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Medium-Term Management Plan

As of May 9, 2016

Be the Best, Be the One 2017 (FY2015-2017 medium-term management plan)

Under our current three-year medium-term management plan starting from FY2015, "Be the Best, Be the One (BBBO) 2017", in light of various changes to the environment surrounding the Sumitomo Corporation and management issues, we come together to overcome these issues and focus on the theme of outlining a path toward the realization of “What We Aim to Be in 2019, Our Centennial Year,”

Major efforts to be taken and quantitative targets are indicated below.

Major efforts

Promoting growth strategies
Promote growth strategies of each organization and company-wide growth strategies
Improve profitability of existing businesses and continue stimulation of the business portfolio metabolism
Re-examine policies for handling the upstream mineral resources business
Promoting managerial reforms
Re-examine our corporate governance and decision-making process
Fundamentally re-examine and strengthen the risk management system
Enhancing "individual capability" and "organizational capability"
Promote the development and appropriate allocation of human resources on a global basis
Combine the capabilities of the organization and promote their utilization across the entire Company
Securing financial soundness
Regain balance between the core risk buffer and risk-adjusted assets (by the end of FY2017)
Achieve the positive free cash flow of ¥500 billion (post-dividend, three-year total)

Quantitative targets

Profit targets
  • Consolidated net income(*1):
  •  
  •  
  • ROA:
  • Risk-adjusted return ratio:
  • ROE:
  • FY2015
  • FY2016
  • FY2017
  • FY2017
  • FY2017
  • FY2017
  • ¥74.5 billion(actual)
  • ¥130 billion
  • ¥220 billion or more
  • 2.5% or more
  • 9.0% or more
  • Around 9.0%
Financial policies
  • Balance between the core risk
    buffer and risk-adjusted assets:
  • Free cash flow:
  • Post-dividend free cash flow:
  • By the end of
    FY2017
  • Three-year total
  • Three-year total
  • Regain balance

  • ¥700 billion
  • ¥500 billion
  • Investment plan:
  • Three-year total
  • ¥1.0 trillion

*1 "Consolidated net income" is equivalent to the "profit attributable to owners of the parent" set out in the International Financial Reporting Standards (IFRS).
*2 The plan was partially modified in May 2016. Detail information is mentioned in the article "Notice Concerning Partial Modification of Midium-Term Management Plan(April 2015 through March 2018)".

Cautionary Note Concerning Forward-Looking Statements

This report includes forward-looking statements relating to our future plans, targets, objectives, expectations and intentions. These forward-looking statements reflect management's current assumptions and expectations of future events and, accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are not guarantees of future performance. Actual results may differ materially for a wide range of possible reasons, including general industry and market conditions and general international economic conditions. In light of the many risks and uncertainties, you are advised not to put undue reliance on these statements. The management targets included in this report are not projections and do not represent management's current estimates of future performance. Rather, they represent targets that management will strive to achieve through the successful implementation of the Company's business strategies. The Company may be unsuccessful in implementing its business strategies, and management may fail to achieve its targets. The Company is under no obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements.

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