For Immediate ReleaseAugust 1, 2022

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2022
For the first quarter ended on June 30, 2022, the Sumitomo Chemical Group reported
consolidated sales revenue of ¥774.1 billion, an increase of ¥135.2 billion year on year,
core operating income* of ¥64.1 billion, operating income of ¥66.3 billion, and net
income attributable to owners of the parent of ¥70.0 billion, all higher than the resultsfrom the same period in the previous year.
*Core operating income is a gain and loss concept, reflecting recurring earning
capacity, and deducts gains and losses incurred by non-recurring factors fromoperating income. It includes the share of profit from investments accounted for using
the equity method.
The financial results by business segment for the first quarter are as follows:
Essential Chemicals & Plastics
Selling prices for synthetic resins, methyl methacrylate and various industrial
chemicals improved due to an increase in raw material prices. The weak yen also
benefited sales revenues of subsidiaries outside of Japan when converted into yen.
On the other hand, shipments declined, primarily because of weak demand forproducts in automotive applications. As a result, sales revenue increased by ¥39.0
billion from the same period in the previous year, to ¥238.6 billion. Core operating
income was ¥10.0 billion, declined by ¥13.8 billion from the same period in theprevious year, because of a deterioration in margins caused by higher raw material
prices and the impact of lower shipment volumes, despite an improvement in theperformance of Rabigh Refining and Petrochemical Company, our equity methodinvestee.

Energy & Functional MaterialsSelling prices for aluminum and cathode materials increased in good market
conditions. Shipments of separators for lithium-ion secondary batteries stayed firm.
The weak yen also had a positive effect. As a result, sales revenue increased by ¥12.0billion, to ¥86.4 billion from the same period in the previous year. Core operating
income was ¥6.6 billion, relatively flat with the same period in the previous year, led
by higher income from exports due to the weak yen and by a decline in margins
resulted from the rise in raw material prices.
IT-related Chemicals
Sales revenue benefited from the weak yen’s effect on the sales of subsidiaries
outside of Japan in yen terms. In addition, demand growth for processing materials
for semiconductors such as high purity chemicals and photoresists brought about
increase of shipments. On the other hand, shipments of display-related materials
declined because stay-at-home demand had run its course, and consumer sentiment
was deteriorated in the face of inflation concerns. As a result, sales revenue increasedby ¥5.4 billion from the same period in the previous year, to ¥114.7 billion. Core
operating income was ¥15.8 billion, increased by ¥2.3 billion from the same period in
the previous year, attributable to higher income from exports due to the weak yen andhigher shipments of processing materials for semiconductors.
Health & Crop Sciences
Sales of crop protection products in South America increased significantly, andshipments in such markets as India performed well. Moreover, market prices ofmethionine (feed additives) increased from the same period in the previous year. The
weak yen also had a positive effect on sales from subsidiaries outside of Japan whenconverted into yen. As a result, sales revenue increased by ¥49.5 billion from the same
period in the previous year, to ¥152.6 billion. Core operating income was ¥21.9 billion,increased by ¥11.6 billion from the same period in the previous year, driven by theincrease in sales and higher income from exports as a result of the weak yen, despite
higher prices for raw materials.

Pharmaceuticals
In North America, sales growth of Latuda® (atypical antipsychotic agent), Orgovyx®
(therapeutic agent for advanced prostate cancer) and Gemtesa® (therapeutic agent
for overactive bladder), as well as the recognition as revenue of an upfront payment
received in consideration of the exclusive license agreement to commercialize
Orgovyx® (generic name: relugolix) in Europe, contributed to the sales revenue. The
weak yen also benefited sales revenues of subsidiaries outside of Japan whenconverted into yen. On the other hand, in Japan, sales revenues were affected by theNational Health Insurance (NHI) drug price revisions. As a result, sales revenue
increased by ¥28.6 billion from the same period in the previous year, to ¥167.7 billion.
Core operating income was ¥14.1 billion, increased by ¥4.4 billion from the same
period in the previous year, as the growth of sales revenue more than offset increases
in selling, general and administrative expenses and R&D expenses primarily due tothe effects of forex situation.
OthersIn addition to the above five segments, the Sumitomo Chemical Group supplies
electric power and steam, designs chemical plants and supervises the constructionof those facilities, provides transportation and warehousing, and conducts physicalproperty analysis and environmental analysis. Sales revenue of these businesses
increased by ¥0.6 billion from the same period in the previous year, to ¥14.2 billion,
and core operating income increased by ¥0.5 billion from the same period in theprevious year, to ¥3.3 billion.

Consolidated Statement of Financial Position

In millions of yen

As of June 30, 2022

As of March 31, 2022

Assets䚷䚷 Current assets:
䚷䚷䚷 Cash and cash equivalents䢠䚷䚷䚷 Trade and other receivables

498,600
778,623

䢠

365,429
720,422

䚷䚷䚷 Other financial assets

34,79323,991

䚷䚷䚷 Inventories

742,030

651,358

䚷䚷䚷 Other current assets

80,76251,442

䚷䚷 Total current assets

2,134,808

1,812,642

䚷䚷Non-current assets:䚷䚷 䚷Property, plant and equipment

843,883

823,022䚷䚷 䚷Goodwill

269,057

244,517䚷 䚷䚷Intangible assets

510,678

471,109䚷 䚷䚷Investments accounted for using the equity method

318,316

289,968䚷 䚷䚷Other financial assets

397,253474,899䚷 䚷䚷Retirement benefit assets

90,52289,538䚷 䚷䚷Deferred tax assets

49,567

49,121䚷 䚷䚷Other non-current assets
䚷䚷Total non-current assets
Total Assets

䢠

55,80353,3352,535,079

2,495,509

4,669,887

䢠

4,308,151

Liabilities and Equity
Liabilities
䚷䚷Current liabilities:
䚷䚷 䚷Bonds and borrowings䢠䚷 䚷䚷Trade and other payables

325,803
675,828䢠

261,280
551,583䚷 䚷䚷Other financial liabilities

77,22884,137䚷 䚷䚷Income taxes payable

33,71924,515

䚷 䚷䚷Provisions

153,440

129,709

䚷䚷䚷Other current liabilities
䚷䚷Total current liabilities

101,075

122,267

1,367,093

1,173,491

䚷䚷Non-current liabilities:
䚷䚷䚷Bonds and borrowings

1,091,623

1,089,190

䚷䚷䚷Other financial liabilities

97,397

101,718

䚷 䚷䚷Retirement benefit liabilities

33,27833,091䚷䚷䚷Provisions

37,83936,502

䚷䚷䚷Deferred tax liabilities

110,494

101,299

䚷䚷䚷Other non-current liabilities

68,92870,883

䚷䚷Total non-current liabilities

1,439,559

1,432,683

䚷Total liabilities

2,806,652

2,606,174

89,69989,699䚷Equity䚷 䚷Share capital䚷䚷Capital surplus

27,27527,089䚷 䚷Retained earnings

1,026,071

974,382

䚷䚷Treasury shares
䚷䚷Other components of equity
䚷 䚷Equity attributable to owners of the parent(8,344)(8,343)

208,555

135,274

1,343,256

1,218,101䚷 䚷Non-controlling interests

519,979

483,876

䚷Total equity
Total Liabilities and Equity

1,863,235

1,701,977

䢠

4,669,887

䢠

4,308,151

Consolidated Statement of Profit or Loss

Three Months ended June 30,
In millions of yen
Sales revenue2022㻃ࠉ 774,1342021
㻃 638,979

Cost of sales(528,345)(428,875)

Gross profit
Selling, general and administrative expenses
Other operating income

245,789

210,104(195,980)(165,551)

8,181

2,127

(4,379)(3,078)12,671

14,742

66,282
61,90858,344
3,092

Finance expenses(14,534)(4,743)

Income before taxes

113,656

56,693(28,548)(17,809)85,10838,88469,99235,659Other operating expenses
Share of profit of investments accounted forusing the equity method
Operating income
Finance income

Income tax expenses
Net income
Net income attributable to:
Owners of the parent
Non-controlling interests
Net income

15,1163,225

㻃 ࠉ 85,108

㻃 ࠉ 38,884

Three Months ended June 30,
In yenEarnings per share:

2022

2021

Basic earnings per share

42.81

21.81

Diluted earnings per share㸫㸫䚷Consolidated Statement of Comprehensive Income

In millions of yenNet income

Three Months ended June 30,2022
2021
㻃 ࠉ 85,108
㻃 ࠉ 38,884

Other comprehensive income䠖㻌Items that will not be reclassified to profit or loss
Remeasurements of financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments accounted
for using the equity method(7,173)(13,198)

(62)

(58)

(811)

1,014

(8,046)(12,242)

Cash flow hedge

7,970(1,250)Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using the equity method

92,422

8,063

14,932

5,777

Total items that may be subsequently reclassified to profit or loss

115,324

12,590107,278

348

192,386

39,232

Total items that will not be reclassified to profit or loss
Items that may be subsequently reclassified to profit or loss

Other comprehensive income, net of taxes
Total comprehensive income
Total comprehensive income attributable to䠖
Owners of the parent

147,880

40,313

Non-controlling interests

44,506(1,081)㻃ࠉ 192,386

㻃 ࠉ 39,232

Total comprehensive income

Consolidated Statement of Cash Flows
Three Months ended June 30,
In millions of yen
Cash Flows from Operating Activities:
Income before taxes
Depreciation and amortization
Impairment loss2022

2021

㻃 113,656

㻃 ࠉ 56,693

43,71337,569㸫

1,579

Share of (profit) loss of investments accounted for using the equity method(12,671)(14,742)Interest and dividend income(4,321)(2,912)

Interest expenses

5,733

4,163

Business structure improvement expenses

2,135

1,653

Changes in fair value of contingent consideration(Gain) loss on sale of property, plant and equipment7888(1,896)(40)(Increase) decrease in trade receivables

28,174

12,850(Increase) decrease in inventories(57,141)(43,379)
14,700

Increase (decrease) in trade payables

62,567

Increase (decrease) in unearned revenue(8,119)10,626

Increase (decrease) in provisions

9,446(2,645)

Others, net(117,565)(36,298)

Subtotal

63,78939,905Interest and dividends received

8,845

5,671

Interest paid

(6,013)(4,478)

Income taxes paid

(22,864)(35,741)

Business structure improvement expenses paid
Net cash provided by operating activities(1,126)
42,631

(667)
4,690

Cash Flows from Investing Activities:
Net (increase) decrease in securities
Purchase of property, plant and equipment, and intangible assets(10,591)(22,188)(37,490)(22,475)

Proceeds from sale of property, plant and equipment, and intangible assets

2,154

540

Purchase of other financial assets(3,007)(3,129)Proceeds from sales and redemption of other financial assets

36,186

8,305

Proceeds from collection of loans receivable

59,900

518

Others, net(1,127)(2,845)

Net cash used in investing activities

46,025(41,274)

Cash Flows from Financing Activities:
Net increase (decrease) in short-term borrowings
Net decrease of commercial paper

46,61332,33840,00074,000

Proceeds from long-term borrowings

716

33,122

Repayments of long-term borrowings(38,873)(64,009)㸫(10,000)

Redemption of bonds
Repayments of finance lease obligations(4,259)(3,881)

Cash dividends paid

(22,900)(14,715)

Cash dividends paid to non-controlling interests(9,707)(5,275)

㸫(363)(67)
11,52332,992
133,171
365,429
㻃 498,600

240
41,457666
5,539
360,918
㻃 366,457

Payments for acquisition of subsidiaries' interests from non-controlling interests
Others, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the period

Sales Revenue and Core Operating Income by Segment

Three Months ended June 30, 2022

In millions of yen

Essential
Chemicals &Plastics

Energy &Functional
Materials

IT-related
Chemicals

Health &CropSciencesPharmaceuticals

Total

OthersAdjustments

Consolidated

Sales revenue
From external customers

㻃 238,562

㻃 86,427

㻃 114,650

㻃 152,556

㻃 167,728

㻃 759,923

㻃 14,211

1,465

4,838

116

945

6

7,370

240,027

91,265

114,766

153,501

167,734

9,987

㻃 6,624

㻃 15,770

㻃 21,905

㻃 14,076

IT-related
Chemicals

Health &CropSciences

Pharmaceuticals

74,385

㻃 109,266

㻃 103,066

㻃 139,161

㻃 625,410

㻃 13,569

1,232

2,985

110

2,374

2

6,703

200,764

77,370109,376

105,440

139,1636,710

㻃 13,480

㻃 10,283

9,648Inter-segment
TotalCore operating income㻃㸫㻃 774,134

17,457(24,827)

㸫

767,293

31,668(24,827)

774,134

㻃 68,362

㻃 3,275

㻃 (7,526)

㻃 64,111

TotalOthers㻃

Three Months ended June 30, 2021

In millions of yen

Essential
Chemicals &Plastics

Energy &Functional
Materials

Adjustments

Consolidated

Sales revenue
From external customers
Inter-segment
Total

Core operating income

㻃 199,532

㻃 23,822

㻃

㻃

㻃

㸫

㻃 638,979

14,309(21,012)

㸫

632,11327,878(21,012)

638,979

㻃 63,943

㻃 2,747

㻃 (5,026)㻃 61,664㻃Adjustments to income before taxes from core operating income were as follows:
Three Months ended June 30,
In millions of yen
Core operating income
Gain on sale of property, plant and equipment
Impairment loss
Restructuring charges
Changes in fair value of contingent consideration

2022

2021

㻃 ࠉ 64,111

㻃 ࠉ 61,664

1,896

40

㸫

(1,579)(2,135)(1,653)

(78)

(88)

Others, net

2,488

(40)

Operating income

66,282

58,344

Finance income

61,908

3,092

Finance expenses(14,534)(4,743)

Income before taxes

㻃 113,656

㻃 ࠉ 56,693(Cautionary statement)This release of financial results is exempt from audit procedures.
Statements made in this release with respect to the Company’s current plans, estimates, strategies and beliefs that are not historical facts are forwardlooking statements about the future performance of 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 important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are notlimited to, general economic conditions in Sumitomo Chemical’s markets; demand for, and competitive pricing pressure on, Sumitomo Chemical’sproducts in the marketplace; Sumitomo Chemical’s ability to continue to win acceptance for its products in these highly competitive markets; andmovements of currency exchange rates.