For Immediate Release

May 13, 2005

Sumitomo Chemical Company, LimitedConsolidated Financial Results
Sumitomo Chemical Company, Limited today announced that its consolidated net sales for the year
ended March 31, 2005 (FY2004) totaled ¥1,296.3 billion ($12,071 million), an increase of 11.9% on
FY2003. The Company posted operating income of ¥105.2 billion ($979 million), and net income of¥64.5 billion ($600 million). These results substantially surpass FY2003, marking a record high.
The Company intends to pay special dividends of ¥2,000 per 1,000 shares in addition to ordinary
dividends of ¥6,000 per 1,000 shares, thereby raising the annual dividend from ¥6,000 to ¥8,000 per
shares for FY2004.
Sales in the Basic Chemicals Segment increased 13.4% compared with last year to ¥225.8 billion.
Sales of caprolactam (a raw material for synthetic fiber) grew reflecting soaring prices of feedstockand rapid expansion of demand in China and South East Asia. In addition, sales of aluminium
increased due to the favorable market situation of tight supply. The Petrochemicals & Plastics
Segment saw an increase of 13.8% in sales on the previous year to ¥412.6 billion. Sales ofpetrochemical products such as styrene monomer and propylene oxide rose significantly underimproved market conditions due to the steep hike in prices of feedstock such as naphtha andbenzene. Plastics sales grew markedly, because of the overseas market improvement, driven by
the brisk demand in China as well as a series of successful price revisions in Japan. Sales in theFine Chemicals Segment rose 4.3% to ¥84.1 billion. Pharmaceutical bulk and intermediates showed
increased sales, mainly in exports, due to large shipments of new products as well as the prevailingsolid demand. Sales of raw materials for adhesives and rubber antioxidants also performed well.
The IT-related Chemicals Segment showed a 41.5% increase in sales over FY2003 to ¥174.8 billion.
Sales for polarizing film and color filters saw a significant increase due to the surging demand thatreflects strong expansion of the liquid crystal displays market for televisions, personal computers
and mobile phones, coupled with the market shift toward larger sized displays. Production fromthe new facilities in Korea successfully met the brisk demand for these products. Sales of liquid
crystal polymer also remained solid. Sales for the Agricultural Chemicals Segment increased 2.7%
over last year to ¥171.6 billion. In agrochemicals, sales expanded due to release of new
horticulture pesticide, PLEO, in Japan and increased sales in the United States and Europe. Salesof household insecticides also grew thanks to the launch of new products, such as Sumi One, etc.
Sales in the Pharmaceuticals Segment increased 2.5% on the previous year to ¥170.7 billion. Despite
the drug price reduction in April of last year in Japan, sales of the anchor product Amlodin (atherapeutic agent for hypertension and angina pectoris) and Meropen (a carbapenem antibiotic)
performed well. Sales in the Others Segment decreased 4.0% from the previous year to ¥56.7billion.
Total operating income increased 57.9% over FY2003 to ¥105.2 billion due to higher prices andincreased shipments, bolstered by the recovery of the Asian market led by China’s buoyant demand.
Pharmaceuticals and IT-related Chemicals improved in operating income, 23.7% to ¥34.4 billion and30.7% to ¥18.7 billion respectively. Petrochemicals & Plastics performance substantially improved
over FY2003, returning to profitability with operating income of ¥15.0 billion. Operating income ofother business segments rose, 38.3% to ¥14.8 billion for Agricultural Chemicals, 31.0% to ¥11.5billion for Fine Chemicals, 102.0% to ¥5.2 billion for Basic Chemicals. Net income increased 87.8%
to a record high of ¥64.5 billion due to the improved operating income as well as a large increase inequity in earnings of affiliates that reported stronger performance over FY 2003.
Net cash provided by operating activities was ¥159.8 billion ($1,488 million), while net cash used ininvesting activities was ¥117.9 billion ($1,098 million). Free cash flow increased to ¥41.9 billion ($390million).
For the year ending March 31, 2006, the Company estimates that consolidated net sales will be ¥1,500billion ($13,968 million), a 16% increase from FY2004, and that consolidated net income will be ¥65billion ($605 million), the same level as last year. Annual dividends per 1,000 shares will be kept at thesame rate, ¥8,000 ($74.49).
(Note) *U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥107.39= $1 prevailing on March 31, 2005.

Consolidated Statements of Income
Years ended March 31, 2005(FY2004) and 2004(FY2003)
FY2004

FY2003(¥Million)(US$1,000)*

1,296,315$ 12,071,096

Cost of sales

933,892

8,696,266

850,188

Selling, general and administrative expenses

257,241

2,395,391

241,594

105,182

979,439

66,620Interest and dividend income

4,206

39,166

4,962

Interest expense(7,197)(67,017)(7,808)Equity in earnings of affiliates26,696

248,589

8,596

Foreign exchange gain (loss)

5,820

54,195(1,790)

Reversal of allowance for doubtful receivables

2,417

22,507

720

Net gain on sale of investment securities

1,718

15,998

3,138

-

-

9,060

Restructuring charges(3,436)(31,996)(4,486)

Impairment loss on fixed assets(2,515)(23,419)---(2,451)(11,231)(104,582)(4,252)

121,660

1,132,880

72,309

Income taxes, net of tax effect43,602406,015

30,968

Minority interests

13,606

126,697

7,023

Sales¥

Operating income(¥Million)¥1,158,402

Other income (expenses):Gain on sale of property, plant and equipment

Loss associated with lease contract cancellation

Other, net
Income before income taxes andminority interests

Net income¥$64,452

600,168¥

FY2004

FY2003(US dollar)*(Yen)
Net income per 1,000 shares

34,318(Yen)¥38,938$362.58¥20,715¥3,000$

27.93

¥

3,000

Dividends per 1,000 shares:
Interim dividends
Year-end dividends
For the year

5,000
¥

8,000

46.56
$

74.49

(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥107.39= $1 prevailing on March 31, 2005.

-2-3,000¥

6,000

Industry Segment Results
Years ended March 31, 2005(FY2004) and 2004(FY2003)(¥Million)
Basic
ChemicalsPetrochemicals&Plastics

Fine
Chemicals

IT-related
Chemicals

Agricultural
Chemicals

Pharmaceuticals¥ 225,765¥ 412,576¥

84,059¥ 174,792¥ 171,644¥ 170,707(Share)(17.4%)(31.8%)(6.5%)(13.5%)(13.2%)(Growth)(13.4%)(13.8%)(4.3%)(41.5%)(2.7%)

OthersAdjustments&Elimination

Consolidated

FY2004
Sales[a]Operatingincome (loss) [b]¥[b] / [a]

5,212

¥

14,992(2.3%)(3.6%)

Total assets¥ 192,904¥ 386,509

Depreciation

10,779¥11,545¥18,742¥

14,828¥56,772¥ 1,296,315(13.2%)(4.4%)(100.0%)(2.5%)(-4.0%)(11.9%)

34,440

¥

¥

5,705

(13.7%)(10.7%)(8.6%)(20.2%)(10.0%)

90,167¥ 200,759¥ 217,000¥ 257,929¥ 230,063

17,823

6,328

18,363

12,04910,476

-

420

-

--

18,163

13,714

7,532

40,237¥ 199,050¥ 362,411

80,594(Share)(17.2%)(31.3%)(Growth)(2.4%)(-2.5%)

Impairment loss
Capitalexpenditures

¥¥

(282)

¥

105,182(8.1%)¥73,465¥ 1,648,796

7,033

5,315

88,166

-

2,095

-

2,515

17,986

19,115

4,945

4,093

125,785¥ 123,525¥ 167,105¥ 166,561(6.9%)(10.7%)(14.4%)(-3.9%)(49.7%)(5.3%)

FY2003Sales[a]Operatingincome (loss) [b]¥[b] / [a]

2,580

¥

(1,639)(1.3%)(-0.5%)

Total assets¥ 185,530¥ 346,419

Depreciation

11,349

Capitalexpenditures

13,268¥¥8,812¥

14,335¥

10,719¥59,156¥ 1,158,402(14.4%)(5.1%)(100.0%)(-1.1%)(14.7%)(4.3%)

27,839

¥

¥

4,892

(10.9%)(11.6%)(6.4%)(16.7%)(8.3%)

94,307¥ 164,418¥ 210,610¥ 248,764¥ 213,047

18,241

6,821

10,471

11,861

12,153

11,736

6,954

37,194

5,685

21,692¥¥(918)¥

66,620(5.8%)¥

86,196¥ 1,549,291

8,366

3,220

82,482

4,742

8,921

110,192

Overseas Operations
Years ended March 31, 2005(FY2004) and 2004(FY2003)
FY2004

Overseas
operations(Note)(¥Million)($1,000)*¥ 486,195$ 4,527,377

FY2003
Share(%)

Growth(%)

37.5*U. S. dollar amounts are translated from yen, for convenience only, at the rate of¥107.39= $1 prevailing on March 31 2005.

-3-33.5(¥Million)¥ 364,107

Consolidated Statements of Cash Flows
Years ended March 31, 2005(FY2004) and 2004(FY2003)
FY2004

FY2003(¥Million)(US$1,000)*(¥Million)¥ 121,660$1,132,880¥

Depreciation

88,166820,989

82,482

Income taxes paid

(29,122)(271,180)(33,373)

Other, net(20,885)(194,478)(24,366)

Net cash provided by operating activities

159,819

1,488,211

97,052(133,796)(1,245,889)(132,868)

15,843

147,528

29,628(117,953)(1,098,361)(103,240)

Dividends paid

(9,924)(92,411)(9,925)

Net (decrease) increase in short-term debt

(20,354)(189,533)

2,438

Net increase (decrease) in long-term debt

4,951

46,103

1,359

Other, net(5,877)(54,726)(3,187)

Net cash used in financing activities(31,204)(290,567)(9,315)

Effect of exchange rate changes on cash and cashequivalents

190

1,769

(2,007)

Net increase (decrease) in cash and cash equivalents

10,852101,052(17,510)

Increase in cash due to merger of consolidated
subsidiaries

45419

58

Decrease in cash resulting from changes in thenumber of consolidated subsidiaries

(50)

(466)

(44)

Cash and cash equivalents at beginning of year

44,395

413,400

61,891

55,242$ 514,405

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

72,309Cash flows from investing activities:
Acquisition of property, plant and equipment
Other, net
Net cash used in investing activities
Cash flows from financing activities:

Cash and cash equivalents at end of year¥

(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥107.39= $1 prevailing on March 31, 2005.

-4-¥44,395

Non-consolidated Statements of Income
Years ended March 31, 2005(FY2004) and 2004(FY2003)
FY2004

FY2003(¥Million)(US$1,000)*

667,698$ 6,217,506

Cost of sales

543,406

5,060,117

496,340

Selling, general and administrative expenses

98,299915,346

96,37525,993242,043

8,082

Other income

29,169271,617

21,637

Other expenses

12,922

120,327

10,282

42,240393,333

19,437

Special gains

5,210

48,515

6,642

Special losses

3,828

35,646

5,225

43,622406,202

20,854

8,755

81,526

4,822

Sales

¥

Operating income

Ordinary income

Income before income taxes
Income taxes
Net income¥

34,867$

324,676(¥Million)¥¥

600,797

16,032(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥107.39= $1 prevailing on March 31, 2005.

(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 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 importantfactors 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 acceptancefor its products in these highly competitive markets; and movements of currency exchange rates.

-5-