#SumitomoChemical

Sumitomo Chemical has signed a company split agreement on April 1, 2026 to transfer its domestic polyolefin business (PP, LLDPE) to Prime Polymer and acquire 20% of its shares. The transfer is scheduled to take effect on July 1, 2026.

Sumitomo Pharma, a subsidiary of Sumitomo Chemical, obtained manufacturing and marketing approval on March 6, 2026, for the world's first iPS cell-derived regenerative medicine "Amshepli®". Sales exceeding 100 billion yen are expected in the 2030s.

Sumitomo Pharma has completed registration for issuance of up to 60,000,000 shares with a maximum amount of 140 billion yen, planning to promote the growth strategy "Boost 2028" through fundraising.

For the third quarter of FY2026, revenue amounted to JPY 1,706.3 billion (down 10.4% YoY), net income attributable to owners of the parent was JPY 87.4 billion (up 254.2% YoY), the full-year earnings guidance has been revised upward, and the annual dividend forecast was increased to JPY 13.5 per share.

The full-year consolidated earnings guidance for the fiscal year ending March 2026 has been upwardly revised to revenue of 2.3 trillion yen (0.4% increase from previous forecast) and net income attributable to owners of parent of 55 billion yen (22.2% increase). The dividend forecast has also been raised to 13.5 yen per share for the full year.

In the third quarter of the fiscal year ending March 2026, an equity method investment loss of 15,873 million yen was recorded due to the poor performance of an equity-method affiliate.

In the individual financial statements for the third quarter of the fiscal year ending March 2026, an equity method investment loss of 13,361 million yen was recorded. There is no impact on consolidated earnings.

Sumitomo Chemical will allocate 0.87 shares for each share of Tanaka Chemical, and plans to execute the share exchange using approximately 14,028,356 shares of treasury stock.

Sumitomo Chemical has signed a business integration agreement to integrate its domestic polyolefin PP and LLDPE businesses into Prime Polymer Co., Ltd. through a simplified absorption-type company split and will acquire 20% equity in the company.