Amendment of Telecommunications Business Agreement in Myanmar

Since 2014, Sumitomo Corporation and KDDI Corporation through KDDI Summit Global Myanmar Co., Ltd. (KSGM), a joint venture established between the two companies, have supported Myanma Posts and Telecommunications (MPT), one of Myanmar’s licensed telecommunications service providers, to deliver high-quality telecommunications infrastructure and services which have contributed the economic growth and the welfare of people in Myanmar. Today, Sumitomo Corporation announces that KSGM have agreed to amend the agreement with MPT, limiting the scope of KSGM’s support of MPT’s telecommunications operations in Myanmar.

Details of the Amendment of the Agreement

Sumitomo Corporation has been working to develop human resources responsible for Myanmar's telecommunications infrastructure by drawing on its expertise in technical, marketing and sales fields gained from its overseas businesses. As these efforts have progressed steadily in these ten years , the amended agreement reduces our support, and the number of personnel dispatched while ensuring the quality of Myanmar’s telecommunications infrastructure. We will consider reducing our support in accordance with the further development of MPT.
Regardless of the amendment of the agreement, we are supporting the restoration activities of lifelines affected by the earthquake as humanitarian aid.

Impact on Consolidated Financial Statements

Although the scope of support is limited by this amendment, KSGM will continue to make efforts to collect from MPT dollar-denominated lease receivables for which the provision has been recognized. From fiscal year ending March 31, 2026, the impact on our consolidated financial statements will be limited to reversal profits of provision for doubtful accounts upon the collection of the lease receivables. The impact of this amendment on our consolidated financial results for the fiscal year ending March 31, 2025, will be negligible.

Other Information

Sumitomo Corporation remains committed to ensuring the safety of local employees, their families, and other related parties, as part of its wider commitment to respect for human rights in accordance with Sumitomo Corporation Group’s Human Rights Policy. In the fiscal year ending March 31, 2025, Sumitomo Corporation continuously engaged with various stakeholders as part of its human rights due diligence, and received advices from human rights experts. Through these dialogues, we reaffirmed the critical importance for the people of Myanmar of maintaining and securing the telecommunication network in the context of respecting human rights and also acknowledged the requests to make efforts in relation to human rights and share those progresses. We will continue to conduct heightened human rights due diligence and maintain dialogues with stakeholders to understand their concerns. Additionally, taking business circumstances into account, Sumitomo Corporation will continue to monitor changing situations in Myanmar and will carefully consider appropriate actions.