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, 2022
(Based on Japanese GAAP)

February 9, 2023

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

4997
President

URL

https://www.nichino.co.jp/
Hiroyuki Iwata

Inquiries:

General Manager of General Affairs & Legal
Masaki Yoshioka
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, 2023–
No
No
(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(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, 2022
66,006
29.9
5,119
76.4
4,626
42.7
3,043
21.6
Nine months ended December 31, 2021
50,820
–
2,902
–
3,241
–
2,503
–
(Note) Comprehensive income: Nine months ended December 31, 2022: 4,548 million yen [71.6%]
Nine months ended December 31, 2021: 2,650 million yen [-%]
Earnings per share

Diluted earnings per share

Yen
38.81
31.85

Nine months ended December 31, 2022
Nine months ended December 31, 2021

Yen
–
–

The figures for the nine months ended December 31, 2021 are presented after being retrospectively restated reflecting changes in accounting
policies.
The year-on-year percentage changes for the nine months ended December 31, 2021 are not presented due to the retrospective application of thechanges in accounting policies.
(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
Millions of yen%
As of December 31, 2022
130,677
70,26352.3
As of March 31, 2022
118,247
66,956
55.5(Reference) Equity: As of December 31, 2022: 68,349 million yen
As of March 31, 2022: 65,593 million yen
The figures for the fiscal year ended March 31, 2022 are presented after being retrospectively restated reflecting changes in accounting policies.

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
7.50
8.00

Yen
–
–

Yen
7.50

Yen
15.00

8.00

16.00

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
(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, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
98,000Percentages 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
22.3
8,800
52.7
7,800
37.7
5,400
22.6
68.86

(Note) Revision to the forecast of financial results announced most recently: No
Due to the retrospective application of the changes in accounting policies, the year-on-year percentage changes are calculated using figures forthe previous period retrospectively restated.
4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):
Notes on changes in significant subsidiaries during the periodNo(2) Application of special accounting methods for preparing quarterly consolidated financial statements:
Yes
Notes on application of special accounting methods for preparing quarterly consolidated financial statements(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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:
Notes on changes in accounting policies

Yes
No
No

(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, 2022

81,967,082 shares As of March 31, 2022

81,967,082 shares

Number of treasury shares at the end of the period
As of December 31, 2022

3,543,455 shares As of March 31, 2022

3,542,965 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

78,423,861 shares Nine months ended December 31, 2021

78,593,138 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.

Table of Contents
1. Qualitative information on quarterly financial results .................................................................................... 2(1) Explanation of operating results ................................................................................................................. 2(2) Explanation of financial position ............................................................................................................... 3(3) Explanation of the forecast of consolidated financial results and other forward-looking information ........ 3
2. Quarterly consolidated financial statements and primary notes ..................................................................... 4(1) Quarterly consolidated balance sheets ....................................................................................................... 4(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive
income ........................................................................................................................................................ 6(3) Notes to quarterly consolidated financial statements ................................................................................. 8(Notes on going concern assumption) ................................................................................................... 8(Notes in case of significant changes in shareholders’ equity) .............................................................. 8(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) ............................................................................................................................................. 8(Changes in accounting policies) .......................................................................................................... 8(Additional information) ....................................................................................................................... 9(Segment information, etc.) ................................................................................................................. 10

1

1. Qualitative information on quarterly financial results(1) Explanation of operating results
During the nine months ended December 31, 2022, the global economy experienced a stagnation in economic recovery
due to the resurgence of infections, despite the easing of the zero-COVID policy in China. In the U.S. and Europe,
economies continued to pick up moderately with economic activities returning to normal, but there arose concerns about
economic downturns, mainly in consumer spending, due to monetary tightening to tame the escalating inflation.
Meanwhile, in Japan, the depreciation of the Japanese yen resulting from interest rate gaps with Europe and the U.S.
caused prices to rise, resulting in a sharp decline in consumer sentiment. Furthermore, as supply chains remained tightand resource prices continued to spike amid the prolonged military invasion of Ukraine by Russia, an unstable economic
climate persisted.
Under such circumstances, the Group engaged in the initiatives of the medium-term management plan, “Ensuring
Growing Global 2 (EGG 2)” and has been aiming to improve profitability, establish technological innovation and nextgeneration businesses, and sustainably enhance corporate value.
Major efforts during the nine months ended December 31, 2022 included technology dissemination activities aimed
at expanding sales of benzpyrimoxan, a novel insecticide for paddy rice that was fully launched in India. Moreover, as
part of our efforts to establish technological innovation and next-generation businesses, we started the distribution of“NICHINO AI DIAGNOSIS” in India, Vietnam and Taiwan, which is an overseas edition of the smartphone application“Leime AI Disease, Pest & Weed Analysis” that we have been distributing since April 2020. Through these smart
agriculture initiatives, we are working to further improve convenience for producers.
For the nine months ended December 31, 2022, net sales amounted to 66,006 million yen (up 15,185 million yen or
29.9% year-on-year), due mainly to the strong performance of our core business, the agrochemicals business, in overseas
countries. In terms of profits, operating profit came to 5,119 million yen (up 2,217 million yen or 76.4% year-on-year),ordinary profit was 4,626 million yen (up 1,384 million yen or 42.7% year-on-year), and profit attributable to owners ofparent was 3,043 million yen (up 539 million yen or 21.6% year-on-year).
To translate revenue and expenses of consolidated subsidiaries overseas, etc. into Japanese yen, we changed
methods effective from the first quarter of the fiscal year under review from the one using the spot market exchange rate
prevailing on the respective balance sheet dates of these companies to the one using the average exchange rate for therespective periods. Accordingly, year-on-year comparisons are drawn based on the figures adjusted retrospectively. For
details, see “2. Quarterly consolidated financial statements and primary notes, (3) Notes to quarterly consolidated
financial statements, (Changes in accounting policies).”
The state of the reportable segments during the nine months ended December 31, 2022 is as follows.
[Agrochemicals business]
Regarding agrochemicals sales in Japan, the Company worked to promote and expand the sales of core internallydeveloped products such as pyrifluquinazon, an insecticide for horticultural (product name: COLT). The Company
concluded a sales agreement with Corteva Agriscience Japan Limited and Dow AgroSciences Japan Limited (currently,
Corteva Japan Ltd.; hereinafter collectively referred to as “Corteva”) in May 2021 in order to expand the share in thedomestic agrochemicals market. Overall domestic sales increased year on year owing in part to the start of selling
Corteva products from October 2021.
For overseas agrochemicals sales, with demand for agrochemicals in Brazil, the world’s largest agrochemicalmarket, on an upward trend, Sipcam Nichino Brasil S.A. reported increased net sales, mainly due to an increasing
demand for herbicides for sugar cane plants. In North America, with heavy infestation of whiteflies on cotton, sales of
the insecticide buprofezin were strong, which primarily increased net sales for Nichino America Inc. In addition, in
Europe, strong sales of the herbicide pyraflufen-ethyl used in potato production led to higher sales at Nichino EuropeCo., Ltd., and sales of the active ingredient flubendiamide to Bayer were strong. Moreover, in Asia, we engaged in thetechnology dissemination activities aimed at expanding sales of benzpyrimoxan, an insecticide for paddy rice, in India.
Consequently, overseas agrochemicals sales overall exceeded the levels of the same period of the previous fiscal year.
As a result of the above, net sales of the agrochemicals business amounted to 61,820 million yen (up 14,892 million
yen or 31.7% year-on-year) and operating profit amounted to 4,695 million yen (up 2,336 million yen or 99.0% year-on2

year).
[Chemicals other than agrochemicals business]
In the chemicals business, AgriMart Corporation experienced strong sales of anti-infectives.
In the pharmaceutical business, sales of topical antifungal drug were strong.
As a result of the above, net sales of the chemicals other than agrochemicals business amounted to 2,929 million
yen (up 137 million yen or 4.9% year-on-year) and operating profit amounted to 817 million yen (down 94 million yenor 10.4% year-on-year).

(2) Explanation of financial position
Total assets as of December 31, 2022 increased by 12,430 million yen from the end of the previous fiscal year to 130,677
million yen. This was due primarily to increases in cash and deposits and inventories exceeding the decrease in notes andaccounts receivable.
Total liabilities as of December 31, 2022 increased by 9,123 million yen from the end of the previous fiscal year to60,413 million yen. This was due primarily to increases in trade payables and long-term borrowings.
Net assets as of December 31, 2022 increased by 3,307 million yen from the end of the previous fiscal year to70,263 million yen. This was due primarily to increases in accumulated other comprehensive income including foreign
currency translation adjustment and retained earnings resulting from profit attributable to owners of parent.
(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, 2023,
announced on August 9, 2022.

3

2. Quarterly consolidated financial statements and primary notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of December 31, 2022

AssetsCurrent assets
Cash and deposits

12,224

17,490Notes and accounts receivable - trade, and contract assets

36,01025,300Electronically recorded monetary claims - operating

2,077

1,782

Merchandise and finished goods

22,39530,323769

1,088

Raw materials and supplies

9,531

17,244

Other

4,709

5,941

Allowance for doubtful accounts

(366)

(524)

87,351

98,647

Buildings and structures, net

4,180

4,116

Machinery, equipment and vehicles, net

3,682

3,492

Land

5,898

5,490

Other, net

1,019

1,377

Total property, plant and equipment

14,781

14,477

Goodwill

2,794

2,601

Other

1,424

1,350

Total intangible assets

4,218

3,952

Investment securities

6,955

7,740

Other

5,318

5,865

Allowance for doubtful accounts

(377)

(6)

Total investments and other assets

11,896

13,59930,89532,029118,247

130,677

Work in process

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

Intangible assets

Investments and other assets

Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2022

As of December 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

19,406

21,453

Electronically recorded obligations - operating

1,117

1,531

Short-term borrowings

10,477

11,085Current portion of bonds payable

202–

Income taxes payable

955

684

Provision for bonuses

869

478

Other provisions

41–

Electronically recorded obligations - non-operating

47

162

Other

8,062

10,685

Total current liabilities

41,18046,081

Bonds payable

1,226

1,596

Long-term borrowings

6,128

9,833

Retirement benefit liability

839

858

Other provisions

132

158

Other

1,782

1,884

Total non-current liabilities

10,11014,331

51,29060,413

Share capital

14,93914,939

Capital surplus

15,071

15,071Retained earnings

38,85540,678Treasury shares(1,906)(1,907)

Total shareholders’ equity

66,96068,782

846

942

–

26

Foreign currency translation adjustment(2,895)(2,046)

Remeasurements of defined benefit plans

682

643

(1,367)(432)

Non-controlling interests

1,363

1,914

Total net assets

66,95670,263

118,247

130,677

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Total accumulated other comprehensive income

Total liabilities and net assets5(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, 2021

December 31, 2022

Net sales

50,82066,006

Cost of sales

34,92845,666Gross profit

15,892

20,339Selling, general and administrative expenses

12,99015,220Operating profit

2,902

5,119

Interest income

47

188

Dividend income

73

96

Rental income from real estate

83

77

Foreign exchange gains–

433

Share of profit of entities accounted for using equity method

605

615

Other

74

99

Total non-operating income

883

1,511

Interest expenses

324

586

Foreign exchange losses

110–

Loss on valuation of derivatives

10

1,303

Other

97

114

Total non-operating expenses

543

2,004

3,241

4,626

Gain on sale of non-current assets

209

29

Other

32

–

Total extraordinary income

242

29

Loss on disposal of non-current assets

18

11

Environmental expenses

28

–

Other

3

–

Total extraordinary losses

50

11

3,433

4,644

963

1,365

2,469

3,278

(33)

235

2,503

3,043

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

Quarterly consolidated statements of comprehensive income(Millions of yen)

ProfitNine months ended

Nine months ended

December 31, 2021

December 31, 2022
2,469

3,278

(112)

95

–

53

Foreign currency translation adjustment

245

829

Remeasurements of defined benefit plans, net of tax

(47)

(38)

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

96

328

Total other comprehensive income

181

1,269

2,650

4,548

Comprehensive income attributable to owners of parent

2,646

3,977

Comprehensive income attributable to non-controllinginterests

4570

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Comprehensive income
Comprehensive income attributable to7(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 Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021) effective from the beginning of the first quarter of the fiscal year underreview and in accordance with the transitional treatment provided for in Paragraph 27-2 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement, the Company will prospectively apply the new
accounting policy prescribed by the Implementation Guidance on Accounting Standard for Fair Value Measurement.
This application has no impact on the quarterly consolidated financial statements.
(Change in the method of translating revenue and expenses of consolidated subsidiaries overseas, etc.)
Revenue and expenses of consolidated subsidiaries overseas, etc. were previously translated into Japanese yen using
the spot market exchange rate prevailing on the respective balance sheet dates of these companies. However, effectivefrom the first quarter of the fiscal year under review, the Company changed the translation method to the one using
the average exchange rate for the respective periods.
The change was made as a result of alterations in control systems in the Group that had been made against the
backdrop of an increasing significance of consolidated subsidiaries overseas, etc., including integration of budget
control systems. The change was also made to mitigate the impact of temporary fluctuations in exchange rates on
profit or loss for the period, etc. and reflect revenue and expenses of consolidated subsidiaries overseas, etc., which
are earned and incurred throughout the consolidated fiscal year, more appropriately in the consolidated financial
statements.
The change in the accounting policy has been applied retrospectively, and the quarterly consolidated financial
statements for the nine months ended December 31, 2021 and the consolidated financial statements for the fiscal year
ended March 31, 2022 have been adjusted retrospectively.
As a result of the change, net sales for the nine months ended December 31, 2021, decreased by 462 million yen,operating profit decreased by 291 million yen, ordinary profit decreased by 4 million yen, profit before income taxes
decreased by 4 million yen, profit attributable to owners of parent decreased by 11 million yen, and earnings per sharedecreased by 0.15 yen, compared to the figures before the retrospective application of the change.
In addition, with the cumulative effects reflected on the net assets at the beginning of the previous fiscal year, theretained earnings balance at the beginning of the previous fiscal year decreased by 209 million yen and the foreign
currency translation adjustment balance at the beginning of the previous fiscal year increased by 209 million yen.

8(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, 2022 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, 2022.

9

(Segment information, etc.)[Segment information]
I For the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
Agrochemicals other thanbusiness
agrochemicals
business

Subtotal

Others(Note 1)

Total

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

Net sales
Net sales to outside
46,9282,792
49,721
1,099
50,820–50,820
customers
Inter-segment net
13
0
13
503
516
(516)
–
sales or transfers
Total
46,941
2,793
49,734
1,602
51,337(516)
50,820
Segment profit
2,359
911
3,270
231
3,502
(600)
2,902
(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.
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, 2022 (from April 1, 2022 to December 31, 2022)
1. Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
Agrochemicals other thanbusiness
agrochemicals
business

Subtotal

Others(Note 1)

Total

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

Net sales
Net sales to outside
61,8202,929
64,7501,255
66,006–66,006customers
Inter-segment net
16
–
16
535
552
(552)
–
sales or transfers
Total
61,8372,929
64,767
1,791
66,558(552)
66,006
Segment profit
4,695
817
5,512
264
5,777
(657)
5,119
(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 657 million yen adjustment for segment profit includes minus 657 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.

10

2. Matters pertaining to changes in reportable segments
Revenue and expenses of consolidated subsidiaries overseas, etc. were previously translated into Japanese yen using
the spot market exchange rate prevailing on the respective balance sheet dates of these companies. However, effectivefrom the first quarter of the fiscal year under review, the Company changed the translation method to the one using the
average exchange rate for the respective periods. Accordingly, the figures presented above for the nine months ended
December 31, 2021 are those that have been adjusted retrospectively to reflect the change in the accounting policy.

11