04 January 2022

I would like to wish you all a Happy New Year.

The last year has witnessed progress in the global economic recovery mainly in Europe and North America in tandem with increasing coronavirus vaccination rates. The resurgence in infection cases has paralyzed economic activities across the board, causing the world situation to be persistently unstable.

This year again, we will have to face the impacts and changes brought by the pandemic. Meanwhile, changes that we face while living with coronavirus do not always invite a predicament. If each of you in your respective duties grasps changes sensitively and responds to them quickly and flexibly, such effort will surely sustain our next phase of growth.
With this being the situation, I would like to ask you to implement the following three items this year.

1. Build a Corporate Structure Resilient to Changes
To build a corporate structure resilient to changes comes as the first item.
I ask you to promote the SEQCDD^＊ activities with quantitative goals being set.
For safety, I would like you to proactively gather opinions from the front lines thereby nipping risks in the bud without fail.
In addition, I ask all departments to eliminate wastes in a bid to further improve productivity.
In our efforts toward building a corporate structure robust enough to withstand modest changes in external environments, I strongly urge you to further exercise your ingenuity and steadily implement improvements in your respective duties.

2. Make the Most of Business Opportunities
The second item is to make the most of business opportunities.
GX, green transformation that encourages a shift to renewable energy from fossil fuels; DX, digital transformation that uses digital technologies to transform products,
services, and business models, thereby strengthening competitiveness; and CASE, the acronym for Connected, Autonomous, Shared, and Electric– These approaches are all closely tied to our business and represent an unparalleled opportunity for our future sustainable growth. We must carefully examine from various angles our Group’s resources, thereby developing business opportunities into tangible results.

3. Ensure Legal Compliance Thoroughly
The third item is to ensure legal compliance thoroughly.
Last year as well saw no end to the list of cases where many companies lost in an instant trust and credibility that they had laboriously built up as a result of scandals.
Legal compliance and maintenance of corporate ethics are absolute requirements for companies to achieve sustainable development as entities trusted and respected by society. At the Sumitomo Electric Group, we implement all our corporate activities based on the Sumitomo Spirit: Banji-nissei (Do your sincere best in not only business but also every aspect of your life); Shinyo-kakujitsu (Place importance on integrity and sound management); Fusu-furi (Do not act rashly or carelessly in pursuit of immoral business); Attaching Importance to Technology; Respect for Human Resources; Long-Range Planning; and Mutual Prosperity and Respect for the Public Good. I most sincerely request that you act in compliance with the Sumitomo Spirit and our Code of Conduct.
I also encourage all of us to work together to create a cheerful, energetic, and open workplace with a sense of unity, where vertical and horizontal communication takes place actively.

Let’s view them positively as opportunities for the next phase of growth and do our best toward achieving VISION 2022.

* SEQCDD: The key elements for us to achieve our goals, namely safety, environment, quality, cost, delivery and R&D