Apr. 1, 2024
ADEKA CORPORATIONADEKA Group Mid-Term Management Plan “ADX 2026”－ Pursuing a growth strategy of promoting sustainability initiatives
to achieve greater social value and continuous growth －ADEKA CORPORATION (President and Chief Executive Officer: Hidetaka Shirozume,hereafter “ADEKA”) has formulated ADX 2026, a Mid-Term Management Plan for FY2024 toFY2026, and begins implementing the plan in April this year.
The ADX 2026 Mid-Term Management Plan defines its three-year period as a period forcontinuing the transformation to achieve what ADEKA Groupʼs vision for 2030, as stated in
ADEKA VISION 2030 — An Innovative Company Contributing to a Sustainable Futureand Affluent Lifestyles —. It will endeavor to increase Eco-friendly products and to reduce
its greenhouse gas (GHG) emissions towards attaining carbon neutrality. On the basis of amore resilient management foundation, it will seek to continuously increase its corporate value.

ADX 2026 Targets
Operating profit
Financialindicators（FY2026）

Sustainability
indicators *1（FY2026）

JPY 53 billion(Net sales: JPY 500 billion)

Ｒ Ｏ Ｅ

11.0%

ＲＯＩＣ

10.5%JPY 115 billion

Sales ofEco-friendly products(2.5 folds the FY2019 level)

GHG emissions

199 thousand t-CO2e *2(13% reduction the FY2013 level)

6% or more

Ratio of women inmanagerial positions
Capital investment amount
Dividend policy（Dividend payout ratio）（non-consolidated)

JPY 75 billion(3 years)

40% or more *3*1 Indicators associated with the ＡＤＥＫＡ Group Sustainability Priority Issues*2 A unit for indicating different GHG emissions in a uniform manner by converting them into
CO2 equivalent amounts.
*3 Based on our comprehensive consideration of appropriate shareholder returns,maintaining stable dividends as our policy.

〈Continued on the next page〉

1．Our Vision for 2030 (Established in Apr. 2021)

The target year of the Sustainable Development Goals (SDGs) is 2030. In 2030, ADEKA
Group aspires to be a corporate entity that is helping to build a sustainable future andsupporting people's affluent lifestyles by leading the world with its innovative technologies
and expanding its wide range of businesses worldwide.

2．ADX 2026, Mid-Term Management Plan
(1) Name『 ADX 2026 』 （ADX is pronounced “ədéks”）
ADX denotes ADEKA Transformation. It is ADEKAʼs intent to transform itself forachieving its continuous growth.
ADX 2026 defines its three-year period as a period for carrying out continued
transformation with a view towards achieving ADEKA Group's vision for 2030,
ADEKA VISION 2030 — An Innovative Company Contributing to a Sustainable
Future and Affluent Lifestyles —.
(2) Fundamental policy

Promoting sustainability initiatives for
greater social value and continuous growth– Earnings power, sustainability and a resilient management foundation –The ADEKA Group will construct a resilient management foundation that responds flexibly tochanges. Seeing the expansion of Eco-friendly products as an opportunity for growth, it willincrease its earnings strength and achieve continuous growth.

〈Continued on the next page〉

(3) Key strategies
In a bid for greater corporate value through the co-creation of social value and profit,
the ADEKA Group will work to transition to a high profitability structure, toincrease Eco-friendly products and reduce of GHG emissions through businessstructure transformation and to establish a resilient management foundation.
 Transition to a high profitability structure
While proactively introducing management resources to electronics and IT materials as arevenue pillar, the ADEKA Group will restructure its businesses looking ahead to the future.
It will carry out growth strategies for individual businesses to increase their profitability,
expanding new products and driving the growth of new businesses, seeing them as pillarsof future growth. It will also carry out measures aimed at improving capital efficiency inorder to increase its earnings strength. By strengthening our earning power, we will aimfor business growth with a focus on profit rather than expansion of scale.

 Increase Eco-friendly products and reduce of GHG emissions through businessstructure transformation
The ADEKA Group will continue with expansion and the creation of Eco-friendly products
and will pursue growth strategies to integrate opportunities for addressing social issues. To
attain carbon neutrality, its individual businesses will work to cut GHG emissions to help
build a sustainable society. It will move ahead with diversity, equity and inclusion (DE&I).
It will create opportunities for its diverse human resources to play active roles and it willconduct human rights due diligence to ensure respect for human rights in its overall supply
chain.

 Establish a resilient management foundation
To constantly produce strategic products in individual businesses, the ADEKA Group will
understand and manage important raw materials and build a resilient supply chain
ensuring business continuity even at times of significant change in the external
environment. It will develop and utilize human capital in accordance with the growthstages of each business. It will introduce digital technologies to carry out operational andbusiness reforms.
Details of the ADX 2026 MTMP will be explained in the FY2023 Financial Results Briefing.
(The materials will be made available on ＡＤＥＫＡ website on May 29, 2024.)
ＡＤＥＫＡ website：https://www.adeka.co.jp/en/■ Contacts
ADEKA CORPORATION
Publicity ＆ Administration group , Legal Affairs ＆ Publicity Department
E-mail: somu@adeka.co.jp
Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only.
In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Positioning

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"

ＡＤＸ２０２６A three-year period forcarrying out continued
transformation

2nd stage toward the attainment of ADEKA VISION 2030

A three-year period for increasing earnings strength witha focus on profit and efficiency

Carrying out continued transformation a view towards achieving
ADEKA Group's vision for 2030

Back cast
ADX 2026
ADX 2023

Social Value + Economic Value

Pursue a growth strategy ofpromoting sustainability initiatives
Apr. 1, 2024 Announcement of MTMP "ADX 2026"

1Fundamental policy

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"

Promoting sustainability initiatives for
greater social value and continuous– Earnings power, sustainability and a resilient management foundation –•Enhancing earnings power to achieve continued growthwith a focus on profit.

•Carry out efforts for sustainability and implement growthstrategies to capture opportunities for solving social issues.

•Establish a resilient management foundation to take swift
actions in a highly uncertain environment.

Apr. 1, 2024 Announcement of MTMP "ADX 2026"

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TargetSupplementary materials forthe MTMP “ＡＤＸ ２０２６"

Financialindicators（FY2026）

Sustainabilityindicators（FY2026）

Operating profit

JPY 53 billion(Net sales: JPY 500 billion)

ROE

11.0%

ROIC

10.5%
JPY 115 billion

Sales ofEco-friendly products(2.5 folds the FY2019 level)

GHG emissions

199 thousand t-CO2e *2

Ratio of women in
managerial positions(13% reduction the FY2013 level)

６％ or more

（non-consolidated)

Capital investment amountJPY 75 billion

Dividend policy（Dividend payout ratio）

40% or more *3(3 years)*1 Indicators associated with the ＡＤＥＫＡ Group Sustainability Priority Issues*2 A unit for indicating different GHG emissions in a uniform manner by converting them into CO2 equivalent amounts.
*3 Based on our comprehensive consideration of appropriate shareholder returns, maintaining stable dividends as our policy.
Apr. 1, 2024 Announcement of MTMP "ADX 2026"

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Key strategies
Key strategies１

Transition to a high profitabilitystructure

Supplementary materials forthe MTMP “ＡＤＸ ２０２６"Promote new products*２ and implement new businesses
Increase capital efficiency

Expand and create Eco-friendly productsReduce GHG＊3 emissions with a view towards carbon neutrality

Address ADEKA Group’s priority sustainability issues

Strengthen supply chains

Key strategies３

Establish a resilient managementfoundation

Expand strategic products*1


Key strategies２

Increase Eco-friendly products andreduce of GHG emissions throughbusiness structure transformation

Enlarge electronics and IT materials and restructure
underperforming businessesEnhance human capital
Promote DX*1 25 groups of products with potential for development into growth drivers and with positive impacts on operating profit and net sales*2 Determined according to predetermined standards, such as selling period and revenue standard not based on a single year.
*3 GHG：Greenhouse gas
Apr. 1, 2024 Announcement of MTMP "ADX 2026"

4Performance Targets by Segment

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"

FY2026 Plan
（Unit：JPY 100 million ）Net sales

ADEKA Group Total

5,000

Chemicals

2,763

Polymer Additives
Electronics and IT
materials
Functional chemicals

Food productsLife Science
Other

1,332
626
805

928
1,200106

Operatingprofit（Ref.）FY2023 Forecast
OPMNet sales

Operatingprofit

As of Feb. 2024

OPM

530

10.6%

4,100

345

8.4%

364

13.2%

2,120

236

11.1%

8.2%

1,020

80

7.8%

24.4%

400

95

23.8%

12.7%

700

61

8.7%

6.7%

860

35

4.1%

8.1%

1,040

4.7%

80

109
153
102

62
97
561
13

5.9%
16.3%

* Figures are expressed in units of 100 million yen and have been rounded off.
Apr. 1, 2024 Announcement of MTMP "ADX 2026"

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Key strategies１｜

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"

Expand strategic products and new products

Sales of New products

Sales of strategic products （25 Product Groups）（Unit：JPY 100 million ）Polymer Additives
One-pack granule additive etc.

Plan2,125（CAGR 13.2％ or higher）

1,466･･･７Product Groups

Electronics and IT materials
ALD precursors for Semiconductor etc.

（Unit：JPY 100 million ）Plan･･･５Product Groups

590

Functional chemicals
Lubricant and fuel additives etc.

*A plan to expand sales significantly in Electronics and ITmaterials and in Food products, among other areas･･･４Product Groups

Food products
Oils and fats for the bakery industry etc.

（CAGR 23.7％ or higher）

312

Electronics and IT materials

Semiconductor materialsFood products

Functional oils and fats*･･･４Product Groups

Life Science
FY2023
Estimate

FY2026（Final year）

Herbicides for farmland etc.

･･･５Product Groups

FY2023
Estimate

FY2026（Final year）* The estimate for FY2023 represents the figure after revision for both strategic products and new products.
* Figures are expressed in units of 100 million yen.
Apr. 1, 2024 Announcement of MTMP "ADX 2026"

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Key strategies２｜

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"

Expand and create Eco-friendly products
Provide Eco-friendly products to help solve social issues andexpand them to achieve business growth and sustainability
ADX 2026（Final year）

Sales of Eco-friendly products（Unit：JPY 100 million ）『ＡＤＸ２０２６』Eco-friendly products■ Lead free stabilizers■ Nucleating agent for automotives

2,014

Plan

■ Intumescent-type flame retardant

Polymer additives■ Environment-Friendly Polymer Additives■ UV curable materials

NEWElectronics & IT materials■ Recycled materials for circuit production process■ ALD precursors for Semiconductor NEW1,150■ Semiconductor related materials

NEW■ Water-based coating materials

749*■ Bonding materials

Functional chemicals■ Lubricants for the reduction of friction■ Materials for the reduction of SOx■ Products with RSPO and other certifications
FY2023

Estimate

FY2024FY2025

PlanFY2026

FY2030Target* The estimates for FY2023 represent figures after revision (addition) of Eco-friendly products.
* Figures are expressed in units of 100 million yen.

■ Products for the reduction of food waste

Food products■ Plant-based foods■ Nursery box application agents for paddy rice

Life ScienceNEW■ Battery materials
Apr. 1, 2024 Announcement of MTMP "ADX 2026"Other7

Key strategies２｜

Reduce GHG emissions with a view towards CN

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"

Roadmap

Gather ideas for achieving carbon neutrality by 2050 from all ADEKA,

2050：Achieving Carbon Neutrality
2030：Reduce CO2e emissions by 46% compared to FY2013 (Scope 1+2)
GHG emissions

Plan（Unit：thousand t–CO2e）13％reduction(Compared to FY2013)

46％reduction

ADX 2026（Final year）

Plan

199 thousand t-CO2e

227(Compared to FY2013)199(13% reduction the FY2013 level)

FY2013ResultsFY2026（Final year）

123
FY2030TargetApr. 1, 2024 Announcement of MTMP "ADX 2026"

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Capital Investment Plan

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"

AmountTotal amount（Three-year period）
Polymer Additives
Electronics andIT materials
Plant
investment

Functional chemicals

750
62

158
44

Food products

101Life Science

42

Other50

Research investment*1

197

Common and others

92（general, sales, systems, etc.)

Japan-overseas ratio（%）
Japan

overseas

82.1%

17.9%

・Expenses for the construction of a new research building at Kuki and,・Including expenses for maintaining and replacing equipment

A plan to proactively introduce management resources tothe domain of electronics and IT materials
Materials for advancedsemiconductors• New materials for DRAMs• Logic semiconductor materials etc.

*1 Including expenses for the construction of a new research building in the Kuki R&D Laboratory (approx. 10 billion yen).
*2 Figures are expressed in units of 100 million yen.
Apr. 1, 2024 Announcement of MTMP "ADX 2026"

9Dividend policy

Supplementary materials for
the MTMP “ＡＤＸ ２０２６"『ＡＤＸ ２０２６』Dividend policy
Dividend payout ratio

Maintained More than

14040％

23.4%

23.5%

40200¥30¥3526.1%¥39FY2016

30.2%

27.1%

¥70
¥48

¥48

¥45FY2017

FY2026
40%
35%

30.5%

¥7030%¥8025%【We Planned】■Dividend payout ratio

20%

Maintained More than 30％

BEYOND 3000

STEP 3000-Ⅱ
FY2015

32.5%

45%

39.1%

A payout ratio
maintained 30％ level

Line: Dividend payout ratio
Bar: Dividend per share

80
60

42.9%

Based on our comprehensive consideration of appropriate shareholder returns,
maintaining stable dividends as our policy.

120100

A payout ratio over 40%

FY2018FY2019FY2020

ADX 2023
FY2021

FY2022

15%ADX 2026
FY2023

FY2026

Apr. 1, 2024 Announcement of MTMP "ADX 2026"

10%10Notes on Mid-Term Management Plan

Details of the ADX 2026 MTMP will be explained in
the FY2023 Financial Results Briefing(The materials will be made available on the ＡＤＥＫＡ website on May 29, 2024.)

The forecast performance and business plans specified in this material havebeen prepared based on information available as of the date of publication,
as well as on various assumptions.
Actual results may differ from these forecasts or plans depending on variousfactors that may arise hereafter.

Apr. 1, 2024 Announcement of MTMP "ADX 2026"

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