For Immediate Release

February 4, 2008

Sumitomo Chemical Reports
Consolidated Financial Results
For The Nine Months Ended December 31, 2007
During the 9 months ending December 31, Japan’s economy continued its moderate growth supported by
improved corporate income spurring increased capital expenditures as well as increased exports thanks toeconomic expansion in Asia, particularly China. However, in addition to sustained high prices for crude oilfrom the latter half of the year, the risk of a slowdown in the US economy stemming from the sub-prime loan
problem has heightened concerns about its possible effect on the global economy.
Under these circumstances, the Sumitomo Chemical Group posted sales for the 9 months ending December
31 of ¥1,391.0 billion, an increase of ¥94.8 billion over the previous year. Operating income was ¥75.9 billion,
ordinary income was ¥85.5 billion, and net income was ¥40.5 billion, all of which represent a decrease
compared with the previous year owing to increased raw materials costs as well as increased fixed costs
such as depreciation costs and R&D expenditures.
The Company’s third-quarter financial performance by segment is as follows.
In the Basic Chemicals segment, sales for caprolactam and acrylonitrile, raw materials for synthetic textile
fibers increased thanks to improved market conditions . Sales of methyl methacrylate and other products
also saw a rise because of higher selling prices. As a result, sales increased ¥5.8 billion over the previousyear to ¥234.0 billion, while operating income remained almost flat year on year at ¥9.6 billion because ofincreased raw material and fixed costs that offset improved margins for methyl methacrylate and otherproducts on the back of a market rise.
In the Petrochemicals & Plastics segment, sales of synthetic resins increased as a result of domestic selling
price increases taken in response to the rising prices of feedstocks such as naphtha. Sales of petrochemical
products also increased with higher market prices reflecting high feedstock costs. Sales increased ¥43.1
billion over the same period last year to ¥440.9 billion, while operating income decreased by ¥13.2 billion to¥4.3 billion, showing the effects of rising prices for raw materials exceeding selling price increases as well
as a large scale periodical maintenance shutdown of manufacturing plants occurring once in four years.
The Fine Chemicals segment saw sales increases due to marketing drives for pharmaceutical intermediates.
Sales increased ¥0.6 billion year on year to ¥69.6 billion, while operating income decreased ¥0.9 billion to¥9.1 billion because of high feedstock prices.
In the IT-related Chemicals segment, sales increased thanks to higher sales volumes for polarizing film andcolor filters, materials for liquid crystal displays (LCDs), driven by a production capacity increase in Korea.
Though the decline in selling prices moderated somewhat starting this fiscal year, it represented aconsiderable decrease compared with the same period the previous year. Shipments of light diffusion
sheets, liquid crystal polymers and other materials remained firm, boosting sales. Sales increased ¥15.8billion year on year to ¥214.0 billion, and although operating income has begun to recover considerably
heading into the second half, it declined year on year by ¥8.4 billion to ¥0.2 billion because of depressed
selling prices for polarizing film along with increased fixed costs caused by capacity expansions.
In the Agricultural Chemicals segment, feed additives saw an increase in sales owing to increases in selling
prices and active marketing drives, and firm overseas shipments of household insecticides boosted overallsales. Meanwhile, domestic shipments of agrochemicals in the second half showed a recovery. Sales
increased ¥4.3 billion over the same period last year to ¥142.6 billion, while operating income decreased by¥1.7 billion to ¥11.4 billion owing to high raw material prices as well as one-time costs associated with theintegration of Sumitomo Chemical Takeda Agro Co., Ltd.
In the Pharmaceuticals segment, sales of Dainippon Sumitomo Pharma’s four main products, Amlodin(therapeutic agent for hypertension and angina), Gasmotin (gastroprokinetic), Meropen (carbapenemantibiotic), and Prorenal (vasodilator) remained firm. Sales increased ¥3.8 billion year on year to ¥179.2
billion, while operating income decreased by ¥4.1 billion to ¥38.6 billion because of increased fixed costs
such as R&D expenditures.
In the Others segment, the Company provides electrical power and steam, services for chemical plantengineering and design, transport and warehousing, and materials and environmental analysis. Sales in ourchemical plant engineering and design services subsidiary increased with progress on the Rabigh Project, aproject for the construction of an integrated refinery and petrochemical complex in Saudi Arabia. Sales
increased ¥21.3 billion over the previous year to ¥110.6 billion, while operating income declined ¥1.5 billion
to ¥3.4 billion.
In addition to the decrease in operating income, extraordinary gains on the sale of securities decreased fromthe same period last year. As a result, net income decreased by ¥32.4 billion compared with the same period
over the previous year, to ¥40.5 billion.

Summary of Consolidated Results(1) Results of operations:

Net Sales
Operating Income
Income Before Income Taxes
and Minority Interests
Net Income

Net income per 1,000 shares（\89,768
40,483（\(2) Financial Position:
Total Assets
Total Net AssetBook Value per 1,000 shares（\（\(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

786,404
354,647（$140,56772,914*）

US$215

As of December 31, 2007*\ Million ）（ US$ 1,000 ）
2,362,641$ 20,697,687
1,016,234
8,902,619
Yen）
471,225（$*）
US$4,128（\Yen）
44,142As of March 31, 2007
（ \ Million ）\2,324,906
1,030,521（\Yen）
479,872

9 Months ended
December 31，2006（ \ Million ）\-\（9 Months ended
December 31，2007*\ Million ）（ US$ 1,000 ）9 Months ended
December 31，2006（ \ Million ）234,028
440,867
69,571
214,030
142,595
179,249
110,643
1,390,983$

2,050,180
3,862,173
609,470
1,874,989
1,249,190
1,570,293
969,277
12,185,572

\

9,646
4,292
9,085
178
11,43338,5803,413(683)
75,944$84,50337,60079,5881,559
100,158
337,976
29,899(5,983)665,300\（\Business Segment:\\Operating Income
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
OthersEliminationYen）
24,516

9 Months ended
December 31，2006（ \ Million ）\1,296,206
105,404

9 Months ended
December 31，2007*\ Million ）（ US$ 1,000 ）
105,141$
921,078(173,626)(1,521,034)
41,132
360,333
99,200$869,032(4) Results of Operations by

Net Sales
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
Others9 Months ended
December 31，2007*\ Million ）（ US$ 1,000 ）
1,390,983$ 12,185,572
75,944
665,300\\$$(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥114.15= $1 prevailing on December 31, 2007.

\\\-

228,195
397,768
68,962
198,213138,246
175,475
89,347
1,296,206
9,501
17,483
9,984
8,590
13,162
42,696
4,912(924)
105,404