#1SEKISUI CHEMICAL CO., LTD. Drive 2.0 -The 2nd phase for 2030- Copyright SEKISUI CHEMICAL CO., LTD. Presentation of the FY2023-2025 Medium-term Management Plan SEKISUI Keita Kato President and CEO May 23, 2023#2SEKISUI Review of the Previous Medium-term Management Plan, Drive 2022 (FY2020-2022) Copyright SEKISUI CHEMICAL CO., LTD.#3Summary of Drive 2022 Difference from Market Assumptions COVID-19 Prolonged impact of COVID-19 lingered through to FY2022; gradual recovery from the 2Q of FY2020 with the effects projected to dissipate in the 2H under the Medium-term Management Plan (FY2020: state of emergency declaration in the 1Q) New Housing Starts (By Type) SEKISUI Trends in houses for sale focusing on first time buyers were firm, exceeding assumptions under the Medium-term Management Plan Figures in parentheses are assumptions (as of 2020) * Number of Automobiles Manufactured The impact of shortages in the supply of semiconductors eased in FY2022; market conditions recovered to levels assumed under the Medium-term Management Plan BM:FY17 (100%) Privately owned homes Houses for sale Rental homes Total construction starts 104% (98%) 91% (82%) 88% (87%) 85% (71%) 110% BM:FY19 FY17 FY18 FY19 FY20 FY21 FY22 Results (100%) 96% 99% 100% Domestic Naphtha Price 92% 90% 98% Assumptions (As of 2020) 91% Prices substantially exceeded assumptions under the Medium-term Management Plan 80% 80% 70% Results FY19 FY20 FY21 FY22 (\/KL) 56,900 76,600 37,500 Smartphone Shipments Shipments fell below levels assumed under the Medium-term Management Plan owing to prolonged inventory adjustments 43,000 43,000 Assumptions 31,550 (As of 2020) FY20 FY21 FY22 Exchange Rate 105% BM:FY19 103% 141 Results (100%) Assumptions 130 100% 97% 97% 1135 (As of 2020) 124 121 95% 97% 97% \/Euro 118 118 Results 120 110 Assumptions 112 90% (As of 2020) \/US$ 90% 109 106 106 106 85% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Copyright SEKISUI CHEMICAL CO., LTD. 2#4Summary of Drive 2022 (1) SEKISUI Achieved record high net sales, net income, and EBITDA; despite a harsh business environment owing to such factors as the prolonged impact of COVID-19, undertook structural reforms while strengthening profitability to improve earning power ■ROE recovered to the 10% level; advanced ROIC management (JPY billion) Net sales Operating profit (margin) Net income FY2019 results 1,129.3 FY2022 results 1,242.5 FY2022 Medium-term plan 1,220.0 Difference +22.5 88.0 (7.8%) 91.7 (7.4%) 110.0 (9.0%) -18.3 58.9 69.3 70.0 -0.7 ROIC (%) 7.7% 7.6% 8.6% -1.0% ROE (%) 9.7% 10.0% 10.6% -0.6% Overseas sales (ratio) 274.7 (24%) 375.1 (30%) 320.0 (26%) +55.1 EBITDA 133.2 142.1 170.0 -27.9 By Segment HPP Housing UIEP Medical 19.9 20.8 14.7 13.3 14.0 14.4 12.7 11.5 10.9 8.3 OP Margin (%) 8.0 8.0 7.4 7.3 6.1 7.8 10.4 10.5 10.3 10.2 9.1 ROIC (%) 512.9 537.4 548.0 7.5 8.4 404.1 360.0 6.5 240.0 322.4 237.4 227.2 89.7 (JPY billion) 85.0 48.0 44.2 72.6 37.4 44.0 37.8 Net sales 32.8 15.5 17.1 20.0 12.5 12.5 9.2 Operating profit FY19 FY22 FY22 Before PF Medium-term reorganization Plan Fell short of operating profit plans due to the downturn in aircraft demand attributable to COVID-19 and deterioration in electronics market conditions FY19 FY22 FY22 Medium-term Plan FY19 Fell short of plans due to the prolonged impact of COVID-19, sluggish housing market conditions attributable to inflation, and soaring component costs FY22 FY22 Before PF Medium-term reorganization Plan Despite falling short of profit plans due to the surge in raw material prices and sluggish demand, progress in improving selling prices; record-high profits FY19 FY22 FY22 Medium-term Plan Achieved plans on the back of increased sales of COVID-19 diagnostics kits and growth in new pharmaceutical ingredients; record-high profits Copyright@ SEKISUI CHEMICAL CO., LTD. * HPP: High Performance Plastics Company, Housing: Housing Company, UIEP: Urban Infrastructure & Environmental Products Company 3#5Summary of Drive 2022 (2) Achieved record-high net sales on the back of overseas sales SEKISUI Despite offsetting the higher-than-expected surge in raw material prices through improvement in selling prices, cost reduction, etc., and efforts to control fixed costs, fell short of the operating profit target set under the Medium-term Management Plan after failing to achieve sales volumes and product mix due to the drop in demand attributable to COVID-19 and slowdown in economic activity Net Sales Analysis of Operating Profit (JPY billion) (JPY billion) +22.5 Consoli- dated- 1,220.0 1,242.5 1,129.3 Sales Volumes & Cost Product Selling Raw Reduction, Fixed Price Materials etc. Costs Total basis Foreign Change Exchange Mix Difference +1.4 +15.1 -53.0) (+56.1' (-63.8) +27.0 +22.8 -18.3 110.0 -18.3 91.7 88.0 FY2019 Medium-term Plan FY2022 Result FY2022 Medium-term Plan FY2022 Plan Basic Strategies Existing Business Drive (1) Business growth and reform New Business Drive (2) Preparations for long-term growth Business Base Drive (3) Strengthening the ESG management base Copyright© SEKISUI CHEMICAL CO., LTD. Results and Challenges FY2022 FY2019 Results Results <Results>Implemented structural reforms in advance, shifted to high-value-added products, and accelerated improvements in selling prices <Challenges> Growth investments held to certain level <Results> Achieved progress in new business themes; secured advances in the Life Science growth strategy <Challenges> Carryover of business contributions from M&As <Results>Accelerated the practice of ESG management (Group-wide KPI setting and monitoring); continued to received high external evaluations <Challenges> Yet to achieve human resources KPIs (Challenge action rate) 4#6FY2023-2025 Medium-term Management Plan Drive 2.0 -The 2nd phase for 2030- Copyright SEKISUI CHEMICAL CO., LTD. LO 5#7Drive 2.0 Management Policy and Basic Strategies Drive 2.0 -The 2nd phase for 2030- - Management Policy - Realizing our long-term vision through sustainable growth and accelerate strategic innovation Basic Strategy - Three initiatives to enhance corporate value Accelerated growth Organic Growth Strategic Innovation Create & acquire new business by accelerating activities •Enter innovation areas in the "Strategic Area Map" • Establish new business bases for the seven major themes • Establish a new bridgehead in the life science domain (Establishment of a 4th Divisional company) Copyright@ SEKISUI CHEMICAL CO., LTD. SEKISUI Profitability Achieve steady growth of organic businesses and refine portfolio •Expand enhancement areas in the "Strategic Area Map" •Strengthen portfolio management (Optimal resource allocation) Expand growth drivers and pursue consistent structural reforms Products to Enhance Sustainability Strengthening Sustainability Reliability Strengthen ESG management base that contributes to new management policy •Strengthen Group-wide KPI for ESG management initiatives based on materiality *Human capital: Nurture a culture of taking on challenges through active investment in human resources *Environment: Address climate change, resource circulation, and water risks to conserve biodiversity *DX: Strengthen global base and shift to a phase of new creation •Strengthen corporate governance to support the corporate value creation, including the elimination of major incidents Respond to social demands including initiatives for Human Rights and supply chain CO 6#8Drive 2.0 Key Points and Main KPIs Key Points Accelerate strategic innovation for long-tem growth Ensure steady profit growth. ↓ Optimal resource allocation Enter innovation areas SEKISUI Further strengthen ESG management base Refine sustainable management capability Create and expand products that contribute to solving social issues Main KPIs Ensure steady profit growth. Sales of products to enhance Profitability sustainability: Over 1 trillion yen Accelerated growth (FY22 Forecast: 900 JPY billion) Reliability Expand businesses that drive improvement of social sustainability and our sustainable growth Accelerate strategic innovation EBITDA: 175 billion yen Accelerated growth (FY22 Results: 142.1 JPY billion) Maximize returns from past investments and accelerate innovation to generate future earnings Operating profit margin: Over 8% Profitability (FY22 Results: 7.4%) Strengthen each business through role-based resource allocation and portfolio management Foster a culture of taking on challenges Reliability Challenge action rate: 60% (FY22 Results: 47%) To achieve long-term vision to create an energized and engaged company where everyone wants to take on challenges Copyright@ SEKISUI CHEMICAL CO., LTD. 7#9Drive 2.0 Understanding of the External Environment and Market Assumptions SEKISUI ■ The global economy remains unstable and uncertain (VUCA) Number of Automobiles Manufactured (YoY) Forecast moderate growth mainly in China and Europe; Acceleration in the EV ratio (FY2022: 11% → FY2025: 25%) New Housing Starts (By Type) *Forecast data: Company estimates Gradual continued decline in housing starts; the impact of declining market sentiment due to concerns surrounding inflation expected to spread to houses for sale (Thousand units) 860 120% 884 866 850 812 830 800 Other 110% 106% BM:FY22 (100%) 104% 102% 335 331 347 342 320 ■Rental homes 303 310 93% 100% ■Houses for sale 83% 146 144 133 129 144 145 121 ■Privately owned 90% FY22 FY23 FY24 FY25 homes 99% 283 263 281 248 250 280 280 FY2019 →> compared with Smartphone Shipments (YoY) FY19 FY20 FY21 FY22 FY23 FY24 FY25 Domestic Naphtha Price Forecast moderate expansion from the 2H of FY2023; continued improvement in smartphone performance Naphtha price assumption: ¥85,000/KL 120% 110% BM:FY22 (100%) 100% 102% 90% FY22 Copyright SEKISUI CHEMICAL CO., LTD. 107% 108% (\/KL) 76,600 66,000 85,000 85,000 FY2025 FY23 FY24 FY25 FY22 FY23 FY24 FY25 00 8#10Drive 2.0 Target Values (1) SEKISUI FY2022 Previous Medium-term <Forex assumptions> 3Q FY2022 rate: ¥135/$, \137/€ FY2025 *Excluding new M&As, etc. Medium-term Results Medium-term Plan* (JPY billion) Increment* Increment* Net sales 1,242.5 +113.2 Operating profit (margin) Net income ROIC (%) ROE (%) 91.7 (7.4%) 69.3 +3.7 (-0.4%) 1,410.0 115.0 (8.2%) +167.5 +23.3 (+0.8%) +10.4 82.0 +12.7 7.6% -0.1% 8.5% +0.9% 10.0% +0.3% 11.0% +1.0% Overseas sales (ratio) 375.1 (30%) +100.4 (+6%) 480.0 (34%) +104.9 (+4%) EBITDA 142.1 +8.9 175.0 +32.9 By Segment HPP Housing UIEP 12.9 15.5 OP Margin (%) 14.4 10.9 10.1 10.6 10.0 14.0 6.1 6.9 Medical 16.0 12.7 12.0 ROIC (%) 10.4 9.4 8.0 9.6 473.0 580.0 9.0 537.4 7.5 10.3 404.1 396.4 (JPY billion) 261.0 227.2 234.3 112.5 Net sales 61.0 89.7 44.2 Operating 40.1 40.0 32.8 21.2 25.0 17.1 18.0 profit 12.5 FY22 FY22 FY25 Before PF After PF Medium-term reorgani- reorgani- Plan zation Copyright@ SEKISUI CHEMICAL CO., LTD. zation FY22 FY25 Medium-term Plan FY22 FY22 Before PF After PF reorgani- reorgani- zation zation FY25 Medium-term Plan FY22 FY25 Medium-term Plan#11Drive 2.0 Target Values (2) SEKISUI ■ Substantial increase in sales volume and product mix largely on the back of high- performance product sales growth based on the assumption of a partial recovery in market conditions; also focus on securing margins; strengthen human capital investment and preparations for growth while targeting operating profit of ¥115 billion Net Sales (JPY billion) +167.5 1,242.5 Analysis of Operating Profit (JPY billion) Consoli- dated- Sales Volumes & Cost 1,410.0 basis Foreign Product Selling Raw Reduction, Fixed Change Exchange Mix Price Materials etc. Costs Total Deference +0.6 +1.2 +65.8 +26.9) -19.4 -2.3 -54.0 +23.3 91.7 +23.3 115.0 FY2022 FY2022 Results FY2025 Medium-term Plan Results Copyright SEKISUI CHEMICAL CO., LTD. FY2025 Medium-term Plan 10#12Drive 2.0 Investment and Financial Strategies ■ Expand strategic investment limits Allocate generated cash flows mainly to growth fields -Drive 2022- (FY2020-2022) (JPY billion) Operating cash flows Reduction in cross- shareholdings, etc. 53.8 SEKISUI Cash 364.4 IN Investment Plan and Capital Allocation (JPY billion) FY20-22 Plan FY20-22 Results FY23-25 Plan Strategic Normal capital capital R&D Returns to investments investments expenditure shareholders Strategic Limit investments 400.0 41.7 Limit M&A, etc. 300.0 0 Limit 450.0 Limit 300.0 Cash 41.7 126.3 112.6 OUT 117.8 HPP Medical Capital UIEP Housing Other expenditures 100.0 41.7 150.0 Breakdown by segment ESG investment (including strategic -Drive 2.0- (FY2023-2025) (JPY billion) and normal capital 40.0 31.4 30.0 investments) Operating cash flows Debt + reduction in cross-shareholdings Normal investments 100.0 0 126.3 150.0 Cash IN 500.0 Maximum 400.0+a Total 500.0 168.0 600.0 Strategic Normal capital capital R&D investments investments expenditure M&A Returns to shareholders R&D expenditure 130.0 112.6 140.0 Cash OUT 110.0 or 150.0 150.0 140.0 300.0 more Major strategic capital investments (FY2020-2022) Increase in heat release materials production (U.S.) Increase in foam material production (U.S.) Increase in pharmaceutical raw material production (Iwate, U.K.) Increase in FFU production for railway sleepers (the Netherlands) Copyright© SEKISUI CHEMICAL CO., LTD. Breakdown by segment Strategic capital investments Normal investments R&D expenditure More than 70% of investments in the HPP, Medical, and new businesses 11#13Returns to Shareholders ■Continued increase in dividends since FY2010; further strengthen returns to shareholders under the Medium-term Management Plan Returns to Shareholders Track Record Acquisition of treasury shares Total dividend payment (JPY billion) Net profit attributable to owners of parent Dividend payout ratio DOE 69.3 70.0 Total return ratio 66.1 63.5 60.9 59.2 56.7 53.0 41.2 41.5 37.1 27.4 8.0 15.0 16.4 16.8 13.3 16.0 14.6 12.2 9.5 10.0 11.8 13.6 14.7 16.8 19.0 20.5 21.1 21.2 21.9 25.6 28.2 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Plan Cancellation of treasury shares Previous Medium-term Management Plan 35% or higher 3% or higher 50% or higher if the D/E ratio is less than 0.5 Cancel newly acquired shares to the extent that total treasury shares do not exceed 5% of outstanding shares SEKISUI Medium-term Management Plan 40% or higher 3% or higher 50% or higher if the D/E ratio is less than 0.5 Implement additional returns as appropriate, taking into account the investment progress under the Medium- term Management Plan, cash position, and stock price Cancel newly acquired shares to the extent that total treasury shares do not exceed 5% of outstanding shares 2023 Fiscal year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Plan Net profit attributable to 80.1 104.7 115.1 126.1 133.8 141.7 128.8 91.9 83.2 159.2 163.1 owners of parent per share (JPY) Cash dividend per share (JPY) 23 27 30 35 40 44 46 47 49 59 66 Payout ratio 28.7% 25.8% 26.1% 27.7% 29.9% 31.0% 35.7% 51.1% 58.9% 37.0 40.3 Acquisition of treasury shares 10.0 15.0 16.8 16.4 16.0 14.6 13.3 12.2 9.5 27.4 8.0 (JPY billion) Total return ratio*1 52.9% 54.0% 55.5% 54.5% 55.1% 53.0% 58.1% 80.4% 84.6% 76.5% 51.7% DOE*2 2.7% 2.8% 2.8% 3.1% 3.3% 3.4% 3.5% 3.3% 3.3% 3.7% 3.9% Cancellation of treasury shares 12,000 10,000 10,000 8,000 8,000 8,000 5,000 15,000 4,000 (thousands of shares) *1 Total return ratio = (Amount of treasury share acquired + Total dividends) / Net profit attributable to owners of the parent Copyright© SEKISUI CHEMICAL CO., LTD. *2 DOE = Total dividend payment (full year) / Average equity 12#14Copyright SEKISUI CHEMICAL CO., LTD. Basic Strategies 13#15Execution of Growth Strategies Based on Strategic Area Map Strategic Area Map, a compass to achieve the Long-term Vision → Expand enhancement areas and enter innovation areas •Enhancement areas: Areas of prioritized products to be expanded by extending from existing businesses Enhancement areas •Innovation areas: Areas where new innovations are created through fusion, etc. Innovation areas Residential Toward comprehensive housing construction and real estate businesses centered on production technologies Advanced Lifeline Toward growth businesses that build a sustainable social infrastructure globally Healthcare SEKISUI (Seven major promotion themes on next page) Life Science Innovative Mobility Toward high-value-added businesses that evolve lifestyles Next-generation communication components Toward the 4th Divisional company supports a healthy, longevity society on a global scale Data utilization Perovskite solar cells Biorefinery Water use / Recycling Smart city strategy Utilizing digital technology Healthcare i-Construction Lightweight, high- strength materials Sensing system Business strategy New materials / Sensing Smart city strategy Evolution of town and community Overseas (new markets) Elimination of dependence on fossil resources; resource circulation Total lifestyle proposal Digital utilization Utilizing digital technology Healthcare Business strategy Digital health DX support for construction and civil engineering Facility piping of all-plastic Intensified disaster response products High-performance interlayer film Heat release materials Labor saving Semiconductor components Next generation display components Environmentally friendly materials Piping/Systems Housing/Infrastructure Composite Materials Infrastructure/Renewal Housing construction business Mobility field Electronics field Industrial field Overseas (new markets) Elimination of dependence on fossil resources; resource circulation Medical devices Pharmaceutical new modalities API CDMO Cell culture POCT (simple rapid test) Diagnostics field Pharmaceutical sciences field Synergy new business area Real estate business Frontier Prominence in Technology Strategy of each domain and business segments Expand enhancement areas Enter innovation areas 14 Town and community development Total housing proposal Real estate SEKISUI HEIM Enter innovation areas Copyright@ SEKISUI CHEMICAL CO., LTD. Expand enhancement areas#16Basic Strategy 1 Strategic Innovation Accelerated growth SEKISUI ■Seven major themes: Progress in commercialization through core technologies and fusion (internal/external collaboration, M&A); aim for the early establishment of a new business platform and contributions to business results Innovative Mobility Life Science Growth potential businesses ■Entry into aeronautical fields Advanced Lifeline Residential Innovation areas Key themes Core technologies . Development of new applications • Entry into the air mobility market molding technology Begin realizing benefits Realize benefits in earnest Investment benefit realization schedule 2023 2024 2025 2026~ FY2025 business scale: From ¥19.0 billion Next-generation communication components Smart city strategy ■Overseas development of infrastructure materials ■New area of pharmaceutical CDMO ■Perovskite solar cells Biorefinery Copyright© SEKISUI CHEMICAL CO., LTD. Collaboration with telecommunications companies • Development of radio wave environment business • Fusion of town and community development as well as Al digital technologies • Strengthening of overseas marketing • Conversion of base CMO business to CDMO with new modality support • Development of 1 m width production technology • Promotion of demonstration through external collaboration . • Promotion of demonstration through external collaboration • Establishment of resource circulation model Film processing technology Advanced housing, town and community development Infrastructure materials Synthesis of low molecular compounds, microbial cultivation Sealing, deposition, processing technology, etc. Microbial catalyst technology FY2025 business scale: From ¥1.0 billion FY2025 business scale: From ¥25.0 billion FY2025 business scale: From ¥10.0 billion Consider expansion through M&As FY2025 business scale: From ¥0.5 billion Commercialization from FY2026 15#17Basic Strategy 2 Organic Growth Profitability SEKISUI ■ Strengthen business portfolio management. accelerate existing business growth driver expansion ■ Allocate management resources to growth-driving and growth potential businesses on a priority basis New portfolio management: High Clarify the role of each business unit Active Investment Businesses Capital efficiency, profitability Growth driving Growth potential Revenue base Growth-driving Advanced Lifeline Pipe renewal Innovative Improvement Growth potential Mobility Residential Town and community development Real estate (purchase and resale, etc.) Fire resistant and non-flammable Mobility materials (high-performance interlayer film, release materials, etc.) Construction and industrial piping Performance materials (railroad sleepers, etc.) Electronics Molding (semiconductor and display materials) products, sensing Life Science Overseas testing system Pharmaceutical science (CDMO) High Sales growth rate 1. Analyze and evaluate existing businesses from multiple perspectives Profitability (OPI margin), capital efficiency (ROIC), growth potential (sales growth rate) Strategic positioning, position in the industry, future prospects, competitiveness from an ESG perspective 2. Clarify the role of each business→ Appropriately allocate management resources Copyright© SEKISUI CHEMICAL CO., LTD. Achieve more than 90% of incremental profit (EBITDA) from growth-driving and growth potential businesses 16#18Basic Strategy 3 Strengthen the ESG Management Platform Reliability SEKISUI ■ Identify issues of high importance to stakeholders and the Group's management. ■Move toward initiatives that will further contribute to sustainable Group-wide growth by further strengthening ESG management Key issues The Medium-term Plan policy Achieve sales growth through each Company Products to enhance and business expansion strategy sustainability Internal control DX Proactive approach Products to enhance sustainability Net sales Of which Premium Framework> FY22 Forecasts: 900.0 bil yen <440 bil. yen> FY25 Targets Over 1 trillion yen <540 bil. yen> Expand sales of products that drive improvement of our sustainable growth Create and expand products that solve issues by social sustainability and utilizing support programs and taskforce Safety, quality, accounting, legal/ethical, information management • Improve risk foresight and prediction ability •Strengthening the organizational self-purification ability (culture, and people) • Innovate global management base • Accelerate DX in core areas • Secure human resources for DX promotion . • Contribute to solve climate change issues Environment • Promote resource recycling . Human capital . • Minimize water risk and maintain water resources • Realize assignment the right person to the right • Foster a culture of taking on challenges • Promote diversity Reduce and control operational risks to support business risk- taking Secure and develop human resources for DX to drive business transformation leveraging digital technology Focus on creating carbon-free and low-carbon products as well as products for raw material conversion by viewing environmental issues as opportunities Strategically reinforce business leaders and specialized human resources (for technology and DX) to drive growth Copyright@ SEKISUI CHEMICAL CO., LTD. 17#19Basic Strategy 3 Strengthen the ESG Management Platform Environmental initiatives-2050 Earth with preserved biodiversity Climate Reduce fuel-derived GHG emissions; change accelerate the conversion of purchased electricity to renewable energy GHG emission reduction rate (vs FY19) : FY22 Forecast -27%, FY25 target -33%, FY30 target -50% (SBT certification reacquired for the 1.5ºC target) Key initiatives Resource recycling Improve material recycling rate of waste plastic Promote resource conversion of raw material Material recycling rate (in Japan): FY22 Forecast 59%, FY25 target 65% GHG emissions (Scope 1+2) Reliability SEKISUI Roadmap to reducing GHG emissions Increase in GHG emissions due to business growth -26% L-23% Existing reduction target for 2030 2013 level-base -26% Long-term targets Shift to renewable energy for electricity Reduction of GHG from fossil fuel use 2019 New BM 2022 Forecast BAU Updated reduction target for 2030 2019 level-base -50% Production innovation Energy innovation 2050 Net zero Water risks Reduce water withdrawal and COD emissions Minimize business impact Total investment amount to 2030 40 billion yen 2013 Previous BM Energy consumption innovation Facilitation of replacement of aging facilities 2030 BAU 2030 Target 2050 2050 BAU Target Energy procurement innovation Energy creation, shift to renewable energy sources for purchased electricity Emissions trading Production process innovation Accelerated reduction of GHG from fossil fuel use Invest in human capital-Re-skilling/re-learning and career expansion of employees; returns to employees: 12 billion yen to 2025 Policy Key initiatives To achieve long-term vision to create an energized and engaged company where everyone wants to take on challenges, we will foster talents that can adapt to business growth and assign the right talent in the right position (1) Discovery and promotion of best employees Realize nomination and selection of successors ■ Visualize internal careers (2) Acquisition and retention of diverse talents " · Establish a base that can accommodate diverse human resources ■ Maintain and revitalize employees • Develop the next generation of leaders (3) Nurture employees who take on challenges to support the business Human Rights Initiatives Policy Key initiatives Position respect for the human rights of all those people affected by the Group's business as an essential prerequisite for realizing our Long-term Vision (1) Foster and instill a culture of respect for human rights; (2) Implement human rights due diligence and mitigate risks; and (3) Implement a grievance mechanism Copyright© SEKISUI CHEMICAL CO., LTD. 18#20Consolidated Performance Trends Further strengthen earning power; accelerate growth SEKISUI EBITDA 119.9 119.3 126.7 133.4 137.7 137.3 133.2 116.6 137.6: 142.1 153.0 €175.0 1,410.0 (JPY billion) 1,312.0 1,242.5 1,242.5... 1,157.9 Net sales 1,110.91,112.7 1,096.3 1,065.8 1,107.4 1,142.7 1,129.3 1,056.6 72.4% 72.4% 73.8% 71.0% Products to Enhance Sustainability sales ratio 50.2% 56.3% 58.3% 60.6% 66.7% 7.7% 7.3% 7.6% 7.6% 8.0% 8.5% ROIC 10.9% 10.9% 11.3% 11.2% 11.1% 200.0 or more 5.4% 9.4% 9.7% 10.0% 10.0% 10.0% 11.0% O ROE 8.2% 9.1% 9.0% 8.4% M&A 8.2% 7.7% 1.4% 7.4% 7.6% OP margin 6.5% 7.4% 7.7% 7.8% 5.5% 115.0 6.4% 100.0 18.0 96.5 99.2 Operating profit Medical*1 85.8 89.8 95.7 9.6 88.0 HPP Housing UIEP 82.5 36.1 46.0 53.4 9.2 67.3 88.9 91.7 91.7 11.2 12.5 12.5 54.5 57.8 44.9 37.4 7.0 42.4 44.2 40.1 13.5 61.0 48.0 28.9 41.1 41.3 36.4 6.5 3.6 13 37.5 37.9 39.0 37.8 12.8 14.8 15.0 15.5 37.5 35.3 32.8 32.8 35.0 11.3 14.1 17.1 21.2 22.2 40.0 25.0 Other FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY20222 FY2023 *1 Medical Business included in the HPP Before PF After PF Plan reorgani- reorgani- Company prior to FY2017 zation zation Spread of COVID-19 02/2020 02/2022~ Russia: Incursion into Ukraine FY2022 FY2023 137 JPY 133 JPY External environment Forex rate*2 1 USD 04/2014 Consumption tax raised from 5% to 8% 03/2018 Emerging concerns toward global trade friction 10/2019 Consumption tax raised from 8% to 10% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 100 JPY 110 JPY 120 JPY 108 JPY 111 JPY 111 JPY 109 JPY 106 JPY 112 JPY *2 Avg. rate for each term Copyright@ SEKISUI CHEMICAL CO., LTD. FY2025 Medium-term Plan FY2030 Vision 2030 *3 FY2025 135 JPY Assumption from FY2023 19#21High Performance Plastics Company Copyright SEKISUI CHEMICAL CO., LTD. Ikusuke Shimizu Company President 20#22Summary of Drive 2022 (FY2020-2022) HPP Company SEKISUI Promoted efforts to strengthen earnings power through cost innovations throughout the supply chain and improving the profitability of SEKISUI AEROSPACE CORPORATION and other operations; despite offsetting the surge in raw material prices through improvements in selling prices, fell short of operating profit plans due to the substantial impact of the slump in electronics and other global market conditions Divisional Company and Three Strategic Field Net Sales (JPY billion) Priority Implementation Measures Strategic capital . Boost foam material production capacity (U.S.) Expand the heat release material business (U.S.) Binder resins for MLCCS Boost production capacity (Japan) FY19 Results FY22 Results FY19→ FY22 Difference FY22 Medium-term Plan Difference from the Medium-term Item Measures Plan Total HPP 322.4 404.1 +81.7 Growth invest- ments investments 360.0 +44.1 Company (25.3 JPY billion) Electronics 57.2 61.3 +4.1 66.7 -5.4 Mobility 113.8 156.2 +42.4 130.4 +25.8 Building and 68.4 88.4 +20.0 78.4 +10.0 Infrastructure Structural reforms Analysis of Operating Profit (JPY billion) Consoli- Sales dated- Volumes & Cost basis Foreign Change Exchange Product Mix Selling Raw Price Materials Reduction, Fixed etc. Costs Total Difference 0 +12.7 -29.0 (+38.4) (-37.6, +4.1 (-29.0) (+38.4) +7.5 -3.8 48.0 FY2022 Medium-term Plan Copyright@ SEKISUI CHEMICAL CO., LTD. FY2022 Results M&A (-JPY billion) • Drastic review of underperforming businesses and reorganization of bases Rationalization of SEKISUI AEROSPACE CORPORATION production; reform of the product portfolio Results and Challenges <Results> • Offset the impact of a surge in raw material prices through improvements in selling prices and such measures as cost reduction . • Improved costs through a variety of factors, including innovation throughout the supply chain and the structural reform of businesses • Promoted sales growth of mainly high-performance interlayer films for HUD use Reduced GHG emissions by 21% compared with FY2019 <Challenges> • Delay in sales growth in the three strategic fields -3.8 44.2 21#23Drive 2.0 (FY2023-2025) Targets HPP Company SEKISUI Despite an upswing in fixed costs due to preparations for growth and increased. investment in human capital, plans for substantial increases in sales and operating profit through increases in the sales volume and product mix and successful efforts to secure margins through expansion in the three new strategic fields Net Sales (JPY billion) +76.6 473.0 396.4 FY2022 Results Copyright@ SEKISUI CHEMICAL CO., LTD. Analysis of Operating Profit (JPY billion) Consoli- dated- basis Foreign Change Exchange Mix Sales Volumes & Product Selling Price Cost Raw Materials Reduction, Fixed etc. Costs Total Difference 0 +1.5 (+38.5) (+6.9) -3.6 -4.6 -17.8 Electronics: +11.0, Mobility: +20.0 Industrial +7.5 +20.9 By-product market conditions -4.3, LNG impact-3.8, Cost Reduction +3.5 +20.9 40.1 61.0 FY2022 Results Marginal Profit: +37.1 FY2025 Medium-term Plan FY2025 Medium-term Plan 22#24Three New Strategic Fields Sales and KPIs Electronics Electronics (semiconductor and display materials) Focus on expanding sales in the non-LCD field • Semiconductors / electronic parts: Tapes for semiconductor processing use, binder resins for MLCCs, Build-up (BU) dielectric film sales growth . . Exterior parts / mechanism components: Bio product sales growth Next-generation displays: OLED-related sales growth Net sales (JPY billion) Mobility Mobility (high-performance interlayer film, release materials, etc.) ■Drive growth on the back of efforts aimed at expanding high-value-added product sales, increased aircraft-related demand, and improvements in SEKISUI AEROSPACE CORPORATION profitability • Interlayer films: HUD-use/thermal- / and design-related sales growth . Heat release materials: Accelerated EV-related sales growth mainly in Europe and the U.S. SEKISUI AEROSPACE CORPORATION: Return to profit in FY2024 Net sales (JPY billion) • • • HPP Company SEKISUI Industrial Molding products, sensing Strengthen the earnings base • Labor-saving, environmentally friendly product growth Molded products: Clean container (environmentally conscious) sales growth • Sensing devices: Expansion into nursing care and clinical fields Efforts to strengthen the profitability of general products Net sales (JPY billion) 53.3 58.5 228.7 74.6 213.4 191.3 104.4 110.8 119.0 FY22 FY23 Plan ~ FY25 Medium-term Plan KPI: Focus on the non-LCD field Non-LCD field sales ratio FY22 FY23 Plan FY25 Medium-term Plan KPI: High-performance interlayer film sales growth YoY percentage sales growth in high- performance interlayer film sales volume FY22 FY23 Plan FY25 Medium-term Plan KPI: Labor-saving, environmentally friendly product sales growth YoY sales growth rate 67% 68% 73% 105% 107% (JPY billion) 20.4 Liquid 18.6 Crystal 17.7 ■ Non-LCD 54.2 35.4 40.0 112% 130% 106% ■Standard films (JPY billion) 9.7 8.1 8.0 ■ High- performance interlayer films ■ Environmen- tally friendly ■Labor-saving 29.0 21.8 23.5 FY22 FY23 Plan FY25 Medium-term Plan FY22 FY23 Plan ~ * FY2022 and FY2023 are YoY data; FY2025 is compared with FY2022 FY25 Medium-term Plan FY22 FY23 Plan * FY2023 is YoY data; FY2025 is compared with FY2022 FY25 Medium-term Plan Copyright@ SEKISUI CHEMICAL CO., LTD. 23#25KPIs HPP Company SEKISUI Prioritized Product Sales Growth • Heat release materials: Aim to double sales (+10 billion yen compared with FY2022) by steadily capturing global EV demand ⚫BU films: Aim to increase sales and secure full-scale commercialization through high transmission performance Supply Chain Cost Innovation Part 2 • Generation a profit of 11.3 billion yen (compared with FY2022) through cost innovations throughout the entire supply chain <FY2022 results compared with FY2025> 3.2 (JPY billion) ■Build-up films 1.3 1.0 19.6 ■ Heat release materials 0.4 11.7 9.6 3.9 FY19 FY22 FY23 Plan FY25 Medium-term Plan (JPY billion) 5.2 0.2 3.9 11.3 2.0 Purchasing Production Sales Distribution/ DX Increase in profit • Status of GHG Reduction Began considering measures to reduce heat-derived GHGs, progress toward a 50% reduction by 2030 in line with plans 0% <Prioritized Product: Heat Release Materials > • Heat release materials that contribute to longer battery life in response to requirements following the shift to EVs; high thermal conductivity and low outgassing performance -21% -23% -30% (kt-CO2) ■Electricity derived ■Steam derived Gas derived 639 507 495 167 450 162 168 234 174 183 191 178 221 147 121 82 2019BM 2022 2023 2025 Copyright@ SEKISUI CHEMICAL CO., LTD. 24#26Performance Trends and Medium-term Management Plan Targets HPP Company SEKISUI Drive Group-wide growth as a highly profitable divisional company by expanding in the three strategic fields, centered on Mobility, and continuing to strengthen profitability Performance Trends FY2014-2016 FY2017-2019 SHINKA!-Advance 2016 SHIFT 2019 -Fusion- FY2020-2022 Drive 2022 FY2023-2025 Drive 2.0 15.9% 15.2% 14.3% 13.2% 11.8% 13.3% 12.9% OP margin ROIC 12.5% 11.6% 10.9% 10.1% 11.2% 9.3% 12.0% 10.9% 9.1% 9.8% 10.4% 10.5% 9.4% 6.7% 473.0 427.7 404.1 (JPY billion) 396.4 315.6 315.0 319.4 341.3 358.8 366.0 322.4 292.8 309.9 61.0 Net sales 44.9 46.5 48.5 44.9 39.6 37.4 42.4 44.2 48.0 48.0 40.1 Operating 28.9 profit (Fiscal Year) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 Before PF Medium-tem reorganization Plan 2022 After PF reorganization 2023 Plan 2025 Medium-tem Plan FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2025 Forex 1 USD rate 1 EUR 110 JPY 120 JPY 108 JPY 139 JPY 133 JPY 119 JPY 113 JPY 121 JPY 111 JPY 109 JPY 106 JPY 112 JPY 115 JPY 133 JPY 135 JPY 128 JPY 121 JPY 124 JPY 130 JPY 131 JPY 142 JPY 137 JPY 09/2017 Polymatech Japan 12/2017 2H 2019 05/2023 Assumption from FY2023 SoflanWiz Main M&As and Strategic Investments Copyright SEKISUI CHEMICAL CO., LTD. 06/2015 Started operations at the Thai CPVC factory 12/2017 Started operations at a new interlayer film production line (Mexico) 04/2018 Operations commence at a new automotive exterior parts plant in Japan SEKISUI AEROSPACE CORPORATION 2018-2019 Start of operations at new foam plants in Thailand and China Decision made to increase Production capacity of polyvinyl acetal resin 2H FY2020 Start of operations at a new interlayer production line (Europe) 2H FY2023 Start of operations at a new heat release materials plant in North America FY2024 Start of operations at a new foam production line in North America 25#27Copyright SEKISUI CHEMICAL CO., LTD. Housing Company Toshiyuki Kamiyoshi Company President 26#28Summary of Drive 2022 (FY2020-2022) Housing Company SEKISUI ■ Achieved sales plans in overall terms owing to growth in the Subdivision and Ready-built Housing, Real Estate, and Town and Community Development businesses despite rapid changes in the market environment ■ Operating profit fell substantially below plans owing to a decline in the number of houses sold and the impact of soaring raw material prices Net Sales ■ Housing Renovation Other (JPY billion) -10.6 Analysis of Operating Profit (JPY billion) Marginal Sales Factors Renovation Renovation Other Other Profit Fixed Marginal Factors Costs Profit Fixed Marginal Fixed Special Costs Profit Costs factors Total Difference 548.0 537.4 68.0 76.4 Number of houses 100.0 sold: -1,580 units -17.9 -1.2 +8.6 +0.2 -0.8 -1.0 +1.0 -0.1 -12.2 Components and other: -15.0 Product Mix, Cost Reduction, etc.: +13.8 97.3 370.0 363.6 44.0 -11.2 32.8 Housing Stock Other FY2022 Medium-term Plan FY20222 Results Basic Strategies Three growth strategies • Strengthen the Subdivision and Ready-built Housing businesses to capture a share of volume zone markets Strengthen smart and resilience functions Fortify the business structure ⚫ Realize the effects of production company integration / promote the leveling out of sales and production Realize low-cost operations for ready-built houses ●Renovation: Strengthen contact with customers, expand sales of smart products Real Estate: Increase the number of dwelling units under management, Expand apartment renovation orders, Promote purchase and resale branding •Town and Community Development: Establish businesses ●Residential Service/Overseas: Restructure the business base Copyright© SEKISUI CHEMICAL CO., LTD. FY2022 Medium-term Plan Housing -10.5 Results " Challenges Results • Challenges Renovation -0.6 Other* FY2022 Results Results and Challenges Subdivision housing order ratio 29% (+6%) ZEH ratio 94% (+16%), solar (PV) ratio 89% (+12%), storage battery ratio 83% (+31%) Promote and solidify efforts to attract customers and negotiations using online tools · Detached housing market share in Japan 2.5% (+0.1%) * SEKISUI CHEMICAL estimate ⚫ Decrease in the number of houses sold against the backdrop of COVID-19 and high inflation (-550) " © Decrease in profitability * Data in parentheses vs. FY2019 " Increase in renovation for Heim owner orders per sales staff, improvement in the gross profit margin Launched and established the purchase and resale BeHeim brand Failure to achieve plans owing to a lack of growth speed Results Achieved Town and Community Development Business growth in excess of plans; progress in diversifying procurement and schemes Challenges . Weak Residential Services and Overseas businesses owing to the impact of COVID-19 *Other (Real Estate, Town and Community Development, Overseas, Residential Services. HEIM DENKI) 27#29Drive 2.0 (FY2023-2025) Targets Housing Company SEKISUI Focus on improving Housing Business profitability; push forward divisional company expansion. through each of the Renovation, Real Estate, and Town and Community Development businesses; focus on strengthening the portfolio by deepening efforts in core domains and leaping forward in and exploring frontier domains in each business Net Sales Analysis of Operating Profit ■ Housing Renovation Other (JPY billion) Marginal Sales Profit Fixed Marginal Fixed Marginal Fixed Special Factors Factors Costs Profit factors Renovation Renovation Other Other Costs Profit Costs Total (JPY billion) +42.6 Difference 580.0 537.4 Number of houses 95.0 sold: +300 units +3.3 +5.5 -6.1 +4.4 -2.5 +4.2 -2.1 +0.5 +7.2 Components and other: -14.0 Product Mix, Cost Reduction, etc.: +19.5 76.4 97.3 110.0 363.6 375.0 32.8 +7.2 40.0 FY2022 Results FY2025 Medium-term Plan *Operating profit only, excluding the impact of special factors (including newly consolidated companies) FY2022 FY2025 Difference (JPY billion) Net sales Operating Net sales profit Operating Net profit sales Operating CAGR profit Housing 363.6 20.7 375.0 23.3 +11.4 101% +2.7 Stock (Renovation) 97.3 7.9 110.0 9.8 +12.7 104% +1.9 Stock (Real Estate) 52.5 3.3 63.0 4.4 +10.5 106% +1.1 FY2022 Results Housing +2.7 Renovation +1.9 Other* +2.1 FY2025 Medium-term Plan *Other (Real Estate, Town and Community Development, Overseas, Residential Services. HEIM DENKI) Business portfolio Frontier Subdivision/Ready- built houses For non-Heim owners Purchase and resale of Heim/ Asset utilization etc. Core Contract For Heim owners Rental Management, Brokerage Town and Community Development 12.7 0.9 20.0 1.3 +7.3 116% +0.4 Copyright@ SEKISUI CHEMICAL CO., LTD. All 28#30Core Frontier Initiatives by Business (Housing and Other) Housing Company SEKISUI Focus on expanding subdivision and ready-built housing sales and raising product competitiveness to increase the number of houses sold (+300 vs. FY2022) Optimize long-term business and production systems and work to improve profitability against the backdrop of the forecast accelerated pace of market maturity Measure 1 Further Strengthen the Three Growth Strategies all businesses] [Common to Core Businesses ●Product Strategy Smart House-related Indicators 94% 95% • Evolve Smart House No.1 Strategy 85% 92% Further strengthen smart and resilience performance 80% 89% 83% 85% (Including energy self-sufficient models) •Develop products in line with areas and markets 62% ■ZEH ratio ■■Solar(PV) ■Storage battery (Including ready-built housing FY22 FY23 and housing complexes) FY20 *ZEH, solar power generation system excluding Hokkaido Number of Orders, Subdivision Housing Order Ratio ●Land Strategy •Strengthen procurement 23% 29% 32% Train responsible personnel by introducing an in-house qualification system 12,340 11,000 11,500 2,820 3,150 3,650 (UNITED HEIM PARK) FY22 FY25 Measure 2 Improve Profitability •Strengthen and respond flexibly to purchasing and pricing measures • Strengthen efforts to monitor market conditions; promptly consider and implement management and hedging measures •Consider optimizing business and manufacturing systems from a long-term perspective • Increase productivity through the fusion of technical divisions (Technical value chain innovation) ⚫CR (including standardization, shortening of construction period, in-house production, improvements in yields) •Increase functions and added value •Ready-built hosing low-cost operations ●Shift personnel to growth domains (frontier domains including other businesses) •Promote the appeal of smart and resilience subdivision housing sites ⇒ Number of subdivision housing orders +500 Subdivision housing order ratio 32% (+3% vs. FY2022) •Attracting Customers FY19 ■Subdivision housing (conditional + ready-built housing) •Improve the ability to attract customers and negotiation efficiency through face-to-face and digital proposals • Strengthen area management through reorganization • Strengthen the component procurement BCP ⚫ DX, capital investment (including the promotion of RPA and automation of design and production) • Strengthen management's ability to sustain business (safety, quality, compliance) Copyright@ SEKISUI CHEMICAL CO., LTD. 29#31Initiatives by Business (Renovation, Real Estate, Town and Community Development) Housing Company Proactive allocate management resources mainly to frontier domains, promote fusion between businesses and external parties, and work to expand the size of business SEKISUI mon Com- Core Frontier Renovation Renovation for Heim owners •Strengthen the sales structure •Strengthen high-value-added renovation (Smart and resilience, thermal insulation, etc.) •Strengthen Renovation for non-Heim owners •Strengthen brands, expand development areas •Capital and business alliance with Renoveru, Inc. (announced on April 18) Real Estate Real estate (purchase and resale, etc.) Town and Community Development •Rental management -Increase the number of dwellings under management •Strengthen points of customer contact •Promote the inclusion of properties not currently managed •Strengthen collaboration between the New Housing Construction and Town and Community Development businesses →> Number of dwelling units (55,000: +5,000 vs. FY2022) •Strengthen the organization and personnel customer relationship ⚫Explore M&As and business alliances ●Purchase and resale of Heim/ Asset utilization •Expand the BeHeim business • (Expand into housing complexes) Strengthen real estate held (Increase rental revenue and gain on sales) Promote the creation of synergies between the Real Estate (including purchase and resale) and Town and Community Development businesses Housing complex renovation → Target a net sales scale of ¥10 billion Orders by Renovation Product ■Others ■Storage batteries, PVs, etc. Real Estate Business Sales Town and community development •Manage progress of FY2025 sales projects (procurement completed) •Undertake preparation for FY2025 and beyond •Increase the number of staff, cultivate channels ●Search for new areas •Asset Business (coordination with the Real Estate Business) Town and Community Development Business Sales ■Number of projects for sale 9 6 TO FY2025 Nine new projects scheduled for sale (JPY billion) External sales *Data in 97.0 parentheses YoY 92.0 (105%) CAGR 110.0 10.0 Frontier (purchase and resale, asset, etc.) ■Core (rental management, general brokerage, etc.) (JPY billion) 63.0 For non- Heim owners (109%) 5.7 104% 84.5 5.2 9.2 4.9 5.9 47.7 9.1 50.5 52.5 10.0 13.0 10.2 CAGR 106% 2 20.0 5.4 100.0 80.9 82.1 74.2 For Heim owners 50.0 38.6 40.5 42.3 (JPY billion) 12.7 7.8 CAGR 116% 3.9 FY20 Copyright@ SEKISUI CHEMICAL CO., LTD. FY21 FY22 FY25 Medium-term Plan FY20 FY21 FY22 FY25 Medium-term Plan FY20 FY21 FY22 FY25 Medium-term Plan 30#32Performance and Medium-term Management Plan Targets Housing Company SEKISUI Work to increase profit and return to pre-COVID-19 levels by deepening efforts in core domains (improving profitability) and leaping forward in and exploring frontier domains (strengthening the portfolio) based on the assumption of a harsh business environment Position as a growth stage to achieve the Long-term Vision; work toward becoming a comprehensive housing construction and real estate business centered on production technologies Performance Trends FY2014-2016 FY2017-2019 SHINKA!-Advance 2016 SHIFT 2019 -Fusion- FY2020-2022 Drive 2022 FY2023-2025 Drive 2.0 ROIC 15.8% 20.8% 15.5% 19.9% 14.0% 14.4% 14.2% OP margin 8.4% 7.7% 7.7% 7.6% 7.7% 7.4% 8.0% 6.3% 6.9% 6.1% 6.2% 6.9% 580.0 (JPY billion) 537.4 548.0 561.0 494.1 485.0 473.4 497.8 512.9 506.7 515.2 485.3 Net sales 44.0 41.3 36.4 37.5 37.9 39.0 40.0 37.8 35.3 32.8 35.0 Operating profit 30.5 (Fiscal Year) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 2023 Medium-tem Plan Plan 2025 Medium-tem Plan 04/2014 09/2014 02/2016 04/2016 02/2020~ External Environment Consumption tax raised from FIT problem 5% to 8% Introduction of a negative interest rate policy Kumamoto Consumption Spread of Earthquake tax raised from COVID-19 8% to 10% 10/2019 02/2022~ Russia: Incursion into Ukraine Copyright@ SEKISUI CHEMICAL CO., LTD. 31#33Urban Infrastructure & Environmental Products Company Copyright SEKISUI CHEMICAL CO., LTD. Yoshiyuki Hirai Company President 32#34Summary of Drive 2022 (FY2020-2022) UIEP Company SEKISUI Despite falling short of sales and profit plans owing to the decrease in sales volumes and product mix attributable to COVID-19 as well as the surge in raw material prices, achieved record high profits by securing margins on the back of thoroughgoing efforts to improve selling prices as well as cost reductions, controlling fixed costs, and promoting structural reforms Analysis of Operating Profit (JPY billion) Priority Implementation Measures Consoli- dated- basis Foreign Change Exchange Sales Volumes & Product Mix Item Cost Selling Raw Reduction, Fixed Price Materials etc. Costs Total Growth invest- ments Difference +1.5 +0.5 -15.6 +17.7 -11.2 -1.4 +5.6 -2.9 Measures Strategic investments • Draft a plan to construct a plant for railway sleeper FFUS in Europe • Establish the Chiba Solution Center 20.0 FY2022 Medium-term Plan Priority Indicators Prioritized Products Sales . Fell short of plans owing to the drop in non-residential demand attributable to COVID-19 (JPY billion) 55.0 37.6 40.0 • Bring 56 new products to market Withdraw from construction and installation (Japan and overseas) New products . Structural reforms 17.1 -2.9 Overseas Sales FY2022 Results Productivity Innovation Despite the impact of COVID-19, overseas sales driven by piping materials for plants underpinned by successful efforts to capture semiconductor demand (JPY billion) 41.0 41.3 31.3 FY19 Results FY22 FY22 Medium-term Results Plan FY19 Results FY22 FY22 Medium-term Results Plan • Withdraw from underperforming business (Japan and overseas) Integrate the management and reorganize items of domestic production subsidiaries • Introduce and implement DX tools Secure progress in manufacturing automation investments Results and Challenges <Results> • Record-high profit Improved capital efficiency owing to the promotion of structural reforms, including withdrawal from underperforming businesses • Strengthened the profitability of general products through thoroughgoing efforts to maintain margins and flexibly improve selling prices in response to the surge in raw material prices <Challenges> Substantial shortfall in prioritized product net sales compared with the Medium-term Management Plan • Need to strengthen overseas marketing activities Copyright@ SEKISUI CHEMICAL CO., LTD. 33 33#35Drive 2.0 (FY2023-2025) Targets UIEP Company SEKISUI ■ Target operating profit of ¥25.0 billion by increasing sales volumes and product mix through upswings in prioritized product and overseas sales as well as efforts to secure margins by maintain selling prices Net Sales (JPY billion) Analysis of Operating Profit (JPY billion) Consoli- dated- Sales Volumes & Cost Japan Overseas basis Foreign Product Selling Raw Reduction, Fixed Change Exchange Mix Price Materials etc. Costs Total +26.7 Deference 0 -0.3 +6.1 +6.0 (-1.8 -1.8-1.4 -7.6 +3.8 261.0 234.3 53.0 41.7 21.2 +3.8. 25.0 208.0 192.6 FY2022 Results FY2025 Medium-term Plan FY2022 FY2023 Plan Copyright SEKISUI CHEMICAL CO., LTD. 34#36Three New Strategic Fields Pipe Systems Construction and industrial piping Construction, piping materials for plants: Expand sales centered on new products CPVC compounds: Expand new customers Core businesses: Expand applications Net sales (JPY billion) 118.0 113.7 Core businesses ■Prioritized Products and Overseas Sales 131.6 . Building and Infrastructures Fire resistant and non- flammable materials Composite Materials Performance materials (railroad sleepers, etc.) Fire resistant materials: Create new markets through new products FFUS (railway sleeper application): Accelerate overseas expansion High flowrate drainage systems: Expand into the non-residential domain Nursing care and high-performance bathtubs: Expand sales Net sales (JPY billion) Core businesses UIEP Company SEKISUI Infrastructure Renovation Pipe renewal • Pipeline renewal Japan : Expand markets where we can leverage our unique technologies through new products Overseas: Efforts to cultivate new customers Sekisui Aqua System Co., Ltd. Expand functional tanks and water treatment systems Net sales Prioritized Products and Overseas Sales (JPY billion) 89.1 Core businesses Prioritized Products and Overseas Sales 79.5 82.3 30.5 33.7 36.3 FY22 FY23 Plan FY25 Medium-term Plan FY22 FY23 Plan FY25 Medium-term Plan FY22 FY23 Plan FY25 Medium-term Plan Product Examples Fire-resistant drainage system CPVC resin compound Non-flammable urethane Nursing care bathtubs SPR-SE Omega-Liner Method Reinforced plastic composite pipes Rainwater storage systems CROSS-WAVE Copyright© SEKISUI CHEMICAL CO., LTD. High flowrate drainage system FFU railway sleepers Functional tanks Rotary disk 35#37Growth Strategies UIEP Company SEKISUI Work to expand sales of prioritized products by increasing orders through marketing DX activities and maximizing synergies after PF reorganization promoting the appeal of SDGs Work to expand and deepen overseas areas by realizing the effects of growth investments and cultivating new customers Prioritized Products Sales 57.5 47.5 11.6 43.3 9.1 9.2 ■Infrastructure 20.8 Renovation 17.9 16.2 ■Building and Infrastructures 25.2 Composite Materials 18.0 20.5 ■Pipe Systems FY22 FY23 FY25 Plan Medium-term Plan Priority Measure • • Further sophistication of marketing DX (cultivate potential customers through the use of digital marketing) Strengthen proposal capabilities through the use of the Ritto / Chiba Solution Center Upgrade and expand SDG contribution data New Product Sales 27.9 23.8 22.3 ■New market creation products 8.7 8.8 19.0 ■New products in existing markets 15.0 13.6 8.9 Sales up to five years after market release FY22 FY23 Plan FY25 Medium-term Plan Priority Development Measures Concentrate development costs and man-hours on new market creation themes (strengthen fundamental technologies) • Strengthen activities in resource recycling-related themes Copyright SEKISUI CHEMICAL CO., LTD. Overseas Sales 53.0 5.2 41.7 43.4 7.1 3.1 3.5 5.1 5.8 40.7 33.5 34.1 The Americas ■Europe ■Asia and other FY22 FY23 Plan FY25 Medium-term Plan • • Priority Measure Realize the effects of growth investments (FFU plant in Europe, piping materials for plants in Taiwan) • Put in place, upgrade, and expand an overseas marketing structure and systems • Search for and secure achievements in M&As PF Reorganization Synergy Creation Newly Included Businesses Fire resistant materials (Sekisui SoflanWiz Co., Ltd.) Crosswave products PVC materials Existing Businesses and Technologies Construction and building materials Customer and property database Reinforced plastic composite pipe (RCP) Products molding technologies . Examples of Synergy Growth in compartment penetration field sales • Growth in non-residential field sales (Plants, warehouses) • O Growth in rainwater drainage field sales (Public and private sector complementary proposals) Growth in CPVC compound sales through solutions (technical services) that address customer (overseas molding M) needs 36#38Performance Trends and Medium-term Management Plan Targets UIEP Company SEKISUI ■Target substantial increases in both sales and profit by focusing on continued efforts to maintain margins and expanding prioritized product and overseas business sales Work to achieve an operating profit margin around the 10% level by increasing profitability through the use of DX and improvements in productivity Performance Trends FY2014-2016 FY2017-2019 SHINKA!-Advance 2016 SHIFT 2019 -Fusion- FY2020-2022 Drive 2022 FY2023-2025 Drive 2.0 10.0% 9.8% 8.0% 7.8% 10.6% 9.5% 7.3% 6.8% 6.3% 6.2% 5.3% 9.0% 9.2% 5.3% 8.3% ROIC 7.5% 6.5% 5.5% 6.6% OP margin 1.6% 0.6% 261.0 (JPY billion) 240.3 239.2 239.2 237.4 227.7 226.3 227.2 240.0 234.3 241.6 Net sales Operating profit H 12.8 204.6 211.8 25.0 20.0 21.2 22.2 14.8 15.0 15.5 17.1 14.1 11.3 (Fiscal Year) 3.6 1.3 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 2022 2023 Before PF Medium-tem After PF Plan reorganization Plan reorganization 2025 Medium-tem Plan External Environment 04/2014 Consumption tax raised from 5% to 8% Copyright© SEKISUI CHEMICAL CO., LTD. raised from 8% to 10% COVID-19 10/2019 02/2020~ 07-08/2021 Consumption tax Spread of Tokyo Olympic Games 37#39Copyright SEKISUI CHEMICAL CO., LTD. Medical Business Futoshi Kamiwaki Director, Senior Managing Executive Officer Head of Business Strategy Department 38 88#40Summary of Drive 2022 (FY2020-2022) Medical Business SEKISUI ■Steadily expanded the Diagnostics Business in Japan and overseas; expanded sales of COVID-19 diagnostics kits, secured contributions to earnings also from new pharmaceutical ingredients, and growth in line with the Medium-term Management Plan; achieved record-high profit for two consecutive fiscal years Three Business Net Sales (JPY billion) Priority Implementation Measures FY19 Results FY22 Results FY19→ FY22 Difference FY22 Medium- tem plan Difference from the Medium- term Plan Item Measures Growth initiatives Strategic investments Total Medical 72.6 89.7 +17.1 85.0 +4.7 business Diagnostics 28.5 30.9 +2.4 32.0 -1.1 (Japan) Diagnostics 30.3 41.2 +10.9 36.8 +4.4 (Overseas) New products • • Pharmaceutical 13.6 17.6 +4.0 18.2 -0.6 Sciences Structural reforms Analysis of Operating Profit (JPY billion) Consoli- dated- basis Foreign Change Exchange (Japan) Diagno- stics Diagno- Pharmaceutical stics (overseas) Science and Fixed Other Costs Total Deference 0 +1.9 -2.2 -1.1 +0.4 +0.9 0 12.5 FY2022 Medium-term Plan Copyright@ SEKISUI CHEMICAL CO., LTD. 0 . . Commence new facility operations at the Group's Pharmaceuticals Iwate Factory • Promote progress at the Group's GMP- • compliant enzyme U.K. factory Accelerate gene testing development in the U.S. Blood coagulation testing equipment Reagents for rapid COVID-19 and influenza testing use • Transfer of XenoTech shares 12.5 FY2022 Results Results and Challenges Diagnostics (Japan) • • Results: Expanded sales of COVID-19 diagnostics kits Challenges: Delays in expanding new products; new blood coagulation testing equipment sales growth Diagnostics (Overseas) • Results: Steadily expanded in Europe, the U.S., and China; established a gene development system • Challenges: Strengthening U.S. FDA compliance; rebuild operations in Asia Pharmaceutical Sciences • • Results: Secured large new pharmaceutical orders; completed construction of a new facility at the Group's Iwate Factory; promoted structural reforms Challenges: Establish the Drug Development Solutions Business; CDMO Business expansion 39#41Drive 2.0 (FY2023-2025) Targets Medical Business SEKISUI ■ Accelerate growth centered on the Overseas Diagnostics Business through expansion in diagnostics fields and by increasing new product sales; continue to achieve record-high profit Create new businesses; strengthen R&D Net Sales (JPY billion) 72.6 89.7 Analysis of Operating Profit (JPY billion) +22.8 Consoli- dated- basis Change Diagno- Foreign stics Exchange (Japan) Diagno- Pharmaceutical stics Science and (overseas) Other Fixed Costs Total 112.5 Deference +0.1 0 +1.9 (+10.6) +1.5 -8.7 +5.5 18.0 +5.5 12.5 FY2022 FY2019 Results FY2022 Results FY2025 Medium-term Plan Results Copyright SEKISUI CHEMICAL CO., LTD. FY2025 Medium-term Plan 40#42. . Strategies by Business Diagnostics (Japan) Blood Coagulation: Introduce and expand sales of new blood coagulation testing equipment • Immunology: Enter high-sensitivity fields through external fusion • Diabetes: Expand alliances Net sales (JPY billion) Medical Business SEKISUI . . Diagnostics (overseas) Overseas testing system Europe and the Americas: Drive growth by entering the OTC market and expanding proprietary product (gene testing) launch areas China: Promote domestic production; strengthen alliances Asia: Bring new PCR products to the market; enter POC and coagulation markets Net sales (JPY billion) 28.5 30.9 31.6 33.6 FY19 FY22 FY23 Plan FY25 Medium-term Plan • . Pharmaceutical Sciences (Pharmaceutical and Fine Chemicals, Drug Development Solutions, Enzymes) Pharmaceutical and Fine Chemicals: Capture new large-scale projects by strengthening the marketing function Enzymes: Expand the CDMO Business through the start of full-fledged operations at a U.K. GMP- compliant facility Net sales (JPY billion) 59.9 41.2 46.5 30.3 FY19 FY22 FY23 Plan FY25 Medium-term Plan New Product Sales Aim to systematically launch new products by strengthening core technologies and acquiring new technologies Pharmaceutical science (CDMO) 24% Net sales 19% 13% Percentage of total Medical Business sales 24% 18% 12% (JPY billion) 19.9 17.6 16.9 13.6 26.6 21.6 16.8 13.8 9.2 10.4 FY19 FY22 FY23 Plan FY25 Medium-term Plan FY19 FY20 FY21 FY22 FY23 Plan FY25 Medium-term Plan Copyright SEKISUI CHEMICAL CO., LTD. 41#43Performance Trends and Medium-term Management Plan Targets Medical Business SEKISUI ■Drive growth in the Overseas Diagnostics Business; work toward full-fledged entry into. the CDMO Business in a bid to achieve the Group's Long-term Vision Performance Trends OP margin ROIC FY2014-2016 FY2017-2019 SHINKA!-Advance 2016 SHIFT 2019 -Fusion- FY2020-2022 Drive 2022 FY2023-2025 Drive 2.0 16.0% 13.4% 14.1% 13.6% 14.4% 14.7% 14.2% 12.6% 11.3% 12.4% 12.7% 12.7% 9.7% 6.4% 10.3% 10.0% 9.8% 10.2% 8.4% 112.5 95.0 88.5 89.7 85.0 (JPY billion) 70.7 72.6 72.3 63.5 64.7 66.9 56.7 Net sales Operating 11.2 12.5 profit 8.5 9.4 9.6 8.0 9.2 6.4 7.0 (Fiscal Year) 2014 2015 2016 2017 2018 2019 2020 2021 H 2022 2022 2023 Medium-tem Plan Plan 18.0 12.5 13.5 2025 Medium-tem Plan 2015 Main M&As and Strategic EIDIA (Japan) Investments Copyright SEKISUI CHEMICAL CO., LTD. 2017 Participated 2018 Veredus of PeptiStar Inc. in the establishment Laboratories (Asia) 2022 Transfer of XenoTech shares 03/2023 Pharmaceuticals : Start of new facility operations at Iwate Factory 03/2024 Start of operations at a GMP-compliant enzyme U.K. factory 42#44Strategic Area MAP Medical Business ■ Accelerated existing business growth →Toward strengthening new business. development and business growth through M&As Business fields Position [ Life Science Domain in 2030] Diagnostics Pharmaceutical Sciences ✓ Clinical chemistry/Immunology CRO ✓ Blood coagulation (area expansion) Diabetes ✓ Safety evaluation CDMO Small molecule API ✓ Medium molecule bio analysis ✓ Enzyme ✓ New modalities ✓ POC ✓ Blood collection tubes ✓ New fields such as genetics (U.S. base) Core SEKISUI Cell culture solutions (Cultivation materials and equipment) Digital health (programmed medical devices) Innovation areas <Molecular Diagnostics (MDx) Development Center> Work to enter the regenerative and genetic CDMO field with a focus on animal-free materials for medical use based on the Group's core PVB resin technology Regenerative medicine and Gene therapy Cultivation materials and equipment processes SEKISUI DIAGNOSTICS Regenerative (1)Chemosynthetic (2)Synthetic culture medicine Allogeneic transplantation transplantation scaffolding materials supplements Autologous Collection 6740 Conveyance (4) (4) Conveyance (3)Cell-culture Medium Gene therapy (1)(2)(3) SEKISUI DIAGNOSTICS, LLC, San Diego Extraction Culturing Gen introduction Copyright© SEKISUI CHEMICAL CO., LTD. SEKISUI (5)Gene (4) Cell-transport introduction containers 43#45SEKISUI This 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 a number of factors and uncertainties such as changes in the global economy and our business, competition in the market, and regulatory issues. Note: Figures denominated in units of 100 million JPY are rounded off to the nearest hundred million. Copyright SEKISUI CHEMICAL CO., LTD. 44#46Copyright SEKISUI CHEMICAL CO., LTD. SEKISUI