Conference note of the presentation(PDF : 3.1MB)

SMM, "Renewed Challenge for Change", Adapting to Changes in the Social Environmen t and Achieving Change, Further Expansion of Measures for Next Growth

This is a transcript of the SMM 2021 3-Year Business Plan Presentation held on Feb ruary 16, 2022.

Speakers
SUMITOMO METAL MINING,	President and Representative Director, Akira Nozaki
SUMITOMO METAL MINING,	Managing Executive	Officer, General Manager of Mineral Reso
urces Div., Ryoichi Sato
SUMITOMO METAL MINING,	Director, Managing	Executive Officer, General Manager of No
n-Ferrous Metals Div.,	Nobuhiro Matsumoto
SUMITOMO METAL MINING,	Managing Executive	Officer, General Manager of Battery Mate
rials Div., Isao Abe
SUMITOMO METAL MINING,	Executive Officer,	General Manager of Advanced Materails Di
v., Kazunori Takizawa

2021 3-Year Business Plan

Nozaki: Good morning, everyone. I'm Nozaki, the President. Thank you very much for coming to our 2021 3-Year Business Plan conference today. We would also like to ex press our gratitude for your continued understanding and support of our company bu siness. Then, I will explain the contents along with the materials.

The subtitle on the cover of the materials is "Renewed Challenge for Change.". The 2021 3-Year Business Plan covers three years from 2022 to 2024. Regarding manageme nt, I would like to talk to you later about why we use the words "change" and "cha llenge," which are relatively cliches.

1. Long-term vision and targets

Page 4 is our company's long-term vision and targets. The 2018 3-Year Business Pla n was reviewed for the time being, but the content has not been changed this time.

Our long-term vision is to become the "world leader in the non-ferrous metals indu stry." Our targets include the numerical targets shown on the slide. One of the ma jor themes of the new 3-Year Business Plan is "how to enhance the content appropri ate for a non-ferrous leader.".

2. Vision for 2030

On page 5, you can see our vision for 2030. Our company has identified 11 key issu es and categorized them into the nine themes listed on the slide. Internally, KPIs are defined and implemented by seven subcommittees.

On page 4, the targets of the long-term vision are listed as numerical targets, an d our company has set "Company we want to be in 2030" as a milestone in the long-t erm vision. The corporate vision is to show the corporate attitude of "how to work on it" in achieving the long-term vision.

3. Review of 18 3-Year Plan 1) Safety performance

This is our review of the 2018 3-Year Plan. Safety performance is an essential par t of the manufacturing industry's business foundation. As you can see from the lin e chart on the slide, unfortunately, we haven't improved in the last ten years.

Our company is striving for safety on the ground-based on the "three realities pri nciple," but there are still cases where dangerous areas or dangerous work are ove rlooked. At present, the knowledge of external consultants has been introduced to improve the observation ability of supervisors.

Of course, as a company, we are making our facilities inherently safer. We're now providing some hands-on simulation experience training such as "what it means to b e drawn into a machine" and "under what circumstances contact with heavy machinery occurs" by using VR. We will continue to focus on safety education.

3. Review of 18 3-Year Plan 2) Impact of COVID-19

During the 2018 3-Year Business Plan period, approximately 2/3 of the time is the period of the spread of COVID-19. Although there has been a delay in the measure l evel, there has been no significant change in the strategy itself.

We have taken measures to prevent infection at various locations in our domestic o perations, and we believe that the impact of the COVID-19 has been minimized. As f or overseas operations, there have been some cases in which we have reduced the op erations due to requests from local governments.

Overseas mine development projects were particularly affected. Large projects in N orth and South America were significantly affected by the reduction of camps and t he delay in mobilizing construction personnel. This recovery is part of our 2021 3 -Year Business Plan.

One issue that does not show up in the figures is that we have not been able to ex change opinions and meet with our stakeholders in Japan directly and overseas, suc h as business partners, over the past two years. We continued to have online inter views, but we are concerned that this will not negatively impact the future.

3. Review of 18 3-Year Plan 3) Large-scale projects