04 October 2021
Glorious Excellent Company Award
The other day, we held group company commendation ceremonies for the FY 2020 Glorious Excellent Company Award. Launched in FY 2006, this commendation system is intended to evaluate the contribution made by each group company to the Sumitomo Electric Group based on standardized scales toward realizing our ideal vision of "Glorious Excellent Company." The assessment criteria include business performance, such as sales and profits, contribution level to the entire Group's business results, including returns, and efforts regarding SEQCDD*, such as safety and quality.
In order to help prevent the spread of COVID-19, this year again we did not hold a ceremony where winners could gather together. Instead, we held individual ceremonies for five companies winning the “special prize,” which is awarded to companies commended three or more years in a row. The awarded companies are Sumitomo Electric Lightwave Corp.; Sumitomo Electric System Solutions Co., Ltd.; Wuhan Sumiden Wiring Systems Co., Ltd.; Huizhou Zhurun Wiring Systems Co., Ltd.; and Kyushu Sumiden Seimitsu Ltd.
In FY 2020, a nomination period for the award, the Group’s business performance for the first half was subpar. This was mainly attributable to a decrease in automobile production and delays in communications and power construction projects due to the COVID-19 pandemic and a decline in optical fiber prices. However, the second half of the fiscal year saw a rapid recovery in automobile production, causing demand for automotive components to remain high. In addition, our company-wide cost reduction measures worked well. Consequently, the figures for net sales and the income and profit categories were the highest ever for the second half of a fiscal year. Thus, the business environment in FY 2020 had ups and downs like a roller coaster ride. Under such circumstances, the award-winning companies made great efforts and contributed to our performance.
Of particular note is Wuhan, the town where complete city-wide lockdown measures were taken for two months. Wuhan Sumiden Wiring Systems overcame such a severe situation and caught up with the rapid recovery of major customers and their increased production to make up for the loss, thereby achieving record-high sales and profits. I expressed my sincere gratitude for the contributions the company made to the Group’s business performance.
The award ceremonies for the four companies except Sumitomo Electric System Solutions, which is located in Japan, were held online. This year, I got the strong impression that the participants, including myself, are getting more used to online ceremonies compared to last year. Having said that, I hope to meet you not only online but also at a physical venue to celebrate the award next year.
Once again, I would like to express my appreciation to each Group company for their contribution. Thank you for your cooperation.
*SEQCDD: Safety, Environment, Quality, Cost, Delivery, and Development