Investors’ Meeting for FY2023
1st Half Financial Results,
Management Priorities andBusiness Strategies
Keiichi Iwata – President
November 1, 2023

Change and Innovation~ with thePower of Chemistry ~1. FY2023 Full Year Business
Performance Forecast04

2. Immediate-term, Concentrated
Measures to Improve Business
Performance11

3. Fundamental StructuralReforms

20(Appendices)26

Executive Summary
FY2023 business performance FY2023 H1 business performance Core operating income negative 96.7 bn.
yen. Net income negative 76.3 bn. yen.
 Revised downward full year forecast: Core operating income negative 70 bn.
yen. Net income negative 95 bn. yen.
Immediate-term, Concentrated Measures to Improve Business Performance Moving forward with immediate-term, concentrated measures to improvebusiness performance in light of recent results Deliver V-shaped recovery in FY2024 and strengthen our financial standing Generate 500 bn. yen in cash and achieve a 50 bn. yen contribution to earnings

Fundamental Structural Reforms
 We have started fundamental structural reforms where no ground is sacred First step is to reorganize Essential Chemicals & Plastics businesses in Japan Announce outline of fundamental structural reforms in the beginning ofFY2024 and release new Corporate Business Plan in the middle of FY2024
3

Section1

FY2023 Full Year Business
Performance Forecast

FY2023 Performance Forecast vs FY2023 Forecast (May)(Billions of yen)

FY2023
Forecast(May)FY2023
Forecast

2,900.02,700.0

Core Operating Income

40.0

-70.0

-110.0 See next slide

Non-recurring Items

-20.0

-55.0

-35.0 etc.

-123.7

Operating Income(IFRS）

20.0-125.0-145.0-31.0

Finance Income/expenses

-20.0

5.0

Sales RevenueMethionine impairment losses,

25.0 FX gain/loss

2,895.3
92.8

31.2

40.0

5.0

53.9

10.0

-95.0

-105.0

7.0

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

Exchange rate

¥135.00/$¥143.03/$¥135.50/$Net Income Attributable to
Owners of the Parent

35.0

Reduced sales on delayed-200.0 recovery in demand, etc.

FY2022
Actual-47.1

Net income attributable tonon-controlling interests-15.0

Reasons for change

10.0

Taxes

-25.0

Change5FY2023 Core Operating Income by Sector vs FY2023 Forecast (May)(Billions of yen)

FY2023
Forecast(May)FY2023
Forecast

ChangeReasons for change

FY2022
Actual-68.0

Trade terms and conditions worsened,and shipments declined on delayed
recovery in demand-34.2

20-11.0

Reduced shipments in resorcinoland heat-resistant separators

15.2

33.0

-5.0

Reduced shipments insemiconductor materials

47.6

Reduced shipments in crop protection
products
Worsened trade terms and conditions
in methionine

57.3

Changes in exchange rate
assumptions

16.2

Essential Chemicals& Plastics

-7.0

-75.0

Energy & Functional
Materials

13.0

IT-related
Chemicals

38.0

Health & CropSciences

62.0

40.0

-22.0

Pharmaceuticals

-61.0

-69.0

-8.0

Others

-5.0

-1.0

4.0

-9.3

Total40.0-70.0-110.092.86

About FY2023 Business Performance Forecasts
Core Operating Income (Bn. yen)

Situation

Evaluation/Action
Little hope for substantial
improvement to market prices→ Launch structural reforms

Essential Chemicals& Plastics-75

 PetroRabigh: Historically low margin, scheduled maintenance Singapore: Low margins and depressed demand from China
 Japan: Delayed selling price adjustments to reflect spike in raw materials
and feedstock. Reduced demand.

Pharmaceuticals-69

 Three core products underperforming due to delays in winning share Implement rationalization through reorganization of North American
subsidiaries

More improvements need to be
implemented
Back up SMP initiatives

Health & CropSciences40

 Booked impairment loss on deteriorating business performance inmethionine In South American crop protection products, a reversion from last year's
spike in demand coupled with our reductions to inventories

Implementing measures tostrengthen competitiveness
Reduced shipments of crop
protection products in S. America is
temporary

IT-relatedChemicals

33

 In display materials, competition is intensifying in materials for large LCDs
 Market for semiconductor materials at a standstill for now

Rebuilding lines for large panels
Over the medium-term,semiconductors is a growth area2

 Shipments stagnant in electrical and electronic products due to reversion
from stay-at-home demand In automotive-related fields, supply chain inventory adjustments havebeen delayed

Impact from inventory reductions
due to production adjustments

Energy &Functional
Materials

7

FY2023 Core Operating Income by Sector(Difference between 1st and 2nd Half）
FY2023
1st HalfActual(Billions of yen)

FY2023
2nd Half
Forecast

ChangeReasons for change

Essential Chemicals &Plastics

-44.4

-30.6

13.8

Trade terms and conditions to improve

Energy & Functional
Materials

6.5-4.5-10.9

Adjust production levels to reduce inventories.
Push expenses into H2.

IT-related Chemicals

17.8

15.2

-2.7

Shipments to decline on reduced demand

Health & Crop
Sciences

-7.6

47.6

55.1

Expand sales of our products, such as INDIFLIN
Shipments to rise as we enter phase of increased
demand for crop protection products in North
America and JapanPharmaceuticals

-65.5

-3.5

62.0

Expand sales of three core products and reap
benefits of rationalization in North America

Others

-3.5

2.5

6.1

Total

-96.7

26.7

123.3
8

Shareholder returns
We maintain our forecast annual dividend of 12 yen per share for FY2023
Interim dividend(left axis)
Commemorative dividend(left axis)（Yen）

Year-end dividend(left axis)
Net Income Attributable to Owners of Parent(right axis)

25

180

162.1
133.8

20
81.5
15

52.2

37.0
103

14

118.0

1211

76.5

62

3

30.9
97

120

7.0

101111101266672013

2014

2015

2016

2017

2018

2019

2020

2021

2022

39.8

28.2

28.1

29.9

26.9

30.5

89.9

53.3

24.2

421.2

J-GAAP

60

646.0

60

6-60

650

（ Billions of yen ）

62023

-95.0

（Forecast）―-120（FY）

Dividend
payout ratio
（%）

IFRS
9

Executive compensation
Given the current harsh reality of business performance,
１．Officers will receive no bonus for FY2023(based on the currently revised business performance forecast for FY2023)
２．The Chairman of the Board and the Representative Director & President
will voluntarily return their executive compensation as follows:（１）Amount to be returned
10% of base monthly salary（２）Effective duration
The 5 months from November 2023 through March 2024
10Section

2

Immediate-term,ConcentratedMeasures to Improve
Business PerformanceSummary of Immediate-term, Concentrated Measures to Improve Business Performance

The goal is to achieve a solid V-shaped recovery in FY2024 and strengthen our financial standing tosupport future fundamental structural reforms
Immediate-term, Concentrated Measures to Improve Business Performance

In all, generate

500 bn. yen in cash and improve earnings by 50 bn. yen

Rebuild businesses

Generate 120 bn. yen in cash and contribute50 bn. yen to earnings※

Reduce inventories

Cut about 150 bn. yen from inventories by
the end of FY 24 from the end of FY 23 H1.

More selective
investments

Free up 100 bn. yen even as we concentrate
investments in growth areas

Sell assets andleverage freed-up
capitalReduce cross-shareholdings by 70% etc.,
generate 150 bn. yen※ Core Operating Income

12Interest-bearing liabilities and debt to equity ratio
Funds freed up from immediate-term, concentrated measures to improve businessperformance Add on more projects to solidly drive towards debt-to-equity ratio in 0.7 range(Billions of yen)

1,550
1,500
1,450
1,400
1,350
1,300
1,250
1,200
1,150
1,100
1,050
1,000

Interest-bearing liabilities(Times)Immediate-term,Concentrated Measures 1.5
1.4
to Improve Business
Performance
1.3

D/E ratio

1.2
1.1

Add on further
1.0
reductions to0.9
0.8
0.7

Realize 0.7 range
by FY2025 0.6
0.5

2019

2020

2021

2022

2023

(Forecast)

2024

0.4
(FY)

(Plan)

13Rebuild businesses

Targeting about 30 business units for disposition or rebuilding
Perspective on rebuilding
Best owner

Exit or shrink money-losing businesses

30Projects underway targeting aboutbusiness units to improveearnings over the immediate-term
Polyolefin business in Japan

Downstream peripheral businesses
inside and outside Japan

Display-related materials

Methionine businessBusinesses related to overseas
crop protection

Agricultural materials businesses

Essential Chemicals & Plastics

And more
Energy & Functional Materials

IT-related Chemicals

Health & Crop Sciences

Scope in terms of sales and expected benefit (by the FY2024)

Scope in sales: Approx. 270 bn. yen

Cash generation+120 bn. yen※Contribution to earnings+50 bn. yen※ Core Operating Income14

Rebuild businesses: Display Materials BusinessCurrently pursuing reorganization of the display materials business to further upgrade the portfolio
Present challenges

Upgrade portfolio
in the polarizer
business

Reform and strengthen
competitiveness atDongwoo Fine-Chem

Progress and results to date

Polarizers for large LCDs
 Close lines equal to about 30% ofproduction capacity (Green-lighted theclosure of three front-end lines)
 Also, convert one line toOLED/automotive

Touch sensor andcolor filter plant Completely exit color filters
 Major reforms to touch sensor
production regime (Consolidate intofewer than half of existing lines) Conversion to telecommunications
materials underway

Path forward Reorganization of remaining lines
for large LCDs under study Shift resources to cutting-edge
fields such as OLED/automotive

 Focus on development oftelecommunications materials
 Establish development site
outside Seoul (S. Korea)
 Expand scale by deepening ties
between that new site and otherdevelopment sites in S. Koreaand Japan15

Rebuild businesses: Methionine Business

Reorganize lines to strengthen cost competitiveness and improve P/LBusiness Environment
DemandDemand growing
around 5% annually

As new lines stand up in China
Supply and elsewhere, other lines are
cutting or halting production

Cost

Energy costs remain highStrengthen competitivenessA new round of closures at lesscompetitive lines※

Study cutting up to 30% by the end of FY2024※ Vs. end of FY2018

Methionine
Production Capacity

Cut about Cut about20%30%

Book all impairment losses due toharsh business environment by the end ofMarch 2023 or September 2023
Reduces depreciation burden※about 8 bn. yen per year

Bolster costcompetitiveness250k
End of FY2018 End of FY2023

End of FY2024(※ Vs. FY2022）
16

Strengthen financial standing
More selective investments

Reduce inventories

Nearly all of 300 bn. yen in strategic investments

by the end of FY 24+150 bn. yen(Compared to the end of FY2023 Q2)Achieve in FY2023 to lay groundwork for
V-shaped recovery
Initiatives

 Reduce safety inventory levels
 Leverage DX to strengthen inventorymanagement (visualization of orders status, etc.)(Billions of yen)

1,000

800

784.4 bn. yen

600

Cumulative FY2022 through FY2024
Capex, investments and loans(Billions of yen)800

650.0 bn. yen

400

750.0 bn. yen

600

600.0 bn. yen

End ofSeptember 23

End of March 25

0

Downselect capex(based on the timing of thegreen-light decision)

50 bn. yen

Shrink investments
and loans (cash basis)

400
200

2000

Focus investments into growth areas such as life
sciences and high-performance materials
At the same time, rein in investments overallCorporate
Business Plan

Latest outlook+100 bn. yen+ represents cash increase

17Strengthen financial standing
Sell assets and leverage surplus funds<By the end of FY2024>

Approx.

Sell cross-shareholdings+50 bn. yen Keep minimum positions in strategicallyimportant names only
 Future direction: zero cross-shareholdings(Billions of yen)1008060Vs. end of FY2022
70% reduction

40200

End of FY2018

End of FY2022

Post disposition+150 bn. yen

Leverage surplus funds
Introduce CMS, etc.

+70 bn. yen

Cash management system Leverage group financing
globally to make effective
use of surplus funds fromoverseas groupcompanies

Sale of other assets +30 bn. yen+ represents cash increase18

Outlook for FY2024 Business Performance
Announced May 15

V-shaped recovery in FY2024 to 200 bn. yen core operating income

Bolster growth businesses

Reforms and rationalization measures

 Promote regenerative agriculture Reorganization of display materials

 Expand sales of INDIFLIN in South America Exit or shrink unprofitable businesses Add capacity in photoresist in Japan andSouth Korea

 Rationalization driven by yield improvements,etc.

 Expand sales of high-performance materials

 Drive work efficiencies leveraging DX

What has changed since May and what we are doing about it
The business environment deteriorated
 Prolonged stagnation of China's economy
 Concerns about delays in recovery inpetrochemical market prices
 Fears about delays in expanding sales of threecore pharmaceutical products

Measures to improve business performance 50 bn. yen in immediate-term concentrated
measures to improve business performance Add on more projects to improve earnings further19

Section

3

Fundamental
Structural Reforms

Fundamental structural reforms: No ground is sacred
Start structural reforms aimed at rebirth into a specialty chemicals company
Main points

Clarify path toward
growthBecome a company that will
have a presence in the next
generation

 Essential Chemicals & Plastics businesses (Japan, Rabigh, Singapore) Businesses related to cutting-edge pharmaceuticals
 Enhanced growth strategies for IT-related Chemicals and Health & Crop Sciences Discern which technologies and businesses will drive future growth21

Fundamental structural reforms: No ground is sacred
Aim for rebirth into a specialty chemicals company
Create and deliver value through technologies in Chemistry (Science)
Technologies withan edge&Sustainable productgroups&Delivery ofsolutions

Chemical technologies X Biotechnologies

Regenerative agriculture

High-performancematerials

Semiconductor materials

Reduction of environmental
impact22

Fundamental structural reforms round 1:

Reorganize Essential Chemicals & Plastics businesses in Japan

Promote corporate ties both upstream and downstream
VisionStrengthen competitiveness with a focus on reducing environmental impact

 New ethylene plant capacity from overseas isflowing into the Japanese market
 Convert to carbon neutral products

Challenges

Upstream

Need to secure stable earnings by strengthening
competitiveness through ties with Japan’s
petrochemicals industry

Naphtha

Keiyo Ethylene JV(we own 45%)

Ethylene, propylene

Downs
tream

 Convert to carbon neutral feedstock Rationalization at existing ethylene plant※ Our ethylene plant was shuttered in 2015

Chiba Works
polyolefin plant

Accelerate studies for corporate alliancesin polyolefins

Polyethylene, Polypropylene
23Fundamental structural reforms round 1:

Reorganize Essential Chemicals & Plastics businesses in Japan
Upstream, leverage corporate alliances to achieve joint operations and carbon neutrality at the ethylene plant

Convert to carbon neutral raw
materials
Bioethanol-based ethylene and propylene plant

Start studies for new plant

Feedstock

Bioethanol

ETEP

EthanoltoEthylene/propylene

 Consider joint operation of new plant Aim to complete by 2030

Ethylene・Propylene

Rationalization at existing
ethylene plantStudy potential for joint operationof existing ethylene plant
Domestic ethylene production capacity:
About 6.8M tons
Largest in Japan

About 2M tons of that is at Keiyo

Substantial room for rationalization: About 30%
 Study rationalization potential from involving multiple
companies in joint operation
 Reduce CO2 emissions and accelerate GX through fuelconversion to ammonia

Advance initiatives toward fundamental structural reforms to upstream businesses as part of private-public GX
investments based on the government’s GX promotion strategy
24

Epilogue

Our new Corporate Business Plan will draw a roadmap toward our rebirth into a specialty
chemicals company
Futureannouncements
November 2023

Immediate-term measures toimprove business performance

Beginning ofFY2024Outline of fundamental
structural reforms

Middle of FY2024

New Corporate Business
Plan announced25

(Appendices)FY2023 1st Half Performance Actual vs FY2022 1st Half Actual(Billions of yen)

FY2022
1st HalfActual

FY2023
1st HalfActual

Change1,528.6

1,186.9-341.7 demandCore Operating Income

115.6

-96.7

-212.3 See next slide.

Non-recurring Items

-55.1

-37.0

Operating Income (IFRS)

60.6-133.7

Finance income/expenses

66.2

29.9

-36.3 FX gain/lossーTaxes-53.7-3.3

50.5 P/L worsenedー

Net income attributable to noncontrolling interests

8.0

30.7

22.7 Increased loss at subsidiaries

ーNet Income Attributable toOwners of the Parent

81.1

-76.3

Naphtha price¥83,800/kl¥65,500/kl¥70,000/kl

Exchange rate

¥134.03/$¥141.06/$¥135.00/$

Sales Revenue

Reasons for change

FY2023 1st Half
Forecast(May)

Lower market prices, reduced

1,370.0

Large impairment loss in

18.0 Pharmaceuticals last year
-194.2-157.4

-30.0
ー

-45.0

-30.027

FY2023 1st Half Core Operating Income by Sector vs FY2022 1st Half Actual

Essential Chemicals &Plastics
Energy & FunctionalMaterials

IT-related Chemicals(Billions of yen)

FY2022
1st Half
ActualFY2023
1st Half
Actual

23.3

-44.4

-67.7 conditions and reduced shipments

13.4

6.5

26.4

17.8

ChangeReasons for change

FY2023 1st Half
Forecast(May)

Deteriorated trade terms and-17.0-7.0 conditions and reduced shipments

Deteriorated trade terms and5.0-8.6 Reduced shipments

12.0

Reduced shipments of crop protection
products in South America due totemporary factors
Deteriorated trade terms and conditions
in methionine

Health & CropSciences

36.3

-7.6

-43.9

Pharmaceuticals25.2-65.5-90.7 Decreased sales of Latuda

Others

-9.0

-3.5

5.5

-5.0

Total

115.6

-96.7

-212.3-30.0

Difference vs.
May forecast

24.0
-49.0

Essential Chemicals & Plastics (down 27.4 bn. yen): Deteriorated trade terms and conditions and reduced
shipments
Health & Crop Sciences (down 31.6 bn. yen): Reduced shipments of crop protection products in SouthAmerica due to temporary factors and deteriorated trade terms and conditions in methionine

28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 andinvolve 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.

29