P.73 Chemical Solutions Group

73 03. Performance & Data

Chemical Solutions Group

We will contribute to enriching peopleʼs lives and realizing sustainable societies by building new value chains, including those based on circular economies, that address material social issues such as global food security and climate change.

Main relevant material issues

▍Quantitative information

• 800　600　400　200　0
• 15　10　5　0

FY2025 Investment｜Approx. ¥22.0 billion

Main investment areas

• Biological crop protection business (Chile, U.S.)
• Retail business for agricultural inputs (Vietnam)
• Organic chemical distribution business (U.S.)

Major asset replacement

• Details not disclosed

▍External Environment: Business Environment

Opportunities

• Changes in the supply–demand balance, industry structure, and trade flows in the chemicals sector
• Supply chain diversification and restructuring driven by economic security considerations
• Expanding electronics applications driven by advances in digital and AI,

electrification, and IoT, etc.

• Growing demand for agricultural inputs and sustainable agriculture solutions driven by rising food demand

Risks

• Changing market conditions due to growth of companies in emerging economies
• Declining plant profitability due to exchange rate fluctuations, rising labor costs, and higher logistics costs
• Changing business conditions driven by economic blocs and geopolitical risks
• Impacts of climate change on agricultural production, greater price volatility for grains and agricultural inputs (particularly fertilizers), and tightening regulations on chemical pesticides

▍Internal Environment: Key Strengths

• Product and service development capabilities backed by a global sales network for agricultural inputs, strong information- gathering and procurement capabilities, and close customer relationships
• Supply–demand balancing and logistics capabilities in basic chemicals trading
• Strong trading platform for semiconductor materials and manufacturing capabilities in the EMS business
• Procurement and sales networks for pharmaceutical raw materials and cosmetic materials; product development and sales capabilities in the animal health sector
• Trading platforms in chemicals and electronics sectors that align with sustainable materials business development

▍Business Strategy

• Strengthen resilience to downside risks arising from changes in the external environment through business portfolio optimization
• Enhance the trading function and develop related businesses to provide added value
• Improve the profitability of the agricultural input sales business by strengthening sales of high-value-added products, such as bio products
• Strengthen the earnings base in the pharmaceuticals, cosmetics, and animal health sectors
• Pursue new business models that address needs related to green transformation and economic security

▍Business Portfolio Overview

• Basic Chemicals ● Life Science ● Electronics ● Agri Business Sumi Agro Europe Group (11 countries)

+ Sipcam capital alliance (8 countries in Southern and Western Europe) Sumitomo Shoji Chemicals (Japan) Summit Pharmaceuticals International (Japan) Hartz (U.S.) Sumitronics Taiwan (Taiwan)* * Image courtesy of SUMCO Corporation Interacid Group (U.S., Chile, Switzerland, Thailand) Summit Agro South America Group (7 countries) Sumitronics Group (10 countries, including Japan, ASEAN, China, and the Americas) Summit Cosmetics Latam (Brazil) Agro Amazonia Produtos Agropecuarios (Brazil)

▍Medium-Term Management Plan 2026

Initiatives in final year of medium-term management plan

• Strengthen the earnings base of the basic chemicals and electronics businesses in response to changing external conditions
• Sustain growth in existing life science businesses while building a green chemicals business leveraging biochemical trading
• Rebuild the foundation of agribusiness to improve its earning power and achieve sustainable growth Initiatives in next medium-term management plan
• Build a business model adapted to petrochemical industry restructuring, strengthen the sulfuric acid business in North America and Asia, and enhance competitiveness in semiconductor materials and EMS
• Reinforce growth in the pharmaceutical and pet care businesses while building new supply chains for specialty inorganic materials and green chemicals
• Expand capabilities of agricultural inputs distribution business and complete its turnaround while diversifying the business portfolio through investments in biopesticides and other areas

▍Key Market Trends

By ensuring a steady supply of agricultural inputs and offering environmentally conscious products, such as bio products, we support stable food supplies.

Global food consumption outlook (Thousand tons) (Billions of people)

• Population
• Meat
• Rice
• Wheat
• Soybeans
• Corn

• 5,000　4,000　3,000　2,000　1,000　0
• 10　8　6　4　2　0

Source: Prepared by Sumitomo Corporation based on Outlook for Global Food Supply and Demand in 2035 Based on the Global Food Supply and Demand Model (March 2026), Policy Research Institute, Ministry of Agriculture, Forestry and Fisheries.

• ※Takanori Kagohashi Group CEO, Chemical Solutions Group

［図の構造］Business Portfolio Overview (Chemical Solutions Group)

Legend: Basic Chemicals | Life Science | Electronics | Agri Business

Base / company → Field:

Sumi Agro Europe Group (11 countries) + Sipcam capital alliance (8 countries in Southern and Western Europe) → Agri Business

Sumitomo Shoji Chemicals (Japan) → Basic Chemicals

Summit Pharmaceuticals International (Japan) → Life Science

Hartz (U.S.) → Life Science

Summit Cosmetics Latam (Brazil) → Life Science

Interacid Group (U.S., Chile, Switzerland, Thailand) → Basic Chemicals

Sumitronics Taiwan (Taiwan) → Electronics

Sumitronics Group (10 countries, including Japan, ASEAN, China, and the Americas) → Electronics

Summit Agro South America Group (7 countries) → Agri Business

Agro Amazonia Produtos Agropecuarios (Brazil) → Agri Business

Brazil → Summit Cosmetics Latam (Life Science) | Agro Amazonia Produtos Agropecuarios (Agri Business) — Chemical Solutions Group

China → Sumitronics Group (Electronics) — Chemical Solutions Group