For Immediate ReleaseAugust 4, 2020

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2020
For the first quarter ended on June 30, 2020, the Sumitomo Chemical Group reported
consolidated sales revenue of ¥500.2 billion, decrease of ¥53 billion year on year, core
operating income* of ¥20.2 billion, operating income of ¥18.8 billion, and loss
attributable to owners of the parent of ¥6.8 billion; all lower than the results from thesame period of 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 of investments accounted for using
the equity method.
The financial results by business segment for the first quarter are as follows:
Petrochemicals & Plastics
Amid the economic downturn due to the COVID-19 pandemic, shipment of synthetic
resins mainly for automotive use declined. Impacted by a drop in market prices for
raw materials, the prices of petrochemical products hovered around at a low level. As
a result, sales revenue declined by ¥69.2 billion from the same period of the previousyear to ¥108.2 billion. Core operating income suffered a loss of ¥19.9 billion, declinedby ¥32.8 billion from the same period of the previous year, affected by decreased
shipment volume, deteriorated margins of petrochemical products, and periodic
shutdown maintenance at Rabigh Refining and Petrochemical Company, our equity
method investee.

Energy & Functional Materials
Impacted by COVID-19 pandemic, shipments of materials for automotive use
decreased, including synthetic rubber, and separators and cathode materials forlithium-ion secondary batteries. As a result, sales revenue dropped by ¥16.6 billion
from the same period of the previous year to ¥48.3 billion, and core operating income
declined by ¥3.6 billion from the same period of the previous year to ¥2 billion.
IT-related Chemicals
Shipments of processing materials for semiconductors (including high purity
chemicals and photoresists) increased driven by growing demand for these items.
Meanwhile, shipment of polarizing film for display applications decreased in the faceof COVID-19 pandemic. As a result, sales revenue increased by ¥1.4 billion from thesame period of the previous year to ¥103.8 billion, and core operating income
increased by ¥2 billion from the same period of the previous year to ¥9.9 billion.
Health & Crop Sciences
Sales of crop protection products increased after the acquisition of four SouthAmerican subsidiaries of Nufarm in April 2020. Market prices of methionine (feedadditive) increased from the same period of the previous year. As a result, sales
revenue increased by ¥16.9 billion from the same period of the previous year to ¥88.9billion. Core operating income recovered from a year earlier loss to ¥3.8 billion,increase of ¥8.4 billion from the same period of the previous year due to the improved
margins of methionine and other factors.
Pharmaceuticals
Sales increased in Japan, driven by Equa® and EquMet® (for type II diabetes mellitus)
launched in the previous fiscal year. In North America, sales of Latuda® (atypicalantipsychotic agent) increased. As a result, sales revenue increased by ¥15 billion
from the same period of the previous year to ¥140.8 billion. Core operating income
increased by ¥1.5 billion from the same period of the previous year to ¥24.5 billion due
to increased sales revenue despite that sales expenses, general and administrativeexpenses (SG&A) and research and development expenses increased after theexpenses at Sumitovant Biopharma and its subsidiaries (which were acquired as partof the strategic alliance with Roivant Sciences Ltd., in the previous fiscal year) wererecognized.

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OthersIn addition to the above five segments, the Sumitomo Chemical Group supplies
electric power and steam, designs chemical plants/supervises the construction of
those facilities, provides transportation and warehousing, and conducts physicalproperty analysis/environmental analysis. Sales revenue of these businesses
declined by ¥0.5 billion from the same period of the previous year to ¥10.1 billion, andcore operating income increased by ¥0.5 billion from the same period of the previousyear to ¥2.4 billion.

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 (loss) attributable toowners of the parent

Net income (loss) per 1,000 shares

Comprehensive income(3 Months ended
June 30, 2020
Yen (Millions)
USD (Thousands)*
500,188
4,642,547
20,156
187,080(13,306) )((123,501) )3 Months ended
June 30, 2019
Yen (Millions)553,219
44,314(8,249 )18,76013,871
1,953

174,123
128,745
18,12762,37656,88020,3908,712

80,861

5,852(6,759)(62,734)

14,538

Yen(4,134)

USD*(38)

Yen
8,892

Yen (Millions)(1,775)

USD (Thousands)*(16,475)

Yen (Millions)(15,205)

As of June 30, 2020
Yen (Millions)
USD (Thousands)*
3,762,941
34,926,128
1,372,382
12,737,906

As of March 31, 2020
Yen (Millions)
3,650,332
1,388,837

3 Months ended
June 30, 2020
Yen (Millions)
USD (Thousands)*
55,587515,937(44,168)(409,950)
126,598
1,175,032
329,698
3,060,126

3 Months ended
June 30, 2019
Yen (Millions)359(35,912)85,424
244,829

3 Months ended
June 30, 2020
Yen (Millions)
USD (Thousands)*

3 Months ended
June 30, 2019
Yen (Millions)䚷(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 by䚷䚷䚷Business 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

108,243
48,345
103,845
88,851
140,766
10,138500,188

1,004,669
448,719
963,848824,680
1,306,534
94,097
4,642,547

177,485
64,903
102,463
71,906
125,787
10,675553,219(19,850)
1,978
9,855
3,844
24,531
2,374(2,576)
20,156(184,240)
18,35991,47035,678
227,687
22,035(23,909)
187,080

12,9575,584
7,836(4,560)22,9991,826(2,328)44,314(Note)
䚷 *:U.S. dollar amounts are translated from yen, for convenience only, at the rate ofࠉ¥107.74 = $1 prevailing on June 30, 2020.
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