P.37 Special Feature: Digital & AI Strategy (DAIS)

37 01. Value Creation Stories for the Future

Message from CDO and CIO

We will create new value and enhance sustainable corporate value

through the deployment of digital and AI technologies across business frontlines and corporate functions.

Develop and drive Digital & AI Strategy (DAIS)

Since establishing the DX Center in 2018, we have positioned the utilization of digital technology as a key pillar of our management strategy and accelerated business transformation across the Company. In response to the rapid advancement of AI, we formulated our Digital & AI Strategy (DAIS) in October 2025 to accelerate the “Refine with digital, Profit with digital” initiative outlined in Medium-Term Management Plan 2026. Through DAIS, we aim to leverage digital and AI technologies across all business frontlines and build new value creation models to lead the transformation of society and industry. To drive DAIS, we established the Digital AI Group in April 2026 to integrate our business and corporate functions (CDO/CIO). Through this integrated structure, we aim to accelerate the implementation of DAIS and further strengthen our competitive advantage.

The Sumitomo Corporation Groupʼs distinct competitive advantage

One of the Sumitomo Corporation Groupʼs distinct competitive advantages is its robust business platform for realizing digital- and AI-driven transformation across society and industry. SCSK, which became our wholly owned subsidiary in FY2025, has built a strong track record as a system integrator through its advanced software development capabilities. In 2024, it integrated Net One Systems, establishing full-stack service spanning everything from network infrastructure to applications. Together with the Groupʼs digital solution companies including Insight Edge (DX technologies) and SC Digital (data marketing), we leverage these capabilities to develop new value creation models. By combining these digital solutions with the frontline capabilities we have cultivated as an integrated trading and business investment company, we are deploying digital and AI technologies across all business frontlines. Leveraging our network of around 900 consolidated operating companies, a customer base of around 100,000 companies, and our diverse industry expertise and talent, we are creating new business models and generating new value. These collective efforts have built a unique competitive advantage for the Sumitomo Corporation Group, accelerating sustainable growth and enhancing corporate value. To strengthen the talent foundation underpinning our transformation, we introduced our proprietary digital skills certification program, D-Grade, in April 2026. A key feature of this program is that it recognizes hands-on implementation experience in business frontlines as a certification requirement, alongside formal qualifications. By making skilled digital talent visible across the organization, the program enables more agile and effective talent management. Furthermore, under the CIO function, we are strengthening IT infrastructure that supports company-wide digital and AI adoption, while advancing IT governance and cybersecurity measures suited to the AI era.

Leading social and industrial transformation and enhancing corporate value

SCSK is focusing on three priorities: “AI-driven self-transformation and business expansion,” “Transformation into an offering-based model,” and “Thorough utilization of competitive advantages and strengths.” In particular, SCSK is creating new business opportunities through its offering-based model, under which it identifies customersʼ management and operational challenges and proposes solutions. Leveraging the knowledge in the manufacturing sector it has cultivated as a systems integrator, SCSK established SCSK Consulting Co., Ltd. in July 2026. Going forward, we will leverage our global reach to accelerate these initiatives. SCSKʼs digital solution capabilities represent a key driver in realizing DAIS. In addition, we are advancing the deployment of digital and AI technologies across our business frontlines and corporate functions. For example, in our tubular products business, we expect to generate economic value in the range of several billion yen through the enhancement of trading operations. Within our corporate functions, we are enhancing operational efficiency and effectiveness through business process redesign and AI adoption. Furthermore, we have launched more than 70 co-creation projects in collaboration with SCSK. We are also deploying and enhancing PROACTIVE, SCSKʼs enterprise resource planning (ERP) system, across the Sumitomo Corporation Group. Through these initiatives, we deliver customer solutions that incorporate our practical expertise and operational know-how. Going forward, we will continue to work closely with SCSK and various partners to lead the transformation of society and industry while driving sustainable corporate value enhancement.

• ※Tatsushi Tatsumi Managing Executive Officer Group CEO, Digital AI Group CDO and CIO
• ※ROE

Improve profitability (margin)

• Improve PBR

Increase the expected growth rate Reduce the cost of capital

• PER

Enhance shareholder returns

• ※Presentation at SCSK Forum 2026 in May 2026