Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

April 30, 2024

Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(Japanese GAAP)
Company name:NIPPON FINE CHEMICAL CO., LTD.
Listing:
Tokyo
Securities code:
4362
URL:
https://www.nipponseika.co.jp/en/
Representative:
Hiroshi Yano, Representative Director, President
Inquiries:
Yoshihiro Okura, General Manager Corporate Planning OfficeTEL:+81-6-6231-4781
Scheduled date of annual general meeting of shareholders:June 26, 2024
Scheduled date to commence dividend payments:
June 27, 2024
Scheduled date to file annual securities report:
June 27, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Millions of yen% Millions of yen

33,531
36,838

Note: Comprehensive income

(9.0)
10.1

Reference:(17.0)
3.6

Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

Basic earnings per
share
Fiscal year ended
March 31, 2024
March 31, 2023

% Millions of yen

4,197
5,057

Diluted earnings
per shareYen

146.40174.42

Profit attributable toowners of parent

Ordinary profit
4,452
5,389
¥3,920 million¥4,836 million

Return on equity

Yen

–
–

% Millions of yen(17.4)
5.1

3,327
4,079

%

(18.4)
17.5[(18.9)%][55.1%]

Ratio of ordinary
Ratio of operating
profit to total
profit to net sales
assets

%

%

%

7.2
9.2

7.7
9.7

12.5
13.7

Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2024¥-million
Fiscal year ended March 31, 2023¥-million(2) Consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

59,45056,67247,55946,10178.5
79.9

2,074.07
1,984.58

Reference:

EquityAs of March 31, 2024
As of March 31, 2023

¥46,647 million¥45,266 million(3) Consolidated cash flows
Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

6,278
1,439

(634)
(1,779)(2,545)(3,320)10,937
7,766

Fiscal year ended
March 31, 2024
March 31, 2023

2. Status of dividends
Annual dividends per share

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
(Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

total

Total cash
dividends(Total)Payout ratio(Consolidated)

Dividend on
equity(Consolidated)%%

Yen Millions of yen

–

28.00

–

29.00

57.00

1,323

32.7

3.0

–

35.00

–

35.00

70.00

1,586

47.8

3.5

–

37.00

–

37.00

74.00

48.2

3. Forecast of financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31,
2025)
Net sales(Percentages indicate year-on-year changes.)
Basic
Profit attributable toearnings per
Ordinary profit
owners of parent
share

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

Second quarter(cumulative)

17,000

5.1

2,250

14.8

2,250

6.0

1,600

6.7

71.14

Full year

35,700

6.5

4,800

14.3

4,900

10.0

3,450

3.7

153.40* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
Newly included: - (company name) Excluded: - (company name)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards, etc.: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

25,372,447 shares

As of March 31, 2023

25,372,447 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2024

2,881,540 shares

As of March 31, 2023

2,563,350 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2024

22,729,533 sharesFiscal year ended March 31, 2023

23,388,950 shares

Reference: Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2024 (April 1, 2023 toMarch 31, 2024)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Millions of yen

17,14917,463% Millions of yen

(1.8)
11.5

Basic earnings per
share
Fiscal year ended
March 31, 2024
March 31, 2023

(Percentages indicate year-on-year changes.)

2,708
3,215

% Millions of yen(15.8)
9.7

Diluted earnings per
share

Yen

129.49144.08

Ordinary profit

Yen

–
–

3,585
4,183

Profit% Millions of yen(14.3)
6.7

2,943
3,370

%

(12.7)
13.2

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

51,712
48,682

36,46135,73170.5
73.4

1,621.16
1,566.52

EquityAs of March 31, 2024
As of March 31, 2023

¥36,461 million¥35,731 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements of the earnings outlook, etc. described in this document are based on theinformation currently obtained by the Company and certain assumptions that it deems reasonable, andare not intended to promise the achievement of such information. In addition, actual business results may
differ significantly due to various factors. Please refer to pages 3 and 4 of the attached materials “1.
Overview of operating results and others (4) Future outlook” for the conditions that are the premise of
the business forecast and precautions when using the business forecast.
The Company plans to hold a briefing session for institutional investors and analysts on Tuesday, May
14, 2024. The financial results presentation materials to be distributed at this briefing session will be
posted on the Company’s website on the same day.

NIPPON FINE CHEMICAL CO., LTD. (4362)○ Table of contents of attached materials
Index
1. Overview of operating results and others ................................................................................................. 2(1) Overview of operating results for the fiscal year ............................................................................... 2(2) Overview of financial position for the fiscal year .............................................................................. 3(3) Overview of cash flows for the fiscal year ......................................................................................... 3(4) Future outlook .................................................................................................................................... 4(5) Basic policy on profit sharing and dividends for the fiscal year and next fiscal year ........................ 4
2. Basic rationale for selection of accounting standards ............................................................................... 5
3. Consolidated financial statements and main notes ................................................................................... 6(1) Consolidated balance sheet ................................................................................................................ 6(2) Consolidated statement of income and comprehensive income ......................................................... 8(3) Consolidated statement of changes in equity ..................................................................................... 9(4) Consolidated statement of cash flows .............................................................................................. 11(5) Notes to consolidated financial statements ....................................................................................... 12
Notes on premise of going concern .................................................................................................. 12
Changes in presentation.................................................................................................................... 12
Segment information ........................................................................................................................ 12
Per share information ....................................................................................................................... 15
Subsequent events ............................................................................................................................ 15-1-

NIPPON FINE CHEMICAL CO., LTD. (4362)

1. Overview of operating results and others(1) Overview of operating results for the fiscal year
In the fiscal year under review, although weakness in domestic demand was observed, the turnaround indemand from inbound tourism, with the demand exceeding the level prior to the COVID-19 pandemic,
and other factors allowed the Japanese economy as a whole to continue to recover gradually. At thesame time, in the overseas economies, the outlook remains uncertain due to factors including soaring
global resource and energy prices caused by the prolonged unrest in Ukraine and the Middle-East, thebeginnings of signs of slowdown in the US economy, ongoing slowdown in the European economies
and stagnation in the Chinese economy due to the ongoing real estate recession.
In this business environment, the Group has been working to further strengthen its management baseand promoted selection and concentration on products that can be expected to contribute to the
expansion of earnings.
As a result, net sales for the fiscal year under review decreased to ¥33,531 million (down 9.0% yearon-year). Furthermore, in terms of profit, operating profit was ¥4,197 million (down 17.0% year-onyear), and ordinary profit was ¥4,452 million (down 17.4% year-on-year). Profit attributable to ownersof parent was ¥3,327 million (down 18.4% year-on-year).
Operating results for each segment are as follows.
The classification of reporting segments has been changed from the first quarter of the fiscal year underreview. The following year-on-year comparisons are comparative analyses based on figures for thesame period of the previous fiscal year that have been reclassified into the new segment classifications.
(i) Functional products
As a result of the above, in this segment, net sales was ¥26,195 million (down 7.9% year-on-year).
Segment profit (operating profit) was ¥3,603 million (down 13.4% year-on-year).
Reference:(Unit: Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Year-on-yearchangesYear-on-yearchanges (%)

Beauty care
Health careFine chemical
Trading

7,169
5,658
7,054
8,567

7,936
5,829
5,202
7,229

767
170
(1,851)(1,338)10.7%
3.0%(26.2%)(15.6%)

Total net sales

28,44826,195(2,252)(7.9%)

Beauty care
Health careFine chemical
Trading

1,946
700
1,241
275

2,193
449
640
321

248
(251)
(601)
47

12.7%
(35.9%)(48.4%)
17.0%

Total operating profit

4,161

3,603

(558)

(13.4%)

Beauty care
Despite the negative impact of lower sales of wool grease derivatives for cosmetics, sales and profit
increased year-on-year due to an increase in overseas demand for functional esters for cosmetics,
mainly from Europe and the U.S. as a sustainable product, as well as due to strong domestic
demand for phospholipids for cosmetics, active ingredients, etc.
Health care
Regarding phospholipids for pharmaceuticals, test production at a new plant based on the alliancewith Gilead Sciences, Inc. was completed and commercial production started in the second half ofthe fiscal year. On the other hand, operating profit decreased year-on-year due to an increase indepreciation for the new plant.

-2-

NIPPON FINE CHEMICAL CO., LTD. (4362)

Fine chemical
Overall sales and profit decreased due to lower sales of cholesterol for animal feed for overseas
markets, lower sales of fatty acid amides as a result of lower demand in China, as well as theimpact of lower sales as a result of the end of sales as we seek to streamline our business for the
future and promote selection and concentration.
(ii) Environmental hygiene products
In this segment, sales of hand sanitizers decreased significantly due to a larger-than-expectedmarket contraction and inventory adjustments for infection control products after the change in thelegal status of COVID-19. As a result, net sales was ¥7,083 million (down 12.3% year-on-year) andsegment profit (operating profit) was ¥487 million (down 34.4% year-on-year).
(iii) Other
Net sales of other businesses was ¥252 million (down 20.3% year-on-year) and segment profit(operating profit) was ¥106 million (down 29.8% year-on-year).
(2) Overview of financial position for the fiscal year
Total assets at the end of the fiscal year under review increased by ¥2,778 million from the end of theprevious fiscal year (hereinafter referred to as “the previous fiscal year-end”) to ¥59,450 million. Thiswas mainly due to an increase in current assets by ¥2,440 million mainly due to an increase in cash anddeposits, and a ¥337 million increase in non-current assets mainly due to an increase in machinery,equipment and vehicles.
Liabilities at the end of the fiscal year under review increased by ¥1,319 million from the previous
fiscal year-end to ¥11,891 million. This was mainly due to a decrease in non-current liabilities by ¥502
million mainly due to a decrease in deferred tax liabilities, while current liabilities increased by ¥1,822
million mainly due to an increase in income taxes payable.
The net assets at the end of the fiscal year under review increased by ¥1,458 million from the previous
fiscal year-end to ¥47,559 million. This was mainly due to an increase in shareholders’ equity by ¥958
million, mainly due to recording ¥3,327 million in profit attributable to owners of parent and ¥1,460
million in dividends paid, while accumulated other comprehensive income increased by ¥423 million,
mainly due to an increase in foreign currency translation adjustment.
(3) Overview of cash flows for the fiscal year
Cash and cash equivalents at the end of the fiscal year under review (hereinafter referred to as “cash”)
increased by ¥3,171 million from the previous fiscal year-end to ¥10,937 million. The status and main
breakdown of cash flows for the fiscal year under review are as follows.
Cash flows from operating activities
Net cash provided by operating activities for the fiscal year under review amounted to ¥6,278 million,
an increase of ¥4,838 million from the previous fiscal year. The main breakdown was an increase in
cash due to profit before income taxes of ¥4,867 million and recording depreciation of ¥1,436 million,
and a decrease in cash due to income taxes paid of ¥1,266 million.
Cash flows from investing activities
Net cash used in investment activities for the fiscal year under review decreased by ¥1,145 million
from the previous fiscal year to ¥634 million. The main breakdown was due to a decrease in cash due
to purchase of property, plant and equipment of ¥851 million.

-3-

NIPPON FINE CHEMICAL CO., LTD. (4362)

Cash flows from financing activities
Net cash used in financial activities for the fiscal year under review decreased by ¥775 million from theprevious fiscal year to ¥2,545 million. The main breakdown was due to a decrease in cash due todividends paid of ¥1,460 million and a decrease in cash due to purchase of treasury shares of ¥986
million.
(4) Future outlook
The Group will continue working to further strengthen its management base and promote selection andconcentration of products that can be expected to contribute to earnings growth. As for the consolidated
earnings forecasts for the fiscal year ending March 31, 2025, the Group forecasts net sales of ¥35,700
million (up 6.5% year-on-year), operating profit of ¥4,800 million (up 14.3% year-on-year), ordinary
profit of ¥4,900 million (up 10.0% year-on-year), and profit attributable to owners of parent of ¥3,450
million (up 3.7% year-on-year).
The main exchange rates used in the earnings forecasts are ¥140 per US$ and ¥150 per EUR.
(5) Basic policy on profit sharing and dividends for the fiscal year and next fiscal year
Our basic policy is to increase shareholder value, and we consider returning profits to shareholders as
one of the most important issues. We aim to improve and stabilize the level of dividends by targeting a
consolidated dividend on equity (DOE) of 3.5%.
With regard to retained earnings, we intend to invest effectively to build a foundation for further
growth, such as the development of new products, increased production capacity, digitization, thepromotion of sustainability, while ensuring that we are prepared for unforeseen situations such as largescale disasters and the spread of infectious diseases. We are confident that these investments will leadto an improvement in earnings in the future and a return of profits to shareholders.
Based on the above policy, the year-end dividend for the fiscal year under review is expected to be ¥35
per share. As a result, the annual dividends per share is ¥70 and the consolidated payout ratio is 47.8%.
In addition, the annual dividends per share for the next fiscal year is expected to be ¥74 per share.

-4-

NIPPON FINE CHEMICAL CO., LTD. (4362)

2. Basic rationale for selection of accounting standards
The Group will adopt Japanese GAAP for the time being, but will consider introducing IFRS in light of the
deepening of discussions in the future and the status of IFRS adoption by other companies in the same
industry.

-5-

NIPPON FINE CHEMICAL CO., LTD. (4362)

3. Consolidated financial statements and main notes(1) Consolidated balance sheet(Thousands of yen)Previous fiscal year
(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Total investments and other assets
Total non-current assets
Total assets-6-

Current fiscal year
(As of March 31, 2024)

8,937,431
8,855,955
4,001,642
2,290,016
4,718,263
788,202(695)
29,590,815

12,856,349
9,172,984
4,394,633
2,207,743
3,204,200
195,993(611)
32,031,293

14,960,944(8,223,518)
6,737,425
14,401,503(13,115,866)
1,285,637
3,719,989
1,794,239
3,535,871(2,845,786)
690,084
14,227,376
521,691

15,207,334(8,718,823)
6,488,511
16,201,121(13,493,090)
2,708,030
3,719,989
754,016
3,719,933(2,989,343)
730,589
14,401,138
778,227

12,017,715
67,408
247,729
12,332,853
27,081,921
56,672,737

11,861,254
117,430
261,404
12,240,090
27,419,456
59,450,750

NIPPON FINE CHEMICAL CO., LTD. (4362)(Thousands of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for environmental measures
Accounts payable - facilities
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Retirement benefit liability
Long-term accounts payable - other
Long-term guarantee deposits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

4,256,778
839,820
607,013717,500

3,954,884
812,146
1,351,647
718,076

79,752

41,554–
459,535–
655,448
7,615,849

426,000
983,910
82,6981,067,016
9,437,935

2,655,149
144,956
15,600102,890
9,430
27,652
2,955,679
10,571,528

2,186,638
127,775
19,65992,2005,730
21,5282,453,533
11,891,469

5,933,221
6,821,920
28,513,077(3,171,070)
38,097,149

5,933,221
6,870,796
30,368,637(4,117,485)
39,055,170

6,469,379
3,275
697,997(1,156)
7,169,496
834,562
46,101,208
56,672,737

6,613,546
4,400
947,951
26,718
7,592,616
911,493
47,559,280
59,450,750

NIPPON FINE CHEMICAL CO., LTD. (4362)(2) Consolidated statement of income and comprehensive income(Thousands of yen)Previous fiscal year
(From April 1, 2022
to March 31, 2023)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Depreciation
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on sale of investment securities
Loss on valuation of investment securities
Provision for environmental measures
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-8-

Current fiscal year
(From April 1, 2023
to March 31, 2024)

36,838,413
25,882,211
10,956,201
5,899,060
5,057,141

33,531,848
23,602,046
9,929,801
5,731,894
4,197,907

34,122
297,639
41,884
373,646

34,059307,861
60,855
402,776

1,260
22,288–17,34040,8905,389,897

1,308
15,204125,106
6,207
147,827
4,452,856

81,713
212,603294,317

1,341
932,174
933,516–
24,093–
16,889–––40,9835,643,232
1,383,761
94,044
1,477,806
4,165,426

10
10,54632,025–43,041
426,000
7,379
519,0034,867,369
1,992,523(544,265)
1,448,258
3,419,111

4,079,580
85,845

3,327,674
91,437684,465(34,947)
29,307(7,310)671,515
4,836,941

144,166
1,243
328,11027,875
501,396
3,920,508

4,747,509

3,750,794

89,431

169,714NIPPON FINE CHEMICAL CO., LTD. (4362)(3) Consolidated statement of changes in equity
Previous fiscal year (From April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

5,933,221

6,803,377

25,790,799(1,296,698)

Total shareholders’equity37,230,699

Changes during period
Dividends of surplus(1,346,506)(1,346,506)

Profit attributable to owners ofparent4,079,580

4,079,580

Purchase of treasury shares
Disposal of treasury shares(1,885,533)(1,885,533)

11,161

29,704

18,542

Employee welfare benefit fund

(10,795)(10,795)

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period–

18,5422,722,278(1,874,372)

866,449

5,933,221

6,821,920

28,513,077(3,171,070)

38,097,149

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

5,784,914

34,721

675,778

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincome6,154

6,501,567

Noncontrollinginterests

Total net assets

828,145

44,560,413

Changes during period
Dividends of surplus(1,346,506)

Profit attributable to owners ofparent4,079,580

Purchase of treasury shares(1,885,533)

Disposal of treasury shares

29,704

Employee welfare benefit fund

(10,795)

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

684,465(31,445)

22,219(7,310)667,929

6,416

674,345684,465(31,445)

22,219(7,310)667,929

6,416

1,540,795

6,469,379

3,275

697,997(1,156)

7,169,496

834,562

46,101,208-9-

NIPPON FINE CHEMICAL CO., LTD. (4362)

Current fiscal year (From April 1, 2023 to March 31, 2024)(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

5,933,221

6,821,920

28,513,077(3,171,070)

Total shareholders’equity38,097,149

Changes during period
Dividends of surplus(1,460,915)(1,460,915)

Profit attributable to owners ofparent3,327,674

3,327,674

Purchase of treasury shares
Disposal of treasury shares(986,983)(986,983)

40,56889,444

48,876

Employee welfare benefit fund

(11,198)(11,198)

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period–

48,876

1,855,560(946,414)

958,021

5,933,221

6,870,796

30,368,637(4,117,485)

39,055,170

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

6,469,379

3,275

697,997

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincome(1,156)

7,169,496

Noncontrollinginterests

Total net assets

834,562

46,101,208

Changes during period
Dividends of surplus(1,460,915)

Profit attributable to owners ofparent3,327,674

Purchase of treasury shares(986,983)

Disposal of treasury shares

89,444

Employee welfare benefit fund

(11,198)

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

144,166

1,124

249,953

27,875423,119

76,930500,050

144,166

1,124

249,953

27,875423,119

76,9301,458,071

6,613,546

4,400

947,951

26,718

7,592,616

911,493

47,559,280- 10 -

NIPPON FINE CHEMICAL CO., LTD. (4362)(4) Consolidated statement of cash flows(Thousands of yen)Previous fiscal year
(From April 1, 2022
to March 31, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for environmental
measuresInterest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sale and retirement of property, plant andequipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in guarantee deposits received
Increase (decrease) in trade payables
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Dividends paid to non-controlling interests
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

Current fiscal year
(From April 1, 2023
to March 31, 2024)

5,643,232
950,946–(1,399)33,248(40,519)

4,867,369
1,436,547
32,025(84)(17,180)(12,144)(178,555)

426,000(331,761)
1,260(6,175)(195,714)–(341,921)
1,308(25,139)(932,174)
43,041(57,620)

9,215(147,820)(2,586,099)(345)
361,619(260,705)
1,301,203(10,689)(312,545)(465,740)

524,652

4,898(118,538)
2,864,915
331,761(1,260)(1,756,211)
1,439,205

298,176
177,576
7,204,530
341,921(1,308)(1,266,998)
6,278,145–
290,100(2,606,730)
286,384(150,514)(1,165)401,966(1,779,960)(636,300)–(851,237)
5,212(414,762)(1,176)
1,264,101(634,162)(1,346,506)(79,666)(1,885,533)(8,519)(3,320,225)(1,460,915)(89,310)(986,983)(8,006)(2,545,215)

16,41872,509(3,644,561)
11,410,777
7,766,215

3,171,276
7,766,215
10,937,491

NIPPON FINE CHEMICAL CO., LTD. (4362)(5) Notes to consolidated financial statements
Notes on premise of going concern
Not applicable.
Changes in presentation
Consolidated statement of cash flows“Increase (decrease) in provision for environmental measures,” “Decrease (increase) in consumption
taxes refund receivable” and “Increase (decrease) in accrued consumption taxes,” which were included
in “Other, net” under “Cash flows from operating activities” in the previous fiscal year, have beenpresented individually from the fiscal year under review since their materiality in terms of value has
increased. To reflect this change in presentation, the consolidated financial statements for the previous
fiscal year have been reclassified.
As a result, ¥(757,935) thousand presented as “Other, net” in “Cash flows from operating activities” inthe consolidated statement of cash flows for the previous fiscal year has been reclassified as ¥(178,555)
thousand in “Increase (decrease) in provision for environmental measures,” ¥(465,740) thousand in“Decrease (increase) in consumption taxes refund receivable,” ¥4,898 thousand in “Increase (decrease)in accrued consumption taxes” and ¥(118,538) thousand in “Other, net.”
Segment information
1. Description of reporting segments
The Group’s reporting segments are subject to periodic review by the Board of Directors in order todetermine the allocation of management resources and evaluate performance, with separate
financial statements available among the constituent units of the Company and its subsidiaries.
The Company is developing comprehensive domestic and overseas strategies and businessactivities for its business units, which are organized by product and service, based on financial
statements that are segregated into the constituent units of the Company and its subsidiaries. The
Company’s reporting segments are “Functional products” and “Environmental hygiene products.”
The “Functional products” segment conducts manufacturing and sales, and stocking and sales ofcosmetic ingredients, wool grease derivatives, phospholipids, functional coating agents, resin
additives, vegetable oils and fats, synthetic resin products, and other products, and entrusts
pharmacology and safety tests. In “Environmental hygiene products,” we manufacture and sellcommercial detergents, medicinal soap solutions, disinfectants, and fungicides.
2. Method for calculating the amount of net sales, profits or losses, assets and other items by reporting
segment
The accounting method for the reported business segments is the same as the accounting method
used for the preparation of consolidated financial statements.
Profit of the reporting segment is based on operating profit. Internal revenue and transfer volumes
between segments are based on actual market prices.

- 12 -

NIPPON FINE CHEMICAL CO., LTD. (4362)

3. Information on net sales, profits or losses, assets and other items for each reporting segment andinformation on the decomposition of profits
Previous fiscal year (From April 1, 2022 to March 31, 2023)
Reporting segment

Net sales
Revenue from contracts
with customers
Other revenue
Revenues from externalcustomers
Intersegment sales ortransfers
Total(Thousands of yen)
Consolidated
Adjustment
financialamountstatement
Note: 2amounts
Note: 3Functional
products

Environmental
hygieneproducts

Total

28,448,089

8,073,433

36,521,522–

36,521,522–

36,521,522

–

–

–

316,890316,890–316,890

28,448,089

8,073,433

36,521,522

316,890

36,838,413–

36,838,413

282,952

31,015313,967

31,207345,174(345,174)–

28,731,041

8,104,448

36,835,490

348,097

37,183,587(345,174)

36,838,413

Other
Note: 1

Total

Segment profit

4,161,395

743,297

4,904,692

152,448

5,057,141–

5,057,141

Segment assets

31,333,683

3,686,291

35,019,975

1,862,199

36,882,174

19,790,563

56,672,737

831,121

67,199898,320

40,418

938,739

12,206

950,946

2,733,142

63,4452,796,587

29,3682,825,955–

2,825,955

Other items
Depreciation
Increase in property,
plant and equipment
and intangible assets

Notes: 1. The “Other” segment is a business segment that is not included in the reporting segment, and includes leasing ofreal estate.
2. The adjustments are as follows:(1) Adjustments to segment assets were ¥89,545 thousand (loss) for intersegment eliminations and ¥19,880,108
thousand for company-wide assets not allocated to each reporting segment. Corporate assets consist mainly of
surplus operating funds (cash and deposits), long-term investment funds (investment securities), and assets
related to administrative department at the parent company.
(2) Adjustments to depreciation of other items and increase in property, plant and equipment and intangible assets
pertain to company-wide assets not allocated to each reporting segment.
3. Segment profit is consistent with the operating profit in the consolidated statement of income and comprehensive
income.

- 13 -

NIPPON FINE CHEMICAL CO., LTD. (4362)

Current fiscal year (From April 1, 2023 to March 31, 2024)
Reporting segment

Net sales
Revenue from contracts
with customers
Other revenue
Revenues from externalcustomers
Intersegment sales ortransfers(Thousands of yen)
Consolidated
Adjustment
financialamountstatement
Note: 2amounts
Note: 3Functional
products

Environmental
hygieneproducts

Total

26,195,914

7,083,228

33,279,143–

33,279,143–

33,279,143

–

–

–

252,705

252,705–

252,705

26,195,914

7,083,228

33,279,143

252,705

33,531,848–

33,531,848

206,61427,752

234,367

125,964

360,331(360,331)–
33,531,848

Other
Note: 1

Total

Total

26,402,528

7,110,981

33,513,510

378,670

33,892,180(360,331)

Segment profit

3,603,278

487,672

4,090,950

106,956

4,197,907–

4,197,907

Segment assets

32,023,942

3,297,168

35,321,110

1,675,550

36,996,661

22,454,089

59,450,750

1,283,238

56,0691,339,308

32,222

1,371,530

65,017

1,436,547

1,543,780

24,312

1,568,093–

1,568,093

288,952

1,857,045

Other items
Depreciation
Increase in property,
plant and equipment
and intangible assets

Notes: 1. The “Other” segment is a business segment that is not included in the reporting segment, and includes leasing ofreal estate.
2. The adjustments are as follows:(1) Adjustments to segment assets were ¥104,669 thousand (loss) for intersegment eliminations and ¥22,558,758
thousand for company-wide assets not allocated to each reporting segment. Corporate assets consist mainly of
surplus operating funds (cash and deposits), long-term investment funds (investment securities), and assets
related to administrative department at the parent company.
(2) Adjustments to depreciation of other items pertain to company-wide assets not allocated to each reporting
segment.
3. Segment profit is consistent with the operating profit in the consolidated statement of income and comprehensive
income.

4. Disclosure of changes, etc. in reporting segments
Segments have been reorganized based on business fields from the first quarter of the fiscal year
under review.
The former “Industrial products” segment has been renamed the “Functional products” segment.
The Company’s household products in the “Household products” segment and the business of
entrusting pharmacology and safety tests in the “Other” segment have been incorporated into the“Functional products” segment. The former “Household products” segment has been renamed the“Environmental hygiene products” segment.
Segment information for the previous fiscal year is disclosed based on the new reporting segmentclassifications.
5. Information on impairment losses on non-current assets per reporting segment
Previous fiscal year (From April 1, 2022 to March 31, 2023)
Not applicable.

- 14 -

NIPPON FINE CHEMICAL CO., LTD. (4362)

Current fiscal year (From April 1, 2023 to March 31, 2024)(Thousands of yen)
Functional
products
Impairment losses

32,025

Environmental
hygiene products

Unallocatedamounts andelimination

Other

–

–

Per share information
Previous fiscal year (From April 1,
2022 to March 31, 2023)
Net assets per share
Basic earnings per share

Total
–

32,025(Yen)
Current fiscal year (From April 1, 2023
to March 31, 2024)

1,984.58

2,074.07

174.42146.40Notes: 1. Diluted earnings per share are not listed because there is no potential stock.
2. The basis for calculating basic earnings per share is as follows.
Previous fiscal year (From April 1,
2022 to March 31, 2023)

Current fiscal year (From April 1,
2023 to March 31, 2024)

Basic earnings per share
Profit attributable to owners ofparent (Thousands of yen)

4,079,580

3,327,674

Value not attributable toshareholders of common shares(Thousands of yen)––

Profit attributable to owners ofparent pertaining to commonshares (Thousands of yen)

4,079,580

3,327,674

Average number of shares
outstanding during the period(Shares)

23,388,950

22,729,533

Subsequent events
Not applicable.

- 15 -