Society and economy facing various difficulties and entering a major transition period
Since its founding in 1897, the Sumitomo Electric Group has improved various technologies like a family tree based on the copper wire and cable business, which originated from Sumitomo’s copper business. It has offered highly functional and high-performance products that contribute to a “safer and more comfortable” society and support infrastructure and various industries. Teigo Iba, the second Director General of the Sumitomo Family, left the following message: “Sumitomo’s business must benefit not only Sumitomo itself but also the nation and society in general.” The management approach of always ensuring harmony with the public interest and solving social issues has been fully passed down to the Sumitomo Electric Group.
Meanwhile, modern society faces various difficulties, including the intensification of global warming, pandemics of infectious diseases, natural disasters, and military conflicts.
The major social and industrial transformation, including GX,*1 DX,*2 and CASE,*3 will continue to move forward.
The Sumitomo Electric Group has a wealth of business experience in all these fields and an advantage based on its track record in terms of technology. We consider such a major transformation as a golden opportunity toward sustainable growth.
Against this backdrop, we formulated the Sumitomo Electric Group 2030 VISION, a long-term vision toward 2030, in May 2022, to present the grand vision of the Sumitomo Electric Group and share understanding among all group employees in the period of major transformation when accurate, quick, and flexible action is required. The 2030 VISION clearly states that the group will unleash all of its capabilities toward realizing a “safer and more comfortable” society, to which the group has been committed since its foundation, and making our society “green” and environmentally friendly.
*1: Abbreviation for “Green Transformation,” to shift the industrial and social structure from fossil energy to clean energy
*2: Abbreviation for “Digital Transformation,” to improve people’s lives by spreading advanced IT
*3: Acronym for “Connected,” “Autonomous,” “Shared & Services,” and “Electric.” The transformation aims to restructure the automotive society through powertrain innovation (power source), ecology (environmental protection), safety and security, and intelligence (information).
Overall concept of the 25M
The Medium-term Management Plan 2025 (“25M”), which was formulated recently, serves as the first milestone of the 2030 VISION, the long-term vision, to realize a “Glorious Excellent Company,” which is what the Sumitomo Electric Group strives to be. The overall concept of the 25M is to steadily promote “Growth Strategies” for business, which aim to evolve our technologies further to meet the challenges of this era of change, and “Strengthening Business Foundations,” which aims to strengthen our management foundations to build a corporate structure that is resilient to change, with the integrated capabilities of the group under the slogan of “Creating a Green Society through our Connecting and Supporting Technologies,” thereby enhancing the medium- and long-term corporate value.
Enhancing our sustainability initiatives to achieve shared prosperity with our stakeholders
25M Growth Strategies
In the Growth Strategies, nine groups of products and services that are expected to grow in particular in the respective key areas of energy, infocommunications, and mobility are designated as “growth themes,” in line with the development of a decarbonized society and the evolution of an information society. We will reliably seize business opportunities on these themes for various groups of products in each segment. We plan to increase net sales related to “growth themes” to about 1.1 trillion yen, up 400 billion yen from the FY2022 level, by FY2025. The Sumitomo Electric Group also operates important businesses, which are linked to the Genealogy of Technology evolved from the foundation of the copper wire and cable business, which support society, and whose value cannot be determined based solely on profitability. We have a mission to continue developing these businesses.
The 2030 VISION reconfirms the unwavering basic policies of the Sumitomo Spirit and Sumitomo Electric Group Corporate Principles, both of which have been passed down to today. “With our focus on contributing to the public benefit, the Sumitomo Electric Group strives for mutual prosperity with all of our stakeholders” is our management policy. The 25M states that cooperation with multistakeholders is indispensable for our sustainable growth and enhancement of our medium- and longterm corporate value. It also aims to steadily return the results of our growth to our multistakeholders, namely, our customers, employees, suppliers, regional communities, and shareholders/investors. As practice of Multistakeholder Capitalism, we presented the specific indicators and targets in addition to the overall financial indicators. We are confident that this is a major characteristic of the 25M.
At present, the Sumitomo Electric Group has about 290,000 employees at over 400 group companies across many countries and regions, deploying business operations globally. We will continue to maximize the group’s energy and competitiveness by leveraging the quality and capabilities of its talents. We will make efforts to fulfill the 25M so that we can meet the expectations of our stakeholders.
I would like to take this opportunity to ask for your further understanding and support for our group.