For Immediate Release

October 6, 2022

Sumitomo Chemical Announces Impairment Loss and Revisions to Its
Financial Forecast for the Half-Year Ended September 30, 2022
Sumitomo Chemical Co., Ltd. (the “Company”) announces that an impairment loss of its subsidiary,
Sumitomo Pharma Co., Ltd. (“SMP”), will be posted in the second quarter ended September 30,
2022. Furthermore, Sumitomo Chemical has made revisions to its consolidated financial forecast
for the half-year ended September 30, 2022, previously announced on August 1, 2022, as detailedbelow.
1. Posting the Impairment Loss
It has been 2 years since the launch of KYNMOBI® in September 2020. Since KYNMOBI® has notbeen performing up to expectations, SMP has reviewed the forecast of its earnings and will post an
impairment loss of ¥54,370 million (US$406 million) associated with the product.
KYNMOBI® is a treatment for OFF episodes associated with Parkinson's disease, which is being
marketed in the United States by Sunovion Pharmaceuticals Inc., a US subsidiary of SMP (subsubsidiary of the Company).
2. Revisions to the Consolidated Financial Forecast for the Half-Year Ended September 30, 2022
(Millions of yen)
CoreSales
Revenue

OperatingIncome *OperatingIncome

Net Income
Attributable toOwners of theParentEarnings
per Share(yen)Previous forecast (A)1,570,000

105,000

100,000

85,000

51.99

Revised forecast (B)1,570,000

120,000

65,00085,00051.99

Variance in amount (B-A)-

15,000-35,000-

Variance in percentage (%)-

14.3-35.0-

Results for Half-Year ended
September 30, 2021

1,325,210

148,897

144,272

88,88454.36* 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 frominvestments accounted for using the equity method.

(Reasons for the Revision)
Regarding the consolidated financial forecast for the half-year ended September 30, 2022, core
operating income is forecasted to exceed the previous forecast because, in the Health & Crop
Science Sector, sales of crop protection products in South America stayed firm. On the other hand,operating income is forecasted to be lower than the previous forecast mainly due to the impairment
loss mentioned above. Net income attributable to owners of the parent is the same as the previous
forecast, despite lower operating income, because significant foreign exchange gains from theweak yen are expected. As a side note, the impairment loss is a non-cash item and has no impact
on the Company’s cash flows.
Regarding the consolidated financial forecast for the fiscal year ending March 31, 2023, it is underconsideration and planned to be announced with the half-year consolidated financial results ended
September 30, 2022, scheduled on November 1, 2022.
Cautionary Statement
Statements made in this document with respect to Sumitomo Chemical’s current plans, estimates,strategies and beliefs that are not historical facts 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 inSumitomo 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 these highly competitive markets; and movements of currency
exchange rates.

Information:
Financial Forecast by Segment for the Half-Year Ended September 30, 2022
(Millions of yen)
Fiscal 2022
Previous
Forecast (A)Fiscal 2022
Revised
Forecast (B)Results for
Half-Year
Variance inended
Amount (B-A)
September 30,2021

Essential Chemicals& Plastics

Sales revenue

510,000

480,000-30,000

399,485

Core operating income

28,00024,000-4,00042,043

Energy & Functional
Materials

Sales revenue

190,000

185,000-5,000148,477

Core operating income

10,00012,5002,500

12,573

Sales revenue

210,000

225,000

15,000227,656

Core operating income

23,00025,0002,000

29,524

Sales revenue

315,000

320,000

5,000

209,427

Core operating income

37,00045,0008,000

18,456

Sales revenue

315,000

330,000

15,000309,580

Core operating income

10,00022,00012,00049,963

Sales revenue

30,00030,000-30,585

Core operating income-3,000-8,500-5,500-3,662

1,570,000

1,570,000-

1,325,210

105,000

120,000

15,000148,897IT-related Chemicals
Health & Crop
Sciences
Pharmaceuticals
Others /Adjustments
Total

Sales revenue
Core operating income