04 January 2024

At the beginning of 2024, I would like to extend my sincere greetings to you and wish you a Happy New Year.

Looking back at last year's global economy, the U.S. continued its economic recovery, while Europe faced stagnation due to high inflation and monetary tightening, indicating an economic slowdown. Meanwhile, the introduction and evolution of new technologies such as green transformation (GX), digital transformation (DX), connected, autonomous, shared, and electric (CASE) vehicles, and generative artificial intelligence (AI) are creating a multitude of innovative business opportunities that break away from traditional boundaries.
This wave of technological advancement is also driving a significant shift in work styles and business models.

Under such circumstances, to successfully achieve the goals of our mid-term management plan in 2025, each department and group company is required to advance growth strategies and strengthen our foundations through teamwork. This year requires our careful preparation for the final year of the plan.

Based on these considerations, I have the following four requests for our employees at the beginning of the year.

1. Propose New Initiatives and Take on Bold Challenges
Each of you should always be aware of the problems in your operations and eliminate unnecessary procedures and costs. At the same time, I encourage you to bring new ideas to your workplace and position and drive operational reforms. I ask you to be proactive in suggesting ideas and taking on bold challenges without fear of failure.

2. Strengthen the Supply Chain
I understand that each department and group company has assessed risks throughout the supply chain and taken appropriate measures by their priorities. However, I urge you to re-evaluate these measures in light of the recent situation and take steps to strengthen the supply chain, such as by leveraging DX technologies.

3. Strengthen the Three Key Sources of Capital (Financial Capital, Human Capital, and Intellectual Capital)
Regarding financial capital, please remember that improving your workplace efforts will lead to a significant improvement in the financial capital of the Sumitomo Electric Group. I also encourage you to actively propose ideas to increase profitability and reduce costs through various workplace activities.

As for human capital, your individual growth directly contributes to the growth of the entire Group. I urge you to continuously acquire new knowledge and accumulate experience and expertise through internal training programs and other means.

For intellectual capital, to respond to changes in the market quickly and accurately, we need to gather various kinds of knowledge and ideas from you and pursue new possibilities. Please make proactive proposals that will generate innovation.

4. Ensure Thorough Legal Compliance
Compliance with laws and corporate ethics is an essential foundation for the sustainable growth and development of the Sumitomo Electric Group and for becoming a Glorious Excellent Company. I urge you to act in accordance with the Sumitomo Spirit and the Code of Conduct.

In conclusion, all of these requests are based on your good physical and mental health and good communication. Your well-being will improve your quality of life and work performance, while good communication is essential for building positive relationships and maximizing the potential of diverse human resources, thereby enhancing the Group's competitiveness.

I ask you to consciously engage in face-to-face communication and take steps to improve communication. Please promote mutual understanding and contribute to creating an energetic and enjoyable work environment.