operational risk management together with the Operations Administration Department, System Planning Department, Legal Department, Human Resources Department and Corporate Administration Department, etc., which are responsible for processing risk, system risk, legal risk, personnel risk, and tangible asset risk. (3) Operational Risk Management Method risks inherent in various business processes, we carry out self-assessment on the effectiveness of internal control (con- trol self-assessment, “CSA” hereinafter) semiannually. ment of operational risks, the operational risk amount is cal- culated using internal loss data—losses arising from the Basel II Qualitative Disclosure Data: Chuo Mitsui Asset Trust and Banking Company, Limited Company, and Banking Trust Asset Mitsui Chuo Data: Disclosure II Qualitative Basel Risk Management For cash flow risks, CMAB has set guidelines for cash gaps, CMAB is a trust bank specializing in wholesale trusts with CMAB is a trust bank specializing in wholesale comprehensively The target for market risk management the front office In regard to market-related transactions, Market risk is limited for CMAB, as we only own govern- Market risk amounts and BPV monitored by the middle office and monitors compliance status. Specific management proce- dures have been laid out in the form of “the Rules of Cash Flow Risk Management” and other standards. Through the roles of the Financial Planning Department controlling cash flows and (2) Liquidity Risk Management and ALM Management pension trusts and securities trusts as core businesses, and pension trusts and securities trusts as risks as we limit our policy is to take on only extremely limited to cash flow and market-related transactions to those related settlement collateral. procurement of government bonds for of market risk However, we stipulate the specific content Management and management in the Rules for Market Risk strive for proper management. shares, etc., in includes bond portfolios and cross-holding banking operations. back office division divisions execute transactions, while the the middle office confirms the content of transactions, and category is inde- division controls the market risks. Each office structure. The pendent of the others, creating a crosscheck office division Risk Management Department as the middle market risks on performs monitoring and reporting of overall a daily basis. This department is also responsible for prepar- ing proposals and supervising market analysis operations that improve market risk management skills at CMAB. ment bonds for settlement collateral, call transactions, and small-scale cross-holding shares. division are reported to the assigned Executive Officer on a daily basis, and the risk amount status is reported to the Executive Committee and the Board of Directors on a monthly basis. (1) Basic Policies and Management System for Market Basic Policies and (1) 3. Market Risk Management System 3. Market Risk Management soundness of assets, and the results are reported to the soundness of assets, and Board of Directors after going Executive Committee by the Internal Audit Department. through an internal audit 238 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Do Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Directors onamonthly basis. amount status totheExecutiveCommittee andBoardof amounts ofcreditriskandmarket risk,andreportstherisk supervision divisionperforms monitoringofthestatus (2) RiskManagementMethod reporting onassetassessment. Planning Departmentisinchargeofsummarizingand ing ofcreditriskandmarketrisk,theCorporate Department performsmeasurement,monitoringandreport- its scale. as anexception,weperformmanagementcorrespondingto (1) Basic PoliciesofRiskManagementandthe 5. Risk ManagementPoliciesRegarding Equity through follow-upCSAandoperationalriskmeasurement. to verifytheeffectivenessofCMAB’sriskmitigationplans quantitative aspects.ThePDCAcyclehasbeenestablished plan tomanagetherisksassessedinbothqualitativeand department establishesandimplementsariskmitigation of potentialoperationalrisksestimatedthroughCSA.Each realization ofoperationalrisk—andscenariodata—severity • PDCACycleforOperationalRisk Basel IIQualitativeDisclosureData:ChuoMitsuiAssetTrustandBankingCompany,Limited Results achievedby implementing risk- As toequityexposuresaswell, theriskmanagement In themanagementsystem,RiskManagement We havenoequityexposuresinprinciplebutifweholdit mitigation plans Exposures inBankAccounts Management SystemRegardingEquityExposures risk-mitigation plans following review Re-implement Check External lossdata Plan risk-mitigation plans Establish Business environment Internal controlfactor Scenario CSA controls systems,etc. ed units,ifthereareproblems inauditedunits’internal tem toprovideinstructionsfortakingactionsimproveaudit- also reporteddirectlytotheBoardofDirectors.Thereisasys- effectiveness oftheinternalcontrolssystem,etc. and sub-branches.Theseverifytheappropriateness units: headquarters’units,headofficebusinessdepartments, determined byCMTH.Internalauditsaredoneonaudited based onpolicyfordevelopingtheinternalauditsystemas in performingoperations.Internalauditplansarecreated audit work,whichisindependentfromdepartmentsinvolved investor byinvestmentinsecuritizationproducts. case wherewewouldacquiresecuritizationexposureas ing assetsforsecuritizationtransactionsasoriginator,orthe case wherewewouldbeinvolvedinestablishmentofunderly- 7. Internal AuditSystem 7. Internal 6. Transaction PoliciesandRiskManagement Internal auditresultsarereportedtothePresident,and We establishedanInternalAuditDepartmentinchargeof We donotengageintransactionsapplicabletoeitherthe System Regarding SecuritizationExposure Data forcalculatingoperationalriskamount Verify effectivenessofrisk-mitigationplans Calculate operationalriskamount Action Scenario data(analysis) risk-mitigation plans Internal lossdata Review risk-mitigation plans Do Implement omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former Basel II Quantitative Disclosure Data: Inc. Holdings, Trust
Former Chuo Mitsui Trust Holdings, Inc. (“CMTH”) Data/ Financial Consolidated Means of Capital Procurement 240 Credit Risk-Weighted Assets 240 akn opn,Limited Company, Banking
Operational Risks 240 and Trust Mitsui Chuo The
Scope of Consolidation 241 Data/ Financial Capital Adequacy Ratio 242 Capital Adequacy Levels 244 Credit Risks (except for exposure relating to funds and securitization exposure) 246 Credit Risk Mitigation Measures 262 hoMtu se rs and Trust Asset Mitsui Chuo Risks of Transaction Partners in Derivative Products Transactions and Limited Company, Banking Long-term Settlement Period Transactions 263 Data/ Financial Securitization Exposure 265 Equity Exposures in Bank Accounts 268 Reference: Equity Exposures in Trust Account with an Agreement on Compensation for Principal 269 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Exposure Relating to Funds 270 Mitsui Chuo Former rs Group Trust Variation Amount of Profit/Loss or Economic Value from Interest Rate Shock Used by the CMTH Group for Internal Management with Regard to Interest Rate Risk in Bank Accounts 270 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 239 240 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report thestandardisedapproach • Methodusedincalculationof operationalriskequivalents: Operational Risks 5. SecuritizationExposure 4. Ratingagencyusedforthestandardisedapproach: 3. Phasedroll-outapplication: 2. Scope ofapplicationtheinternalratings-basedapproach 1. Typeofinternalratings-basedapproachtobeused: Credit Risk-Weighted Assets Fixed-term subordinatedbonds Perpetual subordinatedbonds Non-dilutive preferredsecurities(includingnon-dilutivewithstep-upinterestrateprovisions) Common stock Means ofCapitalProcurement ChuoMitsuiTrustFormer Holdings,Inc. Basel IIQuantitativeDisclosureData: and scopeofapplicationthestandardisedapproach: Rating agencytobeused: Credit risk-weightedassetamountcalculationmethod: Fitch RatingsLimited Standard &Poor’sRatingsServices Moody’s InvestorsServiceInc. Japan CreditRatingAgency,Ltd. Rating andInvestmentInformation,Inc. - forthosewithoutexternalratingsandnotpossibletoascer- - forthosewithoutexternalratingsbutpossibletoascertainthe - forthosewithexternalratings:theratings-based However, forcorporateexposures,weapply100%riskweighttoall. Rating andInvestmentInformation,Inc. N.A. excluded (asofendMarch,2011) company arethebusinessunitsforwhichapplicationwas 21 companieswithinthescopeofconsolidationholding Business unitswhoseprimarybusinessisnotcreditbusiness. Business unitsunderthestandardisedapproach risk management. based approachandbesidesthereislittlesignificanceincredit to whichitispracticallydifficultapplytheinternalratings- Assets notoccurringincidentaltocredittransactions,orassets Assets underthestandardisedapproach the standardisedapproachisused. the followingscopeshallbeexemptedfromapplicationand internal ratings-basedapproachisusedinprinciple,however, for calculationofcreditrisk-weightedassets,thefoundation the foundationinternalratings-basedapproach exposure: capitaldeduction tain theoriginalassetsthatbackuprelevantsecuritization sure: supervisoryformula original assetsthatbackuptherelevantsecuritizationexpo- approach Consolidated Consolidated Consolidated Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 241 Consolidated Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel The consolidated capital adequacy ratio is calculated by includ- The consolidated capital that are not consolidated, since Article ing financial subsidiaries Consolidated Financial Statements Rules 5, Paragraph 2 of the that adopt the method of pro rata is applicable, and companies to Article 21 of the Consolidated consolidation pursuant Notification, with the companies that Capital Adequacy Ratio of consolidation in preparation of consoli- are within the scope dated financial statements Number of consolidated subsidiaries: 25 Primary consolidated subsidiaries: Limited The Chuo Mitsui Trust and Banking Company, (trust banking business) Limited Chuo Mitsui Asset Trust and Banking Company, (trust banking business) Limited Chuo Mitsui Asset Management Company, (investment trust management business) Chuo Mitsui Capital Company Limited (private equity fund management business) business) Chuo Mitsui Guarantee Co., Ltd. (credit guarantee Chuo Mitsui Card Co., Ltd. (credit card business) CMTB Equity Investments Co., Ltd. (securities operation management) business) Chuo Mitsui Finance Service Co., Ltd. (loan businesses: 1 Number of affiliates, etc. engaging in financial Name: Japan Trustee Services Bank, Ltd. Primary businesses: trust banking business N.A. N.A. N.A. N.A. a. to c. of Article 20, Paragraph 1, Item 2 of the Consolidated Capital Adequacy Ratio Notification, names of companies that have less capital than regulatory required capital, and the total amount less than the required capital: tal inside the CMTH Group: ble to Article 21 of the Consolidated Capital Adequacy Ratio ble to Article 21 of the Consolidated Capital in financial Notification, names of primary affiliates engaging businesses: businesses, and descriptions of their primary sidiaries, names of principal consolidated subsidiaries, and sidiaries, names of principal consolidated descriptions of their primary businesses: companies subject to calculation of the consolidated capital companies subject to Group and companies included adequacy ratio the CMTH scope in accordance with the within the consolidation Statements Rules (Regulations for Consolidated Financial and Preparation of Consolidated Terminology, Forms Financial Statements): in Article 52-23, Paragraph 1, Item 10 of the Banking Act and that exclusively operate businesses indicated in a. of the rele- vant Item, or companies which belong to companies indicated in Item 11 of the relevant Paragraph, and that do not belong to the CMTH Group and the names of the primary companies, and descriptions of the primary businesses: ed in a. to c. of Article 20, Paragraph 1, Item 2 of the ed in a. to c. of Article 20, Paragraph 1, Item names of pri- Consolidated Capital Adequacy Ratio Notification, mary companies, and descriptions of their primary businesses: • Of companies subject to items for deduction as indicated in • • Number of companies subject to items for deduction as indicat- Number of companies subject to items for deduction • Number of companies which belong to companies indicated • Overview of restrictions relating to transfer of funds and capi- • • Number of affiliates engaging in financial businesses applica- • • Of the CMTH Group, the number of consolidated sub- • • Difference between companies that belong to the group of between companies that belong to the Difference • Scope of Consolidation 242 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group *8. From theendof 2002 consolidatedfiscalterm(March31,2003),astointernalmanagementsystemrelating calculatio *7. Amount equivalenttointentionalholdingoffundraisingmeans ofotherfinancialinstitutionsasindicatedinArticle20,P *6. These arethoseindicatedinArticle18,Paragraph1, Items 4and5oftheConsolidatedCapitalAdequacyRatioNotification Meaning liabilityfundraisingmeansasindicatedinArticle18,Paragraph 1,Item3oftheConsolidatedCapitalAdequacyRa *5. *4. Fortrustaccountwithanagreementoncompensationforprincipal,amountbywhichqualifying reserveexceedsexpectedloss *3. Amountofportiontowhichstandardisedapproachisadoptedstated. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report *9. Consolidated capitaladequacy ratio(InternationalUnifiedStandard)as ofMarch31,2011,whichconstitutesacondition fo *2. Meaning thoseasprovidedinArticle17,Paragraph 2oftheConsolidatedCapitalAdequacyRatioNotification,inotherword *1. Composition ofcapitalandadequacyratio,etc.arecalculatedinaccordancewithFinancialServicesAgencyNotific Composition ofCapital(ConsolidatedAdequacyRatio(DomesticStandard)) Capital AdequacyRatio Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Item As ofMarch31 Consolidated CapitalAdequacyRatio(Domesticstandard)=(E)/(F)x100 Risk-Weighted Assets,etc. For Reference: Tier IICapital Tier ICapital cated inItem2above. Notification, amountequivalenttoinvestment in thosesetItem2oftherelevantparagraph,amountthatistobededuct those withredemptionperiodsexceedingfive years fromtheagreement. prescribed inArticle216 oftheConsolidatedCapitalAdequacyRatio Notification, is16.15%(TierIratio:11.42%). Type, ReportNo.30). dated capitaladequacyratio(theabovementioned examinationprocedureswereinaccordancewiththeJapaneseInstituteofCerti an accountingauditinaccordancewiththeGAAS, nordidwereceivetheiropinionontheconsolidatedcapitaladequacyratioit nation servicesbyDeloitteToucheTohmatsu LLC. Therelevantexaminationserviceswereanimplementationofproced adding astep-upinterestrateandotherspecialprovisions(includingnon-dilutivepreferredsecurities issuedbyoverseasSPC Notification”) andNo.79of2008. (4) Thatforwhichinterestpaymentobligationpostponement isallowed. (3) Shouldsupplementlosswhilebusinessisongoing, (2) Nottoberedeemed,exceptforincertaincases, (1) Unsecured,subordinatedtootherliabilities,andalreadypaid, (B)/(A) x100 (A)/(F) x100 Amount ArrivedatbyMultiplying25.0{(Amountarrivedmultiplyingtherateprescribed in Amount ArrivedatbyDividingOperationalRiskEquivalents8% Credit Risk-WeightedAssetAmount Capital Amount(E)=(A)+(C)-(D) Items forDeduction* Total TierIICapital(C) Amount NotCalculatedintoTierIICapital(-) Liability TypeFundraisingMeans Amount byWhichQualifyingReserveExceedsExpectedLossAmount* General ReserveforPossibleLoanLosses* Amount Equivalentto45%ofDifferencebetweenLandRevaluationandBookValueJustbefore Total TierICapital(A) Amount ofDeferredTaxAssetsDeducted(-) Total TierICapitalBeforeDeductionofDeferredTaxAssets(Totalamountaboverespectiveitems) Amount Equivalentto50%oftheExceedingExpectedLossfromQualifyingReserve(-) Amount EquivalenttoCapitalIncreaseDueSecuritizationTransactions(-) Intangible FixedAssetEquivalentPostedbyCorporateConsolidation,etc.(-) Goodwill EquivalentAamount(-) Trade RightEquivalentAmount(-) Minority InterestsofConsolidatedSubsidiariesandAffiliates Stock AcquisitionRights Foreign CurrencyTranslationAdjustment Evaluation LossonOtherSecurities(-) Projected AmountofDistributedIncome(-) Treasury StockApplicationMargin Treasury Stock(-) Retained Earnings Capital Surplus New StockApplicationMargin Capital Stock Total (F) the Notificationwithformerrequiredcapital)Minus(Amountofnewcapital)} by25.0 Off-balance SheetTransactionItems Asset (On-balanceSheet)Items Fixed-term SubordinatedBondsandPreferredStock* Perpetual SubordinatedBondsofAbove* Non-dilutive PreferredSecuritieswithStep-upInterestRateProvisionsofAbove* Non-dilutive PreferredSecuritiesIssuedbyOverseasSPCsAmongAbove Non-cumulative PerpetualPreferredStockofAbove 7 (D) 3 5 6 4 2 (B) tio Notification,andwhichhaveallthecharacteristicsasindicatedbelow: r adoptionandcontinuous useoftheinternalratings-basedapproach as n oftheconsolidatedcapitaladequacyratio,we havereceivedexami- . However,forfixed-termsubordinatedbonds, thereisalimitationto s). s, stock,etc.,thathastheprobabilityofredemptionincludingthose ed pursuanttotheprovisionsofItems36thereof andthoseindi- amountisnotposted. aragraph 1,Item1oftheConsolidatedCapital AdequacyRatio ation No.20of2006(the“ConsolidatedCapitalAdequacyRatio self, orinternalcontrolsrelatingtothecalculation oftheconsoli- ures agreeduponbetweenTohmatsuandus, and werenot fied PublicAccountants,CommitteeonAudit byBusiness 6,799,039 ¥ 261,608 ¥ 2011 5,779,933 6,333,775 1,119,416 465,264 553,842 343,748 234,500 109,247 343,747 791,115 791,115 183,500 187,874 405,988 10.74% 11.63% 16.46% 15,446 85,000 15,298 33,034 (2,129) 6,980 6,632 Millions ofYen 282 — — — — — — — — — — — — — 0 Consolidated 7,526,070 ¥ 261,608 ¥ 6,371,285 7,022,674 1,038,635 2010 503,395 651,389 319,251 202,500 116,750 319,250 742,425 742,425 183,500 187,805 377,592 11.44% 13.80% 23,041 85,000 13,602 20,401 35,304 13,264 9.86% (1,738) 270 — — — — — — — — — — — — — 0 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 243 ities ities ¥10.0 billion Series B: ¥31.0 billion Series A: ¥10.0 billion Variable dividend (no step-up) July 25 and January 25 every year July 25 and January 25 every year Redeemable voluntarily on each dividend payment Redeemable voluntarily on each (however, prior date in July 2014 and thereafter is required) approval by supervising agencies Series A: Fixed dividend initially (however, on and after the dividend payment date that comes after July 2019, variable dividend will be applied and a step-up dividend will be added) Series B: Fixed dividend initially (however, on and after the dividend payment date that comes after July 2019, variable dividend will be applied, and no dividend rate step-up will be added) Redeemable voluntarily on each dividend payment date in July 2019 and thereafter (however, prior approval by supervising agencies is required) Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel ¥30.0 billion ¥42.0 billion Same as on the left Same as on the left Same as on the left Same as on the left Same as on the leftSame as on the left Same as on the left Same as on the left Variable dividend (no step-up) July 25 and January 25 every year July 25 and January 25 every year Redeemable voluntarily on each dividend payment Redeemable voluntarily on each (however, prior date in July 2013 and thereafter is required) approval by supervising agencies Fixed dividend initially (however, on and after the dividend payment date that comes after July 2018, variable dividend will be applied and a step-up divi- dend will be added) Redeemable voluntarily on each dividend payment date in July 2018 and thereafter (however, prior approval by supervising agencies is required) ¥27.5 billion ¥33.0 billion No provisions No No provisionsprovisions No No provisions No No provisions No provisions March 1, 2007 March 15, 2008 December 16, 2008 March 25, 2002 March 24, 2003 22, 2004 March Variable dividend (no step-up) July 25 and January 25 every year July 25 and January 25 every year hen our capital adequacy ratio is below the MTH Preferred Capital 1 (Cayman) LimitedMTH Preferred Capital 1 (Cayman) MTH Preferred Capital 3 (Cayman) Limited MTH4 (Cayman) Limited Preferred Capital hen our capital adequacy ratio is below the MTH Preferred Capital 5 (Cayman) Limited MTH Preferred Capital 6 (Cayman) Limited CMTH Preferred Capital 7 (Cayman) Limited Dividend non-cumulative preferred securitiesDividend non-cumulative preferred Dividend non-cumulative preferred securities Dividend non-cumulative preferred secur Dividend non-cumulative preferred securities Dividend non-cumulative preferred securitiespreferred secur Dividend non-cumulative stock relating to the most recent fiscal year, effect that we are in a state of insolvency, standard required under the regulations, issuer. stock relating to the most recent fiscal year, effect that we are in a state of insolvency, standard required under the regulations, issuer. Shareholders of the preferred securities shall hold the right to claim the remaining assets of the sub- stantially same priority order as the preferred stock (1) A dividend on the preferred securities shall be paid within the scope of our distributable payments profit amount in the most recent fiscal year (if there is a dividend on our preferred stock, amount after deducting the amount) (2) Dividend occlusion conditions If any one of the following events is applicable, a div- idend on the preferred securities shall not be paid: (i) When we did not pay a dividend on our preferred (ii) to the When we deliver to the issuer a certificate (iii) W (iv) When not to pay dividend to we issue instructions (3) Compulsory dividend When we distribute a dividend on the common stock of the Company relating to the most recent fiscal year, a dividend on the preferred securities shall be made in the entire amount. However, the restrictions as in (1) and (2) (ii) (iii) above shall be applicable. Redeemable voluntarily on each dividend payment Redeemable voluntarily on each (however, prior date in July 2012 and thereafter is required) approval by supervising agencies Shareholders of the preferred securities shall hold the right to claim the remaining assets which is essentially at the substantially same priority order as the preferred stock Fixed dividend initially (however, on and after the dividend payment date that comes after July 2017, variable dividend will be applied and a step-up divi- dend will be added) (1) A dividend on the preferred securities shall be paid within the scope of our distributable payments profit amount in the most recent fiscal year (if there is a dividend on our preferred stock, amount after deducting the amount) (2) Dividend occlusion conditions If any one of the following events is applicable, a div- idend on preferred securities shall not be paid: (i) When we did not pay a dividend on our preferred (ii) When we deliver to the issuer a certificate to the (iii) W (iv) When we issue instructions not to pay dividend to (3) Compulsory dividend When we distribute a dividend on the common stock of the Company relating to the most recent fiscal year, a dividend on the preferred securities shall be made in the entire amount. However, the restrictions as in (1) and (2) (ii) (iii) above shall be applicable. Redeemable voluntarily on each dividend payment date in July 2017 and thereafter (however, prior approval by supervising agencies is required) Issuer Right to Claim the Remaining Assets Outline of Conditions with Regards to Dividend Payments Total Issue Amount Paid-in Date Dividend Payment Date Dividend Rate Redemption Date Voluntary Redemption Types of Securities Issued Issuer Right to Claim the Remaining Assets Outline of Conditions with Regards to Dividend Payments Dividend Rate Total Issue Amount Paid-in Date Dividend Payment Date Redemption Date Voluntary Redemption Types of Securities Issued CMTH issued “preferred investment securities issued by foreign SPCs” as follows, and, as for non-dilutive preferred foreign SPCs” as follows, and, as investment securities issued by CMTH issued “preferred Adequacy Ratio.” “Tier I Capital” of “Consolidated Capital SPCs, CMTH accounted for these in securities issued by 244 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Required CapitalAmount Capital AdequacyLevels *2. Calculation methodofrequiredcapitalamountforthecreditriskisasfollows(althoughCMTHGroupusesdomesticstan *1. Exposureregardingpurchasedreceivables,unsettledtransactions,leasetransactionsandotherassets. *2. Calculation methodofrequiredcapitalamounttocreditriskrelatingequityexposuresapplicabletheinternalrating of *1. Amount (2) Requiredcapitalamountforthecreditriskrelatingtoequityexposuresapplicableinternalratings-basedapproach (1) Requiredcapitalamountforcreditrisks(amountin(2)(3)shallbeexcluded) Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Classification As ofMarch31 Total Those ApplicabletotheTransitionalMeasure* PD/LGD Approach Market-based Approach Classification As ofMarch31 Total Securitization Exposure Portfolio ApplicabletotheInternalRatings-basedApproach Portfolio ApplicabletotheStandardisedApproach Those applicabletothetransitionalmeasure:(amountofcreditrisk-weightedasset x1.06)8%+capitaldeductionamount Those applicabletothePD/LGDapproach:(amountofcreditrisk-weightedassetx 1.06)x8%+expectedlossamountcapitalde Those applicabletosimpleriskweightmethodofthemarket-basedapproach:(amount ofcreditrisk-weightedassetx1.06)8% Group usesdomesticstandards,aswehaveadoptedthefoundationinternalratings-based approach,weuse8%forcalculationof Adequacy RatioNotification. capital deductionamount Portfolio whichtheinternalratings-basedapproachisapplicableandsecuritizationexposure:(amountofcreditrisk-weighteda Portfolio whichthestandardisedapproachisapplicable:amountofcreditrisk-weightedassetx8%+capitaldeduction internal ratings-basedapproach,weuse8%forcalculationoftherequiredcapitalamount) Simple RiskWeightMethod Other Exposures* Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Bank Exposures Sovereign Exposures Corporate Exposures Assets undertheStandardisedApproach Business UnitsundertheStandardisedApproach credit risk-weightedassetsiscalculatedbyplacingriskweightasbeing100%, pursuant toArticle13oftheSup 1 1 s-based approachisasfollows(althoughtheCMTH dard), aswehaveadoptedthefoundation sset x1.06)8%+expectedlossamount + capitaldeductionamount plementary RulesofConsolidatedCapital the requiredcapitalamount) duction amount 7,266 ¥ 2,666 ¥ 59,797 ¥ 490,230 ¥ 325,419 452,111 2011 2011 32,573 24,558 30,852 34,176 14,537 53,004 21,917 6,617 2,666 1,845 1,209 649 Millions ofYen Millions ofYen Consolidated ¥ 61,905 61,905 ¥ 7,248 ¥ 571,070 ¥ ¥81 384,760 525,611 2010 2010 34,414 27,409 38,209 38,688 18,891 54,299 25,780 6,650 1,957 1,233 598 81 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 245 — — — 899 3,886 2010 2010 2010 ¥ 73,237 ¥ 40,271 ¥ 40,271 ¥ 602,085 ¥ 68,451 — — — Millions of Yen Millions of Yen Millions of Yen 827 3,082 2011 2011 2011 ¥ 37,221 ¥ 37,221 ¥ 543,923 ¥ 65,168 ¥ 69,078 8% for calculation of the total amount of p uses domestic standards, as we have adopted Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel 1 the foundation internal ratings-based approach, we use 8% for calculation of the required capital amount) the foundation internal ratings-based approach, we use asset x 1.06) x 8% + expected loss amount + capital deduction amount Look-through formula: (amount of credit risk-weighted asset x 1.06) x 8% + capital deduction amount Other than look-through formula: (amount of credit risk-weighted Those Applicable to 400% Risk Weight Those Applicable to 1250% Risk Weight Those Applicable to consolidated required capital. Total Amount of Consolidated Required Capital* Standardised Approach Total Total Modified Simple Majority Method Modified Simple Majority Method Operational Standards Simple Risk Weight Method Look-through Formula As of March 31 Classification As of March 31 Classification As of March 31 Calculation Method (5) Total amount of consolidated required capital (5) Total amount of consolidated required (4) Required capital amount for operational risks (4) Required capital amount for operational (3) Required capital amount for the credit risk relating to funds (3) Required capital *1. (Total amount of credit risk-weighted asset + Operational risk equivalents/8%) x 8% *1. (Total amount of credit risk-weighted asset + Operational internal ratings-based approach, we use Although the CMTH Group uses domestic standards, as we have adopted the foundation *2. Note: Calculation method of required capital amount for the credit risk relating to funds is as follows (although the CMTH Grou Calculation method of required Note: 246 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Term-end BalanceofExposureRelevanttoCreditRisksandBreakdownbyPrimaryTypes Credit Risks(exceptforexposure relating tofundsandsecuritizationexposure) oe:1.Thefollowingvaluesareusedforaboveterm-endbalance: Notes: Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Classification As ofMarch31 Total Internal Ratings-basedApproach Standardised Approach Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. 2. Equity exposuresandotherassets,etc.asprovidedinArticle156oftheConsolidatedCapitalAdequacyRatioNotification( 4. Theaveragebalanceofexposureduringthetermisvalueforrespectivequarterlyterm-endbalances. 3. Theinternalratings-basedapproachapplicationexclusionportionisdescribedinthestandardisedapproach. Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment deferred taxassets,etc.)arenotincludedinabove. (4) Trustwithanagreementoncompensationforprincipal:amountgainedbydeductingpartialdirectwrite-offfromofe (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents;however,forrepo-styletransactions,exposureatdefaultafter (1) On-balance sheettransactions:amountgainedbydeductingpartialdirectwrite-offfromofdepreciation;however,fo dardised approach),amountgainedbydeductingvaluationgainsonothersecuritiesfrompostedtheconsolidatedbalan 14,523,475 ¥ 543,963 ¥ 13,979,512 1,196,137 1,919,548 2,711,562 9,220,281 2011 276,297 238,208 184,602 506,370 128,120 32,438 29,457 29,457 — — — — risk mitigation, prepaid pensionexpenses,fixedassets, Millions ofYen 15,531,772 ¥ 508,132 ¥ xposure atdefault. r applicationexclusionportion(stan- 15,023,640 1,651,650 2,396,603 3,416,291 9,099,584 2010 202,936 514,990 111,159 317,104 160,502 ce sheets, 27,025 30,525 30,525 — — — — Consolidated Average Balance during theTerm 507,001 ¥ 14,210,160 ¥ of Exposure 13,703,159 1,108,095 1,851,263 2,841,331 8,891,711 308,811 157,304 194,328 517,012 118,852 31,827 40,886 40,886 — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 247 4 — 233 1,353 93,110 28,148 26,791 18,049 237,973 514,990 202,932 2010 1,680,823 1,566,189 1,206,957 9,022,114 2,526,438 2,398,980 ¥ 15,531,772 ¥ 13,965,582 3 717 330 Millions of Yen 1,509 31,979 30,928 27,641 balance sheets, 100,479 228,886 505,653 184,599 2011 1,171,996 1,225,264 1,533,341 9,229,603 1,815,863 1,917,026 xposure at default. r application exclusion portion ¥ 14,523,475 ¥ 12,990,134 prepaid pension expenses, fixed assets, risk mitigation, Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel (standardised approach), amount gained by deducting valuation gains on other securities from amount posted on the consolidated (standardised approach), amount gained by deducting (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default after credit (2) Off-balance sheet transactions: credit equivalents; however, (3) Derivative transactions: credit equivalents, amount gained by deducting partial direct write-off from amount of e (4) Trust with an agreement on compensation for principal: (1) On-balance sheet transactions: amount gained by deducting partial direct write-off from amount of depreciation; however, fo On-balance sheet transactions: amount gained by deducting partial (1) deferred tax assets, etc.) are not included in above. Repo-style Transactions Other Commitment for Principal Trusts with an Agreement on Compensation Commitment for Principal Trusts with an Agreement on Compensation Repo-style Transactions Other 2. Equity exposures and other assets, etc. as provided in Article 156 of the Consolidated Capital Adequacy Ratio Notification ( Equity exposures and other assets, etc. 2. 3. The internal ratings-based approach application exclusion portion is described in the standardised approach. 3. The internal ratings-based approach application exclusion Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Securities Total Overseas Domestic As of March 31 Classification (1) Term-end balance of exposure by region and breakdown by primary types of exposure by region and breakdown (1) Term-end balance Notes: 1. The following values are used for above term-end balance: 248 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Thefollowingvaluesareusedforaboveterm-endbalance: Notes: (2) Term-endbalanceofexposurebybusinesstypeandbreakdownprimary Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Business Type As ofMarch31 Total Special InternationalFinancialTransactionAccountPortion Individual Business Corporations Financial Institutions Sovereign Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance Sheettransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Other Local PublicOrganizations Central GovernmentandBank 2. Equity exposures andotherassets,etc.asprovided inArticle156oftheConsolidatedCapital AdequacyRatioNotification( Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. deferred taxassets,etc.) arenotincludedinabove. (4) Trustwithanagreement oncompensationforprincipal:amount gainedbydeductingpartialdirectwrite-off fromamountofe (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents; however,forrepo-styletransactions,exposureatdefaultaftercredit (1) On-balance sheettransactions:amountgainedbydeductingpartialdirectwrite-off fromamountofdepreciation;however,fo Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment dardised approach),amountgainedbydeducting valuationgainsonothersecuritiesfromamountpostedtheconsolidated balan risk mitigation, prepaid pensionexpenses, fixedassets, 4,131,114 ¥ 14,523,475 ¥ r applicationexclusionportion(stan- xposure atdefault. 1,110,693 1,110,696 1,873,690 3,519,393 5,021,839 6,053,953 3,283,889 3,499,208 2011 420,197 139,969 570,242 195,429 429,306 801,775 535,006 411,111 501,107 498,391 156,047 215,319 ce sheets, 10,075 37,423 37,423 11,950 26,097 30,272 11,055 41,478 32,438 47,937 81,534 95,505 76,644 13,350 32,615 47,321 9,874 4,174 1,151 Millions ofYen 201 150 — — — — — — — — — — — — — — — — — — — 3 0 6 15,531,772 ¥ 5,000,734 ¥ 3,307,813 3,533,398 5,088,238 6,128,760 1,566,493 1,566,497 2,791,092 4,571,892 2010 162,813 225,584 441,466 538,204 466,432 214,302 279,886 434,254 842,020 195,343 176,759 384,111 26,858 26,858 13,588 49,182 73,939 22,798 35,884 27,025 24,341 52,604 75,275 11,793 12,009 27,935 32,228 11,861 44,730 1,233 4,293 216 640 — — — — — — — — — — — — — — — — — — — — 3 4 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 249 3 3 8 0 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 15 15 17 24 76 11 42 17 346 346 782 767 494 983 2,611 6,982 4,483 4,407 2,026 4,119 4,060 53,413 19,687 96,082 41,763 35,606 32,526 31,518 934,921 219,819 193,150 129,120 180,404 175,912 2010 ¥ 1,210,766 1 4 9 2 2 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 28 33 12 15 15 923 400 233 315 315 761 746 Millions of Yen 4,482 4,482 5,120 4,266 4,221 2,286 29,239 28,305 38,379 28,964 85,107 44,264 20,814 280,985 276,501 199,075 178,027 114,751 940,720 2011 ¥ 1,186,346 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Commitment on Compensation for Principal Trusts with an Agreement Repo-style Transactions Other Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Derivative Transactions Information Communications Electricity, Gas, Heating, Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing As of March 31 Business Type Reference: Term-end balance of exposure by business type relevant to business corporations and breakdown by primary type relevant to business corporations and breakdown balance of exposure by business type Reference: Term-end 250 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. oe:1.Thefollowingvalues areusedforaboveterm-endbalance: Notes: Business Type As ofMarch31 Total Other Various Services Real Estate Finance andInsurance Wholesale andRetail Transportation Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. 2. Equity exposuresandotherassets, etc.asprovidedinArticle156oftheConsolidatedCapitalAdequacyRatioNotification( Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal deferred taxassets,etc.)arenotincludedinabove. (4) Trustwithanagreementoncompensationforprincipal:amountgainedbydeducting partialdirectwrite-offfromamountofe (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents;however,forrepo-styletransactions, exposureatdefaultaftercredit (1) On-balance sheettransactions:amountgainedbydeductingpartialdirectwrite-offfromofdepreciation;however,fo dardised approach),amountgainedbydeductingvaluationgainsonothersecurities fromamountpostedontheconsolidatedbalan risk mitigation, prepaid pensionexpenses,fixedassets, 614,878 ¥ 6,053,953 ¥ r applicationexclusionportion(stan- xposure atdefault. 1,191,613 1,226,298 1,044,249 1,274,919 2011 533,987 459,623 519,442 275,209 356,125 100,074 128,246 238,057 184,797 440,745 43,713 48,597 29,889 11,713 22,971 14,156 16,224 21,069 44,029 15,208 18,718 29,234 43,388 37,204 19,385 80,472 12,972 ce sheets, 1,573 3,310 2,403 4,125 7,427 2,067 2,348 1,666 4,240 1,181 Millions ofYen 161 581 322 216 — — — — — — — — 6,128,760 ¥ 657,170 ¥ 1,124,041 1,322,545 1,192,029 1,245,943 2010 112,196 203,447 193,149 406,400 295,898 383,640 490,511 549,872 548,966 63,969 84,610 15,813 27,403 44,426 42,973 20,409 18,642 26,114 27,800 13,482 23,607 40,268 18,308 67,585 72,484 33,573 1,696 2,214 7,122 9,336 1,210 7,306 3,178 1,150 3,748 2,146 467 342 230 165 783 — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 251 — — — — — — — 3,481 1,092 2,097 5,777 3,219 1,877 3,854 9,372 6,555 7,119 2,605 30,955 30,838 27,025 39,838 34,741 23,047 67,091 44,023 33,982 74,162 96,686 15,443 946,115 198,588 834,091 216,011 212,821 935,710 968,606 559,192 313,971 218,317 766,264 152,168 241,983 145,297 127,248 2010 3,020,028 1,850,765 1,594,312 2,559,377 1,505,791 1,949,931 4,373,424 3,387,899 ¥ 15,531,772 ¥ 5,847,864 — — — — — — 919 Millions of Yen 5,083 6,557 5,617 6,669 7,362 3,335 2,331 25,378 20,110 32,438 11,147 10,550 59,824 47,537 47,265 27,652 16,277 77,673 99,645 19,621 29,094 50,929 89,917 17,076 ce sheets, 313,158 193,862 957,339 213,150 207,146 479,953 773,634 294,641 424,364 138,405 125,523 795,967 245,400 2011 3,439,422 1,390,714 1,144,303 2,411,794 1,230,156 1,561,808 1,015,473 4,362,163 3,388,878 xposure at default. r application exclusion portion (stan- ¥ 5,168,674 ¥ 14,523,475 prepaid pension expenses, fixed assets, risk mitigation, Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel dardised approach), amount gained by deducting valuation gains on other securities from amount posted on the consolidated balan dardised approach), amount gained by deducting valuation gains on other securities from amount posted on the (1) On-balance sheet transactions: amount gained by deducting partial direct write-off from amount of depreciation; however, fo On-balance (1) (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default after credit (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default (3) Derivative transactions: credit equivalents, from amount of e (4) Trust with an agreement on compensation for principal: amount gained by deducting partial direct write-off deferred tax assets, etc.) are not included in above. Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Commitment on Compensation for Principal Trusts with an Agreement Repo-style Transactions Other 2. Equity exposures and other assets, etc. as provided in Article 156 of the Consolidated Capital Adequacy Ratio Notification ( Equity exposures and other assets, etc. as provided in Article 156 of the Consolidated Capital 2. 3. Those of which remaining period is beyond recognition are included in “With no Provision for Period.” Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Derivative Transactions Total With no Provision for Period Over 7 Years Over 5 Years to 7 Years or Shorter Over 3 Years to 5 Years or Shorter Over 1 Year to 3 Years or Shorter Over 1 Year to 3 Years or 1 Year or Shorter As of March 31 Remaining Period Notes: 1. The following values are used for above term-end balance: (3) Term-end balance of exposure by remaining period and breakdown by primary type of exposure by remaining period and (3) Term-end balance 252 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Note: Equityexposuresisnotincludedin theabove. (i) Exposuresthreemonthsorlongeroverdue(thoseapplicabletothestandardisedapproach) (2) Term-endbalanceofexposurebybusinesstype 1.Equityexposuresisnotincludedintheabove. Notes: (1) Term-endbalanceofexposurebyregion Primary Type Term-end BalanceofExposuresThreeMonthsorLongerOverdueandinDefaultBreakdownby Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Business Type As ofMarch31 Total Special InternationalFinancialTransactionAccountPortion Individual Business Corporations Financial Institutions Sovereign Classification As ofMarch31 Total ratings-basedapproach) internal (Those applicabletothe Exposures inDefault (Those applicabletothestandardisedapproach) Exposures ThreeMonthsorLongerOverdue Other Various Services Real Estate Finance andInsurance Wholesale andRetail Transportation Information Communications Electricity, Gas,Heating,Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing Other Local PublicOrganizations Central GovernmentandBank 2. Internalratings-basedapproachapplicationexclusionportionisdescribedinthestandardisedapproach. 101,054 ¥ 12 ¥ oetcOverseas Domestic 101,041 5,227 ¥ ¥— 2011 5,227 106,281 ¥ 12 ¥ 106,269 oa Domestic Total Millions ofYen 128,740 ¥ ¥3 128,737 12 ¥ ¥— 2011 vresTotal Overseas 5,306 ¥ ¥— 11 12 — — — — — — — — — — — — — — — — 0 0 1 Millions ofYen 2010 5,306 ¥3 134,046 ¥ ¥3 ¥— 2010 134,043 — — — — — — — — — — — — — — — 0 0 0 0 1 3 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 253 — — — — — — — — 30 231 306 (294) 5,000 3,380 6,916 3,298 1,599 7,595 6,208 6,215 94,365 58,920 34,371 2010 (5,594) (5,300) Variance ¥ (8,111) ¥ (2,547) ¥— ¥ 134,043 during Term 2010 — — — — — — — 56 Millions of Yen 491 227 192 402 1,041 5,457 5,903 6,520 5,000 3,861 1,196 4,250 36,419 39,553 61,487 2011 24,156 19,906 Balance ¥ 53,410 ¥ 29,197 Term-end ¥ 106,269 ¥— Millions of Yen (50) (56) (8,468) (8,418) Variance ¥ 2,804 ¥ (5,720) during Term 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — 4,200 15,688 11,488 Balance Term-end ¥ 32,001 ¥ 47,690 Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel 2. General reserve for possible loan losses is not managed by region. Finance and Insurance Real Estate Various Services Other Fishery Mining Industry Construction Electricity, Gas, Heating, Water Information Communications Transportation Wholesale and Retail Other Manufacturing Agriculture Forestry Central Government and Central Bank Central Government Local Public Organizations Domestic Overseas Individual Account Portion Special International Financial Transaction Total Financial Institutions Business Corporations Sovereign As of March 31 Business Type Total Specified Overseas Receivables Reserve Account General Reserve for Possible Loan Losses Respective Reserve for Possible Loan Losses (-) Type of Reserve Years Ended March 31 (ii) Exposures in default (those applicable to the internal ratings-based approach) (those applicable to the internal ratings-based (ii) Exposures in default Notes: 1. Above is a description of the value in the bank account. (1) Balance of reserve by region Note: Equity exposures is not included in the above. during the Term of General Reserve for Possible Loan Losses, Respective Term-end Balance and Amount of Variance Specified Overseas Receivables Reserve Account Reserve for Possible Loan Losses, and 254 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Generalreserveforpossibleloanlossesandspecifiedoverseasreceivablesaccountarenotmanagedbybusinesst (2) Balanceofrespectivereserveforpossibleloanlossesbybusinesstype Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Business Type Years EndedMarch31 Total Special InternationalFinancialTransactionAccountPortion Individual Business Corporations Financial Institutions Sovereign Other Various Services Real Estate Finance andInsurance Wholesale andRetail Transportation Information Communications Electricity, Gas,Heating,Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing Other Local PublicOrganizations Central GovernmentandBank ¥— 15,688 ¥ Term-end Balance 7,231 4,200 4,257 1,489 4,334 381 107 816 94 — — — — — — — — — 3 0 1 2011 during Term ¥— (8,468) ¥ Variance (3,278) (8,566) (1,104) (3,476) (490) (246) 148 (50) (43) Millions ofYen 29 46 — — — — — — — — — ype. 0 Term-end ¥— 24,156 ¥ Balance 15,797 4,250 4,109 2,594 7,811 3,282 872 354 787 45 48 — — — — — — — — — 0 2010 during Term (5,594) ¥ ¥— Variance (1,750) (2,838) (6,678) (1,194) (2,990) 1,377 3,224 (852) (291) (294) 14 — — — — — — — — — 0 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 255 — — — — — — — — — — — 26 28 39 287 993 885 1,222 9,669 2,783 6,187 2010 ¥— ¥ 12,452 Amortized Amount of Loan 1 2 Millions of Yen — — — — — — — — — — 83 296 100 291 109 2,093 3,023 2,069 5,978 2011 ¥ 8,071 ¥— Amortized Amount of Loan Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel Transportation Wholesale and Retail Finance and Insurance Real Estate Various Services Other Forestry Fishery Mining Industry Construction Electricity, Gas, Heating, Water Information Communications Local Public Organizations Other Manufacturing Agriculture Central Government and Central Bank Central Government Total Individual Account Portion Special International Financial Transaction Financial Institutions Business Corporations Sovereign Business Type Years Ended March 31 Amount of Loan Amortized by Business Type Amount of Loan Amortized Note: Amount of loan amortized for trust account with an agreement on compensation for principal is included in the above. Note: Amount of loan amortized for trust account with an 256 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Note: As forbalance ofequityexposuresclassifiedintoothersecurities,smalleramounteither,thepostedonc Groupdoesnotholdloansforcommercialrealestate(withhighvolatility). Note: TheCMTH Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report GrouphasregisteredforapplicationofspecialexceptionsinArticle45theConsolidatedCapitalAdequacyRatioN * The CMTH Balance byRiskWeightClassificationforExposureApplicabletotheStandardisedApproach Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. (2) Balanceofequityexposuresusingsimpleriskweightmethodthemarket-basedapproach (1) Balanceofspecializedlendingusingslottingcriteria Exposures ApplicabletotheInternalRatings-basedApproach Risk Weight As ofMarch31 Risk Weight As ofMarch31 Risk Weight As ofMarch31 Total 400% 300% Total 250% 115% 90% 70% 50% 0% Total Capital Deduction Over 100%to150% Over 75%to100% Over 35%to75% Over 10%to35% Over 0%to10% 0% tions, etc.,soriskweightisuniformly100%.Theexposuresapplicabletotherelevantspecialexceptionsaredescribedin For balanceofequityexposuresthatisnotclassifiedintoothersecurities,theamount postedontheconsolidatedbalanceshe 543,963 ¥ 437,912 ¥ 21,155 84,564 258 12 59 — Applicable 2,197 ¥ ¥1 Rating 2011 2,195 — — — — — Applicable* 541,766 ¥ 437,911 ¥ Rating Not 21,155 82,369 258 Millions ofYen 59 12 — 371,711 ¥ 508,132 ¥ 105,401 20,693 10,048 “RatingNotApplicable”column. onsolidated balancesheetsoracquisitioncost. 273 — otification astoexposureorientedcorpora- 3 ets isused. 7,860 ¥ ¥— 8,206 ¥ 491,222 ¥ Applicable 2,904 ¥ ¥3 263,698 189,055 Rating 2011 2011 2010 13,368 13,994 2,901 7,860 2,897 — — — — — Millions ofYen Millions ofYen Applicable* Rating Not 371,708 ¥ 505,228 ¥ 546,623 ¥ 247 ¥ 29 ¥ 19,739 ¥ 102,500 280,057 176,472 2010 2010 20,693 10,048 30,767 11,283 28,303 273 217 — 3 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 257 6 — 1 1 1 32,200 22,455 19,747 20,827 Asset Items Asset Items Asset Items ¥ 506,684 ¥ 561,340 ¥ 459,044 ¥ 499,620 ¥ 1,121,587 ¥ 1,121,594 Off-balance Sheet Off-balance Sheet Off-balance Sheet — — 84,457 59,066 300,176 257,830 EAD Estimated Value* EAD Estimated Value* EAD Estimated Value* ¥ 5,023,216 ¥ 4,638,582 ¥ 4,765,647 ¥ 5,082,543 ¥ 2,573,271 ¥ 2,573,271 Asset Items Asset Items Asset Items On-balance Sheet On-balance Sheet On-balance Sheet estimated value of the respective internal lue. — 0.39% 0.39% 2010 2011 2011 60.39% 55.10% 48.61% 53.45% Average Average Average 161.66% 160.08% Weighted Weighted Weighted Risk Weight Risk Weight Risk Weight Millions of Yen Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — 44.11% 41.39% 41.25% 43.89% 44.96% 45.00% 44.96% 44.13% 41.04% 41.42% 43.94% Average Average Average Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel LGD Estimated LGD Estimated LGD Estimated Value Weighted Value Weighted Value Weighted — 0.43% 8.06% 2.23% 0.00% 0.00% 0.52% 8.31% 2.89% Average Average Average 100.00% 100.00% 100.00% PD Estimated PD Estimated PD Estimated Value Weighted Value Weighted Value Weighted ) ) ) ) or Worse ) or Worse ) or Worse Youchui-saki Youchui-saki Youchui-saki Youkanri-saki Youkanri-saki Youkanri-saki ) ) ) Seijou-saki Seijou-saki Seijou-saki (Not Including substandard debtors) (Not Including substandard debtors) (Not Including substandard debtors) ratings weighted with EAD estimated value, or the risk weight of the respective internal ratings weighted with EAD estimated va ratings weighted with EAD estimated value, or the risk weight Total Substandard Debtors ( Normal ( Substandard Debtors ( Total Normal ( Substandard Debtors ( Total Normal ( Classification As of March 31 Classification As of March 31 Requiring Careful Monitoring ( Requiring Careful Monitoring ( Classification As of March 31 Requiring Careful Monitoring ( *1. EAD estimated value is an amount that took into consideration the effect of the credit risk reduction method. *1. EAD estimated value is an amount that took into consideration debtor classifications and indicated. *2. Eleven internal ratings stages are integrated into three are either the PD estimated value weighted average, LGD estimated value weighted average, and risk weight weighted average *3. (1) Corporate exposures Portfolio Applicable to the Internal Ratings-based Approach Portfolio Applicable (2) Sovereign exposures 258 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group (3) Bankexposures Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report *3. PD estimatedvalueweightedaverage,LGDandriskweight weightedaverageareeitherthe *2. Eleveninternalratingsstagesareintegratedintothreedebtorclassificationsand indicated. *1. EADestimatedvalueisanamountthattookintoconsiderationtheeffectof creditriskreductionmethod. *3. PD estimatedvalueweightedaverage,LGDandriskweightaverageareeitherthe *2. Eleveninternalratingsstagesareintegratedintothreedebtorclassificationsandindicated. *1. EADestimatedvalueisanamountthattookintoconsiderationtheeffectofcreditriskreductionmethod. Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Requiring CarefulMonitoring( Requiring CarefulMonitoring( Requiring CarefulMonitoring( Classification As ofMarch31 Classification As ofMarch31 Classification As ofMarch31 Total Substandard Debtors( Normal ( Total Substandard Debtors( Normal ( Total Substandard Debtors( Normal ( ratings weightedwithEADestimatedvalue,ortheriskweightofrespectiveinternal ratingsweightedwithEADestimatedva ratings weightedwithEADestimatedvalue,ortheriskweightofrespectiveinternalva (Not Includingsubstandarddebtors) (Not Includingsubstandarddebtors) (Not Includingsubstandarddebtors) Seijou-saki Seijou-saki Seijou-saki ) ) ) Youkanri-saki Youkanri-saki Youkanri-saki Youchui-saki Youchui-saki Youchui-saki ) orWorse ) orWorse ) orWorse ) ) ) Value Weighted Value Weighted Value Weighted PD Estimated PD Estimated PD Estimated 100.00% Average Average Average 100.00% 100.00% 12.33% 0.83% 0.16% 0.92% 0.00% 0.00% 0.22% — — Value Weighted Value Weighted Value Weighted LGD Estimated LGD Estimated LGD Estimated Average Average Average 44.68% 45.00% 44.68% 44.96% 45.00% 44.96% 44.41% 45.00% 45.00% 44.40% — — Millions ofYen Millions ofYen Millions ofYen Risk Weight Risk Weight Risk Weight Weighted Weighted Weighted Average Average Average 217.13% 32.09% 32.31% 38.78% 38.85% 2011 2010 2010 0.31% 0.31% — — lue. lue. estimated valueoftherespectiveinternal estimated valueoftherespectiveinternal On-balance Sheet On-balance Sheet On-balance Sheet Asset Items Asset Items Asset Items 567,482 ¥ 562,482 ¥ 3,040,670 ¥ 3,040,670 ¥ 592,834 ¥ 598,640 ¥ EAD EstimatedValue* EAD EstimatedValue* EAD EstimatedValue* 5,000 5,000 806 — — — Off-balance Sheet Off-balance Sheet Off-balance Sheet 177,039 ¥ 177,039 ¥ 1,580,216 ¥ 1,580,209 ¥ 127,879 ¥ 127,879 ¥ Asset Items Asset Items Asset Items 1 1 1 — — — — — 6 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 259 1 1 1 — — — — ¥— ¥— ¥— ¥— Asset Items Asset Items Asset Items Off-balance Sheet Off-balance Sheet Off-balance Sheet 0 23 136 1,006 2010 EAD Estimated Value* EAD Estimated Value* EAD Estimated Value* ¥ 159,010 ¥ 490 ¥ 179,209 ¥ 180,353 ¥ 165,413 ¥ 165,437 Asset Items Asset Items Asset Items On-balance Sheet On-balance Sheet On-balance Sheet estimated value of the respective internal lue. 2010 2011 53.12% 172.28% 433.48% 171.52% Average Average Average 171.73% 565.08% 171.79% Weighted Weighted Weighted Risk Weight Risk Weight Risk Weight Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 1 Millions of Yen 90.00% 90.00% 90.00% 90.00% ¥ 213 90.00% 90.00% 90.00% 90.00% Average Average Asset Items Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel LGD Estimated LGD Estimated Value Weighted Value Weighted Off-balance Sheet 0.54% 7.38% 1.10% 0.63% 7.95% 0.63% EAD Estimated Value* 2011 100.00% Average Average 100.00% ¥ 87,522 PD Estimated PD Estimated Asset Items Value Weighted Value Weighted On-balance Sheet Average 54.43% Weighted ) ) Risk Weight ) or Worse ) or Worse Youchui-saki Youchui-saki Youkanri-saki Youkanri-saki ) ) Seijou-saki Seijou-saki (Not Including substandard debtors) (Not Including substandard debtors) (Not Including substandard ratings weighted with EAD estimated value, or the risk weight of the respective internal ratings weighted with EAD estimated va ratings weighted with EAD estimated value, or the risk weight Substandard Debtors ( Total Normal ( Substandard Debtors ( Substandard Debtors Total Normal ( As of March 31 Classification As of March 31 Classification As of March 31 Requiring Careful Monitoring ( Requiring Careful Monitoring ( Requiring Careful Monitoring *1. EAD estimated value is an amount that took into consideration the effect of the credit risk reduction method. *1. EAD estimated value is an amount that took into consideration debtor classifications and indicated. *2. Eleven internal ratings stages are integrated into three are either the PD estimated value weighted average, LGD estimated value weighted average, and risk weight weighted average *3. *1. EAD estimated value is an amount that takes into consideration the effect of credit risk reduction method. *2. This description is about exposure oriented to purchase business corporations that do not use top-down approach. *3. Risk weight weighted average is a value of risk weight weighted with EAD dilution. (5) Exposure relating to purchased receivables (4) Equity exposures using PD/LGD approach (4) Equity exposures 260 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group (6) Residentialmortgageexposures,qualifyingrevolvingretailandotherexposures Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report *3. PD estimatedvalueweighted average,LGDestimatedvalueweightedriskweight and weightedavera *2. Segmentedpoolclassificationisintegrated intoaboveclassificationsandshown. *1. EADestimatedvalueisanamountthat takesintoconsiderationtheeffectofcreditriskreductionmethod. Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Types ofExposure As ofMarch31 Types ofExposure As ofMarch31 Total Other Business TypeLoan Consumer Loan Residential Mortgage Total Other Business TypeLoan Consumer Loan Residential Mortgage which tomultiplythepre-withdrawalamount totheleftareestimatedvaluesorriskweightbyrespectivepoolclassifications Default Delinquent Not Delinquent Default Delinquent Not Delinquent Default Delinquent Not Delinquent Default Delinquent Not Delinquent Default Delinquent Not Delinquent Default Delinquent Not Delinquent Default Delinquent Not Delinquent Default Delinquent Not Delinquent Value Weighted Value Weighted PD Estimated PD Estimated 100.00% 100.00% 100.00% 100.00% Average Average 100.00% 100.00% 100.00% 100.00% 26.95% 26.39% 36.74% 38.75% 27.78% 28.76% 0.19% 0.92% 0.91% 1.64% 1.01% 1.56% 1.04% 1.48% 0.96% 0.22% — — Value Weighted Value Weighted LGD Estimated LGD Estimated Average Average 35.45% 88.81% 24.64% 57.28% 36.72% 32.91% 59.86% 68.34% 70.93% 31.11% 34.44% 34.48% 35.44% 91.74% 21.40% 66.13% 42.09% 36.84% 57.59% 69.69% 72.09% 31.86% 34.11% 34.14% — — Risk Weight Risk Weight Weighted Weighted 187.49% 211.46% Average Average 195.41% 208.93% 46.49% 57.53% 13.68% 17.28% 31.08% 77.08% 27.80% 18.79% 27.71% 79.79% 36.70% 12.38% 45.93% 43.05% 14.98% 4.02% Millions ofYen Millions ofYen — — — — — — 2011 2010 On-balance Sheet On-balance Sheet Asset Items Asset Items 3,182,305 ¥ 2,942,491 ¥ 2,935,219 ¥ 3,190,460 ¥ EAD EstimatedValue* EAD EstimatedValue* 120,097 136,497 45,761 24,067 31,506 10,641 49,291 17,662 31,655 2,788 4,186 1,586 9,659 2,160 4,036 1,516 102 827 105 903 — — Off-balance Sheet Off-balance Sheet 208,060 ¥ 162,766 ¥ 217,098 ¥ 167,384 ¥ Asset Items Asset Items 41,816 45,705 2,490 2,580 weighted withEADestimatedvalue. 945 170 141 578 153 110 1 1 22 58 83 — 23 55 61 — 5 1 3 1 ge ofestimatedvalueassessmentrateby Pre-withdrawal Pre-withdrawal Commitment Commitment 5,226 ¥ 154,332 ¥ 3,210 ¥ 154,700 ¥ Amount Amount 148,131 150,446 141 205 550 115 138 188 503 23 22 94 — — 23 — — — 5 1 3 1 Assessment Ratewhich Assessment Ratewhich Weighted Averageof Weighted Averageof is tobeMultipliedby is tobeMultipliedby the Non-withdrawal the Non-withdrawal Amount totheLeft Amount totheLeft Estimated Valueof Estimated Valueof 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 30.75% 29.43% 30.44% 28.18% 31.90% 28.47% 30.99% 30.32% — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 261 — 56 (88) (50) (191) 1,347 3,035 1,761 1,206 (3,477) 2010 11,167 11,534 ¥ 95,818 ¥ 67,056 ¥ (17,352) ¥ (14,892) with Actual Comparison Loss Amount of Loss Amount Estimated Value for Previous Term 41 — 88 Millions of Yen 921 191 4,250 3,623 5,574 2,800 1,225 8,739 2010 2011 12,554 Amount ¥ 25,741 ¥ 39,469 ¥ 51,958 ¥ 78,241 Actual Loss Millions of Yen of Loss Amount Estimated Value amount, special foreign receivables management), respective reserve for possi- to have accrued in each fiscal year with March ss on waiver of receivables, amount relating 0 — — 4,200 4,970 2,097 e: 2011 Amount ¥ 10,849 ¥ 22,117 Actual Loss Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel General reserve for possible loan losses provision amount, special reserve provision amount debt, rewrite-off reserve provision General reserve for possible loan losses provision amount, relating to derivatives (up to here, portion for party requiring reserve account provision amount, credit risk adjusted amount loss provision amount, debt write-off, loss on sale of receivables, lo ble loan losses provision amount, reserve for contingent loss on sale. to equity exposures applicable to the PD/LGD approach, 31, 2010 and 2011 as the reference date, respectively. Actual loss amount for the fiscal year ended March 31, 2011 decreased by ¥17.3 billion compared with the fiscal year ended March 31, 2011 decreased by ¥17.3 billion compared with the fiscal Actual loss amount for the fiscal year new in losses associated with corporate exposures, due to the low level of This was primarily attributable to a reduction Other Retail Exposures Total Equity Exposures Applicable to the PD/LGD Approach Residential Mortgage Exposures Qualifying Revolving Retail Exposures Corporate Exposures Sovereign Exposures Bank Exposures Qualifying Revolving Retail Exposures Other Retail Exposures Total Bank Exposures Approach Equity Exposures Applicable to the PD/LGD Residential Mortgage Exposures Corporate Exposures Sovereign Exposures Classification Years Ended March 31 Classification Years Ended March 31 Note: Estimated value of loss amount (= EAD estimated value x PD estimated value x LGD estimated value) is the value estimated Note: Estimated Value of Loss Amount of Portfolio Applicable to the Internal Ratings-based Approach Estimated Value of Loss Amount of Portfolio ended March 31, 2010. nonperforming loans. Analysis of Factors Note: Actual loss amount is a total of the following amounts relating to exposures in default, not including reversal of reserv Actual loss amount is a total Note: Actual Loss Amounts of Portfolio Applicable to the Internal Ratings-based Approach in the Most Recent Term / Actual Ratings-based Approach in the Most of Portfolio Applicable to the Internal Actual Loss Amounts Actual Amounts Term, and Comparison with Past Amounts of the Relevant 262 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Amount ofExposuretowhichGuaranteesandCreditDerivativesHaveBeenApplied Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Amount ofExposuretowhichCreditRiskReductionMethodhasbeenApplied Credit RiskMitigationMeasures Classification As ofMarch31 Classification As ofMarch31 Total Internal Ratings-basedApproach Standardised Approach Total Internal Ratings-basedApproach Standardised Approach Classification As ofMarch31 Total Internal Ratings-basedApproach Standardised Approach Bank Exposures Sovereign Exposures Corporate Exposures Bank Exposures Sovereign Exposures Corporate Exposures Bank Exposures Sovereign Exposures Corporate Exposures Financial AssetCollateral Financial AssetCollateral Amount ofExposureto Amount ofExposure Amount ofExposure have beenApplied to whichQualified to whichQualified which Guarantees has beenApplied has beenApplied ¥— 1,181,427 ¥ 129,519 ¥ ¥— 1,717,107 ¥ ¥— 1,181,427 1,170,713 1,704,855 1,717,107 129,519 10,714 41,088 85,115 12,252 3,316 — — 2011 which CreditDerivatives Amount ofExposureto Receivables Collateral Receivables Collateral Amount ofExposure Amount ofExposure have beenApplied to whichQualified to whichQualified has beenApplied has beenApplied 3,062 ¥ ¥— ¥— ¥— 6,131 ¥ ¥— 3,062 3,062 6,131 6,131 — — — — — — — — Millions ofYen Millions ofYen Millions ofYen 2011 2010 Amount ofExposureto Real EstateCollateral Real EstateCollateral Amount ofExposure Amount ofExposure have beenApplied to whichQualified to whichQualified which Guarantees has beenApplied has beenApplied 562,188 ¥ ¥— 101,516 ¥ ¥— 587,113 ¥ ¥— 550,224 562,188 101,516 570,346 587,113 11,964 42,392 55,596 16,766 3,527 — — 2010 which CreditDerivatives Amount ofExposureto Amount ofExposure Amount ofExposure have beenApplied to whichQualified to whichQualified has beenApplied has beenApplied Other Collateral Other Collateral Consolidated 47,200 ¥ ¥— ¥— ¥— ¥— 37,674 ¥ 47,200 47,200 37,674 37,674 — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 263 — 724 48,591 2010 2010 2010 229,678 185,830 ¥ 93,163 ¥ 185,830 ¥ 195,379 Consolidated Name — 78 Millions of Yen Millions of Yen Millions of Yen 50,640 2011 2011 2011 260,825 196,203 ¥ 115,342 ¥ 196,203 ¥ 185,937 Currrent exposure method Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel Netting Contracts (Loss) (for derivative product transactions, credit equivalents for each transaction classification are included) (for derivative product transactions, credit by Collateral Exchange Related Transactions Of which, those corresponding to Foreign Rate Related Transactions Of which, those corresponding to Interest Settlement Period Transactions Of which, those corresponding to Long-term Of which, those corresponding to Other Transactions of Credit Risk Reduction via Collective Liquidation Of which, those corresponding to the Effect Credit Equivalents before Taking into Consideration the Effect of Credit Risk Reduction Method Credit Equivalents before Taking into Consideration Total Gross Reconstruction Cost Amount Method Used for Calculation of Credit Equivalents Method Used for Calculation Total Amount as Indicated in (2) and Gross Add-on Total Minus the Amount as Indicated in (3) Total Amount as Indicated in (2) and Gross Add-on Total Minus the Amount as Indicated As of March 31 As of March 31 As of March 31 (3) Credit equivalents before taking into consideration effect of credit risk reduction method by collateral Credit equivalents before taking into consideration effect (3) (2) Total amount of gross reconstruction cost (not less than zero) gross reconstruction cost (not less than (2) Total amount of (1) Method used for calculation of credit equivalents (1) Method used for (4) Total amount as indicated in (2) plus total amount of gross add-on minus the amount indicated in (3) (4) Total amount as indicated in (2) plus Long-term Transactions Settlement Period Risks of Transaction Partners in Derivative Products Transactions and Transactions Partners in Derivative Products Risks of Transaction 264 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Amountofcollateralisindicatedatmarketvalue. Notes: Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. (7) Creditderivativepredictedprincipalamountthatwillbesubjecttocalculationofcreditequivalents (5) Amountbytypeofcollateral (8) Estimatedamountofprincipalcreditderivativesusedto takeintoconsiderationtheeffectofcreditriskreductionmet (6) Creditequivalentsaftertakingintoconsiderationtheeffectofcreditriskreductionmethodbycollateral lsiiaino ucaeo rvso Type ofCreditDerivative Classification ofPurchaseorProvision As ofMarch31 As ofMarch31 As ofMarch31 Total Protection Provision Total Protection Purchase As ofMarch31 Total Deposited Collateral Total Accepted Collateral lsiiaino cetneo rvso Type ofCollateral Classification ofAcceptanceorProvision Estimated AmountofPrincipal of CreditDerivativesUsedtoTakeintoConsideration Credit EquivalentsafterTakingintoConsiderationtheEffectofRiskReductionMethod by Collateral the EffectofCreditRiskReduction Method 2. Ofdepositedcollateral,¥25,072million(asofMarch31,2010)and¥23,4952011)arewit Other Credit LinkedNotes Credit DefaultSwap Other Credit LinkedNotes Credit DefaultSwap Other Cash US Bonds Domestic Stocks Government Bonds Other Cash US Bonds Domestic Stocks Government Bonds h liquidationinstitutions,etc. 110,788 ¥ 36,269 ¥ 18,889 ¥ 10,246 ¥ 5,919 ¥ ¥— 68,000 ¥ 5,000 ¥ ¥— ¥— Predicted Principal 2011 2011 2011 2011 15,494 63,000 1,640 4,326 245 Millions ofYen Millions ofYen Millions ofYen Millions ofYen — — — — — — — Predicted 24,293 ¥ 6,810 ¥ 3,205 ¥ 43,049 ¥ ¥— 15,000 ¥ ¥— ¥— 89,560 ¥ 78,000 ¥ Principal 17,343 63,000 2010 2010 2010 2010 1,098 3,605 313 — — — — — — — hod Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 265 — — — — — — — — 202 202 2010 2010 ¥— ¥ 202 506,175 Exposure ¥ 190,459 ¥ 190,459 ¥ 506,175 ¥ 506,175 Amount of Current Term Loss Amount in Consolidated 2010 — — — — — Millions of Yen Millions of Yen — — — 1,800 1,800 2011 2011 438,775 ¥— ¥ 1,800 Exposure Exposure Amount of Amount of ¥ 186,299 ¥ 186,299 ¥ 438,775 ¥ 438,775 Millions of Yen — — — 362 362 ¥— ¥ 362 Current Term Loss Amount in 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — 2,629 2,629 ¥— ¥ 2,629 Exposure Amount of Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel default amount, loss amount in current term, and breakdown by type of these primary original assets default amount, loss amount in current Residential Mortgage Other Residential Mortgage Other Other Residential Mortgage Other Residential Mortgage Residential Mortgage Other Total Total Amount of Original Assets Amount of Original Assets of Synthetic-type Securitization Transactions Amount of Original Assets of Synthetic-type Amount of Original Assets of Asset Transfer-type Securitization Transactions of Asset Transfer-type Securitization Amount of Original Assets Type of Original Assets As of March 31 Total Exposures in Default Exposures Three Months or Longer Overdue As of March 31 Form of Securitization Classification As of March 31 (1) Total amount of original assets and breakdown by type of these primary original assets original assets and breakdown by type (1) Total amount of Securitization Exposure of which the CMTH Group is the Originator of which the CMTH Group is the Securitization Exposure (3) Amount of securitization exposure held and breakdown by type of these primary original assets (3) Amount of securitization exposure held and breakdown by type of these Securitization Exposure (2) Of exposure composing original assets, amount of exposures three months or longer overdue or exposures in Of exposure composing original assets, amount of exposures (2) 266 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group (4) Balanceofsecuritizationexposureheldbyriskweightclassificationappropriatenumberandrequiredcapitalamount Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (10) Amount ofcreditrisk-weightedassetscalculatedthrough applicationofArticle15theSupplementaryRules (9) Amount ofprofit/lossonsalerecognizedduringthetermaccompanyingsecuritizationtransactionsand breakdown (8) Outlineofexposuresecuritizedincurrentterm (7) Mattersconcerningsecuritizationexposurewithearlyredemptionprovisions (6) Amount ofsecuritizationexposuretobedeductedfromcapitalpursuantprovisionsArticle225the (5) Capitalequivalentamountincreasedduetosecuritizationtransactionandbreakdownbyoriginalassettype Note: Requiredcapitalamount=(creditrisk-weightedassetx1.06)8%+expectedloss Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Risk Weight As ofMarch31 Type ofOriginalAssets As ofMarch31 Type ofOriginalAssets As ofMarch31 Total Capital Deduction 100% toLessthan350% 50% toLessthan100% 20% toLessthan50% Less than20% Total Other Residential Mortgage Total Other Residential Mortgage N.A. N.A. N.A. N.A. by primaryoriginalassettype Consolidated CapitalAdequacyRatioNotificationandbreakdownbyoriginalassettype Consolidated CapitalAdequacy RatioNotification 188,982 ¥ ¥— Balance 186,299 2,682 — — 2011 Required Capital 12,596 ¥ ¥— Amount 2,682 9,913 Millions ofYen — — 2,682 ¥ ¥— 15,298 ¥ 15,298 ¥ 193,142 ¥ ¥— Balance 190,459 2011 2011 2,682 2,682 Millions ofYen Millions ofYen — — — 2010 Required Capital ¥ 14,151 14,151 ¥ ¥— 2,745 ¥ ¥— 20,401 ¥ 20,401 ¥ Amount 11,468 2010 2010 2,682 2,745 — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 267 — — 95 63 970 348 4,111 7,534 1,368 1,210 51,278 20,383 2010 2010 Required ¥ 3,594 ¥ 174,405 ¥ 571 ¥— ¥63 ¥ 90,126 Capital Amount 2010 — — — Millions of Yen Millions of Yen 249 4,111 9,453 9,635 2,950 4,614 48,959 28,553 52,763 2011 2011 Balance ¥ 92,530 ¥ 174,405 ¥— ¥— ¥ 157,475 ¥ 78,058 Millions of Yen — — — 975 1,463 ¥ 518 ¥ 2,957 Required Capital Amount 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — 35,718 34,506 Balance ¥ 87,250 ¥ 157,475 Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel Consolidated Capital Adequacy Ratio Notification Adequacy Ratio Notification and breakdown by type of original asset N.A. Total Residential Mortgage Other Securitization of Business (WBS) such as Installment Receivables (ABS) Asset-backed Securities of Monetary Receivables Total Debt Collateral Certificate Using Credit Derivative (Synthetic CDO) Debt Collateral Certificate Credit Linked Notes (CLN) First to Default Type Collateralized Loan Obligation (CLO) Residential Mortgage Backed Securities (RMBS) Residential Mortgage (MCMBS) Commercial-use Real Estate Backed Securities Multi-borrower Type As of March 31 Breakdown of Original Assets 100% to Less than 350% 350% to Less than 1250% Capital Deduction Total Less than 20% 20% to Less than 50% 50% to Less than 100% As of March 31 Breakdown of Original Assets Risk Weight As of March 31 (1) Amount of securitization exposure held and breakdown by primary original asset type exposure held and breakdown (1) Amount of securitization Securitization Exposure in which the CMTH Group is the Investor in which the CMTH Group is the Securitization Exposure (4) Amount of credit risk-weighted asset calculated with application of Article 15 of the Supplementary Rules of Amount (4) (3) Amount of securitization exposure deducted from capital pursuant to provisions of Article 225 of the Capital exposure deducted from capital pursuant to provisions of Article 225 Amount of securitization (3) Note: Required capital amount = (credit risk-weighted asset amount x 1.06) x 8% Note: Required capital amount = (credit risk-weighted asset (2) Balance of securitization exposure held by risk weight classification of appropriate number and required capital amount of securitization exposure held by risk weight classification of appropriate Balance (2) 268 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Consolidated StatementsofIncome Amount ofAppraisalProfit/LossRecognizedontheConsolidatedBalanceSheetsandNot Amount ofProfit/LossAccompanyingSaleandWrite-OffEquityExposures Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Ratio Notification Amount CalculatedintoTierIICapitalPursuanttoArticle 6,Paragraph1oftheConsolidatedCapitalAdequacy Consolidated StatementsofIncome Amount ofAppraisalProfit/LossNotRecognizedontheConsolidatedBalanceSheetsand Note: Appraisalprofit/lossrelatingtoothersecurities(domesticandforeignstocks)thatfallunderequityexposuresisdesc Amount PostedontheConsolidatedBalanceSheetsandMarketValue Equity Exposures inBankAccounts Note: Profit/lossonstocksstatedtheconsolidatedstatementsofincomeisdescribedinabove. Note: Equityexposuresfordomesticandforeignstocksaredescribedintheabove. As ofMarch31 Breakdown As ofMarch31 Amount ofAppraisalProfit/LossRecognizedontheConsolidatedBalanceSheetsand Total Amortization Loss(-) Profit/Loss onSale Classification As ofMarch31 Total Equity ExposuresOtherthanAbove Listed EquityExposures N.A. N.A. Not RecognizedontheConsolidatedStatementsofIncome on theConsolidated Amount Posted Balance Sheets 595,457 ¥ 486,051 ¥ 109,406 2011 Market Value 486,051 ¥ ribed intheabove. Millions ofYen on theConsolidated Amount Posted Balance Sheets 38,215 ¥ 2,925 ¥ 9,618 ¥ 657,377 ¥ 546,986 ¥ 110,391 2011 2011 6,692 Millions ofYen Millions ofYen 2010 Consolidated Market Value 546,986 ¥ 73,006 ¥ 12,238 ¥ 14,477 ¥ 2010 2010 2,238 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 269 — 488 488 83,188 2010 2010 2010 2010 ¥ 398,539 ¥— ¥ 488 ¥— ¥— ¥— ¥ 488 ¥ 315,350 Consolidated — lance sheets or the Millions of Yen Millions of Yen Millions of Yen Millions of Yen 482 482 82,753 2011 2011 2011 2011 ¥ 296,281 ¥ 379,034 ¥— ¥ 482 ¥— ¥— ¥— ¥ 482 cipal. ce sheets is used. with an agreement on compensation for principal. Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Former Chuo Mitsui Trust Holdings, Inc. Holdings, Mitsui Trust Chuo Data: Former Disclosure II Quantitative Basel amount of equity exposures classified into other securities, smaller amount of either, the amount posted on the consolidated ba classified into other securities, smaller amount of either, amount of equity exposures acquisition cost is used. amount posted on the consolidated balan exposures that is not classified into other securities, the As for the amount of equity Equity Exposures Other than Above Total Listed Equity Exposures Total Profit/Loss on Sale Amortization Loss (-) As of March 31 Classification As of March 31 Breakdown Total Listed Equity Exposures Equity Exposures Other than Above Listed Equity Exposures than Above Equity Exposures Other Total As of March 31 Classification As of March 31 Classification Note: Profit/loss on sale and loss on amortization is the amount in accordance with the accounting processing of trust accounts Note: Profit/loss on sale and loss on amortization is the amount in accordance with the accounting processing of Amount of Equity Exposures Applicable to Article 13 (Transitional Measure) of the Supplementary Rules of Amount of Equity Exposures Applicable to Article 13 (Transitional Measure) Agreement on Compensation for Principal Consolidated Capital Adequacy Ratio Notification in Trust Accounts with an Amount of Profit/Loss Accompanying Sale and Write-Off of Equity Exposures in Trust Accounts with an Agreement on Sale and Write-Off of Equity Exposures in Trust Accounts with an Agreement Amount of Profit/Loss Accompanying Compensation for Principal Note: Term-end balance is the amount based on accounting processing of trust account with an agreement on compensation for prin Note: Term-end balance is the amount based on accounting Reference: Reference: on Compensation for Principal Account with an Agreement in Trust Equity Exposures Note: As forNote: the Term-end Balance in Trust Account with an Agreement on Compensation for Principal Term-end Balance in Trust Account with Amount of Equity Exposures Applicable to Article 13 (Transitional measure) of the Supplementary Rules of measure) of the Supplementary Applicable to Article 13 (Transitional Amount of Equity Exposures Adequacy Ratio Notification Consolidated Capital 270 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ManagementwithRegard toInterestInternal RateRisk in BankAccounts Interest RateShockUsedbytheCMTHGroup for Variation AmountofProfit/Loss orEconomicValue from Exposure RelatingtoFunds Basel IIQuantitativeDisclosureData:FormerChuoMitsuiTrustHoldings,Inc. Note: Calculationisdonebythesamemethodasoutlierstandardprovidedin“GeneralSupervisionGuidelinesforMajorB *4. ExposureinwhichtherespectiveassetsbackingupFund,etc.arenotobvious,anddoesfallunder1to3above. *3. Exposure inwhichthecomposingassetsofFund,etc.arepredictablesinceoperationalstandardsdeterminedeve *2. ExposureinwhichequityexposuresmakesupamajorityoftheassetsbackingFund,etc. *1. Ininvestmenttrusts,funds,repackagedbonds,etc.(the“Fund,etc.”),theexposureinwhichrespectivebackedassets As ofMarch31 Calculation Method As ofMarch31 Variation AmountofProfit/LossorEconomicValuefromInterestRateShock Total Exposure ApplicabletoSimpleRiskWeightMethod* Exposure ApplicabletoInvestmentCriteriaFormula* Exposure ApplicabletoModifiedSimpleMajorityMethod* Exposure ApplicabletoLook-throughFormula* Fund, etc.arenotobvious. Those Applicableto1250%RiskWeight Those Applicableto400%RiskWeight Core deposittobeapplied:50%ofcurrentbalanceliquid(ordinarydeposit,etc.) Interest rateshocktobeapplied:99percentilevalueofinterestvolatilitymeasuredwitharetentionperiod1year basis andforCMABonanon-consolidatedisindicated. Since subjectassetsinconsolidationtargetcompaniesotherthanbanksubsidiariesareveryfew,thetotalsumofvalueca 1 3 4 2 are obvious. nd observationperiodof5years. anks.” lculated forCMTBonanon-consolidated n thoughtherespectiveassetsthatbackup 375,546 ¥ 363,025 ¥ 54,090 ¥ 2011 2011 10,007 2,512 Millions ofYen Millions ofYen — — — Consolidated Consolidated 388,260 ¥ 372,392 ¥ ¥ 64,909 64,909 ¥ 2010 2010 13,024 2,843 — — — omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former Basel II Quantitative Disclosure Data: Inc. Holdings, Trust
The Chuo Mitsui Trust and Banking Company, Limited (“CMTB”) Data/ Financial Consolidated Means of Capital Procurement 272 Credit Risk-Weighted Assets 272 akn opn,Limited Company, Banking
Operational Risks 272 and Trust Mitsui Chuo The
Scope of Consolidation 273 Data/ Financial Capital Adequacy Ratio 274 Capital Adequacy Levels 275 Credit Risks (except for exposure relating to funds and securitization exposure) 277 Credit Risk Mitigation Measures 293 hoMtu se rs and Trust Asset Mitsui Chuo Risks of Transaction Partners in Derivative Products Transactions and Limited Company, Banking Long-term Settlement Period Transactions 294 Data/ Financial Securitization Exposure 296 Equity Exposures in Bank Accounts 299 Reference: Equity Exposures in Trust Account with an Agreement on Compensation for Principal 300 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel Exposure Relating to Funds 301 Mitsui Chuo Former rs Group Trust Variation Amount of Profit/Loss or Economic Value from Interest Rate Shock Used by the CMTB Group for Internal Management with Regard to Interest Rate Risk in Bank Accounts 301 Non-consolidated Means of Capital Procurement 302 ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former Credit Risk-Weighted Assets 302 Inc. Holdings, Trust Operational Risks 302 Capital Adequacy Ratio 303 Capital Adequacy Levels 304 Credit Risks (except for exposure relating to funds and securitization exposure) 306 akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The Credit Risk Mitigation Measures 321 Data/ Disclosure Quantitative II Basel Risks of Transaction Partners in Derivative Products Transactions and Long-term Settlement Period Transactions 322 Securitization Exposure 324 Equity Exposures in Bank Accounts 326 Reference: ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo Equity Exposures in Trust Account with an Agreement on Compensation for Principal 327 Limited Company, Banking Exposure Relating to Funds 328 Variation Amount of Profit/Loss or Economic Value from Interest Rate Shock Used by CMTB for Internal Management with Regard to Interest Rate Risk in Bank Accounts 328
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 271 272 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report thestandardisedapproach • Methodusedincalculationof operationalriskequivalents: Operational Risks 5. SecuritizationExposure 4. Ratingagencyusedforthestandardisedapproach: 3. Phasedroll-outapplication: 2. Scope ofapplicationtheinternalrating-basedapproach 1. Typeofinternalratings-basedapproachtobeused: Credit Risk-Weighted Assets Fixed-term subordinatedbonds Perpetual subordinatedbonds Common stock Means ofCapitalProcurement The ChuoMitsuiTrust andBankingCompany, Limited Basel IIQuantitativeDisclosureData: and scopeofapplicationthestandardisedapproach: Rating agencytobeused: Credit risk-weightedassetamountcalculationmethod: Fitch RatingsLimited Standard &Poor’sRatingsServices Moody’s InvestorsServiceInc. Japan CreditRatingAgency,Ltd. Rating andInvestmentInformation,Inc. - forthosewithoutexternalratingsandnotpossibletoascer- - forthosewithoutexternalratingsbutpossibletoascertainthe - forthosewithexternalratings:theratings-based However, forcorporateexposures,weapply100%riskweighttoall. Rating andInvestmentInformation,Inc. N.A. (as ofendMarch,2011) are thebusinessunitsforwhichapplicationwasexcluded 12 companieswithinthescopeofconsolidationCMTB Business unitswhoseprimarybusinessisnotcreditbusiness. Business unitsunderthestandardisedapproach credit riskmanagement. ings-based approachandbesidesthereislittlesignificancein assets towhichitispracticallydifficultapplytheinternalrat- Assets notoccurringtheincidentaltocredittransactionsor Assets underthestandardisedapproach cation andthestandardisedapproachisused. the followingscopeshallbeconsideredexemptedfromappli- internal ratings-basedapproachisusedinprinciple,however, for calculationofcreditrisk-weightedassets,thefoundation the foundationinternalratings-basedapproach exposure: capitaldeduction tain theoriginalassetsthatbackuprelevantsecuritization sure: supervisoryformula original assetsthatbackuptherelevantsecuritizationexpo- approach Consolidated Consolidated Consolidated Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 273 Consolidated Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report The consolidated capital adequacy ratio is calculated by includ- The consolidated capital that are not consolidated, since Article ing financial subsidiaries Consolidated Financial Statements Rules 5, Paragraph 2 of the that are within the scope of con- is applicable, with companies of consolidated financial statements solidation in preparation subsidiaries: 15 Number of consolidated subsidiaries: Primary consolidated Co., Ltd. Chuo Mitsui Guarantee (credit guarantee business) Chuo Mitsui Card Co., Ltd. (credit card business) CMTB Equity Investments Co., Ltd. (securities operation management) business) Chuo Mitsui Finance Service Co., Ltd. (loan N.A. N.A. N.A. N.A. N.A. Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel to c. of Article 31, Paragraph 1, Item 2 of the Capital Adequacy Ratio Notification, the names of companies that have less capital than the regulatory required capital, and the total amount less than the required capital: tal inside the CMTB Group: Item 11 of the Banking Act and that only operate subordinate Item 11 of the Banking Act and that only operate 12 of the relevant businesses, or companies indicated in Item CMTB Group and Paragraph, and that do not belong to the and descrip- the names of the primary companies exclusively, tions of the primary businesses: cated in a. to c. of Article 31, Paragraph 1, Item 2 of the cated in a. to c. of Article 31, Paragraph 1, of primary com- Capital Adequacy Ratio Notification, names panies, and descriptions of their primary businesses: ble to Article 32 of the Capital Adequacy Ratio Notification, ble to Article 32 of the Capital Adequacy businesses, names of primary affiliates engaging in financial and descriptions of their primary businesses: sidiaries, names of principal consolidated subsidiaries, and sidiaries, names of principal businesses: descriptions of their primary companies subject to calculation of the consolidated capital companies subject to Group”) and companies included adequacy ratio (the “CMTB scope in accordance with the within the consolidation Statements Rules: Consolidated Financial • Of companies subject to items for deduction indicated in a. • • Overview of restrictions relating to transfer of funds and capi- • • Number of companies indicated in Article 16-2, Paragraph 1, • • Number of companies subject to items for deduction as indi- • • Number of affiliates engaging in financial businesses applica- • • Of the CMTB Group, the number of consolidated sub- CMTB Group, the number of consolidated Of the • • Difference between companies that belong to the group of between companies that belong to the Difference • Scope of Consolidation 274 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group *1. Compositions ofcapitalandadequacyratio,etc.arecalculatedinaccordancewith FinancialServicesAgencyNotifi Composition ofCapital(ConsolidatedAdequacyRatio(DomesticStandard)) Capital AdequacyRatio Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited *2. Meaning thoseasprovidedinArticle28,Paragraph2oftheCapitalAdequacyRatioNotification,otherwords,stock,etc *9. Consolidated capitaladequacy ratio(InternationalUnifiedStandard)as ofMarch31,2011,whichconstitutesacondition fo *8. From theendof2002consolidatedfiscalterm(March31,2003),asto internalmanagementsystemrelatingtocalcul *7. Amount equivalenttointentionalholding offundraisingmeansotherfinancialinstitutionsasindicatedinArticle31,P *6. These arethoseindicatedinArticle29,Paragraph 1,Items4and5oftheCapitalAdequacyRatioNotification.However,fo *5. MeaningliabilitytypefundraisingmeansasindicatedinArticle29,Paragraph1,Item3of the CapitalAdequacyRatioNoti *4. Fortrustaccountwithanagreementoncompensationforprincipal,amountbywhichqualifying reserveexceedsexpectedloss *3. Theamountoftheportiononwhichastandardisedapproachhasbeenadoptedisstated. Item As ofMarch31 Consolidated CapitalAdequacyRatio(Domesticstandard)=(E)/(F)x100 Risk-Weighted Assets,etc. For Reference: Tier IIcapital Tier Icapital No. 79of2008. prescribed inArticle238 oftheCapitalAdequacyRatioNotification,is 14.91%(TierIratio:10.13%) Type, ReportNo.30) solidated capitaladequacyratio(theabovementioned examinationprocedureswereinaccordancewiththeJapaneseInstituteofC not anaccountingauditinaccordancewiththe GAAS,nordidwereceivetheiropinionontheconsolidatedcapitaladequacyrati examination servicesbyDeloitteToucheTohmatsu LLC.Therelevantexaminationserviceswereanimplementationofp equivalent toinvestmentinthosesetItem2 of therelevantparagraph,amountthatistobedeductedpursuantpr redemption periodsexceedingfiveyearsfrom theagreement. up interestrateandotherspecialprovisions(includingpreferredinvestmentsecuritiesissued byoverseasSPCs). (B)/(A) x100 (A)/(F) x100 Amount ArrivedatbyMultiplying25.0{(Amountarrivedmultiplyingtherateprescribed in Amount ArrivedatbyDividingOperationalRiskEquivalents8% Credit Risk-WeightedAssetAmount Capital Amount(E)=(A)+(C)-(D) Items forDeduction* Total TierIICapital(C) Amount NotCalculatedintoTierIICapital(-) Liability TypeFundraisingMeans,etc. Amount bywhichQualifyingReserveExceedsExpectedLossAmount* General ReserveforPossibleLoanLosses* Amount Equivalentto45%ofDifferenceBetweenLandRevaluationandBookValueJustbefore Total TierICapital(A) Amount ofDeferredTaxAssetsDeducted(-) Total TierICapitalBeforeDeductionofDeferredTaxAssets(Totalamountaboverespectiveitems) Amount Equivalentto50%oftheExceedingExpectedLossfromQualifyingReserve(-) Amount EquivalenttoCapitalIncreaseDueSecuritizationTransactions(-) Intangible FixedAssetEquivalentPostedbyCorporateConsolidation,etc.(-) Goodwill EquivalentAmount(-) Trade RightEquivalentAmount(-) Minority InterestsofConsolidatedSubsidiaries,etc. Stock AcquisitionRights Foreign CurrencyTranslationAdjustment Evaluation LossonOtherSecurities(-) Projected AmountofDistributedIncome(-) Treasury StockApplicationMargin Treasury Stock(-) Retained Earnings Capital Surplus New StockApplicationMargin Capital Stock (4) Thatforwhichinterestpaymentobligationpostponement isallowed. (3) Shouldsupplementlosswhilebusinessisongoing, (2) Nottoberedeemed,exceptforincertaincases, (1) Unsecured,subordinatedtootherliabilities,andalreadypaid, Total (F) the Notificationwithformerrequiredcapital)Minus(Amountofnewcapital)} by25.0 Off-balance SheetTransactionItems Asset (On-balancesheet)Items Fixed-term SubordinatedBondsandPreferredStock* Perpetual SubordinatedBondsofAbove* Non-dilutive PreferredSecuritieswithStep-upInterestRateProvisionsofAbove* Non-dilutive PreferredSecuritiesIssuedbyOverseasSPCsAmongAbove Non-cumulative PerpetualPreferredStockofAbove 7 (D) 3 5 6 4 2 (B) fication, andwhichhaveallthecharacteristicsasindicatedbelow: r adoptionandcontinuous useoftheinternalratings-basedapproach as aragraph 1,Item1oftheCapitalAdequacyRatio Notification,amount ., thathastheprobabilityofredemption,includingthoseaddingastep- cation No.19of2006(the“CapitalAdequacyRatioNotification”)and r fixed-termsubordinatedbonds,thereisalimitation tothosewith ovisions ofItems3to6thereofandthoseindicated inItem2above. ation oftheconsolidatedcapitaladequacyratio, wehavereceived amountisnotposted. o itself,orinternalcontrolsrelatingtothecalculation ofthecon- ertified PublicAccountants,CommitteeonAudit byBusiness rocedures agreeduponbetweenTohmatsuand us,andwere 6,622,553 ¥ 399,697 ¥ 2011 5,716,420 6,266,217 1,024,789 356,336 549,796 343,748 234,500 109,247 343,747 696,472 696,472 183,724 149,011 10.51% 15.47% 15,430 15,298 (2,129) 6,979 6,997 3,463 8,021 Millions ofYen — — — — — — — — — — — — — — — — 0 Consolidated 7,333,798 ¥ 399,697 ¥ 6,296,411 6,943,353 2010 390,445 646,941 923,687 319,251 202,500 116,750 319,250 627,422 641,598 142,307 149,011 12.59% 22,986 14,176 13,600 20,401 8.55% (1,738) 7,555 3,378 9,501 — — — — — — — — — — — — — — — 0 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 275 81 597 1,233 1,957 2,557 25,780 54,299 18,891 38,543 38,209 27,367 34,307 2010 2010 ion amount 525,462 384,755 ¥ 566,827 ¥ 81 ¥ 3,155 ¥ 61,756 Consolidated Millions of Yen Millions of Yen 648 the required capital amount). 1,209 1,845 2,666 2,481 21,917 53,004 14,537 34,041 30,852 24,528 32,508 2011 2011 451,972 325,415 8% + capital deduction amount ¥ 485,955 ¥ 2,666 ¥ 59,703 ¥ 3,130 sed approach is as follows (although the x 1.06) x 8% + expected loss amount + capital s, as we have adopted the foundation internal entary Rules of Capital Adequacy Ratio Notification. Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 1 1 Group uses domestic standards, as we have adopted the foundation internal ratings-based approach, we use 8% for calculation of Group uses domestic standards, as we have adopted the foundation internal ratings-based approach, we use Corporate Exposures Sovereign Exposures Bank Exposures Residential Mortgage Exposures Qualifying Revolving Retail Exposures Other Retail Exposures Other Exposures* Business Units under the Standardised Approach Business Units under Assets Under the Standardised Approach Simple Risk Weight Method ratings-based approach, we use 8% for calculation of the required capital amount). ratings-based approach, we use 8% for calculation of the of credit risk-weighted asset x 8% + capital deduction amount Portfolio applicable to the standardised approach: amount and securitization exposure: (amount of credit risk-weighted asset Portfolio applicable to the internal ratings-based approach deduction amount Amount of credit risk-weighted assets is calculated by placing risk weight as being 100%, pursuant to Article 13 of the Supplem Amount of credit risk-weighted assets is calculated by placing risk weight as being 100%, pursuant to Article 13 of the Calculation method of required capital amount to credit risk relating to equity exposures applicable to the internal ratings-ba Calculation method of required capital amount to credit risk relating to equity exposures applicable to the CMTB asset x 1.06) x Those applicable to the simple risk weight method of the market-based approach: (amount of credit risk-weighted expected loss amount + capital deduct Those applicable to PD/LGD approach: (amount of credit risk-weighted asset x 1.06) x 8% + amount Those applicable to the transitional measure: (amount of credit risk-weighted asset x 1.06) x 8% + capital deduction Total Securitization Exposure Portfolio Applicable to the Internal Ratings-based Approach Portfolio Applicable to the Internal Ratings-based Portfolio Applicable to the Standardised Approach Portfolio Applicable Those Applicable to the Transitional Measure* Total Market-based Approach PD/LGD Approach As of March 31 Classification As of March 31 Classification *1. Exposure regarding purchased receivables, unsettled transactions, lease transactions and other assets. *1. Exposure regarding purchased receivables, unsettled (although the CMTB Group uses domestic standard Calculation method of required capital amount for credit risk is as follows *2. (2) Required capital amount for credit risk relating to equity exposures applicable to the internal ratings-based approach (2) Required capital amount for credit risk (1) Required capital amount for credit risks (amount in (2) (3) shall be excluded) amount for credit risks (amount in (2) (1) Required capital *2. *1. Required Capital Amount Capital Adequacy Levels Capital Adequacy 276 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group 2 lhuhteCT Group uses domesticstandards,aswehaveadoptedthefoundationinternalratings-basedapproach,use8 *2. Although theCMTB *1. (Totalamountofcreditrisk-weightedasset+operationalriskequivalents/8%)x8% oe aclto ehdo eurdcptlaon o h rdtrs eaigt ud sa olw atog h MBGroup Note: Calculation methodofrequiredcapitalamountforthecreditriskrelatingtofundsisasfollows(althoughCMTB Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (5) Totalamountofconsolidatedrequiredcapital (4) Requiredcapitalamountforoperationalrisks (3) Requiredcapitalamountforthecreditriskrelatingtofunds Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Classification As ofMarch31 Classification As ofMarch31 Calculation Method As ofMarch31 Total AmountofConsolidatedRequiredCapital* Total Standardised Approach Total Simple RiskWeightMethod Operational StandardsMethod Modified SimpleMajorityMethod Look-through Formula consolidated requiredcapital. Those Applicableto1250%RiskWeight Those Applicableto400%RiskWeight Other thanlook-throughformula:(amountofcreditrisk-weightedassetx1.06)8%+capitaldeductionamount Look-through formula:(amountofcreditrisk-weightedassetx1.06)8%+expectedlossamountcapitaldeduction the foundationinternalratings-basedapproach,weuse8%forcalculationofrequiredcapitalamount). 1 usesdomesticstandards,aswehaveadopted % forcalculationofthetotalamount 68,024 ¥ 64,117 ¥ 529,804 ¥ 28,506 ¥ 28,506 ¥ 2011 2011 2011 3,081 825 Millions ofYen Millions ofYen Millions ofYen — — — ¥ 72,361 72,361 ¥ 67,580 ¥ 586,703 ¥ 31,235 ¥ 31,235 ¥ 2010 2010 2010 3,883 898 — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 277 — — — — — — 135 15,541 31,827 118,852 517,012 194,328 8,887,998 2,841,331 1,851,263 1,108,095 13,699,446 of Exposure ¥ 15,677 ¥ 13,715,123 during the Term Average Balance Consolidated — — — — — — 136 27,025 14,271 ount posted on the consolidat- 111,159 514,990 202,936 default; however, for exposures 2010 9,097,403 3,416,291 2,396,603 1,651,650 15,021,458 xposure at default less partial direct ¥ 14,407 ¥ 15,035,866 Millions of Yen on expenses, fixed assets, deferred tax risk mitigation, — — — — — — 135 14,166 32,438 506,370 184,602 128,120 2011 1,919,548 1,196,137 9,216,686 2,711,562 13,975,918 ¥ 14,302 ¥ 13,990,220 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel under the standardised approach (standardised approach), amount gained by deducting valuation gains on other securities from am under the standardised approach (standardised approach), ed balance sheets, write-off. (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default after credit (2) Off-balance sheet transactions: credit equivalents; however, (1) On-balance sheet transactions: amount gained by deducting partial direct write-off from amount of depreciation exposure at On-balance sheet transactions: amount gained by deducting partial direct write-off from (1) (3) Derivative transactions: credit equivalents, gained by deducting partial direct write-off from amount of e Trust with an agreement on compensation for principal: amount (4) assets, etc.) are not included in above. Commitment for Principal Trusts with an Agreement on Compensation Repo-style Transactions Other Trusts with an Agreement on Compensation for Principal Trusts with an Agreement on Compensation Repo-style Transactions Other Commitment 3. The internal ratings-based approach application exclusion portion is described in the standardised approach. 4. The average balance of exposure during the term is the average value for respective quarterly term-end balances. 2. Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio Notification (prepaid pensi Equity exposures and other assets, etc. as provided in Article 178 of the Capital 2. Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Securities Derivative Transactions Off-balance Sheet Transactions Total Internal Ratings-based Approach Standardised Approach Classification As of March 31 Notes: 1. The following values are used for above term-end balance: Term-end Balance of Exposure Relevant to Credit Risks and Breakdown by Primary Types of Exposure Relevant to Credit Risks Term-end Balance Credit Risks (except for exposure relating to funds and securitization exposure) to funds relating for exposure Risks (except Credit 278 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Thefollowingvaluesareusedforaboveterm-endbalance: Notes: Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited (1) Term-endbalanceofexposurebyregionandbreakdownprimarytypes Classification As ofMarch31 Total Overseas Domestic Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. 3. Theinternalratings-basedapproachapplicationexclusionportionisdescribedinthestandardisedapproach. 2. Equity exposuresandotherassets,etc.asprovidedinArticle178oftheCapitalAdequacyRatioNotification(prepaid pensi Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment assets, etc.)arenotincludedinabove. (4) (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents;however,forrepo-styletransactions,exposureatdefaultafter (1) On-balance sheettransactions:amountgainedbydeductingpartialdirectwrite-offfromofdepreciationexposureat Trust withanagreementoncompensationforprincipal:amountgainedbydeductingpartialdirectwrite-offfromofexpos ed balancesheets, under thestandardisedapproach(standardisedapproach),amountgainedbydeductingvaluationgainsonothersecuritiesfromam risk mitigation, on expenses,fixedassets,deferredtax ure atdefaultlesspartialdirectwrite-off. 12,456,839 ¥ 13,990,220 ¥ default; however,forexposures 1,887,569 1,539,701 9,001,928 1,171,996 1,533,380 1,195,807 2011 184,599 505,653 100,479 228,925 ount postedontheconsolidat- 27,641 30,928 31,979 1,509 Millions ofYen 330 717 3 13,469,665 ¥ 15,035,866 ¥ 2,368,455 2,209,470 8,873,690 1,206,957 1,566,201 1,650,297 2010 202,932 514,990 237,984 26,791 18,049 28,148 93,110 1,353 233 — 4 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 279 4 3 — — — — — — — — — — — — — — — — — — — — 640 216 4,293 1,233 44,197 11,861 31,695 27,402 12,009 11,793 75,275 52,604 24,341 27,025 35,884 22,798 73,939 49,182 13,588 26,858 26,858 188,379 374,087 166,734 195,343 740,527 332,761 279,886 466,432 538,204 441,466 225,584 162,813 2010 4,199,008 2,474,124 1,536,504 1,536,500 6,117,788 5,077,265 3,533,398 3,307,813 ¥ 4,617,294 ¥ 15,035,866 0 3 6 — — — — — — — — — — — — — — — — — — — 150 201 Millions of Yen 1,151 4,174 9,874 41,017 11,055 95,505 81,534 47,937 32,438 32,615 13,350 76,644 47,321 29,811 25,636 11,950 37,423 37,423 10,075 399,804 720,319 347,850 195,429 498,391 501,107 411,111 215,319 156,047 570,218 139,944 420,197 2011 3,079,033 1,597,528 1,081,700 1,081,697 6,042,999 5,010,885 3,499,208 3,283,889 consolidated balance sheets, ¥ 3,690,269 ¥ 13,990,220 ure at default less partial direct write-off. default; however, for application exclu- on expenses, fixed assets, deferred tax risk mitigation, Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Trust with an agreement on compensation for principal: amount gained by deducting partial direct write-off from amount of expos Trust with an agreement on compensation for principal: amount gained by deducting partial direct write-off from amount sion portion (standardised approach), amount gained by deducting valuation gains on other securities from amount posted on the sion portion (standardised approach), amount gained by deducting valuation gains on other securities from amount Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment on Compensation for Principal Trusts with an Agreement Repo-style Transactions Other (1) On-balance sheet transactions: amount gained by deducting partial direct write-off from amount of depreciation exposure at On-balance sheet transactions: amount gained by deducting partial direct write-off from (1) after credit (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default (3) Derivative transactions: credit equivalents, (4) assets, etc.) are not included in above. 2. Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio Notification (prepaid pensi Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio 2. Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Commitment Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Other Local Public Organizations Central Government and Central Bank Central Government and Total Special International Financial Transaction Account Portion Individual Business Corporations Financial Institutions Sovereign As of March 31 Business Type Notes: 1. The following values are used for above term-end balance: (2) Term-end balance of exposure by business type and breakdown by primary type of exposure by business type and breakdown (2) Term-end balance 280 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Reference: Term-endbalanceofexposurebybusinesstyperelevanttocorporationsandbreakdownprimary Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Business Type As ofMarch31 Information Communications Electricity, Gas,Heating,Water Construction Mining industry Fishery Forestry Agriculture Manufacturing Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,Callloans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits, etc. Other Repo-style Transactions Trusts withanAgreementonCompensation forPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment 1,186,308 ¥ 2011 940,682 178,027 199,075 114,751 276,501 280,985 44,264 20,814 85,107 28,305 29,239 28,959 38,374 2,286 4,482 4,482 4,221 4,266 5,120 Millions ofYen 233 746 761 315 315 923 400 15 15 12 33 28 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 2 2 1 9 4 1,210,726 ¥ 2010 193,150 219,819 934,881 175,912 180,404 129,120 35,605 41,762 31,518 32,526 19,687 53,413 96,082 2,026 4,060 4,119 6,982 2,611 4,407 4,483 767 782 346 346 983 494 17 42 11 76 24 17 15 15 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 0 0 3 3 8 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 281 — — — — — — — — 467 230 342 165 783 9,336 7,122 2,214 1,696 1,210 2,146 3,748 1,150 7,306 3,178 84,610 63,969 20,409 42,973 44,426 27,403 15,813 33,573 72,484 67,585 27,800 26,114 18,642 18,308 40,268 23,607 13,482 383,566 295,824 396,745 183,494 203,447 548,817 112,196 549,872 490,511 2010 1,321,634 1,123,130 1,245,801 1,191,887 ¥ 6,117,788 ¥ 657,020 — — — — — — — — 322 216 161 581 Millions of Yen 1,666 1,181 2,067 2,348 7,427 4,125 2,403 3,310 1,573 4,240 12,972 16,224 14,156 19,385 37,204 43,388 29,234 80,472 18,718 22,971 11,713 29,889 48,597 43,713 15,208 44,029 21,069 431,118 175,170 238,057 356,051 275,134 128,246 100,074 533,840 519,442 459,623 2011 1,273,994 1,043,324 1,226,160 1,191,475 consolidated balance sheets, ¥ 6,042,999 ¥ 614,731 ure at default less partial direct write-off. default; however, for application exclu- on expenses, fixed assets, deferred tax risk mitigation, Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Trust with an agreement on compensation for principal: amount gained by deducting partial direct write-off from amount of expos Trust with an agreement on compensation for principal: amount gained by deducting partial direct write-off from amount sion portion (standardised approach), amount gained by deducting valuation gains on other securities from amount posted on the sion portion (standardised approach), amount gained by deducting valuation gains on other securities from amount (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default after credit (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default (3) Derivative transactions: credit equivalents, (4) (1) On-balance sheet transactions: amount gained by deducting partial direct write-off from amount of depreciation exposure at On-balance sheet transactions: amount gained by deducting partial direct write-off from (1) assets, etc.) are not included in above. 2. Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio Notification (prepaid pensi Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio 2. Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Trusts with an Agreement on Compensation for Principal Trusts with an Agreement Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Commitment Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Derivative Transactions Off-balance Sheet Transactions Total Other Various Services Real Estate Finance and Insurance Wholesale and Retail Transportation As of March 31 Business Type Notes: 1. The following values are used for above term-end balance: 282 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited oe:1.Thefollowing valuesareusedforaboveterm-endbalance: Notes: (3) Term-endbalanceofexposurebyremainingperiodandbreakdownprimarytype Remaining Period As ofMarch31 Total With noProvisionforPeriod Over 7Years Over 5Yearsto7orShorter Over 3Yearsto5orShorter Over 1Yearto3YearsorShorter 1 YearorShorter Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment 3. Thoseofwhichremainingperiodisbeyond recognitionareincludedin“WithnoProvisionforPeriod.” 2. Equity exposuresandotherassets, etc.asprovidedinArticle178oftheCapitalAdequacyRatioNotification(prepaidpensi assets, etc.)arenotincludedinabove. (1) On-balance sheettransactions:exposureatdefaultlesspartialdirectwrite-off;however,forapplicationexclusionportio (4) Trustwithanagreementoncompensationforprincipal:exposureatdefaultless partialdirectwrite-off. (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents;however,forrepo-styletransactions, exposureatdefaultafterdeducti on theconsolidatedbalancesheetslessvaluationgainsotheravailable-for-sale securities, n (standardisedapproach),amountposted on expenses,fixedassets,deferredtax on ofcreditrisk, 4,660,264 ¥ 13,990,220 ¥ 1,361,718 3,212,828 1,015,576 1,561,911 1,230,008 2,388,304 1,115,307 3,388,878 4,362,163 2011 193,862 424,364 294,641 773,173 479,953 207,146 213,150 933,997 244,403 795,967 125,523 138,405 25,378 60,338 32,438 20,110 15,815 27,652 46,804 47,537 59,824 11,147 17,076 88,920 50,929 29,094 19,621 99,645 77,673 10,550 5,083 3,335 7,362 6,669 5,617 6,557 2,331 Millions ofYen 919 — — — — — — 15,035,866 ¥ 5,400,352 ¥ 3,387,899 4,372,891 1,949,852 1,505,682 2,512,601 1,564,320 1,820,772 2,872,810 2010 127,248 145,297 240,975 151,635 766,264 218,317 313,971 559,192 968,606 935,631 212,821 216,011 787,425 198,588 675,813 15,443 95,678 73,630 33,982 44,023 67,091 23,047 34,741 39,838 27,025 30,838 30,955 2,605 7,119 6,555 9,372 3,854 1,877 3,219 5,777 2,097 1,092 3,481 — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 283 3 1 0 0 0 0 — — — — — — — — — — — — — — — 134,043 2010 ¥— ¥3 ¥3 ¥3 ¥ 134,046 5,306 2010 Millions of Yen 0 0 1 — — — — — — — — — — — — — — — — 11 12 ¥— ¥ 5,306 Overseas Total 2011 ¥ 12 ¥— 128,737 ¥3 ¥3 ¥ 128,740 Millions of Yen Total Domestic 106,269 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report ¥ 106,281 ¥ 12 5,227 2011 ¥ 5,227 ¥— Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 101,041 Domestic Overseas ¥ 101,054 ¥ 12 2. Internal ratings-based approach application exclusion portion is described in the standardised approach. 2. Internal ratings-based approach application exclusion Real Estate Various Services Other Construction Electricity, Gas, Heating, Water Information Communications Transportation Wholesale and Retail Finance and Insurance Manufacturing Agriculture Forestry Fishery Mining Industry Central Government and Central Bank Local Public Organizations Other (Those applicable to the internal ratings-based approach) (Those applicable to the internal ratings-based Total Exposures Three Months or Longer Overdue Exposures Three Months the standardised approach) (Those applicable to Exposures in Default Total Individual Special International Financial Transaction Account Portion Financial Institutions Business Corporations Sovereign Classification As of March 31 As of March 31 Business Type (2) Term-end balance of exposure by business type (2) Term-end balance of exposure by (those applicable to the standardised approach) (i) Exposures three months or longer overdue Notes: 1. Equity exposures is not included in the above. (1) Term-end balance of exposure by region (1) Term-end balance Term-end Balance of Exposures Three Months or Longer Overdue and Exposures in Default and Breakdown by Overdue and Exposures in Default and of Exposures Three Months or Longer Term-end Balance Primary Type Note: Equity exposure is not included in the above. 284 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Aboveisadescriptionofthevalueinbankaccount. Notes: (1) Balanceofreservebyregion Reserve forPossibleLoanLosses,andSpecifiedOverseasReceivablesAccount Term-end BalanceandAmountofVarianceduringtheTermGeneralReserveforPossibleLoanLosses,Respective Note: Equityexposuresisnotincludedintheabove. Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited (ii) Exposuresindefault(thoseapplicabletotheinternalratings-basedapproach) Business Type Years EndedMarch31 Total Specified OverseasReceivablesReserveAccount Respective ReserveforPossibleLoanLosses(-) General ReserveforPossibleLoanLosses Business Type As ofMarch31 Total Special InternationalFinancialTransactionAccountPortion Individual Business Corporations Financial Institutions Sovereign Overseas Domestic Other Various Services Real Estate Finance andInsurance Wholesale andRetail Transportation Information Communications Electricity, Gas,Heating,Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing Other Local PublicOrganizations Central GovernmentandBank 2. Generalreserveforpossibleloanlosses isnotmanagedbyregion. 47,652 ¥ 32,001 ¥ Term-end Balance 11,450 15,650 4,200 — 2011 during Term (5,717) ¥ 2,804 ¥ Variance (8,415) (8,465) (56) (50) Millions ofYen ¥— 106,269 ¥ Term-end 53,370 ¥ 29,197 ¥ Balance 19,866 24,116 2011 39,553 36,419 61,487 4,250 6,520 5,903 5,457 1,041 1,196 3,861 5,000 227 491 402 192 Millions ofYen 56 — — — — — — — 2010 during Term 134,043 ¥ ¥— (2,547) ¥ (8,108) ¥ Variance (5,297) (5,591) 2010 34,371 58,920 94,365 6,215 6,208 7,595 1,599 3,298 6,916 3,380 5,000 (294) 306 231 30 — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 285 0 — — — — — — — — — 14 (294) (291) (849) 1,377 3,224 (2,990) (1,194) (6,675) (2,838) (1,750) Variance ¥ (5,591) ¥— during Term 2010 0 — — — — — — — — — 48 45 354 872 747 4,250 3,282 7,811 2,594 4,109 15,757 Balance ¥— ¥ 24,116 Term-end 0 ype. — — — — — — — — — 46 31 Millions of Yen (50) (43) 148 (246) (490) (8,563) (3,278) (3,476) (1,104) Variance ¥— ¥ (8,465) during Term 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 1 0 3 — — — — — — — — — 94 779 107 381 4,334 1,489 4,257 4,200 7,193 Balance Term-end ¥ 15,650 ¥— Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Transportation Wholesale and Retail Finance and Insurance Real Estate Various Services Other Forestry Fishery Mining Industry Construction Electricity, Gas, Heating, Water Information Communications Central Government and Central Bank Central Government Local Public Organizations Other Manufacturing Agriculture Total Individual Account Portion Special International Financial Transaction Financial Institutions Business Corporations Sovereign Business Type Years Ended March 31 Note: General reserve for possible loan losses and specified overseas receivables reserve account are not managed by business t Note: General reserve for possible loan losses and specified (2) Balance of respective reserve for possible loan losses by business type reserve for possible loan losses (2) Balance of respective 286 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Note: Amountofloanamortizedfortrustaccountwithanagreementoncompensationprincipalisincludedintheabove. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Amount ofLoanAmortizedbyBusinessType Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Business Type Years EndedMarch31 Total Special InternationalFinancialTransactionAccountPortion Individual Business Corporations Financial Institutions Sovereign Other Various Services Real Estate Finance andInsurance Wholesale andRetail Transportation Information Communications Electricity, Gas,Heating,Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing Other Local PublicOrganizations Central GovernmentandBank Amount ofLoan Amortized ¥— 8,071 ¥ 2011 2,069 5,978 2,093 3,023 100 296 291 109 83 — — — — — — — — — — Millions ofYen 1 2 Amount ofLoan Amortized 12,412 ¥ ¥— 2010 6,187 2,783 9,629 1,222 885 953 287 39 28 26 — — — — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 287 3 — 23 928 273 217 9,877 28,303 11,283 30,767 2010 2010 176,472 280,057 ¥ 316 ¥ 11,423 ¥ 19,739 ¥ 546,623 ¥ 29 ¥ 247 Rating Not Applicable* — — — — — Millions of Yen Millions of Yen 2,980 2,897 7,860 13,994 13,368 2010 2011 2011 Rating 189,055 263,698 ¥3 ¥3 ¥ 2,983 Applicable ¥ 491,222 ¥ 8,206 ¥— ¥ 7,860 ets is used. licable” column. 3 — 23 as to exposure oriented to corporations, etc., so 273 onsolidated balance sheets or acquisition cost. 3,909 9,877 ¥ 14,407 ¥ 320 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — 35 12 Millions of Yen 780 258 10,358 ¥ 527 ¥ 11,972 Rating Not Applicable* — — — — — Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 2,328 2011 Rating ¥1 ¥1 ¥ 2,330 Applicable — 12 35 258 3,108 10,358 ¥ 14,302 ¥ 529 For balance of equity exposures that is not classified into other securities, the amount posted on the consolidated balance she For balance of equity exposures that is not classified into other securities, the amount posted on the consolidated risk weight is uniformly 100%. The exposures applicable to the relevant special exceptions are described in the “Rating Not App risk weight is uniformly 100%. The exposures applicable Total 300% 400% 250% Total 70% 90% 115% 0% 50% Capital Deduction Total Over 35% to 75% Over 75% to 100% Over 100% to 150% 0% Over 0% to 10% Over 10% to 35% As of March 31 Risk Weight As of March 31 Risk Weight Risk Weight As of March 31 (2) Balance of equity exposures using simple risk weight method of the market-based approach (2) Balance of equity exposures using simple risk weight method of the market-based (1) Balance of specialized lending using slotting criteria (1) Balance of specialized lending using Exposures Applicable to the Internal Ratings-based Approach Exposures Applicable to the Internal * The CMTB Group has registered for application of special exceptions in Article 67 of the Capital Adequacy Ratio Notification The CMTB Group has registered for application of special exceptions in Article 67 of the Capital Adequacy Ratio * Balance by Risk Weight Classification for Exposure Applicable to the Standardised Approach Classification for Exposure Applicable Balance by Risk Weight Note: As for balance of equity exposures classified into other securities, smaller amount of either, the amount posted on the c As for balance of equity exposures classified into other securities, smaller amount Note: Note: The CMTB Group does not hold loans for commercial real estate (with high volatility). Note: The CMTB Group does not hold loans for commercial 288 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (2) Sovereignexposures (1) Corporateexposures Portfolio ApplicabletotheInternalRatings-basedApproach Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited *3. PD estimated valueweightedaverage,LGDestimatedandriskweightaverageareeitherthe *2. Eleveninternalratingsstagesareintegratedintothreedebtorclassificationsandindicated. *1. EADestimatedvalueisanamountthattookintoconsiderationtheeffectofcreditriskreductionmethod. Requiring CarefulMonitoring( Requiring CarefulMonitoring( Requiring CarefulMonitoring( Credit Rating As ofMarch31 Credit Rating As ofMarch31 Credit Rating As ofMarch31 Total Substandard Debtors( Normal ( Total Substandard Debtors( Normal ( Total Substandard Debtors( Normal ( ratings weightedwithEADestimatedvalue,ortheriskweightofrespectiveinternalva (Not includingsubstandarddebtors) (Not includingsubstandarddebtors) (Not includingsubstandarddebtors) Seijou-saki Seijou-saki Seijou-saki ) ) ) Youkanri-saki Youkanri-saki Youkanri-saki Youchui-saki Youchui-saki Youchui-saki ) orWorse ) orWorse ) orWorse ) ) ) Value Weighted Value Weighted Value Weighted PD Estimated PD Estimated PD Estimated 100.00% 100.00% Average Average Average 100.00% 2.23% 8.06% 0.43% 0.00% 0.00% 2.89% 8.31% 0.52% — Value Weighted Value Weighted Value Weighted LGD Estimated LGD Estimated LGD Estimated Average Average Average 43.94% 41.42% 41.04% 44.13% 44.96% 45.00% 44.96% 43.89% 41.25% 41.39% 44.11% — Millions ofYen Millions ofYen Millions ofYen Risk Weight Risk Weight Risk Weight Weighted Weighted Weighted 160.08% Average Average Average 161.66% 53.45% 48.61% 60.39% 55.10% 2011 2011 2010 0.39% 0.39% — lue. estimated valueoftherespectiveinternal On-balance Sheet On-balance Sheet On-balance Sheet Asset Items Asset Items Asset Items 5,082,386 ¥ 4,765,490 ¥ 2,569,833 ¥ 2,569,833 ¥ 4,638,425 ¥ 5,023,059 ¥ EAD EstimatedValue* EAD EstimatedValue* EAD EstimatedValue* 257,830 300,176 59,066 84,457 — — Off-balance Sheet Off-balance Sheet Off-balance Sheet 499,620 ¥ 459,044 ¥ 1,121,587 ¥ 1,121,594 ¥ 506,684 ¥ 561,340 ¥ Asset Items Asset Items Asset Items 20,827 19,747 22,455 32,200 1 1 1 — 6 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 289 6 — — — — — 1 1 1 Asset Items Asset Items Asset Items ¥ 1,580,209 ¥ 1,580,216 ¥ 127,879 ¥ 127,879 ¥ 177,039 ¥ 177,039 Off-balance Sheet Off-balance Sheet Off-balance Sheet — — — 806 5,000 5,000 EAD Estimated Value* EAD Estimated Value* EAD Estimated Value* ¥ 592,834 ¥ 3,038,646 ¥ 3,038,646 ¥ 598,640 ¥ 567,483 ¥ 562,483 Asset Items Asset Items Asset Items ated by the respective internal ratings On-balance Sheet On-balance Sheet On-balance Sheet estimated value of the respective internal lue. — — 0.31% 0.31% 2010 2010 2011 38.85% 38.78% 32.31% 32.09% 217.13% Average Average Average Weighted Weighted Weighted Risk Weight Risk Weight Risk Weight Millions of Yen Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — 44.96% 45.00% 44.96% 44.40% 45.00% 45.00% 44.41% 45.00% 44.68% 44.68% Average Average Average LGD Estimated LGD Estimated LGD Estimated Value Weighted Value Weighted Value Weighted — — Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 0.00% 0.00% 0.22% 0.92% 0.16% 0.83% 12.33% 100.00% 100.00% Average Average Average 100.00% PD Estimated PD Estimated PD Estimated Value Weighted Value Weighted Value Weighted ) ) ) ) or Worse ) or Worse ) or Worse Youchui-saki Youchui-saki Youchui-saki Youkanri-saki Youkanri-saki Youkanri-saki ) ) ) Seijou-saki Seijou-saki Seijou-saki (Not including substandard debtors) (Not including substandard debtors) (Not including substandard debtors) (Not including substandard or risk weight weighted with EAD estimated value. ratings weighted with EAD estimated value, or the risk weight of the respective internal ratings weighted with EAD estimated va ratings weighted with EAD estimated value, or the risk weight Substandard Debtors ( Total Normal ( Substandard Debtors ( Total Normal ( Substandard Debtors ( Substandard Debtors Total Normal ( Credit Rating As of March 31 Credit Rating As of March 31 Credit Rating As of March 31 Requiring Careful Monitoring ( Requiring Careful Monitoring ( Requiring Careful Monitoring ( Requiring Careful Monitoring *1. EAD estimated value is an amount that took into consideration the effect of the credit risk reduction method. *2. Eleven internal ratings stages are integrated into three debtor classifications and indicated. PD estimated value weighted average, LGD estimated value weighted average, and risk weight weighted average is values estim *3. *1. EAD estimated value is an amount that took into consideration the effect of the credit risk reduction method. *1. EAD estimated value is an amount that took into consideration debtor classifications and indicated. *2. Eleven internal ratings stages are integrated into three are either the PD estimated value weighted average, LGD estimated value weighted average, and risk weight weighted average *3. (3) Bank exposures 290 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group (4) EquityexposuresusingthePD/LGDapproach (5) Exposurerelatingtopurchasedreceivables *3. RiskweightweightedaverageisavalueofriskwithEADdilution. *2. ThisdescriptionisaboutExposureorientedtopurchasebusinesscorporations that donotusetop-downapproach. *1. EADestimatedvalueisamountthattakesintoconsiderationtheeffectofcredit riskreductionmethod. *3. PD *2. Eleveninternalratingsstagesareintegratedintothreedebtorclassificationsandindicated. *1. EADestimatedvalueisanamountthattookintoconsiderationtheeffectofcreditriskreductionmethod. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Requiring CarefulMonitoring( Requiring CarefulMonitoring( As ofMarch31 Credit Rating As ofMarch31 Credit Rating As ofMarch31 Total Substandard Debtors( Normal ( Total Substandard Debtors( Normal ( ratings orriskweightweightedwithEADestimatedvalue. (Not includingsubstandarddebtors) (Not includingsubstandarddebtors) estimated valueweightedaverage,LGDandriskweightaveragearevaluesb Seijou-saki Seijou-saki ) ) Youkanri-saki Youkanri-saki Youchui-saki Youchui-saki ) orWorse ) orWorse Risk Weight ) ) Weighted 54.43% Average On-balance Sheet Value Weighted Value Weighted Asset Items PD Estimated PD Estimated ¥ 87,522 100.00% Average Average 100.00% 2011 EAD EstimatedValue* 0.63% 7.95% 0.63% 1.11% 7.38% 0.54% Off-balance Sheet Value Weighted Value Weighted LGD Estimated LGD Estimated Asset Items Average Average 90.00% 90.00% 90.00% 90.00% ¥ 213 90.00% 90.00% 90.00% 90.00% Millions ofYen 1 Millions ofYen Millions ofYen Risk Weight Risk Weight Risk Weight Weighted Weighted Weighted 171.81% 565.08% 171.75% Average Average Average 171.45% 433.48% 172.21% 53.12% 2011 2010 On-balance Sheet On-balance Sheet On-balance Sheet Asset Items Asset Items Asset Items 165,207 ¥ 165,183 ¥ 180,123 ¥ 178,979 ¥ 5,1 ¥490 ¥ 159,010 EAD EstimatedValue* EAD EstimatedValue* EAD EstimatedValue* 2010 1,006 136 23 y therespectiveinternal 0 Off-balance Sheet Off-balance Sheet Off-balance Sheet Asset Items Asset Items Asset Items ¥— ¥— ¥— ¥— — — — — 1 1 1 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 291 — — — — — 30.32% 30.99% 28.47% 31.90% 28.18% 30.44% 29.43% 30.75% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Estimated Value of Estimated Value of Amount to the Left Amount to the Left the Non-withdrawal the Non-withdrawal is to be Multiplied by is to be Multiplied by Weighted Average of Weighted Average of Assessment Rate which Assessment Rate which 1 3 1 5 — — — 23 — — 94 23 22 503 188 138 115 141 550 205 150,446 148,131 Amount Amount ¥ 3,210 ¥ 154,700 ¥ 154,332 ¥ 5,226 Commitment Commitment Pre-withdrawal Pre-withdrawal ge of estimated value of assessment rate by 1 3 1 5 — 61 55 23 — 58 83 22 1 1 110 153 578 170 945 141 weighted with EAD estimated value. 2,580 2,490 45,705 41,816 Asset Items Asset Items ¥ 167,384 ¥ 217,098 ¥ 162,766 ¥ 208,060 Off-balance Sheet Off-balance Sheet Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — 903 105 827 102 1,516 4,036 2,160 9,659 1,586 4,186 2,788 31,655 17,662 49,291 10,641 31,506 24,067 45,761 136,497 120,097 EAD Estimated Value* EAD Estimated Value* ¥ 3,190,460 ¥ 2,935,219 ¥ 3,182,305 ¥ 2,942,491 Asset Items Asset Items On-balance Sheet On-balance Sheet 2010 2011 — — — — — — Millions of Yen Millions of Yen Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 4.02% 14.98% 43.05% 45.93% 12.38% 36.70% 79.79% 27.71% 18.79% 27.80% 77.08% 31.08% 17.28% 13.68% 57.53% 46.49% 208.93% 195.41% Average Average 211.46% 187.49% Weighted Weighted Risk Weight Risk Weight — — 34.14% 34.11% 31.86% 72.09% 69.69% 57.59% 36.84% 42.09% 66.13% 21.40% 91.74% 35.44% 34.48% 34.44% 31.11% 70.93% 68.34% 59.86% 32.91% 36.72% 57.28% 24.64% 88.81% 35.45% Average Average LGD Estimated LGD Estimated Value Weighted Value Weighted — — 0.96% 1.48% 1.04% 1.56% 0.22% 1.64% 1.01% 0.91% 0.92% 0.19% 27.78% 38.75% 28.76% 36.74% 26.39% 26.95% 100.00% 100.00% 100.00% 100.00% Average Average 100.00% 100.00% 100.00% 100.00% PD Estimated PD Estimated Value Weighted Value Weighted Not Delinquent Delinquent Default Not Delinquent Delinquent Default Default Not Delinquent Delinquent Default Not Delinquent Delinquent Not Delinquent Delinquent Default Delinquent Default Not Delinquent Delinquent Default Not Delinquent Delinquent Default Not Delinquent which to multiply the pre-withdrawal amount to the left are estimated values or risk weight by respective pool classifications which to multiply the pre-withdrawal amount to the left are estimated values or risk weight by respective pool classifications Total Other Business Type Loan Consumer Loan Residential Mortgage Total Other Business Type Loan Consumer Loan Residential Mortgage Types of Exposure As of March 31 Types of Exposure As of March 31 *1. EAD estimated value is an amount that takes into consideration the effect of credit risk reduction method. *2. Segmented pool classification is integrated into above classifications and shown. PD estimated value weighted average, LGD estimated value weighted average, risk weight weighted average, and weighted avera *3. (6) Residential mortgage exposures, qualifying revolving retail exposures, and other retail exposures exposures, qualifying revolving (6) Residential mortgage 292 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Estimated valueoflossamount (=EADestimatedvaluexPDLGDvalue)isthe Estimated ValueofLossAmountPortfolioApplicabletotheInternalRatings-basedApproach nonperforming loans. ended March31,2010. Analysis ofFactors Note: Actual lossamountisatotalofthefollowingamountsrelatingtoexposuresindefault,not including reversalofreserv Actual AmountsoftheRelevantTerm,andComparisonwithPast Actual LossAmountsofPortfolioApplicabletotheInternalRatings-basedApproachinMostRecentTerm/ Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Classification Years EndedMarch31 Classification Years EndedMarch31 Total Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Equity ExposuresApplicabletothePD/LGDApproach Bank Exposures Sovereign Exposures Corporate Exposures Total Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Equity ExposuresApplicabletothePD/LGDApproach Bank Exposures Sovereign Exposures Corporate Exposures This wasprimarilyattributabletoareductioninlossesassociatedwithcorporateexposures,duethelowlevelof new Actual lossamountforthefiscalyearendedMarch31,2011decreasedby¥17.3billioncomparedwithfiacal year 31, 2010and2011asthereferencedate,respectively. relating toequityexposuresapplicablethePD/LGDapproach,lossonsale. ble loanlossesprovisionamount,reserveforcontingentlossdebtwrite-off,onsaleofreceivables,lo reserve accountprovisionamount,creditriskadjustedamountrelatingtoderivatives(uphere,portionforpartyrequiring General reserveforpossibleloanlossesprovisionamount,specialamountdebt,rewrite-off Actual Loss 22,117 ¥ 10,849 ¥ Amount 2011 e: 2,097 4,970 4,200 — — 0 ss onwaiverofreceivables,depreciation to haveaccruedineachfiscalyearwithMarch management), respectivereserveforpossi- amount,specialforeignreceivables Estimated Value of LossAmount Millions ofYen Actual Loss 78,240 ¥ 51,958 ¥ 39,469 ¥ 25,741 ¥ Amount 12,554 2011 2010 8,739 1,225 2,800 5,574 3,623 4,250 191 920 Millions ofYen 88 — 41 for PreviousTerm Estimated Value of LossAmount Loss Amount Comparison with Actual (17,352) ¥ (14,892) ¥ 95,816 ¥ 67,055 ¥ 2010 11,534 11,167 (3,477) 1,206 1,760 3,035 1,347 (191) (88) (50) 56 — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 293 — — — — — — — — 37,674 37,674 47,200 47,200 ¥— ¥— ¥— ¥ 37,674 ¥— ¥ 47,200 Consolidated Other Collateral Other Collateral has been Applied has been Applied to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Amount of Exposure to which Credit Derivatives 2010 — — 3,527 16,766 55,596 42,392 11,964 587,113 570,346 101,516 562,188 550,224 ¥ 101,516 ¥— ¥ 587,113 ¥— ¥— ¥ 562,188 has been Applied has been Applied which Guarantees to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Real Estate Collateral Real Estate Collateral Amount of Exposure to 2010 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Millions of Yen Millions of Yen Millions of Yen — — — — — — — — 6,131 6,131 3,062 3,062 ¥— ¥ 6,131 ¥— ¥— ¥— ¥ 3,062 has been Applied has been Applied to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Receivables Collateral Receivables Collateral Amount of Exposure to which Credit Derivatives Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 2011 — — 3,316 12,252 85,115 41,088 10,714 129,519 1,717,107 1,704,855 1,181,427 1,170,713 ¥— ¥ 1,717,107 ¥— ¥ 129,519 ¥— ¥ 1,181,427 has been Applied has been Applied which Guarantees to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Amount of Exposure to Financial Asset Collateral Financial Asset Collateral Bank Exposures Corporate Exposures Sovereign Exposures Bank Exposures Corporate Exposures Sovereign Exposures Corporate Exposures Sovereign Exposures Bank Exposures Total Standardised Approach Internal Ratings-based Approach Total Standardised Approach Internal Ratings-based Approach Classification As of March 31 Total Standardised Approach Internal Ratings-based Approach Classification As of March 31 Classification As of March 31 Amount of Exposure to which Guarantees and Credit Derivatives Have Been Applied Amount of Exposure to which Guarantees Amount of Exposure to which Credit Risk Reduction Method has been Applied to which Credit Risk Reduction Method Amount of Exposure Credit Risk Mitigation Measures Credit 294 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited (4) Totalamountasindicatedin(2)plustotalofgrossadd-onminusthe(3) SettlementPeriodTransactionsLong-term Risks ofTransaction PartnersinDerivativeProducts Transactions and (3) Credit equivalentsbeforetakingintoconsiderationeffectofcreditriskreductionmethodbycollateral (2) Totalamountofgrossreconstructioncost(notlessthanzero) (1) Methodusedforcalculationofcreditequivalents As ofMarch31 Total AmountasIndicatedin(2)andGrossAdd-onMinusthe(3) As ofMarch31 As ofMarch31 Credit EquivalentsbeforeTakingintoConsiderationtheEffectofRiskReductionMethod Total GrossReconstructionCostAmount Method UsedforCalculationofCreditEquivalents Of which,thosecorrespondingtotheEffectofCreditRiskReductionViaCollectiveLiquidation Of which,thosecorrespondingtoOtherTransactions Of which,thosecorrespondingtoLong-termSettlementPeriodTransactions Of which,thosecorrespondingtoInterestRateRelatedTransactions Of which,thosecorrespondingtoForeignExchangeRelatedTransactions by Collateral (for derivativeproducttransactions,creditequivalentsforeachtransactionclassificationareincluded) Netting Contracts(Loss) Currrent exposuremethod 185,937 ¥ 196,203 ¥ 115,342 ¥ 196,203 260,825 2011 2011 2011 50,640 Millions ofYen Millions ofYen Millions ofYen 78 — Name Consolidated 195,379 ¥ 185,830 ¥ 93,163 ¥ 229,678 185,830 2010 2010 2010 48,591 724 — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 295 hod — — — — — — — 313 3,605 1,098 2010 2010 2010 2010 63,000 17,343 Principal ¥— ¥ 15,000 ¥ 78,000 ¥— ¥ 89,560 ¥— ¥ 3,205 ¥ 6,810 ¥ 24,293 ¥ 43,049 Predicted — — — — — — — Millions of Yen Millions of Yen Millions of Yen Millions of Yen 245 4,326 1,640 63,000 15,494 2011 2011 2011 2011 Principal Predicted ¥ 36,269 ¥ 68,000 ¥— ¥ 110,788 ¥— ¥— ¥ 5,000 ¥ 5,919 ¥ 10,246 ¥ 18,889 h liquidation institutions, etc. Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Government Bonds Domestic Stocks US Bonds Cash Other Government Bonds Domestic Stocks US Bonds Cash Other Credit Default Swap Credit Linked Notes Other Credit Default Swap Credit Linked Notes Other 2. Of deposited collateral, ¥25,072 million (as of March 31, 2010) and ¥23,495 million (as of March 31, 2011) are deposited wit 2. Of deposited collateral, ¥25,072 million (as of March Credit Risk Reduction Method by Collateral Estimated Amount of Principal of Credit Derivatives Used to Take into Consideration the Effect of Estimated Amount of Principal of Credit Derivatives Used to Take into Consideration Credit Equivalents after Taking into Consideration the Effect of Credit Risk Reduction Method Credit Equivalents after Taking into Consideration Total Total Deposited Collateral Accepted Collateral Classification of Acceptance or ProvisionClassification of Acceptance of Collateral Type As of March 31 Total Total Protection Provision Protection Purchase As of March 31 As of March 31 As of March 31 Classification of Purchase or Provision of Credit Derivative Type (8) Estimated amount of principal of credit derivatives used to take into consideration the effect of credit risk reduction met (8) Estimated amount of principal of credit derivatives used to take into consideration (6) Credit equivalents after taking into consideration the effect of credit risk reduction method by collateral (6) Credit equivalents after taking into (5) Amount by type of collateral (5) Amount by type (7) Credit derivative predicted principal amount that will be subject to calculation of credit equivalents (7) Credit derivative predicted principal Notes: 1. Amount of collateral is indicated at market value. 296 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (2) Of exposurecomposingoriginalassets,amountofexposuresthreemonthsorlongeroverduein Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited (3) Amountofsecuritizationexposureheldandbreakdownbytypetheseprimaryoriginalassets Securitization Exposure (1) Totalamountoforiginalassetsandbreakdownbytypetheseprimary Securitization ExposureofwhichtheCMTBGroupisOriginator Classification As ofMarch31 Type ofOriginalAssets As ofMarch31 Total Exposures inDefault Exposures ThreeMonthsorLongerOverdue Form ofSecuritization As ofMarch31 Total Other Residential Mortgage Total AmountofOriginalAssets Amount ofOriginalAssetsSynthetic-typeSecuritizationTransactions Amount ofOriginalAssetsAssetTransfer-typeSecuritizationTransactions Other Residential Mortgage Other Residential Mortgage Other Residential Mortgage Other Residential Mortgage default amount,lossamountincurrentterm,andbreakdownbytypeoftheseprimaryoriginalassets Amount of Exposure ¥— 2,629 ¥ 2,629 2,629 — — — 2011 Loss Amountin Current Term 362 ¥ ¥— 362 362 — — — Millions ofYen 186,299 ¥ 186,299 ¥ 438,775 ¥ 438,775 ¥ Amount of Amount of 1,800 ¥ ¥— Exposure Exposure 438,775 2011 2011 1,800 1,800 Millions ofYen Millions ofYen — — — — — — — — 2010 Consolidated Loss Amountin Current Term Amount of 506,175 ¥ 506,175 ¥ 190,459 ¥ 190,459 ¥ 202 ¥ ¥— Exposure 506,175 2010 2010 202 202 — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 297 — — — 2,682 2,745 2010 2010 11,468 Amount ¥ 14,151 ¥ 2,745 ¥ 20,401 ¥ 20,401 ¥— ¥— Required Capital 2010 — — — Millions of Yen Millions of Yen 2,682 2,682 2011 2011 190,459 Balance ¥— ¥ 193,142 ¥— ¥ 2,682 ¥ 15,298 ¥ 15,298 — — Millions of Yen 9,913 2,682 Amount ¥— ¥ 12,596 Required Capital 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — 2,682 186,299 Balance ¥ 188,982 ¥— Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Capital Adequacy Ratio Notification by primary original asset type Adequacy Ratio Notification and breakdown by original asset type Adequacy Ratio Notification and breakdown N.A. N.A. N.A. N.A. Other Total Residential Mortgage Residential Mortgage Other Total 100% to Less than 350% Capital Deduction Total Less than 20% 20% to Less than 50% 50% to Less than 100% As of March 31 Type of Original Assets As of March 31 Type of Original Assets Risk Weight As of March 31 Note: Required capital amount = (credit risk-weighted asset amount x 1.06) x 8% + expected loss amount Note: Required capital amount = (credit risk-weighted asset (10) Amount of credit risk-weighted assets calculated through application of Article 15 of the Supplementary Rules of (10) (9) Amount of profit/loss on sale recognized during the term accompanying securitization transactions and breakdown (9) (8) Outline of exposure securitized in current term (7) Matters concerning securitization exposure with early redemption provisions (6) Amount of securitization exposure to be deducted from capital pursuant to provisions of Article 247 of the Capital to be deducted from capital pursuant to provisions of Article 247 of the Amount of securitization exposure (6) (5) Capital equivalent amount increased due to securitization transaction and breakdown by original asset type (5) Capital equivalent amount increased (4) Balance of securitization exposure held by risk weight classification of appropriate number and required capital amount of appropriate number and exposure held by risk weight classification (4) Balance of securitization 298 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group (2) Balanceofsecuritizationexposureheldbyriskweightclassificationappropriatenumberandrequiredcapitalamount (4) Amount ofcreditrisk-weightedassetcalculatedwithapplicationArticle15theSupplementary RulesofCapital (3) Amount ofsecuritizationexposuredeductedfromcapitalpursuanttoprovisions ofArticle247theCapital Note: Requiredcapitalamount=(creditrisk-weightedassetx1.06)8% Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (1) Amountofsecuritizationexposureheldandbreakdownbyprimaryoriginalassettype Securitization ExposureinwhichtheCMTBGroupisInvestor Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Risk Weight As ofMarch31 Breakdown ofOriginalAssets As ofMarch31 Total Capital Deduction 350% toLessthan1250% 100% toLessthan350% 50% toLessthan100% 20% toLessthan50% Less than20% Breakdown ofOriginalAssets As ofMarch31 Total Other Residential Mortgage Total Asset-backed SecuritiesofMonetaryReceivablessuchasInstallment(ABS) Securitization ofBusiness(WBS) Collateralized LoanObligation(CLO) First toDefaultTypeCreditLinkedNotes(CLN) Debt CollateralCertificateUsingCreditDerivative(SyntheticCDO) Multi-borrower TypeCommercial-useRealEstateBackedSecurities(MCMBS) Residential MortgageBackedSecurities(RMBS) N.A. Adequacy RatioNotification Adequacy RatioNotificationandbreakdownbytypeoforiginalasset 157,475 ¥ 87,250 ¥ Balance 34,506 35,718 — — — 2011 Capital Amount Required 2,957 ¥ 518 ¥ 1,463 975 — — — Millions ofYen 157,475 ¥ 78,058 ¥ ¥— ¥— 174,405 ¥ 92,530 ¥ Balance 2011 2011 52,763 28,553 48,959 9,635 9,453 4,614 2,950 4,111 249 Millions ofYen Millions ofYen — — — 2010 Capital Amount 174,405 ¥ 90,126 ¥ 63 ¥ ¥— 571 ¥ 3,594 ¥ Required 2010 2010 20,383 51,278 7,534 4,111 1,210 1,368 970 348 63 95 — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 299 2,238 2010 2010 ¥ 14,474 ¥ 12,235 ¥ 73,007 ¥ 546,986 Market Value Consolidated 2010 Millions of Yen Millions of Yen 6,692 90,409 2011 2011 ¥ 546,986 ¥ 637,396 ¥ 9,558 ¥ 2,865 ¥ 38,217 Balance Sheets Amount Posted on the Consolidated Millions of Yen ribed in the above. ¥ 486,802 Market Value 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 88,597 ¥ 486,802 ¥ 575,400 Balance Sheets Amount Posted on the Consolidated Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Not Recognized on the Consolidated Statements of Income Not Recognized on the Consolidated Statements N.A. N.A. Listed Equity Exposures than Above Equity Exposures Other Total Amount of Appraisal Profit/Loss Recognized on the Consolidated Balance Sheets and Amount of Appraisal Profit/Loss Recognized Profit/Loss on Sale Amortization Loss (-) Total Classification As of March 31 As of March 31 As of March 31 Breakdown Note: Profit/loss on stocks stated on the consolidated statements of income is described in the above. Note: Profit/loss on stocks stated on the consolidated statements Note: Equity exposures for domestic and foreign stocks are described in the above. Note: Equity exposures for domestic and foreign stocks Amount Calculated into Tier II Capital Pursuant to Article 6, Paragraph 1 of the Capital Adequacy Ratio Notification Amount Calculated into Tier II Capital Pursuant to Article 6, Paragraph 1 Amount of Appraisal Profit/Loss Not Recognized on the Consolidated Balance Sheets and Not Recognized on the Amount of Appraisal Profit/Loss Not Recognized on the Consolidated Balance Consolidated Statements of Income Note: Appraisal profit/loss relating to other securities (domestic and foreign stocks) that fall under equity exposures is desc Note: Appraisal profit/loss relating to other securities (domestic Amount Posted on the Consolidated Balance Sheets and Market Value the Consolidated Balance Sheets and Amount Posted on Equity Exposures in Bank Accounts Equity Exposures Amount of Appraisal Profit/Loss Recognized on the Consolidated Balance Sheets and Not Recognized on the Amount of Appraisal Profit/Loss Recognized Consolidated Statements of Income Amount of Profit/Loss Accompanying Sale and Write-Off of Equity Exposures Amount of Profit/Loss Accompanying 300 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Term-end BalanceinTrustAccountwithanAgreementonCompensationforPrincipal Capital AdequacyRatioNotificationinTrustAccountswith anAgreementonCompensationforPrincipal Amount ofEquityExposuresApplicabletoArticle13(Transitional Measure)oftheSupplementaryRules Compensation forPrincipal Amount ofProfit/LossAccompanyingSaleandWrite-OffEquityExposuresinTrustAccountswithanAgreement on Note: Term-endbalanceistheamountbasedonaccountingprocessingoftrustaccountwithanagreementcompensationforprin Equity Exposures inTrust Accountwithan Agreement onCompensationforPrincipal Reference: Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Profit/lossonsaleandamortizationlossistheamountbasedaccountingprocessingoftrustaccountswithanagre Adequacy RatioNotification Amount ofEquityExposuresApplicabletoArticle13(Transitionalmeasure)theSupplementaryRulesCapital Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Note: As fortheamountofequityexposuresclassifiedintoothersecurities,smallereither,postedonth Classification As ofMarch31 Classification As ofMarch31 Breakdown As ofMarch31 Total Equity ExposuresOtherthanAbove Listed EquityExposures Total Equity ExposuresOtherthanAbove Listed EquityExposures Total Amortization Loss(-) Profit/Loss onSale Classification As ofMarch31 Total Equity ExposuresOtherthanAbove Listed EquityExposures As fortheamountofequityexposuresthatisnotclassifiedintoothersecurities,postedonconsolidatedbalan cost isused. ement oncompensationforprincipal. e consolidatedbalancesheetsortheacquisition ce sheetsisused. cipal. 378,386 ¥ 296,281 ¥ 482 ¥ ¥— ¥— ¥— 482 ¥ ¥— 2011 2011 2011 2011 82,105 482 482 Millions ofYen Millions ofYen Millions ofYen Millions ofYen — Consolidated 397,861 ¥ 315,350 ¥ 488 ¥ ¥— ¥— ¥— 488 ¥ ¥— 2010 2010 2010 2010 82,510 488 488 — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 301 — — — 2,840 13,024 2010 2010 ¥ 64,801 ¥ 370,141 ¥ 386,006 Consolidated Consolidated — — — Millions of Yen Millions of Yen 2,509 10,007 2011 2011 ¥ 53,990 ¥ 359,761 ¥ 372,278 a non-consolidated basis, the value n though the respective assets that back up anks.” observation period of 5 years. are obvious. Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 2 4 3 1 Since subject assets in consolidation target companies other than CMTB are very few, and as internal management only manages on Since subject assets in consolidation target companies other calculated for CMTB on a non-consolidated basis is indicated. interest rate volatility measured with retention period of 1 year and Interest rate shock to be applied: 99 percentile value of deposit (ordinary deposit, current deposit, etc.) Core deposit to be applied: 50% of current balance of liquid Those Applicable to 400% Risk Weight Those Applicable to Those Applicable to 1250% Risk Weight Fund, etc. are not obvious. Total Exposure Applicable to Simple Risk Weight Method* Exposure Applicable Exposure Applicable to Look-through Formula* Exposure Applicable to Modified Simple Majority Method* Exposure Applicable to Investment Criteria Formula* Exposure Applicable Variation Amount of Profit/Loss or Economic Value from Interest Rate Shock Variation Amount of Profit/Loss or Economic As of March 31 Calculation Method As of March 31 *2. Exposure in which equity exposures makes up a majority of the assets backing up the Fund, etc. *2. Exposure in which equity exposures makes up a majority standards are determined eve Exposure in which the composing assets of the Fund, etc. are predictable since the operational *3. Fund, etc. are not obvious, and does not fall under 1 to 3 above. *4. Exposure in which the respective assets backing up the *1. In investment trusts, funds, repackaged bonds, etc. (the “Fund, etc.”), the exposure in which the respective backed assets *1. In investment trusts, funds, repackaged bonds, etc. (the Note: Calculation is done by the same method as the outlier standard as provided in “General Supervision Guidelines for Major B Note: Calculation is done by the same method as the outlier Exposure Relating to Funds Relating Exposure Internal Management with Regard to Interest Rate Risk in Bank Accounts Internal to Interest with Regard Management Variation Amount of Profit/Loss or Economic Value from from Value or Economic Amount of Profit/Loss Variation for Rate Shock Used by the CMTB Group Interest 302 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report thestandardisedapproach • Methodusedincalculationofoperationalriskequivalents: Operational Risks 4. Securitizationexposure 3. Ratingagencyusedforthestandardisedapproach: 2. Scope ofapplicationtheinternalratings-basedapproach 1. Typeofinternalratings-basedapproachtobeused: Credit Risk-Weighted Assets Fixed-term subordinatedbonds Perpetual subordinatedbonds Common stock Means ofCapitalProcurement Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited and scopeofapplicationthestandardisedapproach: Rating agencytobeused: Credit risk-weightedassetamountcalculationmethod: Fitch RatingsLimited Standard &Poor’sRatingsServices Moody’s InvestorsServiceInc. Japan CreditRatingAgency,Ltd. Rating andInvestmentInformation,Inc. - forthosewithoutexternalratingsandnotpossibletoascer- - forthosewithoutexternalratingsbutpossibletoascertainthe - forthosewithexternalratings:theratings-based However, forcorporateexposures,weapply100%riskweighttoall. Rating andInvestmentInformation,Inc. credit riskmanagement. ings-based approachandbesidesthereislittlesignificancein assets towhichitispracticallydifficultapplytheinternalrat- Assets notoccurringtheincidentaltocredittransactionsor Assets underthestandardisedapproch cation andthestandardisedapproachisused. the followingscopeshallbeconsideredexemptedfromappli- internal ratings-basedapproachisusedinprinciple,however, for calculationofcreditrisk-weightedassets,thefoundation the foundationinternalratings-basedapproach exposure: capitaldeduction tain theoriginalassetsthatbackuprelevantsecuritization sure: supervisoryformula original assetsthatbackuptherelevantsecuritizationexpo- approach Non-consolidated Non-consolidated Non-consolidated Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 303 — — — — — — — — — — — — — — — — 4,643 9,501 9.09% 26,389 47,908 20,401 17,056 13.04% 674,307 319,250 116,750 202,500 319,250 967,168 644,427 364,954 149,011 129,291 678,950 2010 7,050,041 6,405,613 ¥ 7,414,995 ¥ 399,697 — — — — — — — — — — — — — — — — — Millions of Yen 8,021 15,298 10,851 19,053 49,512 Non-consolidated 15.67% 10.83% 726,095 726,095 343,747 109,247 234,500 343,747 548,036 333,674 162,044 149,011 1,050,789 6,368,291 5,820,254 2011 ¥ 6,701,965 ¥ 399,697 tween Tohmatsu and us, and were not an accounting audit in siness Type, Report No. 30). n for adoption and continuous use of the internal ratings-based amount is not posted. ovisions of Items 3 to 6 thereof and those indicated in Item 2 above. r fixed-term subordinated bonds, there is a limitation to those with to the calculation of the capital adequacy ratio (the abovementioned ation No. 19 of 2006 (the “Capital Adequacy Ratio Notification”) and ., that has the probability of redemption including those adding a step- aragraph 1, Item 1 of the Capital Adequacy Ratio Notification, amount Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report ion, and which have all of the characteristics as indicated below: on of the capital adequacy ratio, we have received examination services by (B) 2 Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 6 4 5 3 (D) 7 Asset (On-balance sheet) Items Off-balance Sheet Transaction Items Non-dilutive Preferred Securities with Step-up Interest Rate Provisions of Above* Non-dilutive Preferred Securities with Step-up Interest Rate Perpetual Subordinated Bonds of Above* Stock of Above* Fixed-term Subordinated Bonds and Fixed-term Preferred Non-cumulative Perpetual Preferred Stock of Above Non-cumulative Perpetual Preferred (1) Unsecured, subordinated to other liabilities, and already paid, (2) Not to be redeemed, except for in certain cases, (3) Should supplement loss while business is ongoing, (4) That for which interest payment obligation postponement is allowed. Amount Arrived at by Dividing Operational Risk Equivalents by 8% Amount Arrived at by Multiplying {(Amount arrived at by multiplying the rate prescribed in the Notification by the former required capital) Minus (amount of new required capital)} by 25.0 Total (F) (A)/(F) x 100 (B)/(A) x 100 Amount not Calculated into Tier II Capital (-) Total Tier II Capital (C) Items for Deduction* Capital Amount (E) = (A) + (C) - (D) Credit Risk-Weighted Asset Amount Total Tier I Capital (A) Revaluation Amount and Carrying Amount Just before Revaluation Amount Equivalent to 45% of Difference between Land General Reserve for Possible Loan Losses* Loss Amount* Amount by which Qualifying Reserve Exceeds Expected Liability Type Fundraising Means, etc. Projected Amount of Distributed Income (-) Evaluation Loss on Securities (-) Stock Acquisition Rights Trade Rights Equivalent Amount (-) Consolidation (-) Intangible Fixed Asset Equivalent Posted by Corporate Transactions (-) Amount Equivalent to Capital Increase Due to Securitization Expected Loss from the Qualifying Reserve (-) Amount Equivalent to 50% of the Amount Exceeding the (Total amount of above respective items) Total Tier I Capital before Deduction of Deferred Tax Assets Amount of Deferred Tax Assets Deducted (-) Capital Stock New Stock Application Margin Capital Reserve Other Capital Surplus Retained Earnings Other Retained Earnings Treasury Stock (-) Treasury Stock Application Margin up interest rate and other special provisions (including preferred investment securities issued by overseas SPCs). upon be Deloitte Touche Tohmatsu LLC. The relevant examination services were an implementation of examination procedures agreed accordance with the GAAS, nor did we receive their opinion on the capital adequacy ratio itself, or internal controls relating by Bu examination procedures were in accordance with the Japanese Institute of Certified Public Accountants, Committee on Audit redemption periods exceeding five years from the agreement. pr equivalent to investment in those set in Item 2 of the relevant paragraph, the amount that is to be deducted pursuant to the No. 79 of 2008. approach as prescribed in Article 238 of the Capital Adequacy Ratio Notification, is 15.05% (Tier I ratio: 10.35%). Non-consolidated Capital Adequacy Ratio (Domestic standard) = (E)/(F) x 100 For Reference: Risk-Weighted Assets, etc. Tier II capital Tier I Capital As of March 31 Item *3. Amount of portion to which standardised approach is adopted is stated. loss *4. For trust account with an agreement on compensation for principal, amount by which qualifying reserve exceeds expected *5. Meaning liability fundraising means as indicated in Article 41, Paragraph 1, Item 3 of the Capital Adequacy Ratio Notificat *6. These are those indicated in Article 41, Paragraph 1, Items 4 and 5 of the Capital Adequacy Ratio Notification. However, fo *6. *7. Amount equivalent to intentional holding of fundraising means of other financial institutions as indicated in Article 43, P *7. *8. From the end of the 2002 consolidated fiscal term (March 31, 2003), as to the internal control system relating to calculati *8. *2. Meaning those as provided in Article 40, Paragraph 2 of the Capital Adequacy Ratio Notification, in other words, stock, etc Meaning those as provided in Article 40, Paragraph 2 of the Capital Adequacy Ratio Notification, *2. *9. Non-consolidated capital adequacy ratio (International Unified Standard) as of March 31, 2011, which constitutes a conditio Non-consolidated capital *9. *1. Composition of capital and capital adequacy ratio, etc. are calculated in accordance with Financial Services Agency Notific Composition of capital and capital adequacy ratio, etc. *1. Composition of Capital (Non-consolidated Capital Adequacy Ratio (Domestic Standard)) (Non-consolidated Capital Adequacy Composition of Capital Capital Adequacy Ratio Capital Adequacy 304 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report *2. Calculation methodofrequiredcapitalamountforthecreditriskisasfollows(althoughCMTBusesdomesticstandards, *1. Exposureregardingpurchasedreceivables,unsettledtransactions,leasetransactionsandotherassets. Required CapitalAmount Capital AdequacyLevels Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited *2. Calculation methodofrequiredcapitalamounttocreditriskrelatingequityexposuresapplicabletheinternalrating *1. Amount ofcreditrisk-weightedassetsiscalculatedbyplacingriskweight (2) Requiredcapitalamountforthecreditriskrelatingtoequityexposuresapplicableinternalratings-basedapproach (1) Requiredcapitalamountforcreditrisks(amountin(2)(3)shallbeexcluded) Classification As ofMarch31 Total Those ApplicabletotheTransitionalMeasure* PD/LGD Approach Market-based Approach Classification As ofMarch31 Total Securitization Exposure Portfolio ApplicabletotheInternalRatings-basedApproach Portfolio ApplicabletotheStandardisedApproach Those applicabletothetransitionalmeasure:(amountofcreditrisk-weightedasset x1.06)8%+capitaldeductionamount Those applicabletothePD/LGDapproachis:(amountofcreditrisk-weighted assetx1.06)8%+expectedlossamountcapital Those applicabletosimpleriskweightmethodofthemarket-basedapproach: (amountofcreditrisk-weightedassetx1.06)8% uses domesticstandards,aswehaveadoptedthefoundationinternalratings-based approach,weuse8%forcalculationofthere Notification. deduction amount Portfolio applicabletotheinternalratings-basedapproachandsecuritizationexposure:(amountofcreditrisk-weightedasset Portfolio applicabletothestandardisedapproach:amountofcreditrisk-weightedassetx8%+capitaldeduction based approach,weuse8%forcalculationoftherequiredcapitalamount). Simple RiskWeightMethod Other Exposures* Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Bank Exposures Sovereign Exposures Corporate Exposures 1 1 as being100%,pursuanttoArticle13oftheSup we haveadoptedthefoundationinternalratings- s-based approachisasfollows(althoughCMTB x 1.06)8%+expectedlossamountcapital plementary RulesofCapitalAdequacyRatio 599 ¥ 2,666 ¥ 69,800 ¥ 480,191 ¥ 325,144 448,739 2011 2011 40,128 27,005 30,852 33,825 13,859 51,937 21,912 2,666 1,209 + capitaldeductionamount Non-consolidated 850 Millions ofYen Millions ofYen quired capitalamount). deductionamount 72,963 ¥ 560,153 ¥ 525 ¥ 81 ¥ 384,175 521,418 2010 2010 41,255 31,626 38,209 38,236 17,899 53,097 25,777 1,233 997 81 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 305 — — — 898 3,247 2010 2010 2010 ¥ 29,196 ¥ 29,196 ¥ 593,199 ¥ 67,292 ¥ 71,437 — — — Millions of Yen Millions of Yen Millions of Yen 825 3,078 2011 2011 2011 ¥ 26,693 ¥ 26,693 ¥ 536,157 ¥ 64,112 ¥ 68,016 on of the principal requirements amount. c standards, as we have adopted the foundation Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 1 internal ratings-based approach, we use 8% for calculation of the required capital amount). internal ratings-based approach, we use 8% for calculation asset x 1.06) x 8% + expected loss amount + capital deduction amount Look-through formula: (amount of credit risk-weighted asset x 1.06) x 8% + capital deduction amount Other than look-through formula: (amount of credit risk-weighted though CMTB uses domestic standards, as we have adopted the foundation internal ratings-based approach, we use 8% for calculati though CMTB uses domestic standards, as we have adopted Those Applicable to 400% Risk Weight Those Applicable to 1250% Risk Weight Those Applicable to Total Amount of Non-consolidated Required Capital* Total Amount of Non-consolidated Required Standardised Approach Total Total Modified Simple Majority Method Modified Simple Majority Method Operational Standards Simple Risk Weight Method Look-through Formula As of March 31 Classification As of March 31 Classification As of March 31 Calculation Method (5) Total amount of non-consolidated required capital (5) Total amount of non-consolidated required (4) Required capital amount for operational risks (4) Required capital amount for operational (3) Required capital amount for the credit risk relating to funds (3) Required capital Note: Calculation method of required capital amount for credit risk relating to funds is as follows (although CMTB uses domesti Calculation method of required Note: *1. (Total amount of credit risk-weighted asset + operational risk equivalents/8%) x 8% *1. (Total amount of credit risk-weighted asset + operational *2. Al 306 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Thefollowingvaluesareusedforaboveterm-endbalance: Notes: Term-end BalanceofExposureRelevanttoCreditRisksandBreakdownbyPrimaryTypes Credit Risks(exceptforexposure relating tofundsandsecuritizationexposure) Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Classification As ofMarch31 Total Internal Ratings-basedApproach Standardised Approach Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. 2. Equity exposuresandotherassets,etc.asprovidedinArticle178ofthe CapitalAdequacyRatioNotification(prepaidpensi 4. Theaveragebalanceofexposureduringthetermisvalueforrespectivequarterlyterm-endbalances. 3. Internalratings-basedapproachapplicationexclusionportionisdescribedinthestandardisedapproach. Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment assets, etc.)arenotincludedinabove. (4) Trustwithanagreementoncompensationforprincipal:exposureatdefaultlesspartialdirectwrite-off. (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents;however,forrepo-styletransactions,exposureatdefaultafter (1) On-balance sheettransactions:amountgainedbydeductingpartialdirectwrite-off fromamountofexposureatdefault;howe (standardised approach),amountgainedbydeductingvaluationgainsonothersecuritiesfromthepostednon-conso 13,963,844 ¥ 8,377 ¥ 13,955,466 1,196,136 1,909,410 2,709,848 9,208,087 2011 184,602 496,233 128,120 32,438 8,377 — — — — — — — risk mitigation, on expenses,fixedassets,deferredtax Millions ofYen 15,006,975 ¥ 7,417 ¥ ver, forapplicationexclusionportion 14,999,558 1,651,648 2,381,591 3,414,582 9,092,224 2010 202,936 499,980 111,159 lidated balancesheets, 27,025 Non-consolidated 7,417 — — — — — — — Average Balance during theTerm 9,172 ¥ 13,687,220 ¥ of Exposure 13,678,047 1,108,094 1,839,058 2,839,610 8,880,525 194,328 504,809 118,852 31,827 9,172 — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 307 4 — 233 1,353 93,110 28,148 26,791 18,049 235,021 499,980 202,932 2010 1,650,295 1,563,237 1,206,957 8,864,620 2,207,625 2,353,442 ¥ 15,006,975 ¥ 13,443,738 3 762 330 Millions of Yen 1,509 32,024 30,928 27,641 lidated balance sheets, 100,479 226,609 495,471 184,599 2011 1,171,996 1,195,805 1,531,109 8,989,855 1,537,852 1,877,385 ver, for application exclusion portion ¥ 13,963,844 ¥ 12,432,734 on expenses, fixed assets, deferred tax risk mitigation, Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel (standardised approach), amount gained by deducting valuation gains on other securities from the amount posted on the non-conso (standardised approach), amount gained by deducting (1) On-balance sheet transactions: amount gained by deducting partial direct write-off from amount of exposure at default; howe On-balance sheet transactions: amount gained by deducting partial (1) (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default after credit (2) Off-balance sheet transactions: credit equivalents; however, (3) Derivative transactions: credit equivalents, exposure at default less partial direct write-off. (4) Trust with an agreement on compensation for principal: assets, etc.) are not included in above. Repo-style Transactions Other Commitment for Principal Trusts with an Agreement on Compensation Commitment for Principal Trusts with an Agreement on Compensation Repo-style Transactions Other 2. Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio Notification (prepaid pensi Equity exposures and other assets, etc. 2. 3. Internal ratings-based approach application exclusion portion is described in the standardised approach. 3. Internal ratings-based approach application exclusion Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Securities Total Overseas Domestic As of March 31 Classification (1) Term-end balance of exposure by region and breakdown by primary types of exposure by region and breakdown (1) Term-end balance Notes: 1. The following values are used for above term-end balance: 308 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited oe:1.Thefollowingvaluesareusedforaboveterm-endbalance: Notes: (2) Term-endbalanceofexposurebybusinesstypeandbreakdownprimary Business Type As ofMarch31 Total Special InternationalFinancialTransactionAccountPortion Individual Business Corporations Financial Institutions Sovereign Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Other Local PublicOrganizations Central GovernmentandMank 2. Equity exposures andotherassets,etc.asprovided inArticle178oftheCapitalAdequacyRatio Notification(prepaidpensi Securities Loaned Money,CallLoans,Deposits,etc. Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions assets, etc.)arenotincluded inabove. (4) Trustwithanagreement oncompensationforprincipal:exposure atdefaultlesspartialdirectwrite-off. (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents; however,forrepo-styletransactions,exposureatdefaultaftercredit (1) On-balance sheettransactions:amountgainedbydeductingpartialdirectwrite-off fromamountofexposureatdefault;howe Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment (standardised approach),amountgained by deductingvaluationgainsonothersecuritiesfromtheamountpostednon-conso risk mitigation, on expenses,fixedassets, deferredtax 3,687,952 ¥ 13,963,844 ¥ ver, forapplicationexclusionportion 1,081,697 1,081,700 1,595,679 3,076,835 5,005,435 6,037,394 3,278,857 3,484,193 2011 420,197 139,906 570,179 195,429 344,411 716,880 399,455 410,956 500,951 498,391 156,047 205,336 lidated balancesheets, 10,075 37,423 37,423 11,949 25,636 29,811 10,976 40,937 32,438 47,937 81,534 95,505 76,644 13,350 32,615 37,339 9,874 4,174 1,151 Millions ofYen 201 150 — — — — — — — — — — — — — — — — — — — 3 0 6 15,006,975 ¥ 4,615,183 ¥ 3,301,647 3,512,454 5,075,713 6,116,001 1,536,500 1,536,504 2,472,279 4,196,927 2010 162,813 210,806 441,232 537,970 466,432 188,143 279,886 328,712 736,478 195,343 166,707 374,060 34,406 73,939 22,798 35,884 11,858 44,194 26,858 26,858 13,585 27,025 24,341 52,604 75,275 27,402 31,695 11,793 12,009 4,293 1,233 640 216 — — — — — — — — — — — — — — — — — — — — 3 4 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 309 8 0 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 15 15 11 42 17 17 24 76 346 346 779 764 494 983 2,611 6,982 2,026 4,119 4,060 4,483 4,407 19,687 53,413 95,451 41,539 35,382 32,526 31,518 934,572 219,819 193,150 128,489 180,403 175,911 2010 ¥ 1,210,417 1 4 9 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 28 33 12 15 15 923 400 233 315 315 761 746 Millions of Yen 4,482 4,482 5,120 4,266 4,221 2,286 38,286 28,870 29,239 28,305 44,264 84,723 20,814 280,985 276,501 940,451 199,075 178,027 114,367 2011 ¥ 1,186,077 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Commitment on Compensation for Principal Trusts with an Agreement Repo-style Transactions Other Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Derivative Transactions Information Communications Electricity, Gas, Heating, Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing As of March 31 Business Type Reference: Term-end balance of exposure by business type relevant to corporations and breakdown by primary type relevant to corporations and breakdown balance of exposure by business type Reference: Term-end 310 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited oe:1.Thefollowingvalues areusedforaboveterm-endbalance: Notes: Business Type As ofMarch31 Total Other Various Services Real estate Finance andInsurance Wholesale andRetail Transportation Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Derivative Transactions Securities Loaned Money,CallLoans,Deposits,etc. 2. Equity exposuresandotherassets, etc.asprovidedinArticle178oftheCapitalAdequacyRatioNotification(prepaidpensi Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal Commitment Other Repo-style Transactions Trusts withanAgreementonCompensationforPrincipal assets, etc.)arenotincludedinabove. (4) Trustwithanagreementoncompensationforprincipal:exposureatdefaultless partialdirectwrite-off. (3) Derivativetransactions:creditequivalents, (2) Off-balancesheettransactions:creditequivalents;however,forrepo-styletransactions, exposureatdefaultaftercredit (1) On-balance sheettransactions:amountgainedbydeductingpartialdirectwrite-offfromofexposureatdefault;howe (standardised approach),amountgainedbydeductingvaluationgainsonothersecurities fromtheamountpostedonnon-conso risk mitigation, on expenses,fixedassets,deferredtax 614,677 ¥ 6,037,394 ¥ ver, forapplicationexclusionportion 1,197,629 1,232,314 1,034,974 1,265,644 2011 533,786 458,332 518,150 274,674 355,590 100,074 238,057 174,429 430,221 128,246 lidated balancesheets, 11,713 22,971 43,713 48,597 29,889 21,069 44,029 15,208 18,718 14,001 16,068 29,234 43,388 37,204 19,385 80,472 12,972 4,125 7,427 1,573 3,310 2,403 4,240 2,067 1,666 1,181 2,348 Millions ofYen 161 581 322 216 — — — — — — — — 656,955 ¥ 6,116,001 ¥ 1,198,475 1,252,389 1,118,663 1,317,167 2010 489,900 549,261 548,752 295,101 382,843 112,196 203,447 182,391 395,407 18,308 67,585 72,484 33,573 23,607 40,268 13,482 27,403 44,426 42,973 20,409 63,969 84,610 18,642 26,114 27,800 15,813 1,150 3,748 2,146 3,178 1,210 1,696 7,306 2,214 6,887 9,102 783 342 230 165 467 — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 311 — — — — — — — 388 3,481 1,092 2,097 5,777 3,219 1,877 3,854 9,372 6,555 7,119 2,603 30,955 30,838 27,025 39,838 34,741 23,047 67,091 44,023 33,982 73,630 93,024 675,813 198,633 787,289 216,011 212,821 935,603 968,606 559,176 313,956 218,317 764,555 151,635 223,263 130,239 127,248 2010 2,864,961 1,820,817 1,564,320 2,512,141 1,505,359 1,949,825 4,370,019 3,386,736 ¥ 5,392,549 ¥ 15,006,975 — — — — — — 368 919 Millions of Yen 6,557 5,617 6,669 7,362 3,335 2,329 5,083 60,338 25,378 20,110 32,438 11,147 59,824 47,537 46,804 27,652 15,815 77,673 99,645 19,621 29,094 50,929 86,674 17,076 lidated balance sheets, 128,222 125,523 193,907 933,861 213,150 207,146 479,953 773,157 294,625 424,364 794,253 231,973 2011 3,205,416 1,361,763 1,115,307 2,384,565 1,226,405 1,561,697 1,015,361 4,359,553 3,387,981 ver, for application exclusion portion ¥ 13,963,844 ¥ 4,652,897 on expenses, fixed assets, deferred tax risk mitigation, Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel (standardised approach), amount gained by deducting valuation gains on other securities from the amount posted on the non-conso (standardised approach), amount gained by deducting valuation gains on other securities from the amount posted (1) On-balance sheet transactions: amount gained by deducting partial direct write-off from amount of exposure at default; howe On-balance (1) (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default after credit (2) Off-balance sheet transactions: credit equivalents; however, for repo-style transactions, exposure at default (3) Derivative transactions: credit equivalents, (4) Trust with an agreement on compensation for principal: exposure at default less partial direct write-off. assets, etc.) are not included in above. Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Trusts with an Agreement on Compensation for Principal Commitment Trusts with an Agreement on Compensation for Principal Repo-style Transactions Other Commitment Commitment on Compensation for Principal Trusts with an Agreement Repo-style Transactions Other 2. Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio Notification (prepaid pensi Equity exposures and other assets, etc. as provided in Article 178 of the Capital Adequacy Ratio 2. 3. Those of which remaining period is beyond recognition are included in “With no Provision for Period.” Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Derivative Transactions Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Derivative Transactions Total With no Provision for Period Over 7 Years Over 5 Years to 7 Years or Shorter Over 3 Years to 5 Years or Shorter Over 1 Year to 3 Years or Shorter Over 1 Year to 3 Years or 1 Year or Shorter As of March 31 Remaining Period Notes: 1. The following values are used for above term-end balance: (3) Term-end balance of exposure by remaining period relevant to corporations and breakdown by primary type to corporations and breakdown by of exposure by remaining period relevant (3) Term-end balance 312 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Equityexposuresisnotincludedin theabove. (i) Exposuresthreemonthsorlongeroverdue(thoseapplicabletothestandardisedapproach) (2) Term-endbalanceofexposurebybusinesstype 1.Equityexposuresisnotincludedintheabove. Notes: (1) Term-endbalanceofexposurebyregion Primary Type Term-end BalanceofExposuresThreeMonthsorLongerOverdueandinDefaultBreakdownby Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited (ii) Exposuresindefault(thoseapplicabletotheinternalratings-basedapproach) Classification As ofMarch31 Total (Those applicabletotheinternalratings-basedapproach) Exposures inDefault (Those applicabletothestandardisedapproach) Exposures ThreeMonthsorLongerOverdue Business Type As ofMarch31 Total Special InternationalFinancialTransaction AccountPortion Individual Business Corporations Financial Institutions Sovereign N.A. Other Various Services Real Estate Finance andInsurance Wholesale andRetail Transportation Information Communications Electricity, Gas,Heating,Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing Other Local PublicOrganizations Central GovernmentandBank 2. Internalratings-basedapproachapplicationexclusionportionisdescribedinthestandardisedapproach. 96,082 ¥ ¥— oetcOverseas Domestic 96,082 ¥— 5,227 ¥ 2011 5,227 101,309 ¥ ¥— 101,309 oa Domestic Total Millions ofYen 123,852 ¥ ¥— 123,852 ¥— 101,309 ¥ 2011 38,371 32,998 57,710 6,501 5,903 5,167 1,038 1,174 3,839 5,000 vresTotal Overseas 5,306 ¥ ¥— 227 491 402 192 Millions ofYen 2010 5,306 — — — — — — — 129,158 ¥ ¥— ¥— 129,158 ¥ 2010 32,986 55,481 90,865 129,158 6,192 6,208 7,584 1,599 3,298 6,904 3,365 5,000 306 231 — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 313 — — — — — — — — — — 30 83 14 (294) (294) (291) (845) 3,224 (2,833) (1,191) (6,717) (6,423) (6,506) (2,840) (1,744) Variance Variance ¥ (9,479) ¥ (6,717) ¥ (2,791) ¥— during Term during Term 2010 2010 — — — — — — — — — — 56 48 45 351 867 426 745 4,250 4,250 3,282 7,636 2,585 20,239 15,989 15,563 Balance Balance ¥ 46,519 ¥— ¥ 26,223 ¥ 20,239 Term-end Term-end ype. — — — — — — — — — — 46 27 Millions of Yen Millions of Yen (50) (43) (47) (50) (56) (246) (494) (8,588) (3,278) (3,493) (1,105) (8,686) (8,636) Variance Variance ¥— ¥ (8,686) ¥ 2,075 ¥ (6,666) during Term during Term 2011 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 1 3 — — — — — — — — — — — 94 378 773 105 372 4,143 1,479 4,200 6,974 7,353 4,200 11,553 Balance Balance Term-end Term-end ¥ 11,553 ¥ 28,299 ¥— ¥ 39,852 Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 2. General reserve for possible loan losses is not managed by region. 2. General reserve for possible loan losses is not managed Wholesale and Retail Finance and Insurance Real Estate Various Services Other Fishery Mining Industry Construction Electricity, Gas, Heating, Water Information Communications Transportation Other Manufacturing Agriculture Forestry Central Government and Central Bank Local Public Organizations Domestic Overseas Individual Special International Financial Transaction Account Portion Total Financial Institutions Business Corporations Sovereign Specified Overseas Receivables Reserve Account Total General Reserve for Possible Loan Losses General Reserve for Possible Respective Reserve for Possible Loan Losses Type of Reserve Years Ended March 31 Type of Reserve Years Ended March 31 Note: General reserve for possible loan losses and specified overseas receivables reserve account are not managed by business t Note: General reserve for possible loan losses and specified overseas receivables reserve account are not managed (2) Balance of respective reserve for possible loan losses by business type (2) Balance of respective reserve for possible Notes: 1. Above is a description of the value in the bank account. (1) Balance of reserve by region (1) Balance of reserve Term-end Balance and Amount of Variance during the Term of General Reserve for Possible Loan Losses, Respective of General Reserve for Possible Loan and Amount of Variance during the Term Term-end Balance Receivables Reserve Account Loan Losses, and Specified Overseas Reserve for Possible 314 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Amountofloanamortizedfortrustaccountwithanagreementoncompensationprincipalisincludedintheabove. Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Amount ofLoanAmortizedbyBusinessType Business Type Years EndedMarch31 Total Special InternationalFinancialTransactionAccountPortion Individual Business Corporations Financial Institutions Sovereign Other Various Services Real Estate Finance andInsurance Wholesale andRetail Transportation Information Communications Electricity, Gas,Heating,Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing Other Local PublicOrganizations Central GovernmentandBank Amount ofLoan Amortized 5,729 ¥ ¥— 2011 1,939 3,013 5,698 238 256 30 72 83 93 — — — — — — — — — — — Millions ofYen 0 Amount ofLoan Amortized 8,590 ¥ ¥— 2010 5,254 8,316 1,108 803 833 273 240 39 14 22 — — — — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 315 — — — — 11 217 7,405 28,303 11,283 30,767 2010 2010 176,472 280,057 ¥— ¥ 19,739 ¥ 546,623 ¥ 29 ¥ 247 ¥ 7,417 Rating Not Applicable* — — — — — — Millions of Yen Millions of Yen 2,897 7,859 13,994 13,368 2010 2011 2011 Rating 189,055 263,698 ¥— ¥— Applicable ¥ 491,222 ¥ 8,206 ¥— ¥ 7,859 alance sheets is used. — — — — 11 n-consolidated balance sheets or acquisition rate exposures, so risk weight is uniformly 100%. 7,405 ¥— ¥ 7,417 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 0 Millions of Yen — — — 10 8,363 ¥3 ¥3 ¥ 8,377 Rating Not Applicable* — — — — — — Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 2011 ¥— ¥— Rating Applicable 0 — — — 10 8,363 ¥ 8,377 ¥3 ¥3 cost. For balance of equity exposures that is not classified into other securities, the amount posted on the non-consolidated b cost. For balance of equity exposures that is not classified into other securities, the amount posted on the non-consolidated The exposures applicable to the relevant special exceptions are described in the “Rating Not Applicable” column. The exposures applicable to the relevant special exceptions Total 300% 400% 250% Total 70% 90% 115% 0% 50% Capital Deduction Total Over 35% to 75% Over 75% to 100% Over 100% to 150% 0% Over 0% to 10% Over 10% to 35% As of March 31 Risk Weight As of March 31 Risk Weight Risk Weight As of March 31 (2) Balance of equity exposures using simple risk weight method of the market-based approach (2) Balance of equity exposures using simple risk weight method of the market-based (1) Balance of specialized lending using slotting criteria (1) Balance of specialized lending using Exposures Applicable to the Internal Ratings-based Approch Exposures Applicable to the Internal * CMTB as registered for application of special exceptions in Article 67 of the Capital Adequacy Ratio Notification as to corpo CMTB as registered for application of special exceptions in Article 67 of the Capital Adequacy Ratio Notification * Balance by Risk Weight Classification for Exposure Applicable to the Standardised Approach Classification for Exposure Applicable Balance by Risk Weight Note: As for balance of equity exposures classified into other securities, smaller amount of either the amount posted on the no As for balance of equity exposures classified into other securities, smaller amount Note: Note: CMTB does not hold loans for commercial real estate (with high volatility). Note: CMTB does not hold loans for commercial real estate 316 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group (2) Sovereignexposures Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (1) Corporateexposures Portfolio ApplicabletotheInternalRatings-basedApproach Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited *3. PD estimated valueweightedaverage,LGDestimatedandriskweightaverageareeitherthe *2. Eleveninternalratingsstagesareintegratedintothreedebtorclassificationsandindicated. *1. EADestimatedvalueisanamountthattookintoconsiderationtheeffectofcreditriskreductionmethod. Requiring CarefulMonitoring( Credit Rating As ofMarch31 Requiring CarefulMonitoring( Requiring CarefulMonitoring( Total Substandard Debtors( Normal ( Credit Rating As ofMarch31 Credit Rating As ofMarch31 Total Substandard Debtors( Normal ( Total Substandard Debtors( Normal ( ratings weightedwithEADestimatedvalue,ortheriskweightofrespectiveinternalva (Not includingsubstandarddebtors) (Not includingsubstandarddebtors) (Not includingsubstandarddebtors) Seijou-saki Seijou-saki Seijou-saki ) ) ) Youkanri-saki Youkanri-saki Youkanri-saki Youchui-saki Youchui-saki Youchui-saki ) orWorse ) orWorse ) orWorse ) ) ) Value Weighted Value Weighted Value Weighted PD Estimated PD Estimated PD Estimated 100.00% 100.00% Average Average Average 100.00% 2.17% 8.10% 0.43% 0.00% 0.00% 2.81% 8.26% 0.52% — Value Weighted Value Weighted Value Weighted LGD Estimated LGD Estimated LGD Estimated Average Average Average 43.94% 41.58% 41.15% 44.13% 44.96% 45.00% 44.96% 43.89% 41.32% 41.32% 44.11% — Millions ofYen Millions ofYen Millions ofYen Risk Weight Risk Weight Risk Weight Weighted Weighted Weighted 160.70% Average Average Average 160.94% 53.73% 48.63% 60.59% 55.13% 2011 2011 2010 0.39% 0.39% — lue. estimated valueoftherespectiveinternal On-balance Sheet On-balance Sheet On-balance Sheet Asset Items Asset Items Asset Items 5,079,522 ¥ 4,758,090 ¥ 2,568,082 ¥ 2,568,082 ¥ 5,025,008 ¥ 4,635,506 ¥ EAD EstimatedValue* EAD EstimatedValue* EAD EstimatedValue* 266,797 309,557 54,635 79,944 — — Off-balance Sheet Off-balance Sheet Off-balance Sheet 499,665 ¥ 459,089 ¥ 1,121,587 ¥ 1,121,594 ¥ 506,729 ¥ 561,385 ¥ Asset Items Asset Items Asset Items 20,827 19,747 22,455 32,200 1 1 1 — 6 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 317 6 — — — — — 1 1 1 Asset Items Asset Items Asset Items ¥ 1,580,209 ¥ 1,580,216 ¥ 127,879 ¥ 127,879 ¥ 177,039 ¥ 177,039 Off-balance Sheet Off-balance Sheet Off-balance Sheet — — — 806 5,000 5,000 EAD Estimated Value* EAD Estimated Value* EAD Estimated Value* ¥ 592,690 ¥ 3,036,881 ¥ 3,036,881 ¥ 598,497 ¥ 567,147 ¥ 562,147 Asset Items Asset Items Asset Items On-balance Sheet On-balance Sheet On-balance Sheet estimated value of the respective internal estimated value of the respective internal lue. lue. — — 0.31% 0.31% 2010 2010 2011 38.86% 38.79% 32.31% 32.10% 217.13% Average Average Average Weighted Weighted Weighted Risk Weight Risk Weight Risk Weight Millions of Yen Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — 44.96% 45.00% 44.96% 44.40% 45.00% 45.00% 44.41% 45.00% 44.68% 44.68% Average Average Average LGD Estimated LGD Estimated LGD Estimated Value Weighted Value Weighted Value Weighted — — Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 0.00% 0.00% 0.22% 0.92% 0.16% 0.83% 12.33% 100.00% 100.00% Average Average Average 100.00% PD Estimated PD Estimated PD Estimated Value Weighted Value Weighted Value Weighted ) ) ) ) or Worse ) or Worse ) or Worse Youchui-saki Youchui-saki Youchui-saki Youkanri-saki Youkanri-saki Youkanri-saki ) ) ) Seijou-saki Seijou-saki Seijou-saki (Not including substandard debtors) (Not including substandard debtors) (Not including substandard debtors) (Not including substandard ratings weighted with EAD estimated value, or the risk weight of the respective internal ratings weighted with EAD estimated va ratings weighted with EAD estimated value, or the risk weight of the respective internal ratings weighted with ratings weighted with EAD estimated value, or the risk weight of the respective internal ratings weighted with EAD estimated va ratings weighted with EAD estimated value, or the risk weight Substandard Debtors ( Total Normal ( Substandard Debtors ( Total Normal ( Substandard Debtors ( Substandard Debtors Total Normal ( Credit Rating As of March 31 Credit Rating As of March 31 Credit Rating As of March 31 Requiring Careful Monitoring ( Requiring Careful Monitoring ( Requiring Careful Monitoring ( Requiring Careful Monitoring *1. EAD estimated value is an amount that took into consideration the effect of the credit risk reduction method. *2. Eleven internal ratings stages are integrated into three debtor classifications and indicated. value weighted average, and risk weight weighted average are either the PD estimated value weighted average, LGD estimated *3. *1. EAD estimated value is an amount that took into consideration the effect of the credit risk reduction method. *1. EAD estimated value is an amount that took into consideration debtor classifications and indicated. *2. Eleven internal ratings stages are integrated into three are either the PD estimated value weighted average, LGD estimated value weighted average, and risk weight weighted average *3. (3) Bank exposures 318 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (5) Exposurerelatingtopurchasedreceivables (4) EquityexposuresusingthePD/LGDapproach Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited *3. RiskweightweightedaverageisavalueofriskwithEADdilution. *2. ThisdescriptionisaboutExposuretopurchasecorporationsthatdonotusetop-down approach. *1. EADestimatedvalueisamountthattakesintoconsiderationtheeffectofcredit riskreductionmethod. *3. PD estimated valueweightedaverage,LGDestimatedandriskweightaverageareeitherthe *2. Eleveninternalratingsstagesareintegratedintothreedebtorclassificationsandindicated. *1. EADestimatedvalueisanamountthattookintoconsiderationtheeffectofcreditriskreductionmethod. Requiring CarefulMonitoring( Requiring CarefulMonitoring( As ofMarch31 Classification As ofMarch31 Classification As ofMarch31 Total Substandard Debtors( Normal ( Total Substandard Debtors( Normal ( ratings weightedwithEADestimatedvalue,ortheriskweightofrespectiveinternalva (Not includingsubstandarddebtors) (Not includingsubstandarddebtors) Seijou-saki Seijou-saki ) ) Youkanri-saki Youkanri-saki Youchui-saki Youchui-saki ) orWorse ) orWorse Risk Weight ) ) Weighted 54.43% Average On-balance Sheet Value Weighted Value Weighted Asset Items PD Estimated PD Estimated ¥ 87,522 100.00% Average Average 100.00% 2011 EAD EstimatedValue* 0.69% 9.34% 0.60% 1.20% 7.29% 0.50% Off-balance Sheet Value Weighted Value Weighted LGD Estimated LGD Estimated Asset Items Average Average 90.00% 90.00% 90.00% 90.00% ¥ 213 90.00% 90.00% 90.00% 90.00% Millions ofYen 1 Millions ofYen Millions ofYen Risk Weight Risk Weight Risk Weight Weighted Weighted Weighted 173.77% 462.37% 170.92% Average Average Average 173.44% 425.97% 166.97% 53.12% 2011 2010 lue. estimated valueoftherespectiveinternal On-balance Sheet On-balance Sheet On-balance Sheet Asset Items Asset Items Asset Items 179,947 ¥ 178,188 ¥ 205,690 ¥ 198,836 ¥ 5,1 ¥490 ¥ 159,010 EAD EstimatedValue* EAD EstimatedValue* EAD EstimatedValue* 2010 1,759 1,044 5,808 0 Off-balance Sheet Off-balance Sheet Off-balance Sheet Asset Items Asset Items Asset Items ¥— ¥— ¥— ¥— — — — — 1 1 1 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 319 — — — — — 34.58% 30.99% 28.47% 37.02% 35.95% 30.44% 29.43% 39.67% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Estimated Value of Estimated Value of Amount to the Left Amount to the Left the Non-withdrawal the Non-withdrawal is to be Multiplied by is to be Multiplied by Weighted Average of Weighted Average of Assessment Rate which Assessment Rate which 1 3 1 5 — — — 23 — — 94 22 23 503 188 138 115 141 550 205 88,377 87,780 Amount Amount ¥ 92,631 ¥ 3,210 ¥ 5,226 ¥ 93,981 Commitment Commitment Pre-withdrawal Pre-withdrawal ge of estimated value of assessment rate by 1 3 1 5 — 61 55 23 — 58 82 22 1 1 109 153 578 170 945 141 weighted with EAD estimated value. 2,580 2,490 30,650 31,634 Asset Items Asset Items ¥ 202,041 ¥ 167,382 ¥ 162,765 ¥ 197,876 Off-balance Sheet Off-balance Sheet Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — 903 105 827 102 1,516 2,963 2,125 9,406 1,586 3,245 2,728 31,655 14,546 45,013 10,163 31,506 21,335 42,276 134,267 118,774 EAD Estimated Value* EAD Estimated Value* ¥ 2,935,219 ¥ 3,179,358 ¥ 3,173,405 ¥ 2,942,491 Asset Items Asset Items On-balance Sheet On-balance Sheet 2010 2011 — — — — — — Millions of Yen Millions of Yen Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 2.75% 14.98% 43.05% 53.33% 13.99% 34.50% 80.19% 27.71% 18.68% 26.21% 76.79% 31.08% 17.18% 13.68% 57.53% 51.81% 208.93% 195.41% Average Average 211.46% 187.49% Weighted Weighted Risk Weight Risk Weight — — 34.14% 34.11% 31.16% 68.12% 69.69% 52.02% 35.79% 40.79% 65.83% 21.40% 91.74% 35.08% 34.48% 34.44% 30.69% 67.77% 68.34% 52.85% 32.15% 35.63% 56.24% 24.64% 88.81% 35.19% Average Average LGD Estimated LGD Estimated Value Weighted Value Weighted — — 1.11% 1.37% 1.04% 1.43% 0.22% 1.53% 1.01% 0.82% 1.02% 0.19% 27.78% 37.54% 28.76% 35.85% 26.39% 26.95% 100.00% 100.00% 100.00% 100.00% Average Average 100.00% 100.00% 100.00% 100.00% PD Estimated PD Estimated Value Weighted Value Weighted Not Delinquent Delinquent Default Not Delinquent Delinquent Default Default Not Delinquent Delinquent Default Not Delinquent Delinquent Not Delinquent Delinquent Default Delinquent Default Not Delinquent Delinquent Default Not Delinquent Delinquent Default Not Delinquent which to multiply the pre-withdrawal amount to the left are estimated values or risk weight by respective pool classifications which to multiply the pre-withdrawal amount to the left are estimated values or risk weight by respective pool classifications Total Other Business Type Loan Consumer Loan Residential Mortgage Total Other Business Type Loan Consumer Loan Residential Mortgage Types of Exposure As of March 31 Types of Exposure As of March 31 *1. EAD Estimated value is an amount that takes into consideration the effect of credit risk reduction method. *2. Segmented pool classification is integrated into above classifications and shown. PD estimated value weighted average, LGD estimated value weighted average, risk weight weighted average, and weighted avera *3. (6) Residential mortgage exposures, qualifying revolving retail exposures, and other retail exposures exposures, qualifying revolving (6) Residential mortgage 320 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Note: Estimated valueoflossamount (=EADestimatedvaluexPDLGDvalue)isthe Estimated ValueofLossAmountPortfolioApplicabletotheInternalRatings-basedApproach nonperforming loans. ended March31,2010. Analysis ofFactors Note: Actual lossamountistotaloffollowingamountsrelatingtoexposuresindefault,notincluding reversalofreserve: Amounts oftheRelevantTerm,andComparisonwithPastActual Actual LossAmountsofPortfolioApplicabletotheInternalRatings-basedApproachinMostRecentTerm/ Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Classification Years EndedMarch31 Classification Years EndedMarch31 Total Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Equity ExposuresApplicabletothePD/LGDApproach Bank Exposures Sovereign Exposures Corporate Exposures Total Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Equity ExposuresApplicabletothePD/LGDApproach Bank Exposures Sovereign Exposures Corporate Exposures This wasprimarilyattributabletoareductioninlossesassociatedwithcorporateexposures,duethelowlevelof new Actual lossamountforthefiscalyearendedMarch31,2011decreasedby¥16.4billioncomparedwith year 31, 2010and2011asthereferencedate,respectively. depreciation amountrelatingtoequityexposuresapplicablethePD/LGDapproach,lossonsale. possible loanlossesprovisionamount,reserveforcontingentlossdebtwrite-offonsaleofrec reserve accountprovisionamount,debtcreditriskadjustedamountrelatingtoderivatives(uphere,portionforpartyrequi General reserveforpossibleloanlossesprovisionamount,specialreceivablesdepreciationp Actual Loss 15,389 ¥ 10,541 ¥ Amount 2011 4,200 461 186 — — 0 to haveaccruedineachfiscalyearwithMarch ring management),respectivereservefor eivables, lossonwaiverofreceivables, rovision, specialforeignreceivables Estimated Value of LossAmount Millions ofYen Actual Loss 74,818 ¥ 50,595 ¥ 31,880 ¥ 24,703 ¥ Amount 11,613 2011 2010 8,257 1,089 2,800 2,577 4,250 156 191 420 Millions ofYen — 41 0 for PreviousTerm Estimated Value of LossAmount Loss Amount Comparison with Actual (14,162) ¥ (16,491) ¥ 92,206 ¥ 65,490 ¥ 2010 10,863 10,073 (2,116) 2,186 3,035 (191) 501 (50) 56 29 — (0) Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 321 — — — — — — — — 37,674 37,674 47,200 47,200 ¥— ¥ 37,674 ¥— ¥— ¥— ¥ 47,200 Other Collateral Other Collateral has been Applied has been Applied to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Amount of Exposure to which Credit Derivatives Non-consolidated 2010 — — 3,527 16,711 55,596 42,392 11,926 581,846 565,134 101,516 552,801 540,875 ¥ 101,516 ¥— ¥ 581,846 ¥— ¥— ¥ 552,801 has been Applied has been Applied which Guarantees to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Real Estate Collateral Real Estate Collateral Amount of Exposure to 2010 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Millions of Yen Millions of Yen Millions of Yen — — — — — — — — 6,131 6,131 3,062 3,062 ¥— ¥ 6,131 ¥— ¥— ¥— ¥ 3,062 has been Applied has been Applied to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Receivables Collateral Receivables Collateral Amount of Exposure to which Credit Derivatives Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel 2011 — — 3,316 13,855 85,115 41,088 11,811 129,519 1,718,711 1,704,855 1,182,524 1,170,713 ¥— ¥ 1,718,711 ¥— ¥ 129,519 ¥— ¥ 1,182,524 has been Applied has been Applied which Guarantees to which Qualified to which Qualified have been Applied Amount of Exposure Amount of Exposure Amount of Exposure to Financial Asset Collateral Financial Asset Collateral Bank Exposures Corporate Exposures Sovereign Exposures Bank Exposures Corporate Exposures Sovereign Exposures Corporate Exposures Sovereign Exposures Bank Exposures Total Standardised Approach Internal Ratings-based Approach Total Standardised Approach Internal Ratings-based Approach Classification As of March 31 Total Standardised Approach Internal Ratings-based Approach Classification As of March 31 Classification As of March 31 Amount of Exposure to which Guarantees and Credit Derivatives Have Been Applied Amount of Exposure to which Guarantees Amount of Exposure to which Credit Risk Reduction Method has been Applied to which Credit Risk Reduction Method Amount of Exposure Credit Risk Mitigation Measures Credit 322 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited (4) Totalamountindicatedin(2)plustotalofgrossadd-onminusthe(3) SettlementPeriodTransactionsLong-term Risks ofTransaction PartnersinDerivativeProducts Transactions and (3) Credit equivalentsbeforetakingintoconsiderationeffectofcreditriskreductionmethodbycollateral (2) Totalamountofgrossreconstructioncost(notlessthanzero) (1) Methodusedforcalculationofcreditequivalents As ofMarch31 Total AmountIndicatedin(2)andGrossAdd-onMinustheas(3) As ofMarch31 As ofMarch31 Credit EquivalentsbeforeTakingintoConsiderationtheEffectofRiskReductionMethod Total GrossReconstructionCostAmount Method UsedforCalculationofCreditEquivalents Of which,thosecorrespondingtotheEffectofCreditRiskReductionViaCollectiveLiquidation Of which,thosecorrespondingtoOtherTransactions Of which,thosecorrespondingtoLong-termSettlementPeriodTransactions Of which,thosecorrespondingtoInterestRateRelatedTransactions Of which,thosecorrespondingtoForeignExchangeRelatedTransactions by Collateral (for derivativeproducttransactions,creditequivalentsforeachtransactionclassificationareincluded) Netting Contracts(Loss) Currrent exposuremethod 185,937 ¥ 196,203 ¥ 115,342 ¥ 196,203 260,825 2011 2011 2011 50,640 Non-consolidated Millions ofYen Millions ofYen Millions ofYen 78 — Name 195,379 ¥ 185,830 ¥ 93,163 ¥ 229,678 185,830 2010 2010 2010 48,591 724 — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 323 hod — — — — — — — 313 3,605 1,098 2010 2010 2010 2010 63,000 17,343 Principal ¥— ¥ 15,000 ¥ 78,000 ¥— ¥ 89,560 ¥— ¥ 3,205 ¥ 6,810 ¥ 24,293 ¥ 43,049 Predicted — — — — — — — Millions of Yen Millions of Yen Millions of Yen Millions of Yen 245 4,326 1,640 63,000 15,494 2011 2011 2011 2011 Principal Predicted ¥ 36,269 ¥ 68,000 ¥— ¥ 110,788 ¥— ¥— ¥ 5,000 ¥ 5,919 ¥ 10,246 ¥ 18,889 h liquidation institutions, etc. Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Government Bonds Domestic Stocks US Bonds Cash Other Government Bonds Domestic Stocks US Bonds Cash Other Credit Default Swap Credit Linked Notes Other Credit Default Swap Credit Linked Notes Other 2. Of deposited collateral, ¥25,072 million (as of March 31, 2010) and ¥23,495 million (as of March 31, 2011) are deposited wit 2. Of deposited collateral, ¥25,072 million (as of March Credit Risk Reduction Method by Collateral Estimated Amount of Principal of Credit Derivatives Used to Take into Consideration the Effect of Estimated Amount of Principal of Credit Derivatives Used to Take into Consideration Credit Equivalents after Taking into Consideration the Effect of Credit Risk Reduction Method Credit Equivalents after Taking into Consideration Total Total Deposited Collateral Accepted Collateral Classification of Acceptance or ProvisionClassification of Acceptance of Collateral Type As of March 31 Total Total Protection Provision Protection Purchase As of March 31 As of March 31 As of March 31 Classification of Purchase or Provision of Credit Derivative Type (8) Estimated amount of principal of credit derivatives used to take into consideration the effect of credit risk reduction met (8) Estimated amount of principal of credit derivatives used to take into consideration (6) Credit equivalents after taking into consideration the effect of credit risk reduction method by collateral (6) Credit equivalents after taking into (5) Amount by type of collateral (5) Amount by type (7) Credit derivative predicted principal amount that will be subject to calculation of credit equivalents (7) Credit derivative predicted principal Notes: 1. Amount of collateral is indicated at market value. 324 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group (2) Of exposurecomposingoriginalassets,amountofexposuresthreemonthsorlongeroverduein Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (4) Balanceofsecuritizationexposureheldbyriskweightclassification ofappropriatenumberandrequiredcapitalamount (3) Amountofsecuritizationexposureheldandbreakdownbytypetheseprimaryoriginalassets Securitization Exposure Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited (1) Totalamountoforiginalassetsandbreakdownbytypetheseprimary Securitization ExposureofwhichCMTBistheOriginator Note: Requiredcapital amount=(creditrisk-weightedasset x1.06)8%+expectedlossamount Classification As ofMarch31 Risk Weight As ofMarch31 Type ofOriginalAssets As ofMarch31 Total Exposures inDefault Exposures ThreeMonthsorLongerOverdue Form ofSecuritization As ofMarch31 Total Capital Deduction 100% toLessthan350% 50% toLessthan100% 20% toLessthan50% Less than20% Total Other Residential Mortgage Total AmountofOriginalAssets Amount ofOriginalAssetsSynthetic-typeSecuritizationTransactions Amount ofOriginalAssetsAssetTransfer-typeSecuritizationTransactions Other Residential Mortgage Other Residential Mortgage Other Residential Mortgage Other Residential Mortgage default amount,currentlossandbreakdownbytypeoftheseprimaryoriginalassets 188,982 ¥ ¥— 2,629 ¥ ¥— Amount of Exposure Balance 186,299 2,682 2,629 2,629 — — — — — 2011 2011 Capital Amount Loss Amountin Current Term 12,596 ¥ ¥— ¥— ¥— Required 2,682 9,913 Millions ofYen Millions ofYen — — — — — — — 186,299 ¥ 186,299 ¥ 438,775 ¥ 438,775 ¥ Amount of Amount of 193,142 ¥ ¥— 1,800 ¥ ¥— Exposure Exposure Balance 438,775 190,459 2011 2011 2,682 1,800 1,800 Non-consolidated Millions ofYen Millions ofYen — — — — — — — — — — 2010 2010 Capital Amount Loss Amountin Current Term Amount of 506,175 ¥ 506,175 ¥ 14,151 ¥ ¥— 190,459 ¥ 190,459 ¥ ¥— ¥— Exposure Required 506,175 2010 2010 11,468 2,682 — — — — — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 325 — — 970 4,111 7,534 2,745 51,278 20,383 2010 2010 2010 ¥ 174,405 ¥ 90,126 ¥ 20,401 ¥— ¥ 2,745 ¥ 20,401 — — Millions of Yen Millions of Yen Millions of Yen 2,682 9,453 9,635 2,950 4,614 52,763 2011 2011 2011 ¥— ¥ 2,682 ¥ 15,298 ¥ 15,298 ¥ 157,475 ¥ 78,058 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel Capital Adequacy Ratio Notification by primary original asset type Adequacy Ratio Notification and breakdown by original asset type Adequacy Ratio Notification and breakdown N.A. N.A. N.A. N.A. Total First to Default Type Credit Linked Notes (CLN) Collateralized Loan Obligation (CLO) Securitization of Business (WBS) Asset-backed Securities of Monetary Receivables such as Installment Receivables (ABS) Residential Mortgage Backed Securities (RMBS) Multi-borrower Type Commercial-use Real Estate Backed Securities (MCMBS) Debt Collateral Certificate Using Credit Derivative (Synthetic CDO) As of March 31 Breakdown of Original Assets Other Total Residential Mortgage Other Total Residential Mortgage As of March 31 Type of Original Assets As of March 31 Type of Original Assets (1) Amount of securitization exposure held and breakdown by primary original asset type (1) Amount of securitization exposure held and breakdown by primary original Securitization Exposure in which CMTB is the Investor (10) Amount of credit risk-weighted assets calculated through application of Article 15 of the Supplementary Rules of assets calculated through application of Article 15 of the Supplementary Amount of credit risk-weighted (10) (9) Amount of profit/loss on sale recognized during the term accompanying securitization transactions and breakdown on sale recognized during the term accompanying securitization Amount of profit/loss (9) (8) Outline of exposure securitized in current term (8) Outline of exposure securitized in (7) Matters concerning securitization exposure with early redemption provisions (7) Matters concerning securitization exposure (6) Amount of securitization exposure to be deducted from capital pursuant to provisions of Article 247 of the Capital capital pursuant to provisions of exposure to be deducted from Amount of securitization (6) (5) Capital equivalent amount increased due to securitization transaction and breakdown by original asset type transaction and breakdown by original amount increased due to securitization (5) Capital equivalent 326 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Amount PostedontheNon-consolidatedBalanceSheetsandMarketValue Equity Exposures inBankAccounts (2) Balanceofsecuritizationexposureheldbyriskweightclassificationappropriatenumberandrequiredcapitalamount Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Note: Equityexposuresfordomesticandforeignstocksaredescribedintheabove. (4) Amount ofcreditrisk-weightedasset calculatedwithapplicationofArticle15theSupplementaryRulesCapital (3) Amount ofsecuritizationexposuredeductedfromcapitalpursuantto provisions ofArticle247theCapital Note: Requiredcapitalamount=(creditrisk-weightedassetx1.06)8% Classification As ofMarch31 Risk Weight As ofMarch31 Total Equity ExposuresOtherthanAbove Listed EquityExposures Breakdown ofOriginalAssets As ofMarch31 Total Capital Deduction 350% toLessthan1250% 100% toLessthan350% 50% toLessthan100% 20% toLessthan50% Less than20% Total Other Residential Mortgage N.A. Adequacy RatioNotification Adequacy RatioNotificationandbreakdownoforiginalassetsbytype Non-consolidated Amount Posted Balance Sheets 157,475 ¥ 665,913 ¥ 407,820 ¥ 87,250 ¥ Balance 258,093 on the 34,506 35,718 — — — 2011 2011 Capital Amount Market Value 407,820 ¥ 2,957 ¥ 518 ¥ Required 1,463 975 Millions ofYen Millions ofYen — — — Non-consolidated Amount Posted Balance Sheets ¥— ¥— 727,876 ¥ 464,844 ¥ 174,405 ¥ 92,530 ¥ Balance 263,032 2011 on the 28,553 48,959 4,111 Non-consolidated 249 Millions ofYen — — 2010 2010 Capital Amount Market Value 571 ¥ 464,844 ¥ 63 ¥ ¥— 3,594 ¥ Required 2010 1,210 1,368 348 63 95 — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 327 488 1,765 2010 2010 2010 2010 221,855 ¥ 488 ¥— ¥ 263,574 ¥ 485,430 ¥ 14,477 ¥ 12,712 ¥ 51,452 Millions of Yen Millions of Yen Millions of Yen Millions of Yen 482 Non-consolidated 10,385 2011 2011 2011 2011 226,118 ¥— ¥ 482 ¥ 247,051 ¥ 473,169 ¥ 9,258 ¥ (1,126) ¥ 20,255 cipal. alance sheets is used. non-consolidated balance sheets or the acquisi- ribed in the above. Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Chuo Mitsui Trust and Banking Company, Limited Company, and Banking Trust Mitsui Chuo Data: The Disclosure II Quantitative Basel tion cost is used. b As for the amount of equity exposures that is not classified into other securities, the amount posted on the non-consolidated Not Recognized on the Non-consolidated Statements of Income Not Recognized on the Non-consolidated N.A. N.A. Equity Exposures Other than Above Total Listed Equity Exposures As of March 31 Classification Amount of Appraisal Profit/Loss Recognized on the Non-consolidated Balance Sheets and Amount of Appraisal Profit/Loss Recognized Amortization Loss Total Profit/Loss on Sale Equity Exposures Other than Above Total Listed Equity Exposures As of March 31 As of March 31 Breakdown As of March 31 Classification Note: As for the amount of equity exposures classified into other securities, smaller amount of either the amount posted on the As for the amount of equity exposures classified into other securities, smaller amount Note: Amount of Equity Exposures Applicable to Article 13 (Transitional measure) of the Supplementary Rules of Amount of Equity Exposures Applicable Capital Adequacy Ratio Notification Amount Calculated into Tier II Capital Pursuant to Article 18, Paragraph 1 of the Capital Adequacy Amount Calculated into Tier II Capital Ratio Notification Amount of Appraisal Profit/Loss Not Recognized on the Non-consolidated Balance Sheets and Not Recognized on Recognized on the Non-consolidated Balance Sheets and Not Recognized Amount of Appraisal Profit/Loss Not the Non-consolidated Statements of Income Note: Appraisal profit/loss relating to other securities (domestic and foreign stocks) that fall under equity exposures is desc Note: Appraisal profit/loss relating to other securities (domestic Note: Profit/loss on stocks stated on the non-consolidated statements of income is described in the above. on the non-consolidated statements of income is Note: Profit/loss on stocks stated Note: Term-end balance is the amount based on accounting processing of trust account with an agreement on compensation for prin Note: Term-end balance is the amount based on accounting processing of trust account with an agreement on Equity Exposures in Trust Account with an Agreement on Compensation for Principal Account with an Agreement in Trust Equity Exposures Reference: Reference: Amount of Appraisal Profit/Loss Recognized on the Non-consolidated Balance Sheets and Not Recognized on the Balance Sheets and Not Profit/Loss Recognized on the Non-consolidated Amount of Appraisal Non-consolidated Statements of Income Amount of Profit/Loss Accompanying Sale and Write-Off of Equity Exposures Accompanying Sale and Write-Off Amount of Profit/Loss Term-end Balance in Trust Account with an Agreement on Compensation for Principal Term-end Balance in Trust Account with an Agreement on Compensation for 328 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Internal ManagementwithRegard toInterestInternal RateRiskinBankAccounts Interest RateShockUsedbyCMTBfor Variation AmountofProfit/Loss orEconomicValue from Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Calculationisdonebythesamemethod astheoutlierstandardprovidedin“GeneralSupervisionGuidelinesforMajor B Basel IIQuantitativeDisclosureData:TheChuoMitsuiTrustandBankingCompany,Limited Exposure RelatingtoFunds Capital AdequacyRatioNotificationinTrustAccountswithanAgreementonCompensationforPrincipal Amount ofEquityExposuresApplicabletoArticle13(TransitionalMeasure)theSupplementaryRules Compensation forPrincipal Amount ofProfit/LossAccompanyingSaleandWrite-OffEquityExposuresinTrustAccountswithanAgreementon *3. Exposure inwhichthecomposingassetsofFund,etc.arepredictablesinceoperationalstandardsdeterminedeve *2. ExposureinwhichequityexposuresmakesupamajorityoftheassetsbackingFund,etc. *1. Ininvestmenttrusts,funds,repackagedbonds,etc.(the“Fund,etc.”),theexposureinwhichrespectivebackedassets Note: Profit/lossonsaleandamortizationlossistheamountinaccordancewithaccountingprocessingoftrustaccountswi *4. ExposureinwhichtherespectiveassetsbackingupFund,etc.arenotobvious, anddoesnotfallunder1to3above. As ofMarch31 Variation AmountofProfit/LossorEconomicValuefromInterest RateShock Calculation Method As ofMarch31 Classification As ofMarch31 Breakdown As ofMarch31 Total Exposure ApplicabletoSimpleRiskWeightMethod* Exposure ApplicabletoInvestmentCriteriaFormula* Exposure ApplicabletoModifiedSimpleMajorityMethod* Exposure ApplicabletoLook-throughFormula* Total Equity ExposuresOtherthanAbove Listed EquityExposures Total Amortization Loss(-) Profit/Loss onSale Fund, etc.arenotobvious. Those Applicableto1250%RiskWeight Those Applicableto400%RiskWeight be applied:50%ofcurrentbalanceliquid deposit(ordinarydeposit,currentetc.) Interest rateshocktobeapplied:99percentile valueofinterestratevolatilitymeasuredwithretentionperiod1yearand 1 3 4 2 are obvious. th anagreementoncompensationforprincipal. observationperiodof5years.Coredeposit to anks.” n thoughtherespectiveassetsthatbackup 366,219 ¥ 482 ¥ ¥— ¥— ¥— 53,990 ¥ 353,702 ¥ 2011 2011 2011 2011 10,007 2,509 Non-consolidated Non-consolidated 482 Millions ofYen Millions ofYen Millions ofYen Millions ofYen — — — — 488 ¥ ¥— ¥— ¥— 64,801 ¥ 375,013 ¥ 361,617 ¥ 2010 2010 2010 2010 10,556 2,840 488 — — — — omrCu Mitsui Chuo Former iaca Summary/ Financial rs Group Trust omrCu Mitsui Chuo Former Basel II Quantitative Disclosure Data: Inc. Holdings, Trust
Chuo Mitsui Asset Trust and Banking Company, Limited (“CMAB”) Data/ Financial Non-consolidated Means of Capital Procurement 330 Credit Risk-Weighted Assets 330 akn opn,Limited Company, Banking
Operational Risks 330 and Trust Mitsui Chuo The
Capital Adequacy Ratio 331 Data/ Financial Capital Adequacy Levels 332 Credit Risks (except for securitization exposure) 333 Credit Risk Mitigation Measures 337 Risks of Transaction Partners in Derivative Products Transactions and hoMtu se rs and Trust Asset Mitsui Chuo Long-term Settlement Period Transactions 337 Limited Company, Banking
Securitization Exposure 337 Data/ Financial Equity Exposures in Bank Accounts 337 Variation Amount of Profit/Loss or Economic Value from Interest Rate Shock Used by CMAB for Internal Management with Regard to Interest Rate Risk in Bank Accounts 338 ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel omrCu Mitsui Chuo Former rs Group Trust ae IQatttv icoueData/ Disclosure Quantitative II Basel omrCu Mitsui Chuo Former rs odns Inc. Holdings, Trust akn opn,Limited Company, Banking h hoMtu rs and Trust Mitsui Chuo The ae IQatttv icoueData/ Disclosure Quantitative II Basel ae IQatttv icoueData/ Disclosure Quantitative II Basel hoMtu se rs and Trust Asset Mitsui Chuo akn opn,Limited Company, Banking
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 329 330 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report thestandardisedapproach • Methodusedincalculationofoperationalriskequivalents: Operational Risks 2. Ratingagencytobeused: 1. Methodtobeused: Credit Risk-Weighted Assets Common stock Means ofCapitalProcurement Chuo MitsuiAssetTrust andBankingCompany, Limited Basel IIQuantitativeDisclosureData: weight toall. However, forcorporateexposures,etc.,weapply100%risk Rating andInvestmentInformation,Inc. the standardisedapproach Non-consolidated Non-consolidated Non-consolidated Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 331 — — — — — — — — — — — — — — — — — — — — — — 7,500 21,246 10,507 35,253 35,253 31,327 31,327 88,498 2010 29.42% 29.42% ¥ 11,000 ¥ 119,826 — — — — — — — — — — — — — — — — — — — — — — Millions of Yen Non-consolidated 9,650 6,600 21,246 35,296 35,296 30,380 30,380 81,881 2011 31.44% 31.44% ¥ 11,000 ¥ 112,262 eas SPCs) ., that has the probability of redemption, includ- fication, and which have all the characteristics as ation No. 19 of 2006 (the “Capital Adequacy Ratio aragraph 1, Item 1 of the Capital Adequacy Ratio d-term subordinated bonds, there is a limitation to (B) 2 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 4 Basel II Quantitative Disclosure Data: Chuo Mitsui Asset Trust and Banking Company, Limited Company, Banking and Trust Asset Mitsui Data: Chuo Disclosure II Quantitative Basel 3 (D) 5 Asset (On-balance sheet) Items Off-balance Sheet Transaction Items Perpetual Subordinated Bonds of Above* Preferred Stock of Above* Fixed-term Subordinated Bonds and Fixed-term Non-dilutive Preferred Securities with Step-up Interest Rate Provisions of Above* Non-dilutive Preferred Securities with Step-up Book Value Just before Revaluation Non-cumulative Perpetual Preferred Stock of Above Non-cumulative Perpetual Amount Arrived at by Dividing Operational Risk Equivalents by 8% Total (F) (A)/(F) x 100 (B)/(A) x 100 Credit Risk-Weighted Asset Amount General Reserve for Possible Loan Losses Liability Type Fundraising Means, etc. (-) Amount not Calculated into Tier II Capital Total Tier II capital (C) Intangible Fixed Asset Equivalent Posted by Corporate Consolidation (-) Intangible Fixed Asset Equivalent Posted to Securitization Transactions (-) Amount Equivalent to Capital Increase Due Total Tier I Capital (A) Land Revaluation Amount and Amount Equivalent to 45% of Difference Between Other Retained Earnings Treasury Stock (-) Treasury Stock Application Margin (-) Projected Amount of Distributed Income Evaluation Loss on Other Securities (-) Stock Acquisition Rights Trade Rights Equivalent Amount (-) Capital stock Margin New Stock Application Capital Reserve Other Capital Surplus Retained Earnings (1) Unsecured, subordinated to other liabilities, and already paid, (2) Not to be redeemed, except for in certain cases, (3) Should supplement loss while business is ongoing, (4) That for which interest payment obligation postponement is allowed. those with redemption periods exceeding 5 years from the agreement. Notification, and the amount that is to be deducted pursuant to the provisions of Items 2 and 5 thereof. indicated below: Notification”) and No. 79 of 2008. by overs ing those adding a step-up interest rate or other special provisions (including preferred investment securities issued Non-consolidated Capital Adequacy Ratio (Domestic standard) = (E)/(F) x 100 For Reference: Risk-Weighted Assets, etc. Items for Deduction* Capital Amount (E) = (A) + (C) - (D) Tier II capital Tier I capital As of March 31 Item *4. These are indicated in Article 41, Paragraph 1, Items 4 and 5 of the Capital Adequacy Ratio Notification. However, for fixe *4. *5. Amount equivalent to intentional holding of fundraising means of other financial institutions as indicated in Article 43, P Amount equivalent to intentional holding of fundraising means of other financial institutions as indicated in Article 43, *5. *3. Meaning liability type fundraising means as indicated in Article 41, Paragraph 1, Item 3 of the Capital Adequacy Ratio Noti *3. *2. Meaning those as provided in Article 40, Paragraph 2 of the Capital Adequacy Ratio Notification, in other words, stock, etc Meaning those as provided in Article 40, Paragraph 2 of the Capital Adequacy Ratio Notification, *2. *1. Composition of capital and capital adequacy ratio, etc. are calculated in accordance with Financial Services Agency Notific Composition of capital and capital adequacy ratio, etc. are *1. Composition of Capital (Non-consolidated Capital Adequacy Ratio (Domestic Standard)) (Non-consolidated Capital Adequacy Composition of Capital Capital Adequacy Ratio Capital Adequacy 332 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Required CapitalAmount Capital AdequacyLevels Note: Calculation methodofrequiredcapitalamountforcreditriskisasfollows: (1) Requiredcapitalamountforcreditrisks * (Amountofcreditrisk-weightedasset+operationalriskequivalents/8%)x4% Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:ChuoMitsuiAssetTrustandBankingCompany,Limited (3) Totalamountofnon-consolidatedrequiredcapital (2) Requiredcapitalamountforoperationalrisks Classification As ofMarch31 Total Securitization Exposure Portfolio ApplicabletotheStandardisedApproach Classification As ofMarch31 Classification As ofMarch31 Total AmountofNon-consolidatedRequiredCapital* Total Standardised Approach Other Investment For Corporations For FinancialInstitutionsandSecuritiesCompanies Amount ofcreditrisk-weightedassetx4%+capitaldeductionamount 1,215 ¥ 1,215 ¥ 4,490 ¥ 3,275 ¥ 3,275 ¥ 2011 2011 2011 Non-consolidated 734 399 73 — Millions ofYen Millions ofYen Millions ofYen 8 1,253 ¥ 1,253 ¥ 4,793 ¥ 3,539 ¥ 3,539 ¥ 2010 2010 2010 769 397 77 — 8 Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 333 — — — — 31,888 88,968 30,525 88,968 40,886 2010 ¥ 151,381 ¥ 151,381 ¥ 33,522 ¥ 163,377 of Exposure During the Term Average Balance — — — — Millions of Yen Non-consolidated 88,968 30,525 46,091 88,969 29,457 2010 2011 olidated balance sheets, olidated balance sheets, ¥ 31,888 ¥ 151,381 ¥ 164,517 ¥ 164,517 Millions of Yen ed tax assets, etc.) are not included in above. ed tax assets, etc.) are not included in above. 88,969 29,457 2011 ¥ 46,091 ¥ 164,517 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Chuo Mitsui Asset Trust and Banking Company, Limited Company, Banking and Trust Asset Mitsui Data: Chuo Disclosure II Quantitative Basel (1) On-balance sheet transactions: amount gained by deducting valuation gains on other securities amount posted on the non-cons (1) On-balance sheet transactions: amount gained by deducting (2) Off-balance sheet transactions: credit equivalents. (2) Off-balance sheet transactions: credit equivalents. (1) On-balance sheet transactions: amount gained by deducting valuation gains on other securities amount posted on the non-cons (1) On-balance sheet transactions: amount gained by deducting 2. Assets that fall under Article 77 of the Capital Adequacy Ratio Notification (prepaid pension expenses, fixed assets, deferr Assets 2. 2. Assets that fall under Article 77 of the Capital Adequacy Ratio Notification (prepaid pension expenses, fixed assets, deferr Assets 2. average value for respective quarterly term-end balances. 3. The average balance of exposure during the term is the Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Total Overseas Domestic Securities Off-balance Sheet Transactions Total Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call As of March 31 Classification Classification As of March 31 (1) Term-end balance of exposure by region and breakdown by primary types (1) Term-end balance of exposure by region Notes: 1. The following values are used for above term-end balance: Notes: 1. The following values are used for above term-end balance: Term-end Balance of Exposure Relevant to Credit Risks and Breakdown by Primary Types of Exposure Relevant to Credit Risks Term-end Balance Credit Risks (except for securitization exposure) Risks (except Credit 334 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.Thefollowingvalues areusedforaboveterm-endbalance: Notes: Basel IIQuantitativeDisclosureData:ChuoMitsuiAssetTrustandBankingCompany,Limited (2) Term-endbalanceofexposurebybusinesstypeandbreakdownprimary Business Type As ofMarch31 Total Special InternationalFinancialTransactionAccountPortion Other Individual Business Corporation Financial Institutions Sovereign Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Other Local PublicOrganizations Central GovernmentandBank 2. AssetsthatfallunderArticle77oftheCapitalAdequacyRatioNotification(prepaid pensionexpenses,fixedassets,deferr Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities (2) Off-balancesheettransactions:creditequivalents (1) On-balancesheettransactions:amountgainedbydeductingvaluationgainson othersecuritiesamountpostedonthenon-cons ed taxassets,etc.)arenotincludedinabove. 164,517 ¥ 145,402 ¥ olidated balancesheets, 144,941 2011 28,995 88,969 26,976 9,975 9,975 9,139 9,139 461 461 Millions ofYen — — — — — — — — — — — — — — — — — — — — — — 151,381 ¥ 131,801 ¥ 131,268 2010 29,992 88,968 12,307 9,945 9,945 9,635 9,635 532 532 — — — — — — — — — — — — — — — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 335 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 72 72 330 330 910 910 8,631 8,631 2010 ¥— ¥ 9,945 1 1 Millions of Yen — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 69 69 309 309 924 924 8,670 8,670 2011 ¥ 9,975 ¥— olidated balance sheets, ed tax assets, etc.) are not included in above. Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: Chuo Mitsui Asset Trust and Banking Company, Limited Company, Banking and Trust Asset Mitsui Data: Chuo Disclosure II Quantitative Basel (1) On-balance sheet transactions: amount gained by deducting valuation gains on other securities amount posted on the non-cons (1) On-balance sheet transactions: amount gained by deducting valuation gains on other securities amount posted (2) Off-balance sheet transactions: credit equivalents 2. Assets that fall under Article 77 of the Capital Adequacy Ratio Notification (prepaid pension expenses, fixed assets, deferr 2. Assets that fall under Article 77 of the Capital Adequacy Ratio Notification (prepaid pension expenses, fixed assets, Securities Off-balance Sheet Transactions Total Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Dheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Dheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Dheet Transactions Off-balance Sheet Transactions Deposits, etc. Loaned Money, Call Loans, Securities Off-balance Sheet Transactions Loaned Money, Call Loans, Deposits, etc. Securities Off-balance Dheet Transactions Loaned Money, Call Loans, Deposits, etc. Loaned Money, Call Loans, Securities Other Various Services Real Estate Finance and Insurance Wholesale and Retail Transportation Information Communications Electricity, Gas, Heating, Water Construction Mining Industry Fishery Forestry Agriculture Manufacturing As of March 31 Business Type Reference: Term-end balance of exposure by business type relevant to business corporations and breakdown by primary type relevant to business corporations and breakdown balance of exposure by business type Reference: Term-end Notes: 1. The following values are used for above term-end balance: 336 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Amount ofLoanAmortized by BusinessType Balance ofRespectiveReserveforPossibleLoanLosses by BusinessType Reserve forPossibleLoanLosses,andSpecifiedOverseas ReceivablesReserveAccount Term-end BalanceandAmountofVarianceduringtheTerm ofGeneralReserveforPossibleLoanLosses,Respective Term-end BalanceofExposureThreeMonthsorLonger OverdueandBreakdownbyPrimaryType 1.Thefollowingvaluesareusedforaboveterm-endbalance: Notes: Basel IIQuantitativeDisclosureData:ChuoMitsuiAssetTrustandBankingCompany,Limited (3) Term-endbalanceofexposurebyremainingperiodandbreakdownprimarytype Remaining Period As ofMarch31 Total With noProvisionforPeriod Over 7Years Over 5Yearsto7orShorter Over 3Yearsto5orShorter Over 1Yearto3YearsorShorter 1 YearorShorter N.A. N.A. N.A. N.A. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. Off-balance SheetTransactions Securities Loaned Money,CallLoans,Deposits,etc. 2. AssetsthatfallunderArticle77oftheCapitalAdequacyRatioNotification(prepaidpensionexpenses,fixedassets,deferr (2) Off-balancesheettransactions:creditequivalents. (1) On-balancesheettransactions:amountgainedbydeductingvaluationgainsonothersecuritiespostedthenon-cons ed taxassets,etc.)arenotincludedinabove. 164,517 ¥ 162,929 ¥ olidated balancesheets, 2011 28,995 88,969 44,964 1,058 1,058 461 461 Millions ofYen 68 68 — — — — — — — — — — — — — — 149,734 ¥ 151,381 ¥ 2010 29,992 88,968 30,773 1,046 1,046 532 532 68 68 — — — — — — — — — — — — — — Financial Summary/ Financial Data/ Financial Data/ Financial Data/ Basel II Qualitative Disclosure Data/Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/ Former Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust andFormer Chuo Mitsui Former Chuo Mitsui The Chuo Mitsui Trust and Chuo Mitsui Asset Trust and Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited Trust Group Trust Holdings, Inc. Banking Company, Limited Banking Company, Limited 337 — — — — 9,635 9,945 ¥— ¥ 131,801 ¥ 151,381 Rating Not Applicable* Market Value 2010 — — — — — — Non-consolidated Non-consolidated Non-consolidated Non-consolidated 216 216 2010 on the ¥— ¥— ¥— Rating Applicable Balance Sheets Amount Posted Non-consolidated icable” column. — — — — Millions of Yen sure oriented to corporations, etc., so risk weight 9,635 9,945 ¥— ¥ 131,801 ¥ 151,381 Market Value 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — — Millions of Yen 9,139 9,975 216 216 on the ¥— Rating Not ¥ 145,402 ¥ 164,517 Applicable* Balance Sheets Amount Posted Non-consolidated — — — — — — 2011 Basel II Quantitative Disclosure Data: Chuo Mitsui Asset Trust and Banking Company, Limited Company, Banking and Trust Asset Mitsui Data: Chuo Disclosure II Quantitative Basel ¥— ¥— Rating Applicable — — — — 9,139 9,975 ¥ 145,402 ¥ 164,517 N.A. N.A. N.A. is uniformly 100%. Therefore, the exposures applicable to the relevant special exceptions are described in the “Rating Not Appl is uniformly 100%. Therefore, the exposures applicable Listed Equity Exposures Equity Exposures Other than Above Total Capital Deduction Total Over 35% to 75% Over 75% to 100% Over 100% to 150% 0% Over 0% to 10% Over 10% to 35% Classification As of March 31 Risk Weight As of March 31 Amount Posted on the Non-consolidated Balance Sheets and Market Value Equity Exposures in Bank Accounts Equity Exposures Securitization Exposure Risks of Transaction Partners in Derivative Products Transactions and Transactions Derivative Products Partners in Risks of Transaction Long-term Settlement Period Transactions Credit Risk Mitigation Measures Risk Mitigation Credit * CMAB has registered for application of special exceptions in Article 67 of the Capital Adequacy Ratio Notification as to expo CMAB has registered for application of special exceptions in Article 67 of the Capital Adequacy Ratio Notification * Balance by Risk Weight Classification for Exposure Applicable to the Standardised Approach Classification for Exposure Applicable Balance by Risk Weight 338 Basel II Quantitative DisclosureBasel Data/ II Quantitative DisclosureBasel Data/ II Quantitative Disclosure Data/Basel II Qualitative Disclosure Data/ Financial Data/ Financial Data/ Financial Data/ Financial Summary/ Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Chuo Mitsui Asset Trust andThe Chuo Mitsui Trust and Former Chuo Mitsui Former Chuo Mitsui Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Banking Company, LimitedBanking Company, Limited Trust Holdings, Inc. Trust Group Internal ManagementwithRegard toInterestInternal RateRisk in BankAccounts Interest RateShockUsedbyCMABfor Variation AmountofProfit/Loss orEconomicValue from Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Sincethea Ratio Notification Amount CalculatedintoTierIICapitalPursuanttoArticle18,Paragraph1oftheAdequacy the Non-consolodatedStatementsofIncome Amount ofAppraisalProfit/LossNotRecognizedontheNon-consolodatedBalanceSheetsand the Non-consolodatedStatementsofIncome Amount ofAppraisalProfit/LossRecognizedontheNon-consolodatedBalanceSheetsandNot Amount ofProfit/LossAccompanyingSaleandWrite-OffEquityExposures Basel IIQuantitativeDisclosureData:ChuoMitsuiAssetTrustandBankingCompany,Limited As ofMarch31 Variation AmountofProfit/lossorEconomicValuefromInterestRateShock N.A. N.A. N.A. N.A. Interest rateshocktobeapplied:99percentilevalueofinterestvolatilitymeasuredwithretentionperiod1yearand not performed.Forreferencevalues,valuescalculatedinaccordancewiththeoutlierstandardprovided“GeneralSupervision ssets tobesubjectmanagementareveryfew,thesemanagedinasingleunitasriskinternalmanagem ent, andmanagementlimitedtointerestrateriskis observationperiodof5years. GuidelinesforMajorBanks”isindicated. ¥ 100 2011 Non-consolidated Millions ofYen ¥ 108 2010 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 339 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Non-consolidated Statements of Income (Unaudited)Non-consolidated Statements of Income in Net Assets (Unaudited)Non-consolidated Statements of Changes (Unaudited)Notes to Non-consolidated Financial Statements Supplementary Financial Information 434 432 437 438 Consolidated Statements of IncomeConsolidated Statements IncomeConsolidated Statements of Comprehensive in Net Assets Consolidated Statements of Changes Consolidated Statements of Cash Flows Notes to Consolidated Financial StatementsIndependent Auditors’ ReportStatements of Trust Account (Unaudited)(Unaudited)Notes to Statements of Trust Account Non-consolidated Balance Sheets (Unaudited) 355 356 354 358 360 428 427 430 426 Features of Trust Banks’ Financial StatementsFeatures of Trust Banks’ and AnalysisManagement’s Discussion Five-Year Summary SheetsConsolidated Balance 340 343 350 353 Financial Summary: Financial Data: 340 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ed manner.Asacaseinpoint,STB’sdatafortheloan- the defaultrisksofthreemajoraccountsinanintegrat- losses, conductsassetliabilitymanagement,andcontrols as partofthebankingbusiness.STBmanagesprofitsand JOMTs asthe“ThreeMajorAccounts”andmanagesthem though, referstothebankingaccount,loantrusts,and Sumitomo TrustandBankingCo.,Ltd.(hereinafter“STB”), istrated separatelyfromthebankingaccount.The banking accountiscountedasrisk-weightedassets. minus theloanamountlentfromtrustaccountsto of thesumbankingaccount,loantrustsandJOMTs ital adequacyratio.Atpresent,thetotalprincipalamount risk-weighted assetsforthepurposeofcalculatingcap- principal-guaranteed contractsareincludedinthebanks’ the principal-guaranteedcontracts,thesetrustssubjectto the bankingaccountbearscontingentliabilitybyvirtueof and coveredbydepositinsurance.Fromtheviewpointthat to principal-guaranteedcontractsprovidedbytrustbanks operated moneytrusts(hereinafter“JOMTs”)aresubject whereas thatforthetrustaccountisuniquetobanks. account issimilartothatofordinarycommercialbanks, trust agreementsornot.Thebalancesheetforthebanking classified bywhetherbusinessesareconductedbasedon the trustaccount(StatementsofTrustAccount).Theyare ance sheets:oneforthebankingaccountandother Features ofTrustBanks’BalanceSheets Features ofTrust Banks’FinancialStatements Financial Summary: The thoseloantrustsandJOMTsarebookedadmin- Among varioustrustaccounts,loantrustsandjointly- Financial statementsoftrustbanksconsisttwobal- Three MajorAccounts Stock Transfer AgencyServices(#) Real EstateServices(*) SecuritiesTrusts InvestmentTrusts Tokkins (Specified MoneyTrusts) (without discretion) DesignatedMoneyTrusts (“Shitei-tan”) PensionTrusts (with discretion) Trust Accounts Banking Account JOMTs Loan Trusts bankingaccount. (#) Income from stocktransferagencyservices isrecorded inthe brokerage isrecorded inthebankingaccount. are recorded inthetrustaccount.Incomefrom real estate (*) Incomefrom LandTrusts andRealEstate ManagementTrusts Trust and Property Management Trust Accounts included inthe direct write-offstoindividualloansorotherclaims. forming claimsofloantrustsandJOMTsaredisposedby balance ofloansandotherclaims.Forreference,non-per- account forJOMTsissetasideattherateof0.23% 0.5% ofthetotalprincipalamountloantrusts.Thereserve and nomorethan4.0%ofloantrustfeesuntilitamountsto rently requiredtosetasideforthereserve,nolessthan2.5% Trust Act.InaccordancewiththeAct,trustbanksarecur- The reserveaccountforloantrustsisstipulatedintheLoan losses calledreserveforpossibleimpairmentofprincipal. for loantrustsandJOMTs. and JOMTs.Separatebalancesheetsarealsodisclosed disclose balancesofalltrustaccountsincludingloantrusts ties trusts,andothers).Thestatementsoftrustaccount investment trusts,tokkins(specifiedmoneytrusts),securi- over theinvestmentsandactsasacustodian(including others), andthoseinwhichtheydonothavediscretion (including pensiontrusts,designatedmoneyand in whichtrustbankshavediscretionovertheinvestments speaking, therearetwotypesoffiduciaryaccounts:those gains andlossesareattributedtobeneficiaries.Broadly Accounts” sincetheirprincipalsarenotguaranteedandall loan trustsandJOMTsarereferredtoas“Fiduciary the bankingaccount,loantrusts,andJOMTs. culated throughtheaggregationofassetsandliabilitiesin deposit marginona“ThreeMajorAccount”basisarecal- Loan trustsandJOMTshavereserveaccountsforpossible On theotherhand,varioustrustaccountsthan Banking Business Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 341 ocks and other securities,” and “Other non-recurring prof- uded in “Net income from affiliates by equity method.” Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary: Features of Trust Banks’ Financial Statements Financial Trust Banks’ of Features Summary: Financial (Land trusts and real estate management trusts) (Investment trusts, tokkins and others) (Corporate and public pensions) • Real estate services • Securities custody with trust contract services • Pension asset management Fees from transfer agency services Fees from real estate brokerage Trust fees from loan trusts and JOMTs Other trust fees Fees from securities custody services, other than trust contract and others Fees from banking business (investment trust sales, indi- vidual insurance sales, foreign exchange, securitization, and others) * Fees and Commissions the banking account, and loans to banking account, posted the banking account, the trust account. Assets for loan trusts on the asset side of balance sheets includes loans and bills and JOMTs on the and others. Others accounts mainly discounted, securities, banking account. consists of loans to * Trust Fees
General and Administrative Expenses (excluding Non-recurring expenses) (excluding Non-recurring General and Administrative Expenses Income Taxes-Current Income Taxes-Deferred Gross Profit Gross Cost Credit before Business Profit Gross Cost Credit before Net Business Profit Profit Ordinary Income Taxes Income (Loss) before Net Income (Loss) Trust Account Credit Costs Account Credit Trust Net Non-recurring (Loss) Profit (Loss) Profit Extraordinary Net Trust Fees (after credit costs for Loan Trusts and JOMTs) and JOMTs) costs for Loan Trusts (after credit Fees Trust Net Income +Net Interest +Net Fees and Commissions Income +Net Trading +Other + – + + – – Among the various accounts on the income statement Main items comprising the income statement of the trust bank are as shown below: the income statement of the trust Main items comprising Balance sheets of trust banks include accounts for inter- Balance sheets of trust Structure of Trust Banks’ Earnings—Trust Fees vs. Other Fees & Commissions it” which are related to investment in securities of domestic and international credit, and affiliates’ total credit costs incl it” which are related to investment in securities of domestic In addition to the above, “Total substantial credit costs” is a sum of “Total credit costs,” costs in “Net gains on sales of st In addition to the above, “Total substantial credit costs” Features of Income Statements of Trust Bank Features of Income of the trust bank, trust fees and fees and commissions require special mention. For the purpose of financial state- ments, fees and commissions earned based on trust agreements are booked as trust fees and those earned without trust agreements are booked as fees and commis- sions. Trust fees include trust fees from loan trusts and JOMTs and other trust fees derived from various trust businesses such as pension and institutional asset man- agement, securities processing services (investment trusts and tokkins), and real estate services (land trusts and real estate management trusts). Fees and commissions are those derived from businesses such as custody services, stock transfer agency services, and real estate brokerage services, as well as banking businesses such as guarantee, foreign exchange, and securitization. nal transactions between the banking account and the trust nal transactions between noted as the borrowed money from account. These are banking account’s borrowing from trust account (i.e. the which is posted on the liability side of the trust accounts), 342 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. attributes inordertocomeupwithfiguresbyeachbusiness accounting, mustbereallocatedtoeachbusinessbasedonclient as eithertrustfeesorandcommissionsintermsoffinancial among businesses.Itshouldbenotedthatfeeincome,recorded one shouldparticularlynotethefollowingreallocationsofincome business, STBalsoprovidesfiguresbasedonmanagerialaccounting. each business.Forthepurposeofmanagingprofitabilityby trust banksisnot,however,designedtoshowtheearningstatusof Financial accountingforpurposesofpreparingfinancialstatements “Fiduciary ServicesBusiness,”and“GlobalMarketsBusiness.” “Specialized DepartmentsandUnits”comprisedoftwobusinesses: Services Business,”and“RealEstateBusiness.”Theotheristhe businesses: “RetailFinancialServicesBusiness,”“Wholesale “Wholesale andRetailClientServicesGroup”comprisedofthree Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ored tofindmorebusiness andprofitopportunitiesthroughcross-divisional businessdevelopment. departments affiliatedwiththe“RetailFinancial ServicesBusiness”andthe“WholesaleFinancialBusiness,”as“Cross As ofApril2011,STBhasdesignatedcertain businessareas(businessforhighnet-worthindividuals,investmentproductsales, Managerial AccountingforTrustBanks Financial Summary:FeaturesofTrustBanks’Statements To reconcilefinancialaccountingandmanagerialaccounting, As ofJune30,2011,STBconsiststwogroups.Oneisthe Managerial Accounting Specialized DepartmentsandUnits Wholesale andRetailClientServicesGroup Wholesale FinancialServicesBusiness Retail FinancialServicesBusiness Fiduciary ServicesBusiness Real EstateBusiness Global MarketsBusiness Securities Processing Services Pension AssetManagement Stock Transfer Agency Trust feesfrom LoantrustsandJOMTs Fees from Pensionassetmanagement Trust feesfrom Testamentary trusts Securities processing service fees (corporate andpublicpensions) Real estatemanagementtrusts (including “OtherTrust Fees”) Trust feesfrom Landtrusts, Trust Fees Fees from Securitizationoffinancialassets Fees from Securitizationofreal estate bined andreallocatedtotheRealEstateBusiness. commissions andothertrustfeesinfinancialaccounting—arecom- purpose ofsecuritization)—recordedseparatelyunderfeesand those fromlandtrustsandrealestatemanagement(forthe Fiduciary ServicesBusiness.Feesfromrealestatebrokerageand Management” and“SecuritiesProcessingServices”tothe accounting—are reallocated,respectively,to“PensionAsset both ofwhicharerecordedunderothertrustfeesinfinancial public pensions)andthosefromsecuritiesprocessingservices— Business. Feesfrompensionassetmanagement(corporateand Financial ServicesBusinessaswelltotheGlobalMarkets Foreign exchangecommissionsarereallocatedtotheWholesale assets arereallocatedtotheWholesaleFinancialServicesBusiness. Services Business.Similarly,feesfromthesecuritizationoffinancial ed totheWholesaleFinancialServicesBusinessandRetail terms ofmanagerialaccounting. For example,trustfeesfromloantrustsandJOMTsareallocat- Financial Accounting Sales commissionofinvestmenttrust Stock transferagencyservicefees -Client ServicesBusiness”andthushasendeav- Fees from Realestatebrokerage Foreign exchangecommissions Foreign exchangecommissions workplacechannelsandothers)conducted by Sales commissionofinsurance Fees andCommissions Loan commitmentfees (in thebankingaccount) Remittance fees Guarantee fees Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 343 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Consolidated ordinary profit decreased by ¥47.3 billion Consolidated ordinary from the pre- Total credit costs increased by ¥27.5 billion For the “Retail Financial Services Business,” gross busi- For the “Wholesale Financial Services Business,” gross For the “Real Estate Business,” gross business profit Ordinary Profit and Net Income Ordinary Profit and year to ¥100.7 billion. However, con- from the previous fiscal increased by ¥30.3 billion from the solidated net income to ¥83.5 billion mainly by the tax effect previous fiscal year of previously unrecognized primarily the recognition resulting from the business reorganiza- deferred tax assets during the second quarter of the fiscal tion of subsidiaries year ended March 31, 2011. Total Substantial Credit Costs result of additional vious fiscal year to ¥28.8 billion, as a group companies, allowance for loan losses including estimating the which were posted after conservatively Earthquake in the effects caused by the Great East Japan March 31, 2011, in fourth quarter of the fiscal year ended on a non-consolidat- addition to the posting of credit costs credit costs, which ed basis. Consolidated total substantial method investees comprise total costs, share of equity domestic and over- results and losses arising from sales of billion from the seas credit securities, increased by ¥32.2 due to the fur- previous fiscal year to ¥36.5 billion, mainly securities. ther disposition of overseas asset-backed Operation by Business ness profit decreased by ¥2.5 billion from the previous fis- cal year to ¥72.8 billion due to a decline in net interest income attributable to decreased deposit spreads result- ing from lower market interest rates. The decline in gross business profit was partially offset by higher investment trust and insurance sales related profit for the fiscal year ended March 31, 2011. business profit decreased by ¥18.7 billion from the previous fiscal year to ¥92.6 billion due to decreased deposit spreads resulting from lower market interest rates, and a lower aver- age loan balance, in addition to the disappearance of a one-time gain on ¥12.7 billion arising from sales of overseas credit securities. increased by ¥4.1 billion from the previous fiscal year to ¥14.7 billion due to growth in real estate brokerage transactions.
While profit of group companies increased, in addition During the current fiscal year, Japanese economy bene- During the current trend from The Nikkei 225 showed a continual upward ended March During the second half of the fiscal year Overseas, fiscal instability in some European countries to the full-year contribution of Nikko Asset Management Co., Ltd. (hereinafter “Nikko AM”) which became a sub- sidiary in the second half of the fiscal year ended March 31, 2010, consolidated net business profit before credit costs decreased by ¥23.6 billion from the previous fiscal year to ¥174.2 billion, mainly due to the decrease in non- consolidated net business profit before credit costs. Business Performance Net Business Profit before Credit Costs fitted from overseas economic expansion in the second fitted from overseas production picked up, as the half. Exports and industrial steadily moved toward recovery. sluggish economy East Japan Earthquake on March 11 However, the Great for parts and materials, and dam- interrupted supply chains resulted in age to electric power generation facilities This created power shortages in metropolitan Tokyo. economy. strong downward pressure on the Japanese then fell in reaction the middle of the period onward, but the ¥10,000 level to the earthquake, and dipped below in October 2010, the toward the end of the fiscal year. Also, Monetary Bank of Japan adopted a “Comprehensive zero interest Easing” policy, with the pillars of a virtually purchase of a diver- rate policy over the long term and the further strength- sified portfolio of assets. This policy was ened in March, when the earthquake occurred. yen continued in the 31, 2011, the trend toward a stronger record high against currency market, and the yen rate hit a However, the dollar immediately after the earthquake. countries halted coordinated intervention by industrialized the yen’s rise. persisted, but fiscal and monetary policies in the U.S. played a role in helping strengthen the economy’s recovery trend. In emerging nations, strong domestic demand coupled with foreign capital inflows was causing their economies to over- heat. Emerging nations adopted restrictive financial policies, which included boosting their policy interest rates. Overview of the Fiscal Year ended March 31, 2011 Overview of the Fiscal Environment Financial and Economic Financial Summary: Financial and Analysis Discussion Management’s 344 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. (*) Excludingnon-recurringexpenses Operating Results(Consolidated) exchange rateprevailingasofMarch31,2011. set byalossesandgainsonsalesofbonds. eign exchangetransactions.Thisincreasewaspartiallyoff- fiscal year,mainlyduetoanincreaseinnetgainsonfor- expenses) sawanincreaseof¥1.0billionfromtheprevious to ¥11.4billiondueadecreaseintradingincome. bution ofNikkoAMwhichwasacquiredinOctober,2009. trusts andinsuranceproducts,aswellthefull-yearcontri- age feesforrealestatebusiness,salesfrominvestment year-on-year to¥113.1billion,duetheincreaseinbroker- interest rates. decrease inloan-depositmarginduetolowermarket year to¥152.0billionmainlycausedprimarilybya Analysis ofProfit/Loss substitutional portionofemployees’pensionfund. tion ofinvestmenttruststolockinagainonreturnthe ¥55.2 billionmainlyduetoalossonclosinghedgeposi- decreased by¥22.6billionfromthepreviousfiscalyearto Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Summary:Management’sDiscussionandAnalysis Years EndedMarch31 Net BusinessProfitbeforeCredit Costs Net Income Income beforeTaxes Net ofOtherIncomeandExpenses General andAdministrativeExpenses(*) Net OtherOrdinaryIncomeandExpenses(*) Net TradingIncome Net FeesandCommissions Net InterestIncome Net TrustFees The figuresinU.S.dollarsareconvertedfromyen-baseforconvenienceattherateof¥83.15to$1.00, the Net otherordinaryincome(excludingnon-recurring Net tradingincomedecreasedby¥4.1billionyear-on-year Net feesandcommissionsincreasedby¥21.6billion Net interestincomedecreasedby¥30.8billionyear-on- For the“GlobalMarketBusiness,”grossbusinessprofit risk-weighted assets. same periodduetothedeclineinamountofcredit risk-weighted assetsdecreasedby¥803.3billionoverthe year duetotheaccumulationofretainedearnings,and increased by¥103.5billionfromtheendofpreviousfiscal respectively. Thisisbecausetotalqualifyingcapital the endofpreviousfiscalyearto15.63%and11.09%, ed TierIcapitalratioimprovedby1.78%and1.23%from Consolidated BISCapitalAdequacyRatio ¥23.6 billionyear-on-year. ed actualbusinessprofit,was¥174.2billion,adecreaseof consolidation ofNikkoAM. billion to¥216.1mainlyduetheeffectoffull-year es (excludingnon-recurringexpenses)increasedby¥10.8 year endedMarch31,2011. decreased by¥14.5billionto¥382.6inthefiscal Consolidated BIScapitaladequacyratioandconsolidat- Net businessprofitbeforecreditcosts,whichrepresent- On theotherhand,generalandadministrativeexpens- As aresultoftheaforementionedfigures,grossprofit 174,233 ¥ 83,509 ¥ 50,906 ¥ 105,974 216,187 113,131 152,045 (60,443) 2011 55,035 11,487 Millions ofYen 197,888 ¥ 53,180 ¥ 53,062 ¥ 133,157 205,333 182,892 (58,614) 2010 54,023 15,672 91,455 (23,654) ¥ 30,329 ¥ (2,155) ¥ Changes (27,182) (30,846) 10,853 21,675 (1,828) (4,185) 1,012 U.S. Dollars Millions of 2,095 $ 1,004 $ 612 $ 2011 1,275 2,600 1,361 1,829 (727) 662 138 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 345 0 9 — 47 26 87 83 11 33 565 733 695 140 125 1,912 2011 2011 $ 612 $— $ 2,841 $ 1,013 $ 1,829 Millions of Millions of U.S. Dollars U.S. Dollars 1 — 674 460 (520) (732) (131) (120) 1,939 (1,635) (9,546) (1,680) (19,229) (19,035) (15,106) Changes Changes ¥ (2,155) ¥— ¥ (46,676) ¥ (30,846) ¥ (15,829) 3 — 891 5,577 1,480 6,451 2,559 8,424 2,874 47,484 79,972 16,793 72,857 12,412 2010 2010 178,217 ¥— ¥ 53,062 ¥ 100,023 ¥ 282,915 ¥ 182,892 Financial Summary: Management’s Discussion and Analysis Discussion Management’s Summary: Financial Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 5 — 879 760 2,753 3,942 2,155 7,246 6,911 46,963 60,937 57,751 11,680 10,363 2011 2011 158,987 ¥ 152,045 ¥— ¥ 50,906 ¥ 236,239 ¥ 84,193 The first type of trust fees was ¥3.9The first type of trust billion (before income of ¥30.8 billion, or 16.8% over the previous fiscal income of ¥30.8 billion, or 16.8% over by mainly a year, to ¥152.0 billion. This loss caused to lower market decrease in loan-deposit margin due interest rate. deducting trust accounts credit costs), a decrease of 29.3% deducting trust accounts year. Though the balance of loan from the previous fiscal since STB decided to discontin- trusts has been decreasing decrease has been generally com- ue new offerings, the in time deposits in the banking pensated by the increases fees decreased by ¥0.5account. Other trust billion, or in total saw a decrease of ¥2.11.1%. Net trust fees billion, or 4.1%, from the previous fiscal year. (before deducting Trust Accounts Credit Costs) (before deducting Trust Accounts Credit Costs) Interest on Payables under Securities Lending Transactions Interest on Short-term Bonds Interest on Interest Swaps Other Interest Expenses Other Interest Income Interest on Deposits Interest on Payables under Repurchase Agreements Interest on Bonds Interest on Borrowings and Rediscounts Interest on Loans and Discounts Interest and Dividends on Securities Interest on Deposits with Banks Interest on Interest Swaps Interest income decreased by ¥46.6 billion to ¥236.2 bil- Interest income decreased by ¥46.6 billion Net trust fees consist of two types of fees. The first type Net trust fees consist income, the While the first type is classified as interest Net Trust Fees Trust Accounts Credit Costs (Deduction) Money Trusts Trust Fees from Loan Trusts and Jointly-Operated Other Trust Fees Net Interest Income Interest Expenses Interest Income Years Ended March 31 Years Ended March 31 Net Interest Income (Consolidated) Net Interest Income by ¥15.8 billion to lion, while interest expenses decreased in net interest ¥84.1 billion. This resulted in an decrease Net Trust Fees (Consolidated) of fees related to trust fees from loan trusts and JOMTs, of fees related to trust as income from quasi-banking which can be categorized type of fees related to fees from business. The second and trust and custody operations such asset management, designated money trusts, securities as pension trusts, trusts, and others. investment trusts, securities second type is classified as fee and commissions. Net Trust Fees 346 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. (*) Excludingnon-recurringexpenses General andAdministrativeExpenses(Consolidated) Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report General andAdministrativeExpenses (*) Excludingnon-recurringexpenses Net OtherOrdinaryIncome(Consolidated) due toaincreaseinnetgainsonforeignexchangetransactionsandothers,despitedecreasesalesofbonds. Net OtherOrdinaryIncome Financial Summary:Management’sDiscussionandAnalysis Years EndedMarch31 General andAdministrativeExpenses Other (Non-personnelExpenses) Personnel Expenses(*) Taxes otherthanIncome Years EndedMarch31 Net GainsonBonds[(1)+(2)-(3)-(4)-(5)] Net OtherOrdinaryIncome Other OrdinaryExpenses Other OrdinaryIncome General andadministrativeexpenses(excludingnon-recurringexpenses)increasedby¥10.8billion,or5.2%. billionfromthepreviousfiscalyear, Net otherordinaryincome(excludingnon-recurringexpenses)sawaincreaseof¥1.0 Other (*) Expenses onDerivativesotherthanforTradingorHedging Loss onDevaluationofBonds(5) Loss onRedemptionofBonds(4) Loss onSalesofBonds(3) Loss onForeignExchangeTransactions Other (*) Income fromDerivativesotherthanforTradingorHedging Gains onRedemptionofBonds(2) Gains onSalesofBonds(1) Net GainsonForeignExchangeTransactions 7,205 ¥ 216,187 ¥ 344,459 ¥ 10,576 ¥ 55,035 ¥ 289,424 ¥ 115,820 265,792 311,715 2011 2011 93,160 28,590 18,218 3,948 5,412 205 — — — — Millions ofYen Millions ofYen 205,333 ¥ 6,783 ¥ 24,445 ¥ 54,023 ¥ 297,648 ¥ 351,671 ¥ 111,874 275,419 315,351 2010 2010 86,675 10,045 32,344 6,486 1,828 3,868 3,975 — — — 10,853 ¥ 422 ¥ (7,211) ¥ (13,868) ¥ 1,012 ¥ (8,223) ¥ Changes Changes (9,626) (1,073) (1,828) (3,868) (3,636) (3,770) (3,753) 3,945 6,485 8,172 3,948 — — U.S. Dollars U.S. Dollars Millions of Millions of 2,600 $ 87 $ 127 $ 662 $ 3,481 $ 4,143 $ 2011 2011 1,393 1,120 3,197 3,749 219 344 65 47 — — — — 2 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 347 9 39 28 83 13 200 155 142 413 704 2011 $ (73) $ 363 $ (727) Millions of U.S. Dollars 255 2,220 1,064 (2,907) 10,272 12,877 11,812 (14,864) (10,218) (11,801) Changes ¥ (1,828) ¥ 1,328 ¥ 20,242 — — — 2,058 6,332 3,637 13,422 18,743 32,097 73,363 2010 ¥ (7,379) ¥ 9,969 ¥ (58,614) Financial Summary: Management’s Discussion and Analysis Discussion Management’s Summary: Financial Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 729 3,204 2,314 6,941 1,064 16,604 12,877 11,812 34,318 58,498 2011 ¥ (6,051) ¥ 30,212 ¥ (60,443) As of March 31, 2011, consolidated net assets increased As of March 31, 2011, consolidated net “Bankrupt and As of March 31, 2011, the total of Total Net Assets and Shareholders’ Equity (please see page 353) by ¥57.1 billion to ¥1,507.0 billion. Act Assets Classified under the Financial Reconstruction Practically Bunkrupt,” “Doubtful,” and “Substandard” (bank- ing and trust account combined; non-consolidated) loans decreased by ¥20.8 billion. The Bankrupt and Practically Bankrupt categories increased by ¥6.3 billion, and the Doubtful category decreased by ¥11.6 billion. These classi- fied assets consisted 1.2% of total loans and equivalent. General Allowance Specific Loan Loss Allowance (Banking Account Credit Costs) Written-off Loans Provision for Allowance for Loan Losses Losses on Sales of Loans Gain on Sales of Stocks and Other Securities Gain on Sales of Stocks Losses on Sales of Stocks and Other Securities Securities Losses on Devaluation of Stocks and Other As of March 31, 2011, consolidated total liabilities The balance of deposits also increased by ¥47.3 billion As of March 31, 2011, consolidated total assets As of March 31, 2011, consolidated increased by In the major accounts, the balance of loans Net other income and expenses decreased by slightly ¥1.8 billion. expenses decreased by slightly ¥1.8 Net other income and Net of Other Income and Expenses Other Gain Other Expenses Expenses Relating to Non-performing Loans Net Gain on Stocks and Other Securities Net Gain on Stocks and Years Ended March 31 increased by ¥317.8 billion from the previous fiscal year to ¥19,418.9 billion, mainly due to an increase in payables under securities lending transactions by ¥158.7 billion and payables for securities transactions by ¥246.2 billion, respectively. from the end of the previous fiscal year to ¥12,298.5 billion. Total Liabilities (please see page 353) increased by ¥375.0 billion from the end of the previous increased by ¥375.0 billion from the fiscal year to ¥20,926.0 billion. fiscal year to ¥108.3 billion from the end of the previous ¥11,794.9 billion, and that of securities increased by ¥532.4 billion from the end of the previous fiscal year to ¥4,616.5 billion. Financial Conditions Total Assets (please see page 353) Net Other Income and Expenses (Consolidated) Net Other Income and Net Other Income and Expenses Net Other Income 348 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Trust Accounts(Non-consolidated) Total AssetsClassifiedundertheFinancialReconstructionAct(BankingandTrustAccountsCombined;non-consolidated) Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Banking Account(AfterPartialDirectWrite-off)(Non-consolidated) Financial Summary:Management’sDiscussionandAnalysis Total Total of(G),(H) and (I) (Seijo-Saiken) Ordinary Assets (Yo-Kanri-Saiken) (I) Substandard (Kiken-Saiken) (H) Doubtful Practically Bankrupt(G) Bankrupt and Total Total of(A),(B)and(C) (Seijo-Saiken) Ordinary Assets (Yo-Kanri-Saiken) (C) Substandard (Kiken-Saiken) (B) Doubtful Practically Bankrupt(A) Bankrupt and As ofMarch31 As ofMarch31 Total Total of(D),(E)and(F) (Seijo-Saiken) Ordinary Assets (Yo-Kanri-Saiken) (F) Substandard (Kiken-Saiken) (E) Doubtful Practically Bankrupt(D) Bankrupt and As ofMarch31 Classification Classification Classification 179.3 ¥ 16.1 ¥ 0.0 ¥ 23.9 ¥ ¥12,790.9 ¥12,790.9 155.7 ¥ 23.9 ¥ ¥12,611.6 ¥12,611.6 139.6 ¥ 163.2 2011 12,635.2 12,472.0 15.5 2011 2011 0.5 82.1 49.6 81.6 34.1 aac Collateral/Allowance Balance Balance Balance ¥0.1 262.7 ¥ 13.4 ¥ 17.6 ¥ ¥12,685.3 ¥12,685.3 176.5 ¥ 17.5 ¥ ¥12,422.6 ¥12,422.6 163.1 ¥ 249.3 2010 12,508.8 12,259.5 13.2 0.1 2010 2010 97.7 61.2 97.5 48.0 100% 100% 2011 44% 100% 100% Coverage Ratio 2011 2011 68% 89% 68% 84% Coverage Ratio Coverage Ratio Billions ofYen,ExceptforPercentages Billions ofYen,ExceptforPercentages Billions ofYen,ExceptforPercentages 100% 100% 100% 2010 100% 100% 2010 2010 72% 86% 72% 83% Collateral/Guarantee Collateral/Guarantee Uncovered Collateral/Guarantee Restructuring Countries Allowance forLossesto General Allowance Collateral/Guarantee General Allowance Uncovered Collateral/Guarantee Specific Allowance Uncovered Collateral/Guarantee Specific Allowance Restructuring Countries Allowance forLossesto General Allowance Collateral/Guarantee General Allowance Uncovered Collateral/Guarantee Specific Allowance Uncovered Collateral/Guarantee Specific Allowance Collateral/Allowance Collateral/Allowance 012011 2011 2011 2011 0.0 ¥ 15.5 0.2 0.0 10.3 ¥ 10.3 ¥ 40.8 49.5 26.2 28.6 15.9 13.6 40.8 49.3 25.9 13.1 15.9 13.5 6.5 5.1 6.5 5.1 — — (Saiken Shoukyaku Allowance forJOMTs (Tokubetsu-Ryuhokin) Allowance forLoanTrusts Junbikin) 100% 100% 2011 2011 19% 75% 19% 75% Allowance Allowance Ratio Allowance Ratio 100% 100% 2010 2010 22% 77% 22% 77% ¥ 0.2 0.3 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 349 9 (9) — — — 63 (17) 188 2011 (0.17)% (0.17) (0.47) (0.07) (0.09) (0.10) (0.08) $ 171 $— $ 171 $ 270 Changes Millions of U.S. Dollars — — — (32) 2,026 2010 1.39% 1.45 1.39 0.50 0.51 0.89 0.94 (2,903) 13,222 12,349 Changes ¥— ¥ 22,635 ¥ 29,938 ¥ 22,635 Percentage Points — — — 3,274 3,630 3,190 (1,352) 2011 1.22% 1.28 0.92 0.43 0.42 0.79 0.86 2010 (14,003) ¥ (8,451) ¥— ¥ (8,451) ¥ (7,480) Financial Summary: Management’s Discussion and Analysis Discussion Management’s Summary: Financial Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — 726 (780) 5,216 (1,385) 15,624 2011 ¥ 14,184 ¥— ¥ 14,184 ¥ 22,458 General Allowance Specific Loan Loss Allowance Losses Related to International Credit Investment Losses Related to International Credit Investment Provision for Allowance for Loan Losses Provision for Allowance Losses on Sales of Loans Recoveries of Written-off Claims Reversal of Allowance for Loan Losses Written-off Loans Deposits (B) Loans and Bills Discounted (A) Securities Total Substantial Credit Costs Trust Account Total Credit Costs Banking Account Loan-Deposit Margin (A)-(B) Average Yield on Interest-Bearing Liabilities (b) Average Yield on Interest-Bearing Liabilities Gross Margin (a)-(b) Average Yield on Interest-Earning Assets (a) Average Yield on Interest-Earning Assets Years Ended March 31 Years Ended March 31 Breakdown of Credit Costs (Non-consolidated; Banking and Trust Accounts) Costs (Non-consolidated; Banking and Breakdown of Credit Net Interest Spread (Non-consolidated Domestic Banking account, loan trust and JOMTs combined) Net Interest Spread (Non-consolidated 350 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report The SumitomoTrustandBankingCo.,Ltd.asof/forthefiscalyearsendedMarch31 Five-Year Summary Financial Summary: Consolidated StatementsofBankingAccount Net Income Income beforeTaxes Total Expenses Other Expenses General andAdministrativeExpenses Other OrdinaryExpenses Trading Expenses Fees andCommissionsPayments Interest Expenses Expenses: Total Income Other Income Other OrdinaryIncome Trading Income Fees andCommissions Interest Income Trust Fees Income: For TheYear Total LiabilitiesandNetAssets Total NetAssets Minority Interests Accumulated OtherComprehensiveIncome Shareholders’ Equity Net Assets: Total Liabilities,MinorityInterest Total Stockholders’Equity Minority Interest Total Liabilities Others Acceptances andGuarantees Deposits andNegotiableCertificates Liabilities: Total Assets Allowance forInvestmentLoss Allowance forLoanLosses Others Customers’ Liabilitiesfor Intangible FixedAssets Tangible FixedAssets Lease ReceivablesandInvestmentAssets Loans andBillsDiscounted Securities Cash andDuefromBanks Assets: At Year-End Net AssetsperShare Net IncomeperShare(fully-diluted) Net IncomeperShare Per Share(CommonShare) and Stockholders’Equity of Deposit Acceptances andGuarantees 83,509 105,974 ¥ ¥ 743,124 ¥ 47.11 ¥ 849,099 ¥ 20,926,094 ¥ 50,906 ¥ 20,926,094 ¥ 1,507,095 ¥ 1,204,514 ¥ ¥ ¥ ¥ 19,418,999 ¥ 704,625 ¥ 14,520,619 11,794,987 4,535,947 4,616,542 2,653,412 2011 (112,773) 231,174 287,606 345,057 168,411 236,239 304,454 362,432 362,432 164,929 127,563 614,376 84,797 651.72 55,280 84,193 36,925 11,559 (1,872) 72 — 30.17 ¥ 970,869 ¥ 20,551,049 ¥ 53,180 133,157 ¥ ¥ 746,396 ¥ 879,553 ¥ 53,062 ¥ 20,551,049 ¥ 1,449,945 ¥ 1,144,068 ¥ ¥ ¥ ¥ 19,101,104 ¥ 11,686,629 14,602,002 2,648,835 4,084,091 4,159,265 2010 (125,598) 339,837 170,043 125,802 650,540 222,344 299,033 100,023 352,699 130,711 282,915 301,826 339,837 619.15 85,738 39,255 44,491 15,672 4,050 — — Millions ofYen 605,348 ¥ ¥4.74 21,330,132 ¥ 7,946 53,565 ¥ ¥ 1,034,408 ¥ 1,087,974 ¥ 64,448 ¥ 21,330,132 ¥ 1,264,052 ¥ 992,986 ¥ ¥ ¥ ¥ 20,066,080 ¥ 11,229,604 14,212,545 4,794,815 3,503,575 5,430,587 2009 (166,971) (119,080) Yen 422,947 142,913 129,530 668,368 223,135 211,096 316,830 197,628 492,260 103,012 371,801 390,146 422,947 521.85 58,367 27,351 50,112 6,339 — 49.17 ¥ 891,560 ¥ 22,180,734 ¥ 82,344 146,271 ¥ ¥ 960,827 ¥ 1,107,099 ¥ 74,628 ¥ 22,180,734 ¥ 1,280,954 ¥ 1,013,338 ¥ ¥ ¥ ¥ 20,899,780 ¥ 10,746,228 14,332,444 4,602,451 5,277,327 6,078,470 2008 (106,683) 488,865 148,241 132,743 118,044 202,939 364,225 243,903 418,847 131,132 405,653 209,586 488,865 639.75 28,829 60,547 16,288 58,029 49.17 2,885 — 789,472 ¥ 62.05 ¥ 103,820 167,778 ¥ ¥ 690,801 ¥ 858,580 ¥ 73,226 ¥ 21,003,064 ¥ 1,447,907 ¥ 959,340 ¥ ¥ ¥ ¥ 19,555,157 ¥ 21,003,064 ¥ 10,487,237 13,715,918 3,791,896 5,265,243 5,322,373 2007 (106,671) 183,334 222,739 184,455 261,632 134,250 344,541 210,749 277,817 516,865 134,619 131,120 516,865 738.77 69,606 30,498 36,618 (6,718) 62.04 8,311 166 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 351 166 8.50 8.50 8,311 48.89 17.00 (6,993) 21,392 97,249 27,953 23,745 39,500 16,392 66,643 713.90 (97,879) 741,588 114,020 741,588 280,542 333,194 187,521 120,959 2007 4,779,131 5,504,467 2,569,306 13,688,729 10,797,440 ¥ 20,404,956 ¥ 19,209,450 ¥ ¥ ¥ 914,963 ¥ 1,195,505 ¥ 20,404,956 ¥ 73,226 ¥ 563,680 ¥ 431,183 ¥¥ 132,497 81,813 ¥ 28,455 ¥ 48.89 ¥ 761,614 8.50 8.50 2,885 41.75 17.00 (5,514) 63,259 92,936 16,288 69,736 52,537 39,206 51,209 21,472 608.96 (96,799) 687,736 387,552 242,158 135,182 109,768 116,167 687,736 2008 5,528,795 4,891,135 4,005,736 14,276,913 11,033,244 ¥ 20,493,446 ¥ ¥ ¥ 956,540 ¥ 1,019,800 ¥ 21,513,246 ¥ 74,641 ¥ 693,693 ¥ 580,410 ¥¥ 113,282 69,924 ¥ 28,469 ¥ 21,513,246 ¥ 860,067 ¥ 41.75 8.50 1.50 6,339 10.00 (1,185) 43,684 39,485 58,367 23,440 67,808 24,265 515.43 567,015 161,302 202,009 143,417 172,939 357,584 115,011 567,015 Yen (104,032) (136,880) 2009 5,086,137 5,091,016 3,009,670 14,219,544 11,488,687 ¥ 701,198 ¥ 639,660 ¥¥ 61,538 38,936 ¥ 16,745 ¥ 19,872,697 ¥ ¥ ¥ 967,177 ¥¥ 20,735,842 863,145 ¥ 64,478 ¥ 20,735,842 ¥ 23.25 ¥ 578,240 Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — 5.00 5.00 10.00 26,350 13,919 72,782 15,672 38,619 30,985 32,783 22,424 590.82 (65,993) 387,202 113,235 387,202 289,366 109,822 145,906 111,908 (104,843) 2010 3,575,106 4,474,366 2,070,684 14,588,335 11,921,476 ¥ 18,550,644 ¥ ¥ ¥ 1,086,770 ¥ 1,100,690 ¥ 19,651,334 ¥ 53,140 ¥ 500,567 ¥ 422,846 ¥¥ 77,721 21,691 ¥ 16,745 ¥ 19,651,334 ¥ 828,856 ¥ 11.37 72 6.00 8.00 14.00 (1,185) 10,630 78,251 11,863 38,826 32,096 89,627 34,880 23,666 78,542 28,286 619.05 (85,559) 336,175 226,472 141,038 115,390 336,175 2011 4,057,572 2,025,075 4,950,002 14,561,027 12,153,693 ¥ 18,954,776 ¥ ¥ ¥ 1,137,308 ¥ 1,147,938 ¥ 20,102,714 ¥ 50,939 ¥ 20,102,714 ¥ 438,449 ¥ 367,826 ¥¥ 70,622 73,526 ¥ 23,443 ¥ 580,834 ¥ 41.15
Interim Year-end of Deposit Acceptances and Guarantees Acceptances and Guarantees Net Assets per Share Net Income per Share (fully-diluted) Annual Dividends per Share Per Share (Common Share) Net Income per Share Net Income Annual Dividends Other Expenses Total Expenses Income before Income Taxes Fees and Commissions Payments Trading Expenses Other Ordinary Expenses General and Administrative Expenses Other Ordinary Income Other Income Total Income Expenses: Interest Expenses Trust Fees Interest Income Fees and Commissions Trading Income Total Liabilities and Net Assets For The Year Income: Net Assets: Shareholders’ Equity Valuation and Translation Adjustments Total Net Assets Capital Stock Reserves and Surplus Total Stockholders’ Equity Total Liabilities and Stockholders’ Equity Acceptances and Guarantees Others Total Liabilities Stockholders’ Equity: Allowance for Investment Loss Total Assets Liabilities: Deposits and Negotiable Certificates Others Allowance for Loan Losses Securities Loans and Bills Discounted Tangible Fixed Assets Intangible Fixed Assets for Customers’ Liabilities At Year-End Assets: Cash and Due from Banks Non-consolidated Statements of Banking Account Non-consolidated Statements
The Sumitomo Trust and Banking Co., Ltd. as of/for the fiscal years ended March 31 Ltd. as of/for the fiscal years Trust and Banking Co., The Sumitomo Financial Summary: Financial Summary Five-Year 352 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report The SumitomoTrustandBankingCo.,Ltd.asofMarch31 Five-Year Summary Financial Summary: * Total EmployableFundsrepresentsthetotalamountofDepositsinBankingAccount andfundsincludedundertheMoney Total EmployableFunds(Non-consolidated) Total EmployableFunds* Loan Trusts Property FormationBenefitTrusts Pension Trusts Money Trusts Deposits At Year-End Statements ofTrustAccount Total Liabilities Other Trusts Loan Trusts Property FormationBenefitTrusts Pension Trusts Money Trusts Liabilities: Total Assets Other Assets Securities Loans andBillsDiscounted Assets: At Year-End Benefit TrustsandLoanintheTrustAccount. 82,180,452 ¥ 82,180,452 ¥ 333,232 ¥ 33,799,569 ¥ 14,561,027 ¥ 62,941,910 12,950,352 81,214,594 12,950,352 6,259,408 6,259,408 2011 2011 632,625 19,991 19,991 8,789 8,789 79,307,687 ¥ 79,307,687 ¥ 398,476 ¥ 14,588,335 ¥ 32,391,747 ¥ 12,284,982 78,354,576 61,504,272 12,284,982 5,435,133 5,435,133 2010 2010 554,630 74,774 74,774 8,521 8,521 Millions ofYen Millions ofYen 82,770,968 ¥ 82,770,968 ¥ 14,219,544 ¥ 369,126 ¥ 34,069,209 ¥ 62,921,303 13,679,006 82,050,406 13,679,006 5,999,483 5,999,483 2009 2009 161,907 351,435 161,907 9,268 9,268 Trusts, PensionPropertyFormation 90,534,098 ¥ 90,534,098 ¥ 447,059 ¥ 14,276,913 ¥ 47,208,679 ¥ 57,602,333 25,545,526 78,578,095 11,508,943 25,545,526 7,100,851 7,100,851 2008 2008 278,182 278,182 7,203 7,203 13,688,729 ¥ 77,149,949 ¥ 77,149,949 ¥ 591,989 ¥ 42,722,424 ¥ 21,369,242 48,116,254 21,369,242 66,061,854 10,496,104 6,970,683 6,970,683 2007 2007 685,561 685,561 8,207 8,207 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 353 0 4 0 (6) 14 68 69 73 68 (23) (57) 115 105 136 116 596 184 400 267 (155) 3,662 4,914 7,627 5,192 4,359 4,113 3,572 6,806 7,389 1,534 1,984 1,205 4,359 7,467 1,910 1,231 5,283 7,039 (1,356) 10,961 17,464 26,724 14,144 55,521 2011 141,852 Millions of $ 18,125 $ 251,667 $ 233,542 $ 14,486 $ 251,667 $ 147,908 $ 7.84 $ 8,474 U.S. Dollars U.S. Dollars — — 34 31 411 379 (465) 8,927 1,043 8,258 5,778 4,050 9,188 9,440 5,553 (4,655) (9,922) 86,485 22,345 79,131 10,051 79,519 97,945 339,837 342,037 297,052 505,444 301,826 489,816 761,850 650,540 125,802 170,043 339,837 438,667 531,815 430,969 771,305 601,787 (125,598) 2010 4,084,091 1,203,651 2,350,884 1,172,338 11,686,629 ¥ 19,101,104 ¥ 1,144,068 ¥ 1,449,945 ¥ 20,551,049 ¥ 970,869 ¥ 20,551,049 ¥ 12,251,117 ¥ 619.15 Yen 30 30 317 (482) Millions of Yen 8,691 1,155 5,620 5,709 9,565 5,658 6,064 9,650 (1,872) (4,714) 11,320 49,569 15,326 33,260 22,228 (12,873) 342,037 297,051 565,908 304,454 362,432 408,608 634,225 431,710 911,381 127,563 164,929 100,178 362,432 620,846 158,798 102,326 439,303 585,289 614,376 (112,773) 2011 1,176,040 1,452,168 2,222,110 4,616,542 11,794,987 ¥ 651.72 ¥ 1,507,095 ¥ 20,926,094 ¥ 19,418,999 ¥ 1,204,514 ¥ 20,926,094 ¥ 12,298,508 ¥ 704,625 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report
Capital Surplus Retained Earnings Treasury Stock (Note 15) Valuation Difference on Available-for-Sale Securities Deferred Gains or Losses on Hedges Revaluation Reserve for Land (Note 6) Foreign Currency Translation Adjustment Capital Stock Minority Interests Total Net Assets Total Liabilities and Net Assets Total Accumulated Other Comprehensive Income: Total Shareholders’ Equity: Deferred Tax Liabilities for Land Revaluation (Note 6) Acceptances and Guarantees (Note 14) Total Liabilities Net Assets: Provision for Reimbursement of Deposits Provision for Contingent Loss Provision for Relocation Expenses Deferred Tax Liabilities Other Liabilities (Note 13) Provision for Bonuses Provision for Directors’ Bonuses Provision for Retirement Benefits Foreign Exchanges Short-term Bonds Payable Bonds Payable (Note 11) 12) Borrowed Money from Trust Account (Note Payables under Repurchase Agreements (Note 4) Payables under Repurchase Agreements (Note 4) Payables under Securities Lending Transactions Trading Liabilities (Note 1) Borrowed Money (Notes 4 and 10) Liabilities: Deposits (Notes 4 and 9) Negotiable Certificates of Deposit Call Money and Bills Sold Deferred Tax Assets Guarantees (Note 14) Customers’ Liabilities for Acceptances and Allowance for Loan Losses Total Assets Lease Receivables and Investment Assets (Note 4) Lease Receivables and Investment Assets Other Assets (Notes 4 and 8) Tangible Fixed Assets (Note 6) Intangible Fixed Assets (Note 7) Money Held in Trust and 14) Securities (Notes 2, 4 Loans and Bills Discounted (Notes 3 and 4) Foreign Exchanges Call Loans and Bills Bought Call Loans and Bills Bought Agreements Receivables under Resale Monetary Claims Bought 1 and 4) Trading Assets (Notes Assets: Cash and Due from Banks Net Assets per Common Share See accompanying notes.
The Sumitomo Trust and Banking Co., Ltd. as of March 31, 2011 and 2010 Ltd. as of March 31, 2011 Trust and Banking Co., The Sumitomo Financial Data: Financial Sheets Balance Consolidated Financial Data: Consolidated Statements of Income The Sumitomo Trust and Banking Co., Ltd. for the fiscal years ended March 31, 2011 and 2010
Millions of Millions of Yen U.S. Dollars Financial Summary/ 2011 2010 2011 Income: Trust Fees ¥ 50,906 ¥ 53,062 $ 612 The Sumitomo Trust and Banking Co., Ltd. Interest Income: 236,239 282,915 2,841 Interest on Loans and Discounts 158,746 177,986 1,909 Interest and Dividends on Securities 60,937 79,972 733 Interest on Call Loans and Bills Bought 241 230 3 Interest on Receivables under Resale Agreements 174 0 2 Interest on Receivables under Securities Borrowing Transactions 167 347 2 Interest on Deposits with Banks 2,155 1,480 26 Other Interest Income (Note 1) 13,816 22,897 166 Fees and Commissions 168,411 130,711 2,025 Trading Income (Note 2) 11,559 15,672 139 Other Ordinary Income (Note 3) 345,057 352,699 4,150 Financial Data/ Other Income (Note 4) 36,925 44,491 444 Total Income ¥ 849,099 ¥ 879,553 $ 10,212 Expenses: Interest Expenses: ¥ 84,193 ¥ 100,023 $ 1,013 The Sumitomo Trust and Banking Co., Ltd. Interest on Deposits 53,584 66,426 644 Interest on Negotiable Certificates of Deposit 4,166 6,431 50 Interest on Call Money and Bills Sold 492 696 6 Interest on Payables under Repurchase Agreements 879 2,559 11 Interest on Payables under Securities Lending Transactions 5 3 0 Interest on Borrowings and Rediscounts 9,870 7,727 119 Interest on Short-term Bonds 760 891 9 Interest on Bonds 11,680 12,412 140 Other Interest Expenses (Note 1) 2,753 2,874 33 Fees and Commissions Payments 55,280 39,255 665 Trading Expenses (Note 2) 72 — 1 Other Ordinary Expenses (Note 3) 287,606 299,033 3,459 General and Administrative Expenses (Note 5) 231,174 222,344 2,780 Other Expenses (Note 4) 84,797 85,738 1,020 Basel II Qualitative Disclosure Data/ Total Expenses ¥ 743,124 ¥ 746,396 $ 8,937 The Sumitomo Trust and Banking Co., Ltd. Income before Income Taxes and Minority Interests ¥ 105,974 ¥ 133,157 $ 1,275 Income Taxes: Current 29,795 16,116 358 Deferred (19,760) 50,283 (238) Income before Minority Interests 95,939 — 1,154 Minority Interests in Income 12,430 13,576 149 Net Income ¥ 83,509 ¥ 53,180 $ 1,004
Yen U.S. Dollars Net Income per Common Share ¥ 47.11 ¥ 30.17 $ 0.57
See accompanying notes. Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
354 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 355 5 (32) (32) (10) (69) 934 151 1,085 2011 $ 1,154 Millions of U.S. Dollars 2010 ¥ (Notes 1 and 2) Millions of Yen 376 (801) (5,746) (2,635) (2,686) 2011 90,193 77,645 12,548 ¥ 95,939 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report
Comprehensive Income Attributable to Minority Interests Comprehensive Income Attributable to Minority Deferred Gains or Losses on Hedges Deferred Gains or Losses Adjustment Foreign Currency Translation Method Affiliates Attributable to Equity of the Parent Comprehensive Income Attributable to Owners Valuation Difference on Available-for-Sale Securities Valuation Difference Total Other Comprehensive Income Comprehensive Income: Other Comprehensive Income: Other Comprehensive Income before Minority Interests Income before Minority See accompanying notes.
The Sumitomo Trust and Banking Co., Ltd. for the fiscal years ended March 31, 2011 and 2010 ended March 31, 2011 and Ltd. for the fiscal years Trust and Banking Co., The Sumitomo Financial Data: Financial Income of Comprehensive Statements Consolidated Financial Data: Consolidated Statements of Changes in Net Assets The Sumitomo Trust and Banking Co., Ltd. for the fiscal years ended March 31, 2011 and 2010
Millions of Millions of Yen U.S. Dollars Financial Summary/ 2011 2010 2011 Shareholders’ Equity: Capital Stock: The Sumitomo Trust and Banking Co., Ltd. Balance at the End of the Previous Period ¥ 342,037 ¥ 287,537 $ 4,113 Changes of Items during the Period: Issuance of New Shares — 54,500 — Total Changes of Items during the Period ¥—¥ 54,500 $— Balance at the End of the Current Period ¥ 342,037 ¥ 342,037 $ 4,113 Capital Surplus: Balance at the End of the Previous Period ¥ 297,052 ¥ 242,555 $ 3,572 Changes of Items during the Period: Issuance of New Shares — 54,500 — Disposal of Treasury Stock (0) (3) (0) Total Changes of Items during the Period ¥(0)¥ 54,496 $(0) Financial Data/ Balance at the End of the Current Period ¥ 297,051 ¥ 297,052 $ 3,572 Retained Earnings: Balance at the End of the Previous Period ¥ 505,444 ¥ 463,346 $ 6,079 Changes of Items during the Period: The Sumitomo Trust and Banking Co., Ltd. Cash Dividends (23,030) (11,226) (277) Net Income 83,509 53,180 1,004 Reversal of Revaluation Reserve for Land 60 143 1 Change of Scope of Consolidation (75) — (1) Total Changes of Items during the Period ¥ 60,463 ¥ 42,097 $ 727 Balance at the End of the Current Period ¥ 565,908 ¥ 505,444 $ 6,806 Treasury Stock: Balance at the End of the Previous Period ¥ (465) ¥ (453) $(6) Changes of Items during the Period: Purchase of Treasury Stock (19) (19) (0) Disposal of Treasury Stock 2 7 0 Total Changes of Items during the Period ¥ (16) ¥ (12) $(0) Balance at the End of the Current Period ¥ (482) ¥ (465) $(6) Total Shareholders’ Equity: Basel II Qualitative Disclosure Data/ Balance at the End of the Previous Period ¥ 1,144,068 ¥ 992,986 $ 13,759 The Sumitomo Trust and Banking Co., Ltd. Changes of Items during the Period: Issuance of New Shares — 109,000 — Cash Dividends (23,030) (11,226) (277) Net Income 83,509 53,180 1,004 Purchase of Treasury Stock (19) (19) (0) Disposal of Treasury Stock 1 3 0 Reversal of Revaluation Reserve for Land 60 143 1 Change of Scope of Consolidation (75) — (1) Total Changes of Items during the Period ¥ 60,445 ¥ 151,082 $ 727 Balance at the End of the Current Period ¥ 1,204,514 ¥ 1,144,068 $ 14,486 Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
356 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 357 3 0 1 (1) (0) (1) — 32 (40) (38) (35) (71) (277) 1,004 2011 $$ 687 18,125 $$ (38) 73 $ 114 $(1) $ (57) $ (119) $$ (35) (155) $ 49 $$ (71) (23) $ 3,630 $ 110 $3 $ 116 $ (56) $$ 32 3,662 $ 17,438 Millions of U.S. Dollars 3 — (19) 143 188 (143) 11,648 53,180 34,810 (88,319) (11,226) 111,436 123,130 109,000 2010 ¥ (102,248) ¥ 111,436 ¥ 9,188 ¥ (2,208) ¥¥ 11,648 9,440 ¥ (4,511) ¥¥ (143) (4,655) ¥ (10,111) ¥¥ 188 (9,922) ¥ (119,080) ¥ 123,130 ¥ 4,050 ¥ 390,146 ¥ (88,319) ¥ 301,826 ¥ 1,264,052 ¥ 185,892 ¥ 1,449,945 1 — 60 (75) (19) (58) 210 Millions of Yen 2,627 (3,295) (2,951) (5,922) (3,123) 83,509 (23,030) 2011 ¥¥ 57,150 1,507,095 ¥¥ (58) (4,714) ¥ (9,922) ¥¥ (2,951) (12,873) ¥ 4,050 ¥¥ (5,922) (1,872) ¥ 301,826 ¥¥ 2,627 304,454 ¥ 1,449,945 ¥ 9,188 ¥¥ (3,123) 6,064 ¥ 9,440 ¥¥ 210 9,650 ¥ (4,655) Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Consolidated Statements of Changes in Net Assets in Net of Changes Statements Consolidated Data: Financial Net Changes of Items other than Shareholders’ Equity Total Changes of Items during the Period Net Changes of Items other than Shareholders’ Equity Net Changes of Items other than Shareholders’ Total Changes of Items during the Period Total Changes of Items during the Period Total Changes of Items during the Period Equity Net Changes of Items other than Shareholders’ Total Changes of Items during the Period Net Changes of Items other than Shareholders’ Equity Net Changes of Items other than Shareholders’ Total Changes of Items during the Period Equity Net Changes of Items other than Shareholders’ Net Changes of Items other than Shareholders’ Equity Net Changes of Items during the Period Total Changes of Items Disposal of Treasury Stock Reversal of Revaluation Reserve for Land Change of Scope of Consolidation Net Changes of Items other than Shareholders’ Equity Total Changes of Items during the Period Issuance of New Shares Cash Dividends Net Income Purchase of Treasury Stock Balance at the End of the Previous Period Changes of Items during the Period: Balance at the End of the Current Period Balance at the End of the Current Period Balance at the End of the Previous Period Changes of Items during the Period: Balance at the End of the Current Period Balance at the End of the Current Period Balance at the End of the Previous Period Changes of Items during the Period: Balance at the End of the Current Period Balance at the End of the Previous Period Changes of Items during the Period: Changes of Items during the Period: Changes of Items during the Current Period Balance at the End of Balance at the End of the Previous Period Changes of Items during the Period: Balance at the End of the Previous Period Balance at the End of Balance at the End of the Current Period Balance at the End of the Previous Period Changes of Items during the Period: Minority Interests: Total Accumulated Other Comprehensive Income: Total Accumulated Other Comprehensive Foreign Currency Translation Adjustment: Revaluation Reserve for Land: Deferred Gains or Losses on Hedges: Valuation Difference on Available-for-Sale Securities: Valuation Difference Total Net Assets: Accumulated Other Comprehensive Income: Accumulated Other See accompanying notes. Financial Data: Consolidated Statements of Cash Flows The Sumitomo Trust and Banking Co., Ltd. for the fiscal years ended March 31, 2011 and 2010
Millions of Millions of Yen U.S. Dollars Financial Summary/ 2011 2010 2011 Net Cash Provided by (Used in) Operating Activities: Income before Income Taxes and Minority Interests ¥ 105,974 ¥ 133,157 $ 1,275 The Sumitomo Trust and Banking Co., Ltd. Depreciation and Amortization 17,316 17,734 208 Impairment Losses 9,664 34,489 116 Amortization of Goodwill 8,516 10,432 102 Equity in Losses (Earnings) of Affiliates (2,655) (1,316) (32) Increase (Decrease) in Allowance for Loan Losses (12,921) (41,373) (155) Increase (Decrease) in Provision for Bonuses (705) 2,280 (8) Increase (Decrease) in Provision for Directors’ Bonuses (94) 301 (1) Increase (Decrease) in Provision for Retirement Benefits (236) (414) (3) Increase (Decrease) in Provision for Reimbursement of Deposits 111 153 1 Increase (Decrease) in Provision for Contingent Loss 3,062 1,955 37 Increase (Decrease) in Provision for Relocation Expenses 5,240 (319) 63 Financial Data/ Gain on Fund Management (236,239) (282,915) (2,841) Financing Expenses 84,193 100,023 1,013 Loss (Gain) Related to Securities (1,214) (15,805) (15) Loss (Gain) on Money Held in Trust (483) (435) (6) The Sumitomo Trust and Banking Co., Ltd. Foreign Exchange Losses (Gains) 113,446 81,633 1,364 Loss (Gain) on Disposal of Fixed Assets 987 (1,731) 12 Net Decrease (Increase) in Trading Assets 176,561 329,775 2,123 Net Increase (Decrease) in Trading Liabilities 4,381 (33,659) 53 Net Decrease (Increase) in Loans and Bills Discounted (108,357) (456,046) (1,303) Net Increase (Decrease) in Deposit 61,751 341,285 743 Net Increase (Decrease) in Negotiable Certificates of Deposit (128,774) 47,367 (1,549) Net Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowings) 3,701 (263,055) 45 Net Decrease (Increase) in Due from Banks (excluding due from the Bank of Japan) (24,124) (10,739) (290) Net Decrease (Increase) in Call Loans 88,792 (24,130) 1,068 Net Decrease (Increase) in Receivables under Securities Borrowing Transactions — 296,051 — Net Increase (Decrease) in Call Money (10,891) (688,649) (131) Net Increase (Decrease) in Payables under Securities Lending Transactions 158,798 — 1,910 Net Decrease (Increase) in Foreign Exchange-Assets (104) 6,612 (1) Basel II Qualitative Disclosure Data/ Net Increase (Decrease) in Foreign Exchange-Liabilities (0) (501) (0) The Sumitomo Trust and Banking Co., Ltd. Net Decrease (Increase) in Lease Receivables and Investment Assets 36,164 17,828 435 Net Increase (Decrease) in Short-term Bonds Payable (30,058) 21,890 (361) Increase (Decrease) in Straight Bonds-Issuance and Redemption 38,679 1,000 465 Net Increase (Decrease) in Borrowed Money from Trust Account 740 (116,145) 9 Proceeds from Fund Management 244,526 285,001 2,941 Payments for Finance (80,594) (93,063) (969) Other Net (140,579) (21,738) (1,691) Sub Total ¥ 384,573 ¥ (323,068) $ 4,625 Income Taxes Paid (1,536) (25,244) (18) Net Cash Provided by (Used in) Operating Activities ¥ 383,036 ¥ (348,312) $ 4,607 Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
358 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 359 7 2 0 0 (0) (0) — — — — (72) (122) (155) (301) (277) (133) 1,077 39,617 31,302 2011 Millions of $ (78,868) $ (8,290) $— $$ 366 $ (175) (3,492) $ 7,654 $ 4,162 U.S. Dollars 3 5 (19) 603 192 4,126 (8,478) (5,115) 58,704 (45,000) (77,162) (83,000) (11,231) (12,729) (12,346) (90,457) 108,566 2010 2,797,640 1,176,553 ¥ 720,794 ¥ 20,000 ¥¥ (41,867) ¥ 331,163 ¥ 549 304,631 ¥ 636,398 ¥ (3,141,326) 1 — — — — 10 (14) (19) 600 140 Millions of Yen (5,992) 89,586 (25,000) (23,034) (11,073) (10,163) (12,928) 2011 Financial Data: Consolidated Statements of Cash Flows Flows of Cash Statements Consolidated Data: Financial 3,294,191 2,602,742 ¥¥ 30,461 ¥ (14,551) (290,368) ¥ 636,398 ¥ 346,030 ¥ (689,314) ¥— ¥ (6,557,900) Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Bonds with Subscription Rights to Shares Bonds with Subscription Rights to Shares Change in Scope of Consolidation Consolidation of Subsidiaries Cash Dividends Paid to Minority Shareholders Purchase of Treasury Stock Proceeds from Sales of Treasury Stock Proceeds from Issuance of Preferred Share Repayments to Minority Shareholders Cash Dividends Paid Purchase of Investments in Subsidiaries Increase in Subordinated Borrowings Decrease in Subordinated Borrowings Bonds and Proceeds from Issuance of Subordinated Proceeds from Redemption of Securities Proceeds from Redemption in Trust Decrease in Money Held Fixed Assets Purchase of Tangible of Tangible Fixed Assets Proceeds from Sales Purchase of Intangible Fixed Assets Proceeds from Sales of Intangible Fixed Assets in Purchase of Investments in Subsidiaries Resulting Purchase of Securities of Securities Proceeds from Sales Payments for Redemption of Subordinated Bonds and Payments for Redemption of Subordinated Cash and Cash Equivalents at the End of the Period (Note 1) Effect of Exchange Rate Change on Cash and Cash Equivalents Effect of Exchange Rate Change on Cash Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Period Increase (Decrease) in Cash and Cash Equivalents Resulting from Net Cash Provided by (Used in) Financing Activities Net Cash Provided by (Used in) Financing Net Cash Provided by (Used in) Investment Activities Net Cash Provided by (Used in) Investment Activities: Net Cash Provided by (Used in) Financing Net Cash Provided by (Used in) Investment Activities: Net Cash Provided by See accompanying notes. Financial Data: Notes to Consolidated Financial Statements
Basis of Presentation of Financial Statements Certain amounts in the previous year have been reclas-
Financial Summary/ The accompanying translated consolidated financial sified in accordance with the current presentation. statements have been compiled from the audited consoli- dated financial statements that are prepared for Japanese Significant Accounting Policies and Practices
The Sumitomo Trust and Banking Co., Ltd. domestic purposes in accordance with the Financial 1. Scope of Consolidation Instruments and Exchange Act of Japan (hereinafter the The consolidated financial statements include the “FIEA”), the Banking Act of Japan and accounting princi- accounts of STB Group, which are substantially controlled ples and practices generally accepted in Japan ( hereinafter by STB through the majority of voting rights or through “Japanese GAAP”). Certain Japanese GAAP are partly dif- the existence of certain conditions evidencing control of ferent from International Financial Reporting Standards in the decision-making of such subsidiaries by STB. terms of application and disclosure requirements. The accounts of STB’s overseas subsidiaries are based (1) Consolidated Subsidiaries 51 companies on their accounting records maintained in conformity with Names of principal companies are represented in the generally accepted accounting principles prevailing in the “Subsidiaries and Affiliated Companies” on pages 91–92 Financial Data/ respective countries of domicile. and not disclosed in this section. The accompanying consolidated financial statements For the fiscal year ended March 31, 2011, Tyndall have been restructured and translated into English (with Investment Management Limited and 5 other companies The Sumitomo Trust and Banking Co., Ltd. some modifications and expanded descriptions for facilita- were newly consolidated due to acquisition of shares in tion of understanding by readers outside Japan) from the the current fiscal year. consolidated financial statements in accordance with Sumishin Leasing & Financial Group Co., Ltd. and 2 Japanese GAAP and filed with the appropriate Local other companies were excluded from the scope of consol- Finance Bureau of the Ministry of Finance as required by idation due to merger and other reasons. the FIEA. Some supplementary information included in the For the fiscal year ended March 31, 2010, Nikko AM statutory Japanese language consolidated financial state- and 13 other companies were newly consolidated due to ments, but not required for fair presentation, is not pre- the acquisition of shares and other factors in the current sented in the accompanying financial statements. fiscal year. STB and its subsidiaries (hereinafter “STB Group”) STB Preferred Capital 1 (Cayman) Limited and another maintain their records and prepare their financial state- company were excluded from the scope of consolidation ments in Japanese yen. The accompanying U.S. dollar due to their liquidation. Basel II Qualitative Disclosure Data/ financial statements have been translated from yen-base SMF Business Support Co., Ltd. was merged with The Sumitomo Trust and Banking Co., Ltd. financial statements for convenience, and only as a matter Sumishin Matsushita Financial Services Co., Ltd. of arithmetical computation, at the rate of ¥83.15 to U.S. $1.00, the exchange rate prevailing as of March 31, 2011. (2) Unconsolidated Subsidiaries The translations would not be construed as representa- Principal company for the fiscal years ended March 31, tions that the Japanese yen amounts have been, could 2011 and 2010 is respectively; have been, or could in the future be, converted into U.S. For 2011: dollars at this or any other rate of exchange. STB i Hybrid Venture Investment LPS In accordance with the FIEA, amounts of less than one For 2010: million yen have been omitted. As a result, the totals in STB i Fund I yen, and accordingly in U.S. dollars, shown in the consoli- For the fiscal year ended March 31, 2011, Hummingbird dated financial statements do not necessarily agree with Co., Ltd. and 41 other companies were operators of silent the sum of the individual amounts. partnerships for lease transactions and their assets and Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
360 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 361 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Accounted for by the Equity Method Japan Trustee Information Systems, Ltd. was excluded Japan Trustee Information ended March 31, 2010, Rongtong For the fiscal year Principal company for the fiscal years ended March 31, Principal company for the fiscal years For 2011: STB i Hybrid Venture Investment LPS For 2010: STB i Fund I Hummingbird For the fiscal year ended March 31, 2011, For the fiscal year ended March 31, 2010, Hummingbird from affiliates accounted for by the equity method due to from affiliates accounted Trustee Services Bank, Ltd. in the cur- merger with Japan rent fiscal year. Co., Ltd. and other 2 companies were Fund Management by the equity method due to acquisi- newly accounted for tion of shares. Not Unconsolidated Subsidiaries and Affiliates (3) 2011 and 2010 is respectively; operators of silent Co., Ltd. and 41 other companies were their assets and partnerships for lease transactions and them substantially. profits or losses did not belong to scope of applica- Therefore, they were excluded from the to Article 10, tion of the equity method pursuant Statements Paragraph 1, Item 2 of Consolidated Financial and affili- Regulations. Other unconsolidated subsidiaries method were also ates not accounted for by the equity excluded from the scope of consolidation because their total amounts in terms of net assets, retained earnings and others were so immaterial that they did not have a significant impact to the consolidated financial state- if ments even excluded from the scope of application of the equity method. Co., Ltd. and 42 other companies were operators of silent partnerships for lease transactions and their assets and profits or losses did not belong to them substantially. Therefore, they were excluded from the scope of applica- tion of the equity method pursuant to Article 10, Paragraph 1, Item 2 of Consolidated Financial Statements Regulations. Other unconsolidated subsidiaries and affiliates not accounted for by the equity method were also excluded from the scope of consolidation because their total amounts in terms of net assets, retained earnings and oth- Equity Method for the fiscal years ended March 31, 2011 and 2010 For the fiscal year ended March 31, 2010, Hummingbird For the fiscal year ended March 31, 2010, 11 companies for the fiscal years ended March 31, 2011 Principal companies for the fiscal years ended March 31, Japan Trustee Services Bank, Ltd. SBI Sumishin Net Bank, Ltd. BUSINEXT CORPORATION For the fiscal year ended March 31, 2011, Zijin Trust Co., None 2. Application of the Equity Method Unconsolidated Subsidiaries accounted for by the (1) Co., Ltd. and 42 other companies were operators of silent Co., Ltd. and 42 other companies were their assets and partnerships for lease transactions and them substantially. profits or losses did not belong to scope of consoli- Therefore, they were excluded from the 1, Item 2 of dation pursuant to Article 5, Paragraph Regulations. Other Consolidated Financial Statements excluded from the unconsolidated subsidiaries were also total amounts in scope of consolidation because their net income, terms of total assets, ordinary income, immaterial that they retained earnings, and others were so STB’s financial posi- did not hinder a rational judgment of excluded from the tion and results of operations even if scope of consolidation. profits or losses did not belong to them substantially. profits or losses did excluded from the scope of consoli- Therefore, they were Article 5, Paragraph 1, Item 2 of dation pursuant to Statements Regulations. Other Consolidated Financial were also excluded from the unconsolidated subsidiaries because their total amounts in scope of consolidation ordinary income, net income, terms of total assets, others were so immaterial that they retained earnings, and STB Group’s finan- did not hinder a rational judgment of even if excluded cial position and results of operations from the scope of consolidation. and 2010 2011 and 2010 are; Ltd. was newly accounted for by the equity method due to acquisition of the shares in the current fiscal year. (2) Affiliates Accounted for by the Equity Method Affiliates Accounted for by (2) 362 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report sidiaries andtheconsolidated balancesheetdate. transactions betweenthebalance sheetdatesofthesub- 31, 2011. March 31toSeptember30in thefiscalyearendedMarch on thefinancialstatementsasoftheirbalancesheetdates. respectively. Othersubsidiarieswereconsolidatedbased financial statementsasofFebruary28,andMarch31, December 31wereconsolidatedbasedontheirpreliminary of ninesubsidiarieswithabalancesheetdateas its preliminaryfinancialstatementsasofFebruary28.Two sheet dateasofNovember30wasconsolidatedbasedon statements asofMarch31.Asubsidiarywithabalance 30 wasconsolidatedbasedonitspreliminaryfinancial 31. AsubsidiarywithabalancesheetdateasofSeptember based onitspreliminaryfinancialstatementsasofJanuary with abalancesheetdateasofApril30wasconsolidated (2) ForthefiscalyearendedMarch31,2011,asubsidiary as follows: the balancesheetdatesofconsolidatedsubsidiariesare (1) Balancesheetdatesofconsolidatedsubsidiaries 3. BalanceSheetDatesofConsolidatedSubsidiaries from thescopeofapplicationequitymethod. on theconsolidatedfinancialstatements ers weresoimmaterialthattheydidnotimpactsignificantly Financial Data:NotestoConsolidatedStatements Necessary adjustmentswere madeforanysignificant A subsidiarychangedthebalancesheetdatefrom 1company 32companies 4companies April 30 March 31 10companies 1company January 31 December 31 35companies November 30 4companies For 2010: March 31 9companies 1company January 31 1company 1company December 31 November 30 September 30 April 30 For 2011: For thefiscalyearsendedMarch31,2011and2010, even if excluded changes infair valueofsecuritiesandmonetary claimsin tled atthebalancesheetdate. options, arevaluedontheassumption thattheyareset- derivatives fortradingactivities, suchasswaps,futuresand stated atfairvalueofthebalance sheetdateandfinancial basis. Tradingaccountsecuritiesandmonetaryclaimsare as tradingincomeorexpensesonatradedate sheets. Gainsandlossesontradingtransactionsareshown assets ortradingliabilitiesintheconsolidatedbalance ments, allofwhicharestatedatfairvaluesastrading accounting methodisadoptedforsuchfinancialinstru- cial papers,andfinancialderivatives.Themark-to-market Trading assetsandliabilitiesincludesecurities,commer- profit takingbymarket-makingandsalesarbitrages. (1) TradingAccountActivities 5. AccountingPolicies March 31,2010. considering theirimmaterialityforthefiscalyearended ty, whichwasnotregardedasasubsidiary,arestated Statements Regulations,notesforaspecialpurposeenti- 4. SpecialPurposeEntitieswithintheScopeofDisclosure sidiaries andtheconsolidatedbalancesheetdate. transactions betweenthebalancesheetdatesofsub- 31, 2011. December 31toMarchinthefiscalyearended statements asoftheirbalancesheetdates. sidiaries wereconsolidatedbasedonthefinancial nary financialstatementsasofJanuary31.Othersub- date asofApril30wasconsolidatedbasedonitsprelimi- March 31,respectively.Asubsidiarywithabalancesheet preliminary financialstatementsasofFebruary28,and date asofDecember31wereconsolidatedbasedontheir February 28.Twooftensubsidiarieswithabalancesheet dated basedonitspreliminaryfinancialstatementsasof with abalancesheetdateasofNovember30wasconsoli- Trading incomeandtrading expenses includeinterests, Trading accountactivitiesareconductedforshort-term Pursuant toArticle8,Paragraph7oftheFinancial Necessary adjustmentsweremadeforanysignificant Two subsidiarieschangedtheirbalancesheetdatefrom For thefiscalyearendedMarch31,2010,asubsidiary Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 363 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Tangible fixed assets of subsidiaries are depreciated Tangible fixed assets are depreciated using the straight- Intangible fixed assets transfer of own- Lease assets for finance leases without is provided as As for STB, allowance for loan losses bankrupt (due to For claims to debtors who are legally For claims to debtors who are likely to become bankrupt, For claims to debtors with more than certain amount of Buildings:Others: 3 to 60 years 2 to 20 years mainly using the declining-balance method over the esti- mainly using the declining-balance mated useful lives. Assets (except lease assets) 2) Intangible Fixed related to software for internal use line method. Expenses and amortized over are capitalized in intangible fixed assets years. the estimated useful lives, generally five 3) Lease Assets using the ership in tangible fixed assets are depreciated assuming no sal- straight-line method over the lease term vage value. (5) Allowance for Loan Losses rules for self-assess- detailed below, pursuant to the internal Rules) ment of assets’ quality (hereinafter Self-Assessment for loan losses. and the internal rules regarding allowance Act of Japan, bankruptcy, subject to the Civil Rehabilitation by the rules of clear- suspension of transactions with banks the specific inghouses, and others) or virtually bankrupt, amount of claims, allowance is provided based on the deducting the amount expected to be collected through the disposal of collateral or execution of guarantees from book value after a direct deduction described below. the specific allowance is provided for the amount considered to be necessary based on an overall solvency assessment, deducting the amount expected to be collected through the disposal of collateral or execution of guarantees. the STB’s claims to debtors, (i) who are likely to become bankrupt, (ii) to whom STB has Restructured loans (See fol- lowing Note 3 in the “Notes to the Consolidated Balance Sheets”), or (iii) whom STB classifies as special mention debtors other than substandard ones meeting certain credit criteria, where future cash flows from principal collection and interest receipt could be reasonably estimated, allowance is provided for the difference between the present value of Tangible fixed assets of STB are depreciated using the Financial derivatives other than trading purposes are “Held-to-Maturity Debt Securities” are carried at amor- “Held-to-Maturity Debt Securities” are declining-balance method over the following estimated useful lives. Buildings acquired on and after April 1, 1998, however, are depreciated using the straight-line method over the followings. (4) Depreciation Methods 1) Tangible Fixed Assets (except lease assets) valued on the assumption that they are settled at the bal- ance sheet date (the mark-to-market accounting method). (3) Financial Derivatives (2) Evaluation for Securities standard for financial instruments, 1) Under the accounting explicitly determine the purposes of STB is required to and classify them into (i) securities holding each security Securities”), held for trading purposes (hereinafter “Trading to maturity (here- (ii) debt securities intended to be held (iii) equity secu- inafter “Held-to-Maturity Debt Securities”), or (iv) all other rities issued by subsidiaries and affiliates, of the above cate- securities that are not classified in any gories (hereinafter “Available-for-Sale Securities”). Equity securi- tized cost using the moving average method. and affiliates not ties issued by unconsolidated subsidiaries stated at moving accounted for by the equity method are as “Available-for- average cost. Japanese stocks classified at the average Sale Securities” with fair value are revalued year. “Available- market price of the final month in the fiscal than Japanese for-Sale Securities” with fair value other date. “Available- stocks are revalued at the balance sheet are obtainable for-Sale Securities” for which no fair values the moving aver- are carried at cost or amortized cost using available-for-sale age method. Valuation difference on securities is recorded as a separate component of net assets and reported in the consolidated balance sheets. 2) Securities invested in money held in trust are revalued at the same method as (1) or (2) 1) mentioned above. the current period, and changes in values of financial the current period, estimated on the assumption that derivatives which are balance sheet date. they are settled at the 364 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report plan assetsatthe respectivebalancesheet date. the projectedbenefitobligation andthefairvalueof (8) ProvisionforRetirementBenefits mated directors’bonusesattributable toeachfiscalyear. (7) ProvisionforDirectors’Bonuses employees’ bonusesattributabletoeachfiscalyear. (6) ProvisionforBonuses ended March31,2011and2010,respectively. ¥63,787 millionand¥58,649forthefiscalyears original amountofclaims.Thedeductedwas execution ofguarantees,aredirectlydeductedoutthe collected throughthedisposalofcollateralor ed uncollectibleamount,netofamountsexpectedtobe virtually bankruptwithcollateralorguarantees,theexpect- year endedMarch31,2011. caused bytheGreatEastJapanEarthquakeinfiscal losses wereprovidedafterrationallyestimatingtheeffect uncollectible foreachclaim. specific claimsisbasedontheamountexpectedtobe historical loan-loss-ratio,andallowanceforloanlosses loan lossesforgeneralclaimsisprovidedbasedonthe to reflecttheauditresults. audits oftheirassessments,andtheallowanceisadjusted Supervision DepartmentI&II,subsequentlyconductsthe independent fromthebranchesandCredit The CorporateRiskManagementDepartment,whichis sion departmentsbasedontheSelf-AssessmentRules. the historicalloan-loss-ratio. those above,thegeneralallowanceisprovidedbasedon ditions andthecurrentbookvalueofclaims. tracted interestratebeforemodificationsoftermsandcon- expected futurecashflowsdiscountedattheoriginalcon- Financial Data:NotestoConsolidatedStatements Provision forretirementbenefits isprovidedbasedon Provision fordirectors’bonusesisprovidedtheesti- Provision forbonusesisprovidedtheestimated And forclaimstodebtorswhoarelegallybankruptor In additiontotheabove,additionalallowanceforloan As fortheconsolidatedsubsidiaries,allowance All claimsareassessedbybranchesandcreditsupervi- For claimsthatareclassifiedintocategoriesotherthan each ofthebalance sheetdates. sidiaries aretranslated intoyenattheexchange rateat into yenattheexchangerate attheacquisitiondate. 2011 and2010,exceptfor shares ofaffiliatestranslated each oftheconsolidatedbalance sheetdatesMarch31, are primarilytranslatedinto yenattheexchangerate (12) ForeignCurrencyTranslation developing officebuildingsintheTokyodistrict. reasonably estimatedcostsforintegratingandjointly (11) ProvisionforRelocationExpenses estimated expectedlosses. contingent lossontrusttransactions,andothers,based (10) ProvisionforContingentLoss on thepastreimbursementrecord. reimbursement requestedbycustomerscalculatedbased under certainconditionsagainsttheestimatedfuture the depositswhicharenolongeraccountedasdeposit (9) ProvisionforReimbursementofDeposits ed asotherincome. employees’ pensionfundof¥18,322 millionwasaccount- employee servicesonMarch1,2011. 1, 2010,andthereturnofportionrelatedtopast pay benefitsrelatedtofutureemployeeservicesonJune Welfare approvedtheexemptionofSTB’sobligationto Pension PlanAct,”theMinisterofHealth,Laborand ees’ pensionfundbasedon“DefinedBenefitCorporation (Additional Information) expected remainingserviceyears(mainly10years). expenses usingthestraight-linemethodoveraverage remaining serviceyears(mainly10years). using thestraight-linemethodoveraverageexpected Assets andliabilitiesofoverseas consolidatedsub- Assets andliabilitiesdenominatedinforeigncurrencies Provision forrelocationexpensesisprovidedthe Provision forcontingentlossisprovidedpossible Provision forreimbursementofdepositsisprovided As aresult,gainonreturnofthesubstituteportion Regarding thesubstitutionalportionofSTB’semploy- Actuarial gainsandlossesarerecognizedinincome Prior servicecostisrecognizedinincomeorexpenses Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 365 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report STB manages foreign exchange risk arising from various STB manages foreign by confirm- The effectiveness of the hedge is assessed foreign cur- STB also applies fair value hedge to mitigate Gain and losses arisen from hedging instruments such as STB also applies the individual deferred hedge account- Consolidated subsidiaries apply the individual deferred tively. At 2010, these were ¥7,295 million and ¥6,394 mil- million and ¥6,394 were ¥7,295 tively. At 2010, these lion, respectively. Transactions 2) Currency Related denominated in foreign currencies by assets and liabilities transactions and applies using financial derivatives accounting in accordance with deferred hedge and Auditing of Application of “Treatment for Accounting Transactions in Accounting Standard for Foreign Currency Auditing Banking Industry” (the JICPA Industry “Report No.25”). Committee Report No.25, hereinafter swaps and foreign STB designates specific currency exchange risks exchange swaps made to mitigate foreign denominated in arising from monetary claims and debts foreign currencies as hedging transactions. denominated in ing that the monetary claims and debts the position of foreign currency as hedged items exceed those hedging transactions. in available-for-sale rency exchange rate spot exposure (other than securities denominated in foreign currencies foreign cur- bonds) as “Portfolio Hedges” when hedged to the inception of rency securities are specified in advance of non-derivative the transactions, and spot exposure exist on a foreign financial liabilities and forwards contracts currency basis that exceed acquisition costs of the foreign currency securities designated as hedged items. 3) Internal Hedge Transactions and others interest rate swaps and cross currency swaps between con- solidated companies and between the trading account and other accounts (hereinafter banking account) are not elimi- nated but either charged to earnings or deferred. This treatment is allowed by “the Report No.24 and 25,” under which STB operated strictly and non-arbitrarily in conformi- ty with the standard equivalent to the third-party cover transactions that are required for hedge qualification. ing to specific assets and liabilities. hedge accounting, the individual fair value hedge accounting and the accrual-basis hedge accounting on interest rate swaps. STB manages interest rate risk arising from various STB manages interest rate risk arising In accordance with “Temporary Treatment for As of March 31, 2011, deferred hedge losses and gains As for STB and its domestic consolidated subsidiaries, As for STB and its assets and liabilities, such as loans, bills discounted, assets and liabilities, such as loans, derivatives transac- deposits, and others, by using financial regulated by tions and applies deferred hedge accounting of Application of “Treatment for Accounting and Auditing in Banking Accounting Standard for Financial Instruments of Certified Public Industry” (the Japanese Institute Industry Auditing Accountants (hereinafter “the JICPA”) “Report No.24”). In Committee Report No.24, hereinafter in the fair value of hedging activities to offset changes items, STB desig- deposits, loans, and others, as hedged swaps and others as nates hedged items and interest rate by their maturi- hedging transactions by grouping them ties. As for cash-flow-hedge, the effectiveness of the hedge is assessed by confirming the correlation between the fluctuant factor of interest rate for hedged items and that for hedging transactions. Accounting and Auditing concerning Application of Accounting Standard for Financial Instruments in Banking Industry” (the JICPA Industry Auditing Committee Report No.15), STB had adopted “Macro Hedge Accounting” to account for certain interest related derivatives, which were utilized to manage interest rate exposure of certain changes of transactions such as loans and deposits. Deferred hedge gain (losses) resulted from “Macro Hedge Accounting” are amortized over the remaining period for each hedging transaction. (before net of taxes) resulted from “Macro Hedge respec- million, million and ¥382 Accounting” were ¥1,370 (14) Hedge Accounting 1) Interest Related Transactions transactions of finance leases without transfer of owner- transactions of finance before April 1, 2008 have been ships which started to the same accounting treatment accounted for according leases. Besides, as for the domestic used in the operating the income and expenses for consolidated subsidiaries, leases without transfer of owner- transactions of finance and costs of ships were accounted for the sales revenue collected. goods sold when lease payments were (13) Accounting for Leases (13) Accounting for 366 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ¥165 millionand¥782 million,respectively. ests forthefiscal yearendedMarch31,2011 decreasedby profit andincomebefore taxesandminorityinter- 2008) witheffectfromApril1, 2010. Retirement Obligations”(issued byASBJonMarch31, No.21 “theGuidanceonAccounting StandardforAsset ASBJ onMarch31,2008)andImplementationGuidance Standard forAssetRetirementObligations”(issuedby (Accounting StandardforAssetRetirementObligations) statements forthefiscalyearendedMarch31,2011. 2008) fromthefiscalyearendedMarch31,2011. Using theEquityMethod”(issuedbyASBJonMarch10, Accounting PoliciesAppliedtoAssociatesAccountedfor Force No.24“PracticalSolutiononUnificationof (issued byASBJonMarch10,2008)andPracticalIssueTask Standard forEquityMethodofAccountingInvestments” (hereinafter “ASBJ”)StatementNo.16“Accounting (Accounting StandardforEquityMethod) Change inSignificantAccountingPoliciesandPractices chasing propertiesarechargedtoexpensesasincurred. taxes noteligiblefordeductionsuchasthosewithpur- using thetax-exclusionmethod.However,consumption domestic consolidatedsubsidiariesareaccountedfor (17) NationalandLocalConsumptionTaxes sidiaries, areconsideredtobecashandequivalents. cash andduefrombanksinthecaseofconsolidatedsub- cash andduefromBankofJapaninthecaseSTB, (16) ScopeofCashandEquivalentsinthe deemed immaterial. is expensedasincurredduringtheeachfiscalyearif ably determinedbyeachcasewithin20years.However,it (15) AmortizationofGoodwill Financial Data:NotestoConsolidatedStatements As comparedwiththeprevious treatment,ordinary STB hasadoptedASBJStatementNo.18“Accounting The adoptiondidnotaffecttheconsolidatedfinancial STB hasadoptedAccountingStandardsBoardofJapan National andlocalconsumptiontaxesofSTB In preparingtheconsolidatedstatementsofcashflows, Goodwill isamortizedoverthedurationthatreason- Consolidated StatementsofCashFlows “total valuationandtranslation adjustments,”respectively. presented as“valuationandtranslationadjustments” accumulated othercomprehensiveincome”werepreviously “accumulated othercomprehensiveincome”and“total March 31,2011.Theamountsofthepreviousfiscalyearas (issued byASBJonJune30,2010)fromthefiscalyearended Standard forPresentationofComprehensiveIncome” Additional Information ended March31,2011. consolidated statementofincomeforthefiscalyear “income beforeminorityinterests”ontheaccompanying (issued onSeptember21,2010)andhaspresented Ordinance forEnforcementoftheBankingAct,etc.” Cabinet OfficeOrdinanceNo.41“PartiallyRevisingthe Banking Act”(issuedin1982)whichwasrevisedby Ministry OrdinanceNo.10“OrdinanceforEnforcementof (Consolidated StatementsofIncome) Financial Statement Changes inthePresentationofConsolidated increased by¥5,013million. and incomebeforetaxesminorityinterests compared withtheprevioustreatments,ordinaryprofit embedded derivativesfromhostcontracts.Asaresult, enhanced itsexpertiseintheareaofbifurcation since STBimprovedontheadministrativestructureand results ofoperation.Theaccountingchangewasmade present moreappropriatefinancialconditionsandthe from hostcontractsandaccountedforasderivativesto 31, 2011,embeddedderivativeshavebeenbifurcated the previousfiscalyear.ForyearendedMarch gle financialinstrumentsincludedinhostcontractsuntil cated fromhostcontracts,hadbeenaccountedforassin- (Embedded Derivatives) STB hasadoptedASBJStatementNo.25“Accounting STB hasadoptedtherevisiontoAppendixFinance Embedded Derivatives,whichdonotneedtobebifur- Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 367 0 — — 247 6,448 6,797 2,246 1,230 2,906 3,818 17,119 21,434 2011 2011 2011 2011 118,139 $ 1,231 $ 7,039 $0 $ 315 Millions of Millions of Millions of Millions of $33 $ 24,910 $ 55,521 $ 141,852 U.S. Dollars U.S. Dollars U.S. Dollars U.S. Dollars 2 7 41 11,829 428,890 579,944 234,180 97,942 2010 2010 2010 2010 263,014 485,930 1,611,464 9,752,966 1,695,369 ¥— ¥ 12,856 ¥ 761,850 ¥ 97,945 ¥ 1,451,960 ¥ 4,084,091 ¥ 4,113 ¥ 11,686,629 — — 28 Millions of Yen Millions of Yen Millions of Yen Millions of Yen 20,519 186,715 536,116 565,170 2011 2011 2011 2011 102,294 241,661 317,432 9,823,279 1,782,217 1,423,481 ¥ 102,326 ¥ 585,289 ¥4 ¥ 26,195 ¥ 11,794,987 ¥ 4,616,542 ¥ 2,774 ¥ 2,071,254 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report amounted to ¥15,716 million and ¥27,270 million as of March 31, 2011 and 2010, respectively. Stocks included investments in unconsolidated sub- Loans and bills discounted as of Loans and bills discounted as of the following: March 31, 2011 and 2010 consisted Securities held as of Securities held as 31, 2011 and 2010 consisted of the following: March Trading-related Financial Derivatives Total Derivatives of Trading Securities Transactions Derivatives of Securities Related to Trading Total Derivatives of Trading Securities Derivatives of Trading Related to Trading Transactions Derivatives of Securities Trading-related Financial Derivatives Other Trading Assets Trading Account Securities Trading Account Securities Overdrafts Total Bills Discounted Loans on Bills Loans on Deeds Total Local Government Bonds Corporate Bonds Stocks Other Securities Government Bonds (2) Trading liabilities as of (2) Trading liabilities as March 31, 2011 and 2010 consisted of the following: Notes to the Consolidated Balance Sheets Notes to the Consolidated Trading Liabilities 1. Trading Assets and the following: of March 31, 2011 and 2010 consisted of (1) Trading assets as sidiaries and affiliates amounted to ¥52,906 million and ¥44,797 million, and investments in capital of partnerships 3. Loans and Bills Discounted 2. Securities 368 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements 4. AssetsPledged interest paymentsarerescheduledinordertoassistthe i) loansinbankruptcyproceedingsandii)ofwhich No.97, 1965). Ordinance fortheCorporationTaxAct”(CabinetOrder Paragraph 1,Item3and4ofArticle96“Enforcement to borrowerswhoarelegallybankruptasdefinedinthe outstanding (notincludingdirectwrite-offportionofloans) Loans andbillsdiscountedasofMarch31,20112010includedthefollowings: as “DelinquentLoans”ifborrowersarevirtuallybankrupt ¥4,113 millionasofMarch31,2011and2010,respectively. face valueofthesebillsamountedto¥2,774millionand pledge suchbillsdiscountedatitsdiscretionandthetotal regulated by“ReportNo.24.”STBholdstherighttosellor Borrowed Money Payables underSecuritiesLending Transactions Payables underRepurchaseAgreements Deposits Corresponding LiabilitiesoftheAssetsPledgedasCollateral: Other Assets Lease ReceivablesandInvestmentAssets Loans andBillsDiscounted Securities Trading Assets Assets PledgedasCollateral: Total Restructured Loans Loans morethanThreeMonthsPastDue Other DelinquentLoans Loans inBankruptcyProceedings Assets pledgedascollateralofMarch31,2011and2010 consistedofthefollowing: Other delinquentloansarenon-accrualotherthan Loans inbankruptcyproceedingsarenon-accrualloans Under STB’sSelf-AssessmentRules,STBclassifiesloans STB treatsbillsdiscountedasfinancialtransactions, months pastdue. ties excludingdelinquentloansandmorethanthree modified tosupportborrowerswhoareinfinancialdifficul- excluding loansclassifiedasdelinquentloans. months pastduefromthedatesucceedingdate, which principalorinterestpaymentsaremorethanthree restructuring ofborrowers. deducted directlyoutoftheoriginalamountclaims. collateral orthroughtheexecutionofguarantees,are amounts expectedtobecollectedthroughthedisposalof guarantees, theexpecteduncollectibleamounts,netof legally bankruptorvirtuallywithcollateral or potentiallybankrupt.Forclaimstodebtorswhoare Restructured loansarewhosetermshavebeen Loans morethanthreemonthspastdueareloansfor 162,238 ¥ 16,049 ¥ 183,667 ¥ 1,270,508 2011 2011 417,100 158,798 620,846 496,886 28,095 18,587 84,887 61,301 Millions ofYen Millions ofYen 781 — 9,178 ¥ 201,010 ¥ 313,970 ¥ 1,184,549 2010 2010 374,660 601,787 697,247 101,186 24,461 11,175 90,643 1,124 — 0 U.S. Dollars U.S. Dollars 1,951 $ 193 $ Millions of Millions of 2,209 $ 15,280 2011 2011 5,016 1,910 7,467 5,976 1,021 338 224 737 — 9 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 369 4 86 458 994 (1,274) 2011 $ 1,534 $ 2,808 $ 1,266 Millions of U.S. Dollars 231 1,618 83,314 36,302 2010 (102,509) ¥ 125,802 ¥ 106,845 ¥ 228,312 298 Millions of Yen 7,157 38,118 82,692 2011 (105,931) ¥ 233,495 ¥ 127,563 ¥ 105,229 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Net unrealized losses on revaluation, after deduction of As of March 31, 2010, securities of ¥680,002 million and As of March 31, 2010, of STB and its subsidiaries. In addition, most of these con- of STB and its subsidiaries. In addition, its subsidiaries to tracts contain clauses allowing STB and limits, when there reject requests or to reduce committed in the monetary are reasonable reasons such as changes STB and its sub- condition or needs to protect claims. necessary col- sidiaries may request customers to provide at the time of the lateral such as real estate or securities clauses or take contract, and may ask customers to amend credit thereafter measures to secure soundness of the procedures. through periodical internal monitoring the land prices specified in the Article 4 of the Act after rele- vant adjustments. Difference between the fair value and revalued book value of the land for business operations sub- ject to the Article 10 of the Act was ¥9,322 million and ¥9,246 million as of March 31, 2011 and 2010, respectively. “Deferred Tax Liabilities for Land Revaluation,” are record- ed as “Revaluation Reserve for Land” in net assets. other assets of ¥172 million were pledged mainly as collat- other assets of ¥172 for settlement of cash or margin of eral in substitution assets included margin of future future markets. Other security deposits of ¥17,281 mil- markets of ¥1,565 million, for derivatives transactions of lion and cash collateral ¥56,139 million. Subtotal Tangible fixed assets as of March 31, 2011 and 2010 consisted of the following: Tangible fixed assets as of March 31, 2011 Commitment line contracts on overdrafts and loans are Commitment line contracts on overdrafts without being Because most of these contracts expire Total tax qualified deferred gains on tangible fixed In accordance with the “Act on Revaluation of Land” (Law In addition to the items outlined above, as of March 31, In addition to the items Total Other Tangible Fixed Assets Accumulated Depreciation Buildings Land Lease Assets Construction in Progress 6. Tangible Fixed Assets agreements to extend loans up to a committed limit upon agreements to extend loans up to a committed has been no breach the customers’ request as long as there line con- of contracts. The balance of unused commitment tracts was ¥8,249,664 ¥8,224,299 million and million, includ- ing ¥6,699,229 million and ¥6,843,296 million of those either cancelable as of maturing within one year or unconditionally March 31, 2011 and 2010, respectively. line con- drawn down, the balance of unused commitment future cash flows tracts itself does not necessarily represent 5. Commitment Line Contracts on Overdrafts and Loans 5. Commitment Line Contracts on Overdrafts assets, which was allowed by the tax law, was ¥27,584 mil- lion and ¥27,650 million as of March 31, 2011 and 2010. No.34, promulgated on March 31, 1998, hereinafter the “Act”), STB revaluated land used for business operations as of March 31, 1999, based on land prices of standardized premises as specified by the Paragraph 1, Article 2 of the “Enforcement Order on Act on Revaluation of Land,” and 2011, securities of ¥649,862 million and other assets of ¥172 2011, securities of ¥649,862 mainly as collateral in substitution for million were pledged or margin of future markets. Other settlement of cash of future markets of ¥2,128 million, assets included margin ¥18,381 million and cash collateral for security deposits of of ¥55,855 million. derivatives transactions 370 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements 10. BorrowedMoney Money andother Interest-bearingLiabilities afterMarch31,2011”onpage 390. 9. Deposits 8. OtherAssets 7. IntangibleFixedAssets Total Other BorrowedMoney Subordinated Debt Total Others Time Deposits Current Deposits,OrdinaryDepositsandatNotice Total Others Receivables forSecuritiesTransactions Derivatives otherthanTradingAssets Variation MarginsofFuturesMarkets Initial MarginsofFuturesMarkets Accrued Income Prepaid Expenses Domestic ExchangeSettlementAccount,Debit Total Other IntangibleFixedAssets Goodwill Software Borrowed moneyasofMarch31,2011and2010consisted ofthefollowing: Annual maturity ofborrowedmoneyas March31,2011isdescribed in“RepaymentScheduleof Bonds,Borrowed Average interestratesoftheborrowed moneywere0.86%forthefiscalyearsendedMarch 31,2011and2010,respectively. Deposits asofMarch31,2011and2010consistedthefollowing: Other assetsasofMarch31,2011and2010consistedthefollowing: Intangible fixedassetsasofMarch31,2011and2010consistedthefollowing: 164,929 ¥ 35,419 ¥ 1,176,040 ¥ 125,000 ¥ 12,298,508 ¥ 2,329,602 ¥ 498 ¥ 1,452,168 ¥ 1,051,040 9,624,629 2011 2011 2011 2011 123,258 344,277 678,337 269,754 411,108 88,011 6,250 2,128 1,971 Millions ofYen Millions ofYen Millions ofYen Millions ofYen 357 170,043 ¥ 34,429 ¥ 1,203,651 ¥ 1,172,338 ¥ 125,000 ¥ 432 ¥ 2,058,361 ¥ 12,251,117 ¥ 1,047,338 9,897,598 2010 2010 2010 2010 133,092 676,583 407,670 295,158 35,420 79,200 2,520 1,565 2,225 553 U.S. Dollars U.S. Dollars U.S. Dollars U.S. Dollars 1,984 $ 426 $ 14,144 $ 1,503 $ 28,017 $ 17,464 $ $6 147,908 $ Millions of Millions of Millions of Millions of 115,750 2011 2011 2011 2011 12,640 1,482 8,158 3,244 4,944 1,058 4,140 75 26 24 4 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 371 3 25 31 529 661 661 264 453 3,198 2,967 2,685 5,231 1,206 1,736 1,329 2011 2011 $ 7,627 $ 10,961 $5 $ 5,231 Millions of Millions of U.S. Dollars U.S. Dollars — — 500 8,452 4,836 69,000 16,000 16,000 26,502 2010 2010 344,900 101,915 170,915 355,468 110,746 264,464 ¥ 531,815 ¥ 344,900 ¥ 771,305 ¥ 333 Millions of Yen Millions of Yen 231 2,117 2,569 21,933 37,682 44,000 55,000 55,000 2011 2011 110,526 265,924 246,713 223,278 434,917 100,307 144,307 ¥ 911,381 ¥ 402 ¥ 434,917 ¥ 634,225 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report under the shelf registration system for the domestic under the shelf registration system 31, 2011, STB issuance. For the fiscal year ended March bonds, bearing issued ¥50,000 million and ¥40,000 million on July 23, fixed interest at 1.55% and 1.37%, respectively, 2010 and November 11, 2010. Subtotal Subtotal Subtotal Borrowed money from trust account represents surplus funds in the trust accounts loaned to the banking account and surplus funds in the trust accounts loaned to the banking account Borrowed money from trust account represents Other liabilities as of March 31, 2011 and 2010 consisted of the following: Annual maturity of bonds payable as of March 31, 2011 Annual maturity of bonds payable as bonds STB has publicly issued unsecured subordinated Bonds Payable as of March 31, 2011 and 2010 consisted of the following: March 31, 2011 and 2010 consisted of Bonds Payable as of Payables for Securities Transactions Others Total Derivatives other than Trading Liabilities Lease Obligations Asset Retirement Obligations Accrued Expenses Unearned Income Variation Margins of Futures Markets Domestic Exchange Settlement Account, Credit Income Taxes Payable Total Sumishin Panasonic Financial Services Co., Ltd. Sumishin Panasonic Financial Services Co., Unsecured Bonds STB Finance Cayman Limited STB Finance Cayman Euro Perpetual Subordinated Notes Euro Medium-term Subordinated Notes The Sumitomo Trust and Banking Company, Ltd. The Sumitomo Trust Bonds Unsecured Subordinated utilized herein. 12. Borrowed Money from Trust Account 13. Other Liabilities is described in “Repayment Schedule of Bonds, Borrowed is described in “Repayment Schedule after March Money and other Interest-bearing Liabilities 31, 2011” on page 390. 11. Bonds Payable 372 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements (1) TradingincomeforthefiscalyearsendedMarch31,2011 and2010consistedofthefollowing: 2. TradingIncomeandExpenses (1) OtherinterestincomeforthefiscalyearsendedMarch31,2011and2010consistedoffollowing: 1. OtherInterestIncomeandExpenses Notes toConsolidatedStatementsofIncome (2) OtherinterestexpensesforthefiscalyearsendedMarch31,2011and2010consistedoffollowing: at theendofMarch31,2011and2010,respectively. offered (subjecttotheParagraph3,Article2ofFIEA) corporate bondsin“Securities”whichwereprivately loan trustsasofMarch31,2011and2010,respectively. lion forJOMTs,¥19,603millionand¥73,486 the principalamountof¥558,721millionand¥584,105mil- and representsSTB’srightofindemnityfromcustomers. and guaranteesisshownasanassetonthebalancesheets As acontraaccount,customers’liabilitiesforacceptances teed trusts,areincludedinacceptancesandguarantees. guarantees, otherthanthoserelatingtoprincipalguaran- 14. AcceptancesandGuarantees Total Other TradingIncome Income fromTrading-relatedFinancial DerivativesTransactions Income fromTrading-relatedSecurities andDerivatives Income fromTradingSecuritiesandDerivatives Total Other InterestIncome Interest IncomeonRateSwaps Total Other InterestExpenses STB guaranteed¥100,753millionand¥91,029of Regarding principalguaranteedtrusts,STB All contingentliabilitiesarisingfromacceptancesand March 22,2011. according totheresolutionofBoardDirectorson unfinished isasfollows: been approvedbytheBoardofDirectorsbutremained 15. TreasuryStock Number ofTreasuryStock Type Book ValueofTreasuryStock All treasurystockswerecancelledonApril1,2011 The detailofthetreasurystockwhosecancellationhad 89 ¥ 2,753 ¥ 2,753 ¥ 13,816 ¥ 7,246 ¥ 11,559 ¥ 10,889 2011 2011 2011 6,569 581 Millions ofYen Millions ofYen Millions ofYen — 15,672 ¥ 130 ¥ 2,874 ¥ 2,874 ¥ 22,897 ¥ 16,793 ¥ 13,630 2010 2010 2010 1,793 6,104 118 591 thousandshares Common Share ¥482 million U.S. Dollars U.S. Dollars U.S. Dollars Millions of Millions of Millions of 139 $ $1 33 $ 33 $ 166 $ 87 $ 2011 2011 2011 131 79 — 7 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 373 7 0 2 0 — 17 65 381 344 219 3,756 3,175 2011 2011 2011 2011 $1 $1 $1 $ 39 $ 444 $ 4,150 $47 $ 3,459 $— Millions of Millions of Millions of Millions of U.S. Dollars U.S. Dollars U.S. Dollars U.S. Dollars 435 1,828 6,486 2,174 1,355 7,330 3,975 10,045 19,773 32,344 2010 2010 2010 2010 276,804 316,380 ¥— ¥— ¥ 3,868 ¥ 299,033 ¥ 13,422 ¥ 44,491 ¥— ¥ 352,699 0 — 22 Millions of Yen Millions of Yen Millions of Yen Millions of Yen 600 205 5,412 1,389 18,218 28,590 31,709 2011 2011 2011 2011 263,974 312,312 ¥¥ 72 72 ¥ 287,606 ¥ 3,204 ¥ 345,057 ¥— ¥ 3,948 ¥ 36,925 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report For the fiscal year ended March 31, 2011 and 2010, others mainly consisted of lease expenses that consolidated sub- For the fiscal year ended March 31, 2011 and 2010, others mainly consisted For the fiscal years ended March 31, 2011 and 2010, others mainly consisted of lease income that consolidated sub- 2011 and 2010, others mainly consisted of lease income that consolidated For the fiscal years ended March 31, Total Recoveries of Written-off Claims Reversal of Allowance for Loan Losses Others Gains on Sales of Stocks and Other Securities Gains on Money Held in Trust Gains on Dispositions of Fixed Assets Expenses on Derivatives other than Trading or Hedging Expenses on Derivatives other than Trading Others Total Net Losses on Foreign Exchange Transactions Net Losses on Foreign Exchange Transactions Losses on Sales of Bonds Losses on Redemption of Bonds Gains on Sales of Bonds Gains on Redemption of Bonds Others Total Net Gains on Foreign Exchange Transactions Net Gains on Foreign Exchange Transactions Total Expenses on Securities and Derivatives Related to Trading Transactions and Derivatives Related to Trading Transactions Expenses on Securities 4. Other Income and Expenses of the following: (1) Other income for the fiscal years ended March 31, 2011 and 2010 consisted (2) Other ordinary expenses for the fiscal years ended March 31, 2011 and 2010 consisted of the following: (2) Other ordinary expenses for the fiscal 3. Other Ordinary Income and Expenses 3. Other Ordinary Income 31, 2011 and 2010 consisted of the following: for the fiscal years ended March (1) Other ordinary income (2) Trading expenses for the fiscal years ended March 31, 2011 and 2010 consisted of the following: for the fiscal years ended March 31, (2) Trading expenses sidiaries recognized. sidiaries recognized. 374 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. related totheintegrationbetweenSTBandChuo ment inassociationsand¥3,233millionofexpenses using discountatarateof8.5%. value inuse,andisthepresentoffuturecashflows impairment loss. ed recoverablevalue,forwhichSTBaccountedasan wrote downofbookvaluethegoodwilltoestimat- Life HousingLoan,Ltd),STBassessedFC’sbusinessand and SumishinRealEstateLoan&Finance,Limited(former: mum independentcash-flow-generatingunit. inafter “FC”).STBconsideredthebusinessofFCasamini- investment initssubsidiary,FirstCreditCorporation(here- losses onimpairmentofgoodwillwasrecordedforSTB’s of gainsonreturnthesubstitutionalportionemploy- stock-related derivativestransactionsand¥18,322million overseas creditinvestment,¥1,776millionofgainson million ofgainsonsalessecuritiesfordomesticand ed ¥2,655millionofequityinearningsaffiliates,¥1,847 (2) OtherexpensesforthefiscalyearsendedMarch31,2011and2010consistedoffollowing: Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements Total Others Losses onImpairmentofGoodwill Losses onImpairmentofFixedAssets Losses onDispositionsofFixedAssets Losses onMoneyHeldinTrust Losses onDevaluationofStocksandOtherSecurities Losses onSalesofStocksandOtherSecurities Written-off Loans Allowance forLoanLosses Others included¥10,649millionoflossesoninvest- The recoverableamountofthegoodwillisbasedon With abusinessrestructuringofSTB’ssubsidiaries,FC millionof For thefiscalyearendedMarch31,2011,¥6,041 For thefiscalyearendedMarch31,2011,othersinclud- flows usingdiscountatarateof9.25%. value inuse,andwasthepresentoffuturecash value, forwhichSTBaccountedaslossofimpairment. book valueofthegoodwilltoestimatedrecoverable FC forthefiscalyear2010onward,andwrotedownofits Based onthecondition,STBrevisedearningsforecastof real estate-securedloanshavecomeshortofitstarget. tions, theamountofloanoriginationsandbalance cash-flow-generating unit. considered thebusinessofFCasaminimumindependent recorded forSTB’sinvestmentinitssubsidiary,FC.STB ¥34,438 millionoflossesonimpairmentgoodwillwas ed ¥8,970millionoflossesoninvestmentinassociations. Mitsui TrustHoldings,Inc(hereinafter“CMTH”). repurchased onMay26,2009. Finance CaymanLimitedonMay29,2009,werepartially inated perpetualsubordinatedbondsissuedbySTB ¥9,083 millionofgainonpartialretirementGBPdenom- pensionfund. ees’ The recoverablevalueofthegoodwillwasbasedon With continuousstagnationofrealestatemarketcondi- For thefiscalyearendedMarch31,2010,othersinclud- For theyearendedMarch31,2010,othersincluded 84,797 ¥ 12,877 ¥ 2011 35,269 16,604 6,041 3,622 1,010 6,941 2,314 116 Millions ofYen 85,738 ¥ ¥— 2010 23,671 34,438 18,743 2,058 6,332 443 51 — U.S. Dollars Millions of 1,020 $ 155 $ 2011 424 200 73 44 12 83 28 1 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 375 681 3,428 11,580 13,787 1,273 1,398 107,794 176,454 2010 2010 2011 $ 2,780 ¥ 123,484 ¥ 190,241 $ 110 Millions of U.S. Dollars Millions of Yen Millions of Yen 2010 103,686 111,874 ¥ 6,783 ¥ 222,344 Millions of Yen 2011 105,829 116,215 ¥ 9,129 ¥ 231,174 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report The maximum amount that STB is able to distribute as 100% of common share. Legal retained earnings and addi- tional paid-in capital could be used to eliminate or reduce a deficit, or could be capitalized generally require a reso- lution of the shareholders’ meeting. All additional paid-in capital and all legal retained earnings may be transferred to other capital surplus or retained earnings, which are potentially available for dividends. dividend subject to the approval of shareholders is calcu- lated based on the non-consolidated financial statements of STB in accordance with the Companies Act of Japan. Comprehensive Income Attributable to Owners of the Parent Comprehensive Income Attributable to Owners Interests Comprehensive Income Attributable to Minority Deferred Gains or Losses on Hedges Foreign Currency Translation Adjustment Attributable to Equity Method Affiliates Valuation Difference on Available-for-Sale Securities Valuation Difference on Available-for-Sale General and administrative expenses for the fiscal years ended March 31, 2011 and 2010 consisted of the following: March 31, 2011 and 2010 consisted expenses for the fiscal years ended General and administrative Under the Companies Act of Japan, the entire amount The Banking Act of Japan provides that an amount Other comprehensive income for the fiscal year ended March 31, 2010 consisted of the following: Other comprehensive income for the fiscal Comprehensive income for the fiscal year ended March 31, 2010 consisted of the following: Comprehensive income for the fiscal year Comprehensive Income: Other Comprehensive Income: Total Taxes other than Income Taxes Taxes other than Income Personnel Expenses Others 5. General and Administrative Expenses 5. General and Administrative of the issue price of shares is required to be accounted for as capital, although a company may, by a resolution of its Board of Directors, account for an amount not exceeding one-half of the issue price of the new shares as additional paid-in capital, which is included in capital surplus. equal to at least 20% of cash dividends and other cash appropriations shall be appropriated and set aside as a legal retained earnings until the sum of legal retained earnings and additional paid-in capital becomes equal to Notes to Consolidated Statements of Changes in Net Assets 1. Shareholders’ Equity Notes to Consolidated Statements of Comprehensive Income Notes to Consolidated Statements of 1. Other Comprehensive Income 2. Comprehensive Income 376 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements 2. IssuedSharesandTreasuryStock odd-lot stocks. sand sharesduetorequestsforadditionalpurchaseof redemption ofodd-lotstocksanddecreasedby2thou- increased by37thousandsharesduetorequestsfor March 31,2010 March 31,2011 Issued sharesandtreasurystockforthefiscalyearsendedMarch31,20112010consistedoffollowing: For thefiscalyearendedMarch31,2010,TheFirst For thefiscalyearendedMarch31,2011,treasurystock Treasury Stock: Total Number ofIssuedShares: Treasury Stock: Total Number ofIssuedShares: Common Share The FirstSeriesofClass2PreferredShares Common Share Common Share The FirstSeriesofClass2PreferredShares Common Share Authorized 3,200,000 3,000,000 3,200,000 3,000,000 200,000 200,000 Outstanding attheEndof Number ofShares additional purchaseofodd-lotstocks. and decreasedby8thousandsharesduetorequestsfor shares duetorequestsforredemptionofodd-lotstocks allotment andtreasurystockincreasedby39thousand thousand sharesduetoissuancebywayofthird-party Series ofClass2PreferredSharesincreasedby109,000 Previous Period 1,675,128 1,675,128 1,784,128 1,675,128 109,000 525 556 — Thousands ofShares Increase 109,000 109,000 37 39 — — — — Decrease — — — — — — 8 2 Outstanding attheEndof Number ofShares Current Period 1,784,128 1,675,128 1,784,128 1,675,128 109,000 109,000 556 591 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 377 2011 2011 June 30, June 30, June 29, 2009 June 30, 2010 June 30, 2010 December 3, 2010 December 3, 2010 December 4, 2009 December 4, 2009 2011 2011 March 31, March 31, Record Date Effective Date March 31, 2009 March 31, 2010 March 31, 2010 September 30, 2010 8.00 September 30, 2010 September 30, 2009 September 30, 2009 Yen 21.15 per Share Cash Dividends Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial 1.50 5.00 3.13 6.00 5.00 Yen 21.15 21.15 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report per Share Cash Dividends Earnings Earnings Retained Retained Resources Allotted for the Distribution 341 8,372 2,305 2,305 2,511 8,372 of Shareholders. In addition to year-end dividends, interim of Shareholders. In may be decided by the Board dividends to shareholders 30 of each year. of Directors as of September 10,047 Declared Millions of Yen Cash Dividends 2,305 13,396 Declared Millions of Yen Cash Dividends of Class 2 of Class 2 of Class 2 Type of Shares Record Date Effective Date The First Series The First Series The First Series Common Share Common Share Common Share Common Share Preferred Shares Preferred Shares Preferred Shares of Class 2 Type of Shares The First Series Common Share Preferred Shares of Shareholders of Shareholders of Shareholders June 28, 2011 Ordinary General Meeting June 26, 2009 Ordinary General Meeting November 13, 2009 Board of Directors’ Meeting Board of Directors’ Meeting November 12, 2010 June 29, 2010 Ordinary General Meeting For the year ended March 31, 2011, dividends, whose record date is during this period and whose effective date of dis- For the year ended March 31, 2011, dividends, whose record date is during this Under STB’s articles of incorporation, financial accounts Under STB’s articles Dividends paid during fiscal year ended March 31, 2011 and 2010 consisted of the following: fiscal year ended March 31, 2011 and Dividends paid during Resolution Resolution March 31, 2010 March 31, 2011 tribution is after the end of this period, are as follows: are closed on March 31 of each year, and dividends, if any, are closed on March who are recorded as of March 31 are paid to shareholders of the Ordinary General Meeting according to a resolution 3. Dividends 378 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements 3) Provisionforlessee’simpairmentlossesonunrecognizedfinanceleaseassetsattheendofperiods 2) Totalfutureleasepayments 1) Acquisitioncosts,accumulateddepreciation,lossesonimpairmentandnetbookvalue As lessee: operating leases (2) Transactionsoffinanceleaseswithouttransferownershipsaccountedforusingthesameaccountingtreatment as and Practices”onpage363. 2) DepreciationMethodsofLeaseAssets 1) LeaseAssets As lessee: (1) Financeleaseswithouttransferofownerships 1. FinanceLeases Lease Transactions cash andduefrombanksinthebalancesheetsasofMarch31,20112010. 1. ReconciliationofCashandEquivalents Notes toConsolidatedStatementsofCashFlows Cash andEquivalents Due fromBanks(excludingduetheBankofJapan) Cash andDuefromBanks There werenoprovisionsforlessee’simpairmentlossesonunrecognized financeleaseassetsasofMarch31,2011and2010. There werenofutureleasepaymentsasofMarch31,2011and2010. There werenoaccountingbalancesasofMarch31,2011and2010. See describedabove“(4)DepreciationMethods”of“5.AccountingPolicies”inthe“SignificantPolicies Instruments ofofficeautomationandothers The followingtableshowsthereconciliationbetweencashandequivalentsinstatementsofflows, 346,030 ¥ 704,625 ¥ (358,595) 2011 Millions ofYen 636,398 ¥ 970,869 ¥ (334,470) 2010 U.S. Dollars Millions of 4,162 $ 8,474 $ 2011 (4,313) Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 379 — — — 40 905 2011 2011 2011 $ 77 $ 117 $ 509 $ 1,414 $— Millions of Millions of Millions of U.S. Dollars U.S. Dollars U.S. Dollars 0 — — 9,078 2010 2010 2010 37,148 ¥ 16,024 ¥ 6,945 ¥ 30,906 ¥ 68,054 ¥0 — — — Millions of Yen Millions of Yen Millions of Yen 3,309 75,290 2011 2011 2011 ¥ 6,433 ¥ 9,742 ¥ 42,301 ¥ 117,592 ¥— Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report on Unrecognized Finance Lease Assets Total future lease payments under non-cancelable operating leases as of March 31, 2011 and 2010 were as follows: Total future lease payments under non-cancelable Total future lease payments receivable under non-cancelable operating leases as of March 31, 2011 and 2010 were as follows: Total future lease payments receivable under non-cancelable operating leases as Estimated annual depreciation expenses are computed using the straight-line method over the lease term assuming Estimated annual depreciation expenses Annual lease payments, reversal of provision for lessee’s impairment losses on unrecognized finance lease assets, estimat- losses on unrecognized finance reversal of provision for lessee’s impairment Annual lease payments, mated annual depreciation expenses and impairment losses mated annual depreciation Total Due in One Year or Less Due more than One Year Total Due in One Year or Less Due more than One Year Estimated Annual Depreciation Expenses Estimated Annual Depreciation Expenses Impairment Losses Annual Lease Payments Annual Lease Payments for Lessee’s Impairment Losses Reversal of Provision 2. Operating Leases As lessee: As lessor: 5) Computing methods for estimated annual depreciation expenses 5) Computing methods for estimated annual no salvage value for the fiscal year 2010. ed annual depreciation expenses and impairment losses for the fiscal years ended March 31, 2011 and 2010 were as follows: the fiscal years ended March 31, 2011 expenses and impairment losses for ed annual depreciation 4) Annual lease payments, reversal of provision for lessee’s impairment losses on unrecognized finance lease assets, esti- losses on unrecognized finance reversal of provision for lessee’s impairment Annual lease payments, 4) 380 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ation risks. risks, interestratefluctuation risksandmarketpricefluctu- purposes. Thesesecuritiesare exposedtoissuers’credit ing tomaturity,investing,andforstrategicinvestment ment trust,andareheldforpurposeofSTBGroup’shold- credit riskarisingfromdefaultsofcontractsbycustomers. corporations andindividuals,forwhichSTBareexposedto 2) BankingAccount price fluctuationrisks,creditrisksandotherrisks. risks, foreignexchangeratefluctuationsecurities These derivativesareexposedtointerestratefluctuation and listedderivativesinadditiontotradingsecurities. 1) TradingAccount (2) RisksofFinancialInstruments some ofoursubsidiariesalsotradesecurities. of OrdinanceforEnforcementBankingAct.Inaddition, “Banking Account”pursuanttoArticle13,Paragraph6.3 derivatives, anddistinguishes“TradingAccount”from fluctuation risks. enters intoderivativestransactionstohedgeinterestrate those risksonaconsolidatedbasisand,inaddition,STB Liability Management(ALM),STBmanagesandcontrolls interest ratefluctuationrisks.TocarryoutAssetand STB’s financialassetsandliabilitiesaremainlyexposedto then usedtomainly,investinloansandsecurities.Thus deposits, borrowedmoney,andbonds.Thesefundsare funds fromindividualsandcorporationsbymeansof estate andinvestmentservices. also engagedincommercialandretailbanking,real core businessistrustbanking.STBGroup (1) InvestingandFundingPolicyforFinancialInstruments 1. OutlineofFinancialInstruments Financial Instruments Financial Data:NotestoConsolidatedStatements Securities mainlyconsistofstocks,bonds,andinvest- Major financialassetsofSTBGroupareloanstodomestic STB Grouptradesover-the-counter(hereinafter“OTC”) STB alsooperatestradingactivitiesofsecuritiesand Through thesebusinesses,STBGroupmainlyraises STB Groupprovidesfinancialservicesofwhichthe tuation risks,creditandotherrisks. foreign exchangeratefluctuationrisks,marketpricefluc- accounting areexposedtointerestratefluctuationrisks, “Significant AccountingPoliciesandPractices.” instruments. forward liabilitiesinaforeigncurrencybasisashedging (other thanbonds)usingspotliabilitiesandpotionof able-for-sale securitiesdenominatedinforeigncurrencies mitigate foreigncurrencyexchangerateexposureinavail- hedging instruments. ing tothehedgeditemsusingcurrencyswapsas inated inforeigncurrencies,STBapplieshedgeaccount- arising fromvariousfinancialassetsandliabilitiesdenom- each transaction. bilities, STBalsoapplieshedgeaccountingbasedon swaps ashedginginstruments.Inapartofassetsandlia- risks, andapplieshedgeaccountingusinginterestrate them accordingtoattributionofinterestratefluctuation comprehensive administrationframework,categorizes deposits, STBtreatsthoseassetsandliabilitieswithinthe arising fromvariousassetsandliabilities,suchasloans, prices, bondandcreditspreads. related tointerestrates,foreignexchangestock environment suchaslackofmarketliquidity. repayment attheseduedatescausedunderparticular expose STBGrouptoliquidityrisksdueincapabilityof money, andbondsareprimarysourcesoffunding Derivatives whichdonotmeetrequirementsofhedge The detailsofhedgeaccountingaredescribedin STB alsoappliesfairvaluehedgesasportfoliohedgeto To manageforeignexchangeratefluctuationrisks, To manageinterestratefluctuationrisks,amajorrisk, STB entersintoOTCandlistedderivativestransactions Deposits fromindividualsandcorporations,borrowed Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 381 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report The Board of Directors decides on important mat- The Board of Directors STB recognizes market risks as the source of profits, ters related to credit risk management when establish- ters related to credit management plans. Based on ing its semiannual risk management, the Board of reports on credit the credit strategy and economic Directors decides on “Self-Assessment Rules,” capital plan, and approves the soundness of assets. As for and STB ensures of projects, the screening and credit management I&II segregated Global Credit Supervision Department from branches stand apart and check-and-balance the Research framework performs. Furthermore, on industry Department applies credit ratings based of individual research and research on credit strength Councils companies along with quantitative analysis. Credit Risk such as Executive Committee, the also deliberate Committee which take place regularly, credit risks. material matters of managing/operating discussion, Check-and-balance framework, councils’ risk manage- and more, the validation of this credit Management ment/operation by the Corporate Risk management Department builds up appropriate framework of risk management. and STB’s basic management policy is to proactively take risks within the allowable range and appropriately manage them in a manner that can maximize returns. Market risk is the risk that changes in market prices, Market risk is the risk that changes (b) Risk Framework of Credit Risk Management 2) Management of Market Risk such as interest rates, equity prices and foreign exchange rates, commodities and credit spreads will affect STB Group’s income or the value of its holdings of financial assets/liabilities. (a) Risk Management Policy The basic policy of STB’s credit risk management The basic policy of STB’s credit risk exposures For the former, STB places limits on credit For the latter, STB manages individual credits calls for “a diversified credit portfolio” and “strict cred- calls for “a diversified credit portfolio” it management for individual credits.” the impact of of each customers, and also look into credit risk realization of large obligors and particular, the degree of concentration in industry sectors with large credit exposures. And more, STB makes efforts to mitigate credit concentration risk by managing, on a country-by-country basis, the diversification of the over- all credit portfolio. through credit screening, self-assessment and internal credit ratings. Credit ratings that indicate the credit sta- tus of obligor and the gradual possibility of defaults provide the basis for credit screening of individual transactions and credit portfolio management. Through that self-assessment, STB evaluates continu- ously its customer’s financial condition, cash schedule, repayment capacity based on earning capacity, and collectability of receivables. The basis of risk management is to ensure the effective- The basis of risk management framework of each risk category is The risk management to STB Group if a Credit risk is the risk of financial loss ness of PDCA (Plan, Do, Check, Action) cycles for each risk ness of PDCA (Plan, to the “Risk Management Policy” set category according by the Board of Directors. as below: Risk 1) Management of Credit instrument fails to customer or counterparty to a financial arises principally meet its contractual obligations, and to customers and from STB Group’s loans and advances STB Group other banks investments in debt securities. consolidating major manages credit risk considering and as individual obligor elements of credit risk exposure, such is also stepping default risk, country and sector risk, and risk management up STB efforts to make STB credit to meet new, framework more sophisticated, and eager to diversify STB but sound capital demand, and continue foundations. credit portfolios and build stronger client (a) Risk Management Policy (3) Risk Management Framework of Financial Instruments (3) Risk Management 382 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ManagementFrameworkofMarketRisk Risk (b) Financial Data:NotestoConsolidatedStatements (c) Market RiskManagementApproach Market (c) ALM CommitteeaswelltheBoardofDirectors. ALM Committeeonadailybasis,andperiodicallytothe department reportsitsfindingstothemembersof also monitorsthestatusofrisklimitsandlosslimits.The and promotingmarketriskmanagementmeasures.It uring ofriskamountandprofits/losses,planning market riskmanagedundertheALMBasicPlan,meas- Department includesthemonitoringofconditions related tomarketrisk. assets/liabilities aswellariskmanagementplan wide comprehensiveriskoperationalmanagementfor Committee planstheALMBasicPlanoncompany- plan referredbytheALMCommittee.The decides theALMBasicPlanandariskmanagement plans. TheExecutiveCommitteedeliberatesand tant mattersrelatedtomarketrisksundermanagement ALM BasicPlanandariskmanagementplanasimpor- sidering thecorrelationbetween thesecategories. risk bysimplyaddingupallcategorieswithoutcon- rate fluctuationrisksandothers.STBcalculatesmarket ation risks,stockpricefluctuationforeignexchange gory, marketriskcanbeclassifiedintointerestratefluctu- risks andothers)suchasinoptiontransactions.Bycate- simulation methodsforcalculatingsomerisks(nonlinear method, andatthesametimealsouseshistorical indicators andbycarryingoutvarioussimulations. ages risksbycalculatingvariousriskmanagement oped bySTBGroup,measuresVaRandalsoman- specific conditions.Basedontheinternalmodeldevel- tistically predictthemaximumexpectedlossesunder historical actualmarketfluctuationperformancetosta- measure andcontrolmarketriskexposures.VaRuses The roleoftheCorporateRiskManagement The BoardofDirectorsapprovesanddeterminesthe VaR basicallyemploysthevariance-covariance STB employsValueatRisk(hereinafter“VaR”)to was ¥223,983millioninaggregate. for thebankingaccount(estimatedvalueofpotentialloss) rates, andeitherofoneorfiveyearsforstockprices. used is260businessdaysforinterestandforeignexchange and confidenceintervalof99%).Typicalobservationperiod exposure, respectively(holdingperiodof21businessdays for interest/foreignexchangeexposuresandstockprice simulation methodaretheprimarymeasurementmethods Account.” Thevariance-covariancemethodsandhistorical financial assetsandliabilitiesheldinthe“Banking (Banking Account) some instancesnotproperlycapturethoserisks. mate theprobabilityofextrememarketmovementsandin ed basedonpastmovementvolatility,itmayunderesti- market riskundercertainprobabilitiesstatisticallycalculat- cient accuracy.However,asVaRmeasurestheamountof ment modelusedproperlycapturesmarketriskwithsuffi- excess ofVaR;thereforeweconsiderthatthemeasure- resulted innoinstanceofwhoseactuallosseswere back testingforthefiscalyearendedMarch31,2011 nal modelVaRcalculationwithactualprofitandloss.The was ¥1,051millioninaggregate. for thetradingaccount(estimatedvalueofpotentialloss) 99%, andtypicalobservationperiodof260businessdays). (holding periodofonebusinessday,confidenceinterval covariance methodastheprimarymeasurement Account.” IncalculatingVaR,ithasadoptedthevariance- est relatedderivativestransactionsheldinthe“Trading trading securitiesandforaportionofcurrencyinter- (Trading Account) (d) QuantitativeInformationrelatedtoMarketRisk As ofMarch31,2011,STBGroup’smarketriskamount STB GroupperformsriskmanagementusingVaRfor STB Groupperformsbacktestingtocompareitsinter- As ofMarch31,2011,STBGroup’smarketriskamount STB GroupperformsriskmanagementusingVaRfor Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 383 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report STB manages funding risk on a daily basis by setting STB manages funding above, STB In addition to the management described an upper limit on the daily financing gap (the amount an upper limit on the and check whether future financing of funds required) investment amounts, can be gaps, including planned easily convertible into cash and covered by assets from the market, and conduct moni- funds to be raised cash flow. toring to ensure proper various scenarios performs liquidity stress tests based on overall market which assume stress unique to STB and situations stress. STB confirms that even if unexpected STB has also occur, there are sufficient liquid assets. managing fund- established three different scenarios for and “times ing risk — “normal times,” “times of concern” financing liquidity of emergency” — depending on the plans for condition, and developed liquidity contingency the “times of concern” and “times of emergency.” The fair values of financial instruments traded in markets The fair values of financial instruments (c) Management Approach Liquidity Risk Fair Value of (4) Supplementary Explanation about Financial Instruments financial instru- are based on quoted market prices. Other available, the fair ments, for which no market prices are values. Some pre- values include the rationally calculated rationally calculat- requisites are adopted to measure the ed values, and the use of different prerequisites, such as methodologies or assumptions, could lead to different measurements of fair value. STB Group’s approach in managing liquidity risk is to STB Group’s approach in managing liquidity determines the The Board of Directors approves and The role of Corporate Risk Management Department have sufficient liquidity to meet its liabilities when they have sufficient liquidity to meet its liabilities conditions. fall due under both normal and stressed plan as impor- ALM Basic Plan and a risk management as market risk tant matters related to liquidity risk as well Committee under management plans. The Executive Plan and a risk deliberates and decides the ALM Basic management plan referred by the ALM Committee. The ALM Committee plans the ALM Basic Plan and a risk management plan related to liquidity risk. includes the monitoring of conditions of liquidity risks managed under the ALM Basic Plan, and planning and promoting liquidity risk management measures. The department reports its findings to the members of the ALM Committee, and periodically to the ALM Committee as well as the Board of Directors. Liquidity risk is the risk that STB Group will encounter Liquidity risk is the risk that STB Group STB Group performs back testing for the banking STB Group performs difficulty in meeting obligations associated with its finan- difficulty in meeting obligations associated cash or another cial liabilities that are settled by delivering mismatches financial asset. This can arise due to maturity an unexpected between investment and funding and/or outflow of funds (funding risk). (a) Risk Management Policy (b) Risk Management Framework of Liquidity Risk 3) Management of Liquidity Risk account as well, to compare its internal model VaR calcula- account as well, to and loss for the financial assets and tion with actual profit the measurement. We consider that liabilities subject to model used properly captures market the measurement However, as VaR measures the risk with sufficient accuracy. risk under certain probabilities statisti- amount of market on past movement volatility. cally calculated based 384 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. *)Asforderivatives,both amountsintradingassets/liabilitiesandother assets/liabilitiesonthebalancesheets arestate (*3) Asforloansandbills discounted,STBdeductsgeneralallowance forloanlossesandspecificallowance forloanlosses. (*2) *)Asfor Allowanceforcreditlossescashandduefrombanks,monetaryclaimsbought, andleasereceivablesinvestmen (*1) as theirfairvalues. stocks, areexcludedfromthetable.(Pleaseseeafootnote(Note2)). as ofMarch31,2011and2010.Apartfinancialinstruments,forwhichnofairvaluesareobtainablesuchunlisted 2. FairValuesofFinancialInstruments Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements 5 Payables underSecurities (5) Total Derivatives Derivatives (*3) Total Liabilities BorrowedMoneyfrom TrustAccount (10) Bonds Payable (9) Short-termBondsPayable (8) ForeignExchanges (7) BorrowedMoney (6) Payablesunder (4) Call MoneyandBillsSold (3) Negotiable CertificatesofDeposit (2) Deposits (1) Total Assets LeaseReceivablesand (10) ForeignExchanges (9) Loans andBillsDiscounted (8) Securities (7) Money HeldinTrust (6) Trading Assets (5) Monetary ClaimsBought(*1) (4) Receivablesunder (3) Call LoansandBillsBought (2) Cash andDuefromBanks(*1) (1) For thefinancialinstrumentsheldbysubsidiarieswhichamountsareimmaterial,carryingregarded A tablebelowshowsbookvalues,fairvaluesanddifferencebetweenvalueoffinancialinstruments their bookvalues. Derivative Transactions Derivative Transactionsnot Qualifying forHedgeAccounting Qualifying forHedgeAccounting Lending Transactions Repurchase Agreements Investment Assets(*1) Allowance forLoanLosses(*2) Available-for-sale Securities Held-to-maturity DebtSecurities Trading Securities Resale Agreements 284,518 ¥ 704,556 ¥ Book Value 18,000,448 12,298,508 18,289,631 11,709,587 11,794,987 2,222,110 1,176,040 4,026,377 120,613 163,904 431,710 634,225 408,608 158,798 620,846 603,824 422,667 343,627 414,516 (85,399) 49,569 10,228 33,260 15,326 5,658 30 284,518 ¥ 704,556 ¥ 18,027,636 12,303,912 18,488,244 11,846,573 Fair Value 2,222,110 1,185,996 4,026,377 2011 120,613 163,904 431,710 646,053 408,608 158,798 620,846 615,222 472,490 343,627 414,922 49,569 10,228 33,260 15,326 5,658 30 ¥— ¥— Difference 136,985 198,612 11,397 49,823 27,187 11,828 9,956 5,403 405 Millions ofYen — — — — — — — — — — — — — — — 308,323 ¥ 970,811 ¥ Book Value 17,857,132 12,251,117 18,190,730 11,587,128 11,686,629 d onanetbasis. 1,172,338 2,350,884 3,365,042 105,230 203,093 430,969 531,815 438,667 546,618 498,787 475,452 601,787 644,505 (99,501) 10,345 86,485 79,519 5,553 t assets,STBdeductsallowancesdirectly from 31 — — 308,323 ¥ 970,811 ¥ Fair Value 17,877,359 12,249,932 18,373,806 11,704,466 1,184,449 2,350,884 3,365,042 2010 105,230 203,093 430,969 541,117 438,667 600,355 498,787 475,514 601,787 656,442 10,345 86,485 79,519 5,553 31 — — ¥— ¥— Difference 183,075 117,338 20,227 12,110 11,937 53,737 (1,184) 9,302 62 — — — — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 385 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 5 — — — — — — — — — — — — — — — 65 137 599 327 142 120 1,647 2,389 $— $— Difference 0 68 596 123 184 400 4,914 7,770 5,192 1,971 1,451 7,399 7,467 1,910 5,682 4,990 4,133 14,263 48,423 26,724 2011 216,809 142,472 222,348 147,972 Fair Value $ 3,422 $ 8,473 Millions of U.S.Dollars 0 68 596 184 400 123 7,262 4,914 7,627 5,192 1,971 1,451 7,467 1,910 4,985 4,133 5,083 (1,027) 26,724 14,144 48,423 219,959 147,908 216,482 140,825 141,852 $ 3,422 $ 8,473 Book Value Qualifying for Hedge Accounting Qualifying for Hedge Accounting Repurchase Agreements Lending Transactions Investment Assets (*1) Held-to-maturity Debt Securities Available-for-sale Securities Allowance for Loan Losses (*2) Resale Agreements Trading Securities Derivative Transactions not Derivative Transactions Total Derivatives Total Liabilities Derivatives (*3) (8) Short-term Bonds Payable (9) Payable Bonds (10) Borrowed Money from Trust Account (6) Money Borrowed (7) Exchanges Foreign Total Assets (1) Deposits (2) Certificates of Deposit Negotiable (3) Money and Bills Sold Call (4) under Payables (9) Exchanges Foreign (10) Lease Receivables and (8) and Bills Discounted Loans (7) Securities (4) Claims Bought (*1) Monetary (5) Assets Trading (6) Held in Trust Money (2) Bills Bought Loans and Call (3) under Receivables (1) and Due from Banks (*1) Cash (5) under Securities Payables 386 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report on page398. ing tothepurposearedescribed in“MoneyHeldTrust” ed pricesonanexchange. in trustforsecuritiesinvestingpurposearebasedonquot- (6) MoneyHeldinTrust value, STBemploysdiscountedcashflowmethod. prices ondealersassociationordealerpricequotations. (5) TradingAssets ratings andmaturities. flows arediscountedattheratedeterminedbyinternal employs discountedcashflowmethodwherefuture Securities DealersAssociationordealerpricequotations. quoted pricesondealersassociationsuchasJapan (4) MonetaryClaimsBought short (lessthanoneyear). approximates itsfairvaluesincecontractualtermis receivables underresaleagreements,thecarryingamount Resale Agreements (2) CallLoansandBillsBought(3)Receivablesunder value sinceitscontractualtermisshort(lessthanoneyear). with maturities,thecarryingamountapproximatesitsfair Similarly, forthefairvaluesofcashandduefrombanks maturity, thecarryingamountapproximatesitsfairvalue. (1) CashandDuefromBanks Assets Instruments (Note 1)MeasurementMethodofFairValueFinancial Financial Data:NotestoConsolidatedStatements The notesaboutmoneyheldintrustclassifiedaccord- The fairvaluesofsecuritiesentrustedtothemoneyheld For short-termcorporatebonds,indeterminingfair The fairvaluesoftradingassetsarebasedonquoted For allotherclaims,indeterminingfairvalue,theBank The fairvaluesofmonetaryclaimsboughtarebasedon For thefairvaluesofcallloansandbillsbought For thefairvaluesofcashandduefrombankswithno lateral pledged orguaranteesprovided. rate andthecarryingamounts arefullycoveredbythecol- fair valuesincethefloatingrate reflectsthemarketinterest loans toindividuals,thecarrying amountapproximatesits condition atthebalancesheet date.Forthefloatingrate rities assumingSTBexecutes thenewloanundersame at theratedeterminedbycontractualtermsandmatu- counted cashflowmethodthatdiscountfutureflows same conditionatthebalancesheetdate. maturities, assumingSTBexecutesthenewloanunder flows attheratedeterminedbyinternalratingsand on discountedcashflowmethodthatdiscountfuture (8) LoansandBillsDiscounted their purposearedescribedin“Securities”onpage391. rates, pre-paymentdiscountratesandothers. method, andtheparametersaredefaultrates,recovery management’s rationalestimationisdiscountedcashflow uate therationallycalculatedvaluesbasedon seas RMBS,CARDsandothers.Thepricingmodeltoeval- as fairvalues.Thescopeofthistreatmentincludesover- investment, therationallycalculatedvaluesareregarded method andoptionpricingmodelsamongothers. ties, andvaluationmodelssuchasdiscountedcashflow are interestratesofgovernmentbonds,swaptionvolatili- independent ofSTBandwhosepricedefinitionparameters ally calculatedvaluesareofferedbythirdparties ally calculatedvaluesareregardedasfairvalues.Theration- determined byinternalratingsandmaturities. method wherefuturecashflowsarediscountedattherate determining fairvalue,STBemploysdiscountcashflow investment trustarebasedonreferenceprices. ciations, ordealerpricequotations.Thefairvaluesof ed pricesonanexchange,quoteddealersasso- an exchange.Thefairvaluesofbondsarebasedonquot- (7) Securities The fairvaluesofloanstoindividualsarebasedondis- The fairvaluesofloanstocorporatecustomersarebased The notesregardingsecuritiesclassifiedaccordingto For sharesofasset-backedsecuritiesoverseascredit For floatingrateJapanesegovernmentbonds,theration- For privateplacementbondswithnomarketvalue,in The fairvaluesofstocksarebasedonquotedprices Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 387 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report For the floating rate time deposits, the carrying amount For the floating rate certificates of deposits, the carrying For the negotiable sold, payables For the fair values of call money and bills based on dis- The fair values of borrowed money are (less than one For debt whose remaining term is short money held For the fair values of floating rate borrowed The foreign exchanges are constituted by due to for- For the fair values of short term bonds payable, the car- approximates its fair value since its rate reflects the market approximates its fair short time. interest rate over a of Deposit (2) Negotiable Certificate its fair value. amount approximates Payables under (3) Call Money and Bills Sold, (4) under Securities Repurchase Agreements and (5) Payables Lending Transactions under securi- under repurchase agreements and payables amount approxi- ties lending transactions, the carrying contractual term is mates its fair value since most of its short (less than one year). (6) Borrowed Money future cash flows counted cash flow method that discount new funds under at the rate assuming STB borrowed the date. the same condition at the balance sheet its fair value. year), the carrying amount approximates its fair in subsidiaries, the carrying amount approximates value since its interest rate reflects market interest in a short period and credit condition have not changed signif- icantly after the borrowing. (7) Foreign Exchanges eign banks (their accounts) that are non-maturity debt, and due to foreign banks (our accounts) whose contractual term is short (less than one year), so these carrying amounts approximates its fair values. (8) Short Term Bonds Payable rying amount approximates its fair value since its contrac- tual term is short (less than one year). For the demand deposits, the payment amount STB will The fair values of Yen fixed-rate time deposits are based For the fair values of foreign currency fixed-rate time The fair values of lease receivable and investment assets The fair values of lease receivable and The foreign exchanges are constituted by due from for- The foreign exchanges are constituted For the loans with no maturity, and whose contractual For the loans with who are legally bankrupt, virtu- For all loans to debtors have to pay out if requests at the balance sheet date (car- rying amount) is regarded as its fair value. on discounted cash flow method that discount future cash flows at the rate assuming STB executes the new deposits under the same condition at the balance sheet date. deposits, the carrying amount approximates its fair value since for most, contractual term is short (less than one year). Liabilities (1) Deposits are based on discounted cash flow method that discount are based on discounted cash flow method future cash flows by the rate, determined by internal rat- ings and maturities, assuming STB or subsidiaries executes the new transaction in the same condition at the balance sheet date. (10) Lease Receivables and Investment Assets (10) Lease Receivables and Investment eign banks (our accounts), due from foreign banks (their eign banks (our accounts), due from bills receivable. accounts), foreign bills bought and foreign amount approxi- For the foreign exchanges, the carrying maturity or its con- mates its fair value since those are no tractual term is short enough. (9) Foreign Exchanges term are limited to the carrying amount of the collateral term are limited to provided, the carrying amount pledged or guarantees value due to their maturity assumed approximates its fair and condition of interest. to become bankrupt, the estimated ally bankrupt or likely is calculated based on the present amount of loan losses the amount expect- value of future cash flows or based on of collateral or ed to be collected through the disposal amount which the execution of guarantees. As a result, the balance sheet minus amount recorded in the consolidated as above approxi- the estimated loan losses calculated mates the fair value. 388 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Apartoftheinvestmentinassociationsforwhichpartnershipassetsconstitutesinstruments forwhichnofairvaluesare (*3) FortheyearsendedMarch312011and2010,unlistedstocksamountedof¥152million¥2,122werewrittenoffre (*2) Unlistedstocksareexcludedfromthefairvaluedisclosuresincethereisnoquoted marketpriceandnofairvalueisobta (*1) Financial Data:NotestoConsolidatedStatements from themaintable. (Note 2)TablebelowshowstheSTBGroup’sinstrumentsforwhichnofairvaluesareobtainable,andtheseexcluded account, theamountSTBwouldberequestedtopayout (10) BorrowedMoneyfromTrustAccount under thesameconditionatbalancesheetdate. rate assumingSTBoritssubsidiariesissuedthenewbond flow methodwherefuturecashflowsarediscountedatthe debts, indeterminingfairvalue,STBusesdiscountedcash price quotationsiftheisavailable.Forallother (9) BondsPayable 2 InvestmentsinAssociations(*3) 1 UnlistedStocks(*1)(*2) For thefairvaluesofborrowedmoneyfromtrust The fairvaluesofbondpayablearebasedondealer ed fromthefairvaluedisclosure. option pricingmodelsandothers. culated mainlyusingdiscountedcashflowmethodand price quotations. based ontheclosingpricesanexchangeordealer Derivatives interest ratereflectsnewfundinginashortperiod. its fairvaluesincethosearenon-maturitydebtand at thebalancesheetdate(carryingamount)isregardedas The fairvaluesofOTCderivativestransactionsarecal- The fairvaluesoflistedderivativestransactionsare okVleBookValue Book Value 46,074 ¥ 49,027 2011 obtainable inthesamemannerasstocksareexclud- inable. Millions ofYen spectively. 47,651 ¥ 53,909 2010 U.S. Dollars Book Value Millions of 554 $ 2011 590 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 389 — — — — — 9,881 3,723 85,306 43,683 70,674 44,411 215,656 357,881 104,457 994,069 612,314 280,319 178,718 101,738 2,538,856 1,351,950 More than Five Years More than Five Years 2,075,999 1,795,680 1,051,515 2,830,348 ¥ 4,150,147 ¥— ¥26 ¥ 5,129,505 — — — — — 7,323 5,452 5,065 28,814 36,382 20,146 75,182 35,864 40,398 33,823 75,105 51,464 33,440 330,116 293,733 143,921 306,924 266,525 756,744 Five Years Five Years 1,038,871 More than Four More than Four ¥— ¥ 1,433,666 ¥— ¥ 1,104,432 Years but less than Years but less than age values are excluded. estimated salvage values are excluded. — — — — — — 40 who are legally bankrupt, virtually bankrupt or re for debtors who are legally bankrupt, virtually rs who are legally bankrupt, virtually bankrupt or 5,093 for the debtors who are legally bankrupt, virtually 37,123 28,927 19,984 30,669 77,145 75,458 23,192 67,265 35,377 20,168 debtors who are legally bankrupt, virtually bankrupt 633,250 604,322 211,565 176,188 119,854 Four Years Four Years 1,137,454 1,214,222 ¥ 1,884,185 ¥ 899 More than Three More than Three ¥— ¥ 1,516,246 Years but less than Years but less than Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — 40 — — — 50 Millions of Yen Millions of Yen 20,484 12,000 28,714 20,033 83,481 14,394 26,468 20,000 203,225 174,510 118,179 298,146 271,677 109,990 125,151 1,484,496 Three Years Three Years 1,482,634 More than Two More than Two ¥ 370 ¥ 1,838,756 ¥ 729 ¥ 1,905,895 Years but less than Years but less than — 50 — — — — 4,327 3,113 20,104 20,104 30,090 37,891 12,000 20,062 20,062 243,472 223,368 157,822 146,034 392,244 372,182 180,047 120,949 1,719,788 1,632,539 ¥17 ¥ 2,124,215 ¥ 2,187,217 ¥71 Two Years Two Years More than One More than One Year but less than Year but less than — 2,948 86,485 10,345 74,607 51,320 23,286 46,596 16,959 15,326 10,228 20,040 20,040 184,622 661,864 587,256 398,919 207,150 200,143 210,364 717,476 697,435 579,817 1,972,090 2,016,273 ¥ 903,877 ¥ 4,026,436 ¥ 3,796,775 ¥ 626,963 One Year or Less One Year or Less Total Securities with Maturity Government Bonds Local Government Bonds Corporate Bonds Government Bonds Corporate Bonds Total Securities with Maturity Government Bonds Local Government Bonds Corporate Bonds Government Bonds Investment Assets (*2) Available-for-Sale Held-to-Maturity Debt Securities Investment Assets (*3) Held-to-Maturity Debt Securities Available-for-Sale likely to become bankrupt, and ¥1,695,248 million of the loans with no maturity are excluded. likely to become bankrupt are excluded. million) of that with no maturity are excluded. or likely to become bankrupt and ¥1,784,874 million ($21,466 ($128 million) of the sum of guaranteed residual values by lesse and bankrupt or likely to become bankrupt and ¥10,617 million bankrupt or likely to become bankrupt, and ¥9,889 million of the sum of guaranteed residual values by lessee and estimated salv bankrupt or likely to become bankrupt, and ¥9,889 million of the sum of guaranteed residual values by lessee and Redemption Schedule of Monetary Claims and of Securities with Maturity after March 31, 2010 Redemption Schedule of Monetary Claims Loans and Bills Discounted (*1) Lease Receivables and Money Held in Trust Securities Cash and Due from Banks Call Loans and Bills Bought Monetary Claims Bought Loans and Bills Discounted (*2) Lease Receivables and Money Held in Trust Securities Cash and Due from Banks Cash and Due from Banks Call Loans and Bills Bought (*1) Monetary Claims Bought March 31, 2010 March 31, 2011 (Note 3) Redemption Schedule of Monetary Claims and of Securities with Maturity after March 31, 2011 Securities with Maturity after March Schedule of Monetary Claims and of (Note 3) Redemption (*2) For the lease receivables and investment assets, ¥2,492 million of the loans that are not expected to be collected, which a (*1) For the loans and bills discounted, ¥99,822 million of the loans that are not expected to be collected, which are for debto (*2) million ($930 million) of that not expected to be collected, which are for the For the loans and bills discounted, ¥77,350 (*3) assets, ¥2,472 million ($30 million) of that not expect to be collected, which are For the lease receivables and investment (*1) ($12 million) of that not expected to be collected, which are for the debtors For the monetary claims bought, ¥983 million 390 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements *)Forthecorporatebonds,¥100,307million ($1,206 million)ofperpetualsubordinatednoteswithnomaturityareexcluded. (*3) Fortheborrowedmoney,¥85,000million($1,022 million)ofperpetualsubordinateddebtswithnomaturityareexcluded. (*2) Forthedeposits,balanceofdemanddepositsareincludedin“OneYearorLess.” (*1) (Note 4)RepaymentScheduleofBonds,BorrowedMoneyandotherInterest-bearingLiabilitiesafterMarch31,2011 March 31,2011 Lease Receivablesand Loans andBillsDiscounted(*2) Securities Money HeldinTrust Monetary ClaimsBought(*1) Call LoansandBillsBought Cash andDuefromBanks March 31,2011 Borrowed MoneyfromTrustAccount Bonds Payable(*3) Short-term BondsPayable Borrowed Money(*2) Call MoneyandBillsSold Negotiable CertificatesofDeposit Deposits (*1) Redemption ScheduleofMonetaryClaimsandSecuritieswithMaturityafterMarch31,2011 Investment Assets(*3) Available-for-Sale Held-to-Maturity DebtSecurities Total Corporate Bonds Local GovernmentBonds Government Bonds Securities withMaturity Government Bonds Total One YearorLess One YearorLess 7,480,290 ¥ 11,091,957 ¥ 45,662 $ 7,540 $ 2,120,349 24,249 431,710 408,608 594,629 2,530 2,407 8,629 6,973 8,388 49,569 184 123 204 241 241 6,799 — Year butlessthan Year butlessthan More thanOne More thanOne Two Years Two Years 2,398,775 ¥ 2,127,595 ¥ $1 26,304 $ 19,634 157,620 101,760 4,717 1,756 1,455 2,165 4,476 11,799 144 241 241 52 — 1 — — — Years butlessthan Years butlessthan 1,072,648 ¥ 871,802 ¥ More thanTwo More thanTwo 22,921 $ $9 Three Years Three Years 17,831 125,393 1,323 1,505 3,267 3,586 Million ofU.S.Dollars 75,453 241 318 173 Millions ofYen — — — 0 — — — — Years butlessthan Years butlessthan 1,013,252 ¥ 849,772 ¥ More thanThree More thanThree $— 18,235 $ Four Years Four Years 14,603 108,990 2,119 2,544 1,441 54,489 279 243 425 809 61 — — — — — — — Years butlessthan Years butlessthan 1,082,761 ¥ 966,150 ¥ More thanFour More thanFour $— 13,282 $ Five Years Five Years 9,101 3,205 3,691 60,990 55,621 402 619 903 407 486 66 88 — — — — — — 376,070 ¥ 2,897 ¥ $0 61,690 $ More thanFiveYears More thanFiveYears 219,945 153,226 34,039 12,646 21,596 24,967 2,149 1,224 3,371 534 119 850 — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 391 — — — — — — — — 1,843 2,645 $2 $2 2011 127,273 283,925 More than Five Years More than Five Years Millions of ¥ 4,549 ¥ 415,747 $ 35 $ 4,523 U.S. Dollars — — — — — — — — 669 733 46,011 39,987 2010 Five Years Five Years ¥ 235 More than Four More than Four ¥ 860,528 ¥ 946,527 $ 11,619 $ 13,022 Years but less than Years but less than Valuation Difference — — — — — — — — 655 Millions of Yen 1,311 72,339 91,987 Reflected on the Statements of Income 2011 Four Years Four Years ¥ 201 ¥ 664,983 ¥ 829,310 More than Three More than Three $ 10,220 $ 12,186 Years but less than Years but less than Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — — — — — — 907 Millions of Yen 1,508 5,000 Millions of U.S. Dollars 144,563 Three Years Three Years More than Two More than Two ¥ 902,122 ¥ 1,051,686 $ 10,485 $ 12,900 Years but less than Years but less than — — — — — — 142 1,224 1,896 3,000 50,600 121,799 ¥ 2,299,159 ¥ 2,474,558 $ 25,587 $ 28,849 Two Years Two Years More than One More than One Year but less than Year but less than 82 596 6,000 7,151 4,914 5,192 79,519 25,500 575,351 438,667 430,969 2,300,284 ¥ 11,350,567 ¥ 7,519,774 $ 89,961 $ 133,397 One Year or Less One Year or Less Total Total Repayment Schedule of Bonds, Borrowed Money and other Interest-bearing Liabilities after March 31, 2010 Interest-bearing Liabilities after March of Bonds, Borrowed Money and other Repayment Schedule The following information includes a portion of trading assets, cash and due from banks and monetary claims bought The following information includes a portion of trading assets, cash and due Repayment Schedule of Bonds, Borrowed Money and other Interest-bearing Liabilities after March 31, 2011 Repayment Schedule of Bonds, Borrowed Trading Securities Borrowed Money from Trust Account Borrowed Money (*2) Borrowed Money (*2) Short-term Bonds Payable Bonds Payable (*3) Deposits (*1) of Deposit Negotiable Certificates Sold Call Money and Bills March 31, 2010 Borrowed Money from Trust Account Borrowed Money (*2) Short-term Bonds Payable Bonds Payable (*3) Deposits (*1) Negotiable Certificates of Deposit Call Money and Bills Sold March 31, 2011 1. Trading Securities Securities to securities in the consolidated bal- treated as securities in “Accounting Standard for Financial Instruments” in addition ance sheets. (*1) of the demand deposits are included in “One Year or Less.” For the deposits, the balance (*2) ¥85,000 million of perpetual subordinated debts with no maturity are excluded. For the borrowed money, (*3) ¥101,915 million of perpetual subordinated notes with no maturity are excluded. For the corporate bonds, 392 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements 2. Held-to-MaturityDebtSecuritieswithFairValue March 31,2011 Total Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValuedoesnotExceed Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValueExceeds March 31,2010 Total Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValuedoesnotExceed Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValueExceeds Subtotal Other Securities Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds Subtotal Other Securities Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds Subtotal Other Securities Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds Subtotal Other Securities Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds Others Foreign Bonds Others Foreign Bonds Foreign Bonds Foreign Bonds Book Value Book Value 427,667 ¥ ¥— 184,770 ¥ 546,618 ¥ ¥57 235,989 ¥ 417,840 228,070 233,070 532,391 273,115 273,115 14,226 14,169 14,169 23,286 9,826 9,826 9,826 5,000 — — — — — — — — — — — — Millions ofYen Millions ofYen 477,494 ¥ ¥— 192,684 ¥ 600,355 ¥ ¥56 244,037 ¥ Fair Value Fair Value 468,551 270,863 275,866 587,390 319,960 319,960 12,964 12,907 12,907 23,392 8,942 8,942 8,942 5,003 — — — — — — — — — — — — Difference Difference 53,737 ¥ (0) ¥ 8,047 ¥ 7,914 ¥ 49,826 ¥ ¥— 54,999 46,845 46,845 (1,261) (1,261) (1,261) 50,710 42,793 42,796 105 (883) (883) (883) — — — — — — — — — — — — 3 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 393 0 — — — — — — — (11) (11) (11) 515 515 610 $ 599 $— $95 Difference — — — — — — — 60 108 108 108 3,318 3,258 5,635 Fair Value $ 2,317 $— $ 5,743 Millions of U.S. Dollars — — — — — — — 60 118 118 118 2,803 2,743 5,025 $ 2,222 $— $ 5,143 Book Value Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Foreign Bonds Others Foreign Bonds Others Other Securities Subtotal Government Bonds Local Government Bonds Short-term Corporate Bonds Corporate Bonds Short-term Corporate Bonds Short-term Corporate Corporate Bonds Other Securities Subtotal Government Bonds Local Government Bonds There are no “Held-to-Maturity Debts Securities” for which no fair values are obtainable at the end of the fiscal years Securities” for which no fair values are obtainable at the end of the fiscal There are no “Held-to-Maturity Debts Total Amount Recorded in Consolidated Balance Sheet Amount Recorded in Consolidated Balance Securities for which the Fair Value does not Exceeds the Securities for which the Fair Value does not Securities for which the Fair Value Exceeds the Securities for which the Consolidated Balance Sheet Amount Recorded in March 31, 2011 ended March 31, 2011 and 2010. 394 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 3. Available-for-SaleSecurities Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements March 31,2011 Total Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValuedoesnotExceed Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValueExceeds Other Securities Bonds Stocks Other Securities Bonds Stocks Subtotal Others Foreign Bonds Foreign Stocks Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds Subtotal Others Foreign Bonds Foreign Stocks Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds 4,189,066 ¥ 163,793 ¥ 306,580 ¥ Book Value 1,971,490 1,083,746 2,217,575 1,079,267 1,344,366 205,004 518,945 723,950 267,535 807,217 500,564 566,628 253,574 65,635 11,524 8,994 428 — — — Acquisition Cost Millions ofYen 4,117,585 ¥ 204,796 ¥ 220,537 ¥ 2,031,984 1,086,961 2,085,601 1,058,084 1,320,325 210,738 529,487 740,226 269,776 808,083 492,983 544,738 250,810 51,630 11,430 9,101 125 — — — 71,480 ¥ (41,002) ¥ 86,043 ¥ Difference 131,973 (60,493) (10,541) (16,275) 14,005 21,890 21,182 24,040 (5,733) (2,241) (3,215) 7,581 2,763 (106) (866) 303 94 — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 395 — — — 21 (39) 410 (204) 2,190 (1,619) (1,375) (9,014) 28,518 11,428 16,680 27,003 24,791 (24,730) (15,715) (60,229) 154,542 Difference ¥ (33,879) ¥ 94,313 ¥ 99,020 — — — 140 4,306 7,541 974,156 740,650 299,198 571,837 383,181 188,516 618,798 450,676 160,580 928,949 687,460 241,489 1,792,371 1,728,092 ¥ 246,377 ¥ 180,343 ¥ 3,520,463 Millions of Yen Acquisition Cost — — — 550 4,328 7,501 765,441 231,389 600,356 394,609 205,196 617,179 450,472 159,205 904,219 671,744 232,475 1,001,159 1,946,914 1,667,862 Book Value ¥ 345,398 ¥ 146,464 ¥ 3,614,777 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Foreign Stocks Foreign Bonds Others Subtotal Government Bonds Local Government Bonds Short-term Corporate Bonds Corporate Bonds Foreign Bonds Others Subtotal Government Bonds Local Government Bonds Bonds Short-term Corporate Corporate Bonds Foreign Stocks Bonds Other Securities Stocks Other Securities Stocks Bonds Total Amount Recorded in Consolidated Balance Sheet Amount Recorded in Consolidated Balance Securities for which the Fair Value does not Exceed the Securities for which the Fair Value does not Securities for which the Fair Value Exceeds the Securities for which the Consolidated Balance Sheet Amount Recorded in March 31, 2010 396 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 4. Held-to-MaturityDebtSecuritiesSoldduringtheFiscal Year Available-for-sale securitiesforwhichnofairvaluesare 2010, themajorinstrumentsandbookvaluesof Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements March 31,2011 Total Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValuedoesnotExceeds Amount RecordedinConsolidatedBalanceSheet Securities forwhichtheFairValueExceeds There werenocorrespondingitemsforthefiscalyearsended March31,2011and2010. At theendoffiscalyearendedMarch31,2011and Bonds Stocks Other Securities Bonds Stocks Subtotal Others Foreign Bonds Foreign Stocks Other Securities Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds Subtotal Others Foreign Bonds Foreign Stocks Corporate Bonds Short-term CorporateBonds Local GovernmentBonds Government Bonds Financial Instruments”onpage388. obtainable aredescribedinNote2of“2.FairValues Book Value 50,380 $ 1,970 $ 3,687 $ 23,710 13,034 26,670 12,980 16,168 2,465 6,241 8,707 3,217 9,708 6,020 6,815 3,050 108 789 139 — — — 5 Millions ofU.S.Dollars Acquisition Cost 49,520 $ 2,463 $ 2,652 $ 24,438 13,072 25,082 12,725 15,879 2,534 6,368 8,902 3,244 9,718 5,929 6,551 3,016 109 621 137 — — — 2 Difference (493) $ 1,035 $ 860 $ 1,587 (728) (127) (196) 168 263 255 289 (10) (39) (69) (27) 91 33 — — — (1) 4 1 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 397 (0) (0) (1) (0) — — — — — (24) (24) (57) (279) (222) (2,939) (2,938) (7,106) (4,687) (2,012) (2,012) (4,703) (Loss) (Loss) (Loss) (11,793) (23,189) (18,485) ¥ (62) ¥ (14,795) $(6) $ (309) ¥ (489) ¥ (25,691) 0 0 — — — — 13 — 146 146 233 219 104 159 1,090 7,684 7,421 4,005 Gain Gain Gain 12,156 12,156 19,334 18,244 28,579 24,574 $26 ¥ 2,135 $ 404 ¥ 33,627 ¥ 44,808 ¥ 8,544 Millions of Yen Millions of Yen Millions of U.S. Dollars — — — — 32 — 3,441 2,698 14,129 14,096 28,243 24,803 12,067 16,535 286,100 209,884 1,174,800 1,172,101 2,348,429 2,062,328 1,285,400 1,256,797 1,426,148 1,216,264 Amount Sold Amount Sold Amount Sold ¥ 3,528,461 $63 $ 42,435 ¥ 5,232 ¥ 18,854 ¥ 2,730,403 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report For the fiscal year ended March 31, 2010, some asset- backed securities for international credit investment that have been classified as “Available-for-Sale Securities” were reclassified to “Held-to-Maturity Debt Securities.” This reclassification is based on the judgment that the recent financial market circumstances are recognized as Others Government Bonds Local Government Bonds Short-term Corporate Bonds Corporate Bonds Foreign Bonds Local Government Bonds Local Government Bonds Bonds Short-term Corporate Corporate Bonds Foreign Bonds Others Government Bonds Government Bonds Local Government Bonds Short-term Corporate Bonds Corporate Bonds Foreign Bonds Others For the fiscal year ended March 31, 2011, securities There are “Available-for-Sale Securities” for which no fair values are obtainable as of March 31, 2011 and 2010. There are “Available-for-Sale Securities” for which no fair values are obtainable Total Other Securities Stocks Bonds Total Other Securities Bonds Stocks Year Ended March 31, 2011 Year Ended March 31, 2011 Total Other Securities Bonds Stocks Year Ended March 31, 2010 reclassified by holding purpose were not disclosed based on the expiration of ASBJ Practical Issue Task Force No.26 “Practical Solution on Accounting for Reclassification of Financial Instruments” (issued by ASBJ on December 5, 2008) on March 31, 2011. 6. Securities Reclassified by Holding Purpose 5. Available-for-Sale Securities Sold during the Fiscal Year 5. Available-for-Sale 398 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report considering therecentsignificantstagnationoftransac- pectedly significantchangesinthemarketsenvironment,” an extremedeclineinmarketliquiditycausedbyunex- fairly valuedpricesforacertainperiodoftime,because ing difficultiescontinuouslyinsellingdebtsecuritiesat “rare circumstanceswheretheentityhasbeenexperienc- Financial Data:NotestoConsolidatedStatements foreign bondsand¥701millionofothers,werewrittenoff. which included¥12,224millionofstocks,¥651 others, werewrittenoff. which included¥5,632millionofstocksand¥993 the valuationdifferencesarerecognizedaslosses: the declineisnottemporaryateachfiscalyearend,and value declinessignificantlycomparedtotheircostsand ing securitiesarewrittenoffwhentheirrespectivefair 7. ImpairmentofSecurities 8. InvestmentsinSubsidiariesandAffiliateswithFairValue (Non-consolidated) were asfollows: 1. MoneyHeldinTrustforTradingPurpose Money HeldinTrust failed tomeetthecompany’scriteriaof“Held-to-Maturity held as“Held-to-MaturityDebtSecurities”(¥1,831million) ing currentconsolidatedfiscalyear,someofthebonds March 31,2011 Year EndedMarch31,2010 Money HeldinTrustforTrading Purpose Foreign Bonds For theyearendedMarch31,2010,¥13,578million, For theyearendedMarch31,2011,¥6,625million, Available-for-sale securitiesatfairvalueotherthantrad- There werenocorrespondingitemsasofMarch31,2011 and 2010. The securitiesreclassifiedbyholdingpurposefrom“Available-for-sales”to“Held-to-maturity”asofMarch31,2010 At theendoffiscalyearendedMarch31,2010,dur- tion, onDecember26,2008. lion, whichwasthefairvalueatpointofreclassifica- “Held-to-Maturity DebtSecurities”totaling¥288,058mil- credit investment.STBmadethedecisiontoreclassifyas tions intheasset-backedsecuritymarketsforinternational fied period. 30% butlessthan50%ofcostcontinuouslyoveraspeci- deemed impairedwhenfairvaluedeclinedbymorethan • Issuerswhoseclassificationisotherthanordinary: • Issuerswhoseclassificationisordinary: cation ofissuersisasfollows: Decline intheFairValue”isrecognizedwhichclassifi- for-sale securities. a result,thesebondshavebeenreclassifiedintoAvailable- Debt Securities”duetothedowngradeofcreditrating.As In additiontotheabove,aportionofsecuritieswere Fair valueis30%ormorelowerthancost. Fair valueis50%ormorelowerthancost. According totheSelf-AssessmentRules,a“Remarkable 308,150 ¥ Fair Value Book Value Book Value 262,660 ¥ 10,228 ¥ Millions ofYen Reflected ontheStatementsofIncome Valuation DifferenceonAvailable-for- Millions ofYen Sale SecuritiesontheConsolidated Valuation Difference Balance Sheet (46,815) ¥ (105) ¥ Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 399 6 (0) — 45 79 124 2011 (Loss) $ 124 $ 73 Negative Negative Millions of Difference Difference U.S. Dollars $(1) ¥(1) — Valuation Difference Valuation Difference 276 240 Unrealized Gain (Loss) 6,050 9,223 Gain 2010 15,274 Positive Positive Difference Difference ¥ 15,274 ¥ 9,188 Millions of Yen Reflected on the Statements of Income Reflected on the Statements Reflected on the Statements of Income Reflected on the Statements Millions of U.S. Dollars (5) — Millions of Yen 518 3,750 6,588 2011 10,339 Valuation Valuation Valuation $ 123 ¥ 10,345 Difference Difference Difference Book Value Book Value ¥ 10,339 ¥ 6,064 Millions of Yen Millions of Yen Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Millions of U.S. Dollars Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Acquisition Cost Acquisition Cost Acquisition Cost $ 144 $ 144 $ — $ — $ — ¥ 12,000 ¥ 12,000 ¥¥ 12,000 — ¥ 12,000 ¥ — ¥ — ¥ — ¥ — ¥ — Book Value Book Value Book Value Available-for-Sale Securities Other Money Held in Trust The following table shows component items of “Valuation Difference on Available-for-Sale Securities” in the consoli- The following table shows component items of “Valuation Difference on Available-for-Sale There were no corresponding items as of March 31, 2011 and 2010. There were no corresponding items as There were no securities with fair value included in entrusted assets of the other money held in trust (other than for trad- There were no securities with fair value included in entrusted assets of the other Money Held in Trust for Trading Purpose Money Held in Trust March 31, 2011 Other Money Held in Trust March 31, 2011 Minority Interests Parent Company’s portions in Available-for-Sale Securities owned by its affiliates Valuation Difference on Available-for-Sale Securities Total Valuation Difference Amount Equivalent to Deferred Tax Assets (Liabilities) Total (before Adjustment for Minority Interests) Valuation Difference Money Held in Trust for Trading Purpose Money Held in Trust March 31 March 31, 2010 Other Money Held in Trust Other Money Held in Trust March 31, 2011 March 31, 2010 Valuation Difference on Available-for-Sale Securities dated balance sheets. 3. Other Money Held in Trust (other than for trading purpose and being held-to-maturity) 3. Other Money Held in Trust (other than 2. Money Held in Trust being Held-to-Maturity ing purpose and being held-to-maturity) as of March 31, 2011 and 2010. 400 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. (1) InterestRelatedTransactions 1. DerivativesTransactionsnotQualifyingforHedgeAccounting Financial Derivatives tion adjustmentsonforeignsecuritieswithnoavailablefair (2) Valuationdifferenceincludesforeigncurrencytransla- March 31,2011and2010,respectively. income byapplyingthefairvaluehedgeaccountingasof ¥11 millionbookedontheconsolidatedstatementsof (1) Valuationdifferencedoesnotinclude¥78millionand Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements Total OTC Listed Interest relatedtransactionsnotqualifyingforHedgeAccountingasofMarch31,2011and2010consistedthefollowing: Note thatcontractvaluesdonotrepresentthemarketriskexposureassociatedwithderivatives. Contract value,fairvaluationdifferenceareasfollows: Financial DerivativesTransactionsasofMarch31,2011and2010consistedthefollowing: Others Interest Options Interest RateSwaps Forward RateAgreements Interest Options Interest Futures Purchased Sold Purchased Sold Flt Rcv-FltPay Flt Rcv-FixPay Fix Rcv-FltPay Purchased Sold Purchased Sold Purchased Sold ¥ 6,475,270 6,475,270 ¥ 109,908,103 115,971,941 Total 1,384,477 6,541,716 5,300,407 5,435,429 4,299,427 Contract Value 680,905 — — — — 1,156,162 ¥ One Year 88,670,011 91,684,342 5,183,574 5,223,638 3,448,307 Over 920,372 2011 — — — — — — Value 503 ¥ 147,165 ¥ Fair of “ValuationDifference.” of securitiesisincludedin“Available-for-SaleSecurities” which occurredonthereclassificationinholdingpurpose (3) Theunamortizedbalanceofthevaluationdifference value andinvestmentassociations. (1,628,798) 1,768,349 (88,857) 91,626 5,386 (402) (947) 303 Difference Valuation — — — — Millions ofYen 503 ¥ 98,034 ¥ (1,628,798) 1,768,349 (36,964) (9,563) 5,386 9,833,265 ¥ (947) Total 10,472,954 10,950,073 67,274,544 69,867,470 20 47 — — — — 3,746,027 8,107,046 Contract Value 874,468 901,398 — — — — 991,788 ¥ One Year 10,200,639 10,646,997 55,444,172 57,748,658 2,985,427 Over 865,782 18,499 7,399 2010 — — — — Value 195,805 ¥ (16,715) ¥ Fair (2,117,999) 2,292,912 (161,917) 180,775 16,344 2,392 (114) 128 Difference — — — — Valuation 109,073 ¥ (16,715) ¥ (2,117,999) 2,292,912 (57,162) (10,681) 16,344 2,392 (226) 209 — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 401 1 0 — — — — 65 (11) (115) (445) Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial 21,267 (19,589) Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report $ 1,179 $6 $6 4 (5) — — — — 65 Valuation Difference (11) 1,102 (1,069) 21,267 (19,589) 2) At the each fiscal year, fair values of listed transactions 2) At the each fiscal year, fair values of prices on the Tokyo are calculated mainly using the closing Financial Exchange. Fair values of OTC transactions are cal- culated mainly using discounted cash flows method and option pricing models. Fair $6 $6 $ 1,770 Value — — — — — — 2011 11,069 41,471 62,822 62,340 Over 1,102,638 1,066,386 Millions of U.S. Dollars One Year $ 13,905 — — — — 8,189 51,707 65,369 63,745 78,674 16,650 Contract Value 1,394,732 1,321,805 Total $ 77,875 Purchased Flt Rcv-Flt Pay Sold Purchased Sold Sold Purchased Fix Rcv-Flt Pay Flt Rcv-Fix Pay Sold Purchased Sold Purchased Interest Options Others Forward Rate Agreements Interest Rate Swaps Interest Futures Interest Options Total OTC Listed 1) At the each fiscal year, transactions listed above are 1) At the each fiscal year, transactions calculated valua- evaluated on mark-to-market basis and tion difference is reflected on the consolidated statements of income. 402 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (2) CurrencyRelatedTransactions Financial Data:NotestoConsolidatedStatements Total OTC Listed Currency relatedtransactionsnotqualifyingforHedgeAccountingasofMarch31,2011and2010consistedthefollowing: Others Currency Options Forward Currency Swaps Currency Options Currency Futures Purchased Sold Purchased Sold Purchased Sold Purchased Sold Purchased Sold ¥— 3,797,053 3,918,174 2,633,758 2,710,661 1,237,474 Total Contract Value — — — — — One Year Over ¥— 2,299,277 2,430,778 763,175 690,562 885,875 2011 — — — — — Value Fair ¥— 16,488 ¥ (185,976) 195,804 (67,578) 73,942 Difference Valuation 295 — — — — — Millions ofYen ¥— 19,092 ¥ ¥— (67,578) 20,940 73,942 (8,508) Total 5,019,668 5,119,658 3,286,899 3,467,700 1,340,255 Contract Value 295 — — — — — — — — — — ¥— One Year 3,695,055 3,758,880 1,147,588 Over 809,640 904,139 2010 — — — — — Value ¥— 8,115 ¥ Fair (218,192) 228,108 (8,681) 5,838 1,041 Difference — — — — — Valuation ¥— 23,226 ¥ 22,938 (8,681) 5,838 1,041 2,088 — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 403 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 4 — — — — — 889 252 (813) (102) $— $ 230 Valuation Difference 4 — — — — — 889 (813) 2) At the each fiscal year, fair values are calculated mainly using 2) At the each fiscal year, fair values are calculated pricing models. discounted cash flow method and option 2,355 Fair (2,237) Value $— $ 198 2011 — — — — — 8,305 9,178 Over 10,654 29,234 27,652 Millions of U.S. Dollars One Year $— — — — — — Contract Value Total 14,882 32,600 31,675 47,122 45,665 $— Sold Purchased Sold Purchased Sold Purchased Sold Purchased Sold Purchased Forward Currency Options Others Currency Futures Currency Options Currency Swaps Total OTC Listed 1) At the each fiscal year, transactions listed above are 1) At the each fiscal year, transactions calculated valua- evaluated on a mark-to-market basis and statements tion difference is reflected on the consolidated of income. 404 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (3) StockRelatedTransactions Financial Data:NotestoConsolidatedStatements Total OTC Listed Total OTC Listed Stock relatedtransactionsnotqualifyingforHedgeAccountingasofMarch31,2011and2010consistedthefollowing: Others Stock IndexandOtherSwaps Stock Options Stock IndexOptions Stock IndexFutures Others Stock IndexandOtherSwaps Stock Options Stock IndexOptions Stock IndexFutures Short-term FloatingInterestRateReceivable/ Short-term FloatingInterestRateReceivable/ Purchased Sold Purchased Sold Purchased Sold Purchased Sold Purchased Sold Purchased Sold Purchased Sold Purchased Sold Stock PriceIndexVolatilityReceivable/ Stock PriceIndexVolatilityReceivable/ Stock PriceIndexVolatilityPayable Short-term FloatingInterestRatePayable Stock PriceIndexVolatilityPayable Short-term FloatingInterestRatePayable 184 $ 15,324 ¥ 52,584 52,584 12,825 13,165 Total Total 2,400 Contract Value Contract Value 632 632 154 158 29 — — — — — — — — $— ¥— One Year One Year Millions ofU.S.Dollars 52,584 52,584 Over Over 632 632 — — — — — — — — — — — — — — 2011 2011 237 ¥ $3 215 ¥ $3 Value Value (8,564) Fair Fair 8,564 (103) 103 14 — — — — — — — — (0) (0) 0 0 8 Difference Difference Valuation Valuation 214 ¥ 215 ¥ $3 $3 (8,564) 8,564 (103) Millions ofYen 103 (58) 43 14 — — — — — — — — (1) 1 0 9,127 ¥ Total 2,652 2,652 5,038 Contract Value — — — — — — One Year ¥— Over — — — — — — — — — 2010 (266) ¥ (194) ¥ Value Fair (36) 36 72 — — — — — — Difference Valuation (266) ¥ (181) ¥ 72 — — — — — — 6 6 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 405 4 (9) — — — — (227) ¥ (105) ¥ 126 Valuation Difference — — — — 12 (14) (227) Fair Value ¥ (102) ¥ 126 2010 — — — — — — — Over ¥— One Year — — — — Contract Value 6,192 11,160 Total 214,727 ¥ 280,533 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — — 81 (45) Millions of Yen (313) ¥ 58 ¥ 336 Valuation Difference — — — — 69 (50) 2) At the each fiscal year, fair values of listed transactions 2) At the each fiscal using the closing prices on the are calculated mainly Fair values of OTC transactions are Tokyo Stock Exchange. discounted cash flow method and calculated mainly using option pricing models. (313) Fair Value ¥ 336 ¥ 41 2011 — — — — — — — Over ¥— One Year — — — — Contract Value 45,237 Total 130,738 100,452 ¥ 101,436 Sold Purchased Sold Purchased Sold Purchased Sold Purchased Others Bond Options Bond Futures Bond Future Options Bond related transactions not qualifying for Hedge Accounting as of March 31, 2011 and 2010 consisted of the following: as of March 31, 2011 and 2010 consisted not qualifying for Hedge Accounting Bond related transactions Total OTC Listed (4) Bond Related Transactions 1) At the each fiscal year, transactions listed above are 1) At the each fiscal basis and calculated valua- evaluated on a mark-to-market on the consolidated statements tion difference is reflected of income. 406 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (5) CommodityRelatedTransactions of income. tion differenceisreflectedontheconsolidatedstatements evaluated onamark-to-marketbasisandcalculatedvalua- 1) Attheeachfiscalyear,transactionslistedaboveare Financial Data:NotestoConsolidatedStatements Total OTC Listed There werenocommodityrelatedtransactionsasofMarch31,2011and2010. Others Bond Options Bond FutureOptions Bond Futures Purchased Sold Purchased Sold Purchased Sold Purchased Sold 1,220 $ Total 1,208 1,572 Contract Value 544 — — — — One Year Millions ofU.S.Dollars $— Over — — — — — — — 2011 $1 $4 Value Fair using theclosingpricesonTokyoStockExchange. 2) Attheeachfiscalyear,fairvaluesarecalculatedmainly — — — — (1) (4) 1 Difference Valuation $1 $4 — — — — (1) (4) 1 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 407 168 ¥ (699) ¥ (530) Valuation Difference 168 Fair Value ¥ (699) ¥ (530) 2010 Over 15,810 ¥— One Year Contract Value Total 55,810 ¥ 80,000 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report (0) Millions of Yen (28) ¥— ¥ (28) $— $(0) Valuation Valuation Difference Difference (0) (28) discounted cash flows method. credit risks 3) At the each fiscal year, “Sold” indicates risks transferred. assumed, and “Purchased” indicates credit Fair Fair Value Value ¥— ¥ (28) $— $(0) 2011 2011 151 Over Over 12,517 $— Millions of U.S. Dollars One Year One Year ¥— 151 Contract Value Contract Value Total Total 12,517 ¥— $— Sold Purchased Sold Purchased Credit Default Swap Credit Default Swap Credit derivatives transactions not qualifying for Hedge Accounting as of March 31, 2011 and 2010 consisted of the following: as of March 31, 2011 and 2010 consisted not qualifying for Hedge Accounting Credit derivatives transactions Total OTC Total OTC 1) At the each fiscal year, transactions listed above are evaluat- 1) At the each fiscal year, transactions listed valuation differ- ed on a mark-to-market basis and calculated of income. ence is reflected on the consolidated statements calculated using the 2) At the each fiscal year, fair values are (6) Credit Derivatives Transactions (6) Credit Derivatives 408 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (1) InterestRelatedTransactions 2. DerivativesTransactionsQualifyingforHedgeAccounting Financial Data:NotestoConsolidatedStatements Total Accrual-Basis HedgeAccounting Principle Total Accrual-Basis HedgeAccounting Principle Interest relatedtransactionsqualifyingforHedgeAccountingasofMarch31,2011and2010consistedthefollowing: Note thatcontractvaluesdonotrepresentthemarketriskexposureassociatedwithderivatives. Contract value,fairvaluationdifferenceareasfollows: Interest RateSwaps Others Interest Options Interest Futures Interest RateSwaps Interest RateSwaps Others Interest Options Interest Futures Interest RateSwaps Flt Rcv-FixPay Fix Rcv-FltPay Purchased Sold Purchased Sold Purchased Sold Flt Rcv-FixPay Fix Rcv-FltPay Flt Rcv-FixPay Fix Rcv-FltPay Purchased Sold Purchased Sold Purchased Sold Flt Rcv-FixPay Fix Rcv-FltPay 612,309 ¥ 7,364 $ 873,721 Total Total 10,508 4,576 535 Contract Value Contract Value 55 — — — — — — — — — — — — 6 Millions ofU.S.Dollars 4,637 $ 385,600 ¥ One Year One Year 825,035 2011 2011 Over Over 9,922 4,576 535 55 — — — — — — — — — — — — 6 a (205) $ 66 $ 5,483 ¥ (17,054) ¥ (Note 3) (Note 3) (Note 3) (Note 3) (22,538) Value Value Fair Fair (271) Millions ofYen — — — — — — — — — — — — 662,786 ¥ 742,622 Total 41,132 26,162 Contract Value — — — — — — 562,946 ¥ One Year 642,764 Over 2010 28,682 26,162 — — — — — — (23,964) ¥ 7,946 ¥ (Note 3) (Note 3) (31,911) Value Fair — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 409 — — (15) (1,682) Fair Value ¥ 136,531 ¥ 138,230 — — — — 2010 Over One Year ¥ 521,588 — — Contract Value 2,790 46,596 Total ¥ 860,643 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report (0) — — — — Millions of Yen (15) (17) (1,245) Fair Fair Value Value $ 1,671 ¥ 138,932 ¥ 137,668 $ 1,656 option pricing models. interest rate swaps, which are based 3) The fair value of these accounting, are included in the fair on accrual-basis hedge Money” stated on a table, “2. Fair Values value of “Borrowed on page 384. of Financial Instruments” — — — — — — — — Over Over 2011 2011 One Year One Year $ 5,341 ¥ 444,133 Millions of U.S. Dollars — — — — 50 Contract Value Contract Value 1,042 4,158 86,636 Total Total $ 9,880 ¥ 821,501 Sold Purchased Sold Purchased Sold Purchased Sold Purchased Forward Others Currency Swaps Others Currency Swaps Forward Currency related transactions qualifying for Hedge Accounting as of March 31, 2011 and 2010 consisted of the following: as of March 31, 2011 and 2010 consisted qualifying for Hedge Accounting Currency related transactions Total Principle Total Principle 1) These treatments are subject to hedge accounting treatments based on “Report No.25.” 1) These treatments are subject to hedge accounting treatments based on “Report discounted cash flow method. 2) At the each fiscal year, fair values of OTC transactions are calculated mainly using (2) Currency Related Transactions (2) Currency Related 1) The schedule above includes derivatives transactions which 1) The schedule above accounting treatments based on are subject to hedge “Report No.24.” year, fair values of OTC transactions are 2) At the each fiscal discounted cash flows method and calculated mainly using 410 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements 31, 2010consistedofthefollowing: (3) StockRelatedTransactions (4) BondRelatedTransactions option pricingmodels. Total Principle Total Principle There werenostockrelatedtransactionsqualifyingforHedgeAccountingasofMarch31,2011andthose There werenobondrelated transactions qualifyingforHedgeAccountingasofMarch 31,2011and2010. At thefiscalyearendedMarch31,2010,fairvaluesare calculatedmainlyusingdiscountedcashfrowmethodand Others OTC StockIndexandOtherSwaps OTC StockOptions Others OTC StockIndexandOtherSwaps OTC StockOptions Short-term FloatingInterestRateReceivable/ Short-term FloatingInterestRateReceivable/ Purchased Sold Purchased Sold Purchased Sold Purchased Sold Stock PriceIndexVolatilityReceivable/ Stock PriceIndexVolatilityReceivable/ Stock PriceIndexVolatilityPayable Short-term FloatingInterestRatePayable Stock PriceIndexVolatilityPayable Short-term FloatingInterestRatePayable $— ¥— Total Total — — — — — — — — — — Contract Value Contract Value Millions ofU.S.Dollars One Year One Year $— ¥— 2011 2011 Over Over — — — — — — — — — — $— ¥— Value Value Fair Fair — — — — — — — — — — — — Millions ofYen ¥— 53,664 Total Contract Value — — — — One Year ¥— 53,664 Over 2010 — — — — (7,336) ¥ ¥— Value (7,336) Fair — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 411 4 0 54 12 92 556 872 148 (184) (220) 1,432 1,536 2,934 2011 2011 $ (105) $ 62 $ (2,379) $ (128) Millions of Millions of U.S. Dollars U.S. Dollars — 670 368 511 4,693 29,711 71,325 15,969 14,322 (13,421) 2010 2010 101,707 110,635 264,099 ¥ (8,927) ¥ (234,388) ¥ 6,202 ¥ 14,322 27 959 325 Millions of Yen Millions of Yen 7,646 4,497 12,317 46,192 72,530 (18,322) (15,304) 2011 2011 243,999 119,048 127,739 ¥ (10,676) ¥ 5,149 ¥ (197,806) ¥ (8,691) Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report using the straight-line method over the average expected remaining service years (mainly 10 years). Actuarial gains and losses are recognized in expenses using the straight- line method over the average expected remaining service years (mainly 10 years). Retirement benefits expenses included in the consolidated statements of income for the years ended March 31, 2011 and in the consolidated statements of income for the years ended March 31, 2011 Retirement benefits expenses included The discount rate used by STB Group were 1.5 – 2.0% Prior service cost is recognized in income or expenses The liabilities from the retirement benefits included in the consolidated balance sheets as of March 31, 2011 and 2010, consolidated balance sheets as of March the retirement benefits included in the The liabilities from Retirement Benefits Expenses Pension Fund Gain on Return of Substitute Portion of Employees’ Total Amortization of Prior Service Cost Amortization of Net Actuarial Gain Others Service Costs-benefits Earned during the Fiscal Period Service Costs-benefits Earned during the Interest Cost on Projected Benefit Obligation Expected Return on Plan Assets Net Amount Recognized in the Consolidated Balance Sheets Net Amount Recognized in the Consolidated Prepaid Pension Cost (-) Total Plan Assets (fair value) Plan Assets (fair value) Benefit Obligation Unfunded Projected Unrecognized Net Actuarial Gain Unrecognized Net Prior Service Cost Projected Benefit Obligation Projected Benefit Obligation 2010, consisted of the following: and 2.0% for the years ended March 31, 2011 and 2010. The rates of expected return on plan assets used by STB Group were 5.7% and 2.0 – 8.9% for the years ended March 31, 2011 and 2010, respectively. consisted of the following: Provision for Retirement Benefits Provision for Retirement 412 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (*) Showninnumbersofshares Financial Data:NotestoConsolidatedStatements 1. StockOptionPlans Stock OptionPlans (*) Showninnumbersofshares Total NumberandTypeofStockGranted(*) Total NumberandTypeofStockGranted(*) Year EndedMarch31,2010 Year EndedMarch31,2011 Exercise Period Required ServicePeriod Vesting Conditions Grant Date Number ofEligiblePersonsbyPositions Exercise Period Required ServicePeriod Vesting Conditions Grant Date Number ofEligiblePersonsbyPositions Consolidated Subsidiary:NikkoAssetManagementCo.,Ltd. (Directors, ExecutiveOfficers,Employees) (Directors, ExecutiveOfficers,Employees) to January21,2020 from January22,2012 exercise period es twoyearsfromthefirstdateof from thegrantdatetopass- tional year. quarter afteronesubsequentaddi- another year,andtheremainingone- exercisable date,one-quarterafter vest onJanuary22,2012,thefirst options. One-halfofthestockoptions Eligible employeesreceivedstock February 8,2010 Common Share 19,724,100 sharesof 271 to January21,2020 from January22,2012 exercise period es twoyearsfromthefirstdateof from thegrantdatetopass- tional year. quarter afteronesubsequentaddi- another year,andtheremainingone- exercisable date,one-quarterafter vest onJanuary22,2012,thefirst options. One-halfofthestockoptions Eligible employeesreceivedstock February 8,2010 Common Share 19,724,100 sharesof 271 Resolution duringtheFiscalYear2009 eouindrn h iclYa 09ResolutionduringtheFiscalYear2010 Resolution duringtheFiscalYear2009 Same asontheleft Same asontheleft Same asontheleft August 20,2010 Common Share 1,702,800 sharesof 48 Same asontheleft Same asontheleft Same asontheleft August 20,2010 Common Share 2,310,000 sharesof 1 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 413 — — — — — — — — 2,310,000 2,310,000 August 20, 2010 Resolution during the Fiscal Year 2010 — — — — — — — — Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Shares Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 1,702,800 1,702,800 Resolution during the Fiscal Year 2009 — — — — — — — — — — — — — — 231,000 165,000 Shares 19,328,100 19,559,100 19,724,100 19,559,100 February 8, 2010 February 8, 2010 August 20, 2010 Resolution during the Fiscal Year 2009 At the Beginning of the Fiscal Year Vested Exercised Forfeited At the End of the Fiscal Year At the Beginning of the Fiscal Year At the Beginning of the Granted Forfeited Vested At the End of the Fiscal Year At the Beginning of the Fiscal Year Vested Exercised Forfeited At the End of the Fiscal Year At the Beginning of the Fiscal Year Granted Forfeited Vested At the End of the Fiscal Year Vested Stock Options Unvested Stock Options Vested Stock Options Unvested Stock Options Grant Date Year Ended March 31, 2010 Grant Date Year Ended March 31, 2011 (*) Shown in numbers of shares (*) Shown in numbers of shares 2. Size and Change of Stock Options 2. Size and Change Options (1) Number of Stock 414 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. (2) PriceInformation 1. DeferredTaxAssetsandLiabilities Income Taxes (*) Priceisusingestimatemethodofintrinsicvalue(differencebetweenpricerecentinvestmentandexerciseprice)instea (*) Priceisusingestimatemethodofintrinsicvalue(differencebetweenpricerecentinvestmentandexerciseprice)instea Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:NotestoConsolidatedStatements March 31 Grant Date Year EndedMarch31,2010 Grant Date Year EndedMarch31,2011 Fair PriceontheGrantDate(*) Exercise Price Deferred TaxLiabilities Deferred TaxLiabilities: Deferred TaxAssets Deferred TaxAssets: Fair PriceontheGrantDate(*) Exercise Price Income taxes,whichconsistofcorporation,inhabitantandenterprisearecalculatedbasedontaxableincome. Amount SetOffAgainstDeferredTaxAssets Others Valuation DifferenceonAvailable-for-SaleSecurities Deferred GainsorLossesonHedges Retirement BenefitsTrust Amount SetOffAgainstDeferredTaxLiabilities Valuation Allowance Others Tax LossesCarriedForward Provision forRetirementBenefits Allowance forLoanLosses Devaluation ofSecurities Subtotal Subtotal (including DirectWrite-offsofLoanswithGuaranteesorCollateral) the FiscalYear2009 Resolution during February 8,2010 August 20,2010 February 8,2010 Shares 625 ¥ 625 ¥ 0 0 the FiscalYear2009 Resolution during 625 ¥ Shares 0 30 ¥ 50,880 ¥ 100,178 ¥ 161,792 ¥ 64,904 ¥ (50,850) (50,850) (10,764) 2011 32,645 31,927 17,811 43,306 d offairprice. d offairprice. 8,142 3,440 6,651 3,842 Millions ofYen 34 ¥ 43,498 ¥ 79,131 ¥ 145,868 ¥ 34,522 ¥ (43,464) (43,464) (23,271) 2010 23,979 21,090 10,943 22,513 56,799 7,254 5,868 6,396 the FiscalYear2010 Resolution during August 20,2010 625 ¥ 0 U.S. Dollars Millions of $0 612 $ 781 $ 1,205 $ 1,946 $ 2011 (612) (612) (129) 393 384 214 521 98 41 80 46 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 415 — — 9,664 — 17,734 34,489 17,462 17,316 26,727 2.49 879,553 746,396 849,099 743,124 (1.80) (1.92) 2010 40.60% 10.50 49.87% ¥ 879,553 ¥¥ 133,157 20,551,049 ¥ 849,099 ¥¥ 105,974 20,926,094 — — — — — — — 9.47% (2.66) (2.95) (18,882) (18,882) (12,762) 2011 (13,831) (13,831) (27,978) 40.59% (12.77) (12.74) ¥— ¥ (6,120) ¥ (586,603) ¥— ¥— ¥ 14,146 ¥ (731,230) 9,664 18,882 17,734 34,489 17,462 17,316 26,727 13,831 898,436 759,158 862,931 771,102 Total Elimination Consolidated Total Elimination Consolidated ¥ 879,553 ¥¥ 139,278 21,137,653 ¥¥ 21,657,325 91,828 ¥ 849,099 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Millions of Yen Millions of Yen 925 598 971 604 158 6,101 4,601 66,934 97,784 34,458 98,985 106,627 Business Business ¥ 65,963 ¥ (30,850) ¥ 349,882 ¥ 98,059 ¥ (7,642) ¥ 364,815 Financial-related Financial-related — — 425 362 1,409 1,214 1,323 1,010 317,218 308,379 312,422 300,413 Leasing Leasing Business Business ¥ 316,856 ¥¥ 1,122,425 8,838 ¥¥ 12,008 1,122,671 ¥ 311,997 29 3,563 17,549 15,806 16,293 12,481 15,308 20,912 514,284 352,994 451,523 364,060 Business Business Trust Banking Trust Banking ¥ 496,734 ¥¥ 161,289 19,665,344 ¥¥ 20,169,838 87,463 ¥ 439,042 Relating to the Business Reorganization of Subsidiaries Relating to the Business Permanent Differences (e.g. Cash Dividends Received) Permanent Differences Others Impairment of Goodwill Allowance Change in Valuation Specific in a Consolidated Basis, Temporary Differences Unaffiliated Customers Intersegment Unaffiliated Customers Intersegment The following tables present information attributable by business for the fiscal years ended March 31, 2011 and 2010, attributable by business for the fiscal years ended March 31, 2011 and The following tables present information Effective Income Tax Rate Years Ended March 31 Rate Effective Statutory Tax Adjustments: Depreciation and Amortization Impairment Loss Capital Expenditure Total Expenses Income (Losses) before Income Taxes Total Assets Total Income Income: Impairment Loss Capital Expenditure Income (Losses) before Income Taxes Total Assets Depreciation and Amortization Total Income Total Expenses Income: Year Ended March 31, 2010 Year Ended March 31, 2011 and identifiable assets of each business as of March 31, 2011 and 2010. and identifiable assets of each business 1. Business Segments Segment Information 2. The Reconciliation of the Statutory Tax Rate to the Effective Income Tax of the Statutory Tax Rate to the Effective 2. The Reconciliation 416 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. result, comparedwiththeprevioustreatments,incomefor 31, 2008)inthefiscalyearendedMarch2011.As a Asset RetirementObligations”(issuedbyASBJonMarch Guidance No.21“GuidanceonAccountingStandardfor (issued byASBJonMarch31,2008)andImplementation “Accounting StandardforAssetRetirementObligations” STBGrouphasadoptedASBJStatementNo.18 (5) CapitalexpendituresincludeITrelatedinvestments. (4) profit ofcompaniesinotherindustries. before incometaxes,insteadofgrosssalesandoperating Thetablesabovelisttotalincomeand(losses) (3) Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report as follows: Theprimarycontentsofeachbusinesssegmentare (2) ness ofeachconsolidatedsubsidiary. Businesssegmentisdeterminedbytheprincipalbusi- (1) Financial Data:NotestoConsolidatedStatements Year EndedMarch31,2011 Capital Expenditure Impairment Loss Depreciation andAmortization Total Assets Income (Losses)beforeTaxes Total Expenses Total Income Income: 3) Financial-related Business:realestatesecuredloan, 2) LeasingBusiness:leasingbusiness. 1) Trust BankingBusiness:trustbankinganditssupple- Intersegment Unaffiliated Customers credit cardsandotherbusinesses. mental andassociatedbusiness. Trust Banking 242,572 $ 1,052 $ 5,280 $ Business 4,378 5,430 251 184 150 43 13,502 144 $ $ 3,752 $ Business Leasing 3,613 3,757 15 17 — 5 idated subsidiary,forthefiscalyearendedMarch31,2011. ed ¥6,041millionofthatgoodwillrelatedtoFC,aconsol- Impairment lossfor“Financial-relatedBusiness” includ- (7) million. increased by¥5,013 previous treatments,incomefor“TrustBankingBusiness” tives fromhostcontracts.Asaresult,comparedwiththe expertise intheareaofbifurcationembeddedderiva- improved ontheadministrativestructureandenhancedits operation. TheaccountingchangewasmadesinceSTB more appropriatefinancialconditionsandtheresultsof host contractsandaccountedforasderivativestopresent 2011, embeddedderivativeshavebeenbifurcatedfrom previous fiscalyear.FortheyearendedMarch31, gle financialinstrumentsincludedinhostcontractsuntilthe cated fromhostcontracts,hadbeenaccountedforassin- EmbeddedDerivatives,whichdonotneedtobebifur- (6) ¥32 million,respectively. and incomefor“Financial-relatedBusiness”decreasedby income for“LeasingBusiness”decreasedby¥10million “Trust BankingBusiness”decreasedby¥122million, Financial-related Business 4,387 $ (92) $ 1,179 $ Millions ofU.S.Dollars 1,282 1,190 11 55 73 7 260,461 $ 1,104 $ 10,212 $ oa lmnto Consolidated Elimination Total 10,378 9,274 321 116 208 166 (8,794) $ 170 $ $— (336) (166) (166) — — — 251,667 $ 1,275 $ 10,212 $ 10,212 8,937 321 116 208 — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 417 — — 8,937 10,212 879,553 746,396 — ¥¥ 133,157 20,551,049 ¥ 879,553 $ 10,212 $$ 1,275 251,667 849,099 743,124 (423) (423) (417) ¥ 849,099 ¥¥ 105,974 20,926,094 (47,543) (47,543) (36,959) ¥— ¥¥ (10,584) (1,847,314) $— $— $(6) $ (9,816) (35,132) (35,132) (34,649) 423 9,354 ¥— ¥— ¥¥ (816,215) (483) 10,634 35,132 47,543 884,232 777,773 927,097 783,355 ¥ 879,553 ¥¥ 143,742 22,398,364 $$ 1,280 261,483 $ 10,212 ¥ 849,099 ¥¥ 106,458 21,742,310 Total Elimination Consolidated Total Elimination Consolidated Total Elimination Consolidated 29 211 173 2,425 2,439 17,553 14,415 15,919 14,164 ¥ 13,480 ¥¥ 1,755 592,541 $ 182 ¥ 15,127 $$ 38 9,311 ¥¥ 3,137 774,192 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Oceania Oceania Oceania Asia and Asia and Asia and Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Millions of Yen Millions of Yen 41 240 276 3,421 2,579 Millions of U.S. Dollars 19,915 22,983 32,009 21,878 ¥ 29,429 ¥ 10,130 ¥ 741,839 $ 198 ¥ 16,494 $$ (37) 6,190 ¥ (3,068) ¥ 514,714 234 491 275 19,438 40,866 22,860 21,838 56,014 24,849 ¥ 34,175 ¥¥ 31,164 1,534,849 $ 258 $$ 217 17,895 ¥ 21,427 ¥¥ 18,005 1,488,004 Americas Americas Americas 118 9,847 9,692 8,629 20,685 823,154 722,461 805,897 717,513 Japan Europe Japan Europe Japan Europe ¥ 802,468 ¥¥ 100,692 19,529,133 $ 9,574 $$ 1,063 228,087 ¥ 796,050 ¥¥ 18,965,399 88,384 Unaffiliated Customers Intersegment Intersegment Unaffiliated Customers Unaffiliated Customers Unaffiliated Customers Intersegment The following tables present information attributable to domestic and overseas operations for the fiscal years ended domestic and overseas operations for present information attributable to The following tables Income (Losses) before Income Taxes Total Assets Total Income Total Expenses Income: Total Income Total Expenses Income (Losses) before Income Taxes Total Assets Income: Income (Losses) before Income Taxes Total Assets Total Income Total Expenses Income: Year Ended March 31, 2011 Year Ended March 31, 2010 Year Ended March 31, 2011 2. Geographic Segments as of March 31, 2011 and 2010. 2010, and identifiable assets of each operation March 31, 2011 and 418 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report from transactionsofoverseasbranchesSTBandconsoli- (2) Totalincomefromoverseasoperationsconsistsof tions insteadofgrosssalescompaniesinotherindustries. (1) Thetableaboveshowstotalincomefromoverseasopera- 3. TotalIncomefromOverseasOperations result, comparedwiththeprevioustreatments,incomefor 31, 2008)inthefiscalyearendedMarch2011.Asa Asset RetirementObligations”(issuedbyASBJonMarch Guidance No.21“GuidanceonAccountingStandardfor (issued byASBJonMarch31,2008)andImplementation “Accounting StandardforAssetRetirementObligations” (3) STBGrouphasadoptedASBJStatementNo.18 includes Singapore. includes theUnitedKingdomand“Asia/Oceania” (2) “Americas”includetheUnitedStates,“Europe” profit ofcompaniesinotherindustries. business relationship,insteadofgrosssalesandoperating geographic proximity,similarityineconomicactivitiesand before incometaxes,whichareclassifiedbyregionsof (1) Thetablesabovelisttotalincomeand(losses) Financial Data:NotestoConsolidatedStatements Years EndedMarch31 (A)/(B) Consolidated TotalIncome(B) Total IncomefromOverseasOperations(A) Total incomefromoverseasoperationsforthefiscalyearsendedMarch31,2011and2010consistedoffollowing: graphic segmentinformationisnotpresented. tions arenotcategorizedbytransactionparty,andgeo- among consolidatedcompanies).Theseextensivetransac- dated overseassubsidiaries(excludinginternaltotalincome increased by¥5,013million. compared withtheprevioustreatments,income“Japan” embedded derivativesfromhostcontracts.Asaresult, enhanced itsexpertiseintheareaofbifurcation since STBimprovedontheadministrativestructureand results ofoperation.Theaccountingchangewasmade present moreappropriatefinancialconditionsandthe from hostcontractsandaccountedforasderivativesto 31, 2011,embeddedderivativeshavebeenbifurcated the previousfiscalyear.ForyearendedMarch gle financialinstrumentsincludedinhostcontractsuntil fromhostcontracts,hadbeenaccountedforassin- cated (4) EmbeddedDerivatives,whichdonotneedtobebifur- “Japan” decreasedby¥165million. 53,048 ¥ 849,099 Except forPercentages 2011 6.2% Millions ofYen, 77,085 ¥ 879,553 2010 8.8% U.S. Dollars Millions of 638 $ 10,212 2011 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 419 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report STB Group’s businesses consist of five reportable segments, STB Group’s businesses segment are based on net business profit before credit segment are based on net business capacity. Asset fig- costs, which indicates bank’s earning reported to the ures are not disclosed, as they are not Board of Directors for the purpose of resource allocation and performance assessment. Inter-segment transactions are priced on an arm’s length basis. namely, “Retail Financial Services Business,” “Wholesale namely, “Retail Financial Business,” “Global Markets Business,” Financial Services “Real Estate Business.” The out- “Fiduciary Services Business,” segments is as follows. line of these reportable rate Loan, Asset Management, Asset Securitization Arrangements, rate Loan, Asset Management, Asset Securitization Pension Consulting Services and others), Investment Management Business Pension Consulting Services and others), Advisory Service for Institutional (Investment Product Sales and Investment Investors and Individual Clients) and others Loan and others in Corporate Bonds and Asset- Consulting for Corporate Clients, Investment Equity, Stock Transfer Agency and others backed Securities, Investment in Private Investment Trust, Tokkin and Others) Securities Processing Services (Custody, Real Estate Appraisal Services Investment Consulting, Real Estate Management, The reportable segments of STB Group compose of the The reportable segments Accounting method of the reportable segment is “Global Markets Business”:“Fiduciary Services Business”: Sales and others Dealing, Security Investment, Derivatives Management, Pension Trust Business (Pension Plan Designing, Pension Asset “Retail Financial Services Business”: related to Financial Assets for Individual Clients, Individual Portfolio Consulting sections of businesses whose discrete financial information sections of businesses which are regularly reviewed by the are available, and for resource allocation and perform- Board of Directors ance assessment. 4. Segment Information Segments (1) Outline of Reportable almost the same to the mention in “Significant Accounting Policies and Practices.” Profit figures by the reportable (2) Basis of Measurement of the Amount of Gross Business (2) Basis of Measurement of the Amount Losses, Assets and Profit before Credit Costs, Profits or other Items by Reportable Segment “Wholesale Financial Services Business”: Corpo “Real Estate Business”: Estate Securitization-related Business, Real Estate Real Estate Brokerage, Real 420 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report holdings –internaltransactions(dividendsandothers) method (non-recurringeffectadjusted)xratioofequity ordinary profitofaffiliatesaccountedforbytheequity sidiaries’ ordinaryprofit(non-recurringeffectadjusted) + net businessprofitbeforecreditcosts+consolidatedsub- Net businessprofitbeforecreditcosts=non-consolidated earning capacityandiscalculatedasfollows. 2) Netbusinessprofitbeforecreditcostsindicatesbank’s costs insteadofgrosssalescompaniesinotherindustries. 1) Thetableabovelistsgrossbusinessprofitbeforecredit ment forthefiscalyearendedMarch31,2011. (3) InformationrelatedtoGrossBusinessProfitbeforeCreditCosts,ProfitsorLossesandotherItemsbyReportableSegment Financial Data:NotestoConsolidatedStatements Year EndedMarch31,2011 Year EndedMarch31,2011 Others Others Net BusinessProfitbefore General andAdministrativeExpenses Gross BusinessProfitbefore Net BusinessProfitbefore General andAdministrativeExpenses Gross BusinessProfitbefore The followingtablespresentgrossbusinessprofitbeforecreditcosts,profitsandlossesotheritemsbyreportableseg- Net IncomefromAffiliatesby Credit Costs(Note2) Credit Costs(Note1) Net IncomefromAffiliatesby Credit Costs(Note2) Credit Costs(Note1) Equity Method(Note4) Equity Method(Note4) $— 950 $ ¥— 79,021 ¥ Financial Financial Business Business Services Services 14,879 64,141 Retail Retail 179 771 $23 1,734 $ 1,904 ¥ 144,214 ¥ Wholesale Wholesale Financial Financial Business Business Services Services 89,555 54,658 1,077 657 $— 664 $ 55,227 ¥ ¥— Business Business Markets Markets Reportable Segment Reportable Segment Global Global 46,100 income was¥2,395million. sponding figureontheconsolidatedstatementsof Group. Thedifferencebetweentheaboveandcorre- effect adjusted)byratioofequityownershipheldSTB lated bymultiplyingtheirordinaryprofits(non-recurring 4) Netincomefromaffiliatesbyequitymethodwascalcu- stocks andothers. ment, costofcapitalfundinganddividendsincomefrom administrative expensesthatarenotallocatedtoanyseg- business profitbeforecreditcosts,andincludedgeneral 3) “Others”comprisegainsandlossesexcludedfromnet 9,127 554 110 $11 1,036 $ 907 ¥ 86,179 ¥ Fiduciary Fiduciary Millions ofU.S.Dollars Business Business Services Services 28,730 57,449 Millions ofYen 346 691 Real Estate Real Estate $2 289 $ 167 ¥ 24,045 ¥ Business Business 10,245 13,800 123 166 $36 4,675 $ 2,980 ¥ 388,687 ¥ Subtotal Subtotal 189,510 199,176 2,279 2,395 $25 128 $ 10,618 ¥ 2,069 ¥ (Note 3) (Note 3) Others Others (15,276) 25,895 (184) 311 $61 4,802 $ 5,050 ¥ 399,306 ¥ 174,233 225,072 Total Total 2,095 2,707 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 421 21 51 (73) (39) (68) 220 (116) (128) (184) (148) (439) (102) 2011 $ 2,279 $ 1,275 Millions of U.S. Dollars 1,776 4,223 (8,516) (6,051) (9,664) (3,233) (5,620) 18,322 (15,276) (12,344) (36,503) (10,649) 2011 ¥ 189,510 ¥ 105,974 Millions of Yen Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report For the fiscal year ended March 31, 2011, income generat- (Additional Information) No.17 “Accounting STB Group has adopted ASBJ Statement of an Enterprises Standard for Disclosures about Segment on March 27, 2009) and Related Information” (issued by ASBJ “Guidance on and Implementation Guidance No.20 Segment of an Accounting Standard for Disclosures about (issued by ASBJ on Enterprises and Related Information” March 21, 2008) from the fiscal year ended March 31, 2011. (3) Information by Major Customer ed by the transactions with STB and STB’s customer is not disclosed in this section, because a huge number of transac- tions are not classified by customers. For the fiscal year ended March 31, 2011, this informa- The following table present gross business profit before credit costs, profits and losses and other items by reportable credit costs, profits and losses and other present gross business profit before The following table For the fiscal year ended March 31, 2011, this informa- Income before Income Taxes and Minority Interests Income before Income Taxes and Minority Gains on Return of Substitute portion of Employees’ Pension Fund Gains on Return of Substitute portion of Employees’ Provision for Relocation Expenses excluded from Reportable Segment Other Profit related to Consolidated Subsidiaries Losses on Impairment of Fixed Assets Losses on Investment in Associations Expenses related to Integration Total Substantial Credit Costs (Note 1) Amortization of Goodwill Net Gains on Stock-related Derivatives Transactions (Note 2) Net Gains on Sales of Stocks and Other Securities Total of Profit by Segment “Others” Net Gains classified to Service Cost Amortization of Net Actual Gain and Prior Year Ended March 31 1) Total substantial credit costs consisted of other ordinary 1) Total substantial credit costs consisted expenses on secu- expenses, consolidated total credit costs, and overseas rities (bonds, stocks and others) for domestic costs of affiliates credit investment and consolidated credit equity in earn- accounted for by the equity method included ings of affiliates. securities are the 2) Net gains on sales of stocks and other net gains/losses from disposal of stocks and other securities and losses on impairment of stocks and other securities. tion is not disclosed in this section, because more than 90% of tangible fixed assets of STB Group are domiciled in Japan. (2) Information by Geographical Location segment for the fiscal year ended March 31, 2011. segment for the fiscal tion is not disclosed in this section, because it would be similar to the reportable segment information. (4) Reconciliation from Total Net Business Profit before Credit Cost by Reportable Segments to Income before Income Credit Cost by Reportable Segments Total Net Business Profit before (4) Reconciliation from Statements of Income Taxes in the Consolidated 5. Other Informations Related to Segment (1) Information by Services 422 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 8. Information relatedtoGainonNegativeGoodwillbyReportableSegment ¥6,041 millionandunamortizedbalanceofgoodwillis¥123,258million. cated tothereportablesegment. 7. Information relatedtoAmortizationofGoodwillandUnamortizedBalancebyReportableSegment million oflossesonimpairmentgoodwill. 6. Information relatedtoLossesonImpairmentofFixedAssetsbyReportableSegment Financial Data:NotestoConsolidatedStatements Related PartyTransactions 1. Net incomepercommonshareandnet(fully-diluted)forthe fiscalyearsendedMarch31, Amount perCommonShare Year EndedMarch31,2011 Fully-Diluted NetIncomeperCommonShare Basic NetIncomeperCommonShare There arenocorrespondingitemsforthefiscalyearendedMarch31,2011. For thefiscalyearendedMarch31,2011,amortizationofgoodwillis¥8,516million,lossesonimpairment For thefiscalyearendedMarch31,2011,amortizationofgoodwillandunamortizedbalancearenotallo- Losses onimpairmentoffixedassetsforthefiscalyearendedMarch31,2011are¥9,664million,whichinclude¥6,041 For thefiscalyearendedMarch31,2011,lossesonimpairmentoffixedassetsarenotallocatedtoreportablesegment. There arenomaterialtransactionswithrelatedpartiestobereportedforthefiscalyearsendedMarch31,2011and2010. 2011 and2010consistedofthefollowing: Net IncomeAvailabletoCommonShareholders Net IncomeAvailabletoCommonShareholders Net IncomeUnavailabletoCommonShareholders Net Income with AssumedConversions Including DividendsonPreferredShares Net Income(Loss) [Millions ofYen] (Numerator) 83,509 ¥ 78,898 78,898 4,610 4,610 [Thousands ofShares] Share Outstanding Average Common (Denominator) 1,674,553 1,674,553 Per Common 47.11 ¥ Amount Share [Yen] 47.11 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 423 30.17 [Yen] [Yen] [Yen] Share Share Amount Amount ¥ 30.17 Net Assets Per Common per Common Net Asset per Common Share 1,674,587 1,674,587 Outstanding Outstanding (Denominator) (Denominator) (Denominator) Common Share Common Share Average Common Share Outstanding [Thousands of Shares] [Thousands of Shares] [Thousands of Shares] Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report (2,305) (2,305) 2,646 2,646 50,533 50,533 (415,759) (109,000) (304,454) (413,131) (109,000) (301,826) 1,091,336 1,674,537 ¥651.72 1,036,813 1,674,571 ¥619.15 ¥ 53,180 Net Assets Net Assets (Numerator) (Numerator) (Numerator) ¥ 1,507,095 ¥ 1,449,945 [Millions of Yen] [Millions of Yen] [Millions of Yen] Net Income (Loss) Including Dividends on Preferred Shares Including Dividends on with Assumed Conversions Issue Amount of Preferred Shares Dividends on Preferred Shares Minority Interests Issue Amount of Preferred Shares Dividends on Preferred Shares Minority Interests Net Income Available to Common Shareholders Net Income Available to Common Shareholders Net Income Available Net Income to Common Shareholders Net Income Unavailable Net assets per common share is calculated as dividing net assets excluding the amount of preferred shares and divi- as dividing net assets excluding the amount of preferred shares and Net assets per common share is calculated For the fiscal year ended March 31, 2011 and 2010, there were no dilutive securities outstanding. The outline of poten- For the fiscal year ended March 31, 2011 and 2010, there were no dilutive securities (Warrant issued by the consolidated subsidiary) Nikko Asset Management Co., Ltd.(Nikko AM) Warrant (Stock Option) 412–414. The details of the warrant above are described in “Stock Option Plans” on pages Net Assets Available to Common Shareholders Net Assets as Reported Less: Net Assets Available to Common Shareholders Net Assets Available to Common Shareholders Net Assets as Reported Less: March 31, 2010 March 31, 2011 Fully-Diluted Net Income per Common Share Fully-Diluted Net Income Basic Net Income per Common Share Basic Net Income per Year Ended March 31, 2010 2. Net assets per common share for the fiscal years ended March 31, 2011 and 2010 consisted of following: 2. Net assets per common share for the dends on preferred shares outstanding by the number of common shares outstanding at each year-end. dends on preferred shares outstanding tial common share excluded from net income per common share (fully-diluted) was as follows: tial common share excluded from net income per common share (fully-diluted) 3. Net Income per Common Share (Fully-Diluted) 424 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (1) Name andBusinessContentofAcquiredCompany 1. OutlineofBusinessCombination Sumitomo MitsuiTrustHoldings,Inc.(hereinafter“SMTH”). the effectivedate.CMTHchangeditstradenameto 2010, theshareexchangewasperformedonApril1,2011as general meetingofshareholdersheldonDecember22, CMTH. Subsequenttotheapprovalatextraordinary agreement andamanagementintegrationwith Share Exchange Significant SubsequentEvents Financial Data:NotestoConsolidatedStatements company, andSTBbecamethewhollyownedsubsidiary. (4) LegalFormofBusinessCombination (3) DateofBusinessCombination agility oftheCMTHgroup. strengths, suchasthediversityofSTBgroupand and othermanagerialresourcesfusingbothgroups’ than everbefore,bycombiningtheirpersonnel,know-how better andswiftercomprehensivesolutionstotheirclients expertise andcomprehensivecapabilities,willprovide trust bankgroupthat,withacombinationofsignificant (2) MainReasonsforBusinessCombination Name ofacquiredcompany Business content On August24,2010,STBconcludedashareexchange Share exchange,underwhichCMTHbecametheparent April 1,2011 STB andCMTHaimtocreate“TheTrustBank,”anew Bank holdingcompany Chuo MitsuiTrustHoldings,Inc. (1) ShareExchangeRatiobyTypeof 3. Share ExchangeRatiobyTypeofShare,Calculation 2. AcquisitionCostoftheAcquiredCompany acquired companyforaccountingpurpose. sidered tobetheacquiringcompanyandCMTH share exchangeisareverseacquisitionwhereSTBcon- the AccountingStandardforBusinessCombinations,this STB becamethemajorityshareholdersofCMTH.Basedon acquired bySTB)and,cumulatively,theex-shareholdersof owned subsidiaryofCMTH(thereforenovotingrights shares inSTBforofCMTH,becameawholly 1, 2011inwhichtheshareholdersofSTBexchangedtheir (6) Acquired VotingRightsRatio,Determinationofthe (5) NameofCompanyafterBusinessCombination Shares ofSMTHhasbeenallottedanddelivered. STB, oneshareoftheFirstSeriesClass7Preferred ted anddelivered. mon shareofSMTH(formerlyCMTH)havebeenallot- 2) PreferredShares 1) CommonShares ¥489,114 million Following thecompletionofshareexchangeonApril Sumitomo MitsuiTrustHoldings,Inc. Method, andNumberofSharesDelivered Acquiring CompanyanditsGrounds For eachFirstSeriesofClass2PreferredShares For eachcommonshareofSTB,1.49sharescom- Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 425 Financial Data: Notes to Consolidated Financial Statements Financial Consolidated to Notes Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 2,495,060,141 shares 109,000,000 shares and Reason for Recognizing Negative Goodwill and Reason for Recognizing on Date of Business Combination ¥43,431 million the acquisition STB accounted for the difference between Total AssetsLoans and Bills DiscountedTotal Liabilities ¥ 8,855,145 million Deposits of Gain on The figures described above “4. Amount ¥ 14,158,131 million ¥ 13,437,699 million 9,326,751 million ¥ 1) Common Shares 2) Preferred Shares 4. Amount of Gain on Amortization of Negative Goodwill Amount of Gain on Amortization 4. Negative Goodwill (1) Amount of Gain on Amortization of (2) Reason for Recognizing Negative Goodwill assets of CMTH as cost of CMTH and the STB’s share of net negative goodwill. Assumed Amounts of Assets Acquired and Liabilities 5. (1) Assets (2) Liabilities and Reason for Amortization of Negative Goodwill Recognizing Negative Goodwill” and “5. Amounts of Assets Acquired and Liabilities Assumed on Date of Business Combination” are the expected amounts based on available information as of the filing date of financial statement. (3) Number of Shares Delivered (3) Number of Shares In order to support the respective efforts of STB and In order to support and condi- STB and CMTH had agreed that the terms 1) Common Shares 2) Preferred Shares CMTH to ensure the fairness of the exchange ratio of CMTH to ensure the “Common Share Exchange common shares (hereinafter exchange, STB had requested UBS Ratio”) for this share Ltd. and Daiwa Securities Capital Securities Japan to perform financial analyses, while Markets Co., Ltd., Japan Co., CMTH had requested JP Morgan Securities to perform similar Ltd. and Nomura Securities Co., Ltd. financial analy- analyses. Referring to the results of those conducted ses, STB and CMTH, on several occasions, on the Common careful negotiations and discussions taking into con- Share Exchange Ratio, comprehensively position, assets, sideration factors such as the financial a result, STB and and future prospects of each party. As that the above CMTH have reached the conclusion Common Share Exchange Ratio is appropriate. Shares of tions of the First Series of Class 7 Preferred as those of the SMTH shall be substantially the same of STB, and First Series of Class 2 Preferred Shares share exchange reached the conclusion that the above after compre- ratio for preferred shares is appropriate, the “bond-type” hensively taking into consideration nature of those shares and the fact that there is no mar- ket price for the First Series of Class 2 Preferred Shares of STB. (2) Calculation Method of the Share Exchange Ratio (2) Calculation Method Financial Data: Independent Auditors’ Report Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. Financial Data/ The Sumitomo Trust and Banking Co., Ltd. Basel II Qualitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd. Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
426 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 427 0 448 509 106 240 504 7,608 3,662 5,192 2,696 52,788 20,677 75,279 26,626 2011 784,579 106,173 155,747 304,052 206,436 106,470 112,881 Millions of $ 4,008 $ 988,340 $ 988,340 U.S. Dollars 0 8,521 74,774 43,940 37,721 30,900 554,630 372,763 430,969 195,020 2010 5,435,133 2,406,475 8,945,597 4,418,089 1,598,623 12,284,982 23,576,929 16,414,987 10,116,344 61,043,709 10,226,782 ¥ 398,476 ¥ 79,307,687 ¥ 79,307,687 0 Millions of Yen 8,789 19,991 41,919 37,258 42,300 431,710 224,182 632,625 304,471 2011 6,259,408 2,213,913 8,852,959 9,386,073 8,828,321 4,389,286 1,719,324 12,950,352 25,281,927 17,165,115 65,237,739 ¥ 82,180,452 ¥ 82,180,452 ¥ 333,232 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report
Other Trusts Total Liabilities Money Claim Trusts Land and Fixtures Trusts Composite Trusts Securities Investment Trusts Money Entrusted, other than Money Trusts Securities Trusts Pension Trusts Property Formation Benefit Trusts Loan Trusts (Note 5) Cash and Due from Banks Total Assets Liabilities: Money Trusts (Note 4) Other Claims Call Loans Loans to Banking Account (Note 3) Money Claims Tangible Fixed Assets Intangible Fixed Assets Securities (Note 2) Money Held in Trust Accounts Securities Held in Custody Assets: (Note 1) Loans and Bills Discounted As of March 31
See accompanying notes. Financial Data: Financial (Unaudited) Account of Trust Statements Financial Data: Notes to Statements of Trust Account (Unaudited)
Basis of Presenting Financial Statements
Financial Summary/ The trust account is separated from the banking account in accordance with the Trust Act of Japan which requires trustees to administer the trust accounts separately from other accounts. U.S. dollar amounts are translated solely for convenience at the rate of ¥83.15 to U.S. $1.00, as of March 31, 2011. The Sumitomo Trust and Banking Co., Ltd.
Notes to Statements of Trust Account 1. Loans and Bills Discounted Loans and bills discounted as of March 31, 2011 and 2010 consisted of the following:
Millions of Yen Millions of U.S. Dollars 2011 2010 2011 Loans on Deeds ¥ 207,040 ¥ 260,262 $ 2,490 Loans on Bills 126,191 138,213 1,518 Total ¥ 333,232 ¥ 398,476 $ 4,008 Financial Data/
The balances of guaranteed trust account loans as of March 31, 2011 and 2010 stood at ¥179,271 million and ¥262,731 million respectively, which included the following:
The Sumitomo Trust and Banking Co., Ltd. Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Other Delinquent Loans ¥ 15,570 ¥ 13,292 $ 187 Restructured Loans 508 119 6
Note: Refer to page 368 for the definition of each item.
2. Securities Securities held as of March 31, 2011 and 2010 consisted of the following:
Millions of Millions of Yen U.S. Dollars 2011 2010 2011 Government Bonds ¥ 137,768 ¥ 94,556 $ 1,657 Local Government Bonds 29 29 0 Basel II Qualitative Disclosure Data/ Corporate Bonds 31,824 43,443 383 The Sumitomo Trust and Banking Co., Ltd. Stocks 48 68 1 Foreign Securities 462,952 416,531 5,568 Total ¥ 632,625 ¥ 554,630 $ 7,608
3. Loans to Banking Account Loans to banking account are surplus funds generated through the management of trust assets, presented as bor- rowed money from trust accounts in the banking account. Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
428 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 429 3 2 1 3 — 10 240 236 4,576 6,719 2011 2011 $— $ 240 $ 240 $ 6,733 $ 2,156 $ 6,733 Millions of Millions of U.S. Dollars U.S. Dollars — 48 604 689 437 623 73,486 74,780 2010 2010 322,386 584,105 ¥ 585,166 ¥ 74,780 ¥ 74,780 ¥— ¥ 262,731 ¥ 585,166 — 48 Millions of Yen Millions of Yen 211 176 277 849 19,991 19,603 2011 2011 558,721 380,527 ¥ 19,991 ¥ 19,991 ¥— ¥ 179,271 ¥ 559,847 ¥ 559,847 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Notes to Statements of Trust Account (Unaudited) Account Trust of Statements to Notes Data: Financial statements of trust accounts as of March 31, 2011 and 2010 statements of trust accounts as of March the following figures are calculated on this basis. However, managed by STB. include funds reinvested from other trusts accounts to prevent duplication. The figures in the accom- accounts to prevent of trust accounts as of March 31, 2011 panying statements on this basis. However, the follow- and 2010 are calculated funds reinvested from other trusts man- ing figures include aged by STB. Funds in a trust account that are reinvested in other trusts Funds in a trust account that are reinvested STB makes provisions for possible loan losses from Jointly- STB makes provisions that are reinvested in other Funds in a trust account Others Total Total Liabilities: Principal Reserve for Possible Impairment of Principal Loans and Bills Discounted Securities Others Assets: Others Total Total Liabilities: Principal Reserve for Possible Impairment of Principal Loans and Bills Discounted Securities Others Assets: managed by STB are deducted from these other accounts managed by STB are deducted from these the accompanying to prevent duplication. The figures in 5. Balance of Loan Trusts operated money trusts (“JOMTs”). JOMTs are included in (“JOMTs”). JOMTs are included operated money trusts of trust accounts. money trusts in the statement STB are deducted from these other trusts managed by 4. Balance of Jointly-Operated Money Trusts 4. Balance of Jointly-Operated Financial Data: Non-consolidated Balance Sheets (Unaudited) The Sumitomo Trust and Banking Co., Ltd. as of March 31, 2011 and 2010
Millions of Millions of Yen U.S. Dollars Financial Summary/ 2011 2010 2011 Assets: Cash and Due from Banks: ¥ 580,834 ¥ 828,856 $ 6,985 The Sumitomo Trust and Banking Co., Ltd. Cash 76,809 65,661 924 Due from Banks 504,025 763,194 6,062 Call Loans 15,326 86,485 184 Receivables under Resale Agreements 33,260 — 400 Monetary Claims Bought 192,099 266,748 2,310 Trading Assets: 642,224 808,394 7,724 Trading Account Securities 23,034 9,661 277 Derivatives of Trading Securities — 41 — Derivatives of Securities Related to Trading Transactions — 7 — Trading-related Financial Derivatives 242,369 263,766 2,915 Other Trading Assets 376,821 534,918 4,532 Money Held in Trust 22,228 22,345 267 Financial Data/ Securities: 4,950,002 4,474,366 59,531 Government Bonds 2,070,928 1,451,625 24,906 Local Government Bonds 20,519 11,829 247 Corporate Bonds 556,107 448,890 6,688 The Sumitomo Trust and Banking Co., Ltd. Stocks 869,890 956,829 10,462 Other Securities 1,432,556 1,605,191 17,229 Loans and Bills Discounted: 12,153,693 11,921,476 146,166 Bills Discounted 2,774 4,113 33 Loans on Bills 221,989 242,833 2,670 Loans on Deeds 10,148,098 9,981,067 122,046 Overdrafts 1,780,829 1,693,462 21,417 Foreign Exchanges: 5,658 5,553 68 Due from Foreign Banks (Our Accounts) 5,658 5,553 68 Other Assets: 1,031,410 821,649 12,404 Domestic Exchange Settlement Account, Debit 498 432 6 Prepaid Expenses 161 45 2 Accrued Income 57,668 61,280 694 Initial Margins of Futures Markets 2,128 1,565 26 Variation Margins of Futures Markets 357 553 4 Basel II Qualitative Disclosure Data/ Derivatives other than Trading Assets 410,966 407,611 4,942 The Sumitomo Trust and Banking Co., Ltd. Receivables for Securities Transactions 269,754 35,420 3,244 Other 289,874 314,739 3,486 Tangible Fixed Assets: 115,390 113,235 1,388 Buildings 25,029 27,344 301 Land 76,249 76,721 917 Lease Assets 112 149 1 Construction in Progress 7,045 1,618 85 Other 6,954 7,401 84 Intangible Fixed Assets: 28,286 26,350 340 Software 25,889 23,937 311 Other 2,396 2,412 29 Deferred Tax Assets 82,867 59,507 997 Customers’ Liabilities for Acceptances and Guarantees 336,175 387,202 4,043 Allowance for Loan Losses (85,559) (104,843) (1,029) Allowance for Investment Losses (1,185) (65,993) (14) Basel II Quantitative Disclosure Data/ Total Assets ¥ 20,102,714 ¥ 19,651,334 $ 241,764 The Sumitomo Trust and Banking Co., Ltd.
430 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 431 1 1 0 5 3 1 1 3 0 0 0 (6) — 25 32 53 14 68 69 58 (57) 180 136 655 637 889 128 126 696 501 3,917 5,231 5,192 9,749 1,252 3,183 2,967 2,101 4,043 4,113 3,572 2,917 5,998 5,361 4,472 4,145 7,467 1,910 1,236 1,236 3,428 13,678 27,151 13,057 13,057 24,772 2011 115,121 Millions of $ 227,959 $ 13,806 $ 241,764 $ 7.44 $ 147,967 U.S. Dollars U.S. Dollars 2 0 0 2 — — — 70 223 379 333 964 160 253 250 (465) 8,281 3,989 1,043 8,258 5,778 2,323 (4,655) 33,509 86,494 98,134 54,496 48,323 27,953 13,919 10,293 98,131 26,295 276,786 296,143 601,787 342,037 297,052 242,555 448,147 399,823 371,870 387,202 318,456 344,900 430,969 640,552 100,392 263,316 246,766 2010 1,772,683 9,837,327 2,371,884 1,086,770 1,033,815 1,033,815 ¥ 12,216,451 ¥ 1,100,690 ¥ 19,651,334 ¥ 590.82 ¥ 18,550,644 Yen 0 0 4 — 80 77 76 28 223 231 121 402 (482) Millions of Yen 1,155 5,620 5,709 2,630 4,435 2,108 4,861 (4,714) 11,279 54,495 52,929 73,902 10,630 10,482 14,945 57,884 41,695 264,690 102,743 342,037 297,051 242,555 498,702 445,772 371,870 336,175 246,713 174,696 325,708 434,917 431,710 810,632 104,092 620,846 158,798 102,775 344,623 285,049 2011 1,085,718 1,085,718 1,137,308 2,257,610 2,059,778 9,572,270 ¥ 619.05 ¥ 1,147,938 ¥ 20,102,714 ¥ 18,954,776 ¥ 12,303,417 Financial Data: Non-consolidated Balance Sheets (Unaudited) Sheets Balance Non-consolidated Data: Financial Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Reserve for Overseas Investment Loss Other Voluntary Reserve Retained Earnings Brought Forward Other Retained Earnings: Legal Capital Surplus Other Capital Surplus Legal Retained Earnings Treasury Stock Valuation Difference on Available-for-Sale Securities Deferred Gains or Losses on Hedges Revaluation Reserve for Land Capital Stock Capital Surplus: Retained Earnings: Accounts Payable of Securities Trading Account Other Domestic Exchange Settlement Account, Credit Domestic Exchange Settlement Account, Credit Income Taxes Payable Accrued Expenses Unearned Revenue Variation Margins of Futures Markets Derivatives other than Trading Liabilities Lease Obligations Asset Retirement Obligations Payables under Financial Derivatives Transactions Borrowing from Other Banks Due to Foreign Banks (Their Accounts) Foreign Bills Sold Foreign Bills Payable Time Deposits Other Deposits Derivatives of Trading Securities Derivatives of Securities Related to Trading Transactions Trading-related Financial Derivatives Current Deposits Ordinary Deposits Deposits at Notice Total Net Assets Total Liabilities and Net Assets Total Valuation and Translation Adjustments: Total Shareholders’ Equity: Provision for Relocation Expenses Deferred Tax Liabilities for Land Revaluation Acceptances and Guarantees Total Liabilities Net Assets: Provision for Bonuses Provision for Directors’ Bonuses Provision for Retirement Benefits Provision for Reimbursement of Deposits Provision for Contingent Loss Bonds Payable Borrowed Money from Trust Account Other Liabilities: Foreign Exchanges: Short-term Bonds Payable Borrowed Money: Negotiable Certificates of Deposit Negotiable Certificates Call Money Agreements Payables under Repurchase Payables under Securities Lending Transactions Trading Liabilities: Liabilities: Deposits: Net Assets per Common Share See accompanying notes. 432 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report The SumitomoTrustandBankingCo.,Ltd.forthefiscalyearsendedMarch31,20112010 Non-consolidated StatementsofIncome(Unaudited) Financial Data: Total Income Other Income: Other OrdinaryIncome: Trading Income: Fees andCommissions: Interest Income: Trust Fees Income: Other Gains onMoneyHeldinTrust Gains onSalesofStocksandOtherSecurities Other Gains onRedemptionofBonds Gains onSalesofBonds Gains onForeignExchangeTransactions Other TradingIncome Income fromTrading-relatedFinancialDerivativesTransactions Income fromSecuritiesandDerivativesRelatedtoTradingTransactions Gains onTradingAccountSecuritiesTransactions Other FeesandCommissions Fees andCommissionsonDomesticForeignExchanges Other InterestIncome Interest onSwaps Interest onDeposits Interest onReceivablesunderSecuritiesBorrowingTransactions Interest onReceivablesunderResaleAgreements Interest onCallLoans Interest andDividendsonSecurities Interest onLoansandDiscounts 438,449 ¥ 50,939 ¥ 151,004 226,472 2011 28,473 32,096 28,504 38,826 10,889 11,863 77,464 78,251 61,072 3,022 6,352 3,793 3,433 8,464 1,913 600 175 884 787 167 174 241 Millions ofYen 89 — 53,140 ¥ 500,567 ¥ 169,564 289,366 2010 96,155 17,769 12,779 30,985 32,257 38,619 13,630 15,672 71,985 72,782 17,741 2,386 3,975 1,793 3,923 1,438 335 207 435 118 130 797 — 0 U.S. Dollars Millions of 5,273 $ 613 $ 2011 1,816 2,724 342 386 343 467 131 143 932 941 102 734 36 76 46 11 41 23 — 7 2 1 9 2 2 3 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 433 6 0 8 5 1 1 1 — — 51 11 89 32 66 28 83 643 238 419 414 285 219 945 188 644 220 (255) 0.17 1,696 2011 $ 884 $ 0.49 $ 1,078 $ 4,424 $ 849 Millions of U.S. Dollars U.S. Dollars 3 — — — 825 677 400 6,510 2,559 6,545 3,917 3,891 9,934 1,828 6,769 3,274 2,048 5,074 10.00 66,436 22,347 32,783 32,382 22,424 18,571 88,014 50,956 2010 145,906 111,908 ¥ 109,822 ¥ 422,846 ¥ 77,721 ¥ 21,691 ¥ 11.37 Yen 5 — — 72 72 Millions of Yen 428 531 879 650 116 14.00 5,448 7,431 2,637 4,220 2,314 6,934 34,880 34,451 23,666 18,218 53,501 19,770 78,542 15,624 53,552 18,310 2011 (21,214) 141,038 ¥ 41.15 ¥ 89,627 ¥ 367,826 ¥ 70,622 ¥ 73,526 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Non-consolidated Statements of Income (Unaudited) of Income Statements Non-consolidated Data: Financial Current Deferred Written-off of Loans Losses on Sales of Stocks and Other Securities Securities Losses on Devaluation of Stocks and Other Loss on Money Held in Trust Other Loss on Foreign Exchange Transactions Loss on Sales of Bonds Loss on Redemption of Bonds or Hedging Expenses on Derivatives other than for Trading Other Interest Expenses Foreign Exchanges Fees and Commissions on Domestic and Other Fees and Commissions to Trading Transactions Expenses on Securities and Derivatives Related Interest on Negotiable Certificates of Deposit Interest on Negotiable Interest on Call Money under Repurchase Agreements Interest on Payables under Securities Lending Transactions Interest on Payables Interest on Borrowings and Rediscounts Interest on Short-term Bonds Interest on Bonds Interest on Deposits Annual Dividends per Common Share Net Income per Common Share Net Income Total Expenses Income before Income Taxes Income Taxes: General and Administrative Expenses Other Expenses: Other Ordinary Expenses: Fees and Commissions Payments: Trading Expenses: Expenses: Interest Expenses: See accompanying notes. Financial Data: Non-consolidated Statements of Changes in Net Assets (Unaudited) The Sumitomo Trust and Banking Co., Ltd. for the fiscal years ended March 31, 2011 and 2010
Millions of Millions of Yen U.S. Dollars Financial Summary/ 2011 2010 2011 Shareholders’ Equity: Capital Stock: The Sumitomo Trust and Banking Co., Ltd. Balance at the End of the Previous Period ¥ 342,037 ¥ 287,537 $ 4,113 Changes of Items during the Period: Issuance of New Shares — 54,500 — Total Changes of Items during the Period ¥— ¥ 54,500 $— Balance at the End of the Current Period ¥ 342,037 ¥ 342,037 $ 4,113 Capital Surplus: Legal Capital Surplus: Balance at the End of the Previous Period ¥ 242,555 ¥ 242,555 $ 2,917 Changes of Items during the Period: Issuance of New Shares — 54,500 — Transfer to Other Capital Surplus — (54,500) — Financial Data/ Total Changes of Items during the Period ¥— ¥— $— Balance at the End of the Current Period ¥ 242,555 ¥ 242,555 $ 2,917 Other Capital Surplus: Balance at the End of the Previous Period ¥ 54,496 ¥— $ 655 The Sumitomo Trust and Banking Co., Ltd. Changes of Items during the Period: Transfer from Legal Capital Surplus — 54,500 — Disposal of Treasury Stock (0) (3) (0) Total Changes of Items during the Period ¥(0)¥ 54,496 $(0) Balance at the End of the Current Period ¥ 54,495 ¥ 54,496 $ 655 Total Capital Surplus: Balance at the End of the Previous Period ¥ 297,052 ¥ 242,555 $ 3,572 Changes of Items during the Period: Issuance of New Shares — 54,500 — Disposal of Treasury Stock (0) (3) (0) Total Changes of Items during the Period ¥(0)¥ 54,496 $(0) Balance at the End of the Current Period ¥ 297,051 ¥ 297,052 $ 3,572 Retained Earnings: Legal Retained Earnings: Basel II Qualitative Disclosure Data/ Balance at the End of the Previous Period ¥ 48,323 ¥ 46,580 $ 581 The Sumitomo Trust and Banking Co., Ltd. Changes of Items during the Period: Cash Dividends 4,606 1,742 55 Total Changes of Items during the Period ¥ 4,606 ¥ 1,742 $ 55 Balance at the End of the Current Period ¥ 52,929 ¥ 48,323 $ 637 Other Retained Earnings: Balance at the End of the Previous Period ¥ 399,823 ¥ 390,957 $ 4,808 Changes of Items during the Period: Cash Dividends (27,637) (12,968) (332) Net Income 73,526 21,691 884 Reversal of Revaluation Reserve for Land 60 143 1 Total Changes of Items during the Period ¥ 45,949 ¥ 8,865 $ 553 Balance at the End of the Current Period ¥ 445,772 ¥ 399,823 $ 5,361 Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
434 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 435 1 0 0 1 2 (0) (0) — (41) 884 884 (277) (277) 2011 $ 5,390 $$ 608 5,998 $(6) $(0) $(6) $ 13,070 $$ (41) 58 $ 124 $$ 608 13,678 $ 100 $2 $ 126 Millions of U.S. Dollars 3 7 (19) (19) 143 143 11,921 21,691 21,691 (11,226) (11,226) 106,174 109,000 2010 ¥ 119,593 ¥ 1,086,770 ¥ (97,893) ¥ 106,174 ¥ 8,281 ¥ (1,627) ¥¥ 11,921 10,293 ¥¥ 10,608 448,147 ¥ (453) ¥¥ (12) (465) ¥ 967,177 ¥ 437,538 1 2 — 60 60 (19) (19) 188 Millions of Yen (3,419) 73,526 73,526 (23,030) (23,030) 2011 ¥ 448,147 ¥¥ 50,537 1,137,308 ¥ 8,281 ¥¥ (3,419) 4,861 ¥ 10,293 ¥¥ 188 10,482 ¥¥ (16) (482) ¥ 1,086,770 ¥¥ 50,555 498,702 ¥ (465) Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Financial Data: Non-consolidated Statements of Changes in Net Assets (Unaudited) Net Assets in of Changes Statements Non-consolidated Data: Financial Cash Dividends Net Income Reserve for Land Reversal of Revaluation during the Period Total Changes of Items Net Changes of Items other than Shareholders’ Equity Total Changes of Items during the Period Net Changes of Items other than Shareholders’ Equity Total Changes of Items during the Period Reversal of Revaluation Reserve for Land Total Changes of Items during the Period Issuance of New Shares Cash Dividends Net Income Purchase of Treasury Stock Disposal of Treasury Stock Purchase of Treasury Stock Disposal of Treasury Stock Total Changes of Items during the Period Balance at the End of the Current Period Balance at the End of the Previous Period Balance at the End of the Period: Changes of Items during Changes of Items during the Period: Balance at the End of the Current Period Changes of Items during the Period: Balance at the End of the Current Period Balance at the End of the Previous Period Balance at the End of the Current Period Balance at the End of the Previous Period Balance at the End of the Previous Period Balance at the End of the Previous Period Changes of Items during the Period: Changes of Items during the Period: Balance at the End of the Current Period Balance at the End of the Previous Period Balance at the End of the Previous Period Total Retained Earnings: Deferred Gains or Losses on Hedges: Valuation Difference on Available-for-Sale Securities: Valuation Difference on Available-for-Sale Total Shareholders’ Equity: Treasury Stock: Valuation and Translation Adjustments: 436 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. See accompanyingnotes. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Financial Data:Non-consolidatedStatementsofChangesinNetAssets(Unaudited) Total NetAssets: Balance attheEndofCurrentPeriod Changes ofItemsduringthePeriod: Balance attheEndofPreviousPeriod Total ValuationandTranslationAdjustments: Revaluation ReserveforLand: Total ChangesofItemsduringthePeriod Net ChangesofItemsotherthanShareholders’Equity Reversal ofRevaluationReserveforLand Disposal ofTreasuryStock Purchase ofTreasuryStock Net Income Cash Dividends Issuance ofNewShares Balance attheEndofCurrentPeriod Changes ofItemsduringthePeriod: Balance attheEndofPreviousPeriod Balance attheEndofCurrentPeriod Changes ofItemsduringthePeriod: Balance attheEndofPreviousPeriod Total ChangesofItemsduringthePeriod Net ChangesofItemsotherthanShareholders’Equity Total ChangesofItemsduringthePeriod Net ChangesofItemsotherthanShareholders’Equity 1,100,690 ¥ 10,630 (3,289) ¥ ¥ 13,919 ¥ (4,714) (58) ¥ ¥ (4,655) ¥ 1,147,938 47,248 ¥ ¥ 2011 (23,030) 73,526 (3,289) (3,289) Millions ofYen (19) (58) 60 — 1 1,100,690 ¥ 237,545 ¥ 863,145 ¥ 13,919 ¥ 117,951 ¥ (104,032) ¥ (4,655) (143) ¥ ¥ (4,511) ¥ 2010 117,951 109,000 117,951 (11,226) 21,691 (143) 143 (19) 3 U.S. Dollars Millions of 13,806 568 $ $ 13,237 $ 128 (40) $ $ 167 $ (57) $ $(1) (56) $ 2011 (277) 884 (40) (40) — (0) (1) 1 0 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 437 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report STB, a Japanese corporation, maintains its records and STB, a Japanese corporation, maintains of less than one In accordance with the FIEA, amounts with the appropriate Local Finance Bureau of the Ministry with the appropriate by the FIEA. Some supplementary of Finance as required in the statutory financial statements information is included required for fair presentation is not in Japanese, but not statements. presented in the accompanying financial Japanese yen. The prepares its financial statements in have been accompanying U.S. dollar financial statements for conven- translated from yen-base financial statements computation only, at ience, and as a matter of arithmetical rate prevail- the rate of ¥83.15 to U.S. $1.00, the exchange is solely for ing as of March 31, 2011. Such a translation as representa- convenience and should not be construed have been, could tions that the Japanese yen amounts converted into U.S. have been, or could in the future be, dollars at this or any other rate of exchange. the total in yen, million yen have been omitted. As a result, in the non-consoli- and accordingly in U.S. dollars, shown agree with dated financial statements do not necessarily the sum of the individual amounts.
The accompanying translated non-consolidated finan- The accompanying financial state- The accompanying non-consolidated have been The accompanying financial statements The accompanying non-consolidated financial statements should be read in conjunction with the notes to consolidated should be read in conjunction with the non-consolidated financial statements The accompanying Refer to notes of consolidated financial statements for further information. Refer to notes of consolidated financial statements for further information. Financial Data: Financial (Unaudited) Statements Financial to Non-consolidated Notes cial statements have been compiled from the non-consoli- cial statements have that are prepared for Japanese dated financial statements in accordance with the FIEA, the domestic purposes principles and prac- Banking Act of Japan and accounting GAAP”). tices generally accepted in Japan (“Japanese different from Certain Japanese GAAP are partly in terms of International Financial Reporting Standards application and disclosure requirements. The accounts of ments include only the accounts of STB. Investments in sub- its subsidiaries are not consolidated. are stated at cost. sidiaries and affiliated companies companies are Earnings of subsidiaries and affiliated that cash divi- recorded in STB’s books only to the extent dends are accrued. (with some modifi- restructured and translated into English to facilitate under- cations and expanded descriptions from the financial standing by readers outside Japan) GAAP and filed statements in accordance with Japanese Basis of Presenting Financial Statements Basis of Presenting financial statements. Changes in Significant Accounting Policies and Practices Significant Accounting Policies and Practices Financial Data: Supplementary Financial Information
Loans by Industry (Consolidated basis)
Financial Summary/ 1. Banking Account
Millions of Millions of Yen U.S. Dollars March 31 2011 2010 2011 The Sumitomo Trust and Banking Co., Ltd. Domestic Offices (excluding offshore loans): Manufacturing ¥ 1,712,898 ¥ 1,816,325 $ 20,600 Agriculture, Forestry, Fishing, Mining, and Quarrying of Stone and Gravel Gathering 21,509 20,170 259 Construction 94,126 106,514 1,132 Electricity, Gas, Heat Supply and Water 363,686 162,968 4,374 Information and Communications 197,909 217,624 2,380 Transport and Postal Activities 738,348 743,901 8,880 Wholesale and Retail Trade 909,392 935,027 10,937 Finance and Insurance 1,440,850 1,495,746 17,328 Real Estate 1,727,814 1,860,549 20,779 Goods Rental and Leasing 506,430 651,001 6,091 Financial Data/ Local Governments 98,439 81,025 1,184 Others 2,517,348 2,297,226 30,275 Subtotal ¥ 10,328,755 ¥ 10,388,083 $ 124,218 (including offshore loans of domestic offices): The Sumitomo Trust and Banking Co., Ltd. Overseas Offices Governments and Official Institutions 359 456 4 Banks and Other Financial Institutions 98,738 67,252 1,187 Others 1,367,134 1,230,837 16,442 Subtotal ¥ 1,466,232 ¥ 1,298,546 $ 17,634 Total ¥ 11,794,987 ¥ 11,686,629 $ 141,852
Note: U.S. dollar amounts are translated solely for convenience at the rate of ¥83.15 to U.S. $1.00, as of March 31, 2011.
2. Trust Account
Millions of Millions of Yen U.S. Dollars March 31 2011 2010 2011 Domestic Offices (excluding offshore loans): Manufacturing ¥ 9,154 ¥ 13,776 $ 110 Basel II Qualitative Disclosure Data/ Electricity, Gas, Heat Supply and Water 240 406 3 The Sumitomo Trust and Banking Co., Ltd. Information and Communications — 100 — Transport and Postal Activities 10,009 11,181 120 Wholesale and Retail Trade 2,242 3,742 27 Finance and Insurance 124,600 136,464 1,499 Real Estate 28,414 43,015 342 Goods Rental and Leasing 19,000 40,000 229 Local Governments 949 1,038 11 Others 138,621 148,751 1,667 Total ¥ 333,232 ¥ 398,476 $ 4,008
Note: U.S. dollar amounts are translated solely for convenience at the rate of ¥83.15 to U.S. $1.00, as of March 31, 2011. Basel II Quantitative Disclosure Data/ The Sumitomo Trust and Banking Co., Ltd.
438 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report h uiooTutadBnigC. Ltd. Co., Banking and Trust Sumitomo The iaca Summary/ Financial
This section outlines matters to be stated in explanatory documents relating to the fis- cal year separately stipulated by the Director-General of the Financial Services Agency (Notification No. 15 of Financial Services Agency, March 23, 2007) with regard to the status of capital adequacy as set forth in Article 19-2, Paragraph 1, Item 5-(d) of the Enforcement Regulations of the Banking Act (Ministry of Finance Ordinance No. 10, 1982). The Risk Management System of The Sumitomo Trust and Banking Co., Ltd. (as of March 31, 2011) appears on the following pages. h uiooTutadBnigC. Ltd. Co., Banking and Trust Sumitomo The
Basel II Qualitative Disclosure Data: Data/ Financial The Sumitomo Trust and Banking Co., Ltd. 1. Overview of Risk Management 440 2. Credit Risk 444 3. Internal Ratings System 450 4. Market Risk and Liquidity Risk 452 5. Operational Risk 456 6. Other Related Matters 461 h uiooTutadBnigC. Ltd. Co., Banking and Trust Sumitomo The ae IQaiaieDslsr Data/ Disclosure Qualitative II Basel h uiooTutadBnigC. Ltd. Co., Banking and Trust Sumitomo The ae IQatttv icoueData/ Disclosure Quantitative II Basel
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 439 440 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. is thisSTBriskmanagementframework,werecognize,that “Risk ManagementPolicy”setbytheBoardofDirectors.It cycles foreachriskcategoryacrossSTBaccordingtothe ensure theefficiencyofPDCA(Plan-Do-Check-Action) a moreadvancedriskmanagementsystem. which willlaunchnextfiscalyear,wecontinueworkingfor size andriskstructureofthenewintegratedtrustbank, we mustwatchoutfortheemergenceofnewrisks. view isthatfinancialmarketsmaybecomeunstable,and problems andgrowingtensionintheMiddleEast.Thusour markets wereaffectedbyEurope’scontinuingfiscaldeficit Japan Earthquakeandthecontinuingstrongyen.Overseas the topofourmanagementpriorities. vigorous executionofbusinessstrategiesanditsplaceat key elementofour“defensive”capabilityunderlyingthe ties. Werecognizetheimportanceofriskmanagementasa right balancebetweenitsoffensiveanddefensivecapabili- management infrastructure,whileseekingtoachievethe operations, andtostrengthenitsbusinessstrategies institution thatcombinesbanking,trust,andrealestate actively engagingineffortstoenhanceitsstrengthasan Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report • RiskCategories 1. OverviewofRiskManagement The SumitomoTrust andBankingCo.,Ltd. Basel IIQualitativeDisclosureData: Enterprise Risk Management (Risk Management through Comprehensive Assessment of All Risk Categories) We considerthatthebasisofriskmanagementisto In thisenvironment,consideringthechangesinasset In fiscalyear2010,JapanwasaffectedbytheGreatEast The SumitomoTrustandBankingCo.,Ltd.(“STB”)is
Integrated Risk Management (Quantitative Risk Management using VaR as an Integrated Measurement) Liquidity Risk Operational Risk Market Risk Credit Risk Risk Category Risk Reputational Event Risk Resource Risk Human Compliance Risk Security Risk Information Processing Risk Business Department Corporate RiskManagement Department Corporate RiskManagement Corporate AdministrationDepartment Personnel Department Department Legal andCompliance Department IT &BusinessProcessPlanning Department forInternalFraud) Department (orPersonnel Operations ProcessPlanning Department Corporate RiskManagement Department Corporate RiskManagement Department Corporate RiskManagement related Department Risk Management vantageous pricesintransactions. mal infundprocurement, andriskoflossduetoinabilitytransact in amarket,orduetobeingforcedaccept disad- Risk oflossduetoinability tosecurenecessaryfunds,orduebeing forcedtopayinterestratessignificantlyabove nor- subsidiaries, owingtoreasonssuchasmassmedia reports,rumorsorspeculation. Risk ofincurringlossesduetoa(possible)major impactonbusinessasaresultofdeteriorationinreputationforSTBorits Risk ofincurringlossesarisingfromextraordinary situationssuchasnaturaldisasters,warandcriminaloffenses. pensation, benefits,releasefromemployment and harassment. Risk ofincurringlossesduetoissuessuchasunequal orunfairmanagementofpersonnel,includingissuesrelatedtocom- including thelackofnecessaryprovisionsor oflegalcapacitybythetransactioncounterparty. tions orsocialstandardsinJapanandabroad, oraninabilitytocompletetransactionsduecontractualimpediments Risk ofincurringlossesforreasonssuchaspenalties,claimsorlawsuitsarisingfromalack compliancewithlaws,regula- management ofsystemdevelopmentprojects. Risk ofincurringlossesforclientsorSTB,owingtofactorssuchasinformationmanagement, systemfailureorimproper dents suchasaccidentorfraud. Risk ofincurringlossesarisingfromexecutivesoremployeesneglectingtoengageinproperbusiness activities,orotherinci (including thefollowingrisks). Risk ofincurringlossresultingfrominadequateorfailedinternalprocesses,peopleandsystems orfromexternalevents items suchasinterestrates,stockpricesandforeignexchangeorowingtofluctuations inthevalueofotherassets. Risk ofincurringlossesduetofluctuationsinthevalueassets/liabilitiesorrevenuesthereof, eitherduetofluctuations reasons suchasdeteriorationinthefinancialconditionofaobligor. Risk ofincurringlossesduetothevalueanasset(includingoff-balancesheetassets)decreasing orimpairing,owingto inappropriate businessprocesses,andtheactivitiesof eign exchangerates. market factorssuchasinterestrates,stockprices,andfor- value ofassetsorliabilitiesweholdduetofluctuations of anobligor,thatcausesustoincurloss. to reasonssuchasdeteriorationinthefinancialcondition value ofassets(includingoff-balancesheetassets),owing credit risk,marketoperationalandliquidityrisk. by thecauseofriskwefaceinbusinessoperations,into (1) BasicPoliciesonRiskManagementandCategories petitiveness inlightofdefensivecapabilities. more sophisticatedisthekeytostrengtheningourcom- steps tomaketheinternalriskmanagementframework ness ofthePDCAcycle.Weconsiderthattakingfurther resources developmentinordertoimprovetheeffective- management processes,aswelltoenhancehuman authority anditsdelegation,organizationalstructure, cated andmoresophisticated,itisessentialtoclarify and financialproductshavebecomeincreasinglycompli- business environmentisundergoingsignificantchange risks. Especiallyundertherecentcircumstanceswhere allows ustoproperlyidentify,assess,monitor,andcontrol Operational riskreferstotheoflossesarisingfrom Market riskistheoflosscausedbychangesin Credit riskistheofreductionorimpairment Our “RiskManagementPolicy”classifiesriskcategories Risk Description (As ofMarch31,2011) of - Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 441
Internal Audit Department Committee Compliance Officer Liaison Officer (As of March 31, 2011) Risk Legal and Compliance Department Committee Compliance Compliance Risk Department Management Corporate Risk Reputational Subcommittee Operational Risk Department IT & Business Information Security Risk Process Planning Process Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Business Operations Department Statutory Auditors Office Process Planning Process Processing Risk Processing Prevention Business Misconduct Subcommittee (Internal Fraud) Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel Processing Risk Processing Responsible for accurate recognition and continuous Responsible for accurate Management Among them, the Corporate Risk the purpose of Execute transactions and operations for Business Planning and Promotion Departments, Business Planning and Promotion Personnel Department the policies set out by the Board of Directors, and devel- the policies set out put them into practice. ops frameworks to related Departments 3) Risk Management management and administration assessment, appropriate of the compliance (observance of risks, as well as integrity regulations) frameworks, as independ- of relevant laws and ent departments. function Department has the company-wide coordination management of for risk management for comprehensive a risk management various risks. Each risk category has the moni- related department in charge, which undertakes and promo- toring and analysis of risks and the planning tion of appropriate risk management frameworks. 4) Front Office Departments the accompa- increasing revenues, while also supervising in administrative nying planning, examining, or engaging policies and plans management. In accordance with the Front Office set out by the Board of Directors, aimed Departments engage in operational administration Operational Risk Management Committee Risk Human Human Resources Resource Subcommittee Statutory Auditors Board of Statutory Auditors Board Risk Event Event Risk Subcommittee Branches, Departments and Affiliates Risk Operational Corporate Subcommittee Department Risk Management Administration Committee Product Screening Product Board of Directors Board Executive Committee Global Credit Supervision Departments, Supervisory Departments of Group Companies Departments of Group Supervision Departments, Supervisory Global Credit Risk General Meeting of Shareholders Liquidity Departments Responsible for Supervising Each Business, ALM Committee Risk Market Risk Credit Corporate Risk Management Department of Risk Administration and Overall Coordination Company the Entire Management across Credit Risk Credit Committee Risk Category Sets rules and provisions regarding the identification, Sets rules and provisions regarding Formulates policies and plans concerning the management Formulates policies and plans concerning In accordance with the “Risk Management Policy,” we In accordance with Liquidity risk includes funding risk and market liquidity risk. Liquidity risk includes Front Office Front Departments Risk Management related Departments • Risk Management Structure assessment, monitoring, and control of risks in line with assessment, monitoring, and control 2) Executive Committee of overall risks that are faced by STB, and disseminates the of overall risks that are faced by STB, and as well as vests policies and plans throughout the company also establishes the relevant organizations with authority. It as bodies to Executive Committee and other committees to specific business deliberate and decide on matters relating strategies, risk management and operations. 1) Board of Directors set down the roles and responsibilities of operational set down the roles and responsibilities to risk manage- organizations and departments related ment as follows: (2) Risk Management Structure (2) Risk Management executives/employees and computer systems as well as executives/employees In our case, business processing risk, external incidents. risk, compliance risk, human resource information security reputational risk are included. risk, event risk, and 442 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report • VerificationofCapitalAdequacy VaR*, thecombinationofvariousrisksmeasuredbyuni- STB Grouparemeasuredquantitativelybytheintegrated (credit risk,marketandoperationalrisk)heldbythe quacy andefficiency(EnterpriseRiskManagement). with ouroverallfinancialstrengthintermsofcapitalade- categories, andmanagetheserisksbycomparingthem measure themafterindividuallyassessingrespectiverisk adequacy ratiobasedonregulations,comprehensively risk categoriesnotincludedinthecalculationofcapital (3) Integrated RiskManagementandCapitalAllocation pendent department. assesses andverifiesthestatusofallactivitiesasaninde- to thePresidentandCEO,InternalAuditDepartment implement effectiveinternalauditing.Reportingdirectly 5) InternalAuditDepartment and characteristicsofrisks. implementing appropriatecontrolsthatreflectthescale at ensuringtheeffectivenessofriskmanagement,suchas Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. (The One-tailedConfidenceIntervalof99.9%,a1YearHoldingPeriod) (Tier I+60%ofunrealizedgainsonavailable-for-salesecurities) Integrated RiskAmount Risk Capital Tier I In addition,amongriskcategories,quantifiablerisks It isourpolicytoidentifyvariousrisksweface,including Involved inpreparingthenecessaryframeworkto 1,000 (Billions ofYen) 1,500 500 0 ikCptlIntegratedRiskAmount Risk Capital (As ofMarch31,2011,BillionsYen) 1,339.7 1,333.9 826.0 (Integrated RiskManagement). tailed confidenceintervalof99.9%,a1yearholdingperiod) fied criteriaaccordingtoourbusinessoperations(theone- soundness wasmaintained(capitaladequacy). (risk capital/riskbuffer),whichwasevaluatedthatfinancial either ofthecasesindicatedabove,waswithincapital securities +perpetualsubordinateddebts).” buffer (TierIcapital+unrealizedgainsonavailable-for-sale various riskcategoriescannotbeexpected,withthe“risk the conditionthatdiversificationeffectassumedamong amount (understressscenarios),”whichiscalculatedunder uate financialsoundnessbycomparingthe“integratedrisk From theviewpointofprotectingdepositors,westrictlyeval- securities)” toconfirmthe“securingoffinancialsoundness.” (Tier Icapital+60%ofunrealizedgainsonavailable-for-sale plans, toobservecapital-basedprofitasanindicator. each riskcategoryorbusiness,accordingtothebusiness pursuing capitalefficiencybydistributingtheto as a“riskbuffer”orcapital”;atthesametime,weare comparing theamountofriskwithcapitaladequacy,such group asawhole.Weevaluateourfinancialstrengthby Management seekstocontrolthetotalriskamountfor “maximization ofshareholders’value,”IntegratedRisk ment goalsof“securingfinancialsoundness”and * Value atRisk(VaR):amountmeasurementindicator.Themaximumof ital measurement. interval, thegreaterVaR,whichmeansSTBappliesconservativeeconomiccap- tain probability(theconfidenceinterval).Thelargerthepercentileof loss anticipatedwithinacertainperiod(theholdingperiod)therangeofcer- The integratedriskamountasofMarch31,2011,in We comparethe“integratedriskamount”to“riskcapital Aiming toachievesimultaneouslybothofthemanage- Ratio byRiskCategory EquityRisk Market Risk 32% 11% Credit Risk 53% Operational Risk 4% Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 443 y ) Operational Risk l iciency + ff Risk f b ation Shareholders’ Equit Shareholders’ c f Capital E Bottom-Up from Each Business f Market Risk llocated Capita Allocated CapitalA + Total Qualifying Capital Total Upper Limit o (Upper Limit of Risk) ( ursuit o Pursuit of Capital Efficiency P Top-Down Allocation by Management Allocation by Management Top-Down Top-Down Perspective of Shareholders’ Equity Perspective of Shareholders’ Perspective o Credit Risk Credit Monitoring (see page 447) Internal Models Approach (see page 455) (see page 460) Foundation Internal Ratings-Based (IRB) Approach Standardized Approach Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report t Risk Amount by Category ) (Credit, Market, and Operational) (Credit, emen g Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel t The first pillar is designed to manage the required capital The first pillar is designed are to choose risk methods accord- Under Basel II, banks Amount e k Credit Risk Market Risk Operational Risk • Method and Calculation Capital Adequacy Ratio = 1) “The First Pillar” regulation-prescribed methods. An calculated under the bank is required under Basel II to have internationally active 8% of the aggregate of credit risk, total capital of at least risk, in addition to further elab- market risk and operational of credit risk. orating the measurement frameworks, and we ing to their internal risk management at the bottom left. have adopted the approaches indicated of Basel II Ris Economic Capital f Usag d k rate of Basel II: Market Discipline g Check Usage RateCheck Usage Rate rated Risk Mana g Inte (Integrated Risk Amount) ( nte Review Capital AdequacyReview Capital Adequacy Diversification Effect Diversification Effec Integrated Risk ManagementI
Perspective of Economic Capital Perspective o
Level -Wide Level -Wide
Business The Second Pillar Risk Management Framework) under Internal Risk Management System of STB (Internal Review Capital Adequacy and Efficiency Company Enterprise Risk Management The Third Pillar The Third Confirm Adequacy l Capita d y iance l an l
u f ulator g Comp inim tio o y Re of Basel II f a M ator l Required Capital Required u g Secure Capital and Capita Secure Secure e R Regulatory Compliance Check for Minimum Capital Check for Minimum Capital Adequacy Ratio of at Least 8% Adequacy Ratio of at Least 8% erspective o Perspective of Regulatory CapitalP (Credit, Market, and Operational) (Credit, The First Pillar Capital Management of Required Basel II is capital adequacy ratio rules set as a unified Basel II is capital adequacy internal manage- STB has built and is still improving the Regarding the “maximization of shareholders’ value,” Regarding the “maximization • Framework for Risk Management at STB • Framework for Risk Management at international standard determined by the Basel Committee international standard determined by the applicable in on Banking Supervision. They have become II aims to evaluate Japan from the end of March 2007. Basel detail, while also risks faced by financial institutions in more abilities of financial encouraging enhanced risk management the progress of prac- institutions. These have been based on financial technol- tical risk management and more advanced and thus Basel II ogy at financial institutions in recent years, is comprised of the following “Three Pillars.” enables STB to ment framework for economic capital, which the context of past meet the requirements of Basel II, in enterprise risk management. (4) Coping with Basel II (4) Coping with Basel “Risk capital” is allocated to each business, and capital effi- “Risk capital” is allocated is assessed in terms of SVA ciency for each business Added) and ROE (Return on Equity), (Shareholder Value as an indicator (capital efficiency). using risk-adjusted return 444 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report sified creditportfolioandstronger clientbase. working toservenewsounddemandforfunds,adiver- agement system.Atthesametime,wearealsoproactively ditions, wearebuildingamoreadvancedcreditriskman- the GreatEastJapanEarthquake.Consideringthesecon- unclear, partlyduetosupplychaindisruptionscausedby performances ofdomesticcorporationsarebecoming and theriseofemergingeconomies.InJapan,business ereign crisis,MiddleEasternandNorthAfricanconditions, affected byenvironmentalchangessuchasEurope’ssov- function offinance.Overseas,globalfinancialmarketsare risk involvedinthe“creditcreationfunction”—thebasic based onthecredibilityofclients),whichismostbasic Internal RiskManagementFramework 2. Credit Risk of marketdisciplinetobeexertedonbanks. and riskmanagement,therebyincreasingtheeffectiveness ed tothefirstandsecondpillars,suchascapitaladequacy enhancing informationdisclosureregardingmattersrelat- improving thesoundnessofbankmanagementby 3) “TheThirdPillar” in theinternalriskmanagementframework. management ofbanks.Wearemanagingtheseriskswith- aimed atmaintainingandimprovingthesoundnessof through theprocessesofevaluationandsupervision.Itis capital adequacybythebankingsupervisoryauthorities the banksthemselves,andexaminationofbanks’ important amongrisksnotcoveredbythefirstpillar, and “creditconcentrationrisk,”whichareparticularly risks, including“interestrateriskinthebankingaccount” 2) “TheSecondPillar” Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Credit riskisaccompanyingcreditoperations(loans The thirdpillarisdesignedtoaimatmaintainingand The secondpillarcomprisesthemanagementofoverall by theBoardofDirectors: strategies andcreditriskmanagement plansformulated ments assumetheirrespective rolesbasedonthecredit checks andbalances.Relevant organizationsanddepart- are closelyorganizedformutualsupportandeffective work underwhichvariousorganizationsanddepartments (2) OrganizationalStructureforCreditRiskManagement guaranteed trustaccount(MoneyTrustsandLoanTrusts). in thebankingaccountbutalsotransactionsprincipal credit riskmanagementcoversnotonlytransactions their riskamountforensuringappropriaterisk-return.Our bid tosecureprofitmargins(spreads)commensuratewith urement intermsandconditionsofeachtransactiona for eachcreditrating,andreflecttheresultsofthismeas- taking intoaccountexpenseratesandexpectedlossratios and internalcreditratings. through theoperationofcreditscreening,self-assessment managing individualcreditsinamoreelaboratemanner large borrowers.Forthelatter,onotherhand,weare diversification oftheoverallcreditportfolio,including on asector-by-sectorandcountry-by-countrybasis,the efforts tomitigatecreditconcentrationriskbymanaging, ment forindividualcredits.”Fortheformer,wearemaking “a diversifiedcreditportfolio”and“strictmanage- (1) CreditRiskManagementPolicy Temporary MeasurestoFacilitateFinancingforSMEs,etc. considering theintentionsofActconcerning working todevelopsystemshandlethemappropriately, point ofcreditriskmanagement.Therefore,weare tion relatedclientsetc.,arealsoimportantfromtheview- Trends Council. tions, andweestablishedtheRealEstateRisksMarket strengthening ourrealestatefinanceexaminationfunc- tem, wearestrengtheningourrealestatesurveyfunctions, We haveestablishedacreditriskmanagementframe- Furthermore, wehavesetastandardforprofitabilityby The basicpolicyofourcreditriskmanagementcallsfor Initiatives forbusinessimprovementoffinancialfacilita- To developourrealestaterelatedriskmanagementsys- Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 445 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel Credit Supervision Department II Credit Supervision Screens credit transactions strictly, provides appropriate Screens credit transactions and conduct Manage credit transactions appropriately risk management Conducts the internal audit of internal tabs on credit Based on the idea that keeping close To cope with country risk (the risk of investments or “Credit ratings”* that indicate the credit status of oblig- on page 450. * For details of our credit ratings system, please refer to “3. Internal Ratings System” For details * 6) Global Credit Supervision Department I and Global Global Credit Supervision 6) and departments, and conducts guidance to branches assessment), and deals with self-assessment (secondary problematic loans. 7) Branches and Departments self-assessment (initial assessment). 8) Internal Audit Department frameworks for various processes. (3) Other Related Matters on Credit Risk 1) Credit Concentration Risk Management of credit risk man- exposure to each obligor as the basics sheet and agement, we manage loans, stocks, off-balance and integrated other transactions in a comprehensive to derivatives manner. The credit amounts equivalent on a current transactions are calculated and managed cost of the transac- exposure basis (i.e., the reproduction exposures thus tion concerned). We place limits on credit of credit risk real- calculated, and also look into the impact ization of large obligors and the particular degree of con- centration on industry sectors with large credit exposures, reporting to the Executive Committee on a quarterly basis. lending becoming irrecoverable due to political, economic or social conditions of that country), we control exposures by country (the total sum of exposures obligor in a given country) in addition to control of exposure to each obligor. 2) Credit Ratings and Self-assessment ors and the possibility of defaults provide the basis for credit screening of individual transactions and credit port- folio management. The department applies credit ratings based on indus- Undertakes credit risk management through the meas- Deliberates and decides on basic credit policies as well Deliberates and decides on basic credit Based on the reports of credit risk management (includ- Based on the reports of credit risk management Decides on important matters related to credit risk man- Decides on important try research and research on credit evaluation of individual companies along with quantitative analysis, from a neutral standpoint independent from branches, departments, Grobal Credit Supervision Department I and Grobal Credit Supervision Department II. 5) Research Department uring of credit risk amounts, monitoring credit portfolios and validation of the appropriateness of self-assessment, write-offs and reserves, and verifies the appropriateness of the internal ratings system. Also, it designs and facilitates the management of credit risk in a proper manner as a risk management related department pertaining to credit risk. 4) Corporate Risk Management Department as investment and loan transactions, and secures the as investment and loan transactions, fund management strengthening and improvement of the the soundness of base, the effective use of funds and assets, including assets in trust. 3) Credit Risk Committee ing the results of asset assessment), the Executive ing the results of asset assessment), the credit strategy Committee deliberates and decides on them to the Board and economic capital plan, and brings and reviews of Directors. Also, the Committee develops and the calcu- the framework to carry out self-assessment manner. lation of write-offs and reserves in an appropriate 2) Executive Committee agement when establishing semiannual management agement when establishing on credit risk management (includ- plans. Based on reports assessment), the Board of Directors ing the results of asset strategy and economic capital plan, decides on the credit for self-assessment, and for write- and approves standards strengthening and improving the fund offs and reserves, the effective use of management base, as well as securing assets in trust. funds and the soundness of assets, including 1) Board of Directors 446 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. throu Individualcredit ratingscanbefurther adjusted,where necessary, (Note) priate manner. off badloansandsetasideloanlossreservesinanappro- manage creditriskthroughself-assessment,andalsowrite the riskofvalueassetsbeingimpaired.InSTB,we according totheriskofassetsbecomingirrecoverableand earning capacity,etc.,aswellthe“assetclassification” capacity bytheirfinancialstanding,cashpositions,profit- “classification ofobligors”byassessingclients’repayment teed trustaccountonaconstantbasis,anddeterminethe assets inthebankingaccountandprincipalguaran- assets) andotherstructuredfinancetransactions. project withno,orlimited,recoursetotheborrower’sother a particularproject,toberepaidwiththecashflowsofthat porate clients,includingbanks,toprojectfinance(loansfor from 1through10toawiderangeofobligors,allcor- Basel IIframework.Ourcreditratingsystemassignsratings Internal Ratings-BasedApproach(“IRBApproach”)ofthe serve asthebasisforcreditriskcalculationusing taining characteristicsofindividualobligors,andtheyalso cal quantitativemodelandqualitativeassessmentascer- Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report • ComparativeTableof Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Credit RatingsandSelf-assessment In principle,weconducttheself-assessmentforall Our creditratingsuseamethodthatcombinesstatisti- Credit Ratings 10 9 8 7 6 5 4 3 2 1 g h theadditionof[+]or[-]s Legally bankruptandvirtually Requiring careful monitoring Classification ofobligors 3-month delinquent/restructured At riskofbankruptcy omlNotcategorized Normal y Self-assessment mbols. II (not III Categories II , IV III or IV
) Default ness ofbusinessoperations. the appropriatenessofcapitalallocationandsound- management forindividualcredits,”andalsocancheck policy, i.e.,“adiversifiedcreditportfolio”and“strict we canascertainthestatusofourcreditriskmanagement folios. Therefore,byregularlymonitoringtheriskamount, assets, butalsotheeffectsofdiversificationcreditport- risk amountfiguredoutreflectsnotonlythequalityof to factorinthecorrelationbetweenindividualassets, the chartbelow). from whichthemaximumvalueoflossesisestimated(See narios (100,000inourcase)toplotadistributionoflosses Monte Carlosimulation,whichgeneratesavarietyofsce- are reportedregularlytotheBoardofDirectors. losses, asthecreditriskamount.Themeasurementresults loss, whichistheaveragevalueofestimatedbadloan range ofcertainprobabilitiesandtheexpectedbadloan maximum valueofbadloanlossesestimatedwithinthe recovery rates,wemeasurethedifferencebetween mates ofdefaultratesineachgradecreditratingand events overthecomingyear.Inparticular,basedonesti- the company’sassetsarelikelytoincurlossesfromcredit designed toquantitativelygrasptheextentashowfar 3) CreditRiskQuantification out reviewsofcreditratings. ing tomaintainappropriatenessofthesystembycarrying reflecting thecreditworthinessofclients.Wearealsostriv- evaluate thesoundnessofcreditportfoliosbyproperly tered inamutuallyconsistentmanner,toenableSTB tem sharebasicfinancialdataofclients,andareadminis- In theactualmeasurement,asourmethodisdesigned As ourriskmeasurementmethod,wehaveadopted The measurementofcreditriskamountweconductis The creditratingsystemsandtheself-assessmentsys- Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 447 regulatory Calculation of required capital required The First Pillar of Basel II Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel Credit Pool Categories) parameters Approach Estimation of some parameters (input variables) neces- As a method for calculating the amount of credit risk- As a method for calculating of regulatory Under the IRB Approach, the amount STB develops its own ratings system (Internal Ratings STB develops its own ratings system Estimation of on page 450. * For details of our credit ratings system, please refer to “3. Internal Ratings System” For details of our credit ratings system, please refer to “3. Internal * (b) Estimation of Parameters sary for risk measurement is implemented by collecting the actual results (performance data) of credit extended to individual credit transactions on the basis of ratings assigned under (a). (4) Coping with Basel II (4) Coping with Basel Capital by the IRB Measurement of Required 1) to the calculation of the required weighted assets related II, STB has adopted the IRB Approach, capital under Basel ratings and other internal data for the which uses credit management of obligors. 1. Basic Process of the IRB Approach three stages: required capital is calculated by the following Assignment of Credit Ratings (Credit Ratings and (a) Management)* in accordance with its risk profiles, and Management)* in accordance with its ratings to obligors. based on this system, STB assigns with the results of Credit ratings ensure the consistency of credit ratings is self-assessment, and the accuracy related departments secured with credit risk management and rating grades validating the internal rating system assigned to individual obligors. Credit ratings process Credit credit ratings credit Assignment of Large Maximum value of bad loan losses estimated within the range of certain probabilities → Securing of consistency on obligors Accumulation of financial data classification obligors/Asset Classification of Risk amount Estimated bad loan loss ← Small office Average value Average Self-assessment process by front
Monitoring and validation by credit risk management related departments risk management related Monitoring and validation by credit
Assessment departments Frequency use of these In managing the credit portfolio by making is conducted Usually, the measurement of risk amount We are also working on risk calculation techniques for • Basic Process of the IRB Approach • Risk Amount features of monitoring, we seek an operation of the credit features of monitoring, we seek an operation overall portfolio, portfolio that maximizes returns on the a certain range while maintaining the risk amount within client and industry through diversification by individual sector, and other measures. on default rates using estimated values calculated based measure, we and recovery rates, etc. As a complementary to estimate the also conduct “stress testing,” intended from a situation maximum possible losses that may arise historical data but that represents an aberration from multiple stress sce- could theoretically occur. We set out how the risk amount narios and conduct simulations to see The results of these changes in each of these scenarios. tests are reported to the Board of Directors. “price fluctuation risk inherent in credit risk” and “real estate-related risks,” and the creation of more sophisticat- ed stress scenarios, corresponding to the characteristics of Sumitomo Trust’s assets under our management. 448 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 2. For“funds,”weapplycalculationmethodsthatareappropriateforrespectiveunderlying assets. 1. Weusetheexternalratings-basedapproachandsupervisoryformula.Fordetails,pleaserefertopage461,“6.(I)Secur Notes: Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report transaction islikelytodefault duringaspecifiedperiod. (a) ProbabilityofDefault(PD) purposes forBaselIIaswell. the sameparametersusedforinternalriskmanagement ensure theobjectivityandaccuracy,weuse,inprinciple, parameters needhigherrequiredcapital.Inorderto credit risk-weightedassets.Exposureswithhigherlevelsof must beestimatedinordertocalculatetheamountof 3. EstimatedParameters SupervisoryFormula&PD/LGDApproach:FormulasprescribedintheNotification(byFinancialServicesAgency)areused. * • CalculationMethodsandCreditRatingsAppliedtoRespectiveExposures the NotificationbyFinancialServicesAgency. the resultof(b)abovetocalculatingformulabasedon (c) CalculationofMinimumRequiredCapital Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Approach Ratings-based Internal with aspecificriskweight. Supervisory SlottingCriteriaApproach:Anapproachtocalculatecreditriskbymappinginternalratingsthefivesup Top-Down Approach:AnapproachthatregardspurchasedassetsasanaggregateandusesformulasprescribedintheNotification( External Ratings-basedApproach:Anapproachthatusesriskweightsmappedtoexternalratings. Simplified Approach:Anapproachthatusespredeterminedriskweights. The priorprobabilitythata singleobligorora As describedbelow,therearethreeparameterswhich The minimumrequiredcapitaliscalculatedbyapplying prahAssetClassification Approach Retail Exposure Corporate Exposure Retail Exposure Equities, etc. Bank Exposure Sovereign Exposure Purchased eceivables Specialized Lending Corporate Exposure Other retailexposures Qualifying revolvingretailexposures Residential mortgageexposures no creditexposure,foreignequities Equities ofdomesticunlistedfirmswith equities ofdomesticunlistedobligors Domestic listedequities(includingOTCequities), to multipleunderlyingassets Cases whereclassificationisnotpossibledue Slotting criteriaapproachforunderlyingassets Regulatory formulaforunderlyingassets Project Finance,CommodityObjectFinance Loans forcommercialrealestate(withhighvolatility) Leading smallandmedium-sizedenterprises Large enterprises client defaultsonobligations. drawn fromlinesofcredit or otherfinancing,beforea events ofdefault,including additional creditthatmaybe (c) ExposureAtDefault(EAD) certain transactiontotheexposureatdefault. incurred intheeventofadefaultbycertainobligoror a (b) LossGivenDefault(LGD) and creditratingsweapplytorespectiveexposures: to thetablebelowforbreakdownofcalculationmethods ratings usedarevarieddependingonassetclasses.Pleaserefer 2. ApproachesApplicabletoRespectiveExposures The likelyexposureamountatthetimeofoccurrence The priorestimateoftheratioalosslikelytobe Under BaselII,methodsofcalculatingriskweightsandcredit Sub-category itization Exposures.” ervisory categories,eachofwhichisassociated Supervisory Formula Supervisory Formula Supervisory Formula Simplified Approach PD/LGD Approach Supervisory Formula Supervisory Formula Top-down Approach Criteria Approach Supervisory Slotting Supervisory Formula Criteria Approach Supervisory Slotting Supervisory Formula Supervisory Formula by theFinancialServicesAgency). Approaches Calculation Applicable * Credit Pools Credit Pools Credit Pools Obligor Ratings Obligor Ratings Obligor Ratings Credit Pools Structured Ratings Obligor Ratings Structured Ratings Obligor Ratings Obligor Ratings Applicable Credit Ratings — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 449 exposures are, among ” Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report management policy Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel We apply the Standardized Approach to subsidiaries that (a) The size and frequency of the expected credit loss Rank under the credit portfolio plan or the credit risk (b) (c) The ratio to overall credit risk-weighted assets We use ratings provided by the following qualified rating We use ratings provided by the following to our sub- We apply the Standardized Approach Corporation) and the Sumishin Panasonic Financial Services Group. subsidiaries undertaking lending operations*, those expo- subsidiaries undertaking lending operations*, developing systems sures that require a certain period for to be applied for to estimate the necessary parameters will create a plan their credit pools or credit ratings. We management inte- for execution within one year after the and will shift to the gration of STB and the CMTH Group, IRB Approach accordingly. * Sumishin Real Estate Loan & Finance, Limited. (assets transferred from First Credit Sumishin Real Estate Loan & Finance, Limited. (assets transferred from First * 2. The “Carved Out” Exposures undertake little credit business, if any, as well as certain transactions that are not significant in terms of credit risk management, carving them out from the IRB Approach. Criteria whether to carve out business units or transactions from the IRB Approach are made after fully considering their importance with respect to the following points: ing agencies, instead of our own credit ratings. We have ing agencies, instead We, however, partially use the adopted the IRB Approach. taking into account the need for Standardized Approach, ratings data, for exposures sub- accumulation of external phase to the IRB Approach (the ject to the transitional IRB Approach”) and for insignificant “phased rollout of from the scope of application of the exposures excluded IRB Approach. and Investment agencies to assess risk weights: Rating Rating Agency, Ltd. Information, Inc. (R&I); Japan Credit Standard & (JCR); Moody’s Investors Service, Inc. (Moody’s); Ratings Ltd. (Fitch). Poor’s Rating Services (S&P); and Fitch 1. The “Phased Roll-out” Exposures middle of prepara- sidiaries (business units) that are in the the IRB Approach. tory work toward the application of Subject to our “phased rollout ). For international credit ). For international ” ). In principle, we estimate PD for ” Calculation of Capital Adequacy Ratio Standardized Approach is Applied Quantitative measurement of credit risk, controls of Our estimates used for the calculation of the capital Our estimates used for the calculation The Standardized Approach calculates risk-weighted Authority for originating transactions, criteria for self- In our integrated risk management, we estimate PD, In our integrated ratings, we estimate PD in line with For domestic credit and stable level by excluding the impact of economic cycles. credit limits, etc. (a) Use of Estimated Typical PD* 5. Usage of Various Estimates for Purposes other than Usage of Various Estimates for Purposes other 5. applied for the fol- adequacy ratio coping with Basel II are lowing items: credit ratings on the basis of the cumulative default rate credit ratings on the basis of the cumulative latest 20 years and from the internal historical data for the data. For trans- by taking into account applicable external that do not actions subject to credit pool management PD, in principle, have the ratings migration, we estimate rates for the lat- by using the average of the actual default of per- est 10 years. Where the period of accumulation we estimate PD formance data has yet to reach 20 years, of the years for on the basis of the actual default rates which the performance data is available. ratings, we estimate PD on the basis of the mapping with ratings, we estimate PD on the basis Service, Inc. default data provided by Moody’s Investors (the “mapping method assets by using external ratings provided by qualified rat- 2) Exposures where the 2) assessment, standards for credit pricing, etc. * The typical PD is a single-year PD conservatively estimated to obtain the long-term * (b) Use of Credit Ratings LGD and EAD, and of them, we use estimates of PD as LGD and EAD, and IRB Approach under Basel II. parameters for the II which equates with the Basel the definition of default, basis of our performance data (the definition, on the data method “internal historical 4. PD Estimation Method 450 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ing model*to securetheobjectivityof internalrating credit ratingcriteria,pool categoriesandcreditrat- 1) PlanningProcess tivity ofcreditratings. Process”forensuringthesuitabilityandobjec- “Validation credit ratingsandpoolsassignmentcriteria,the Process”forappropriatelyapplyingthe “Implementation onCreditRatings”),the procedures andcriteria(“Policy Process”fordefiningratingsandsetting es the“Planning (2) AdministrationoftheInternalRatingsSystem ect financetransactionsandsecuritizedproducts,etc. corporations aswellstructuredratingsassignedtoproj- ings”). Eachsystemincludesobligorratingsassignedto tic ratings”)andtheoverseasratingssystem(“overseasrat- broadly dividedintothedomesticratingssystem(“domes- Policy. Moreoverourinternalcreditratingssystemis risk managementinaccordancewiththeRiskManagement panies), andcontributetoprofitmanagementcredit the STBGroup(excludinginsignificantconsolidatedcom- appropriate evaluationprocessforfinancialassetsheldby for eachcreditpool. it ratinggrade(creditandcreditpoolcategory)or default) ofobligorsandassignsatypicalPDforeachcred- (1) Outline oftheInternalRatingsSystemandCredit RatingsSystem 3. Internal Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. • AdministrationProcessofCreditRatings The planningprocessisthe proceduretoestablish The processrelatedtocreditratingassignmentcompris- Our internalratingssystemisintendedtoensurean The internalratingssystemranksthePD(probabilityof Pools System Planning Process Validation Process Implementation Process departments areresponsible. management, forwhichcreditriskmanagementrelated expert judgment. process, includingtheappropriatenessofobjectivity risk managementrelateddepartmentsensuretheentire monitoring functionoftheimplementationprocess,credit criteria setbytheimplementationdepartment.Through proper implementationofcreditratingsinaccordancewith risk managementrelateddepartmentsaremonitoringthe important inensuringthesuitabilityofratings. ment” madebyexpertjudgmentultimatelybecomes assess- the monitoringofobjectivity“qualitative assessment,” assessment”and“qualitative “quantitative take theapproachtodeterminecreditratingsbycombining judgment”).Aswe based onhumanjudgments(“expert assessment”isanassessment nal ratings,while“qualitative based onourcreditratingmodelandmappingwithexter- assessment”isanassessment assessment.” “Quantitative assessment”and“qualitative bination of“quantitative response tochangesinthecreditworthinessofobligors. way wherecreditratingsarereviewedinatimelymanner review andmonthlyreview,theratingsystemisrunina rating assignmentconsistsofanewassignment,regular “Implementation Department.”Theprocedureofcredit ratings assignmentandcreditpoolasthe business managementdepartmenttakeschargeofcredit process. InSTB,eachdesignateddepartmentsuchas accordance withthecriteriaprescribedinplanning ment andassignmentofcreditpoolsareundertakenin 2) ImplementationProcess * Our credit ratingmodelisthetoolwehavedevelopedonourowntoallocate • ImplementationProcessof CreditRatings the financialdataofobligors. rating gradethatcorrespondsstatisticallytotheprobabilityofdefault(PD)byusing In STB,throughouttheimplementationprocess,credit Furthermore, weassigncreditratingstoclientsinacom- In theimplementationprocess,creditratingassign- Quantitative sesetQualitative assessment Credit ratings ＋ assessment Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 451 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel The staff of implementation departments responsible for The staff of implementation the margin of modification is limit- For expert judgment, obligors (non- We assign credit ratings to all overseas compared to Given the limited availability of data When there are no external ratings, we compare other (b) Qualitative Assessment credit ratings assess “keiretsu” assigning sector-by-sector industry circumstances, external rat- corporate groupings, is stability and other information that ings, future cash flow indicators as expert judgment. not reflected in financial assessment items are indicated in writ- ed, and qualitative of those staff ing in order to contain the arbitrariness of credit ratings. responsible for the assignment credit risk Furthermore, departments which manage objectivity. supervise the content of revisions to ensure Ratings Procedure for Assigning International Credit 2. (a) Subjects to be Rated residents and non-Japanese). (b) Quantitative Assessment to external ratings domestic ratings, overseas ratings look factors (for (Moody’s, S&P and Fitch) as main judgment ratings), and standard ratings and quantitative assessment senior bonds are in principle, ratings on unsecured there are multiple regarded as “standard ratings.” When as the standard external ratings, whichever is lower is used rating, in principle. companies in the same industry sector (in principle, multi- ple companies are selected from the same industry in the same country), or ratings based on the “Credit Statistics” publicized by rating agencies, and determine the “quanti- tative assessment ratings” as a prime factor for rating. Through this procedure, we secure the consistency of credit assessment criteria between obligors with external ratings and obligors without external ratings. Suitability validation Ratings Systems In domestic ratings, we use the credit rating model In domestic ratings, we use the credit We assign credit ratings to all domestic corporate We assign credit ratings to all domestic Credit risk management related departments, as Credit risk management implementation departments In the validation process, 1) Credit rating results—Suitability validation 2) Credit rating assignment criteria—Objectivity validation validation 3) Credit pool classification—Suitability Parameters applied to credit ratings and credit pool— 4) under which obligors’ financial indicators are explanatory under which obligors’ financial indicators variable. In variables, and the typical PD is the explained have classified our building the credit ratings model, we obligors into five industry categories of manufacturing, wholesale/retail, services (including nonbanks), transporta- tion/communications and construction/real estate in order to reflect financial characteristics of each industry sector in the assessment, and adopt statistical methods to choose financial indicators with a high correlation to the PD. Also, financial data employed for the building of the model and the assessment of individual obligors by the model is used with information additional to public financial statements, such as unrealized losses, obtained by the front office department, thus enabling the quantitative assessment that reflects the actual condition of obligors. (a) Quantitative Assessment obligors (residents and nonresident Japanese). 1. Subjects for Assigning Domestic Credit Ratings 1. Subjects for Assigning Domestic Credit (3) Details of the Internal Ratings System (3) Internal Procedures for Ratings Assignment under the 1) “Validation Departments,” carry out validation work once “Validation Departments,” ensure the accuracy and adequacy of a year in order to ratings model. results of the credit while validation departments provide data for validation, of the following items: undertake the validation 3) Validation Process 452 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report assessment atcredit riskmanagementrelated departments. ratings assigned bymonitoringtheadequacy ofqualitative ing onspecifictransactions,we areensuringtheobjectivityof factors intoconsideration. ment, insomecases,adjusts the ratinglevelbytakingthese long-term leasecontract,the assessmentbyexpertjudg- such aswhenahighlycreditworthytenanthasundertaken a (c) QualitativeAssessment tion ofchangesintheenvironmentduringagivenperiod. and/or refinancingbycombiningthetwoindicatorsabove. ty ofredemptionsbythesalesubjectpropertyatmaturity we assessdefaultriskduringagivenperiodandthecertain- tracted principalpayments.Inthequantitativeassessment, flow totheamountofinterestonloansorbondspluscon- service coverageratio(DSCR),whichistheofnetcash the appraisedvalueofsubjectasset;and2)debt ratio oftheamountloanstakenoutorbondsissuedto of structuredratings:1)theloantovalue(LTV),whichis (b) QuantitativeAssessment ings maybeassignedtodifferenttranches. tranche duetodifferentfinancialconditions,rat- cases wheretheprobabilityofdefaultdiffersforeach Even whenasingleobligororissuerisinvolvedlegally,in assets. StructuredratingscorrespondtoeachPDlevel. as earningsandsalesproceedsfromspecificfinanced projects withthesourceofprincipalandinterestpayments (a) SubjectstobeRated 3. ProcedureforAssigningStructuredRatings risk supervisethecontentofrevisionstoensureobjectivity. assessment. Furthermore,departmentswhichmanagecredit imposed onthemarginofmodificationforeachitem assessment factorsnotusedinJapan,andlimitsare ria fordomesticcreditratingsandalsobyincorporating are determinedonthebasisofqualitativeassessmentcrite- (c) QualitativeAssessment Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Since structuredratingsarestrongly individualizeddepend- In arealestatenon-recourseloan,forexample,incases In addition,weassesstheDSCRconservativelyinanticipa- Two indicatorsareusedforthequantitativeassessment Structured ratingsareassignedtostructuredfinance The qualitativeassessmentratingsbyexpertjudgment retail exposures.” exposure,” “qualifyingrevolvingretailexposure”and“other are dividedintothreesub-categories:“residentialmortgage collateral coveragestatusanddelinquencystatus.Theloans according toproducttype,obligorstatus,transaction (b) AssignmentofCreditPoolCategories assigned obligorratingsandmanagedindividually. standing balanceofwhichis¥100millionorhigher,are However, businessfinanceloanstoindividuals,theout- management approachtoloansprovidedindividuals. as thetransactions.Inprinciple,STBappliescreditpool profiles withregardtorisksrelatingtheobligorsaswell (a) TransactionsSubjecttoCreditPoolCategorization 4. ProceduresforAssignmentofCreditPoolCategories due tomarketvolatility(market liquidityrisk).” trade atpricessignificantlydisadvantageousthanusual duct transactionsonthemarketorbecomesobligatoryto caused inasituationwhereitbecomesimpossibletocon- outflow offunds(fundingrisk)”andthe“riskloss between investmentandfundingand/oranunexpected cantly higherthanusual,duetomaturitymismatches becomes obligatorytoraisefundsatinterestratessignifi- where itbecomesdifficulttosecurethenecessaryfundsor owing tofluctuationsinthevalueofotherassets.” foreign exchangerates,commodities,creditspreads,or to fluctuationsofitems,suchasinterestrates,stockpricesand in thevalueofassets/liabilitiesorrevenuesthereof,eitherdue Internal RiskManagementFramework 4. MarketRiskandLiquidity T dividesloanstoindividualsintoseveralcategories STB A creditpoolisagroupoftransactionswithsimilarrisk Liquidity riskisthe“riskoflosscausedinasituation Market riskisthe“riskofincurringlossesduetofluctuations Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 453 Reports on risk amount and status profit/loss Middle office balances Checks and ket trading (front offices), Inspects management status Allocation of Risk Amount Monitors risk amount and profit/loss status Monitors risk amount and profit/loss Front office Front External audit ALM Committee Board of Directors Board Executive Committee Internal Audit Department balances Checks and Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Back office Verifies transactions Verifies status Determines basic Determines market Supervises risk
● ● ● management risk management risk policies risk amount risk Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel As a middle office independent from departments As a middle office and effec- Conducts internal auditing of the adequacy as necessary in We have external audits conducted • Market Risk/Liquidity Risk Management Framework 4) Corporate Risk Management Department 4) Corporate Risk Management processing (back offices) and responsible for business departments responsible for mar Management Department is in the posi- the Corporate Risk control functions among the front tion to ensure proper role of this department includes the and back offices. The of market and liquidity risks man- monitoring of conditions of risk amount aged under the ALM Basic Plan, measuring promoting market and profits/losses, and planning and It monitors the and liquidity risk management measures. loss limits. The status of observance of risk limits and of the ALM department reports its findings to the members and directly to Committee on a daily basis, and periodically of Directors. the ALM Committee as well as the Board 5) Internal Audit Department tiveness of the risk management framework. 6) External Audit of the risk manage- order to ensure the appropriateness ment processes and procedures. * On a semiannual basis, the ALM Committee plans the On a semiannual basis, the Executive Committee deliber- On a semiannual basis, the Executive Committee The Board of Directors approves and determines the The Board of Directors approves and We recognize market risk as the source of profits, and We recognize market eign exchange risk, interest rate risk, etc. by grasping the attributes of maturities and interest rates from assets and liabilities. * ALM: Asset-Liability Management, designed to manage cash flows, liquidity, for- ALM: Asset-Liability Management, designed to manage cash flows, liquidity, * ALM Basic Plan on the company-wide comprehensive risk operational management for assets/liabilities as well as a risk management plan related to market and liquidity risk. The ALM Committee is held on a monthly basis and con- trols market and liquidity risks on a consolidated basis, and strives to ensure the soundness of the composition of assets and liabilities as well as stability of earnings. 3) ALM Committee ates and decides the ALM Basic Plan and a risk manage- ates and decides the ALM Basic Plan In addition, ment plan referred by the ALM Committee. risk management, based on reports on the status of market measures to develop the Executive Committee implements and improve the framework for facilitating control functions. 2) Executive Committee ALM Basic Plan and a risk management plan as important ALM Basic Plan and a risk management risk under man- matters related to market risk and liquidity agement plans on a semiannual basis. (2) Market Risk and Liquidity Risk Management Framework Market (2) 1) Board of Directors make it our basic management policy to proactively take make it our basic management range and appropriately manage risks within the allowable will maximize returns. With respect them in a manner that risk), we recognize this should be to liquidity risk (funding and set a basic policy to manage appropriately managed, limit to avoid this risk by taking it by setting an appropriate account. Regarding our own fund-raising capabilities into basic policy is to liquidity risk (market liquidity risk), our involving manage it by limiting the amount of transactions market risk to an appropriate level. (1) Market Risk and Liquidity Risk Management Policy (1) Market Risk and 454 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report occurred inthemarketon the occasionofpastmarket scenarios, includingscenarios basedonchangesthat carries outappropriatestress testingusingmultiplestress (an overrunoftheholdingperiod, etc.).Themiddleoffice with changesgoingbeyondstatisticallyexpectedlevels simulate theextentofpotentiallossesunderasituation the internalmodel,weregularlyconductstressteststhat 3) StressTesting tiveness ofinternalmodelsused. trols, wedobacktestingtoverifythereliabilityandeffec- results arereportedtotheALMCommittee. accuracy oftheinternalmodel.Inaddition,quarterly exceeding VaR,conductsafactoranalysis,andassuresthe VaR onadailybasis,and,intheeventofactualloss results ofcomparisonbetweenactualprofitandloss actual dailyprofitandloss.Themiddleofficemonitorsthe out backtestingbycomparingdaily-calculatedVaRwith 2) BackTesting considering thecorrelationbetweenthesecategories. market riskbysimplyaddingupallcategorieswithout risk, foreignexchangeratefluctuationetc.Wecalculate fied intointerestratesfluctuationrisk,stockprice options transactions.Bycategory,marketriskcanbeclassi- for calculatingsomerisks(nonlinearrisks,etc.)suchasin at thesametimealsouseshistoricalsimulationmethod ciple, basicallyemploysthevariance-covariancemethod,and risk managementindicatorsandcarryingoutsimulations. measure VaRandalsomanageriskbycalculatingvarious under specificconditions. ance tostatisticallypredictthemaximumexpectedlosses risk. VaRuseshistoricalactualmarketfluctuationperform- 1) QuantificationofMarketRisk (3) MarketRiskManagementApproach Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. In additiontothemanagementofmarketriskthrough To enhancetheeffectivenessofthesemarketriskcon- To validatethereliabilityofourinternalmodel,wecarry Our measurementofVaRusingtheinternalmodel,inprin- Based ontheinternalmodeldevelopedourown,we We employValueatRisk(VaR)asameasureofmarket ing plannedinvestmentamounts, canbecoveredbyassets required) andcheckwhether futurefinancinggaps,includ- upper limitonthedailyfinancing gap(theamountoffunds risk. Wemanagefundingrisk onadailybasisbysettingan (4) LiquidityRiskManagementandALM ket risk,iscomparedwithriskcapital. includes theriskamountofcategoriesotherthanmar- the integratedriskamount(overallVaR),whichalso market risks.Intheassessmentofadequacycapital, aged tofallwithintheamountofriskcapitalallocated lowing themeasurementcriteriabelowinprinciple: the tradingaccount,VaRiscalculatedonadailybasisfol- tract terms. daily basisfollowingthemeasurementcriteriabelow: the bankingaccount,inprinciple,VaRiscalculatedona 4) StatusofMarketRisk various scenariostostresstesting,etc. supplements tomarketriskmeasurementbyVaR,weadd advanced riskmanagement.Tofurtherstrengthenour to financialcrises,thusweareimplementingmore bers oftheALMCommittee. a monthlybasis,andtestingresultsarereportedtomem- the portfoliocharacteristics.Stresstestingisconductedon that occurredoveracertainperiodoftimeaccordingto events andscenariosthatreflectthemaximumchange Liquidity riskscomprisefundingriskandmarketliquidity The marketriskamount(VaR)describedaboveareman- • Observationperiod:1year • Holdingperiod:1businessday • Confidenceinterval:One-tailed99% VaR measurementstandards With respecttothemonitoringofmarketriskamountin The expiryoftransactionsisinaccordancewithcon- • Observationperiod:1year • Holdingperiod:21businessdays • Confidenceinterval:One-tailed99% VaR measurementstandards With respecttothemonitoringofmarketriskamountin We haveexperiencedintensemarketfluctuationsdue Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 455 2 and remedial ” Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report under a certain interest rate fluctuation scenario* under a certain interest rate fluctuation Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel 1 Regarding currencies which account for less than 5% of our overall assets or lia- The internal model used in measuring the market risk The internal model risk for the bank- Regarding the amount of interest rate deposits are defined as the lowest of the following three, as an upper limit, for the five-year maturity (the average term of 2.5 years): 1) the lowest balance of deposits in the past five years; 2) the balance left after deducting the maximum annual outflow of deposits in the past five years from the current balance of deposits; or 3) the amount equivalent to 50% of the current balance of deposits. the 1st and 99th percentile of the fluctuation of interest rates measured for the one year holding period and the minimum observation period of five years for the Japanese yen, U.S. dollar and Euro. bilities, we uniformly use a parallel shift of 200 basis points upward or downward as an interest rate fluctuation scenario. company and exchange rate risks at consolidated subsidiaries. company and exchange rate *2 Our risk measurement method uses the interest rate sensitivity approach. Core *2 declines by more than 20% of the sum of Tier I capital (core declines by more than 20% of the sum capital), a bank capital) and Tier II capital (supplementary falls under the category of “outlier banks, Our interest rate fluctuation scenario assumes an interest rate shock consisting of *1 * We apply the Standardized Approach concerning individual risks at the parent We apply the Standardized * actions to improve its stability will be made. The outlier actions to improve its stability will be amount of interest ratio is obtained by dividing the overall (Tier I capital + Tier rate risk by the broadly defined capital page 164, our out- II capital). As indicated by the table on 3.3% as of March 31, lier ratio (on a consolidated basis) was outlier banks. With 2011, keeping us out of the category of risk in the banking respect to the amount of interest rate account, the amount of interest rate risk for internal man- agement purposes and the overall amount of interest rate risk used for calculating the outlier ratio are not necessarily the same because of differences in the measurement method, calculation conditions and other matters. equivalent is the same as the internal model for internal equivalent is the same the holding period for the trading management, but one day for internal management account, which is just in conformity with purposes, is set at 10 business days effectiveness of the Basel II. We validate the reliability and internal model by conducting back testing. 2) Outlier Ratio value calculat- ing account under Basel II, when economic ed* quacy ratio. We calculate the market risk equivalent mainly quacy ratio. We calculate Models Approach*. by applying the Internal The market risk equivalent refers to the sum of market Market liquidity risk is unavoidable risk that arises when Market liquidity risk is unavoidable risk risk in the trading account and foreign exchange risk and commodities risk in accounts other than the trading account, which is a factor used to calculate the capital ade- (5) Coping with Basel II 1) Measurement of Market Risk Equivalent we undertake market risk. We conduct risk management in we undertake market risk. We conduct in market risk ways to keep market liquidity risk involved by determining the within an appropriate range, for example with due considera- amount of market risk we can undertake a level that enables tion as to whether the risk amount is at of the market size. transactions at reasonable prices in light risks and makes The middle office monitors these liquidity and the Board of periodic reports to the ALM Committee exchange settle- Directors. Meanwhile, regarding foreign to receive curren- ment risk, which refers to the risk of failing in exchange for cies purchased in foreign exchange trading the payment of sold currencies (due to bankruptcy of the counterparty), we are moving to mitigate settlement risk through the participation in settlement members of Continuous Linked Settlement Bank (CLS Bank), which is a bank owned by the foreign exchange community that pro- vides the largest multi-currency cash settlement system, eliminating settlement risk for over half the world’s foreign exchange payment instructions. easily convertible into cash and funds to be raised from the easily convertible into monitoring to ensure proper cash market, and conduct the management described above, we flow. In addition to tests based on various scenarios perform liquidity stress unique to STB and overall market which assume stress that even if unexpected situations stress. We are confirming liquid assets. Also, we take all occur, there are sufficient ensure appropriate liquidity risk man- possible measures to three different agement. For example, we have established times,” “times settings for managing funding risk—“normal on the of concern” and “times of emergency”—depending developed liquidity financing liquidity condition, and have and “times of contingency plans for the “times of concern” emergency.” 456 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ects, etc. improper managementof systemdevelopmentproj- inappropriate responseat thetimeofsystemfailure, classified informationofthe company,systemfailureor improper managementofinformation ofourclientsand 2) InformationSecurityRisk ties, orotherincidentssuchasaccidentfraud. employees neglectingtoengageinproperbusinessactivi- 1) BusinessProcessingRisk toring ofthesixotherframeworks. framework formanagingoperationalriskthroughthemoni- that constituteoperationalriskaswellacomprehensive frameworks formanagementofrisksinsixsubcategories risk managementframework,wehavedevelopedseparate by anychanceanaccidentdoesoccur. respond promptlyandcontaindamagetoaminimum,if framework andstrengthenitsoperationsothatwecan It isourbasicpolicytobuildtheinternalriskmanagement of riskpreventionthrougheducationandenlightenment. strict implementation,andtheenhancementofawareness development ofvariousrulesandregulationstheir ties andthequalityofourservices,inadditionto out activitiestoenhanceourstaff’sadministrativecapabili- to preventsuchriskfromoccurring.Wecontinuouslycarry (1) OperationalRiskManagementPolicy risk, eventriskandreputationalareincluded. information securityrisk,compliancehumanresource external incidents.”Inourcase,businessprocessingrisk, executives oremployeesandcomputersystemsaswell from inappropriatebusinessprocessesandtheactivitiesof Internal RiskManagementFramework 5. OperationalRisk Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Risk ofincurringlosses,owingtofactorssuchas Risk ofincurringlossesarisingfromexecutivesor From theviewpointofbuildinganeffectiveoperational The primaryobjectiveinoperationalriskmanagementis Operational riskisdefinedasthe“riskoflossesarising of operationalriskmanagement. appropriate instructionsafterassessingtheeffectiveness dents andtheamountofoperationalrisk,issues operational risksituation,includingtheoccurrenceofacci- Management Plan)adoptedonasemiannualbasis. to operationalriskmanagementactivities(OperationalRisk The BoardofDirectorsdecidesonimportantmattersrelated Management PolicylaiddownbytheBoardofDirectors. ious rulesandregulationsonthebasisofRisk operational riskmanagementsystem,processesandvar- 1) BoardofDirectors (2) OperationalRiskManagementFramework media reports,rumorsorspeculation. oritssubsidiaries, owingtoreasonssuchasmass STB on businessasaresultofdeteriorationinreputationfor 6) ReputationalRisk tions suchasnaturaldisasters,warandcriminaloffenses. 5) EventRisk and harassment. to compensation,benefitsandreleasefromemployment), unfair managementofpersonnel(includingissuesrelated 4) HumanResourceRisk capacity bythetransactioncounterparty. including thelackofnecessaryprovisionsorlegal to completetransactionsduecontractualimpediments laws andregulationsinJapanabroad,oraninability claims orlawsuitsarisingfromalackofcompliancewith 3) ComplianceRisk The BoardofDirectorsreceivesregularreportsonthe Puts thestructureinplacetodevelopandimprove Risk ofincurringlossesduetoa(possible)majorimpact Risk ofincurringlossesarisingfromextraordinarysitua- Risk ofincurringlossesduetoissuessuchasunequalor Risk ofincurringlossesforreasonssuchaspenalties, Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 457 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel The Internal Audit Department conducts an internal The Internal Audit a framework to collect and analyze We have in place risk assessment, Each business periodically conducts uses this The Corporate Risk Management Department The operational accident occurrence situation, risk 4) The Internal Audit Department 4) The Internal Audit and effectiveness of the risk man- audit of the adequacy agement framework. Risk Management (3) Methods of Operational a accidents for the STB Group as reports on operational the recurrence whole and implement measures to prevent Risk Management of similar accidents, with the Corporate man- Department, which is responsible for comprehensive activities of other agement of operational risk, coordinating risk management related departments. situations in each identifying scenarios of operational loss and loss frequen- operation. It determines the loss amount the operation vol- cy according to certain rules, based on results and the ume, Control Self Assessment (CSA) operational accident occurrence situation. data collected from scenario loss data and internal loss Monte Carlo simula- operation accident reports, and runs and one year hold- tions for a certain confidence interval maximum ing period, to calculate the predicted risk amounts are operational risk amount. Operational in our internal man- allocated to each business, and used agement: risk amount plans, earnings targets, etc. assessment results, operational risk amounts etc. are peri- odically reported to the Executive Committee and the Board of Directors. We practice highly effective manage- ment, by creating and implementing operational accident reoccurrence prevention policies, and risk reduction poli- cies for scenarios with large impacts. Risk Management related Department Corporate Risk Management Department Operations Process Planning Department (Personnel Department for internal fraud) IT & Business Process Planning Department Legal and Compliance Department Personnel Department Corporate Administration Department Corporate Risk Management Department Risk Category We established risk management related departments We established risk management related collect and Risk management related departments On the basis of reports on the operational risk manage- On the basis of reports Business Processing Risk Information Security Risk (system risk, information management) Compliance Risk (including legal risk) Human Resource Risk Event Risk Reputational Risk Operational Risk which manage risks of each sub-category, and also estab- which manage risks of each sub-category, Department which lished the Corporate Risk Management risks. These depart- comprehensively manages operational and run the oper- ments cooperate to appropriately manage ational risk management system. for the assess various data related to risk management responsible for monitoring of risk profiles, and are also necessary informa- instructing each business, providing tion to the Board of Directors. 3) Risk Management related Departments ment situation, deliberates the Operational Risk Plan, estab- ment situation, deliberates (Operational Risk Management lishes a committee operational risk management, Committee) concerning for the management of respective departments responsible department(s) responsible for com- risk subcategories and of operational risk, and maintains prehensive management management. the proper conditions for operational risk 2) Executive Committee • Risk Management related Departments 458 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report similar accidentsfromoccurring. ance, andtakeactionswhichcontributetopreventing sary instructionsrequiredforclientrelationsandcompli- Risk ManagementDepartment,whichthengivetheneces- agement relateddepartments,includingtheCorporate responsible forsupervisingbusinessesandtheriskman- dent’s impacts.Thesearereportedtothedepartments which wascreatedbyconsideringthescopeofacci- our reportingsystem,basedon“importancecriteria tems foroperationalaccidentsacrosstheentireSTBGroup. etc. Weareimprovingourreportingandmanagementsys- prevent reoccurrence,buildingadatabaseofinternallosses, (4) Management Activities regardingOperationalAccidents Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. • OverviewofOperationalRiskManagementSystem Risk management plan, Outcomes of risk management measures Operational accidentswhichoccurredareregisteredin STB aimsatproperclientrelations,creatingpoliciesto Operational accidents Internal control factor Business Environment
Reflect in risk assessment A. Collectionandanalysisofriskmanagementdata Risk managementplan,Outcomesofriskmeasures Business line indicators Major risk Risk assessment development External loss Occurrence assessment Scenario Estimated frequency database losses CSA Operational accident reports (system) Scenario loss Internal loss database database ” Subcommittee errors andsystemfailures,the“RiskManagement ational accidentmanagement. reviews asnecessary,toensuretheeffectivenessofoper- policies topreventtheirreoccurrence.Italsodoes rence situationsofaccidents,theresponsestoclientsand and reportstotheExecutiveCommitteeonoccur- Committee, periodicallyandwhennecessary,discusses the business,OperationalRiskManagement operational accidentswhichhavesignificantimpacton prevent similaraccidentsfromoccurring.Withrespectto an accidentreoccurringlaterallyinthecompany,andto similar typesofoccurrences,tominimizethechances other departmentsandbranchesthatmightencounter policies whichpreventitsreoccurrence.Italsowarns deep tofindthecausesofitsoccurrence,andverifies For individualaccidentssuchasseriousoperational amounts (Amounts Create policy Operational risk for elimination) management management VaR calculation Individual VaR B. Quantitativeriskmanagementactivity policy plans Risk Risk model C. PDCACycleofRiskManagement ” established foreachsubcategorydigs management Progress Operational riskVaR (Consolidated basis) Risk amount Year-end plans review
E. Qualitative D. Utilization for economic capital evaluation Verification of capital adequacy Evaluation based on business-bybusiness SVA and ROE Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 459 (“Information ” ), our basic policy on information security ), our basic policy ” Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel We have established the risk management framework We have established the risk management In order to maintain and enhance the safety and reliability In order to maintain management, as well as specific observance standards, and management, as well our computer system risk manage- are working to improve systems have become indispensa- ment system. Computer of information ble as a result of the rapid development that if our comput- technology (IT), and there is the concern disaster occurs, er system breaks down or an unforeseen damage done, the situation will be severe with far-reaching Thus, in addition including a disruption in services to clients. of com- to conducting sufficient testing in the development the occurrence of puter systems and working to prevent the progress in the breakdowns, we regularly check on Furthermore, development of important computer systems. event of a system in order to minimize the impact in the system infrastruc- breakdown, we have prepared a double a plan for dealing ture, built a backup system, designed and periodically with emergencies (i.e., a contingency plan), conducted training for a system breakdown. and, when prob- under which we monitor the risk situation and deal with the lems are discovered, follow procedures of the Internet has problems promptly. While the spread helped enhance client conveniences, new risks have emerged such as threats to clients’ personal information as well as our sensitive internal information as a result of illegal access from the outside. We are working to ensure security by vigilantly watching around the clock for any such attacks and through constant improvements to our computer systems. Security Policy (6) Information Security Risk Management Activities (6) Information Security systems, we have adopted the of our computer Management Policy “Information Security drawn up semiannually ” which determines the basic items of ” Also, in order to strengthen the internal risk manage- Also, in order to strengthen the internal In cases where STB outsources an operation, we choose We also have in place a variety of check-and-balance On top of banking businesses in Japan and overseas, On top of banking ment system, we review authority and rules in business ment system, we review authority and use on-the-job processes, centralize business processes, skills of our clerical training, and training to upgrade the inspection staff, and the enhancement of autonomous within departments functions through internal inspections and branches. the contractor from a comprehensive perspective, such as service quality and certainty of continuity. Even after an operation is outsourced, we periodically review the con- tractor’s situation, and check that there are no problems. In this way, we work to maintain quality in business pro- cessing and prevent leakage of client information. structures from the standpoint of preventing internal fraud, and provide a range of training programs to make each officer and employee fully aware of the high degree of the public nature of services provided by a trust bank. by the Board of Directors. The Operations Process by the Board of Directors. The Operations Planning Department, which is a risk management-related monitors the situ- department for business processing risk, ation and provides guidance to each business. we are engaging in a broad range of trust and asset man- we are engaging in including pension, investment man- agement businesses, and stock transfer agency. As these agement, real estate a high level of expertise and high-qual- businesses require have established a department to ity clerical work, we guidance to business processing oversee and provide business process- operations at each business to facilitate our responsibilities ing administration to better live up to business is also regarding clients’ entrustments. Each management activi- undertaking business processing risk “Business Risk ties on their own, based on the Management Policy, (5) Business Processing Risk Management Activities (5) Business Processing business processing risk management, and on the business processing risk management, “Business Risk Management Plan, 460 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. contents inordertosecuretheeffectivenessofplan.In plan (BCP)andconductregulartrainingreviewsofthe ed accidents.Wealsohaveinplaceabusinesscontinuity even intheeventofnaturaldisastersandotherunexpect- execute businessoperationsinanappropriatemanner guidance fromanemergencyheadquarterssothatwecan that enablesustocontinuebusinessoperationswiththe (7) ActivitiestoManageOtherOperationalRisks rity onacompany-widebasis. awareness ofthenecessitymanaginginformationsecu- employees inordertomakethemactwithagreater tion andinformationtoallofourexecutives tion. Furthermore,wearecontinuouslyprovidingeduca- adequate protectionandutilizationofpersonalinforma- other regulationsandsystemsfromtheviewpointof information managementsystemandimprovingvarious personal informationbyfurtherreinforcingtheexisting Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report • StandardizedApproach Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Information, 2005 ofthe“DeclarationforProtectionPersonal information. Inaddition,sincetheannouncementinApril utilization, safekeeping/storinganddisposalofpersonal criteria thatmustbeobservedregardingthecollection, tection ofclients’personalinformation,andalsosetforth information managementofficersresponsibleforthepro- protection ofpersonalinformation.Wehavedesignated Asset Management Agency Services Corporate Finance Trading &Sales Retail Brokerage Settlement Services Commercial Banking Retail Banking Business Category In themanagementofeventrisk,wehavebuiltasystem Our “InformationSecurityPolicy ” we haveredoubledoureffortstoprotect Asset management operationsforclients Business operationsundertakenasagents forclients (excluding operationssubjecttoretail bankingandcommercialbanking) and otheroperationsrelatedtoclients’ fundraising Intermediation ofcorporateM&A;underwriting, saleandacceptanceofsubscriptionsforsecurities ness operationsmainlyforlarge-lotclients Operations relatedtotradingtransactions; securities,foreignexchangerateandinterestbusi- Securities businessoperationsmainlytargetingsmall-lotclients Settlement-related operations Deposit-taking andlendingoperationsoutsidetheretailmarket (small andmedium-sizedbusinessesindividuals) Deposit-taking andlendingoperationsintheretailmarket ” has providedforthe Remarks (8) CopingwithBaselII our businessmanagement. reports andrumorsfrommakingasignificantimpacton tions activitiesfromtheviewpointofpreventingsuch respond tothemthroughpublicrelationsandinvestorrela- and rumorsaboutus,promptlyappropriately have builtasystemtocollectinformationonmediareports Furthermore, forthemanagementofreputationalrisk,we and sexualharassmentabuseofauthority. isfaction withperformanceevaluationandunfairtreatment, and preventingsuchproblemsasonesarisingfromdissat- framework fromtheviewpointofappropriatelymanaging addition, wehavebuiltahumanresourceriskmanagement operational riskmanagement. Approaches, wewilltacklethefurthersophisticationof percentages commensuratewithrisk. ing grossincomeforeachcategorybydifferent gories (aslistedonthepreviouspage),andthenmultiply- first classifyingourbusinessoperationsintoeightcate- method, wemeasuretheamountofoperationalriskby the operationalriskamountunderBaselII.Underthis We usetheStandardizedApproachforcalculationof operational riskaspartofrequiredcapitalunderBaselII. Method UsedfortheCalculationofOperationalRiskAmount With aneyetotheshiftAdvancedMeasurement Since theendofMarch2007,wehavebeenmanaging Business Category 12% 15% 18% 18% 12% 18% 15% 12% Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 461 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel In implementing securitization transactions, we have In implementing securitization for securitization In calculating the amount of credit risk risk-weighted We prioritize calculation methods for credit Qualifying rating agencies we use when we calculate adopted a method of sale that recognizes the extinguish- adopted a method with the transfer to others of con- ment of financial assets rights over financial assets, in line with trol of contractual for financial products. In the case of accounting standards we recognize the extinguishment of loans, for example, when the transfer of assets is legally assets, in principle, payment for the transfer is received. In completed and the after the execution the case where we hold retained equity recognize the sale of a securitization transaction, we do not retained equity con- of assets for a portion related to the assets. cerned, and include it in credit risk-weighted Exposures 2) Management Method of Securitization credit ratings exposures, we use specific individual measure the risk assigned to securitization exposures, and ordinary corporate amount in much the same way as with with securitization exposures. Interest rate risk associated of market risk. exposures is subject to the calculation 3) Coping with Basel II choose applicable assets in securitization exposures, and For securitiza- calculation methods with the highest priority. external ratings, we tion exposures assigned with qualifying use an “External Ratings-Based Approach” to calculate risk weights. For securitization exposures without qualifying external ratings, we apply the “Supervisory Formula” com- mensurate with the characteristics of underlying assets to the calculation of risk weights. Securitization exposures to which neither of the above-mentioned approaches can be applied are deducted from total capital. The total of capital charges against securitization exposures held is not to exceed the amount of required capital in the case where the IRB Approach is applied to underlying assets. credit risk-weighted assets with the “External Ratings- Based Approach” are Rating and Investment Information, Inc. (R&I); Japan Credit Rating Agency, Ltd. (JCR); Moody’s Investors Service, Inc. (Moody’s); Standards & Poor’s Rating Services (S&P); and Fitch Ratings Ltd. (Fitch). We will consider the possibility of making more active In principle, we invest in securitization products Securitization is a transaction where credit risks of multi- Securitization is a transaction principally as We participate in the securitization market use of securitization transactions, undertaken as an origi- nator, going forward as a means of controlling our loan portfolio. In doing so, we plan to design transactions that would effectively realize the intended transfer of credit risks, and also calculate credit risk-weighted assets we bear after securitization in an appropriate manner. 2. Originator assigned with high external ratings, and during investment periods, try to secure stable earnings opportunities by regularly monitoring not only external ratings but also the status and performance of underlying assets. 1) Management Policy of Securitization Exposures 1. Investor (1) Securitization Exposures are divided into two or more different ple underlying assets and subordinated structure, and classes forming a senior or wholly to third parties. Well- then transferred partially by type of underlying assets, include known such assets, (RMBS), commer- residential mortgage-backed securities and collateralized cial mortgage-backed securities (CMBS) transaction, cred- loan obligations (CLO). In a securitization an originator, who it risk measurements differ between and an investor, brings securitized products to the market, The originator who purchases securitization exposures. risk is completely does not bear any credit risk, if such but is left with transferred in a securitization transaction, facilities or accept- some credit risk, if it undertook liquidity securitized prod- ed a subordinated portion in designing products ucts. The investor who purchased securitized products. naturally bears credit risk inherent in such of designing an investor, but also have a track record We are also in the securitized products as an originator. assets for business of appropriately managing underlying though we do not investors as a trustee in securitization, bear credit risk in doing so. 6. Other Related Matters 6. Other Related 462 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report ferent methodsfordomesticand overseasequityexposures. 2) Management MethodofEquityExposures ates istheriskofvaluestockshelddeclining. contrast, therisktobemeasuredforequitymethodaffili- credit riskandmarketdirectlybornebysubsidiaries.In is nottheriskofvaluestockshelddecliningbut assets heldbysubsidiaries.Thus,therisktobemeasured equities ofsubsidiariesbutbyfluctuationsprices financial statementisaffectednotbypricefluctuationsof dated financialstatement,capitalontheconsolidated with capitalaccountsofsuchsubsidiariesontheconsoli- scribed underBaselII. native indicatororbyinvokingthePD/LGDApproachpre- indirectly estimatingthevolatilityofanappropriatealter- with a1yearholdingperiodismeasuredbythemethodof tuations cannotbeobserveddirectly,theamountofrisk risks inthebankingaccount,suchasinterest-raterisk. 99% confidenceinterval,inthesamewayasothermarket mated holdingperiodofonemonth,andtheone-tailed market pricesasrisk,andmeasureequityVaRwithanesti- exposures withmarketprices,werecognizethevolatilityof sifying themintothoselistedandunlisted.Forequity price fluctuations. market andarethereforeexposedtotheriskof long-term businessrelations,listedstocksaremarkedto gain shortterminvestmentreturnsorpertainingto 1) Management PolicyofEquityExposures strengthen businessrelationswiththem. benefit tousandacquireequitiesinourclientshelp ticipation inorganizationsthatcanbeexpectedtobring part ofinvestmentoperations,andalsomakecapitalpar- (2) Equity ExposuresintheBankingAccount Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. As theriskcalculationapproach underBaselII,weapplydif- As stocksofconsolidatedsubsidiariesarecanceledout Regarding unlistedequities,forwhichmarketpricefluc- We measuretheriskofequityexposuresbybroadlyclas- While someoftheequitiesweholdareintendedto We purchaseequitiesthroughthebankingaccountas in theBankingAccount in theBankingAccount loans andhasgoodsecurity qualifications. lateral thatismostsuitable for theuseandcharacterof varying specificcircumstances ofobligors,weacceptcol- 1) Collateral new kindsofassets. striving tobuildupourcapabilitiesaccuratelyassess intend torespondthedemandsoftimes,andare dard method,suchas“intellectualpropertyrights.”We strain ofcollateral,whichisnotincludedinthepaststan- recent years,wehavewitnessedtheemergenceofanew for soundandreliableprotectionmanagement.In In ordertoensurethatvalidity,wesetinternalstandards gation techniquesare“valid”bothlegallyandpractically. quality ofloans. to coverthedeficiencyincreditworthinessorenhance also employthecreditriskmitigationtechniquesinorder nological capabilitiesaswelltheirfuturepotential,we prehensively bylookingattheirbusinessstatusandtech- risk mitigationtechniques.” These protectionmeasuresarecollectivelycalled“credit seeking toprotectloanswithcollateralandguarantees. by reducingthebalanceofoutstandingcreditbutalso (3) CreditRiskMitigationMeasures June 30,2014(thegrandfatheringrule). pending thecalculationofcreditrisk-weightedassetsas weights undertheStandardizedApproachareapplicable September 2004andheldcontinuouslysincethen,risk set separatelyforlistedandunlistedequities. risk assetsbymultiplyingthoseexposuresweights without creditratingsandoverseasequities,calculate Simplified Approachtoexposuresdomesticstocks Formula usingthecreditratingsassigned.Weapply and listedcompaniesarecalculatedwiththeRegulatory While collateralcannotbedetermined uniformlydueto What isnecessaryindoingsothatthecreditriskmiti- While wemeasurethecreditworthinessofclientscom- Controls ofcreditexposurescanbeachievednotsimply However, forequitiesacquiredbeforetheendof As fordomesticequities,equityexposurestoobligors Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 463 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Qualitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., Banking Trust and Sumitomo The Data: Disclosure II Qualitative Basel Guarantors tend to be parent companies of obligors, Guarantors tend to from the same We net loans owned against deposits and repur- When we conduct derivatives transactions Collateral is offered and received on a continuing basis CSA counterparties. * The value of additional collateral varies depending on individual agreements with * abilities and intentions of providing guarantees and give abilities and intentions substantive effectiveness of guarantees importance to the on written guarantee agreements. instead of simply relying on any particular guarantors. Since and we are not relying relations between obligors and there are usually close of diversification due to guarantees guarantors, the effect to any large extent. But we at least cannot be expected of guaranteed recognize equating the creditworthiness debt with the creditworthiness of guarantors. 3) Balancing-out of Japanese laws counterparty, in principle, on the basis bank transaction and only with clients who have concluded netting. agreements containing clauses for timely 4) Netting in principle, chase agreement transactions, we conclude, (ISDA master legally valid bilateral netting agreements When there emerge agreements, etc.) with counterparties. credit risk by reasons for early termination, we mitigate for the closeout net- invoking bilateral netting agreements and repurchase ting of multiple derivatives transactions with counterparties agreement transactions concluded concerned. We are also pushing for the conclusion of the Credit Support Annex (“CSA”) as associated agreements to ISDA master agreements in order to minimize credit risk in derivatives transactions. CSAs are bilateral agreements for credit enhancement, under which we and CSA counter- parties calculate the present value of a derivatives transac- tion and the party with revaluation loss provides the other party with unrealized gains via collateral with the value equivalent to the revaluation loss. between us and the CSA counterparty to make the revalu- ation gain/loss neutral. When the creditworthiness of one party deteriorates and is downgraded, however, the need arises to offer additional collateral* to account for the impact of the downgrade. tory requirements with settlement certainty tory requirements with notice with us principal and money trusts or beneficiary rights of income of such trusts with us istered and bearer form) ties investment trusts (bearer form) certain collater- ageability, easy to dispose of and with al quality terms of earn- properties with settlement certainty in ing capacity requirements Guarantees are classified into several types, including We investigate and assess collateral in a prudent man- We investigate and accept includes the following: Principal collateral we statu- bills before maturity that fully meet Commercial • deposits at Yen-denominated time deposits and • Beneficiary rights of principal of designated money in • of loan trusts with us (both reg- Beneficiary certificates • and corporate bonds, listed stocks and securi- Public • Land or land and buildings located in Japan for man- • • Ships with certain collateral quality having good-quality, well-managed Foundations • that meet certain Claims payable to specific persons • once a year, in The assessment of collateral is conducted specific debt guarantees covering only specific debts and revolving guarantees. In any event, we recognize guaran- tees that are consistent with our validity criteria for the effects of credit risk mitigation, including those with con- firmed guarantee capacity and guarantee intentions, and also recognize guaranteed transactions in the process of screening credit applications. While we broadly recognize the validity of guarantees not only with formal guarantee agreements but also under signed memorandums and commitments to guarantee depending on accompanying terms and conditions, we set requirements for documents and other materials used to confirm potential guarantors’ 2) Guarantees ner, bearing in mind the degree of difficulty in actual dis- ner, bearing in mind of collateral as well as legal posal and realization constraints. limitations and economic principle, for real estate and ships, while equities and other collateral with market value are assessed by current prices. 464 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 3. GuaranteeandCreditDerivatives 2. QualifyingAssetsCollateral 1. QualifyingFinancialAssetCollateral for thenotifiedrequirements: adequacy ratioasfollows,afterscrutinizingtheireligibility techniques applicabletothecalculationofourcapital possible, andsetthescopeofcreditriskmitigation make useofcreditriskmitigationtechniquesasmuch of creditrisk-weightedassets.Asdescribedabove,we be usedtomitigaterisk-weightedassetsinthecalculation requirements ofcreditriskmitigationtechniquesthatcan 5) CopingwithBaselII Basel IIQualitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. • We acceptguaranteesmainlyfrompublic-sector • Otherqualifyingassetcollateral(ships) • Qualifying realestateassetcollateral(landonlyor • Listed securities(Acceptablelistedareshares. • Legally validbilateralnettingagreementsandcredit • Netting ofloansagainstdeposits(limitedtojurisdic- The BaselIIframeworknarrowlydefinestypesand between theobligorandissuerofshares) collateral, wetakeintoconsiderationtherelationship When acceptingsharesasqualifyingfinancialassets it riskmitigationeffectsareensured. rating higherthanaprescribedlevel,etc.sothatcred- cient creditworthinessasrepresentedbyacredit tors andprotectionprovidersareentitieswithsuffi- institutions (protectionproviders).Qualifyingguaran- and purchasecreditderivativesmainlyfromfinancial organizations andbusinessenterprises(guarantors) land andaccompanyingbuildings,foundation) tions andrepurchaseagreementtransactions enhancement byCSA,regardingderivativestransac- ancing-out agreementsinplace),depositsascollateral and alsobasedonjudicialprecedents,etc.,withbal- tions wherenettingisauthorizedinastablemanner age creditlinesinanappropriatemanner. balance sheettransactionsonamonthlybasis,andman- credit limitsintegrallyforbothon-balancesheetandoff- Regarding thesemarkettrades,themiddleofficecontrols lents regardingtransactionswithlongsettlementperiods. apply thesamemethodtocalculationofcreditequiva- method inprincipleforderivativestransactions.Wealso culate creditequivalentsbyapplyingthecurrentexposure in contractedmarkettradesascreditequivalents,wecal- lines forrespectivecounterparties. range, wearemanagingsuchrisksbyestablishingcredit ket tradeswithspecificcounterpartieswithinacertain order tocontaincreditrisksassociatedwithrepetitivemar- management inaccordancewithtypesoftransactions.In arises, makingitnecessarytoconductappropriaterisk tions ascounterparties,creditriskwellmarket Approach toManageCreditRiskinMarketTrading (4) CreditRiskinMarketTrading 6) Regarding theconcentrationofcreditandmarketrisks While inprinciplewetreatprincipalornotional When conductingmarkettradingwithfinancialinstitu- • The totalnotionalprincipalamountofcreditderiva- • Guarantors tendtobetheparentcompanies ofoblig- • Guarantees andcreditderivativesaredeemedto niques resulting fromtheuseofcreditriskmitigationtech- the creditlimitsforprotectionprovider. We managethenotionalprincipalamountaspartof isnotsignificantascreditrisk. tives purchasedbySTB guarantee isprovidedbytheparentornot. which theobligorbelongsregardlessofwhethera through totalmanagementoftheentiregroupto obligor, wemonitorandcontrolconcentrationrisk tors. Inourcontrolsofthecreditlimitsregardingan ors, andwearenotrelyingonanyparticularguaran- involve concentrationrisk. h uiooTutadBnigC. Ltd. Co., Banking and Trust Sumitomo The iaca Summary/ Financial
Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. (“STB”) Consolidated Capital Adequacy Ratio 466 Scope of Consolidation 468 Capital Adequacy 469
Credit Risk 470 Ltd. Co., Banking and Trust Sumitomo The Credit Risk Mitigation Techniques 477 Counterparty Risk in Derivative and Long-term Settlement Transactions 478 Securitization Exposures 479 Data/ Financial Market Risk 485 Capital Subscriptions or Equity Exposures in the Banking Account 486 Exposures Held in Funds as Credit Risk-Weighted Assets 487 Gains/Losses and Changes in Economic Value Due to Interest Rate Shocks under the Internal Control Management Used by the STB Group Regarding Interest Rate Risk in the Banking Account 487 Non-consolidated
Capital Adequacy Ratio 488 Ltd. Co., Banking and Trust Sumitomo The
Capital Adequacy 490 Data/ Disclosure Qualitative II Basel Credit Risk 491 Credit Risk Mitigation Techniques 498 Counterparty Risk in Derivative and Long-term Settlement Transactions 499 Securitization Exposures 500 Market Risk 506 Capital Subscriptions or Equity Exposures in the Banking Account 507 Exposures Held in Funds as Credit Risk-Weighted Assets 508 Gains/Losses and Changes in Economic Value Due to Interest Rate Shocks under the Internal Control Management Used by STB Regarding Interest Rate Risk in the Banking Account 508 h uiooTutadBnigC. Ltd. Co., Banking and Trust Sumitomo The ae IQatttv icoueData/ Disclosure Quantitative II Basel
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 465 466 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. risk-weighted assetsandtheStandardizedApproachforcalculationofoperationalrisk,alsointroducedmarketriskreg priate inlightofassetsheld(theFinancialServicesAgency2006NotificationNo.19,hereinafterreferredtoasthe“Notifica Banking Actandonthebasisofcalculationformulaprescribedundercriteriaforjudgingwhetherabank’scapitaladequacy Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report *1. As ofMarch31,2011,theamountnoncumulative perpetualpreferredshareswhichareincludedinTierIwas¥109,000mill Constituents ofCapital(ConsolidatedBISAdequacyRatio) The SumitomoTrust andBankingCo.,Ltd. Basel IIQuantitativeDisclosureData: *7. We received anexternalauditbyKPMGAZSALLCof thecalculationofconsolidatedBIScapital adequacyratioinlinewi *6. Listed intheNotification,Article8,Paragraph1,1through6,andincludeamounts equivalenttointentionalholdings *5. Listed intheNotification,Article6,Paragraph1,5and6.However, subordinatedtermdebtsarelimitedtothosewithan *4. Debt capitallistedintheNotification,Article6,Paragraph 1,4thathaveallofthecharacteristicslistedbelow: *3. Listed intheNotification, Article5,Paragraph2,i.e.stocksandothersecuritieswithhighprobabilityofredemptions t *2. AsofMarch31,2011,deferredtaxassetstotaled¥100,147millioninnetterms.Theupper limitontheinclusionofdefer Capital AdequacyRatio As ofMarch31 Ratio ofNoncumulativePreferredSecuritieswithStep-upInterestRateClausesto TierICapital=a/Ax100(%) Tier ICapitalRatio=A/Mx100(%) BIS CapitalAdequacyRatio=E/Mx100(%) Risk-Weighted Assets Total QualifyingCapital Items forDeduction Tier III Tier II Tier I equivalent toinvestmentsinthoseprovidedfor undertheNotification,Article8,Paragraph1,2. (including noncumulativepreferredsecuritiesissued byoverseasspecialpurposecompanies). Preferred Shares”indicatestheamountwhichhasbeenincludedincapitalstock. itself orpartsoftheinternal controlwhichconcerntheratio.AsofJuly 1,2010,KPMGAZSA&Co.hasbecome AZSALLCa under agreed-uponexamination proceduresandisareportoftheresults. Itthusdoesnotrepresentanopinionby theexternal audit oftheconsolidated financialstatementsbutwasconductedas part oftheinternalriskmanagementframework concerningt Adequacy RatioAudits’ (Pronouncement30oftheJapaneseInstitute of CertifiedPublicAccountants,BankAuditing Committee,Ma Applying uniform international standards, we have adopted the Foundation Internal Ratings-Based (IRB) Approach for the calculat the Applying uniforminternationalstandards,wehaveadoptedtheFoundationInternalRatings-Based(IRB)Approachfor We calculatetheBIScapitaladequacyratioonbothaconsolidatedandnon-consolidatedbasisinlinewithprovisionsofArticl Total ((F)+(G)(I)(K)+(L))(M) Operational RiskEquivalentsAdjustments(L) Credit Risk-WeightedAssetsAdjustments(K) (Reference) OperationalRiskEquivalents(J) Amount ofOperationalRiskEquivalents((J)/8%)(I) (Reference) MarketRiskEquivalents(H) Amount ofMarketRiskEquivalents((H)/8%)(G) Amount ofCreditRisk-WeightedAssets(F) Off-balance SheetTransactionItems Asset (On-balanceSheet)Items ((A) +(B)(C)-(D))(E) Items forDeduction* Included inCapital(C) Subordinated Short-termDebt Included inCapital(B) Total Debt Capital Excess ofQualifyingAllowanceoverExpectedLoss General AllowanceforLoanLosses 45% ofRevaluationReserveforLand 45% ofNetUnrealizedGainonAvailable-for-SaleSecurities Total (A) Deducted AmountsofDeferredTaxAssets(Deduction)* Total TierIbeforeDeductionofDeferredTaxAssets(AggregateSumItemsAbove) Equivalent to50%oftheExcessExpectedLossoverQualifyingAllowance(Deduction) Equivalent totheIncreaseinCapitalAssociatedwithSecuritizationTransactions(Deduction) Equivalent toIntangibleFixedAssetsRecordedthroughBusinessCombination(Deduction) Goodwill Equivalents(Deduction) Business RightsEquivalents(Deduction) Minority Interests Share Warrants Foreign CurrencyTranslationAdjustments Net UnrealizedLossonAvailable-for-SaleSecurities(Deduction) Expected DistributedAmount(Deduction) Deposit forSubscriptionstoTreasuryStock Treasury Stock(Deduction) Retained Earnings Capital Surplus Deposit forSubscriptionstoShares Capital Stock (4) Allowedtodeferinterestpaymentobligations (3) Usedforcompensationoflosswhilecontinuing business (2) Notredeemable,exceptforcertaincases (1) Paid-updebtsunsecuredandsubordinateto otherdebts Subordinated TermDebtandFixed-termPreferredShares* Perpetual SubordinatedDebt* Noncumulative PreferredSecuritiesAttachedwithStep-upInterestRateClause* Noncumulative PreferredSecuritiesIssuedbyOverseasSpecialPurposeCompanies Noncumulative PerpetualPreferredShares* 6 (D) 4 1 2 5 3 (a) red taxassetsincapitalwas¥266,786million. original maturityofoverfiveyears. hrough suchmeasuresasattachmentofstep-up interestrateclauses ofotherfinancialinstitutions’capitalfunding means andtheamounts ion. Thecolumnfor“CapitalStock—NoncumulativePerpetual s aresultofchangein itsformofbusinessregistration. th ‘AgreedUponMethods fortheImplementationofCapital auditor regardingtheconsolidated BIScapitaladequacyratio he calculationoftheconsolidated BIScapitaladequacyratio rch 29,2011).Theexternal auditisnotpartoftheaccounting 12,028,039 ¥ 342,037 ¥ 11,146,399 2011 1,290,402 9,855,997 1,880,889 1,333,931 1,333,931 742,313 139,326 646,651 646,651 442,928 185,307 628,236 156,000 123,258 280,000 303,582 565,906 297,051 (12,873) 59,385 11,146 99,692 14,647 13,037 15,701 54,500 Millions ofYen 3,319 5,686 3,604 11.69 11.09 15.63 448 482 — — — — — — — — — — — Consolidated tion”). 342,037 ¥ 12,831,367 ¥ ulations. 11,963,692 10,638,037 2010 1,266,342 1,266,342 1,325,654 1,777,360 156,000 606,622 606,622 409,907 186,915 596,823 133,092 280,000 301,361 505,443 297,052 770,806 ratioisappro- 22,141 96,869 95,604 10,678 54,500 61,664 (9,922) 9,294 2,915 12.31 13.85 7,749 e 14-2ofthe 9.86 ion ofcredit 505 335 465 — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 467 ¥70 billion Fixed Rate
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 469 — — — — 157 586 536 5,536 2,213 1,469 18,508 21,547 39,791 92,909 29,591 10,012 26,037 59,147 14,076 37,833 18,687 27,548 27,548 2010 2010 2010 2010 865,805 699,474 ¥ 7,749 ¥ 79,847 ¥ 48,749 ¥ 122,501 Consolidated — — — — Millions of Yen Millions of Yen Millions of Yen Millions of Yen 149 620 498 8,364 2,782 2,012 18,975 17,401 36,171 92,210 28,763 12,362 27,707 53,690 13,308 35,802 20,857 28,559 28,559 2011 2011 2011 2011 800,013 635,784 ¥ 11,146 ¥ 72,549 ¥ 37,459 ¥ 120,973 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel Interest Rate Risk Equity Position Risk Foreign Exchange Risk Commodities Risk Options Transactions and exposures held in funds) and exposures held Amounts of Required Capital by Category under the Standardized Approach Internal Models Approach Purchased Receivables Other Assets is Applied Exposures to which the Standardized Approach Exposures to which the IRB Approach is Applied Corporate Exposures Sovereign Exposures Bank Exposures Residential Mortgage Exposures Qualifying Revolving Retail Exposures Other Retail Exposures Exposures to Business Units Set for Phased Roll-out Application Exposures to Business Units Set for Phased Exposures Excluded from Application Internal Models Method of the Market-based Approach Transitional Measures PD/LGD Approach Simple Risk Weight Method of the Market-based Approach Market Risk Securitization Exposures Portfolios to which the IRB Approach is Applied and the Breakdown by Portfolio Portfolios to which the IRB Approach is Applied Portfolios to which the Standardized Approach is Applied Portfolios to which the Standardized Approach As of March 31 As of March 31 Equity Exposures As of March 31 As of March 31 (4) Amounts of required capital against market risk (3) Amounts of required capital against credit risk concerning exposures held in funds (3) Amounts of required capital against credit risk concerning exposures held (2) Amounts of required capital against credit risk concerning equity exposures to which the IRB Approach is applied Amounts of required capital against credit risk concerning (2) (1) Amounts of required capital against credit risk (excluding equity exposures to which the IRB Approach is applied equity exposures to which the IRB capital against credit risk (excluding Amounts of required (1) Amounts of Required Capital Amounts of Required Capital Adequacy 470 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1. Exposuressubjecttothecalculationofcreditrisk-weightedassetsexcludingthose subjecttofunds,securitization, Notes: Balance ofExposuresRelatedtoCreditRiskandBreakdownbyIndustrySector Credit Risk (5) Amountsofrequiredcapitalagainstoperationalrisk Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. (6) Totalrequiredcapital As ofMarch31 Average BalanceduringthePeriod Total forAllDurations Five YearsorLonger Over OneYeartoLessthanFiveYears One YearorShorter Total forIndustrySectors Others Individuals Local PublicBodies Goods RentalandLeasing Real Estate Finance andInsurance Wholesale andRetailTrade Transport andPostalActivities Information andCommunication Electricity, Gas,HeatSupplyandWater Construction Mining andQuarryingofStonesGravel Fisheries Agriculture andForestry Manufacturing Total forRegions Outside Japan Japan As ofMarch31 As ofMarch31 Standardized Approach Total RequiredCapital 4. The abovedatarepresents amountsaftercreditriskmitigation effectsofnettingcontractsallowedunder thelawandne 3. “AverageBalanceduring thePeriod”isaveragefigureof thoseasofMarch31,2010;September30, 2010;andMarch31,2 2. “Others”intheindustry sectorsincludenon-residentsandstate publicservices.Exposuresfortheduration ofoverfiveye 5. Theabovedatarepresents exposurestooriginaldebtorsinloan participations. with STB. 20,312,946 ¥ 18,081,152 ¥ 20,180,463 ¥ 20,312,946 ¥ 20,312,946 ¥ 2,770,409 2,231,794 2,181,879 1,910,339 1,456,606 8,077,153 7,142,842 5,092,950 7,176,500 2,336,528 901,473 242,940 415,542 169,703 136,849 587,691 15,317 7,340 3,824 Exposures otherthan Loans, Commitments Off-balance Sheet 15,243,745 ¥ 14,609,123 ¥ 15,308,382 ¥ 15,243,745 ¥ 15,243,745 ¥ Derivatives and Other 2,395,512 1,963,768 1,538,065 1,330,398 5,233,449 5,665,185 4,345,111 3,415,790 2,336,528 Credit RiskExposures 634,622 793,526 237,055 379,173 133,236 116,330 579,632 15,263 7,232 2,230 Millions ofYen 3,945,020 ¥ 4,125,305 ¥ 4,125,305 ¥ 3,208,919 ¥ 4,125,305 ¥ Securities 2,362,312 1,066,369 3,078,159 other assetsandthoseexcludedfromthe application. 2011 346,681 916,385 696,623 208,927 182,569 119,476 86,324 34,683 35,151 20,519 4,424 1,564 6,791 ars includethosewith nofixedmaturities. 32 — — tting againsttheobligor’s cashondeposit 011. 927,060 ¥ 943,895 ¥ 943,895 ¥ 962,243 ¥ 59,385 ¥ 943,895 ¥ 263,109 ¥ Derivatives Over-The- Counter 481,391 411,287 682,550 189,704 680,786 2011 2011 51,216 28,215 21,622 1,267 9,183 6,731 1,460 1,685 1,315 Millions ofYen Millions ofYen 53 75 28 — — Consolidated Exposures Three Longer Overdue or Exposuresin 1,026,509 ¥ 61,664 ¥ 198,629 ¥ 189,117 ¥ 198,629 ¥ Months or Default 2010 2010 36,370 18,568 12,154 18,244 86,020 15,599 9,511 4,865 6,481 256 68 — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 471 — — — — — 497 7,047 12,477 10,578 14,495 22,822 14,771 90,304 33,612 11,025 33,781 ¥ 761 Default Change Months or ¥ 226,459 ¥ 238,936 ¥ 238,936 or Exposures in Longer Overdue Exposures Three — — 29 86 104 534 2,154 1,380 1,427 7,130 30,503 11,793 47,736 15,355 2010 636,905 651,236 169,235 343,281 485,623 Balance Counter ¥ 70,823 Over-The- ¥ 876,640 ¥ 225,404 ¥ 876,640 ¥ 876,640 ¥ 882,362 Derivatives Millions of Yen 010. een partially modified from the year ended tting against the company’s cash balance. ars include those with no fixed maturities. ets and those excluded from the application. — — 24 4,652 7,151 1,398 37,408 40,118 85,172 11,829 106,945 113,268 160,545 633,663 928,779 360,297 2010 2011 Balance 2,475,447 1,272,488 1,498,108 Securities ¥ 71,584 ¥ 3,404,260 ¥ 3,404,260 ¥ 3,482,968 ¥ 2,475,481 ¥ 3,404,260 Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 2,061 5,857 14,771 154,648 183,055 270,464 819,186 702,093 102,248 557,009 Credit Risk Exposures 2,505,472 1,318,387 1,773,815 2,101,850 2,146,538 3,405,851 4,107,348 5,976,231 5,422,723 and Other Derivatives ¥ 14,949,293 ¥ 15,506,303 ¥ 15,506,303 ¥ 15,506,303 ¥ 15,487,384 Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel Off-balance Sheet Loans, Commitments Exposures other than 3,489 5,968 14,876 193,437 224,601 275,651 919,714 711,398 114,078 2,137,025 2,896,273 1,432,463 2,056,319 2,274,190 2,146,538 6,518,204 4,788,748 7,592,001 7,406,454 ¥ 17,650,179 ¥ 19,787,204 ¥ 19,787,204 ¥ 19,787,204 ¥ 19,852,714 Exposures subject to the calculation of credit risk-weighted assets excluding those subject to funds, securitization, other ass Exposures subject to the calculation of credit risk-weighted assets excluding those subject to funds, securitization, March 31, 2010. 2. “Others” in the industry sectors include non-residents and state public services. Exposures for the duration of over five ye 2. “Others” in the industry sectors include non-residents and state public services. Exposures for the duration and March 31, 2 3. “Average Balance during the Period” is the average figure of those as of March 31, 2009; September 30, 2009; law and the ne 4. The above data represents amounts after credit risk mitigation effects of netting contracts allowed under the 5. The above data represents exposures to original debtors in loan participations. presentation of industry sectors has b Pursuant to the revision of Japan Standard Industrial Classification (November 2007), 6. As of March 31 General Allowance for Loan Losses Five Years or Longer Total for All Durations Average Balance during the Period One Year or Shorter Over One Year to Less than Five Years Individuals Others Total for Industry Sectors Real Estate Goods Rental and Leasing Local Public Bodies Transport and Postal Activities Wholesale and Retail Trade Finance and Insurance Mining and Quarrying of Stones and Gravel Mining and Quarrying of Stones and Gravel Construction Electricity, Gas, Heat Supply and Water Information and Communication Manufacturing Agriculture and Forestry Fisheries Outside Japan Total for Regions As of March 31 Japan Balance and Changes of General Allowance for Loan Losses, Specific Allowance for Loan Losses, and Allowance for Balance and Changes of General Allowance for Loan Losses, Specific Allowance Loan Losses from Borrowers in Specified Foreign Countries Notes: 1. (1) General allowance for loan losses 472 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Amounts ofWritten-offLoansbyIndustrySector (3) Allowanceforloanlossesfromborrowersinspecifiedforeigncountries(breakdownbyindustrysector) (2) Specificallowanceforloanlosses(breakdownbyregion,industrysector) Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. As ofMarch31 As ofMarch31 Total forIndustrySectors Others Individuals Local PublicBodies Goods RentalandLeasing Real Estate Finance andInsurance Wholesale andRetailTrade Transport andPostalActivities Information andCommunication Electricity, Gas,HeatSupplyandWater Construction Mining andQuarryingofStonesGravel Fisheries Agriculture andForestry Manufacturing Total forIndustrySectors Others Individuals Local PublicBodies Goods RentalandLeasing Real Estate Finance andInsurance Wholesale andRetailTrade Transport andPostalActivities Information andCommunication Electricity, Gas,HeatSupplyandWater Construction Mining andQuarryingofStonesGravel Fisheries Agriculture andForestry Manufacturing Total forRegions Outside Japan Japan Not applicableasoftheendMarch2011and2010. 41,188 ¥ 34,889 ¥ 41,188 ¥ Balance 13,284 14,661 2011 3,444 1,254 6,587 6,299 167 143 695 710 208 17 — 6 1 5 Millions ofYen 16,604 ¥ 14,917 ¥ 54,775 ¥ 47,415 ¥ 54,775 ¥ Balance 15,320 12,493 15,548 2011 2010 1,127 2,290 1,638 3,807 7,359 2,751 (699) 387 421 425 223 589 Millions ofYen 77 11 17 — 11 — (1) 1 7 0 7 0 3 0 0 (13,586) ¥ (13,586) ¥ (12,526) ¥ Changes 446 ¥ 6,332 ¥ (11,798) 2010 2,386 1,946 1,014 (1,059) (2,264) (1,035) (1,430) 2,779 270 155 (659) (219) (278) 693 698 23 52 23 — (59) (10) — 1 2 0 1 6 (1) 0 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 473 — — — — — — — — 853 7,159 12,978 53,934 62,135 19,254 34,223 49,051 13,200 35,328 47,322 74,377 99,479 21,947 47,064 21,514 65,160 60,798 244,779 129,048 115,730 775,507 339,927 213,969 186,282 228,339 2010 ¥ 148,327 ¥ 1,248,626 ¥ 1,003,847 ¥ 69,012 Subject to Rating 2010 — — — — — Millions of Yen 5,004 1,208 4,252 4,756 1,223 3,239 88,785 16,693 30,688 28,695 57,855 63,889 44,477 13,200 45,054 21,030 35,528 65,888 275,925 330,096 181,130 117,240 793,987 319,240 233,069 192,369 300,255 124,952 103,435 2011 1,414,460 ¥ 2,129,201 ¥ 1,275,372 ¥ 1,094,242 ¥ 56,559 0 — — — Millions of Yen 7,653 63,199 50,248 ¥ 121,102 Subject to Rating 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — 3,329 4,166 88,509 321,149 260,252 1,426,662 ¥ 2,104,069 Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel 0% 35% 50% 10% 20% 100% 150% Satisfactory 115% Weak 250% Default 0% Listed Stocks Unlisted Stocks 300% 400% Satisfactory 115% Weak 250% Default 0% Strong 50% Good 70% Satisfactory 140% Weak 250% Default 0% Strong 70% Good 90% Satisfactory 140% Weak 250% Default 0% Strong 70% Good 95% Strong 95% Good 120% Maturities of Less than 2.5 Years Maturities of 2.5 Years or Longer Maturities of Less than 2.5 Years Maturities of 2.5 Years or Longer Other Exposures High-Volatility Commercial Real Estate Exposures High-Volatility Commercial Real Estate Exposures the Notification, Article 8, Paragraph 1, 3 and 6 the Notification, Article 8, Paragraph 1, 3 Allowing for the Credit Risk Mitigation Effect by Risk-Weight Category Risk Mitigation Effect by Risk-Weight Category Allowing for the Credit Balance of Exposures to which the Standardized Approach is Applied after which the Standardized Approach is Applied Balance of Exposures to Equity Exposures to which the Simple Risk-Weight Method of the Market-based Approach is Applied Equity Exposures to which the Simple Risk-Weight Method of the Market-based Approach Specialized Lending under the Slotting Criteria Specialized Lending under the Slotting Criteria As of March 31 Amounts Deducted from Capital under As of March 31 Exposures to which the IRB Approach is Applied by Risk-Weight Category Exposures to which the IRB Approach Balance of Exposures to which the Standardized Approach is Applied by Risk-Weight Category to which the Standardized Approach Balance of Exposures 474 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Note: Specializedlending andpurchasedreceivablesareexcluded. Note: Specializedlendingandpurchasedreceivablesareexcluded. (2) Weighted averageofProbabilityDefault (PD),weightedaverageofLossGivenDefault(LGD), Portfolios towhichtheIRBApproachisApplied Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Specializedlendingandpurchasedreceivablesareexcluded. Note: Specializedlendingandpurchasedreceivablesareexcluded. Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. (1) Weighted averageofProbabilityDefault(PD),weightedLossGiven Default(LGD),weightedaverage Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 As ofMarch31 Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 As ofMarch31 As ofMarch31 As ofMarch31 Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 ance sheetassetitems(Off_EAD),byobligorcategoryforcorporateexposures of Risk-Weights(RW),ExposureAtDefault(EAD)On-balancesheetassetitems(On_EAD),andEADOff-bal- ance sheetassetitems(Off_EAD),byobligorcategoryforsovereignexposures of Risk-Weights(RW),ExposureAtDefault(EAD)On-balancesheetassetitems(On_EAD),andEADOff-bal- 100.00% 100.00% 13.14% 12.79% 0.67% 0.07% 0.01% 9.68% 1.82% 0.01% 2.85% 3.43% 0.01% 9.68% 1.16% 0.01% 0.73% 0.07% PD PD PD PD — — 44.89% 41.77% 44.15% 44.72% 45.44% 44.99% 45.00% 45.00% 44.99% 44.97% 43.62% 45.00% 44.97% 44.89% 43.07% 42.71% 44.78% 45.60% LGD LGD LGD LGD — — Millions ofYen Millions ofYen Millions ofYen Millions ofYen 183.78% 132.96% 194.89% 187.38% 178.14% 112.13% 66.35% 24.63% 54.73% 59.24% 67.54% 25.09% 2011 2011 2010 2010 4.31% 3.88% WOn_EAD RW On_EAD RW WOn_EAD RW WOn_EAD RW 4.10% 3.49% — — — — 3,500,304 ¥ 2,617,655 ¥ 3,511,840 ¥ 7,638,257 ¥ 7,709,302 ¥ 2,327,923 ¥ 2,980,072 ¥ 2,964,372 ¥ 4,566,808 4,689,260 176,428 277,364 202,408 489,709 11,225 15,380 319 310 — — 21,133 ¥ 21,133 ¥ 1,362,370 ¥ 534,134 ¥ 1,477,947 ¥ 633,173 ¥ 23,687 ¥ 22,799 ¥ Off_EAD Off_EAD Off_EAD Off_EAD 801,998 803,074 24,495 38,659 3,039 1,742 887 — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 475 — — 352 624 312 290 147 697 88,766 76,768 80,425 80,718 Balance Balance Off_EAD Off_EAD ¥ 685,049 ¥ 774,106 ¥ 99,456 ¥ 177,070 ¥ 99,064 ¥ 180,466 ¥ 844,933 ¥ 925,964 2 — — — — 314 46,034 66,264 2010 2011 105.62% 148.84% 460.54% 124.24% 105.57% 149.18% 473.69% 125.36% ¥ 730,107 ¥ 776,144 ¥ 650,650 ¥ 584,070 Millions of Yen Millions of Yen — — PD RW PD RW 0.08% 0.29% 9.36% 0.57% RW On_EAD RW On_EAD 0.54% 0.08% 0.28% 2010 2011 17.19% 55.43% 20.55% 12.65% 17.92% 55.29% 21.50% 180.76% 100.00% 100.00% 255.78% Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — LGD LGD 46.56% 44.52% 45.00% 46.39% 45.93% 45.89% 45.00% 45.92% Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel — — PD PD 0.05% 0.40% 7.64% 0.08% 0.05% 0.40% 7.64% 0.08% of Risk-Weights (RW), Exposure At Default (EAD) of On-balance sheet asset items (On_EAD), and EAD of Off-bal- sheet asset items (On_EAD), Exposure At Default (EAD) of On-balance of Risk-Weights (RW), bank exposures (Off_EAD), by obligor category for ance sheet asset items category for equity exposures to which the PD/LGD Approach is applied category for equity exposures to which Ratings 8- – 10 Total Ratings 1 – 4 Ratings 5 – 6 Ratings 7 – 8 Total Ratings 5 – 6 Ratings 7 – 8 Ratings 8- – 10 Ratings 1 – 4 Ratings 8- – 10 Total Ratings 1 – 4 Ratings 5 – 6 Ratings 7 – 8 As of March 31 Ratings 8- – 10 Total Ratings 1 – 4 Ratings 5 – 6 Ratings 7 – 8 As of March 31 As of March 31 As of March 31 (3) Weighted average of Probability of Default (PD), weighted average of Loss Given Default (LGD), weighted average (PD), weighted average of Loss Given average of Probability of Default Weighted (3) (4) Weighted average of Probability of Default (PD), weighted average of Risk-Weights (RW) and balance, by obligor average of Probability of Default (PD), weighted average of Risk-Weights Weighted (4) Note: Specialized lending and purchased receivables are excluded. Note: Specialized lending and purchased receivables are Note: Specialized lending and purchased receivables are excluded. Note: Specialized lending and purchased receivables are 476 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1.LGDestimatesincludeELdefaultamounts forexposuresindefault. Notes: 1.LGDestimatesincludeELdefaultamountsforexposuresindefault. Notes: (5) Weighted averageofProbabilityDefault(PD),weightedLossGiven Default(LGD),weightedaverage Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. As ofMarch31 As ofMarch31 Total Other Retail(commercial) Other Retail(consumer) Qualifying RevolvingRetail Residential Mortgage Total Other Retail(commercial) Other Retail(consumer) Qualifying RevolvingRetail Residential Mortgage Default Overdue Current Default Overdue Current Default Overdue Current Default Overdue Current Default Overdue Current Default Overdue Current Default Overdue Current Default Overdue Current applied toundrawncommitment,byexposurepoolforretailexposures sheet assetitems(Off-EAD),undrawncommitment,andweightedaverageofCreditConversionFactor(CCF) of Risk-Weights(RW),ExposureAtDefault(EAD)On-balancesheetassetitems(On-EAD),EADOff-balance 2. “Overdue”denotes creditslessthanthreemonthsoverdue. 2. “Overdue”denotescreditslessthanthreemonthsoverdue. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 26.87% 37.58% 15.54% 27.59% 37.46% 0.32% 1.21% 1.52% 1.14% 9.12% 0.71% 1.18% 0.38% 1.25% 1.46% 0.36% PD PD — — — — 100.00% 100.00% 46.44% 54.60% 42.62% 43.53% 49.80% 46.96% 46.96% 48.60% 53.30% 51.05% 53.29% 49.96% 54.39% 54.39% 47.47% 53.59% 53.17% 46.34% 53.65% 53.03% LGD LGD — — — — 337.63% 149.34% 115.27% 141.99% 323.23% 23.84% 55.67% 55.57% 27.93% 81.26% 43.11% 33.97% 34.89% 59.15% 53.88% 31.01% RW RW — — — — — — — — — — Millions ofYen Millions ofYen 2,330,606 ¥ 2,067,309 ¥ 2,119,745 ¥ 1,845,394 ¥ On_EAD On_EAD 2011 130,747 2010 126,958 117,674 99,606 10,237 11,577 2,231 2,848 1,561 6,086 8,085 7,921 1,880 1,700 1,115 1,026 5,403 982 — — — — 93,990 ¥ 75,611 ¥ 110,105 ¥ 92,026 ¥ Off_EAD Off_EAD 5,450 8,221 2,963 6,704 6,528 3,219 328 318 669 198 382 160 748 311 39 72 — — 52 87 — — Commitment Commitment ¥159,402 211 ¥ 349 ¥ ¥162,556 Undrawn Undrawn 99,775 58,909 97,677 63,751 351 152 275 201 254 — — — — — — 49 — — — — — — CCF CCF 75% 71% 75% 54% 69% 70% 75% 25% 24% 75% 7% 5% 6% 5% — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 477 9 — — 84 (30) (17) — — — — — — — (113) 1,527 ¥— Losses Losses ¥ 10,978 ¥ 16,471 Change in Actual Credit Actual Credit Consolidated — — — — Millions of Yen 373 596 543 (12) (75) (500) 1,200 12,473 Losses 302,933 163,416 138,316 ¥(38,246) ¥ 152,815 ¥— rch 31, 2011. Guarantees Credit Derivatives Write-backs Estimated Credit 2010 2011 hrough March 31, 2011. Estimated credit loss- — — — — Millions of Yen — (12) (75) 4,374 1,640 Losses 269,803 265,429 ¥ (5,492) ¥— Actual Credit IRB Collateral Other Eligible Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — 90 — — (30) (456) 193,189 929,710 1,122,989 Collateral ¥ (11,440) Write-backs ¥ 24,546 Eligible Financial Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel 2011 9 — (30) 1,527 Losses ¥ 10,978 Actual Credit es for retail exposures are the average of estimates calculated as of March 31 and September 30, from March 31, 2008 through Ma es for retail exposures are the average of estimates calculated as of March 31 and September 30, from March 31, 2. Actual credit losses are the sum of losses for one year ended March 31, 2011. Bank Exposures Residential Mortgage Exposures Qualifying Revolving Retail Exposures Other Retail Exposures Corporate Exposures Sovereign Exposures Losses in fiscal year 2010 increased by ¥16.4 billion year on year. Losses in fiscal year 2010 increased by of some large debtors in borrower classification and the posting of allowance This was mainly due to the downgrade Portfolios to which the Standardized Approach is Applied Portfolios to which the IRB Approach is Applied Bank Exposures Equity Exposures under the PD/LGD Approach Retail Exposures Corporate Exposures Sovereign Exposures Equity Exposures under the PD/LGD Approach Equity Exposures under Retail Exposures Corporate Exposures Corporate Exposures Sovereign Exposures Bank Exposures As of March 31 Years Ended March 31 Amounts of Exposures to which Credit Risk Mitigation Techniques are Applied Amounts of Exposures to which Credit Risk Mitigation Techniques are Applied Actual Credit Losses in the Current Period and Year-on-Year Change for Portfolios to which the IRB Approach is Applied and Year-on-Year Change for Portfolios Losses in the Current Period Actual Credit Credit Risk Mitigation Techniques Credit Notes: March 31, 2007 t Estimated credit losses are the average of estimates calculated as of March 31 and September 30, from 1. Estimated Credit Losses for Portfolios to which the IRB Approach is Applied Estimated Credit Losses for Portfolios for loan losses for the effects of the Great East Japan Earthquake, and, on the other hand, due to the reversal of Great East Japan Earthquake, and, on the other hand, due to the reversal for loan losses for the effects of the been debtor upgrades and a decline in the loan balance of debtors which had allowance for loan losses resulted from or below. classified as special mention category Factor Analysis Note: Of total credit costs, only those that can be identified as stemming from specified asset classes are shown in the table. Note: Of total credit costs, only those that can be identified 478 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. (2) Long-termsettlementtransactions Note: Creditequivalents arecalculatedwiththecurrentexposure approach. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Note: Creditequivalentsarecalculatedwiththecurrentexposureapproach. (1) Derivativetransactions SettlementTransactionsCounterparty RiskinDerivativeandLong-term Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. As ofMarch31 Credit Equivalents AfterEffectofMitigationbyCollateral undertheCreditRisk Mitigation Technique Amounts ofCollateral Credit EquivalentsBeforeEffect ofMitigationbyCollateralundertheCreditRiskTechnique Aggregate SumofAmountsGross ReconstructionCosts(limitedonlytothosenotbelowzero) As ofMarch31 As ofMarch31 Notional PrincipalAmountsofCreditDerivativesUsedtoAllowforthe EffectofCreditRiskMitigationTechnique Notional PrincipalAmountsofCreditDerivativesSubjecttotheCalculationEquivalents Credit EquivalentsAfterEffectofMitigationbyCollateralundertheRiskTechnique Amounts ofCollateral Credit EquivalentsBeforeEffectofMitigationbyCollateralundertheRiskTechnique Aggregate SumofAmountsGrossReconstructionCosts(limitedonlytothosenotbelowzero) Portfolios towhichtheIRBApproachisApplied Portfolios towhichtheStandardizedApproachisApplied Providing ProtectionbySecond-to-DefaultCreditDerivatives Providing ProtectionbyFirst-to-DefaultCreditDerivatives Providing ProtectionbyTotalReturnSwaps Providing ProtectionbyCreditDefaultSwaps Purchase ofProtectionbySecond-to-DefaultCreditDerivatives Purchase ofProtectionbyFirst-to-DefaultCreditDerivatives Purchase ofProtectionbyTotalReturnSwaps Purchase ofProtectionbyCreditDefaultSwaps Securities Deposits Effect ofMitigatingCreditEquivalentsDuetoClose-outNettingContracts(Deduction) Credit Derivatives Other CommoditiesRelated Precious Metals(ExcludingGold)Related Equity Related Gold Related Interest RateRelated Foreign ExchangeRelated Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Bank Exposures Sovereign Exposures Corporate Exposures Eligible Financial 8,189 ¥ Collateral 1,006,041 845,391 134,761 25,889 — — — Other Eligible IRB Collateral ¥— 283,477 291,433 7,956 Millions ofYen — — — — 2010 ¥— 2,508,545 ¥ ¥— urnesCreditDerivatives Guarantees ¥— (3,090,446) 3,475,094 1,159,422 114,329 181,903 2011 2011 943,896 142,536 215,526 774,273 67,574 72,990 4,701 4,701 Millions ofYen Millions ofYen — — — — 500 47 47 — — — — — — — — — — — — Consolidated ¥— 29,561 ¥ 3,099,701 ¥ ¥— (3,551,098) 3,789,952 1,140,016 29,561 29,561 2010 2010 107,961 876,641 221,775 263,375 901,162 78,400 29,561 41,599 — — — — — — — — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 479 — — — — — — ¥— ¥— Synthetic Transaction Securitization — — — — — — Consolidated ¥ 158 ¥ 158 (AAA/S&P, Aaa/Moody’s) — — — — — — Asset Cumulative Total Losses ¥ 197,293 ¥ 197,293 Transaction Securitization Transfer-Type March 2011 Mortgage Loans ¥ 46,059 million ¥ 44,571 million Asset transfer-type securitization transaction ¥ 46,059 million ¥ 42,600 million ¥ 3,459 million (no rating) December 2051 2011 2011 — — — — — — Millions of Yen Millions of Yen Aggregate Sum of Underlying Assets ¥ 197,293 ¥ 197,293 — — — — — — ¥ 233 ¥ 233 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — — — — (AAA/S&P) Assets Overdue for Three Amounts Exposure ¥ 29,508 ¥ 29,508 Months or Longer or in Default Cumulative Total of Underlying Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel September 2010 Mortgage Loans ¥ 11,163 million ¥ 10,693 million Asset transfer-type securitization transaction ¥ 11,163 million ¥ 10,000 million ¥ 1,163 million (no rating) January 2046 (AAA/S&P, Aaa/Moody’s) ¥ 2,620 million (no rating) April 2051 June 2010 Mortgage Loans ¥ 32,620 million ¥ 29,547 million Asset transfer-type securitization transaction ¥ 32,620 million ¥ 30,000 million Preferred Beneficially Notes Subordinated Beneficially Notes at the time of securitization as of March 31, 2011 exposures held, cumulative total of losses, and their breakdowns by type of principal underlying assets exposures held, cumulative total of losses, and their breakdowns by type of The STB Group holds part of the exposures related to these securitization transactions, and quantitative data in (2)–(9) The STB Group holds part of the exposures Type of Transaction: Initial Issue Amount: Date of Redemption: Date of Securitization: Type of Underlying Assets: Assets: Aggregate Sum of Underlying Accounts Receivable, Other Claims on Corporates Total Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Claims on Lease Payments Year Ended March 31 Housing Loans Credit Card Loans, Consumer Loans Auto Loans, Other Loans to Individuals Accounts Receivable, Other Claims on Corporates Total Auto Loans, Other Loans to Individuals Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Claims on Lease Payments As of March 31 Housing Loans Credit Card Loans, Consumer Loans (3) Cumulative total of underlying assets overdue for three months or longer or in default related to securitization (3) Securitization Exposures Originated by the STB Group Securitization Exposures (2) Amounts of securitization exposures held and breakdown of principal underlying assets by type (2) Amounts of securitization exposures Fiscal Year 2010 and status of principal underlying assets during fiscal year 2010, type (1) Outline of securitizations Securitization Exposures below include data related to this securitization transaction. below include data related to this securitization 480 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (7) Items bytypeofprincipalunderlying assetsofsecuritizationexposureswithearlyredemption clauses (6) Amounts ofsecuritizationexposuresbytypeprincipalunderlyingassetsdeductedfromcapitalunderprovisions (5) Amountsequivalenttotheincreaseincapitalfollowingsecuritizationandbreakdownbytypeofprincipalunderlying assets (4) Balanceandamountsofrequiredcapitalsecuritizationexposuresheldbyrisk-weightcategory Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. As ofMarch31 As ofMarch31 As ofMarch31 Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Total Risk-Weight Category(StandardizedApproach) Risk-Weight Category(IRBApproach) Not applicable. Capital Deduction Over 100%andLessthan1,250% Over 20%and100%orLess 20% orLess Capital Deduction Over 100%andLessthan1,250% Over 20%and100%orLess 20% orLess of theNotification,Article247 29,508 ¥ 29,508 ¥ aac RequiredCapital Balance 29,220 288 Millions ofYen — — — — — — — 2011 Millions ofYen Millions ofYen 3,968 ¥ 288 ¥ 288 ¥ 5,686 ¥ 5,686 ¥ 3,968 ¥ 2011 2011 3,680 288 — — — — — — — — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 481 — — — — — — — — — — — — 2011 ¥— ¥— ¥ 5,177 ¥ 5,177 Synthetic Transaction Securitization Millions of Yen — — — — — — (AAA/S&P, Aaa/Moody’s) Asset ¥ 129,220 ¥ 129,220 Transaction Securitization Transfer-Type 2010 — — — — — — April 2010 Mortgage Loans ¥ 32,980 million ¥ 32,472 million Asset transfer-type securitization transaction ¥ 32,980 million ¥ 30,000 million ¥ 2,980 million (no rating) December 2050 Millions of Yen Aggregate Sum of Underlying Assets ¥ 129,220 ¥ 129,220 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — — — — Amounts ¥ 19,998 ¥ 19,998 Exposure Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel April 2009 Mortgage Loans ¥ 21,108 million ¥ 19,055 million Asset transfer-type securitization transaction ¥ 21,108 million ¥ 19,500 million (AAA/S&P) ¥ 1,608 million (no rating) December 2046 securitization transactions recognized during fiscal year 2010 and break- recognized during fiscal year securitization transactions following as of March 31, 2011 Preferred Beneficially Notes Subordinated Beneficially Notes down by type of principal underlying assets down by type of principal securitization exposures Not applicable. The STB Group holds part of the exposures related to this securitization transaction, and quantitative data in (2)–(9) The STB Group holds part of the exposures Initial Issue Amount: Date of Redemption: Date of Securitization: Type of Underlying Assets: Aggregate Sum of Underlying Assets: at the time of securitization Type of Transaction: Accounts Receivable, Other Claims on Corporates Accounts Receivable, Other Claims on Corporates Total Commercial Real Estate-Secured Loans Commercial Real Estate-Secured Loans and Bonds to Corporates Claims on Lease Payments Housing Loans Loans Credit Card Loans, Consumer to Individuals Auto Loans, Other Loans Total Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Claims on Lease Payments Accounts Receivable, Other Claims on Corporates Housing Loans Credit Card Loans, Consumer Loans Auto Loans, Other Loans to Individuals As of March 31 Year Ended March 31 (2) Amounts of securitization exposures held and breakdown of principal underlying assets by type (2) Amounts of securitization exposures held and breakdown of principal underlying Fiscal Year 2009 year 2009, type and status of principal underlying assets (1) Outline of securitizations during fiscal (9) Amounts of credit risk-weighted assets calculated with the application of transitional measures with respect to assets calculated with the application of transitional measures with Amounts of credit risk-weighted (9) (8) Amounts of gains/losses on sale Amounts of (8) below include data related to this securitization transaction. 482 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (5) (4) Balanceandamountsofrequiredcapitalsecuritizationexposuresheldbyrisk-weightcategory Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. (3) Cumulative totalofunderlyingassetsoverdueforthreemonthsorlongerindefaultrelatedtosecuritization As ofMarch31 As ofMarch31 Year EndedMarch31 Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Total Risk-Weight Category(StandardizedApproach) Risk-Weight Category(IRBApproach) Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Capital Deduction Over 100%andLessthan1,250% Over 20%and100%orLess 20% orLess Capital Deduction Over 100%andLessthan1,250% Over 20%and100%orLess 20% orLess Amounts equivalenttotheincreaseincapitalfollowingsecuritization andbreakdownbytypeofprincipalunderlyingassets exposures held,cumulativetotaloflosses,andtheirbreakdownsbytypeprincipalunderlyingassets Cumulative TotalofUnderlying Months orLongerinDefault Assets OverdueforThree 132 ¥ 132 ¥ — — — — — — Millions ofYen 2010 19,998 ¥ 19,998 ¥ aac RequiredCapital Balance Cumulative TotalLosses 11,980 7,700 317 Millions ofYen — — — — — — 160 ¥ 160 ¥ 2010 — — — — — — Millions ofYen 2,915 ¥ 2,915 ¥ 2,968 ¥ 2,968 ¥ 2010 2,008 317 643 — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 483 — — — — — — — — — — — — 2010 2010 ¥ 317 ¥ 2,990 ¥ 2,990 ¥ 317 Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel securitization transactions recognized during fiscal year 2009 and break- securitization transactions recognized following securitization exposures of the Notification, Article 247 of the Notification, down by type of principal underlying assets down by type of principal underlying Not applicable. Not applicable. Claims on Lease Payments Accounts Receivable, Other Claims on Corporates Total Credit Card Loans, Consumer Loans Auto Loans, Other Loans to Individuals Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Housing Loans Accounts Receivable, Other Claims on Corporates Accounts Receivable, Other Claims on Corporates Total Commercial Real Estate-Secured Loans Commercial Real Estate-Secured Loans and Bonds to Corporates Claims on Lease Payments Housing Loans Loans Credit Card Loans, Consumer to Individuals Auto Loans, Other Loans Year Ended March 31 As of March 31 (9) Amounts of credit risk-weighted assets calculated with the application of transitional measures with respect to (9) (8) Amounts of gains/losses on sale (8) (7) Items by type of principal underlying assets of securitization exposures with early redemption clauses Items by type of principal underlying assets of securitization (7) (6) Amounts of securitization exposures by type of principal underlying assets deducted from capital under provisions underlying assets deducted from exposures by type of principal Amounts of securitization (6) 484 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. (4) Amounts of creditrisk-weightedassetscalculatedwiththeapplication oftransitionalmeasureswithrespectto (3) Amounts ofsecuritizationexposuresbytypeprincipal underlyingassetsdeductedfromcapitalunderprovisions (2) Balanceandamountsofrequiredcapitalsecuritizationexposuresheldbyrisk-weightcategory Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Securitization ExposuresPurchasedbytheSTBGroup Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. (1) Amountsofsecuritizationexposuresheldandbreakdownprincipalunderlyingassetsbytype As ofMarch31 As ofMarch31 Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans As ofMarch31 Total Accounts Receivable,OtherClaims onCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Total Risk-Weight Category(StandardizedApproach) Risk-Weight Category(IRBApproach) Not applicable asoftheendMarch2011 andtheendofMarch2010. Capital Deduction Over 100%andLessthan1,250% Over 20%and100%orLess 20% orLess Capital Deduction Over 100%andLessthan1,250% Over 20%and100%orLess 20% orLess securitization exposures of theNotification,Article247 527,721 ¥ 527,721 ¥ aac RequiredCapital Balance 439,265 12,464 14,718 61,272 — — — — — 2011 24,591 ¥ 24,591 ¥ 12,464 5,781 3,127 3,217 Millions ofYen — — — — — xoueAonsExposureAmounts Exposure Amounts 527,721 ¥ 258,361 ¥ 12,464 ¥ ¥— 741,309 ¥ 741,309 ¥ aac RequiredCapital Balance 174,321 631,296 2011 2011 37,396 12,206 35,132 12,411 16,142 85,131 2,285 8,017 8,739 Millions ofYen Millions ofYen — — — — — 53 — — — — 2010 741,309 ¥ 359,650 ¥ 8,739 ¥ ¥— 24,579 ¥ 24,579 ¥ 210,937 2010 2010 57,412 41,792 68,236 2,712 1,000 7,567 8,739 6,615 4,315 4,909 566 171 — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 485 2.3 billion 0.3 billion 0.8 billion ¥ 0.5 billion Trading Account Consolidated 73.4 billion VaR 151.2 billion 112.0 billion ¥ 77.4 billion Banking Account (Billions of Yen) . 0.5 Profit/Loss and VaR Scatter Diagram and VaR Profit/Loss Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 0.0 1.0 1.5 2.0 2.5 (The latest 250 business days including the calculation reference date.) (The latest 250 business days including the calculation reference 2.5 2.5 1.0 0.5 0.0 0.5 1.0 1.5 2.0 2.0 1.5
－ － － － －
(Billions of Yen) of (Billions
Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel Profit/Loss Compared with the Preceding Day Preceding the with Compared Profit/Loss As of March 31, 2010 Maximum Minimum Mean • Market risk in fiscal year 2009 • Market risk in fiscal (For the April 2009 - March 2010 Period) 1.4 billion 0.4 billion 0.8 billion ¥ 1.0 billion Trading Account VaR 248.3 billion 186.3 billion 215.3 billion ¥ 223.9 billion Banking Account (Billions of Yen) 0.5 Profit/Loss and VaR Scatter Diagram and VaR Profit/Loss 0.0 1.0 1.5 (The latest 250 business days including the calculation reference date.) (The latest 250 business days including the calculation reference 0.5 1.0 1.5 1.0 0.5 0.0 1.5
－ － －
Since March 31, 2011, cross-held stocks have been included in the banking Since March 31, 2011, cross-held stocks have been included increased by ¥140.1 bil- account. Accordingly, value at risk as of March 31, 2011, minimum and mean lion. For the April 2010 to March 2011 period, the maximum, billion, respectively. VaR increased by ¥144.5 billion, ¥133.9 billion, and ¥140.7 (Billions of Yen) of (Billions Banking AccountTrading Account Confidence Interval: One-tailed 99% Holding Period: Confidence Interval: One-tailed 99% 21 business days Observation Period: Period: Holding 1 Year 1 business day Observation Period: 1 Year Day Preceding the with Compared Profit/Loss Minimum Mean As of March 31, 2011 Maximum (1) End of period Value at Risk (VaR) and maximum, minimum and mean VaR for the period at Risk (VaR) and maximum, minimum (1) End of period Value (2) Results of back testing and reasons for large deviations between actual losses and VaR (2) Results of back testing and reasons • Back testing of the trading account Fiscal Year 2010 Year 2009 Fiscal Note: As shown above, for fiscal year 2010 back testing of the trading accounts shows zero instances of losses in excess of VaR Note: VaR Measurement Standards (For the April 2010 - March 2011 Period) Note: Market Risk • Market risk in fiscal year 2010 • Market risk in fiscal 486 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report * Amountsbyportfoliocategoryshowexposuressubjecttothecalculationofcreditrisk-weightedassets. *2. Consolidatedstatementsofincomefiguresforgains/lossesonstockholdingsandrelatedwrite-offs. *1. Figuresforavailable-for-salesecuritiesincludeonlyJapaneseandforeignstocks. Capital SubscriptionsorEquityExposures intheBankingAccount Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Amounts ofGains/LossesonSalesandWrite-offs Amounts ofUnrealizedGains/LossesnotRecognized As ofMarch31 Amounts ofUnrealizedGains/LossesRecognized Consolidated BookandFairValues* As ofMarch31 Amounts byPortfolioCategory* in theConsolidatedBalanceSheetsandStatementsofIncome in theConsolidatedStatementsofIncome of CapitalSubscriptionsorEquityExposures* Capital SubscriptionsorEquityExposuresnotincludedin Listed StockExposures in theConsolidatedBalanceSheetsandnotRecognized Portfolios AdoptingthePD/LGDApproach Portfolios AdoptingtheMarket-basedApproach Outstanding SharesHeld “Listed StockExposures” 1 2 Gains/Losse (6,051) okVleFairValue Book Value 470,802 ¥ 3,204 Gains 46,074 Not applicable 2,314 Losses 2011 45,343 470,802 ¥ Written-off 6,941 46,074 Millions ofYen Gains/Losse (7,379) okVleFair Value Book Value 663,532 ¥ 492,412 ¥ 180,466 426,506 2011 56,559 47,651 13,422 Gains Not applicable Millions ofYen 2010 Consolidated 2,058 65,551 Losses 492,412 ¥ 715,275 ¥ 177,070 469,193 2010 47,651 69,012 Written-off 18,743 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 487 1.3% — 6,710 33,642 11,681 13,486 2010 2010 5.9 billion 0.5 billion 176,838 18.2 billion ¥ 242,360 ¥ 24.7 billion Consolidated Consolidated — — Millions of Yen 3.3% 2,685 36,638 13,086 2011 2011 118,329 0.0 billion 1.1 billion 63.1 billion ¥ 170,739 ¥ 65.5 billion owing three items, as an upper limit, for balance of deposits. after deducting the maximum annual out- he fluctuation range measured for a one year hold- Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel the five-year maturity (an average term of 2.5 years): 1) the lowest balance of deposits in the past five years, 2) the balance the five-year maturity (an average term of 2.5 years): 1) of deposits, or 3) the amount equivalent to 50% of the current flow of deposits in the past five years from the current balance ing period and a minimum observation period of five years. 2. Our risk measurement method uses the interest rate sensitivity approach. Core deposits are defined as the lowest of the foll Our risk measurement 2. Japanese Yen Interest Rate U.S. Dollar Interest Rate Euro Interest Rate Simple Majority Formula Simple Majority Formula Investment Criteria Formula Internal Models Approach Probability Approach Others Look-through Approach Look-through Approach Outlier Ratio Overall Amounts of Interest Rate Risk As of March 31 Aggregate Sum of Exposures Held in Funds Aggregate Sum of Exposures As of March 31 • Outlier ratio Gains/Losses and Changes in Economic Value Due to Interest Rate Shocks under the Internal Due to Interest Control Value Gains/Losses and Changes in Economic Account Rate Risk in the Banking Interest Regarding Management Used by the STB Group Note: Exposures subject to the calculation of credit risk-weighted assets are shown. Note: Exposures subject to the calculation of credit risk-weighted Notes: percentile of t STB’s interest rate fluctuation scenario assumes an interest rate shock consisting of the 1st and 99th 1. Exposures Held in Funds as Credit Risk-Weighted Assets Risk-Weighted Funds as Credit Held in Exposures 488 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report *1. As ofMarch31,2011,theamountnoncumulative perpetualpreferredshareswhichareincludedinTierIwas¥109,000mill Constituents ofCapital(Non-consolidatedBISAdequacyRatio) Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. *7. We receivedanexternal auditbyKPMGAZSALLCofthecalculation ofthenon-consolidatedBIScapitaladequacy ratioinlin *6. ListedintheNotification,Article20,Paragraph 1,1through5,andincludetheamountsequivalenttointentionalholding *5. ListedintheNotification,Article18,Paragraph 1,5and6.However,subordinatedtermdebtsarelimitedtothosewithan *4. DebtcapitallistedintheNotification,Article 18,Paragraph1,4thathaveallofthecharacteristicslistedbelow: *3. Listed intheNotification, Article17,Paragraph2,i.e.stocksandothersecuritieswithhighprobabilityofredemptions *2. AsofMarch31,2011,deferredtaxassetstotaled ¥82,750millioninnetterms.Theupperlimitontheinclusionofdeferre Capital AdequacyRatio As ofMarch31 Ratio ofNoncumulativePreferredSecuritieswith Tier ICapitalRatio=A/Mx100(%) BIS CapitalAdequacyRatio=E/Mx100(%) Risk-Weighted Assets Total QualifyingCapital Items forDeduction Tier III Tier II Tier I (including noncumulativepreferredsecuritiesissued byoverseasspecialpurposecompanies). Preferred Shares”indicatestheamountwhichhasbeenincludedincapitalstock. ratio itselforpartsofthe internalcontrolwhichconcerntheratio.Asof July1,2010,KPMGAZSA&Co.hasbecome AZSA ratio underagreed-upon examinationproceduresandisareportofthe results.Itthusdoesnotrepresenttheopinion oftheex audit ofthenon-consolidated financialstatementsbutwasconducted aspartoftheinternalriskmanagementframework concerni Adequacy RatioAudits’ (Pronouncement30oftheJapaneseInstitute of CertifiedPublicAccountants,BankAuditing Committee,Ma Step-up InterestRateClausestoTierICapital=a/Ax100(%) Total ((F)+(G)(I)(K)(L))(M) Operational RiskEquivalentsAdjustments(L) Credit Risk-WeightedAssetsAdjustments(K) (Reference) OperationalRiskEquivalents(J) Amount ofOperationalRiskEquivalents((J)/8%)(I) (Reference) MarketRiskEquivalents(H) Amount ofMarketRiskEquivalents((H)/8%)(G) Amount ofCreditRisk-WeightedAssets(F) Off-balance SheetTransactionItems Asset (On-balanceSheet)Items ((A) +(B)(C)-(D))(E) Items forDeduction* Included inCapital(C) Subordinated Short-termDebt Included inCapital(B) Total Debt Capital Excess ofQualifyingAllowanceoverExpectedLoss General AllowanceforLoanLosses 45% ofRevaluationReserveforLand 45% ofNetUnrealizedGainonAvailable-for-SaleSecurities Total (A) Deducted AmountofDeferredTaxAssets(Deduction)* Total TierIbeforeDeductionofDeferredTaxAssets(AggregateSumItemsAbove) Equivalent to50%oftheExcessExpectedLossoverQualifyingAllowance(Deduction) Equivalent totheIncreaseinCapitalAssociatedwithSecuritizationTransactions(Deduction) Equivalent toIntangibleFixedAssetsRecordedthroughBusinessCombination(Deduction) Goodwill Equivalents(Deduction) Business RightsEquivalents(Deduction) Subscription RightstoShares Net UnrealizedLossonAvailable-for-SaleSecurities(Deduction) Expected DistributedAmount(Deduction) Deposit forSubscriptionstoTreasuryStock Treasury Stock(Deduction) Others Other RetainedEarnings Legal RetainedEarnings Other CapitalSurplus Legal CapitalSurplus Deposit forSubscriptionstoShares Capital Stock (4) Allowedtodeferinterestpaymentobligations (3) Usedforcompensationoflosswhilecontinuing business (2) Notredeemableexceptforcertaincases (1) Paid-updebtsunsecuredandsubordinateto otherdebts Subordinated TermDebtandFixed-termPreferredShares* Perpetual SubordinatedDebt* Noncumulative PreferredSecuritiesIssuedbyOverseasSpecialPurposeCompanies Noncumulative PreferredSecuritiesAttachedwithStep-upInterestRateClause* Noncumulative PerpetualPreferredShares* 6 (D) 4 1 2 5 3 (a) d taxassetsincapitalwas¥276,722million. s ofotherfinancialinstitutions’capitalfunding means. originalmaturityofoverfiveyears. through suchmeasuresasattachmentofstep-up interestrateclauses ternal auditorregarding thenon-consolidatedBIScapitaladequacy LLCasaresultofchange initsformofbusinessregistration. e with‘AgreedUponMethods fortheImplementationofCapital ion. Thecolumnfor“CapitalStock—NoncumulativePerpetual ng thecalculationof non-consolidatedBIScapitaladequacy rch 29,2011).Theexternal auditisnotpartoftheaccounting 11,278,044 ¥ 342,037 ¥ 10,691,148 2011 1,365,075 9,326,073 1,925,171 1,383,614 1,383,614 470,446 116,449 630,700 630,700 442,928 185,307 628,236 280,000 156,000 279,999 446,186 242,555 Non-consolidated 37,635 89,143 13,439 15,701 52,929 54,495 54,500 Millions ofYen 9,315 2,016 4,966 11.27 12.26 17.07 448 482 — — — — — — — — — — — — — — 342,037 ¥ 12,044,380 ¥ 11,476,839 10,054,291 2010 1,422,547 1,838,857 1,329,837 1,329,837 597,328 597,328 409,907 186,915 596,823 280,000 156,000 279,999 400,268 242,555 481,499 88,308 86,041 22,567 10,678 48,323 54,496 54,500 38,519 11.73 11.04 15.26 6,883 2,614 1,518 505 465 — — — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 489 ¥70 billion Fixed Rate
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 491 — — — — — 68 256 9,511 4,859 6,481 9,411 36,369 15,599 86,020 17,748 15,539 2010 2010 Default Months or ¥ 38,519 ¥ 963,550 ¥ 182,841 ¥ 192,353 ¥ 192,353 or Exposures in Longer Overdue Exposures Three — — 28 75 53 Millions of Yen Millions of Yen Non-consolidated 1,315 1,685 1,460 6,731 9,183 1,267 28,215 21,622 51,216 2011 2011 680,786 410,598 481,391 189,015 682,550 Counter Over-The- Derivatives ¥ 262,420 ¥ 943,206 ¥ 943,206 ¥ 926,436 ¥ 943,206 ¥ 902,243 ¥ 37,635 011. tting against the obligor’s cash on deposit — — 32 ars include those with no fixed maturities. 6,791 1,564 4,424 20,519 35,151 34,683 86,324 696,623 119,476 182,510 208,927 912,923 346,681 2011 other assets and those excluded from the application. 3,067,944 1,066,369 2,352,039 Securities ¥ 4,115,032 ¥ 4,115,032 ¥ 3,932,476 ¥ 3,202,108 ¥ 4,115,032 Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 2,216 7,199 15,253 577,168 116,330 130,348 379,114 227,474 760,416 584,846 Credit Risk Exposures 2,155,211 2,284,978 3,819,117 5,237,927 4,587,076 1,267,832 1,506,805 1,872,215 2,341,554 and Other Derivatives ¥ 13,644,120 ¥ 13,644,120 ¥ 13,711,674 ¥ 13,059,274 ¥ 13,644,120 Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel Off-balance Sheet Loans, Commitments Exposures other than 3,810 7,306 15,307 585,228 136,849 166,815 415,484 233,359 868,363 2,155,211 6,035,474 4,566,957 6,714,895 7,420,507 1,394,040 1,878,332 2,090,326 2,178,555 2,716,450 ¥ 18,702,359 ¥ 18,702,359 ¥ 18,570,587 ¥ 16,523,803 ¥ 18,702,359 with STB. 5. The above data represents exposures to original debtors in loan participations. 2. “Others” in the industry sectors include non-residents and state public services. Exposures for the duration of over five ye 2. “Others” in the industry sectors include non-residents and state public services. Exposures for the duration of over and March 31, 2 3. “Average Balance during the Period” is the average figure of those as of March 31, 2010; September 30, 2010; represents amounts after credit risk mitigation effects of netting contracts allowed under the law and the ne The above data 4. Total Required Capital Over One Year to Less than Five Years Five Years or Longer Total for All Durations Total for Industry Sectors One Year or Shorter Goods Rental and Leasing Local Public Bodies Individuals Others Wholesale and Retail Trade Finance and Insurance Real Estate Construction Electricity, Gas, Heat Supply and Water Information and Communication Transport and Postal Activities Agriculture and Forestry Fisheries Mining and Quarrying of Stones and Gravel Total for Regions Manufacturing As of March 31 Japan Outside Japan As of March 31 Standardized Approach As of March 31 Average Balance during the Period (6) Total required capital (6) Notes: of credit risk-weighted assets excluding those subject to funds, securitization, 1. Exposures subject to the calculation Balance of Exposures Related to Credit Risk and Breakdown by Industry Sector Balance of Exposures Related to Credit Credit Risk Credit (5) Amounts of required capital against operational risk Amounts of required capital against (5) 492 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (1) Generalallowanceforloan losses Loan LossesfromBorrowersinSpecifiedForeignCountries Balance andChangesofGeneralAllowanceforLoanLosses, SpecificAllowanceforLoanLosses,and Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. oe:1. Notes: Average BalanceduringthePeriod General AllowanceforLoanLosses As ofMarch31 Total forAllDurations Five YearsorLonger Over OneYeartoLessthanFiveYears One YearorShorter Total forIndustrySectors Others Individuals Local PublicBodies Goods RentalandLeasing Real Estate Finance andInsurance Wholesale andRetailTrade Transport andPostalActivities Information andCommunication Electricity, Gas,HeatSupplyandWater Construction Mining andQuarryingofStonesGravel Fisheries Agriculture andForestry Manufacturing Total forRegions Outside Japan Japan As ofMarch31 6. Pursuant to the revisionofJapanStandardIndustrialClassification(November2007),presentationindustrysectorshasb 5. Theabovedatarepresentsexposurestooriginaldebtorsinloanparticipations. The abovedatarepresents amountsaftercreditriskmitigationeffectsofnettingcontractsallowedunderthelawandne 4. 3. “AverageBalanceduringthePeriod”isaveragefigureofthoseasMarch 31, 2009;September30,andMarch2 2. “Others”intheindustrysectorsincludenon-residentsandstatepublicservices. Exposures forthedurationofoverfiveye March 31,2010. Exposures subjecttothecalculationofcreditrisk-weightedassetsexcludingthose tofunds,securitization,otherass 18,252,404 ¥ 18,175,367 ¥ 18,175,367 ¥ 18,175,367 ¥ 16,082,230 ¥ 6,345,674 7,289,456 4,540,236 5,402,895 1,958,166 2,180,738 2,027,914 1,366,599 2,834,911 2,093,136 114,078 707,488 886,346 260,877 224,516 186,559 14,874 5,915 3,483 Exposures otherthan Loans, Commitments Off-balance Sheet 13,904,398 ¥ 13,914,336 ¥ 13,914,336 ¥ 13,914,336 ¥ 13,397,589 ¥ Derivatives and Other 4,381,439 5,674,058 3,858,838 2,309,772 1,958,166 2,008,436 1,745,985 1,252,523 2,444,110 Credit RiskExposures 516,746 102,248 698,183 785,826 255,712 182,970 147,770 14,769 5,804 2,055 Millions ofYen 3,384,902 ¥ 2,459,749 ¥ 3,466,109 ¥ 3,384,902 ¥ 3,384,902 ¥ 54,000 ¥ Securities 1,478,750 1,272,488 2,456,217 Balance 2011 2010 360,297 925,153 633,663 160,508 113,206 106,945 11,829 85,164 40,118 37,408 1,398 7,151 4,631 24 — — ets andthoseexcludedfromtheapplication. ars includethosewithnofixedmaturities. tting againstthecompany’scashbalance. een partiallymodifiedfromtheyearended 010. Millions ofYen Derivatives 881,896 ¥ 876,128 ¥ 876,128 ¥ 876,128 ¥ 224,891 ¥ Over-The- 59,128 ¥ Counter Balance 485,483 342,909 636,905 168,722 651,236 2010 47,734 11,793 15,355 30,503 2,154 7,130 1,427 1,380 534 104 86 29 — — Exposures Three Longer Overdue or Exposuresin 219,077 ¥ 206,600 ¥ 219,077 ¥ Months or (5,128) ¥ Change Default 10,576 12,477 33,414 90,304 14,771 22,822 14,370 17,087 7,047 8,184 497 — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 493 0 — — — — — — — — — — — — 20 33 702 (964) (261) (743) 147 135 541 357 2,954 1,139 (1,643) (1,359) (3,255) 1,763 2010 (11,467) ¥ 276 ¥ 3,274 Changes ¥ (13,412) ¥ (14,156) ¥ (14,156) — — — — — — — — — — — — — — — Millions of Yen (32) 858 557 100 295 261 529 (974) 2,813 1,370 2,164 7,023 2010 2011 12,047 12,659 13,867 Balance ¥ 45,715 ¥ 45,715 ¥ 38,691 ¥ 14,818 ¥ 15,624 Millions of Yen — — — — — — — 10 580 702 9,404 1,669 6,279 5,768 1,199 2011 12,223 Balance ¥ 31,558 ¥ 25,279 ¥ 31,558 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel Not applicable as of the end of March 2011 and the end of March 2010. Not applicable as of the end of March Individuals Others Total for Industry Sectors Real Estate Goods Rental and Leasing Local Public Bodies Transport and Postal Activities Wholesale and Retail Trade Finance and Insurance Construction Electricity, Gas, Heat Supply and Water Information and Communication Manufacturing Agriculture and Forestry Fisheries Mining and Quarrying of Stones and Gravel Total for Industry Sectors Local Public Bodies Individuals Others Finance and Insurance Real Estate Goods Rental and Leasing Information and Communication Transport and Postal Activities Wholesale and Retail Trade Fisheries Mining and Quarrying of Stones and Gravel Construction Electricity, Gas, Heat Supply and Water Manufacturing Agriculture and Forestry Japan Outside Japan Total for Regions As of March 31 As of March 31 Amounts of Written-off Loans by Industry Sector Amounts of Written-off Loans by Industry (3) Allowance for loan losses from borrowers in specified foreign countries (breakdown by industry sector) (3) Allowance for loan losses from borrowers (2) Specific allowance for loan losses (breakdown by region, industry sector) for loan losses (breakdown by region, (2) Specific allowance 494 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Exposures towhichtheIRBApproachisAppliedbyRisk-WeightCategory Balance ofExposurestowhichtheStandardizedApproachisAppliedbyRisk-WeightCategory Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. As ofMarch31 Amounts DeductedfromCapitalunder Equity ExposurestowhichtheSimple Risk-WeightMethodoftheMarket-basedApproachis Applied Specialized LendingundertheSlottingCriteria As ofMarch31 Balance ofExposurestowhichtheStandardizedApproachisAppliedafter the Notification,Article20,Paragraph1,2and5 Allowing fortheCreditRiskMitigationEffectbyRisk-WeightCategory Other Exposures High-Volatility CommercialRealEstateExposures Maturities ofLessthan2.5Years Maturities of2.5YearsorLonger Maturities ofLessthan2.5Years Maturities of2.5YearsorLonger nitdSok 400% 300% Unlisted Stocks Listed Stocks Default 0% Weak 250% Satisfactory 115% Good 70% Strong 50% Default 0% Weak 250% Satisfactory 115% Good 90% Strong 70% Default 0% Weak 250% Satisfactory 140% Good 95% Strong 70% Default 0% Weak 250% Satisfactory 140% Good 120% Strong 95% 150% 100% 50% 35% 20% 10% 0% 284,288 ¥ 249,816 34,472 — — — — — — 2011 Subject toRating ¥— — — — — — — — Millions ofYen 48,700 ¥ 1,094,242 ¥ 1,275,372 ¥ 285,404 ¥ 250,597 2011 103,435 124,952 300,255 192,369 233,069 319,240 793,987 117,240 181,130 34,807 65,888 34,306 14,394 45,054 13,200 44,477 63,889 57,855 28,695 30,688 1,223 4,756 4,252 1,208 5,004 Millions ofYen — — — — — — — — — 2010 Subject toRating 52,155 ¥ 1,003,847 ¥ 1,248,626 ¥ ¥— 2010 228,339 186,282 213,969 339,927 775,507 115,730 129,048 244,779 40,874 11,280 99,479 74,377 47,322 35,328 13,200 49,051 34,223 19,254 62,135 53,934 12,978 7,159 — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 495 — — — — — 887 1,742 3,039 38,659 24,495 803,074 801,998 Off_EAD Off_EAD Off_EAD Off_EAD ¥ 22,799 ¥ 633,173 ¥ 1,477,947 ¥ 23,687 ¥ 534,134 ¥ 21,133 ¥ 21,133 ¥ 1,362,370 — — 310 319 15,380 11,225 489,709 202,408 277,364 176,428 4,678,601 4,557,807 ¥ 2,964,372 ¥ 2,980,072 ¥ 2,327,923 ¥ 7,698,643 ¥ 7,629,255 ¥ 3,511,840 ¥ 2,617,655 ¥ 3,500,304 — — — — 3.49% 4.10% RW On_EAD RW On_EAD RW On_EAD RW On_EAD 3.88% 4.31% 2010 2010 2011 2011 25.09% 67.47% 59.19% 24.63% 66.27% 54.67% 112.13% 178.14% 187.38% 194.89% 132.96% 183.78% Millions of Yen Millions of Yen Millions of Yen Millions of Yen Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — LGD LGD LGD LGD 44.97% 45.00% 43.62% 44.97% 45.60% 44.78% 42.71% 43.07% 44.89% 44.99% 45.00% 45.00% 44.99% 45.44% 44.72% 44.15% 41.77% 44.89% Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel — — PD PD PD PD 0.01% 1.16% 9.68% 0.01% 0.07% 0.73% 3.43% 2.85% 0.01% 1.82% 9.68% 0.01% 0.07% 0.67% 12.79% 13.14% 100.00% 100.00% of Risk-Weights (RW), Exposure At Default (EAD) of On-balance sheet asset items (On_EAD), and EAD of Off-bal- sheet asset items (On_EAD), Exposure At Default (EAD) of On-balance of Risk-Weights (RW), corporate exposures (Off_EAD), by obligor category for ance sheet asset items of Risk-Weights (RW), Exposure At Default (EAD) of On-balance sheet asset items (On_EAD), and EAD of Off-bal- of Risk-Weights (RW), Exposure At Default ance sheet asset items exposures (Off_EAD), by obligor category for sovereign Total Ratings 5 – 6 Ratings 7 – 8 Ratings 8- – 10 Ratings 1 – 4 Ratings 7 – 8 Ratings 8- – 10 Total Ratings 1 – 4 Ratings 5 – 6 Total Ratings 5 – 6 Ratings 7 – 8 Ratings 8- – 10 Ratings 1 – 4 As of March 31 Ratings 7 – 8 Ratings 8- – 10 Total Ratings 1 – 4 Ratings 5 – 6 As of March 31 As of March 31 As of March 31 (1) Weighted average of Probability of Default (PD), weighted average of Loss Given Default (LGD), weighted average (PD), weighted average of Loss Given average of Probability of Default Weighted (1) Note: Specialized lending and purchased receivables are excluded. Note: Specialized lending and purchased receivables are Note: Specialized lending and purchased receivables are excluded. Note: Specialized lending and purchased receivables are (2) Weighted average of Probability of Default (PD), weighted average of Loss Given Default (LGD), weighted average Weighted average of Probability of Default (PD), weighted average (2) Portfolios to which the IRB Approach is Applied Portfolios to which Note: Specialized lending and purchased receivables are excluded. Note: Specialized lending and purchased receivables are excluded. 496 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. (4) Weighted averageofProbabilityDefault (PD),weightedaverageofRisk-Weights(RW)andbalance,byobligor Note: Specializedlendingandpurchasedreceivablesareexcluded. Note: Specializedlendingandpurchasedreceivablesareexcluded. (3) Weighted averageofProbabilityDefault(PD),weightedLossGiven Default(LGD),weightedaverage Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 As ofMarch31 Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 As ofMarch31 As ofMarch31 As ofMarch31 Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 Total Ratings 8-–10 Ratings 7–8 Ratings 5–6 Ratings 1–4 category forequityexposurestowhichthePD/LGDApproachisapplied ance sheetassetitems(Off_EAD),byobligorcategoryforbankexposures of Risk-Weights(RW),ExposureAtDefault(EAD)On-balancesheetassetitems(On_EAD),andEADOff-bal- 0.08% 7.64% 0.40% 0.05% 0.08% 7.64% 0.40% 0.05% PD PD — — 45.93% 45.00% 45.89% 45.93% 46.39% 45.00% 44.52% 46.57% LGD LGD — — Millions ofYen Millions ofYen 255.78% 100.00% 100.00% 180.76% 55.29% 17.93% 12.65% 21.51% 20.56% 55.43% 17.20% 2011 2010 0.28% 0.08% 0.54% WOn_EAD RW WOn_EAD RW 0.57% 9.36% 0.29% 0.08% DRW PD RW PD — — Millions ofYen Millions ofYen 648,482 ¥ 581,903 ¥ 728,503 ¥ 774,540 ¥ 125.36% 473.69% 149.18% 105.57% 124.24% 460.54% 148.84% 105.62% 2011 2010 66,264 46,034 314 — — — — 2 99,064 ¥ 180,466 ¥ 844,933 ¥ 925,964 ¥ 99,456 ¥ 177,070 ¥ 685,049 ¥ 774,106 ¥ Off_EAD Off_EAD Balance Balance 80,425 80,718 76,768 88,766 697 147 290 624 352 312 — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 497 — — — — — — — — — — — — 5% 5% 75% 10% 24% 25% 75% 70% 75% 30% 69% 54% 75% 72% CCF CCF — — — — — — 49 — — — — — — 253 201 273 152 351 9,879 9,282 63,751 58,909 Undrawn Undrawn ¥ 349 ¥ 74,757 ¥ 68,908 ¥ 211 Commitment Commitment — — 87 52 — — 72 39 160 382 311 748 198 669 318 328 2,147 6,704 3,219 5,450 2,963 3,705 Off_EAD Off_EAD ¥ 87,121 ¥ 100,819 ¥ 85,526 ¥ 71,663 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — — 879 982 7,730 5,403 1,026 1,700 1,384 1,363 7,921 5,486 6,086 2,848 1,989 86,082 11,577 93,319 80,770 110,710 2010 2011 On_EAD On_EAD ¥ 1,953,128 ¥ 1,729,656 ¥ 1,955,742 ¥ 2,159,533 Millions of Yen Millions of Yen Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel — — — — — — — — — — RW RW 29.67% 53.88% 61.82% 34.28% 32.98% 55.57% 59.30% 43.16% 81.26% 25.84% 21.59% 323.23% 141.99% 115.27% 149.35% 337.63% — — — — LGD LGD 53.22% 53.59% 46.28% 54.39% 54.39% 49.85% 53.84% 53.65% 53.65% 48.74% 51.19% 53.30% 46.71% 46.96% 46.96% 49.85% 43.26% 42.38% 54.60% 48.74% 100.00% 100.00% — — — — PD PD 0.31% 1.46% 1.34% 0.36% 1.05% 0.71% 9.12% 0.99% 1.52% 1.32% 0.26% 37.46% 27.59% 15.54% 37.58% 26.87% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 2. “Overdue” denotes credits less than three months overdue. 2. “Overdue” denotes credits less than three months overdue. 2. “Overdue” denotes credits less than three months overdue. of Risk-Weights (RW), Exposure At Default (EAD) of On-balance sheet asset items (On-EAD), EAD of Off-balance sheet asset items (On-EAD), Exposure At Default (EAD) of On-balance of Risk-Weights (RW), Factor (CCF) weighted average of Credit Conversion (Off-EAD), undrawn commitment, and sheet asset items exposures commitment, by exposure pool for retail applied to undrawn Current Overdue Default Overdue Default Current Overdue Default Current Overdue Default Current Overdue Default Current Overdue Default Current Overdue Default Current Current Overdue Default Total Other Retail (commercial) Other Retail (consumer) Qualifying Revolving Retail Residential Mortgage Total Other Retail (commercial) Other Retail (consumer) Qualifying Revolving Retail Residential Mortgage As of March 31 As of March 31 Notes: 1. LGD estimates include EL default amounts for exposures in default. Notes: 1. LGD estimates include EL default amounts for exposures in default. (5) Weighted average of Probability of Default (PD), weighted average of Loss Given Default (LGD), weighted average (PD), weighted average of Loss Given average of Probability of Default Weighted (5) 498 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Credit RiskMitigationTechniques 1. Estimated creditlossesaretheaverageofestimatescalculatedasMarch31andSeptember30,from31,2007t Notes: Estimated CreditLossesforPortfoliostowhichtheIRBApproachisApplied classified asspecialmentioncategoryorbelow. allowance forloanlossesresultedfromdebtorupgradesandadeclineinthebalanceofdebtorswhichhad been for loanlossestheeffectsofGreatEastJapanEarthquake,and,onotherhand,duetoreversal of Factor Analysis Note: Oftotalcreditcosts,onlythosethatcanbeidentifiedasstemmingfromspecifiedassetclassesareshowninthetable. Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Amounts ofExposurestowhichCreditRiskMitigationTechniques areApplied Actual Credit Losses intheCurrentPeriodandYear-on-YearChangeforPortfoliostowhichIRBApproachisApplied As ofMarch31 Years EndedMarch31 Portfolios towhichtheIRBApproachisApplied Portfolios towhichtheStandardizedApproachisApplied Retail Exposures Equity ExposuresunderthePD/LGDApproach Bank Exposures Sovereign Exposures Corporate Exposures Retail Exposures Equity ExposuresunderthePD/LGDApproach Bank Exposures Sovereign Exposures Corporate Exposures This wasmainlyduetothedowngradeofsomelargedebtorsinborrowerclassificationandpostingallowance Losses infiscalyear2010increasedby¥16.4billiononyear. Other RetailExposures Qualifying RevolvingRetailExposures Residential MortgageExposures Bank Exposures Sovereign Exposures Corporate Exposures 2. ActualcreditlossesarethesumofforoneyearendedMarch31,2011. es forretailexposuresaretheaverageofestimatescalculatedasMarch31andSeptember30,from31,2008throughMa Actual Credit 10,978 ¥ Losses 536 (30) — 9 2011 Eligible Financial ¥— Write-backs (11,440) ¥ Collateral 1,122,989 929,710 193,189 (433) (30) — — 90 — — — Millions ofYen Other Eligible IRB Collateral Actual Credit ¥— (5,492) ¥ 265,429 269,803 Losses 4,374 647 (75) (12) — Millions ofYen — — — — hrough March31,2011.Estimatedcreditloss- 2011 2010 Estimated Credit Write-backs urnesCreditDerivatives Guarantees rch 31,2011. ¥— 152,761 ¥ (38,246) ¥ 138,316 163,416 302,933 Losses 10,861 1,200 Non-consolidated (498) 543 596 373 (75) (12) Millions ofYen — — — — Actual Credit Actual Credit Change in 10,978 ¥ 16,471 ¥ Losses Losses ¥— (111) — — — — — — — 536 (30) (17) 84 — — 9 Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 499 — — — — — — — — — — — — — — — — — — — 41,599 29,561 78,400 908,639 263,375 221,775 884,727 107,961 2010 2010 29,561 29,561 1,148,102 3,790,562 (3,551,098) ¥— ¥ 29,561 ¥— ¥ 3,105,240 — — — — — — — — — — — — 47 47 500 — — — — Millions of Yen Millions of Yen 4,701 4,701 Non-consolidated 72,990 67,574 783,021 215,526 142,536 952,960 2011 2011 181,903 114,329 3,475,411 1,168,486 (3,090,446) ¥— Guarantees Credit Derivatives ¥— ¥— ¥ 2,515,104 2010 — — — — Millions of Yen 7,956 291,433 283,477 ¥— IRB Collateral Other Eligible Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — 25,889 134,761 845,391 1,006,041 Collateral ¥— Eligible Financial Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel Providing Protection by First-to-Default Credit Derivatives Providing Protection by Second-to-Default Credit Derivatives Purchase of Protection by Credit Default Swaps Purchase of Protection by Total Return Swaps Purchase of Protection by First-to-Default Credit Derivatives Purchase of Protection by Second-to-Default Credit Derivatives Providing Protection by Credit Default Swaps Providing Protection by Total Return Swaps Credit Derivatives to Close-out Netting Contracts (Deduction) Effect of Mitigating Credit Equivalents Due Deposits Securities Foreign Exchange Related Interest Rate Related Gold Related Equity Related Precious Metals (Excluding Gold) Related Other Commodities Related Corporate Exposures Corporate Exposures Sovereign Exposures Bank Exposures Exposures Residential Mortgage Qualifying Revolving Retail Exposures Other Retail Exposures Aggregate Sum of Amounts of Gross Reconstruction Costs (limited only to those not below zero) Aggregate Sum of Amounts of Gross Reconstruction Costs (limited only to those not Technique Credit Equivalents Before Effect of Mitigation by Collateral under the Credit Risk Mitigation Amounts of Collateral Technique Credit Equivalents After Effect of Mitigation by Collateral under the Credit Risk Mitigation Notional Principal Amounts of Credit Derivatives Used to Allow for the Effect of Credit Risk Mitigation Technique Notional Principal Amounts of Credit Derivatives Used to Allow for the Effect of Credit Risk Mitigation Credit Equivalents After Effect of Mitigation by Collateral under the Credit Risk Mitigation Technique Credit Equivalents After Effect of Mitigation Equivalents Notional Principal Amounts of Credit Derivatives Subject to the Calculation of Credit Amounts of Collateral Aggregate Sum of Amounts of Gross Reconstruction Costs (limited only to those not below zero) Aggregate Sum of Amounts of Gross Reconstruction by Collateral under the Credit Risk Mitigation Technique Credit Equivalents Before Effect of Mitigation Portfolios to which the IRB Approach is Applied Portfolios to which the Portfolios to which the Standardized Approach is Applied Portfolios to which the As of March 31 As of March 31 As of March 31 Note: Credit equivalents are calculated with the current exposure approach. (2) Long-term settlement transactions Note: Credit equivalents are calculated with the current exposure approach. (1) Derivative transactions Counterparty Risk in Derivative and Long-termCounterparty Risk in Derivative Settlement Transactions 500 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Securitization ExposuresOriginatedbySTB Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. data relatedtothissecuritizationtransaction. (1) Outlineofsecuritizationsduringfiscalyear2010,typeandstatusprincipalunderlyingassets Fiscal Year2010 Securitization Exposures (3) Cumulative total ofunderlyingassetsoverdueforthreemonthsorlongerindefaultrelatedtosecuritizationexpo- (3) (2) Amountsofsecuritizationexposuresheldandbreakdownprincipalunderlyingassetsbytype Year EndedMarch31 Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans As ofMarch31 Total Accounts Receivable, OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-Secured Loans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Date ofRedemption: Initial IssueAmount: Type ofTransaction: atthetimeofsecuritization Aggregate SumofUnderlyingAssets: Type ofUnderlyingAssets: Date ofSecuritization: STB holdspartoftheexposuresrelatedtothissecuritizationtransaction,andquantitativedatain(2)–(9)belowinclude sures held,cumulativetotaloflosses,andtheirbreakdowns bytypeofprincipalunderlyingassets Subordinated BeneficiallyNotes Preferred BeneficiallyNotes so ac 31,2011 as ofMarch ¥ 30,000million ¥ 32,620million Asset transfer-typesecuritizationtransaction ¥ 29,547million ¥ 32,620million Mortgage Loans 2010 June pi 2050 April ¥ 2,620million(norating) (Aaa/Moody’s, AAA/S&P) Cumulative TotalofUnderlying Months orLongerinDefault 24,285 ¥ 24,285 ¥ Exposure Amounts Assets OverdueforThree — — — — — — 183 ¥ 183 ¥ — — — — — — 169,399 ¥ 169,399 ¥ Aggregate SumofUnderlyingAssets Millions ofYen Millions ofYen December 2050 ¥ 3,459million(norating) ¥ 42,600million ¥ 46,059million Asset transfer-typesecuritizationtransaction ¥ 44,571million ¥ 46,059million Mortgage Loans March 2011 — — — — — — 2011 2011 Transfer-Type Securitization Transaction 169,399 ¥ 169,399 ¥ Cumulative TotalLosses Asset (AAA/S&P, Aaa/Moody’s) Non-consolidated — — — — — — 55 ¥ 55 ¥ — — — — — — Securitization Transaction Synthetic ¥— ¥— — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 501 — — — — — — — — — — — — — — — — — — — 288 2,273 2011 2011 ¥ 2,561 ¥ 2,561 ¥ 4,966 ¥ 288 ¥ 4,966 ¥ 288 Millions of Yen Millions of Yen 2011 — — — — — — — Millions of Yen 288 23,997 Balance Required Capital ¥ 24,285 ¥ 24,285 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel of the Notification, Article 247 Over 100% and Less than 1,250% Capital Deduction Over 20% and 100% or Less Over 20% and 100% than 1,250% Over 100% and Less Capital Deduction 20% or Less Over 20% and 100% or Less 20% or Less Not applicable. Claims on Lease Payments Accounts Receivable, Other Claims on Corporates Total Auto Loans, Other Loans to Individuals Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Housing Loans Credit Card Loans, Consumer Loans Accounts Receivable, Other Claims on Corporates Accounts Receivable, Other Claims on Corporates Total Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Claims on Lease Payments Housing Loans Credit Card Loans, Consumer Loans Auto Loans, Other Loans to Individuals Total Risk-Weight Category (Standardized Approach) Risk-Weight Category (Standardized Approach) Risk-Weight Category (IRB Approach) Risk-Weight Category As of March 31 As of March 31 As of March 31 (7) Items by type of principal underlying assets of securitization exposures with early redemption clauses Items by type of (7) (6) Amounts of securitization exposures by type of principal underlying assets deducted from capital under provisions Amounts of securitization exposures by type of principal underlying assets (6) (5) Amounts equivalent to the increase in capital following securitization and breakdown by type of principal underlying assets equivalent to the increase in capital following securitization and breakdown Amounts (5) (4) Balance and amounts of required capital of securitization exposures held by risk-weight category of required capital of securitization (4) Balance and amounts 502 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. (1) Outlineofsecuritizationsduringfiscalyear2009,typeandstatusprincipalunderlyingassets Fiscal Year2009 data relatedtothissecuritizationtransaction. (9) (9) Amounts ofcreditrisk-weightedassetscalculatedwith theapplicationoftransitionalmeasureswithrespecttosecu- (8) Amounts ofgains/lossesonsale (2) Amountsofsecuritizationexposuresheldandbreakdownprincipalunderlyingassetsbytype As ofMarch31 Year EndedMarch31 Total Accounts Receivable,OtherClaims onCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Type ofTransaction: atthetimeof securitization Aggregate SumofUnderlyingAssets: Type ofUnderlyingAssets: Date ofSecuritization: Date ofRedemption: Initial IssueAmount: STB holdspartoftheexposuresrelatedtothissecuritizationtransaction,andquantitativedatain(2)–(9)belowinclude Not applicable. ritization exposures down bytypeofprincipalunderlyingsssets Subordinated BeneficiallyNotes Preferred BeneficiallyNotes so ac 31,2011 as ofMarch following securitization transactionsrecognizedduringfiscalyear2010andbreak- December 2050 ¥ 2,980million(norating) ¥ 30,000million ¥ 32,980million Asset transfer-typesecuritizationtransaction ¥ 32,472million ¥ 32,980million Mortgage Loans April 2010 Exposure ¥ 16,534 16,534 ¥ 16,534 ¥ Amounts — — — — — — (AAA/S&P, Aaa/Moody’s) 110,164 ¥ 110,164 ¥ Aggregate SumofUnderlyingAssets Millions ofYen — — — — — — 2010 Transfer-Type Securitization Transaction 110,164 ¥ 110,164 ¥ Asset — — — — — — Millions ofYen Securitization Transaction Synthetic 4,805 ¥ 4,805 ¥ ¥— ¥— 2011 — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 503 — — — — — — — — — — — — 643 317 1,231 2010 ¥ 2,192 ¥ 2,192 ¥ 2,614 ¥ 2,614 Millions of Yen — — — — — — 2010 ¥ 113 ¥ 113 — — — — — — Millions of Yen 317 7,700 8,516 Cumulative Total Losses Balance Required Capital ¥ 16,534 ¥ 16,534 2010 Millions of Yen — — — — — — ¥ 104 ¥ 104 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Assets Overdue for Three Assets Overdue for Three Months or Longer or in Default Cumulative Total of Underlying Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel sures held, cumulative total of losses, and their breakdowns by type of principal underlying assets total of losses, and their breakdowns sures held, cumulative Amounts equivalent to the increase in capital following securitization and breakdown by type of principal underlying assets Amounts equivalent to the increase in capital following securitization and breakdown Capital Deduction 20% or Less Over 20% and 100% or Less Over 100% and Less than 1,250% Capital Deduction 20% or Less Over 20% and 100% or Less Over 100% and Less than 1,250% Accounts Receivable, Other Claims on Corporates Total Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Claims on Lease Payments Housing Loans Credit Card Loans, Consumer Loans Auto Loans, Other Loans to Individuals Total Risk-Weight Category (Standardized Approach) Risk-Weight Category (Standardized Approach) Risk-Weight Category (IRB Approach) Total Loans and Bonds to Corporates Claims on Lease Payments Accounts Receivable, Other Claims on Corporates Credit Card Loans, Consumer Loans Credit Card Loans, Consumer to Individuals Auto Loans, Other Loans Commercial Real Estate-Secured Loans Housing Loans As of March 31 As of March 31 Year Ended March 31 (3) default related to securitization expo- for three months or longer or in total of underlying assets overdue Cumulative (5) (4) Balance and amounts of required capital of securitization exposures held by risk-weight category (4) Balance and amounts of required capital 504 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (9) Amounts ofcreditrisk-weightedassetscalculatedwiththeapplicationtransitionalmeasures withrespectto (8) Amounts ofgains/lossesonsale (7) Items bytypeofprincipalunderlyingassetssecuritizationexposureswithearlyredemptionclauses (6) Amounts ofsecuritizationexposuresbytypeprincipalunderlyingassetsdeductedfromcapitalunderprovisions Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Year EndedMarch31 As ofMarch31 Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Total Accounts Receivable,OtherClaimsonCorporates Claims onLeasePayments Loans andBondstoCorporates Commercial RealEstate-SecuredLoans Auto Loans,OtherLoanstoIndividuals Credit CardLoans,ConsumerLoans Housing Loans Not applicable. Not applicable. securitization exposures of theNotification,Article247 down bytypeofprincipalunderlyingassets following securitization transactionsrecognized during fiscal year 2009 and break- and fiscal year2009 during Millions ofYen Millions ofYen 317 ¥ 317 ¥ 2,058 ¥ 2,058 ¥ 2010 2010 — — — — — — — — — — — — Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 505 — — — — — — — — 566 171 4,909 4,315 6,615 8,480 2,712 7,308 1,000 68,236 41,792 57,412 2010 2010 210,679 ¥ 24,321 ¥ 359,650 ¥ 24,321 ¥ 741,050 ¥— ¥ 8,480 2010 — — — — — — — — — 53 Millions of Yen Millions of Yen 8,480 8,017 2,285 85,131 16,142 11,119 35,132 12,206 37,396 2011 2011 631,296 173,030 Balance Required Capital ¥ 741,050 ¥ 741,050 ¥— ¥ 11,173 ¥ 258,361 ¥ 526,429 Exposure Amounts Exposure Amounts — — — — — Millions of Yen 3,217 3,127 5,781 11,173 ¥ 23,299 ¥ 23,299 2011 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report — — — — — 61,272 14,718 11,173 439,265 Balance Required Capital ¥ 526,429 ¥ 526,429 Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel ritization exposures of the Notification, Article 247 Capital Deduction 20% or Less Over 20% and 100% or Less Over 100% and Less than 1,250% Capital Deduction 20% or Less Over 20% and 100% or Less Over 100% and Less than 1,250% Not applicable as of the end of March 2011 and the end of March 2010. Claims on Lease Payments Accounts Receivable, Other Claims on Corporates Total Auto Loans, Other Loans to Individuals Commercial Real Estate-Secured Loans Loans and Bonds to Corporates Housing Loans Credit Card Loans, Consumer Loans Total Risk-Weight Category (Standardized Approach) Risk-Weight Category (Standardized Approach) Risk-Weight Category (IRB Approach) As of March 31 As of March 31 Total Loans and Bonds to Corporates Claims on Lease Payments Accounts Receivable, Other Claims on Corporates Credit Card Loans, Consumer Loans Credit Card Loans, Consumer to Individuals Auto Loans, Other Loans Commercial Real Estate-Secured Loans As of March 31 Housing Loans (1) Amounts of securitization exposures held and breakdown of principal underlying assets by type of principal underlying assets by exposures held and breakdown (1) Amounts of securitization (4) Amounts of credit risk-weighted assets calculated with the application of transitional measures with respect to secu- Amounts of credit risk-weighted assets calculated with (4) (3) Amounts of securitization exposures by type of principal underlying assets deducted from capital under provisions Amounts of securitization exposures (3) (2) Balance and amounts of required capital of securitization exposures held by risk-weight category (2) Balance and amounts of required capital Securitization Exposures Purchased by STB Securitization Exposures 506 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. • Marketriskinfiscalyear2010 Note: Asshownabove,forfiscalyear2010backtestingofthetradingaccountsshows zeroinstancesoflossesinexcessVaR VaR MeasurementStandards Note: Si (For theApril2010-March2011Period) Market Risk iclYa 00FiscalYear2009 Fiscal Year2010 • Backtestingofthetradingaccount (2) ResultsofbacktestingandreasonsforlargedeviationsbetweenactuallossesVaR Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report (1) EndofperiodValueatRisk(VaR)andmaximum,minimummeanVaRforthe Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Mean Minimum Maximum As ofMarch31,2011
Profit/Loss Compared with the Preceding Day ObservationPeriod:1Year HoldingPeriod:1businessday ObservationPeriod:1Year Confidence Interval:One-tailed99% HoldingPeriod:21businessdays ConfidenceInterval:One-tailed99% Trading Account Banking Account (Billions of Yen) VaR increasedby¥144.5billion,¥133.9and¥140.7respectively. lion. FortheApril2010toMarch2011period,maximum,minimumandmean account. Accordingly,valueatriskasofMarch31,2011,increasedby¥140.1bil- － － － nce March31,2011,cross-heldstockshavebeenincludedinthebanking 1.5 1.0 0.5 0.0 0.5 1.0 1.5 (The latest250businessdaysincludingthecalculationreference date.) . . 1.5 1.0 0.0 Profit/Loss andVaR ScatterDiagram 0.5 (Billions ofYen) Banking Account ¥ 221.2billion 213.2 billion 184.6 billion 246.2 billion VaR Trading Account ¥ 1.0billion 0.8 billion 0.4 billion 1.4 billion (For theApril2009-March2010Period) • Marketriskinfiscalyear2009 Mean Minimum Maximum As ofMarch31,2010 Profit/Loss Compared with the Preceding Day (Billions of Yen) － － － － － 2.5 2.0 1.5 1.0 0.5 0.0 0.5 1.0 1.5 2.0 2.5 (The latest250businessdaysincludingthecalculationreference date.) . . . . 2.5 2.0 1.5 1.0 0.0 Profit/Loss andVaR ScatterDiagram 0.5 . (Billions ofYen) Banking Account ¥ 75.5billion 109.3 billion 147.8 billion VaR 71.6 billion Non-consolidated Trading Account ¥ 0.5billion 0.8 billion 0.3 billion 2.3 billion Financial Summary/ Financial Data/ Basel II Qualitative Disclosure Data/ Basel II Quantitative Disclosure Data/
The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. 507 18,571 Written-off 52,155 47,003 2010 466,691 177,070 Fair Value ¥ 695,918 ¥ 491,992 Losses 65,193 2,048 2010 Millions of Yen Not applicable Gains Non-consolidated 12,779 47,003 48,700 2011 424,091 180,466 ¥ 491,992 Book Value ¥ 653,259 (7,839) Gains/Losse Millions of Yen 45,427 6,934 Written-off ¥ 470,469 45,072 2011 Losses 2,314 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Not applicable 45,427 Gains 3,022 ¥ 470,469 Book Value Value Fair Basel II Quantitative Disclosure Data: The Sumitomo Trust and Banking Co., Ltd. Co., and Banking Trust Sumitomo Data: The Disclosure II Quantitative Basel (6,226) Gains/Losse 2 1 “Listed Stock Exposures” “Listed Stock Exposures” Portfolios Adopting the PD/LGD Approach Portfolios Adopting the PD/LGD Approach Outstanding Shares Held Portfolios Adopting the Market-based Approach in the Non-consolidated Balance Sheets and not Recognized in the Non-consolidated Balance Sheets and in the Non-consolidated Statements of Income Statements of Income in the Non-consolidated Balance Sheets and Listed Stock Exposures Listed Stock Exposures or Equity Exposures not included in Capital Subscriptions of Capital Subscriptions or Equity Exposures* Amounts by Portfolio Category* As of March 31 Amounts of Unrealized Gains/Losses not Recognized Amounts of Unrealized Gains/Losses not Amounts of Unrealized Gains/Losses Recognized Amounts of Unrealized Gains/Losses Recognized As of March 31 and Fair Values* Non-consolidated Book Amounts of Gains/Losses on Sales and Write-offs Amounts of Gains/Losses on Sales and Write-offs * Amounts by portfolio category show exposures subject to the calculation of credit risk-weighted assets. * Amounts by portfolio category show exposures subject *1. Figures for available-for-sale securities include only Japanese and foreign stocks. *1. Figures for available-for-sale securities include only gains/losses on stock holdings and related write-offs. *2. Non-consolidated statements of income figures for Capital Subscriptions or Equity Exposures in the Banking Account in the or Equity Exposures Capital Subscriptions 508 Basel II Quantitative Disclosure Data/ Basel II Qualitative Disclosure Data/ Financial Data/ Financial Summary/ The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo MitsuiTrustHoldings, Inc.2011Annual Report 1. STB’s interestratefluctuationscenarioassumesanshockconsistingofthe1stand99thpercentilet Notes: Exposures HeldinFundsasCredit Risk-Weighted Assets Basel IIQuantitativeDisclosureData:TheSumitomoTrustandBankingCo.,Ltd. Note: Exposuressubjecttothecalculationofcreditrisk-weightedassetsareshown. Management UsedbySTBRegarding Interest RateRiskintheBankingAccount Gains/Losses andChangesinEconomicValue Control DuetoInterest RateShocksundertheInternal • Outlierratio As ofMarch31 Aggregate SumofExposuresHeldinFunds As ofMarch31 Outlier Ratio Overall AmountsofInterestRateRisk Others Probability Approach Internal ModelsApproach Investment CriteriaFormula Simple MajorityFormula Look-through Approach Euro InterestRate U.S. DollarInterestRate Japanese YenInterestRate 2. Our riskmeasurementmethodusestheinterestratesensitivity approach.Coredepositsaredefinedasthelowestoffoll ing periodandaminimumobservationoffiveyears. flow ofdepositsinthepastfiveyearsfromcurrentbalancedeposits,or3)amountequivalentto50% the five-yearmaturity(anaveragetermof2.5years):1)lowestbalancedepositsinpastfiveyears,2) he fluctuationrangemeasuredforaoneyearhold- afterdeductingthemaximumannualout- balanceofdeposits. owing threeitems,asanupperlimit,for ¥ 65.5billion 170,739 ¥ 63.1 billion 1.1 billion 0.0 billion 118,329 2011 2011 13,086 36,638 2,685 Non-consolidated Non-consolidated 3.3% Millions ofYen — — ¥ 28.1billion 242,360 ¥ 18.1 billion 0.5 billion 9.4 billion 176,838 2010 2010 13,486 11,681 33,642 6,710 1.5% — Stock Information (as of April 1, 2011)
Major Shareholders (Common Shares)
Number of Shares Held Shareholding Ratio Shareholder Name (Shares) (%) 1 The Resolution and Collection Corporation 500,875,000 12.05 2 Japan Trustee Services Bank, Ltd. (Trust Account) 229,525,420 5.52 3 The Master Trust Bank of Japan, Ltd. (Trust Account) 213,961,540 5.15 4 The Bank of New York Mellon as Depositary Bank for Deposit Receipt Holders 77,686,531 1.87 5 SSBT OD05 OMNIBUS ACCOUNT – TREATY CLIENTS 61,348,397 1.47 6 Government of Singapore Investment Corporation P Limited 48,741,798 1.17 7 State Street Bank and Trust Company 505225 47,769,920 1.15 8 Mellon Bank N.A. as Agent for its Client Mellon Omnibus US Pension 45,761,280 1.10 9 Japan Trustee Services Bank, Ltd. (Trust Account 9) 40,239,210 0.96 10 KUBOTA Corporation 32,756,160 0.78
(Note) The shareholding ratio displayed is rounded down to second decimal places.
Composition of Shareholders (Common Shares)
Individuals and Others 7.73%
Financial Institutions 38.00% Foreign Investors 32.27%
Securities Companies 2.61% Other Domestic Companies 19.40%
ADR (American Depositary Receipts) Information Other Data ADR: Underlying Share Ratio 1:1 Authorized Shares: Exchange: OTC (Over-the-Counter) Common Shares: 8,500,000,000 Shares Symbol: SUTNY Preferred Shares: 600,000,000 Shares CUSIP: 86562X106 Number of Shares issued: Level of Program: Level I Common Shares: 4,153,486,408 Shares Depositary: The Bank of New York Mellon Depositary Preferred Shares: 109,000,000 Shares Receipts Division Number of Shareholders: 101 Barclay Street, 22nd Floor, New York, Common Shares: 87,430 NY 10286, U.S.A. Preferred Shares: 25 Telephone: 1 (201) 680-6825 U.S. toll free: 888-269-2377 (888-BNY-ADRS) Facsimile: 1 (212) 571-3050/3051/3052 http://www.adrbnymellon.com
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 509 Disclosure Policy
Sumitomo Mitsui Trust Holdings, Inc. is fully aware of the importance of its social responsibility and public mission, and constantly seeks to secure unwavering trust from society through sound management based on rigorous self-disci- pline. For this purpose, we endeavor to ensure appropriate disclosure of corporate information to assure the trans- parency of our corporate management.
Attitude toward Disclosure
We not only comply strictly with various laws and rules, such as the Companies Act, the Banking Law and the Financial Instruments and Exchange Act (including the rules for timely disclosure of corporate information, etc., defined by securi- ties exchanges on which our shares are listed), but also endeavor to disclose corporate information that helps our clients, shareholders, and investors better understand our corporate group, under the basic conditions of appropriate timing, accuracy and fairness, and realize highly transparent management. We do not release personal information, client data or any information, the disclosure of which violates the rights of the parties concerned by such action.
Disclosure Methods
When disclosing information, we make active use of the Internet, various publications and other media tools to reach the broadest possible number of interested parties, whether clients, shareholders or investors, in or outside Japan, in a timely, accurate and fair manner. In the disclosure of various materials, we strive to provide easy-to-understand explanations of the main points of our corporate group’s management policies, business results, finance situation, etc. We explain these main points at our information meetings, etc.
Establishment of Disclosure System
We maintain and promote the appropriate disclosure system by such means as the establishment of an Information Disclosure Committee to ensure disclosure of the Group’s information in accordance with the above disclosure policy.
510 Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report Corporate Information (as of April 1, 2011)
Registered Trade Name: Sumitomo Mitsui Trust Holdings, Inc.
Headquarters Location: GranTokyo South Tower, 9-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6611, Japan
Date of Establishment: February 1, 2002 (Change of trade name: April 1, 2011)
Main Business: With trust banking at its core, Sumitomo Mitsui Trust Holdings, Inc., will focus on the man- agement of business operations, as the holding company of Sumitomo Mitsui Trust Group, and sets the following (1) - (6) as its key functions:
(1) Formulating group management strategy
(2) Allocation of management resources
(3) Monitoring administration of business activities
(4) Supervising risk management
(5) Supervising compliance management
(6) Managing internal auditing
Capital: 261,608,725,000 Yen
Stock Exchange Listings: Tokyo, Osaka and Nagoya Stock Exchanges Tokyo (Primary), Osaka (Primary), Nagoya (Primary)
Securities Code: 8309
Rating Information* (as of August 24, 2011) * The table below reflects downgrades by Moody’s on August 24, 2011.
S&P Moody’s Fitch JCR R&I Long- Short- Long-term Short- Long- Short- Long- Short- Long- Short- term term Deposit term term term term term term term The Sumitomo Trust and Banking A+ A-1 A1 P-1 A F1 AA- — A+ a-1 The Chuo Mitsui Trust and Banking A+ A-1 A2 P-1 A F1 AA- — — — Chuo Mitsui Asset Trust and Banking — — A2 P-1 — — AA- — — —
(Note) Sumitomo Mitsui Trust Holdings, Inc., has not obtained any rating.
Contact IR: Telephone: +81 (3) 3286-8354 Facsimile: +81 (3) 3286-4654 e-mail: [email protected] URL: http://www.smth.jp/en/ir/index.html
Sumitomo Mitsui Trust Holdings, Inc. 2011 Annual Report 511 This annual report was printed with vegetable-based ink