Sumitomo Seika Chemicals (4008) Investor presentation summary

Financial targets and capital allocation

• FY2030 targets: net sales ¥200.0bn, operating profit ¥17.5bn, net income attributable to owners ¥12.4bn, EBITDA ¥31.0bn, ROIC 8.5% and ROE 10%, versus FY2025 results of ¥148.4bn, ¥14.5bn, ¥7.7bn, ¥20.0bn, 8.1% and 7.8%, respectively.

• Operating profit growth bridge: ¥2.8bn from sales expansion and streamlining, offset by ¥1.8bn from higher raw material, fuel and fixed costs and ¥2.0bn from exchange-rate changes.

• FY2026–FY2030 cash allocation includes ¥88bn from operating cash flow, ¥75bn for organic growth, ¥12bn for inorganic investment, ¥9bn for R&D and ¥25bn for shareholder returns.

• Capital discipline targets DOE of at least 4.5% and an equity ratio of 50%–60%; dividends are guided by a payout ratio of at least 30%, with a plan-period average of 50%–60%.

Super absorbent polymers

• Global SAP demand was ~3.2m metric tons in 2025, with annual growth of 3%–4%; demand trends vary by region, with South Asia forecast to grow 8%–10% and Middle East and Africa 2%–5%.

• FY2030 segment targets: net sales ¥162.0bn and operating profit ¥13.0bn, versus FY2025 results of ¥116.1bn and ¥11.5bn; global SAP sales volume rises from 459kt to 590kt.

• Planned 70kt/year capacity expansion is scheduled to start in FY2029, bringing total capacity to 590kt/year; location selection is targeted by end-FY2027, with planned investment of US$160m.

• New-product sales target ¥24.0bn, or 15% of segment sales, in FY2030 versus ¥9.3bn, or 8%, in FY2025; products address absorbency, deodorizing, thinness and fast absorption needs.

• Sales priorities include South Asia, with forecast CAGR of 19%, and Middle East and Africa, with 10%; mature markets will be served through new grades and stronger technical services.

Functional materials

• FY2030 targets: net sales ¥38.0bn and operating profit ¥4.5bn; growth products and new launches aim to raise QOL-, semiconductor- and battery-related products to at least 50% of segment sales.

• Growth-product plans include adding ¥1.5bn in QOL product sales and ¥4.0bn in semiconductor- and battery-related product sales; new-product sales target ¥4.0bn, or 11% of segment sales.

• Planned investments include ¥7.0bn for electronics gases and sulfolane capacity, ¥1.5bn for AQUPEC-MG quality, packaging and branding, and ~¥0.3bn to enhance PEO production.

• Powdered resin business withdrawal is planned by end-FY2026; some gas businesses will be reviewed for potential withdrawal after assessing price-revision progress.