Sumitomo Mitsui Trust : Financial results for 1HFY2016

Financial Results for the Six Months Ended September 30, 2016 [Japanese GAAP] (Consolidated)

Stock exchange listings: Tokyo and Nagoya (Code: 8309)

URL: http://www.smth.jp/en/index.html

Representative: Kunitaro Kitamura, President

November 14, 2016

Contact: Kiyomitsu Asahi, Executive Officer, General Manager of Financial Planning Department TEL +81-3-3286-8354

Filing date of quarterly securities report (Shihanki Hokokusyo) (Scheduled): November 28, 2016 Specific trading accounts: Established

Dividend payment date: December 2, 2016

Explanatory material: Prepared

Briefing on financial results: Scheduled (for institutional investors and analysts)

1. Consolidated Financial Results (for the Six Months Ended September 30, 2016)

   (Amounts less than one million yen are rounded down.)

2. Operating Results (%: Changes from the same period in the previous fiscal year)

   Ordinary Income	Ordinary Profit	Net Income Attributable to Owners of the Parent
   Six Months Ended	Millions of Yen %	Millions of Yen %	Millions of Yen %
   September 30, 2016	594,221 6.2	137,467 0.1	87,922 2.2
   September 30, 2015	559,650 (3.4)	137,276 (9.9)	86,001 2.7

   (Note) Comprehensive Income:

   Six months ended September 30, 2016 ¥29,007 million, (47.0)%

   Six months ended September 30, 2015 ¥54,749 million, (69.3)%

   Net Income per Share of Common Stock	Net Income per Share of Common Stock (Fully Diluted)
   Six Months Ended	Yen	Yen
   September 30, 2016	229.51	229.45
   September 30, 2015	222.89	222.84

   * SuMi TRUST Holdings consolidated its shares with a ratio of ten shares of common stock into one share on October 1, 2016. Net income per share of common stock and net income per share of common stock (fully diluted) are calculated as if the consolidation of shares had occurred at the beginning of the fiscal year ended March 31, 2016.

3. Financial Position

4. Total Assets	Net Assets	Net Assets to Total Assets Ratio	Net Assets per Share of Common Stock
   As of	September 30, 2016 March 31, 2016	Millions of Yen	Millions of Yen	%	Yen
   		59,479,751	2,695,744	4.0	6,190.16
   		58,229,948	2,704,511	4.1	6,181.19

   (Reference) Shareholders' Equity:

   As of September 30, 2016 ¥2,368,033 million As of March 31, 2016 ¥2,376,973 million

   (Note 1) Net Assets to Total Assets Ratio = (Net Assets - Subscription Rights to Shares - Non-Controlling Interests) / Total Assets

   Net Assets to Total Assets Ratio stated above is different from a capital adequacy ratio prescribed in the notification of the Financial Services Agency with respect to the capital adequacy ratio.

   (Note 2) SuMi TRUST Holdings consolidated its shares with a ratio of ten shares of common stock into one share on October 1, 2016. Net asset per share of common stock is calculated as if the consolidation of shares had occurred at the beginning of the fiscal year ended March 31, 2016.

5. Cash Dividends per Share of Common Stock

   Annual Cash Dividends per Share of Common Stock
   1st Quarter- End		2nd Quarter- End	3rd Quarter- End		Fiscal Year- End	Total
   Fiscal Year	Ended March 31, 2016 Ending March 31, 2017	― ―	Yen	Yen	―	Yen	Yen	Yen
   				6.50			6.50	13.00
   				6.50
   Ending March 31, 2017 (Forecast)		―		65.00	―

   (Note 1) Revision of latest announced estimates for cash dividends per share of common stock: None

   (Note 2) SuMi TRUST Holdings consolidated its shares with a ratio of ten shares of common stock into one share on October 1, 2016. The financial results for the three months ended June 30, 2016, which were released on July 28, 2016, reported ¥6.50 of the year-end cash dividends per share of common stock for the fiscal year ending March 31, 2017 (forecast), not taking into account the consolidation of shares. However, the financial results for the six months ended September 30, 2016, released today report ¥65.00 of the year-end cash dividends per share of common stock, reflecting an effect of the consolidation of shares.

   The consolidation of shares remains the same as in the announcement released on May 12, 2016, and this stock consolidation does not constitute as a forecast revision to the total amount of cash dividends.

   For further details, please refer to "Explanation Concerning the Appropriate Use of the Forecasts for Results of Operations and Other Special Matters" on page 2.

6. Consolidated Earnings Forecast (for the Fiscal Year Ending March 31, 2017)

   (%: Changes from the same period in the previous fiscal year)

   Ordinary Profit	Net Income Attributable to Owners of the Parent	Net Income per Share of Common Stock
   Fiscal Year Ending March 31, 2017	Millions of Yen % 265,000 (4.7)	Millions of Yen % 170,000 1.9	Yen 444.39

   (Note) Revision of latest announced forecast of consolidated earnings: Yes

   * Notes

7. Changes in Significant Subsidiaries during the Six Months Ended September 30, 2016: None

   (Changes in "specified subsidiaries" resulted in changes in the scope of consolidation)

8. Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

9. Changes in accounting policies due to the revision of accounting standards: Yes

10. Changes in accounting policies other than 1) above: None

11. Changes in accounting estimates: None

12. Restatements: None

13. (Note) For further details, please refer to "2. Matters Relating to Summary Information (Notes)" on page 3 of Accompanying Materials.

    As of September 30, 2016	390,348,640 shares	As of March 31, 2016	390,348,640 shares
    As of September 30, 2016	7,800,869 shares	As of March 31, 2016	5,799,178 shares
    For the six months ended September 30, 2016	383,094,938 shares	For the six months ended September 30, 2015	385,853,385 shares

14. Number of Shares Issued (Common Stock)

16. Number of shares issued (including treasury stock):

17. Number of treasury stock:

18. Average number of outstanding issued shares:

* SuMi TRUST Holdings consolidated its shares with a ratio of ten shares of common stock into one share on October 1, 2016. The number of shares issued, the number of treasury stock, and the average number of outstanding issued shares are calculated as if the consolidation of shares occurred at the beginning of the fiscal year ended March 31, 2016.

Non-Consolidated Financial Results (for the Six Months Ended September 30, 2016)

1. Operating Results (%: Changes from the previous first half)

   Operating Income	Operating Profit	Ordinary Profit	Net Income	Net Income per Share of Common Stock
   Six Months Ended	Millions of Yen %	Millions of Yen %	Millions of Yen %	Millions of Yen %	Yen
   September 30, 2016	36,652 (2.8)	35,560 (2.8)	32,426 (0.7)	32,425 (0.7)	84.64
   September 30, 2015	37,711 14.4	36,580 15.6	32,649 15.3	32,649 15.3	84.62

   * SuMi TRUST Holdings consolidated its shares with a ratio of ten shares of common stock into one share on October 1, 2016. Net income per share of common stock is calculated as if the consolidation of shares had occurred at the beginning of the fiscal year ended March 31, 2016.

2. Financial Position

Total Assets	Net Assets	Net Assets to Total Assets Ratio
As of September 30, 2016 March 31, 2016	Millions of Yen 1,924,619 1,824,180	Millions of Yen 1,494,246 1,493,582	% 77.6 81.9

(Reference) Shareholders' Equity: September 30, 2016 ¥1,493,661 million

March 31, 2016 ¥1,493,160 million

(Note) Net Assets to Total Assets Ratio = (Net Assets - Subscription Rights to Shares) / Total Assets

Statement Concerning the Status of the Interim Audit Procedures

These consolidated financial results for the six months ended September 30, 2016, are out of the scope of the interim audit procedures required by the Financial Instruments and Exchange Act. Therefore, the interim audit procedures on the interim consolidated financial statements have not been completed at the time of disclosure of these consolidated financial results for the six months ended September 30, 2016.

Explanation Concerning the Appropriate Use of the Forecasts for Results of Operations and Other Special Matters

The forecasts for results of operations presented in this report are based on the information currently available to SuMi TRUST Holdings and certain reasonable assumptions. Actual results may differ significantly from the forecasts due to various factors.

As a specified business entity (a company engaged in the specified businesses set forth in Article 17-15(2) of the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.), SuMi TRUST Holdings has prepared the interim consolidated financial statements and the interim non-consolidated financial statements for the six months ended September 30, 2016.

A briefing on financial results will be held for institutional investors and analysts. The contents of the meeting, such as explanations about financial results (audio), will be posted on SuMi TRUST Holdings' website, together with the explanatory material to be used on the day.

SuMi TRUST Holdings consolidated its shares with a ratio of ten shares of common stock into one share on October 1, 2016. The cash dividends and net income per share of common stock for the fiscal year ending March 31, 2017, represent estimates, which are calculated by taking into account the consolidation of shares announced on May 12, 2016.

Assuming that the share consolidation announced on May 12, 2016, was conducted at the beginning of the fiscal year ending March 31, 2017, the total annual cash dividends per share of common stock will be ¥130 (¥65 of cash dividends at the second quarter-end) for the fiscal year ending March 31, 2017. The cash dividends per share of common stock for the fiscal year ending March 31, 2017, at the fiscal year-end are reported as ¥65, although this should not be taken as a forecast revision to the total amount of cash dividends.

[Accompanying Materials]

Table of Contents

1. Qualitative Information Related to the Consolidated Financial Statements	--------	2
(1) Qualitative Information Related to the Consolidated Results of Operations	--------	2
(2) Qualitative Information Related to the Consolidated Financial Position	--------	2
(3) Qualitative Information Related to the Consolidated Earnings Forecasts	--------	2
2. Matters Relating to Summary Information (Notes)	--------	3
Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements	--------	3
3. Interim Consolidated Financial Statements	--------	4
(1) Interim Consolidated Balance Sheets	--------	4
(2) Interim Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	--------	6
Interim Consolidated Statements of Income	--------	6
Interim Consolidated Statements of Comprehensive Income	--------	7
(3) Interim Consolidated Statements of Changes in Net Assets	--------	8
(4) Notes on Going Concern Assumptions	--------	10
(5) Notes on Significant Subsequent Events	--------	10
4. Interim Non-Consolidated Financial Statements	--------	11
(1) Interim Non-Consolidated Balance Sheets	--------	11
(2) Interim Non-Consolidated Statements of Income	--------	12
(3) Interim Non-Consolidated Statements of Changes in Net Assets	--------	13
(4) Notes on Going Concern Assumptions	--------	15
(5) Notes on Significant Subsequent Events	--------	15

1. Qualitative Information Related to the Consolidated Financial Statements

1. Qualitative Information Related to the Consolidated Results of Operations

   For the six months ended September 30, 2016, "Net Business Profit Before Credit Costs" decreased by ¥10.6 billion year on year to ¥146.1 billion. This was primarily due to a decrease in "Net Interest Income and Related Profit" of Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST Bank) despite an increase in profits from consolidated subsidiaries.

   Ordinary Profit remained at the same level as the same period of the previous fiscal year at ¥137.4 billion for the six months ended September 30, 2016, partly due to improvements in "Net Gains on Stocks." "Net Income Attributable to Owners of the Parent" for the period increased by ¥1.9 billion year on year to ¥87.9 billion.

   (Reference)

   SuMi TRUST Holdings (Consolidated)

   (Billions of Yen)

   Six Months Ended September 30, 2016	Changes from the Six Months Ended September 30, 2015	Six Months Ended September 30, 2015
   Net Business Profit Before Credit Costs	146.1	(10.6)	156.7
   Ordinary Profit	137.4	0.1	137.2
   Net Income Attributable to Owners of the Parent	87.9	1.9	86.0

   Credit Costs (expenses are in parentheses)	0.7	0.7	0.0
   Net Gains on Stocks	9.9	11.4	(1.5)

   SuMi TRUST Bank (Non-Consolidated)

   (Billions of Yen)

   Six Months Ended September 30, 2016	Changes from the Six Months Ended September 30, 2015	Six Months Ended September 30, 2015
   Gross Business Profit Before Credit Costs	221.5	(18.1)	239.7
   General and Administrative Expenses (expenses are in parentheses)	(115.4)	3.4	(118.8)
   Net Business Profit Before Credit Costs	106.1	(14.7)	120.8
   Ordinary Profit	101.2	(0.4)	101.6
   Net Income	69.8	0.8	69.0

   Credit Costs (expenses are in parentheses)	2.6	2.7	(0.1)
   Net Gains on Stocks	10.1	11.6	(1.4)

2. Qualitative Information Related to the Consolidated Financial Position

   As of September 30, 2016, consolidated "Total Assets" increased by ¥1,249.8 billion to ¥59,479.7 billion and consolidated "Total Net Assets" decreased by ¥8.7 billion to ¥2,695.7 billion from the end of the previous fiscal year.

   In particular, "Cash and Due from Banks" increased by ¥ 1,369.0 billion to ¥ 21,293.5 billion, "Loans and Bills Discounted" decreased by ¥ 114.5 billion to ¥ 27,411.3 billion, "Securities" increased by ¥ 358.9 billion to ¥ 5,285.1 billion, and "Deposits" increased by ¥6,128.0 billion to ¥32,829.9 billion from the end of the previous fiscal year.

3. Qualitative Information Related to the Consolidated Earnings Forecasts

The consolidated earnings forecasts for the fiscal year ending March 31, 2017, ("Ordinary Profit": ¥ 255.0 billion, "Net Income Attributable to Owners of the Parent": ¥170.0 billion), which were announced on May 12, 2016, have been updated to reflect the results for the six months ended September 30, 2016. The "Ordinary Profit" is increased by ¥10.0 billion to ¥265.0 billion but the "Net Income Attributable to Owners of the Parent" remains the same as ¥170.0 billion.