I had never thought of teaching at a university, but it so happened that I had such an opportunity when I was asked by my old school to give a talk on the theory of social practices. So, in front of some 100 students, I talked for eighty minutes on the theme of “Globalization and Captains of Industry,” occasionally including some of my personal experiences for reference.

As soon as I entered the classroom, I sensed how it has changed with the times; it seemed that now most students preferred to sit at the back of the room with front seats empty, and there were a greater number of female students. During my talk, some students were enthusiastically listening and taking notes; unfortunately, some others were nodding off. If I had been giving the talk at my company, I would have exploded in anger at those who were dozing off. However, this time I concentrated on speaking to those listening earnestly, sympathizing with my past teachers’ efforts in keeping their students attention.

After briefly introducing my background, I tried my best to give a speech that would be of some benefit for the students. The main areas I discussed were: lessons from my school days, the basic spirit of business models (my personal note about company management, upon assuming the position of president), some remarks for new recruits, the meaning of “Captains of Industry,” desired qualities in employees, and so on.

The lessons from my schools days are as follows: (1) discipline, self-restraint and cooperation are vital qualities for a member of society, which can be cultivated through varsity team and other club activities, (2) educating oneself through study of the classics is important for developing a well-rounded character, just like a strong foundation is indispensable for supporting a large structure, and (3) apart from knowledge, physical and mental strength obtained through sports is also pivotal, as in the long journey of life there will be many difficulties that can not be simply solved by an equation.

I believe the university’s education philosophy of “Captains of Industry” is an eternal spirit, even nowadays in the increasingly globalized society.
The eighty minutes seemed to fly by, and I wondered if my message had reached the audience. After my talk, some enthusiastic students approached me with some questions. I advised them to take action first rather than worrying too much about this or that and also not to take the easy path but to constantly try and challenge themselves.

While it is said that there is an increasing number of people who don’t have dreams these days, the energy and power of our youth are crucial for the development of society and organizations. So in conclusion, I would like to say to everyone that I hope they will try to challenge themselves in their studies, sports and life in general, so that they will throw off this sense of stagnation and strive to become a non-conformist with a solid backbone.

Lastly, I am looking forward to reading everyone’s reports on my recommended book.

The other day, we held our regular Investor Relations (IR) meeting at the Tokyo head office. Despite the rain, over 100 analysts attended the first IR meeting held in the new Tokyo head office since its relocation to the Shibaura Renasite Tower in Tamachi. Unlike our previous conference room on the first floor, the room used this time featured a high ceiling and commanding view from the 12th floor, allowing me to clearly see the face expressions of the audience.

The meeting started with my presentation on the theme of “Returning to a growth track and towards achievement of VISON 2012.” In the presentation, I reported on our progress regarding restructuring and cost reductions, key factors for further growth, as well as challenges and future initiatives in each business segment. Thanks to our efforts so far to strengthen our overall structure, we are gradually moving towards a leaner and tighter corporate body. As such, we will most likely be able to return to pre-Lehman shock profitability levels in the second half. The key factors for our future growth include: (1) our approach towards emerging countries, such as China, India and Brazil; (2) capturing the demand of electric and communication infrastructures; and (3) developing environmental-friendly technologies, such as products for energy-efficient vehicles, recycling energy, superconductors and power devices.

Following my presentation, Mr. Hideaki Inayama, Managing Director in charge of accounting, made some additional comments on the financial results of the second quarter. Then Mr. Atsushi Yano, Managing Director and head of the info-communications business, explained about the recent activities of the optical and electronic devices business. As a result of the reorganization between Sumitomo Electric and Eudyna Devices Inc. in August 2009, Sumitomo Electric assumed responsibility for the entire business regarding sales and marketing, strategic planning, as well as research and development of optical and electronic devices. Meanwhile, Eudyna was assigned product development and manufacturing, and changed its corporate name to Sumitomo Electric Device Innovations, Inc.

Recently we were awarded the title of Cisco Supplier of the Year for 2009, which is a good indication that we are favored by our customers. We will draw upon the synergy effects of the reorganization and vertical integration from materials (chemical compound semiconductors) to optical devices and modules, in order to secure our position as the world leader in our industry.

In the question-and-answer session, we received some questions regarding market trends and prospects in our business fields including wire harness, optical fibers, electronic devices and electricity. We did our best to outline our intentions. The session was a good opportunity to communicate with the audience.

Although the economic situation remains unpredictable due mainly to the appreciation of the yen, increasing commodity prices, and stagnant employment and consumption, we will focus on strengthening our corporate structure and developing new businesses, so as to meet the expectations of our stake holders. We appreciate your continuous support in moving forward with these initiatives.

The other day, I attended the 41st Tokyo Motor Show 2009 on its final day.

Influenced by the economic crisis since last autumn, this event saw a marked change from two years ago, with both exhibit booth and visitor numbers down by more than half. I could not help feeling that the decorations and atmosphere of the show this time were a far cry from when it was prized as one of the world’s three major motor shows. In particular, the sharp drop in the number of exhibitors from overseas perhaps points to the decline of the already developed Japanese market, in comparison to the continually expanding Chinese market.

Despite this, Japan’s world-leading automobile companies displayed ingenuity in introducing their HV, PHV and EV models and fuel-cell cars, as well as the environmental energy technologies behind them.

The Sumitomo Electric Group featured a wide variety of products and technologies for a safe, comfortable and environmentally-friendly automobile society — more specifically, high-voltage harnesses and motor magnet wire for HVs, electrode materials for nickel-hydrogen batteries, lightened vibration-free rubber, ITS systems for traffic control and safe driving support, and superconductor technology.

The centerpiece of our booth was a frame car: a full-size car built with pipes and equipped with our auto-related products. It attracted many people and was quite a popular exhibit. I would like to take this opportunity to thank everyone for their participation.

Our booth was bright and spacious, employing a sweeping design based on white and green. Efforts to create a comfortable space were seen here and there, such as the many foliage plants placed around the booth, the use of cushion flooring, and an aroma diffuser to create a relaxing atmosphere.

Sumiden Friend, Ltd, a special subsidiary of our company, provided the foliage plants scattered around the booth. I hope to see more of such business opportunities for them in the future.

The other day I attended a semi-annual company-wide conference on safe environment, product quality and clerical work quality. Group representatives gathered at Itami Works, and regional hub representatives participated through a video conference system. The all-day conference included reports on activities during the first half of the year and in-depth discussions, which enabled the whole company to share information including future directions and plans. From reports by the respective groups, we can learn directly how staff members in the field are struggling or exercising their ingenuity to improve operations. Since I assumed the office of President, this semi-annual conference has been one of the things that I have been looking forward to.
All the activities reported in the presentations employed the “scientific approach,” which has been handed down through the company’s long history. Perseverance leads to success.
Today, I will write about activities chosen from the reports on environmental and clerical work quality activities.

As for environmental activities, a report was given regarding energy conservation achieved by minimizing air resistance of rotating bodies using computer-aided engineering (CAE), a technique which has been nurtured through product development. Further energy saving may be achieved by expanding applications.
Regarding Eco-Life Activities, a program launched in 2008 for promoting energy conservation at employees’ homes, the number of participants increased to 4,416 families. In a best-practice case reported, all members of one family actively participated in this effort. They came up with ways to save energy, such as frequently switching lights off, curtailed use of televisions and air conditioners and lowering preset temperature of hot water supply, then carried out these actions and quantified the effects of the respective measures. I offered a letter of appreciation to the family. To families who achieved the goal of CO2 emissions reduction of one kilogram per person per day, the company presents potted foliage plants grown by Sumiden Friend, Ltd., a special subsidiary of Sumitomo Electric. A first step toward resolving environmental problems is to change the state of consciousness of each and every person. I hope these energy-saving activities will spread among many more families.

As for clerical work quality, a report was given regarding an effort to improve and rationalize operations using a unique tool. A diagram based on a golf course map was put up at the workplace so that everyone could track the progress of their activities at a glance. By sharing and visualizing tasks, this tool helped raise a sense of participation among staff members and further activate the campaign. With some touches of humor, this presentation was very impressive and easy to understand. It provided a typical example of the way even a low-key, steady activity can be carried out with pleasure, without becoming a merely rote effort, by employing an ingenious device.

The SWITCH Campaign was launched in 2008 with the aim of adopting an efficient mode of working, so as to improve the quality of both working and private lives. This year, the second year of the Campaign, our efforts focus on operational efficiency improvement in the office sector. I expect the next target will be operational improvement in terms of IT and enhancement of clerical work reliability.

After the report session, a party was given in appreciation of the presenters’ services at GENKI Club, an employees’ clubhouse. It was inspiring to hear their stories of struggle and success. They also talked about the sense of satisfaction they had when things turned out well. As alcoholic drink serves as a lubricant, we can come up with good ideas.

We at the Sumitomo Electric Group continue to promote reinforcement of the “S-E-Q-C-D-D (safety, environment, quality, cost, delivery and development)” aspects of our operations as all-participatory campaigns, aiming to turn tacit knowledge into explicit knowledge.

Sumitomo Electric is a 25% shareholder of Sumitomo 3M Ltd., where Mr. Jesse Singh was appointed President almost two years ago.

Mr. Singh was dispatched to Japan from the innovative and vigorous 3M headquarters in Saint Paul, Minnesota. Seeing that both Mr. Singh and his family had become quite accustomed to life in Japan, I invited them to Kyoto, a place closely associated with the Sumitomo Family.

Kyoto greeted us with a crisp early-autumn breeze. Our tour included a former residence in Shishigatani of the main branch of the Sumitomo family, and its garden, called Yuhoen, as well as Sen-oku Hakuko Kan, a museum housing ancient Chinese bronzes collected by Tomoito Sumitomo, the 15th Head of the Sumitomo Family.

At Shimogamo Shrine, the Singhs experienced oharai, or purification rites. For dinner, we treated them to authentic Japanese cuisine prepared by Tankuma, at Sekison-tei, a favorite Kyoto residence of literary great Junichiro Tanizaki, through the kind offer of Nissin Electric Co., Ltd., which now owns the villa as its guest house. Here we spent an evening unique to Kyoto, in a room that opened on to a well-tended garden lit with stone lanterns, and with the clear sound of a shishi odoshi (a rocking fountain once used as a deer scarer) occasionally cutting through the silent evening.

I learned that this is the first time Mr. and Mrs. Singh were being stationed overseas, so imagined they must have had few previous chances to experience the Orient. Perhaps the day somewhat overwhelmed them with the avalanche of Japanese culture.

Spending the day with them reminded my wife and me of the culture shock we received when we were first posted overseas more than 30 years ago, though in our case it was from Japan to the U.S. On the way home from Kyoto we couldn’t stop talking to each other about those days. I couldn’t be happier if the trip to Kyoto left the Singhs with pleasant memories as well.