General Announcement::Audited Financial Statements of group companies

SUMITOMO CORPORATION OF AMERICAS AND SUBSIDIARIES

Consolidated Financial Statements

March 31, 2021 and 2020

(With Independent Auditors' Report Thereon)

KPMG LLP

345 Park Avenue

New York, NY 10154-0102

Independent Auditors' Report

The Board of Directors

Sumitomo Corporation of Americas:

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Sumitomo Corporation of Americas (a wholly owned subsidiary of Sumitomo Corporation) and its subsidiaries (collectively, the Company), which comprise the consolidated statements of financial position as of March 31, 2021 and 2020, and the related consolidated statements of comprehensive income (loss), changes in equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management's Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Sumitomo Corporation of Americas and its subsidiaries as of March 31, 2021 and 2020, and their consolidated financial performance and their consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

New York, New York

May 17, 2021

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SUMITOMO CORPORATION OF AMERICAS AND SUBSIDIARIES

Consolidated Statements of Financial Position

March 31, 2021 and 2020 (In millions of U.S. dollars)

Assets		2021	2020
Current assets:
Cash and cash equivalents	$	666	992
Accounts receivable, net of allowance for doubtful accounts
of $29 and $20, respectively		1,305	1,456
Inventories (note 7)		1,089	1,587
Intracompany cash management receivable (note 8)		55	188
Advance payments to suppliers		67	29
Current tax assets		99	101
Prepaid expenses and other current assets		76	80
Asset held for distribution to owners of the parent company (note 4)		96		-
Total current assets		3,453	4,433
Long-term receivables:
Third party		141	158
Related parties (note 5)		202	201
Property and equipment, net (note 9)		1,288	1,424
Investment property (note 10)		401	404
Investments accounted for using the equity method (notes 4 and 5)		1,814	1,974
Goodwill (note 11)		120	107
Other intangible assets (note 11)		232	379
Other assets		268		179
Total noncurrent assets		4,466		4,826
Total assets	$	7,919	9,259

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SUMITOMO CORPORATION OF AMERICAS AND SUBSIDIARIES

Consolidated Statements of Financial Position

March 31, 2021 and 2020 (In millions of U.S. dollars)

Liabilities and Equity		2021	2020
Current liabilities:
Notes payable (note 12)	$	235	770
Current portion of long-term debt (note 13)		308	338
Accounts payable:
Third party		721	702
Related parties (notes 5 and 8)		151	188
Advances received		15	11
Accrued expenses and other current liabilities		469		581
Total current liabilities		1,899	2,590
Long-term liabilities:
Long-term debt:
Third party (note 13)		1,646	1,687
Related party (note 13)		3	300
Other long-term liabilities		373	394
Deferred income taxes (note 15)		43		122
Total noncurrent liabilities		2,065	2,503
Equity:
Common stock, no par value. Authorized-300,000 shares;
issued and outstanding-187,650 shares		411	411
Additional paid-in capital (note 16)		1,974	1,974
Retained earnings		1,420	1,683
Other components of equity (note 16)		(64)		(102)
Equity attributable to owners of the parent company		3,741	3,966
Noncontrolling interests		214		200
Total equity		3,955		4,166
Total liabilities and equity	$	7,919	9,259

See accompanying notes to consolidated financial statements.

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