Sumitomo Mitsui Trust : Notice regarding Business Alliance with Tokyo TY Financial Group, Inc., the Bank of Kyoto, the Gunma Bank and the Bank of Yokohama

To whom it may concern

August 29, 2016

- the capital participation of Tokyo TY Financial Group, Inc. in Sky Ocean Asset Management -

Sumitomo Mitsui Trust Bank, Limited (President: Hitoshi Tsunekage; hereinafter "SuMi TRUST Bank"), which is a subsidiary of Sumitomo Mitsui Trust Holdings, Inc. (President: Kunitaro Kitamura; hereinafter "SuMi TRUST Holdings"), hereby announces that on August 29, 2016, it has concluded a strategic relationship agreement (hereinafter "Agreement") with Tokyo TY Financial Group, Inc. (President: Keizo Ajioka; hereinafter "Tokyo TYFG"), the Bank of Kyoto, Ltd. (President: Nobuhiro Doi; hereinafter "BOK"), the Gunma Bank, Ltd. (President: Kazuo Saito; hereinafter "GB") and the Bank of Yokohama (Representative Director and President: Kenichi Kawamura; hereinafter "BOY") regarding the formation of a business alliance among the parties to the Agreement. The Agreement includes terms for the parties to complete a capital participation of Tokyo TYFG in Sky Ocean Asset Management Co., Ltd. (hereinafter "Sky Ocean"), which is an asset management company jointly established by BOY and SuMi TRUST Bank, and in which BOK and GB conducted capital participation.

1. Purpose of the business alliance

   BOY and SuMi TRUST Bank entered into a strategic relationship agreement in October 2014, and in November of the same year established Sky Ocean, an asset management company which provides asset management services and sets up and manages investment products that seek to contribute mid-to-long term and stable asset management in order to enhance the services that support the building of customers' assets.

   BOY and SuMi TRUST Bank have been considering increasing the number of business alliance partners to strengthen Sky Ocean's asset management businesses and to provide high-value-added investment products and services for a wider range of customers, and a strategic relationship agreement was concluded with BOK and GB in July 2016.

   Tokyo TYFG has also been considering business plans including forming a business alliance, to enhance their consulting capabilities in asset management by improving their abilities to provide diversified investment products that suit the needs of their customers. Furthermore, in June 2016,

   Tokyo TYFG and SuMi TRUST Bank entered into a business and capital alliance agreement with the purpose of further enhancing our management base and strengthen our profitability by providing high level financial services to wider variety of needs from Tokyo metropolitan area based customers.

   Tokyo TYFG, BOK, GB, BOY and SuMi TRUST Bank have decided to enter into the Agreement, based on their respective decisions that the business alliance meets their business needs and goals to improve customer services through enhanced asset management capabilities and broadened distribution channels.

2. Contents of the business alliance

3. Outline of the business alliance

   • Sky Ocean will provide Tokyo TYFG with Sky Ocean's investment products that seek to contribute mid-to-long term and stable asset management.

   • SuMi TRUST Bank will provide Tokyo TYFG with SuMi TRUST Bank's knowhow regarding the sales of investment products based on "Core and Satellite Management Strategy" which SuMi TRUST Bank has developed over the years.

4. Assignment of Shares

   BOY and SuMi TRUST Bank will respectively assign their 6% and 9% of shares of Sky Ocean to Tokyo TYFG, in which Tokyo TYFG will acquire 15% of shares of Sky Ocean.

   【Number of shares to be assigned by SuMi TRUST Bank】

   Number of shares owned before the assignment	18,000	(30% of shares outstanding)
   Number of shares to be assigned	5,400	(9% of shares outstanding)
   Number of shares owned after the assignment	12,600	(21% of shares outstanding)

   【Stockholders of Sky Ocean】

   Current	After the assignment (planned)
   BOY	40%	34%
   SuMi TRUST Bank	30%	21%
   BOK	15%	15%
   GB	15%	15%
   Tokyo TYFG	-	15%

5. Schedule

August 29, 2016	Conclusion of the Agreement
September 16, 2016 (planned)	Conclusion and implementation of share assignment agreement

6. Overview of Sky Ocean (As of July 31, 2016)

   Name	Sky Ocean Asset Management Co., Ltd.
   Address	1-1, Minatomirai 3-chome, Nishi-ku, Yokohama, Kanagawa
   Business	Asset management (investment trust management)
   Date of Establishment	November 25, 2014
   Paid-in Capital	JPY 300 million
   Stockholders	BOY (40%), SuMi TRUST Bank (30%), BOK (15%), GB (15%)
   Representative Directors	Tetsunobu Ikeda Toshiyuki Kambe	(Representative Director, President) (Representative Director, Deputy President)

7. Impact on the earnings

This business alliance will have no impact on the earnings forecasts for the fiscal year ending March 2017 of SuMi TRUST Holdings and SuMi TRUST Bank.

End.

For further information, please contact:

IR Department, Sumitomo Mitsui Trust Holdings, Inc. Telephone: +81-3-3286-8354

Facsimile: +81-3-3286-4654