P.28 Message from the CFO

28 01. Value Creation Stories for the Future

Message from CFO

We will accelerate growth by leveraging our strengths while steadily advancing business portfolio transformation to improve ROE and further enhance corporate value.

Changes in market perception

While advancing various initiatives under Medium-Term Management Plan 2026, we made several major strategic moves in FY2025, including the acquisition of a U.S.-based aircraft leasing company and the full acquisition of SCSK. In May 2026, we also completed the divestment of the Ambatovy nickel project, bringing a long-standing challenge to a close. As a result, our previously elevated cost of capital declined, and expectations for profit growth and higher ROE driven by business portfolio transformation significantly improved our PBR, lifting it from below 1.0x to well above that level. In last yearʼs Integrated Report, I stated that “we aim to restore market confidence and achieve a stable PBR above 1.0x by delivering stable profit growth across the Company.” I believe we have made steady progress toward restoring that confidence. In addition to progress on investments and asset replacements, we have been continuously enhancing our disclosures, and I have noticed a tangible shift in the nature of our dialogue with investors. The focus of such dialogue has moved from questions about individual underperforming businesses to discussions of the Companyʼs overall growth strategy. I believe this reflects growing market expectation for the Companyʼs future growth. Looking ahead, we will continue to deliver stable profit growth by focusing on our eight growth areas, while transforming our business portfolio through improvement of asset efficiency across our businesses and accelerated asset replacement. In doing so, we aim to raise ROE to a higher level.

Sumitomo Corporation’s stock price performance

• TOPIX Sumitomo Corporationʼs stock price (March 31, 2023 = 100) 370 340 310 280 250 220 190 160 130 100 70
• Sumitomo Corporationʼs PBR (Times) 2.0 1.5 1.0 0.5 0.0
• FY2023 End of 2023/3 End of 2023/6 End of 2023/9 End of 2023/12 FY2024 End of 2024/3 End of 2024/6 End of 2024/9 End of 2024/12 FY2025 End of 2025/3 End of 2025/6 End of 2025/9 End of 2025/12 FY2026 End of 2026/3 End of 2026/6
• Improve PBR
• ROE Improve profitability (margin)
• PER Increase the expected growth rate Reduce the cost of capital Enhance shareholder returns
• Reiji Morooka Representative Director, Executive Vice President Chief Financial Officer