Human Resource Development System at Sumitomo Forestry Business Institute, Personnel Department

Based on the themes of "Develop personnel who learn by themselves, think about the essence of things, and take action on their own," and "Promote a free and open-minded corporate culture," Sumitomo Forestry Business Institute of the Personnel Department has increased training programs to include self-development training in addition to level-specific and selective training programs, with a view to helping employees develop their skills in an autonomous manner.

1. Help employees understand the corporate philosophy based on Sumitomo's Business Spirit

We hold Shikoku forestry training in which all of our new employees, including mid-career hires, visit the ruins of the old Besshi copper mine and the company-owned forests to learn about the Sumitomo Group’s history and business spirit. In fiscal 2025, 509 employees participated in the training, 233 from the parent company and 276 from its Group companies.

In addition, we are implementing an e-learning program on the history and corporate philosophy of Sumitomo Forestry, in which all Sumitomo Group employees participate every year.

2. Help employees acquire business knowledge and management skills

We support employees' learning by respecting their autonomy at the Sumitomo Forestry Business Institute of the Personnel Department. The institute offers an online video learning course, in which employees can freely choose which to attend from among a range of practical seminars (all external seminars), in addition to more than 300 seminars provided through online employee development programs implemented by job group and grade, e-learning and correspondence courses, and external training seminars. Moreover, we have established a system to financially support employees attending the external training courses not designated by the company by covering the fee up to 50,000 yen. In fiscal 2024, a total of 2,082 employees participated in such training and 2,933 in fiscal 2025.

In the level-specific training program, new managers are given training to learn how to behave and work in the new position and develop a broader perspective. In fiscal 2025, 16 new managers participated in the program.

Also, in order to make steady and more effective use of the evaluation system revised in fiscal 2024, we conducted evaluator training targeting all of our managers, and 150 people participated in it in fiscal 2025. Moreover, in order to help improve their management capabilities, we provide all managers with skills training to draw out the potential of each participant, in which 360 people participated in fiscal 2025.

In addition, as part of the multifaceted assessment to develop management skills, a multifaceted evaluation feedback workshop was offered for 83 managers who were subject to evaluation for the first time in fiscal 2025. The purpose of this workshop was to assist them accurately understand and utilize the evaluation results. We also conduct aptitude assessments for employees who wish to assume management positions to help them clarify their own strengths, weaknesses, and characteristics, thereby guiding them to the direction of necessary skill development. In fiscal 2025, 179 people participated in this program.

3. Develop global talent

Sumitomo Forestry strives to develop personnel who can contribute to its expanding overseas business operations. To this end, we conduct a global human resource development program where employees engaged in overseas-related businesses for many years, including those working as expatriates, provide 1-on-1 guidance to talent who wish to work abroad. This program includes English and Indonesian lessons, offers an original curriculum adapted to the skill level and work content of each trainee, and follows up their progress and encourages them to study bookkeeping and accounting. In addition, we have been implementing a program dealing with international affairs in general since 2022. Twenty-two people participated in it in fiscal 2025.

Those who have acquired the minimum knowledge (languages including English, and accounting-related knowledge) required to handle overseas-related businesses in anticipation of a future overseas assignment or have achieved that level through self-development are regarded to have completed the training. A total of 120 people has completed the training since fiscal 2018, of which 83 have been stationed overseas or transferred to departments in Japan related to overseas operations (144 expatriates as of December 1, 2025, including those preparing for departure).

4. Develop managerial human resources

Sumitomo Forestry conducts training by selection for employees who are 35 years or older. In fiscal 2024, 55 employees participated in 10 training programs, such as management leader development training and transformational leadership training for middle managers. In fiscal 2025, 55 people participated in 11 such programs.

5. Build an open-minded and energetic work environment

Since fiscal 2021, the Housing Division has been implementing the Three-Star Project with the goal of building a free and open-minded corporate culture.
Through the Three-Star Project, the division aims to create branches like three-star stores deeply rooted in local communities, where each employee is full of vitality, highly regarded by customers, and beloved by the local community. By fiscal 2025, 33 branches participated in the project. Through a workshop, communication among employees was revitalized and their awareness of the need to create better branches increased as well as their willingness to contribute to the workplace.

In addition, since fiscal 2021, we have been conducting psychological safety training for all managers, in order to create a workplace where free and open discussion can take place, and 795 employees participated in it in fiscal 2025.

6. Foster a sense of unity between all Group employees and develop human resources

We are offering training to new employees in a program common to the entire Group, with a view to building their sense of unity and raising their self-awareness as working members of society, and 616 employees participated in it in fiscal 2025.

Moreover, we are also implementing an e-learning system to allow employees of Group companies in Japan to share learning tools and provide them with a total of 171 courses on Sumitomo Forestry's history, business spirit and corporate philosophy, business skills and knowledge, and others.

Training System of the Sumitomo Forestry Business Institute, Personnel Department (FY2025)

*Expenditure on training for fiscal 2025 (Non-consolidated) is 968 million yen

Support for Obtaining Qualifications and Attending External Education

Sumitomo Forestry encourages employees to make independent efforts for capacity building and career development. Its Regulations for Assistance in Obtaining Qualifications and Attending External Education include provisions on the company’s support for employees’ efforts to obtain qualifications or attend external educational courses.

With regard to the acquisition of qualifications needed for managing operations and qualifications recommended for capacity building, the regulations provide for the scope of assistance for each of the 216 qualifications. In fiscal 2025, 941 employees took advantage of the program.

In particular, a lump-sum payment up to 500,000 yen is provided to employees who pass the examination for first-class registered architects, and 18 employees received the payment in fiscal 2025. Also, 45 employees obtained second-class architect licenses under the guidance of the Human Resource Development Department in fiscal 2025.

Introduction of a System to Develop DX Talent

Sumitomo Forestry deems it necessary for all employees to have digital literacy as “digital literacy talent” based on its policy of promoting DX with the participation of all.

Accordingly, we hold seminars so that employees can prepare for the Information Technology Passport Examination and the examination for the Japan Statistical Society Certificate Level 3. Participants in the seminars acquire basic knowledge about IT and IT security, and learn about the importance of making use of real data.
In order to develop advanced digital talent who can lead DX at the divisions, we built a training system to develop DX planning and promotion talent and data utilization talent. The system commenced operation in 2025.

System to Develop DX Talent

Also in 2025, about 80 employees received full-year training and nearly 60% of them received certification as personnel with basic DX knowledge under the system.
Starting in 2026, we will continue conducting the training system and increase the number of participants, thereby further promoting DX across Sumitomo Forestry.

Initiatives by the Human Resources Management Department of the Housing Division

At the Housing Division, a variety of initiatives are implemented in accordance with its training and education policies. We place particular emphasis on developing young employees with the aim of enabling them to work independently by the end of their third year at the division, focusing on "encouraging them to think for themselves". In the on-the-job training (OJT), we are working closely with trainers and using a flipped learning method as a means to enhance the effectiveness of OJT. Through the training we help trainees learn necessary knowledge and skills promptly and provide them with practical follow-up advice.

In January 2026, the Human Resources Development Department and a part of the Administration and Planning Department were integrated to become the Human Resources Management Department. Going forward, we will integrate the former departments’ employment and human resource development systems into one, thereby increasing their professionalism, speed, fairness and transparency toward the maximization of human capital across the Group.

We have begun insourcing video materials to distribute the materials for mid-career hires’ effective flipped learning before regular training. The 360-degree videos provide a range of interactive functions, such as information hotspots, quizzes, and knowledge verification modules. On the videos, employees can pull up text and other information just by clicking on it. The videos contribute to increasing the engagement and retention rates of learners. In addition, Sumitomo Forestry is furthering links to a Learning Management System (LMS) to manage the learning progress of each employee and storing data about the skills acquired by employees, while also implementing human resource strategies as well as human resource management and other initiatives on a medium- to long-term basis.

Flipped Learning Using Videos

Since 2022, Sumitomo Forestry has been using the headquarters studio to create video materials to train mid-career hires. Since April 2023, we have also supported on-the-job training at branches by establishing "Jinkai e-Learning," an environment that enables new employees to learn business operations. In conjunction with this initiative, we aim to establish a dual-axis training program for new graduates and mid-career hires by steadily implementing the regular face-to-face training program established for mid-career hires in 2022.

Examples of Effective Use of LMS

Flow of Flipped Learning

Also, we are developing the management skills, product knowledge, and human asset development capabilities of current and future managers to ensure that they can provide junior and mid-level employees with effective OJT, while supporting and guiding employees in choosing efficient work styles.

Device-based training

Sumitomo Forestry has adopted a paperless system of training materials for employees in their first year at the company, who have a particularly large number of training opportunities during the education period. We also provide them with devices such as tablets for use in the training. By using this system, employees can write notes on important matters in the electronic text during the training session and save the data. Trainees can even review and use learning materials anywhere by using these devices even after the training ends. In addition, the provision of devices to new employees also contributes to the enhancement of IT literacy among younger employees. We will continue to strive to build an educational ICT environment to further develop the qualities and skills of each employee.

Hybrid Face-to-Face and Web-Based Training

Online training eliminates the need for participants to travel a long distance and enables them to attend lectures in a more productive manner. This also allows us to have more training options, such as holding a brief training session on multiple days, which greatly contributes to improving the training curriculum. We have also established a hybrid training management approach that combines small-group face-to-face training and online training, since there are some lectures that bring a greater training effect when given in a face-to-face format.

Hybrid training that combines small-group face-to-face training and online training

Training Using VR and AI

The training utilizing VR videos, which we have been working on for a while, has proven to be highly effective. In the VR-based training held in addition to on-site training, trainees can quickly acquire the knowledge necessary for construction by experiencing various virtual environments without exterior influences, and deepen their understanding of operational processes through hands-on experiences as if they were receiving training on-site. We hope to expand this highly productive VR training to the entire Group and boost the cost-effectiveness of training operations by insourcing the training materials.

In addition, we are currently conducting sales talk analysis for housing salespeople, with the goal of efficiently and effectively strengthening their customer service skills by using AI to objectively analyze the content of their business talks with customers. More customer service assessments will be conducted in the future, leading to the development of Sumitomo Forestry's conversation model and the improvement of individual skills.

Initiatives Implemented by Sumitomo Forestry Home Tech

Needs-Based Sales Training

Since 2021, we have been providing needs-based sales training for new graduate employees who are working in sales or design.
Owners who order renovations are typically around sixty years old and have experienced many life stage changes. However, our staff members who interact with them are often in their early twenties and have difficulty finding common topics with the owners during business negotiations. We provide the staff with this training in order to address that issue. The purpose of this training is to help the staff identify housing issues faced by the homeowners and propose solutions or a plan that addresses their potential needs. Their sense of accomplishment increases after they receive the training, as demonstrated by their comments, such as, “The homeowner now regards me as a family consultant,” and “Now I enjoy sales activities because I am not selling goods; I’m providing solutions for the family.”
For fiscal 2025, the average amount spent per customer in our home renovation service increased by 142% relative to fiscal 2021, when the training program began. This shows that a needs-based sales approach has been steadily taken in the home renovation service. It is enabling our staff members to make even better proposals to help their customers lead more comfortable lives at their homes.
We will continue to provide young and new graduate employees with needs-based sales training in their basic training curriculum, so that our staff members can continue making proposals that satisfy their customers.

Introduction of an in-house qualification system

Sumitomo Forestry Home Tech introduced an in-house qualification system, the "Structural Diagnosis Master" system in fiscal 2021 and the "Seismic Diagnosis Master" system in fiscal 2022. The goal of these internal qualification systems is to improve employees' motivation for self-improvement while also improving legal compliance and quality control across the company.
As of December 2025, out of 825 employees eligible to take the Structural Diagnosis Master exam, 625 (75.7%) passed the exam, while 198 passed the exam for the higher-level Seismic Diagnosis Master qualification.

Promoting the Acquisition of Certifications

Sumitomo Forestry encourages and helps employees to acquire certifications necessary for their business operations and promotes the improvement of their skills to secure a sufficient number of certified professionals. Increasing the number of qualified personnel would lead to higher business performance and greater customer satisfaction. For instance, in the Housing Division, employees engaging in sales are encouraged to obtain certification for Real Estate Transaction Specialist and the Level 2 Financial Planner, so that they can provide customers with consulting services in financial and legal aspects. The average number of orders received by sales personnel certified as the Specialist and Planner is almost twice that of those without the certifications (among employees in their second and third years at the company).

In fiscal year 2025, 206 employees in the Housing Division participated in these certification acquisition support programs.

The latest results of this support are as follows.

*No support for the acquisition of the certification in fiscal 2021, fiscal 2023 and fiscal 2025, in which the biennial tests were not conducted.

Sumitomo Forestry focuses on training to develop its design capabilities. We seek to develop our "Design Skills", "Presentation Skills" and "Customer Service Skills" by evaluating design personnel’s drawings in advance to identify our own design trends and challenges, thereby forming a strong design group that can compete with other companies. In the future, we will also collaborate with interior designers to strengthen our "Presentation Skills", "Customer Service Skills", and "Total Coordination Proposals." Also, we are considering and planning to develop a team that includes interior designers and train engineers who can handle medium- to large-scale construction projects.

Handing Down the Techniques Used in Building Wooden Houses

In order to preserve the way of building houses that makes best use of the traditional Japanese wooden post-and-beam construction method, it is important to pass on these skills and techniques to the next generation of workers.
In 1988, based on this recognition, Sumitomo Forestry established the Sumitomo Forestry School of Professional Building Techniques as an in-house school for vocational training and as an educational institution certified by the governor of Chiba Prefecture. This school provides new employees of Sumitomo Forestry Home Engineering who aspire for a job in carpentry with one-year training. Students attend classroom lectures on construction-related subjects, including “introduction to building,” “structure,” “drawing,” “methods of construction,” “materials” and “construction supervision.” They also receive practical training, such as training for the use and maintenance of tools, traditional carpentry techniques including those for stereotomy and safety work; model-based practical training; and demonstration-based practical training, as well as training on computer operations with the goal of acquiring a 2nd class carpenter license upon completion of the training. Students who have completed the training are assigned to Sumitomo Forestry’s sites located all around Japan, and after a few years, they return to the school to receive seven to ten days of training on Japanese-style rooms and participate in a preparatory course for acquiring the 1st class carpenter license.

In response to the recent shortage of successors in skilled trades, we started to train carpenters as well as plasterers in 2020 and structural workers in 2022. We have also been accepting female applicants for skilled trades since 2021, and we are working to adapt our support systems in a flexible manner to meet the needs of the times.

In fiscal 2025, the school had another 87 new enrollments.

*The table above shows a planned number for those with the 2nd class plasterer license among the 38th cohort of students, who will take the test for the license in July and their test results will be announced in September.