Sumitomo Chemical : FY 2023 1st Quarter (846.9 KB)

Key Figures of Consolidated Financial Results for 1st Quarter FY2023

August 2nd, 2023

Sumitomo Chemical Co., Ltd.

1. Financial Summary (IFRS)					(Billions of yen)
	FY2023	FY2022	Variance		FY2022
	1st Quarter	1st Quarter
Sales revenue	563.1	774.1	(211.0)		2,895.3
Core operating income (loss)	(53.6)	64.1	(117.7)		92.8
Operating income (loss)	(71.7)	66.3	(138.0)		(31.0)
Net income (loss) attributable to	(33.2)	70.0	(103.1)		7.0
owners of the parent
Basic earnings per share	¥ (20.27)	¥ 42.81	¥ (63.08)	¥ 4.27
Return on equity	(2.8)%	5.5%	(8.2)%	0.6%
Overseas sales revenue	65.8%	71.3%	(5.5)%	67.9%
Exchange rate (yen/$)	137.49	129.73	－	135.50
Naphtha price (yen/kl)	67,500	86,100	－	76,600

*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 for using the equity method.

2. Sales Revenue / Core Operating Income by Business Segment (IFRS)		(Billions of yen)
		FY2023	FY2022	Variance		FY2022
		1st Quarter	1st Quarter
Essential	Sales revenue	192.4	238.6	(46.2)		852.9
Chemicals &
Core operating
Plastics	(21.0)	10.0	(31.0)		(34.2)
income
Energy &	Sales revenue	73.4	86.4	(13.0)		342.5
Functional
Core operating
Materials	3.0	6.6	(3.6)		15.2
income
IT-related	Sales revenue	94.5	114.7	(20.2)		431.2
Chemicals	Core operating	6.7	15.8	(9.1)		47.6
	income
Health & Crop	Sales revenue	102.7	152.6	(49.8)		598.4
Sciences	Core operating	(7.0)	21.9	(29.0)		57.3
	income
Pharmaceuticals	Sales revenue	83.0	167.7	(84.7)		584.9
Core operating	(33.3)	14.1	(47.3)		16.2
	income
Others	Sales revenue	17.3	14.2	3.1		85.4
Core operating	2.4	3.3	(0.8)		10.4
	income
Adjustments	Sales revenue	－	－	－		－
Core operating	(4.4)	(7.5)	3.2		(19.7)
	income
Total	Sales revenue	563.1	774.1	(211.0)		2,895.3
Core operating	(53.6)	64.1	(117.7)		92.8
	income

3. Summary of Consolidated Statement of Income (IFRS)

				(Billions of yen)
		FY2023	FY2022	Variance
		1st Quarter	1st Quarter
Sales revenue	563.1	774.1	(211.0)
Core operating income (loss)	(53.6)	64.1	(117.7)
Of which equity in earnings	(12.0)	12.7	(24.7)
	Restructuring costs	(19.3)	(2.1)	(17.2)
	Others	1.1	4.3	(3.2)
Total non-recurring items	(18.1)	2.2	(20.3)
Operating income (loss)	(71.7)	66.3	(138.0)
Gain/loss on foreign currency transactions	23.8	49.8	(26.1)
Other finance income/expenses	(1.9)	(2.5)	0.6
Income (loss) before taxes	(49.9)	113.7	(163.5)
Income tax expenses	(1.3)	(28.5)	27.2
Net income (loss)	(51.2)	85.1	(136.3)
Net (income) loss attributable to	18.0	(15.1)	33.1
non-controlling interests
Net income (loss) attributable to	(33.2)	70.0	(103.1)
owners of the parent

4. Summary of Consolidated Statement of Financial Position (IFRS)

(Billions of yen)

June 30, 2023 March 31, 2023

Variance

June 30, 2023

Assets					Liabilities
Current assets	1,851.9	1,762.9	89.0		Trade and other payables	530.1
Cash and cash equivalents	323.1	305.8	17.3		Interest-bearing liabilities	1,632.6
Trade and other receivables	588.5	603.2	(14.6)		Others	661.2
Inventories	814.4	744.5	69.9		Total liabilities	2,823.9
Others	125.9	109.4	16.5
					Equity
Non-current assets	2,521.9	2,402.6	119.3		Shareholders' equity	935.8
Property, plant and equipment	859.2	829.4	29.9		Other components of equity	289.0
Goodwill and intangible
720.1	670.9	49.2		Non-controlling interests	325.1
assets
Others	942.6	902.4	40.2		Total equity	1,549.9
Total assets	4,373.8	4,165.5	208.3		Total liabilities and equity	4,373.8

March 31, 2023

Variance

515.9 14.2

1,461.4 171.2

699.1 (37.8)

2,676.3 147.5

973.0 (37.3)

198.2 90.9

318.0 7.1

1,489.2 60.8

4,165.5 208.3

Ratio of equity attributable	28.0%
to owners of the parent to
total assets
D/E ratio (times)	1.1

28.1% (0.1)%

1.0 0.1

5. Summary of Consolidated Statement of Cash Flows (IFRS)

	FY2023	FY2022	Variance
	1st Quarter	1st Quarter
Cash flows from operating activities	(131.9)	42.6	(174.5)
Cash flows from investing activities	(13.4)	46.0	(59.5)
Free cash flows	(145.4)	88.7	(234.0)
Cash flows from financing activities	142.0	11.5	130.5
Others	19.5	33.0	(13.5)
Increase (decrease) in cash and cash equivalents	16.2	133.2	(117.0)

(Billions of yen)

FY2022

111.6

(19.4)

92.2

(178.5)

27.8

(58.5)

August 2, 2023

Summary of Consolidated Financial Results

for First Quarter Fiscal Year 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:	[phone]

Scheduled date to commence dividend payments:	－
Scheduled date to file quarterly securities report:	August 8, 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 First Quarter Fiscal Year 2023 (April 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes.)

Net income

Total

Core operating

Operating

attributable to

Sales revenue

Net income

comprehensive

income

income

owners of the

income

parent

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

of yen

of yen

of yen

of yen

of yen

of yen

Three Months ended

563,143

(27.3)

(53,598)

－

(71,747)

－

(51,182)

－

(33,153)

－

74,497

(61.3)

June 30, 2023

Three Months ended

774,134

21.2

64,111

4.0

66,282

13.6

85,108

118.9

69,992

96.3

192,386

390.4

June 30, 2022

Basic earnings

Diluted earnings

per share

per share

Yen

Yen

Three Months ended

(20.27)

－

June 30, 2023

Three Months ended

42.81

－

June 30, 2022

Reference: Share of profit (loss) of investments accounted for using the equity method

For Three Months ended June 30, 2023:

¥

(12,042) million

For Three Months ended June 30, 2022:

¥

12,671 million

Income before taxes

For Three Months ended June 30, 2023:

¥

(49,862) million

For Three Months ended June 30, 2022:

¥

113,656 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 for using the equity method.

*For diluted earnings per share, although there are potential shares, they are not listed because they have an anti-dilutive effect.

(2) Consolidated Financial Position

	Total assets	Total equity
As of	Millions of yen	Millions of yen
June 30, 2023	4,373,798	1,549,939
March 31, 2023	4,165,503	1,489,189

Equity attributable to owners of the parent

Millions of yen

1,224,801

1,171,192

Ratio of equity

attributable to owners of the parent to total assets

%

28.0

28.1

2. Dividends

Dividends per share

1st quarter

2nd quarter

3rd quarter

Year-

Annual

end

end

end

end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

－

12.00

－

6.00

18.00

March 31, 2023

Fiscal year ending

－

March 31, 2024

Fiscal year ending

March 31, 2024

6.00

－

6.00

12.00

(Forecast)

Note: Revision of dividend forecasts from the latest announcement: None

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

	Sales revenue	Core operating				Net income		Basic earnings
	Operating income	attributable to
	income	per share
						owners of the parent
	Millions of	%	Millions of	%	Millions of		%	Millions of		%	Yen
Half-year ending	yen	yen	yen		yen
1,370,000	(10.4)	(30,000)	－	(45,000)		－	(30,000)		－	(18.35)
September 30, 2023
Year ending	2,900,000	0.2	40,000	(56.9)	20,000		－	10,000		43.1	6.12
March 31, 2024
Note: Revision of financial forecasts from the latest announcement: None

Notes:

(1) Changes in significant subsidiaries during the period: Yes

Newly consolidated:	－
Excluded:	1 company (Myovant Sciences Ltd.)

1. Changes in accounting policies and changes in accounting estimates
2. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
3. Number of shares issued (common shares)
4. 1. Total number of shares issued at the end of the period (including treasury stock)

As of June 30, 2023	1,655,860,207 shares
As of March 31, 2023	1,655,860,207 shares

1. Number of treasury stock at the end of the period

As of June 30, 2023	20,489,393 shares
As of March 31, 2023	20,486,616 shares

1. Average number of shares outstanding during the period

Three Months ended June 30, 2023	1,635,216,496 shares
Three Months ended June 30, 2022	1,634,969,789 shares

• 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 this summary 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 from those 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.

• 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.