For Immediate Release

February 1, 2023

Sumitomo Chemical Reports
Consolidated Financial Results
For the Nine Months Ended December 31, 2022
For the nine months ended December 31, 2022, the Sumitomo Chemical Group
reported consolidated sales revenue of ¥2,257.0 billion, an increase of ¥219.2 billion
year on year, core operating income* of ¥142.2 billion, operating income of ¥71.4
billion, and net income attributable to owners of the parent of ¥60.3 billion, all lower
than the results from the same period in the previous year.
*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 nine-month period 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 ¥50.6
billion from the same period in the previous year, to ¥675.5 billion. Core operating
income suffered a loss of ¥2.0 billion, a decline in income of ¥54.0 billion from thesame period in the previous year, because of a deterioration in margins caused byhigher raw material prices and the impact of lower shipment volumes.

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¥30.4 billion, to ¥257.1 billion from the same period in the previous year. Core
operating income was ¥16.9 billion, lower by ¥1.8 billion from the same period in theprevious year, led by a decline in margins resulting from the rise in raw material prices,
despite higher income from exports due to the weak yen.
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¥13.5 billion from the same period in the previous year, to ¥338.6 billion, and core
operating income decreased by ¥2.2 billion from the same period in the previous year,to ¥43.7 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 ¥108.2 billion from thesame period in the previous year, to ¥439.2 billion. Core operating income was ¥47.2
billion, an increase of ¥19.4 billion from the same period in the previous year, driven
by the increase 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 ¥26.2 billion from the same period in theprevious year, to ¥482.5 billion. Core operating income was ¥43.1 billion, a decreaseof ¥19.4 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 ¥17.2 billion from the same period in the previous year, to ¥64.2 billion,
and core operating income decreased by ¥4.4 billion from the same period in theprevious year, to ¥7.7 billion.



In a news release published on February 1, 2023, Sumitomo Chemical Co., Ltd.
announced it has made revisions to its consolidated financial forecast and dividends
for the full year ending March 31, 2023, which was previously announced on November
1, 2022. The revised forecast is based on the assumptions of a foreign exchange rateof ¥130.0/US$ and a naphtha price of ¥65,600/kl for the fourth quarter of the current
fiscal year. For more information, please see the news release titled “Sumitomo
Chemical Announces Revisions to Its Financial Forecast and Projected Dividend for
the Full Year Ending March 31, 2023".
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 December 31, 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

499,594䢠

691,325

365,429
720,422

䚷䚷䚷 Other financial assets

34,49523,991

䚷䚷䚷 Inventories

765,198

651,358

䚷䚷䚷 Other current assets
䚷䚷䚷䚷Subtotal

70,86751,442

2,061,479

1,812,642

䚷䚷䚷Assets held for sale

33,740㸫䚷䚷 Total current assets

2,095,219

1,812,642

䚷䚷 䚷Property, plant and equipment

830,204

823,022䚷䚷 䚷Goodwill

260,526

244,517䚷 䚷䚷Intangible assets

426,947

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

442,977

289,968䚷 䚷䚷Other financial assets

314,330

474,899䚷 䚷䚷Retirement benefit assets

91,01489,538䚷 䚷䚷Deferred tax assets

38,70949,121䚷 䚷䚷Other non-current assets

50,71053,335

䚷䚷Non-current assets:

䚷䚷Total non-current assets
Total Assets

2,455,417
䢠

4,550,636

䢠383,668
549,874

2,495,509
䢠

4,308,151

Liabilities and Equity
Liabilities
䚷䚷Current liabilities:
䚷䚷 䚷Bonds and borrowings
䚷 䚷䚷Trade and other payables䢠

261,280
551,583䚷 䚷䚷Other financial liabilities

83,446

84,137䚷 䚷䚷Income taxes payable

21,911

24,515

䚷 䚷䚷Provisions

161,343

129,709

䚷䚷䚷Other current liabilities
䚷䚷䚷䚷Subtotal
䚷䚷䚷Liabilities directly associated with assets held for sale

106,611

122,267

1,306,853

1,173,491

10,372

㸫

1,317,225

1,173,491

䚷䚷䚷Bonds and borrowings

1,066,656

1,089,190

䚷䚷䚷Other financial liabilities

92,675

101,718

䚷 䚷䚷Retirement benefit liabilities

32,65133,091

䚷䚷Total current liabilities
䚷䚷Non-current liabilities:

䚷䚷䚷Provisions

46,65236,502

䚷䚷䚷Deferred tax liabilities

120,234

101,299

71,40370,883

䚷䚷Total non-current liabilities

䚷䚷䚷Other non-current liabilities

1,430,271

1,432,683

䚷Total liabilities

2,747,496

2,606,174

89,81089,699䚷Equity䚷 䚷Share capital䚷䚷Capital surplus

27,28827,089䚷 䚷Retained earnings

1,000,663

974,382

䚷䚷Treasury shares
䚷䚷Other components of equity
Other comprehensive income associated with assets held for sale䚷 䚷Equity attributable to owners of the parent䚷 䚷Non-controlling interests
䚷Total equity
Total Liabilities and Equity

䢠(8,348)(8,343)200,648

135,274833

㸫1,310,894

1,218,101

492,246

483,876

1,803,140

1,701,977

4,550,636

䢠

4,308,151

Consolidated Statement of Profit or Loss

Nine Months ended December 31,
In millions of yen

2022

Sales revenue㻃ࠉ 2,257,045

2021
㻃 2,037,877

Cost of sales(1,568,698)(1,365,551)

Gross profit

688,347

672,326(643,083)(506,879)

41,138

8,034(27,731)(8,870)12,77033,312

71,44154,933

197,923
26,528Finance expenses(31,602)(14,912)

Income before taxes

94,772

209,539(53,074)(53,874)

41,698

155,665

60,310133,663

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

Income tax expenses
Net income
Net income attributable to:
Owners of the parent
Non-controlling interests
Net income(18,612)22,002

㻃 ࠉ 41,698

㻃 ࠉ 155,665

Nine Months ended December 31,
In yenEarnings per share:

2022

2021

Basic earnings per share

36.89

81.75

Diluted earnings per share

36.88

㸫

䚷

Consolidated Statement of Comprehensive Income

In millions of yen
Net income

Nine Months ended December 31,
2022
2021
㻃 ࠉ 41,698
㻃 ࠉ 155,665

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

17,295(32,956)

(160)

(75)

(478)

(1,011)

16,657(34,042)

Cash flow hedge

8,567(1,446)

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

52,67331,81230,641

8,631

Total items that may be subsequently reclassified to profit or loss

91,881

38,997

108,538

4,955

150,236

160,620

Owners of the parent

135,050

142,610Non-controlling interests

15,18618,010㻃ࠉ 150,236

㻃 ࠉ 160,620

Total items that will not be reclassified to profit or loss
Items that may be subsequently reclassified to profit or loss

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

Consolidated Statement of Cash Flows
Nine Months ended December 31,
In millions of yen

2022

Cash flows from operating activities:
Income before taxes㻃 94,772

㻃 ࠉ 209,539

Depreciation and amortization

127,119

117,022

Impairment loss

56,3903,449

Share of (profit) loss of investments accounted for using the equity method(12,770)(33,312)Interest and dividend income(13,530)(7,746)

Interest expenses

17,136

12,300Restructuring costs

21,953

4,318

Changes in fair value of contingent consideration(1,229)245(Gain) loss on sale of property, plant and equipment(3,547)(622)(Increase) decrease in trade receivables

2021

66,972(8,749)(105,362)(107,335)

Increase (decrease) in trade payables(7,641)

38,131

Increase (decrease) in unearned revenue(7,167)

6,715

Increase (decrease) in provisions

21,371

6,364

Others, net(98,185)(86,440)

Subtotal

156,282

153,879(Increase) decrease in inventories

Interest and dividends received

19,78019,337

Interest paid

(16,972)(12,291)

Income taxes paid

(56,420)(59,594)

Restructuring costs paid

(2,340)100,330(2,312)99,019Net cash provided by operating activities

Cash flows from investing activities:
Net (increase) decrease in securities(10,942)(8,744)Purchase of property, plant and equipment, and intangible assets(106,822)(78,213)

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

16,632

1,424

Purchase of other financial assets(6,476)(13,936)

Proceeds from sales and redemption of other financial assets

57,657

15,486

Proceeds from collection of loans receivable

62,824433

Others, net(11,196)(1,525)

1,677(85,075)

Net cash used in investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term borrowings

54,80044,973Net decrease of commercial paper

90,00049,000

Proceeds from long-term borrowings

46,75937,422

Repayments of long-term borrowings(109,175)(73,568)

Proceeds from issuance of bonds

㸫

34,808

Redemption of bonds

㸫(34,182)

Repayments of finance lease obligations(14,776)(11,759)

Cash dividends paid

(42,502)(31,083)

Cash dividends paid to non-controlling interests(13,034)(10,339)㸫

(3,958)911
12,983
21,633
136,623
365,429

3,152
4,466
11,111
29,521360,918(2,458)㸫㻃 499,594

㻃 390,439

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
Net increase (decrease) in cash and cash equivalents
resulting from transter to assets held for sale
Cash and cash equivalents at the end of the period

Sales Revenue and Core Operating Income by Segment

Nine Months ended December 31, 2022

In millions of yen

Essential
Chemicals &Plastics

Energy &Functional
Materials

IT-related
Chemicals

Health &Crop
Sciences

Pharmaceuticals

Adjustments

Consolidated

㻃 675,506

㻃 257,119

㻃 338,577

㻃 439,187

㻃 482,492 㻃 2,192,881

㻃㸫

㻃 2,257,045

4,639

13,565

350

3,103

14

21,671

63,861(85,532)㸫

680,145

270,684

338,927442,290

482,506

2,214,552

128,025(85,532)

2,257,045㻃 (1,993)

㻃 16,868㻃 43,727

㻃 47,177

㻃 43,073

㻃 148,852

㻃 7,698㻃 (14,385)

㻃 142,165

Energy &Functional
Materials

IT-related
Chemicals

Health &Crop
Sciences

Pharmaceuticals

OthersAdjustments

Consolidated

㻃 456,266 㻃 1,990,934

Total

OthersSales revenue
From external customers
Inter-segment
Total

Core operating income(loss)

㻃 64,164

Nine Months ended December 31, 2021

In millions of yen

Essential
Chemicals &Plastics

Total

Sales revenue
From external customers
Inter-segment
Total

Core operating income㻃 624,950 㻃

226,672

㻃 352,085

㻃 330,961

4,123

9,381

335

3,852

9

17,700629,073

236,053

352,420334,813456,275

18,629㻃 45,968

㻃 27,808

㻃 51,997

㻃㻃㻃 46,943

㸫㻃 2,037,877

46,030(63,730)

㸫

2,008,634

92,973(63,730)

2,037,877

62,459 㻃 206,861

㻃 12,147

㻃 (13,339)

㻃205,669㻃

Adjustments to income before taxes from core operating income were as follows:
Nine Months ended December 31,
In millions of yen

2022

2021

㻃ࠉ 142,165

㻃 ࠉ 205,669

Impairment loss

(56,390)(3,449)Restructuring costs

Core operating income(21,953)(4,318)Gain on sale of property, plant and equipment

3,547

622

Changes in fair value of contingent consideration

1,229

(245)

Others, net

2,843

(356)

Operating income

71,441

197,923

Finance income

54,933

26,528Finance expenses(31,602)(14,912)

Income before taxes㻃 94,772

㻃 ࠉ 209,539