Amidst Global Instability and Rising Costs, We Maintain Our Commitment to Sincere Pricing and the Future of Home Building

## Market Fluctuations and Our Position

Due to the Naphtha shock and heightening tensions in the Middle East, crude oil prices remain at high levels. Many essential residential construction materials—such as insulation, plastic products, and piping—contain petroleum-derived raw materials, leading to increased material and logistics costs that drive up housing prices.

In this rapidly changing market environment, we believe our role as a builder is not to present ambiguous estimates, but to correctly unravel the reality of how economic shifts affect the 'price of a home.'

## Visualizing Pricing and Sharing Grounds

We will not hide the reasons for price fluctuations. Why is the price of this specific material moving now? Should we select a substitute, or should we prioritize quality and maintain existing specifications? We share the background and sourcing grounds for these decisions with our clients during the design and estimation process.

Clarifying 'why this amount is necessary' is an essential step for clients to proceed with home building with conviction. In these uncertain times, we prioritize providing a secure environment where clients can make decisions with confidence, achieved by correctly disclosing information and reviewing plans from the same perspective as the client.

## Grounded Home Building for the Future

Even as the environment surrounding the housing industry becomes increasingly severe, the foundation of our 'approach to home building' remains unchanged. We continue to offer proposals that prioritize the lives of residents, unaffected by transient trends. No matter how the market moves, we stay grounded, dialoguing with our clients and each site to shape homes without compromise.

## Our Initiatives

Due to the prolonged crisis in the Middle East, we are seeing movements of 'order suspensions' and 'delivery delays' domestically for some unit baths and residential equipment. We understand that such news is a source of anxiety when building the home of a lifetime. To ensure our clients can proceed with home building in peace, we are implementing the following measures:

1. Early Sharing of Latest Information
We coordinate closely with manufacturers to quickly catch information on delivery fluctuations or price revisions and communicate it immediately to our clients.
2. Proposals for Flexible Alternatives
If delays are expected for preferred equipment, we discuss measures to protect the construction timeline, such as proposing optimal substitutes that do not compromise design or functionality.
3. Implementation of Advance Ordering
We strive to place orders and secure inventory as early as possible to minimize the impact on construction timelines.

## Request to Our Clients

For clients who have already contracted with us, please note that we may contact you regarding construction timelines, specifications, or pricing depending on future conditions. We sincerely appreciate your understanding and cooperation as we provide our full support to ensure the best possible choices are made.

We always prioritize shaping our clients' ideal homes regardless of the situation. Please feel free to contact your representative at any time if you have any questions or concerns.

## Message from the Representative

The idea we have cherished most since our founding is the value of 'who you build with matters more than what you build.' Connections with our clients, teammates, and partners are our driving force and our treasure.

With this thought in mind, we have established 'increasing creators' as our management philosophy.

In home building, clients are not mere consumers but protagonists who 'create' an ideal life together with us. Each employee maintains a sense of ownership, 'creating' their own future and that of the company. We firmly believe that through the subjective experience of 'creating,' people find their own unique happiness and gain happiness themselves by bringing joy to others.

Sumika Inc. will continue to be grateful for our connections with everyone and will help enrich each person's life while sharing the emotion and joy born from 'creating.'