For Immediate Release

May 10, 2012

Sumitomo Chemical Company, Limited
Announces Consolidated Financial Results
During the twelve months ended March 31, 2012 (Fiscal 2011), the overall global
economy remained generally weak. The economic recovery of developed countries
weakened due to an economic downturn in Europe amid the sovereign debt crisis,
while the pace of economic expansion slowed in emerging countries. In addition, theJapanese economy remained sluggish due to the effects of a stronger yen and otherfactors.
The business conditions surrounding the Sumitomo Chemical Group became very
tough with a rise in feedstock prices and a rapid decline in demand in Asia since lastautumn.
Under these circumstances, the Sumitomo Chemical Group undertook group-wide
efforts to improve business performance by increasing selling prices and expanding
sales volumes, as well as by cutting costs through a thorough rationalization ofoperations. However, the Group’s sales for fiscal 2011 were ¥1,947.9 billion, adecrease of ¥34.6 billion compared with fiscal 2010. The Group’s operating income
was ¥60.7 billion and ordinary income was ¥50.7 billion, both representing
year-on-year decreases. The Group posted net income of ¥5.6 billion, representing adecline from fiscal 2010, due to large extraordinary losses.
The Sumitomo Chemical Group’s financial results by business segment for fiscal
2011 are as follows.
Basic Chemicals
Despite higher market prices of methyl methacrylate and of raw materials used insynthetic fibers, sales declined due to a decrease in shipments as a result of theimpact of the earthquake and a decrease in demand. Sales of specialty chemicals
also declined due to weak shipments. As a result, the segment’s sales decreased by¥17.9 billion compared with the previous fiscal year, to ¥284.3 billion, and operating
income declined by ¥11.3 billion, to ¥9.3 billion.
Petrochemicals & Plastics
While shipments of synthetic resins and petrochemical products decreased as aresult of periodical maintenance shutdowns at manufacturing plants in Japan andabroad, in addition to the impact of the earthquake and lower demand, sales
increased due to higher market prices overseas and higher selling prices in Japan inaccordance with a rise in the price of naphtha and other feedstocks. Consequently,
the segment’s sales increased by ¥22.5 billion compared with the previous fiscal year,to ¥672.4 billion, but operating income decreased by ¥5.0 billion, to ¥6.2 billion.
IT-related Chemicals
Shipments of polarizing film used in liquid crystal displays (LCDs) increased due tohigher demand for use in smartphones and tablet PCs and because of an expansion
in production capacity in Taiwan, but shipments of color filters decreased. In addition
to lower sales prices of both polarizing film and color filters, the value of sales fromoverseas subsidiaries decreased in yen terms due to the effects of a stronger yen. Asa result, the segment’s sales decreased by ¥29.2 billion compared with the previous
fiscal year, to ¥293.1 billion, and operating income decreased by ¥15.2 billion, to ¥11.0billion.

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 a decrease in the value of sales from overseas subsidiaries in yen terms dueto the effects of a stronger yen, the segment’s sales increased by ¥13.3 billion
compared with the previous fiscal year, to ¥264.1 billion, and operating income
increased by ¥3.2 billion, to ¥26.5 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 for
Parkinson’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, decreased due to competition withgeneric drugs. In addition, the value of sales from overseas subsidiaries decreased inyen terms due to the effects of a stronger yen. As a result of these factors, together
with the income from an upfront payment associated with a development andcommercialization agreement in the previous fiscal year, the segment’s sales
decreased by ¥30.1 billion compared with the previous year, to ¥380.5 billion, andoperating income decreased by ¥7.7 billion, to ¥20.9 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 analyses. The segment’s
sales increased by ¥6.8 billion compared with the previous fiscal year, to ¥53.4 billion,
and operating income rose by ¥3.6 billion, to ¥7.7 billion.
(Note) Change 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 BasicChemicals 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.

With respect to the year-end dividend for fiscal 2011, the Company has decided to pay¥3 per share. Combined with the interim dividend of ¥6 per share, the annual dividend
for fiscal 2011 will be ¥9 per share, the same level as for fiscal 2010.
Operating cash flow in fiscal 2011 decreased by ¥51.7 billion compared with theprevious fiscal year, to ¥124.5 billion, (as a result of a decrease in income before
income taxes and minority interests, as well as depreciation and amortization.) Cashflow from investing activities was negative ¥124.0 billion, a decrease of ¥32.0 billion
compared to the previous fiscal year, when the Company acquired the shares ofNurfarm Limited. This resulted in free cash flow of ¥0.5 billion for fiscal 2011,
compared with ¥20.2 billion for the previous fiscal year. Cash flow from financing
activities was ¥2.1 billion. The balance of cash and cash equivalents at the end of thefiscal year decreased by ¥4.6 billion over the previous year, to ¥147.1 billion.

For fiscal 2012, the Company forecasts that sales will increase by 14.5%, to ¥2,230.0billion, while operating income is expected to be ¥90.0 billion, ordinary income to be¥95.0 billion, and net income to be ¥40.0 billion, assuming an exchange rate of¥82.5/US$ and a naphtha price of ¥65,000/kl. For fiscal 2012, the Company plans topay the interim dividend of ¥6 per share and the year-end dividend of ¥3 per share,
resulting in the annual dividend of ¥9 per share, the same level as for fiscal 2011.

Consolidated Statements of IncomeYears ended March 31, 2012(FY2011) and 2011(FY2010)
FY2011
Yen (Millions)
USD (Thousands) *1
Sales
Cost of sales

FY2010Yen (Millions)

1,947,884

23,699,7691,982,435

1,418,464

17,258,353

1,409,520

468,732

5,703,029

484,958

60,688738,387

87,957

Selling, general and administrative expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expenses

7,654

93,126

6,697(12,397)(150,833)(13,016)

Equity in earnings of affiliates

1,986

24,164

10,824

Loss on foreign currency transactions(3,675)(44,713)(6,615)Gain on sale of investment securities

9,837

119,686-

1,442

17,545-Equity in losses of affiliates

Gain on sale of property, plant and equipment(26,005)(316,401)-

Restructuring charges(6,354)(77,309)(4,067)

Impairment loss

(3,595)(43,740)(3,247)

Environmental expenses(2,093)(25,465)-*2

Loss on disaster--(1,079)Other, net(3,542)(43,098)(1,756)

Income before income taxes andminority interests

23,946291,349

75,698

Income taxes, net of tax effect

8,299

100,973

34,846

15,647

190,376

40,852

Minority interests

10,060122,399

16,418Net income

5,587

67,977

24,434

Income before minority interests

FY2011FY2010
*1

Yen

3.42

0.04

14.86

Interim dividends

6.00

0.07

3.00

Year-end dividends

3.00

0.04

6.00

For the year

9.00

0.11

9.00

Yen
Net income per share

USDDividends per share:(Note)*1:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥82.19= $1 prevailing on March 31, 2012.
*2:One-time amortization of goodwill of an affiliate recognized due to a write-down ofinvestment in the affiliate on a non-consolidated basis.

Consolidated Statements of Comprehensive IncomeYears ended March 31, 2012(FY2011) and 2011(FY2010)
FY2011
USD (Thousands)*
Yen (Millions)
Income before minority interests

FY2010Yen (Millions)

15,647

190,376

40,852

Valuation difference on available-for-sale securities

117

1,424

(6,456)

Deferred gains or losses on hedges

730

8,882

(55)

(20,929)(254,642)(49,823)(6,041)(73,501)(17,360)(26,123)(317,837)(73,694)(10,476)(127,461)(32,842)(16,374)(199,221)(30,739)

5,898

71,760(2,103)

Other comprehensive income：

Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using the equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥82.19= $1 prevailing on March 31, 2012.

Consolidated Statements of Cash Flows
Years ended March 31, 2012(FY2011) and 2011(FY2010)
FY2011FY2010Yen (Millions)

USD (Thousands)*Yen (Millions)

Income before income taxes and minority interests

23,946291,349

75,698Depreciation and amortization

114,890

1,397,859

147,009

Income taxes paid

(31,515)(383,441)(30,698)

Other, net

17,170208,906(15,781)

Net cash provided by operating activities

124,491

1,514,673

176,228

Acquisition of securities(46,815)(569,595)(82,999)

Proceeds from sales and redemption of securities

57,586700,645

27,676(136,580)(1,661,759)(100,578)

1,834

22,314(86)(123,975)(1,508,395)(155,987)(17,107)(208,140)(87,764)

Cash flows from operating activities:

Cash flows from investing activities:

Acquisition of property, plant and equipment
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Net （decrease） increase in short-term debt
Net increase (decrease) in long-term debt

43,318527,047

134,350

Cash dividends paid

(19,628)(238,813)(14,868)

Other, net(4,529)(55,103)(13,733)

Net cash provided by (used in) financing activities

2,054

24,991

17,985(2,969)(36,124)(7,663)(399)(4,855)30,563(4,088)(49,738)

386

(71)

(864)

-Cash and cash equivalents at beginning of year

151,609

1,844,616

120,660

Cash and cash equivalents at end of year

147,051

1,789,159

151,609

Effect of exchange rate changes
on cash and cash equivalents
Net change in cash and cash equivalents

Net (decrease) increase in cash and cash equivalents
resulting from changes of scope of consolidation
Net (decrease) increase in cash and cash equivalents resulting
from changes of fiscal year end of consolidated subsidiaries(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥82.19= $1 prevailing on March 31, 2012.

Segment Information
Years ended March 31, 2012(FY2011) and 2011(FY2010)
Yen (Millions)
Basic
PetroIT-related
Chemicals chemicals& Chemicals
Plastics

Health &Crop
Sciences

Pharmaceuticals

Subtotal

Consolidated

Adjustments

Others

FY201153,390-1,947,884(97.3%)(2.7%)-(100.0%)(-2.1%)(14.7%)-(-1.7%)73,885

7,720(20,917)60,688284,348

672,428

293,066

264,134

380,518

1,894,494(Share)(14.6%)(34.5%)(15.0%)(13.6%)(19.5%)(Growth)(-5.9%)(3.5%)(-9.1%)(5.3%)(-7.3%)

9,349

6,155

10,96826,495

20,918

Sales

Operating income

[a]

[b]

[b] / [a](3.3%)(0.9%)(3.7%)(10.0%)(5.5%)(3.9%)(14.5%)

Total assets

302,372

554,366

265,023

330,036626,621

2,078,418

195,626

62,9092,336,953

14,094

14,115

14,451

12,12638,53593,321

6,945

7,082

107,348

148

-

81

2,512

3,764

6,505

5

1,032

7,542

10,58180,8103,958

27,915

10,272

133,536

58,619-192,155

24,51019,584

66,88019,282

11,340141,596

3,241

10,240155,077

Depreciation andamortization
Amortization ofgoodwill
Investment onaffiliates applied toequity methods
Capitalexpenditures(3.1%)FY2010*Sales[a](Share)Operating income[b]

302,289

649,885

322,287

250,806

410,614

1,935,881

46,554-

1,982,435(15.2%)(32.8%)(16.3%)(12.7%)(20.7%)(97.7%)(2.3%)-(100.0%)

20,627

11,13026,13823,30228,654

109,851

4,128(26,022)87,957[b] / [a](6.8%)(1.7%)(8.1%)(9.3%)(7.0%)(5.7%)(8.9%)

Total assets

284,476555,254

249,005

358,725

656,698

2,104,158

199,640

63,5162,367,314

21,002

18,396

20,16819,455

43,120122,141

7,210

9,337

138,688

227

-

113

2,805

4,037

7,182

8

1,131

8,321

9,228

88,464488

54,05010,176

162,406

57,159-219,565

16,63913,71927,74915,607

10,451

84,165

7,902

6,652

98,719Depreciation andamortization
Amortization of
goodwill
Investment on
affiliates applied toequity methods
Capitalexpenditures(4.4%)(Note)*Segment information of the previous fiscal year is reclassified in accordance with the change in reported segments.

Overseas Operations
Years ended March 31, 2012(FY2011) and 2011(FY2010)
FY2010FY2011

Overseas
operations

Yen (Millions)

USD(Thousands)

Share (%)

Growth (%)

Yen (Millions)

1,008,969

12,276,055

51.8

-4.5

1,056,718(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥82.19= $1 prevailing on March 31, 2012.
(Cautionary Statement)
Statements made in this release with respect to the Company’s current plans, estimates, strategies and beliefs that are not historicalfacts are forward-looking statements about the future performance of Sumitomo Chemical. These statements are based on
management’s assumptions and beliefs in light of the information currently available to it, and involve risks and uncertainties.
The 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 for, and competitive pricing pressure on,
Sumitomo Chemical’s products in the marketplace; Sumitomo Chemical’s ability to continue to win acceptance for its products in thesehighly competitive markets; and movements of currency exchange rates.