Beginning the First Year of the Mid-term Management Plan “Make Innovations Stage-II” President and Representative Director Masato Kashiwabara Beginning the First Year of the Mid-term Management Plan “Make Innovations Stage-II” President and Representative Director Masato Kashiwabara

During the first half of the current fiscal year, the operating environment for the foamed plastic industry remained difficult as a result of factors such as oil price trends and increases in logistics costs. There have also been concerns about the impact of successive natural disasters, such as large typhoons, and the effect of the consumption tax hike on consumer sentiment.

In such an operating environment, the Sekisui Kasei Group established the new mid-term management plan “Make Innovations Stage-II” (FY2019 to FY2021), in order to further strengthen the transformation that began in the previous mid-term management plan. We are steadily implementing measures to evolve our “Business Portfolio Transformation” and “Implementing Strategies to Strengthen Profitability”, and at the same time, to solidify our position as a leading environmental company. Also, the first half of the current fiscal year includes results for the six-month period from January 1, 2019 to June 30, 2019 for the Proseat Group, which we acquired in the previous fiscal year.

As a result, consolidated net sales were 69.956 billion JPY, operating income came to 2.057 billion JPY, ordinary income was 1.78 billion JPY, and net income attributable to owners of the parent was 1.187 billion JPY.

The interim dividend for FY2019 is to be 13 JPY per share, which will be paid from December 4, 2019. The year-end dividend is expected to be 17 JPY per share.

With regard to the outlook for the full fiscal year, we forecast consolidated net sales of 145 billion JPY, operating income of 4.9 billion JPY, ordinary income of 4.8 billion JPY and net income attributable to owners of the parent of 3.2 billion JPY.

I humbly request the continued warm support and encouragement of shareholders going forward.