Looking Back on 2025

Although it's a little early, I'd like to thank all our employees for your hard work in 2025.

Once again, I'd like to express my gratitude for your efforts this past year.

External Events: Changes in the External Environment and Business Outlook

2025 was a year of heightened uncertainty regarding global affairs and the economic environment.
In the United States, with the second Trump administration taking office, tariff policies were revised, and the international trade environment became increasingly uncertain.
In response to difficult-to-predict changes in the external environment, such as rising tariff costs and raw material costs, you all responded flexibly by reducing costs, controlling indirect expenses, and mitigating the impact of tariffs.
Our group's full-year financial forecast for fiscal year 2025, announced in October 2025, showed a decrease in revenue and profit compared to the previous year, partly due to the impact of the currency conversion assumptions made at the time.
However, in terms of our actual capabilities, each business division is producing solid results, and I feel that we are steadily growing into an even stronger organization.

From Improving the Work Environment to Increasing Engagement

The year 2025 was also a year in which we worked to create a work environment that is even easier for employees to work in and where employees feel more motivated.

At the Matsusaka Plant, we have decided to renovate our office building for the first time in approximately 40 years, and at the Komaki Head Office and Plants, we began operation of the new "SG Building," a factory symbolizing GX (Green Transformation), achieving both productivity and environmental performance.

At the Komaki Head Office and Plants, we have also renovated the Purchasing Logistic Headquarters floor, the Automotive Hose Business Headquarters factory break space, and the Automotive Anti-Vibration Business Divisions’ meeting space, ensuring a safe environment for both body and mind while accommodating diverse working styles
A major factor behind the progress made in developing and improving the workplace environment is the proactive approach taken by the people in charge at each workplace to plan the renewal.
It is also said that improving the workplace environment leads to improved engagement.
In fact, by designing efficient traffic flow and creating spaces that foster natural communication, productivity is improved and revitalization (co-creation) has been promoted not only within departments but also between departments.

Let’s Expanding the Circle of Co-Creation

I believe that communication does not end at "two-way," but evolves into "co-creation," where we think together and give shape to things together."
This President Blog has been issued over 180 times to date, but its purpose is not to communicate one-way.
Knowing what you feel and think broadens my own perspective.
It has also been four years since our online in-house newsletter, "Mitsukumi2," was launched, and it has been used by many people.
Experiencing and sharing information leads to small realizations and dialogue that lead to the next kaizen and challenges, and it is this chain of events that drives the organization forward.
Co-creation does not start with a special initiative.
Putting your thoughts into words, listening to someone else's perspective - each and every action shapes the future.
Please let me know your thoughts about my posts, whether it's a reply to this blog, an email, or in person.
Over the New Year holidays, I would like to reflect on our future management and business strategies, and the new stage that lies ahead for our Group.
I hope you all take some time to reflect on the past year and consider your next step.
Please have a wonderful New Year's holiday.
Let's move forward together next year, with the motto of "Banji-nissei" in mind!

SUMITOMO RIKO President's Blog

The contents of this blog are compiled by the Public Relations and Investor Relations Department of Sumitomo Riko Company Limited as the secretariat and posted on the blog based on the speeches and wr