Key Figures of Consolidated Financial Results for FY2022
May 15th, 2023
Sumitomo Chemical Co., Ltd.

1. Financial Summary (IFRS)(Billions of yen)
FY2021

Sales revenue

FY2022

FY2023(Forecast)

Variance

FY2024(Revised plan)

2,765.3

2,895.3130.0

2,900.0

3,000.0

Core operating income

234.8

92.8

(142.0)

40.0

200.0

Operating income (loss)

215.0(31.0)(246.0)

20.0

180.0

Net income attributable to ownersof the parent

162.1

7.0

(155.1)

10.0

100.0

Basic earnings per share¥ 99.16¥ 4.27\(94.89)¥ 6.12¥ 61.16

Return on equity

14.5%

0.6%

(13.9)%

0.9%

8.5%

Cash dividends per share¥ 24.00¥ 18.00\(6.00)¥ 12.00

Dividend payout ratio

24.2%

421.2%－

196.2%

Exchange rate (yen/$)112.39135.50－135.00130.00Naphtha price (yen/kl)

56,60076,600－70,00070,000*Core operating income is a gain and loss concept, reflecting recurring earning capacity, and deducts gains and losses
incurred by non-recurring factors from operating income. It includes the share of profit from investments accounted forusing the equity method.

2. Sales Revenue / Core Operating Income by Business Segment (IFRS)FY2021

FY2022(Billions of yen)
FY2023(Forecast)

Variance

FY2024(Revised Plan)

Essential
Chemicals &Plastics

Sales revenue

842.5

852.9

10.4

970.0

880.0

Core operating
income53.5(34.2)(87.7)

(7.0)

21.0

Energy &Functional
Materials

Sales revenue

316.4

342.5

26.1

370.0

410.0

Core operating
income

20.1

15.2

(4.8)

13.0

22.0

Sales revenue

473.7

431.2

(42.5)

430.0

450.0

Core operating
income57.8

47.6(10.2)

38.0

44.0

Sales revenue

473.8

598.4

124.6

610.0

720.0

Core operating
income

42.3

57.3

15.0

62.0

79.0

Sales revenue

591.7

584.9

(6.8)

400.0

490.0

Core operating
income61.7

16.2(45.5)(61.0)

44.0

Sales revenue

67.2

85.4

18.2

120.0

50.0

Core operating
income

15.8

10.4

(5.4)

15.0

7.0

Sales revenue

－

－

－

－

－

Core operating
income(16.4)(19.7)(3.4)(20.0)(17.0)

Sales revenue

2,765.3

2,895.3130.0

2,900.0

3,000.0

Core operating
income

234.8

92.8

(142.0)

40.0

200.0

IT-related
Chemicals

Health & Crop
Sciences

Pharmaceuticals

OthersAdjustments

Total

3. Summary of Consolidated Statement of Income (IFRS)(Billions of yen)

FY2021

FY2022

Variance

2,765.3

2,895.3

130.0Core operating income

234.8

92.8

(142.0)Of which equity in earnings

42.2

(6.8)

(49.0)

Impairment loss

(8.1)

(109.4)(101.3)

Restructuring charges(10.6)(22.0)(11.4)

0.7

5.2

4.5

3.3

3.4

0.1

(5.1)

(0.9)

4.2

Total non-recurring items(19.8)(123.7)(104.0)Operating income (loss)

215.0(31.0)(246.0)Gain/loss on foreign currency transactions

45.6

40.1

(5.5)

Other finance income/expenses

(9.5)

(8.9)

0.6

Income before taxes

251.1

0.2

(250.9)

Income tax expenses(64.7)(47.1)

17.6

Net income (loss)

186.4(46.9)(233.3)(24.3)

53.9

78.2

162.1

7.0

(155.1)

Sales revenue

Gain on sale of property, plant andequipment
Changes in fair value of contingent
consideration
Others

Net income (loss) attributable tonon-controlling interests
Net income attributable to owners of theparent4. Summary of Consolidated Statement of Financial Position (IFRS)(Billions of yen)March 31, 2022

March 31, 2023

Variance

March 31, 2022

AssetsMarch 31, 2023

Variance

Liabilities

1,812.6

1,762.9(49.8)

Trade and other payables

551.6

515.9

(35.7)

365.4

305.8

(59.6)

Interest-bearing liabilities

1,350.5

1,461.4

110.9

720.4

603.2

(117.3)

Others

704.1

699.1

(5.0)

Inventories

651.4

744.5

93.1 Total liabilities

2,606.2

2,676.3

70.1

Others

75.4

109.4

34.0

1,082.8

973.0(109.8)

135.3

198.2

62.9

483.9

318.0

(165.9)Current assets
Cash and cash
equivalents
Trade and otherreceivables

Equity2,495.5

2,402.6

823.0

829.4

715.6

670.9

(44.8) Non-controlling interests

Others

956.9

902.4

(54.5) Total equity

1,702.0

1,489.2(212.8)

Total assets

4,308.2

4,165.5(142.6) Total liabilities and equity

4,308.2

4,165.5(142.6)

28.3%

28.1%

(0.2)%

0.8

1.0

0.2

Non-current assets
Property, plant andequipment
Goodwill and Intangible
assets(92.9) Shareholders' equity
6.3 Other components of equity

Ratio of equity attributableto owners of the parent tototal assets
D/E ratio (times)

5. Summary of Consolidated Statement of Cash Flows (IFRS)(Billions of yen)
FY2021

FY2022

FY2023(Forecast)

Variance

Variance

Cash flows from operating activities

171.7

111.6

(60.1)(20.0)(131.6)

Cash flows from investing activities(115.4)(19.4)

96.0(205.0)(185.6)

Free cash flows

56.3

92.2

35.9

(225.0)(317.2)

Cash flows from financing activities(81.4)(178.5)(97.1)

(5.0)

173.5

Effect of exchange rate changes on cash
and cash equivalents

29.6

27.8

(1.8)

0.0

(27.8)Net change in cash and cash equivalents

4.5(58.5)(63.0)(230.0)(171.5)

6. Other Data (IFRS)(Billions of yen)
FY2021

Overseas sales revenue

FY2022

FY2023(Forecast)

Variance

Variance

1,871.5

1,966.9

95.5

1,890.0(76.9)

Overseas sales revenue ratio

67.7%

67.9%

0.3%

65.2%

(2.7)%

Capital expenditures

119.5

141.1

21.6

180.0

38.9

Depreciation and amortization expenses

156.7

168.0

11.3

164.0

(4.0)

Research and development expenses

174.9

195.6

20.7

192.0

(3.6)

1,350.5

1,461.4

110.9

1,490.0

28.6

(6.1)

(3.7)

2.4

(15.0)(11.3)

Number of employees at the end of the
fiscal year

34,70333,572(1,131)

34,000428

Number of consolidated subsidiaries andequity method investees

242

232

(10)

215

(17)

210

203

(7)

186

(17)

Interest-bearing liabilities at the end of the
fiscal year
Net interest expenses

Of which: subsidiaries

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 15, 2023

Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under IFRS)
Company name:
Sumitomo Chemical Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4005
URL:
https://www.sumitomo-chem.co.jp/english/
Representative:
Keiichi Iwata, President
Inquiries:
Shunji Kobayashi, General Manager, Corporate Communications Dept.
Telephone:+81-3-5201-0200
Scheduled date of annual general meeting of shareholders:June 21, 2023
Scheduled date to commence dividend payments:
June 01, 2023
Scheduled date to file annual securities report:
June 21, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(All amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Sales revenue

Core operating
incomeOperatingincome (loss)

Net income

Millions ofyen%Millionsof yen%Millionsof yen%Millionsof yen%2,895,283

4.7

92,752 (60.5)(30,984)－(46,865)－

2,765,321

20.9

234,779

215,00356.8

186,437

173.9

59.0

Net income
attributable toowners of theparentTotal
comprehensive
incomeMillionsof yen%Millionsof yen%6,987 (95.7)

65,627(74.3)

254,867

87.5

162,130

252.1

Diluted earnings
per share

Return on equity
attributable toowners of theparentRatio of income
before taxes tototal assets

Ratio of core
operating income tosales revenue

Yen

Yen

%

%

%

4.27

4.27

0.6

0.0

3.2

99.16

－

14.5

6.1

8.5

Basic earnings
per share

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

(Percentages indicate year-on-year changes.)

Reference: Share of profit (loss) of investments accounted for using the equity method
For the fiscal year ended March 31, 2023:¥ (6,797) million
For the fiscal year ended March 31, 2022:¥ 042,180 million
Income before taxes
For the fiscal year ended March 31, 2023:¥000,231 million
For the fiscal year ended March 31, 2022:¥251,136 million*Core operating income is a gain and loss concept, reflecting recurring earning capacity, and deducts gains and losses
incurred by non-recurring factors from operating income. It includes the share of profit from investments accounted forusing the equity method.

(2) Consolidated Financial Position
Total assets
As ofRatio of equity
Equity attributable
Equity attributable
attributable to owners
to owners of theto owners of theof the parent to total
parentparent per shareassetsTotal equity

Millions of yen

Millions of yen

Millions of yen%

Yen

March 31, 2023

4,165,503

1,489,189

1,171,192

28.1

716.26

March 31, 2022

4,308,151

1,701,977

1,218,10128.3

745.03(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

111,621(19,411)(178,502)

305,844

171,715(115,421)(81,394)

365,429

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

2. Dividends
Dividends per share
1st
2nd
3rd
quarter quarter quarter
end
end
end
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)3.

YearendAnnualTotal
dividends

Dividend
payout ratio(Consolidated)

Ratio of dividends toequity attributable toowners of the parent(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

－

10.00

－

14.00

24.00

39,239

24.2

3.5

－

12.00

－

6.00

18.00

29,437

421.2

2.5

－

6.00

－

6.00

12.00

196.2

Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)

Half-year ending
September 30
Year ending
March 31

Net income
Basic earnings
Operating income attributable to owners
per shareof the parent
Millions ofMillions of
%
yen
%
yen
%
Yen

Sales revenue

Core operating
incomeMillions ofyen%Millions ofyen

1,370,000 (10.4)(30,000)－(45,000)－(30,000)－(18.35)2,900,000

40,000 (56.9)

20,000－10,000

43.1

6.12

0.2

Notes:(1) Changes in significant subsidiaries during the period: Yes
Newly consolidated:
1 company (Sumika Semiconductor Materials Texas Inc.)
Excluded:
4 companies (Sumitomo Chemical do Brasil Representações Ltda.
Urovant Sciences Ltd.
Enzyvant Therapeutics Ltd.
Altavant Sciences Ltd.)(2) Changes in accounting policies and changes in accounting estimates(i)
Changes in accounting policies required by IFRS: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(3) Number of shares issued (common shares)
(i)

(ii)

(iii)

Total number of shares issued at the end of the period (including treasury stock)
As of March 31, 2023

1,655,860,207 shares

As of March 31, 2022

1,655,446,177 shares

Number of treasury stock at the end of the period
As of March 31, 2023

20,486,616 shares

As of March 31, 2022

20,474,797 shares

Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

1,634,980,255 sharesFiscal year ended March 31, 2022

1,634,978,523 shares[Reference] Non-Consolidated Financial Results for Fiscal 2022 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results
Net sales

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

(Percentages indicate year-on-year changes.)
Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

894,389

12.2

7,853

(46.0)

69,5291.5

50,444(18.3)

797,358

23.4

14,532－

68,48879.8

61,736

48.0

Earnings
per share

Diluted earnings
per share
Yen

Yen

Fiscal year ended
30.85－
March 31, 2023
Fiscal year ended
37.76－
March 31, 2022
(Note) Figures for diluted earnings per share are not listed, because there is no potential share.

(2) Non-Consolidated Financial Position
Total assets
As of

Net assets

Ratio of shareholders’equity to total assets

Net assets per share%

Yen

Millions of yen

Millions of yen

March 31, 2023

1,772,927

377,99921.3

231.14

March 31, 2022

1,740,123

368,78921.2

225.56

Reference: Shareholders’ equity
As of March 31, 2023:¥377,999 million
As of March 31, 2022:¥368,789 million(Note) Non-consolidated results are under Japanese GAAP.

* This summary of financial results is exempt from audit procedures.
* Notes to appropriate use of forecasts and other special items:
Descriptions regarding forward-looking statements about the future performance of the Company contained in thissummary are based on information currently available to the Company and certain assumptions judged reasonable
and involve risks and uncertainties. The important factors that could cause actual results to differ materially fromthose discussed in the forward-looking statements include, but are not limited to, general economic conditions in the
Company’s markets; demand for, and competitive pricing pressure on, the Company’s products in the marketplace;rise in prices of raw materials; and fluctuations in foreign exchange rates.
For details of the forecast, please refer to "1. Summary of Operating Results (4) Outlook for the Fiscal Year Ending
March 31, 2024 (Fiscal 2023)" on page 4.

Attachments
1. Summary of Operating Results for the Fiscal Year Ended March 31, 2023 (Fiscal 2022) ꞏꞏꞏꞏꞏꞏꞏꞏ 2(1) Operating Results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(2) Consolidated Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 3(3) Consolidated Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 3(4) Outlook for the Fiscal Year Ending March 31, 2024 (Fiscal 2023) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(5) Profit and Dividend Distribution Policy and Dividends
for the Fiscal Year Ended March 31, 2023 and Ending March 31, 2024 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4
2. Basic Rationale for Selection of Accounting Standardsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4
3. Consolidated Financial Statements and Major Notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(1) Consolidated Statement of Financial Positionꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(2) Consolidated Statement of Income andConsolidated Statement of Comprehensive Income(3) Consolidated Statement of Changes in Equityꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 7ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 9(4) Consolidated Statement of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(5) Notes to Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ12(Going Concern Assumption) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12(Segment Information） ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12(Earnings per Share) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16(Impairment of Non-Financial Assets) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 17(Significant Subsequent Events) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 18

1

1. Summary of Operating Results for the Fiscal Year Ended March 31, 2023 (Fiscal 2022)(1) Operating Results
In fiscal 2022, the growth rate of the global economy fell well below that of the previous year. Although the impact of
the COVID-19 pandemic eased, economic growth was held back by such factors as global monetary tightening tocontrol inflation and a delay in the recovery of China’s economy. In Japan’s economy, too, although there were signsof a rebound, such as a recovery in consumer spending, the overall business environment remained difficult in light ofsuch factors as the slowdown in global economic growth and a rise in raw material prices.
Under these circumstances, the Group’s sales revenue for the period increased by ¥130.0 billion compared to theprior year, to ¥2,895.3 billion. In terms of profits and losses, core operating income* was ¥92.8 billion, but because oflarge impairment losses posted in the period, there was an operating loss of ¥31.0 billion. Nevertheless, net income
attributable to owners of the parent was ¥7.0 billion, because the value of the yen weakened during the fiscal year andthere was a foreign exchange gain. Results in every category of income were lower than the previous year’s levels.
*Core operating income is a gain and loss concept, reflecting recurring earning capacity, and deducts gains and losses
incurred by non-recurring factors from operating income. It includes the share of profit from investments accounted forusing the equity method.
The financial results by business segment for the fiscal 2022 are as follows:(Essential Chemicals & Plastics)
Selling prices for synthetic resins, methyl methacrylate and various industrial chemicals improved due to an increasein 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 for products in automotive
applications. As a result, sales revenue increased by ¥10.4 billion from the previous year, to ¥852.9 billion. Core
operating income suffered a loss of ¥34.2 billion, a decline in income of ¥87.7 billion from the previous year, due to a
deterioration in the financial performance of Rabigh Refining and Petrochemical Company, our equity method investee,
as well as a deterioration in margins caused by higher raw material prices and the impact of lower shipment volumes.
(Energy & Functional Materials)
Selling prices for aluminum and cathode materials increased with the improvement in market conditions. Shipmentsof separators for lithium-ion secondary batteries stayed firm. The weak yen also had a positive effect. As a result, sales
revenue increased by ¥26.1 billion, to ¥342.5 billion, from the previous year. Core operating income was ¥15.2 billion,
lower by ¥4.8 billion from the previous year, led by a decline in margins resulting from the rise in raw material prices,
despite higher income from exports due to the weak yen.
(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 photoresists, brought about an increaseof shipments. On the other hand, shipments of display-related materials declined because stay-at-home demand had
run its course, and consumer sentiment deteriorated in the face of inflation concerns. As a result, sales revenue
decreased by ¥42.5 billion from the previous year, to ¥431.2 billion, and core operating income decreased by ¥10.2
billion from the previous year, to ¥47.6 billion.
(Health & Crop Sciences)
Market prices of methionine (feed additives) declined from the previous year. On the other hand, sales of crop
protection products in South America increased significantly, and shipments in such markets as India performed well.
Moreover, the weak yen had a positive effect on sales from subsidiaries outside of Japan when converted into yen. As
a result, sales revenue increased by ¥124.6 billion from the previous year, to ¥598.4 billion. Core operating income
was ¥57.3 billion, an increase of ¥15.0 billion from in the previous year, driven by the increase in sales and higher
income from exports as a result of the weak yen, despite higher prices for raw materials.

2

(Pharmaceuticals)
In the U.S., revenue grew for the fiscal year under review owing to increased sales of products such as Orgovyx®
(therapeutic agent for advanced prostate cancer) and Gemtesa® (therapeutic agent for overactive bladder), on top of
the effects of the foreign exchange situation, despite the expiration of the exclusive marketing period of LATUDA®
(atypical antipsychotic agent) and the absence of a lump-sum upfront payment for a collaboration and license
agreement for joint development and commercialization in the previous fiscal year. On the other hand, in Japan, sales
revenues were adversely affected by the National Health Insurance (NHI) drug price revisions. As a result, sales
revenue decreased by ¥6.8 billion from the previous year, to ¥584.9 billion. Core operating income was ¥16.2 billion,a decrease of ¥45.5 billion from the previous year, as selling, general and administrative expenses and research anddevelopment expenses increased, primarily due to the effects of the foreign exchange situation, in addition to thedecrease in gross profit.
(Others)
In addition to the above five segments, the Group supplies electric power and steam, designs chemical plants andsupervises the construction of those facilities, provides transportation and warehousing, and conducts physicalproperty analysis and environmental analysis. Sales revenue of these businesses increased by ¥18.2 billion from theprevious year, to ¥85.4 billion, and core operating income decreased by ¥5.4 billion from the previous year, to ¥10.4
billion.
(2) Consolidated Financial Position
As of the end of the consolidated 2022 fiscal year, total assets decreased by ¥142.6 billion compared to the previous
year, to ¥4,165.5 billion. Goodwill and intangible assets decreased due to impairment losses, and loan receivables
were collected.
Total liabilities increased by ¥70.1 billion compared to the end of the previous year, to ¥2,676.3 billion. Interest-bearing
liabilities increased by ¥110.9 billion compared to the prior year, to ¥1,461.4 billion.
Total equity (including non-controlling interests) decreased by ¥212.8 billion compared to the end of the previous fiscal
year, to ¥1,489.2 billion, because Sumitomo Pharma Co., Ltd., a consolidated subsidiary, converted one of its
consolidated subsidiaries, Myovant Sciences Ltd., into a wholly-owned subsidiary, resulting in a decline in capitalsurplus and non-controlling interests. The ratio of equity attributable to the owners of the parent company decreased
by 0.2 percentage points compared to the end of the prior fiscal year, to 28.1%.
(3) Consolidated Cash FlowsNet cash from operating activities in fiscal 2022 was a net inflow of ¥111.6 billion, a decrease of ¥60.1 billion from theprevious fiscal year. Although there was a decline in profit before taxes for the period, there were increases in
impairment losses and other non-cash profit and loss items, as well as a decline in working capital.
Net cash from investing activities was a net outflow of ¥19.4 billion, compared to a net outflow of ¥115.4 billion in theprior fiscal year, a reduction of ¥96.0 billion, mainly because of proceeds from collection of loan receivables andproceeds from the sales and redemption of other financial assets.
This resulted in positive free cash flow of ¥92.2 billion for fiscal 2022, compared with positive free cash flow of ¥56.3
billion for fiscal 2021.
Net cash outflows from financing activities were ¥178.5 billion, mainly due to payments for acquisition of subsidiaries'
interests from non-controlling interests. The balance of cash and cash equivalents at the end of fiscal 2022 decreasedby ¥59.6 billion compared to the end of fiscal 2021, to ¥305.8 billion.

3(4) Outlook for the Fiscal Year Ending March 31, 2024 (Fiscal 2023)
The global economy is expected to experience a widening economic slowdown. It is anticipated that, along with global
economic growth slowing to below 3%, the pace of change will become faster than before, with rising uncertainty.
Amid high inflation and monetary tightening, further downside risks to the global economic outlook are considered tobe high.
On this assumption, for fiscal 2023, the Company forecasts that sales revenue will be ¥2,900.0 billion, core operating
income and operating income are projected to be ¥40.0 billion and ¥20.0 billion, respectively, and net income
attributable to owners of the parent to be ¥10.0 billion, assuming an exchange rate of ¥135.0/US$ and a naphtha priceof ¥70,000/kl.
(5) Profit and Dividend Distribution Policy and Dividends for the Fiscal Year Ended March 31, 2023 and Ending
March 31, 2024
We consider shareholder return as one of our priority management issues and have made it a policy to maintain stabledividend payments, giving due consideration to our business performance and a dividend payout ratio for each fiscal
period, the level of retained earnings necessary for future growth, and other relevant factors. We aim to maintain adividend payout ratio of around 30% over the medium to long term.
We will use our retained earnings for investment to increase the competitiveness of our core businesses and expand
our overseas businesses, and thereby seek to enhance our profitability.
Dividends are paid twice a year in principle, after closing the first half of each fiscal year and each full fiscal year.
Under our Articles of Incorporation, in order to implement the distribution of profits and retained earnings toshareholders in a timely manner, the Board of Directors is authorized to decide the level of dividends paid.
The Company has decided to pay a year-end dividend of ¥6 per share. As a result, the Company’s annual dividend
for fiscal 2022 is ¥18 per share, including an interim dividend of ¥12 per share.
The Company plans to pay an interim dividend of ¥6 per share and a year-end dividend of ¥6 per share, making theCompany’s annual dividend for fiscal 2023 ¥12 per share (dividend payout ratio of 196.2%).
2. Basic Rationale for Selection of Accounting Standards
The Group has been applying International Financial Reporting Standards (IFRS) since the fiscal year ended March
31, 2018, for the purpose of improving comparability of financial information in the global capital market and improving
its business management within the Group by standardizing the accounting treatment used.

43. Consolidated Financial Statements and Major Notes(1) Consolidated Statement of Financial Position

Millions of yen

As of March 31, 2023

As of March 31, 2022

AssetsCurrent assets:
Cash and cash equivalents￥

Trade and other receivables

305,844￥

603,161

365,429
720,422

Other financial assets

31,23723,991Inventories

744,474

651,358

Other current assets
Subtotal
Assets held for sale
Total current assets

70,67051,442

1,755,386

1,812,642

7,498

－

1,762,884

1,812,642

Non-current assets:
Property, plant and equipment

829,355

823,022

Goodwill

266,868

244,517

Intangible assets

403,996471,109

Investments accounted for using the equity method

402,980

289,968

Other financial assets

313,115474,899

Retirement benefit assets

99,25389,538Deferred tax assets

39,492

49,121Other non-current assets
Total non-current assets
Total Assets￥

547,56053,3352,402,619

2,495,509

4,165,503￥

4,308,151

,,Liabilities and Equity
Liabilities
Current liabilities:
Bonds and borrowings￥

Trade and other payables

396,903515,865￥

261,280
551,583

Other financial liabilities

74,931

84,137

Income taxes payable

31,772

24,515

Provisions

129,030

129,709

Other current liabilities

128,060

122,267

1,276,561

1,173,491

Subtotal
Liabilities directly associated with assets held for sale
Total current liabilities

1,806

－

1,278,367

1,173,491

Non-current liabilities:
Bonds and borrowings

1,064,463

1,089,190

Other financial liabilities

98,594

101,718

Retirement benefit liabilities

26,42733,091

Provisions

38,44336,502

Deferred tax liabilities

101,164

101,299

Other non-current liabilities

68,85670,883

1,397,947

1,432,683

2,676,314

2,606,174

89,81089,699Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Other comprehensive income associated with assets held for sale
Equity attributable to owners of the parent
Non-controlling interests
Total equity
Total Liabilities and Equity

￥

6

－

27,089891,552

974,382(8,349)(8,343)

197,830

135,274349－

1,171,192

1,218,101

317,997

483,876

1,489,189

1,701,977

4,165,503￥

4,308,151

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Years ended March 31,
Millions of yen

2023

2022

2,895,283￥ 2,765,321(2,074,357)(1,891,458)

820,926

873,863(878,261)(690,860)

Other operating income

69,227

10,533

Other operating expenses(36,079)(20,713)

Share of profit or loss of investments accounted forusing the equity method(6,797)42,180Operating income (loss)(30,984)

215,003

Finance income

70,83659,194

Finance expenses(39,621)(23,061)

Income before taxes

231

251,136(47,096)(64,699)(46,865)

186,437

Owners of the parent

6,987

162,130

Non-controlling interests(53,852)

24,307

Sales revenue￥

Cost of sales
Gross profit
Selling, general and administrative expenses

Income tax expenses
Net income (loss)

Net income (loss) attributable to:

Net income (loss)￥(46,865)￥

186,437

Years ended March 31,
Yen

2023

2022

Earnings per share:
Basic earnings per share

4.27

99.16

Diluted earnings per share

4.27

－

7

Consolidated Statement of Comprehensive Income

Years ended March 31,
Millions of yen

2022

2023

Net income (loss)￥(46,865)￥

186,437

Other comprehensive income：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
Total items that will not be reclassified to profit or loss

14,958(51,797)

8,670

7,549

1,126

(881)

24,754(45,129)

Items that may be subsequently reclassified to profit or loss
Cash flow hedge

8,163(5,904)

Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using the equity method

62,572

103,499

17,003

15,964

Total items that may be subsequently reclassified to profit or loss

87,738113,559

Other comprehensive income, net of taxes
Total comprehensive income

112,492

68,43065,627

254,867

84,077229,765

Total comprehensive income attributable to：
Owners of the parent
Non-controlling interests(18,450)

Total comprehensive income￥

865,627

25,102￥

254,867(3) Consolidated Statement of Changes in Equity

Year ended March 31,2023
Equity attributable to owners of the parent
Other components of equity
Remeasurementsof financial assets
measured at fairvalue through othercomprehensive
incomeRemeasurementsof defined benefit
plans

Share capital￥ 89,699

Capital surplus￥ 27,089

Retainedearnings￥ 974,382

Net income (loss)

－

－

6,987

－

－

－

Other comprehensive income

－

－

－

－

4,550

9,163

Millions of yen
Balance as of April 1, 2022

Treasury shares￥ (8,343)￥

82,682￥－

Total comprehensive income

－

－

6,987

－

4,550

9,163

Issuance of new shares

111

111

－

－

－

－

Purchase of treasury shares

－

－

－

(6)

－

－

Disposal of treasury shares

－

0

－

0

－

－

Dividends
Changes resulting fromadditions to consolidation
Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from othercomponents of equity toretained earnings
Others, net－－(42,514)

－

－

－

－

－

－

－

－

－

－

－

513

－

(505)

－

－

(88,037)

－

－

－

－

－

－

13,672－(4,509)(9,163)

－

(603)

(48)

－

－

－

Transfer to othercomprehensive income
associated with assets
held for sale

－

－

－

－

(349)

－

Transfer of negative balanceof other capital surplus－

61,440(61,440)

－

－

－

111

(27,089)

Total transactions with owners
Balance as of March 31, 2022￥

89,810￥－(89,817)￥(6)

891,552(5,363)(8,349)￥￥(9,163)81,869￥－Equity attributable to owners of the parent
Other components of equity

Balance as of April 1, 2022

Cash flow
hedges￥ (8,735)

Net income (loss)

Exchangedifferences on
conversion offoreign
operations￥ 61,327

Total￥ 135,274

Othercomprehensive
income associatedwith assets held for
sale

￥

－

Equityattributable toowners of theparent￥ 1,218,101

Non-controllinginterests￥ 483,876

Total equity￥ 1,701,977

－

－

－

－

6,987

(53,852)(46,865)

8,204

55,17377,090－77,09035,402

112,492

8,204

55,17377,090－84,077(18,450)

65,627Issuance of new shares

－

－

－

－

222

－

222

Purchase of treasury shares

－

－

－

－

(6)

－

(6)

Disposal of treasury shares

－

－

－

－

0

－

0

Dividends
Changes resulting fromadditions to consolidation
Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from othercomponents of equity toretained earnings
Others, net

－

－

－

－

(42,514)(13,962)(56,476)

－

－

－

－

－

－

－

(8)

－

(513)

－

－

－

－

－

－

－

－

(88,037)(133,467)(221,504)－－(13,672)

－

－

－

－

Other comprehensive income
Total comprehensive income

－

－

－

－

(651)

－

(651)

Transfer to othercomprehensive income
associated with assets
held for sale

－

－

(349)

349

－

－

－

Transfer of negative balanceof other capital surplus

－

－

－

－

－

－

－

Total transactions with owners
Balance as of March 31, 2023

(8)
￥

(539)

(14,534)－￥

116,500￥

197,830

9

349
￥

349

(130,986)￥

1,171,192(147,429)￥

317,997(278,415)￥

1,489,189

Year ended March 31,2022
Equity attributable to owners of the parent
Other components of equity
Remeasurementsof financial assets
measured at fairvalue through othercomprehensive
incomeRemeasurementsof defined benefit
plans

Share capital￥ 89,699

Capital surplus￥ 26,882

Retainedearnings￥ 854,538

Net income－－

162,130－－－

Other comprehensive income

－

－

－

－

(26,231)

7,129

Millions of yen
Balance as of April 1, 2021

Treasury shares￥ (8,334)￥

90,590￥－Total comprehensive income－－

162,130－(26,231)7,129

Issuance of new shares

－

－

－

－

－

－

Purchase of treasury shares

－

－

－

(9)

－

－

Disposal of treasury shares

－

0

－

0

－

－

Dividends
Changes resulting fromadditions to consolidation－－(31,065)

－

－

－

－

－

(22)

－

(5)

－

－

－

－

－

－

－

－

207

－

－

－

－

－

－

(11,199)－

18,328(7,129)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from othercomponents of equity toretained earnings
Others, net
Transfer to othercomprehensive income
associated with assets
held for saleTransfer of negative balanceof other capital surplus
Total transactions with owners
Balance as of March 31, 2022

207

－
￥

89,699￥27,089(42,286)￥(9)974,382(8,334)￥￥

18,323(7,129)82,682￥－Equity attributable to owners of the parent
Other components of equity

Balance as of April 1, 2021

Cash flow
hedges￥ (2,866)

Net income

Exchangedifferences on
conversion offoreign
operations￥ (31,279)

Total￥ 56,445

Other
comprehensive
income associatedwith assets held for
sale

￥

－

Equityattributable toowners of theparent￥ 1,019,230

Non-controllinginterests￥ 462,889

Total equity￥ 1,482,119
186,437

－

－

－

－

162,130

24,307(5,869)92,606

67,635－67,635795

68,430(5,869)92,606

67,635－

229,765

25,102

254,867

Issuance of new shares

－

－

－

－

－

－

－

Purchase of treasury shares

－

－

－

－

(9)

－

(9)

Other comprehensive income
Total comprehensive income

Disposal of treasury shares

－

－

－

－

0

－

0

Dividends
Changes resulting fromadditions to consolidation
Changes resulting from loss ofcontrol of subsidiaries
Change in interest due totransactions with
non-controlling interests
Transfer from othercomponents of equity toretained earnings
Others, net

－

－

－

－

(31,065)(11,192)(42,257)

－

－

(5)

－

(27)

(25)

(52)

－

－

－

－

－

－

－

－

－

－

－

207

7,102

7,309

－

－

11,199

－

－

－

－

－

－

－

－

－

－

－

Transfer to othercomprehensive income
associated with assets
held for sale

－

－

－

－

－

－

－

Transfer of negative balanceof other capital surplus

－

－

－

－

－

－

－

Total transactions with owners
Balance as of March 31, 2022－￥

(8,735)

11,194－￥

61,327￥135,27410(30,894)

－
￥

－

￥

1,218,101￥(4,115)(35,009)483,876￥ 1,701,977

(4) Consolidated Statement of Cash Flows
Years ended March 31,
Millions of yen

2023

Cash Flows from Operating Activities:
Income before taxes

￥

2022

231

￥ 251,136

Depreciation and amortization

167,957

156,667

Impairment loss

109,417

8,111

6,797

(42,180)(9,976)

Share of (profit) loss of investments accounted for using the equity method
Interest and dividend income(18,730)

Interest expenses

22,468

16,111

Restructuring costs

22,021

10,572

Changes in fair value of contingent consideration(3,388)(3,282)(Gain) loss on sale of property, plant and equipment(5,226)(718)(Increase) decrease in trade receivables

134,499(19,465)(Increase) decrease in inventories(79,887)(98,247)

Increase (decrease) in trade payables(63,628)(39,188)

Increase (decrease) in unearned revenue(13,717)

565

Increase (decrease) in provisions(13,373)

15,559Others, net(88,340)(9,620)Subtotal

177,101

236,045

Interest and dividends received

25,26522,258Interest paid

(21,768)(15,404)

Income taxes paid

(65,529)(68,323)

Restructuring costs paid
Net cash provided by operating activities(3,448)111,621(2,861)
171,715

Cash Flows from Investing Activities:
Net (increase) decrease in securities

6,546(7,529)(143,581)(107,467)

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

18,231

2,537

Purchase of investments in subsidiaries(17,174)－

Purchase of other financial assets(7,692)(15,768)

Proceeds from sales and redemption of other financial assets

42,974

16,540

Proceeds from collection of loan receivables

63,1991,296

Proceeds from sales of subsidiaries

30,092

153

Others, net(12,006)(5,183)

Net cash used in investing activities(19,411)(115,421)

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

100,959(3,158)Net increase (decrease) of commercial paper

35,00010,000

Proceeds from long-term borrowings

66,141

46,154

Repayments of long-term borrowings

Purchase of property, plant and equipment, and intangible assets(109,130)(77,132)

Proceeds from issuance of bonds－

34,808

Redemption of bonds－(34,259)

Repayments of finance lease obligations(16,668)(15,984)

Cash dividends paid

(42,484)(31,068)

Cash dividends paid to non-controlling interests(13,982)(11,195)

Payments for acquisition of subsidiaries' interests from non-controlling interests(199,073)(3,999)735(178,502)
27,842(58,450)
365,4294,439(81,394)
29,611
4,511
360,918

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
Net increase (decrease) in cash and cash equivalents
resulting from transfer to assets held for sale
Cash and cash equivalents at the end of the period

11(1,135)－￥ 305,844￥ 365,429

(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Segment Information)
1.

Reportable Segments

The reportable segments of the Group refer to business units for which separate financial information is available andthat are reviewed regularly at the Board of Directors meeting in order to determine the allocation of management
resources and evaluate the business performance of each business unit.
The Group divides its operations into business sectors identified by products and services, which manage
manufacturing, sales, and research in an integrated manner. Each business sector is responsible for developing
comprehensive domestic and overseas strategies with respect to its products and services, and operates its businessactivities.
Accordingly, the Group has five reportable segments based on its products and services in accordance with its
business sectors, including “Essential Chemicals & Plastics,” “Energy & Functional Materials,” “IT-related Chemicals,”“Health & Crop Sciences,” and “Pharmaceuticals.”
The major products and services of each reportable segment are as follows:

Reportable Segment

Major Products and Services

Essential Chemicals &Plastics

Synthetic resins, raw materials for synthetic fibers, various industrial chemicals,
methyl methacrylate products, synthetic resin processed products, etc.

Energy & Functional
Materials

Alumina, aluminum, specialty chemicals, additives, synthetic rubber, engineering
plastics, battery materials, etc.

IT-related Chemicals

Optical products, semiconductor processing materials, compound semiconductormaterials, touch screen sensor panels, etc.

Health & Crop Sciences

Crop protection chemicals, fertilizers, agricultural materials, household insecticides,
products for control of infectious diseases, feed additives, active pharmaceuticalingredients and intermediates, etc.

Pharmaceuticals

Pharmaceuticals for medical treatment, radiopharmaceuticals, etc.

Note: The Group changed the name of its Petrochemicals & Plastics Sector to “Essential Chemicals & Plastics
Sector” as of April 1, 2022. The new name of the sector is also used for the previous fiscal year.

2.

Reportable Segment Information

The accounting methods for each reportable segment are, in principle, identical to those used in the consolidated
financial statements. The segment profit is core operating income, which is calculated from operating income after
excluding effects from non-recurring factors.
Inter-segment sales revenue is based on market prices.

12Year ended March 31,2023

Millions of yen

Essential
Chemicals &Plastics

Energy &Functional
Materials

IT-related
Chemicals

Health &Crop
Sciences

Pharmaceuticals￥ 598,390￥ 584,873 ￥ 2,809,858

Total

Others(Note 1)

Adjustments(Note 2)

￥ 85,425￥

Consolidated

Sales revenue
Sales revenues from externalcustomers
Inter-segment sales
revenues
Total sales revenue

Segment profit (loss)(core operating income)￥ 852,916 ￥ 342,460 ￥ 431,219－ ￥ 2,895,283

5,694

17,473

465

5,654

15

29,301

87,323(116,624)－

858,610

359,933

431,684

604,044584,8882,839,159

172,748(116,624)

2,895,283￥ (34,197) ￥ 15,239 ￥ 47,601￥ 57,277￥ 16,168￥ 102,088￥ 10,405￥ (19,741)

92,752￥872,612380,186

464,615874,037

1,189,289

3,780,739

371,749

13,015

4,165,503

30,07519,324

26,57828,72443,989148,690

8,219

11,048167,957(18,384)

151

4

213

39

(17,977)

10,890290(6,797)

1,805

261

1,728

19,61086,013

109,417－－

109,417

Reversal of impairment loss

－

－

－

－

－

－

－

－

－

Investments accounted forusing the equity method

257,219

424

501

8,579

383

267,106

138,175(2,301)

402,980

Capital expenditures

30,17926,60032,79924,321

14,135

128,034

6,622

6,425

141,081

Segment assets
Other items:
Depreciation andamortization
Share of profit (loss) ofinvestments accounted forusing the equity method
Impairment loss

Note 1: “Others” represents businesses such as supplying 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, which are not included inreportable segments.
Note 2: Amounts in “Adjustments” are as follows:(1) ¥(19,741) million for segment profit (loss) in “Adjustments” includes inter-segment elimination of ¥(231) million and corporate expenses of ¥(19,510)
million unallocated to each reportable segment. Corporate expenses are mainly R&D expenses for company-wide research, which are not attributed toreportable segments.
(2) Segment assets in “Adjustments” are ¥13,015 million, which includes ¥(149,681) million in eliminations of inter-segment receivables and otherassets, and ¥162,696 million of corporate assets unallocated to each reportable segment. Corporate assets mainly consist of cash and cash
equivalents, investment securities, and the assets related to research and development activities for company-wide research.
(3) Depreciation and amortization in “Adjustments” is ¥11,048 million, mainly related to the assets arising from R&D activities for company-wide research
unallocated to each reportable segment.
(4) Investments accounted for using the equity method in “Adjustments” is ¥(2,301) million, which is eliminations of inter-segment transactions.
(5) Capital expenditures in “Adjustments” amounting to ¥6,425 million is mainly contributed by company-wide research activities that are not allocated toeach reportable segment.

13

Year ended March 31,2022

Millions of yen

Essential
Chemicals &Plastics

Energy &Functional
Materials

IT-related
Chemicals

Health &Crop
Sciences

Pharmaceuticals￥ 473,742￥ 473,778￥ 591,709 ￥ 2,698,126

Total

Others(Note 1)

Adjustments(Note 2)

￥ 67,195￥

Consolidated

Sales revenue
Sales revenues from externalcustomers
Inter-segment sales
revenues
Total sales revenue

Segment profit(core operating income)￥ 842,511 ￥ 316,386－￥2,765,321

5,421

12,359

447

7,060

15

25,30262,409(87,711)－

847,932

328,745474,189

480,838

591,724

2,723,428

129,604(87,711)2,765,321￥ 53,515 ￥ 20,258￥ 57,827￥ 42,253

61,712￥ 235,365￥15,784￥(16,370)￥ 234,779￥

908,536

356,926

501,405

841,677

1,367,378

3,975,922

335,478(3,249)4,308,151

Depreciation andamortization

26,282

19,127

26,671

26,942

41,164140,186

7,782

8,699

156,667

Share of profit of investments
accounted for using theequity method

31,044

142

64

210

9

31,46910,437274

42,180

Impairment loss

1,386

2,604

3,088

14

910

8,002

－

109

8,111

Reversal of impairment loss

－

－

4

－

－

4

－

－

4

Investments accounted forusing the equity method

153,473

273

498

8,327

1,085

163,656

128,904(2,592)289,968

Capital expenditures

25,30026,764

16,60816,818

19,638105,128

6,503

7,892

119,523

Segment assets
Other items:

Note 1: “Others” represents businesses such as supplying 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, which are not included inreportable segments.
Note 2: Amounts in “Adjustments” are as follows:(1) ¥(16,370) million for segment profit in “Adjustments” includes inter-segment elimination of ¥ 207 million and corporate expenses of ¥(16,577) million
unallocated to each reportable segment. Corporate expenses are mainly R&D expenses for company-wide research, which are not attributed toreportable segments.
(2) Segment assets in “Adjustments” are ¥(3,249) million, which includes ¥(179,330) million in eliminations of inter-segment receivables and otherassets, and ¥176,081 million of corporate assets unallocated to each reportable segment. Corporate assets mainly consist of cash and cash
equivalents, investment securities, and the assets related to R&D activities for company-wide research.
(3) Depreciation and amortization in “Adjustments” is ¥8,699 million, mainly related to the assets arising from research and development activities forcompany-wide research unallocated to each reportable segment.
(4) Investments accounted for using the equity method in “Adjustments” is ¥(2,592) million, which is eliminations of inter-segment transactions.
(5) Capital expenditures in “Adjustments” amounting to ¥7,892 million is mainly contributed by company-wide research activities that are not allocated toeach reportable segment.

14

Adjustments to income before taxes from core operating income were as follows:
Years ended March 31,
Millions of yen

2023

Core operating income￥

92,752

2022￥

234,779

Impairment loss

(109,417)(8,111)

Restructuring charges(22,021)(10,572)

Gain on sale of property, plant and equipment

5,226

718

Changes in fair value of contingent consideration

3,388

3,282

Others, net(912)(5,093)(30,984)

215,003

Finance income

70,83659,194

Finance expenses(39,621)

Income before taxes￥ 231

Operating income (loss)

15(23,061)￥

251,136

(Earnings per Share)
1. The Basis for Calculating Basic Earnings per ShareFY2022
Net income attributable to owners of the parent(millions of yen)

¥ 6,987¥ 162,130

Amounts not attributable to ordinary shareholders of
the parent (millions of yen)－－

Net income used to calculate basic earnings per
share (millions of yen)

¥ 6,987¥ 162,130

Average number of ordinary shares (thousands ofshares)1,634,980

1,634,978

Basic earnings per share (yen)2.

FY2021¥ 4.27¥

99.16

The Basis for Calculating Diluted Earnings per ShareFY2022

FY2021

Net income used to calculate basic earnings per
share (millions of yen)

¥ 6,987¥ 162,130

Adjustments by diluted ordinary shares of parent(millions of yen)－－

Adjustments by diluted ordinary sharesconsolidated subsidiaries (millions of yen)－－

Net income used to calculate diluted earnings per
share (millions of yen)

¥ 6,987¥ 162,130

Average number of ordinary shares (thousands ofshares)1,634,980

1,634,978Restricted stock compensation plan (thousands ofshares)295－

Average number of ordinary shares after dilution(thousands of shares)

1,635,275

1,634,978ofDiluted earnings per share (yen)¥ 4.27

Stocks not included in the calculation of diluted
earnings per share because they have anti-dilutive
effect

16

－

¥

－

Stock options issuedby consolidated
subsidiaries
6,130,680 shares

(Impairment of Non-Financial Assets)
Fiscal Year Ended March 31, 2023
Impairment losses recognized for the fiscal year ended March 31, 2023, are ¥109,417 million. Impairment losses arerecognized in “Cost of sales,” “Selling, general and administrative expenses” and “Other operating expenses” in the
consolidated statement of income. Details of the impairment losses by reportable segments are presented in “Segment
Information.”
The major cash-generating units (the “CGU”s) for which impairment losses are recognized are as follows:
Location
U.S.
U.S.

Usage
Patent of pharmaceuticals(KYNMOBI®)
Results of research and developmentwith respect to compounds
under development (dubermatinib)

Class of assets

Reportable segment

Millions of yen
Impairment losses

Patent, etc.

Pharmaceuticals¥ 56,538

In-process research anddevelopment

Pharmaceuticals

20,598Ehime,
Japan

Methionine production facilities

Machinery and vehicles, etc.

Health & Crop
Sciences

15,763U.S.

Patent of pharmaceuticals(LONHALA® MAGNAIR®)

Patent, etc.

Pharmaceuticals

4,781

Pharmaceuticals

3,523

Health & Crop
Sciences

3,218

Goodwill of pharmaceuticals
Goodwill(oncology area)
Property, plant and equipment andU.S.
intangible assets of postharvest
Other intangible assets, etc.
business
Details of the impairment losses
・ Patent of pharmaceuticals (KYNMOBI®) ¥56,538 million(Patent ¥55,369 million; Others ¥1,169 million)
U.S.

・ Results of research and development with respect to compounds under development (dubermatinib) ¥20,598 million(In-process research and development ¥20,598 million)
・ Methionine production facilities ¥15,763 million(Buildings and structures ¥1,595 million; Machinery and vehicles ¥14,077 million; Others ¥92 million)
・ Patent of pharmaceuticals (LONHALA® MAGNAIR®) ¥4,781 million(Patent ¥3,494 million; Others ¥1,287 million)
・ Goodwill of pharmaceuticals (oncology area) ¥3,523 million(Goodwill ¥3,523 million)
・ Property, plant and equipment and intangible assets of postharvest business (U.S.) ¥3,218 million(Other intangible assets ¥2,177 million; Others ¥1,041 million)
In the Pharmaceuticals segment, as the profitability of patent rights associated with KYNMOBI® and LONHALA®
MAGNAIR® are no longer expected, and in-process research and development (dubermatinib) has been discontinued
and its profitability is no longer expected as well, the carrying amount of these assets has been reduced to zero. In
addition, an impairment loss was recorded on goodwill of the oncology area in North America of the pharmaceuticalbusiness because the recoverable amount of the CGU was less than the carrying amount of the CGU including goodwill.
The discount rate used in the impairment test for goodwill is based on the weighted average cost of capital set by each
CGU. The pre-tax discount rate used in the impairment test of goodwill was 20.5%.
Regarding the methionine business in the Health & Crop Sciences segment, the profitability declined due to higher costs
stemming from sharply higher prices for raw materials and fuel, as well as due to a deterioration in the demand andsupply environment, which led to lower selling prices. As a result of reviewing the forecast of its earnings, the carrying
amount of methionine production facilities was written down to its value in use of ¥17,083 million. For the estimates ofvalue in use, the Company made some assumptions, such as about the sales price of methionine, after mainly
considering future supply and demand trends, and the purchase price of naphtha, which could have a significant effecton manufacturing costs. The value in use was calculated by discounting future cash flows at a discount rate of 11.2%(before taxes). In addition, regarding the postharvest business of a U.S. subsidiary whose profitability has declined
because of a deterioration in the business environment, the subsidiary’s property, plant and equipment and intangible
assets have been written down to a recoverable amount of ¥407 million.

17

Fiscal Year Ended March 31, 2022
Impairment losses recognized for the fiscal year ended March 31, 2022, are ¥8,111 million. Impairment losses arerecognized in “Cost of sales” and “Selling, general and administrative expenses” in the consolidated statement of income.
Details of the impairment losses by reportable segments are presented in “Segment Information.”
The major CGUs for which impairment losses are recognized are as follows:
Location

Usage

Class of assets

Reportable segment

Millions of yen
Impairment losses

Korea

Film touch sensor production facilities

Machinery and vehicles, etc.

IT-related Chemicals¥ 1,848

Chiba,
Japan

Synthetic rubber production facilities

Machinery and vehicles, etc.

Energy & Functional
Materials

1,713

Ehime,
Japan

Raw materials for synthetic fibers
production facilities

Machinery and vehicles, etc.

Essential Chemicals& Plastics

1,021

Details of the impairment losses
・ Film touch sensor production facilities ¥1,848 million(Machinery and vehicles ¥1,793 million; Tools, furniture and fixtures ¥37 million; Others ¥19 million)
・ Synthetic rubber production facilities ¥1,713 million(Buildings and structures ¥111 million; Machinery and vehicles ¥1,524 million; Others ¥78 million)
・ Raw materials for synthetic fibers production facilities ¥1,021 million(Buildings and structures ¥9 million; Machinery and vehicles ¥842 million; Tools, furniture and fixtures ¥4 million;
Others ¥167 million)
The Group reduced the carrying amounts to recoverable amounts of ¥3,550 million related to film touch sensor
production facilities of which the profit is no longer expected to improve due to sluggish demand. The recoverable
amounts of these assets were measured at the fair value less disposal costs. The fair value less disposal costs wascalculated by estimated selling price. Also, the Group wrote down all the carrying amount related to synthetic rubber
production facilities and raw materials for synthetic fibers production facilities of which the profitability decreased due toserious deterioration in the business environment.
(Significant Subsequent Events)
Not applicable.

18