Sumitomo Riko : Integrated Report 2022

SUMITOMO RIKO Integrated Report 2022

Global

Excellent

Manufacturing

Company

Table of Contents and Links

Corporate Philosophy...............................	P.	1	CSR/Sustainability Management Structure....	P. 12
Value Creation Model................................	P.	2	Environment...............................................	P. 13
Medium-term Management Plan..............	P.	3	Society.......................................................	P. 14
Core Competencies...................................	P.	4	Our Governance Structure........................	P. 15
Our Business..............................................	P.	6	Enhancement of Board of Directors' Functions....	P. 16
			Messages from Outside Directors and Auditors....	P. 17
Message from the President & CEO
			Risk Management......................................	P. 18
Review of Fiscal 2021...........................	P.	7
			Internal Control System.............................	P. 19
Toward Fiscal 2022...............................	P.	9
			Endorsement of External Initiatives..........	P. 20
....Correspond to the change in "CASE" P. 10
			Financial Information.................................	P. 21
Financial Strategy......................................	P. 11	Company Profile and Stock Information....	P. 22

Editorial Policy

Period covered in the Report

From April 1, 2021 to March 31, 2022 (fiscal 2021). This Report also refers to certain activities that are being undertaken in fiscal 2022 or were carried out in previous years.

Boundary of the Report

This Report covers Sumitomo Riko and its Group companies.

In this Report, "Sumitomo Riko" and the "Sumitomo Riko Group" are defined as follows. "Sumitomo Riko" and "the Company": Sumitomo Riko Company Limited

"Sumitomo Riko Group" and the "Group": Sumitomo Riko and Group companies. The term "Group companies" alone does not include Sumitomo Riko. Group companies may be described as associated companies, subsidiaries or affiliated companies.

For details, please see Sumitomo Riko's website

Top Page https://www.sumitomoriko.co.jp/english/

Products

https://www.sumitomoriko.co.jp/english/product/

Our Company

https://www.sumitomoriko.co.jp/english/company/

Research and Development (R&D)

https://www.sumitomoriko.co.jp/english/rd/

Investor Relations (IR)

https://www.sumitomoriko.co.jp/english/ir/

CSR Information

https://www.sumitomoriko.co.jp/english/csr/portal/

Contact Information

Edited by Sustainability Project, Corporate Planning Department Contact : Public Relations and Investor Relations Department For comments or questions on this report, please contact:

TEL [phone]

https://www.sumitomoriko.co.jp/english/contact/

Corporate philosophy

The Sumitomo Spirit

The Sumitomo Spirit has been refined through the generations for 4 0 0 years based on the Founder's Precepts "Monjuin Shiigaki," which Masatomo Sumitomo, the founder of the Sumitomo family, wrote and handed on to describe how a merchant should conduct business. The basic points of the Sumitomo Spirit have been passed on in the form of the two articles of the Business Principles as management guidelines of Sumitomo companies.

Business Principles

Article 1. Sumitomo shall achieve prosperity based on a solid foundation by placing prime importance on integrity and sound management in the conduct of its business.

Article 2. Sumitomo's business interests must always be in harmony with the public interest. Sumitomo shall adapt to good times and bad times but will not pursue immoral business.

*Quoted from the Sumitomo Goshi Kaisha Administrative Regulations formulated in 1928

Sumitomo Riko Group Management Philosophy

In light of the Sumitomo Spirit, all of us at the Sumitomo Riko Group will:

1. Provide superior products and services to meet customer needs based on technological innovation.
2. Place top priority on safety and work to ensure the safety of people and society.
3. Strive to protect the global environment and to contribute to creating better communities.
4. Maintain a high standard of corporate ethics and observe all laws and regulations to earn public trust and confidence worldwide.
5. Foster an invigorating corporate culture that respects our employees' diversity, personal qualities, and individuality.

Sumitomo Riko Group Expands into the World, Carrying on the 400-year Old Sumitomo Business Spirit

From Foundation to Expansion of the Business Scope

First Expansion Overseas

Enhancing Our Global Reach Through Mergers

and Acquisitions

1929

Established in Yokkaichi-shi, Mie as Showa Kogyo Co., Ltd.

1961 Company name changed to Tokai Rubber Industries,

1988

Established DTR Industries, Inc. (current SumiRiko Ohio, Inc.),

2013 Acquired Dytech-Dynamic Fluid Technologies S.p.A. (current

1930

Company name changed to Kabata Chotai (Belt) Co., Ltd.

Ltd. (Changed Kanji for Rubber to Katakana, different

the Company's first overseas production base in the U.S.

SumiRiko Italy S.p.A.), an Italian automotive hose manufacturer, and

Started production of conveyor belts

Japanese character)

1994

Listed on the second section of the Tokyo Stock

Anvis Group GmbH (current SumiRiko AVS Holding Germany GmbH),

Exchange (TSE)

a German automotive anti-vibration rubber manufacturer, and made

1937

Joined the Sumitomo Group. Company name changed to

1964 Moved the head office from Yokkaichi-shi to Komaki-shi,

1995

Established subsidiaries in Thailand and China, the

them into consolidated subsidiaries

Tokai Rubber Industries, Ltd. (using Kanji for Rubber in the

Aichi

Company's first bases in Asia

2014 Company name changed to Sumitomo Riko Company Limited

Japanese name)

1968 Entered automobile interior business

1996

Listed on TSE and NSE changed to first section

2016 Established Global Headquarters (Nakamura-ku,Nagoya-shi)

1949

Listed on the Nagoya Stock Exchange (NSE)

1976 Foreman Training (F-Ken) started as part of efforts

1999

Established a subsidiary in Poland, the Company's first

Established Advanced Automotive Systems R&D Center(current

1954

Started the automotive anti-vibration rubber products business

to develop human resources as part of the general

base in Europe

Advanced Systems R&D Center)(Komaki-shi, Aichi)

1959

Commercialized radiator hoses; full-scale launch of the

improvement activities at workplaces

2001

Developed damping devices for housings and entered

2020 Established the "Sumitomo Riko-AIST Advanced Devices of Polymer

automotive hose business

1984 Started the office equipment precision components

the housing market

Materials Cooperative Research Laboratory" with the National Institute

Started production of hydraulic hoses

business

2002

Established TRI Technical Center USA, Inc. (current

of Advanced Industrial Science and Technology (Tsukuba-shi, Ibaraki)

SumiRiko Technical Center America, Inc.), the

2022 Transferred to TSE Prime Market and NSE Premier Market due to

Company's first overseas development base in the U.S.

restructuring into new market segments

1929 "First Founding"

1988 "Second Founding"

2013 "Third Founding"

1930 Company name changed

1954 Started the automotive anti-

1959 Commercialized radiator

1984 Started the office equipment

1988 Established DTR Industries,

2001 Developed damping devices

2013 Entered health and nursing

2020 Entered the autonomous

to Kabata Chotai (Belt) Co., Ltd.

vibration rubber products business

hoses; full-scale launch of the

precision components business

Inc. (current SumiRiko Ohio, Inc.),

for housings and entered

the

business

driving field

Started production of conveyor

automotive hose business

the Company's first overseas

housing market

belts

1 production base in the U.S.

Value Creation Model

We pursue the possibility of value creation with our core competence as the starting point

Based on the technologies of compounding, synthesizing, and modifying, our "Polymer Materials Technology" gives form to superior functional materials and creates products with exceptionally high added value.

On top of this is our "Comprehensive Evaluation Technology" that enables us to evaluate and verify the required performance and reliability by ourselves.

With these strengths supporting research and development at Sumitomo Riko as our core competencies, we are reaching out to new markets and regions, as well as aggressively expanding our existing business. We continue our challenge to create value that plays a vital role for people, society, and the earth's environment.

Global Excellent Manufacturing Company

Vision

2

0

2

2

V

n

of Soc

ia

l

io

V

t

a

a

l

u

e

r

e

Consistent growth

C

Corporate

Public

Value

Value

Infrastructure		Healthcare
and Housing Environment

Organizational reinforcement	Automotive (Mobility)	Electronics
	Comprehensive	Polymer Materials	Core Competencies
	Evaluation Technology	Technology

Sumitomo Riko's Core Competencies

Conceiving

New Ideas

Manipulating	Sumitomo Riko	Anticipating
customer needs
diverse materials
Supplier offering proposals	and providing
using various
the optimum
techniques	anchored in core competencies and
solutions

		exceeding customer expectations
	Polymer Materials				Comprehensive
				Evaluation
	Technology
					Technology

R & D	Business	Corporate	Production
headquarters	control

Sumitomo Riko Group Management Philosophy / Sumitomo Riko Group Action Charter

The Sumitomo Spirit

We persistently strive to meet customer needs by reiteration of the cycle of new materials creation and feedback from product evaluation to new materials.

*Public value: Sumitomo Riko's unique objective. It includes enhancement of environmental technology, development of environmentally friendly products, zero occupational accidents, and business expansion in emerging-market countries.

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Medium-term management plan

What the Company aspired to be

2018

2022

2029

Global Excellent Manufacturing Company

A corporation that contributes to safety, comfort, and the environment for people, society, and the earth

Theme

2022 Vision

Aim For consistent growth and organizational reinforcement amid major changes in the business environment

	100th anniversary		Net sales of
						1
						trillion
Dramatic		yen
growth

• Creation of new businesses and new customers

Business strategies	■ MONOZUKURI Innovation
	■ Reinforcement of global business foundations

FY2022 targets

Consistent

growth

What we

What we

aspire to be

in 2029

Global

system supplier

Corporate value	Public value
(Financial objectives)	(Non-financial objectives)

should be in 2022

Net sales	530billion yen
Operating	25billion yen
profit
Operating	5%
profit ratio

ROA (Operating profit to total assets)6%

ROE (Return on equity attributable to 7% owners of the parent company)

CO2 reduction	8% reduction *
Waste	5% reduction *
reduction
Frequency rate of all	Zero industrial
industrial accidents	accident

Compliance	Participation rate of
global executive training
training
shall be 100%
*ratio compared with discharge rate in 2017

• To achieve the vision of becoming a global system supplier, all our businesses are expected to join the global top tier* in terms of global market share and the outlook for necessary technology development is clear.
• Themes for all the new businesses are clarified to create new businesses by 2029.

*Global top tier: one of the top three companies in terms of global market share

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