For Immediate Release                         

May 13, 2021

Sumitomo Chemical Announces
Consolidated Financial Results for FY2020
During the 2020 fiscal year, the world economy received a serious shock from the global
spread of COVID-19 infections, resulting in a decline in real GDP growth to around minus 3%.
After recording the highest negative real GDP growth in the postwar period in April throughJune of 2020, the Japanese economy showed signs of a recovery in some sectors in the latter
half of the year, but then it was hit with a sudden surge in COVID-19 infections from the endof the year, resulting, overall, in a severe operating environment.
Against this backdrop, the Sumitomo Chemical Group has been implementing its Corporate
Business Plan (for fiscal 2019 - fiscal 2021), centered on the basic policies of accelerating thedevelopment of next-generation businesses, improving productivity through digital
innovation, raising the sophistication of the company’s business portfolio, and building amore robust financial structure. The Group has come together in working to create asustainable society and to deliver sustainable growth through dramatic growth inproductivity and acceleration of innovation.
The Group’s sales revenue on a consolidated basis for its 2020 fiscal year, ended March 31,
2021, increased by ¥61.2 billion from the previous year, to ¥2,287.0 billion. Its core operating
income* was ¥147.6 billion, higher than the previous year, but operating income was ¥137.1
billion, remaining almost flat compared with the previous year. Net income attributable toowners of the parent was ¥46.0 billion, higher than 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 from operating income. It
includes the share of profit or loss from investments accounted for using the equity method.
The financial results by business segment for the fiscal 2020 are as follows:Petrochemicals & Plastics
Amid the economic downturn due to the COVID-19 pandemic, shipments of synthetic resinsdeclined, particularly those used in automotive applications. Impacted by a drop in market
prices for raw materials, the prices of petrochemical products hovered a low level. As a result,sales revenue declined by ¥67.6 billion from the previous year, to ¥589.3 billion. Core
operating income suffered a loss of ¥12.0 billion, declined by ¥26.5 billion from the previous
year, affected by lower shipment volumes and periodic shutdown maintenance at RabighRefining and Petrochemical Company, our equity method investee.
Energy & Functional Materials
Impacted by the COVID-19 pandemic, shipments of materials for automotive applications(including separators for lithium-ion secondary batteries and synthetic rubber) decreased.
As a result, sales revenue dropped by ¥9.8 billion from the previous year, to ¥245.2 billion,on the other hand, core operating income remained almost flat with the previous year at ¥20.3
billion due to improvements in profit margins because of a drop in market prices for raw
materials.
IT-related Chemicals
Shipments of processing materials for semiconductors (including high purity chemicals andphotoresists) increased, driven by growing demand for these items. Shipments of materials
for display applications increased in the face of stay-at-home demand and demand for remote
work products. As a result, sales revenue increased by ¥26.9 billion from the previous year,to ¥431.8 billion, and core operating income increased by ¥14.6 billion from the previous year,to ¥39.7 billion.
Health & Crop Sciences
Sales of crop protection products increased year-over-year after the acquisition of four SouthAmerican subsidiaries of Nufarm in April 2020. Shipments in India also performed well.
Market prices for methionine (feed additives) increased from the previous year. As a result,sales revenue increased by ¥79.3 billion from the previous year, to ¥423.0 billion. Backed by
the improved margins of methionine and increased global shipments of crop protection
products, core operating income increased by ¥29.5 billion from the previous year, to ¥31.5
billion.
Pharmaceuticals
In Japan, sales of Equa® and EquMet® (for type II diabetes mellitus), launched in the middleof previous fiscal year, increased since it was sold throughout this fiscal year. In North
America, sales of Latuda® (atypical antipsychotic agent) increased, and revenues wererecorded relating to relugolix. As a result, sales revenue increased by ¥30.6 billion from theprevious year, to ¥546.5 billion. Despite the higher sales revenue, core operating income
decreased by ¥3.6 billion from the previous year, to ¥71.7 billion, due to higher sales
expenses, general and administrative expenses (SG&A) and research and development
expenses resulting from the year-round coverage of expenses at Sumitovant Biopharma andits subsidiaries (which were acquired as part of the strategic alliance with Roivant Sciences
Ltd., in the previous fiscal year).
OthersIn addition to the above five segments, the Sumitomo Chemical Group supplies electric
power and steam, designs chemical plants and supervises the construction of those facilities,
provides transportation and warehousing, and conducts physical property analysis andenvironmental analysis. Sales revenue of these businesses increased by ¥1.7 billion from theprevious year, to ¥51.1 billion, and core operating income increased by ¥4.0 billion from theprevious year, to ¥12.8 billion.

Regarding the year-end dividend for fiscal 2020, in light of the financial results for the fiscal
year, as described above, and because there is great uncertainty regarding the future
operating environment, Sumitomo Chemical has decided to pay a year-end dividend of ¥9 per
share. As a result, the Company’s annual dividend for fiscal 2020 will be ¥15 per share,including an interim dividend of ¥6 per share.
Net cash from operating activities in fiscal 2020 was a net inflow of ¥374.5 billion, an increaseof ¥268.5 billion from the previous fiscal year, as Sumitomo Dainippon Pharma Co., Ltd., aconsolidated subsidiary of the Sumitomo Chemical Group, received an upfront payment froma partner upon entering into a development and commercialization agreement, and becauseof improvements in working capital. Net cash from investing activities was a net outflow of¥177.4 billion, due to outflows relating to a loan to Rabigh Refining and Petrochemical
Company. Compared with the previous fiscal year, net outflows decreased by ¥322.3 billion,
because of outflows in the previous fiscal year by Sumitomo Dainippon Pharma for aninvestment relating to its strategic alliance with Roivant Sciences and to acquire several of
its subsidiaries. This resulted in positive free cash flow of ¥197.1 billion for fiscal 2020,
compared with negative free cash flow of ¥393.7 billion for fiscal 2019. Net cash outflows
from financing activities were ¥40.0 billion. This represents a reduction in cash inflows fromfinancing activities of ¥413.5 billion compared with the previous consolidated fiscal year,
because in the previous fiscal year, Sumitomo Dainippon Pharma had procured bridging
loans relating to payments as part of the strategic alliance with Roivant Sciences, andSumitomo Chemical issued corporate hybrid bonds (publicly offered subordinated corporate
bonds). The balance of cash and cash equivalents at the end of fiscal 2020 increased by¥180.3 billion year on year, to ¥360.9 billion.
For fiscal 2021, the Company forecasts that sales revenue will increase compared to fiscal
2020, to ¥2,610.0 billion, core operating income and operating income are projected to be¥200.0 billion and ¥180.0 billion, respectively, and net income attributable to owners of theparent to be ¥100.0 billion, assuming an exchange rate of ¥110.0/US$ and a naphtha price of¥47,000/kl.
While it remains uncertain when the COVID-19 pandemic will be over, its impact on theGroup’s business performance after fiscal 2021 would be limited.
The Company plans to pay an interim dividend of ¥10 per share and a year-end dividend of¥10 per share, making the Company’s annual dividend for fiscal 2021 ¥20 per share,
increasing ¥5 per share from the previous fiscal year.

Consolidated statements of profit or loss
Years ended March 31, 2021(FY2020) and 2020(FY2019)
Thousands of
US dollars*
FY2020Millions of yen
FY2020FY2019

Sales revenue

2,286,9782,225,804

20,657,375

Cost of sales(1,515,782)(1,519,047)(13,691,464)

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

771,196706,757

6,965,911(631,270)(575,135)(5,702,014)

26,673

11,590240,927(17,025)(14,928)(153,780)(12,459)

9,233(112,537)
1,238,506

137,115

137,517

Finance income

19,86813,178179,460

Finance expenses(19,180)(20,215)(173,245)

Income before taxes

137,803

130,480

1,244,720(69,729)(76,081)(629,835)

68,07454,399614,886

Owners of the parent

46,04330,926415,888

Non-controlling interests

22,031

23,473

198,997

Net income

68,07454,399614,886

Income tax expenses
Net income
Net income attributable to:Yen
FY2020

US dollars*
FY2020FY2019Earnings per share:
Basic earnings per share

28.16

18.91

0.25

Diluted earnings per share

㸫

㸫

㸫

Yen
FY2020FY2019US dollars*
FY2020

Dividends per share:
Interim dividends

6.00

11.00

0.05

Year-end dividends

9.00

6.00

0.08

For the year

15.00

17.00

0.14

(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate ofࠉࠉ¥110.71= $1 prevailing on March 31, 2021.

㻌䚷Consolidated statements of comprehensive income
Years ended March 31, 2021(FY2020) and 2020(FY2019)
Millions of yen
FY2020Net income

FY2019Thousands of
US dollars*
FY202068,07454,399614,886

13,405(13,397)

121,082

18,867(8,323)

170,418

3,440(4,812)

31,07235,712(26,532)

322,572

Other comprehensive income䠖䚷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 forusing the equity method
Total items that will not be reclassified to profit or loss
䚷Items that may be subsequently reclassified to profit or loss
Cash flow hedge(3,015)

1,871(27,233)

Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted forusing the equity method
Total items that may be subsequently reclassified to profit or loss

36,890(45,048)333,213(1,701)(2,050)(15,364)

32,174(45,227)

290,615

Other comprehensive income, net of taxes

67,886(71,759)

613,188

Total comprehensive income

135,960(17,360)

1,228,073

108,727(39,081)

982,088

Total comprehensive income attributable to䠖
Owners of the parent
Non-controlling interests

27,233

21,721

245,985

Total comprehensive income

135,960(17,360)

1,228,073(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate ofࠉࠉ¥110.71= $1 prevailing on March 31, 2021.

㻌Consolidated statements of cash flows
Years ended March 31, 2021(FY2020) and 2020(FY2019)
Thousands of
US dollars*
FY2020Millions of yen
FY2020FY2019Cash flows from operating activities:
Income before taxes

137,803

130,480

1,244,720

Depreciation and amortization

136,017

131,741

1,228,588

Impairment loss

40,83337,328368,828

㸫

(61)

䠉

Share of (profit) loss of investments accounted for using the equity method

12,459(9,233)

112,537

Interest and dividend income(8,440)(10,904)(76,235)

Interest expenses

16,091

12,513

145,344

Business structure improvement expenses

6,323

7,806

57,113(22,463)(48,475)(202,899)

Reversal of impairment loss

Changes in fair value of contingent consideration(Gain) loss on sale of property, plant and equipment(18,730)(931)(169,181)(Increase) decrease in trade receivables(22,426)(10,938)(202,565)(Increase) decrease in inventories

12,644(11,713)

114,208

Increase (decrease) in trade payables

48,270(22,048)

436,004

Increase (decrease) in unearned revenue

47,976

4,881

433,348

Increase (decrease) in provisions

16,513(8,060)149,155

Others, net

28,094(57,184)

253,764

Subtotal

430,964

145,2023,892,729

Interest and dividends received

15,96827,033

144,233

Interest paid

(15,860)(12,733)(143,257)

Income taxes paid

(54,401)(48,688)(491,383)

Business structure improvement expenses paid
Net cash provided by operating activities(2,207)374,464(4,802)106,012(19,935)
3,382,386

Cash flows from investing activities:
Payments of deposit
Net (increase) decrease in securities
Purchase of property, plant and equipment, and intangible assets

㸫(61,028)㸫

(2,644)

㸫

(23,882)(1,091,247)(120,812)(120,449)

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

24,371

1,974

220,134

Purchase of investments in subsidiaries(3,355)(204,592)(30,304)

Purchase of other financial assets(8,074)(122,493)(72,929)

Proceeds from sales and redemption of other financial assets
Increase in loans receivable
Others, net

20,935(81,760)(6,050)6,763(1,734)
1,889

189,098(738,506)(54,649)

Net cash used in investing activities(177,389)(499,670)(1,602,285)(2,146,012)

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings(237,585)

237,592

Net decrease of commercial paper(2,000)(28,000)(18,065)

Proceeds from long-term borrowings

202,403

67,6891,828,227

Repayments of long-term borrowings(58,517)(85,657)(528,561)

Proceeds from issuance of bonds

158,734

282,575

1,433,782

Redemption of bonds(45,000)(30,500)(406,467)

Repayments of finance lease obligations(15,149)(14,778)(136,835)

Cash dividends paid

(19,620)(35,970)(177,220)

Cash dividends paid to non-controlling interests(16,775)(16,717)(151,522)

Proceeds from sale of subsidiaries' interests to non-controlling interests

10,841

㸫97,923

Payments for acquisition of subsidiaries' interests from non-controlling interests(19,396)(2,622)(175,196)

2,090(39,974)
23,169180,270
180,648
360,918(70)
373,542(914)(21,030)
201,678
180,648

18,877(361,069)
209,276
1,628,308
1,631,723
3,260,031

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 beginning of year
Cash and cash equivalents at end of year
(Note)
䚷䚷*U.S. dollar amounts are translated from yen, for convenience only, at the rate ofࠉࠉ¥110.71= $1 prevailing on March 31, 2021.

Segment information
Years ended March 31, 2021(FY2020) and 2020(FY2019)
Millions of yen
Reporting segments
Petrochemicals&
Plastics

Energy &Functional
Materials

IT-related
Chemicals

Health &Crop
Sciences

Pharmaceuticals

Total

OthersAdjustments

Consolidated

FY2020
Sales revenue
Sales revenues fromexternal customers
Inter-segment
sales revenues

589,323

245,249

431,819

423,011546,450

2,235,852

51,126

㸫

2,286,978

4,470

9,287

570

4,976

13

19,31652,546(71,862)㸫Total sales revenue

593,793

254,536432,389

427,987

546,4632,255,168

103,672(71,862)2,286,978

Segment profit(core operating income)(11,991)

20,26539,73331,547

71,672

151,226

12,752(16,363)

147,615

Segment assets

793,892

322,265

431,151

734,674

1,364,461

3,646,443

320,762

23,0493,990,254

26,632

17,82525,512

26,887

25,617

122,473

7,657

5,887

136,017(22,019)

(60)

(20)

701

(27)

(21,425)

8,549

417

(12,459)

Impairment loss

965

1,322

2,532

294

35,72040,833㸫㸫

40,833

Reversal of impairment loss

㸫

㸫

㸫

㸫

㸫

㸫

㸫

㸫

㸫

Investments accounted
for using the equity method

119,399

131

435

8,045

681

128,691

117,978(2,866)

243,803

Capital expenditures

19,89623,02912,222

16,287

14,01285,446

18,583

8,675

112,704

656,929

255,034

404,871

343,666

515,845

2,176,345

49,459㸫

2,225,804

5,828

9,533

1,013

5,600

49

22,02358,844(80,867)㸫Total sales revenue

662,757

264,567

405,884

349,266

515,894

2,198,368

108,303(80,867)

2,225,804

Segment profit(core operating income)

14,485

20,34325,0842,083

75,266137,261

8,770(13,379)

132,652

Segment assets

725,697

305,523

387,907656,470

1,316,474

3,392,071

280,831(18,815)

3,654,087

Depreciation andamortization

27,85015,852

28,97326,081

20,020118,776

7,468

5,497

131,741

Share of profit (loss) ofinvestments accounted
for using the equity method

3,179

(23)

1

(1,150)

(5)

2,002

7,240

(9)

9,233

Impairment loss

1,108

781

225

18

35,19637,328㸫㸫

37,328

Reversal of impairment loss

㸫

㸫

61

㸫

㸫

61

㸫

㸫

61

Investments accounted
for using the equity method

152,410

191

455

7,374

1,060

161,490

105,847(3,283)

264,054

Capital expenditures

23,834

21,383

21,581

19,677

17,012

103,487

5,020

7,841

116,348

Other items
Depreciation andamortization
Share of profit (loss) ofinvestments accounted
for using the equity method

FY2019
Sales revenue
Sales revenues fromexternal customers
Inter-segment
sales revenues

Other items

Segment information
Years ended March 31, 2021(FY2020) and 2020(FY2019)
Adjustments to income before taxes from segment profit were as follows:
Millions of yen
FY2020
Segment profit

FY2019147,615

132,652

Impairment loss

(40,833)(37,328)

Restructuring charges(6,323)(7,806)

Changes in fair value of contingent consideration

22,46348,475Gain on sale of property, plant and equipment

18,730931

Others, net(4,537)593

Operating income

137,115

137,517

Finance income

19,86813,178Finance expenses(19,180)(20,215)

Income before taxes

137,803

130,480

Overseas operations
Years ended March 31, 2021(FY2020) and 2020(FY2019)

Millions of yen
Overseas
operations

1,561,398

FY2020Thousands of
US dollars*
14,103,496

FY2019
Share (%)

Growth (%)

Millions of yen

68.3

6.9

1,460,749(Note)
䚷䚷*U.S. dollar amounts are translated from yen, for convenience only, at the rate ofࠉࠉ¥110.71= $1 prevailing on March 31, 2021.

(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 forwardlooking statements about the future performance of 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 the forward-looking statements include, but are notlimited 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; andmovements of currency exchange rates.