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 Year Ended September 30, 2018
(Based on Japanese GAAP)
November 13, 2018
Company name:NIHON NOHYAKU CO., LTD.

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

URL

http://www.nichino.co.jp/President
Yosuke Tomoi
General Manager of General Affairs & Legal
Motohiro NagaiDepartment

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

December 21, 2018
December 25, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

December 25, 2018
No

Holding of financial results meeting:Yes

TEL+81-3-6361-1400(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended September 30, 2018 (from October 1, 2017 to September 30, 2018)(1) Consolidated operating results
Net salesYear ended September 30, 2018Year ended September 30, 2017

Millions of yen
61,21360,033Operating profit
%
2.0
18.5

Millions of yen
4,172
3,496

Diluted earnings pershare
Yen
Yen
37.46
–
25.70
–

Earnings per share
Year ended September 30, 2018Year ended September 30, 2017%19.3
(21.0)

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
3,651
1.5
2,507
45.9
3,597
(6.9)
1,717
65.9

Profit/equity%
4.9
3.7

Ordinaryprofit/total assets
%
3.9
4.1

Operatingprofit/net sales
%
6.8
5.8

(2) Consolidated financial position
Total assets
As of September 30, 2018
As of September 30, 2017

Net assets

Equity ratio

Millions of yen
98,46388,713

Millions of yen
57,576
48,867

Cash flows fromoperating activities
Millions of yen
(819)
2,515

Cash flows frominvesting activities
Millions of yen767(441)

Net assets per share
%
56.5
52.8

Yen
706.59700.65(3) Consolidated cash flows

Year ended September 30, 2018Year ended September 30, 2017

Cash flows from
Cash and cash equivalentsfinancing activities
at end of period
Millions of yen
Millions of yen
7,785
17,534(5,932)
10,128

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

Year ended September 30, 2017
Year ended September 30, 2018Year ending September 30, 2019
(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

––

7.50
7.50

15.00
15.00

1,0021,092

58.4
40.0

2.2
2.1

–

7.50

–

7.50

15.00

147.3

3. Forecast of consolidated financial results for the year ending September 30, 2019 (from October 1, 2018 to September 30, 2019)
Net sales
Millions of yen
Six months ending
March 31, 2019
Full year

Percentages 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

39,0005.53,600(3.6)

3,600(9.0)

2,000 (20.8)

25.39

68,00011.1

3,800(8.9)

3,400

(6.9)

2,500

31.74

4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):

(0.3)

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:
Changes in accounting policies due to other reasons:

NoNo

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2018

81,967,082 shares As of September 30, 201770,026,782 shares

Number of treasury shares at the end of the period
As of September 30, 2018

3,190,978 shares As of September 30, 2017

3,189,804 shares

66,934,465 shares Year ended September 30, 2017

66,837,428 shares

Average number of shares during the period
Year ended September 30, 20182

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2017

As of September 30, 2018

AssetsCurrent assets
Cash and deposits

11,62018,889Notes and accounts receivable - trade21,22021,986

Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets

895

1,817

9,986

11,518

660

849

4,465

5,859

710

922

Other

3,158

2,940

Allowance for doubtful accounts

(441)

(455)

52,27664,327

Buildings and structures

5,648

5,294

Machinery, equipment and vehicles

3,521

3,688

Land

6,458

6,126176

300

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

Construction in progress
Other732

647

16,536

16,056

Goodwill

6,745

5,625

Software224

399

Total property, plant and equipment
Intangible assets

Other
Total intangible assets

853

819

7,824

6,844

Investments and other assets
Investment securities
Shares of parent
Deferred tax assets
Net defined benefit asset
Other

7,156

5,618

–

1,539

1,597

1,346

378

425

2,971

2,320

Allowance for doubtful accounts

(27)

(15)

Total investments and other assets

12,076

11,235Total non-current assets
Total assets

336,436

34,13588,713

98,463

(Millions of yen)
As of September 30, 2017

As of September 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

9,546

10,610753

776

Short-term loans payable

3,838

6,261

Accrued expenses

5,627

5,001

Income taxes payable

642

715

Provision for bonuses

722

734

131

Electronically recorded obligations - operating

Provision for directors’ bonuses
Provision for sales returns

2937

Provision for environmental measures

114

778

Provision for product recall related costs

137–

Electronically recorded obligations - non-operating

10089

Other

1,654

1,782

Total current liabilities

23,16826,818Non-current liabilities
Bonds payable

2,014

1,710

Long-term loans payable

10,405

8,639

Deferred tax liabilities

1,126

1,352

58

54

Provision for directors’ retirement benefits
Net defined benefit liability

1,423

756

Other

1,648

1,554

Total non-current liabilities

16,676

14,06839,84540,887

Capital stock

10,93914,939

Capital surplus

11,057

15,057Retained earnings

27,06728,571Treasury shares(1,726)(1,727)

Total shareholders’ equity

47,337

56,840

Valuation difference on available-for-sale securities

2,077

1,981

Foreign currency translation adjustment(2,487)(3,477)

Remeasurements of defined benefit plans

(97)

317

Total accumulated other comprehensive income(507)(1,178)

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Non-controlling interests

2,038

1,913

Total net assets

48,86757,57688,713

98,463

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Year ended
September 30, 2018Year ended
September 30, 2017
Net sales

60,033

61,213

Cost of sales

38,98039,303Gross profit

21,052

21,909Selling, general and administrative expenses

17,556

17,736

Operating profit

3,496

4,172

Interest income

276

117

Dividend income

101116

Share of profit of entities accounted for using equity method

257

328

Foreign exchange gains

165–

Gain on valuation of derivatives–

100

Real estate rent

83

78

Other164

172

1,048

913

Interest expenses

410

525

Share issuance cost–126

Non-operating income

Total non-operating income
Non-operating expenses

Foreign exchange losses–

652

Loss on valuation of derivatives

227–

Sales discounts

122

78

Other

186

50

Total non-operating expenses

947

1,434

3,597

3,651

Gain on sales of non-current assets

–

1,494

Gain on sales of investment securities

289

133

Total extraordinary income

289

1,628

Loss on disposal of non-current assets

129

179

Impairment loss

547–

Product recall related costs

113

57

Environmental expenses

184

1,204Ordinary profit
Extraordinary income

Extraordinary losses

Other–

8974

1,450

Profit before income taxes

2,912

3,830

Income taxes - current

1,217

1,168

Income taxes - deferred(112)5

Total income taxes

1,105

1,174

Profit

1,807

2,655

89

148

1,717

2,507

Total extraordinary losses

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

5Consolidated statements of comprehensive income(Millions of yen)
Year ended
September 30, 2018Year ended
September 30, 2017
Profit

1,807

2,655

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income

723

(95)

1,688

(1,451)3414(153)

198

2,262(934)

4,069

1,721

3,724

1,836

345(115)

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, 2017(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

10,939Retained earnings

13,235

Total shareholders’equityTreasury shares

26,351(1,726)48,801

Changes of items during
periodIssuance of new shares–

Change in ownershipinterest of parent due totransactions with
non-controlling interests(2,178)(2,178)Dividends of surplus(1,002)(1,002)

Profit attributable toowners of parent

1,717

1,717

Purchase of treasury
shares(0)(0)

Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period–(2,178)715(0)(1,464)

10,93911,057

27,067(1,726)47,337

Accumulated other comprehensive income
Valuation differenceonavailable-for-salesecurities
Balance at beginning ofcurrent period

1,353

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans(3,766)(101)

Total accumulated
othercomprehensive
income(2,514)Non-controllinginterests

2,410

Total net assets

48,697

Changes of items during
periodIssuance of new shares–

Change in ownershipinterest of parent due totransactions with
non-controlling interests(2,178)Dividends of surplus(1,002)

Profit attributable toowners of parent

1,717

Purchase of treasury
shares(0)

Net changes of items
other than shareholders’equity

723

1,279

3

2,006(372)1,633

Total changes of items
during period

723

1,279

3

2,006(372)169

Balance at end of current
period2,077(2,487)

(97)

(507)

2,038

48,867

7

Year ended September 30, 2018
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

10,93911,057

4,000

4,000

Total shareholders’equityTreasury shares

27,067(1,726)47,337

Changes of items during
periodIssuance of new shares

8,000

Change in ownershipinterest of parent due totransactions with
non-controlling interests–

Dividends of surplus(1,002)(1,002)

Profit attributable toowners of parent

2,507

2,507

Purchase of treasury
shares(0)(0)

Net changes of items
other than shareholders’equityTotal changes of items
during period

4,000

4,000

1,504(0)9,503Balance at end of current
period14,93915,05728,571(1,727)

56,840

Accumulated other comprehensive income
Valuation differenceonavailable-for-salesecurities
Balance at beginning ofcurrent period

2,077

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans(2,487)(97)

Total accumulated
othercomprehensiveincome(507)

Non-controllinginterests

2,038

Total net assets

48,867

Changes of items during
periodIssuance of new shares

8,000

Change in ownershipinterest of parent due totransactions withnon-controlling interests–

Dividends of surplus(1,002)

Profit attributable toowners of parent

2,507

Purchase of treasury
shares(0)

Net changes of items
other than shareholders’equity

(95)

(989)

414(670)

(124)

(795)

Total changes of items
during period

(95)

(989)

414

(670)

(124)

8,708

Balance at end of current
period1,981(3,477)317(1,178)

1,913

57,576

8

Consolidated statements of cash flows(Millions of yen)
Year ended
September 30, 2018Year ended
September 30, 2017
Cash flows from operating activities
Profit before income taxes

2,912

3,830

Depreciation

1,420

1,421

Impairment loss547–Amortization of goodwill

571

385

Decrease (increase) in net defined benefit asset

(39)

(43)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in provision for product recall related
costs
Increase (decrease) in provision for environmental measures

(53)

(70)

(33)

(3)

(906)

(137)

114

664

Increase (decrease) in allowance for doubtful accounts

167

Increase (decrease) in provision for bonuses

9111

Increase (decrease) in provision for directors’ bonuses(0)30Increase (decrease) in provision for sales returns

7

8

Interest and dividend income

(378)

(233)

Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sales of property, plant and equipment

410

525

(257)

(328)

–(1,494)

361

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

(289)

(133)

(1,083)(2,462)

Decrease (increase) in inventories

238(3,531)

Increase (decrease) in notes and accounts payable - trade

(15)

1,696

Increase (decrease) in accrued consumption taxes

(352)

13

Other, net

326

53

Subtotal

3,237

329

Decrease (increase) in notes and accounts receivable - trade

Interest and dividend income received

384

452

Interest expenses paid

(399)

(512)

Income taxes paid

(706)

(1,089)Net cash provided by (used in) operating activities

2,515

(819)

(785)

(2,087)–

2,687

Purchase of intangible assets

(166)

(275)

Purchase of investment securities

(64)

(48)

Proceeds from sales of investment securities
Payments for investments in capital of subsidiaries andassociatesPayments into time deposits

361

171

(109)

–(500)(294)

Proceeds from withdrawal of time deposits

563

432

Payments of short-term loans receivable

(139)

(154)

Collection of loans receivable

336

154

63

181

(441)

767

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

9

(Millions of yen)
Year ended
September 30, 2018Year ended
September 30, 2017
Cash flows from financing activities
Increase in short-term loans payable7,656

9,435

Decrease in short-term loans payable(8,148)(6,945)

Proceeds from long-term loans payable

1,924

3,000

Repayments of long-term loans payable(3,336)(4,435)

Repayments of lease obligations

(128)

(129)

Proceeds from issuance of common shares

–

7,873

Purchase of treasury shares

(0)

(0)

(1,002)(1,002)(22)(9)(2,874)–(5,932)

7,785

Cash 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

357(327)

Net increase (decrease) in cash and cash equivalents(3,501)

7,405

Cash and cash equivalents at beginning of period

13,62910,128Cash and cash equivalents at end of period

10,12817,53410