1January 4, 2019
Sumitomo Electric Industries, Ltd.
Osamu Inoue, President

President’s New Year Message (summary)
I would like to wish you all a Happy New Year.
Looking back at the previous year, we find the rise of protectionism in the global society
and economy, with a number of countries placing first priority on themselves. With
international conflicts and geopolitical risks remaining high, the global situation this year
is expected to remain extremely unstable.
Moreover, the advancement of ICT and increasing globalization are generating newproducts, services and business models, quite different from mere extensions of existingones, at breakneck speed. The expectations and requests placed on companies bysociety are becoming even greater.
With this background, I would like to ask you all to implement the following three things
this year.
1. Respond Promptly to Changes in the Market Environment
In this fast-paced era, even a small change in one corner of the world can cause a great
trend over time, and there are a spate of examples showing this. Actually, not a few
companies that could not respond appropriately to such changes have stepped out ofthe business arena.
To continue achieving the sustainable growth and development of the Sumitomo ElectricGroup, each of us needs to be constantly aware of and extremely sensitive to the things
around us and to make sufficient preparations beforehand. By doing so, we can respondpromptly when a change becomes evident, and also act in anticipation of a latent change.
In particular, sales, manufacturing and research need to ensure close communication
with one another, and make assumptions in advance from a wide variety of perspectives.
If there is any sign of a change in a customer trend or a market outlook, they need toreflect that change into plant and equipment investment, product inventory, new productlaunches, etc. in a timely manner, thereby diminishing risk andexpanding opportunities.

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2. Evolve SEQCDD to Steadily Achieve Desired Results
We announced our mid-term management plan VISION 2022 in May 2018, setting highlevel targets: achievement of zero accidents in people, goods and equipment to become
a company with the highest level of safety in the world; and development of “strongfactories” through continuous improvement. To accomplish these targets, we definitely
need to further reinforce improvement activities at each division and company, and topromote company-wide cross-sectional activities under the lead of the Manufacturing
Management & Engineering Unit. Such reinforcement and promotion serve like twowheels closely associated with each other. Daily improvements eventually result inproductivity increases, product lead time reduction and decreases in inventory. To realize
this virtuous cycle, we need to share specific targets among those concerned, thereby
achieving the desired results steadily.
VISON 2022 also sets forth the “creation and enhancement of leading technology.” I
call on our engineers to be always aware of technological trends and customers’
perspectives, and to engage in research and development with a sense of speed.
3. Ensure Legal Compliance Thoroughly
Last year again saw a spate of corporate scandals ruining companies’ long-establishedconfidence. Compliance not only with laws and regulations but also with standard
operating procedures, business rules and various other regulations serves as theultimate basis for a company to realize sustainable development as an entity enjoying
the confidence and respect of society. If you feel that there is something wrong in yourdaily work, please be sure to stop for a time and check whether there is any violation
against the tenets of the Sumitomo Spirit: Banji-nissei (Do your sincere best not only inbusiness but also in every aspect of your life), Shinyo-kakujitsu (Place importance on
integrity and sound management) and Fusu-furi (Do not act rashly or carelessly in pursuitof easy gains).
To prevent wrongdoing and thoroughly ensure legal compliance, an organizationalculture and a workplace atmosphere also serve as keys. I ask our managers andsupervisors to work hard in order to create an open, cheerful and lively organization andworkplace environment where members can seek advice and engage in discussion
without any hesitation, while maintaining an appropriate sense oftension.

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We have only three months left before the end of this fiscal year. I hope that to make agood start toward achieving VISION 2022, you will enjoy your work with a positiveapproach.
■ Reference
Sumitomo Electric's Website
https://sumitomoelectric.com/

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