Sumitomo : Consolidated Annual Results FY2020 (Year ended March 31, 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.]

May 7, 2021

Consolidated Annual Results FY2020 (Year ended March 31, 2021)

[Prepared on the basis of International Financial Reporting Standards]

Company Name:	Sumitomo Corporation
Stock Exchange Code No.:	8053
Representative:	Masayuki Hyodo
	Representative Director, President and Chief Executive Officer
Contact:	Ryuichiro Hirano
	Corporate Communications Dept.

Scheduled Ordinary Shareholder's Meeting Date:	June 18, 2021
Scheduled Securities Report Submission Date:	June 18, 2021
Scheduled Starting Date of Dividend Payment:	June 21, 2021
Supplementary Documents on Financial Results:	Yes
Financial Results Meeting:	Yes (for Financial Analysts)

Stock Listings: Tokyo, Nagoya and Fukuoka Stock Exchanges

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

Tel.:[phone]

1. Consolidated results for the year ended March 31, 2021

(Remarks)

(1) Consolidated operating results

Amounts are rounded to the nearest million.

% ： change from the previous year.

Profit

Profit

Profit for the

Comprehensive

increase/

increase/

increase/

year attributable

increase/

increase/

Revenues

income

(decrease)

before tax

(decrease)

for the year

(decrease)

to owners

(decrease)

(decrease)

for the year

of the parent

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

Year ended March 31, 2021

4,645,059

(12.4)

(94,215)

－

(134,484)

－

(153,067)

－

101,145

－

Year ended March 31, 2020

5,299,814

(0.7)

251,922

(37.6)

189,517

(43.9)

171,359

(46.5)

(54,461)

－

Earnings per share attributable

Earnings per share attributable

Profit ratio to equity attributable

Profit before tax

to owners of the parent (basic)

to owners of the parent (diluted)

to owners of the parent

ratio to total assets

(yen)

(yen)

(%)

(%)

Year ended March 31, 2021

(122.42)

(122.42)

(6.0)

(1.2)

Year ended March 31, 2020

137.18

137.03

6.4

3.1

[Note] Share of profit (loss) of investments accounted for using the equity method

(FY2020)

(41,367) million yen

(FY2019)

84,791 million yen

(2) Consolidated financial position

Total Assets

Total equity

Equity attributable to

Equity attributable to

Equity per share attributable

owners of the parent

owners of the parent ratio

to owners of the parent

(millions of yen)

(millions of yen)

(millions of yen)

(%)

(yen)

As of March 31, 2021

8,079,984

2,695,550

2,527,951

31.3

2,022.83

As of March 31, 2020

8,128,596

2,692,587

2,544,133

31.3

2,036.48

(3) Consolidated cash flows

Operating activities

Investing activities

Financing activities

Cash and cash equivalents

at the end of year

(millions of yen)

(millions of yen)

(millions of yen)

(millions of yen)

Year ended March 31, 2021

467,097

(120,107)

(466,368)

599,013

Year ended March 31, 2020

326,618

(203,417)

(57,742)

710,371

2. Dividends

Cash dividends per share

Total amount of

Dividend payout

Dividend on equity

attributable to

cash dividends

ratio

First

Second

Third

Year-end

Total

per annum

(Consolidated)

owners of the parent

quarter-end

quarter-end

quarter-end

(Consolidated)

(yen)

(yen)

(yen)

(yen)

(yen)

(millions of yen)

(%)

(%)

Year ended March 31, 2020

－

45.00

－

35.00

80.00

99,941

58.3

3.8

Year ended March 31, 2021

－

35.00

－

35.00

70.00

87,476

－

3.4

Year ending March 31, 2022

－

35.00

－

35.00

70.00

38.0

(Forecasts)

[Note] Second quarter-end dividend for the year ended March 31, 2020 consists of 35.00 yen for

an ordinary dividend

and 10.00 yen for the commemorative dividend for the 100th anniversary.

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

230,000

－

184.02

1

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: Yes
   Excluded companies: 1 (EMERALD GRAIN PTY LTD)
   [Note] EMERALD GRAIN PTY LTD has been excluded from the scope of consolidation of Sumitomo Corporation due to the sale of its shares to a third party during this period.
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 15 "Changes in accounting estimate."

(3) Outstanding stocks (Common stocks)				(shares)
(i)	Outstanding stocks including treasury stock	(March 31, 2021)	1,251,253,867	(March 31, 2020)	1,250,985,467
(ii)	Treasury stocks	(March 31, 2021)	1,544,207	(March 31, 2020)	1,702,929
(iii)	Average stocks	(April 1, 2020-March 31, 2021)	1,249,855,977	(April 1, 2019-March 31, 2020)	1,248,881,174

[Note] With regard to number of stocks used in earnings per share attributable to owners of the parent, please refer page 18.

[Reference] Non-consolidated information

Non-consolidated results FY2020 (Year ended March 31, 2021)

(1) Operating results

(Remarks)

Amounts are rounded down to the nearest million. % ： change from the previous year.

Total trading

increase/

Operating

increase/

Ordinary

increase/

Net income

increase/

transactions

(decrease)

income

(decrease)

income

(decrease)

(decrease)

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

(millions of yen)

(%)

Year ended March 31, 2021

1,622,317

(19.7)

(121,971)

－

(105,187)

－

(125,560)

－

Year ended March 31, 2020

2,021,074

(14.1)

(44,579)

－

82,461

(68.7)

104,046

(59.6)

Net income per share

Net income per share

(basic)

(diluted)

(yen)

(yen)

Year ended March 31, 2021

(100.49)

－

Year ended March 31, 2020

83.29

83.23

[Note]

"Net income per share (diluted)" for the year ended March 31, 2021 is not applicable due to net loss per share.

(2) Financial position

Total assets

Net worth

Shareholders' equity ratio

Net worth per share

(millions of yen)

(millions of yen)

(%)

(yen)

As of March 31, 2021

4,174,571

1,053,351

25.2

842.21

As of March 31, 2020

4,289,019

1,224,612

28.5

979.47

[Note]

Shareholders' equity

(As of March 31, 2021)

1,052,523 million yen

(As of March 31, 2020)

1,223,631

million yen

• This report is not subject to audits 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 fiscal year ended March 31, 2021, amounted to 4,645.1 billion yen, representing a decrease of 654.8 billion yen from the previous fiscal year.

Gross profit totaled 729.5 billion yen decreased by 144.2 billion yen owing to the peak-out of the progress and recording the additional cost accompanied by delay in construction of large-scale EPC projects in addition to decrease in earnings in coal business in Australia due to lower mineral resources prices and decrease of shipment volume. Selling, general and administrative expenses increased by 1.5 billion yen to 678.9 billion yen.

Gain (loss) on fixed assets was loss of 85.6 billion yen representing a decrease of 23.9 billion yen from the previous fiscal year. This is mainly due to recording impairment loss for fresh produce business in Europe and the Americas, while impairment loss in tubular products business was decreased.

Share of profit (loss) of investments accounted for using the equity method decreased by 126.2 billion yen to loss of 41.4 billion yen, due to impairment losses posted in nickel mining and refining business in Madagascar and automotive financing business in Indonesia.

As a result, profit for the year attributable to owners of the parent totaled loss of 153.1 billion yen, representing a decrease of 324.4 billion yen from the previous fiscal year. Basic profit(*1) totaled to profit of 3.8 billion yen, representing a decrease of 218.2 billion yen from the previous fiscal year.

Metal Products Business Unit posted loss of 35.6 billion yen, an increase of 14.8 billion yen from the previous fiscal year by decreasing impairment loss in tubular products business, while the earnings in tubular products business in the North America was decreased.

Transportation & Construction Systems Business Unit posted loss of 17.5 billion yen, a decrease of

48.0 billion yen from the previous fiscal year. In addition to decrease in earnings for leasing business and automotive related business, the decrease is due to posting impairment loss and one-off loss owing to the increase of allowances caused by rescheduling of repayment in accordance with local government remedy for COVID-19 in automotive financing business in Indonesia.

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Infrastructure Business Unit posted loss of 55.6 billion yen, a decrease of 117.1 billion yen from the previous fiscal year. This is mainly due to one-off losses including impairment loss posting for IPP business in Australia and IWPP business in UAE in addition to the peak-out of the progress and recording the additional cost accompanied by delay in construction of large-scale EPC projects.

Media & Digital Business Unit posted profit of 44.3 billion yen, an increase of 6.0 billion yen from the previous fiscal year due to stable performance of major domestic group companies.

Living Related & Real Estate Business Unit posted loss of 8.4 billion yen, a decrease of 59.6 billion yen from the previous fiscal year. This is mainly due to the absence of large scale properties delivered in the previous fiscal year and recording impairment loss for fresh produce business in Europe and the Americas, while the strong performance of supermarket chains in Japan.

Mineral Resources, Energy, Chemical & Electronics Business Unit posted loss of 63.7 billion yen, a decrease of 106.9 billion yen from the previous fiscal year. This is due to decrease in earnings from coal business in Australia impacted by lower mineral resources prices and decrease of shipment volume, in addition to decrease in earnings from nickel mining and refining business in Madagascar due to the impact from the suspension, and recording impairment loss of 84.8 billion yen.

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

2. Financial position

Total assets stood at 8,080.0 billion yen, representing a decrease of 48.6 billion yen from the previous fiscal year-end despite an increase by the impact from depreciation of yen. This is mainly due to a decrease of working capital and recording impairment losses in multiple businesses.

Equity attributable to owners of the parent totaled 2,528.0 billion yen, decreased by 16.2 billion yen from the previous fiscal year-end despite an increase by the impact from depreciation of yen, due to the loss for the year attributable to owners of the parent posted in the fiscal year ended March 31, 2021 and dividend payment.

Interest-bearing liabilities (net) (*2) decreased by 168.4 billion yen from the previous fiscal year-end, to 2,300.4 billion yen.

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

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

Net cash provided by operating activities totaled 467.1 billion yen as basic profit cash flow(*3) totaled to an inflow of 130.8 billion yen because our core businesses generated cash and working capital decreased.

Net cash used in investing activities totaled 120.1 billion yen. In this fiscal year, we executed investments approx. 260.0 billion yen primarily for additional investment to Sumitomo Mitsui Finance and Leasing Company, Limited and capital investment in SCSK Corporation. On the other hand, we recovered funds of approx. 110.0 billion yen due to asset replacement, including the sale of automobile assembly business in Mexico and tight oil and shale gas projects in the U.S.

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 347.0 billion yen.

Net cash used in financing activities totaled 466.4 billion yen due primarily to repayment of the borrowings and dividend payment.

In consequence of the foregoing, cash and cash equivalents stood at 599.0 billion yen as of March 31, 2021, representing a decrease of 111.4 billion yen from the previous fiscal year-end.

(*3) Basic profit cash flow = Basic profit - Share of profit (loss) of investments accounted for using the equity method + Dividend from investments accounted for using the equity method

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