Investors' Meeting for
the Current Priority
Management Issues
and Business Strategy
Keiichi Iwata – President
April 30, 2024

Change and Innovation~ with thePower of Chemistry ~Table of Contents
Executive Summary(1) Agenda(2) Immediate-term, concentrated measures toimprove business performance(3) FY2024 performance forecast(4) Overview of fundamental structural reforms(5) Revival Strategy: Rebuild Sumitomo Pharma(6) Revival Strategy: Review positioning of Petro
Rabigh(7) Long-term vision(8) Positioning of new business areas within thegrowth strategy(9) Long-term targets(10) Timeline for growth03

1.

Discussion of the current state
and the results in FY2023

14

Immediate-term, concentrated measures
to improve business performance21

2. and the FY2024 performance forecast.
3.

Fundamental structural reforms(overview)

3-1. Revival strategy(1) Sumitomo Pharma(2) Petro Rabigh(3) Essential Chemicals business(4) Strengthen management base3-2. Growth strategy

32
36

46

(1) Innovative Solution Provider(2) By business domain

Path forward(Appendices)

60
61

2

Executive Summary

3

Executive Summary: (1) Agenda

Discussion of current state and performance trends
Core OIFY2023
FY2024-149
100

Net Income

-312
20

(Attributable tovaluation losses)(-170)(-3)

FY2023 ended with a major loss of 312 bn. yen.
Valuation losses accounted for 170 bn. yen of that loss.
 The greatest management challenge is to achieve a Vshaped recovery in FY2024.
Immediate-term, concentrated measures to improve business performance

Revising upward our cash generation target from 500 bn. yen to 600 bn. yen

Fundamental structural reforms
Revival  Sumitomo Pharma is leveraging capabilities across the corporate group to pursue rationalization and stop
the hemorrhaging ASAP. Aside from expanding sales of its 3 core products, all options are on the table tostrategyGrowth 
strategy resume growth.
About Petro Rabigh, a joint task force will be formed soon for intensive discussions to find optimal
strategies to improve PRC profitability.
Formulate a new growth strategy with the long-term aim to become an Innovative Solution Provider.
Agriculture and ICT as growth drivers. Concentrate management resources to target 100 bn. yen in Core
Operating Income from each by 2030.
Expand leading-edge medicine as next-generation growth area.
Shift direction of Petrochemicals to create value over the long run with technologies that reduce
environmental impact.

4

Executive Summary:(2) Immediate-term, concentrated measures to improve business performance

Add an incremental 100 bn. yen to 500 bn. yen cash generation target
Original targets
Cash generation (by the end of FY2024)
About 500 bn. yen

Current targets
Revise upward to600

bn. yen

Rebuildbusinesses

Cash generation: 120 bn. yen

Cash generation: Raise to 150 bn. yen

Reduceinventories

Reduction of approx. 150 bn. yen
vs. the end of FY2023 H1

75 bn. yen reduction as of the end. FY2023
Continue to target 150 bn. yen reduction by end of
FY2024More selective
investments

100 bn. yen reduction

Achieve 150 bn. yen reduction throughadditional down-selection

Sell shareholdings: 50 bn. yen

Raise to 60 bn. yen with additional dispositions
Line of sight into achieving 70 bn. yen Look forincremental opportunities
Add to 30 bn. yen with sale of wellness facilities(cash basis)

Sell assets andleverage
surplus funds

vs. Plan (3-yr cum.)Surplus funds: 70 bn. yen

Sale of other assets: 30 bn. yen

Currently achieved about

400 bn. yen

5

Executive Summary: (3) FY2024 performance forecastCore operating income will achieve a V-shaped recovery of 250 billion yen
Sumitomo Pharma:+134.0 bn. yen（Billions of yen）

 Thorough cost reduction and expand sales of 3 key products(Details below）

excl. Sumitomo Pharma:+85.0 bn. yen

immediate-term
concentrated
measures

FY2023excl.
Sumitomo
Pharma〈Effects of implemented projects〉: Total +66.0 bn. yen

FY2024

 Contribution to existing investment effects/Sales expansion：+33.0 bn. yen
Increased shipments in new crop protection products, etc.
Profit contribution from enhancements in semiconductor materials
 Cost reduction/rationalization：+33.0 bn. yen
Effects of business restructuring and production line reorganization(including impairment effects)〈Effects of business environment improvement, etc.〉: +19.0 bn. yen
Sumitomo
Pharma○Assumedexchange
rate US$：145 yen/$○ Profit and Loss Sensitivity[Company-wide]
1 yen/USD depreciation: +1.5 billion yen[PRC] A $1 improvement in the
petroleum refining margin: +8 billion yen

Petrochemical market prices to bottom out
Recovery of PRC scheduled maintenance and troubles in FY2023

Immediate-term concentrated measures: +30.0 bn
 Contribution of immediate-term, concentrated measures to improvebusiness performance
PRC：Petro Rabigh6

Executive Summary： (4) Overview of fundamental structural reforms

Stop the bleeding and rebuild with revival strategy, then aim for sustainable growth
based on new growth strategies.

Fundamental structural reforms
Revival strategy

Rebuild Sumitomo Pharma
Petrochemicals business
Review of positioning of Petro Rabighbusiness
Rebuild Japan and Singapore business

Growth strategy

Agrosolutions and ICT as two growth drivers
Agro & life
solutionsNew growth areas
Advanced medical
solutions

ICT solutions

Fundamental areas
Essential & green
materials

 Separate and reorganize Energy & Functional materials
sector Reorganize CDMO business of small molecule drugs

7

Executive Summary: (5) Revival Strategy: Rebuild Sumitomo Pharma

Quickly stop the bleeding while we consider all options to return to growth

Stop the bleeding

Integrated group

Return to growth

Shrink into a suitable cost structure
and turn profitable at the core
operating income level in FY2024

 Expand sales of 3 key products Thorough rationalization of SG&A
In
Work
closelywithspecialized
revitalization
and R&D expenses
parallel Integrated operations inregenerative medicine & celltherapies

team
Sumitomo
Chemical'sroleStrengthen
governance
Sumitomo Chemical provides financial support• Leverage knowledge
from third-party(debt guarantees)
corporate turnaround experts andsupport rationalization• Strengthen governance by dispatching
multiple management personnel• Financial support through debt
guarantees

 Develop two cancer drugs

Pursue best growth model

8

Executive Summary:(6) Revival Strategy: Review positioning of Petro Rabigh

Joint taskforce to be formed for intensive discussions to improve PRC profitability

Current
status•Symbolic project that represents partnership between Saudi Arabia and Japan•

Growing losses due to the changes in external environment (prolonged downturn in petroleum andpetrochemicals markets and revisions to official fixed feedstock and fuel prices)•

Divergence in strategic directions and business positioning between Sumitomo Chemical and Saudi
Aramco (Sumitomo Chemical is shifting away from commodity chemicals toward specialty chemicals
and has completed the transfer of technology to PRC, fulfilling its major role in the project)•

Sumitomo Chemical does not plan to provide PRC with additional funding that increases its
exposure to PRC’s performance

1st Step

Reached a mutual understanding with Saudi Aramco on PRC’s challenges

Next step

A joint task force will be formed soon for intensive discussions
to find optimal strategies to improve PRC profitability
9Executive Summary：（7）Long-term vision ~A company that solves social issues with innovative technology~

Innovative Solution Provider

Food

ICT

Healthcare

Achieve regenerative

Innovate IT

Spread leading-edge
medicine

Environment
Reduce environmental
impactMain technologies and product groups that support the solution（Top runner technologies and products are in red）

Biorationals
 Bio-stimulants
 Botanicals(natural pyrethroids)

Agro & life
solutions

G X
Green

 Cutting-edge resist(ArF immersion, EUV) Semiconductor chemicals
 Compound semiconductormaterials (GaN wafers)

 Regenerative medicine &cell therapies

 Chemical recycling(GI fund) Long-chain nucleic acid
(Guide RNA) CFP-TOMO

 RI diagnosis and therapies

 Materials recycling CDMO and Analysis CRO

ICT
solutions

Advanced medical
solutions

Important value-generation assets

D X

DigitalEssential & green
materials

B

X

Bio

10

Executive Summary:(8) Positioning of new business areas within the growth strategy

Clarify strategic positioning in each business domain. Be unique.

Growthdrivers

Agro & life solutions
ICT solutions

Former ICT + parts of E&FM

Position as our flagship domains and pursue high growth and high earningsNew
growthareasCoredomains

Advanced medical solutions Excluding drug discovery
Quickly develop as a next-generation growth driver

Essential & green materials
Shift direction to create value through the reduction of environmental impact

Reorganize into four business segments, effective October 2024
11

Executive Summary: (9) Long-term targets

Concentrate management resources on two growth drivers and aim to achieve a
core operating income of 100 billion yen in each sector in FY2030.
Financial KPI targets
ROE
10% or higher
ROI
7％or higher
D/E ratio
approx. 0.7 times
Dividend payout ratio
approx. 30％

ROI target
Growth driver

11％or higher

core operating income target
Agro & life solutions
2030

New growth areas

7％ or higher
Fundamental areas

4％ or higher

100 billion yen

ICT solutions
2030

100 billion yen

Advanced medical
solutions

2035

Essential & green
materials

100 billion yen
12Executive Summary: (10) Timeline for growthFirst and foremost, a V-shaped recovery is a must. Then, we strengthen our financial
standing and return to a growth trajectory.
Toward further growth

Build a new growth model Concentrate management
resources in agriculture and ICT Strengthen financial fundamentals(Billions of yen)

400
300
200

 Deploy into society businesses that
reduce environmental impact(including agriculture) Full entry into regenerative & cell medicine

Fundamental structural reforms

 Thorough rationalization of Sumitomo Pharma
 Review positioning of PetroRabigh Reorganize petrochemicals businesses

100
0

2022

2024

-100
-200

2023

2030

2035
(FY)

Core Operating P/L projections
13Section

1

Discussion of the current state
and the results in FY2023

14

A look back on our management strategy（1）Pursue 3 core strategies. Since 2005, ramped up investments in Petro Rabigh and Sumitomo Pharma
Capital expenditures, loans and investments(based on the timing of the green-light decision)(billion yen)

1,000

Fundamentallystrengthen ourcompetitiveness inpetrochemicals
business

900

3 coreReach critical mass inlife sciences business

700

strategies

600
500

Cultivate new
businesses that would
make up the core of ICT
Essential
Chemicals &Plastics
Energy &Functional
Materials

400
300

Pharmaceuticals

IT-related
Chemicals

800

Health &Crop Sciences

200
100
0

FY98-00 FY01-03 FY04-06 FY07-09 FY10-12 FY13-15 FY16-18 FY19-21 FY22-24

Sumitomo Pharma

Petro Rabigh

Other

Depreciation & amortization
15

A look back on our management strategy （2）Over the past 20 years H&CS, ICT and other non-petrochemical sales have grown steadily

2003年

46％
Health & Crop Sciences overseas sales
Approx. 430 bn yen

Approx. 90 bn yen

2003

5X

Non-petrochemical sales
have grownsteadily as % of total sales

IT-related Chemicals sales

Approx. 410 bn yen

3.5X

Expanded Agrosolutions footprint

2003

Pharmaceuticals

sales

Approx. 590 bn. yen

Approx. 350 bn yen
Approx. 170 bn. yen

Approx. 120 bn. yen

2023

66％
2023年

2023

Developed into growth driver

2003

2021

2023

Grew substantially up to
the patent cliff
16

A look back on our management strategy（3）On the other hand, the growth model based on five business sectors is reaching its limits due
to internal and external factors
External factors

Internal factors

Accelerating commoditizationof technology

Dispersion of management resources
through diversified management

Construction of new largescale plant in China

Lack of discernment and development
ability in pharmaceuticals

Increased difficulty indeveloping new drugs

Lack of competitiveness of growth
drivers

Commodity product slump

Petro RabighPetrochemical

Methionine

Rise of Chinese companies

Materials for large LCDs

Petrochemical

Methionine

Patent cliff

LATUDA17

FY2023 Performance ForecastCore operating Income is in line with previous forecast. Net Income Attributable to Owners of the Parent
is down due to Sumitomo Pharma’s Impairment loss on intangible assets.
（Billions of yen）

FY2023
Forecast(February) A

FY2023
Forecast
B（Sumitomo
Pharma）

Change
B-A

Sales Revenue

2480.02,447.0

314.6

-33.0

Core Operating Income-145.0-149.0-133.0-4.0

Non-recurring Items-140.0-340.0-221.9-200.0Operating Income (IFRS）-285.0-489.0-3549-204.0Finance Income/expenses

5.0

26.0

31.7

21.0

Taxes

-35.0

-3.0

8.2

32.0

Decreased in tax burden due to impairment loss

Net income attributable tonon-controlling interests

70.0

154.0

152.0

84.0

Deterioration of earnings at Sumitomo Pharma-245.0-312.0-163.0-67.0

Naphtha price¥69,000/kl¥69,100/kl

Exchange rate¥143.75/$¥144.59/$

Net Income Attributable to
Owners of the Parent

Reasons for change

See the next page.
Sumitomo Pharma’s Impairment loss on
intangible assets

18

FY2023 Core Operating Income by Sector
While IT-related Chemicals sales remained steady, sales of Health & Crop Scienceswere at the same level as the previous forecast due to factors such as unseasonable weather.
FY2023
Forecast(February)

FY2023
Forecast(Sumitomo Pharma)

Change（Billions of yen）

Reasons for change

excl. PRC

-24.0

-26.0

-

-2.0

PRC

-63.0

-65.0

-

-2.0

5.0

8.0

-

3.0

IT-related Chemicals

38.0

44.0

-

6.0 materials

Health & Crop Sciences

40.0

31.0

-

-9.0 Unsettled weather in South America

Pharmaceuticals-131.0-133.0-133.0-2.0

Others

-10.0

-8.0

-

2.0

Total

-145.0-149.0-133.0-4.0

Essential
Chemicals &Plastics

Energy & Functional
Materials

Increased shipments in semiconductor

19

Non-ordinary items
Towards structural reform, remove the negative factors completely
and lead it to the V-shaped recovery planned for FY2024.

non-ordinary items（Valuation loss broken out-340 bn. yen

net income basis：about -210 bn. yen

about -270 bn. yen

net income basis：about -170 bn. yen）

（about 80%）

（Billions of yen）

Full year total

Related to Sumitomo Pharma
Impairment loss（MYFEMBREE®, etc.）-180.9Reorganization of North American subsidiaries-30.1

Others（loss on disposal of property, plant and equipment, etc.）-10.9

Other than Sumitomo Pharma

Total-221.9-118.1

Impairment loss（petrochemicals in Japan, MMA in Singapore, etc.）-88.5

Others（loss on disposal of property, plant and equipment, etc.）

-29.6
-340
20

Section2

Immediate-term,
concentrated measures
to improve businessperformanceand the FY2024 performance forecast.

21

Progress on immediate-term, concentrated measures
to improve business performance (Summary)Slide reused

Add an incremental 100 bn. yen to 500 bn. yen cash generation target
Original targets
Cash generation (by the end of FY2024)
About 500 bn. yen

Current targets
Revise upward to600

bn. yen

Rebuildbusinesses

Cash generation: 120 bn. yen

Cash generation: Raise to 150 bn. yen

Reduceinventories

Reduction of approx. 150 bn. yen
vs. the end of FY2023 H1

75 bn. yen reduction as of the end. FY2023
Continue to target 150 bn. yen reduction by end of
FY2024More selective
investments

100 bn. yen reduction

Achieve 150 bn. yen reduction throughadditional down-selection

Sell shareholdings: 50 bn. yen

Raise to 60 bn. yen with additional dispositions
Line of sight into achieving 70 bn. yen Look forincremental opportunities
Add to 30 bn. yen with sale of wellness facilities(cash basis)

Sell assets andleverage
surplus funds

vs. Plan (3-yr cum.)Surplus funds: 70 bn. yen

Sale of other assets: 30 bn. yen

Currently achieved about

400 bn. yen

22

Progress in rebuilding businesses
Accelerate sale of noncore businesses from the perspective of best owner
Already achieved about 40% on cash basis.
Illustration of the status of about 30 projects to rebuild businesses
More under study(Billionsof yen)150

Moving to add another
30 bn. yen in projects

Done or in final
negotiations

InitialtargetAchievedLine of sight into about 40% of projects
to generate 120 bn. yen in cash
＜Complete AND publicly announced＞
 Strengthen competitiveness inmethionine and reorganize lines
 Exited cyclohexanone business Sold agricultural polyolefin business

120

About

40

NEW

%

0
February2024

As of April

October

March
2025

 Sold resin coloring agent business Sold post-harvest business Sold all Roivant shares(Not included in this graph.) Sold China LCD chemicals business23

Progress on inventory reductions and investment down-selection
Achieved 75 bn. yen inventory reduction Further strengthen investment down-selection
Forecast inventory reductions

(Target approx. 150 bn. yen reduction by the endof March 2025)

Approx. 75 bn. yen reduction by the end of March 2024
(Achieved 50%+ of target in a half year)
Target further reductions by leveraging DX or exiting or
selling businesses(Billions of yen)

1,000

800

Reduce from 700 bn. yen
More selective to 550 bn. yen

800 bn. yen → 650 bn. yen

Reduceinventories


FY2022 through FY2024 forecast (cash basis)

Consolidated balance of inventories
784.4 bn. yen

710.0 bn. yen

600

650.0 bn. yen

investments

Selective investments in growth areas such as biorationals
and high-performance materials
Consider a further 50 bn. yen in down-selection(Billions of yen)

1,000

800
600

400

400

200

200

0

End of September
2023

End of March 2024
(Forecast)End of March 2025
(Target)(Target approx. 150 bn. yen reduction by the endof March 2025)

0

FY2022-2024 cumulative capital expenditures, loans
and investments plan (cash basis)

700 bn. yen 600 bn. yen

550 bn. yen
Consider a further
50 bn. yen in downselection

FY2022-2024
FY2022-2024
Corporate Business Plan Targets

Latest outlook

24

Progress on asset dispositions and use of surplus funds
Accelerating the sale of cross-shareholdings with the aim of reducing holdings to zero.
Sale of crossshareholdings（Target：50 bn. Yen（by the end of FY2024））

Sale of otherassets（Target：30 bn. Yen（by the end of FY2024））

Surplus funds

 Have sold shares of operating companies and financial institutions（Approx. 41 bn. yen during FY2023 ） Approx 60 bn. yen is expected, including sales during FY2024

 Have sold shares of Inabata & Co., Ltd.（Approx. 24 bn. yen）
 Sale of welfare facilities, etc.（Approx. 10 bn. yen）
 Leverage surplus funds at overseas group companies via groupfinance (CMS, etc.)（Target：70 bn. Yen（by the end of FY2024））

Approx. 70 bn. yen has already been generated by the end of FY2023.
Aiming for further gains.

25

FY2024 Performance Forecast vs FY2023 Forecast
Aiming for a V-shaped recovery, Core Operating Income is 100.0 bn. yen,
Net Income Attributable to Owners of the Parent is 20.0 bn. yen
FY2023
Forecast

FY2024
Forecast

Sales Revenue

2,447.0

2,670.0

Core Operating Income-149.0100.0

Change（Billions of yen）

Reasons for change

FY2022
Actual

2,895.3

223.0
249.0 See the next page.
Large impairment loss inPharmaceuticals and Essential Chemicals& Plastics previous year

92.8
-123.7

Non-recurring Items-340.0

-30.0

310.0

Operating Income (IFRS)-489.0

70.0

559.0

Finance income/expenses, Taxes, Net
income attributable to noncontrolling interests

177.0

-50.0

-227.0 performance improvement, etc.

38.0

Net Income Attributable to
Owners of the Parent-312.0

20.0

332.0

7.0

Naphtha price¥69,100/kl¥75,000/kl

Exchange rate

¥144.59/$¥145.00¥$-31.0
Sumitomo Pharma’s business

Exchange rate sensitivity

Main non-recurring Items

1 yen/dollar yen depreciation⇒
Core Operating Income +1.5 bn. yen
Finance income/expenses+2.0 bn. yen

Restructuring costs-20.0
Loss on retirement of fixed
assets, etc.
-10.0

¥76,600/kl¥135.50/$26

FY2024 Core Operating Income Analysis (vs FY2023）
Achieve a V-shaped recovery by thoroughly rationalizing Sumitomo Pharma, expanding
sales in each field, realizing the effects of implemented projects, and promoting short-term
concentrated performance improvement measures.

Slide reused

Sumitomo Pharma:+134.0 bn. yen（Billions of yen）

 Thorough cost reduction and expand sales of 3 key products(Details below）

excl. Sumitomo Pharma:+85.0 bn. yen

immediate-term
concentrated
measures

FY2023excl.
Sumitomo
Pharma〈Effects of implemented projects〉: Total +66.0 bn. yen

FY2024

 Contribution to existing investment effects/Sales expansion：+33.0 bn. yen
Increased shipments in new crop protection products, etc.
Profit contribution from enhancements in semiconductor materials
 Cost reduction/rationalization：+33.0 bn. yen
Effects of business restructuring and production line reorganization(including impairment effects)〈Effects of business environment improvement, etc.〉: +19.0 bn. yen
Sumitomo
Pharma○Assumedexchange
rate US$：145 yen/$○ Profit and Loss Sensitivity [PRC]
A $1/bbl. improvement in refining
margin: +8 billion yen
A $10/bbl. increase in crude oil prices:+6.5 billion yen

Petrochemical market prices to bottom out
Recovery of PRC scheduled maintenance and troubles in FY2023

Immediate-term concentrated measures: +30.0 bn
 Contribution of immediate-term, concentrated measures to improvebusiness performance27

FY2024 Core Operating Income by Sector
Expected significant improvements mainly in Pharmaceuticals and Essential chemicals & Plastics（Billions of yen）

FY2023
Forecast

FY2024
Forecast

ChangeEssential Chemicals &Plastics

-91.0

-35.0

56.0

(PRC broken out)(-65.0)(N.A)

Energy & Functional
Materials

Nondisclosure

8.0

11.0

3.0 plastics, etc.

15.2

IT-related Chemicals

44.0

47.0

3.0 Increased shipments in semiconductor materials

47.6

Health & Crop
Sciences

31.0

62.0

31.0 Improved trade terms and conditions in methionine

Increased shipments in new crop protection products

57.3-133.03.0

136.0

Thorough rationalization of SG&A and R&D expenses
Expand sales of three key products

16.2

-8.0

12.0

20.0 measures to improve business performance-149.0

100.0

249.0

Pharmaceuticals
Others
Total

Reasons for change
Cost rationalization through business restructuring
and similar measures
Trade terms and conditions to improve
PRC scheduled maintenance, troubles, etc. in previous
year
Increased shipments in resorcinol and engineering

Contribution of immediate-term, concentrated

FY2022
Actual-34.2(-10.6)-9.3
92.8
PRC：Petro Rabigh28

Interest-bearing liabilities and debt to equity ratio
After peak in FY2023, reduce interest-bearing liabilities from immediate-term,
concentrated measures to improve business performance（Times）（Billions of yen）

1,700
1,600

1.4
Interest-bearing liabilities

debt to equity ratio

1.2

1,500

1.0

1,400

0.8

aim for

1,300

0.7

0.6

1,200

0.4

1,100

0.2

1,000

0.0

2019

2020

2021

2022

2023

（Forecast）

2024（Forecast）

（FY）

29

Interest-bearing liabilities Analysis（End of FY2023→End of FY2024）
From peak year FY2023, improve financial standing by asset and business dispositions（Billions of yen）

1,600

Interest-bearing liabilities forecast

1,570

1,550

Reduction by
250 bn. yen

1,500
1,450
1,400

1,320

1,350
1,300

+ 160 bn. yen

 Income before taxes：+30 bn. yen Depreciation and amortization：+150 bn. yen Decrease of working capital：+50 bn, yen

Funds freed up from inventory reduction

 Income taxes, etc.：-70 bn. yen

Cash flows from investing
activities：-190 bn. yen
 Capital Expenditures・Loans
Carefully select projects ingrowth areas
Further compression underconsideration-30 bn. yen

Total free cash flows from ordinary business activity：

Cash generation from immediate measures：+300 bn. yen Rebuild businesses・Sell assets

1,250
1,200
1,150

Cash flows from operating activities：

Total free cash flows：+270 bn. yen
End of FY2023

End of FY2024（included source of dividends）

Further improve financial standing30

Shareholder returns
Despite a V-shaped recovery expected in fiscal 2024,
prioritize strengthening financial standing and maintain dividends at annual DPS of 9 yen.
Year-end dividend(left axis)

Interim dividend(left axis)

Net Income Attributable to Owners of Parent(right axis)

（yen）

30

77
12
11

15
10
5
0

10

11

20

7

6

11

6

100

-100

6

9

200

0

14

7

7

46

31

24 yen/shareor more per year

118

25
20

Aim for

162

134（Billions of yen）

-200
10

3

12
△ 312

2016

2017

2018

2019

2020

2021

2022

29.9

26.9

30.5

89.9

53.3

24.2

1.24

1.09

0.84

0.57

0.92

0.75

6
2023

6

-300

3
2024

（Forecast）（Forecast）

421.2

―

73.6

0.63

0.57

（FY）

-400

Dividend
payout ratio
（%）

PBR
31

Section

３

Fundamental structuralreforms (overview)32Overview of fundamental structural reforms

Slide reused

Stop the bleeding and rebuild with revival strategy, then aim for sustainable growth based on
new growth strategies.

Fundamental structural reforms
Revival strategy

Rebuild Sumitomo Pharma
Petrochemicals business
Review of positioning of Petro Rabighbusiness
Rebuild Japan and Singapore business

Growth strategy

Agrosolutions and ICT as two growth drivers
Agro & life
solutionsNew growth areas
Advanced medical
solutions

ICT solutions

Fundamental areas
Essential & green
materials

 Separate and reorganize Energy & Functional materials
sector Reorganize CDMO business of small molecule drugs

Innovative Solution Provider
33

Long-term targets

Slide reused

Set ROI targets for each Sector.
Concentrate management resources on two growth drivers and aim toachieve a core operating income of 100 billion yen in each sector in FY2030.
Financial KPI targets
ROE
10% or higher
ROI
7％or higher
D/E ratio
approx. 0.7 times
Dividend payout ratio
approx. 30％

ROI target
Growth driver

11％or higher

core operating income target
Agro & life solutions
2030

New growth areas

7％ or higher
Fundamental areas

4％ or higher

100 billion yen

ICT solutions
2030

100 billion yen

Advanced medical
solutions

2035

Essential & green
materials

100 billion yen
34

Toward sustainable growth

Slide reusedFirst and foremost, a V-shaped recovery is a must. Then, we strengthen
our financial standing and return to a growth trajectory.
Toward further growth

Build a new growth model Concentrate management
resources in agriculture and ICT Strengthen financial fundamentals(Billions of yen)

400
300
200

 Deploy into society businesses that
reduce environmental impact(including agriculture) Full entry into regenerative & cell medicine

Fundamental structural reforms

 Thorough rationalization of Sumitomo Pharma
 Review positioning of PetroRabigh Reorganize petrochemicals businesses

100
0

2022

2024

-100
-200

2023

2030

2035
(FY)

Core Operating P/L projections
35

Section

３-1

Fundamental structuralreforms(Revival Strategy)36

Sumitomo Pharma (1)Quickly stop the bleeding while we consider all options to return to growth

Stop the bleeding

Integrated group

Slide reused

Return to growth

Shrink into a suitable cost structure
and turn profitable at the core
operating income level in FY2024

 Expand sales of 3 key products Thorough rationalization of SG&A
In
Work
closelywithspecialized
revitalization
and R&D expenses
parallel Integrated operations inregenerative medicine & celltherapies

team
Sumitomo
Chemical'sroleStrengthen
governance
Sumitomo Chemical provides financial support• Leverage knowledge
from third-party(debt guarantees)
corporate turnaround experts andsupport rationalization• Strengthen governance by dispatching
multiple management personnel• Financial support through debt
guarantees

 Develop two cancer drugs

Pursue best growth model

37

Sumitomo Pharma(2)：The path to profitability in core operating income
Through rigorous streamlining and expanding sales of the three key products, we aim toachieve profitability in core operating income in FY2024.
Core operating income variance analysis(billion yen)

FY2023 Forecast

Expand sales of
the 3 keyproducts

Rationalizationof SG&A andR&D expenses

Other

FY2024
Forecast

The path to profitability in core operating
income①Rationalization of SG&A and R&D expenses
Thorough cost reduction and streamlining of the pipeline.

② Expand sales of the 3 key products

Accelerate market penetration through continuous promotion.

38

Sumitomo Pharma (3):Breakdown of thorough rationalization of SG&A and R&D expenses
Reduce more than 100 bn. yen in costs in North America. Accelerate additional rationalization
measures in Japan, too.
(Billions of yen)

350

Fuse knowledge from Sumitomo Chemical and a team of corporate turnaroundexperts and accelerate initiatives for further improvements across the entire group

300
250

SG&A
expenses

200

236

150
100
50
0

R&D
expenses

91

SG&A expenses
Expense reduction

-67
-31

SG&A expenses
R&D expenses

Headcount reductions-26
Amortization of intangible assets -10

R&D expenses

169

-41

Shrink clinical trial costs -22-18
Headcount reductions
-1
Other

50

2023

Beg. of FY2023

2024

Reduced to aboutNorth
America

2,200 employees

Japan

Additional steps to make organization leaner in FY2024

2023/7
Restructuring
by integration

2024/3
Additional
restructuring

1,200 employeesby the end of FY2023

2025

（FY）

End of FY2024
1,100 employees

39Sumitomo Pharma (4): Expand sales of three key products
Solid growth of the three key products. Accelerate market penetration with additional
promotions(Billions of yen)

200

Sales outlook for the three
key products
ORGOVYX

150

Continue to educate market on efficacy,
safety and other product strengths
Product name Indications
ORGOVYXGEMTESA

Advanced
prostate
cancer• Establish position as first line drug
leveraging revision to standard
treatment guidelines for oncology

Overactive
bladder• Drive penetration ofdifferentiation of GEMTESA
leveraging its high safety• Appropriate promotions
preparing for expanded
indication for overactive bladderin men with benign prostatic
hyperplasia

MYFEMBREEGEMTESA

100

50

0

MYFEMBREE
2021

2022

2023

2024

2025 （FY）

Initiatives in FY2024

Uterinefibroids
Endometriosis• Increase awareness and expand
GnRH market by strengthening
media advertising40

Sumitomo Pharma (5): R&D
Concentrate R&D resources on two cancer drugs with high potential
DSP-5336

TP-3654
Efficacy

Myelofibrosis(1) Suppresses reproduction of cancer cells
Strengths (2) Fewer side effects than standard treatments(3) Potential for substantial growth asconcomitant with standard treatments
Developme
nt plans

Currently Phase I/II trials (Japan, US)

Planned launch: FY 2027 (Japan, US)

Potential for peak sales of 100 bn. yen

EfficacyStrengths

Developme
nt plans

Acute myeloid leukemia(1) Suppresses increase of leukemia cells(2) High safety compared to competitor
drugs

Currently Phase I/II trials (Japan, US)
Planned launch: FY 2026 (Japan, US)

Potential for peak sales of 50 bn. yen

Potential to become growth drivers supporting the earnings base over the medium- to long-term
41

Sumitomo Pharma (6): Regenerative medicine & cell therapies
Establish new company for regenerative medicine & cell therapies and acceleratecommercialization through integrated operations
Strengths of our corporate group
1

Frontrunner inside and outside Japan incommercialization of iPS cells⇒Moving toward launch of world's first

iPS cell-derived product2 Completed the build out of an integrated
manufacturing, sales and R&D regime inboth Japan and the US• Deliver globally new value that can only be achieved throughregenerative medicine• Already began developing therapies in the US. Also preparing foray
in US CDMO market
Planned indications

Geography

Pediatric congenital athymia
RETHYMIC

US

Launched in March 2022

Japan

Obtain approval before the end of
FY2024US

Begin Phase 1/2 studies

Japan

In Phase 1/2 studies⇒ Target market launch in FY2028

Establish new company forregenerative medicine & cell therapies

Parkinson’s disease(Qualified for accelerated(sakigake) screening)

Establish in FY2024 and accelerate
deployment in Japan and US

Retinal pigment
epithelium tear

Sumitomo Chemical

Development status and target for launch

Sumitomo Pharma

New company

Fully ramp up Japan business by FY2027 to reach businessscale of more than 100 bn. yen globally in the 2030s

42Repositioning of Petro Rabigh (“PRC”) in our business
Joint taskforce to be formed for intensive discussions to improve PRC
profitability

Current
statusSlide reused•

Symbolic project that represents partnership between Saudi Arabia and Japan•

Growing losses due to the changes in external environment (prolonged downturn in petroleum andpetrochemicals markets and revisions to official fixed feedstock and fuel prices)•

Divergence in strategic directions and business positioning between Sumitomo Chemical and Saudi
Aramco (Sumitomo Chemical is shifting away from commodity chemicals toward specialty chemicals
and has completed the transfer of technology to PRC, fulfilling its major role in the project)•

Sumitomo Chemical does not plan to provide PRC with additional funding that increases its
exposure to PRC’s performance

1st Step

Reached a mutual understanding with Saudi Aramco on PRC’s challenges

Next step

A joint task force will be formed soon for intensive discussions
to find optimal strategies to improve PRC profitability
43Essential Chemicals business (Japan and Singapore)To survive, business reorganization measures need to be more concrete
Domestic

Downstream

Upstream

NaphthaEthylene,
propylene• Rationalization at existing
ethylene plant•Discussing rationalization measures of
Keiyo Ethylene, which possesses 700k of the
2 million tons of production capacity in the
Keiyo area

• Convert to a complex with areduced environmental impact•Continue to study Keiyo area alliance (sinceNovember 2023)• Polyolefin collaboration•Working toward deeper discussions• Solid reorganization of
unprofitable businesses
Polyethylene andPolypropylene, etc.

•Exit from cyclohexane and resin coloring
agent businesses•Promote further reorganization of
unprofitable and noncore businesses

Singapore• Establish restructuring council
with participation from parent
company•Study optimization based on scenario
analysis of consolidation with neighboring
plants•Thorough cost reductions from cheap
cracker feedstock and other cost measures•Discuss measures aimed at becoming
Carbon Neutral• Begin programs aimed at
profitability improvement•Focus on specialty high-profit grades suchas PP for batteries and mono-material
packaging films•By the end of FY2024, formulate strategicplan for further profitability improvements
44

Strengthen management baseStrengthen management base through governance reforms and personnel
optimization
Strengthen monitoring functions of the Board of Directors

Change composition of the Board of Directors

External

4Internal Businesses

4

External 33%

4

External

5

Optimize personnel structure－Consolidated－
About 40,000 employees
Approx. 10%

Internal

5

External 50%

Add 1 external director to reach 50%
Strengthen monitoring functions

Select internal directors from the President,
Chairman and executive officers with oversightspanning the organization
Place import on optimizing across the company as a whole

Reduce about 4,000 employees
End of March2023

End of March
2025

Business dispositions, rebuilding andrationalization such as restructuring at
Sumitomo Pharma, etc.
－Parent company－
Redeploy and rationalize HQ overheadfunctions (approx. 20%)45

Section

3-2

Fundamental structuralreforms（Growth Strategy）

46

Trends in four important social issues for value creation
Continuing to exhibit our presence by solving society's challenges
Food supply Stable food supply
 Sustainable agriculture

Healthcare Secure healthy lifestyles
 Expanding market for
leading-edge medicines, etc.

ICT
 Acceleration in the importanceof digital technologies
 Strengthening the supply chain

Environment Deepening severity ofclimate change issues

 Increasing importance of
maintaining the ecosystem
47

Long-term vision：
A company that solves social issues with innovative technology

Innovative Solution Provider

Food

ICT

Healthcare

Achieve regenerative

Innovate IT

Spread leading-edge
medicine

Slide reused

Environment
Reduce environmental
impactMain technologies and product groups that support the solution（Top runner technologies and products are in red）

Biorationals
 Bio-stimulants
 Botanicals(natural pyrethroids)

Agro & life
solutions

G X
Green

 Cutting-edge resist(ArF

immersion, EUV) Semiconductor chemicals
 Compound
semiconductormaterials(GaN wafers)

 Regenerative medicine &cell therapies

 Chemical recycling(GI fund) Long-chain nucleic acid
(Guide RNA) CFP-TOMO

 RI diagnosis and therapies

 Materials recycling CDMO and Analysis CRO

ICT
solutions

Advanced medical
solutions

Important value-generation assets

D X

DigitalOur unique 6 core technologies

Essential & green
materials

B

X

Bio

48

Important assets: 3 Xs
Accumulate

50+ years of research(Since the 1970s)

Ginkgo Bioworks tie-up

BX

Talent280

Open innovation+ Bio-PhDs

Technological prowess

Bio

200

(bio-mechanism, OMIX)

Cell technology(ES/iPS cells)

contracts

2030

50

Organic andPolymer material
functional
design
BioCatalyst
mechanism
designanalysis

6 CoreDX

Top 100 global innovator3% reduction

GHG

Technological prowess

AwardedCatalyst and Process technologies

DevicedesignDigitalstraight years

Manufacturing technology

2018 SBT validation: First for adiversified chemicals maker

GX

Precision
processing

Licensing
About

70

Open innovation

GI FundApprox.

Green

50

bn. yen(Business scale)Chemical recycling

technologies+
patent families related to BX
Analysis technology

Promote Carbon Neutrality

3rd party tie-ups

Inorganic
materials
Functional
design

CFP-TOMO Approx.

100(Won JCIA Responsible Care Award)

Regional tie-ups
TalentCore DX talent

Approx.

Accumulate

50
1,700
employees(Keiyo and Setouchi)+ years of research(Since the 1980s)(Pioneer of computer chemistry)49

Positioning of new business areas within the growth strategy

Align new business domains with the social challenges we aim to solve
Clarify strategic positioning in each business domain. Be unique.

Growthdrivers

Slide reused

Agro & life solutions
ICT solutions

Former ICT + parts of E&FM

Position as our flagship domains and pursue high growth and high earningsNew
growthareasCoredomains

Advanced medical solutions Excluding drug discovery
Quickly develop as a next-generation growth driver

Essential & green materials
Shift direction to create value through the reduction of environmental impact

Reorganize into four business segments, effective October 2024
50

Invest management resources into growth areas
Define areas of investment and operate strategically. Allocate approx. 80% togrowth drivers.
Investment categories

70

bn. Yen/year

Long-term
strategy

80bn. Yen Maintenance
70 /yearinvestment
bn. Yen/year

Companywide
strategy

6-year allocation to strategic investments

Release funds once certain
KPIs have beenachieved(2028 and beyond)• Agro & life
Approx.
• ICT

Set D&A costs asceiling

Other
25%

Average from past 10 years

1.1 trillion yen over 6 years Strategic: 690 bn. yen(Billions of yen)

700

600
500

Strategic
investments

Actively allocate
into growth areas

400
300
200
100
0

FY2025 ~ 2027

FY2028 ~ 2030

■ Long-term strategy■ Companywide strategy■ Maintenance investment75%2025 ~ 2030

Agro & life

690 bn. yen

Maintenance: 420 bn. yen

Depreciation &amortization

30%

38%

ICT

37%
Concentrate investments of 400 to 500
bn. yen into Agro & life and ICT
51

Growth strategies: Agro & life solutions
Contribute to regenerative agriculture (agricultural productivity and sustainability) with a hybrid of
agrochemical technologies along with biorationals, botanicals and other natural solutions.

Society’s
challenges
Carbon neutral
Natural capital
Food

Focus on the regenerative
agriculture sector, which will
become mainstream in the future.

 Agriculture such as no-till farming that repairs or improves
soil health, reduces greenhouse gas emissions and maintains
or enhances biodiversity
 Productivity gains are also important to secure food supply
amid population growth

Our efforts
Strengthen portfolio
Investmentsdone
2 blockbuster
candidates

 Chemical crop
protection
 Biorationals

Leverage footprint
Investments  Brazil, the world's largest
marketdone
Brazil, India
Footprint

 India, with the highest
market growth rate

52

Growth strategies: Agro & life solutions
Growth trajectory: Maximize the use of growing markets such as Brazil andfocus on the regenerative agriculture sector.
Toward Core Operating Income of
100 billion yen

Business strategy(billion yen)

INDIFLIN、
Rapidicil

 Pursue contributions to regenerative agriculture leveraging
agrochemicals, biorationals and botanicals
 Leverage to the hilt sales footprint in growth markets such as
Brazil and India
 Expand natural pyrethrin and deploy new botanicals
 Accelerate deployment of biorationals into field of animal
nutrition

Leanermethionine
structurebiorationals,
botanicals

Target sales (annual)
Herbicides for
non-tillfarming
2023

2030

(FY)

100 billion yen

INDIFLIN etc.
B2020

100 billion yen

Biorationals
Botanicals

120 billion yen
53Growth strategies: ICT solutions
Integrate businesses related to ICT and fuse core technologies and our wealthof know-how to provide solutions to accelerate customer innovation.
Future areas for earnings growth
Leading-edge semiconductormaterials

Semiconductor chemicals
Exhibit sophisticated functionality
supporting customer needs insemiconductor manufacturing
processes

Forge new markets on the front andback ends through process
technology innovations supporting
AI semiconductors

Entry into US semiconductor business

Leverage new Texas plant as a foothold to greatly expand our US
semiconductor chemicals business (high purity and performance)

Our strengths
 Chemical design capabilities and know-how in high-purity
chemicals Solutions proposal capabilities with speed and advanced
technology

 Support next-generation needs with a broad range ofmaterial design and organic synthesis technology
 Fuse high-performance materials with process technology
to deliver customer value
54

Growth strategies : ICT solutions
Path toward growth: Aim for 100 bn. yen in Core Operating Income throughdeeper dive into earnings model for semiconductor materials
Toward Core Operating Income of(Billions of yen)

100

Business strategy

100 bn. yen

Recovery insemiconductor demandContribution fromupfront investments

Expand business(Photoresist andchemicals)

Next-generation
displays and high-speed
telecommunication
Power semiconductors
in full swing

2023

Expand business geography

 Full foray into US mainly in semiconductor materials

Maximize earnings in existing businesses

 Display materials
Major portfolio shift. Shift from large polarizers and FPD chemicals into
performance materials for OLED and automotive applications
 Silicon semiconductor materials
Strengthen supply structure in advanced of growth in demand for photo
resist and semiconductor chemicals

US semiconductor materials
business fully ramped up
Acquisition of market share in
EUV organic molecular resists
Stand up back-end materials
business0 Aim for top share in next-generation EUV with proprietary organic EUV
molecular resist
 Actively introduce semiconductor back-end process materials, where
technology is transitioning

Toward long-term growth
2030

(FY)

 Earnestly advance development of next-generation displays and power
semiconductor materials, which are expected to grow rapidly in the early
2030s
55

Growth strategies: Advanced medical solutions
Contribute to healthier and more fulfilling lives by creating and delivering solutions that meet adiverse range of medical and healthcare needs by fusing biochemistry and DX technologies
Leading-edge medical and healthcare related businesses
such as CDMO

Target areas

Knowledge developed in the life sciencesbusiness

Life sciences(development, production technology, quality control
and analysis)

Drug market size by modality

Growthpotential

Solvesociety’s
challenges

Small molecule

Antibody drugs

2030

2020

Approx.
75 trn. yen

Areas with high market
growth potential and highadded value for society

Approx.

Our focus
businessdomains

114 trn. yen

Other

Cell therapies Nucleic acid/genes

Position leading-edge medical-related businesses at the core while we also pursue diagnosis andprevention, medical materials and the like
CDMO: Contract development and manufacturing organization business(Graph created by Sumitomo Chemical based on ADL database)56

Growth strategies: Advanced medical solutions
Path toward growth: Strengthen leading-edge medicines CDMO business anddeploy regenerative medicine and cell therapies
Long-term portfolio

300 bn. yen(Approximation of revenues)

Newbusinesses

Grow topline throughorganic growth +M&A

Regenerativ
e medicine& celltherapies

Analysis
RI diagnostic
agentsCells

Analysis
RI
diagnostic
agentsSmallmolecule
andnucleic
acid2023

Regenerativ
e medicine& celltherapies

CDMO

Small
molecule
and nucleic
acid

2035

Business strategy
Regenerative medicine & cell therapies

 Accelerate deployment into US market
leveraging iPS cell commercialization technology

CDMO (small molecule, nucleic acid,regenerative medicine & cell therapies) Weaponize strong synthesis capabilities toachieve solid growth in CDMO businesstargeting small to mid-size molecules, wheredevelopment is becoming more sophisticated Maximize synergies with clinical therapies
development in regenerative medicine & celltherapies57

Growth strategies: Essential & green materials
Path toward growth: Establish position as a Solution Provider
that contributes to a reduced environmental impact

Roadmap toward deployment of technologies
that reduce environmental impact
STEP

1

Technology
development
Out to 2030

Quickly develop andvalidate innovativetechnologies that achieve
GX
・Chemical recycling
technology
・Bio-/CO2 as feedstock

STEP

2

Commercialization
Out to 2035

Exhibit concrete
environmental value atcommercial scale andaccelerate commercialization
Adopt in our own plants(Japan and Singapore)

STEP

3

Globaldeployment

Expand solutions
business throughlicensing overseas
Expand share throughtie-ups with engineering
companies

58

Growth strategies: Core business of Essential & green materials
Shift from investment-intensive petrochemicals business to solutions
businesses featuring technology licensing
Business strategy
Expand businesses that reduce
environmental impact(Examples of candidate technologies)❶ Ethanol to propylene❷ CO2 to methanol (ICR)❸ Olefins from direct cracking of waste plastic❹ PMMA chemical recycling, etc.

Earnings contribution potential
Example: Ethanol to Propylene technology

Global production capacity of propylene in 2030
※1

Approx. 200 million tons/year

Apply technology to approx. 1% (2 million tons)

CO2 reduction contribution
Equivalent to approx.

4 million tons/year

Contribution value (2035)
recycling❷ Pilot facilities manufacturing at high❹ Chemical
demonstration facility
efficiency methanol from CO2

Approx.

20+ bn. yen/year※2※1 Prepared by Sumitomo Chemical based on data from Chemical Market Analytics※2 4 million tons X carbon price of 10,000 yen ÷ 2n (assuming 50/50 split with deployment partner)

59

Future schedule

Investors’ Meeting schedule and content
November 2023
Investors’ Meeting for FY2023 1st Half Financial Results,
Management Priorities and Business Strategies

Immediate-term measures toimprove business performance

April 2024
Investors’ Meeting for the Current Priority Management
Issues and Business Strategy

Fundamental
structural reforms (overview)

Autumn 2024
Investors’ Meeting for the Current Priority Management
Issues and Business Strategy

Fundamental
structural reforms

March 2025
Investors’ Meeting for the Corporate Business Plan

New Corporate Business
Plan announced

May-September
Preparation for neworganization
October
New organization started

October-March
Formulation of
Cooperate Business Plan
AprilNew Corporate Business
Plan started

60

(Appendices)61

Growth strategies: Technological base of Agro & life solutions
Technological base: Superb new product development
capabilities in both chemicals and biorationals
Chemical crop
protection andEnvironmental
health products
Top runner

Organic
compoundfunctional
design

New productdevelopment
capabilities

New product development
capabilities

 Launch 5 chemical crop protection
products from 2020 to 2024 Industry
leader Developed and launched 2 blockbusters
INDIFLIN and Rapidicil

Biorationals andbotanicals
Top runner

Organic
compoundfunctional
designBX(Naturalcompoundsynthesis)

No. 1 share in biorationals andnatural plant growth regulators

Leverage foundation in organic
chemistry and deploy into naturalcompound synthesis of microorganisms
Business experience of 120 years inbotanicals and 60 years on biorationals
62Growth strategies: Technological base of ICT solutions
Technological base:
Deepen core technologies in semiconductor materials and accelerate innovation
Advances in AI and other technologies will require miniaturization and new types of semiconductors

Photoresist
Compounding
designOrganic synthesis
technology

Proprietary
molecular design
Synthesis
technologies

Semiconductor chemicals
High purity andanalysistechnology
supporting
cutting-edge

ChemicaldesignProcess
technology

Top runnerTop runner One of the global share leaders in
ArF immersion
 No. 1 globally in EUV photoresists for
specialty processes New platform for next-generation
EUV
Begin development and performance
validation of organic molecular resist One of global share leaders in highpurity chemicals (Global No. 1 in IPA
and ammonia water) Supporting cutting-edge customer
needs in performance chemicals

Growtharea

Semiconductor back-end
process materials

High heatradiation materials
Specialty polymers

Precisionmachining
Material design

 Bring together internal
performance materials and fusewith processing technologicalprowess developed in ICT business

63

Growth strategies: South Korea business (Dongwoo Fine Chem)
Core of ICT solutions segment with superb technological prowess and sales
capabilities
Dongwoo Fine Chem (South Korea)
Approx. 2,500 employees

New semiconductor chemicals
plant

Increase production capacity to support
increasing demand for cutting-edge
semiconductor chemicals in light of new
semiconductor capacity increases inSouth Korea.
New location in Iksan
Secure land in FY
2024 H2
To be in fulloperation from 2027
Upfront investments aimed at
expanding demand

Consolidated Net Sales: Approx. 250 bn. yen
TopicsNew R&D Center(Seoul)Identify and develop cutting-edge
technologies and materials forsemiconductors and telecommunications
Located in an innovation hub connected
into major ICT companies,
universities andventures in South
Korea
Plan to begin
operations in FY 2024
H2
Position at core of next-generation
business development

Develop new fields with deeper
dive into miniaturization
process technologies
Leverage miniaturizedprocess technology
developed through ourtouch sensor business toestablish technology intransparent LED and highspeed telecommunications
materials. Currently being
tested by customers.
Broader applications and deeper useof existing technologies
64Growth strategies: Technological base of Advanced medical solutions
Technological base: Strong synthesis capabilities in small to mid-sized molecules andfront runner in iPS cell commercialization
CDMO(Small molecule and nucleic acid therapies)
Organic material
functional design

Chemical synthesis
process design

Regenerative medicine & cell therapies
Organic and polymer
material functional
designBX(ES/iPS cell technologies)

Synthesis capabilities in highTop runner purity long-chain nucleic acid andsmall to mid-sized molecules

Frontrunner inside and outside
Top runner Japan in commercialization of IPS
cells

 Multiproduct production regime leveraging
multiple production facilities
 Compliant with all FDA/PMDA audits (10 from2021 to 2023)
 Began mass production at Guide RNA dedicatedplant at Oita Works Exhibit strong synthesis capabilities in increasingly
sophisticated small molecules (500+ molecularweight) Parkinson’s disease treatment:
Working toward approval in FY 2024
→ Moving toward launch ofworld's first iPS cell-derived
product
 Completed the build out of an
integrated manufacturing, sales and
R&D regime in both Japan and the
US

S-RAMCO Line 2(under construction)

Sumitomo Pharma US
cell production facilities

65

Growth strategies: Technological base of Essential & green materials
Technological base: Accelerate commercialization leveraging catalyst design andother elemental technologies and a wealth of experience in deployment• Elemental technologies supporting development of
Catalyst
technologies that reduce environmental impact
design• Track record of 71 licensing contracts in 16
Process
countries
development• Capabilities running large-scale projects
Chemical recycling of acrylic resin
Top runner

December 2022
Began operations atdemonstration facilities

Materials recycling using waste plastic
from automobiles
Top runner

March 2024
Began operations atdemonstration facilities

Organic andpolymer material
functional design

Technology to manufacture at high *efficiency methanol from CO2
Top runner

December 2023
Completed pilot facilities

Chemical recycling technology
4 projects including those above
indicated with an asterisk* havebeen adopted by the GI Fund66

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.

67