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 Fiscal Period Ended March 31, 2020
(Based on Japanese GAAP)
July 9, 2020
Company name:NIHON NOHYAKU CO., LTD.

Stock exchange listing: Tokyo
Stock code:
4997
Representative:
Inquiries:

URL

https://www.nichino.co.jp/President
Yosuke Tomoi
General Manager of General Affairs & Legal
Motohiro Nagai
Department

Date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 26, 2020
August 5, 2020

Date of commencement of dividend payments:
Preparation of supplementary material on financial results:

June 29, 2020
No

Holding of financial results meeting:

NoTEL+81-3-6361-1400(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the fiscal period ended March 31, 2020 (from October 1, 2019 to March 31, 2020)(1) Consolidated operating results
Net sales
Fiscal period ended March 31, 2020
Year ended September 30, 2019

Millions of yen
35,67463,260Operating profit%–
3.3

Millions of yen
4,005
3,318

Diluted earnings pershare
YenYen
18.75
–
34.07
–

Earnings per share
Fiscal period ended March 31, 2020
Year ended September 30, 2019%–(20.5)Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
4,004
–
1,477
–
2,984 (18.3)
2,684
7.1
Ordinary
profit/total assets%
4.1
3.1

Profit/equity%
2.6
4.8

Operatingprofit/net sales%11.2
5.2(2) Consolidated financial position
Total assets
As of March 31, 2020
As of September 30, 2019

Net assets

Equity ratio

Millions of yen
102,214
94,464

Millions of yen
58,37258,198Cash flows fromoperating activities
Millions of yen(5,954)
211

Cash flows frominvesting activities
Millions of yen
47(88)Net assets per share%
55.2
59.5

Yen
716.47713.99(3) Consolidated cash flows

Fiscal period ended March 31, 2020
Year ended September 30, 2019

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
2,248
12,586(1,422)
16,302

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended September 30, 2019
Fiscal period ended March 31, 2020
Fiscal year from April 1, 2020 toMarch 31, 2021 (Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%

%

––

7.50
–––

7.50
4.00

15.00
4.00

1,181315

44.0
21.3

2.1
0.6–––––1–3. Forecast of consolidated financial results for the fiscal year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
In light of the spread of the novel coronavirus disease (COVID-19) on a global scale, forward-looking statements for the next term have not yet
been determined, and the impact of the spread of COVID-19 is being examined. The Company plans to announce the forecast of consolidated
financial results with the Summary of Consolidated Financial Results for the Three Months Ended June 30, 2020.
4. Notes(1) Changes in significant subsidiaries during the fiscal period ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

81,967,082 shares As of September 30, 2019

81,967,082 shares

Number of treasury shares at the end of the period
As of March 31, 2020

3,192,332 shares As of September 30, 2019

3,191,971 shares

78,774,890 shares Year ended September 30, 201978,775,507 shares

Average number of shares during the period
Fiscal period ended March 31, 20202

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits

17,721

14,010Notes and accounts receivable - trade

22,02931,231

Electronically recorded monetary claims - operating

1,648

1,574

Merchandise and finished goods

13,477

15,556Work in process

798

693

Raw materials and supplies

4,877

5,962

Other

1,939

3,435

Allowance for doubtful accounts

(139)

(133)

62,35472,331

Buildings and structures, net

4,992

4,804

Machinery, equipment and vehicles, net

3,464

3,476

Land

6,061

5,917

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

Construction in progress

156

56

Other, net

564

600

15,24014,855

Goodwill

5,124

2,941

Software

390

382

Other

742

868

6,257

4,192

5,206

5,147

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Shares of parent

521–

Deferred tax assets

1,839

1,907

Retirement benefit asset

404

1,076

Other

2,948

3,069

Allowance for doubtful accounts

(308)

(366)

Total investments and other assets
Total non-current assets
Total assets

310,611

10,834

32,10929,882

94,464102,214

(Millions of yen)
As of September 30, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Accrued expenses

9,378

12,699

345

1,054

7,819

10,136

273

264

4,638

4,656

Income taxes payable

550

1,124

Provision for bonuses

739

656

Provision for bonuses for directors (and other officers)

24

1

Provision for sales returns

35

51

Provision for environmental measures

342–

Electronically recorded obligations - non-operating

7482

Other

1,612

1,828

Total current liabilities

25,83432,555

Bonds payable

2,220

2,149

Long-term borrowings

6,035

6,508

Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Provision for share-based remuneration

498

453

4945

–

6

Retirement benefit liability

164

658

Non-current liabilities

Other

1,463

1,461

Total non-current liabilities

10,431

11,28536,266

43,841

Share capital

14,93914,939

Capital surplus

15,06815,068Retained earnings

30,46431,553

Total liabilities
Net assetsShareholders’ equity

Treasury shares(1,728)(1,728)

Total shareholders’ equity

58,744

59,832

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

1,055

583

Foreign currency translation adjustment(4,128)(4,607)

Remeasurements of defined benefit plans

573

630

(2,499)(3,392)

Non-controlling interests

1,953

1,933

Total net assets

58,19858,372

94,464102,214

Total accumulated other comprehensive income

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal period ended
March 31, 2020

Year ended
September 30, 2019
Net sales

63,26035,674

Cost of sales

42,26823,031Gross profit

20,992

12,642

Selling, general and administrative expenses

17,673

8,637

Operating profit

3,318

4,005

Interest income

125

65

Dividend income

112

51

Share of profit of entities accounted for using equity method

307

271

–

54

Rental income from real estate

74

36

Other

242

84

Total non-operating income

863

562

Interest expenses

539

324

Foreign exchange losses

184

170Loss on valuation of derivatives

128–

Sales discounts

63

25

Other282

41

1,197

562

2,984

4,004

515

360

Non-operating income

Gain on valuation of derivatives

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of parent company’s stocks
Gain on sales of non-current assets

530

2

1,046363

Loss on disposal of non-current assets

43

25

Impairment loss

Total extraordinary income
Extraordinary losses

–

1,779

Environmental expenses

335

43

Other15–

Total extraordinary losses
Profit before income taxes
Income taxes - current

393

1,848

3,636

2,519

899

945

Income taxes - deferred

(65)

61

Total income taxes

834

1,006

2,802

1,513

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5118

35

2,684

1,477

Consolidated statements of comprehensive income(Millions of yen)
Fiscal period ended
March 31, 2020

Year ended
September 30, 2019
Profit

2,802

1,513

Valuation difference on available-for-sale securities

(925)

(472)

Foreign currency translation adjustment

(563)

(450)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

25657(137)(72)(1,370)

(937)

1,431

575

1,362584

69(9)Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Year ended September 30, 2019
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning ofperiod

Capital surplus

14,939Retained earnings

15,057

Total shareholders’equityTreasury shares

28,571(1,727)

56,840Changes during period
Change in ownershipinterest of parent due totransactions with noncontrolling interests

11

11

Dividends of surplus(1,181)(1,181)

Profit attributable toowners of parent

2,684

2,684

Change in scope ofconsolidation

390

390

Purchase of treasury
shares(0)(0)

Change in scope ofequity method–

Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

–

11

1,892

(0)

1,903

14,93915,06830,464(1,728)

58,744

Accumulated other comprehensive income
Valuation difference
on available–for–sale securities
Balance at beginning of
period1,981

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans(3,477)317

Total accumulated
othercomprehensiveincome(1,178)

Non–controllinginterests

1,913

Total net assets

57,576

Changes during period
Change in ownershipinterest of parent due totransactions with noncontrolling interests

11

Dividends of surplus(1,181)

Profit attributable toowners of parent

2,684

Change in scope of
consolidation

390

Purchase of treasuryshares(0)Change in scope ofequity method–Net changes in items
other than shareholders’equity

(925)

(651)

256(1,321)

39(1,281)

Total changes during
period

(925)

(651)

256(1,321)

39621

Balance at end of period

1,055(4,128)573(2,499)1,953

58,198

7

Fiscal period ended March 31, 2020
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning ofperiod

Capital surplus

14,939Retained earnings

15,068

Total shareholders’equityTreasury shares

30,464(1,728)58,744

Changes during period
Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Dividends of surplus

(590)

(590)

Profit attributable toowners of parent

1,477

1,477

Change in scope ofconsolidation–

Purchase of treasury
shares(0)Change in scope ofequity method

202

(0)
202

Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period

–

–

1,088

(0)

1,088

14,93915,06831,553(1,728)59,832

Accumulated other comprehensive income
Valuation difference
on available–for–sale securities
Balance at beginning ofperiod

1,055

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans(4,128)573

Total accumulated
othercomprehensive
income(2,499)

Non–controllinginterests

1,953

Total net assets

58,198Changes during period
Change in ownershipinterest of parent due totransactions with noncontrolling interests–Dividends of surplus(590)

Profit attributable toowners of parent

1,477

Change in scope ofconsolidation–

Purchase of treasury
shares(0)Change in scope ofequity method202

Net changes in items
other than shareholders’equity(472)(478)

57(892)

(20)

(913)

Total changes duringperiod

(472)

(478)

57(892)(20)

174

Balance at end of period583(4,607)630(3,392)

1,933

58,3728

Consolidated statements of cash flows(Millions of yen)
Fiscal period ended
March 31, 2020

Year ended
September 30, 2019
Cash flows from operating activities
Profit before income taxes

3,636

2,519

Depreciation

1,452

762

Impairment loss

–

1,779

Amortization of goodwill

377

181

Increase (decrease) in provision for environmental measures

(436)

(342)

Interest and dividend income

(238)

(116)

Interest expenses
Share of loss (profit) of entities accounted for using equity
methodGain or loss on sales of parent company’s stocks

539

324

(307)

(271)

(515)

(360)

Loss (gain) on sales of property, plant and equipment

(530)

(2)

Loss on retirement of property, plant and equipment

4325

Decrease (increase) in trade receivables(592)(9,606)

Decrease (increase) in inventories(632)(3,218)

Increase (decrease) in trade payables(1,903)

4,232

Other, net

575(1,355)

Subtotal

1,467(5,449)Interest and dividends received370

110

Interest paid

(552)

(249)

Income taxes paid

(1,074)

(366)

211

(5,954)Purchase of property, plant and equipment(1,398)(340)

Proceeds from sales of property, plant and equipment

1,083

151

Purchase of intangible assets

(144)

(225)

–

(11)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of investment securities
Proceeds from sales of shares of parent

635

477

Payments into time deposits(1,513)(484)

Proceeds from withdrawal of time deposits

1,437

487

Other, net

(188)

(7)

Net cash provided by (used in) investing activities

(88)

47

9(Millions of yen)
Fiscal period ended
March 31, 2020

Year ended
September 30, 2019
Cash flows from financing activities
Proceeds from short-term borrowings

6,809

5,679

Repayments of short-term borrowings(6,656)(1,931)

Proceeds from long-term borrowings

1,787

2,145

Repayments of long-term borrowings(2,853)(2,967)

Proceeds from issuance of bonds

2,494

–

Redemption of bonds(1,687)

–

(115)

(75)

Repayments of lease obligations
Purchase of treasury shares(0)(0)(1,181)

(590)

(11)

(11)

(7)

–(1,422)

2,248

(198)

(57)

Net increase (decrease) in cash and cash equivalents(1,498)(3,716)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period

17,53416,302266–

16,302

12,586

Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

10