For Immediate Release
May 15, 2013

Sumitomo Chemical Announces
Consolidated Financial Results for FY2012
During the twelve months ended March 31, 2013 (Fiscal 2012), the economic situation
remained generally severe. Amid the prolonged sovereign debt crisis in Europe, economic
growth continued to slow down, mainly in emerging countries. The Japanese economy wasalso affected by overseas economic trends and a continued strong yen for most of the fiscalyear.
The business environment surrounding the Sumitomo Chemical Group was very tough due
to a sharp decline in demand in Asia and other overseas markets as well as margin erosion
and other factors.
Under these circumstances, the Sumitomo Chemical Group undertook group-wide efforts toimprove business performance by increasing selling prices and expanding sales volumes,
as well as by cutting costs through a drastic reduction in head-office fixed costs and othermeasures. The Group is also restructuring its petrochemical businesses to strengthen
profitability, including the restructuring of the Chiba Works.
As a result, the Group’s sales for fiscal 2012 increased by ¥4.6 billion compared with theprevious fiscal year, to ¥1,952.5 billion. The Group’s operating income was ¥45.0 billion,representing a decline from fiscal 2011, but ordinary income was almost unchanged from theprevious fiscal year at ¥50.3 billion as a result of an improvement in foreign exchange gains
and losses because of the correction of the yen’s appreciation toward the end of the fiscalyear. The Group posted a net loss of ¥51.1 billion, representing a serious deterioration fromfiscal 2011, due to large extraordinary losses and an additional corporate tax adjustment witha reversal of deferred tax assets.
The Sumitomo Chemical Group’s financial results by business segment for fiscal 2012 areas follows.
Basic Chemicals
Market prices fell for raw materials for synthetic fibers, and shipments of these products also
decreased. Sales of methyl methacrylate and aluminum declined due to lower market prices.
As a result, the segment’s sales decreased by ¥20.8 billion compared with the previous fiscal
year, to ¥263.5 billion, and operating income declined by ¥15.7 billion, to a loss of ¥6.4 billion.

Petrochemicals & Plastics
Shipments from a sales subsidiary increased from the previous fiscal year’s level, which waslow due to periodic maintenance shutdowns at the manufacturing plants of Petro Rabigh in
Saudi Arabia. Sales of synthetic resins declined in Singapore due to lower market prices
overseas. Sales of petrochemical products and synthetic resins also decreased in Japan due
to a decline in domestic demand. As a result, the segment’s sales rose by ¥21.4 billion
compared with the previous fiscal year, to ¥693.9 billion, but operating income decreased by¥9.4 billion, to a loss of ¥3.2 billion.
IT-related ChemicalsShipments of polarizing film used in liquid crystal displays (LCDs) rose, but shipments ofcolor filters declined. Sales prices of both polarizing film and color filters fell. Meanwhile, anewly-built touchscreen panel facility in South Korea began full-fledged operation in the 3rdquarter of the fiscal year. As a result, the segment’s sales increased by ¥6.9 billion comparedwith the previous fiscal year, to ¥300.0 billion, and operating income rose by ¥0.7 billion, to¥11.7 billion.
Health & Crop Sciences
In the area of crop protection chemicals, shipments of herbicides and other products rose,
especially in overseas markets, due to increased production capacity and sales expansion.
But shipments of household insecticides and the long-lasting insecticidal mosquito net,
Olyset® Net, decreased. Market prices of the feed additive methionine declined. As a result,the segment’s sales decreased by ¥1.6 billion compared with the previous fiscal year, to¥262.6 billion, and operating income declined by ¥0.2 billion, to ¥26.3 billion.
Pharmaceuticals
In Japan, sales of Metgluco® (biguanide oral hypoglycemic) and Trerief® (therapeutic agentfor Parkinson’s disease) significantly increased. But overall sales declined, even including
sales of newly-marketed Aimix® (anti-hypertension drug), because of the significant impactsof Japanese National Health Insurance drug price revisions and a decrease in shipments ofexisting products. In North America, shipments of Xopenex® (short-acting beta-agonist)
decreased as its exclusivity expired, but overall sales rose because of gradually increasing
sales of Latuda® (atypical antipsychotic) and the receipt of milestone payments of licensing
fees. As a result, the segment’s sales decreased by ¥1.9 billion compared with the previous
fiscal year, to ¥378.6 billion. Operating income rose by ¥9.9 billion, to ¥30.9 billion, due tocost-cutting efforts and a decline in labor costs.

Others
In addition to the above five segments, the Sumitomo Chemical Group engages in supplying
electrical power and steam, providing services for the design, engineering, and construction
management of chemical plants, providing transport and warehousing, and conducting
materials and environmental analysis. The segment’s sales increased by ¥0.6 billion
compared with the previous fiscal year, to ¥54.0 billion, and operating income rose by ¥0.2billion, to ¥8.0 billion.
The Company decided not to pay a year-end dividend as it posted a large net loss for the fullyear. As a result, the Company’s annual dividend for fiscal 2012 was ¥6 per share, down ¥3per share from the previous year’s level.
Operating cash flow in fiscal 2012 increased by ¥47.1 billion compared with the previous
fiscal year, to ¥171.6 billion, due to improvement in working capital. Cash flow from investing
activities was negative ¥165.8 billion, an increase of ¥41.8 billion in spending compared tothe previous fiscal year, due to acquisitions of two U.S. companies, Boston Biomedical Inc.
and Elevation Pharmaceuticals Inc. (now Sunovion Respiratory Development Inc.). This
resulted in free cash flow of ¥5.8 billion for fiscal 2012, compared with ¥0.5 billion for theprevious fiscal year. Cash flow from financing activities was negative ¥36.0 billion. Thebalance of cash and cash equivalents at the end of the fiscal year decreased by ¥20.1 billion
over the previous year, to ¥126.9 billion.
For fiscal 2013, the Company forecasts that sales will increase by 20.4%, to ¥2,350.0 billion,
while both operating income and ordinary income are projected to be ¥90.0 billion, and net
income to be ¥30.0 billion, assuming an exchange rate of ¥95.0/US$ and a naphtha price of¥65,000/kl. For fiscal 2013, the Company plans to pay the interim dividend of ¥6 per shareand a year-end dividend of ¥3 per share, resulting in an annual dividend of ¥9 per share, anincrease from the previous year’s level.

Consolidated Statements of IncomeYears ended March 31, 2013(FY2012) and 2012(FY2011)
FY2012
Yen (Millions)

USD (Thousands)*1

FY2011
Yen (Millions)

1,952,492

20,760,149

1,947,884

1,449,549

15,412,536

1,418,464

Selling, general and administrative expenses

457,927

4,868,974

468,732

Operating income

45,016478,639

60,688

7,556

80,3407,654

Net sales
Cost of sales

Other income (expenses):
Interest and dividend income(12,952)(137,714)(12,397)

Equity in earnings of affiliates

5,436

57,7991,986

Gain (loss) on foreign currency transactions

6,75771,845(3,675)

Cost of inactive facilities(2,797)(29,740)(1,216)

Gain on step acquisitions

1,538

16,353

-

-

-

9,837
1,442

Interest expenses

Gain on sale of investment securities--

Impairment loss

(22,875)(243,222)(3,595)

Restructuring charges(10,777)(114,588)(6,354)

Loss on valuation of investment securities(4,706)(50,037)-

Gain on sale of property, plant and equipment(1,090)(11,590)

Equity in losses of affiliates*2--(26,005)

Environmental expenses--(2,093)

Other, net

1,236

13,143(2,326)

Income before income taxes andminority interests

12,342

131,228

23,94652,746560,8298,299(40,404)(429,601)

15,647

10,672

113,472

10,060(51,076)(543,073)

5,587

Loss on litigation

Income taxes,(Loss) Income before minority interests
Minority interests
Net (loss) income

FY2012

Net (loss) income per share

FY2011

YenUSD*1

Yen(31.25)(0.33)

3.42

Dividends per share:
Interim dividends

6.00

0.06

6.00

Year-end dividends

0.00

0.00

3.00

For the year

6.00

0.06

9.00

(Note)*1:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥94.05= $1 prevailing on March 31, 2013.
*2:One-time amortization of goodwill of an affiliate recognized due to a write-down ofinvestment in the affiliate on a non-consolidated basis.

Consolidated Statements of Comprehensive Income
Years ended March 31, 2013(FY2012) and 2012(FY2011)

Yen (Millions)

FY2012
USD (Thousands)*

Yen (Millions)(40,404)(429,601)

15,647

9,470

100,691

117

194

2,063

730

Foreign currency translation adjustment

58,558622,626(20,929)

Share of other comprehensive income of associates
accounted for using the equity method

21,921

233,078(6,041)

Total other comprehensive income

90,143

958,458(26,123)

49,739528,857(10,476)

Comprehensive income attributable to owners of the parent

23,166

246,316(16,374)

Comprehensive income attributable to minority interests

26,573

282,541

5,898(Loss） Income before minority interests

FY2011Other comprehensive income：
Valuation difference on available-for-sale securities
Deferred gains on hedges

Comprehensive income(Comprehensive income attributable to)(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥94.05= $1 prevailing on March 31, 2013.

Consolidated Statements of Cash Flows
Years ended March 31, 2013(FY2012) and 2012(FY2011)
FY2012FY2011

Yen (Millions)

USD (Thousands)*

Yen (Millions)

12,342

131,228

23,946

Depreciation and amortization

115,483

1,227,889

114,890

Income taxes paid

(22,386)(238,022)(31,515)

Cash flows from operating activities:
Income before income taxes and minority interests

Other, net

66,156

703,413

17,170Net cash provided by operating activities

171,595

1,824,508

124,491

Acquisition of securities(55,920)(594,577)(46,815)

Proceeds from sale and redemption of securities

47,758507,794

57,586(121,810)(1,295,162)(136,580)

Cash flows from investing activities:

Acquisition of property, plant and equipment
Other, net(35,800)(380,649)

1,834

Net cash used in investing activities(165,772)(1,762,594)(123,975)

Net （decrease） increase in short-term debt

(18,379)(195,417)(17,107)

Net increase (decrease) in long-term debt

5,066

53,86543,318

Cash dividends paid

(14,720)(156,512)(19,628)

Other, net(7,976)(84,807)(4,529)Net cash provided by financing activities(36,009)(382,871)

2,054

8,926

94,907(2,969)(21,260)(226,050)

(399)

--

(4,088)

1,158

12,312(71)

Cash and cash equivalents at beginning of year

147,051

1,563,541

151,609

Cash and cash equivalents at end of year

126,949

1,349,803

147,051

Cash flows from financing activities:

Effect of exchange rate changes
on cash and cash equivalents
Net change in cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
resulting from changes in scope of consolidation
Net increase (decrease) in cash and cash equivalents resultingfrom change in fiscal period of consolidated subsidiaries(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥94.05= $1 prevailing on March 31, 2013.

Segment Information
Years ended March 31, 2013(FY2012) and 2012(FY2011)
Yen (Millions)
Basic
PetroIT-related
Chemicals chemicals& Chemicals
Plastics

Health &CropSciences

Pharmaceuticals

SubtotalOthers

Adjustments

Consolidated

FY2012263,522

693,859

299,968

262,580

378,595

1,898,524

53,968-

1,952,492(Share)(13.5%)(35.5%)(15.4%)(13.4%)(19.4%)(97.2%)(2.8%)-(100.0%)(Growth)(-7.3%)(3.2%)(2.4%)(-0.6%)(-0.5%)(0.2%)(1.1%)-(0.2%)(6,391)(3,232)

11,703

26,27230,85759,2097,963(22,156)

45,016Net Sales

Operating income

[a]

[b]

[b] / [a](-2.4%)(-0.5%)(3.9%)(10.0%)(8.2%)(3.1%)(14.8%)

Total assets

309,717555,074

280,806

406,779

677,3402,229,716

195,481

46,8942,472,091

15,47813,38817,926

13,60133,36993,762

6,179

8,916

108,857

30

302

7

1,742

3,773

5,854

5

767

6,626

12,45489,2573,201

30,437

10,368145,71766,934-

212,651

32,981

14,08018,69025,14914,634

105,534

4,497

6,116

116,147

284,348

672,428

293,066

264,134

380,518

1,894,494

53,390-1,947,884(14.6%)(34.5%)(15.0%)(13.6%)(19.5%)(97.3%)(2.7%)-(100.0%)

9,349

6,155

10,96826,495

20,91873,885

7,720(20,917)60,688[b] / [a](3.3%)(0.9%)(3.7%)(10.0%)(5.5%)(3.9%)(14.5%)

Total assets

302,372

554,366

265,023

330,036626,621

2,078,418

195,626

62,9092,336,953

14,094

14,115

14,451

12,12638,53593,321

6,945

7,082

107,348

148

-

81

2,512

3,764

6,505

5

1,032

7,542

10,58180,8103,958

27,915

10,272

133,536

58,619-192,155

24,51019,584

66,88019,282

11,340141,596

3,241

10,240155,077

Depreciation andamortization
Amortization ofgoodwill
Investment on
affiliates applied toequity methods
Capitalexpenditures(2.3%)FY2011Net Sales[a](Share)
Operating income

Depreciation andamortization
Amortization of
goodwill
Investment on
affiliates applied toequity methods
Capitalexpenditures[b](3.1%)

Overseas Operations
Years ended March 31, 2013(FY2012) and 2012(FY2011)
FY2012

Overseasoperations

FY2011

Yen (Millions)

USD(Thousands)

Share (%)

Growth (%)

Yen (Millions)

1,043,830

11,098,671

53.5

3.5

1,008,969(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥94.05= $1 prevailing on March 31, 2013.
(Cautionary Statement)
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 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 thesehighly competitive markets; and movements of currency exchange rates.