We would like to inform you about the following business conducted by Sumitomo Corporation (Headquarters: Chiyoda-ku, Tokyo, Representative Director, President and CEO: Shingo Ueno, hereinafter referred to as 'Sumitomo Corporation').

Regarding recording of provision for allowance for doubtful accounts

KDDI Summit Global Myanmar Co. Ltd (hereinafter referred to as 'KSGM'), a company invested by Sumitomo Corporation, supports the telecommunications business of Myanmar National Post and Telecommunications Corporation (hereinafter referred to as 'MPT') in Myanmar. Due to the following reasons, collection of dollar-denominated lease receivables from MPT held by KSGM (approximately 130 billion yen as of the end of March 2024) has been delayed, so an allowance for doubtful accounts will be recorded in the fiscal year ending March 2024. (approximately 105 billion yen, reserve ratio of approximately 80% of outstanding receivables).

The situation with the dollar convertibility restrictions imposed by the Myanmar government that began in April 2022 has not improved.

As of the fiscal year ending March 2024, the Myanmar Telecommunications Business continues to be in the red.

Furthermore, we will continue to strive to collect the dollar-denominated lease receivables for which we have made provisions.

Regarding Sumitomo Corporation's consolidated financial results, a loss of approximately 35 billion yen (Note) is scheduled to be recognized in the fiscal year ending March 2024. This loss is not included in the full-year consolidated earnings forecast for the fiscal year ending March 2024, which was announced on February 5, 2024. The consolidated results for the fiscal year ending March 2024, including other projects, are currently under review.

(Note) In addition to recording an allowance for doubtful accounts of approximately 52.5 billion yen (equivalent to 49.9% Sumitomo Corporation's equity), this will include a reversal of approximately 17.5 billion yen in impairment losses on equity method investments recorded in the fiscal year ending March 2023.

Others

We recognize that the situation in Myanmar continues to be very difficult, with regional conflicts occurring frequently, and that all businesses are in a difficult situation, and we understand that there are a variety of opinions. In addition, Sumitomo Corporation is committed to complying with international human rights norms such as the United Nations Guiding Principles on Business and Human Rights, while paying attention to ensuring the safety of local employees, their families, and other stakeholders. 'Sumitomo Corporation Group Human Rights Policy' We pursue ways to respect human rights.

We will continue to monitor changes in the situation and consider appropriate measures.

(C) 2024 Electronic News Publishing, source ENP Newswire