Business Portfolio SHIFTClarifying individual business strategies’ position through categorization
- Clarify positioning of individual strategic business units based on ”market potential” and “our demonstration of strengths,” and set relevant goals.
- Shift portfolio to potential markets where our strengths can be fully demonstrated in order to increase both profitability and resilience.
Next-generation growth fields
- Six “next-generation growth fields” have been identified based on market potential and our strengths.
We will strengthen and cultivate businesses in these fields in the medium to long term throughout the entire organization.
Enhancement of Sustainability ManagementOverview
- Transform the Sumitomo Corporation Group’s business activities suitable for the realization of sustainable society
- With the profit improvement from structural reform and the promotion of measures from the medium-term management plan, and aim to achieve ¥300 billion or more and record-high profit in FY2023.
- With approximately ¥1.4 trillion of cash inflow, inclusive of basic cash flow of ¥640 billion for three-year in total, the Company will make investments and loans of around ¥1.1 trillion, while securing positive post-dividend free cash flow for three-year in total.
Shareholder Return (Dividend Policy)
- Sumitomo Corporation aims to increase dividends by achieving medium- and long-term earnings growth while adhering to its fundamental policy of paying shareholders a stable dividend over the long term.
- Under the medium-term management plan (SHIFT2023), we decide the annual dividend based on the status of fundamental earnings capacity, cash flows, and other factors, with a consolidated payout ratio of about 30% as a guideline, maintaining at least ¥70 per share, the same amount as the annual dividend for FY2020.
- In FY2021, we plan to provide a dividend of ¥70 per share (interim dividend of ¥35 and year-end dividend of ¥35).
Medium-Term Management Plan SHIFT2023 (PDF)