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© 2025 Sumitomo Corporation 000 Acquisition of Air Lease Corporation - Sumitomo Corporation-invested aircraft leasing companies collectively rank among the world's largest by fleet size - Sumitomo Corporation September 3, 2025 Major Investment Project Briefing
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© 2025 Sumitomo Corporation 111 Contents 01 Alignment with Mid- Term Management Plan 2026 02 Commercial Aviation SBU Strategy and Profit Plan 03 Summery of Acquisition 04 Appendix
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© 2025 Sumitomo Corporation 222 Alignment with Mid-Term Management Plan 2026 This transaction represents a strategic investment in the aircraft leasing business, fully aligned with the “Growth leveraged by strengths” theme outlined in Sumitomo Corporation (SC)’s Mid-Term Management Plan 2026. It also enhances competitiveness in the leasing sector—one of the company’s 8 designated growth areas—and strengthens the foundation for stable earnings. 20250903 Major Investment Project Briefing ■Growth Leveraged by Strengths Leasing Expand business areas domestically and internationally by combining strong businesses such as aviation, automobile, and real estate
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© 2025 Sumitomo Corporation 333 Commercial Aviation SBU Strategy and Core Capabilities 20250903 Major Investment Project Briefing Contributing to the Development of a Circular EconomySBU Core Capabilities SMBC AC's presence as the world's second-largest operator in terms of owned and managed aircraft. Highly liquid portfolio centered on young, new-tech aircraft. Proactive asset replacement through “Buy & Sell” strategy. Expansion of management business through collaboration with institutional investors. Advancement of an asset rotation model in aircraft, engine, and helicopter leasing operations. Promotion of parts and material reuse from retired equipment. Entry into the parts-out business through the acquisition of Werner Aero. Reduction of environmental impact through the introduction of next- generation aircraft Commercial Aviation SBU has established a leading position domestically, centered on aircraft, engine, and helicopter leasing operations. We aim to become the industry leader by operating one of the world's premier leasing businesses, centered on SMBC AC, while promoting an asset rotation model and contributing to the circular economy.
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© 2025 Sumitomo Corporation 444 Strengthening the revenue base through rapid expansion of managed aircraft Accelerating revenue generation through gains from selling existing equipment and reinvestment 11.9 13.6 18.5 0 200 400 600 0 10 20 30 FY22 FY23 FY24 … FY26 … FY30 Commercial Aviation SBU Profit Plan 20250903 Major Investment Project Briefing ■Profit Plan ■Market Overview JPY30bn Achieved ahead of schedule Global growth market with sustained long-term expansion. The civil aviation market had been growing steadily at an annual rate of 5 to 6% even before the COVID-19 pandemic. Global average passenger numbers are projected to increase at an annual rate of 3.8% from 2024 to 2043.This growth is being driven by expanding emerging markets and increased demand for short- haul, high-frequency flights fueled by the rise of low-cost carriers (LCCs). Highly resilient market even when subjected to external shocks. Air passenger numbers experience temporary stagnation due to sudden events like war, terrorism, financial crises, and the COVID-19 pandemic, but the industry is cyclical, recovering after a certain period. In 2020, the industry as a whole suffered a net loss of $120 billion, with 43 companies going bankrupt, but by 2023, it had recovered to record- high profit levels. Leasing companies also faced impacts from delayed lease payments and contract restructuring, but compared to airlines, the effects were limited, demonstrating the leasing industry's relatively high resilience to downturns. Aircraft demand is expected to continue expanding significantly. The global fleet size currently stands at approximately 24,000 aircraft but is projected to double to around 48,000 aircraft (with approximately 42,400 being new aircraft) by 2043. Although delays in new aircraft production due to supply chain issues are increasing, the leasing market remains buoyant due to growing demand for aircraft. M&A activity among major leasing companies is progressing, accelerating scale expansion, competitiveness enhancement, and management efficiency. Before Acquisition After Acquisition Invested Capital (billions of yen) Underlying profit (billions of yen) Results MTMP2026 (Plan) Vision Strengthening the competitive advantage of the Commercial Aviation SBU through a portfolio centered on new type aircraft and securing prime manufacturer order slots. Achieving sustainable profit growth by minimizing balance sheet burdens through deconsolidation.
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© 2025 Sumitomo Corporation 555 Summary of Acquisition Acquired Company Air Lease Corporation（ALC） Acquisition Value Approx. USD 7.4 billion (Approx. JPY 1.0878 trillion) *USD 1 = 147JPY Investment Ratio ①SC ②SMBC AC ③Apollo ④Brookfield Voting Rights Ratio 47.505 % 4.99 % 23.7525 % 23.7525 % Shareholding Ratio 37.505 % 24.99 % 18.7525 % 18.7525 % ■Summary We entered into an agreement and plan of merger with SMBC Aviation Capital, Apollo, and Brookfield to acquire all outstandingcommon stock of Air Lease Corporation (ALC), via major U.S. aircraft leasing company. Following the acquisition, ALC will be reorganized as “Sumisho Air Lease Corporation (Sumisho Air Lease)”. 20250903 Major Investment Project Briefing ■ New Company Name
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© 2025 Sumitomo Corporation 666 Overview of Air Lease Corporation 20250903 Major Investment Project Briefing ALC is an aircraft leasing company operating in 58 countries worldwide with 116 customers (as of December 2024) . It maintains a highly liquid portfolio centered on young and new aircraft, with an average fleet age of 4.6 years and an average remaining lease term of 7.2 years. ■ Key Assumptions (as of Dec 2024) Location Headquarter: Los Angeles, U.S. Offices: Dublin, Ireland etc. Main Business Aircraft leasing History • 2010 Founded • 2011 Listed on NYSE Number of Employees Approx. 160 FY24 Actuals Revenue: Approx. USD 2.7 billion Net Income: Approx. USD 430 milion ■ Overview of ALC Average Remaining Lease Term 7.2 Average Fleet Age 4.6 Owned Aircrafts 489 Total Assets (USD in billions) 32 Expansion to: 58 countries # of Client: 116 Airline companies
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© 2025 Sumitomo Corporation 777 2,074 1,010 982 830 710 640 541 537 496 479 1st AerCap 2nd SMBC AC 3rd Avolon 4th Air Lease 5th BOC Aviation 6th ICBC Leasing 7th CDB Aviation 8th BBAM 9th DAE Capital 10th Aviation Capital Group Among the World’s Largest Aircraft Servicers Sumitomo Corporation Group's aircraft leasing business will expand to become one of the world's largest by scale through the operations of Sumisho Air Lease, newly joining the group, and SMBC AC. This will further strengthen our presence in the global market. ■ Major Aircraft Leasing Companies’ Fleet Size （Owned, Serviced and Committed） 20250903 Major Investment Project Briefing Source： Corporate documents and website, Cirium Note ： The figures are based on data as of the end of December 2024 (according to the Cirium's research). A portfolio centered on new-tech aircraft with high compatibility with AC Securing prime order allocations Strengthening competitive advantage in airline sales
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© 2025 Sumitomo Corporation 888 Appendix
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© 2025 Sumitomo Corporation 999 Materiality Our group contributes to the development of the global air transport network through our aircraft leasing business. Additionally, by promoting improved accessibility, logistics efficiency, and active exchanges in emerging countries and regional cities, we directly contribute to the development of local infrastructure and support economic growth. Build resilient and prosperous society Support the development of safe, comfortable, and resilient aviation infrastructure Air transportation is an important social infrastructure used for emergency relief during disasters, medical transport, material supply, etc. By supporting this infrastructure, we contribute to the security and prosperity of local communities. Many of the aircraft owned by ALC are state-of-the-art models with excellent fuel efficiency, contributing to the reduction of CO₂ emissions. Decarbonizing the aviation industry is an international challenge, and our company will continue to work on establishing a supply system for SAF (Sustainable Aviation Fuel). Overcome climate change 20250903 Major Investment Project Briefing