Sumitomo Forestry
Business in Indonesia

Sumitomo Forestry Co., Ltd.
April.2017

CORPORATE PROFILE （As of March, 2017）
Company Name

1

Sumitomo Forestry Co., Ltd.

Founded / Incorporated

1691/ 1948

Number of Employees

17,802 (Consolidated), 4,485 (Non-consolidated)

Affiliated Companies

110 (Overseas 76)

Net sales USD9,853M / Ordinary profit USD512M / Market capitalization USD2,653M(as of 31/Mar/2017)
Overseas business
USD2,194M

Housing business
USD4,127M※Exchange rate
USD1＝JPY113

Others
USD204M
Timber and building
materials business
USD3,755M

Note: Net sales of each segmentshown include inter-segment
transactions.

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History of Sumitomo Forestry Co. Ltd.

1881: Former smelting worksite

2003: View of reforested smelting worksite

1691
Opening of the Besshi Copper Mine; permission granted by the Tokugawa
Shogunate for use of timber from nearby forests.
1894
The Large-Scale Reforestation Plan was established. The Besshi
mountains, devastated by excessive timber harvesting and smoke
damage, were revived through large-scale reforestation.

国土報恩

Teigo Iba

1903
Organization and start of the first private “Operation Plan (Forestry Plan)” Establishment of “Sustainable Forestry” principle

Sumitomo Spirit and Corporate Philosophy

3＜Sumitomo Spirit＞
We conduct business that is beneficial to society based on the principles of integrity and soundmanagement.

＜Corporate Philosophy＞
The Sumitomo Forestry Group will utilize timber, which is an environmentally friendly natural material,
to contribute to a prosperous society through all types of housing-related services.

4 Important Objectives
Provide wood products and materials
from sustainable forests
・Promote traceability andenvironmental preservation.
・Promote forestry management thatcontributes to local communities’
economic development.

Promote global warming countermeasuresthrough our business activities
・Promote reduction of carbon
footprints through utilizationof biomass power generation,
etc.

Provide environmentally friendly homes
・ Utilize domestic lumber
・ Utilize energy saving
technologies and build“smart houses”.

Promote employees’ family-oriented lifestyle・Create a workplace thatallows each employee torealize his/her ideal
work- life balance.

Business Fields

4

Upstream
1691

Domestic

Forestry & environment
business

Midstream

Downstream

1950～

1960～

Wooden building materials
distribution business

Wooden building materials
manufacturing business

Domestic forestry business

Domestic manufacturingbusiness

1970～
Housing-related business

Custom-built home
Construction & sales
business

Distribution of timberand building materials
in Japan and overseas

Overseas tree planting
business

Overseas manufacturingbusiness

Remodeling, leasing,other housing-related
business

Overseas housing

OverseasOverseas Network

516 Countries, 57 bases(as of April 2017)

Distribution Base(14 companies), Plantation（4 companies）, Building materials manufacturing（13 companies）, Housing（26 companies）
Sumitomo Forestry has a vertically integrated business model:①②④⑬⑤④ ④⑲③⑤③⑨④③②⑬⑪

SoutheastAsia

⑭ ⑭⑮⑯
⑬⑩⑩㉓
⑫⑨⑦⑧㉑③ ③⑨⑤⑦②② ④⑥⑩⑥③①⑧⑥⑦ ②⑤①③②⑫⑱

China㉕⑫⑬㉒㉖

North America①⑪⑳⑰⑧⑥⑪⑤⑧㉔⑤● Distribution Bases/Offices ：① Vancouver ② Khabarovsk ③ Kota Kinabalu (Malaysia)⑧ SF Australia②①①⑦⑩①④⑨④⑫Oceania④ Amsterdam ⑤ SF Dalian ⑥ SF Singapore ⑦ SF Indonesia⑨ SF Vietnam ⑩ SF Thailand ⑪SF Indian ⑫ PAN ASIA PACKING ⑬Spacewood Furnishers Pvt ⑭ SF Singapore (Yangon)●Forestry Business：① Open Bay Timber ② Mayangkara Tanaman Industri ③Wana Subur Lestari ④Tasman Pine Forests Limited● Building materials Manufacturing Business ：① Kutai Timber Indonesia ② Kutai Timber Indonesia (Probolingo) ③ Kutai Timber Indonesia (Surabaya)④ Kutai Timber Indonesia(Samarinda) ⑤ AST Indonesia ⑥ Rimba Partikel Indonesia ⑦ Rimba Partikel Indonesia(Jakarta) ⑧ Sinar Rimba Pasifik Indonesia⑨ Nelson Pine Industries ⑩ Vina Eco Board ⑪ SFNZ ⑫ Canyon Creek ⑬ Mos Lumber Products● Housing Business ：① SFC Homes ②MainVue Homes Group ③ Paragon Wood Product (Shanghai) ④ Paragon Wood Product (Dalian)⑤ Dalian Sumirin Information Technology Service⑥ Henley Arch

⑦ Henley U.S.A ⑧ 335 Grices Road Pty ⑨ Yantai Golden Bridge Enterprise ⑩ SF America⑪ Edgewater Homes ⑫ Bloomfield Homes ⑬ Gehon Homes ⑭ SF Hong Kong ⑮ Partner Ally ⑯ Rainbow Alpha⑱ Creekstone Development ⑲ Beijing BBMG Decoration㉕Justin Timberbrook ㉖DRSFA⑰ SFA Land Developments⑳ Annadale ㉑ DNS AI ㉒ DRB Enterprises,LLC ㉓Phu Hung Thai ㉔ Wisdom Properties GroupHousing BusinessNew custom-built house in Japan

6Condominium in Japan

Housing Business in US- Solar Power System- Home Energy Management System(HEMS)- 12kWh large capacity lithium battery

Remodeling and Renovation in Japan

Smart House

Housing Business in Australia

7Overseas Real Estate Development
Australia
1.
Land Area: Approx.25,000sqm.
Condominium: 360 Units(Condominium, Shops, Offices, etc.)
Construction Term: 2015 – 20182.
Land Area: Approx.5,300sqm.
Condominium: 164 Units(Condominium, Shops, Offices, etc.)
Construction Term: 2016 – 2018

Hong Kong
Land Area: 2,231sqm.
Condominium: 222 Units(Condominium, Shopping Center,Day Care Center, etc.)
Construction Term: 2014 - 2017Vietnam
Land Area: Approx.28,000sqm.
Condominium: Approx.2,100 Units(Condominium, Shops, etc.)
Construction Term: 2017 - 2021

USALand Area: 39,659sqm.
Rental Apartment: 346 units(Rental Apartment, Shops, etc.)
Construction Term: 2017 - 2019

Overseas Manufacturing Business

8New ZeelandVietnam

USAIndonesia

Timber & Building Materials Business

9- Japan’s leading wooden building materials distribution company in terms of volumes handled- Powerful worldwide procurement and distribution network- Environmentally friendly and sustainable

SFC Group Procurement Policy
1. Traceable and sustainable procurement
2. Reliable supply chains

3. Effective use of wood resources and reduction ofenvironmental impact
4. Implementation of continuous improvementwith stakeholders
PB

PlywoodMDF10

Plantation Forest Operations
Company-owned forests in Japan

46,443 ha

Plantations

Naturalforest

OtherOwned or managed overseas plantations

As of March 31, 2017

Approx. 230,000 ha As of June 30, 2017=500 ha

=3,000 ha

Hokkaido

Indonesia
160,000 ha

18,199 ha

Honshu4,280 haKyushuShikoku

9,181 ha14,783 ha

Papua New Guinea
31,000 ha
New Zealand
35,000 ha

11Business in Indonesia

History in Indonesia

12

Borneo Island(1942) Starting the rubber plantationmanagement in Borneo Island(1970) Plywood
manufacturing company
established in Indonesia

Sustainable Forestry in Indonesia

13After Recovery

Before Recovery

WSL：PT. Wana Subur Lestari
MTI：PT. Mayangkara Tanaman Indusutri
Total Planation Area: 115,620ha (since 2010)●WSL/MTI●ODAPaliyan ●●Project Earth
●ODA
●ODA

ODA: Official Development AssistanceSustainable Forestry in Indonesia

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2005(Before starting Project)

2013

Mitsui Sumitomo Insurance Tropical Rainforest Recovery Projectin Paliyan, Gunungkidul Prefecture (2005-2020)

Project Earth(since 2009)
Plantation for Forest Recoveryin Bromo Tengger Semeru National ParkODA (Technical Cooperation Project)

Manupeu Tanah Daru Laiwangi
Wanggameti National Park

Bromo Tengger Semeru
National Park

Gunung Ciremai
National Park

Manufacturing in Indonesia
Kutai Timber Indonesia（KTI)
Established in Probolingo in 1970
Products: Plywood 130,000m3/yr,
PB120,000m3/yr,
Sawn Timber for Door parts and Building
Materials.

Rimba Partikle Indonesia（RPI)
Established in Semarang in 1990
Product: PB 120,000m3/yr
Biomass Power Plant installed in 2008

15
ASTIndonesia（AST)

Established in Semarang in 1996
Products: Musical Instruments and building
materials incl, kitchen panels and housingmaterials using RPI PB and NPIL MDF products

Sinar Rimba Pasifik (SRP)
Established in Surabaya in 2009
Products: Stairs and floors using solidhardwood

Interior Design Showroom in Jakarta

Address： Ruko Wisteria, Lantai 1, Jl. Panglima Polim Raya
No. 7A Kebayoran Baru,Jakarta Selatan 12160

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Interior Design Showroom in Jakarta
Scholarship Support

Free distribution of seedlings

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