Decision to Establish Trading House New Beginning as a Division of a Real Estate Company Founding principles

Founding principles

Although Sumitomo Corporation was a late starter among Japan’s trading houses, it had been involved in commerce since the 16th century and had over 100 years of experience in trading copper overseas during Japan’s isolation from the rest of the world. The original reason for the ban on moving into the trading business was based on a sound management decision that carefully weighed changes in operating conditions and the company’s capabilities. Even today, Sumitomo’s founding principles focused on human resources and strategic and organic business integration since the time of Osaka Hokko Kaisha continue to underpin Sumitomo Corporation’s global operations that range from resource development to hi-tech business areas such as financial technology, pharmaceuticals, and biotechnology. The last of the three founding principles, the business principles contained in the first article of the 1891 precepts of the House of Sumitomo, have been translated into English and passed on to employees of overseas outlets as follows: 1.Sumitomo shall achieve strength and prosperity by placing prime importance on integrity and sound management in the conduct of its business. 2.Sumitomo shall manage its activities with foresight and flexibility in order to cope effectively with the changing times. Under no circumstances, however, shall it pursue easy gains or act imprudently Preparation of this article was overseen and photos provided by Sumitomo Shi-ryo-kan and Sumitomo Corporation. CORPORATE DATA As of March 31,2004 FOUNDED 1919 INCORPORATED 1959 PAID-IN CAPITAL 169,4 billion NUMBER OF EMPLOYEES 33,799 (consolidated) 4,683 (parent) HISTORIC MILESTONES 1919 Established as Osaka Hokko Kaisha Ltd. (capital: ¥35 million) 1944 Merged with Sumitomo Building Co., Ltd. and changed name to Sumitomo Real Estate and Building Co., Ltd. 1945 Changed name to Nihon Kensetsu Sangyo Kaisha, Ltd. and began operation as a trading company 1949 Listed on the Osaka, Tokyo and Nagoya Stock Exchanges 1952 Changed name to Sumitomo Shoji Kaisha Ltd. 1962 Integration of departments and sections to form nine business divisions: Iron & Steel, Nonferrous Metals, Electric, Machinery, Produce & Fertilizer, Chemicals, Textile, General Products & Fuel, and Real Estate 1970 Osaka Head Office and Tokyo Head Office established 1973 Listed on the Frankfurt Stock Exchange 1978 Adopted the English company name "Sumitomo Corporation" 1998 Enacted Corporate Mission Statement 1998 Developed a two-year Reform Package as mid-term management plan to "qualitatively improve the Integrated Business Enterprise and realize global management" 2000 Drew up "SC VALUES" 2001 Abolished the names "Osaka Head Office" and "Tokyo Head Office", and reorganized Head Office 2001 Reform Package extended with the launch of "Step Up Plan" 2003 Step Up Plan extended with the launch of "AA Plan" 2003 Adopted "Sumitomo Corporation Corporate Governance Principles"

Sumitomo Corporation’s current head office Sumitomo Corporation’s current head office is located in Harumi Island Triton Square. Developed also by Sumitomo Corporation, the complex encompasses four high-rise office towers, a low-rise commercial mall, and residential buildings.