ProfileStrategyFoundation

Sanyo Chemical Group Value Creation Process
Six material issues
Externalenvironment

VisionMaterial issues onbusiness domain

Grow into a global, unique, and highly profitable company

Society we wantto achieve

where every employee feels pride and satisfaction from his/her work

Conceptual diagram of “WakuWaku Management”
CN

WakuWaku Management

Interface Innovator

Outcome

DEI● Job Satisfaction● Free Atmosphere● Bright, Pleasantand Positive

Interface Control Technology● Creation of New Business Model● Link People to People● Creation of Innovation● Providing Solutions● Beyond the Boundaries ofChemistry●“●QOL

Improve QOL by performance through chemistry

One TeamPassion● ComfortableWorkplace● Pride and DNA● Flexible WorkStyles●Material issues onmanagement domain
InNew Medium-Term Management Plan (FY2023–FY2025)
Basic Policies

WakuWaku” of Everyone● “WakuWaku Company”● “WakuWaku” Inﬂuence● Support the Environment● Support Diversity● Support People and TheirLives●Operating profit composition ratio

47％

36％

Reformation ofExisting Business

GlobalDeployment

61％

Toward the Future Beyond 2025
Solutions toSocial Issues

New Growth Path

Domestic

OverseasDomestic

53％

39％

Initiatives toSupport Growth

Overseas

47％

10.0％

Basic products

Basic products

FY2021: 11.8 billion yen

FY2025 QuantitativeTargets
Operating profit:

15 billion yen
Operating profit ratio:

7.5％

53％

64％

RM

Conduct the risk management thoroughly by strengthening the Guardian function

ROIC:

High-value-added
products

High-value-added
products

Business Strategy
Growth fromCore Business

50 billion yen

Transformation of Business Portfolio

HCDevelop human resources
and improve work environment by recognizing diversity

Operating profit:

Establish a better society
through our corporate activities

Create innovations bysupporting value creationof industry, culture, andeducation

FY2030 QuantitativeTargets

Company mission

Achieve carbon neutrality as
Interface Innovator

ROIC:

FY2025: 15.0 billion yen

7.0％

TMImplement challenge-oriented and transparent management

Financial capital

Human capital

Shareholders’ equity: 132.3 billion yen
Liabilities: 53.1 billion yen

Number of employees: 2,089

Manufactured capital(production site)

Client companies
Business partners
Subcontractors
Universities / Research institutes

Intellectual capital
R&D expenses: 5.6 billion yen
R&D personnel: 419
Number of patent applications: 292

9Sanyo Chemical Group Integrated Report 2023

×Social and relationship capital

Natural capitalRaw materials: 561,000 tons
Energy consumption: 123,000 kL
Water consumption: 4.33 million m2

OutputProcurement

Production

Logistics

Petroleum andAutomotives

Approx. 3,000 types
Plastics andTextiles

Information andElectrics/Electronics

Environmental
Protection, Construction and Others

Strength (surfactant technology)
GovernanceValue to shareholders
Payout ratio: 66%
ROE: 3.9%

Marketing

Reportable segments by market
Toiletries andHealth Care

A society where
everyone can shinewith their personality

Value creation (FY2022)

Value chain
Order

A society wherepeople can live
healthily and safely

Sustainable Management

Business model

Input (FY2022)

Amount of investment in plant andequipment: 12 billion yen
Production sites: Japan 5 /China 2 / South Korea 2 /Thailand 1 / Malaysia 1 / U.S. 1

WakuWaku Management

An environment-friendly
circular-oriented societyof performance chemicals

Value to society
Contribution to carbon neutrality
Improvement of QOL
Creation of industrial, cultural, and educationalinnovation

Value to the company
Operating profit: 8.4 billion yen
Cash flows from operating activities: 10.8 billion yen
Improvement of employee job satisfaction andengagement

Sanyo Chemical Group Integrated Report 202310