Sumitomo : Consolidated quarterly results FY2021 (Three-month period ended June 30,2021)

[This is an English translation prepared for reference purpose only. Should there be any inconsistency between the translation and the original Japanese text, the latter shall prevail.]

August 4, 2021

Consolidated quarterly results FY2021 (Three-month period ended June 30, 2021)

[Prepared on the basis of International Financial Reporting Standards]

Company Name:

Sumitomo Corporation

Stock Listings:

Tokyo, Nagoya and Fukuoka Stock Exchanges

Stock Exchange Code No.:

8053

URL:

https://www.sumitomocorp.com/en/jp

Representative:

Masayuki Hyodo

Tel.:

[phone]

Representative Director, President and Chief Executive Officer

Contact:

Ryuichiro Hirano

Corporate Communications Dept.

Scheduled Quarterly Securities Report Submission Date:

August 6, 2021

Scheduled Starting Date of Dividend Payment:

－

Supplementary Documents on Financial Results:

Yes

Financial Results Meeting:

Yes (for Financial Analysts)

1. Consolidated results for the three-month period ended June 30, 2021

(Remarks)

(1) Consolidated operating results

Amounts are rounded to the nearest million.

% ： change from the same period of the previous year.

Profit

Profit

Profit for the

Comprehensive

Revenues

increase/

increase/

increase/

period attributable

increase/

increase/

income

(decrease)

before tax

(decrease)

for the period

(decrease)

to owners

(decrease)

(decrease)

for the period

of the parent

Three-month period ended

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

June 30, 2021

1,265,980

22.2

137,727

－

112,607

－

107,302

－

136,927

－

June 30, 2020

1,035,728

(21.1)

(30,160)

－

(36,994)

－

(41,091)

－

(8,261)

－

Earnings per share attributable

Earnings per share attributable

to owners of the parent (basic)

to owners of the parent (diluted)

Three-month period ended

(yen)

(yen)

June 30, 2021

85.81

85.77

June 30, 2020

(32.87)

(32.87)

(2) Consolidated financial position

Total Assets

Total equity

Equity attributable to

Equity attributable to

owners of the parent

owners of the parent ratio

(millions of yen)

(millions of yen)

(millions of yen)

(%)

As of June 30, 2021

8,293,440

2,788,809

2,619,806

31.6

As of March 31, 2021

8,079,984

2,695,550

2,527,951

31.3

2. Dividends

Cash dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Year-end

Total

(yen)

(yen)

(yen)

(yen)

(yen)

Year ended March 31, 2021

－

35.00

－

35.00

70.00

Year ending March 31, 2022

－

Year ending March 31, 2022

35.00

－

35.00

70.00

(Forecasts)

[Note] Revision of the latest

dividend forecasts: None

3. Forecasts for the year ending March 31, 2022

(Remarks)

% ： change from the previous year.

	Profit for the year attributable	increase/	Earnings per share attributable
	to owners of the parent	(decrease)	to owners of the parent
	(millions of yen)	(%)	(yen)
Year ending March 31, 2022	290,000	－	232.01

[Note] 1．Revision of the latest forecasts: Yes

2．For further details please refer to page 6 "3. Forecasts for fiscal year ending March 31, 2022."

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Sumitomo Corporation

Stock Exchange code No. 8053

Notes

1. Change in significant subsidiaries (changes in "Specified Subsidiaries" accompanying changes in scope of consolidation) during this period: None
2. Changes in accounting policies and accounting estimate

(i)	Changes in accounting policies required by IFRS	None
(ii)	Other changes	None
(iii)	Changes in accounting estimate	Yes
[Note] For further details please refer to page 13 "Changes in accounting estimate."

(3) Outstanding stocks (Common stocks)				(shares)
(i)	Outstanding stocks including treasury stock	(June 30, 2021)	1,251,253,867	(March 31, 2021)	1,251,253,867
(ii)	Treasury stocks	(June 30, 2021)	1,530,655	(March 31, 2021)	1,544,207
(iii)	Average stocks during three months (Apr.-Jun.)	(June 30, 2021)	1,249,948,894	(June 30, 2020)	1,249,845,034

• This report is not subject to quarterly reviews by certified public accountants or auditing firms.
• Cautionary Statement Concerning Forward-looking Statements

This report includes forward-looking statements relating to our future plans, forecasts, objectives, expectations and intentions. The forward-looking statements reflect management's current assumptions and expectations of future events, and accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are not guarantees of future performance. Actual results may differ materially, for a wide range of possible reasons, including general industry and market conditions and general international economic conditions. In light of the many risks and uncertainties, you are advised not to put undue reliance on these statements. The management forecasts included in this report are not projections, and do not represent management's current estimates of future performance. Rather, they represent forecasts that management strives to achieve through the successful implementation of the Company's business strategies. The Company may be unsuccessful in implementing its business strategies, and management may fail to achieve its forecasts. The Company is under no obligation -- and expressly disclaims any such obligation -- to update or alter its forward-looking statements.

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Management results

1. Operating results

Revenues for the three-month period ended June 30, 2021, representing an increase of 230.3 billion yen compared to 1,035.7 previous fiscal year.

amounted to 1,266.0 billion yen, billion yen in the same period of

Gross profit totaled 235.3 billion yen increased by 62.0 billion yen compared to 173.3 billion yen in the same period of previous fiscal year. This is due mainly to increase in earnings accompanied by increase in sales volume in the silver, zinc and lead business in Bolivia. Selling, general and administrative expenses totaled 166.0 billion yen increased by 6.2 billion yen compared to 159.7 billion yen in the same period of previous fiscal year.

Share of profit (loss) of investments accounted for using the equity method totaled profit of 56.5 billion yen increased by 105.4 billion yen compared to loss of 48.9 billion yen in the same period of previous fiscal year. This is primarily owing to increase in earnings accompanied by increase in sales volume due to resume of operation from March this year and one-off profit from restructuring of project finance in the nickel mining and refining business in Madagascar, in addition to the absence of impairment loss in the same period of previous fiscal year in that business.

As a result, profit for the period attributable to owners of the parent totaled profit of 107.3 billion yen, representing an increase of 148.4 billion yen compared to loss of 41.1 billion yen in the same period of previous fiscal year.

Metal Products Business Unit posted profit of 7.2 billion yen, an increase of 7.2 billion yen compared to 0.0 billion yen in the same period of previous fiscal year. This is due mainly to increase in earnings for the overseas steel service centers and the tubular products business in the North America.

Transportation & Construction Systems Business Unit posted profit of 14.5 billion yen, an increase of

23.9 billion yen compared to loss of 9.4 billion yen in the same period of previous fiscal year. This is due mainly to increase in earnings for the leasing business and the automotive related business, in addition to the absence of one-off loss in the automotive financing business in Indonesia in the same period of previous fiscal year.

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Infrastructure Business Unit posted profit of 6.9 billion yen, a decrease of 5.2 billion yen compared to profit of 12.1 billion yen in the same period of previous fiscal year. This is due mainly to the peak-out of the progress of EPC projects in the power infrastructure business, while the overseas IPP/IWPP business has kept solid performance.

Media & Digital Business Unit posted profit of 10.5 billion yen, an increase of 0.9 billion yen compared to profit of 9.6 billion yen in the same period of previous fiscal year. This is due mainly to stable performance of major domestic group companies.

Living Related & Real Estate Business Unit posted profit of 17.6 billion yen, an increase of 11.3 billion yen compared to profit of 6.3 billion yen in the same period of previous fiscal year. This is primarily owing to large scale properties delivered in the real estate business, in addition to increase in earnings for the fresh produce business in Europe and the Americas due to market recovery in the U.S.

Mineral Resources, Energy, Chemical & Electronics Business Unit posted profit of 47.1 billion yen, an increase of 106.6 billion yen compared to loss of 59.5 billion yen in the same period of previous fiscal year. This is primarily owing to increase in earnings accompanied by increase in sales volume due to resume of operation from March this year and one-off profit from restructuring of project finance in the nickel mining and refining business in Madagascar, in addition to the absence of impairment loss in the same period of previous fiscal year in that business. Furthermore, the increase is also due to high mineral resources prices and increase in earnings for the chemical trade and the agricultural input business due to solid performance.

2. Financial position

Total assets stood at 8,293.4 billion yen, representing an increase of 213.5 billion yen compared to 8,080.0 at the previous fiscal year-end, due mainly to increase of working capital and investments accounted for using the equity method.

Equity attributable to owners of the parent totaled 2,619.8 billion yen, representing an increase of 91.9 billion yen compared to 2,528.0 at the previous fiscal year-end, due mainly to the quarterly profit attributable to owners of the parent posted in the current period, while dividend payment was executed.

Interest-bearing liabilities (net) (*1) totaled 2,330.4 billion yen increased by 30.0 billion yen compared to 2,300.4 billion yen at the previous fiscal year-end.

In consequence, the net debt-equity ratio (Interest-bearing liabilities (net)/ Equity attributable to owners of the parent) was 0.9.

4

Net cash provided by operating activities totaled 53.2 billion yen as basic profit cash flow (*2) totaled to an inflow of 110.4 billion yen because our core businesses performed well in generating cash, while working capital increased.

Net cash used in investing activities totaled 2.9 billion yen. In the three-month period ended June 30, 2021, we executed investments approx. 110.0 billion yen mainly for participation in the telecommunication business in Ethiopia and the progress in construction of the domestic biomass power plant. On the other hand, we recovered funds of approx. 60.0 billion yen due to asset replacement, including sales of the domestic real estate and textiles related business.

As a result, free cash flows, representing sum of net cash provided by operating activities and net cash used in investing activities, totaled to an inflow of 50.3 billion yen.

Net cash used in financing activities totaled 13.1 billion yen due mainly to repayments of lease liabilities and dividend payment, while execution of borrowings.

In consequence of the foregoing, cash and cash equivalents stood at 637.9 billion yen as of June 30, 2021, representing an increase of 38.9 billion yen compared to 599.0 billion yen at the previous fiscal year-end.

(*1) Interest-bearing liabilities = Sum of bonds and borrowings (current and non-current) (excluding lease liabilities)

(*2) Basic cash flow = (Gross profit + Selling, general and administrative expenses (excluding provision for doubtful receivables) + Interest expense, net of interest income + Dividends) × (1-Tax rate) + Dividend from investments accounted for using the equity method

Tax rate is 25% for the three-month period ended June 30, 2021 and 31% for the same period of previous fiscal year

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