Sumitomo Mitsui Financial : Presentation Material (2,444KB)

Investors Presentation

September 2022

Copyright © 2022 Sumitomo Mitsui Financial Group. All Rights Reserved.

This document contains "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of us and our managements with respect to our future financial condition and results of operations. In many cases but not all, these statements contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "probability," "risk," "project," "should," "seek," "target," "will" and similar expressions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward-looking statements contained or deemed to be contained herein. The risks and uncertainties which may affect future performance include: deterioration of Japanese and global economic conditions and financial markets; declines in the value of our securities portfolio; incurrence of significant credit-related costs; our ability to successfully implement our business strategy through our subsidiaries, affiliates and alliance partners; and exposure to new risks as we expand the scope of our business. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the date of this document. We undertake no obligation to update or revise any forward- looking statements.

Please refer to our most recent disclosure documents such as our annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as our earnings press releases, for a more detailed description of the risks and uncertainties that may affect our financial conditions and our operating results, and investors' decisions.

Exchange rates (TTM)

	Jun. 21	Mar. 22	Jun. 22
USD	110.61	122.41	136.64
EUR	131.63	136.81	142.65

Definitions

SMFG	Sumitomo Mitsui Financial Group, Inc.
SMBC	Sumitomo Mitsui Banking Corporation
SMBC Trust	SMBC Trust Bank
SMFL	Sumitomo Mitsui Finance and Leasing
SMBC Nikko	SMBC Nikko Securities
SMCC	Sumitomo Mitsui Card Company
SMBCCF	SMBC Consumer Finance
SMDAM	Sumitomo Mitsui DS Asset Management
SMBCAC	SMBC Aviation Capital
Major local subsidiaries	SMBC Bank International, SMBC Bank EU,
SMBC (China)
Consolidated	SMFG consolidated
Non-consolidated	SMBC non-consolidated
Expenses	Excluding non-recurring losses
(non-consolidated)
Net business profit	Before provision for general reserve for possible
loan losses
Retail Business Unit (RT)	Domestic retail business
Wholesale Business Unit (WS)	Domestic wholesale business
Global Business Unit (GB)	International business
Global Markets Business Unit

(GM)	Market / Treasury related businesses

Copyright © 2022 Sumitomo Mitsui Financial Group.	2
All Rights Reserved.

Agenda

I

Summary of Financial Results

4

II

Aim for growth with quality

25

III

Capital Policy

36

IV

Initiatives for Sustainability

43

Appendix

48

Copyright © 2022 Sumitomo Mitsui Financial Group.	3
All Rights Reserved.

I. Financial Results

Income statement

Progress rate of 1Q results toward FY3/23 full-year target:

Consolidated net business profit 28%, Profit attributable to owners of parent 35%

				1Q	YoY	FY3/23
		(JPY bn)	FY3/23	target
1	Consolidated gross profit		796.9	+105.1
2	G&A expenses			484.0	+46.0
Overhead ratio			60.7%	(2.6)%
3	Equity in gains (losses)		32.7	+19.4
of affiliates	Progress
4	Consolidated	28%	345.6	+78.5	1,235
	net business profit
5	Total credit cost			32.1	+21.8	210
6	Gains (losses) on stocks		36.8	(3.5)
7	Other income (expenses)		(0.7)	+9.2
8	Ordinary profit			349.7	+62.4	1,060
9	Extraordinary gains (losses)	(1.0)	+1.4
10	Income taxes			94.0	+14.0

Consolidated gross profit: increased YoY due to loan growth and fee income in WS and GB Business Units.

Impact of FX: JPY+ 44 bn.

G&A expenses: increased YoY mainly due to overseas expense related to inflation and resource allocation for strategic investment. Impact of FX: JPY + 21 bn.

Equity in gains of affiliates: increased YoY mainly due to real estate business in SMFL and gains on change in equity related to Bank of East Asia.

Total credit cost: increased due to the rebound of COVID-19 related loan reversal in FY3/22.

No additional cost from exposure to Russia.

Gains on stocks: ETF sales decreased YoY, while gains on sales of strategic shareholdings increased (JPY 22 bn, YoY JPY 19 bn)

Consolidated impact of Fullerton India (Approx. JPY bn)

11	Profit attributable to	35%	252.4	+49.2	730
	owners of parent
12	ROE			10.1%	+1.6%

Consolidated gross profit	+12
G&A expenses	+11*1

Consolidated	+1
net business profit

Total credit cost

+3

Profit attributable to	(3)
owners of parent

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