Advance into Digital Media-Establishment of SC Digital Media-

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Kuniharu Nakamura) has established a wholly-owned subsidiary, SC Digital Media K.K. (President and Chief Executive Officer: Shuichi Nagasawa), in order to accelerate its business activities in the Digital Media sector.

1. Background of the Establishment
Sumitomo Corporation’s media activities have long been focused in the Pay-TV broadcasting and Multi-channel pay TV market, developing the successful cable TV/content business of J: COM, which is continuing to strengthen and expand its business foundation thorough various services utilizing its significant customer base.

Meanwhile, media usage has diversified rapidly, with the increased viewing time of Digital Media (*1) via the Internet, such as online video distribution services and social networking services have been increasing, especially among the younger generation being a huge factor.

The Advertising market has also been showing significant changes in recent years. In Japan, It is also predicted that the Internet advertising market will grow from about 1.2 trillion yen in 2015 to about 1.7 trillion yen in 2020. It is expected that the Internet advertising market centering on digital video advertising will further grow in the future.

Sumitomo Corporation has established SC Digital Media in order to develop and expand its footprint in the Digital Media market where more growth is expected over the course of the future.

2. Purpose of the Establishment
SC Digital Media has been formed to function as an investment vehicle to invest into business operators and establish JVs with various partners in order to build a strong portfolio in the Digital Media sector. SC Digital Media will also provide corporate and strategic functions to its subsidiaries and affiliates. SC Digital Media will accumulate talented individuals who have rich experience and expert knowledge in various areas such as advertisement, digital content creation, digital marketing and Ad-technology.

SC Digital Media will actively incorporate advanced overseas business models and technologies. In addition, SC Digital Media, together with domestic and foreign partner companies, will distribute good contents and creators to the world.

*1 Digital Media is a general term for any media service that delivers digital literature, picture, music and movie via Internet.

■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Establishing a Foundation for Comfortable and Enriching Lifestyles”.