P.26 Medium-Term Management Plan 2026

26 01. Value Creation Stories for the Future

Medium-Term Management Plan 2026: ❷ Business portfolio transformation (measures to improve financial soundness)

Improve financial soundness over the 3-year period ending in FY2028

• Improve financial soundness to the level prior to the execution of major investments over the 3-year period ending in FY2028

Interest-bearing liabilities balance and net D/E ratio (images)

（Net D/E Ratio） 0.9 0.8 0.7 0.6 0.5 0.4 0.3 (Trillions of yen) 6.0 5.0 4.0 3.0 2.7 2.0 1.0 0.0

Measures to improve financial soundness (FY2026–2028)

Cash In

Further accelerate portfolio metabolism

• Cash in (FY2026 Forecast–2028 Image): Approx. ¥1.2 trillion; debt reduction effect from deconsolidation of subsidiaries: Approx. ¥0.5 trillion
• Specific asset replacement targets include low-growth/low-ROIC businesses (Invested capital: Approx. ¥1.0 trillion) and asset turnover businesses (Invested capital: Approx. ¥0.7 trillion)

Promote DAIS and other initiatives to drive improvements, particularly in growth areas

• Improve ROIC through SCSKʼs stand-alone growth, increase sales across the Sumitomo Corporation Group (application businesses, customersʼ business transformation and advancement, platform-based businesses, and digital infrastructure–related), reduce costs through greater efficiency (productivity improvement, advancing and optimizing corporate organization, and inventory reduction, etc.), and create a new source of earnings through collaboration between the two companies

Cash Out

Maintain current shareholder return policy of progressive dividends and a total payout ratio of 40% or higher

• Implemented 4-for-1 share split (July 2026)

Implement strategic investments with greater discipline with a focus on growth areas

• New investments (excluding acquisition of U.S.-based aircraft leasing company and full acquisition of SCSK): Approx. ¥400.0 billion–¥500.0 billion/year (in line with previous levels)