Recommendation for Administrative Action Against Sumisho Realty Management Co., Ltd.

Sumisho Realty Management Co., Ltd. (Head Office: Chuo-ku, Tokyo; President and CEO: Yukinari Shiraishi; hereinafter "SRM"), a subsidiary of Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) has been inspected by the Securities and Exchange Surveillance Commission (SESC). Today, the SESC issued a recommendation to the Prime Minister and the Commissioner of the Financial Services Agency to take administrative action against SRM.

For details of the recommendation and the relevant facts, please refer to the relevant press release published on the SESC’s website (https://www.fsa.go.jp/sesc/).

Under the basic policy of "compliance as top priority," the Sumitomo Corporation Group has worked to establish and strengthen its compliance and internal control systems tailored to the business operations and organizational realities of each Group company. We take the fact that such a recommendation has now been issued to SRM with the utmost seriousness.

SRM is considering measures, such as reviews of its organizational structure and internal rules and regulations, as well as expansion of human resources, in light of the root cause of the matters pointed out in the recommendation. As SRM's parent company, Sumitomo Corporation will work to prevent any recurrence by monitoring the formulation and implementation of these measures, while also pursuing further measures to enhance compliance across the Sumitomo Corporation Group in line with each company's circumstances.

We sincerely apologize to all stakeholders for any concern and inconvenience this may cause.