Management Policy

Fundamental Management Policy

The Sumitomo Forestry Group is dedicated to the corporate philosophy, "Sumitomo Forestry Group utilizes timber as a renewable, healthy and environmentally friendly natural resource, and contributes to a prosperous society through all types of housing-related services." Guided by this philosophy, the Group conducts operations with the aim of maximizing shareholder value.

To accomplish this goal, the Group adheres to four action guidelines with an emphasis on improving management efficiency and boosting profitability. The first is the Sumitomo spirit, conducting business based on principles of integrity and sound management. The second is respect for Humanity, creation an open and inclusive corporate culture that instills a strong sense of pride and motivation in employees. The third is environmental responsibility. The Group contributes to the protection of the environment and our fellow beings through responsible business practices. The fourth element is putting customers first, which means that we act with customer satisfaction first and foremost in mind.

In addition, the Group is committed to improving the quality of its management by enhancing management transparency through an extensive information disclosure.

Targeted Performance Indicators

Sales and recurring income are regarded as indicators of the Group's ability to grow. In addition, to measure operating efficiency, the Group places importance on the return on capital eguity (ROE).

Fundamental Policy for Allocation of Earnings

Sumitomo Forestry has a fundamental policy of achieving stable and continuous shareholder returns and considers this to be one of its highest priorities. In the future, we will work to improve return on equity (ROE) and increase shareholders' equity effectively utilizing internal reserves in effective investments that contribute to the improvement of long-term corporate value and in research and development activities. At the same time, we will return an appropriate level of earnings to shereholders in accordance with total earnings, while taking into account the need to balance these distributions with the base of operations, financial position, cash flow and other items.