Sumitomo Osaka Cement (5232) Investor presentation summary

Medium-term management plan and growth strategy

• Accelerating ongoing initiatives and launching new businesses to achieve long-term vision and strengthen growth foundation.

• Introducing business-specific ROIC targets, aiming for profitability above hurdle rates for each segment.

• Setting FY2028 targets: sales of ¥255.5B, operating income of ¥27B, ROE of 9%+, and ROIC of 6%+.

• Business portfolio transformation to achieve a 50:50 split between cement and non-cement businesses by 2035.

• Investment focus on carbon neutrality, growth in high-performance products, and overseas expansion.

Financial and capital allocation policies

• Maintaining a total payout ratio of 50%+ (three-year average) and introducing a minimum dividend of ¥120/share.

• Capital allocation prioritizes growth investment, shareholder returns, and reduction of cross-shareholdings to below 10% of net assets by FY2028.

• Financial strategy targets a D/E ratio of 0.5–0.7 and streamlining total assets, including inventory reduction.

• Capital investment plan of ¥100–110B for FY2026–28, with 55% for maintenance/renewal and 12% for carbon neutrality.

Business segment strategies and roadmaps

• Cement: Focus on stable cash flow, price optimization, recycling, and carbon neutrality; strengthen domestic and overseas operations.

• Mineral resources: Secure and expand limestone supply, develop new mining areas, and strengthen alliances.

• Cement-related products: Expand applications, develop low-carbon technologies, and address labor shortages.

• High-performance products: Grow electrostatic chuck sales, launch next-gen LN modulators, and expand nanomaterials business.