Sumitomo Mitsui Trust : 2020 Integrated Report - Annual Report -

2020 INTEGRATED REPORT

-ANNUAL REPORT-

Year ended March 31, 2020

Reason for Existence ("Purpose")

Creating new value with the power of trusts and

let prosperous future for our clients and society bloom

Management Principles ("Mission")

(I) Swiftly provide comprehensive solutions to our clients by fully utilizing the significant expertise and comprehensive capabilities.

1. Adhere to the principles of sound management based on a high degree of self-discipline with the background of fiduciary spirit and establish strong credibility from society.

1. Strive to fulfill all shareholder expectations by creating distinct values through fusing the various functions 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 fiduciary spirit and with significant expertise and comprehensive capabilities, the 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 the 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 improvement 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 corporate 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.

Truthfulness and Loyalty

Completely

Client-oriented

Trust and Creativity

Realization of

Organizational

Capability

	Dedication and Development
The Trust Bank	Contribution
to Society

Self-help and Self-discipline

Establishment

of Individuality

The Group's logo, known as the "future bloom," symbolizes our purpose "Creating new value with the power of trusts and let prosperous future for our clients and society bloom." The four translucent petals represent our mission to our stakeholders; namely, clients, soci- ety, shareholders, and employees. The four different colors symbolize the values that make up our Codes of Conduct-natural green for "truthfulness and loyalty," golden orange for "dedication and development," blue-green for "trust and creativity," and sky blue for "self- help and self-discipline."

Three of the words in the Group's values-"truthfulness and loyalty," "dedication and development," and "trust and creativity"-are drawn from the principles and slogans handed down unbroken from each trust bank prior to the merging of the Group. "Truthfulness and loyalty" has its origins in the founding prospectus of The Sumitomo Trust and Banking Co., Ltd., "dedication and development" was the founding spirit of The Mitsui Trust and Banking Co., Ltd. and "trust and creativity" comes from the corporate slogan of The Chuo Trust and Banking Co., Ltd. They are also assets that embody an entrepreneurial spirit and crystallization of passion and diligence towards trusts inherited in each trust bank that now form the foundation of the Group.

Each and every director, officer, and employee of the Group pledges to seriously embrace these assets and spirit and soundly hand them down to future generations. This is why we have incorporated the Group's values into our logo. The "future bloom" logo represents our desire to let prosperous future for our clients and society bloom, as well as our commitment to ensuring that the assets built up by our predecessors will bloom in the future.

Sumitomo Mitsui Trust Holdings, Inc. 2020 Integrated Report	1

Editorial Policy

The Sumitomo Mitsui Trust Group publishes this integrated report so that readers can better understand how the Group's initiatives on creating shared value aim to achieve sustainable growth and deliver value to all stakeholders. In this report, after providing an overview of the Group's medium- to long-term vision, we discuss our business strategy as a financial group specialized in trust banking, our environmental, social, and governance (ESG) initiatives, and the management foundation that underpins them. In applying our editorial approach, we strive to improve and expand not just financial information but also non-financial information such as business models and ESG factors, referencing the integrated reporting framework issued by the International Integrated Reporting Council (IIRC). We also disclose information appropriately, in accordance with our disclosure policy.

For more detailed financial data or ESG information, please refer to the Financial Data Section, our ESG Report, or visit our website.

Reporting Period: From April 1, 2019 to March 31, 2020 (Partially including the information after April 1, 2020)

Scope of Reporting: The Sumitomo Mitsui Trust Group; including Sumitomo Mitsui Trust Holdings, Inc., Sumitomo Mitsui Trust Bank, Limited, other subsidiaries and affiliated companies

2	Sumitomo Mitsui Trust Holdings, Inc. 2020 Integrated Report

CONTENTS

Top Message	4	Top Message
Group Overview	10	History of trusts and the SuMi TRUST Group
	12	Group Information
	14	Financial Highlights
	15	Non-financial Highlights
Vision	16	Value Creation Process
	18  Creation of Impacts
	20  Circulation of Capital and Materiality Management
	22  Medium-Term Management Plan (FY2020-2022)
	28  Message from Head of Finance
	32  Special Feature1. Initiatives on active participation
		of specialists
	34  Special Feature2. Initiatives to address digitalization
Business Strategy	36	Group Structure
	38  SuMi TRUST Bank - President's Message
	40  Retail Total Solution Services Business
	44  Wholesale Total Solution Services Business
	47  Real Estate Business
	50  Stock Transfer Agency Services Business
	52  Global Markets Business
	54  Wholesale Asset Management Business
	56  Private Banking Business
	58  Asset Formation Advisory, Work Place, Business
	60  Fiduciary Services Business
	62  Asset Management Business
	66  Column What is a trust?
ESG	68	Corporate Governance
	76  External Director Interview
	78  Our Board of Directors and Executive Officers
	80  Initiatives on Key Sustainability Issues
	92  Human Resources Strategy
Management	98	Risk Appetite Framework
Foundation	100	Risk Management
104	Compliance
	106  Compliance with International Financial Regulations
	107	Internal Auditing
	108  Client-Oriented Initiatives
	114  Communication with Shareholders and Investors
	115  Initiatives to Facilitate Financing
Corporate	116	Financial Review
Information	119  Corporate Information, Rating Information, Website

Sumitomo Mitsui Trust Holdings, Inc. 2020 Integrated Report	3