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.

January 30, 2024

Consolidated Financial Results for the Nine Months Ended December 31,
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:
February 13, 2024
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 nine months ended December 31, 2023 (from April 1, 2023
to December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
December 31, 2023
December 31, 2022

Operating profit

Millions of yen% Millions of yen

24,302
27,762

Note: Comprehensive income(12.5)
12.0

2,963
4,117

Profit attributable toowners of parent

Ordinary profit% Millions of yen(28.0)
9.6

3,246
4,413

% Millions of yen(26.4)
10.9

2,298
3,152

%

(27.1)
17.5

For the nine months ended December 31, 2023 ¥2,800 million[(15.0)%]
For the nine months ended December 31, 2022 ¥3,294 million [29.5%]

Basic earnings per
share
Nine months ended
December 31, 2023
December 31, 2022

(Percentages indicate year-on-year changes.)

Diluted earnings per
share

Yen

100.79133.69Yen––(2) Consolidated financial position
Total assets
As ofDecember 31, 2023
March 31, 2023
Reference:

EquityAs of December 31, 2023
As of March 31, 2023

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

57,261
56,672

46,946
46,101¥46,049 million¥45,266 million

%

80.4
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

–

28.00

–

–

35.00

–

Fiscal year-end

Fiscal year ending
March 31, 2024
(Forecast)

Total

Yen

Yen

29.00

57.00

35.00

70.00

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
Millions ofyen(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit%

Millions ofyen%Millions ofyenFull year
35,500(3.6)
4,400 (13.0)
4,700
Note: Revisions to the earnings forecasts most recently announced: None%

Millions of
yen

%

Yen

(12.8)

3,250(20.3)

142.28

* 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 December 31, 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 December 31, 2023

2,736,309 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)
Nine months ended December 31, 2023

22,799,429 shares

Nine months ended December 31, 2022

23,578,535 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 nine months ended December 31, 2023, although weakness in domestic demand wasobserved, the recovery in demand from inbound tourism to the level existing prior to the COVID-19
pandemic and other factors allowed the Japanese economy as a whole to continue to recover gradually.
At the same time, in the overseas economies, the outlook remains uncertain due to factors including
soaring global resource and energy prices caused by the protracted situations in Ukraine and the
Middle-East, the beginnings of signs of slowdown in the US economy, ongoing slowdown in theEuropean economies and stagnation in the Chinese economy due to the collapse of the real estate
bubble.
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 nine months of the fiscal year under review decreased to ¥24,302
million (down 12.5% year-on-year). In terms of profit, operating profit was ¥2,963 million (down
28.0% year-on-year), and ordinary profit was ¥3,246 million (down 26.4% year-on-year). Profit
attributable to owners of parent was ¥2,298 million (down 27.1% 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 ¥18,768 million (down 12.4% year-on-year). Segment profit(operating profit) was ¥2,523 million (down 25.6% year-on-year).
Reference:Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

Beauty care
Health careFine chemical
Trading

5,559
4,077
5,386
6,406

5,874
3,763
3,665
5,464

315
(313)
(1,721)(942)

5.7%(7.7%)(32.0%)(14.7%)

Total net sales

21,42918,768(2,661)(12.4%)

Beauty care
Health careFine chemical
Trading

1,584
613
975
216

1,671
101
509
241

86
(511)
(466)
24

5.5%
(83.4%)(47.8%)
11.3%

Total operating profit

3,390

2,523

(866)

(25.6%)(Unit: Millions of yen)

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 plantfor phospholipids for pharmaceuticals.
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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 slowing of demand for infection control products after the change in the legal status of
COVID-19. As a result, net sales was ¥5,344 million (down 12.2% year-on-year) and segment
profit (operating profit) was ¥358 million (down 40.0% year-on-year).
(iii) Other
Net sales of other businesses was ¥190 million (down 21.6% year-on-year) and segment profit(operating profit) was ¥81 million (down 37.1% year-on-year).
(2) Explanation of financial position
Total assets at the end of the third quarter of the fiscal year under review increased by ¥588 million
from the end of the previous fiscal year (hereinafter referred to as “the previous fiscal year-end”) to¥57,261 million. This was mainly due to an increase in current assets by ¥417 million due mainly to anincrease in cash and deposits, and a ¥170 million increase in non-current assets due mainly to anincrease in machinery, equipment and vehicles.
Liabilities at the end of the third quarter of the fiscal year under review decreased by ¥256 million fromthe previous fiscal year-end to ¥10,315 million. This was mainly due to a decrease in current liabilitiesby ¥58 million due mainly to a decrease in notes and accounts payable-trade, and a ¥197 million
decrease in non-current liabilities due to a decrease in deferred tax liabilities.
The net assets at the end of the third quarter of the fiscal year under review increased by ¥845 million
from the previous fiscal year-end to ¥46,946 million. This was mainly due to an increase inshareholders’ equity by ¥375 million, due to recording ¥2,298 million in profit attributable to owners ofparent, despite an increase of ¥510 million in treasury shares and ¥1,460 million in dividends paid,
while accumulated other comprehensive income increased by ¥407 million, mainly due to an increasein valuation difference on available-for-sale securities.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There are no changes to our full-year earnings forecasts announced on October 30, 2023. Earnings
forecasts are created based on information available at the time, and actual performance may vary fromforecasted 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, 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 third quarter(As of December 31, 2023)

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

10,183,609
8,575,595
5,069,943
2,003,743
3,902,636
273,601(640)
30,008,490

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

6,519,881
2,727,050
3,719,989
189,415
732,801
13,889,139
773,112

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

12,223,043
77,121
290,504
12,590,668
27,252,920
57,261,410

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
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-Previous fiscal year
(As of March 31, 2023)

Current third quarter(As of December 31, 2023)

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

3,935,381
608,864
652,282
411,484

79,752

29,846–459,535
655,448
7,615,849

426,000
334,735
1,158,718
7,557,313

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

2,480,983
133,903
19,65990,782
9,430
23,044
2,757,803
10,315,116

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

5,933,221
6,870,796
29,350,263(3,681,760)
38,472,521

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

6,805,546(14,782)
786,803(1,004)
7,576,562
897,20946,946,293
57,261,410

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
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
Loss on sale of investment securities
Loss on valuation of investment securities
Provision for environmental measures
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 third quarter(Cumulative)(From April 1, 2022
to December 31, 2022)
27,762,076
19,301,855
8,460,220
4,342,573
4,117,647

Current third quarter(Cumulative)(From April 1, 2023
to December 31, 2023)
24,302,907
17,075,363
7,227,543
4,263,918
2,963,625

32,041
247,871
32,316
312,229

28,940260,966
34,294324,201

836
10,318–
5,583
16,737
4,413,139

896
8,599
29,5342,369
41,3993,246,427

80,207
150,600
230,807

1,341
528,244529,586–
12,80916,889––29,6994,614,247
1,163,818
234,305
1,398,124
3,216,123

9
9,028
–
51,101
426,000
486,1393,289,873
1,248,686(326,371)
922,315
2,367,557

3,152,380
63,743

2,298,100
69,457

144,256(49,002)(16,319)(807)
78,126
3,294,250

336,167(20,060)
116,798
151
433,056
2,800,614

3,239,210

2,705,166

55,03995,448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 third quarter (Cumulative) (From April 1, 2022 to December 31, 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

21,429,999

6,089,648

27,519,648–

27,519,648–

27,519,648

–

–

–

242,428

242,428–

242,428

21,429,999

6,089,648

27,519,648

242,428

27,762,076–

27,762,076

228,10923,804

251,913

23,663

275,576(275,576)

–

Total

21,658,109

6,113,452

27,771,562

266,091

28,037,653(275,576)

27,762,076

Segment profit

3,390,060

598,072

3,988,132

129,515

4,117,647–

4,117,647

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 third quarter (Cumulative) (From April 1, 2023 to December 31, 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

18,768,182

5,344,636

24,112,818–

24,112,818–

24,112,818

–

–

–

190,088

190,088–

190,088

18,768,182

5,344,636

24,112,818

190,088

24,302,907–

24,302,907

152,666

22,265

174,931

98,556

273,488(273,488)

–

Total

18,920,848

5,366,901

24,287,749

288,645

24,576,395(273,488)

24,302,907

Segment profit

2,523,423

358,6932,882,117

81,5082,963,625–

2,963,625

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

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