Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2021
(Based on Japanese GAAP)

February 9, 2022

Company name:NIHON NOHYAKU CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

4997
President

URL

https://www.nichino.co.jp/
Yosuke Tomoi

Inquiries:

General Manager of General Affairs & Legal
Motohiro Nagai
Department

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:TEL+81-3-6361-1400

February 9, 2022–
No
No
(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2021
51,283
22.7
3,193
64.8
3,246 154.7
2,514
80.5
Nine months ended December 31, 2020
41,804
–
1,937
–
1,274
–
1,393
–
(Note) Comprehensive income: Nine months ended December 31, 2021: 2,650 million yen [–%]
Nine months ended December 31, 2020: (399) million yen [–%]
Earnings per share

Diluted earnings per share

Yen
32.00
17.71

Nine months ended December 31, 2021
Nine months ended December 31, 2020

Yen
–
–

The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. from the
beginning of the first quarter of the fiscal year under review, and figures for the third quarter of the fiscal year ending March 31, 2022 arepresented after application of such accounting standard, etc.
(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
Millions of yen%
As of December 31, 2021
106,698
64,26559.2
As of March 31, 2021
107,969
62,071
56.4(Reference) Equity: As of December 31, 2021: 63,134 million yen
As of March 31, 2021: 60,924 million yen
The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. from the
beginning of the first quarter of the fiscal year under review, and figures for the third quarter of the fiscal year ending March 31, 2022 arepresented after application of such accounting standard, etc.

1

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
7.50
7.50

Yen
–
–

Yen
7.50

Yen
15.00

7.50

15.00

Year ended March 31, 2021
Year ending March 31, 2022
Year ending March 31, 2022 (Forecast)

Total(Note) Revision to the forecast of cash dividends announced most recently: No
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
81,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
13.2
5,400 (22.7)
5,200
(9.1)
3,600 (17.1)
45.81(Note) Revision to the forecast of financial results announced most recently: No
4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2021

81,967,082 shares As of March 31, 2021

81,967,082 shares

Number of treasury shares at the end of the period
As of December 31, 2021

3,542,756 shares As of March 31, 2021

3,330,355 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2021

78,593,138 shares Nine months ended December 31, 2020

78,681,819 shares

Shares of the Company held by the share grant trust for the Company’s officers are included in treasury shares which are deducted from thecalculation of the number of treasury shares at the end of the period and the average number of shares during the period.
* These quarterly financial results are outside the scope of quarterly review by certified public accountants or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain
assumptions deemed reasonable. Actual results may differ significantly from these forecasts due to various factors.

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Table of Contents
1. Qualitative information on quarterly financial results .................................................................................... 4(1) Explanation of operating results ................................................................................................................. 4(2) Explanation of financial position ............................................................................................................... 5(3) Explanation of the forecast of consolidated financial results and other forward-looking information ...... 5
2. Quarterly consolidated financial statements and primary notes ..................................................................... 6(1) Quarterly consolidated balance sheets ....................................................................................................... 6(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive
income ........................................................................................................................................................ 8(3) Notes to quarterly consolidated financial statements ............................................................................... 10(Notes on going concern assumption) ................................................................................................. 10(Notes in case of significant changes in shareholders’ equity) ............................................................ 10(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) ........................................................................................................................................... 10(Changes in accounting policies) ........................................................................................................ 10(Additional information) ..................................................................................................................... 11(Segment information, etc.) ................................................................................................................. 113

1. Qualitative information on quarterly financial results(1) Explanation of operating results
During the nine months ended December 31, 2021, the Japanese economy showed signs of social and economic
activities returning to normal following the progress of COVID-19 vaccine rollout, as exemplified by a recovery trend in
production activities of companies and solid consumer spending. However, it is too early to predict when the pandemic
will end due in part to the recent rapid spread of the new variant, and economic prospects are still uncertain.
Under such circumstances, the Group engaged in the initiatives of the new, three-year medium-term management
plan, “Ensuring Growing Global 2,” which began in the current fiscal year, and has been aiming to improve profitability,
establish technological innovation and next-generation businesses, and sustainably enhance corporate value.
For the nine months ended December 31, 2021, net sales amounted to 51,283 million yen (up 9,478 million yen or
22.7% year-on-year), mainly thanks to the strong performance of our core business, the agrochemical business, inoverseas countries. In terms of profits, operating profit came to 3,193 million yen (up 1,255 million yen or 64.8% yearon-year), ordinary profit was 3,246 million yen (up 1,971 million yen or 154.7% year-on-year), and profit attributable toowners of parent was 2,514 million yen (up 1,121 million yen or 80.5% year-on-year).
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020), etc. from the beginning of the first quarter of the fiscal year under review. Accordingly, comparisons with thesame period of the previous fiscal year are based on amounts calculated using different standards. For details on theeffects of the application of the Accounting Standard for Revenue Recognition, etc. on the financial position andoperating results, see “2. Quarterly consolidated financial statements and primary notes, (3) Notes to quarterly
consolidated financial statements, (Changes in accounting policies) and (Segment information, etc.), Segment
information II. 2. Matters pertaining to changes in reportable segments.”
Additionally, effective from the first quarter of the fiscal year under review, Tama Kagaku Kogyo Co., Ltd. has been
included in the scope of application of the equity method.
The state of the reportable segments during the nine months ended December 31, 2021 is as follows.
[Agrochemical business]
Regarding agrochemical sales in Japan, the Company worked to promote and expand the sales of core internallydeveloped products such as tiadinil, a fungicide for paddy rice (product name: “V-GET”), and fungicide pyraziflumid for
horticultural use (product name: “Parade”). However, overall sales in Japan declined year-on-year due in part to thediscontinuation of certain products in the previous fiscal year. The “farm field management” and “language selection”
functions were added to the smartphone application “Leime AI Disease, Pest & Weed Analysis” provided by theCompany free of charge, as we strive to provide solutions for producers through smart agriculture.
For overseas agrochemical sales, in Asia, owing to the clearing of distribution inventories remaining from the past
years, sales of insecticide flubendiamide in India, and sales of isoprothiolane, a fungicide for paddy rice in China, wereboth strong. In Europe, Nichino Europe Co., Ltd. reported an increase in net sales due to increased sales of acaricide
fenpyroximate and tebufenpyrad owing to a greater-than-usual tick infestation. In South America, Sipcam Nichino Brasil
S.A. recorded a growth in net sales in Brazil on the back of a rebound in demand for agrochemicals and also led by thestrong sales of flubendiamide, which was launched in the previous fiscal year. In North America, Nichino America, Inc.
reported an increase in net sales due to growing demand for fungicide flutolanil in the peanut area following the frequent
occurrence of southern blight in addition to an expansion of peanut acreage. Accordingly, overseas agrochemical sales
overall exceeded the levels of the same period of the previous fiscal year.
As a result of the above, net sales of the agrochemical business amounted to 47,390 million yen (up 10,298 million
yen or 27.8% year-on-year) and operating profit amounted to 2,650 million yen (up 1,648 million yen or 164.5% yearon-year).
[Chemicals other than agrochemicals business]
In the chemicals business, AgriMart Corporation experienced robust sales of termiticides due mainly to the growth in thenumber of new housing starts. Meanwhile, in the pharmaceutical business, sales of topical antifungal drug luliconazole
were sluggish due in part to a decrease in the number of outpatients in medical institutions caused by the spread of
4

COVID-19.
As a result of the above, net sales of the chemicals other than agrochemicals business amounted to 2,792 million
yen (down 618 million yen or 18.1% year-on-year) and operating profit amounted to 911 million yen (down 349 million
yen or 27.7% year-on-year).

(2) Explanation of financial position
Total assets as of December 31, 2021 decreased by 1,271 million yen from the end of the previous fiscal year to 106,698
million yen. This was due primarily to decreases in cash and deposits and notes and accounts receivable exceeding theincreases in inventories and investment securities.
Total liabilities as of December 31, 2021 decreased by 3,464 million yen from the end of the previous fiscal year to42,433 million yen. This was due primarily to a decrease in short-term borrowings exceeding the increase in trade
payables.
Net assets as of December 31, 2021 increased by 2,193 million yen from the end of the previous fiscal year to64,265 million yen. This was due primarily to an increase in retained earnings resulting from profit attributable toowners of parent exceeding the decrease in accumulated other comprehensive income including foreign currencytranslation adjustment.
(3) Explanation of the forecast of consolidated financial results and other forward-looking information
There have been no changes to the forecast of consolidated financial results for the fiscal year ending March 31, 2022,
announced on August 10, 2021.

5

2. Quarterly consolidated financial statements and primary notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits

19,27813,315

Notes and accounts receivable - trade32,460––24,421

Electronically recorded monetary claims - operating

1,817

1,015

Merchandise and finished goods

16,00920,530566

1,139

Raw materials and supplies

5,482

11,268

Other

2,990

4,169

Allowance for doubtful accounts

(180)

(276)

78,42575,583

Buildings and structures, net

4,449

4,265

Machinery, equipment and vehicles, net

3,567

3,622

Land

5,906

5,921

728

919

14,651

14,729Goodwill

2,812

2,712

Other

1,306

1,317

Total intangible assets

4,119

4,029

Investment securities

5,805

6,867

Other

5,315

5,865

Allowance for doubtful accounts

(347)

(378)

Total investments and other assets

10,773

12,35529,544

31,114

107,969

106,698

Notes and accounts receivable - trade, and contract assets

Work in process

Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

6

(Millions of yen)
As of March 31, 2021

As of December 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

13,827

16,881

Electronically recorded obligations - operating

1,221

1,065

Short-term borrowings

10,901

6,185

Current portion of bonds payable

193

202

Income taxes payable

410

817

Provision for bonuses

757

416

Provision for environmental measures

508

28

Other provisions

78–

Electronically recorded obligations - non-operating

49

243

Other

7,374

6,744

Total current liabilities

35,32332,584

Bonds payable

1,381

1,223

Long-term borrowings

6,348

5,784

Retirement benefit liability

691

741

Other provisions

98

120

Other

2,054

1,978

Total non-current liabilities

10,574

9,848

45,89742,433

Share capital

14,93914,939

Capital surplus

15,071

15,071Retained earnings

34,992

37,174

Treasury shares(1,801)(1,906)

Total shareholders’ equity

63,201

65,279893

780

Foreign currency translation adjustment(4,253)(3,960)Remeasurements of defined benefit plans

1,083

1,036

Total accumulated other comprehensive income(2,276)(2,144)Non-controlling interests

1,146

1,130

Total net assets

62,07164,265

107,969

106,698

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total liabilities and net assets

7

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income(Millions of yen)
Nine months ended

Nine months ended

December 31, 2020

December 31, 2021

Net sales

41,804

51,283

Cost of sales

28,094

34,972Gross profit

13,70916,310

Selling, general and administrative expenses

11,772

13,116

Operating profit

1,937

3,193

Interest income

56

48

Dividend income

8073

Rental income from real estate

65

83

Share of profit of entities accounted for using equity method

404

611

Gain on valuation of derivatives

337

–

Other

119

74

1,064

890

295

331

1,304

404

–

4

128

98

1,728

838

1,274

3,246

1,689

209

–

32

1,689

242

39

18

1,390

28

–

3

1,429

50

1,534

3,437

Income taxes

731

970

Profit802

2,467

Loss attributable to non-controlling interests

(590)

(47)

Profit attributable to owners of parent

1,393

2,514

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Environmental expenses
Other
Total extraordinary losses
Profit before income taxes

8Quarterly consolidated statements of comprehensive income(Millions of yen)

ProfitNine months ended

Nine months ended

December 31, 2020

December 31, 2021
802

2,467

112

(112)

(1,288)254

Remeasurements of defined benefit plans, net of tax

(16)

(47)

Share of other comprehensive income of entities accounted
for using equity method

(10)

90

(1,201)

183

(399)

2,650

Comprehensive income attributable to owners of parent

686

2,646

Comprehensive income attributable to non-controllinginterests(1,085)

4

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to9(3) Notes to quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)(Tax expenses)
The Company calculates tax expenses by producing a reasonable estimate of the effective tax rate after applying taxeffect accounting to profit before income taxes for the fiscal year under review, and then multiplying profit before
income taxes by this estimated effective tax rate.
(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020), etc. effective from the beginning of the first quarter of the fiscal year under review, and recognizes revenue inthe amount expected to be received in exchange for promised goods or services at the time when the control of thesegoods or services is transferred to the customer.
Accordingly, with regard to certain transactions in which the Group acts as an agent in providing the goods orservices to a customer, while the Company had previously recognized the gross amount of consideration to bereceived from the customer as revenue, it now recognizes revenue at the net amount after deducting the amount to be
paid to the supplier of the goods from the amount to be received from the customer. Additionally, with regard to
charged supplying transactions, while the Company had previously recognized the extinguishment of the charged
supplied goods, the Company has shifted to the method by which it does not recognize extinguishment in cases where
it assumes the obligation to repurchase the supplied goods.
The application of the Accounting Standard for Revenue Recognition, etc. is subject to the transitional treatment
provided for in the proviso to Paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative
effect of the retrospective application of the new accounting policy, assuming it has been applied to periods prior to
the beginning of the first quarter of the fiscal year under review, is added to or subtracted from retained earnings at the
beginning of the first quarter of the fiscal year under review, and the new accounting policy is applied from the said
beginning balance.
As a result, for the nine months ended December 31, 2021, net sales and cost of sales decreased by 205 million
yen and 201 million yen, respectively.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable trade,” which was presented under “Current assets” in the consolidated balance sheet for the previous fiscal year, isinstead included in “Notes and accounts receivable - trade, and contract assets” from the first quarter of the fiscal year
under review. In accordance with the transitional treatment provided for in Paragraph 89-2 of the Accounting Standard
for Revenue Recognition, the Company has not reclassified financial statements for the previous fiscal year by using
the new presentation method.
(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019), etc. effective from the beginning of the first quarter of the fiscal year under review and in accordance with thetransitional treatment provided for in Paragraph 19 of the Accounting Standard for Fair Value Measurement andParagraph 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), theCompany will apply the new accounting policy prescribed by the Accounting Standard for Fair Value Measurement,
etc. into the future. This application has no impact on the quarterly consolidated financial statements.

10(Additional information)(Accounting estimates related to the impact of the spread of COVID-19)
There have been no material changes to the statements in the Annual Securities Report (Additional Information) for
the fiscal year ended March 31, 2021 regarding the accounting estimates related to the impact of the spread of
COVID-19 and the assumptions based on such estimates for the nine months ended December 31, 2021.
(Segment information, etc.)[Segment information]
I For the nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
Agrochemical other thanagrochemicals
Businessbusiness

Subtotal

Others(Note 1)

Total

Amountrecorded inquarterly
Adjustment
consolidated(Note 2)statements ofincome(Note 3)

Net sales
Net sales to outside
37,091
3,411
40,502
1,301
41,804–41,804
customers
Inter-segment net
12
0
13
701
714
(714)
–
sales or transfers
Total
37,104
3,411
40,516
2,003
42,519(714)
41,804
Segment profit
1,002
1,261
2,263
253
2,516
(579)
1,937
(Notes) 1. “Others” include business segments that are not included in reportable segments such as greenification andgardening construction, real estate leasing, logistics services, and agrochemical residue analysis.
2. The minus 579 million yen adjustment for segment profit includes minus 579 million yen in unallocatedcorporate expenses. Corporate expenses consist principally of general administrative expenses that are not
attributable to reportable segments.
3. Segment profit was adjusted based on operating profit reported on the consolidated statements of income forthe corresponding period.

II For the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
1. Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
Agrochemical other thanagrochemicals
Businessbusiness

Subtotal

Others(Note 1)

Total

Amountrecorded inquarterly
Adjustment
consolidated(Note 2)statements ofincome(Note 3)

Net sales
Net sales to outside
47,3902,792
50,183
1,099
51,283–51,283customers
Inter-segment net
13
0
13
734
748
(748)
–
sales or transfers
Total
47,4042,793
50,197
1,834
52,031(748)
51,283
Segment profit
2,650
911
3,562
231
3,794
(600)
3,193
(Notes) 1. “Others” include business segments that are not included in reportable segments such as greenification andgardening construction, real estate leasing, logistics services, and agrochemical residue analysis.
2. The minus 600 million yen adjustment for segment profit includes minus 600 million yen in unallocatedcorporate expenses. Corporate expenses consist principally of general administrative expenses that are not
attributable to reportable segments.

11

3. Segment profit was adjusted based on operating profit reported on the consolidated statements of income forthe corresponding period.

2. Matters pertaining to changes in reportable segments
The Company has applied the Accounting Standard for Revenue Recognition etc., effective from the beginning of thefirst quarter of the fiscal year under review, as stated in “Changes in accounting policies,” and due to the change in
the accounting treatment of revenue recognition, it has similarly changed the method of calculating the profit (loss)of business segments.
As a result of this change, for the nine months ended December 31, 2021, net sales of the agrochemical business,
net sales of the chemicals other than agrochemicals business, and net sales of other business decreased by 101
million yen, 81 million yen, and 22 million yen, respectively, compared to the amounts calculated using the previous
method.

12