Notice Regarding the Formulation of the Mid-term Management Plan 2028 ~Aim for ‘Sales of 6 trillion yen’, ‘Operating Profit of 600 billion yen’, and ‘Pre-tax ROIC of 15% or more’ in 2028~

Overview of the Mid-term Management Plan 2028

Sumitomo Electric Industries has formulated the 'Mid-term Management Plan 2028' covering the three years from fiscal 2026 to fiscal 2028. The plan sets targets of 6 trillion yen in sales, 600 billion yen in operating profit, and pre-tax ROIC of 15% or more. The company has identified three strategic focus areas: 'Digital & AI', 'Energy', and 'Mobility', while also emphasizing融合 (fusion)领域 (domains). Over the three years, the company will invest a cumulative 1 trillion yen in capital expenditure, leveraging technical strengths to respond to global changes and aim for growth.

Business Strategy and Numerical Targets

The business strategy includes launching high-performance products for the North American hyper-data center market in digital and AI domains, strengthening cable manufacturing and construction capabilities in energy, and expanding global share of wire harnesses in mobility. The numerical targets include increasing sales from 5.11 trillion yen in fiscal 2025 to 6 trillion yen, and operating profit from 418.2 billion yen to 600 billion yen. R&D expenses over three years are planned at 540 billion yen, with capital expenditure of 1 trillion yen.