Sumitomo Mitsui Trust : Notice regarding Policy Decisions on Several Major Items Relating to the Split and Integration of Asset Management Functions

May 11, 2018

To whom it may concern

Sumitomo Mitsui Trust Holdings, Inc. (Securities Code: 8309 TSE, NSE) Sumitomo Mitsui Trust Bank, Limited Sumitomo Mitsui Trust Asset Management Co., Ltd.

Notice regarding Policy Decisions on Several Major Items Relating to the Split and

Integration of Asset Management Functions

Sumitomo Mitsui Trust Holdings, Inc. (Director, President: Tetsuo Ohkubo, hereinafter "SuMi TRUST Holdings") has been preparing for the split of asset management function from Sumitomo Mitsui Trust Bank, Limited (President: Masaru Hashimoto, hereinafter "SuMi TRUST Bank") and the integration with our Group company, Sumitomo Mitsui Trust Asset Management Co., Ltd. (President: Hideki Hiraki, hereinafter "SuMi TRUST AM") (the "Business Split and Integration"), with the purpose of strengthening the asset management business, which is positioned as a growth area for the Sumitomo Mitsui Trust Group. We hereby announce our policy decisions on several major items relating to the newly integrated asset management company (noting that this announcement includes information previously announced).

The Business Split and Integration is subject to regulatory approval, etc.

1. Major Items relating to the Newly Integrated Asset Management Company

Hideki Hiraki

David Semaya

Former Chairman of Nikko Asset Management Current Executive Officer of SuMi TRUST

Yoshio Hishida Holdings and Managing Executive Officer of SuMi TRUST Bank

*1.

Subject to approval at the SuMi TRUST AM Extraordinary General Meeting of Shareholders scheduled for September 2018.

*2. At time of integration, head office functions will be split between two locations (Shiba and Marunouchi). However, it is planned that, progressively from December 2018, these will be consolidated to a new location (Sumitomo Fudosan Onarimon Tower, 1-2-2 Shiba-kouen, Minato-ku).

2. Governance Structure of the Newly Integrated Asset Management Company

For the purpose of providing products and services suitable for the true benefit of clients, SuMi TRUST AM thoroughly conducts client-oriented business operations and implements fiduciary duties across all its operations. We have decided on a policy under which SuMi TRUST AM will, subject to approval of its General Meeting of Shareholders, change from a Company with Corporate Auditors to a Company with Audit and Supervisory Committee, in order to further enhance its corporate governance framework.

We will strive to improve management transparency and objectivity through an increase in the number of independent external directors (Audit and Supervisory Committee members) who are external experts with extensive knowledge, and by the Audit and Supervisory Committee, the majority of members of which will be independent external directors, strengthening its audit and supervisory functions. Also, by delegating decision-making with respect to execution of operations from the Board of Directors to individual Directors, we will continue to endeavor to achieve flexible and agile decision-making that is based on swift business judgment. Furthermore, our policy is to establish a Personnel and Compensation Committee (non-statutory committee) with the intention to fulfill required governance framework level as an asset management company that is part of a financial group.

It is expected that the newly integrated asset management company resulting from the Business Split and Integration will have total assets in excess of 60 trillion yen and will be among the largest in scale in Japan.

3. Future Course of Action

We will continue to prepare for integration. We plan to make an announcement around July 2018 regarding the full details of items such as senior management officers and the organizational structure. Also, SuMi TRUST Bank and SuMi TRUST AM plan to sign a formal agreement that legally-binds both of those parties to the major items relating to the Business Split and Integration, including the internally-approved items set forth in this Notice. We shall announce these items promptly upon the determinations.

[Reference] Overview of the Relevant Parties (as of March 31, 2018)

End

For further information, please contact:

IR Department, Sumitomo Mitsui Trust Holdings, Inc.

Telephone: +81-3-3286-8354