Sumitomo CEO on Growth Areas, Weak Yen Impact

I know that you've been at the helm of your company for about two months now. You already have a management plan out there with some shifts in your portfolio. Tell us a little bit about the biggest changes that we can expect at Sumitomo. Last three years we have been working for the structure reform, So now it's changed the mood. I would like to change the mood from defense to offense. So in other words, you know we will have to make realize that the dramatic growth in next two years. That's why I try to change that our company's mindset then the main theme is number one in each business line. So that's a kind of that mindset. But at the same time, I would like to you know, accelerate the reallocation of our management resources into the focus area. That's the main part. Tell us a little bit about those focus areas because as you said, you have so many different business lines. Exactly. That's right. That's right. Yes, there are, you know, especially there, there are eight business lines, we RS8 or steel, steel businesses, healthcare, agriculture, so many things just I pick up three examples. One is agriculture Agri, Agri business is we are, we are, we are, you know doing the fertilizer or or biochemical that we expand to the seed cells or, or or the addition to that. The other type of the you know, agricultural products we are we are now selling in the Latin America, in Europe and we would like to expand that. That's the first one and second one is a construction machinery businesses. Historically we have been working in the Canada and United States. It it's a sales and also the lentil business. The rental business will be expanded to the Singapore and other S SE countries and then we are targeting to the Europe. That's the second one. The third one is a real estate that we would like to developed at the city or Urban Development project centered on real estate that that that's what I'm talking about. All those three has the strengthest experience or you know competitive advantage when you're talking about expansion in your business, are we talking about growth coming organically or even through M and as even through M&A? How would a very cheap Japanese yen play into that strategy because M and as become more expensive when the yen is this week exactly. However, we just count on that dollar basis. That's why nothing changed regardless of the end depreciation or or you know appreciations. We, we would like to see the what is the value in dollar and then we will decide to invest into those businesses or not. So then at the same time the businesses where we are confident increase the corporate value that that that company's value, then we decided to go into the investment. Does that mean that so far you're not seeing a meaningful impact from the depreciation of the yen? I don't think so. Do you expect to see more meaningful impact? Because I know that your yen assumption for until March of 2025 was 140. We're around 160 and people are talking about 170. I know, I know when I when I made that meet meet them plan, my assumption was that our assumption was that the US Japan interest gap will be narrower at that time. But actually as you said that you know, the, the, the yen is depreciate, depreciate to the father. So I'm not sure what what will happen in the future, but I think the the interest gap will be slowly narrower and then yen depreciation maybe change to the appreciations. But I think, you know, it is, it is good for, for our company to some extent because of the yeah, yeah, yeah, it's depreciated and ¥1 maybe how much? Two, 2 billion, No, no, no ¥2 billion increase and depreciation 111 yen. Yes, yes, yes, to ¥2 billion increase, increase in profit. However, such a prolonged, say, Japanese yen depreciation, we're not good for the country's strengths in, in, in, in the long line. You know, tell us a little bit about that because we have seen, of course, that overall the yen weakness has helped those exporters in Japan. But at the same time, households and smaller businesses have suffered. You have business lines and in different sectors of the Japanese economy. At what point does it become too painful? You know, if the yen depreciation is due to the lack of the domestic demand for funds. And then as I said, the in, in, in, in the long run that the Japanese economy we're getting weak and weak. So we need to create the domestic demand for funds in, in these countries. We're seeing a lot of interest from overseas businesses, foreign investors as well in Japan. And you've decided to boost your return to shareholders as well. Why now? I think you know, market is paying attention to Sumitomo cooperation. You know, many, many investors are just showing their interest that that's very good things and that we would like to increase the shareholders return. So that's why we decided to change our policy, the shareholders return policy to attract them. Is there some negative attention as well? We know that Elliott Management apparently increased their stake at Sumitomo. You know, we, we always appreciate the support of investors who show the interest and who believes in our future growth or potential. Are you having those conversations with Elliot? I cannot say anything with about the conversation with a specific, you know, investors, but you know, I think we, we, we are very open to discuss with the various investors and if if there is a very good, good recommendations or suggestions that we will try to, you know, utilize those, those ideas. So have you gotten some of those recommendations from Berkshire Hathaway as well? Oh, actually that we, we have been been communicating with them, but they're, they're they, they are also saying that, you know, they, they're expecting that our future growth. So, so we would like to to do just upon their expectation.