Sumitomo Mitsui Trust Group (8309) Investor Day presentation summary

Strategic direction and business model

• Changed trade name to Sumitomo Mitsui Trust Group, Inc. as of October 2024.

• Focuses on creating a virtuous circulation of funds, assets, and capital by leveraging direct access to investors and business operators.

• Business model integrates corporate, investor services, and wealth management to drive synergies and market expansion.

• Emphasizes comprehensive, specialized solutions and long-term trust-based relationships with clients.

• Aims to deepen understanding of its business model to address undervaluation in the stock market.

Corporate business initiatives

• Achieved major KPIs ahead of schedule, with improved ROE (9.6% in FY24) and increased product-related lending ratio (40%).

• Enhanced ROE through integrated on/off-balance sheet management and stronger risk-taking in profitable areas.

• Strengthened sourcing of high-margin assets and expanded collaboration with partners like Apollo and Alterna Trust.

• Expanded global business, especially in the US and Europe, with a focus on product lending and impact equity deals.

• Stock transfer agency business serves as a nodal point, expanding engagement with both individual and institutional investors.

Investor services business initiatives

• Built an industry-leading infrastructure for corporate pensions, managing approx. ¥14 trillion in DB and ¥4 trillion in DC assets.

• Expanding private asset management, targeting ¥24 trillion in private assets AUM by FY30.

• Strengthened gatekeeper business, leveraging a global network of over 350 managers and 1,000+ investment products.

• Advanced in-house investment business, especially in infrastructure, with AUM in domestic infrastructure funds aiming for ¥500 billion by FY30.

• Focused on democratizing investments and bridging investor and business operator needs through innovative trust products.