`
`

`

`0n the Release of Integrated Report 2018
`
`Starting with Annual Report 2014, Sumitomo Corporation has been enhancing its report
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`content by adding non-financial information to the conventional financial information, and
`
`attempting to link the two elements organically. In fiscal 2017, the report included information
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`on our "Six Material Issues to Achieve Sustainable Growth with Society." These material
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`issues—a set of priority tasks to be addressed through our business activities leveraging our
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`corporate strengths—were identified with reference to Sumitomo's Business Philosophy and
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`the Sumitomo Corporation Group's Management Principles, and also the Sustainable
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`Development Goals (SDGSI adopted by the United Nations General Assembly. This new
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`approach was reflected in a change in the report’s name to Integrated Report, and was
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`accompanied by further measures to enhance its content.
`
`In this Integrated Report 2018, we wanted to clarify what we mean by "integrated trading
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`company, " as many of our stakeholders have told us that they are unsure about this. The
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`Report therefore outlines the value creation model which makes possible the sustainable
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`growth of our Group. The Report also presents "Medium—Term Management Plan 2020,"
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`which we launched in May 2018 under the theme of "unceasing challenge for new value
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`creation," giving a detailed explanation of its main pillars and the framework we have put in
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`place to drive growth.
`
`In creating the Report. we referred to the International Integrated Reporting Framework
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`published by the International Integrated Reporting Council (IIRC) and the Guidance for
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`Collaborative Value Creation formulated by Japan's Ministry of Economy, Trade and Industry.
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`We also sought to reflect the comments and questions sent to us on a daily basis by
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`stakeholders. In this way, we have made an earnest effort to produce an accessible report
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`that presents our Group's past, present, and future from a long-term and embracing
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`perspective, working together with the various corporate organizations to come to a shared
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`Groupwide approach.
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`Going forward, we will continue working to enrich the content of the Integrated Report,
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`listening to stakeholders' opinions in this process. At the same time, by using the Integrated
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`Report as a tool for constructive dialogue, we aim to continue realizing sustainable growth in
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`our corporate value.
`
`October 2018
`
`W'—
`
`Kuniharu Nakamura
`
`Director, Chairman
`Chairman of the Board of Directors
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`Page 2 of 120
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`Contents
`
`Message from the President and Chief Executive Officer:
`To All Our Stakeholders
`
`Chapter1 Sumitomo Corporation,
`an Integrated Trading Company
`Corporate Mission Statement and Material Issues
`
`History
`Value Creation Model
`
`Chapter 2 Vision and Strategy
`Summary of Medium—Term Management Plan
`"Be the Best, Be the One 2017 (BBBOZO17)"
`
`Special Message from the 0x0 about ”Medium-Tenn
`“33"“ Management Plan 2020”
`Message from the C80: Promotion of Growth Strategies —
`
`Message from the CFO: Enhancement of
`Financial Soundness
`
`Stock Overview
`
`Message from the CA0; Enhancement of Corporate
`Governance and Our Human Resources Strategy
`
`Chapter 3 Business Overview
`
`Special A Business Approach to Create
`Feature New Value
`
`Overview by Business Unit
`- Metal Products Business Unit
`
`- Transportation & Construction Systems Business Unit
`- Infrastructure Business Unit
`
`- Media 8i Digital Business Unit
`- Living Related & Real Estate Business Unit
`- Mineral Resources, Energy, Chemical &
`Electronics Business Unit
`
`Global Strategies by Region
`- Global Network
`
`Chapter4 Management Base Enhancement
`Special
`Feature Message from an Independent Director
`
`
`
`Corporate Governance
`
`Directors, Audit & Supervisory Board Members, and
`Executive Officers
`
`Internal Control
`
`Human Resources Management
`
`Sustainability Management
`
`Corporate Profile/Stod< Information/Organization
`lR/SR Activities
`
`11
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`13
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`15
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`19
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`25
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`27
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`35
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`42
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`47
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`49
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`55
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`67
`71
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`75
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`79
`85
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`88
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`103
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`IN
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`117
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`

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`Message from the President and Chief Executive Officer: To All Our Stakeholders
`
`
`
`Masayuki Hyodo
`Representative Director
`President and Chief Executive Officer
`
`
`
`Page 4 of 120
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`

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`Using Sumitomo’s business philosophy
`as a starting point to steer business
`towards the future and create new value.
`
`What I value most as a president
`
`Managing the business and
`aiming for sustainable growth
`with a view to the future
`
`Since I took over as the President of Sumitomo
`Corporation in April 2018, I have often been asked,
`“What is your mindset as you approach this role?”
`My answer has three points.
`First, I intend to look at business results in the
`short, medium and long term. By establishing a
`cycle of strengthening the company’s financial base,
`increasing management efficiency and carrying on
`new investment while maintaining the trust and
`understanding of the financial market, we will be
`able to improve on current results. That is the natural
`course of business for a listed company, and I intend
`to pursue it with utmost dedication. However, in this
`day and age where companies are expected to build
`good relationships with all stakeholders while
`growing constantly, a business cannot survive by
`pursuing only short-term profits without considering
`future risks. We therefore have to strengthen our
`base and manage the company with an eye on the
`future so that we can share the joy of sustainable
`growth with all our stakeholders. Implementing that
`kind of management is essential.
`At the same time, a new business approach
`known as ESG (Environment, Social and
`Governance) has received a lot of attention in
`financial markets. There is a clear shift over time
`away from a focus on short-term growth to a focus
`on sustained medium-to-long-term growth.
`
`Additionally, a shift in values from a disproportionate
`focus on economic value to a focus on social,
`environmental and other multifaceted issues is also
`taking place. As we pursue long-term growth
`opportunities from a long-term, multifaceted
`viewpoint, we need to maintain the discipline
`necessary so we are not unduly shaken by
`immediate results and that at the same time we do
`not focus exclusively on the overall picture to the
`extent that we ignore present conditions and issues
`and manage the business irresponsibly.
`Moreover, in 2017 we identified “Six Material
`Issues to Achieve Sustainable Growth with Society”
`and publicized them within and outside the company
`to show the link between our business activities and
`the society at large. Starting with “Developing
`Human Resources and Promoting Diversity” and
`“Enhancing Governance” as a prerequisite, we are
`pursuing the material issues of “Achieving Harmony
`with the Global Environment,” “Contributing to the
`Development of Local Communities and Industries,”
`“Establishing a Foundation for Comfortable and
`Enriching Lifestyles” and “Providing Diverse
`‘Accessibility’” as our means of achieving sustainable
`growth as only the Sumitomo Corporation Group can.
`
`Ask ourselves why we exist and
`transform ourselves
`
`Secondly, I believe we need the courage to change
`ourselves. Integrated trading companies like ours
`have always supported development in society
`through the changing years by extending our
`networks throughout the world, sensing changes in
`economics, industry and society ahead of everyone
`else and creating new businesses. As a result, we
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`Message from the President and Chief Executive Officer: To All Our Stakeholders
`
`have developed a variety of business functions,
`expanded our range of businesses into all kinds of
`fields and industries and built fulfilling relationships
`with an extensive range of clients and business
`partners. The source of the total strength of the
`Sumitomo Corporation Group lies in its networks
`and business functions that extend beyond business
`boundaries and in the relationships of trust that form
`its management base. I consider it our duty to
`evolve in response to occasional challenges while
`continuing to create new value.
`Integrated trading companies like ours have
`weathered difficult storms. At one point there was a
`theory that trading companies were obsolete. We
`went through the trading company “ice age.” Most
`recently we experienced large-scale impairment
`losses due to falling natural resource prices. Each
`time we encounter a crisis, we survive by changing
`the contents or conditions of our business and
`succeeded in evolving into an even more profitable
`corporate body. Only those who can quickly realize
`the changes that come with time and create value
`under constantly changing business conditions can
`continue to succeed. Since we live in a world where
`only the fittest survive, where change is normal, we
`will build up the courage to always question our own
`value to society, to redefine ourselves and to
`constantly reinvent ourselves.
`
`Sharing passions, dreams and ambitions
`
`My third point is this: I want us to share our dreams,
`ambitions and passions with each other.
`Whenever anyone asks me what is unique
`about Sumitomo Corporation, I immediately answer,
`“Sound Management and an Enterprising Spirit.” We
`
`are a group of people always bursting with energy,
`earnestly pursuing new things and persevering through
`thick and thin until we achieve our goals. In other
`words, “sound management” means an approach
`to work that is full of dreams and passion and “an
`enterprising spirit” talks about our desire to continually
`tackle new challenges without fear of failure.
`It is one thing to merely talk about “creating
`new value.” It is quite another to act according to
`one’s principles. And if you cannot achieve it then
`the phrase is just an empty expression, a superficial
`promise, something said on the spur of the moment.
`That is why when a leader utters those words, he or
`she must do it with seriousness and engrave those
`words into the organization and its business with
`passion. In this modern age, it is not too difficult to
`get ideas because there are many approaches to
`value creation such as innovative business concepts
`and setting up new ecosystems. And it is precisely
`because we live in such times that I want all
`company employees, myself included, to share our
`dreams passionately with those around us in order
`to expand the circle of employees who truly share
`and sympathize with our ambitions as widely as
`possible. That will be the true driving force that will
`enable us to achieve the goal of “creating new value.”
`“People without dreams are people without
`ideals. People without ideals are people without
`plans. People without plans are people without
`actions. People without actions are people without
`success. Therefore people with no dreams are people
`with no success.” Those are the words of Shoin
`Yoshida, my favorite patriot at the end of the Edo
`era. It takes more than ordinary effort to invent
`something that does not exist in this world, to create
`something no one has ever seen. What you need is
`
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`the dynamism to keep working hard with conviction.
`That is what makes it so important to share dreams,
`ambitions and passions with one another.
`
`The state of the Sumitomo
`Corporation Group
`
`Becoming a corporate group that
`treasures the Honor is Equal principle
`
`The smartphone is often touted as an example of
`how the dreams and passions of many people can
`change the world. Behind this monumental invention
`was a huge cast of individuals thinking about and
`working hard on the technology needed to make the
`idea a reality, the strategies needed to
`commercialize it and the communication methods
`needed to convey its value to the rest of the world.
`The heartfelt desire to be of use to society and
`the dreams and passion that want to make that
`desire a reality are what give rise to new value.
`Some might say the word “dream” has no place in
`business, but in corporate management it is the
`same thing as a “vision.” How many people are able
`to talk sincerely about their visions? How many
`partners are willing to work with them to make
`those visions a reality? Human capital may not
`appear on a financial report, but I am convinced that
`its existence is what constitutes the intrinsic value
`that determines the strength and worth of the
`organization known as a company. Naturally there
`may be many failures. When failure occurs, you
`need a dream or an ambition to help you answer the
`question, “Why am I even doing this job?” Any
`
`hurdle can be overcome as long as that answer is
`there. Everyone must confront that failure squarely
`in the face, discuss how to avoid repeating it and
`then put the plan into action. And when we
`succeed, I hope we will be a team where we can all
`be happy for each other. In rugby there is a saying
`that goes, “Honor is Equal.” I want to treasure the
`idea behind that saying, that everyone gets equal
`honor even if they have different roles. A company
`that appreciates everyone who takes part in a
`project and that broadcasts that appreciation
`throughout the company is a truly strong one, and
`the Sumitomo Corporation Group must always strive
`to remain that way.
`As always, at the heart of our corporate culture
`that speaks of its dreams and ambitions and
`continues to strive to achieve them is the Sumitomo’s
`business philosophy ( P12). “Place prime
`importance on integrity and sound management
`without pursuing easy gains,” “Benefit for self and
`others, private and public interests are one and the
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`Message from the President and Chief Executive Officer: To All Our Stakeholders
`
`same,” “Planning imbued with a farsighted
`perspective,” “An Enterprising Spirit.” The principles
`that have been handed down over the course of
`Sumitomo’s 400-year history underpin all of the
`Sumitomo Corporation Group’s business activities
`as a set of unchanging universal values.
`
`Working constantly on the basis of
`400 years of trust
`
`Striving to create new value while sharing the
`Sumitomo’s business philosophy with like-minded
`colleagues who share the same dreams and
`ambitions -- These values of mine grew out of my
`experiences with many colleagues, clients and
`forebears. Let me use this opportunity to tell you a
`little about myself and my experiences.
`After joining Sumitomo Corporation in 1984, I
`focused exclusively on infrastructure- related
`projects, working mainly in Asia and in the Near and
`Middle East. I felt a great sense of accomplishment
`from living in emerging nations experiencing sudden
`economic growth and working to support their lives
`and their social and industrial development.
`Infrastructure projects are very long-term
`commitments. At a minimum they take several
`years from the planning stage to completion and can
`last over 10 years in some cases. Thus it is not
`unusual for national unrest or changes in the
`country’s economic circumstances to seriously
`affect the progress of a project. In some cases,
`circumstances became so difficult that there was no
`choice but to temporarily suspend the project.
`Despite the difficulties, however, all of the members
`involved in the project remained committed to our
`shared objective of making history by supporting the
`
`7
`
`development of the country and of the regional
`society at large. We persevered undeterred and
`faced up to all the obstacles confronting us until we
`succeeded in overcoming them.
`The enthusiasm of the members fueled the
`success of several projects. Having said that,
`however, there was one incident that made a deep
`impression on me and shaped my management
`philosophy. We spent five years working out a
`contract for a certain infrastructure project, but the
`nation’s government changed rapidly during that
`period. The success or failure of a large-scale project
`depends heavily on cooperation with the Japanese
`government as well as the partner country – in other
`words it depends on the existence of a public-
`private partnership (PPP). We were prepared to
`restart negotiations from scratch every time the
`government changed, but somehow there were
`always people in the new government who were
`familiar with Sumitomo. And they all said the same
`thing: “Sumitomo? I know them. If you’re from
`Sumitomo, we’re happy to talk.” The tens of
`
`Mr. Masayuki Hyodo then, in his role as president & CEO of PT. Sumitomo
`Indonesia and General Manager of the Surabaya office (appointed in 2010).
`A group photograph taken with local project members while dressed in
`traditional Indonesian batik attire (front row, 5th from right).
`
`Page 8 of 120
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`

`thousands of employees across the entire
`Sumitomo Corporation Group have built up trust not
`only in the past 100 years but across the 400 years
`of Sumitomo’s history. That is an irreplaceable asset
`created through the efforts of colleagues and
`forebears who have personified Sumitomo’s
`business philosophy around the world. With that
`Sumitomo’s business philosophy as our foundation,
`we have to pass on the can-do spirit of the
`Sumitomo Corporation Group, which transcends
`financial relationships, economic gains and losses
`and interests, to the next generation. That is my
`great mission as President.
`
`Challenge for
`New Value Creation
`
`Seizing major opportunities
`in an age of accelerating change
`
`Sumitomo Corporation was founded in 1919 and will
`celebrate its 100th anniversary next year. What will
`the Sumitomo Corporation Group look like 50 or 100
`years from now? Many stakeholders have asked me
`that question. It may very well become a completely
`different corporate entity. However one thing that
`will never change is our attitude of reinventing
`ourselves while responding flexibly to the changing
`times and constantly striving to create new value.
`Integrated trading companies recorded massive
`impairment losses between 2014 and 2016 due to a
`drop in natural resource prices. Now a new turning
`point has arrived and every company is searching for
`ways to build both, earning structures and
`
`management bases that are not affected by resource
`markets and secondly, investment strategies
`focused on establishing pillars of medium-to-long-
`term growth. At the same time a transformation
`some call the Fourth Industrial Revolution is
`progressing around the world thanks to technological
`advances in artificial intelligence (AI) and the Internet
`of Things (IoT). It is an age when new value is being
`created by connecting, blending and fusing everything
`together seamlessly. Along with those changes will
`come an inevitable diversification of the value chain.
`Managing a business will become more difficult, but
`this change also presents major opportunities for
`integrated trading companies, whose calling is to
`build flexible schemes for providing the seller, the
`buyer, and society with satisfying value.
`It is precisely because we are in such rapidly-
`changing times that it is important to have an axis to
`return to, to cling firmly to our policies and apply
`them to our business. This means that the
`Sumitomo Corporation Group will continue to stand
`firmly on its defining attitude of constantly striving to
`create new value that I mentioned before.
`
`Looking back on the previous
`medium-term management plan:
`“Be the Best, Be the One 2017”
`
`The great goal of the previous medium-term
`management plan was to overcome Sumitomo
`Corporation’s business challenges triggered by the
`massive impairment losses of the 2014 fiscal year
`and set the company back on a track to growth.
`Under the leadership of former president Nakamura,
`the whole company worked together as one to
`uncover issues and tackle them head on. At the
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`Message from the President and Chief Executive Officer: To All Our Stakeholders
`
`same time we continued making the investments
`necessary for the future while also seeking to create
`synergy through cross-organizational collaboration.
`Moreover, as a result of our efforts to generate cash,
`our net income for 2017, the final fiscal year of the
`medium-term management plan, stood at ¥308.5
`billion, the highest ever recorded. We successfully
`pulled off a V-shaped recovery. We also made steady
`progress with our growth strategies and reinforcing
`our management base.
`Although recovery in resource prices and a
`sustained upward trend in the course of the world
`economy are the main reasons why we were able to
`stage this come back, focusing only on those factors
`would mean missing the substantial changes we
`have made as a company. Based on our belief that a
`company needs earning power to achieve stable and
`sustainable growth, during the three years of ”Be
`the Best, Be the One 2017 (BBBO2017),” while we
`placed the greatest priority on the maintenance and
`enhancement of our financial soundness, we never
`went on the defensive but instead persevered with
`strategies to increase our earning power. That is
`precisely why we were able to use the momentum
`of our favorable business circumstances to improve
`our results. The steady building of this earning power
`over the past three years will be a crucially important
`factor for our management from now on. It produced
`results in the form of our highest recorded income
`ever in the last fiscal year, and in the future we expect
`to see even more results from the management
`base we have strengthened through long years of
`accumulated policies and strategies. The first
`chapter of the plan that will lead us further and more
`powerfully down this growth trajectory is our newly
`formulated “Medium-Term Management Plan 2020.”
`
`9
`
`“Medium-Term Management Plan 2020”
`–– Redefining our future selves,
`societies and industries
`
`The main theme of “Medium-Term Management
`Plan 2020” is “Unceasing Challenge for New Value
`Creation.” In the 2018 fiscal year, the first year of this
`plan, we plan to rewrite the current record by making
`a highest-ever profit of ¥320 billion. And we will
`continue to grow those profits as we head towards
`2020, the final year. At the core of “Medium-Term
`Management Plan 2020” is the implementation of
`growth strategies supported by an enhancement of
`our management base. As a key measure that will
`characterize the implementation of our growth
`strategy in particular, we have earmarked a total of
`¥300 billion to lend and invest in the creation of new,
`next-generation businesses in order to drive
`medium-to-long-term growth and value creation. We
`will strive to create new value focusing on three
`emerging fields where the Sumitomo Corporation
`Group can demonstrate its strengths: Technology ×
`Innovation, Healthcare and Social Infrastructure. To
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`

`undertake these measures, we will also need to
`catch the wave of the Fourth Industrial Revolution,
`throwing away prejudices and preconceived notions
`and redefining our existing businesses.
`For example, when it comes to social
`infrastructure, one of our planned emerging fields,
`conventional wisdom tends to think of utilities like
`water, sewage, electricity and gas as well as
`transportation infrastructure like roads and railways.
`However we need to understand that today’s
`infrastructure is a more far-reaching infrastructure
`that supports everyday life. For example, internet
`shopping and web services are now an indispensable
`part of the infrastructure of the daily lives of
`consumers all over the world. This is a good example
`of how redefining existing notions of infrastructure
`can lead to new business opportunities. In the same
`vein, if the auto lease businesses that this company
`runs in various regions can effectively adopt new
`trends in the auto industry such as connectedness,
`electric vehicles (EVs) and ride-sharing, they hold
`great potential for growth in next-generation mobility
`infrastructure. And they are just one example out of
`many. Integrated trading companies work in a variety
`of industries all around the world, so if they can
`coordinate their internal and external management
`resources organically, they can become a platform
`for redefining existing businesses, industries and
`societies. If we liken a trading company to a
`smartphone, then we can compare business models
`involving cooperating with multiple stakeholders to a
`countless number of installed apps. In reality, the
`Sumitomo Corporation Group has several hundred
`business models. By combining the management
`resources that group companies have, we will be
`able to create completely new business models.
`
`Promises for the Future
`
`Living up to our principles
`while pursuing further growth
`
`Business circumstances today are changing at a
`dizzying pace and competition grows fiercer by the
`day. Under these circumstances, the Sumitomo
`Corporation Group must either create new value
`faster than anyone or be fast enough to overtake
`others. To do that, we will need to quickly grasp the
`changes that come with time and transform
`ourselves. By combining our strengths, we want to
`make our own lives and the lives of everyone else a
`more fulfilling one. Through our business, we want
`to make the changing society a more attractive place.
`“Living up to our principles.” — One should set
`lofty goals and follow one’s beliefs and convictions
`while acting quickly. I will lead the whole group and
`fulfill my duties under the guidance of that motto.
`“Unceasing Challenge for New Value Creation for
`the future” -— We will build a company full of
`dreams and ambitions where we can share the
`growth of the Sumitomo Corporation Group with all
`our stakeholders.
`We greatly appreciate the support and
`continued understanding of all our stakeholders in
`our efforts.
`
`October 2018
`
`Masayuki Hyodo
`
`Representative Director
`President and Chief Executive Officer
`
`10
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`Page 11 of 120
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`
`
`.1“
`
`Bringing Businesses
`into Being
`
`Combining multiple management resources with diverse business functions to creq ‘
`businesses that bring prosperity to society in the spirit of Sumitomo's Business
`
`Philosophy—Sumitomo Corporation, an Integrated Trading Company.
`
`Corporate Mission Statement and
`Material Issues— 13
`
`History— 15
`Value Creation Model— 19
`
`
`
`
`
`

`

`IntegratedTradingCompany
`
`Sumitomo Corporation, an
`
`VlmnandSlrategy
`
`.3
`
`| BMW Management Base
`
`.
`
`.
`
`Enhancement
`
`The timeless Sumitomo's Business Philosophy, passed down
`over the generations for more than 400 years, is the origin of all
`our business.
`
`I Sumitomo’s Business Philosophy
`
`Sumitomo's Business Philosophy has been refined through
`many generations based on the Founder's Precepts "Monjuin
`Shiigaki," which Masatomo Sumitomo (1585-1652), the
`founder of the Sumitomo family, wrote and handed on to
`describe how a merchant should conduct business. The basic
`
`points of Sumitomo's Business Philosophy have been passed
`on in the form of the two articles of the Business Principles.
`Article 1 emphasizes the utmost importance of integrity,
`while Article 2 advocates the importance of having an
`enterprising spirit to generate profits quickly and faithfully
`while adapting to a changing society, and renovating
`business operations while avoiding the pursuit of easy gains
`or acting carelessly.
`Sumitomo's Business Philosophy, which has been
`passed on since the Founder's Precepts was written, still
`serves as the timeless principles Sumitomo Group
`companies follow in their activities.
`There are also several other credos that are contained in
`
`Sumitomo's Business Philosophy.
`One example is: " Benefit for self and others, private and
`public interests are one and the same." To put it another way,
`Sumitomo's business, while benefiting Sumitomo, must also
`
`benefit the nation and benefit society. This represents the
`corporate vision that the Sumitomo Corporation Group as a
`whole must pursue at all times.
`The second credo is "Grand Design." This derives from
`copper mine management, Sumitomo's core business in its
`early days, which required long-term vision and continuous
`effort. This attitude of viewing business from a broad and
`long-term perspective and working for the benefit of the
`entire nation and society based on foresight of the future has
`been inherited from preceding Company operators.
`The third credo is "People are our most important
`asset." The cultivation and development of human resources
`has always been our most important concern regardless of
`the times.
`
`Sumitomo's Business Philosophy thus stresses the need
`for an enterprising spirit to stay a step ahead in dealing with
`change, while ascribing importance to maintaining integrity
`and sound management, avoiding easy gains, and working
`for the public interest, without being misled by short-term
`immediate changes. This philosophy has continuously formed
`the basis of Sumitomo Corporation Group's business for
`more than 400 years.
`
`
`
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`Founder's Precepts of Sumitomo (Source: Sumitomo Historical Archives)
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`Business Principles
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`

`Chapter 1
`
`Sumitomo Corporation, an Integrated Trading Company
`
`Corporate Mission Statement and Material Issues
`
`Corporate Mission Statement
`
`Sumitomo Corporation Group’s Management Principles are a
`contemporary translation of Sumitomo’s Business Philosophy,
`which was devised 400 years ago, using simplified language
`and a clear structure, and rewritten from a more global
`perspective. The Activity Guidelines provide guidance on how
`each company as well as their executives and employees
`should behave as they conduct daily business activities to
`realize the Management Principles.
`As declared in the Management Principles, our corporate
`mission is to support our shareholders, clients, local
`communities, employees, and everyone else around the
`world in their endeavors to achieve economic and spiritual
`prosperity and realize their dreams through our sound
`business activities. We also maintain—throughout our
`
`business practices—a unique management style that
`respects the personality of each individual and places prime
`importance on integrity and sound management, which
`represent the essence of Sumitomo’s Business Philosophy,
`while cherishing a corporate culture that allows each
`employee to take the initiative and demonstrate creativity that
`is conductive to continuous reform and innovation.
`By sharing the values presented in the Management
`Principles and the Activity Guidelines across the Group to
`materialize them in specific business activities, we aim to be
`a global organization that constantly stays a step ahead in
`dealing with change, creates new value, and contributes
`broadly to society.
`
`Sumitomo Corporation Group’s Corporate Mission Statement
`
`Corporate Vision
`
`We aim to be a global organization that constantly stays a step ahead in
`dealing with change, creates new value, and contributes broadly to society.
`
`Management Principles
`
`• Corporate Mission
` To achieve prosperity and realize dreams through sound business activities
`• Management Style
`
` To place prime importance on integrity and sound management with utmost respect for the individual
`• Corporate Culture
` To foster a corporate culture full of vitality and conducive to innovation
`
`Activity Guidelines
`
`• To act with honesty and sincerity on the basis of Sumitomo’s business philosophy and in keeping
`with the Management Principles
`• To comply with laws and regulations while maintaining the highest ethical standards
`• To set high value on transparency and openness
`• To attach great importance to protecting the global environment
`• To contribute to society as a good corporate citizen
`• To achieve teamwork and integrated corporate strength through active communication
`• To set clear objectives and achieve them with enthusiasm
`
`13
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`Page 14 of 120
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`

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`Management Base
`Enhancement
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`I Sumitomo Corporation Group’s Material Issues
`Over the years, we have conducted our business activities
`with priority by leveraging our strengths in line with
`guided by Sumitomo's Business Philosophy and Corporate
`Sumitomo's Business Philosophy and Sumitomo Corporation
`Mission Statement. It is important to reconsider how we
`Group's Corporate Mission Statement. We defined the
`should address social issues through our business activities.
`material issues as an important factor in the development of
`To achieve sustainable growth together with society into the
`business strategies and in the decision-making process for
`fut