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

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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

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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

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Sumitomo Mitsui Trust Holdings Inc. published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 15:38:07 UTC.