To realize sustainable growth and development, the Sumitomo Corporation Group is working on enhancing group governance and improving the overall quality of groupwide operations through the development, operation, evaluation, and improvement of appropriate internal controls. We have established basic regulations on internal controls to reasonably ensure compliance with laws and regulations related to business activities, safeguarding of assets against loss, effectiveness and efficiency of operations, and reliability of financial reporting in the Group’s overall businesses.

To ensure efficient operation of existing internal control frameworks, create synergy, and coordinate with internal audit functions, the Internal Control Promotion Department, which takes on overall control of the Group’s internal control-related operations, has been established alongside the Internal Auditing Department under the Head of Internal Control and Internal Audit Group. By actively identifying issues and utilizing internal control activities within the Group, the department will promote greater effectiveness and consistency of the above efforts throughout the Group.

The Company's Board of Directors resolved and implemented the systems set forth in the Companies Act and the Regulations for Enforcement of the Companies Act (internal control system) to realize the high effectiveness of internal control of the Company. The Company will endeavor to establish a system in line with requests from time to time based on ongoing reevaluations by reviewing the Company’s internal control implementation status each year.

Internal control system which is resolved by the Board of Directors and an overview of our internal control systems and their implementation status are provided below. Moreover, the Internal Control Committee assessed the implementation of the internal control systems, confirmed that these internal control systems were functioning effectively, and reported this fact at the Board of Directors' meeting.

Internal Control System (as of April 1, 2024)

Internal Control System (as of June 20, 2025)

An overview of the Company’s internal control systems and their implementation status

The Company prepares its consolidated financial statements in accordance with the Accounting Policy Manual that lays out the Group’s internal policies for accounting and discloses the information in a timely and appropriate manner and in compliance with relevant laws, regulations, and accounting standards.

For its internal control over financial reporting, the Company acts in accordance with the Internal Control Reporting System stipulated in the Financial Instruments and Exchange Act, which is in line with COSO（The Committee of Sponsoring Organizations of the Treadway Commission）Internal Control-Integrated Framework, by promoting internal control activities as required by the Act, and evaluating and improving its business processes.

The Company has established Internal Audit Department to monitor company-wide operations as an independent organization. This Internal Audit Department conducts audits of the Company, its overseas subsidiaries, and domestic and international affiliated companies. Internal audits are carried out based on an annual audit plan, and the results are reported directly to the President and Executive Officer on a monthly basis, as well as regularly to the Board of Directors and the Audit and Supervisory Committee. Audits are conducted periodically in accordance with the International Standards for the Professional Practice of Internal Auditing, covering the overall internal control systems of audit targets, including asset and risk management, compliance, and operational execution. Taking into account the significance of inherent risks at each audit target, the department evaluates the effectiveness and appropriateness of internal controls and provides appropriate recommendations for improvement, thereby contributing to the enhancement of governance and internal controls across the Sumitomo Corporation Group.