Key Figures of Consolidated Financial Results for 1st Quarter FY2023

August 2nd, 2023
Sumitomo Chemical Co., Ltd.

1. Financial Summary (IFRS)(Billions of yen)
FY2023
1st Quarter

FY2022
1st Quarter

Variance

FY2022

Sales revenue

563.1

774.1

(211.0)2,895.3

Core operating income (loss)(53.6)

64.1(117.7)

92.8

Operating income (loss)(71.7)

66.3(138.0)(31.0)Net income (loss) attributable toowners of the parent(33.2)

70.0(103.1)

7.0¥ (20.27)¥ 42.81¥ (63.08)¥ 4.27Return on equity(2.8)%

5.5%(8.2)%

0.6%

Overseas sales revenue

65.8%

71.3%

(5.5)%

67.9%

Exchange rate (yen/$)137.49129.73－135.50Naphtha price (yen/kl)

67,50086,100－76,600

Basic earnings per share*Core operating income is a gain and loss concept, reflecting recurring earning capacity, and deducts gains andlosses incurred by non-recurring factors from operating income. It includes the share of profit from investments
accounted for using the equity method.

2. Sales Revenue / Core Operating Income by Business Segment (IFRS)FY2023
1st Quarter

FY2022
1st Quarter(Billions of yen)

Variance

FY2022Essential
Chemicals &Plastics

Sales revenue

192.4

238.6

(46.2)

852.9

Core operating
income(21.0)

10.0(31.0)(34.2)

Energy &Functional
Materials

Sales revenue

73.4

86.4

(13.0)

342.5

Core operating
income

3.0

6.6

(3.6)

15.2

Sales revenue

94.5

114.7

(20.2)

431.2

Core operating
income

6.7

15.8

(9.1)

47.6

Sales revenue

102.7

152.6

(49.8)

598.4

Core operating
income

(7.0)

21.9

(29.0)

57.3

Sales revenue

83.0

167.7

(84.7)

584.9

Core operating
income(33.3)

14.1(47.3)

16.2

Sales revenue

17.3

14.2

3.1

85.4

Core operating
income

2.4

3.3

(0.8)

10.4

Sales revenue

－

－

－

－

Core operating
income

(4.4)

(7.5)

3.2

(19.7)

Sales revenue

563.1

774.1

(211.0)2,895.3

Core operating
income(53.6)

64.1(117.7)92.8

IT-related
Chemicals
Health & Crop
Sciences

Pharmaceuticals

OthersAdjustments

Total

3. Summary of Consolidated Statement of Income (IFRS)(Billions of yen)

FY2023
1st Quarter

FY2022
1st Quarter

Variance

Sales revenue

563.1

774.1

(211.0)Core operating income (loss)(53.6)

64.1(117.7)

Of which equity in earnings(12.0)

12.7(24.7)

Restructuring costs(19.3)(2.1)(17.2)

1.1

4.3

(3.2)

Total non-recurring items(18.1)

2.2(20.3)

Operating income (loss)(71.7)

66.3(138.0)Gain/loss on foreign currency transactions

23.8

49.8

(26.1)

Other finance income/expenses

(1.9)

(2.5)

0.6

Income (loss) before taxes(49.9)

113.7(163.5)

Income tax expenses(1.3)(28.5)

27.2

Net income (loss)(51.2)

85.1(136.3)18.0(15.1)

33.1(33.2)

70.0(103.1)OthersNet (income) loss attributable tonon-controlling interests
Net income (loss) attributable toowners of the parent

4. Summary of Consolidated Statement of Financial Position (IFRS)(Billions of yen)
June 30, 2023

March 31, 2023

Variance

June 30, 2023

AssetsMarch 31, 2023

Variance

Liabilities

1,851.9

1,762.9

89.0

Trade and other payables

530.1

515.9

14.2

Cash and cash equivalents

323.1

305.8

17.3

Interest-bearing liabilities

1,632.6

1,461.4

171.2

Trade and other receivables

588.5

603.2

(14.6)

Others

661.2

699.1

(37.8)

Inventories

814.4

744.5

69.9

Total liabilities

2,823.9

2,676.3

147.5

Others

125.9

109.4

16.5

Current assets

Equity2,521.9

2,402.6

119.3

Shareholders' equity

935.8

973.0

(37.3)

Property, plant and equipment

859.2

829.4

29.9

Other components of equity

289.0

198.2

90.9

Goodwill and intangible
assets

720.1

670.9

49.2

Non-controlling interests

325.1

318.0

7.1

Others

942.6

902.4

40.2

Total equity

1,549.9

1,489.2

60.8

Total assets

4,373.8

4,165.5

208.3

Total liabilities and equity

4,373.8

4,165.5

208.3

28.0%

28.1%

(0.1)%

1.1

1.0

0.1

Non-current assets

Ratio of equity attributableto owners of the parent tototal assets
D/E ratio (times)

5. Summary of Consolidated Statement of Cash Flows (IFRS)(Billions of yen)
FY2023
1st Quarter

FY2022
1st Quarter

Variance

FY2022

Cash flows from operating activities(131.9)42.6(174.5)

111.6

Cash flows from investing activities(13.4)

46.0(59.5)(19.4)

Free cash flows(145.4)88.7(234.0)92.2

Cash flows from financing activities

142.0

11.5

130.5

(178.5)

Others19.5

33.0(13.5)

27.8

Increase (decrease) in cash and cash equivalents

16.2

133.2

(117.0)(58.5)

August 2, 2023

Summary of Consolidated Financial Resultsfor First Quarter Fiscal Year 2023
(Under IFRS)
Company name:
Sumitomo Chemical Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4005
URL:
https://www.sumitomo-chem.co.jp/english/
Representative:
Keiichi Iwata, President
Inquiries:
Shunji Kobayashi, General Manager, Corporate Communications Dept.
Telephone:+81-3-5201-0200
Scheduled date to commence dividend payments:－
Scheduled date to file quarterly securities report:
August 8, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(All amounts are rounded to the nearest million yen.)

1. Consolidated Financial Results for First Quarter Fiscal Year 2023
(April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results
Sales revenue

Core operating
incomeOperatingincomeNet income
attributable toowners of theparent

Net income

Total
comprehensive
income%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%563,143 (27.3)(53,598)－(71,747)－(51,182)－(33,153)－

74,497(61.3)

64,111

4.0

66,282

13.6

85,108118.9

69,992

96.3

192,386

390.4

Millionsof yenThree Months ended(Percentages indicate year-on-year changes.)

June 30, 2023
Three Months ended

774,134

21.2

June 30, 2022
Basic earnings Diluted earnings
per shareper share
Three Months ended

June 30, 2023
Three Months ended

June 30, 2022

Yen

Yen

(20.27)

－

42.81

－

Reference: Share of profit (loss) of investments accounted for using the equity method
For Three Months ended June 30, 2023:¥ (12,042) million
For Three Months ended June 30, 2022:¥ 12,671 million
Income before taxes
For Three Months ended June 30, 2023:¥0(49,862) million
For Three Months ended June 30, 2022:¥ 113,656 million*Core operating income is a gain and loss concept, reflecting recurring earning capacity, and deducts gains and losses
incurred by non-recurring factors from operating income. It includes the share of profit from investments accounted forusing the equity method.
*For diluted earnings per share, although there are potential shares, they are not listed because they have an anti-dilutive
effect.

(2) Consolidated Financial Position
Total assets
As ofTotal equity

Equity attributable toowners of the parent

Ratio of equity
attributable to owners of
the parent to total assets

Millions of yen

Millions of yen

Millions of yen%

June 30, 2023

4,373,798

1,549,939

1,224,801

28.0

March 31, 2023

4,165,503

1,489,189

1,171,192

28.1

2. Dividends
Dividends per share
1st quarter
end
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

2nd quarterend

3rd quarter
end

Yearend

Yen

Yen

Yen

Yen

Yen

－

12.00

－

6.00

18.00

6.00

12.00

－

Fiscal year ending
March 31, 2024
6.00－
(Forecast)
Note: Revision of dividend forecasts from the latest announcement: None

3.

AnnualConsolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)
Net income
Basic earnings
attributable toper shareowners of the parent
Millions of
%
yen
%
Yen

Sales revenue

Core operating
incomeOperating income

Millions ofyenMillions ofyenMillions of
yen

%

%

Half-year ending
1,370,000 (10.4)(30,000)(45,000)－
September 30, 2023
Year ending
2,900,000
0.2
40,000 (56.9)
20,000March 31, 2024
Note: Revision of financial forecasts from the latest announcement: None－

(30,000)－(18.35)－

10,00043.1

6.12

Notes:(1) Changes in significant subsidiaries during the period: Yes
Newly consolidated:－
Excluded:
1 company (Myovant Sciences Ltd.)(2) Changes in accounting policies and changes in accounting estimates
Changes in accounting policies required by IFRS: None(i)(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None
(3) Number of shares issued (common shares)
(i)

(ii)

(iii)

Total number of shares issued at the end of the period (including treasury stock)
As of June 30, 2023

1,655,860,207 shares

As of March 31, 2023

1,655,860,207 shares

Number of treasury stock at the end of the period
As of June 30, 2023

20,489,393 shares

As of March 31, 2023

20,486,616 shares

Average number of shares outstanding during the period
Three Months ended June 30, 2023

1,635,216,496 shares

Three Months ended June 30, 2022

1,634,969,789 shares* This summary of financial results is exempt from audit procedures.
* Notes to appropriate use of forecasts and other special items:
Descriptions regarding forward-looking statements about the future performance of the Company contained in thissummary are based on information currently available to the Company and certain assumptions judged reasonable
and involve risks and uncertainties. The important factors that could cause actual results to differ materially fromthose discussed in the forward-looking statements include, but are not limited to, general economic conditions in the
Company’s markets; demand for, and competitive pricing pressure on, the Company’s products in the marketplace;rise in prices of raw materials; and fluctuations in foreign exchange rates.
* This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Attachments
1. Summary of Operating Results for the Three Months Ended June 30, 2023 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(1) Operating Results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(2) Consolidated Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 3(3) Consolidated Forecast and Other Forward-Looking Information ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 3
2. Consolidated Financial Statements and Major Notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(1) Consolidated Statement of Financial Positionꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(2) Consolidated Statement of Income andConsolidated Statement of Comprehensive Income(3) Consolidated Statement of Changes in Equityꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8(4) Consolidated Statement of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(5) Notes to Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ11(Going Concern Assumption) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Segment Information） ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 111

1. Summary of Operating Results for the Three Months Ended June 30, 2023
(1) Operating Results
For the three months ended June 30, 2023, the Group’s sales revenue decreased by ¥211.0 billion compared to thethe same period in the previous year, to ¥563.1 billion. In terms of profits and losses, core operating income* was aloss of ¥53.6 billion, operating income was a loss of ¥71.7 billion, and net income attributable to owners of the parent
was a loss of ¥33.2 billion. Results in every category of income were lower than the previous year’s levels.
*Core operating income is a gain and loss concept, reflecting recurring earning capacity, and deducts gains and losses
incurred by non-recurring factors from operating income. It includes the share of profit from investments accounted
for using the equity method.
The financial results by business segment for the first quarter are as follows:
Essential Chemicals & Plastics
The market prices for synthetic resins, methyl methacrylate and various industrial chemicals remained low due to adecrease in raw material prices. Shipments decreased owing to lower demand for petrochemical products resulting
from the global economic slowdown and the Company’s exit from the caprolactam business. As a result, sales revenue
decreased by ¥46.2 billion from the same period in the previous year, to ¥192.4 billion. Core operating income wasa loss of ¥21.0 billion, a decline in income of ¥31.0 billion from the same period in the previous year, due to a
deterioration in the financial performance of Rabigh Refining and Petrochemical Company, an affiliated company
accounted for by the equity method, as well as the lower market prices and impact of lower shipment volumes.
Energy & Functional Materials
The market prices of aluminum and the battery metals for cathode materials remained low. In addition, shipments
were sluggish, particularly for products for automotive applications. As a result, sales revenue decreased by ¥13.0
billion from the same period in the previous year, to ¥73.4 billion. Core operating income was ¥3.0 billion, lower by¥3.6 billion from the same period in the previous year.
IT-related Chemicals
Shipments of display-related materials, and processing materials for semiconductors such as high-purity chemicals
and photoresists, decreased as consumer sentiment deteriorated in the face of inflation concerns. As a result, sales
revenue decreased by ¥20.2 billion from the same period in the previous year, to ¥94.5 billion. Core operating income
was ¥6.7 billion, lower by ¥9.1 billion from the same period in the previous year.
Health & Crop Sciences
Sales of crop protection products decreased since a price spike of generic products tapered off and shipments
decreased due to an increase of inventories in the market in South America. Moreover, the market prices of methionine(feed additive) decreased from the same period in the previous year. As a result, sales revenue decreased by ¥49.8
billion from the same period in the previous year, to ¥102.7 billion. Core operating income was a loss of ¥7.0 billion,
lower by ¥29.0 billion from the same period in the previous year, because of lower sales of crop protection products
and deteriorated profit margins for methionine.
Pharmaceuticals
In the U.S., revenue showed a decrease owing to the impact of the loss of exclusivity for LATUDA® in the U.S., despite
growing sales of ORGOVYX® (therapeutic agent for advanced prostate cancer), GEMTESA® (therapeutic agent for
overactive bladder), and MYFEMBREE® (therapeutic agent for uterine fibroids and endometriosis). As a result, sales
revenue decreased by ¥84.7 billion from the same period in the previous year, to ¥83.0 billion. Core operating income
was a loss of ¥33.3 billion, lower by ¥47.3 billion from the same period in the previous year, as the reduction in selling,
general and administrative expenses owing to the loss of exclusivity for LATUDA®, was outweighed by the decreasein gross profit on account of a revenue decline.

2Others
In addition to the above five segments, the Group supplies electric power and steam, designs chemical plants andsupervises the construction of those facilities, provides transportation and warehousing, and conducts physicalproperty analysis and environmental analysis. Sales revenue of these businesses increased by ¥3.1 billion from thesame period in the previous year, to ¥17.3 billion, and core operating income decreased by ¥0.8 billion from the same
period in the previous year, to ¥2.4 billion.
(2) Consolidated Financial Position
As of the end of the period, total assets increased by 208.3 billion compared to the end of the previous year, to ¥4,373.8
billion due to the effect of foreign exchange conversions from the weak yen. Inventories, goodwill and intangible assets
increased.
Total liabilities increased by ¥147.5 billion compared to the end of the previous year, to ¥2,823.9 billion. Interestbearing liabilities increased by ¥171.2 billion compared to the end of the previous year, to ¥1,632.6 billion.
Total equity (including non-controlling interests) increased by ¥60.8 billion compared to the end of the previous year,to ¥1,549.9 billion, despite the net loss attributable to owners of the parent, because the exchange differences on
conversion of foreign operations increased resulting from the weak yen. The ratio of equity attributable to the ownersof the parent company decreased by 0.1 percentage points compared to the end of the previous year, to 28.0%.
(3) Consolidated Forecast and Other Forward-Looking Information
There is no change from the consolidated financial forecasts announced on May 15, 2023.

3

2. Consolidated Financial Statements and Major Notes(1) Consolidated Statement of Financial Position
As of June 30, 2023

Millions of yen

As of March 31, 2023

AssetsCurrent assets:
Cash and cash equivalents¥

323,134¥

305,844

Trade and other receivables

588,515

603,161

Other financial assets

33,303

31,237

Inventories

814,371744,474

Other current assets

92,57870,6701,851,901

1,755,386

－

7,498

1,851,901

1,762,884

Property, plant and equipment

859,231829,355

Goodwill

289,804

266,868

Intangible assets

430,306

403,996

Investments accounted for using the equity method

398,402402,980

Other financial assets

350,712313,115Retirement benefit assets

100,028

99,253

Deferred tax assets

43,98539,492Other non-current assets

49,42947,5602,521,897

2,402,619

Subtotal
Assets held for sale
Total current assets

Non-current assets:

Total non-current assets
Total assets¥

4

4,373,798¥

4,165,503

As of June 30, 2023

Millions of yen

As of March 31, 2023

Liabilities and equity
Liabilities
Current liabilities:
Bonds and borrowings¥

584,561¥

396,903

Trade and other payables

530,065

515,865

Other financial liabilities

92,59074,931

Income taxes payable

15,37031,772

Provisions

101,267

129,030

Other current liabilities

108,315

128,060

1,432,168

1,276,561

－

1,806

1,432,168

1,278,367

Bonds and borrowings

1,047,989

1,064,463

Other financial liabilities

98,342

98,594Retirement benefit liabilities

26,35926,427

Provisions

39,82538,443

Deferred tax liabilities

118,497

101,164

Other non-current liabilities

60,67968,856

1,391,691

1,397,947

2,823,859

2,676,314

89,81089,8100－Retained earnings

854,302891,552

Treasury shares(8,350)(8,349)289,039

197,830－349

1,224,801

1,171,192

325,138

317,997

1,549,939

1,489,189

Subtotal
Liabilities directly associated with assets held for sale
Total current liabilities

Non-current liabilities:

Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus

Other components of equity
Other comprehensive income associated with assets held for sale
Equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity¥

5

4,373,798¥

4,165,503

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Three months ended June 30,
Millions of yen

2023¥

Sales revenue

2022
563,143

Cost of sales

774,134(528,345)

129,132

245,789(178,072)(195,980)

10,1358,181(20,900)(4,379)(12,042)

12,671(71,747)

66,282Gross profit
Selling, general and administrative expenses¥(434,011)

Other operating income
Other operating expenses
Share of profit or loss of investments accounted forusing the equity method
Operating income (loss)
Finance income

39,171

61,908Finance expenses(17,286)(14,534)

Income (loss) before taxes(49,862)

113,656

Income tax expenses
Net income (loss)(1,320)(28,548)(51,182)

85,108(33,153)

69,992

Net income (loss) attributable to:
Owners of the parent
Non-controlling interests(18,029)

Net income (loss)¥(51,182)

15,116¥

85,108Three months ended June 30,
Yen

2023

2022

Earnings per share:
Basic earnings (loss) per share
Diluted earnings per share6(20.27)

42.81

－

－

Consolidated Statement of Comprehensive Income

Three months ended June 30,
Millions of yen

2023

Net income (loss)¥

2022(51,182)¥

85,108Other comprehensive income：Items that will not be reclassified to profit or loss
Remeasurements of financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans

36,468(7,173)

(5)

(62)

407

(811)

36,870(8,046)

816

7,970

Exchange differences on conversion of foreign operations

81,672

92,422

Share of other comprehensive income of investments accounted
for using the equity method

6,321

14,932

Total items that may be subsequently reclassified to profit or loss

88,809115,324

125,679

107,278

74,497

192,386

Owners of the parent

63,422

147,880

Non-controlling interests

11,07544,506

Share of other comprehensive income of investments accounted
for using the equity method
Total items that will not be reclassified to profit or loss

Items that may be subsequently reclassified to profit or loss
Cash flow hedge

Other comprehensive income, net of taxes
Total comprehensive income

Total comprehensive income attributable to：Total comprehensive income¥

774,497¥

192,386

(3) Consolidated Statement of Changes in Equity
Three months ended June 30, 2023
Equity attributable to owners of the parent
Other components of equity

Share capital

Capitalsurplus¥¥Retainedearnings

Remeasurementsof financial assets
measured at fairvalue throughothercomprehensive
incomeTreasurysharesMillions of yen
Balance as of April 1, 2023

89,810－¥891,552¥(8,349)¥Remeasurementsof defined benefit
plans

81,869¥－Net income (loss)－－(33,153)－－－

Other comprehensive income

－

－

－

－

21,714

10

Total comprehensive income－－(33,153)－

21,71410

Purchase of treasury shares

－

－

－

(1)

－

－

Disposal of treasury shares

－

0

－

0

－

－

Dividends－－(9,812)－－－

Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from other componentsof equity to retained earnings

－

－

349

－

－

－

－

－

－

－

－

－

－

－

5,366

－

(5,356)(10)

Others, net

－

－

－

－

－

－

Total transactions with owners
Balance as of June 30, 2023

0－¥89,810¥(4,097)0¥854,302(1)¥(8,350)Equity attributable to owners of the parent
Other components of equity
Other
Exchangedifferences on
conversion offoreign
operations

Cash flow
hedgesBalance as of April 1, 2023¥

Net income (loss)
Other comprehensive income
Total comprehensive income

(539)

¥

116,500

comprehensive
incomeassociated withassets held for
sale

Total

¥

197,830¥(5,356)¥(10)

98,227¥－

Equityattributable toowners of theparentNoncontrollinginterests

Total equity¥¥ 1,489,189349¥ 1,171,192

－

－

－

－

(33,153)

317,997(18,029)(51,182)869

73,982

96,575－96,575

29,104

125,679869

73,982

96,575－63,422

11,07574,497Purchase of treasury shares

－

－

－

－

(1)

－

(1)

Disposal of treasury shares

－

－

－

－

0

－

0

Dividends

－

－

－

－

(9,812)(3,934)(13,746)

Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from other componentsof equity to retained earnings

－

－

－

(349)

－

－

－

－

－

－

－

－

－

－

－

－

(5,366)

－

－

－

－

Others, net

－

－

－

－

－

－

－

－

－

(5,366)(349)(9,813)(3,934)(13,747)－¥ 1,224,801

325,138¥ 1,549,939

Total transactions with owners
Balance as of June 30, 2023

¥

330

¥

190,482¥

289,0398¥¥

Three months ended June 30, 2022
Equity attributable to owners of the parent
Other components of equity

Capitalsurplus

Share capital

Retainedearnings

Remeasurementsof financial assets
measured at fairvalue throughothercomprehensive
incomeTreasurysharesMillions of yen
Balance as of April 1, 2022¥

89,699¥27,089¥974,382¥(8,343)¥Remeasurementsof defined benefit
plans

82,682¥－

Net income－－

69,992－－－Other comprehensive income

－

－

－

－

(6,682)(33)

Total comprehensive income－－

69,992－(6,682)(33)

Purchase of treasury shares

－

－

－

(1)

－

－

Disposal of treasury shares

－

0

－

0

－

－

Dividends－－(22,890)

－

－

－

－

－

－

－

－

－

－

186

－

－

－

－

－

－

4,607

－

(4,640)33

Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from other componentsof equity to retained earnings
Others, net
Total transactions with owners
Balance as of June 30, 2022

¥

－

－

(20)

－

－

－

－

186

(18,303)(1)(4,640)33

89,699¥27,275¥

1,026,071¥(8,344)Equity attributable to owners of the parent
Other components of equity
Other
Exchangedifferences on
conversion offoreign
operations

Cash flow
hedgesBalance as of April 1, 2022¥

(8,735)

Net income
Other comprehensive income
Total comprehensive income¥

61,327comprehensive
incomeassociated withassets held for
sale

Total

¥

135,274¥¥

71,360¥－Equityattributable toowners of theparentNoncontrollinginterests

Total equity¥¥ 1,701,977－¥ 1,218,101

－

－

－

－

69,992483,876
15,116

85,108

7,946

76,65777,888－77,88829,390107,278

7,946

76,65777,888－147,880

44,506

192,386

Purchase of treasury shares

－

－

－

－

(1)

－

(1)

Disposal of treasury shares

－

－

－

－

0

－

0

Dividends

－

－

－

－

(22,890)(9,781)(32,671)

－

－

－

－

－

－

－

－

－

－

－

186

1,378

1,564

－

－

(4,607)

－

－

－

－

Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from other componentsof equity to retained earnings
Others, net
Total transactions with owners
Balance as of June 30, 2022

¥

－

－

－

－

(20)

－

(20)

－

－

(4,607)－(22,725)(8,403)(31,128)－¥ 1,343,256

519,979¥ 1,863,235

(789)

¥

137,984¥

208,5559¥¥

(4) Consolidated Statement of Cash Flows
Three months ended June 30,
2023
2022

Millions of yen
Cash flows from operating activities:
Income (loss) before taxes¥(49,862)¥

113,656

Depreciation and amortization

39,30043,713

Share of (profit) loss of investments accounted for using the equity method

12,042(12,671)

Interest and dividend income(5,581)(4,321)

Interest expenses

6,784

5,733

Restructuring costs

19,297

2,135

(725)

(1,896)(Gain) loss on sale of property, plant and equipment(Increase) decrease in trade receivables

53,451

28,174(Increase) decrease in inventories(34,127)(57,141)

Increase (decrease) in trade payables(22,303)62,567

Increase (decrease) in unearned revenue(2,927)(8,119)

Increase (decrease) in provisions(35,791)

9,446

Others, net(82,192)(117,487)

Subtotal(102,634)

63,789

9,034

8,845

Interest and dividends received
Interest paid

(6,875)(6,013)

Income taxes paid

(30,749)(22,864)

Restructuring costs paid
Net cash provided by operating activities
Cash flows from investing activities:
Net (increase) decrease in securities
Purchase of property, plant and equipment, and intangible assets
Proceeds from sales of property, plant and equipment, and intangible assets(694)(1,126)(131,918)

42,631(4,599)(10,591)(44,188)(37,490)

430

2,154

Proceeds from sales of subsidiaries

11,074－Purchase of other financial assets(2,343)(3,007)

Proceeds from sales and redemption of other financial assets

24,78836,186

235

59,900

Proceeds from collection of loan receivables
Others, net
Net cash used in investing activities

1,164(1,127)(13,439)46,025

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings

79,406

46,613

Net increase (decrease) in commercial paper

53,00040,000

Proceeds from long-term borrowings

29,956

716

Repayments of long-term borrowings(1,815)(38,873)

Repayments of finance lease liabilities(4,340)(4,259)Cash dividends paid

(9,821)(22,900)

Cash dividends paid to non-controlling interests(3,888)(9,707)

Others, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

(450)

(67)

142,048

11,523

19,46432,992

Net increase (decrease) in cash and cash equivalents

16,155133,171

Cash and cash equivalents at the beginning of the year
Net increase (decrease) in cash and cash equivalents
resulting from transfer to assets held for sale
Cash and cash equivalents at the end of the period

305,844

365,429

1,135

－

¥

10

323,134¥

498,600

(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Segment Information)
1.

Reportable Segments

The reportable segments of the Group refer to business units for which separate financial information is available andthat are reviewed regularly at the Board of Directors meeting in order to determine the allocation of management
resources and evaluate the business performance of each business unit.
The Group divides its operations into business sectors identified by products and services, which manage
manufacturing, sales, and research in an integrated manner. Each business sector is responsible for developing
comprehensive domestic and overseas strategies with respect to its products and services, and operates its businessactivities.
Accordingly, the Group has five reportable segments based on its products and services in accordance with its
business sectors, including “Essential Chemicals & Plastics,” “Energy & Functional Materials,” “IT-related Chemicals,”“Health & Crop Sciences,” and “Pharmaceuticals.”
The major products and services of each reportable segment are as follows:

Reportable Segment

2.

Major Products and Services

Essential Chemicals &Plastics

Synthetic resins, raw materials for synthetic fibers, various industrial chemicals,
methyl methacrylate products, synthetic resin processed products, etc.

Energy & Functional
Materials

Alumina, aluminum, specialty chemicals, additives, synthetic rubber, engineering
plastics, battery materials, etc.

IT-related Chemicals

Optical products, semiconductor processing materials, compound semiconductormaterials, touch screen sensor panels, etc.

Health & Crop Sciences

Crop protection chemicals, fertilizers, agricultural materials, household insecticides,
products for control of infectious diseases, feed additives, active pharmaceuticalingredients and intermediates, etc.

Pharmaceuticals

Pharmaceuticals for medical treatment, radiopharmaceuticals, etc.

Reportable Segment Information

The accounting methods for each reportable segment are, in principle, identical to those used in the consolidated
financial statements. The segment profit is core operating income, which is calculated from operating income after
excluding effects from non-recurring factors.
Inter-segment sales revenue is based on market prices.

11Three months ended June 30, 2023

Millions of yen

Essential
Chemicals& Plastics

Energy & IT-related
Functional Chemicals
Materials

Health &Crop
Sciences

Pharmaceuticals¥ 94,451 ¥ 102,707¥ 82,985

Total

Others(Note 1)

Adjustments(Note 2)

Consolidated

Sales revenue:
Sales revenues from externalcustomers
Inter-segment sales revenues
Total sales revenue¥ 192,353 ¥ 73,383¥ 545,879 ¥ 17,264¥－ ¥ 563,143

1,361

5,466

110

762

1

7,700

20,164(27,864)－

193,71478,84994,561

103,469

82,986

553,579

37,428(27,864)

563,143

Segment profit (loss)¥ (21,005) ¥ 3,004¥ 6,669 ¥ (7,049) ¥ (33,273) ¥ (51,654) ¥ 2,430 ¥ (4,374) ¥ (53,598): core operating income (loss)
Note 1: “Others” represents businesses such as supplying electrical power and steam, providing services for the design, engineering, and construction
management of chemical plants, providing transport and warehousing, and conducting materials and environmental analysis, which are notincluded in reportable segments.
Note 2: ¥(4,374) million for segment profit (loss) in “Adjustments” includes inter-segment elimination of ¥5 million and corporate expenses of ¥(4,379)
million unallocated to each reportable segment. Corporate expenses are mainly research and development expenses for company-wide research,which are not attributed to reportable segments.

Three months ended June 30, 2022

Millions of yen

Essential
Chemicals& Plastics

Energy & IT-related
Functional Chemicals
Materials

Health &Crop
Sciences

Pharmaceuticals

Total

Others(Note 1)

Adjustments(Note 2)

Consolidated

Sales revenue:
Sales revenues from externalcustomers
Inter-segment sales revenues
Total sales revenue¥ 238,562 ¥ 86,427 ¥ 114,650 ¥ 152,556 ¥ 167,728¥ 759,923 ¥ 14,211¥－ ¥ 774,134

1,465

4,838

116

945

6

7,370

17,457(24,827)－240,027

91,265

114,766

153,501

167,734

767,293

31,668(24,827)

774,134

Segment profit¥ 6,624 ¥ 15,770 ¥ 21,905 ¥ 14,076¥ 9,987¥ 68,362¥ 3,275 ¥ (7,526) ¥ 64,111: core operating income
Note 1: “Others” represents businesses such as supplying electrical power and steam, providing services for the design, engineering, and construction
management of chemical plants, providing transport and warehousing, and conducting materials and environmental analysis, which are notincluded in reportable segments.
Note 2: ¥(7,526) million for segment profit in “Adjustments” includes inter-segment elimination of ¥(1,063) million and corporate expenses of ¥(6,463)
million unallocated to each reportable segment. Corporate expenses are mainly research and development expenses for company-wide research,which are not attributed to reportable segments.

12Adjustments to income (loss) before taxes from core operating income (loss) were as follows:
Three months ended June 30,
Millions of yen

2023

Core operating income (loss)¥

Restructuring costs

2022(53,598)¥

64,111(19,297)(2,135)

Changes in fair value of contingent consideration

(38)

(78)

Gains on sale of property, plant and equipment, and intangible assets

725

1,896

Others, net

461

2,488

Operating income (loss)(71,747)

66,282Finance income

39,171

61,908Finance expenses(17,286)(14,534)(49,862)¥ 113,656

Income (loss) before taxes¥

13