Investors’ Meeting for
FY2022 Financial Results,
Management Priorities andBusiness Strategies

Keiichi Iwata – President
May 15, 2023

1. FY2022 Earnings Overview

03

2. FY2023 and FY2024 Business
Performance Forecasts

06

Section1

FY2022 Earnings Overview

FY2022 vs FY2021(Billions of yen)

FY2021

FY2022

ChangeReasons for change

FY2022
Forecast（Feb)

Sales Revenue

2,765.3

2,895.3

130.0

Revenue up on weaker yen

Core Operating Income

234.8

92.8

-142.0

See the next pageNon-recurring Items-19.8-123.7-104.0

Mostly due to impairment inPharmaceuticals

Operating Income (IFRS)

215.0

-31.0

-246.0

0

Finance income/expenses

36.1

31.2

-4.9

ー

Taxes

-64.7

-47.1

17.6

ー

Net income attributable tonon-controlling interests

-24.3

53.9

78.2

Net Income Attributableto Owners of the Parent

162.1

7.0

-155.1Naphtha price¥56,600/kl¥76,600/kl¥76,500/kl

Exchange rate

¥112.39/$¥135.50/$¥134.86/$

Loss at subsidiary in this period

2,990.0
120.0
ー

ー

0

4

FY2022 Core Operating Income by Sector vs FY2021(Billions of yen)

FY2021

FY2022

ChangesEssential chemicals &Plastics

53.5

-34.2

-87.7

Energy & Functional
Materials

20.1

15.2

-4.8

IT-related Chemicals

57.8

47.6

-10.2

Health & Crop Sciences

42.3

57.3

Pharmaceuticals

61.7

Others

Total
Differencesfrom Forecast

Reasons for change

FY2022
Forecast(Feb)

Worse trade terms and conditions due to spike in raw
material costs-33.0

Lower shipments of synthetic resin, MMA, etc.

Lower shipments of resorcinol and SEP

18.0

Lower sales prices and shipments of display
materials despite tailwinds from weaker yen

41.0

15.0

Higher sales prices in S. America and shipmentsin H1 coupled with weaker yen

67.0

16.2

-45.5

Higher SG&A due to new drugs
Lower sales of Latuda. Drug price revisions in Japan.

37.0

-0.6

-9.3

-8.8

234.8

92.8

-142.0-10.0

Worsened business performance at affiliates

120.0

ICT (+6.6 bn. yen): Decline in shipments of display materials and semiconductor materials was better than expected
H&CS (-9.7 bn. yen): Continue to see depressed market prices for methionine
Pharma (-20.8 bn. yen): Large decline in Latuda sales. Higher SG&A related to new drugs.

5Section2

FY2023 and FY2024
Business Performance
Forecasts

Outlook for the Business Environment
FY2022Global economic growthrate (IMF April 2023)

3.4％

FY2023
Forecast

2.8％

FY2024
Forecast

3.0％

Outlook to FY2024
Low growth for some time due to financial anxieties invarious countries.

Petrochemicals &Plastics feedstock prices

Although crude oil prices remain elevated, ethylene market
prices are expected to recover as the building of new plants
slows.

Automotive

Expecting a gentle recovery from subdued productionlevels caused by semiconductor shortages, etc.

Displays

With the worst for TVs and mobile devices behind us, expect a
gentle increase in demand. However, the competitive environment
for TVs should intensify as rivals bring new plants online.

Semiconductors

The present market downturn is temporary. Expect arecovery starting in the latter half of 2023.

Agrosolutions
business

The spike in selling prices will settle down, but demand
will remain solid.

Methionine

Market prices to bottom out as avian influenza
dissipates.

Pharmaceuticals

Will lose money in FY 2023 on Latuda loss of exclusivity.
Expect a v-shaped recovery in FY 2024 on rationalization andexpanded sales of three key products.

7

FY2023 Business Performance Forecasts and Re-setting Targets for FY2024
Low profit levels in FY2023 due to large impact from the Latuda cliff. Substantial improvement heading
into FY2024.
Revised down plan targets, but we aim to achieve the targets a number of years late.
(Billions of yen)

FY2022
ActualFY2023
Forecast

FY2024
Revised plan

FY2024
Initial plan

FY2024 Difference
Revised - Initial

Sales Revenue

2,895.3

2,900.0

3,000.0

3,050.0-50.0Core Operating
Income

92.8

40.0

200.0

300.0

-100.0Operating Income(IFRS)

-31.0

20.0

180.0

285.0

-105.0Net Income Attributableto Owners of the Parent

7.0

10.0

100.0

150.0

-50.0

Naphtha price¥76,600/kl¥70,000/kl¥70,000/kl¥50,000/kl

Exchange rate

¥135.50/$¥135.00/$¥130.00/$¥110.00/$
8

FY2023 Business Performance Forecasts and Re-setting Targets for FY2024: Core
Operating Income by Sector
Expecting a solid recovery in the 4 sectors excluding Pharmaceuticals
In Pharmaceuticals, aiming for a v-shaped recovery in FY2024 driven by rationalization and growth inpromising drugs
FY2022
ActualEssential Chemicals& Plastics-34.2

FY2023
Forecast-7.0

FY2024
Revised plan

21.0(Billions of yen)

FY2024
Initial plan

FY2024 Difference
Revised - Initial

54.0

-33.0

15.2

13.0

22.0

31.0

-9.0

IT-related Chemicals

47.6

38.0

44.0

58.0

-14.0

Health & Crop
Sciences

57.3

62.0

79.0

84.0

-5.0

85.9

106.0

166.0

227.0

-61.0

Pharmaceuticals

16.2

-61.0

44.0

73.0

-29.0

Other

-9.3

-5.0

-10.0

0

-10.0

Total

92.8

40.0

200.0

300.0

-100.0

Energy & Functional
Materials

4 Sectors Total

9

FY2024 Profit Growth Drivers(Core Operating Income in 4 Sectors Excluding Pharmaceuticals)
Expecting a solid recovery in business performance on bolstering of growth businesses and reform andrationalization of low-profit businesses(Billions of yen）

Approx.

25.0

Approx.

5.0

166.0

Approx.

50.0

Reform low-profit
businesses

85.9

Harvest returns on
investments

FY2022
Actual

① Bolster② Reform andrationalization③ Improved tradeterms and conditions
and supply/demand

FY2024
Plan

10

Profit Contribution from Bolstering Growth Businesses(4 Sectors Excluding Pharmaceuticals)Drive growth in areas of regenerative agriculture and products for semiconductor applications,where we have made upfront investments（１）Overseas crop protection productsCore Operating
Income① Regenerative agriculture (chemical crop protection X biorationals)①Chemical crop
protection X
Biorationals

Leverage agriculture such as biorationals and chemical crop protection
with a reduced environmental impact to repair or improve soil health,reduce greenhouse gas emissions and maintain or enhance biodiversity.

+50 bn. yen②Reform andrationalization③Improved tradeterms and conditions
and supply anddemandProduct

Initiatives, characteristics, etc.

Biorationals

 Add to the existing biorationals product group with a full-fledged entry into
biostimulants (with the acquisition of FBSciences, etc.)

Flumioxazin

 Superb long-lasting effect makes it possible to reduce treatment frequencies, and its
efficacy against a broad range of weeds makes it suited to no-till farming

Rapidicil

 Fast-acting and plenty efficacious on low doses
 Its efficacy against a broad range of weeds makes it suited for no-till farming

Seedtreatments

 Contributes to reduced environmental impact through smaller treatment volumes andfrequencies

FY 24
revenuetarget60+

bn. yen70+bn. yen-20+

bn. yen② New fungicide INDIFLINFY 22ActualFY24
Plan

Aim for revenue of 40+ bn. yen in FY 24 (3X that of FY 22) through measures such as fully leveraging
the sales organization to provided detailed instruction on the timing of application and the like,
expanding the production infrastructure and enhancing brand recognition
11

Profit Contribution from Bolstering Growth Businesses(4 Sectors Excluding Pharmaceuticals)

Focus on harvesting returns on investments in high-performance materials（２）Products for semiconductor applications
Core Operating
IncomeInitiatives for FY 23 and FY 24①Chemical crop
protection X
Biorationals+50 bn. yen

Launch additional plants (Osaka in FY 23 and Korea in FY 24)
Advance R&D aimed at broader adoption of ArF and EUV photoresists

High-purity Alumina

Expand sales of new grade (with excellent strength and chemical resistance) to support
growing demand for ceramics for semiconductor production equipment（３）Other products②Reform andrationalization③Improved tradeterms and conditions
and supply anddemandFY 22
ActualPhotoresist

Initiatives for FY 23 and FY 24

FY24
Plan

LCP (liquid crystal
polymers)

 Launch additional plant (Ehime in FY 23)
 Capture share in battery motor applications as EV market grows

Tanaka Chemicals

 Expand sales of cathode precursor as EV market grows

Koei Chemical Actively expand contract manufacturing business in pharmaceutical precursors andcatalysts at new multi-purpose plants by leveraging stronger ties across the Sumitomo
Chemical group

Taoka Chemical Expand sales of resin for high-performance compact camera lenses

12Profit Contribution from Reform and Rationalization(4 Sectors Excluding Pharmaceuticals)

Aim to reform into profitable businesses through restructuring display materials, and business reviews

What is under study

Core Operating
IncomeRestructuring① Bolster② Reform andrationalization+25 bn. yen

Exited or
shrank③Improved tradeterms and conditions
and supply anddemandRational
izationFY 22
ActualFY24
Plan

Display materials

 Upgrade product portfolio
 Optimize production allocation
Expected benefit:

Annual10+ bn. yen

Caprolactam

Completed exit

EPDM

Decided to exit

Dyestuffs

Completed exit

Chemical fertilizer

Decided to exit

Singapore
S-SBR

Decided to exit
(announced here) Reduce manufacturing costs by purchasing low-priced raw
materials and improving yields
 Reduce SG&A expenses and enhanced work efficiency
leveraging DX
 Appropriately allocate research funds through early go/no-go
decisions on business feasibility
13

Reform and Rationalization: Direction for Essential Chemicals & Plastics
4 viewpoints of future direction for business operations
Technological development
and deployment into society

Japan and Singapore
Integrated operations

Collaboration withthird parties

Rebuilding

Direction for initiatives in Japan and Singapore
Carbon neutral(CN)

Existing businesses

Collaboration

Japan

Singapore

Accelerate development of technologies that
reduce environmental impact

Deploy technologies into society

Validate technology using demonstration equipment(Ethanol to Ethylene, Ethanol to Olefin, PMMA/PP recycling)

Deploy into society innovative technologies
developed in Japan

Exit unprofitable businesses

Production optimization

After caprolactam, continue to study exiting or shrinking lowprofit businesses, focus on businesses that are not affectedby market conditions, such as licensing businesses.

Study production optimization in Japan and Singapore
with the aim of maximizing earnings

京葉地区３社連携
Tri-party
collaboration in Keiyo ＊1

Discussions with
Singaporean government (EDB)

Keiyo Coastal Industrial Complex Council on Carbon Neutrality

Accelerate technology studies at PDH and CCUS
with support from EDB

Begin joint studies on fuel conversions and recycling
Study how to realize a carbon-neutral industrial
complex that is internationally competitive*1 Maruzen Petrochemical, Mitsui Chemicals and Sumitomo Chemical *2 PDH: Propane Dehydrogenation. CCUS: CO2 capture, utilization and storage＊2

14

Profit Growth Drivers in Pharmaceuticals (Core Operating Income)Achieve a v-shaped recovery through growth in sales of 3 key drugs and fundamental reorganization of
North American subsidiaries
Core Operating Income(Pharmaceuticals)（ Billions of yen ）Expand sales of 3 key drugs
Appealing the strengths ofthe 3
drugs to the market

60.0（Indications）

Strengths (vs. competitor drugs)(dvanced prostatecancer)Easy to administer, making itsuited for long-term treatment
Little risk of deterioration caused
by a temporary spike in hormones

44.0
40.0

20.0

（Uterine fibroids andendometriosis）

16.2（Overactive bladder）

0.0

2022年度
FY22
実績
Actual2024年度
FY24
計画
Plan

Aim for revenues of 200+ bn. yen in FY 24 forthe 3 drugs combinedSimple and easy-to-use
administration and doseActs without hormonal surge
Efficacious for all 3 major
symptoms: leakage episodes,
urgency, and frequency
No need to adjust dose

Reorganization of North
American subsidiaries
Consolidate existing 7 into 1
company

Initiatives in FY 23 and beyond

Build new safety evidence Revise package insert with information on safety related to side
effects
 Validate further safety for gynecological ailments

Further strengthen information provision
activities
 Media advertisement and educational activities at academic conferences
 Expand private insurance coverage

Maximize benefits of alliances(Pfizer, Gedeon Richter, etc.)

Expand indications and markets

Overactive bladder resulting from enlarged prostateExpand sales regions through alliances

Enhance profitability andstrengthen business infrastructure
through efficiencies and costsynergies

Projecting rationalization of$400M/yr by FY 24

15

Major Development Products in Pharmaceuticals
Developing a pipeline to drive growth over the medium to long term in FY 2025 and beyond

Ulotaront

Regenerative medicine & cell therapies

Provide a new treatment option with a new mechanism of action
Aim to launch and add indications quickly through joint developmentwith Otsuka Pharmaceutical
Planned indications

GeographyDevelopment status and target for launch

In Phase 3 studies

US(Plan to release results in FY 2023 H1)Japan

In Phase 2/3 studies⇒ Target market launch in FY 2027

Adjunctive major
depressive
disorderUSIn Phase 2/3 studies

Generalized
Anxiety Disorder

US
Japan

In Phase 2/3 studies

Schizophrenia⇒ Target market launch in FY 2024

Expand indications tobecome blockbusters that beat Latuda

Leverage open innovation to deliver globally new value thatcan only be achieved through regenerative medicine
Planned indications

Parkinson’s
disease(Designated as a
“SAKIGAKE”)

Detachment of
retinal pigment
epitheliumGeographyJapan

Development status and target for launch

In Phase 1/2 studies(investigator-initiated clinical study)＊⇒ Target market launch in FY 2024

US

Preparing to begin clinical studies

Japan

Preparing to begin clinical studies ＊⇒ Target market launch in FY 2025

Fully ramp up Japan business by FY 2027 to reachbusiness scale of more than 100 bn. yen globally inthe 2030s＊Sumitomo Pharma targets. Not agreed to by alliance partners.

16

Summary of Profit Growth Drivers (All Sectors)
Although the negative impact from the Latuda cliff is large overall, bolster growth businesses
and implement business reforms to return to a growth trajectory looking out to FY2024.
Bolster growth businesses

Business reform and rationalization

Expand sale of 3 new
drugs in Pharmaceuticals

Regenerative agriculture,
Products for semiconductor
applications

Reorganization of NA subsidiaries, display materials,
Caprolactam, SBR in Singapore,
EPDM, dyestuffs, chemical fertilizers, etc.

Revenues from 3 new drugs
200+ bn. yen

50 bn. Yen（Billions of yen）
300

75 bn. yen

Core Operating Income

YYY億円

200

次世代事業

100

0

2018
End
of 2
前々中期
plans ago
最終年度

2021
End
of
前中期
Previous plan
最終年度

2022

2023

Forecast
予想

2024

202X

（FY）

Plan
計画

17

Improve financial standing：Interest-bearing liabilities and debt to equity ratio
Aiming for a debt-to-equity ratio in the 0.7X range by the end of FY 2024 based on thethree measures.

（ Billions of yen ）1,600①②AssetReducedinvestments
by carefully①Reduced investments
efficiencies③Globalcash management
selecting projects② Asset efficiencies③ Introduction of global cash management （times）
Interest-bearing liabilities
1.6

Cash and cash Equivalent
D/E ratio

1,400

1.4

1,200

1.2

1,000

1.0

800

0.8

600

0.6

400

0.4

200

0.2

0

0.0
(FY)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

(Forecast)

2024(Forecast)18

Shareholder returns
FY2023: Forecasting annual dividend of 12 yen per share
Aim to achieve earnings power to maintain a stable 24+ yen per share dividend
中間配当（左軸）Interim dividend(leftaxis)

期末配当（左軸）
Commemorative
dividend(left axis)

記念配当等（左軸）Year-end
dividend(left axis)

親会社の所有者に帰属する当期利益（右軸）Net Income Attributable to Owners of Parent(right axis)（Yen）（ Billions of yen ）

25
20

12
134

15

11

2
3

3

5
6

0

6

6

6

6

77

52
37

118

7

10

11

11

9

31

2014

2015

2016

2017

2018

2019

39.8

28.2

28.1

29.9

26.9

30.5

89.9

46

6

80

6

40
10

7

2021
24.2

160
120

12

10

2020
53.3

24 yen per share

6

6

2013

J-GAAP

Aim for annual

7

81

10

14

162

200

2022
421.2

2023（Forecast）
196.2

0

202X （FY）

Dividend payout ratio（%）

IFRS
19

Enhancement of Enterprise Value
Enhance enterprise value by improving earnings power to reach our goals(Billions of yen)

(％)

250

Net Income Attributable to Owners of the Parent

ROI (Company total)

ROI (4 segments excl Pharma)

ROI (Pharma)

18.0

12.0

200

Where wewant to be
Achieve the following
on a stable basis

ROE

6.0

150

Over 10%
ROI

100

50

0

2016

2017

2018

2019

2020

2021

2022

2023

(Forecast)2024(Plan)

202X (FY)0.0Over 7%-6.0

Debt-to-equity
ratio
Approx. 0.7 times-12.0

Approx. 30%
dividend
payout ratio

20

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’sability to continue to win acceptance for its products in these highly competitive markets;and movements of currency exchange rates.