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.

July 30, 2024

Consolidated Financial Results for the Three Months Ended June 30, 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 to commence dividend payments:–
Preparation of supplementary material on financial results:
None
Holding of financial results meeting:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 toJune 30, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended
June 30, 2024
June 30, 2023

Operating profit

Millions of yen% Millions of yen

8,260
8,104

Note: Comprehensive income(Percentages indicate year-on-year changes.)

1.9(14.2)

995
1,057% Millions of yen(5.8)(29.4)

1,110
1,191

For the three months ended June 30, 2024
For the three months ended June 30, 2023

Basic earnings per
share
Three months ended
June 30, 2024
June 30, 2023

Profit attributable toowners of parent

Ordinary profit% Millions of yen(6.8)(27.0)

787
834

%

(5.7)
(23.8)¥1,420 million [(7.9)%]¥1,542 million [43.5%]

Diluted earnings per
share

Yen

34.99
36.60

Yen

–
–

(2) Consolidated financial position
Total assets
As ofJune 30, 2024
March 31, 2024
Reference:

EquityAs of June 30, 2024
As of March 31, 2024

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

60,24459,45048,161
47,559¥47,208 million¥46,647 million

%

78.4
78.5

2. Status of dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025–

Fiscal year-end

Total

Yen

Yen

35.00

–

35.00

70.00

37.00

–

37.00

74.00

–

Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts 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

17,000

5.1

2,250

14.8

2,250

6.0

1,600

6.7

71.14

Full year
35,7006.5
4,800 14.3
4,900
Note: Revisions to the earnings forecasts most recently announced: None

10.0

3,450

3.7

153.40

Second quarter(cumulative)

* Notes(1) Significant changes in the scope of consolidation during the period: None
Newly included: - (company name) Excluded: - (company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) 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
(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

25,372,447 shares

As of March 31, 2024

25,372,447 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

2,881,790 shares

As of March 31, 2024

2,881,540 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Three months ended June 30, 2024

22,490,728 shares

Three months ended June 30, 2023

22,809,063 shares* Review of the Japanese-language originals of the attached quarterly consolidated financial statements bycertified public accountants or an audit corporation: None
* 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 page 3 of the attached materials “1. Overview
of operating results and others (3) Explanation of consolidated earnings forecasts and other forwardlooking statements” for the conditions that are the premise of the earnings forecasts and cautions whenusing the earnings forecasts.

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 period under review ................................................................ 2(2) Overview of financial position for the period under review............................................................... 3(3) Explanation of consolidated earnings forecasts and other forward-looking statements ..................... 3
2. Quarterly consolidated financial statements and main notes .................................................................... 4(1) Quarterly consolidated balance sheet ................................................................................................. 4(2) Quarterly consolidated statement of income and comprehensive income (cumulative) .................... 6(3) Notes to quarterly consolidated financial statements ......................................................................... 7(Notes on premise of going concern) ................................................................................................. 7(Notes when there are significant changes in amounts of shareholders’ equity) ................................ 7(Notes on quarterly consolidated statement of cash flows) ................................................................ 7(Notes on segment information) ......................................................................................................... 8-1-

NIPPON FINE CHEMICAL CO., LTD. (4362)

1. Overview of operating results and others(1) Overview of operating results for the period under review
During the three months ended June 30, 2024, the Japanese economy continued its gradual recovery led
by domestic demand, with a moderate recovery in consumer spending against the backdrop of an
improved employment and income environment as well as the wealth effect from rising stock prices, inaddition to a continuing upward trend in corporate capital investment supported by high levels ofcorporate earnings. At the same time, in overseas economies, although inflationary pressures haveeased and the current economic conditions are picking up, the outlook remains uncertain due to suchfactors as the resurgence of soaring global resource and energy prices caused by the prolonged unrest in
Ukraine and the Middle East, a greater-than-expected stagnant Chinese economy due to the ongoingreal estate recession, and concerns over the impact of the next administration’s policies following the
U.S. presidential election.
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 first three months of the fiscal year under review increased to ¥8,260
million (up 1.9% year-on-year). In terms of profit, operating profit was ¥995 million (down 5.8% yearon-year), and ordinary profit was ¥1,110 million (down 6.8% year-on-year). Profit attributable toowners of parent was ¥787 million (down 5.7% year-on-year).
Operating results for each segment are as follows.
(i) Functional products
In this segment, net sales was ¥6,523 million (up 2.8% year-on-year). Segment profit (operating
profit) was ¥863 million (down 8.2% year-on-year).
Reference:
Three months ended
June 30, 2023

Three months ended
June 30, 2024

Beauty care
Health careFine chemical
Trading

2,048
1,038
1,237
2,018

2,157
1,120
1,231
2,013

108
82
(5)
(4)

5.3%
7.9%
(0.5%)(0.2%)

Total net sales

6,342

6,523

180

2.8%

Beauty care
Health careFine chemical
Trading

607
16
240
75

600
15
133
114

(7)
(1)
(107)
38

(1.2%)(6.6%)(44.6%)
51.4%

Total operating profit

940

863

(76)

(8.2%)(Unit: Millions of yen)

Year-on-year
differenceYear-on-yearchangesBeauty care
Despite negative factors such as a decrease in sales of phospholipids for cosmetics and active
ingredients, operating profit remained at the same level as the previous year due to a significant
increase in overseas sales of functional esters for cosmetics as well as robust performance indomestic sales thereof.
Health care
Regarding phospholipids for pharmaceuticals, commercial production at the new plant based on thealliance with Gilead Sciences, Inc. is progressing as planned, but operating profit was flat year-onyear due to the impact of delayed shipments.

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NIPPON FINE CHEMICAL CO., LTD. (4362)

Fine chemical
Operating profit decreased significantly due to a decline in sales of acid chlorides as well as adeterioration of the sales mix of industrial wool grease derivatives.
(ii) Environmental hygiene products
In this segment, efforts to reduce costs and revise selling prices resulted in net sales of ¥1,679
million (down 0.5% year-on-year) and segment profit (operating profit) of ¥108 million (up 22.9%
year-on-year).
(iii) Other
Net sales of other businesses was ¥57 million (down 21.3% year-on-year) and segment profit(operating profit) was ¥24 million (down 17.1% year-on-year).
(2) Overview of financial position for the period under review
Total assets at the end of the first quarter of the fiscal year under review increased by ¥793 million fromthe end of the previous fiscal year (hereinafter referred to as “the previous fiscal year-end”) to ¥60,244
million. This was mainly due to a ¥1,189 million increase in non-current assets mainly due to anincrease in investment securities, despite a decrease in current assets by ¥395 million mainly due to adecrease in notes and accounts receivable - trade.
Liabilities at the end of the first quarter of the fiscal year under review increased by ¥191 million fromthe previous fiscal year-end to ¥12,083 million. This was mainly due to an increase in current liabilitiesby ¥25 million mainly due to an increase in accounts payable - facilities, and a ¥166 million increase in
non-current liabilities mainly due to an increase in deferred tax liabilities.
The net assets at the end of the first quarter of the fiscal year under review increased by ¥601 million
from the previous fiscal year-end to ¥48,161 million. This was mainly due to an increase inaccumulated other comprehensive income by ¥560 million mainly due to an increase in valuationdifference on available-for-sale securities.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There are no changes to our second-quarter (cumulative) or full-year earnings forecasts announced on
April 30, 2024 in our “Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(Japanese GAAP).”
Earnings forecasts are created based on information available at the time, and actual performance mayvary from forecasted values due to a variety of future factors.

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NIPPON FINE CHEMICAL CO., LTD. (4362)

2. Quarterly consolidated financial statements and main notes(1) Quarterly consolidated balance sheet(Thousands of yen)Previous fiscal year
(As of March 31, 2024)
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, net
Machinery, equipment and vehicles, net
LandConstruction in progress
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-4-

Current first quarter(As of June 30, 2024)

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

12,500,747
8,458,419
4,067,416
2,498,086
3,552,146
559,543(590)
31,635,769

6,488,511
2,708,030
3,719,989
754,016
730,589
14,401,138
778,227

6,443,957
2,832,581
3,719,989
1,308,692
738,569
15,043,791
754,446

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

12,439,940
119,386
251,118
12,810,445
28,608,683
60,244,452

NIPPON FINE CHEMICAL CO., LTD. (4362)(Thousands of yen)Previous fiscal year
(As of March 31, 2024)
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-5-

Current first quarter(As of June 30, 2024)

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

3,956,402
1,203,463
330,277
852,999

41,554

12,913426,000
983,910
82,6981,067,016
9,437,935

213,000
1,806,995
82,6981,004,470
9,463,220

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

2,371,361
129,048
4,059
89,875
5,730
20,0532,620,129
12,083,350

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

5,933,221
6,870,796
30,368,600(4,117,792)
39,054,826

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

7,014,640
11,785
1,101,493
25,5498,153,470
952,805
48,161,102
60,244,452

NIPPON FINE CHEMICAL CO., LTD. (4362)(2) Quarterly consolidated statement of income and comprehensive income (cumulative)
Previous first quarter(Cumulative)(From April 1, 2023
to June 30, 2023)
8,104,121
5,654,686
2,449,434
1,392,305
1,057,129

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 losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
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-6-(Thousands of yen)
Current first quarter(Cumulative)(From April 1, 2024
to June 30, 2024)
8,260,660
5,832,048
2,428,611
1,433,201
995,410

3,889
122,887
11,449138,226

4,027
124,974
13,293
142,295

265
1,073
–
2,161
3,500
1,191,855

265
13,241
12,478793
26,777
1,110,927

–
403
–
403
1,191,452
224,410
109,778
334,189
857,263

49
2,204
211
2,465
1,108,462
290,422
7,483
297,905
810,556

834,970
22,292

787,143
23,412551,051
7,345
127,02950
685,477
1,542,741

401,094
8,205
201,562(1,168)609,6931,420,250

1,489,251

1,347,997

53,48972,252NIPPON FINE CHEMICAL CO., LTD. (4362)(3) Notes to quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Notes when there are significant changes in amounts of shareholders’ equity)
Not applicable.
(Notes on quarterly consolidated statement of cash flows)
Quarterly consolidated statement of cash flows for the first three months of the fiscal year under review
is not prepared. Depreciation (including amortization of intangible assets) for the first three months of
the fiscal year under review is as follows:(Thousands of yen)Previous first quarter(Cumulative)(From April 1, 2023
to June 30, 2023)
Depreciation

Current first quarter(Cumulative)(From April 1, 2024
to June 30, 2024)
294,777-7-

321,547

NIPPON FINE CHEMICAL CO., LTD. (4362)(Notes on segment information)[Segment information]
I.

Previous first quarter (Cumulative) (From April 1, 2023 to June 30, 2023)
Information on net sales and profits or losses for each reporting segment, and information on thedecomposition of profits
Reporting segment(Thousands of yen)
Quarterly
consolidated
statement of
Adjustment
income andamountcomprehensive income
amounts
Note: 2Functional
products

Environmental
hygieneproducts

Total

6,342,963

1,688,080

8,031,044–

8,031,044–

8,031,044–––

73,07673,076–73,076

6,342,963

1,688,080

8,031,044

73,076

8,104,121–

8,104,121

51,4698,97860,447

29,71590,162(90,162)–

Total

6,394,433

1,697,059

8,091,492

102,791

8,194,283(90,162)

8,104,121

Segment profit

940,035

87,9101,027,946

29,183

1,057,129–

1,057,129

Net sales
Revenue from contracts
with customers
Other revenue
Revenues from externalcustomers
Intersegment sales ortransfers

Other
Note: 1

Total

Notes: 1. The “Other” segment is a business segment that is not included in the reporting segment, and includes leasing ofreal estate.
2. Segment profit is consistent with the operating profit in the quarterly consolidated statement of income andcomprehensive income.

II. Current first quarter (Cumulative) (From April 1, 2024 to June 30, 2024)
Information on net sales and profits or losses for each reporting segment, and information on thedecomposition of profits
Reporting segment(Thousands of yen)
Quarterly
consolidated
statement of
Adjustment
income andamountcomprehensive income
amounts
Note: 2Functional
products

Environmental
hygieneproducts

Total

6,523,577

1,679,593

8,203,171–

8,203,171–

8,203,171–––

57,48957,489–57,4896,523,577

1,679,593

8,203,171

57,4898,260,660–

8,260,660

36,558

8,393

44,951

32,684

77,636(77,636)–

Total

6,560,135

1,687,987

8,248,123

90,173

8,338,296(77,636)

8,260,660

Segment profit

863,215

108,006

971,221

24,188995,410–995,410

Net sales
Revenue from contracts
with customers
Other revenue
Revenues from externalcustomers
Intersegment sales ortransfers

Other
Note: 1

Total

Notes: 1. The “Other” segment is a business segment that is not included in the reporting segment, and includes leasing ofreal estate.

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NIPPON FINE CHEMICAL CO., LTD. (4362)
2. Segment profit is consistent with the operating profit in the quarterly consolidated statement of income andcomprehensive income.

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