Sumitomo Chemical : Key Figures of Consolidated Financial Results for FY2022

Key Figures of Consolidated Financial Results for FY2022

May 15th, 2023

Sumitomo Chemical Co., Ltd.

1. Financial Summary (IFRS)					(Billions of yen)
	FY2021	FY2022	Variance	FY2023	FY2024
	(Forecast)	(Revised plan)
Sales revenue	2,765.3	2,895.3	130.0	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 owners	162.1	7.0	(155.1)	10.0	100.0
of the parent
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/$)	112.39	135.50	－	135.00	130.00
Naphtha price (yen/kl)	56,600	76,600	－	70,000	70,000

*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 for using the equity method.

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

		FY2021	FY2022	Variance
Essential	Sales revenue	842.5	852.9	10.4
Chemicals &	Core operating
Plastics	53.5	(34.2)	(87.7)
income
Energy &	Sales revenue	316.4	342.5	26.1
Functional	Core operating
Materials	20.1	15.2	(4.8)
income
IT-related	Sales revenue	473.7	431.2	(42.5)
Chemicals	Core operating	57.8	47.6	(10.2)
	income
Health & Crop	Sales revenue	473.8	598.4	124.6
Sciences	Core operating	42.3	57.3	15.0
	income
	Sales revenue	591.7	584.9	(6.8)
Pharmaceuticals	Core operating
	61.7	16.2	(45.5)
	income
	Sales revenue	67.2	85.4	18.2
Others	Core operating
	15.8	10.4	(5.4)
	income
	Sales revenue	－	－	－
Adjustments	Core operating
	(16.4)	(19.7)	(3.4)
	income
	Sales revenue	2,765.3	2,895.3	130.0
Total	Core operating
	234.8	92.8	(142.0)
	income

	(Billions of yen)
FY2023	FY2024
(Forecast)	(Revised Plan)

970.0880.0

(7.0)21.0

370.0410.0

13.022.0

430.0450.0

38.044.0

610.0720.0

62.079.0

400.0490.0

(61.0)44.0

120.050.0

15.07.0

－ －

(20.0) (17.0)

2,900.0 3,000.0

40.0200.0

3. Summary of Consolidated Statement of Income (IFRS)

				(Billions of yen)
		FY2021	FY2022	Variance
Sales revenue	2,765.3	2,895.3	130.0
Core 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)
	Gain on sale of property, plant and	0.7	5.2	4.5
	equipment
	Changes in fair value of contingent	3.3	3.4	0.1
	consideration
	Others	(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)
Net income (loss) attributable to	(24.3)	53.9	78.2
non-controlling interests
Net income attributable to owners of the	162.1	7.0	(155.1)
parent

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

							(Billions of yen)
	March 31, 2022	March 31, 2023	Variance		March 31, 2022	March 31, 2023	Variance
Assets				Liabilities
Current assets	1,812.6	1,762.9	(49.8)	Trade and other payables	551.6	515.9	(35.7)
Cash and cash	365.4	305.8	(59.6)	Interest-bearing liabilities	1,350.5	1,461.4	110.9
equivalents
Trade and other	720.4	603.2	(117.3)	Others	704.1	699.1	(5.0)
receivables
Inventories	651.4	744.5	93.1	Total liabilities	2,606.2	2,676.3	70.1
Others	75.4	109.4	34.0
				Equity
Non-current assets	2,495.5	2,402.6	(92.9)	Shareholders' equity	1,082.8	973.0	(109.8)
Property, plant and	823.0	829.4	6.3	Other components of equity	135.3	198.2	62.9
equipment
Goodwill and Intangible	715.6	670.9	(44.8)	Non-controlling interests	483.9	318.0	(165.9)
assets
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)
				Ratio of equity attributable
				to owners of the parent to	28.3%	28.1%	(0.2)%
				total assets
				D/E ratio (times)	0.8	1.0	0.2

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

					(Billions of yen)
	FY2021	FY2022	Variance	FY2023	Variance
	(Forecast)
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	29.6	27.8	(1.8)	0.0	(27.8)
and cash equivalents
Net change in cash and cash equivalents	4.5	(58.5)	(63.0)	(230.0)	(171.5)

6. Other Data (IFRS)

Overseas sales revenue

Overseas sales revenue ratio

Capital expenditures

Depreciation and amortization expenses

Research and development expenses

Interest-bearing liabilities at the end of the fiscal year

Net interest expenses

Number of employees at the end of the fiscal year

Number of consolidated subsidiaries and equity method investees

Of which: subsidiaries

				(Billions of yen)
FY2021	FY2022	Variance	FY2023	Variance
(Forecast)
1,871.5	1,966.9	95.5	1,890.0	(76.9)
67.7%	67.9%	0.3%	65.2%	(2.7)%
119.5	141.1	21.6	180.0	38.9
156.7	168.0	11.3	164.0	(4.0)
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)
34,703	33,572	(1,131)	34,000	428
242	232	(10)	215	(17)
210	203	(7)	186	(17)

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:	[phone]

Scheduled date of annual general meeting of shareholders:	June 21, 2023
Scheduled date to commence dividend payments:	June 1, 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						(Percentages indicate year-on-year changes.)
																Net income		Total
		Sales revenue		Core operating		Operating				attributable to
				Net income		comprehensive
					income		income (loss)	owners of the
												income
																parent
		Millions of	%			Millions	%		Millions	%	Millions	%	Millions		%		Millions		%
		yen					of yen			of yen		of yen		of yen					of yen
	Fiscal year ended	2,895,283	4.7			92,752	(60.5)		(30,984)	－	(46,865)		－	6,987		(95.7)		65,627		(74.3)
	March 31, 2023
	Fiscal year ended	2,765,321	20.9			234,779	59.0		215,003	56.8	186,437		173.9	162,130		252.1		254,867		87.5
	March 31, 2022
		Basic earnings							Return on equity		Ratio of income				Ratio of core
				Diluted earnings	attributable to
					before taxes to		operating income to
		per share			per share		owners of the
						total assets			sales revenue
												parent
			Yen					Yen			%			%						%
	Fiscal year ended		4.27			4.27			0.6			0.0					3.2
	March 31, 2023
	Fiscal year ended		99.16					－			14.5			6.1					8.5
	March 31, 2022
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:			¥	42,180 million
	Income before taxes
	For the fiscal year ended March 31, 2023:			¥	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 for using the equity method.

(2) Consolidated Financial Position

			Equity attributable	Ratio of equity	Equity attributable
	Total assets	Total equity	attributable to owners
	to owners of the	of the parent to total	to owners of the
			parent	parent per share
			assets
As of	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	1,218,101	28.3	745.03

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from
	operating activities	investing activities
	Millions of yen	Millions of yen
Fiscal year ended	111,621	(19,411)
March 31, 2023
Fiscal year ended	171,715	(115,421)
March 31, 2022

Cash flows from

financing activities

Millions of yen

(178,502)

(81,394)

Cash and cash

equivalents at end of year

Millions of yen

305,844

365,429

2. Dividends

		Dividends per share		Total	Dividend	Ratio of dividends to
	1st	2nd	3rd			equity attributable to
	Year-		payout ratio
	quarter	quarter	quarter	Annual	dividends	owners of the parent
	end	(Consolidated)
	end	end	end			(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Fiscal year ended	－	10.00	－	14.00	24.00	39,239	24.2	3.5
March 31, 2022
Fiscal year ended	－	12.00	－	6.00	18.00	29,437	421.2	2.5
March 31, 2023
Fiscal year ending
March 31, 2024	－	6.00	－	6.00	12.00		196.2
(Forecast)

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

			Core operating			Net income		Basic earnings
	Sales revenue	Operating income	attributable to owners
			income			of the parent		per share
	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
Year ending	2,900,000	0.2	40,000	(56.9)	20,000	－	10,000		43.1	6.12
March 31

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.)

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