Sumitomo Chemical Company (4005) investor relations material

Executive summary

• Core operating income and net income attributable to owners rose sharply year-on-year, surpassing forecasts, driven by strong Sumitomo Pharma sales, robust segment performance, and gains from business divestitures, particularly in Essential & Green Materials.

• Significant improvements were seen in Sumitomo Pharma, Essential & Green Materials, and Agro & Life Solutions, with notable one-time gains and robust product sales.

• Sales revenue for Q3 FY2025 was ¥1,706.3 billion, down ¥198.5 billion year-over-year, but all profit categories increased significantly, with core operating income at ¥186.8 billion and net income attributable to owners at ¥87.4 billion, up 205.7% year-over-year.

• Net income attributable to owners exceeded the third quarter forecast, but significant non-recurring losses are expected in Q4.

• Upward revisions were made to the full-year forecast, with sales revenue now expected at ¥2,300.0 billion and net income attributable to owners at ¥55.0 billion.

Financial highlights

• Q3 FY2025 sales revenue was ¥1,706.3 billion, down 10.4% year-over-year; core operating income was ¥186.8 billion, up 211.1%; operating income reached ¥180.4 billion, up 24.1% year-over-year.

• Net income attributable to owners was ¥87.4 billion, up 205.7% year-over-year, with basic EPS at ¥53.38.

• Free cash flow for Q3 FY2025 was ¥71.8 billion, down from ¥197.5 billion year-over-year.

• ROE improved to 9.0% from 3.0% in the prior year.

• Overseas sales revenue ratio increased to 71.2%.

Outlook and guidance

• Full-year FY2025 sales revenue forecast revised upward to ¥2,300.0 billion, core operating income to ¥200.0 billion, and net income attributable to owners to ¥55.0 billion.

• Year-end dividend per share increased to ¥7.5, annual dividend to ¥13.5, with a payout ratio of about 40%.

• ICT & Mobility Solutions segment profit guidance raised by ¥2 billion due to higher semiconductor material shipments.

• Profit from business activities expected to improve significantly due to structural reforms.