May 15, Sumitomo Chemical Co., Ltd.

Transcription

1 May 15, 2006 Sumitomo Chemical Co., Ltd.

2 (Cautionary Statement) Statements made in this material with respect to Sumitomo Chemical s current plans, estimates, strategies and beliefs that are not historical facts are forward-looking statements about the future performance of Sumitomo Chemical. These statements are based on management s assumptions and beliefs in light of the information currently available to it, and involve risks and uncertainties. The important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, general economic conditions in Sumitomo Chemical s markets; demand for, and competitive pricing pressure on, Sumitomo Chemical s products in the marketplace; Sumitomo Chemical s ability to continue to win acceptance for its products in these highly competitive markets; and movements of currency exchange rates.

3 1. Consolidated Financial Results for FY2005 Ended March 31, Financial Analysis Operating Income /EBITDA 18 Financial Summary 2 ROA / ROE 19 Net Sales by Segment 3 Shareholders Equity to Total Operating Income by Segment 4 Assets / Interest-Bearing Elements of Major Costs 5 Debt Balance 20 Special Gains / Losses 6 Consolidated Balance Sheets 7 Consolidated Statements of Net Sales / Net Income 17 Cash Flows 8 Capital Expenditures 22 Major Subsidiaries 9 Depreciation & Amortization Outlook for FY2006 Reference ReferenceSegment Information FY2005 Research & Development Expenses 24 Financial Summary 11 Outlook for FY2006 Net Sales by Segment 12 Estimated Capital Expenditure 25 Operating Income by Segment 13 Estimated Depreciation & Elements of Major Costs 14 Amortization 26 Consolidated Statements of Estimated Research & Cash Flows 15 Development Expenses 27

4 Sumitomo Chemical Co., Ltd.

5 Unit; billions of yen FY2005 FY2004 Difference Grow th Net Sales 1, , % Operating Income % (Equity in earnings of affiliates, included in ordinary income) (26.8) (26.7) (0.1) (0.4%) Ordinary Income % Net Income % ROE 14.1% 12.0% Naphtha Price (yen/kl) 42,400 32,200 Exchange Rate (yen/us$)

6 FY2005 FY2004 Difference Growth Unit; billions of yen Sales Price Variance Shipping Volume Variance Basic Chemicals % Petrochemicals % Fine Chemicals % IT-related Chemicals % Agricultural Chemicals % Pharmaceuticals % Others % Total 1, , % Overseas Operations %

7 Operating Income Basic Chemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Unit ; billions of yen Petrochemicals Pharmaceuticals Others Total FY FY Difference Price Variance Sales Price Variance Purchase Price Variance Cost Variance VC FC Shipping Volume Variance Total

8 Sumitomo Chemical Co., Ltd. Unit ; billions of yen FY2005 FY2004 Difference Labor Costs Maintenance Costs Depreciation and Amortization Research & Development Expenses Capital Expenditures Employees (at March 31) 24,160 20,195 3,965

9 Unit billions of yen FY2005 FY2004 Difference Gain on change in interests in consolidated subsidiary Gain on sale of securities Gain on business transfer Gain on sale of property,plant and equipment Allowance for doubtful receivables Special Gains Expenses for subsidiary merger Restructuring charges Impairment loss on fixed assets Special Losses Special Gains / Losses

10 Unit ; billions of yen 31-Mar Mar Mar Mar-05 Current Assets Liabilities 1, Cash and cash equivalents Trade notes and accounts Trade notes and accounts Short-term debt Inventories Long-term debt due within one year Others Long-term debt due after one year Non-current Assets 1, Others Property, plant and equipment Minority interests in consolidated subsidiaries Intangible assets Shareholders' equity Investment securities Common stock Others Capital surplus Retained earnings Revaluation reserve Unrealized gains on investment securities Foreign currency translation adjustments Treasury stock, at cost Total 2, ,648.8 Total 2, ,648.8 Interest-bearing debt balance

11 Sumitomo Chemical Co., Ltd. Unit; billions of yen FY2005 FY2004 Difference Cash flows from operating activities Cash flows from investing activities Free cash flows Cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Increase in cash due to merger of consolidated subsidiaries Cash and cash equivalents at end of year

12 Unit; billions of yen Company The Polyolefin Com pany (Singapore) Petrochem ical Corporation of Singapore Net Sales FY2005 FY Operating Income Status Improved due to higher market price Slightly decreased because of steep rises in feedstock prices Dongwoo Fine-Chem increased because of increase in shipments led by expanded production capacity and cost reduction Valent U.S.A. and Subsidiaries Improved owing to increased shipments of herbicides

13 Sumitomo Chemical Co., Ltd.

14 FY2006 (estimated) FY2005 Difference Growth Net Sales 1, , % Operating Income % (Equity in earnings of affiliates, included in ordinary income) (18.0) (26.8) -8.8 (-32.9%) Ordinary Income % Net Income % (Adjusted net Income) * see the note below % ROE 10.7% 14.1% Naphtha Price (yen/kl) 52,000 42,400 Exchange Rate (yen/us$) Unit; billions of yen

15 Net Sales by Segment FY2006 (estimated) FY2005 Difference Growth Sales Price Variance Unit; billions of yen Shipping Volume Variance Basic Chemicals % Petrochemicals % Fine Chemicals % IT-related Chemicals % Agricultural Chemicals % Pharmaceuticals % Others % Total 1, , %

16 Unit; billions of yen Basic Chemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Petrochemicals Pharmaceuticals Others Total Operating Income FY2006 (estimated) FY Difference Price Variance Sales Price Variance Purchase Price Variance Cost Variance VC FC Shipping Volume Variance Total

17 Unit ; billions of yen FY2006 (estimated) FY2005 Difference Labor Costs Maintenance Costs Depreciation and Amortization Research & Development Expenses Capital Expenditures Employees (at March 31) 24,900 24,

18 Unit; billions of yen FY2006 (estimated) FY2005 Difference Cash flows from operating activities Cash flows from investing activities Free cash flows Cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Interest-Bearing Debt Balance

19 Sumitomo Chemical Co., Ltd.

20 Billions of yen Net Sales (Estimated) Billions of yen Net Income (Estimated)

21 Billions of yen Operating Income (Estimated) Billions of yen EBITDA (Estimated)

22 ROA (Estimated) ROE (Estimated)

23 Shareholders Equity to Total Assets Billions of yen Interest-Bearing Debt Balance (Estimated) (Estimated)

24 Sumitomo Chemical Co., Ltd.

25 Sumitomo Chemical Co., Ltd. Unit; billions of yen FY2005 FY2004 Difference Basic Chemicals Petrochemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Pharmaceuticals Others Total

26 Sumitomo Chemical Co., Ltd. Unit; billions of yen FY2005 FY2004 Difference Basic Chemicals Petrochemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Pharmaceuticals Others Total

27 Unit; billions of yen FY2005 FY2004 Difference Basic Chemicals Petrochemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Pharmaceuticals Others Total Corporate R&D expenses are allocated to each business segments.

28 Unit; billions of yen FY2006 (estimated) FY2005 Difference Basic Chemicals Petrochemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Pharmaceuticals Others Total

29 Unit; billions of yen FY2006 (estimated) FY2005 Difference Basic Chemicals Petrochemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Pharmaceuticals Others Total

30 Unit; billions of yen FY2006 (estimated) FY2005 Difference Basic Chemicals Petrochemicals Fine Chemicals IT-related Chemicals Agricultural Chemicals Pharmaceuticals Others Total Corporate R&D expenses are allocated to each business segments.