FY2023 Financial Results

Spiral-up 2024

SEKISUI KASEI CO., LTD.
(TSE Prime Code: 4228)

May 9, 2024

1

Table of Contents
1

FY2023 Financial Results

2

FY2024 Forecasts

3

Topics2

Table of Contents
1

FY2023 Financial Results

2

FY2024 Forecasts

3

Topics3

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FY2023 Financial Results
FY2022Full-year(JPY billion)

FY2023Full-year

Year on year

Vs. forecasts announced
Oct. 27, 2023

Results

Forecasts
announced
Oct. 27, 2023

Results

Difference

(A)

(B)

(C)

(C)-(A)Net sales

124.7

130.0

130.3

5.6

104%

0.3

100%

Operating income

0.79

1.30

1.26

0.47

159%

-0.04

97%

<Operating income ratio><0.6%><1.0%><1.0%>

Ordinary income

0.70

1.70

2.73

2.03

388%

1.03

161%

Net income attributable toowners of parent

0.45

0.55

1.08

0.63

239%

0.53

197%

ChangeDifference

Change(C)-(B)● Higher sales and higher profits YoY
Net sales:

Higher revenue YoY, as per announced forecasts

Operating income:Higher profit YoY, slightly below announced forecasts

Ordinary income:Significant increase both YoY and relative to announced forecasts

Net income:Significant increase both YoY and relative to announced forecasts

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FY2023 Ordinary Income Analysis (YoY)
Increase
Non-operating
income/expenses,
of which forex
rates differences+1.18.

Decrease
Total

1.54

Profit difference ＋0.33

ProseatBusiness(JPY billion)

Sales
volume

0.70

-0.31

Unit sales
prices0.26

Rawmaterial
pricesEnergy
costs

0.17

1.48

2.73

Fixed
costs, etc.

-0.10

-1.01

FY2022
Results

Difference in ordinary income +2.03 billion yen
FY2023Results

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FY2023 Results: Industry Segment(JPY billion)

FY2022

FY2023Results

Results

Year on year

(A)

1H

2H

(B)

(B) - (A)Net sales

72.1

40.5

40.7

81.2

9.1

113%

Operating income

-0.10

0.64

1.29

1.93

2.03

ー

<Operating income ratio>ー<1.6%><3.2%><2.4%>

Ordinary income

-0.40

1.05

1.31

2.36

2.77

ー

● Sales

Electronics: Higher sales YoY driven by recovery in demand for use in LCD panels
Mobility: Higher sales YoY due to recovery in automobile production
Medical/Healthcare: Both ST-gel and ELASTIL recorded lower sales YoY* Overall sales in the segment increased, partly due to successfully passing on higher prices to product prices● Profit

Higher profit for segment as a whole (return to profitability) both YoY and relative to forecasts due to higher
sales in Electronics and Mobility, smaller losses at Proseat business in Europe

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FY2023 Results: Human Life Segment(JPY billion)

FY2022

FY2023Results

Results

Year on year

(A)

1H

2H

(B)

(B) - (A)ChangeNet sales

52.6

24.5

24.6

49.1

-3.5

93%

Operating income

2.58

0.94

0.82

1.77

-0.81

69%

<Operating income ratio><4.9%><3.8%><3.4%><3.6%>

Ordinary income

2.59

0.93

0.86

1.79

-0.80

69%

● Sales

Food: Lower sales YoY due to continued decline in demand for both sheets and beads
Housing/Energy: Lower sales YoY due to weak construction materials, delays in civil engineering projects● Profit

Lower profit YoY due to decrease in sales volume, time lag associated with passing on surge in raw
material and other costs● Volume

Sheets: Lower volume overall YoY, despite tray applications being flat year on year, due to weakness ininstant noodle containers
Beads: Lower volume overall YoY as a result of continued weakness in fishery/agriculture

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FY2023 Financial Position(JPY billion)

FY2022(A)

Year on year(B) - (A)FY2023(B)

Total assets

145.2

146.5

1.3

Net assets

58.5

56.8

-1.6

Equity ratio

39.8%

38.3%

-1.5%

1,275.00

1,235.52

39.46(Ref.) Equity capital

57.7

56.1

-1.7

Cash and deposits

11.1

10.9

-0.2

Short-term loans

13.0

14.5

+1.4

Long-term loans

18.1

16.4

-1.7

Bonds

7.0

7.0

±0

Interest-bearing debt

38.1

37.9

-0.2

D/E ratio (times)

0.66

0.68

+0.02

Net assets per share (JPY)• There were no major changes in the financial position

8

Table of Contents
1

FY2023 Financial Results

2

FY2024 Forecasts

3

Topics9

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Market Conditions and Outlook
Domestic naphtha price (average for period)

EPS beads (total industry volume)

LCD panels (surface area basis)*Percentage change with FY2019 as the base year

*Percentage change with FY2019 as the base year

Results Results Results Results Results (Plan)

Results Results Results Results Results (Plan)(¥/kl)

Results Results Results Results Results(Plan)

Ongoing attention required due to Middle East risk etc.

Industry expected to be flat YoY

Growth to be driven by clearance of inventories and shift
to larger panels

Forex rates

PSP sheets (total industry volume)

Global automotive production (units)

Yen/EUR
Yen/USD

Results Results Results Results Results (Plan)
Outlook unclear, rates set at 2023 average*Percentage change with FY2019 as the base year

*Percentage change with FY2019 as the base year

Results Results Results Results Results (Plan)

Results Results Results Results Results (Plan)

Industry expected to be flat YoY

Flat YoY overall, despite variances by region

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Medium-Term Management Plan Spiral-up 2024
▮ Consolidated forecasts
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Previous mid-term plan

(JPY billion)

FY2021Results

FY2022
Results

FY2023Results

FY2024
Forecast(Most recent figures announced)

117.6

Net sales

130.3

（）

Operating income

1.46

1.40

Net income

-5.92
ー

132.0
(135.0 )

0.79

1.26

（）

Ordinary income

ROE (%)

124.7

2.5
（4.0）

0.70

2.73

2.2
（3.7）

0.45

1.08

0.85
（2.4）

0.8%

1.9%

1.5 %
（3.0 %）

Having taken into account recent business conditions in each segment,
we have partially amended forecasts for FY2024

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FY2024 Forecasts▮ Performance by Segment
FY2023Results

FY2024(Forecast)Year on year

(JPY billion)

1H

2H

65.0

65.3

Industry

40.5

Human Life

Full year

Full-year
ChangeFull-year
Change
(%)

1H

2H

130.3

66.0

66.0

132.0

1.7

101%

40.7

81.2

40.8

42.0

82.8

1.6

102%

24.5

24.6

49.1

25.2

24.0

49.2

0.1

100%

Operating income

1.6

2.1

3.7

2.1

3.0

5.1

1.4

138%

<Operating income ratio>

2.4%

3.2%

2.8%

3.2%

4.5%

3.9%

Industry

0.6

1.3

1.9

1.2

1.7

2.9

1.0

150%

Human Life

0.9

0.8

1.8

0.9

1.3

2.2

0.4

124%

Head Office Cost

-1.2

-1.2

-2.4

-1.3

-1.3

-2.6

-0.2

ー

Net sales*Head Office costs include DX and other system costs

Full year

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FY2024 Forecasts Ordinary Income Analysis (YoY)
Sales
volume2.14

Unit sales
pricesIncrease

0.4

Decrease

-0.19

-0.01

Raw
Material
pricesEnergycosts

Total
ProseatBusiness

0.58

-1.71
(JPY billion)

Profit difference +0.21

Fixed
costs,
etc.

-1.74
Non-operating
income/expenses

2.73
2.20

FY2023Results

Difference in ordinary income -0.53 billion yen

FY2024
forecast

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FY2024 Forecasts: Industry Segment(JPY billion)

FY2023Results

FY2024(Forcast)

(A)

1H

2H

Year on year(B)(B) - (A)Net sales

81.2

40.8

42.0

82.8

1.6

102%

<Core business><Proseat business>

44.0
37.2

20.5
20.3

24.4
17.6

44.9
37.9

0.9
0.8

102%
102%

Operating income

1.9

1.2

1.7

2.9

1.0

150%

<Core business>

3.4
-1.5

1.6
-0.4

2.2
-0.5

3.8
-0.9

0.4
0.6

111%
-

<Proseat business>

Both core business and Proseat business to record higher sales YoY and improvements to bottom line
Electronics

Mobility

Mobility

Medical/Healthcare

Light diffusion agents
Packaging materials

Automotive components
Parts packaging materials

Proseat businessConductive gel
Shoe materials

PIOCELAN, EPS
PIOCELAN RNWTECHPOLYMER, PIOCELANPIOCELAN, EPS

ST-gel, ELASTIL

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FY2024 Forecasts: Industry Segment (Core business)(JPY billion)

Net sales

FY2023Results

FY2024
Forecast

Year on year

(A)

1H

2H

(B)

(B) - (A)

44.0

20.5

24.4

44.9

0.9

102%

0.4

111%

Operating income

3.4

1.6

2.2

3.8

<Operating income ratio><7.8%><7.9%><8.9%><8.5%>

Higher sales and profit YoY due to demand recovery in target markets
Electronics
PIOCELANTECHPOLYMER

Up slightly YoY due to recovery in demand for LCD packaging materials andcapturing new demand

Packaging materials

at the panel makers

ELASTIL(JPY billion)

15.5

17.7

18.3

Results

Results(Forecast)

49.8

Net sales
57.6

58.5

Results

Results(Forecast)(Forecast)

Forecast

Up slightly YoY due to recovery in automobile production volume andproactive introduction of PIOCELAN 2.0
Down slightly YoY despite capturing resource-recycling demand, due tolocalization of parts procurement

Medical/Healthcare
ST-gelNet sales

Favorable for main application of LCDs, due to ending of inventory corrections

Mobility
Automotive components

Forecast

Forecast

Net sales

Favorable driven by higher sales of medical electrodes due to recovery in screening
demand, higher sales to low-frequency therapy equipment/other health applications

3.7

3.5

4.0

Results

Results(Forecast)(Forecast)Favorable due to higher sales to training shoes and expansion of sales to other typesof shoe15

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FY2024 Forecasts: Industry Segment (Proseat business)
FY2023Results(JPY billion)

FY2024
Forecast

Year on year

(A)

1H

2H

(B)

(B) - (A)Net sales

37.2

20.3

17.6

37.9

0.8

102%

Operating income

-1.5

-0.4

-0.5

-0.9

0.6

ー

ー

ー

ー

ー

<Operating income ratio>

Despite expecting improvements in both sales and profits YoY, will not be enough to return to profitability
Automotive production volume in Western andCentral Europe (thousand units)
18,577

17,774

Net sales (EUR million)

Spiral-up 2024

13,584300

15,246 14,962
12,828Spiral-up 2024

276

13,526

210

224

232

244

247

2021

2022

2023

2024

FY2024 expected to be lower
than the previous fiscal year

2018

2019

2020

2021

2022

2023

2024

2018

2019

2020

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FY2024 Forecasts: Industry Segment (Proseat business)

・Completed execution of low-profitability program, revisions to raw material and fuel prices
・Reduced/normalized increases in wages and other costs through streamlining/restructuring(JPY billion)

FY23(Plan)

FY23
Results(Forecast)(+3.1)+4.2+1.5(-1.7)-2.8-0.9

Total improvement amount YoY(＋1.4)+1.4+0.6

Proseat business operating income（-1.5)-1.5-0.9

Breakdown of changes in profits

FY24

Passing on of energy and component costs, revisions to product prices+
Improvements

Improvements in productivity, reductions in procurement costs, cuts to labor and other expenses
Profitability improvement from higher sales
Increases in personnel expenses, depreciation, etc.

Increased burden

Expenses for restructuring head office/factory employees

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FY2024 Forecasts: Human Life Segment(JPY billion)

FY2023Results

Net sales

FY2024
Forecast

Year on year

(A)

1H

2H

(B)

(B) - (A)

49.1

25.2

24.0

49.2

0.1

100%

0.4

125%

Operating income

1.8

0.9

1.3

2.2

<Operating income ratio><3.6%><3.6%><5.4%><4.5%>

Higher sales and higher profits YoY due to appropriate passing-on of higher prices andincrease in sheet volumes
Food

Sheets(PSP)

Strong performance expected due to increasing replacement demand
driven by switch away from non-foamed materials enabled by “ESLEN
Sheet PZ series” low-foam PSP, expansion of supply capacity at Oita
Plant, effects of raising selling prices

Beeds
(EPS)

Flat YoY, despite higher sales expected for ESLEN Beads RNW using
recycled raw material, due to weakness in agriculture/fishery

Forecast

Net sales
45.7

42.6

42.8

Results

Results(Forecast)

Net sales

Housing/Energy

Methods for constructing
green roofs

AQUAROAD

Flat outlook overall YoY despite solid orders for construction methods
for green roofs used in urban areas, and AQUAROAD material used for
mitigating sudden torrential rain and other disaster prevention/mitigation
applications

Forecast
6.7

6.4

6.4

Results

Results(Forecast)

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Capital Investment
FY2020

FY2021

FY2022

FY2023

FY2024

Results

Results

Results

Results

PlannedCapital expenditures

5.4

3.8

3.7

5.1

8.4

Depreciation

6.2

6.2

5.7

5.7

6.1

(JPY billion)● FY2023: Invested in production, environmental, and information systems after taking earnings situation into consideration● FY2024: Invest in capacity expansion, labor-saving and energy-saving facilities, the environment, DX, R&D, and workstyle reforms● Main components of capital expenditure

FY2023 Results

FY2024 Plan

・ Restoration/expansion of production capacity

・ Restoration/expansion of production capacity(Oita PSP production facilities)
・ Energy-saving / labor-saving facilities(Oita PSP production facilities)
・ Energy/labor-saving facilities, production innovation facilities

・ Environmental investments (recycling facilities)

・ Environmental investments

・ Information systems investments (DX-related)(facilities to promote resource recycling/CO2 reductions)・ Information systems investments (DX-related)

・ R&D investments (evaluation/analysis)
etc.

・ R&D investments(facilities for new product development)
・ Workstyle reform-related investment(refurbishment of Osaka head office)
etc.

18

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Shareholder Returns (Dividend)

Net income per share(yen)

FY2020

FY2021

FY2022

FY2023

FY2024

Results

Results

Results(Planned)(Forecast)

24.86-130.99

10.00

23.90

18.75

Dividends per share
(yen)

21

12

12

13

13

Dividend payout ratio(consolidated)

84%

－

120%

54%

69%

Acquisition of treasury stock(millions of yen)

141.5

－

Total retum ratio(consolidated)

97%

－

120%

54%

69%

ROE

1.6%

－

0.8%

1.9%

1.5%

－

－

－

● Dividend policy
Targeting a dividend payout ratio of 30-40%, with the decision to be made in accordance with the trend in consolidated
results, and after taking a comprehensive view of the balance between dividend stability and internal reserves
FY2023: 13 yen/share (planned)* interim dividend of 3 yen/share (already paid) + year-end dividend of 10 yen/share (planned)

FY2024: 13 yen/share (forecast)* interim dividend of 3 yen/share + year-end dividend of 10 yen/share

20

Table of Contents
1

FY2023 Financial Results

2

FY2024 Forecasts

3

Topics21

Information on New and Developed Products
ESLEN Sheet PZ (low-foam polystyrene sheet)

50-60% weight reduction(reduction in amount of plastic used)
Low-foamPSPFP Corporation’s “SUSHI TRAY” series of large foodcontainers uses ESLEN Sheet PZ series as its raw material

NonFoamed
plastic

Also leads to reduction in charges under the Act on the Promotion ofSorted Collection and Recycling of Containers and Packaging

In response to need to reduce use of plastic, we expect an increasein demand for products to replace non-foamed plastic containers(Sales began at the end of the FY2023, and early shipments have been promising)22

Information on New and Developed Products
ST-Eleveat (heat-resistant expanded foam)
CFRP composite structure using ST-Eleveat for expanded foam core assessed to be superior to
CFRP member alone in terms of weight, strength, and cost, etc., leading to its adoption

Adopted for the first time for use in structural parts/materials for vehicle seat in a mass-production modelMoving forward with multiple other new development projects over a wide range of applications at a global level

23

Information on New and Developed Products
TECHPOLYMER (polymer particles)
This is a profitable, high value-added polymer particle product thatleverages the polymerization technology that is one of our strengths

・LCD panels: light diffusion/antiglare etc.
・Coatings: matte effect etc.
・Cosmetics: soft-focus effect etc.

Expanding into electronic materials applications for high-speed,
high-capacity communications*Due to its light weight and insulative, low-density, low-refractive index
features, we expect it to find use as a low-permittivity material tosuppress transmission losses in high-speed transmission circuits

Concentrating on expanding this to growth markets as a strategic product that will drive the Group’s growthover the medium to long term

24

Information on New and Developed Products
Non-fluorinated dispersing agentsThis is a non-fluorinated dispersing agent that we developed by leveraging the polymerization
technology that is one of our strengths
We are accelerating commercialization as a substitute material under PFAS regulations**PFAS is a general term for organofluorine compounds, which have excellent properties and are used in a variety of applications, including
textile products, medical devices, electronic devices, products for semiconductor manufacturing, building products and lubricants
In recent years, their use has been increasingly regulated at the global level due to their health and environmental risks, leading to interestin the development of substitute materials● Expected applications
Catechol base which is theadhesive polymer used by mussels(adheres to a variety of materials)

PTFE +
dispersing agent

PTFE
only

Dispersing agent applications in suchareas as paints/coatings, lubricants,
synthetic materials, medical devices,

Ethylene glycol base enables it todissolve into a variety of solvents

electronic materials

Concentrating on expanding this to growth markets as a strategic product that will drive the Group’s growthover the medium to long term

25

Information on New and Developed Products
ST-gel (high functional gel material)
This is a profitable, high value-added high functional gel material thatleverages the polymerization technology that is one of our strengths
・Medical: electrocardiogram measurement, electrodes for electrosurgery
・Healthcare: low-frequency therapy equipment, etc.
・Beauty applications: face packs, etc.

Looking ahead to the expansion of the braintech market*, we are also
developing applications in partnership with startups and other companies(brain wave measurement, transcranial electrostimulation, etc.)*An area of business that uses a blend of neuroscience and IT to analyze the state of the brain inorder to clarify the physical mechanisms that drive it, and uses the mechanisms thus identified ina variety of applications and services

Concentrating on expanding this to growth markets as a strategic product that will drive the Group’s growthover the medium to long term

26

Create Sustainable Star Product* and expand their business
Share of total net sales

Number of registrations

FY2030
FY2023

FY2030100

54

FY2023

60

Results
Plan

40

Results
Plan

23

In response to rising environmental needs, these have grown both in terms of their percentage of net sales

and the number of products registered
Six new products were registered in FY2023, including ESLEN Sheet PZ (low-foam polyethylene sheet)and RETONA FOAM BIO (biodegradable plastic foam)*Our environmentally friendly product bland is Sustainable Star Product.

27

Target recycled and biomass material ratio of 50% or more by 2030

Total production volume

FY2023(Forecast)

19%

2018

2024

2027

2030

The ratio is expanding steadily as a result of increasing the number of grades and growing sales of ReNew+
・ Have started closed-loop recycling proof-of-concept project and voluntary collection activities for expanded polystyrene
・ We obtained ISCC PLUS certification (international sustainable carbon certification) for foam sheet products

28

The Carbon Neutrality Challenge (Reducing CO2 Emissions)

CO2 emissions (ton-CO )2

FY2023(Forecast)

FY2030(Reduction target)

21%

27%
reduction

reduction
FY2018 BM

FY2050Carbonneutrality
achieved

CO2 reduction plan

FY2018FY2021

FY2024FY2027

FY2030FY2050(Reference value)

We have been exceeding the planned rate of reduction through productivity improvements and introductionof renewable energy, etc.
We further enhanced the information disclosure in accordance with the TCFD recommendations(added degree of financial impact from climate change, assessment over time, etc.)
URL: https://www.sekisuikasei.com/jp/news/detail.php?id=289

29Environmental Assessment
The Ministry of the Environment’s Eco-First Program is a certification system under which companies make a commitment
to the Minister of the Environment to engage in initiatives to conserve the environment, with the objective of encouraging
actions among the leading companies of an industry in terms of environmental conservation.

Certified as Eco-First company by the Ministry of the Environment in April 2024

Our Eco-First commitment (summary)● By FY2030, replace 50% materials used to be recycled or biodegradable/biomass-derived raw materials● Act on Promotion of Resource Circulation for Plastics - obtain certification for voluntary collection and resource recycling projectplans, extend polystyrene resource recycling activities throughout Japan● By FY2030, create a total of 100 Sustainable Star Products/achieve a share of 50% or more of net sales(Full text) https://www.env.go.jp/guide/info/eco-first/commitment.html

30

Other: External Assessments
Awarded 3 stars in the 7th NIKKEI Smart Work Management Survey
・Ability to utilize human capital: A+・Ability to open up markets: A+・Ability to innovate: A++

Awarded 3 stars in the 5th NIKKEI SDGs Management Survey
・SDGs strategy/economic value: A++・Social value: A・Environmental value: A+・Governance: A

Certified in the Health & Productivity Management Organization
Recognition Program 2024 (Large Enterprise Category)

We are working to enhance both financial and non-financial aspects of corporate value, including theintangible assets and non-financial capital that are the source of sustainable competitiveness31

Action to Implement Management that is Conscious of Cost of Capital and Stock Price32

I. Our Perception of the Current Situation▶ Our target for FY2030 is ROE of 8.0% or more (announced in January 2023)▶ Actuals for both ROE and PBR both remain at low levels (ROE of 1.9 %, PBR of 0.41× in FY2023)■ Main reasons for low PBRDelays in improving profitability, and low capital efficiency→ Issues are prompt improvements to unprofitable businesses, shift to growth businesses, and improvements in capital efficiency

ROE

PBR

Trend of ROE tracking below cost of equity continues

Is both less than 1.0× and remains at an extremely low level(PBR 1.0×)(Cost of capital 7-8%)%

Fiscal year-end
share priceFiscal year-end
PBR (×)

×

-9.3

yen

33

II. Policies and Targets Aimed at Delivering Improvements
Targets FY2030: ROE of 8.0% or more, operating income ratio of 8.0% or more
FY2024: ROE of 1.5% or more, operating income ratio of 1.9% or more
FY2024 policy
1) Growth strategy: Accelerate shift to high-profitability businesses, growth markets
2) Financial strategy: Build a stable financial position by improving capital efficiency
3) IR strategy: Enhance disclosure, expand constructive dialogue with investors* This year, in preparation for the next Medium-Term Management Plan starting in FY2025, we will undertake further
investigations and set various indicators and targets

Higher ROE
Achieve ROE higher than1) Growth strategy

2) Financial strategy

cost of equity

Reducecost of capital

Growth strategy+
Financial strategy

Higher ROE

IR strategy( maintain PER )3) IR strategy
PBR improvement

34

III. Direction of Initiatives
1. Growth strategy
Basic Approach
Accelerate shift to high-profitability businesses, growth markets*Strategies, indicators and targets will be disclosed again in the next medium-term management plan to be
formulated this fiscal year.

(1) Speed up execution of measures to improve profitability
Drastic reforms of low-profitability businesses
Prioritize allocation of resources to high value-added businesses
Open up new markets, invest for growth, etc.

(2) Promote growth strategy that is integrated with sustainability strategy
Create competitive advantage through Sustainable Star Product* portfolio
Approach environmental regulations as an opportunity to develop new businesses, etc.
*Our environmentally friendly product bland is Sustainable Star Product.

(3) Reinforce our management foundations
Promote DX, SCM reforms
Strengthen human capital management, etc.

Expand in
5 business fields

35

1. Growth strategy
Accelerate entry into growth markets using unique products that leverage our strengths
in order to raise profitability● Environmental and social issues

Growth markets

Global warming, climate change, marine waste problem, food loss problem, depletion of fisheryresources, PFAS regulations, falling birth rate and aging society, labor shortages, extension ofhealthy life, nursing care problem, natural disasters, aging infrastructure…

● Technological innovation
high-speed& high-capacity communication, CASE, foodtech, braintech, technology for using
natural energy…

Our strengths

Foaming/polymerization/nanoparticle/gelling technology,
integrated production from materials to processed products, global network

Food

Direction ofbusiness
expansion‣Materials for industrial-type
agriculture/fisheries‣Technology for retaining
freshness

Electronics‣ Functional materials(low-permittivity materials, etc.)

Mobility‣ Materials for reducing weight‣ Materials to absorb sound/insulate
heat

Medical/Healthcare‣ Remote medical equipment‣ Wearable devices

Housing/Energy‣ Disaster prevention/mitigation
construction methods‣ Materials for renewableenergy facilities

Sustainable Star Product (Environmentally friendly products)

2030 targets

Operating income of ¥13.0 billion, operating income ratio of 8.0%, ROE of 8.0% or more35

36

2. Financial strategy
Basic Approach

Build a stable financial position by improving capital efficiency*Strategies, indicators and targets will be disclosed again in the next medium-term management plan to be
formulated this fiscal year

(1) Stable shareholder returns
・Dividend policy: Dividends are determined in accordance with the trend in consolidated results, and after taking acomprehensive view of the balance between dividend stability and internal reserves
・Dividend payout ratio: Target consolidated dividend payout ratio of 30-40%(2) Improve capital efficiency by making judgments concerning the effectiveness of assets
・Validate both growth investments and assets owned in terms of effectiveness and future cash flows(3) Reduction of strategic shareholdings
・Board of Directors to confirm meaning of holding positions at regular intervals, continue discussions on reductions(4) Improve efficiency of working capital
28

・Enhanced functionality of SCM through promotion of DX → reduce inventories, speed up collection of accounts receivable37

3. IR strategy
Basic Approach

Enhance disclosure, expand constructive dialogue with investors*Strategies, indicators and targets will be disclosed again in the next medium-term management plan to be
formulated this fiscal year

(1) Enhance provision of IR information and dialogue
・Continue constructive dialogue with shareholders and investors (earnings results briefings, one-on-one meetings)
・Make video from earnings results briefings available on website, create pages for individual investors(2) Simultaneous disclosure in English
・Implement simultaneous disclosure in English of earning releases, briefing materials, and other timely disclosure materials(from April 1, 2025 onward)(3) Close the gap to investor expectations
・Share content of dialogue with investors and discuss in more depth on Board of Directors (quarterly/four times a year)
・Enhance information disclosure related to dialogue with investors(4) Convince investors of the likelihood of achieving targets for 2030
・Expand business growth scenarios and value (including non-financial) creation scenarios for 2030 (next medium-term
management plan, integrated report)

38This slide presentation contains forward-looking statements.
These statements are based on current expectations and beliefs.
However, Actual results may differ from those expressed or implied due to various

factors and uncertainties such as changes in the global economy and our business,competition in the market, and regulatory issues.

For inquiries regarding the contents, please contact:
Corporate Communications DeptE-mail : ir_pr@sekisuikasei.com
Please also visit our website: http://www.sekisuikasei.com/