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 28, 2023

Consolidated Financial Results for the Three Months Ended June 30, 2023
(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 file quarterly securities report:
August 10, 2023
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly 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, 2023 (from April 1, 2023 toJune 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three months ended
June 30, 2023
June 30, 2022

Operating profit

Millions of yen% Millions of yen

8,104
9,442

Note: Comprehensive income(Percentages indicate year-on-year changes.)(14.2)
14.3

1,057
1,497

% Millions of yen(29.4)
12.9

1,191
1,633

For the three months ended June 30, 2023
For the three months ended June 30, 2022

Basic earnings per
share
Three months ended
June 30, 2023
June 30, 2022

Profit attributable toowners of parent

Ordinary profit% Millions of yen(27.0)
14.5

834
1,096

%

(23.8)
13.6¥1,542 million [43.5%]¥1,075 million [(4.6)%]

Diluted earnings per
share

Yen

36.60
46.41

Yen

–
–

(2) Consolidated financial position
Total assets
As ofJune 30, 2023
March 31, 2023
Reference:

EquityAs of June 30, 2023
As of March 31, 2023

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

56,79756,672

46,94946,101¥46,094 million¥45,266 million

%

81.2
79.9

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

Second quarter-end

Third quarter-end

Yen

Yen

Yen

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

Fiscal year-end

Total

Yen

Yen

28.00

–

29.00

57.00

35.00

–

35.00

70.00

–

Fiscal year ending
March 31, 2024
(Forecast)

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

3. Consolidated earnings forecasts for the year ending March 31, 2024 (from April 1, 2023 to March
31, 2024)
Net sales(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

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

%

Yen

18,000

(3.6)

2,100

(23.0)

2,280(21.5)

1,630(16.7)

71.46

Full year
38,000
3.2
4,800
(5.1)
5,150
Note: Revisions to the earnings forecasts most recently announced: None

(4.5)

3,600

(11.8)

157.83

Second quarter(cumulative)

* 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) 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, 2023

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 June 30, 2023

2,563,444 shares

As of March 31, 2023

2,563,350 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Three months ended June 30, 2023

22,809,063 shares

Three months ended June 30, 2022

23,615,507 shares* Quarterly financial results reports are exempt from quarterly review 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 page 3 of the attached materials “1. Qualitative
information on financial results for the period under review (3) Explanation of consolidated earnings
forecasts and other forward-looking statements” for the conditions that are the premise of the earnings
forecasts and cautions when using the earnings forecasts.

NIPPON FINE CHEMICAL CO., LTD. (4362)○ Table of contents of attached materials
Index
1. Qualitative information on financial results for the period under review ................................................. 2(1) Explanation of operating results ......................................................................................................... 2(2) Explanation of financial position........................................................................................................ 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(Segment information) ....................................................................................................................... 7-1-

NIPPON FINE CHEMICAL CO., LTD. (4362)

1. Qualitative information on financial results for the period under review(1) Explanation of operating results
During the three months ended June 30, 2023, while business conditions in the manufacturing industry
were sluggish due to the slowdown of overseas economies, business conditions in non-manufacturingindustries improved as consumer spending and demand from inbound tourism recovered, and theJapanese economy as a whole continued to recover gradually. As for the future, economic recovery
driven by domestic demand is expected against the backdrop of a recovery in demand from inboundtourism and other factors. However, concerns over downturns due to further slowdowns of overseas
economies such as Europe, the U.S., and China mean that the outlook remains uncertain.
In this business environment, the Group has been working to further strengthen its management baseand develop products that contribute to the expansion of earnings and expand sales.
As a result, net sales for the first three months of the fiscal year under review decreased to ¥8,104
million (down 14.2% year-on-year). In terms of profit, operating profit was ¥1,057 million (down
29.4% year-on-year), and ordinary profit was ¥1,191 million (down 27.0% year-on-year). Profit
attributable to owners of parent was ¥834 million (down 23.8% 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
In this segment, net sales was ¥6,342 million (down 14.7% year-on-year). Segment profit(operating profit) was ¥940 million (down 26.9% year-on-year).
Reference:
Three months ended
June 30, 2022

Three months ended
June 30, 2023

Beauty care
Health careFine chemical
Trading

2,112
1,376
1,862
2,085

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

(63)
(338)
(625)
(66)

(3.0%)(24.6%)(33.6%)(3.2%)

Total net sales

7,436

6,342

(1,093)(14.7%)

Beauty care
Health careFine chemical
Trading

604
305
297
79

607
16
240
75

3
(288)
(57)
(3)

0.5%
(94.8%)(19.2%)(5.1%)

1,286

940

(346)

(26.9%)(Unit: Millions of yen)

Total operating profit

Year-on-year
differenceYear-on-yearchangesBeauty care
Overseas sales of wool grease derivatives for cosmetics decreased against the backdrop of aslowdown in overseas economies, but overseas sales of functional esters for cosmetics increased
due to sales expansion activities in response to the needs of sustainable aspect by customers.
Domestic sales of phospholipids for cosmetics also increased due to steady progress in sales
expansion.
Health care
Sales of phospholipids for pharmaceuticals decreased due to the impact of test production being
implemented according to plan for the commencement of commercial production at the new plantfor phospholipids for pharmaceuticals. Depreciation also increased due to the launch of the newplant. Additionally, overseas sales of wool grease derivatives for pharmaceuticals decreased against
the backdrop of a slowdown in overseas economies.

-2-

NIPPON FINE CHEMICAL CO., LTD. (4362)

Fine chemical
Sales of fatty acid amides, acid chlorides, and industrial wool grease derivatives decreased against
the backdrop of a slowdown in overseas economies.
(ii) Environmental hygiene products
In this segment, sales of hand sanitizers decreased due to inventory adjustments in the market in
addition to a decline in demand for infection control products as the COVID-19 infection situation
settled down. As a result, net sales was ¥1,688 million (down 12.4% year-on-year) and segment
profit (operating profit) was ¥87 million (down 47.9% year-on-year).
(iii) Other
Net sales of other businesses was ¥73 million (down 8.9% year-on-year) and segment profit(operating profit) was ¥29 million (down 30.7% year-on-year).
(2) Explanation of financial position
Total assets at the end of the first quarter of the fiscal year under review increased by ¥124 million fromthe end of the previous fiscal year (hereinafter referred to as “the previous fiscal year-end”) to ¥56,797
million. This was mainly due to a ¥745 million increase in non-current assets mainly due to an increase
in investment securities, despite a decrease in current assets by ¥620 million mainly due to a decreasein notes and accounts receivable - trade.
Liabilities at the end of the first quarter of the fiscal year under review decreased by ¥723 million fromthe previous fiscal year-end to ¥9,848 million. This was mainly due to a decrease in current liabilitiesby ¥1,069 million mainly due to a decrease in income taxes payable, while non-current liabilities
increased by ¥346 million 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 ¥848 million
from the previous fiscal year-end to ¥46,949 million. This was mainly due to an increase inshareholders’ equity by ¥173 million, mainly due to recording ¥834 million in profit attributable toowners of parent and ¥661 million in dividends paid, while accumulated other comprehensive income
also increased by ¥654 million, mainly due to an increase in valuation difference on available-for-salesecurities.
(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 28, 2023 in our “Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
(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.

-3-

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, 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, 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, 2023)

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

9,169,496
8,041,809
3,783,864
2,920,003
4,725,120
330,473(647)
28,970,120

6,737,425
1,285,637
3,719,989
1,794,239
690,084
14,227,376
521,691

6,644,894
2,871,903
3,719,989
110,688
709,967
14,057,443
623,203

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

12,812,392
72,811
261,696
13,146,900
27,827,548
56,797,669

NIPPON FINE CHEMICAL CO., LTD. (4362)(Thousands of yen)Previous fiscal year
(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Accounts payable - facilities
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, 2023)

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

3,880,491
794,568
175,016
330,562

79,752

12,142459,535
655,448
7,615,849

214,044
1,139,604
6,546,430

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

3,019,771
135,990
19,65990,8469,430
26,1163,301,815
9,848,246

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

5,933,221
6,821,920
28,686,584(3,171,332)
38,270,394

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

7,020,431
9,892
794,560(1,105)
7,823,777855,251
46,949,423
56,797,669

NIPPON FINE CHEMICAL CO., LTD. (4362)(2) Quarterly consolidated statement of income and comprehensive income (cumulative)(Thousands of yen)

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
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of investment securities
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-

Previous first quarter(Cumulative)(From April 1, 2022
to June 30, 2022)
9,442,526
6,511,859
2,930,667
1,432,921
1,497,746

Current 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

5,501
121,824
13,819141,144

3,889
122,887
11,449138,226

311
5,164
9
5,485
1,633,405

265
1,073
2,161
3,500
1,191,855

1,715
8,547
10,262
1,623,142
526,299(18,673)507,626
1,115,515

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

1,096,034
19,481

834,970
22,292(241,403)
392
200,858(269)(40,421)
1,075,094

551,051
7,345
127,02950
685,477
1,542,741

1,007,612

1,489,251

67,48153,489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.
(Segment information)[Segment information]
I.

Previous first quarter (Cumulative) (From April 1, 2022 to June 30, 2022)
1. Information on net sales and profits or losses for each reporting segment, and information on
the decomposition of profits
Reporting segment(Thousands of yen)
Quarterly
consolidated
statement of
Adjustment
income andamountcomprehensive income
amounts
Note: 2Functional
products

Environmental
hygieneproducts

Total

7,436,326

1,926,017

9,362,344–

9,362,344–

9,362,344–––

80,18280,182–80,1827,436,326

1,926,017

9,362,344

80,1829,442,526–

9,442,526

68,412

9,320

77,732

8,006

85,739(85,739)–

Total

7,504,739

1,935,337

9,440,077

88,1899,528,266(85,739)

9,442,526

Segment profit

1,286,816

168,805

1,455,621

42,124

1,497,746–

1,497,746

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 the realestate business.
2. Segment profit is consistent with the operating profit in the quarterly consolidated statement of income andcomprehensive income.

-7-

NIPPON FINE CHEMICAL CO., LTD. (4362)

II. Current first quarter (Cumulative) (From April 1, 2023 to June 30, 2023)
1. Information on net sales and profits or losses for each reporting segment, and information on
the decomposition 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 the realestate business.
2. Segment profit is consistent with the operating profit in the quarterly consolidated statement of income andcomprehensive income.

2. 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 first quarter (cumulative) is disclosed based on the newreporting segment classifications.

-8-