For Immediate Release

July 29, 2011

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2011
The Sumitomo Chemical Group’s consolidated financial results for the first quarter
ended June 30, 2011 were as follows. Sales rose by ¥10.7 billion year-on-year, to¥501.9 billion, with operating income of ¥34.8 billion and ordinary income of ¥38.9billion both higher compared with the same period of the previous fiscal year.
However, the Group posted a quarterly net loss of ¥9.8 billion, representing adeterioration in performance compared to the same period of the previous fiscal year,
because the Group posted an extraordinary loss of ¥29.0 billion from a one-time
amortization of goodwill related to its investment in an affiliate, the fair value of which
has significantly declined.
The Sumitomo Chemical Group’s financial results by business segment for the firstquarter ended June 30, 2011 were as follows.
Basic Chemicals
Sales of methyl methacrylate increased due to a rise in overseas market prices. While
market prices of raw materials for synthetic fibers rose, shipments contracted as aresult of the earthquake. Aluminum sales also declined because of the impact of theearthquake. In addition, the value of sales of overseas subsidiaries decreased in yen
terms because of the effects of a stronger yen. As a result, the segment’s sales
declined by ¥1.0 billion compared with the same period of the previous fiscal year, to¥75.3 billion, while operating income improved by ¥1.0 billion, to ¥7.0 billion, thanks
to higher market prices.
Petrochemicals & Plastics
While domestic shipments of some synthetic resins and petrochemical products
declined as a result of the impact of the earthquake, sales increased overall due tohigher market prices overseas and higher selling prices in Japan, with a sharp rise in
the prices of naphtha and other feedstocks. As a result, the segment’s sales rose by¥13.8 billion compared with the same period of the previous fiscal year, to ¥170.0
billion, and operating income improved by ¥2.2 billion, to ¥5.8 billion.
IT-related Chemicals
Shipments of polarizing film used in liquid crystal displays (LCDs) rose thanks tohigher demand, but shipments of color filters decreased. In addition to lower sales
prices of both polarizing film and color filters, the value of sales of overseas
subsidiaries decreased in yen terms because of the effects of a stronger yen. As aresult, the segment’s sales declined by ¥6.6 billion compared with the same period of
the previous fiscal year, to ¥71.4 billion, and operating income decreased by ¥3.9billion, to ¥4.1 billion.

Health & Crop Sciences
Sales of the feed additive methionine increased steadily. In the area of crop
protection chemicals, shipments of herbicides remained strong in overseas markets.
Despite the decrease in the value of sales of overseas subsidiaries in yen terms
because of the effects of a stronger yen, the segment’s sales rose by ¥8.8 billion
compared with the same period of the previous fiscal year, to ¥71.5 billion, andoperating income improved by ¥1.2 billion, to ¥8.1 billion.
Pharmaceuticals
The Sumitomo Chemical Group initiated US sales of Latuda® (atypical antipsychotic)
in February 2011. Sales of Avapro® (therapeutic agent for hypertension), Lonasen®
(atypical antipsychotic), and the new drugs Trerief® (therapeutic agent forParkinson’s disease) and Metgluco® (biguanide oral hypoglycemic) increased as aresult of continued sales promotion activities. Sales of Amlodin® (therapeutic agentfor hypertension and angina pectoris), however, declined because of competition
with generic drugs. In addition, the value of sales of overseas subsidiaries decreasedin yen terms because of the effects of a stronger yen. As a result, the segment’s sales
declined by ¥7.4 billion compared with the same period of the previous fiscal year, to¥102.5 billion, and operating income decreased by ¥1.5 billion, to ¥13.5 billion.
OthersIn addition to the above five segments, the Sumitomo Chemical Group engages insupplying electrical power and steam, providing services for the design, engineering,and construction management of chemical plants, providing transport andwarehousing, and conducting materials and environmental analysis. The segment’ssales rose by ¥3.0 billion compared with the same period of the previous fiscal year,to ¥11.2 billion, and operating income improved by ¥1.8 billion, to a profit of ¥1.2billion.
(Note) Changes in Reported Segments Classification Methods
As of April 1, 2011, the Fine Chemicals Segment was eliminated, and functional materials,additives, and dyes that had been included in this segment were transferred to the Basic
Chemicals Segment. In addition, pharmaceutical chemicals, which had also been included in thissegment, were transferred to the Agricultural Chemicals Segment. Following this change, theAgricultural Chemicals Segment changed its name to the Health & Crop Sciences Segment. The
businesses of consolidated subsidiaries in the Pharmaceuticals Segment that had been includedin the Others segment were transferred to the Pharmaceuticals Segment.

The Company has revised its consolidated financial forecast of fiscal 2011
announced on May 11, 2011. It now projects its consolidated financial forecast tosales of ¥1,000.0 billion, operating income of ¥50.0 billion, ordinary income of ¥51.0
billion and net income of nil for the half-year ending September 30, 2011, and to net
income of ¥21.0 billion for the full-year ending March 31, 2012.
For further details, please refer to today's release titled "Sumitomo ChemicalAnnounces Revisions to its Consolidated Financial Forecast."Summary of Consolidated Results(1) Results of Operation:

Net sales
Operating income
Ordinary income
Income before income taxes
and minority interests
Net (loss) income（\3 Months ended
June 30，2011*1\ Million ）（ US$ 1,000 ）$501,902
6,217,044
34,756
430,52138,911
481,989
9,295(9,752)3 Months ended
June 30，2010（ \ Million ）\491,243
34,04236,004

115,137(120,798)

35,676
17,971）*1（\Yen）
10,885*1（\\ Million ）22,742

Net income per 1,000 shares（\Yen）(5,966)（$Comprehensive income（\\ Million ）11,052（$（\As of June 30, 2011
*1\ Million ）（ US$ 1,000 ）$ 29,763,037
2,402,770
757,8039,386,882

As of March 31, 2011
（ \ Million ）\2,367,314
758,886

3 Months ended
June 30，2011*1\ Million ）（ US$ 1,000 ）$23,950
296,668(23,372)(289,508)
4,269
52,880157,809
1,954,775

3 Months ended
June 30，2010（ \ Million ）\28,137(70,379)
55,387
134,399

3 Months ended
June 30，2011*1\ Million ）（ US$ 1,000 ）3 Months ended
June 30，2010（ \ Million ）*2(2) Financial Position:
Total assets
Total net asset(3) Cash Flows:

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at the end of the period（\(4) Results of Operation by
Business Segments:（Net sales
Basic Chemicals
Petrochemicals & Plastics
IT-related Chemicals
Health & Crop Sciences
Pharmaceuticals
Others\\Operating (loss) income
Basic Chemicals
Petrochemicals & Plastics
IT-related Chemicals
Health & Crop Sciences
PharmaceuticalsOthers
Adjustments\\75,328
169,959
71,446
71,503
102,470
11,196501,902
6,987
5,805
4,059
8,076
13,464
1,229(4,864)
34,756$$

US$(74)

US$ 1,000 ）
136,901

933,086
2,105,277
884,999885,705
1,269,293
138,685
6,217,044\

86,54871,90650,279100,037
166,778
15,224(60,250)
430,521\$$(Note)*1:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥80.73= $1 prevailing on June 30, 2011.
*2:New business segmentation is applied to consolidated results of previous year.

\\

76,304
156,153
78,06562,667
109,866
8,188
491,243
5,993
3,601
8,003
6,879
14,968(526)(4,876)
34,042