For Immediate Release

January 30, 2017

Sumitomo Chemical Reports
Consolidated Financial Results
For the Nine Months Ended December 31, 2016
The Sumitomo Chemical Group’s sales for the nine months ended December 31, 2016,
totaled ¥1,389.8 billion, a decrease of ¥188.0 billion compared with the same period of
the previous fiscal year. The Group posted operating income of ¥86.3 billion, ordinary
income of ¥115.0 billion and net income attributable to owners of the parent of ¥55.3billion, all showing year-on-year decreases.

The Sumitomo Chemical Group’s financial results by business segment for thenine-month period were as follows.

Petrochemicals & Plastics
Market prices of petrochemical products and synthetic resins declined because oflower feedstock prices. Shipments of petrochemical products decreased due to therestructuring of the petrochemical business at the Chiba Works. The stronger yen
had a negative effect on sales from overseas subsidiaries in yen terms. As a result,the segment’s sales decreased by ¥104.4 billion compared with the same period of
the previous fiscal year, to ¥414.0 billion. Operating income declined by ¥8.3 billion,to ¥17.5 billion.

Energy & Functional Materials
Selling prices of aluminum declined due chiefly to the stronger yen. Shipments ofresorcinol, a raw material for adhesives, and engineering plastics increased due to arise in demand. As a result, the segment’s sales decreased by ¥11.1 billion comparedwith the same period of the previous fiscal year, to ¥146.0 billion. Operating income
increased by ¥1.6 billion, to ¥5.1 billion.

IT-related Chemicals
Selling prices of polarizing film dropped. Selling prices of touchscreen panels also
declined, 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 ¥34.9 billion compared with the same period of theprevious fiscal year, to ¥269.8 billion. Operating income declined by ¥12.0 billion, to¥8.9 billion.

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 ¥36.4 billion comparedwith the same period of the previous fiscal year, to ¥191.9 billion. Operating income
declined by ¥24.3 billion, to ¥16.6 billion.

Pharmaceuticals
In Japan, although sales of Aimix® (anti-hypertension drug), Trerief® (therapeutic
agent for Parkinson’s disease) and other drugs increased, overall sales declined due
largely to the impacts of Japanese National Health Insurance drug price revisions anda decrease in shipments of patent-expired originator drugs. In North America, salesof Latuda® (atypical antipsychotic) and other drugs increased steadily. The stronger
yen had a negative effect on sales from overseas subsidiaries in yen terms. The
segment’s sales increased by ¥1.2 billion compared with the same period of theprevious fiscal year, to ¥329.7 billion. Operating income rose by ¥11.1 billion, to ¥46.1billion, 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 andwarehousing, and conducting materials and environmental analysis. The segment’ssales decreased by ¥2.4 billion compared with the same period of the previous fiscalyear, to ¥38.3 billion. Operating income declined by ¥2.4 billion, to ¥3.7 billion.

Equity in earnings of affiliates decreased by ¥3.7 billion compared with the same
period of the previous fiscal year, to ¥25.8 billion. Earnings of Petrochemical
Corporation of Singapore remained strong, while earnings of Rabigh Refining andPetrochemical Company (Petro Rabigh) deteriorated due to lower profit margins
caused by a decline in selling prices of petrochemical products as well as a decreasein shipments following a temporary shutdown of an ethane cracker.
(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.

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

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

9 Months ended
December 31, 2016
Yen (Millions)
USD (Thousands)*1
1,389,802
11,930,655
86,279740,656
115,001
987,218

9 Months ended
December 31, 2015
Yen (Millions)
1,577,760
119,537
143,664

106,953
82,117918,130
704,927

147,490
110,892

26,807230,123

26,32755,310474,805

84,565

Yen
33,845

USD*1
291

Yen
51,744

Yen (Millions)
76,727

USD (Thousands)*1
658,657

Yen (Millions)
90,290

As of December 31, 2016
Yen (Millions)
USD (Thousands)*12,837,763
24,360,572
1,143,149
9,813,280

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

9 Months ended
December 31, 2016
Yen (Millions)
USD (Thousands)*1
85,339732,586(168,385)(1,445,489)
80,320689,501
211,612
1,816,568

9 Months ended
December 31, 2015
Yen (Millions)
169,195(34,344)(47,386)
284,024

9 Months ended
December 31, 2016
Yen (Millions)
USD (Thousands)*1

9 Months ended
December 31, 2015
Yen (Millions)*2

414,048
145,989
269,809
191,916
329,728
38,312
1,389,802

3,554,365
1,253,232
2,316,156
1,647,489
2,830,526
328,887
11,930,655

518,408
157,117304,709228,351
328,499
40,676
1,577,760

17,502
5,148
8,919
16,56446,0893,719(11,662)
86,279150,245
44,19376,565
142,192
395,648
31,925(100,112)
740,656

25,777
3,522
20,87840,87435,023
6,115(12,652)
119,537(Note)*1:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥116.49 = $1 prevailing on December 31, 2016.
*2:New business segmentation is applied to consolidated results of previous year.