Sumitomo Mitsui : Explanatory Material for 1HFY2015

Table of Contents

Summary of 1HFY2015 financial results

1.

Financial results

---------

Summary 1-3

2.

Financial conditions

---------

Summary 3-5

3.

Forecast for FY2015

---------

Summary 5

Financial figures

1.

Status of profit and loss

---------

1-2

2.

Breakdown of profit by business group

---------

3-4

3.

Major subsidiaries

---------

5

4.

Yields and margins

---------

6

5.

Net gains on securities

---------

6

6.

Unrealized gains/ losses on investment securities

---------

7-8

7.

Maturity ladder of securities

---------

9

8.

Shareholdings

---------

9

9.

Deferred unrealized gains/ losses of derivative transactions qualified for hedge accounting

---------

9

10.

BIS capital adequacy ratio (Basel III, international standard)

---------

10-11

11.

Return on equity (ROE)

---------

11

12.

Loans and Deposits (Banking a/c and principal guaranteed trust a/c combined)

---------

12

13.

Loans (Banking a/c and principal guaranteed trust a/c combined)

---------

13

14.

Problem assets based on the Financial Reconstruction Act

---------

14-15

(Banking a/c and principal guaranteed trust a/c combined)

15.

Self-Assessment and problem assets based on the Financial Reconstruction Act

---------

15

(Banking a/c and principal guaranteed trust a/c combined)

16.

Allowance for loan losses

---------

16

17.

Final disposal of non-performing loans (Banking a/c and principal guaranteed trust a/c combined)

---------

17

18.

Retirement benefits

---------

18

19.

Deferred tax assets

---------

19

---------

20-22

Sumitomo MitsuiTrust Holdings (Consolidated): 'SuMi TRUST Holdings'or'Consolidated' Sumitomo Mitsui Trust Bank (Non-consolidated): 'SuMi TRUST Bank' or 'Non-Consolidated'

Legal Disclaimer

Regarding forward-looking Statements contained in this material

This presentation material contains information that constitutes forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors including but not limited to changes in managerial circumstances. By virtue of the aforementioned reasons, Sumitomo Mitsui Trust Holdings, Inc. hereby cautions against sole reliance on such forward-looking statements in making investment decisions.

Summary of 1HFY2015 financial results

1. Financial Results

1. 'Net business profit before credit costs' increased by 9.7 billion yen from1HFY2014 to 156.7 billion yen due primarily to increase in 'Net fees and commissions and related profit' and decrease in 'General and administrative expenses' in SuMi TRUST Bank.
2. 'Ordinary profit' decreased by 15.0 billion yen from 1HFY2014 to 137.2 billion yen due to non-recurrence of profit from credit cost recovery in 'Total credit costs' posted in 1HFY2014 and decline of 'Net gains on stocks', etc.
3. 'Net income attributable to owners of the parent' increased by 2.2 billion yen from 1HFY2014 to 86.0 billion yen, which represents 52% of forecasted amount of 165.0 billion yen for FY2015 announced in May, due primarily to non-recurrence of extraordinary loss

posted in 1HFY2014 in SuMi TRUST Bank.

[Consolidated]

(Billions of Yen)

1HFY2015

1HFY2014

Change

Forecast for 1HFY2015

Net business profit before credit costs (*1)

1

156.7

147.0

9.7

150.0

Ordinary profit

2

137.2

152.3

(15.0)

130.0

Net income attributable to owners of the parent

3

86.0

83.7

2.2

80.0

Total credit costs

4

0.0

14.5

(14.5)

(10.0)

Net gains on stocks

5

(1.5)

10.9

(12.4)

Return (Net income) on shareholders' equity

6

9.09%

8.99%

0.10%

(Difference from non-consolidated financial results) (*2)

Net business profit before credit costs

7

35.9

35.4

0.4

Net income attributable to owners of the parent (*3)

8

16.9

15.4

1.5

Total credit costs

9

0.1

1.4

(1.2)

Net gains on stocks

10

(0.0)

(0.3)

0.3

(*1) Consolidated net business profit before credit costs = Non-consolidated net business profit before credit costs + Ordinary profits of other subsidiary companies

(non-recurring effect adjusted) + Ordinary profits of affiliates (non-recurring effect adjusted) x Ratio of equity holdings - Intra-group transaction (dividends, etc.)

(*2) Differences between 'Consolidated (SuMi TRUST Holdings)' and 'Non-consolidated (SuMi TRUST Bank)'

1. 'Net business profit before credit costs' increased by 9.2 billion yen from1HFY2014 to 120.8 billion yen due primarily to increase in 'Net fees and commissions and related profit' such as investment trust/insurance related profit and decrease in
2. 'Ordinary profit' decreased by 16.3 billion yen from 1HFY2014 to 101.6 billion yen due to non-recurrence of profit from credit cost recovery in 'Total credit costs' posted in 1HFY2014 and decline of 'Net gains on stocks' , etc.
3. 'Net income' increased by 0.7 billion yen from 1HFY2014 to 69.0 billion yen, which represents 53% of forecasted amount of 130.0 billion yen for FY2015 announced in May, due primarily to non-recurrence of extraordinary loss in relation to banking IT system integration posted in 1HFY2014.

[Non-consolidated]

(Billions of Yen)

1HFY2015

1HFY2014

Change

Forecast for 1HFY2015

Gross business profit

11

239.7

236.3

3.3

Net interest income and related profit

12

115.6

115.0

0.6

Net fees and commissions and related profit

13

98.7

95.5

3.2

Net trading profit

14

8.4

15.0

(6.6)

Net other operating profit

15

16.8

10.7

6.1

Net gains on bonds

16

13.5

20.5

(7.0)

Net gains from derivatives other than for trading or hedging

17

(2.0)

(11.3)

9.3

General and administrative expenses

18

(118.8)

(124.8)

5.9

Net business profit before credit costs

19

120.8

111.5

9.2

115.0

Net non-recurring profit

20

(19.1)

6.4

(25.5)

Banking a/c credit costs

21

(2.3)

(0.1)

(2.1)

Reversal of allowance for loan losses, etc.

22

2.2

13.2

(11.0)

Net gains on stocks

23

(1.4)

11.3

(12.8)

Others

24

(17.5)

(18.0)

0.4

Ordinary profit

25

101.6

117.9

(16.3)

95.0

Extraordinary profit/ loss

26

(0.6)

(46.8)

46.1

IT system integration costs

27

-

(46.6)

46.6

Income before income taxes

28

100.9

71.1

29.8

Total income taxes

29

(31.9)

(2.8)

(29.0)

Net income

30

69.0

68.3

0.7

65.0

Total credit costs

31

(0.1)

13.1

(13.2)

(10.0)

Overhead ratio (-18 / 11)

32

49.60%

52.80%

(3.20%)

(For reference) Overview of business operation

(1) Balance of major accounts (Banking a/c and Principal guaranteed trust a/c combined)

[Non-consolidated]

(Billions of Yen)

Sep. 2015 (1HFY2015)

Mar. 2015 (FY2014)

Change from Mar. 2015

(Ending balance)

1

26,380.1

25,894.3

485.7

Loans and bills discounted

(Average balance)

2

25,505.6

24,498.7

1,006.9

(Ending balance)

3

27,703.4

26,469.5

1,233.8

(Average balance)

4

26,557.7

25,572.4

985.2

(*1) Deposits: Excluding NCD

(2) Yields and margins (Domestic Banking a/c)

[Non-consolidated]

(%)

1HFY2015 (A)

2HFY2014 (B) 1HFY2014

Change from 2HFY2014

(A) - (B)

Loan deposit margin

5

0.65

0.68

0.69

(0.03)

Loans and bills discounted

6

0.86

0.91

0.95

(0.05)

Deposits

7

0.21

0.23

0.26

(0.02)

(3) Status of loans (Banking a/c and Principal guaranteed trust a/c combined)

[Non-consolidated]

(Billions of Yen)

Sep. 2015

Mar. 2015

Change from Mar. 2015

Loans to individuals

8

7,650.7

7,564.2

86.5

Residential mortgage loans

9

7,153.8

7,076.2

77.6

Loans to corporations

10

18,729.3

18,330.1

399.2

Overseas Japanese borrowers

11

3,128.0

2,979.6

148.4

Non-Japanese borrowers

12

3,147.3

2,924.7

222.5

(1) Sales volume and sales balance of investment trust/ insurance

[Non-consolidated]

(Billions of Yen)

1HFY2015 (A)

2HFY2014 (B)

1HFY2014 (C)

Change fm Change fm

2HFY2014 1HFY2014

(A) - (B) (A) - (C)

Total

13

1,007.7

1,167.9

1,059.3

(160.1)

(51.5)

Investment trust

14

619.9

791.4

716.8

(171.5)

(96.8)

Fund wrap, SMA

15

207.9

204.5

186.5

3.3

21.3

Insurance

16

179.9

171.9

155.9

8.0

23.9

(Billions of Yen)

Sep. 2015

Mar. 2015

Change from Mar. 2015

Total

17

5,653.1

5,837.3

(184.1)

Investment trust

18

2,625.4

2,814.0

(188.6)

Fund wrap, SMA

19

841.4

741.2

100.2

Insurance

20

2,186.2

2,282.0

(95.7)

(2) Fees and commissions

[Non-consolidated]

(Billions of Yen)

1HFY2015

1HFY2014

Change from 1HFY2014

Total

21

33.7

31.0

2.7

Sales fees of investment trust/ insurance

22

18.3

19.5

(1.1)

Administration fees

23

15.3

11.4

3.8