Sumitomo Chemical Launches New Business Plan for Fiscal Years 2022-2024, Realizing Green Transformation-led Growth, Investing 1.3 Trillion Yen Over Three Years


Sumitomo Chemical launches new business plan for fiscal years 2022 to 2024
Achieve green transformation-led growth, invest 1.3 trillion yen over three years

March 3, 2022

Sumitomo Chemical today announced its new business plan for the period from fiscal year 2022 to fiscal year 2024, expressing its commitment to advancing a broader green transformation (GX) and helping solve problems major social issues such as carbon neutrality and ecosystem conservation through its activities in order to achieve a sustainable society.

Under the new Business Plan, which carries the slogan “Change and innovation with the power of chemistry”, the Company will work on seven key management priorities, including improving its business portfolio (by strengthening and by transforming its business), improving its financial position, strengthening, accelerating the development of next-generation businesses, fulfilling obligations and making contributions to achieving carbon neutrality, which it has set out in its based.

The vision represented by the slogan “Change and innovation with the power of chemistry”

1. Basic Policy

(1) Continue to improve the Company’s business portfolio (by strengthening and transforming its businesses)

Sumitomo Chemical will enhance the earning power of its technology-driven businesses while accelerating its metabolism by transforming its portfolio to advance a broad GX. To this end, the Company will direct management resources to areas of business that need to be strengthened and transformed, with particular emphasis on reducing environmental impact in essential chemicals and plastics – the sector created by the redefining the Company’s petrochemical businesses – and semiconductors and batteries. materials-related activities in the field of high-performance materials, as well as biotechnology and genomics in the life sciences.

(2) Improve the financial strength of the Company

Sumitomo Chemical aims to achieve a D/E ratio of approximately 0.7 times by the end of fiscal 2024, reducing interest-bearing debt that has increased due to substantial investments in life sciences during of the previous corporate plan period by vigorously implementing return on investment management and improving cash generation capabilities. In addition, the company will conduct additional asset disposals of 50 billion yen and will also reduce working capital by 50 billion yen by shortening the cash conversion cycle.

(3) Accelerate the development of next-generation enterprises

Sumitomo Chemical will continue to focus on the four key areas of environment, food, health and ICT, and accelerate the development of next-generation companies in these areas by leveraging its ecosystem of innovation, which includes collaborations with startups and universities, while advancing the reorganization and improvement of its research functions in Japan.

(4) Fulfill obligations and provide contributions to achieve carbon neutrality

Based on Sumitomo Chemical Group’s grand design to achieve carbon neutrality, announced in December 2021, from the perspective of its obligationsthe Company will advance initiatives to reduce its greenhouse gas (GHG) emissions by 50% by 2030. At the same time, with a view to contributions, Sumitomo Chemical will work on the development of products and technologies that contribute to reducing GHG emissions and their implementation in society, as well as the licensing of technologies to promote their global deployment. As part of his contributions, the company has set a new goal of achieving revenue of 1.2 trillion yen by fiscal 2030 from the sale of products designated as Sumika Sustainable Solutions*, more than double the amount achieved in in fiscal 2021, and aims to achieve sales of 700 billion yen for these products by fiscal 2024, the final year of the new Business Plan. The company also plans to invest around 65 billion yen in R&D and other efforts towards carbon neutrality during the plan period.

(5) Improve productivity and strengthen our businesses through digital innovation

Sumitomo Chemical will seriously advance its DX 2.0 strategy, digital transformation initiatives aimed at improving business competitiveness, such as strengthening customer relationships and improving customer satisfaction levels. At the same time, the company will continue and redouble its DX Strategy 1.0 efforts to improve productivity in R&D, manufacturing and other areas, while also launching DX Strategy 3.0 initiatives to develop new business models by leveraging digital technology. In addition, the company will increase DX personnel in its research and development and manufacturing functions to 330 people, and assign an additional 250 DX personnel to its business units and corporate functions to improve processing knowledge. digital in all departments and at all levels. About 70 billion yen will be invested in DX during the plan period.

In addition to these five elements, Sumitomo Chemical will also work on (6) Employing, developing and leveraging human resources to achieve sustainable growth and (7) Ensure full and strict compliance and maintain safe and stable operations.

2. Financial performance objectives

Sumitomo Chemical has set consolidated financial performance targets under the new business plan as follows:

(Billions of yen)

FY2024 Lenses

Forecast FY2021




Core operating profit



Operating profit (IFRS)



Attributable net income

to the owners of the parent



* Assumptions for FY2024: naphtha price: ¥50,000/kl
Exchange rate: ¥110/USD

In the medium and long term, the Company aims to achieve the following objectives for its financial indicators in a stable manner:

Medium and long term objectives

FY2024 Lenses

Forecast FY2021


10% or more




7% or more



Report of

about. 0.7 times

0.7 times

0.8 times

The payout ratio

about. 30%

about. 30%


* Sumika Sustainable Solutions: Initiative launched in 2016 in which Sumitomo Chemical, on the basis of evaluations by external experts, designates the Group’s products and technologies which contribute, throughout their life cycle, to responding to global warming or to reduce the environmental impact, in order to promote their development and dissemination. As of March 2022, 57 products and technologies have been designated as Sumika Sustainable Solutions.


Statements made herein regarding Sumitomo Chemical’s current plans, estimates, strategies and beliefs that are not historical facts are forward-looking statements regarding Sumitomo Chemical’s future performance. These statements are based on management’s assumptions and beliefs in light of information currently available to it, and involve risks and uncertainties. Important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, general economic conditions in Sumitomo Chemical’s markets; demand and competitive price pressure for Sumitomo Chemical’s products in the marketplace; Sumitomo Chemical’s ability to continue to gain acceptance of its products in these highly competitive markets; and exchange rate movements.


Sumitomo Chemical Co., Ltd.
Corporate Communication Department


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