New Year Message for 2025

Happy New Year everyone.
It is with great pleasure to extend my New Year’s greetings from Tokyo to each and every one of you across our global Sumitomo Corporation Group.

Review of last year

Since becoming President and CEO last April, I have taken various initiatives such as reassessment of organizational structure, transforming our business portfolio, and changing our approach to budget planning in order to achieve exponential growth of the Sumitomo Corporation Group. Through town hall meetings during my business trips, I have had the chance to engage in dialogue with you as peers and hear diverse opinions directly from you. From these inspirations, I intend to implement fundamental reforms to our operations.

Significance of 2025 for Sumitomo Corporation

2025 marks the 80th anniversary of Sumitomo Corporation's trading businesses. In 1945, Sumitomo Corporation expanded from its roots in real estate management in the Osaka North Port area to the trading business. Shunya Toji, who became president a few years later, expanded our trading business activities by inspiring his employees with the phrase, "Enthusiastic amateurs outperform professionals." This spirit marked the beginning of the establishment of a SOGO SHOUSA. Over the past 80 years, we have evolved into our current form, engaging in many different types of business in various business fields.

Also, this year the World Expo is set to take place in Osaka. As part of the Sumitomo Group, we will be hosting the Sumitomo Pavilion at the Osaka, Kansai Expo. I believe that this Expo will provide an opportunity for each of us to think again about how we can all contribute towards a prosperous future.

External Environment

2024 was a year of great change and increased uncertainty, including major shifts in the international political landscape, and rising geopolitical risks, global division, and excessive nationalism. These trends are expected to continue in 2025. Changes in geopolitical and economic circumstances, mixed with technological innovation and extreme weather, will impact our business.

However, we are already prepared for them. Our Group has strengthened its resilience to downturns and developed a strong foundation that was not easily shaken by the external environment. No matter what the environment we face, I believe that our core mission of what we need to do remains unchanged. In 2025, let's continue to remain unfazed by change, remain agile, and stay ahead of change as we aim towards “No. 1 in each field”. Together, we can overcome any challenges.

Message to members of Sumitomo Group

Strategy and individual strength
At the start of the year, I went to see the All Japan High School Soccer Championship at a stadium near my house. There, I thought it was evident that the team that wins has solid strategy and individual strength. Understanding your team’s strengths, analyzing your opponent, anticipating how to gain the advantage, and reflecting this in clear tactics and player selection is crucial in a winning strategy.

Moreover, what is particularly important for individual strength is that each player understands their role. Also, you always need the strength to win over the ball in physical contact, no matter what the situation. We can apply this to business as well. Let’s win by analyzing the market and competitors, demonstrating our strengths and competitive advantages, having each employee achieve their role with the strength to fight in their field, and at times making changes to our strategies and tactics.

Self-discipline and self-responsibility
Now that I have explained that individual strength is important, what should we keep in mind when developing it? The answer is self-discipline and self-responsibility. This year I recommend that you ask yourself questions such as “Was I proactive in carrying out strategies and goals, treating them as my personal responsibility? Did I own up to my actions that I took or didn’t take?” Self-discipline and self-responsibility are essential for personal and organizational growth.

This year more than ever, I want each and every one of you to approach your daily work with the determination to grow stronger and to lead your team to No. 1 yourself, not waiting for others to lead the way. I have high hopes for your growth, and I will work alongside you all to reach greater heights.

2025 is the second year of the medium-term management plan. This will be an important year in which we drive our efforts to achieve the targets of our mid-term plan and also achieve growth that exceeds these targets. While the focus is on business expansion, we must not neglect risk management and compliance. Both are fundamental premise for growth, please do not forget them.

May 2025 be a year of prosperity and happiness for the Sumitomo Corporation Group, and to each and every one of you and your loved ones.

*This is the New Year's address delivered to Sumitomo Corporation Group executives and staff on 6 January 2025.

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