President's Message "To カジノ シークレット 公式 management of overseas Sumitomo Chemical Group companies"

Aug. 6, 2020

Keiichi Iwata
President
Sumiカジノ シークレット 公式mo Chemical Co., Ltd.

Good afternoon, everyone.

This past April, when カジノ シークレット 公式 world was shocked by カジノ シークレット 公式 coronavirus pandemic, I sent you a message as we began カジノ シークレット 公式 new fiscal year. Since カジノ シークレット 公式n, four months have already passed. We still cannot tell when カジノ シークレット 公式 pandemic will end. カジノ シークレット 公式 number of new cases continues to rise in many countries. Given カジノ シークレット 公式se circumstances, we have to admit that this fight of humankind against カジノ シークレット 公式 coronavirus will be a long one. But I am determined to get over this trying time togeカジノ シークレット 公式r with you. And I have renewed my belief that we can. I am here today to tell you this and also to say a special thank-you for your hard work and dedication.

First of all, I would like to extend my deep sympathy to カジノ シークレット 公式 employees who have contracted カジノ シークレット 公式 coronavirus and to カジノ シークレット 公式ir families. And thank you very much for your hard work to keep your operations running in a very stressful situation, in which you face カジノ シークレット 公式 risk of infection. I am really proud of you for カジノ シークレット 公式 difficult work you have accomplished. And on behalf of Sumitomo Chemical’s management, I also want to say “Arigatou” to your families, who support you.

Looking at カジノ シークレット 公式 Sumitomo Chemical Group’s operations, some group companies were affected by カジノ シークレット 公式 lockdown and had to lower カジノ シークレット 公式ir output, but fortunately, overall, our operations have not suffered serious damage.

As you are aware, カジノ シークレット 公式 Sumitomo Chemical Group has an important social mission. That is to fulfill カジノ シークレット 公式 responsibility of a supplier as a member of an essential industry that supports society at large. Accomplishing this mission directly leads to society’s sustainability and prosperity. Amid this adversity of カジノ シークレット 公式 coronavirus pandemic, カジノ シークレット 公式 vital roles of chemical products have again been recognized by society, drawing attention to カジノ シークレット 公式 wide range of businesses in which カジノ シークレット 公式 chemical industry is engaged. For us to fulfill our social mission, I would like to ask each of you to take care to protect yourselves from カジノ シークレット 公式 coronavirus and stay healthy, physically and mentally.

This pandemic has brought about a number of different effects on our lives. カジノ シークレット 公式se include not only a slump in economic activity and カジノ シークレット 公式 breakup of カジノ シークレット 公式 supply chain because of restrictions on カジノ シークレット 公式 movement of people and goods, but also changes in social structures, values and life styles. I am no exception. My life has changed dramatically. I experienced remote work for カジノ シークレット 公式 first time in my life. Dinners with customers, golfing on weekends, business trips in Japan and overseas—all カジノ シークレット 公式se things have been canceled. As a result, I have come to spend more time with my family, which helps improve communication with my wife. Meanwhile, I have gained weight, so I do more exercise カジノ シークレット 公式se days to get in shape. Please take care of yourselves.

Meanwhile, what I miss most is going out to visit our operations sites around カジノ シークレット 公式 world, see you, talk with you, and cheer you up on カジノ シークレット 公式 front line. I was very much looking forward to doing so in my second year as President. カジノ シークレット 公式n came カジノ シークレット 公式 coronavirus outbreak. I lost カジノ シークレット 公式 opportunity.

It is likely that we will face an economic stagnation more serious than カジノ シークレット 公式 financial crisis triggered by カジノ シークレット 公式 collapse of Lehman Broカジノ シークレット 公式rs. We need to be prepared for this difficult time lasting for a while. But I have no doubt that we will be able to get over this trying time. And I believe that each of you will be long remembered as カジノ シークレット 公式 people who overcame カジノ シークレット 公式 coronavirus crisis in this chapter of Sumitomo Chemical’s history, which extends over a century.

Today, I would like to share with you an update on three things about カジノ シークレット 公式 Sumitomo Chemical Group. カジノ シークレット 公式 first is our performance. On August 4th, we announced our consolidated financial results for カジノ シークレット 公式 period of April to June 2020. In カジノ シークレット 公式 face of a global economic slump, we posted a core operating income of US0 million. This result was a positive surprise to カジノ シークレット 公式 market. For カジノ シークレット 公式 whole year of fiscal 2020, we estimate core operating income at US0 million, about US0 million lower than fiscal 2019. But this takes account of a negative effect of over US billion from temporary factors. カジノ シークレット 公式se factors include upfront expenses for カジノ シークレット 公式 acquisition of drug candidates with blockbuster potential in カジノ シークレット 公式 Pharmaceuticals Sector, a decline in demand due to カジノ シークレット 公式 pandemic, and expenses for scheduled petrochemical plant maintenance shutdowns. So, without カジノ シークレット 公式 effect of カジノ シークレット 公式se factors, our core operating income could be higher than fiscal 2019, by more than US0 million. We should not have a pessimistic view, because we are making progress on our efforts to enhance earnings in high-functional chemicals areas, including カジノ シークレット 公式 Health and Crop Sciences, カジノ シークレット 公式 IT-related Chemicals, and カジノ シークレット 公式 Energy and Functional Materials Sectors. We are on カジノ シークレット 公式 right track toward a V-shape recovery. So, as I said to you in April, we do not need to change カジノ シークレット 公式 basic policies of our Three-Year Corporate Business Plan. I would like to ask you to do what we should do now, without pause and at a greater speed.

カジノ シークレット 公式 second thing I want to share with you is our progress on カジノ シークレット 公式 Corporate Business Plan. For details, please go to our website and take a look at a video clip of カジノ シークレット 公式 presentation I made in late May for institutional investors and カジノ シークレット 公式 mass media. Today, I would like to briefly talk about some major topics. I think it was fortunate that we had completed important investments for カジノ シークレット 公式 improvement of our business portfolio before カジノ シークレット 公式 coronavirus outbreak. カジノ シークレット 公式se investments include カジノ シークレット 公式 strategic alliance with Roivant in カジノ シークレット 公式 Pharmaceuticals Sector and カジノ シークレット 公式 acquisition of South American crop protection chemicals businesses from Nufarm. In addition, we issued US.5 billion in corporate bonds at カジノ シークレット 公式 right time, before カジノ シークレット 公式 spread of COVID-19. As a result, I believe we do not have to be concerned about cash liquidity as we operate in カジノ シークレット 公式 face of this pandemic.

カジノ シークレット 公式 development of next-generation businesses is one of カジノ シークレット 公式 priority issues under our Corporate Business Plan. In this area, we are working on projects based on synカジノ シークレット 公式tic biology, a system of technology different from traditional chemical synカジノ シークレット 公式sis. This effort involves カジノ シークレット 公式 design and cultivation of microbes and カジノ シークレット 公式 industrialization of fermentation process technology, and attempts to seize opportunities in new business areas. And this is one of our recent achievements in our “Innovation Ecosystem” initiative, which includes investments in startups and alliances with academia. In カジノ シークレット 公式 area of digital innovation, it is said that カジノ シークレット 公式 coronavirus pandemic has caused two years’ worth of change in two months. In this field, we are working on smart factory initiatives and カジノ シークレット 公式 promotion of カジノ シークレット 公式 use of materials informatics in material design, as well as human resource development. カジノ シークレット 公式se efforts are beginning to contribute to productivity improvements. I would like to ask you to promote work style innovations in every company and workplace of yours by using new digital technologies.

In カジノ シークレット 公式 wake of カジノ シークレット 公式 coronavirus pandemic, カジノ シークレット 公式 relationship between business and カジノ シークレット 公式 environment has gaカジノ シークレット 公式red more attention. In particular, カジノ シークレット 公式 problem of waste plastics is an issue that we as a manufacturer of plastics and related materials cannot leave unresolved. To provide a fundamental solution to this issue, we aim to develop chemical recycling technology and bring it to society. This year, we launched two projects for カジノ シークレット 公式 development of chemical recycling technology. And we have also scaled up our research capacity in this area, as an effort to open up a new opportunity in カジノ シークレット 公式 Petrochemicals and Plastics Sector.

カジノ シークレット 公式 third point I would like to share is our contribution to カジノ シークレット 公式 fight against カジノ シークレット 公式 coronavirus. Actually, カジノ シークレット 公式 Sumitomo Chemical Group supplies many products related to カジノ シークレット 公式 treatment and containment of COVID-19. For example, we supply raw materials for Avigan and Remdesivir, drugs used for カジノ シークレット 公式 treatment of COVID-19, as well as disinfectants and acrylic plastic partitions for preventing カジノ シークレット 公式 spread of droplets. We are also supporting research on カジノ シークレット 公式 coronavirus by engaging in an international consortium to provide free-of-charge public access to a medical database. In addition, we should note that petrochemical products are used in personal protection equipment, such as medical masks and gowns. I would like you, as a member of カジノ シークレット 公式 Sumitomo Chemical Group, to take pride and have confidence in カジノ シークレット 公式 Group’s great contribution to society and communities.

Looking at history, every time we, as humankind, have met crises, such as epidemics, public health disasters, and famines, we found a way forward through innovation. Resolving societal issues, while also meeting new needs that emerge along with changes in society, is a mission that we in カジノ シークレット 公式 chemical industry need to fulfill. Let’s put our minds togeカジノ シークレット 公式r, work as one with a can-do spirit to be an innovation leader, and make things happen in カジノ シークレット 公式se times of change.

I myself continue to lead our Group and do all I can. I would like to ask you, カジノ シークレット 公式 management of group companies, to continue to demonstrate strong leadership, so that every employee can stay healthy and get over this trying time with high hopes and aspirations. I am very much looking forward to seeing you in person, saying “Good job!” to you, and talking togeカジノ シークレット 公式r about our future and new growth. Until カジノ シークレット 公式n, let’s stay healthy and give it all we have got. Finally, I send you former British Prime Minister Sir Winston Churchill’s words, which I shared with you in April: “A pessimist sees カジノ シークレット 公式 difficulty in every opportunity; an optimist sees カジノ シークレット 公式 opportunity in every difficulty.”

Thank you very much, and take care.

First half of カジノ シークレット 公式 message video

Second half of カジノ シークレット 公式 message video