Slides
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Investors' Meeting for the Current Priority Management Issues and Business Strategy September 25, 2025 Nobuaki Mito – President
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2 Agenda Introduction Section 01 4 Upgrade business portfolio with new growth strategy Section 02 FY 2025-2027 Progress on the Corporate Business Plan 8Basic direction 01 Build greater resilience by executing continued structural reforms 25 Basic direction 02 Improve financial and capital efficiency 31 Basic direction 03 Section 03 Epilogue (1) Winning businesses rooted in organic synthesis technology (2) Cultivating new growth businesses 21 8 34
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3 In the half-year since becoming CEO, I have striven to focus on businesses where we can win and strengthen employee engagement. Across the business portfolio, we have upgraded and strengthened competitiveness across segments with a focus on winning businesses rooted in our strength in organic synthesis technologies . We made solid progress reorganizing P&P businesses inside and outside Japan, including PetroRabigh and our business integration with Prime Polymer. Regarding Sumitomo Pharma, In the small molecule drug business, while promoting the expansion of three key products and the development of two oncology drugs ,the company is considering its medium- to long-term direction. The regenerative medicine/cell therapy business is being developed as a new growth area for the group. We strengthened investment management processes to redouble efforts toward ROIC-oriented management and built decision-making and monitoring regimes capable of responding with agility to environmental changes. 01 Key points
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Section Introduction01
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5 My aims at CEO My aims at CEO Play where we can win Focus on businesses where we enjoy a technological edge and build a more resilient portfolio. Enhance capital profitability and recover the market’s trust. Strengthen employee engagement Remove the “elephant in the room.” Foster a startup mentality and lead the organization to repeatedly take full swings at the challenges we face. 01
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6 01 Crop protection products (Chemicals and Biorationals) Semiconductor materials Licensing out and Catalysts (lower environmental impact) Pharmaceuticals CDMO (Advanced small molecule APIs and Oligonucle otide ) Leading - edge OLED materials Dyestuffs Small molecule Pharmaceuticals (Drug discovery) Petro chemicals Chemical fertilizer Display materials Winning Business Strengths II Organic synthesis technology Where we can win Our winning businesses rooted in our strengths in organic synthesis technology can drive us toward growth.
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7 Overview of the new Corporate Business Plan01 Vision for this plan Slogan Upgrade business portfolio with new growth strategy Build greater resilience by executing continued structural reforms R&D strategy based on 3 X’s Strengthen management base supporting new growth strategy Talent DX Governance Basic direction 01 Basic direction 02 Basic direction 03 Basic direction 05 Core Operating Income 200 bn. yen ROE 8% D/E ratio Approx. 0.8X FY2027 Financial targets ROIC 6% Improve financial and capital efficiency Basic direction 04 Return to a growth trajectory and show the way toward further growth Leap Beyond ～Return to a growth trajectory～
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Section Progress on the Corporate Business Plan02 FY 2025-2027 Upgrade business portfolio with new growth strategy (1) Winning businesses rooted in organic synthesis technology (2) Cultivating new growth businesses Basic direction 01
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9 Upgrade business portfolio with new growth strategy Basic direction 0102 A business portfolio that is completely aligned with base technologies. In each segment, focus on businesses where we can win. Agro & Life Solutions ICT & Mobility Solutions Advanced Medical Solutions Essential & Green Materials Organic synthesis technology Agrosolutions business (Chemicals and Biorationals) Semiconductor materials Leading-edge OLED materials Pharmaceuticals CDMO (Advanced small molecule APIs and Oligonucleotide) Licensing out and Catalysts (Lower environmental impact businesses) Winning businesses
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10 Winning in Agro & Life Solutions02 (1) Winning businesses rooted in organic synthesis technology 3 Blockbuster candidates driving growth in the chemicals business Expand product portfolio (mixtures, etc.) Develop new business opportunities (countries, crops indicated, applications) Launch in the UK and EU nations in 2026 and beyond INDIFLIN® Rapidicil® Pavecto® Advance registration in countries in North and South America. Expand product lineup by developing mixture products. Build next-generation weed controls for use with PPO-tolerant crops Launched in Argentina. Register in US in 2026 and Brazil in 2027. Advance registration in South America and Europe. Expand product lineup by developing mixture products. A unique QoI* fungicide that is effective against bugs that exhibit resistance to existing QoIs Register in Brazil and Europe in the late 2020s * QoI：Quinone outside Inhibitors Tens of billions of yen just a few years from launch By 2030: By 2030: Sales of several tens of billions of yen 2024 2027 20302021 2024 2027 2030 By the mid-2030s: Sales of several tens of billions of yen 2027 2030 2035 2X Basic direction 01 Sales of several tens of billions of yen
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11 Winning in Agro & Life Solutions02 INDIFLIN® PLCM* through expansion of a diverse product portfolio Expand geographies, crops, and applications Expand product and indication opportunities to provide solutions that meet user needs * PLCM：Product Life Cycle Management Advance new product development leveraging a global R&D network Execute PLCM to differentiate against rivals and maximize sales and profits across the product’s entire life cycle Search for additional INDIFLIN® indication opportunities Recently launched in Australia and India 2020 2021 2022 2023 2024 2027 2030 Sustainable topline growth enabled by PLCM Product A Product B Product C Product D Others India: rice (2025) Australia potatoes and bananas (2024) Blockbuster in soybean rust US and Japan: Also applicable to specialty crops (1) Winning businesses rooted in organic synthesis technologyBasic direction 01
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12 Winning in Agro & Life Solutions02 How it is used Rapidicil® Strengths Fast-acting non-selective herbicide Exhibits efficacy in low doses Suited for no-till farming Registration schedule Argentina: Launched EMPERA® in FY 2024 US: Launch in 2026 Brazil: Launch in 2027 Top photo shows before, bottom photo shows 3 days after Rapidicil® treatment. Preplant Burndown (PPBD/before planting) Eliminate weeds before planting the crop Today 2030 and beyond Over the Top (OTT/applied over the top of a crop that is already growing) PRO-resistant soybean Weeds Rapidicil® Total : 31 bn. USD Global herbicide market (2023) (Source: AgbioInvestor) 北米 中南米 その他 Increase geographic coverage in major markets and expand business with indication for next-generation weed control systems 2026 2028 203X Sustainable topline growth through indication for next-generation weed control systems PPBD OTT Suitable for no-till farming, which also helps preserve soil Contributes to regenerative agriculture Build next-generation weed control systems by combining with Rapidicil- resistant crops Expect sharp sales growth given Rapidicil’s suitability toward both PPBD and OTT North America Middle and South America Others (1) Winning businesses rooted in organic synthesis technologyBasic direction 01
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13 Winning in Agro & Life Solutions02 Biorationals and botanicals strategy Our strengths Priority initiatives aimed at accelerating growth Product development capabilities： PLCM based on customer needs (new applications, products, and mixtures) Manufacturing regime and quality control：One of the world’s leading fermentation plants for agricultural materials and a robust natural pyrethrin supply regime Brand power：Trust built upon experience of 60 years in biorationals and 120 years in botanicals Market share：Top-class market share in the premium segment 150 bn.yen 70 bn.yen40 bn.yen 2021 2024 2027 2030 Expand business scale by FY 2030: Grow beyond a $100M business in South America Business Environment Advance change from modern to regenerative agriculture Increasingly stringent regulatory requirements and growing demand for sustainable products Expand Brazil business Stimulate demand with dedicated biorationals organization Strengthen product deployment for soybeans and sugar Expand sales inside and outside the US via integrated operations with FBSciences Expand biostimulants business Place synthetic biology team at US biorationals research institute Establish group dedicated to biorationals research in Japan, too 40+ product development projects under way Strengthen R&D capabilities Further enhance botanicals portfolio and accelerate sales expansion In the US, acquire registrations in non-food applications of new botanical insecticides and promote development of synergists Expand sales of botanicals in crop protection, pest control and other areas 2X (1) Winning businesses rooted in organic synthesis technologyBasic direction 01
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14 Winning in ICT & Mobility Solutions02 Change some of the ArFimmersion resist development steps to an alkaline development method to reduce costs and environmental impact Alkaline development Process cost down and Reduction of environmental impact Better for forming specific patterns Alkaline development with negative resist (ArF immersion) Negative type Osaka: Introduce cutting-edge semiconductor photoresist to a lithography toolFY 2026 Advance global top-class ArF immersion resist technology and actively propose to customers Design and mass-produce resist materials at molecular size to support ultimate miniaturization of semiconductors Strengths Metal-free Molecule: <1nm Contrast Affinity with existing processes Achieves miniaturization Concentrate R&D resources and accelerate development of next- generation platform , and currently conduct proof-of-concept testing at leading companies Organic molecule resist (High NA EUV) proprietary cutting-edge resists based on our new platform development and expand share Target 20% share by volume in cutting-edge resist ArF immersion High NA EUV ‘21 ‘24 ‘25 ‘26 ‘27 … EUV Supporting resist High NA Semiconductor materials (Photoresist) Strengths (1) Winning businesses rooted in organic synthesis technologyBasic direction 01
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15 Winning in ICT & Mobility Solutions02 Increase staff in production technology and development Install clean room for cutting-edge materials and decide to expand process validation line Sumika Semiconductor Materials Texas Inc. Sales plan by geography ■ Korea China ■ US ■ Japan Sales plan About 2X Add capacity at existing plant Secure land for new plant Support cutting- edge quality Dongwoo Fine-Chem Iksan Plant Dongwoo Fine-Chem Iksan Research Laboratory Changzhou Xi’an Add manufacturing line for high-purity sulfuric acid IndiaNEW Build base for business South Korea US NEW Study building additional production capacity in the United States Texas site Began mass production in 2025 China Japan FY 2024 FY 2030 FY 2030FY 2024 FY 2027 (1) Winning businesses rooted in organic synthesis technologyBasic direction 01 Establish world-class business scale with supply capabilities built from upfront investments Strengthen our world-class process and analysis technologies supporting cutting-edge semiconductor technology Semiconductor materials (High-purity chemicals)
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16 Winning in ICT & Mobility Solutions02 Foldable panel components (CoE) Develop color materials that contribute to higher brightness and color purity Design color materials at the molecular level based on organic synthesis technology developed in other businesses Expand share through further improvement of product characteristics and a broader product portfolio Polarizing film fo OLED Contribute to high-quality black expression leveraging our proprietary liquid crystal compound synthesis technology Fully integrated in-house design from compound to film Leverage our proprietary technologies to keep No.1 position Automotive polarizers Design high-durability polarizers that meet strict in-vehicle environmental standards Support wider view angles made necessary by larger displays Expand share in the high-end market by further enhancing durability Smartphone market needs Thin profile, unique shapes Tablet and notebook markets Ramping up shift to OLED Mass production started in some models Thinner, richer colors, and lower power consumption ※ By 2030, displays to double in size compared to today Moving toward larger sizes Growing demand for materials that support higher functionality ※ Business Environment (1) Winning businesses rooted in organic synthesis technologyBasic direction 01 Quickly realize optimal molecular design based on our strengths in organic synthesis technology Display materials Business Environment Business Environment
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17 Winning in Advanced Medical Solutions02 Deploy a winning CDMO strategy leveraging our strengths Leverage our strength in comprehensive support capabilities to win more contracts Leverage our advanced organic synthesis technologies to strengthen support of new technologies and difficult projects Advanced small molecule APIs CDMO Oligonucleotide CDMO Refine our synthesis technologies in high- purity long-chain nucleotides and expand the business Regenerative medicine/cell CDMO Quickly expand business performance leveraging our strength as the front runner in the commercialization of iPS cells See more on page 22 Gene therapy Biopharmaceuticals (antibody drugs, etc.) Small molecule Regenerative medicine/cell therapy Drug Discovery modality Differentiation leveraging organic synthesis technology and comprehensive support capabilities Collaborate with customers and support modality deployment Where we will NOT play Require large-scale capital investments Fermentation and enzymes (≠ organic synthesis)(such as PROTAC*1 and ADC*2) Shifting to more advanced *1 Proteolysis targeting chimera *2 Antibody-Drug Conjugate Where we can win Organic synthesis technology and comprehensive support capabilities (1) Winning businesses rooted in organic synthesis technologyBasic direction 01
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18 Winning in Advanced Medical Solutions02 Strengths What is our “advanced” small molecule APIs CDMO? Expand advanced small molecule APIs CDMO business leveraging our comprehensive support capabilities Small molecule APIs market size Recent small molecule APIs have relatively large molecular weights and complex structures Based on our advanced organic synthesis technologies, we have been winning contracts to manufacture difficult-to-make “advanced” small molecule APIs We support both PROTAC, which has a novel mechanism of action, and ADC, which combines antibodies with small molecule APIs Small molecule API plant (Oita) launched in October 2024 Footprint of 3 sites (BCP and flexibility) Advanced organic synthesis technologies Comprehensive support capabilities Small molecule APIs to maintain strength with a sizable market Future demand to be robust for CDMOs that possess advanced manufacturing technologies 0 200 400 600 800 （$B） Small Molecule APIs 51% Other Modality Small molecule APIs as a % of all modalities(2024) 20352024 (Source: Cabinet Secretariat)(Source: Cabinet Secretariat) Quality assurance regime R&D infrastructureSupply chain Our actions Strengthen orders from Japanese pharma that require our comprehensive support capabilities Further enhance our manufacturing technologies rooted in organic synthesis and strengthen our support of “advanced” small molecule projects (1) Winning businesses rooted in organic synthesis technologyBasic direction 01
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19 Market size of in vivo gene therapies Winning in Advanced Medical Solutions02 Oligonucleotide Strengths Nucleic acids necessary for cutting-edge genome editing therapies includes gRNA with a length of more than 100mer--far longer than general nucleic acid drugs gRNA Guides the enzyme capable of cutting and editing genes to the correct target gene to be cut and edited What is gRNA? Manufacturing technology for high-purity medical oligonucleotides Multiple production sites Sales and development support sites The global gene therapy market is expected to grow substantially US bioventures are increasingly entering the space, growing demand for high-purity gRNA and expanding business opportunities 0 10 20 30 20282021 ($B) Our actions Created development support site (SC-AMSA) in the US to strengthen customer support Accelerate standardization of high purity, high quality and analysis technologies for gRNA that we are uniquely equipped to deliver Target gene Guide (homing device) Cas9 enzyme (Source: Ministry of Economy, Trade and Industry) Leverage new site to accelerate business deployment of medical oligonucleotide CDMO (1) Winning businesses rooted in organic synthesis technologyBasic direction 01
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20 Winning in Essential & Green Materials02 Expand licensing and catalysts business by capturing demand from growth in emerging countries while we contribute to global Green Transformation (GX) with next-generation technologies Leverage existing technological assets to expand our licensing and catalysts business Rapidly ramp up next-generation technologies Maximize existing technological assets Our proprietary high-performance catalysts support many of our process technologies, such as hydrochloric acid oxidation process and PO-only process. We will continue to add to our lineup. The presence of our technologies in global markets has grown through collaborations with KBR and Lummus, which began in 2024. KBR (PO-only process) Before collaboration Number Of deals After collaboration 4X Lummus (High-pressure production process for PE) 6X 2030 20352025 Develop next-generation technologies Advance the development of many GX technologies, such as ETEP, which makes propylene directly from ethanol Accelerate the deployment into society of our PMMA chemical recycling technology through our licensing collaboration with Lummus We aim to rapidly ramp up our contributions through optimal partnerships tailored to specific objectives. ETEP pilot plant exterior (1) Winning businesses rooted in organic synthesis technologyBasic direction 01 Before collaboration After collaboration
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Section Progress on the Corporate Business Plan02 FY 2025-2027 Upgrade business portfolio with new growth strategy (1) Winning businesses rooted in organic synthesis technology (2) Cultivating new growth businesses Basic direction 01
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22 02 Small molecule drugs (drug discovery) Regenerative medicine/cell therapy (R&D/CDMO) S-RACMO 66.6% stake 33.4% stake （R&D） （CDMO） How are we uniquely equipped to win? One of the origins of the business dates back to 2003 and our continued research in ES cells as part of our chemicals safety evaluation Since the 1990s, we have emphasized neural regeneration research and led the world in regenerative medicine/cell therapy using iPS cells We fused our commercialization and analysis technologies and quality management know-how with technologies and learnings developed over many years in regenerative medicine/cell therapy R&D: High barrier to entry from generics. Moderate patent cliff. CDMO: Limited capital investment relative to antibody drugs Why can we win here? See more on page 30 As a group, focus on businesses where we can win Integrate efforts across the group to expand the regenerative medicine/cell therapy business Regenerative medicine/cell therapy (R&D/CDMO) (2) Cultivating new growth businessesBasic direction 01
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23 Regenerative medicine/cell therapy (R&D)02 Regenerative medicine/cell therapy marketWhat is an iPS cell? Nearly limitless reproduction under culturing conditions Can be split into nearly all cells ⇒Means to resolve donor shortages and ethical concerns around transplant treatments Our Parkinson’s disease therapies 0.0 2.0 4.0 6.0 Global market forecast for regenerative medicine/cell therapies (organ and cell transplants) 2025 2030 2035 2040 Parkinson’s disease therapy using iPS cells Body cells such as skin or blood Diverse cells after splitting reprogramming Split Transplant iPS cells iPS cells Split Transplant Dopaminergic neural progenitor cells Filed NDA with hope to gain approval before the end of FY 2025 in Japan to launch the world’s first therapy derived from iPS cells In the US, performed transplant in first patient in investigator-initiated study Poised to grow into a blockbuster (100 bn. yen in sales) in the 2030s Aiming for greater groupwide contribution to treatment using regenerative medicine/cell therapy (Source: Japan Agency for Medical Research and Development) (¥ Trillion) Basic direction 01 (2) Cultivating new growth businesses
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24 Regenerative medicine/cell therapy (CDMO)02 Business Performance Trends S -RACMO In an environment where it is challenging to acquire stable revenue opportunities: Strengths Track record commercially manufacturing cells Know-how as the front runner in commercializing iPS cells Horizontally deploy our established CDMO business base Deploy our proprietary high- purity gRNA technology across the regenerative medicine /cell therapies business Regenerative medicine/cell therapy CDMO Advanced small molecule APIs CDMO Oligonucle otide CDMO Regenerative medicine/cell therapy 1. SMaRT (completed March 2018) 2. FORCE(completed December 2021) 3. CRAFT (completed July 2025) ・Already received many inquiries ・Plan to launch soon ・World’s first iPS product ・Running at full capacity on robust demand Build 4th plant and solidify business expansion Capital investment is limited relative to bio-CDMO NEW NEW Leverage METI subsidies to further shrink investment amount 4 consecutive years of profitability CDMO synergies Expand CDMO business with a focus on regenerative medicine/cell therapies Basic direction 01 Several hundred bn. Investment:15bn. yen (2) Cultivating new growth businesses
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Section Progress on the Corporate Business Plan02 FY 2025-2027 Basic direction 02 Build greater resilience by executing continued structural reforms
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26 Continuing to consider fundamental measures to improve earnings, including upgrades to refinery assets Our ownership stake will be 15% from Oct, 2025 02 Petro Rabigh 26 Financial improvement plan • Wrote-off loans totaling $1,500m from both SCC and Aramco *1 *2 The first issuance of a different class of ordinary shares by a public company in Saudi Arabia FY2024 FY2025 • SCC completes sale of approximately 22.5% of PRC to Aramco for $702m Mitigating PRC interest burden Further mitigating PRC interest burden Plan to strengthen earnings power • Strengthen earnings power (Short-term)FY2025 Gradual contribution to earnings starting from 2025 Capacity increase through de-bottlenecking of ethane cracker and HOFCC (ethylene: 105%, propylene: 109%) Strengthen feedstock competitiveness by changing crude oil types, and increase margins in refined products (producing low-sulfur diesel, upgrading light naphtha to gasoline), etc. • Strengthen earnings power (Mid- to long-term) • Including the proceeds from the sale, a total of $1,404m is expected to be contributed to PRC * 2 FY2026+ *1Aramco wrote-off the loans of $500m in FY2024 and $250m in FY2025. Basic direction 02 Build greater resilience by implementing continued structural reforms
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27 Japan and Singapore P&P reorganization02 Illustration of business integration (beginning April 2026) Sumitomo Chemical Mitsui Chemicals Idemitsu Kosan Prime Polymer (PRM) 20% stake 52% stake ・Domestic PP (including our domestic compound business) ・LLDPE Integrated businesses Toward a more resilient and essential business Integration overview Integrate our domestic PP* and LLDPE businesses into PRM *Including our domestic compound business 28% stake Benefits of integration Reduces PRM's costs by more than 8 bn. yen per year Accelerates development of high-performance environmentally friendly products Sumitomo Chemical's aim Establish a competitive edge through integration with domestic leader PRM Also seek upstream synergies through ties with both partners Basic direction 02 Strengthen domestic polyolefin business competitiveness with integration into domestic leader Prime Polymer Build greater resilience by executing continued structural reforms
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28 Action plan to achieve that direction Action plan execution status Direction Direction for P&P businesses02 Optimized operations at Keiyo Ethylene → Get to 100% utilization rate for the time being Structural Reforms in Singapore MMA Upstream Downstream Sold CPSC. Expand sales of high value-added grades at TPC. Concentrate on high value-added products and phase down commodity P&P businesses Strengthen ties and reorganization with P&P peers and accelerate shift to solutions businesses that reduce environmental impacts Japan Overseas Business integration with Prime Polymer → Strengthen long-term competitiveness through integration with leading player Develop technologies that reduce environmental impact (Green Investment Fund) Plan to improve financial standing at PetroRabigh → Shrank holding about 60% through sale of shares Shuttered two lines and concentrated on high- earning fields. Achieved profitability. Continue to study optimal structure at PCS Basic direction 02 Build greater resilience by executing continued structural reforms
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29 Restructure Chiba Works to strengthen competitiveness Structural Reforms through corporate ties and production optimization Pivot to solutions businesses that reduce environmental impact 02 Closed ethylene plant Exited polystyrene business Exited SM Cut PO capacity Phase 1 Sold PVC business Phase 2 Phase 3 Converted to feedstock for GHG reduction. 2024年～2015年 2030年～2022年 2027年 Concentrate on high value-added products and phase down commodity P&P businesses Strengthen ties and reorganization with P&P peers and accelerate shift to solutions businesses that reduce environmental impacts Direction Direction for P&P businesses Optimized operations at Keiyo Ethylene Integrated business into Prime Polymer Exited caprolactam Plan to improve financial standing at Petro Rabigh Restructured Singapore business Accelerated development of technologies that reduce environmental impact Deploy into society technologies that reduce environmental impact Established GX Solutions Business Sold ABS business Exited synthetic rubber Basic direction 02 Build greater resilience by executing continued structural reforms
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30 02 Small molecule drugs (drug discovery) Regenerative medicine/cell therapy (R&D/CDMO) Focusing on expanding sales of 3 key products and the early launch of 2 oncology products Moving forward, need to protect against new LOE, etc. Limited synergies in small molecule drugs (drug discovery) Over the near-term, stabilize earnings while pursuing all possible options from a medium- to long-term perspective, such as searching for the best partner Indicate direction during the term of this Corporate Business Plan Our direction for small molecule drugs(drug discovery) Small molecule drugs (drug discovery) -150 -50 50 2023 2024 2025 Sumitomo Pharma Core Operating Income ※ Excludes R&D expenses relaetd to regenerative medicine/cell therapy business (Billions of yen) (Forecast) Business performance turning upward since restructuring 0 0 100 200 2023 2024 2025 2027 Sales for 3 key products (Billions of yen) (Forecast)(Forecast) Launch targets for 2 oncology products enzomenib nuvisertib FY 2027 FY 2028 Basic direction 02 Build greater resilience by executing continued structural reforms
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Section Progress on the Corporate Business Plan02 FY 2025-2027 Basic direction 03 Improve financial and capital efficiency
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32 02 Strengthen investment management processes to enhance probability of investment success Enhance ROIC by maximizing investment efficiency Monitoring for flexible strategy operations Investment and business decision-making rooted in thorough risk management ObjectiveData-driven Agile Secure validity by supplementing internal knowledge with objective viewpoints Quantify risk based on probability distributions across a diverse range of scenarios Place import on third-party expert opinions about market trends and competitive advantages Quantitatively visualize risk, seize opportunities, and make decisions with agility Adopt continuing milestone KPIs that capture early warning signs Advance strategies with flexibility and speed and pre-empt environmental changes Basic direction 03 Improve financial and capital efficiency Thoroughly re-implement ROIC-oriented management
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33 03 Dividend payout ratio during the period under the new plan is expected to be over 30%. Aim for 24 yen/share or more per year early in the future. Basic direction 03 Shareholder returns Improve financial and capital efficiency 7 10 11 11 6 10 12 6 3 6 7 12 11 6 9 14 6 3 6 6 76.5 133.8 118.0 30.9 46.0 162.1 7.0 -311.8 38.6 40.0 -400 -300 -200 -100 0 100 200 0 5 10 15 20 25 30 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year-end dividend(left axis) Interim dividend(left axis) Net Income Attributable to Owners of Parent(right axis) （yen） （Billions of yen) （FY） 29.9 89.930.526.9 24.253.3 421.2 （Forecast） ― Dividend payout ratio (%)38.2 1.24 0.570.841.09 0.750.92 0.62 0.57 PBR FY2025-2027 dividend payout ratio over 30％ 0.66 49.1
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Section Epilogue03
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35 Enhancing Enterprise Value 35 PBR ROE PER Improve ROIC Optimize financial leverage Reduce capital costs Raise expected growth rates Enhance ESG ratings Strengthen commitment to business performance Constructive dialogue with stakeholders Disciplined focus on businesses where we can win PetroRabigh, Sumitomo Pharma, Japan/Singapore P&P reorganization Cash generation, financial soundness Upgrade business portfolio Execute continued structural reforms Optimize D/E ratio 03 Continue to improve capital efficiency and enhance enterprise value over the medium to long term
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36 Overview • 3 blockbuster chemical crop protection products • World-class semiconductor and display materials business • Strong CDMO business portfolio in advanced small molecule APIs, gene therapy, and regenerative medicine/cell therapy • World-leading regenerative medicine/cell therapy • Technologies that reduce environmental impact ready to be deployed into society 03 • The P&P restructuring has made significant progress. • Powerful recovery in small molecule drugs (drug discovery)Restructuring Upgrade business portfolio
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Cautionary Statement Statements made in this document with respect to Sumitomo Chemical’s current plans, estimates, strategies and beliefs that are not historical facts are forward-looking statements about the future performance of Sumitomo Chemical. These statements are based on management’s assumptions and beliefs in light of the information currently available to it and involve risks and uncertainties. The important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, general economic conditions in Sumitomo Chemical’s markets; demand for, and competitive pricing pressure on, Sumitomo Chemical’s products in the marketplace; Sumitomo Chemical’s ability to continue to win acceptance for its products in these highly competitive markets; and movements of currency exchange rates.