Posting of Non-operating Expense (Foreign Exchange Loss)

August 3, 2016 Sumitomo Seika Chemicals Company, Limited

Sumitomo Seika Chemicals Company, Limited ("the Company") announces that it has posted non-operating expense (foreign exchange loss) for the three months ended June 30, 2016 (fiscal 2016) as follows:

1. Non-operating Expense (Foreign Exchange Loss)

During the three months ended June 30, 2016 (fiscal 2016), the Company has incurred a foreign exchange loss in the amount of 1.358 billion yen as non-operating expense due to fluctuations in foreign exchange rates.

The loss consists mainly of unrealized loss on the Company group's foreign currency receivables and payables, denominated in foreign currencies, at the end of the three months ended June 30, 2016 which were revaluated at the exchange rates of the same date. Therefore, the amount of the loss may change with future fluctuations in foreign exchange rates.

For the impact on the Company's financial performance of the above non-operating expense (foreign exchange loss), please refer to "Consolidated Financial Results for the Three Months Ended June 30, 2016 (Q1 FY2016)" which was released today.

No revision has been made on the Company's consolidated financial forecast which was announced on May 11, 2016. Should there occur any need for revision of the financial forecast in the future, the Company will make an announcement immediately.