For Immediate Release
May 12, 2014

Sumitomo Chemical Announces
Consolidated Financial Results for FY2013
During the twelve months ended March 31, 2014 (Fiscal 2013), economic conditions inJapan and overseas were generally on a recovery track. The Japanese economy showed arecovery trend due to the correction of the yen’s appreciation and the government'seconomic stimulus package. Although the pace of economic growth slowed down in China
and other emerging countries, the U.S. economy continued a solid recovery. In the second
half of the fiscal year, Europe also began to show signs of economic recovery, though at aslow pace.
The business environment surrounding the Sumitomo Chemical Group improved as awhole, although there were areas that remained challenging, with sluggish market
conditions and weak shipment volumes.
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 thorough streamlining.
As a result, the Group’s sales for fiscal 2013 increased by ¥291.3 billion compared with theprevious fiscal year, to ¥2,243.8 billion. The Group posted operating income of ¥100.8 billion,ordinary income of ¥111.1 billion and net income of ¥37.0 billion, all representing improves
from the previous fiscal year.
The Sumitomo Chemical Group’s financial results by business segment for fiscal 2013 are
as follows.
Basic Chemicals
Market prices remained low for methyl methacrylate and raw materials for synthetic fibers,
and shipments of these products also remained low. On the other hand, the correction of
the yen’s appreciation had a positive effect on sales from overseas subsidiaries in yenterms. As a result, the segment’s sales increased by ¥23.4 billion compared with theprevious fiscal year, to ¥286.9 billion. Operating income, however, declined by ¥4.5 billion, toa loss of ¥10.9 billion.

Petrochemicals & Plastics
Market prices for synthetic resins and petrochemical products rose due to higher feedstock
prices, but shipments from overseas subsidiaries decreased due to maintenance work atPetro Rabigh. The correction of the yen’s appreciation had a positive effect on sales fromoverseas subsidiaries in yen terms. As a result, the segment’s sales increased by ¥98.2billion compared with the previous fiscal year, to ¥792.0 billion, and operating income
improved by ¥8.2 billion, to ¥4.9 billion.
IT-related Chemicals
Sales of polarizing film used in liquid crystal displays (LCDs) increased due to growth indemand. A newly-built touchscreen panel facility in South Korea that began operations in
the previous fiscal year contributed to sales throughout the year. As a result, including thepositive effect of the correction of the yen’s appreciation, the segment’s sales increased by¥62.3 billion compared with the previous fiscal year, to ¥362.3 billion, and operating income
grew by ¥23.2 billion, to ¥34.9 billion.
Health & Crop Sciences
In the area of crop protection chemicals, shipments of herbicides and other products rose inoverseas markets due to increased production capacity and expanded sales. Market pricesof the feed additive methionine declined but shipments increased due to sales expansion.
The correction of the yen’s appreciation had a positive effect on sales from overseas
subsidiaries in yen terms. As a result, the segment’s sales increased by ¥64.4 billion
compared with the previous fiscal year, to ¥327.0 billion, and operating income grew by¥11.9 billion, to ¥38.2 billion.
Pharmaceuticals
In Japan, sales of Aimix® (anti-hypertension drug), Metgluco® (biguanide oral
hypoglycemic) and Trerief® (therapeutic agent for Parkinson's disease) significantly
increased, but overall sales decreased as a result of a decline in shipments of other existingproducts due to patent expirations, and a decrease in commissioned manufacturing. InNorth America, shipments of Xopenex® (short-acting beta-agonist) fell sharply as marketingexclusivity ended, but shipments of Latuda® (atypical antipsychotic) significantly increased,and the correction of the yen’s appreciation had a positive effect on sales from overseas
subsidiaries in yen terms. As a result, the segment’s sales increased by ¥40.2 billion
compared with the previous fiscal year, to ¥418.8 billion, and operating income grew by¥16.2 billion, to ¥47.1 billion.

Others
In addition to the above five segments, the Sumitomo Chemical Group engages insupplying electrical power and steam, providing services for the design, engineering, andconstruction management of chemical plants, providing transport and warehousing, andconducting materials and environmental analysis. The segment’s sales increased by ¥2.9billion compared with the previous fiscal year, to ¥56.8 billion, and operating income rose by¥0.4 billion, to ¥8.4 billion.
The Company decided to pay a year-end dividend of ¥3 per share. As a result, theCompany’s annual dividend for fiscal 2013 was ¥9 per share, including an interim dividendof ¥6 per share, up ¥3 per share from the previous year’s level.
Operating cash flow in fiscal 2013 increased by ¥22.8 billion compared with the previous
fiscal year, to ¥194.4 billion, due to an increase in income before income taxes and animprovement in working capital. Cash flow from investing activities was negative ¥135.2billion, a decrease in cash outflows of ¥30.6 billion compared to the previous fiscal year, dueto acquisitions in the previous fiscal year of two U.S. companies, Boston Biomedical Inc.
and Elevation Pharmaceuticals Inc. (now Sunovion Respiratory Development Inc.). This
resulted in free cash flow of ¥59.2 billion for fiscal 2013, compared with ¥5.8 billion for theprevious fiscal year. Cash flow from financing activities was negative ¥59.1 billion. Thebalance of cash and cash equivalents at the end of the fiscal year increased by ¥5.4 billion
over the previous year, to ¥132.3 billion.
For fiscal 2014, the Company forecasts that sales will increase by 3.4%, to ¥2,320.0 billion,
while operating income and ordinary income are projected to be ¥105.0 billion and ¥120.0
billion respectively and net income to be ¥45.0 billion, assuming an exchange rate of¥100.0/US$ and a naphtha price of ¥70,000/kl. For fiscal 2014, the Company plans to pay aninterim dividend of ¥6 per share and a year-end dividend of ¥3 per share, resulting in anannual dividend of ¥9 per share, the same level as for fiscal 2013.

Consolidated Statements of Income
Years ended March 31, 2014(FY2013) and 2013(FY2012)
FY2013

FY2012

Yen (Millions)

USD (Thousands)*

Yen (Millions)

2,243,794

21,801,341

1,952,492

1,639,649

15,931,296

1,449,549

Selling, general and administrative expenses

503,3034,890,235

457,927

Operating income100,842

979,81045,016

Net sales
Cost of sales

Other income (expenses):
Interest and dividend income

7,956

77,3037,556Interest expenses(12,837)(124,728)(12,952)

Equity in earnings of affiliates

12,027

116,858

5,436

Gain on foreign currency transactions

4,837

46,998

6,757

Cost of inactive facilities(2,462)(23,921)(2,797)

Gain on sale of investment securities

3,414

33,171-Gain on sale of property, plant and equipment

2,586

25,126-

Gain on bargain purchase

1,740

16,906-

Fair value adjustment of contingent consideration

1,284

12,476

-

--

1,538

Impairment loss

(21,823)(212,038)(22,875)

Restructuring charges(10,648)(103,459)(10,777)

Loss on valuation of investment securities(1,462)(14,205)(4,706)--(1,090)

746

7,247

1,236

86,200837,544

12,342

31,240303,537

52,74654,960534,007(40,404)

17,983

174,728

10,672

36,977359,279(51,076)

Gain on step acquisitions

Loss on litigation
Other, net
Income before income taxes andminority interests
Income taxes,
Income (Loss) before minority interestsMinority interests
Net income (loss)

FY2013

FY2012

YenUSD

*Yen

22.62

0.22(31.25)

Interim dividends

6.00

0.06

6.00

Year-end dividends

3.00

0.03

0.00

For the year

9.00

0.09

6.00

Net income (loss) per share
Dividends per share:(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥102.92= $1 prevailing on March 31, 2014.

Consolidated Statements of Comprehensive Income
Years ended March 31, 2014(FY2013) and 2013(FY2012)
FY2013

FY2012

Yen (Millions)

USD (Thousands)*

Yen (Millions)

54,960534,007(40,404)

Valuation difference on available-for-sale securities

17,771

172,668

9,470

Deferred (losses) gains on hedges(592)(5,752)

194

Foreign currency translation adjustment

54,260527,206

58,558

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

29,181

283,531

21,921

Total other comprehensive income

100,620

977,653

90,143

155,580

1,511,660

49,739Comprehensive income attributable to owners of the parent

121,747

1,182,928

23,166Comprehensive income attributable to minority interests

33,833

328,732

26,573

Income (Loss) before minority interests
Other comprehensive income：Comprehensive income(Comprehensive income attributable to)(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥102.92= $1 prevailing on March 31, 2014.

Consolidated Statements of Cash Flows
Years ended March 31, 2014(FY2013) and 2013(FY2012)
FY2013
Yen (Millions)

FY2012

USD (Thousands)*Yen (Millions)

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

86,200837,544

12,342

Depreciation and amortization

115,734

1,124,504

115,483

Income taxes paid

(20,742)(201,536)(22,386)

Other, net

13,170127,964

66,156

Net cash provided by operating activities

194,362

1,888,476

171,595

Acquisition of securities(58,792)(571,240)(55,920)

Proceeds from sale and redemption of securities

71,259692,373

47,758(153,913)(1,495,462)(121,810)

6,269

60,911(35,800)(135,177)(1,313,418)(165,772)(59,939)(582,385)(18,379)

Cash flows from investing activities:

Acquisition of property, plant and equipment
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Net decrease in short-term debt
Net increase in long-term debt

13,635

132,482

5,066

Cash dividends paid

(9,813)(95,346)(14,720)

Other, net(2,967)(28,828)(7,976)

Net cash used in financing activities(59,084)(574,077)(36,009)

Effect of exchange rate changes
on cash and cash equivalents

14,696

142,791

8,926

Net change in cash and cash equivalents

14,797

143,772(21,260)

(36)

(350)

-(9,389)(91,227)

1,158

Cash and cash equivalents at beginning of year

126,949

1,233,473

147,051

Cash and cash equivalents at end of year

132,321

1,285,668

126,949

Net decrease in cash and cash equivalents
resulting from changes in scope of consolidation
Net (decrease) increase in cash and cash equivalents resulting
from change in fiscal period of consolidated subsidiaries(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥102.92= $1 prevailing on March 31, 2014.

Segment Information
Years ended March 31, 2014(FY2013) and 2013(FY2012)
Yen (Millions)
Basic
ChemicalsPetrochemicals&Plastics

IT-related
Chemicals

Health &CropSciences

Pharmaceuticals

SubtotalOthers

Adjustments

Consolidated

FY2013286,898

792,021362,255

326,967

418,8092,186,950

56,844-2,243,794(Share)(12.8%)(35.3%)(16.1%)(14.6%)(18.7%)(97.5%)(2.5%)-(100.0%)(Growth)(8.9%)(14.1%)(20.8%)(24.5%)(10.6%)(15.2%)(5.3%)-(14.9%)(21,767)

100,842

Net Sales[a](10,867)

4,942

34,89838,18447,079114,2368,373[b] / [a](-3.8%)(0.6%)(9.6%)(11.7%)(11.2%)(5.2%)(14.7%)

Total assets

319,156637,026

365,805

450,740

721,6492,494,376

226,361

67,7702,788,507

17,972

12,41524,981

16,00623,045

94,419

5,176

8,955

108,550

30

404

42

1,652

5,054

7,182

2

-

7,184

14,938117,409488

31,135-

163,970

79,716-

243,686

22,678

16,97551,515

17,51528,673

137,356

4,755

1,338

143,449

263,522

693,859

299,968

262,580

378,595

1,898,524

53,968-

1,952,492(13.5%)(35.5%)(15.4%)(13.4%)(19.4%)(97.2%)(2.8%)-(100.0%)(6,391)(3,232)

11,703

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

45,016

Operating income[b]

Depreciation andamortization
Amortization ofgoodwill
Investment onaffiliates applied toequity methods
Capitalexpenditures(4.5%)FY2012Net Sales[a](Share)Operating income[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

677,340

2,229,716

195,481

46,8942,472,091

15,47813,38817,926

13,60133,36993,762

6,179

8,916

108,857

30302

7

1,742

3,773

5,8545767

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

Depreciation andamortization
Amortization of
goodwill
Investment on
affiliates applied toequity methods
Capitalexpenditures(2.3%)

Overseas Operations
Years ended March 31, 2014(FY2013) and 2013(FY2012)
FY2013

Overseas
operations

FY2012

Yen (Millions)

USD(Thousands)*

Share (%)

Growth (%)

Yen (Millions)

1,292,870

12,561,893

57.6

23.9

1,043,830(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥102.92= $1 prevailing on March 31, 2014.
(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.