For Immediate Release

January 31, 2020

Sumitomo Chemical Reports
Consolidated Financial Results
For the Nine Months Ended December 31, 2019The Sumitomo Chemical Group’s consolidated sales revenue for the nine months
ended December 31, 2019, declined by ¥63.4 billion compared with the same period of
the previous fiscal year, to ¥1,650.7 billion. The Group posted core operating incomeof ¥116.3 billion, operating income of ¥127.7 billion, and net income attributable toowners of the parent of ¥37.6 billion, all of which fell short of the results for theprevious fiscal year.
“Core operating income” is a gain and loss concept that reflects recurring earning
capacity. It excludes gains and losses from non-recurring factors from operating
income, including the share of profit of investments accounted for using the equity
method.
The Sumitomo Chemical Group’s financial results by business segment for the ninemonth period were as follows.
Petrochemicals & Plastics
Market prices for petrochemical products and synthetic resins declined because
feedstock prices fell below those of the same period of the previous fiscal year. Marketconditions for raw materials for synthetic fibers and methyl methacrylate (MMA) also
remained at a low level. As a result, the segment’s sales revenue declined by ¥58.6
billion compared with the same period of the previous fiscal year, to ¥518.3 billion.
Core operating income declined by ¥24.4 billion, to ¥27.4 billion, because of suchfactors as a decline in the margins of products such as petrochemical products andMMA.

Energy & Functional Materials
Shipments of resorcinol, a raw material for adhesives, remained strong. Meanwhile,
market prices for aluminum and for the metal raw materials for cathode materials
remained low, resulting in lower selling prices. As a result, the segment’s sales
revenue declined by ¥24.0 billion compared with the same period of the previous fiscal
year, to ¥190.6 billion, and core operating income declined by ¥2.6 billion, to ¥17.7billion.
IT-related Chemicals
Although selling prices of polarizing film declined, shipments increased because ofgrowth in demand for TV and mobile applications. Shipments of touchscreen panels
also increased due to growth in demand. As a result, the segment’s sales revenue
increased by ¥4.0 billion compared with the same period of the previous fiscal year, to¥304.9 billion. Due to the significant impact of lower selling prices, core operating
income fell by ¥3.6 billion compared with the same period the previous year, to ¥18.7billion.
Health & Crop Sciences
While market prices for the feed additive methionine declined, shipments increased
because of the production capacity expansion in the previous fiscal year. On the otherhand, shipments of crop protection chemicals decreased due to the impact of extreme
weather in North America. As a result, the segment’s sales revenue increased by ¥5.8billion compared with the same period of the previous fiscal year, to ¥218.5 billion.
Core operating income deteriorated by ¥17.5 billion, to a loss of ¥13.6 billion, due tosuch factors as a decline in margins on methionine and lower shipments of crop
protection chemicals.
Pharmaceuticals
In North America, sales of Latuda® (atypical antipsychotic agent) increased, and also
increased in China. On the other hand, shipments of patent-expired originator drugs
decreased in Japan. As a result, the segment’s sales revenue increased by ¥10.4
billion compared with the same period of the previous fiscal year, to ¥382.2 billion.
Because of the increase in sales revenue, lower sales expenses, and lower generaland administrative expenses, core operating income increased by ¥8.3 billion, to ¥67.6
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,and construction management of chemical plants, providing transport andwarehousing, and conducting materials and environmental analysis. The segment’s
sales revenue declined by ¥1.0 billion compared with the same period of the previous
fiscal year, to ¥36.1 billion, and core operating income increased by ¥1.4 billion, to ¥7.9billion.

Summary of Consolidated Results(1) Results of Operations:
Sales revenue
Core operating income(Share of profit of investments
accounted for using the equity method )Operating income
Income before taxes
Net income
Net income attributable tonon-controlling interests
Net income attributable toowners of the parent

Net income per 1,000 shares

Comprehensive income(2) Financial Position:
Total assets
Total equity(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(4) Results of Operations byBusiness Segment:
Sales revenue
Petrochemicals & Plastics
Energy & Functional Materials
IT-related Chemicals
Health & Crop Sciences
Pharmaceuticals
OthersCore operating income
Petrochemicals & Plastics
Energy & Functional Materials
IT-related Chemicals
Health & Crop Sciences
Pharmaceuticals
OthersAdjustments(9 Months ended
December 31, 2019
Yen (Millions)
USD (Thousands)*
1,650,733
15,066,931
116,271
1,061,254
19,776 )(180,504 )9 Months ended
December 31, 2018
Yen (Millions)
1,714,124
154,935(32,446 )

127,662
126,775
66,514

1,165,225
1,157,129
607,101

142,601
148,190
117,606

28,933

264,084

28,63737,581

343,018

88,969Yen
22,985

USD*
210

Yen
54,414

Yen (Millions)
35,221

USD (Thousands)*
321,477

Yen (Millions)
124,731

As of December 31, 2019
Yen (Millions)
USD (Thousands)*
3,673,587
33,530,367
1,337,707
12,209,812

As of March 31, 2019
Yen (Millions)
3,171,618
1,351,886

9 Months ended
December 31, 2019
Yen (Millions)
USD (Thousands)*
63,612580,613(418,971)(3,824,124)
463,915
4,234,346
309,058
2,820,902

9 Months ended
December 31, 2018
Yen (Millions)
68,321(129,511)
68,511
242,336

9 Months ended
December 31, 2019
Yen (Millions)
USD (Thousands)*

9 Months ended
December 31, 2018
Yen (Millions)

518,319
190,648304,946
218,497382,222
36,101
1,650,733

4,730,915
1,740,124
2,783,370
1,994,314
3,488,700
329,508
15,066,931

576,887
214,652
300,938
212,683
371,815
37,1491,714,124

27,372
17,65018,675(13,594)
67,561
7,873(9,266)116,271249,836
161,099
170,455(124,078)
616,658
71,860(84,576)
1,061,254

51,78520,20922,305
3,932
59,2996,475(9,070)154,935(Note)*:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥109.56 = $1 prevailing on December 31, 2019.