In late November, our group held an Interim Financial Results Meeting.
A financial results meeting is an opportunity for us to explain the financial figures and their background, and to answer questions from institutional investors and analysts of securities firms.
This time, we held this meeting remotely and 23 people participated.
Depending on the contents of our explanation, investors may buy our company’s stock, which will increase the stock price, however, on the other hand, if they think that our company has no growth potential, they will sell the stock and the stock price will decrease.
In addition, analyst reports issued by analysts also have a significant impact on the investment trends of investors, so a financial results meeting is a very important forum for disclosure of information.
The questions we received were answered (in part) as follows:
Q: If the number of electric vehicles (EVs) increases, won’t the number of parts produced by Sumitomo Riko decrease? 电动汽车（EV）一旦增加，住友理工的搭载于传统汽车的零部件将会减少吗？
A：There are certainly some parts that will be reduced, but we are working hard so that our new products which contribute to autonomous driving cars, such as steering touch sensors, will be adopted by our customers.
In addition, since EVs require quieter cabins than ever before, more value-added anti-vibration rubber will also be required.
In addition, development of hoses for cooling batteries, etc., has been advancing, therefore, we forecast that our group will increase the profit by appropriately proceeding the transformation targeting EVs.
Also, we believe that per-vehicle sales for our products are expected to increase as the shift to EVs proceeds.
Including partnerships with the National Institute of Advanced Industrial Science and Technology (AIST), we have been proceeding investments for future growth, by judging which field and domains we should invest in very carefully.
※Only when speaking, we removed our masks. 仅发言时未佩戴口罩。
Q: How is the progress of the transformation to a solid business structure? 向精益型组织的改革进展如何？
A：We have been reorganizing production bases and integrating plants in in Europe, South America and Asia.
In addition, we want to make sure that there is no duplication in our work to avoid wasting our work time.
The introduction of remote work and other methods of working under the corona pandemic also provided an opportunity to recognize the need for changes to new lifestyles and work styles within the company.
emote work will continue to be used as a way of working that cuts down on unnecessary travel time because it allows us to work from anywhere, not just from home.
To all the employees 致各位员工
The investor’s perspective is eventually whether our company has potential for further growth and profitability.
In order to make such a decision, they look closely at our group’s performance and business history, and compare us to other companies.
Actually, this kind of Financial Results Meeting is a great opportunity for us because our company’s social values can be judged by external people’s perspective.
I also value it in the sense that we get sharp questions and opinions.
Until 2018, the published values were not accompanied by actual business results and did not meet the expectations of society.
However, in FY19, we were able to achieve the announced values despite the sales decrease due to the corona virus impact in China at the end of the fiscal year.
Also in the first half of 2020, even though the future is uncertain, the results exceeded the published values thanks to your efforts.
The accumulation of such efforts will lead to social trust.
I really want all the employees to enjoy your daily work vigorously for your own self-realization and personal growth.
From a long-term perspective, as I always say, I hope that you will take on the principle of “Shinyo-Kakujitsu” and “Fusu-Furi”, and please face your work with the spirit of “Banji-Nissei”
On the other hand, I would like you to know that investors who own or are considering holding our stock are evaluating our company based on a short-term and numerical view points, which is actually a severe reality.