Notice regarding the Medium-Term Management Plan (FY2026–FY2028) (1,108KB)

To Whom It May Concern

May 14, 2026

Sumitomo Mitsui Trust Group, Inc. (Securities Code: 8309 TSE, NSE)

Sumitomo Mitsui Trust Group, Inc. (President & CEO: Kazuya Oyama, hereinafter "SuMiTG") hereby announces the formulation of a Medium-Term Management Plan for the three-year period from FY2026 to FY 2028.

1. Review of the Previous Medium-Term Management Plan (FY2023-FY2025)

   Under the previous Medium-Term Management Plan (FY2023-FY2025), SuMiTG pursued growth centered on its asset management and asset administration businesses, reduced strategic shareholdings, and reviewed its business portfolio.

   As a result, we have largely achieved the targets set for the final year of the plan, FY2025, while achieving ahead of schedule many of the goals that had been set as our desired state toward FY2030. Through these initiatives, we improved profitability and capital efficiency while establishing a foundation that enables strategic investments and the promotion of individual business lines in line with our strategies.

2. Business Environment

   The business environment surrounding SuMiTG is undergoing a significant transformation, driven by the transition to a world with positive interest rates, adaptation to an inflationary environment, changes in demographics and social structures, and rapid advances in AI technology.

   In Japan, in particular, structural changes such as the aging of public infrastructure developed during the high economic growth period and the progress of decarbonization and green transformation (GX) are giving rise to substantial medium- to long-term investment demand. At the same time, the funding required in these areas tends to be long-term and illiquid, which does not necessarily align with conventional financing structures premised on short-term liquidity. As a result, mismatches in time horizons, among others, are becoming more pronounced.

   In the retail segment, against the backdrop of the "100-year life" era, the importance of medium- to longterm decision-making through asset formation, management, and succession is increasing. However, due to increasingly diverse lifestyles and the normalization of uncertainty, situations in which customers find it difficult to make optimal decisions independently are becoming more common.

   In this environment, we recognize that the Group's role is to present optimal choices and support well-informed decision-making.

3. Aspiration for 2035

   Even amid an era of heightened uncertainty, the Group aims to remain a trusted partner that strongly supports "the virtuous circulation of funds, assets, and capital" by providing optimal choices and supporting decision-making for business operators and investors facing increasingly complex challenges. Leveraging the trust business's fundamental capability to transform capabilities, assets, and time, we aspire to become "A leading company addressing social challenges through business" that reconcile sustainable economic growth with the resolution of social issues.

   To achieve this vision, we aim to balance profitability and growth over the medium- to long-term by stably securing ROTCE (*1) of 16 percent (ROE of 12 percent), while pursuing an expansion of our business scale with an eye towards net business profit before credit costs of approximately JPY 1 trillion.

4. Overview of the Medium-Term Management Plan (FY2026-FY2028)

   Under the concept of "Shaping the Future through Bold Challenges", we view the increasing complexity of societal challenges as growth opportunities, pursuing growth unique to a trust group in an integrated matter together with capital allocation and the enhancement of our management foundation. Based on this approach, we have identified the following three key strategic themes.

   Priority Theme I: Growth Strategy - A Trust-based Business Model Centered on Asset Management

   To achieve sustainable growth through virtuous cycles, the Group positions the asset management business as its core growth domain. We aim to reverse the trend of declining fee levels emerging from changes in the operating environment and establish a competitive advantage unique to the Group. By proactively addressing challenges such as the mismatch between long-term, illiquid funding needs and traditional financial structures, we will drive growth through the provision of high value-added investment products and services, the creation of investment opportunities through balance sheet transformation, and the scaling of our retail business.

   - Through discretionary investment management including wrap accounts ("Fund Wrap"), we will provide diversified portfolios on a group-wide basis, while enhancing active management capabilities and access to high-quality private assets to deliver high value-added investment solutions. We aim to achieve fund wrap balances of JPY 3.6 trillion by FY2028, while also aiming to reach JPY 5 trillion at an early stage.

   - Leveraging our expertise and capabilities in investment and lending, we will originate investment opportunities using our own balance sheet and promote "Industrial Finance for the Reiwa era"-a diversified approach to funding industry-by channeling long-term funds into real assets, including infrastructure and renewable energy. Through these initiatives, we will link investment opportunities that contribute to a sustainable society to our own growth.

   - By integrating and enhancing diverse channels and services across Group companies, including Sumitomo Mitsui Trust Bank, SBI Sumishin Net Bank, and UBS SuMi TRUST Wealth Management, we will broaden access to asset formation and management, while providing seamless end-to-end services ranging from advanced asset management to succession planning, thereby supporting customers in achieving their financial Well-Being.

   Priority Theme II: Capital Strategy

   SuMiTG will steadily reduce strategic shareholdings to generate capital for growth investments, while improving capital efficiency and accelerating growth through agile strategic investments, alliances, and equity participation in growth domains, including asset management.

   - Shareholder returns will be provided with a target total payout ratio of 50% or above. Dividends per share will be progressive, with a guideline of approximately 50 percent of "Adjusted net income (*2)", which excludes net gains from the sale of strategic shareholdings. Through disciplined capital allocation that balances growth investments and shareholder returns, we aim to enhance corporate value over the medium- to long-term.

   Priority Theme III: Enhancement of the Management Foundation

   Guided by a strong fiduciary mindset that prioritizes customers' best interests, SuMiTG will position human capital suited to a digitally advancing society at the core of its value creation. By strengthening IT and DX platforms and business processes in an integrated manner, we will build a highly reliable and productive management foundation capable of supporting business expansion and increased operational volumes.

   - We will focus on developing and leveraging human resources under the premise of "Human in the Design (*3)", enabling each employee to utilize AI in designing business processes and operations, thereby establishing a reliable operating model.

   - Through strengthened investment in human capital and the establishment and advancement of new personnel systems, we will promote autonomous career development as well as performance- and role-based compensation, while advancing deployment in strategic domains. At the same time, we will transform our human capital portfolio into a value-added and highly productive one, capable of creating value by combining the Group's broad range of products and functions.

5. KPIs (Financial and Operational Base)

   FY2035 (Vision)

JPY 1,000.0 billion (including inorganic growth)

With a view towards the desired state in FY 2035, SuMiTG has set financial and operational targets to demonstrate progress under its growth strategy.

1. Conclusion

Through this new Medium-Term Management Plan, SuMiTG will advance the power of trusts and steadily execute its strategies to realize the next stage of growth. Guided by our purpose, "Trust for a flourishing future", we will continue to contribute to the enhancement of Well-Being of all stakeholders.

(*1) ROTCE (Return on Tangible Common Equity): a measure of profitability based on tangible common equity (TCE), calculated by dividing net income attributable to owners of the parent, adjusted to exclude goodwill amortization and related M&A items, by common equity attributable to owners of the parent, excluding goodwill and intangible assets recognized through M&A.

(*2) Net income adjusted by excluding net gains from the sale of strategic shareholdings (after tax)

(*3) An approach that assumes humans are responsible for designing business processes and making decisions, and for remaining accountable for the outcomes when utilizing AI tools.

(*4) On a fully phased-in Basel III finalization basis, including unrealized gains and losses on securities.

(*5) A KPI that aims to achieve approximately a 30 percent reduction in middle- and back-office personnel through operational efficiency improvements, including digitalization, to expand front-office human resources.

(Appendix)

In formulating this new Medium-Term Management Plan, SuMiTG has re-identified four key issues to be addressed as materialities, based on its purpose and in consideration of changes in social structures as well as expectations from stakeholders. These materialities are: "Sustainable Society," "Financial Well-Being," "Fiduciary Duty," and "Human Capital (Expertise and Diversity)."

These materialities represent the matters that we prioritize from a management perspective in realizing our desired state for 2035, and they serve as the starting point for the various strategies set forth in the Medium-Term Management Plan.

End

For further information, please contact:

Investor & Shareholder Relations Department, Sumitomo Mitsui Trust Group, Inc. Telephone : +81-3-3286-8354