Glossary

• B
• C
• D
• E
• F
• I
• M
• N
• P
• R
• S
• T
• V
• Number

B

Term	Explanation
Balance between Core Risk Buffer and Risk-Adjusted Assets	Keeping Risk-adjusted Assets within the scope of Core Risk Buffer (Common stock + Retained earnings + Foreign currency translation adjustments - Treasury stock, at cost) prevents the Company from incurring excessive risks.
Basic Elements	A collection of our knowledge and expertise in business management acquired through past successes and failures, along with group policies.
Board of Directors	The composition of the Board of Directors ensures diversity in experience, knowledge, expertise, gender, and so on. They deliberate important matters regarding companywide management, such as the management policy and manegement plan. For more details
Business Group	Sumitomo Corporation has nine business units running a wide variety of businesses: Steel, Automotive, Transportation & Construction Systems, Divers Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemical Solutions, and Energy Transformation Business.

C

Term	Explanation
Cash flow earnings	[Gross profit + Selling, general and administrative expenses (excluding provision for doubtful receivables) + Interest expense, net of interest income + Dividends] x (1– Tax rate) + Dividend from investments accounted for using the equity method + Depreciation + Lease liability payments.
Corporate Governance	System which is seeking to establish the most appropriate managerial system for Sumitomo Corporation and are strengthening our corporate governance to realize management that serves the interests of shareholders and all other stakeholders. For more details

D

Term	Explanation
DX (Digital Transformation)	Approach to upgrade existing business models through digitization and to create new business model.

E

Term	Explanation
ESG	It is generally agreed today that consideration for the environment and social contribution will lead to sustainable growth due to improvement of corporate value and risk reduction.
Enriching lives and the world	New Corporate Message which Sumitomo Corporation have created for the 100th anniversary. This message represents the Group's unwavering pledge to further enrich the world, society, and people's lives through sound business activities.

F

Term	Explanation
Full Potential Plan	Sumitomo Corporation is improving the quality of our portfolio by formulating specific measures to maximize the value of each business and monitoring their implementation at key points. This initiative is focused on group companies that have not yet achieved the expected perfomance and show room for improvement to achieve further growth.

I

Term	Explanation
IFRS	IFRS stands for International Financial Reporting Standards. International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). Sumitomo Corporation has voluntarily adopted the IFRS instead of the acounting principles generally accepted in the United States of America(U.S. GAAP), from the consolidated financial statements of the annual report for FY2010.
Integrated report	A report, which is released every year, seeking to raise stakeholders' understanding of the Sumitomo Corporation Group's value creation mechanisms from a medium - to long - term perspective. For more details … the Integrated report 2019

M

Term	Explanation
Management Council	The highest executive level decision-making body with the aim of enabling decisions that take into account diverse opinions and multifaceted discussions in regard to specific key matters related to management, within the scope of the mandate conferred by the Board of Directors.
Material Issues	A medium- to long- term commitment that goes one step further toward addressing key social challenges that the Group must undertake. For more details
Medium-Term Management Plan 2026	Sumitomo Corporation's latest medium-term management plan toward fiscal year 2026 from fiscal year 2024. For more details
Mineral resources business	A sum of Mineral Resources Group, and Gas Value Chain SBU within Energy Transformation Business Group.

N

Term	Explanation
Net DER	Net DER stands for Net Debt Equity Ratio which is calculated by dividing interest-bearing liabilities(net) by equity attributable to owners of the parent.
Nomination and remuneration Advisory Committee	Committee which acts as an advisory for the board directors and whose missions is to enhance objectivity and transparency of not only the process involved in nominating a president and other board of director candidates but also remuneration system for exective. One of outside directors serves as the Committee Chairman.
Non-mineral resources business	Businesses except for Mineral resources business.

P

Term	Explanation
PBR	An indicator of stock price level stands for Price Book Value Ratio which is calculated by dividing stock price by BPS(book-value per share).
PER	An indicator of stock price level stands for Price Earning Ratio which is calculated by dividing stock price by EPS(earnings per share).

R

Term	Explanation
ROA	ROA stands for Return On Assets which is calculated by dividing the company’s net income by total assets.
ROE	ROE stands for Return On Equity which is calculated by dividing the company's net income by shareholder's equity.

S

Term	Explanation
Succession plan	Plan which covers the next and subsequent generations for key positions including overseas regional offices and group companies.
Sumitomo's Business Philosophy	Philosophy which 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 Business Principles. For more details

T

Term	Explanation
Teleworking system	Working from home, working from a satelite office, and mobile working.

V

Term	Explanation
Value Creation Model	Sumitomo Corporaiton's mechanisms which create new value for today and tomorrow.

Number

Term	Explanation
100-day plan	Activities, performed mainly in the first 100 days immediately after the investment has been executed, to construct and develop management infrastructure aimed at drawing up a medium-term plan that seeks to maximize business value, including management of the investment, and which manegement and financial indicators should be used as targets.