For Immediate Release

July 31, 2018

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2018
The Sumitomo Chemical Group’s consolidated sales revenue for the first quarter
ended June 30, 2018, increased by ¥41.0 billion compared with the same period of theprevious fiscal year, to ¥548.9 billion. The Group posted core operating income of¥48.2 billion, operating income of ¥44.1 billion, and net income attributable to ownersof the parent of ¥30.0 billion, all representing year-on-year declines.
“Core operating income” is a gain and loss concept that reflects recurring earning
capacity. It excludes gains and losses from non-recurring factors from operating
income, including share of profit of investments accounted for using the equity
method.
The Sumitomo Chemical Group’s financial results by business segment for the firstquarter ended June 30, 2018, were as follows.
Petrochemicals & Plastics
Market prices for petrochemical products rose because of higher feedstock prices.
Market conditions for raw materials for synthetic fibers and methyl methacrylate(MMA) also increased. In addition, for associates accounted for using the equity
method, the earnings of Rabigh Refining and Petrochemical Company improved due
chiefly to a continued high level of capacity utilization. As a result, the segment’s sales
revenue grew by ¥32.2 billion compared with the same period of the previous fiscal
year, to ¥185.6 billion. Core operating income increased by ¥2.8 billion, to ¥17.8 billion.
Energy & Functional Materials
Shipments of separators and cathode materials for lithium-ion secondary batteriesrose on higher demand. Shipments of high purity alumina also increased, primarily foruse in battery materials. As a result, the segment’s sales revenue increased by ¥9.0billion compared with the same period of the previous fiscal year, to ¥68.5 billion. Coreoperating income grew by ¥1.1 billion, to ¥5.9 billion.

IT-related Chemicals
Shipments of polarizing film increased due to growth in demand, while selling prices
of both touchscreen panels and polarizing film declined. As a result, the segment’ssales revenue decreased by ¥1.6 billion compared with the same period of theprevious fiscal year, to ¥89.2 billion, but improvements in business performance suchas the increase in shipments of polarizing film and streamlining led to a rise in core
operating income by ¥1.0 billion compared with the same period of the previous fiscal
year, to ¥4.3 billion.
Health & Crop Sciences
Shipments of agricultural chemicals increased, primarily in regions outside Japan,such as South America and Asia. On the other hand, the stronger yen had a negative
effect on sales from overseas subsidiaries in yen terms. As a result, the segment’ssales revenue increased by ¥1.9 billion compared with the same period of the previousfiscal year, to ¥69.4 billion. Core operating income declined by ¥2.9 billion, to ¥2.6
billion compared with the same period of the previous fiscal year due to degradationof terms of trade accompanying a rise in feedstock prices.
Pharmaceuticals
In North America, although the stronger yen had a negative effect on sales fromoverseas subsidiaries in yen terms, sales of Aptiom® (antiepileptic drug) and othertreatments increased. On the other hand, results in Japan were adversely impacted bydrug price revisions instituted by Japan’s National Health Insurance. As a result, thesegment’s sales revenue were essentially unchanged from the same period of theprevious fiscal year at ¥124.3 billion. Core operating income declined by ¥6.3 billion,to ¥19.7 billion compared with the same period of the previous fiscal year due to theimpact of drug price revisions and higher sales expenses.
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’s
sales revenue came to ¥11.9 billion, almost unchanged from the same period of theprevious fiscal year, and core operating income declined by ¥0.8 billion, to ¥1.6 billion.

Summary of Consolidated Results(1) Results of Operations:

Sales revenue
Core operating income(Share of profit of investments
accounted for using the equity method )Operating income
Income before taxes
Net income
Net income attributable tonon-controlling interests
Net income attributable toowners of the parent

Net income per 1,000 shares

Comprehensive income(3 Months ended
June 30, 2018
Yen (Millions)
USD (Thousands)*
548,943
4,966,012
48,202436,059
13,394 )(121,169 )3 Months ended
June 30, 2017
Yen (Millions)507,91253,505(7,468 )44,09651,703
41,133398,914467,731
372,110

66,20466,752
52,376

11,122

100,615

18,54730,011

271,494

33,829Yen
18,355

USD*
166

Yen
20,689Yen (Millions)
45,024

USD (Thousands)*
407,310

Yen (Millions)
50,002As of June 30, 2018
Yen (Millions)
USD (Thousands)*
3,156,525
28,555,500
1,265,900
11,451,963

As of March 31, 2018
Yen (Millions)
3,068,685
1,252,214

3 Months ended
June 30, 2018
Yen (Millions)
USD (Thousands)*(17,153)(155,175)(41,726)(377,474)
58,551
529,682
235,000
2,125,927

3 Months ended
June 30, 2017
Yen (Millions)29,453(17,530)
9,978
214,392

3 Months ended
June 30, 2018
Yen (Millions)
USD (Thousands)*

3 Months ended
June 30, 2017
Yen (Millions)䚷(2) Financial Position:
Total assets
Total equity(3) Cash Flows:
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period(4) Results of Operations by䚷䚷䚷Business Segment:
Sales revenue
Petrochemicals & Plastics
Energy & Functional Materials
IT-related Chemicals
Health & Crop Sciences
Pharmaceuticals
OthersCore operating income
Petrochemicals & Plastics
Energy & Functional Materials
IT-related Chemicals
Health & Crop Sciences
Pharmaceuticals
OthersAdjustments

185,625
68,54889,157
69,368124,306
11,939548,943

1,679,256
620,119806,559
627,538
1,124,534
108,006
4,966,012

153,474
59,59690,75767,472
124,623
11,990507,912

17,827
5,912
4,291
2,631
19,683
1,640(3,782)
48,202

161,272
53,48338,81923,801
178,062
14,836(34,214)436,059

15,033
4,848
3,303
5,497
25,9472,395(3,518)53,505(Note)
䚷 *:U.S. dollar amounts are translated from yen, for convenience only, at the rate ofࠉ¥110.54 = $1 prevailing on June 30, 2018.
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