For Immediate Release

November 1, 2022

Sumitomo Chemical Reports
Consolidated Financial Results
For the Half-Year Ended September 30, 2022
For the half-year ended September 30, 2022, the Sumitomo Chemical Group reported
consolidated sales revenue of ¥1,528.6 billion, an increase of ¥203.4 billion year on
year, core operating income* of ¥115.6 billion, operating income of ¥60.6 billion, andnet income attributable to owners of the parent of ¥81.1 billion, all lower than the
results from the same period in the previous year.
Sumitomo Chemical decided to pay an interim dividend of ¥12 per share.
*Core operating income is a gain and loss concept, reflecting recurring earning
capacity, and deducts gains and losses incurred by non-recurring factors fromoperating income. It includes the share of profit from investments accounted for using
the equity method.
The financial results by business segment for the half-year are as follows:
Essential Chemicals & Plastics
Selling prices for synthetic resins, methyl methacrylate and various industrial
chemicals improved due to an increase in raw material prices. The weak yen also
benefited sales revenues of subsidiaries outside of Japan when converted into yen.
On the other hand, shipments declined, primarily because of weak demand for
products in automotive applications. As a result, sales revenue increased by ¥67.8
billion from the same period in the previous year, to ¥467.3 billion. Core operating
income was ¥23.3 billion, a decline of ¥18.8 billion from the same period in theprevious year, because of a deterioration in margins caused by higher raw material
prices and the impact of lower shipment volumes, despite an improvement in theperformance of Rabigh Refining and Petrochemical Company, our equity method
investee.

Energy & Functional Materials
Selling prices for aluminum and cathode materials increased with the improvement inmarket conditions. Shipments of separators for lithium-ion secondary batteries stayedfirm. The weak yen also had a positive effect. As a result, sales revenue increased by¥25.0 billion, to ¥173.5 billion from the same period in the previous year. Core
operating income was ¥13.4 billion, higher by ¥0.9 billion from the same period in theprevious year, led by higher income from exports due to the weak yen, despite adecline in margins resulting from the rise in raw material prices.
IT-related Chemicals
Sales revenue benefited from the weak yen’s effect on the sales of subsidiaries
outside of Japan in yen terms. In addition, demand growth for processing materials
for semiconductors, such as high purity chemicals and photoresists, brought about
an increase of shipments. On the other hand, shipments of display-related materials
declined because stay-at-home demand had run its course, and consumer sentiment
deteriorated in the face of inflation concerns. As a result, sales revenue decreased by¥5.5 billion from the same period in the previous year, to ¥222.2 billion, and core
operating income decreased by ¥3.1 billion from the same period in the previous year,to ¥26.4 billion.
Health & Crop Sciences
Sales of crop protection products in South America increased significantly, andshipments in such markets as India performed well. Moreover, market prices ofmethionine (feed additives) increased from the same period in the previous year. The
weak yen also had a positive effect on sales from subsidiaries outside of Japan whenconverted into yen. As a result, sales revenue increased by ¥84.5 billion from the same
period in the previous year, to ¥293.9 billion. Core operating income was ¥36.3 billion,
an increase of ¥17.9 billion from the same period in the previous year, driven by theincrease in sales and higher income from exports as a result of the weak yen, despite
higher prices for raw materials.

Pharmaceuticals
In North America, revenue grew as sales of Latuda® (atypical antipsychotic agent),
Orgovyx® (therapeutic agent for advanced prostate cancer) and Gemtesa®
(therapeutic agent for overactive bladder) increased, on top of the favorable effects ofthe forex situation, even though results in the same period of the previous year wereboosted by the receipt of a lump-sum upfront payment for a development andcommercial collaboration agreement. On the other hand, in Japan, sales revenues
were adversely affected by the National Health Insurance (NHI) drug price revisions.
As a result, sales revenue increased by ¥24.9 billion from the same period in theprevious year, to ¥334.4 billion. Core operating income was ¥25.2 billion, a decreaseof ¥24.8 billion from the same period in the previous year, as increases in selling,
general and administrative expenses and R&D expenses, primarily due to the effectsof the forex situation, outweighed revenue growth.
OthersIn addition to the above five segments, the Sumitomo Chemical Group supplies
electric power and steam, designs chemical plants and supervises the constructionof those facilities, provides transportation and warehousing, and conducts physicalproperty analysis and environmental analysis. Sales revenue of these businesses
increased by ¥6.6 billion from the same period in the previous year, to ¥37.2 billion,
and core operating income decreased by ¥4.2 billion from the same period in theprevious year, to ¥2.6 billion.



Based on recent performance trends, Sumitomo Chemical has made revisions to its
consolidated financial forecast for the full-year ending March 31, 2023, previously
announced on May 13, 2022, as below.
(Millions of yen)SalesrevenueCore
operatingincomeOperatingincomeNet income
attributable toowners of theparentEarnings
per share(yen)Previous forecast (A)3,120,000

200,000

180,000

125,000

76.45

Revised forecast (B)3,180,000

190,000

115,000

105,000

64.22

Variance in amount (B-A)

60,000-10,000-65,000-20,000

Variance in percentage (%)

1.9

-5.0

-36.1

-16.0

2,765,321

234,779

215,003

162,130

Previous year results(Fiscal 2021)

99.16

Sales revenue is expected to exceed the previous forecast because of higher market
prices of some products. However, core operating income is expected to be lower thanthe previous forecast due to a deterioration of margins in the Essential Chemicals &Plastics Sector and lower shipments in the IT-related Chemicals Sector, while the solid
sales of crop protection chemicals in South America are expected to increase theprofit of the Health & Crop Sciences Sector.
Operating income and net income attributable to owners of the parent are also
expected to fall below the previous forecast because of lower core operating income
and the impairment loss recorded in the first-half of this fiscal year.
The revised forecast is based on the assumptions of a foreign exchange rate of¥140.0/US$ and a naphtha price of ¥75,000/kl for the second-half of the current fiscal
year.
Cautionary Statement
This release of financial results is exempt from audit procedures.
Statements made in this release with respect to the Company’s current plans, estimates, strategies
and beliefs that are not historical facts are forward-looking statements about the future performanceof Sumitomo Chemical. These statements are based on management’s assumptions and beliefs inlight 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 theforward-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 these highly competitive markets; and movements of currency exchange rates.

Consolidated Statement of Financial Position

In millions of yen

As of September 30, 2022

As of March 31, 2022

Assets䚷䚷 Current assets:
䚷䚷䚷 Cash and cash equivalents䢠䚷䚷䚷 Trade and other receivables

485,996
738,463䢠

365,429
720,422

䚷䚷䚷 Other financial assets

40,47023,991

䚷䚷䚷 Inventories

805,231651,358

䚷䚷䚷 Other current assets

70,31351,442

䚷䚷 Total current assets

2,140,473

1,812,642

䚷䚷Non-current assets:䚷䚷 䚷Property, plant and equipment

855,785

823,022䚷䚷 䚷Goodwill

282,853244,517䚷 䚷䚷Intangible assets

468,542

471,109䚷 䚷䚷Investments accounted for using the equity method

462,581289,968
474,899䚷 䚷䚷Other financial assets

282,220䚷 䚷䚷Retirement benefit assets

89,98789,538䚷 䚷䚷Deferred tax assets

47,354

49,121䚷 䚷䚷Other non-current assets
䚷䚷Total non-current assets
Total Assets

䢠52,22953,3352,541,551

2,495,509

4,682,024

䢠

4,308,151

Liabilities and Equity
Liabilities
䚷䚷Current liabilities:
䚷䚷 䚷Bonds and borrowings

䢠䚷 䚷䚷Trade and other payables

335,865
635,336䢠

261,280
551,583䚷 䚷䚷Other financial liabilities

66,59084,137䚷 䚷䚷Income taxes payable

41,91424,515

䚷 䚷䚷Provisions

161,988

129,709

䚷䚷䚷Other current liabilities

122,959

122,267

1,364,652

1,173,491

䚷䚷䚷Bonds and borrowings

1,056,986

1,089,190

䚷䚷䚷Other financial liabilities

102,202

101,718

䚷 䚷䚷Retirement benefit liabilities

33,36333,091䚷䚷䚷Provisions

40,93136,502

䚷䚷䚷Deferred tax liabilities

116,732

101,299

䚷䚷䚷Other non-current liabilities

78,49770,883

䚷䚷Total non-current liabilities

1,428,711

1,432,683

䚷Total liabilities

2,793,363

2,606,174

89,81089,699䚷䚷Total current liabilities
䚷䚷Non-current liabilities:

䚷Equity䚷 䚷Share capital䚷䚷Capital surplus

27,72327,089䚷 䚷Retained earnings

1,038,201

974,382

䚷䚷Treasury shares
䚷䚷Other components of equity
䚷 䚷Equity attributable to owners of the parent(8,346)(8,343)232,094

135,274

1,379,482

1,218,101䚷 䚷Non-controlling interests

509,179

483,876

䚷Total equity
Total Liabilities and Equity

1,888,661

1,701,977

䢠

4,682,024

䢠

4,308,151

Consolidated Statement of Profit or Loss

Six Months ended September 30,
In millions of yen
Sales revenue2022㻃ࠉ 1,528,563

2021
㻃 1,325,210

Cost of sales(1,051,430)(873,827)

Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expenses
Share of profit of investments accounted forusing the equity method
Operating income
Finance income

477,133

451,383(447,258)(333,728)

12,881

5,278(12,069)(5,900)29,88027,23960,567
91,208144,272
11,172Finance expenses(24,997)(8,663)

Income before taxes

126,778

146,781(53,716)(38,971)

73,062

107,81081,063

88,884

Income tax expenses
Net income
Net income attributable to:
Owners of the parent
Non-controlling interests
Net income(8,001)

18,926

㻃 ࠉ 73,062

㻃 ࠉ 107,810

Six Months ended September 30,
In yenEarnings per share:

2022

2021

Basic earnings per share

49.58

54.36

Diluted earnings per share

49.57

㸫

䚷

Consolidated Statement of Comprehensive Income

In millions of yen
Net income

Six Months ended September 30,
2022
2021
㻃 ࠉ 73,062
㻃 ࠉ 107,810

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

(13,651)(35,696)

(83)

(74)

(848)

287

(14,582)(35,483)

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

9,807(2,467)

Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using the equity method

119,0296,328

28,044

6,129

Total items that may be subsequently reclassified to profit or loss

156,880

9,990

142,298(25,493)

215,360

82,317

Owners of the parent

183,577

76,757

Non-controlling interests

31,7835,560

㻃ࠉ 215,360

㻃 ࠉ 82,317

Other comprehensive income, net of taxes
Total comprehensive income
Total comprehensive income attributable to䠖Total comprehensive income

Consolidated Statement of Cash FlowsSix Months ended September 30,
In millions of yen
Cash Flows from Operating Activities:
Income before taxes

2022

2021

㻃 126,778

㻃 ࠉ 146,781

Depreciation and amortization

85,82477,700

Impairment loss

54,472

1,591

Share of (profit) loss of investments accounted for using the equity method(29,880)(27,239)

Interest and dividend income(8,049)(4,587)

Interest expenses

11,9307,704

Business structure improvement expenses

8,438

3,002

Changes in fair value of contingent consideration(1,287)

143(Gain) loss on sale of property, plant and equipment(3,511)(154)(Increase) decrease in trade receivables

74,6902,133(107,651)(71,764)

Increase (decrease) in trade payables

7,427

19,150

Increase (decrease) in unearned revenue(3,523)

3,140

Increase (decrease) in provisions

9,299(4,011)Others, net(107,324)(45,601)

Subtotal

117,633

107,988(Increase) decrease in inventories

Interest and dividends received

12,253

14,817

Interest paid

(11,623)(7,336)

Income taxes paid

(33,084)(36,525)

Business structure improvement expenses paid
Net cash provided by operating activities(1,663)83,516(1,746)
77,198Cash Flows from Investing Activities:
Net (increase) decrease in securities
Purchase of property, plant and equipment, and intangible assets(13,504)(12,973)(68,914)(47,774)

Proceeds from sale of property, plant and equipment, and intangible assets

4,174

890

Purchase of other financial assets(3,735)(12,455)

Proceeds from sales and redemption of other financial assets

41,625

9,068

Proceeds from collection of loans receivable

64,331

844

Others, net(8,421)(2,750)Net cash used in investing activities

15,556(65,150)

Cash Flows from Financing Activities:
Net increase (decrease) in short-term borrowings
Net decrease of commercial paper

20,174

27,46188,00027,000

Proceeds from long-term borrowings

15,19433,659

Repayments of long-term borrowings(106,323)(70,055)

㸫

(14,287)

Redemption of bonds
Repayments of finance lease obligations(8,784)(7,848)Cash dividends paid

(22,862)(14,715)

Cash dividends paid to non-controlling interests(10,085)(5,585)

㸫(3,916)28(24,658)
46,153
120,567
365,429
㻃 485,996

1,138(27,148)987(14,113)360,918
㻃 346,805

Payments for acquisition of subsidiaries' interests from non-controlling interests
Others, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the period

Sales Revenue and Core Operating Income by Segment

Six Months ended September 30, 2022

In millions of yen

Essential
Chemicals &Plastics

Energy &Functional
Materials

IT-related
Chemicals

Health &Crop
Sciences

Pharmaceuticals

Adjustments

Consolidated

㻃 467,299

㻃 173,505

㻃 222,194

㻃 293,902

㻃 334,445 㻃 1,491,345

㻃㸫㻃 1,528,563

3,061

10,149

234

2,008

7

15,45942,098(57,557)㸫

470,360

183,654

222,428

295,910

334,452

1,506,804

79,316(57,557)

1,528,563

23,270㻃 13,448

㻃 26,432

㻃 36,310

㻃 25,191

㻃 124,651

㻃 2,567㻃 (11,598)

㻃 115,620

Energy &Functional
Materials

IT-related
Chemicals

Health &Crop
Sciences

Pharmaceuticals

OthersAdjustments

Consolidated

㻃 309,580 㻃 1,294,625

㻃㸫

㻃 1,325,210

Total

OthersSales revenue
From external customers
Inter-segment
Total

Core operating income㻃㻃 37,218

Six Months ended September 30, 2021

In millions of yen

Essential
Chemicals &Plastics

Total

Sales revenue
From external customers
Inter-segment
Total

Core operating income㻃 399,485 㻃

148,477

㻃 227,656

㻃 209,427

2,639

6,017

226

3,329

9

12,22029,051(41,271)㸫

402,124

154,494

227,882

212,756

309,589

1,306,845

59,636(41,271)

1,325,210

12,573

㻃 29,524

㻃 18,456

49,963

㻃 152,559

㻃 6,781㻃 (10,443)

㻃 148,897

㻃 42,043

㻃㻃㻃 30,585

Adjustments to income before taxes from core operating income were as follows:
Six Months ended September 30,
In millions of yen

2022

2021

㻃 ࠉ 115,620

㻃 ࠉ 148,897

Impairment loss

(54,472)(1,591)

Restructuring charges(8,438)(3,002)Gain on sale of property, plant and equipment

3,511

154

Changes in fair value of contingent consideration

1,287

(143)

Others, net

3,059

(43)

Operating income

60,567

144,272

Core operating income

Finance income

91,208

11,172Finance expenses(24,997)(8,663)

Income before taxes

㻃 126,778

㻃 ࠉ 146,781