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SUMITOMO SEIKA Supplementary Materials The Long - Term Vision 2045 and the Outline of the New Medium - Term Business Plan ( FY2026 - FY2030 ) Details of the new Medium - Term Business Plan will be announced in November 2026 . August 6 , 2026 Sumitomo Seika Chemicals Co. , Ltd. ( Securities code : 4008 , Prime Market , Tokyo Stock Exchange )
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2 Results of the Previous Medium-Term Business Plan (FY2023–FY2025) Business Division FY2022 Results FY2025 Results FY2025 Targets 吸水性樹脂 1,056 1,161 1,200 機能マテリアルほか 375 322 400 売上高 1,430 1,483 1,600 吸水性樹脂 53 115 75 機能マテリアルほか 51 29 45 営業利益 105 145 120 純利益 86 77 85 ROE 10.4% 7.8% 8.5% ROIC 8.4% 8.1% 8.0% 円/人民元 19.8 21.3 19.5 円/米ドル 135.5 150.8 135.0 ナフサ価格（円/kℓ） 76,600 65,200 70,000 Super Absorbent Polymers Functional Materials and Others Net Sales Super Absorbent Polymers Functional Materials and Others Operating Profit Net Income Attributable to Owners of the Parent Exchange rate (JPY/USD) Exchange rate (JPY/CNY) Japanese naphtha price (JPY/kℓ) 8.6 10.5 5.1 5.3 143.0 37.5 105.6 (Billions of JPY) 7.7 14.5 2.9 11.5 148.4 32.2 116.1 8.5 12.0 4.5 7.5 160.0 40.0 120.0 Sales volume target unmet Target unmet by a large margin A record high due to the favorable effect of exchange rates, etc. Target unmet by a large margin Favorable effects of exchange rates and raw material prices Target unmet due to extraordinary losses Target unmet due to extraordinary losses Target achieved ◼ Achieved a record-high operating profit in FY2025, the final year of the plan, exceeding the target (+20.8%) ◼ Fell short of the FY2025 net sales and ROE targets ◼ Implemented forward-looking strategic investments, including in new Super Absorbent Polymers (SAP) facilities and a new research building
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3 The Long-Term Vision 2045 and the New Medium-Term Business Plan ◼ We have set a long-term vision toward 2045, the Group’s 101st anniversary and the year we will embark on our next new 100-year journey. ◼ We have determined initiatives to achieve the long-term vision as part of our new Medium-Term Business Plan for FY2026 to FY2030. ◼ We have implemented scenario planning, exploring multiple potential scenarios of the future based on uncertainties. The developed scenarios of the future will be utilized for assessing the validity of our initiatives from a medium - to long-term perspective. Following the Sumitomo Business Spirit, the Sumitomo Seika Group will contribute to the advancement of society by developing world class creative technologies in the field of chemistry and, based thereon, supplying unique, high-quality products to people around the world. “Business Principles,” “Jiri-Rita Koushi-Ichinyo” ▸p. 9 Sumitomo Business Spirit Corporate Mission Purpose Statement New Medium-Term Business Plan (FY2026–FY2030) Long-Term Vision 2045 A chemical company creating a future by building on excellence in technology and quality Scenario planning - Preparing for an uncertain future - Backcasting Enhancing corporate value Achieving sustainable growth Putting these commitments into action by connecting them with specific issues addressed under the Medium-Term Business Plan ▸p. 4 ▸p. 5 We will solve issues facing the earth and people’s lives through Sumitomo Sika’s “Chemistry” “Initiatives to improve capital efficiency,“ one of the five priority initiatives Five priority initiatives ▸p. 7 Material issues ▸p. 6
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4 Scenario Planning Toward 2045 ◼ The Group has formulated four scenarios of the future, with “Input: raw materials and energy sourcing structure” and “Output: product value assessment” as two axes of uncertainty that have a material impact on the Group (trigger points). ◼ The Group will closely watch for signs of change in the business environment and proactively adapt its strategy and initiatives to achieve higher resilience to each scenario. 高性能×低コストの未来を 化学×AIが実現する世界 性能・コスト 来歴 Performance and cost Transition away from fossil fuels and multi-sourcing Sourcing and traceability attributes A world where new materials and new energy sources that prioritize performance and cost improvement over sustainability are preferred A world where dependence on fossil-derived raw materials and fuels remains, and performance and cost continue to be prioritized over traceability A world where industries continue to depend on fossil-derived raw materials and fuels, but have to bear high costs charged based on carbon footprints, etc. Continued dependence on fossil sources A world where non-fossil and multi- sourced raw materials and fuels are provided, and products whose sourcing and traceability attributes are attractive to consumers are preferred Raw materials and energy sourcing Raw materials and energy sourcing Product value assessment Product value assessment
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A chemical company creating a future by building on excellence in technology and quality The Sumitomo Seika Group Long-Term Vision 2045 We at the Sumitomo Seika Group believe that the Group must advance by building on the excellence in technology and quality that it has cultivated since its founding, evolve its business to meet the needs of the times, and continue to be a chemical company that is needed by customers and trusted by society. Based on this belief, in 2022 we formulated our purpose statement: “We will solve issues facing the earth and people’s lives through Sumitomo Seika’s ‘Chemistry.’” In order for us to advance with this purpose statement—no matter which of the scenarios of the future we have developed through scenario planning may take place in the real world that has become increasingly uncertain—we have set our long-term vision toward 2045. We will drive our business by developing technologies that are needed in the advanced fields of each market we serve and taking advantage of our excellence in quality, which is supported by high reliability, and strive to achieve this long-term vision.
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6 New Medium-Term Business Plan Material Issues ◼ Based on the multiple scenarios of the future developed through scenario planning, we have determined the Group’s material issues, the most important challenges for us to tackle to achieve our long-term vision. Sources of value creation Reducing greenhouse gas (GHG) emissions and advancing resource circulation Contributing to sanitation, health, and better quality of life (QOL) Providing highly reliable materials supporting advanced industries Creating next-generation businesses through research and development and technological innovation 1 2 3 4 Quality* and compliance * Quality is a foundation of trust in the Group, including product specifications, service standards, chemicals safety, data reliability and transparency, and accountability. Safety, disaster preparedness, and stable operations Enhancing human capital 5 6 7 Foundations of business continuity * In the new Medium-Term Business Plan, the Group will analyze the risks and opportunities associated with these material issues and determine specific initiatives and key performance indicators (KPIs) to monitor their progress. These initiatives and KPIs will be announced in November 2026.
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7 New Medium-Term Business Plan Five Priority Initiatives ◼ Priority initiatives to implement during the period of the Plan for the material issues that we will address over the medium to long term and for the improvement of capital efficiency, an issue that needs urgent action 1. Optimizing the business portfolio and increasing overall management productivity 2. Creating next-generation businesses 3. Implementing sustainability management 4. Establishing a more robust management foundation to earn stakeholders’ trust Enhancing corporate value Sustainable growth Five Priority Initiatives * Details of each initiative will be announced in November 2026. Material Issues ❶ Reducing greenhouse gas (GHG) emissions and advancing resource circulation ❷ Contributing to sanitation, health, and better quality of life (QOL) ❸ Providing highly reliable materials supporting advanced industries ❹ Creating next-generation businesses through research and development and technological innovation ❺ Quality and compliance ❻ Safety, disaster preparedness, and stable operations ❼ Enhancing human capital 5. Improving capital efficiency and strengthening engagement with the stock market
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8 The New Medium-Term Business Plan Financial Targets for FY2030 FY2030 Targets (Ref.) FY2025 Results Net sales 200.0 billion JPY 148.4 billion JPY Operating profit 17.5 billion JPY 14.5 billion JPY Profit attributable to owners of the parent 12.4 billion JPY 7.7 billion JPY EBITDA (earnings before interest, taxes, depreciation and amortization) 31.0 billion JPY 20.0 billion JPY ROE (return on equity) 10% 7.8% ROIC (return on invested capital) 8.5% 8.1% Key Assumptions Exchange rate (JPY/USD) 155 150.78 Exchange rate (JPY/CNY) 22.8 20.25 Japanese naphtha price (JPY/kℓ) 70,000 65,200 The financial targets for FY2030 assume organic growth.
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• We have set a medium-term target range of 50% to 60% for the consolidated equity ratio and will advance disciplined growth investments and further enhance shareholder returns through more efficient use of cash and deposits and through agile financing. • In light of the level of shareholders’ equity and the balance between our cash and deposits and our borrowings, we have added a target dividend on equity (DOE) ratio to our shareholder return policy Initiatives for improvement 9Dividend on equity (DOE): Total dividends / Shareholders’ equity at the end of the previous fiscal year As shareholders’ equity increased more than invested capital increased, the efficiency of using shareholders’ equity declined Changes in our capital efficiency (FY2016–FY2025) It is imperative to determine the appropriate level of shareholders’ equity and take action to ensure capital discipline The New Medium-Term Business Plan Initiatives to Improve Capital Efficiency The equity ratio increased from 55% to 68%, with the financial position shifting from net debt of 7.7 billion JPY to cash net of borrowings of 0.8 billion JPY . Shareholders’ equity increased by 80%, and borrowings decreased by 30% The ROIC remained at the same level (8.1% in FY2025).Both invested capital and operating profit grew by 40% ◼ We will implement the following two initiatives to improve capital efficiency while working to achieve the target ROE of 10% and ROIC of 8.5% set out in the FY2030 financial targets.
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20 24 40 40 40 44 70 2.2% 2.4% 3.7% 3.4% 3.2% 3.4% 4.5% or more 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 0 10 20 30 40 50 60 70 2020 2021 2022 2023 2024 2025 2026 Dividends per share DOE Yen （Plan） Before change With respect to dividends from retained earnings, the Company considers “returning profits to shareholders” as one of its priority management issues and makes it a basic policy to determine dividends, after giving due consideration to stable dividend payment and securing of internal reserves to prepare for future business development, based on the dividend payout ratio of 30% or more. The Company will appropriate internal reserves for investment in enhancing production capability that will lead to the Company’s improved financial performance and reinforced business foundation, strengthening cost competitiveness, and advancing research and development for products that meet market needs. After change With respect to dividends from retained earnings, the Company considers “returning profits to shareholders” as one of its priority management issues and makes it a basic policy to determine dividends, after giving due consideration to stable dividend payment and securing of internal reserves to prepare for future business development, based in principle on the dividend payout ratio of 30% or more and the dividend on equity (DOE)* ratio of 4.5% or more. The Company will allocate internal reserves to growth investments and strengthening its business foundation. Change in Dividend Policy Dividend Forecasts The New Medium-Term Business Plan Initiatives to Improve Capital Efficiency Dividend on equity (DOE): Total dividends / Shareholders’ equity at the end of the previous fiscal year 10
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Disclaimer This material is provided solely for the purpose of offering information that may assist in making investment decisions and is not intended to solicit investments. The statements contained herein are based on our judgments as of the time this material was prepared, and any forward-looking figures or initiatives described are not guaranteed or promised to be achieved. Please note that the information in this material is subject to change without prior notice.