Receipt of Insurance settlement proceeds by SMBC Aviation Capital

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno), hereby announces that SMBC Aviation Capital Limited (CEO: Peter Barrett, hereinafter "SMBC Aviation Capital"), a subsidiary of Sumitomo Mitsui Finance and Leasing Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Masaki Tachibana, hereinafter "SMFL") received insurance settlement proceeds of US$445 million during second half of its fiscal year 2024, which is subject to final approval by the Irish courts, as part of settlement with some insurance companies. Sumitomo Corporation partly owns SMFL.

In the fiscal year 2021, in accordance with the sanctions imposed on Russia by the European Union, the United States, the United Kingdom, and other countries due to the crisis in Ukraine, SMBC Aviation Capital terminated all lease contracts with Russian airlines. Subsequently, SMBC Aviation Capital pursued litigation in the Irish courts based on its insurance contracts, and recently, reached to the settlement with some insurance companies.

Due to the occurrence of this event, Sumitomo Corporation expects to record equity gains of affiliated companies in the amount of approximately 19 billion yen in its consolidated financial results for the fiscal year 2024. This profit was included as an estimate amount in the consolidated earnings forecast for the full fiscal year 2024 announced on February 4, 2025.

Related Information : SMBC Aviation Capital announces insurance settlement | Sumitomo Corporation