For Immediate Release

April 26, 2018

Sumitomo Chemical Announces its Full-Year Consolidated Financial Forecast for
FY2017 under IFRS and Revisions to its Full-Year Consolidated Financial Forecastfor FY2017 under Japanese GAAP (for Reference)
Because Sumitomo Chemical Co. Ltd. has decided to adopt International Financial Reporting Standards(IFRS) in presenting its consolidated financial statements, starting with its full-year results for fiscal 2017
(April 1, 2017 – March 31, 2018), it has announced its full-year consolidated financial forecast for fiscal
2017 (April 1, 2017 – March 31, 2018) under IFRS, as detailed below.
In addition, based on recent performance trends, it has also announced revisions to its full-year
consolidated financial forecast for fiscal 2017 (April 1, 2017 – March 31, 2018) under Japanese GAAP
(for reference), which was previously announced November 1, 2017, as is also detailed below.
1. Full-Year Consolidated Financial Forecast for Fiscal 2017 (April 1, 2017 – March 31, 2018) under IFRS(Millions of yen)
Net incomeCore
Earnings
Sales
Operatingattributable toperShare
Operatingowners of therevenue
Income(yen)Income *1parentPrevious Forecast (A)－－－－－Revised Forecast (B)2,190,000

262,000

250,000

133,000

81.34

Variance in Amount (B-A)－－－－

Variance in Percentage (%)－－－－

Previous year results(Fiscal 2016)－－－－－*1. Compared with operating income under IFRS, “Core Operating Income” excludes extraordinary gains and losses.
Compared with Japanese GAAP, among other effects, it includes share of profit of investments accounted for using the equity
method, does not amortize goodwill, and records upfront contractual payments for in-licensed pharmaceutical products asintangible assets, which serves to reduce selling, general and administrative expenses.

Financial Forecast by Segment(Millions of yen)
Sales revenue

Core Operating
IncomePetrochemicals & Plastics

674,000

94,500

Energy & Functional Materials

251,000

19,000IT-related Chemicals

369,000

12,000

Health & Crop Sciences

339,000

43,500

Pharmaceuticals

500,000

94,500

Others

57,00011,000－-12,500

2,190,000

262,000

Adjustments
Total

2. Full-Year Consolidated Financial Forecast for Fiscal 2017 (April 1, 2017 – March 31, 2018)
under Japanese GAAP (for reference)(Millions of yen)
Net incomeEarnings
Operating
Ordinary
attributable toper Share
Sales
owners of theIncome
Income(yen)parentPrevious Forecast (A)2,210,000

185,000

215,000

120,000

73.43

Revised Forecast (B) *2

2,216,000

178,000

223,000

126,000

77.11

Variance in Amount (B-A)

6,000-7,000

8,000

6,000

Variance in Percentage (%)

0.3

-3.8

3.7

5.0

1,954,283

134,336

166,632

85,482Previous year results(Fiscal 2016)52.31*2. Because the Company will use IFRS for its full-year financial results for fiscal 2017, full-year figures for fiscal 2017 underJapanese GAAP (for reference) will be unaudited.

(Reasons for the Revision)
Full-Year Consolidated Financial Forecast for Fiscal 2017 (April 1, 2017 – March 31, 2018) underJapanese GAAP (for reference)
Although market conditions have remained strong in the Petrochemicals & Plastics Sector and theEnergy & Functional Materials Sector, operating income is expected to fall below the previous forecast
because shipments have declined in the IT-related Chemicals Sector and Health & Crop Sciences
Sector, and because of higher selling, general and administrative expenses, research and development
expenses, and other factors in the Pharmaceuticals Sector.
Ordinary income and net income attributable to owners of the parent are expected to exceed theprevious forecast because of higher equity in earnings of affiliates and other factors, despite theanticipated decline in operating income.

Cautionary Statement
Statements made in this document with respect to Sumitomo Chemical’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 andbeliefs 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 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 inthe marketplace; Sumitomo Chemical’s ability to continue to win acceptance for its products in thesehighly competitive markets; and movements of currency exchange rates.