Sumitomo Bakelite (4203) Investor presentation summary

Vision and strategy for 2030

• Targets business profit of ¥55 billion, 13% margin, and 10% ROE by 2030, focusing on strategic areas like semiconductors, healthcare, ICT, mobility, and life innovation.

• Medium-term strategy emphasizes strengthening existing business profitability, creating new products, maximizing autonomy, expanding smart factories, and accelerating external collaboration.

• Business portfolio transformation includes identifying areas for investment, improvement, or withdrawal, optimizing capital allocation, and monitoring implementation.

• Aims to create a virtuous cycle of value by developing innovative products, investing in employees, and earning stakeholder trust.

• Communication with stakeholders is prioritized to maximize corporate value internally and externally.

Semiconductor materials

• FY2025 forecast: business profit ¥19 billion, 20.4% margin on ¥93 billion revenue.

• Growth driven by Chinese market expansion, new plant in Suzhou, and increased demand in NEV, smartphones, and robotics.

• Focus on AI, power, and mobility applications, with new power organization established to consolidate R&D and sales.

• Open laboratories and global collaborations support customer innovation and advanced technology proposals.

High-performance plastics

• FY2025 forecast: business profit ¥6.5 billion, 6.1% margin on ¥107 billion revenue.

• Profitability improved through structural reforms, cost reduction, and focus on high-value products for EVs, semiconductors, and aircraft.

• Expansion of environmentally friendly materials and advanced solutions for electric vehicles and power modules.

• COPLUS® and ultra-low monomer phenolic resin drive new applications in semiconductors and eco-friendly products.