For Immediate Release

October 28, 2016

Sumitomo Chemical Reports
Consolidated Financial Results
For the Half-Year Ended September 30, 2016
The Sumitomo Chemical Group’s sales for the half-year ended September 30, 2016
totaled ¥900.5 billion, a decrease of ¥175.4 billion compared with the same period of theprevious fiscal year. The Group posted operating income of ¥47.3 billion, ordinary
income of ¥50.6 billion and net income attributable to owners of the parent of ¥19.2
billion, all representing year-on-year decreases.
Sumitomo Chemical decided to pay an interim dividend of ¥7 per share.
The Sumitomo Chemical Group’s financial results by business segment for the half-year
were as follows.
Petrochemicals & Plastics
Market prices of petrochemical products and synthetic resins declined because of lower
feedstock prices. Shipments of petrochemical products decreased due to therestructuring of the petrochemical business at the Chiba Works. The stronger yen had anegative effect on sales from overseas subsidiaries in yen terms. As a result, thesegment’s sales decreased by ¥96.4 billion compared with the same period of theprevious fiscal year, to ¥265.7 billion. Operating income declined by ¥6.7 billion, to ¥6.7billion.
Energy & Functional Materials
Market prices of aluminum declined. Shipments of resorcinol, a raw material foradhesives, and engineering plastics increased due to a rise in demand. As a result, thesegment’s sales decreased by ¥10.7 billion compared with the same period of theprevious fiscal year, to ¥94.4 billion. Operating income came to ¥2.2 billion, almost
unchanged from the same period of the previous fiscal year.
IT-related Chemicals
Selling prices of polarizing film dropped. Selling prices of touchscreen panels alsodeclined, but shipments increased due to growth in demand. The stronger yen had anegative effect on sales from overseas subsidiaries in yen terms. As a result, thesegment’s sales decreased by ¥33.4 billion compared with the same period of theprevious fiscal year, to ¥174.7 billion. Operating income declined by ¥13.6 billion, to ¥2.5billion.

Health & Crop Sciences
Sales of the feed additive methionine dropped due to lower market prices. Shipments
overseas of crop protection chemicals declined. The stronger yen also had a negative
effect on sales. As a result, the segment’s sales decreased by ¥31.4 billion comparedwith the same period of the previous fiscal year, to ¥125.8 billion. Operating income
declined by ¥14.2 billion, to ¥12.9 billion.
Pharmaceuticals
In Japan, although sales of Aimix® (anti-hypertension drug), Trerief® (therapeutic agentfor Parkinson’s disease) and other drugs increased, overall sales declined due largely tothe impacts of Japanese National Health Insurance drug price revisions and a decreasein shipments of patent-expired originator drugs. In North America, sales of Latuda®
(atypical antipsychotic) and other drugs increased steadily. The stronger yen had anegative effect on sales from overseas subsidiaries in yen terms. As a result, thesegment’s sales declined by ¥0.7 billion compared with the same period of the previous
fiscal year, to ¥214.3 billion. Operating income rose by ¥8.5 billion, to ¥27.9 billion, due
to the expansion of sales in North America.
OthersIn 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 and warehousing,and conducting materials and environmental analysis. The segment’s sales decreasedby ¥2.7 billion compared with the same period of the previous fiscal year, to ¥25.6 billion.
Operating income declined by ¥1.8 billion, to ¥2.4 billion.
Equity in earnings of affiliates decreased by ¥9.7 billion compared with the same periodof the previous fiscal year, to ¥18.8 billion. Earnings of Petrochemical Corporation ofSingapore remained strong, while earnings of Rabigh Refining and Petrochemical
Company (Petro Rabigh) deteriorated due chiefly to lower profit margins caused by adecline in selling prices of petrochemical products.

(Note) Change in Business Segment Classification
As of April 1, 2016, battery materials and engineering plastics, which had been included in theIT-related Chemicals Segment, were transferred to the Energy & Functional Materials Segment.

Sumitomo Chemical has revised its consolidated financial forecast for the full-year
ending March 31, 2017, previously announced on May 11, 2016, as follows.

SalesOperatingOrdinary

IncomeIncome(Millions of yen)
Net income
Earnings
attributable toper Shareowners of the(yen)parent80,00048.95

Previous Forecast (A)2,030,000

140,000

150,000

Revised Forecast (B)1,960,000

120,000

130,000

60,000-70,000-20,000-20,000-20,000

-3.4

-14.3

-13.3

-25.0

2,101,764

164,446

171,217

81,451

Variance in Amount (B-A)
Variance in Percentage (%)
Results for Full-Yearended March 31, 2016

36.71

49.84

Sales are anticipated to fall below previous expectations due to the effects of thestronger yen and lower prices of naphtha and other feedstocks. Operating income isalso expected to fall below previous projections due to the effects of the stronger yen,lower selling prices of products in the IT-related Chemicals Sector, and a decrease in
shipments of products in the Health & Crop Sciences Sector.
Ordinary income and net income attributable to owners of the parent are also
anticipated to fall below previous expectations.
The new forecast is based on the assumptions of a foreign exchange rate of¥105/US$ and a naphtha price of ¥34,000/kl for the second half of the current fiscal year.

Cautionary Statement
Statements made in this release 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
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 inSumitomo 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 these highly competitive markets; and movements of currency
exchange rates.

Summary of Consolidated Results(1) Results of Operations:

Net sales
Operating income
Ordinary income
Income before income taxes
and non-controlling interests
Net income
Net income attributable tonon-controlling interests
Net income attributable toowners of the parent

Net income per 1,000 shares
Dividends per 1,000 shares:
Interim dividends

Comprehensive income(2) Financial Position:
Total assets
Total net assets(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 by
Business Segment:
Net sales
Petrochemicals & Plastics
Energy & Functional Materials
IT-related Chemicals
Health & Crop Sciences
Pharmaceuticals
OthersOperating income
Petrochemicals & Plastics
Energy & Functional Materials
IT-related Chemicals
Health & Crop Sciences
Pharmaceuticals
OthersAdjustments

6 Months ended
September 30, 2016
Yen (Millions)
USD (Thousands)*1
900,5128,905,380
47,254
467,306
50,608500,475

6 Months ended
September 30, 2015
Yen (Millions)
1,075,863
74,244
100,395

42,682
31,881

422,093
315,279

105,028
77,933

12,647125,069

17,037

19,234

190,21060,896

Yen
11,769USD*1116

Yen
37,261

7,000

69

8,000

Yen (Millions)(66,253)

USD (Thousands)*1(655,192)

Yen (Millions)
47,017

As of September 30, 2016
Yen (Millions)
USD (Thousands)*1
2,541,731
25,135,789
1,007,176
9,960,206

As of March 31, 2016
Yen (Millions)
2,662,150
1,090,776

6 Months ended
September 30, 2016
Yen (Millions)
USD (Thousands)*1
82,282
813,706(58,655)(580,053)
21,808215,665
240,245
2,375,841

6 Months ended
September 30, 2015
Yen (Millions)132,906(7,772)(50,550)
271,106

6 Months ended
September 30, 2016
Yen (Millions)
USD (Thousands)*1

6 Months ended
September 30, 2015
Yen (Millions)*2

265,654
94,448
174,684
125,831214,265
25,630900,5122,627,116
934,019
1,727,492
1,244,373
2,118,918
253,462
8,905,380

362,077
105,155
208,100
157,252
214,953
28,326
1,075,863

6,651
2,178
2,454
12,851
27,872
2,397(7,149)
47,254

65,773
21,53924,268127,087
275,633
23,705(70,699)
467,306

13,355
2,304
16,091
27,052
19,352
4,194(8,104)74,244(Note)*1:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥101.12 = $1 prevailing on September 30, 2016.
*2:New business segmentation is applied to consolidated results of previous year.