Slides
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November 2, 2026 Financial Results for FY2026 Second Quarter (April 1, 2026 – September 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 Second Quarter Sales Revenue by Reporting Segment (Quarterly) ･････････････････ 21 Core Operating Income by Reporting Segment (Quarterly) ･････････････････ 22 Sales Revenue Analysis by Reporting Segment ･･････ 23 Cost and other Elements ･･････････････････････････ 28 Cost and other Elements by Reporting Segment ･･････ 29 Major Group Companies ･････････････････････････ 30 Crop Protection Product Sales by Region ････････････ 31 Summary for FY2026 First Half ････････････････ 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 Outlook for the Business Environment ･･････････ 16 Summary of the Financial Forecast for FY2026 ･･･････････････････････････････ 17 Performance Forecast for FY2026 ･･････････････ 18 Sales Revenue and Core Operating Income by Reporting Segment ･･････････････････････ 19
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1. Consolidated Financial Results for FY2026 Second Quarter
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4 (Billions of yen) Q2 FY2025 Q2 FY2026 FY2026 Forecast (announced in Aug.) 39.7 82.9 70.0 Core Operating Income Net Income Attributable to Owners of the Parent Summary for FY2026 First Half (Billions of yen) Q2 FY2025 Q2 FY2026 FY2026 Forecast (announced in Aug.) 108.7 144.5 125.0 ※Excluding gains on sale of businesses 50.0 135.0 120.0approx. approx. approx. ●Core operating income and net income attributable to owners of the parent increased significantly from the same period of the prior year and exceeded the forecast announced in August ●The Group’s first-half results for FY2026 were its second-highest first-half results on record ●Core operating income ・ICT & Mobility Solutions: Although shipments of display-related materials decreased amid semiconductor shortages, shipments of semiconductor processing materials increased ・Agro & Life Solutions: Although business conditions for crop protection products outside Japan have been slow to recover, shipments for crop protection products inside of Japan have remained steady and profit margins for feed additives have improved ・Essential & Green Materials: Petro Rabigh’s financial results improved due to the situation in the Middle East, while temporary inventory valuation gains also significantly boosted core operating income ●The D/E ratio improved significantly from 0.93 times at the end of March 2026 to 0.73 times, due to solid performance and Sumitomo Pharma’s capital increase of 97.8 billion yen
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5Consolidated Financial Results Summary (Billions of yen) Q2 FY2026 Q2 FY2025 Variance Variance Ratio Sales revenue 1,172.8 1,095.4 77.4 7.1% Core operating income 144.5 108.7 35.8 32.9% of which equity-method investments 36.7 (27.3) 64.0 - Total non-recurring items (breakdown below) (6.5) (5.0) (1.4) - Restructuring costs (5.0) (3.5) (1.5) - Impairment losses (4.2) (3.3) (0.9) - Others 2.7 1.8 0.9 - Operating income 138.1 103.7 34.4 33.2% Finance income/expenses (breakdown below) (16.1) (15.8) (0.3) - (Loss) on foreign currency transactions including gain (loss) on derivatives (9.4) (6.4) (3.0) - Others (6.7) (9.4) 2.7 - Income before taxes 121.9 87.9 34.0 38.7% Income tax expenses (16.3) 3.0 (19.3) - Net income 105.7 90.9 14.7 16.2% Net (income) attributable to non-controlling interests (22.8) (51.2) 28.5 - Net income attributable to owners of the parent 82.9 39.7 43.2 108.8% ROE 7.6% 4.3% Exchange rate (yen/$) 159.49 146.02 Naphtha price (yen/kl) 107,500 64,800 Overseas sales revenue ratio 68.2% 70.0%
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6 84.0 (64.7) 58.1 Q2 FY2025 Price Volume FX Q2 FY2026 1,095.4 1,172.8 Sales Revenue by Reporting Segment 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. (Billions of yen) Q2 FY2026 Q2 FY2025 Variance Variance Ratio Sales price variance Shipping volume variance Foreign currency (FX) conversion variance Agro & Life Solutions 226.5 213.0 13.5 6.4% 15.0 (15.3) 13.8 ICT & Mobility Solutions 311.9 283.5 28.4 10.0% 7.0 4.4 17.1 Advanced Medical Solutions 21.5 21.1 0.3 1.6% 0.0 0.3 0.1 Essential & Green Materials 320.9 329.1 (8.3) (2.5)% 63.5 (81.2) 9.4 Sumitomo Pharma * 265.5 226.1 39.4 17.4% (1.5) 23.2 17.8 Others 26.5 22.6 3.9 17.5% 0.0 3.9 0.0 Total 1,172.8 1,095.4 77.4 7.1% 84.0 (64.7) 58.1
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7 17.5 (4.5) Q2 FY2025 Price Cost Volume and other Q2 FY2026 144.5 108.7 22.8 Equity-method investments 64.0 included Core Operating Income by Reporting Segment Variance analysis (Billions of yen) Q2 FY2026 Q2 FY2025 Variance Price variance Cost variance Shipping volume variance and other Agro & Life Solutions 20.8 11.2 9.6 11.0 0.0 (1.4) ICT & Mobility Solutions 31.9 33.1 (1.2) (4.5) (3.0) 6.3 Advanced Medical Solutions (3.7) (1.4) (2.3) (1.0) 0.0 (1.3) Essential & Green Materials 62.1 (18.6) 80.7 13.5 3.5 63.7 Sumitomo Pharma * 43.6 97.3 (53.8) (1.5) (5.0) (47.3) Others & Adjustments (10.2) (13.0) 2.8 0.0 0.0 2.8 Total 144.5 108.7 35.8 17.5 (4.5) 22.8 *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 11.0 0.0 Q2 FY2025 Price Cost Volume and other Q2 FY2026 11.2 20.8 (1.4) Core Operating Income Analysis by Reporting Segment Agro & Life Solutions Total ¥ 20.8 billion ¥ 9.6 billion from Q2 FY2025 Slow recovery in business environment outside of Japan (Price(-)) Improvement in profit margins (Price(+)) Decrease in demand (Volume and other(-)) Crop Protection Feed Additives Feed Additives(+) Crop Protection(-) Feed Additives(-)
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9 (4.5) (3.0) Q2 FY2025 Price Cost Volume and other Q2 FY2026 33.1 31.9 6.3 Core Operating Income Analysis by Reporting Segment ICT & Mobility Solutions Total ¥ 31.9 billion ¥ (1.2) billion from Q2 FY2025 Absence of prior year gain on the sale of the large LCD polarizing film business (Volume and other(-)) Decline in mobile related shipments due to a shortage of semiconductors (Volume and other(-)) Decline in the selling prices of polarizing films (Price(-)) Increase in shipments due to growing demand for semiconductors (Volume and other(+)) Increase in fixed costs due to acquisitions and capacity expansion (Cost(-)) Increase in shipments of super engineering plastics (Volume and other(+)) Displays Mobility Semiconductors Displays(-) Semiconductors(+) Mobility(+) Displays(-)Semiconductors(-)
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10 (1.3) Q2 FY2025 Price Cost Volume and other Q2 FY2026 (1.4) (3.7)0.0 (1.0) Core Operating Income Analysis by Reporting Segment Advanced Medical Solutions Total ¥ (3.7) billion ¥ (2.3) billion from Q2 FY2025 Difference in sales mix of active pharmaceutical ingredients and intermediates (Volume and other(-)) Decline in profit margins due to the Middle East geopolitical tensions (Price(-))
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11 3.5 63.7 Q2 FY2025 Price Cost Volume and other Q2 FY2026 (18.6) 62.1 13.5 Core Operating Income Analysis by Reporting Segment Essential & Green Materials Total ¥ 62.1 billion ¥ 80.7 billion from Q2 FY2025 Inventory valuation gains (Price(+)) Impact of prior year shutdown maintenance and improvement in refining margins (Volume and other(+)) Japan Saudi Arabia Singapore Japan(+) Singapore(+) Saudi Arabia(+) Inventory valuation gains (Price(+))
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12Core Operating Income Analysis by Reporting Segment Sumitomo Pharma Total ¥ 43.6 billion ¥ (53.8) billion from Q2 FY2025 Partial sale of the Asian business in the prior year (Volume and other(-), Cost(+)) Increase in selling, general, and administrative expenses, and R&D expenses in North America (Cost(-)) Growth in sales of ORGOVYX® (therapeutic agent for advanced prostate cancer) and GEMTESA® (treatment for overactive bladder) (Volume and other(+)) (5.0) Q2 FY2025 Price Cost Volume and other Q2 FY2026 97.3 43.6 (47.3) (1.5)
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13Consolidated Statement of Financial Position (Billions of yen) 30-Sep-26 31-Mar-26 Variance 30-Sep-26 31-Mar-26 Variance Current assets 1,623.0 1,507.7 115.3 Liabilities 2,143.5 2,168.4 (24.9) Cash and cash equivalents 208.4 208.6 (0.2) Trade and other payables 529.8 464.4 65.4 Trade and other receivables 637.0 608.7 28.3 Interest-bearing liabilities 1,087.4 1,151.5 (64.1) Inventories 653.4 595.5 57.9 Others 526.3 552.5 (26.2) Others 124.2 95.0 29.2 Equity 1,482.6 1,236.7 246.0 Non-current assets 2,003.1 1,897.3 105.7 Shareholders' equity 858.3 744.9 113.4 Property, plant and equipment 772.7 770.7 2.0 Other components of equity 307.0 263.8 43.3 Goodwill and intangible assets 491.0 501.0 (10.1) Non-controlling interests 317.3 228.0 89.3 Others 739.4 625.6 113.8 3,626.1 3,405.0 221.0 3,626.1 3,405.0 221.0 32.1% 29.6% 2.5% 0.73 0.93 (0.20) 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) Q2 FY2026 Q2 FY2025 Variance Cash flows from operating activities 66.6 57.7 8.9 Cash flows from investing activities (84.9) (16.7) (68.2) Free cash flows (18.3) 41.0 (59.3) Cash flows from financing activities 16.0 (114.8) 130.8 Others 2.2 2.9 (0.8) Increase (decrease) in cash and cash equivalents (0.2) (70.9) 70.7 Cash and cash equivalents at the end of the period 208.4 161.2 47.2
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2. Outlook for FY2026
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16Outlook for the Business Environment Although growth in the field of technology is firmly supporting the global economy, future prospects remain uncertain due to geopolitical risks, including tensions 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 temporary improvement in the first half, the outlook for the second half and beyond remains uncertain. There has been a delay in recovery in the business environment for crop protection products outside of Japan. 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 0.0 100.0 200.0 300.0 Adjusted gains on sale of businesses※ Profit from business activities （Billions of yen） FY2025 Trend in core operating income 208.4 215.0 270.0 FY2026 Forecast (ann. in May) Forecast for FY2026 FY2026 Forecast (ann. in Nov.) ※Excluding impact of the timing difference in the partial sale of shares in Petro Rabigh in FY2025 Core operating income is expected to be the largest in the Group’s history Core operating income in ICT & Mobility Solutions is projected to increase from 55 billion yen to 60 billion yen due to an increase in shipments of semiconductor processing materials Core operating income in Essential & Green Materials is expected to significantly increase from 20 billion yen to 75 billion yen due to Petro Rabigh’s financial results improving as a result of the situation in the Middle East and temporary inventory valuation gains Core operating income in Sumitomo Pharma is projected to increase from 94 billion yen to 108 billion yen due to strong sales of GEMTESA® The annual dividend has been revised upward to 17 yen (13.5 yen in FY2025) Core operating income: projected to be 270.0 billion yen, an upward revision from 215.0 billion yen Net income attributable to owners of the parent: projected to reach 90.0 billion yen, an upward revision from 70.0 billion yen Year-end dividend: projected at 9 yen, an upward revision from 8 yen
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18Performance Forecast for FY2026 (Billions of yen) Revised forecast Previous forecast (announced in May) Variance Variance ratio FY2025 actual Sales revenue 2,490.0 2,360.0 130.0 5.5% 2,328.5 Core operating income 270.0 215.0 55.0 25.6% 208.4 Non-recurring items (55.0) (38.0) (17.0) - (56.6) Operating income 215.0 177.0 38.0 21.5% 151.7 Net income attributable to owners of the parent 90.0 70.0 20.0 28.6% 60.9 ROE 8.6% 6.8% 6.4% 157.00 155.00 150.67 (2nd Half 155.00) (2nd Half 155.00) Naphtha price (yen/kl) 99,000 92,000 65,200 (2nd Half 90,000) (2nd Half 92,000) Interim dividend 8.00 8.00 6.00 Year-end dividend 9.00 8.00 7.50 Annual dividend 17.00 16.00 13.50 Exchange rate (yen/$) Cash dividends (yen)
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19Sales Revenue and Core Operating Income by Reporting Segment (Billions of yen) Revised forecast Previous forecast (announced in May) Variance FY2025 actual Agro & Life Solutions Sales Revenue 570.0 560.0 10.0 519.3 Core Operating Income 65.0 65.0 - 56.3 ICT & Mobility Solutions Sales Revenue 610.0 590.0 20.0 574.2 Core Operating Income 60.0 55.0 5.0 53.0 Advanced Medical Solutions Sales Revenue 60.0 60.0 - 58.6 Core Operating Income 3.0 3.0 - 2.8 Essential & Green Materials Sales Revenue 630.0 560.0 70.0 678.8 Core Operating Income 75.0 20.0 55.0 14.4 Sumitomo Pharma Sales Revenue 565.0 540.0 25.0 451.9 Core Operating Income 108.0 94.0 14.0 108.4 Others Sales Revenue 55.0 50.0 5.0 45.8 Core Operating Income (41.0) (22.0) (19.0) (26.7) Total Sales Revenue 2,490.0 2,360.0 130.0 2,328.5 Core Operating Income 270.0 215.0 55.0 208.4 "Excluding gains on sale of businesses" 260.0 210.0 120.0approx. 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 Q2 1st Half 2nd Half (Forecast) Agro & Life Solutions 96.9 116.1 133.9 172.4 109.0 117.5 226.5 343.5 ICT & Mobility Solutions 137.4 146.1 148.3 142.4 148.6 163.3 311.9 298.1 Advanced Medical Solutions 9.1 12.1 14.5 23.0 10.4 11.1 21.5 38.5 Essential & Green Materials 165.4 163.8 181.8 167.8 170.2 150.7 320.9 309.1 Sumitomo Pharma 107.4 118.7 120.3 105.5 129.0 136.5 265.5 299.5 Others 10.0 12.6 12.1 11.1 11.0 15.5 26.5 28.5 Total 526.1 569.3 610.9 622.2 578.2 594.6 1,172.8 1,317.2 FY2025
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22Core Operating Income by Reporting Segment (Quarterly) (Billions of yen) FY2025 FY2026 Q1 Q2 Q3 Q4 Q1 Q2 1st Half 2nd Half (Forecast) Agro & Life Solutions 2.2 9.0 16.9 28.2 9.6 11.2 20.8 44.2 ICT & Mobility Solutions 18.4 14.7 13.4 6.5 13.0 18.9 31.9 28.1 Advanced Medical Solutions (1.0) (0.4) 1.7 2.5 (1.9) (1.8) (3.7) 6.7 Essential & Green Materials (5.5) (13.1) 38.4 (5.3) 27.2 34.9 62.1 12.9 Sumitomo Pharma 21.0 76.3 13.9 (2.8) 18.8 24.8 43.6 64.4 Others & Adjustments (7.4) (5.5) (6.2) (7.6) (4.5) (5.7) (10.2) (30.8) Total 27.7 81.0 78.1 21.5 62.3 82.2 144.5 125.5
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23 15.0 (15.3) 13.8 Q2 FY2025 Price Volume FX Q2 FY2026 213.0 226.5 Sales Revenue Analysis by Reporting Segment Agro & Life Solutions Total ¥ 226.5 billion ¥ 13.5 billion from Q2 FY2025 Weaker yen’s effect on the sales of subsidiaries outside Japan when converted into yen (FX(+)) Slow recovery in business environment outside of Japan (Price(-)) Sale of domestic subsidiary in prior year (Volume(-)) Improvement in product market conditions (Price(+)) Decrease in demand (Volume(-)) Crop Protection Feed Additives Feed Additives(+) Crop protection(-) Crop protection(+) Crop protection(-) Feed Additives(-)
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24 4.4 17.1 7.0 Q2 FY2025 Price Volume FX Q2 FY2026 283.5 311.9 Sales Revenue Analysis by Reporting Segment ICT & Mobility Solutions Total ¥ 311.9 billion ¥ 28.4 billion from Q2 FY2025 Decline in mobile related shipments due to a shortage of semiconductors (Volume(-)) Decline in the selling prices of polarizing films (Price(-)) Absence of prior year sales due to the divestiture of the large LCD polarizing film business (Volume(-)) Increase in shipments due to growing demand (Volume(+)) Increase in selling prices (Price(+)) Improvement in resorcinol product market conditions (Price(+)) Semiconductors(+) Mobility(+) Displays(-) Semiconductors(+) Displays(-) Displays Mobility Semiconductors
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25 0.0 0.3 0.1 Q2 FY2025 Price Volume FX Q2 FY2026 21.1 21.5 Sales Revenue Analysis by Reporting Segment Advanced Medical Solutions Total ¥ 21.5 billion ¥ 0.3 billion from Q2 FY2025 Difference in shipments timing for active pharmaceutical ingredients and intermediates (Volume(+))
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26 (81.2) 9.4 Q2 FY2025 Price Volume FX Q2 FY2026 329.1 320.9 63.5 Sales Revenue Analysis by Reporting Segment Essential & Green Materials Total ¥ 320.9 billion ¥ (8.3) billion from Q2 FY2025 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(-)) Increase in raw material and product market prices (Price(+)) Japan(+) Singapore(+) Japan(-) Singapore(-) Increase in raw material and product market prices (Price(+))Japan Singapore
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27 (1.5) Q2 FY2025 Price Volume FX Q2 FY2026 226.1 265.5 23.2 17.8 Sales Revenue Analysis by Reporting Segment Sumitomo Pharma Total ¥ 265.5 billion ¥ 39.4 billion from Q2 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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28Cost and other Elements (Billions of yen) Q2 FY2026 Q2 FY2025 Variance Capital Expenditures 52.1 58.0 (5.9) Depreciation and Amortization 59.1 60.0 (0.8) Research & Development Expenses 74.3 67.0 7.3 Number of Employees (as of September 30) 26,972 27,699 (727)
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29Cost and other Elements by Reporting Segment (Billions of yen) Q2 FY2026 Q2 FY2025 Q2 FY2026 Q2 FY2025 Q2 FY2026 Q2 FY2025 Agro & Life Solutions 7.8 7.1 10.9 10.1 16.9 14.9 ICT & Mobility Solutions 20.8 26.3 18.2 16.3 18.2 16.3 Advanced Medical Solutions 3.9 5.7 3.8 3.9 2.1 2.0 Essential & Green Materials 12.2 6.7 7.4 10.1 2.8 4.0 Sumitomo Pharma 3.2 4.4 9.8 10.5 24.0 17.5 Others 4.2 7.8 9.0 9.1 10.3 12.3 Total 52.1 58.0 59.1 60.0 74.3 67.0 Capital Expenditures Depreciation& Amortization R&D Expenses
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30Major Group Companies Q2 FY2026 Q2 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) 340 371 Profit Inventory valuation gains Inventory valuation gains Impact of prior year shutdown maintenance and improvement in refining margins Increase in profit driven by the semiconductor business Slow recovery in business environment Delay in sales timing 929 1,115 35,217 15,544 Company Sales Revenue 377 390 1,074.1 1,028.3 1,307 1,416
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31Crop Protection Product Sales by Region (Billions of yen) Q2 FY2026 Q2 FY2025 Variance Reasons for Change Japan 32.7 34.0 (1.3) North America 18.1 21.2 (3.1) Central & South America 48.5 44.1 4.4 Asia (including India) 36.6 35.9 0.7 Europe & Others 14.1 14.8 (0.7) Total 150.0 150.0 0.0 • Increase in revenue due to foreign currency conversion variance, etc., despite a delay in recovery in the business environment • Decrease in shipments due to delayed 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 Q2 FY2025 have been adjusted to reflect this change.