September 30, 2019
For Immediate Release
Company Name:
Representative:

Securities Code:
Stock Exchange Listings:
Inquiries:

Sumitomo Chemical Co., Ltd.
Keiichi Iwata
President and Representative
Director4005
First Section of the Tokyo StockExchange
Toshihiro Yamauchi
General Manager
Corporate Communications Dept.
(Tel: +81-3-5543-5102)

Announcement Concerning the Acquisition of Sharesin Nufarm’s Group Companies in South America
Sumitomo Chemical Company, Limited (“Sumitomo Chemical”) announced today that it
has agreed with Nufarm Ltd. (“Nufarm”), the leading crop protection company inAustralia, to acquire all shares of Nufarm’s four South American subsidiaries in Brazil,Argentina, Chile and Colombia, through Sumitomo Chemical's fully owned subsidiaries
in the region, i.e. Sumitomo Chemical Brazil for the Brazilian subsidiary, and Sumitomo
Chemical Chile for the others. The acquisition is due to be completed upon approval by
Nufarm’s shareholders’ meeting scheduled for December this year, subject to clearance
by relevant regulatory authorities.
1．Purpose of Shares Acquisition
The crop protection market in South America currently accounts for approximately 25
percent of the world market, which is larger than North America or China. Amongcountries in the region, Brazil has the world’s largest crop protection market with ahuge demand especially for soybean treatments. Argentina is one of the world’s leading
agricultural countries. Against the backdrop of increasing global food demand, the crop
protection market demand in the region is expected to grow further in the future.
As a result of the acquisition announced this time, the crop protection revenue of
Sumitomo Chemical in South America will triple, surpassing its revenue in NorthAmerica. In addition, the Company can build a solid in-house sales system for crop
protection chemicals in this region, which is the world's largest market and is expected
to grow. More importantly, the acquisition will give a powerful impetus to theCompany's ongoing projects to establish a network of its global footprints (Sumitomo
Chemical’s own distribution networks). Among the Company's products to benefit
directly from the acquisition is INDIFLIN™, a novel fungicide active ingredient,discovered by Sumitomo Chemical, to be launched in 2020 or later, which has a highefficacy against major plant diseases such as Asian Soybean Rust. Sumitomo Chemicalhas been working jointly with Nufarm to develop mixtures containing INDIFLIN™,
and the acquisition will accelerate this development and also enhance the line-up of
related crop protection products. Also, the strengthened footprints in Latin America
will enable Sumitomo Chemical to begin realizing a solid growth of INDIFLIN™ sales
immediately after it is launched and to achieve a significant growth in crop protection
revenue in the Latin American markets. Furthermore, the acquisition will provide
Sumitomo Chemical with an opportunity to pursue the integration of business
operations, from development through formulation to distribution because aformulation plant the Company will obtain as part of the acquisition can be managed
and operated closely with its existing R&D facility and its adjoining experimental field.

2．Overview of Subsidiary merged
Company name

Nufarm Indústria Química e Farmacêutica S.A.

Address

Avenida Parque Sul, No. 2,138, Distrito Industrial,
Maracanaú - CE, Brazil

Representative

Gilberto Bento Schiavinato, CEO

Scope of Business

Manufacturing and commercialization ofagricultural pesticides

CapitalBRL 793 million

Date Established

6 September 1968

Major shareholders and ratio ofshares held

Nufarm Australia Limited 100%

Capital relationship

Relationship between thesubsidiary and Company

Human relationship
Trade relationship
Related party
relationship

Subsidiary of Nufarm
Limited, in which
Sumitomo Chemical has
15.88% shares
No notable relationship
Sumitomo Chemical Groupsells products to Nufarm
Indústria Química eFarmacêutica S.A.
Subsidiary of Nufarm
Limited, in which

Sumitomo Chemical has
15.88% shares
Performance and Financial Results of the Past Two Years
Year End

July 2017

July 2018

Net assets

BRL 628 million

BRL 699 million

Total assets

BRL 1,758 million

BRL 2,064 million

Net sales

BRL 1,709 million

BRL 2,065 million

3．Outline of the major Company of Share Acquisition
Company name

Nufarm Australia Limited

Address

105 Pipe Road, Laverton North, Victoria, Australia
Capital relationship

Relationship between the Partnerand Company

Human relationship
Trade relationship

Subsidiary of Nufarm
Limited, in which
Sumitomo Chemical has
15.88% shares
No notable relationship
Sumitomo ChemicalGroup sells products toNufarm Australia Limited

4．Number of shares acquired, Purchase price and status of shares held before and afteracquisitionShares held before acquisition

0 shares（ratio of shares 0%）

Number of shares acquired

11,257,156 shares

Shares held after acquisition

11,257,156 shares (ratio of shares 100%)

Purchase price

About 70 billion JPY* (Estimated at present)*total purchase price of 4 companies in Brazil, Argentina, Chile and Colombia
5．Schedule
Contract date

September 30, 2019

Date of completion of share acquisition

The first half of 2020 (scheduled)

6．Future Outlook
The financial impact of this acquisition of shares on Sumitomo Chemical’s consolidated
financial results for FY2019 is currently under review. Sumitomo Chemical will
announce any revisions to its financial forecasts or any other information that needs tobe disclosed without delay.