For Immediate Release

February 1, 2013

Sumitomo Chemical Announces Revisions to its Financial Forecast andProjected Dividend for Fiscal 2012 and an Extraordinary Loss and Reversal ofDeferred Tax Assets
Based on recent performance trends, Sumitomo Chemical Co., Ltd. (“the Company”) has revised
its consolidated financial forecast for the full-year ending March 31, 2013, previously announced
on October 31, 2012, as detailed below. The Company also announced that it has recorded an
extraordinary loss and a reversal of deferred tax assets for the nine months ended December 31,
2012. As a result, the Company has revised its projected year-end dividend as detailed below.
1. Revisions to Consolidated Financial Forecast for the Full-Year Ending March 31, 2013
(Millions of yen)
Sales

OperatingOrdinary

IncomeIncomeNet Income

Earnings per
Share (yen)Previous Forecast (A)2,020,000

65,00062,00010,000

6.12

Revised Forecast (B)1,970,000

50,00045,000-50,000-30.59-50,000-15,000-17,000-60,000

-2.5

-23.1

-27.4

－

1,947,884

60,68850,714

5,587

Variance in Amount (B-A)
Variance in Percentage (%)
Results for Full-Year ended
March 31, 2012

3.42

(Reasons for the Revisions)
Sales and operating income are expected to be lower than previously forecast due to margin
erosion in the Basic Chemicals segment and weak demand for products in the Petrochemicals &Plastics segment in the face of lingering economic stagnation in Europe and the continued
economic slowdown in emerging market countries. Net income is also expected to fall far below
the previous forecast. The Company is expected to post a net loss as the impact of restructuring
measures, stated in today’s release titled “Restructuring of Petrochemical Business at the ChibaWorks,” was factored into the Company’s financial forecast, based on certain assumptions, alongwith an extraordinary loss and a reversal of deferred tax assets as detailed below.

2. Extraordinary Loss
A subsidiary has decided to discontinue operation, after consideration of the recoverability of a
portion of operating assets, the Company recorded an extraordinary loss of ¥2.6 billion as
impairment losses for the third quarter of the current fiscal year.
On an unconsolidated basis, the Company recorded a loss of ¥9.6 billion on a write-down of its
investment in that subsidiary. This write-down did not affect the Company's results on aconsolidated basis.

3. Reversal of Deferred Tax Assets
The Company recorded an additional corporate tax adjustment of ¥32.4 billion on a consolidated
basis and ¥30.6 billion on an unconsolidated basis as a reversal of deferred tax assets based on
its financial forecast for the current fiscal year and subsequent years.

4. Revision to Projected Dividend for Fiscal 2012

Previous Estimates
Revised Estimates
Dividend PaidDividend for Fiscal 2011

Dividend at End of First
Half of Fiscal 2012
Yen－－6.00
6.00

Dividend per ShareDividend at End of Fiscal
2012
Yen
not decided
0.00
－
3.00

Total
Yen
not decided
6.00
－
9.00

(Reasons for the Revision)
The Company places a high priority on shareholder return and makes it a policy to maintain astable dividend while comprehensively taking into consideration financial results for each fiscal
year, its dividend payout ratio and the amount of retained earnings necessary for businessdevelopment.
The Company regrets that it will not pay a year-end dividend as it is expected to post a large net
loss for the full year. As a result, the Company’s annual dividend will be ¥6 per share for thecurrent fiscal year.

While revising downward its financial forecast and projected dividend, the Company has launched
the following cost-cutting measures.
1) Reductions in executive compensation and managers’ salaries
The Company has already cut compensation for Directors, Corporate Auditors, and Executive
Officers by 5 to 15 percent and managers’ salaries by 2 to 5 percent.
2) Revision of retirement pension plan
From April 1, 2013, the Company expects to make a downward revision to the pension benefitrate used to calculate retiree benefits in its defined benefit pension plan, which is the funding
source for up to 80 percent of retirees’ retirement allowances. In addition, for the remaining 20
percent of retirees’ retirement allowances, the Company will introduce a defined contribution
pension plan on April 1, 2013. With the revision of the current plan and the introduction of the newplan, the Company aims to stabilize and improve the management of its pension assets.
3) Freeze on hiring of experienced personnel
The Company initially planned to hire a certain number of experienced personnel by the end ofMarch this year, but the Company has suspended the hiring of experienced personnel since
September 2012, except for employees required for the Rabigh Project. The freeze on the hiringof experienced personnel will continue from April 2013, excluding necessary plant employees.
4) Drastic reduction of head-office fixed costs
With the aim of reducing indirect costs by ¥15 billion by fiscal 2015, the Company has been
fundamentally streamlining head-office fixed costs by improving the efficiency of research
operations, administrative functions, and other overall business operations conducted by the headoffice. The Company is working to quickly achieve results from its streamlining efforts byaccelerating initiatives to generate greater efficiencies and thoroughly reducing expenses.
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 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.