Accelerating Value Creation for Shareholders
Proposal for integration with UFJ Group
Strategic significance
Dominant revenue base and business franchise through the integration
- Realize dominant market share & competitiveness in the strategic businesses
SMFG
Impact on further value creation
To reinforce revenue base through the
dominant market share
in the focused high-growth
business areas
To steadily realize rationalization
effects (¥200bn) at an early date
Most profitable bank
in Japan with
banking profit
reaching ¥2 tn and
net income reaching
¥1 tn
Integration ratio = 1:1
EPS accretion
Further value creation
for SMFG shareholders
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Lastly, I would like to touch on the purpose of our proposal for integration with
the UFJ Group. We have made a proposal to the UFJ Group on the integration
ratio and terms & condition of capital enhancement in a transparent manner.
Significance of the integration with UFJ Group is not only merely the pursuit of
asset scale but also the realization of dominant market shares and
competitiveness in the strategic businesses through significant strengthening
of the business franchise, such as customer base and marketing channels.
Moreover, together with solid and speedy realization of the rationalization
effects, we are confident that this integration is the best choice in terms of
enhancing both group's shareholders value.
By realizing the top-line synergy through strengthening of the earnings power
through dominant market shares in the strategic businesses and solid and early
realization of JPY200 billion benefit of rationalization, we are confident of
achieving the highest profitability among all Japanese banking groups, with
JPY2.0 trillion in annual banking profit and JPY1.0 trillion in net income.
We have presented the integration ratio of 1 SMFG share per 1 UFJ share. We
believe this integration ratio is very attractive to shareholders of UFJ and will
contribute to value creation for our shareholders, given the integration
synergies.View entire presentation