For Immediate Release

October 30, 2019

Sumitomo Chemical Reports
Consolidated Financial Results
For the Half-Year Ended September 30, 2019The Sumitomo Chemical Group’s consolidated sales revenue for the half-year ended
September 30, 2019, declined by ¥14.6 billion compared with the same period of theprevious fiscal year, to ¥1,107.6 billion. The Group posted core operating income of¥84.5 billion, lower than the same period of the previous year, and operating incomeof ¥102.5 billion, an increase from the previous fiscal year. Net income attributable toowners of the parent was ¥29.7 billion, falling short of the same period of the previous
fiscal year.
Sumitomo Chemical decided to pay an interim dividend of ¥11 per share.
nCore 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 halfyear were as follows.
Petrochemicals & Plastics
Market prices for petrochemical products and synthetic resins declined because
feedstock prices fell below those of the same period of the previous fiscal year. Marketconditions for raw materials for synthetic fibers and methyl methacrylate (MMA) also
remained at a low level. As a result, the segment’s sales revenue declined by ¥28.2billion compared with the same period of the previous fiscal year, to ¥352.2 billion.
Core operating income declined by ¥18.0 billion, to ¥17.4billion, because of suchfactors as a decline in the margins of products such as petrochemical products andMMA.

Energy & Functional Materials
Shipments of resorcinol, a raw material for adhesives, and separators for lithium-ion
batteries remained strong. Meanwhile, market prices for aluminum and for the metal
raw materials for cathode materials remained low, resulting in lower selling prices. As
a result, the segment’s sales revenue declined by ¥9.8 billion compared with the same
period of the previous fiscal year, to ¥131.0 billion, and core operating income declinedby ¥0.3 billion, to ¥12.5 billion.
IT-related Chemicals
Although selling prices of polarizing film declined, shipments increased because ofgrowth in demand for TV and mobile applications. Shipments of touchscreen panels
also increased due to growth in demand. As a result, the segment’s sales revenue
increased by ¥11.4 billion compared with the same period of the previous fiscal year,to ¥206.9 billion, and core operating income increased by ¥0.5 billion, to ¥15.3 billion.
Health & Crop Sciences
While market prices for the feed additive methionine declined, shipments increased
because the production capacity expanded in the previous fiscal year. On the otherhand, shipments of crop protection chemicals decreased due to the impact of extreme
weather in North America. As a result, the segment’s sales revenue increased by ¥8.2
billion compared with the same period of the previous fiscal year, to ¥146.3 billion.
Core operating income deteriorated by ¥10.7 billion, to a loss of ¥8.2 billion, due tofactors including a decline in margins on methionine and reduced shipments of crop
protection chemicals.
Pharmaceuticals
In North America, sales of Latuda® (atypical antipsychotic agent) increased, and also
increased in China. On the other hand, shipments of patent-expired originator drugs
decreased in Japan. As a result, the segment’s sales revenue increased by ¥4.7 billion
compared with the same period of the previous fiscal year, to ¥247.4 billion. Becauseof the increase in sales revenue and lower selling, general and administrative
expenses, core operating income increased by ¥7.6 billion, to ¥46.9 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 analysis. The segment’s
sales revenue declined by ¥0.9 billion compared with the same period of the previous
fiscal year, to ¥23.7 billion, and core operating income increased by ¥2.0 billion, to ¥5.2billion.

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(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 byBusiness 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(6 Months ended
September 30, 2019
Yen (Millions)
USD (Thousands)*
1,107,558
10,262,769
84,527783,238
12,211 )(113,149 )6 Months ended
September 30, 2018
Yen (Millions)
1,122,118
102,106(23,888 )102,545
96,64150,081

950,195
895,487
464,057

91,932
102,304
81,502

20,372

188,769

20,01629,709275,287

61,486

Yen
18,171

USD*
168

Yen
37,605

Yen (Millions)(3,855)

USD (Thousands)*(35,721)

Yen (Millions)
114,252

As of September 30, 2019
Yen (Millions)
USD (Thousands)*
3,206,058
29,707,728
1,321,96912,249,527

As of March 31, 2019
Yen (Millions)
3,171,618
1,351,886

6 Months ended
September 30, 2019
Yen (Millions)
USD (Thousands)*
69,930647,980(72,791)(674,490)
80,297744,042
271,320
2,514,085

6 Months ended
September 30, 2018
Yen (Millions)55,604(83,070)
22,048
233,764

6 Months ended
September 30, 2019
Yen (Millions)
USD (Thousands)*

6 Months ended
September 30, 2018
Yen (Millions)352,192
131,032
206,860
146,311247,446
23,717
1,107,558

3,263,454
1,214,159
1,916,790
1,355,736
2,292,865
219,765
10,262,769

380,418
140,856
195,414138,139
242,700
24,591
1,122,118

17,402
12,54815,296(8,185)46,874
5,209(4,617)84,527161,249
116,271
141,735(75,843)434,340
48,267(42,781)783,238

35,383
12,84914,8272,470
39,2753,190(5,888)102,106(Note)*:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥107.92 = $1 prevailing on September 30, 2019.