The Board of Directors and the Nominating and Compensation Advisory Committee of the Company are operating properly and functioning satisfactorily. The management team takes governance seriously, and it can be said that the Company is well managed and has a high level of governance as compared to other companies. Since we, the outside directors, are provided with information and explanations on matters necessary for decision-making and related matters in advance of each Board of Directors meeting, lively discussions take place at each Board of Directors meeting. each Board of Directors meeting among all participants. It would be even better if the time of the board meeting could be used more effectively to secure more time for discussion of important issues. In addition, as the pace of change in the external environment accelerates, We believe that the Company’s Board of Directors is required to discuss the risks surrounding the Company’s business in a more clear and systematic manner.
We are extremely delighted that this fiscal year we had more opportunities to have dialogue with the general managers of the business units and people in charge of operations.
However, due to the impact of the COVID-19 crises, it was unfortunate that we were not able to visit the various sites and discuss the issues in a more informal setting.

The Company is structured to conduct business in five areas: Automotive, Electronics, Environment & Energy, Infocommunications, and Industrial Materials. Since its founding in the copper wire and cable business, the Company has diversified its business domain by developing elemental technologies refined in that business, as a result of years of R&D, and has strengthened the Company’s foundation based on a sound financial base. In each of our business segments, we have focused on fostering relationships of trust with our customers, and at the individual product level, we have worked to develop new products and cultivate new markets through constant innovation. We are rooted in a“ Product Tree” that has branched out into businesses founded on our proprietary technologies, and from this perspective, we are different from so-called“ conglomerates*.” Even when facing the stagnation of global economic activities due to COVID-19 the Company has exhibited a certain degree of resilience to the economic impact that varies depending on the business domain.
In order for the Company to sustain long-term growth and development in the future, it is necessary to secure the overwhelming strength of its mainstay wiring harness business in terms of quality, cost, and delivery, and at the same time, to nurture other core businesses to follow in its footsteps. Even without overly selecting and focusing, we will place the three business segments of Mobility, Energy, and Communications at the center of our future business. We must utilize the diverse technology and product base that we have cultivated, and actively utilize internal and external resources through collaboration within and outside the Group, including joint research with universities and companies in other industries, and M&A.

*Conglomerate refers to a giant company that spans multiple industries, formed by mergers and acquisitions of companies in different industries

Sumitomo Electric has traditionally maintained a management stance in harmony with the public interest, with the Sumitomo Spirit as its fundamental value axis. We believe that the culture of aiming to be our ideal future state of a “Glorious Excellent Company.” has taken root in our company. The fact that there are many very sincere and dedicated individuals who work for the Company is a factor that forms the good corporate culture of this company. For the Company to continue to grow and develop sustainably over the long term, innovation based on the diversity and aggressive spirit that we possess is essential. The key to this is the development of human resources and organization base that enables diverse human resources to actively work together.
The Company is making constant progress in terms of a comfortable working environment for female employees, but the number of employees is still small. In particular, we think the ratio of women in management is low.
Also, it is desirable to increase the number of non-Japanese executives, taking advantage of our strength as a global corporate group with approximately 300 subsidiaries around the world outside of Japan. I hope that we will develop into a company that embraces diverse values by broadening employment opportunities for women, foreigners, and people with disabilities. As a company with a diverse range of businesses, we believe that our growth strategy will become stronger and more feasible when it interacts with opinions from a variety of external perspectives.
In order to fulfill our role as an outside director, we will endeavor to identify medium- to long-term management issues and exchange my views with the executive officers.