Sumitomo Corporation · TSE:8053

Sumitomo — Investor Day (June 2021)

59 slides from Sumitomo's investor day presentation, Jun 1, 2021

  1. Slide 1: Our Sustainable Growth and the Realization of a Sustainable Growth of Society

    Our Sustainable Growth and the Realization of a Sustainable Growth of Society Sumitomo Corporation June 1, 2021 1 © 2021 Sumitomo Corporation

  2. Slide 2: Investor Day 2021

    Investor Day 2021 Date&Time : June 1st, 2021 1:00pm – 4:30pm Venue : Online Meeting (Zoom) Time Program Speakers Part 1 Achievement of Swift Recovery to our Growth Path 1:00〜1:10 Opening Remarks President and CEO, Masayuki Hyodo Outside Director, Koji Ishida Outside Director, Nobuyoshi Ehara 1:15〜1:

  3. Slide 3: Contents

    Contents Start 1:00 Closing 4:30 Part 1 Achievement of Swift Recovery to our Growth Path 1:00-2:05 Sustainability Management to Achieve Sustainable Part 2 2:10-3:15 Growth Part 3 DX-based Corporate Transformation (CX) 3:20-4:10 3 © 2021 Sumitomo Corporation

  4. Slide 4: Achievement of Swift Recovery to our Growth Path

    Part 1 Achievement of Swift Recovery to our Growth Path 1:00-1:10 Opening Remarks President and CEO, Masayuki Hyodo Outside Director, Koji Ishida 1:15-1:35 Panel Discussion Outside Director, Nobuyoshi Ehara by Outside Directors Facilitator : Japan Investor Relations Association Executive Managing Di

  5. Slide 5: Opening Remarks

    Opening Remarks President and CEO, Masayuki Hyodo 5 © 2021 Sumitomo Corporation

  6. Slide 6: Historical Performance Review: Medium-term Management Plan 2020

    Part 1 Achievement of Swift Recovery to our Growth Path (１) Historical Performance Review and Identification of Issues (1/3) －Medium-term Management Plan 2020－ • We achieved the initial forecast and record-high profits in FY2018, but fell short of the initial forecast in FY2019 due to factors includ

  7. Slide 7: Historical Net Profit (FY2006 - FY2020)

    Part 1 Achievement of Swift Recovery to our Growth Path (１) Historical Performance Review and Identification of Issues (2/3) －Historical Performance and Identification of Issues － Historical Net Profit (FY2006 - FY2020) ■Top ranked group companies ■ Parent and profit making group companies ■ Loss ma

  8. Slide 8: Deep Diving the Issues: Our Direction

    Part 1 Achievement of Swift Recovery to our Growth Path (１) Historical Performance Review and Identification of Issues (3/3) － Deep Diving the Issues － Group companies that have increased Strength its earnings base for past years Increasing earning power and improving resiliency Issue of our busines

  9. Slide 9: Overview of the Measures: Business Portfolio SHIFT

    Part 1 Achievement of Swift Recovery to our Growth Path (２) Purpose and Overview of New Medium-term Management Plan (1/2) － Overview of the Measures － Business Portfolio SHIFT (Building a portfolio that is both highly profitable and resilient) [Short term] [Short to medium term] [Medium to long term

  10. Slide 10: Direction and Strategy of Our Business Portfolio

    Part 1 Achievement of Swift Recovery to our Growth Path (２) Purpose and Overview of New Medium-term Management Plan (2/2) － Direction and Strategy of Our Business Portfolio － • Clarify positioning of individual strategic business units based on ”market potential” and “our demonstration of strengths,

  11. Slide 11: Sustainability Management

    Part 1 Achievement of Swift Recovery to our Growth Path (３) Sustainability Management 11 12 © 2021 Sumitomo Corporation

  12. Slide 12: Panel Discussion by Outside Directors

    Panel Discussion by Outside Directors Outside Director Koji Ishida x Outside Director Nobuyoshi Ehara 12 14 © 2021 Sumitomo Corporation

  13. Slide 13: Brief profiles of the panelists

    Part 1︓Achievement of Swift Recovery to our Growth Path Brief profiles of the panelists Koji Ishida June 2017 － Outside Director, Sumitomo Corporation He has wide-raging knowledge and a wealth of experience in finance and business management, accumulated through his many years working in important p

  14. Slide 14: Questions and Answers

    Questions and Answers President and CEO Hyodo x Outside Director Ishida x Outside Director Ehara 14 16 © 2021 Sumitomo Corporation

  15. Slide 15: Sustainability Management to Achieve Sustainable Growth

    Part 2 Sustainability Management to Achieve Sustainable Growth 2:10-2:20 Sustainability Management of Sumitomo Corporation CSO/CIO, Hideki Yamano Senior Managing Executive Officer, 2:20-2:30 Infrastructure Business Unit Strategy Responding to GM of Infrastructure Business Unit, Changes in the Busine

  16. Slide 16: Sustainability Management of Sumitomo Corporation

    Sustainability Management of Sumitomo Corporation CSO/CIO, Hideki Yamano 16 18 © 2021 Sumitomo Corporation

  17. Slide 17: Sustainability Management of Sumitomo Corporation

    Part 2 Sustainability Management to Achieve Sustainable Growth Sustainability Management of Sumitomo Corporation - Transform the Sumitomo Corporation Group’s business activities Pursue sustainable growth with society suitable for the realization of sustainable society Sustainable society Medium to l

  18. Slide 18: Key social issues and long-term goals for the Sumitomo Corporation Group

    - Key social issues and long-term goals for the Sumitomo Corporation Group Development and Sustainability of evolution of the society the society 【Long-term goals】 【Key Social 【Key Social issues 】 【Long-term goals】 issues 】  Contribute to  Aim for carbon development of local Development industries

  19. Slide 19: Setting Medium-term Goals for Key Social Issues and Long-term Goals

    Part 2 Sustainability Management to Achieve Sustainable Growth Setting Medium-term Goals for Key Social Issues and Long-term Goals Set in June, 2020 Key Social Issues Development and evolution of the society Sustainability of the society Development Improvement Mitigation of local Quality Circular R

  20. Slide 20: Setting Medium-term Goals for Key Social Issues and Long-term Goals

    Part 2 Sustainability Management to Achieve Sustainable Growth Setting Medium-term Goals for Key Social Issues and Long-term Goals Set in June, 2020 Key Social Issues Development and evolution of the society Sustainability of the society Development Improvement Mitigation of Respect for of local Qua

  21. Slide 21: Revision to Policies on Climate Change Issues

    Part 2 Sustainability Management to Achieve Sustainable Growth Revision to “Policies on Climate Change Issues” Responses to climate change risks  Regularly monitor the status of major risks in light of global trends in climate change at the Management Council and the Board of Directors  Consider m

  22. Slide 22: Sustainability Management to Achieve Sustainable Growth

    Part 2 Sustainability Management to Achieve Sustainable Growth 2:10-2:20 Sustainability Management of Sumitomo Corporation CSO/CIO, Hideki Yamano Senior Managing Executive Officer, 2:20-2:30 Infrastructure Business Unit Strategy Responding to GM of Infrastructure Business Unit, Changes in the Busine

  23. Slide 23: Appendix: Setting Medium-term Goals for Key Social Issues (1/2)

    Part 2 Sustainability Management to Achieve Sustainable Growth <Appendix> Setting Medium-term Goals for Key Social Issues and Long-term Goals（1/2） Key social issues Long-term goals Medium-term goals (newly set) Mitigation  Aim for carbon  Reduce the Group’s CO2 emissions 50% or more by 2035 (compa

  24. Slide 24: Appendix: Setting Medium-term Goals for Key Social Issues (2/2)

    Part 2 Sustainability Management to Achieve Sustainable Growth <Appendix> Setting Medium-term Goals for Key Social Issues and Long-term Goals（1/2） Key social issues Long-term goals Medium-term goals (newly set) Developme  Contribute to  Develop local industries, create jobs, and develop human reso

  25. Slide 25: Appendix: Revision to Policies on Climate Change Issues

    Part 2 Sustainability Management to Achieve Sustainable Growth <Appendix>Revision to “Policies on Climate Change Issues” Long-term Existing Goals Aim for carbon neutrality by 2050 and challenge to realize sustainable energy cycle （set in June, 2020） Goals Medium-term  Reduce the Groupʼs CO2 emissio

  26. Slide 26: Appendix: Revision to Policies on Climate Change Issues

    Part 2 Sustainability Management to Achieve Sustainable Growth <Appendix>Revision to “Policies on Climate Change Issues” ＜Original policies and goals＞ <Revised policies and new goals> Fossil energy business NA Reduce indirect CO2 emissions(*3) by 90% or more by 2035 Former policy Revised policy  Th

  27. Slide 27: Infrastructure Business Unit Strategy Responding to Changes in the Business Environment

    Infrastructure Business Unit Strategy Responding to Changes in the Business Environment Tsutomu Akimoto, GM of Infrastructure Business Unit 27 29 © 2021 Sumitomo Corporation

  28. Slide 28: Business Environment Surrounding the Infrastructure Business Unit

    Part 2 Sustainability Management to Achieve Sustainable Growth Business Environment Surrounding the Infrastructure Business Unit 1 Changes in the  External factors such as COVID-19 and trade friction between the United States and China Macroeconomic Environment  Cyclical variations in the economy

  29. Slide 29: Long-term Goals of the Infrastructure Business Unit

    Part 2 Sustainability Management to Achieve Sustainable Growth Long-term Goals of the Infrastructure Business Unit  We are committed to the following two long-term goals. Building a Stable Earnings Base With a Sense of Scale We aim to build a stable earnings base with strong downward resistance, wh

  30. Slide 30: New Medium-term Management Plan Goals of the Infrastructure Business Unit

    Part 2 Sustainability Management to Achieve Sustainable Growth New Medium-term Management Plan Goals of the Infrastructure Business Unit  To achieve our long-term goals, our new medium-term management plan will drive business activities in line with the following policies. Returning to a Growth Tra

  31. Slide 31: Quantitative Targets of the Infrastructure Business Unit

    Quantitative Targets of the Infrastructure Business Unit We will work to return to a growth trajectory from FY2021 after a V-shaped recovery in business performance. Unit: 100mil yen 600 400 200 0 FY2020 (results) FY2021 (forecast) FY2022 (planned) FY2023 (aim) -200 -400 -600 Unit: 100mil yen FY2020

  32. Slide 32: Infrastructure Business Unit's Commitment to Climate Change Issues

    Part 2 Sustainability Management to Achieve Sustainable Growth Infrastructure Business Unit’s Commitment to Climate Change Issues  We will promote low-carbonization in our power generation portfolio to realize a sustainable carbon-neutral society that allows development of local societies and econo

  33. Slide 33: Infrastructure Business Unit – Shift in Business Portfolio

    Part 2 Sustainability Management to Achieve Sustainable Growth Infrastructure Business Unit – Shift in Business Portfolio  We will leverage the strengths of our business unit and shift our management resources to focus on renewable energy IPP and social infrastructure businesses with particularly s

  34. Slide 34: Key Business: Renewable Energy IPP Business

    Part 2 Sustainability Management to Achieve Sustainable Growth Key Business: Renewable Energy IPP Business  At Sumitomo, we entered the renewable energy IPP business at an early stage and, as of March 2021, we had 1.5 GW of net ownership generation capacity. This market continues to have strong gro

  35. Slide 35: Key Business: Social Infrastructure Business

    Part 2 Sustainability Management to Achieve Sustainable Growth Key Business: Social Infrastructure Business  With predictions for increased local demand for high quality infrastructure and further privatization of public infrastructure, this market has strong growth potential. Demand is also solid,

  36. Slide 36: Value Improvement: Summit Energy (Electricity Retailer)

    Part 2 Sustainability Management to Achieve Sustainable Growth Value Improvement: Summit Energy (Electricity Retailer)  Domestic electricity retailer Summit Energy will leverage its strengths (environmental value, risk management and supply-demand management capabilities) to implement growth strate

  37. Slide 37: Co-creation with the EII

    Part 2 Sustainability Management to Achieve Sustainable Growth Co-creation with the EII  Establish new value-chain by Co-creation with EII  Utilize each strength and enhance the co-work between two organizations for social implementation of innovation, such as production and consumption of hydroge

  38. Slide 38: Initiatives for Next-Generation Energy Management Business

    Initiatives for Next-Generation Energy Management Business Shingo Ueno, Head of Energy Innovation Initiative 38 40 © 2021 Sumitomo Corporation

  39. Slide 39: Social Structure Changes to Achieve a Carbon-neutral Society

    Part 2. Sustainability Management for Sustainable Growth Social Structure Changes to Achieve a Carbon-neutral Society  Since adoption of the Paris Agreement in 2015, there has been a dramatic acceleration of initiatives for the issue of global climate change. An enormous amount of ESG investment ha

  40. Slide 40: Bird's Eye View and Three Priority Fields of a Carbon-free Energy System

    Part 2. Sustainability Management for Sustainable Growth Bird’s Eye View and Three Priority Fields of a Carbon-free, Recycling-oriented Energy System  Overhead view of a carbon-free, recycling-oriented energy system for achieving a Carbon-neutral society as envisaged by the EII  Survey value chain

  41. Slide 41: Creation of Next-generation Businesses for a Carbon-free Energy System

    Part 2. Sustainability Management for Sustainable Growth Creation of Next-generation Businesses for a Carbon-free, Recycling-oriented Energy System Conventional energy Power generation Industry Consumers Transportation and heating New demand and New demand and synergies Creation of new energy manage

  42. Slide 42: Organization & Structure

    Part 2. Sustainability Management for Sustainable Growth Organization & Structure  Dynamic and effective project-based organization & structure Management Business Dept. / Team / Project Design & Strategy Dept. Hydrogen business Dept. Shingo Ueno Zero Emission Solution Business Dept. Head of EII Se

  43. Slide 43: Examples of Main Projects to be Promoted by the EII

    Part 2. Sustainability Management for Sustainable Growth Examples of Main Projects to be Promoted by the EII  Driving projects that leverage the strengths (cross-organizational collaboration and global networks) of the Sumitomo Corporation Group Green hydrogen manufacture and Hydrogen Business Dept

  44. Slide 44: Project Introduction (1): Hydropower-based Hydrogen Manufacture in Sarawak, Malaysia

    Part 2. Sustainability Management for Sustainable Growth Project Introduction (1): Hydropower-based Hydrogen Manufacture in Sarawak, Malaysia Green hydrogen manufacturing project using the abundant, low-cost hydroelectric power generation capabilities of the state of Sarawak Bintulu, • We signed an

  45. Slide 45: Project Introduction (2): Green Electricity Platform Business

    Part 2. Sustainability Management for Sustainable Growth Project Introduction (2): Green Electricity Platform Business Green electricity platform business generated from distributed renewable energy electricity Project partners  Step (1): Adopt distributed renewable energy electricity  Start with

  46. Slide 46: Project Introduction (3): Forestry Business and Carbon Management

    Part 2. Sustainability Management for Sustainable Growth Project Introduction (3): Forestry Business and Carbon Management As a trading company with the largest amount of forest resources, we will work on new environmental value creation projects based on carbon management. Privately-owned timber Pr

  47. Slide 47: Goals of the EII

    Part 2. Sustainability Management for Sustainable Growth Goals of the EII Establishment of a future earnings base for Sumitomo Corporation Achievement of a Carbon-neutral society by establishing a decarbonization and recycling energy system 47 49 © 2021 Sumitomo Corporation

  48. Slide 48: Questions and Answers

    Questions and Answers CSO/CIO Yamano x GM of Infrastructure Business Unit Akimoto x Head of EII Ueno 48 50 © 2021 Sumitomo Corporation

  49. Slide 49: DX-based Corporate Transformation (CX)

    Part 3 DX-based Corporate Transformation (CX) Executive Vice President and CDO, Toshikazu Nambu 3:20-3:50 Panel Discussion Outside Director, Akiko Ide Facilitator : GM of DX Center, Bin Haga 3:50-4:10 Questions and Answers 49 51 © 2021 Sumitomo Corporation

  50. Slide 50: Brief profiles of the panelists

    Part 3︓DX-based Corporate Transformation(CX) Brief profiles of the panelists Akiko Ide June 2020 Outside Director, Sumitomo Corporation She served in several key positions for many years at a major telecommunications carrier, working as a group company executive and as a fulltime audit & supervisory

  51. Slide 51: DX Activity Timeline

    Part 3. DX-based Corporate Transformation (CX) DX Activity Timeline FY 2018 2019 2020 2021 15 members 75 members 150 members (at DX Center) ●DX Center launched ●CDO ●Global DX Center Organization (Including Corporate IT) ●Insight Edge Inc. (AI technology subsidiary) ●Collaboration with SCSK ●HAX Tok

  52. Slide 52: Phases of Business Creation Through DX

    Part 3. DX-based Corporate Transformation (CX) Phases of Business Creation Through DX Medium-term Management Plan 2020 SHIFT 2023 (FY2021 to FY2023) (FY2018 to FY2020) Development of a DX-ready environment Transformation of the Sumitomo Group (IT infrastructure, corporate culture) (Solving social is

  53. Slide 53: SHIFT 2023 Next-generation growth fields

    Part 3. DX-based Corporate Transformation (CX) SHIFT 2023 Next-generation growth fields • Six “next-generation growth fields” have been identified based on market potential and our strengths. We will strengthen and cultivate businesses in these fields in the medium to long term throughout the entire

  54. Slide 54: Summit DX (Pursuit of Operational Excellence)

    Part 3. DX-based Corporate Transformation (CX) Summit DX (Pursuit of Operational Excellence) Rich data acquired through Summit’s Data-based AI learning and DX measures and improvement effects of business base algorithm-based output optimized data output Number of stores: 118 DX measures Annual sales

  55. Slide 55: Food Distribution Industry DX (Vertical SaaS)

    Part 3. DX-based Corporate Transformation (CX) Food Distribution Industry DX (Vertical SaaS) Supermarkets and food Food manufacturers Wholesalers Summit retailers 1st step Inventory and Demand Manufacture prediction Retail DX distribution quantity optimization (customer visits, sales) solutions opti

  56. Slide 56: Retail/Consumer Business: Cross-industry DX

    Part 3. DX-based Corporate Transformation (CX) Retail/Consumer Business: Cross-industry DX A consumer data-based platform of Sumitomo’s operating companies Data analysis Customer data sharing Cross-marketing New service development TV and Shopping Dispensing Specialty Supermarkets Drugstores catalog

  57. Slide 57: Appendix: Promotion System

    Part 3. DX-based Corporate Transformation (CX) <Appendix> Promotion System Business Units DX Center Partners /Regions Open Corporate collaboration ◆Start-ups IT Venture Issues Platform Capital ◆Accelarator & DX (CVC) Ideas Consulting Data Marketing Tech SC Digital Insight Digital Media Edge社 technol

  58. Slide 58: Panel Discussion

    Panel Discussion Executive Vice President and CDO Toshikazu Nambu x Outside Director Akiko Ide 58 60 © 2021 Sumitomo Corporation

  59. Slide 59: Questions and Answers

    Questions and Answers CDO Nambu x Outside Director Ide x GM of DX Center Haga 59 61 © 2021 Sumitomo Corporation

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