Sumitomo Corporation · TSE:8053

Sumitomo — Investor Day (September 2022)

41 slides from Sumitomo's investor day presentation, Sep 14, 2022

  1. Slide 1: Investor Day 2022: To demonstrate our true value

    Investor Day 2022 To demonstrate our true value Sumitomo Corporation September 14, 2022 0 © 2022 Sumitomo Corporation

  2. Slide 2: Investor Day 2022 Program

    Investor Day 2022 - To demonstrate our true value - Time Program Speakers 1:30〜1:35 Opening Remarks President and Chief Executive Officer, Masayuki Hyodo 1:40〜1:50 Presentation by CSO Managing Executive Officer, Chief Strategy Officer, Hirokazu Higashino Part 1 Business Unit Strategy under SHIFT 202

  3. Slide 3: Opening Remarks

    Opening Remarks President and Chief Executive Officer , Masayuki Hyodo 2 © 2022 Sumitomo Corporation

  4. Slide 4: Promotion of SHIFT 2023 to Enhance Corporate Value

    Promotion of SHIFT 2023 to Enhance Corporate Value Representative Director, Managing Executive Officer, and Chief Strategy Officer, Hirokazu Higashino 3 © 2022 Sumitomo Corporation

  5. Slide 5: Recovery of Earning Power (Trend of Quarterly Results)

    Promotion of SHIFT 2023 to Enhance Corporate Value 1. Recovery of Earning Power (Trend of Quarterly Results)  Although there was positive impact from the external environment such as the rise in mineral resource prices, our earning power is steadily recovering, as various measure under structural r

  6. Slide 6: Overview of SHIFT 2023

    Promotion of SHIFT 2023 to Enhance Corporate Value 2-1. Overview of SHIFT 2023  Having the Business Portfolio SHIFT at the core of structural reform, we are promoting Framework SHIFT that guarantees the effectiveness, and Management Base SHIFT that supports them both.  We will continue to accelera

  7. Slide 7: Steady Progress in the Three SHIFTs (Business Portfolio SHIFT)

    Promotion of SHIFT 2023 to Enhance Corporate Value 2-2. Steady Progress in the Three SHIFTs (Business Portfolio SHIFT)  We collected 210 billion yen in funds and made steady progress in recovering management resources to shift 280 billion yen mainly to Steady Business Growth category. Growing earni

  8. Slide 8: Steady Progress in the Three SHIFTs (Business Portfolio SHIFT)

    Promotion of SHIFT 2023 to Enhance Corporate Value 2-3. Steady Progress in the Three SHIFTs (Business Portfolio SHIFT)  We exited from low-profitability businesses and promoted turnarounds, including businesses with challenges. Earnings improved by approximately 100 billion yen compared to FY2020.

  9. Slide 9: Steady Progress in the Three SHIFTs (Business Portfolio SHIFT)

    Promotion of SHIFT 2023 to Enhance Corporate Value 2-4. Steady Progress in the Three SHIFTs (Business Portfolio SHIFT)  We will promote with greater effort in strengthening earning power commensurate with invested capital and creating new core businesses that will lead the expansion of earnings in

  10. Slide 10: Promoting Growth Strategy Centered on Sustainability Management

    Promotion of SHIFT 2023 to Enhance Corporate Value 3-1. Promoting Growth Strategy Centered on Sustainability Management  We are strategically reallocating management resources, centered on enhancement of sustainability management.  We have been incorporating long-term perspectives such as digitali

  11. Slide 11: Incorporating Key Social Issues and Medium/Long-term Goals into Business Strategy

    Promotion of SHIFT 2023 to Enhance Corporate Value 3-2. Incorporating Key Social Issues and Medium/Long-term Goals into Business Strategy  We see the social needs as business opportunities and integrate them into the growth strategies of the SBUs, and we are carrying out the monitoring using the PD

  12. Slide 12: Business Unit Strategy: Metal Products Business Unit

    Part 1 Business Unit Strategy under SHIFT 2023 Metal Products Business Unit Managing Executive Officer, General Manager, Metal Products Business Unit, Katsuya Inubushi 11 © 2022 Sumitomo Corporation

  13. Slide 13: Overview of Business Portfolio

    Metal Products Business Unit Overview of Business Portfolio Automotive, shipbuilding, Construction materials, civil Electrical machinery, home engineering, industrial Energy railway appliances machinery Steel Products Business SBU (= Sumitomo Corporation Global Metals) OCTG and Line Pipe Business SB

  14. Slide 14: State of Business Portfolio (Four Quadrants)

    Metal Products Business Unit State of Business Portfolio (Four Quadrants) • Regarding businesses under value realization, we largely completed exit by the end of FY2021 through structural reforms, which will be described subsequently. • Together with capital investments in the OCTG and line pipe bus

  15. Slide 15: SHIFT 2023: Results of Structural Reforms in First Fiscal Year

    Metal Products Business Unit SHIFT 2023: Results of Structural Reforms in First Fiscal Year Tubular Business Development SBU OCTG and Line Pipe Business SBU • During the previous medium-term plan, the performance was on a downward trend even after excluding one-off losses, and businesses with low co

  16. Slide 16: Structural Reform Example 1: Reorganization of Steel Products Business Portfolio

    Metal Products Business Unit Structural Reform Example 1: Reorganization of Steel Products Business Portfolio Tubular Business Development SBU OCTG and Line Pipe Business SBU • Following the companywide structural reform project, we defined and implemented our business portfolio reorganization polic

  17. Slide 17: Structural Reform Example 2: Business Model Transformation of North America Tubular Group

    Metal Products Business Unit Structural Reform Example 2: Business Model Transformation of North America Tubular Group Companies SBU Tubular Business Development SBU OCTG and Line Pipe Business SBU • As a result of consolidating group companies and operation sites, we significantly reduced asset siz

  18. Slide 18: Changes in Trend of Global Steel Industry and Business Unit's Actions

    Metal Products Business Unit Changes in Trend of Global Steel Industry and Business Unit’s Actions Crude steel production of major countries 1 Global crude steel production (efforts and changes toward decarbonization and carbon neutrality) and regions in 2021 (1,000 tons) China 1,032,790 (53%) Chang

  19. Slide 19: SHIFT 2023: Efforts from Second Year

    Metal Products Business Unit SHIFT 2023: Efforts from Second Year Tubular Business Development SBU OCTG and Line Pipe Business SBU • We aim for business model transformation at the respective SBUs to respond to changes in steel industry trends. Steel Products Business SBU • Alongside solving the rem

  20. Slide 20: Concept of Medium- to Long-term Efforts (Tubular Products Business)

    Metal Products Business Unit Concept of Medium- to Long-term Efforts (Tubular Products Business) • We will improve our portfolio by accelerating business model shift while utilizing the knowledge accumulated over many years. Current Medium-to-long term As an example, Sekal AS* receives service fees

  21. Slide 21: Business Unit Strategy: Transportation & Construction Systems Business Unit

    Part 1 Business Unit Strategy under SHIFT 2023 Transportation & Construction Systems Business Unit Managing Executive Officer, General Manager, Transportation & Construction Systems Business Unit, Norihiko Nonaka 20 © 2022 Sumitomo Corporation

  22. Slide 22: Contents

    Contents 01 Overview of Business Unit P.2 Growth Strategy and Profit Plan of Business 02 P.6 Unit and SBUs 03 Initiatives of SBUs Toward Growth P.11 21 © 2022 Sumitomo Corporation

  23. Slide 23: Overview of Business Unit

    01 Overview of Business Unit 22 © 2022 Sumitomo Corporation

  24. Slide 24: Businesses in Transportation and Construction Systems

    Overview of Business Unit Businesses in Transportation and Construction Systems • Lease, Ship and Aerospace field: engage in leasing and financing, commercial aviation and engine leasing, ship, and aerospace businesses • Automotive field: provide functions across the entire value chains through busi

  25. Slide 25: Execution of Business Unit Strategy Centered on SBUs

    Overview of Business Unit Execution of Business Unit Strategy Centered on SBUs • Strategic Business Units (SBUs), which group businesses into strategic units, execute and promote strategies with clear roles and positioning. Division Department SBU Business scope 4 divisions 19 departments 15 SBU Pla

  26. Slide 26: SBU Portfolio

    Overview of Business Unit SBU Portfolio • Steady Business Growth: For leasing, commercial aviation and equipment rental SBUs, build up high-quality assets, expand products and regions to expand earning capacity. • Value Creation: Focus on increasing profitability through expanding products and servi

  27. Slide 27: Growth Strategy and Profit Plan of Business Unit and SBUs

    02 Growth Strategy and Profit Plan of Business Unit and SBUs 26 © 2022 Sumitomo Corporation

  28. Slide 28: Summary of the First Fiscal Year of SHIFT 2023

    Growth Strategy and Profit Plan of Business Unit and SBUs Summary of the First Fiscal Year of SHIFT 2023 • In FY2021, through the execution of the strategy by each SBU, profits recovered to the level before COVID-19 even after reflecting the impact of the Russian- Ukrainian situation. Profit for the

  29. Slide 29: Efforts of Tire SBU (Business Transformation at TBC)

    Growth Strategy and Profit Plan of Business Unit and SBUs Efforts of Tire SBU (Business Transformation at TBC) Business transformation by new management team Equity in earnings from TBC Revamp of management Improvement of earning Streamlining of 40 (Hundred million yen) 1 structure and reform of 2 p

  30. Slide 30: Recognition of Changes in the Business Environment

    Growth Strategy and Profit Plan of Business Unit and SBUs Recognition of Changes in the Business Environment • Amid increasing uncertainty about the global economic outlook, we promote growth strategies anticipating changes in the business environment and industry structure while increasing resilien

  31. Slide 31: Strategies and Actions to Achieve FY2024 Plan

    Growth Strategy and Profit Plan of Business Unit and SBUs Strategies and Actions to Achieve FY2024 Plan • Aim to achieve a profit of 81 billion yen in FY2024 by strengthening the business platforms, expanding products and services, and entering peripheral businesses. Strategies and actions of each S

  32. Slide 32: Initiatives of SBUs Toward Growth

    03 Initiatives of SBUs Toward Growth 31 © 2022 Sumitomo Corporation

  33. Slide 33: Commercial Aviation SBU

    Initiatives of SBUs Toward Growth Commercial Aviation SBU Deployment of leasing business through SMFL Helicopter leasing Air mobility Aircraft leasing Maintenance and repair Aftermarket and Engine leasing Deployment of various services at Sumitomo Corporation components Aircraft leasing business Air

  34. Slide 34: Fleet Management SBU

    Initiatives of SBUs Toward Growth Fleet Management SBU Automotive leasing and peripheral services Enhance fleet management through the business platform of domestic industry leader Sumitomo Mitsui Auto Service (SMAS) to deploy businesses into growth fields and lead mobility societal innovation in ea

  35. Slide 35: Equipment Rental SBU

    Initiatives of SBUs Toward Growth Equipment Rental SBU Construction equipment rental business Contribute to improving safety and productivity in the construction industry through the supply of reliable construction equipment Increase earnings in multiple markets at different growth stages by expandi

  36. Slide 36: Monitoring and Supervisory Functions for Improvement of Corporate Value

    Part 2 Monitoring and Supervisory Functions for Improvement of Corporate Value - Panel Discussion - Outside Director Koji Ishida x Outside Director Kimie Iwata 35 © 2022 Sumitomo Corporation

  37. Slide 37: Brief profiles of the panelists

    Part 2︓Panel Discussion by outside directors Brief profiles of the panelists Koji Ishida June 2017 ー 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 positions at

  38. Slide 38: Increasing the Corporate Value for Realization of Sustainable Society

    Increasing the Corporate Value for Realization of Sustainable Society Representative Director, President and Chief Executive Officer, Masayuki Hyodo 37 © 2022 Sumitomo Corporation

  39. Slide 39: Responding to Changes in the Business Environment

    Closing Presentation Responding to Changes in the Business Environment • We have enhanced our earning power by steadily executing structural reforms. For the Metal Products Business Unit and Transportation & Construction Systems Business Unit presented today, we were able take in the effect of marke

  40. Slide 40: Toward Greater Effectiveness of Structural Reforms

    Closing Presentation Toward Greater Effectiveness of Structural Reforms [Enhancing earning power and resistance to downward pressure] We will establish structurally strong businesses with resistance to downward pressure that can minimize losses and create expected profits in overall portfolio under

  41. Slide 41: Our Value Creation Model

    Closing Presentation Our Value Creation Model ′ 40 © 2022 Sumitomo Corporation

Sumitomo — Investor Day (September 2022) on 6ix