SANYO CHEMICAL INDUSTRIES,LTD.

This report provides a comprehensive disclosure of the business activities and financial position of the Group, whose core businesses are chemicals and performance chemicals. The Group operates primarily through five reporting segments: Life and Health, Petroleum and Transportation Equipment, Plastics and Textiles, Information and Electrical and Electronic, and Environment and Housing Equipment. Through the formulation of its Medium-Term Management Plan 2030, the Group has set out a policy of focusing on expanding products that contribute to the environment, promoting the use of digital technologies, and developing high-value-added products, while reorganizing its reporting segments into Core Materials, Wellness, and ICT. The Group targets consolidated operating income of ¥20 billion and ROE of at least 8% for fiscal 2030, and aims for consolidated operating income of ¥14 billion and ROE of at least 6.5% for fiscal 2028. As part of its capital strategy, the Group expects to make strategic investments totaling approximately ¥150 billion over five years, has adopted a shareholder returns policy targeting a consolidated total payout ratio of at least 40%, and has set out a policy of conducting flexible share repurchases.