Slides
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August 4, 2026 Financial Results for FY2026 First Quarter (April 1, 2026 – June 30, 2026)
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(Cautionary Statement) Statements made in this material 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.
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2Contents （Reference）1. Consolidated Financial Results for FY2026 First Quarter Sales Revenue by Reporting Segment (Quarterly)･････････････････ 21 Core Operating Income by Reporting Segment (Quarterly)･････････････････ 22 Sales Revenue Analysis by Reporting Segment･･････ 23 Major Group Companies･･････････････････････････ 28 Crop Protection Product Sales by Region････････････ 29 Summary for FY2026 First Quarter ･･････････････ 4 Consolidated Financial Results Summary ････････ 5 Sales Revenue by Reporting Segment･･･････････ 6 Core Operating Income by Reporting Segment････ 7 Core Operating Income Analysis by Reporting Segment ･･････････････････････ 8 Consolidated Statement of Financial Position ････ 13 Consolidated Statement of Cash Flows･･････････ 14 2. Outlook for FY2026 First Half Outlook for the Business Environment (FY2026 First Half) ････････････････････････ 16 Summary of the Financial Forecast for FY2026 ･･･････････････････････････････ 17 Performance Forecast for FY2026 First Half ･･･････････････････････ 18 Sales Revenue and Core Operating Income by Reporting Segment･･････････････････････ 19
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1. Consolidated Financial Results for FY2026 First Quarter
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4Summary for FY2026 First Quarter Core Operating Income Net Income Attributable to Owners of the Parent (Billions of yen) Q1 FY2025 Q1 FY2026 27.7 62.3 (Billions of yen) Q1 FY2025 Q1 FY2026 (4.5) 40.8 ● Both core operating income and net income attributable to owners of the parent improved and were significantly higher than the prior year ● The second-best first-quarter performance on record ● Core operating income was driven by Essential & Green Materials, which showed significant improvement from the prior year (better profit margins at Petro Rabigh and a temporary gain on the difference between the inventory valuation of materials and their increased market price) ● In Agro & Life Solutions, shipments of crop protection products were strong, and profit margins for feed additives improved ● In ICT & Mobility Solutions, while shipments of display-related materials declined, shipments of semiconductor processing materials increased ● Due to our strong business performance and also Sumitomo Pharma’s capital increase (JPY 97.8 billion), the D/E ratio improved significantly to 0.80x (D/E ratio as of March 2026: 0.93)
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5Consolidated Financial Results Summary (Billions of yen) Q1 FY2026 Q1 FY2025 Variance Variance Ratio Sales revenue 578.2 526.1 52.1 9.9% Core operating income 62.3 27.7 34.7 125.2% of which equity-method investments 12.2 (9.8) 22.0 - Total non-recurring items (breakdown below) (1.3) (2.2) 0.9 - Restructuring costs (1.1) (2.7) 1.7 - Others (0.2) 0.5 (0.7) - Operating income 61.0 25.5 35.6 139.8% Finance income/expenses (breakdown below) (0.7) (19.6) 18.9 - Gain (loss) on foreign currency transactions including gain (loss) on derivatives 1.6 (16.4) 18.0 - Others (2.3) (3.3) 0.9 - Income before taxes 60.3 5.8 54.5 936.8% Income tax expenses (9.0) (1.9) (7.0) - Net income 51.4 3.9 47.5 - Net (income) attributable to non-controlling interests (10.6) (8.4) (2.2) - Net income (loss) attributable to owners of the parent 40.8 (4.5) 45.3 - ROE 3.9% (0.5)% Exchange rate (yen/$) 159.57 144.59 Naphtha price (yen/kl) 118,500 66,300 Overseas sales revenue ratio 67.7% 68.5%
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6 40.5 (19.2) 30.7 Q1 FY2025 Price Volume Foreign exchange Q1 FY2026 526.1 578.2 Sales Revenue by Reporting Segment (Billions of yen) Q1 FY2026 Q1 FY2025 Variance Variance Ratio Sales price variance Shipping volume variance Foreign currency conversion variance Agro & Life Solutions 109.0 96.9 12.1 12.5% 7.0 (1.5) 6.6 ICT & Mobility Solutions 148.6 137.4 11.2 8.1% 0.5 2.1 8.6 Advanced Medical Solutions 10.4 9.1 1.4 15.0% 0.0 1.3 0.0 Essential & Green Materials 170.2 165.4 4.8 2.9% 33.5 (34.7) 6.0 Sumitomo Pharma * 129.0 107.4 21.6 20.2% (0.5) 12.6 9.5 Others 11.0 10.0 1.0 10.2% 0.0 1.0 0.0 Total 578.2 526.1 52.1 9.9% 40.5 (19.2) 30.7 Variance analysis *The regenerative medicine and cellular therapy CDMO business does not fall under this segment. Therefore, sales revenue differs between this segment and Sumitomo Pharma, Co., Ltd.
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7 15.0 (4.0) Q1 FY2025 Price Cost Volume and other Q1 FY2026 62.3 27.7 23.7 Equity-method investments 22.0 included Core Operating Income by Reporting Segment Variance analysis (Billions of yen) Q1 FY2026 Q1 FY2025 Variance Price variance Cost variance Shipping volume variance and other Agro & Life Solutions 9.6 2.2 7.4 6.5 0.0 0.9 ICT & Mobility Solutions 13.0 18.4 (5.3) (3.5) (1.5) (0.3) Advanced Medical Solutions (1.9) (1.0) (0.9) (0.5) 0.0 (0.4) Essential & Green Materials 27.2 (5.5) 32.7 14.0 1.5 17.2 Sumitomo Pharma * 18.8 21.0 (2.2) (0.5) (4.0) 2.3 Others & Adjustments (4.5) (7.4) 3.0 (1.0) 0.0 4.0 Total 62.3 27.7 34.7 15.0 (4.0) 23.7 *The regenerative medicine and cellular therapy CDMO business does not fall under this segment. Therefore, core operating income differs between this segment and Sumitomo Pharma, Co., Ltd.
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8 6.5 0.0 Q1 FY2025 Price Cost Volume and other Q1 FY2026 2.2 9.6 0.9 Core Operating Income Analysis by Reporting Segment Agro & Life Solutions Total ¥ 9.6 billion ¥ 7.4 billion from Q1 FY2025 Steady shipments of crop protection products (Volume and other(+)) Improvement in profit margins (Price(+)) Crop Protection Feed Additives Feed Additives(+) Crop Protection(+)
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9 (3.5) (1.5) Q1 FY2025 Price Cost Volume and other Q1 FY2026 18.4 13.0 (0.3) Core Operating Income Analysis by Reporting Segment ICT & Mobility Solutions Total ¥ 13.0 billion ¥ (5.3) billion from Q1 FY2025 Decline in the selling prices of polarizing films (Price(-)) Absence of prior year gain on the sale of the large LCD polarizing film business (Volume and other(-)) Decline in shipments due to a shortage of semiconductors (Volume and other(-)) Increase in shipments due to growing demand for semiconductors (Volume and other(+)) Increase in shipments of super engineering plastics to China (Volume and other(+)) Displays Mobility Semiconductors Displays(-) Semiconductors(+) Mobility(+) Displays(-)
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10 (0.4) Q1 FY2025 Price Cost Volume and other Q1 FY2026 (1.0) (1.9)0.0 (0.5) Core Operating Income Analysis by Reporting Segment Advanced Medical Solutions Total ¥ (1.9) billion ¥ (0.9) billion from Q1 FY2025 Decline in profit margins due to the Middle East geopolitical tensions (Price(-)) Difference in sales mix of active pharmaceutical ingredients and intermediates (Volume and other(-))
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11 14.0 1.5 17.2 Q1 FY2025 Price Cost Volume and other Q1 FY2026 (5.5) 27.2 Core Operating Income Analysis by Reporting Segment Essential & Green Materials Total ¥ 27.2 billion ¥ 32.7 billion from Q1 FY2025 Improvement in profit margins (Price(+)) Improvement in profitability from investments accounted for using the equity method due to improved refining margins (Volume and other(+)) Japan Saudi Arabia Singapore Japan(+) Singapore(+) Saudi Arabia(+) Improvement in profit margins (Price(+))
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12Core Operating Income Analysis by Reporting Segment Sumitomo Pharma Total ¥ 18.8 billion ¥ (2.2) billion from Q1 FY2025 Increase in selling, general, and administrative expenses in North America (Cost(-)) Increase in R&D expenses (Cost(-)) Partial sale of the Asian business in the prior year (Cost(+),Volume and other(-)) Increase in sales of ORGOVYX® (therapeutic agent for advanced prostate cancer) and GEMTESA® (treatment for overactive bladder) (Volume and other(+)) Foreign exchange impact (Volume and other(+)) (4.0) Q1 FY2025 Price Cost Volume and other Q1 FY2026 21.0 18.8 2.3 (0.5)
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13Consolidated Statement of Financial Position (Billions of yen) 30-Jun-26 31-Mar-26 Variance 30-Jun-26 31-Mar-26 Variance Current assets 1,659.1 1,507.7 151.3 Liabilities 2,201.1 2,168.4 32.7 Cash and cash equivalents 223.2 208.6 14.6 Trade and other payables 550.1 464.4 85.7 Trade and other receivables 644.5 608.7 35.9 Interest-bearing liabilities 1,132.2 1,151.5 (19.3) Inventories 643.6 595.5 48.1 Others 518.8 552.5 (33.7) Others 147.7 95.0 52.7 Equity 1,412.4 1,236.7 175.8 Non-current assets 1,954.4 1,897.3 57.1 Shareholders' equity 807.9 744.9 63.1 Property, plant and equipment 777.6 770.7 6.9 Other components of equity 294.9 263.8 31.2 Goodwill and intangible assets 502.5 501.0 1.5 Non-controlling interests 309.6 228.0 81.6 Others 674.4 625.6 48.8 3,613.5 3,405.0 208.5 3,613.5 3,405.0 208.5 30.5% 29.6% 0.9% 0.80 0.93 (0.13) Total Total Ratio of equity attributable to owners of the parent to total D/E ratio (times)
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14Consolidated Statement of Cash Flows (Billions of yen) Q1 FY2026 Q1 FY2025 Variance Cash flows from operating activities 5.0 24.0 (19.0) Cash flows from investing activities (49.2) (45.9) (3.3) Free cash flows (44.3) (21.9) (22.3) Cash flows from financing activities 55.6 (49.2) 104.8 Others 3.3 (0.9) 4.2 Increase (decrease) in cash and cash equivalents 14.6 (72.1) 86.7 Cash and cash equivalents at the end of the period 223.2 142.6 80.6
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2. Outlook for FY2026 First Half
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16Outlook for the Business Environment (FY2026 First Half) Although investments in the field of technology are firmly supporting the global economy, future prospect remain uncertain due to the geopolitical risks, including the deterioration of the situation in the Middle East. Petrochemicals/ Raw Materials Economic Conditions Displays Semiconductors Crop Protection Feed additives Enough raw materials have been secured to meet current production plans, but the impact of high raw material prices will continue for the time being. The mobile device market will remain sluggish due to the increasingly challenging procurement conditions for memory chips and other components. Although profit margins saw improvement in the first quarter, the outlook remains uncertain with raw material prices holding at high levels. Shipments are currently solid, but inventory congestion in distribution chains remains varied by region. Demand for silicon semiconductors will remain solid, mainly driven by AI-related areas. Business Environment
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17Summary of the Financial Forecast for FY2026 Strong Outlook for the 1st Half FY2026 ● Excluding gains on the sale of businesses, core operating income is projected to see a two-fold increase from the prior year ● The forecast for net income attributable to owners of the parent announced in May is projected to be met in the first half of FY2026 ● Essential & Green Materials is projected to significantly improve (improved profit margins at Petro Rabigh and a temporary gain on the difference between the inventory valuation of these materials and their increased market price) ● Agro & Life Solutions is projected to see strong shipments of crop protection products and improved profit margins for feed additives ● In ICT & Mobility Solutions, while shipments of display-related materials are projected to decline due to a shortage of semiconductors, shipments of semiconductor processing materials are projected to increase ● We plan to provide an explanation of our full-year forecast for FY2026 at the time we announce our financial results for the first half (Billions of yen) FY2025 1st Half FY2026 1st Half Forecast (announced in Aug.) FY2026 Forecast (announced in May.) 108.7 125.0 215.0 ※Excluding gains on sale of businesses 50.0 120.0 210.0approx.approx. approx. (Billions of yen) FY2025 1st Half FY2026 1st Half Forecast (announced in Aug.) FY2026 Forecast (announced in May.) 39.7 70.0 70.0 Core Operating Income Net Income Attributable to Owners of the Parent
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18Performance Forecast for FY2026 First Half (Billions of yen) FY2026 1st Half Forecast (announced in Aug.) FY2025 1st Half Variance FY2026 Forecast (announced in May.) Sales revenue 1,170.0 1,095.4 74.6 2,360.0 Core operating income 125.0 108.7 16.3 215.0 Non-recurring items (3.0) (5.0) 2.0 (40.0) Operating income 122.0 103.7 18.3 177.0 Net income attributable to owners of the parent 70.0 39.7 30.3 70.0 157.00 146.02 155.00 Naphtha price (yen/kl) 104,000 64,800 92,000 Interim dividend 8.00 6.00 8.00 Year-end dividend 8.00 7.50 8.00 Annual dividend 16.00 13.50 16.00 Exchange rate (yen/$) Cash dividends (yen)
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19Sales Revenue and Core Operating Income by Reporting Segment (Billions of yen) FY2026 1st Half Forecast (announced in Aug.) FY2025 1st Half Variance FY2026 Forecast (announced in May.) Agro & Life Solutions Sales Revenue 260.0 213.0 47.0 560.0 Core Operating Income 29.0 11.2 17.8 65.0 ICT & Mobility Solutions Sales Revenue 310.0 283.5 26.5 590.0 Core Operating Income 28.0 33.1 (5.1) 55.0 Advanced Medical Solutions Sales Revenue 28.0 21.1 6.9 60.0 Core Operating Income 0.0 (1.4) 1.4 3.0 Essential & Green Materials Sales Revenue 300.0 329.1 (29.1) 560.0 Core Operating Income 42.0 (18.6) 60.6 20.0 Sumitomo Pharma Sales Revenue 250.0 226.1 23.9 540.0 Core Operating Income 32.0 97.3 (65.3) 94.0 Others Sales Revenue 22.0 22.6 (0.6) 50.0 Core Operating Income (6.0) (13.0) 7.0 (22.0) Total Sales Revenue 1,170.0 1,095.4 74.6 2,360.0 Core Operating Income 125.0 108.7 16.3 215.0 "Excluding gains on sale of businesses" 120.0 50.0 210.0approx.approx. approx.
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(Reference)
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21Sales Revenue by Reporting Segment (Quarterly) (Billions of yen) FY2026 Q1 Q2 Q3 Q4 Q1 1st Half Forecast (announced in Aug.) Full-year Forecast (announced in May.) Agro & Life Solutions 96.9 116.1 133.9 172.4 109.0 260.0 560.0 ICT & Mobility Solutions 137.4 146.1 148.3 142.4 148.6 310.0 590.0 Advanced Medical Solutions 9.1 12.1 14.5 23.0 10.4 28.0 60.0 Essential & Green Materials 165.4 163.8 181.8 167.8 170.2 300.0 560.0 Sumitomo Pharma 107.4 118.7 120.3 105.5 129.0 250.0 540.0 Others 10.0 12.6 12.1 11.1 11.0 22.0 50.0 Total 526.1 569.3 610.9 622.2 578.2 1,170.0 2,360.0 FY2025
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22Core Operating Income by Reporting Segment (Quarterly) (Billions of yen) FY2025 FY2026 Q1 Q2 Q3 Q4 Q1 1st Half Forecast (announced in Aug.) Full-year Forecast (announced in May.) Agro & Life Solutions 2.2 9.0 16.9 28.2 9.6 29.0 65.0 ICT & Mobility Solutions 18.4 14.7 13.4 6.5 13.0 28.0 55.0 Advanced Medical Solutions (1.0) (0.4) 1.7 2.5 (1.9) 0.0 3.0 Essential & Green Materials (5.5) (13.1) 38.4 (5.3) 27.2 42.0 20.0 Sumitomo Pharma 21.0 76.3 13.9 (2.8) 18.8 32.0 94.0 Others & Adjustments (7.4) (5.5) (6.2) (7.6) (4.5) (6.0) (22.0) Total 27.7 81.0 78.1 21.5 62.3 125.0 215.0
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23 7.0 (1.5) 6.6 Q1 FY2025 Price Volume FX Q1 FY2026 96.9 109.0 Sales Revenue Analysis by Reporting Segment Agro & Life Solutions Total ¥ 109.0 billion ¥ 12.1 billion from Q1 FY2025 Weaker yen’s effect on the sales of subsidiaries outside Japan when converted into yen(FX(+)) Steady shipments of crop protection products (Volume(+)) Absence of prior year sales of Sumitomo Chemical Garden Products Inc (Volume(-)) Higher market prices (Price(+)) Crop Protection Feed Additives Higher market prices for Feed Additives(+) Sales of Subsidiary in the prior year(-) Steady shipments of crop protection products(+)
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24 2.1 8.6 0.5 Q1 FY2025 Price Volume FX Q1 FY2026 137.4 148.6 Sales Revenue Analysis by Reporting Segment ICT & Mobility Solutions Total ¥ 148.6 billion ¥ 11.2 billion from Q1 FY2025 Decline in the selling prices of polarizing films (Price(-)) Decline in shipments due to a shortage of semiconductors (Volume(-)) Absence of prior year sales due to the divestiture of the large LCD polarizing film business(Volume(-)) Increase in shipments due to growing demand for semiconductors (Volume(+)) Price optimization (Price(+)) Price optimization (Price(+)) Semiconductors(+) Mobility(+) Displays(-) Semiconductors(+) Displays(-) Displays Mobility Semiconductors
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25 0.0 1.3 0.0 Q1 FY2025 Price Volume FX Q1 FY2026 9.1 10.4 Sales Revenue Analysis by Reporting Segment Advanced Medical Solutions Total ¥ 10.4 billion ¥ 1.4 billion from Q1 FY2025 Difference in shipments timing for active pharmaceutical ingredients and intermediates (Volume(+))
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26 (34.7) 6.0 Q1 FY2025 Price Volume FX Q1 FY2026 165.4 170.2 33.5 Sales Revenue Analysis by Reporting Segment Essential & Green Materials Total ¥ 170.2 billion ¥ 4.8 billion from Q1 FY2025 Improvement in product market conditions (Price(+)) Decline in capacity utilization rate due to the Middle East geopolitical tensions (Volume(-)) Decrease in shipments due to the transfer of sales rights for Petro Rabigh products (Volume(-)) Japan(+) Singapore(+) Japan(-) Singapore(-) Improvement in product market conditions (Price(+)) Partial sale of the NIPPON A&L stake in the prior year (Volume(-)) Japan Singapore
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27 (0.5) Q1 FY2025 Price Volume FX Q1 FY2026 107.4 129.0 12.6 9.5 Sales Revenue Analysis by Reporting Segment Sumitomo Pharma Total ¥ 129.0 billion ¥ 21.6 billion from Q1 FY2025 Increase in sales of ORGOVYX® (therapeutic agent for advanced prostate cancer) and GEMTESA® (treatment for overactive bladder) (Volume(+)) Partial sale of the Asian business in the prior year (Volume(-))
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28Major Group Companies Q1 FY2026 Q1 FY2025 The Polyolefin Company (Singapore) (Millions of USD) PCS (Millions of USD) Rabigh Refining and Petrochemical Company (Millions of SAR) Dongwoo Fine-Chem (Billions of KRW) Sumitomo Chemical Brasil Indústria Química S.A. (Millions of BRL) Sumitomo Biorational Company (Millions of USD) 179 191 Profit Improvement in profit margins Improvement in profit margins Improvement in refining margins Profit remains flat Profit remains flat Profit remains flat 498 578 14,850 11,493 Company Sales Revenue 196 197 512.4 513.8 437 361
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29Crop Protection Product Sales by Region (Billions of yen) Q1 FY2026 Q1 FY2025 Variance Reasons for Change Japan 17.3 16.0 1.3 North America 8.1 7.6 0.5 Central & South America 16.7 12.0 4.7 Asia (including India) 19.2 18.2 1.0 Europe & Others 7.2 7.3 (0.1) Total 68.5 61.1 7.4 • Increase in shipments due to advanced sales • Increase in shipments due to advanced sales ※ Following the reorganization of our US biorationals business in April 2026, certain products were reclassified between the crop protection business and environmental health business. The results for Q1 FY2025 have been adjusted to reflect this change.