Mid-term Business Plan 2027 Financial Goals This information is based on the "Mid-term Business Plan 2027" announced in April 2023. This information is based on the "Mid-term Business Plan 2027" announced in April 2023.

Policy

Establish a mid-term revenue base with the three key products and aim for renewed growth with new products (primarily existing Sumitomo Pharma owned assets)

Financial Goals and
Dividend Policy

• 		MTBP 2022	MTBP 2027
  		5-year total	FY2023	FY2024-FY2027
  PL / CF	Revenue	CAGR 3.5％	¥362 billion	CAGR 12％ or higher（Base year: FY2023）
  	Core operating profit	¥293.7 billion	¥(62) billion	¥192 billion or higher（For four-year total）
  	Operating cash flow	¥273.6 billion	¥(130) billion	¥270 billion or higher（For four-year total）
  	ROIC	2.5％	(8.5)％	6.5％ or higher（For four-year total）
  	ROE	4.8％	(21.9)％	8％ or higher（For four-year total）
  FX rates	USD (5-year average)	¥115	¥130
  	RMB(5-year average)	¥17.0	¥19.5

  • *All financial goals above are after adjusting for the probability of success
    CAGR: Compound Annual Growth Rate
    ROIC: (Core operating profit – Income taxes) / (Equity + Interest-bearing liabilities)

• Long-term ROE goals

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  Aim for ROE of 10% duringthe next MTBP starting in FY2028

• 		At the end of FY2022	At the end of FY2027
  BS	Net D/E ratio	0.60	0.5 or lower
  	Interest-bearing liabilities	¥334.7 billion	¥200 billion or lower
  	Ratio of equity attributable to owners of the parent to total assets	35.8%	40% or higher

  • *All financial goals above are after adjusting for the probability of success

• Dividend policy

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  In FY2023, the policy is to not pay the dividend as core operating profit is expected to be in the red. In FY2024, as core operating profit returns to the black, we will resume the dividend, after which we will aim for a consistent dividend payout

  * The "Sumitomo Pharma Announces Its Financial Forecasts Revision for FY2023, Financial and Dividend Forecasts for FY2024" announced on April 30, 2024.

• Investment policy

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  R&D investments in own assets will be prioritized. Resources will be allocated to M&As and in-licensing as well, so long as they do not significantly effect achievement of financial goals

Renewed Growth Imagined

• 

  Expanding

  The medium- to long-term revenue image (graph) is created based on the forecast before adjusting the probability of success

Invested Capital and Return on Capital

For the four-year period from FY2024, we will seek to secure a level of profit reasonably expected from invested capital and then aim to post a higher profit level during the next Mid-term Business Plan starting from FY2028.

• 

  Expanding

  • *The profit line reasonably required from invested capital (capital + interest-bearing liabilities) is set to be “invested capital x 6.5%” (weighted average cost of capital)