P.12 Dialogue with Outside Directors

12 Introduction

Roundtable Discussion among Outside Directors

From Transformation to Results and On to Future Growth

Questioning the effectiveness of our business portfolio transformation and governance As we enter the final year of Medium-Term Management Plan 2026, our business portfolio transformation and governance reforms are advancing to the next stage. Will these transformations lead to sustained enhancement of corporate value, and not end as short-lived initiatives? In this section, we invited two Outside Directors to discuss their assessment of the reforms to date, the challenges ahead, and the role of the Board of Directors in shaping the next medium-term management plan.

Nana Otsuki

Outside Director Outside Director since June 2024. Has extensive experience in financial and capital market analysis and corporate governance, and has served as a university professor and an outside officer of listed companies. Leverages her extensive expertise in market analysis and corporate finance to supervise management from a capital markets perspective, with a focus on enhancing corporate value and strengthening governance.

Haruyasu Asakura

Outside Director Outside Director since June 2024. Has extensive experience in the private equity industry, with a long track record in corporate investment, M&As, post-merger integration (PMI), and corporate value enhancement. Leverages his expertise in investment and capital policy, as well as business portfolio strategy, to supervise management with a focus on enhancing the Companyʼs corporate value.

Nana Otsuki, Outside Director (left) / Haruyasu Asakura, Outside Director (right)

Sumitomo Corporation Groupʼs current position and challenges ahead

Asakura: Since joining the Board two years ago, I have seen the executive management team engage in highly rigorous discussions on our business portfolio and the framework for evaluating each business. Recently announced initiatives̶ including our decision to divest the Ambatovy nickel project and make major investments in SCSK and Sumisho Air Lease̶ are the results of our steady business portfolio transformation. At the same time, the key is to maintain this momentum. With this in mind, the executive side is strongly determined to continue taking proactive steps forward, rather than rest on its achievements. I believe we need to embed the principles of becoming “No. 1 in Each Field” and “Growth leveraged by strengths” throughout our organization, so that todayʼs transformation leads to sustained growth.

Otsuki: In addition to major M&As and asset replacements, our transition to a Company with an Audit & Supervisory Committee has been a significant development over the past two years. With greater authority delegated to the executive side, a more focused Board agenda, and more time for in- depth discussion, I believe the transition is now delivering outcomes. I also feel that the executive sideʼs commitment and determination̶both essential to achieving sustained growth̶has grown even stronger.

Asakura: Over the past two years, the President has consistently communicated his strategic direction of becoming “No. 1 in Each Field” and achieving “Growth leveraged by strengths.” He has also conveyed this message directly to employees through initiatives like SHINGO CAFÉ, which contributes to a sense of unity and momentum within our organization. The transition has also clarified the division of responsibilities between execution and supervision. In addition, I have observed active discussions at Management Council meetings, where participants engage with a strong sense of ownership that goes beyond the interests of their individual organizations. Going forward, we need to ensure that these changes do not remain temporary, but instead become embedded in a corporate culture that empowers people to make autonomous decisions and embrace new challenges.

Otsuki: I also believe the Presidentʼs unwavering commitment to growth has steadily taken root throughout our organization. The Board continuously monitors where each business is positioned within our four-category portfolio framework and how it is progressing toward its strategic objectives. On the other hand, the most important thing going forward is whether each business can evolve into one where people on the front lines think independently and drive the business with autonomy and agility. How we cultivate this level of organizational self-direction will be a key challenge as we enter our next stage of growth.

Business portfolio transformation and growth investments

Asakura: The key to transforming our business portfolio lies in determining which assets we should select for replacement. Acquiring a business is never easy, but divesting it at the right