Notice Regarding Registration of Issuance Concerning New Share Issuance

Overview of Capital Policy

At the board meeting held on March 2, 2026, Sumitomo Pharma Co., Ltd. resolved to register the issuance of new shares and submitted the registration documents to the Kanto Local Finance Bureau. The number of shares to be issued is up to 60,000,000 shares, with an upper limit of 140 billion yen in the amount to be raised. The issuance period is scheduled from March 10, 2026, to March 9, 2027. The procured funds are planned to be allocated to research and development expenses, capital investment expenses, investment and loan expenses, working capital, and repayment of interest-bearing debt.

Impact on Shareholders and Future Outlook

Although this public offering is expected to dilute Sumitomo Chemical's voting rights ratio, the company will remain a consolidated subsidiary of Sumitomo Chemical. In addition, in conjunction with refinancing borrowings, the company aims to refinance loans without Sumitomo Chemical’s debt guarantees. Furthermore, as this capital increase will strengthen capital exceeding the capital-equivalent amount of hybrid bonds, no issuance of refinancing securities other than these shares will be undertaken, and early redemption is planned on the first optional redemption date. Through these measures, the company aims to enhance corporate value in the medium to long term and promote the growth strategy 'Boost 2028.'