Sumitomo Corporation · TSE:8053
Sumitomo — Investor Day (September 2023)
30 slides from Sumitomo's investor day presentation, Sep 12, 2023
Slide 1: IR Day 2023: SC Group's Non-financial Capital and Human Capital Management
IR Day 2023 SC Group’s Non-financial Capital and Human Capital Management Sumitomo Corporation September 12, 2023 © 2023 Sumitomo Corporation
Slide 2: IR Day 2023 Program
IR Day 2023 –SC Group’s Non-financial Capital and Human Capital Management- Time Program Speakers Contents Part1 Increasing SC Group’s Corporate Value 1:05~1:15 Presentation by Representative Director, President and Chief Executive Officer, ・Increasing Corporate Value over medium- to long- CEO Masay
Slide 3: Part 1: Increasing SC Group's Corporate Value
Part 1 Increasing SC Group’s Corporate Value © 2023 Sumitomo Corporation
Slide 4: Increasing SC Group's Corporate Value over medium- to long-term
01 Increasing SC Group’s Corporate Value over medium- to long-term Representative Director, President and Chief Executive Officer, Masayuki Hyodo © 2023 Sumitomo Corporation
Slide 5: Looking ahead to 2025
Looking ahead to 2025 By completing SHIFT 2023, we will establish an earnings base that ensures an ROE of 12 to 15% regardless of the external environment. By Linking this to further growth, we aim to achieve a profit of ¥600.0 bil. in FY2025. Annual profit and ROE Profit driver from FY2023 to FY2
Slide 6: Achieving sustainable growth and increasing corporate value over the medium- and long-term
Achieving sustainable growth and increasing corporate value over the medium- and long-term Pursuit of Economic Value and Expanding Non-financial Capital to realize Economic Value Maintain ROE of 12-15%, Improve profit ”Stability” and “Growth” Businesses that sustainably generate Economic Value a
Slide 7: Our Value Creation Model
Our Value Creation Model Value Creation 7 Capitals 6 © 2023 Sumitomo Corporation
Slide 8: SC Group's Value Creation: From non-financial capital perspective
02 SC Group’s Value Creation -From non-financial capital perspective- Representative Director, Senior Managing Executive Officer, Chief Strategy Officer, Hirokazu Higashino © 2023 Sumitomo Corporation
Slide 9: Value Creation Case: Tomod's Drugstore
Value Creation Case 1 -Tomod’s Drugstore- Overview of Healthcare Business Strategy Business Themes • Based on Tomod's existing footprint, dispense drugstore and pharmacy-chain consolidation roll-up Health, prevention, strategy to coordinate a healthcare platform, and Domestic extension of healthy li
Slide 10: Business environment and social value
Value Creation Case 1 -Tomod’s Drugstore- Business environment and social value 1990s Today Established Tomod's predecessor Solved social issues, aiming to achieve drugstore/dispensing 236 stores in the Tokyo (Sep. 1993) pharmacy ideals in the midst of a difficult environment metropolitan area * Fir
Slide 11: Non-financial capital supporting value creation
Value Creation Case 1 -Tomod’s Drugstore- Non-financial capital supporting value creation Social value and environmental value Provide new space * Collaboration with Summit (Kenkomi) focused on food and * Dispensation rate: Approx. Today health * Nutrition instruction and health consultation 80% * S
Slide 12: Overseas industrial park business strategy
Value Creation Case 2 - Overseas Industrial Park Business- Overseas industrial park business strategy Housing Growth strategy (3 pillars) Ports Commerce Expansion of existing Mobility Logistics Finance services businesses Solar Tenant-oriented (Renewable trade energy IPP) Overseas Industrial Rail Ex
Slide 13: Business environment and social value
Value Creation Case 2 - Overseas Industrial Park Business- Business environment and social value (↓) Second Thang Long Industrial Park (post-development) Past overseas industrial park project development 32 years (↑) Third Thang Long Industrial Park land currently being prepared (pre- development) F
Slide 14: Non-financial capital supporting value creation
Value Creation Case 2 - Overseas Industrial Park Business- Non-financial capital supporting value creation Social value and environmental value Further contribute to * Contributing to the creation of next-generation * North Hanoi sustainable city, Indonesia EX, Today countries/societies development
Slide 15: The value creation of the Sumitomo Corporation Group
Increasing our Corporate Value The value creation of the Sumitomo Corporation Group Value creation features shared throughout our Group Integrity and sincerity Collaborative creation Human capital, the source Stay a step ahead in dealing Long-term perspective of value creation Place prime importance
Slide 16: Part 2: SC Group's Human Capital Management
Part 2 SC Group’s Human Capital Management © 2023 Sumitomo Corporation
Slide 17: SC Group's Human Capital Management
01 SC Group’s Human Capital Management Representative Director, Executive Vice President, Chief Administration Officer, Takayuki Seishima © 2023 Sumitomo Corporation
Slide 18: What human capital means to us
What human capital means to us Our Value Creation Model 17 © 2023 Sumitomo Corporation
Slide 19: Sumitomo's Business Philosophy
What human capital means to us Sumitomo’s Business Philosophy Integrity and sound Don't pursue easy An enterprising spirit management gains In order to maintain integrity, the most Facing change positively and staying one Never allow yourself to be swayed by important aspect of business -- its very
Slide 20: Medium-Term Management Plan SHIFT 2023
HR Management Reform Medium-Term Management Plan SHIFT 2023 Business Portfolio SHIFT (Building a portfolio that is both highly profitable and resilient) [Short term] [Short to medium term] [Medium to long term] Asset recycling for growth Growing core earning pillars Adapting to social structural inv
Slide 21: Overview of our HR management reform
HR Management Reform Overview of our HR management reform Concepts behind our HR management reform Breaking free from seniority-based thinking and Pay for Job, Pay for Performance Expanding the pool of top-tier professionals in diverse fields Enhancing people management skills that support the auton
Slide 22: Medium-Term Management Plan SHIFT 2023
HR Management Reform Medium-Term Management Plan SHIFT 2023 Business Portfolio SHIFT (Building a portfolio that is both highly profitable and resilient) [Short term] [Short to medium term] [Medium to long term] Asset recycling for growth Growing core earning pillars Adapting to social structural Per
Slide 23: Revising the HR Management System
HR Management Reform (progress of SHIFT 2023) Revising the HR Management System HR System revision at Head Quarter In April 2021, introduced to remove obstacles from the old system and to embody our Global HR Management Policy Introduction of Job Grading System Reformation of Evaluation System Aboli
Slide 24: Improvement of People Management Skills and Autonomous Growth
HR Management Reform (progress of SHIFT 2023) Improvement of People Management Skills and Autonomous Growth Shift in dealings between supervisors and subordinates Promote bidirectional, one-on-one communication between supervisors and subordinates Measures that help improve people management skills
Slide 25: DE&I: The source of our competitiveness
HR Management Reform (progress of SHIFT 2023) DE&I "Global HR Management Policy" | Diversity, Equity & Inclusion | The source of our competitiveness Positioning DE&I as the source of our value creation, innovation, and competitiveness, and eliminating all barriers to DE&I, strive to implement our vi
Slide 26: DE&I (Promoting the women's advancement)
HR Management Reform (progress of SHIFT 2023) DE&I (Promoting the women’s advancement) Position as a highest priority issue in Japan (stand-alone), set targets, and work to achieve targets Women’s advancement Actuals Target for promotion of women’s FY2030 (%) (As of April1 of the subsequent fiscal y
Slide 27: Engagement
HR Management Reform (progress of SHIFT 2023) Engagement Started Engagement Survey from FY2022 Feature and tendency of FY2022 and FY2023 survey results Added engagement indicators as evaluation of executive remuneration 26 © 2023 Sumitomo Corporation
Slide 28: Panel Discussion
02 Panel Discussion Representative Director, Executive Vice President, Chief Administration Officer, Takayuki Seishima Executive Officer, Assistant CAO, Human Resources, Yoshiko Nakazawa Outside Director, Kimie Iwata © 2023 Sumitomo Corporation
Slide 29: Brief profiles of the panelists
Panel Discussion Brief profiles of the panelists Takayuki Seishima Representative Director, Executive Vice President, Chief Administration Officer Yoshiko Nakazawa Executive Officer, Assistant CAO, Human Resources Kimie Iwata June 2018 - Outside Director, Sumitomo Corporation She has wide-raging kno
Slide 30: © 2023 Sumitomo Corporation
29 © 2023 Sumitomo Corporation