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 28, 2022

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
(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 23, 2022
Scheduled date to commence dividend payments
June 24, 2022
Scheduled date to file annual securities report:
June 24, 2022
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, 2022 (from April 1, 2021 toMarch 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Millions of yen% Millions of yen

33,44830,509Note: Comprehensive income

9.6
5.0

Reference:

Note:

Diluted earnings
per shareYen

146.32
116.17

Yen––

Profit attributable toowners of parent

Ordinary profit% Millions of yen

4,881
3,939

23.9
8.2

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Basic earnings per
share
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

5,127
4,154
¥3,118 million¥5,325 million

Return on equity% Millions of yen

23.4
6.0

3,472
2,758

%

25.9
5.3

[(41.4)%][253.1%]

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

%

%

%

8.1
6.9

9.5
8.2

14.6
12.9

Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2022¥-million
Fiscal year ended March 31, 2021¥-million
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and each figure for the
fiscal year ended March 31, 2022, is the figure after applying the accounting standard and relevant ASBJ
regulations.

(2) Consolidated financial position
Total assets
As ofMarch 31, 2022
March 31, 2021

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

54,80753,26544,56042,84679.8
79.1

1,851.84
1,773.54

Reference:

Note:

EquityAs of March 31, 2022
¥43,732 million
As of March 31, 2021
¥42,116 million
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and each figure for the
fiscal year ended March 31, 2022, is the figure after applying the accounting standard and relevant ASBJ
regulations.

(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

2,285
4,698

(2,741)(2,418)(1,399)(874)

11,41013,187

Fiscal year ended
March 31, 2022
March 31, 2021
Note:

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and each figure for the
fiscal year ended March 31, 2022, is the figure after applying the accounting standard and relevant ASBJ
regulations.

2. Status of dividends
Annual dividends per share

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(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

–

16.50

–

18.50

35.00

831

30.1

2.1

–

25.00

–

29.00

54.00

1,278

36.9

3.0

–

28.00

–

28.00

56.00

37.8

3. Forecast of financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31,
2023)
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

Second quarter(cumulative)

17,900

10.4

2,450

2.6

2,600

3.3

1,750

3.0

74.10

Full year

36,000

7.6

4,850

(0.7)

5,200

1.4

3,500

0.8

148.20* 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.: Yes(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For details, please refer to the attached document on page 12 “3. Consolidated financial
statements and main notes (5) Notes to consolidated financial statements (Changes inaccounting policies)”.
(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, 2022

25,372,447 shares

As of March 31, 2021

25,372,447 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

1,756,940 shares

As of March 31, 2021

1,625,639 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2022

23,730,529 sharesFiscal year ended March 31, 2021

23,746,913 shares

Reference: Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 toMarch 31, 2022)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

Millions of yen

15,66012,864% Millions of yen

21.7
(8.3)

Basic earnings per
share
Fiscal year ended
March 31, 2022
March 31, 2021
Note:

(Percentages indicate year-on-year changes.)

2,931
1,634

% Millions of yen

79.3(25.0)

3,922
2,318

Profit% Millions of yen

69.2(20.3)

2,977
1,438

%

107.0
(32.2)

Diluted earnings per
share

Yen

125.46
60.57

Ordinary profit

Yen

–
–

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and each figure for the fiscal
year ended March 31, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations.

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2022
March 31, 2021

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

46,96645,581

34,86034,01574.2
74.6

1,476.16
1,432.42

Reference:

Note:

EquityAs of March 31, 2022
¥34,860 million
As of March 31, 2021
¥34,015 million
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and each figure for the
fiscal year ended March 31, 2022, is the figure after applying the accounting standard and relevant ASBJ
regulations.

* 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 Wednesday,
May 18, 2022. The financial results presentation materials to be distributed at this briefing will be postedon 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 .................................................................................................................................... 3(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 accounting policies)...................................................................................................... 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
During the fiscal year under review, the Japanese economy continued to recover, although someindustries remained sluggish, driven by an increase in exports mainly to the United States and China inconjunction with the global economic recovery due to the spread of vaccination against COVID-19
infection and the effects of economic measures taken by governments around the world. On the other
hand, COVID-19 is spreading the transmission of new mutant strains, and the outlook remains
uncertain due to global supply chain turmoil, soaring raw material and crude oil prices, inflationarypressures, and developments in monetary policy and exchange rates, as well as risks such as thesituation in Ukraine.
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 fiscal year under review increased to ¥33,448 million (up 9.6% year-onyear). In terms of profit, operating profit was ¥4,881 million (up 23.9% year-on-year), and ordinary
profit was ¥5,127 million (up 23.4% year-on-year). Profit attributable to owners of the parent was¥3,472 million (up 25.9% year-on-year).
In addition, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year
under review.
Operating results for each segment are as follows.
(i) Industrial products businessIn this segment, in the cosmetic ingredients business, overseas sales of lanolin and cholesterol
increased significantly due to economic recovery in Europe, the United States, and China. Sales ofcosmetic ingredients exceeded those of the previous fiscal year due to the recovery in the Chinese
cosmetics market and the adoption of our products in large-scale products of domestic customers.
In the lipid business, overseas sales expansion of phospholipids for pharmaceuticals proceeded asplanned. Also, in the fine chemicals business, sales of general-purpose industrial raw materials
increased due to a recovery in demand for semiconductors, automobiles, and other applications. On
the other hand, sales of functional coatings have decreased in line with demand for medical safety
goggles. As a result, net sales was ¥23,600 million (up 22.2% year-on-year). Segment profit(operating profit) was ¥3,621 million (up 57.9% year-on-year), partly due to improved plantutilization and better product mix resulting from increased sales.
(ii) Household products businessIn this segment, the environmental hygiene-related market remained resilient due to the spread of
the COVID-19 infection, but sales decreased due to the elimination of product shortages due to theentry of new companies. As a result, net sales was ¥8,646 million (down 14.1% year-on-year) andsegment profit (operating profit) was ¥927 million (down 34.8% year-on-year).
(iii) Other
Net sales of other businesses was ¥1,201 million (up 5.9% year-on-year) and segment profit(operating profit) was ¥332 million (up 49.1% year-on-year).

-2-

NIPPON FINE CHEMICAL CO., LTD. (4362)

Reference:Non-consolidated financial results were net sales of ¥15,660 million (up 21.7% year-on-year),
operating profit of ¥2,931 million (up 79.3% year-on-year), ordinary profit of ¥3,922 million (up69.2% year-on-year), and profit of ¥2,977 million (up 107.0% year-on-year).
The significant year-on-year increases in net sales, operating profit, ordinary profit, and profit weremainly due to increased sales resulting from the economic recovery in Japan and overseas, as wellas improved plant utilization and better product mix resulting from increased sales.
(2) Overview of financial position for the fiscal year
Total assets at the end of the fiscal year under review increased by ¥1,542 million from the end of theprevious fiscal year (hereinafter referred to as “the previous fiscal year-end”) to ¥54,807 million. Thiswas mainly due to an increase in current assets by ¥1,295 million due mainly to an increase in raw
materials and supplies, and a ¥246 million increase in non-current assets due to an increase inconstruction in progress.
Liabilities at the end of the fiscal year under review decreased by ¥171 million from the previous fiscal
year-end to ¥10,247 million. This was mainly due to an increase in current liabilities by ¥306 million,
mainly due to an increase in income taxes payable, etc., while non-current liabilities decreased by ¥478
million, mainly due to a decrease in deferred tax liabilities.
The net assets at the end of the fiscal year under review increased by ¥1,713 million from the previous
fiscal year-end to ¥44,560 million. This was mainly due to an increase in shareholders’ equity by¥2,160 million, mainly due to recording ¥3,472 million in profit attributable to owners of parent and¥1,032 million in dividends paid, while accumulated other comprehensive income decreased by ¥544
million, mainly due to a decrease in valuation difference on available-for-sale securities.
(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”)
decreased by ¥1,776 million from the previous fiscal year-end to ¥11,410 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 ¥2,285 million, adecrease of ¥2,412 million from the previous fiscal year. The main breakdown was an increase in cash
due to profit before income taxes of ¥5,017 million and recording depreciation of ¥1,070 million, and adecrease in cash due to income taxes paid of ¥1,185 million.
(Cash flows from investing activities)
Net cash used in investment activities for the fiscal year under review increased by ¥322 million fromthe previous fiscal year to ¥2,741 million. The main breakdown was due to a decrease in cash due topurchase of property, plant and equipment of ¥2,813 million.
(Cash flows from financing activities)
Net cash used in financial activities for the fiscal year under review increased by ¥525 million from theprevious fiscal year to ¥1,399 million. The main breakdown was due to a decrease in cash due todividends paid of ¥1,032 million.
(4) Future outlook
In the business environment surrounding the Group, the economy is expected to continue on a recovery
trend as the compatibility between prevention of the spread of infection and economic activities-3-

NIPPON FINE CHEMICAL CO., LTD. (4362)

gradually takes root due to the spread of vaccination against COVID-19 infection both in Japan andoverseas. On the other hand, purchasing costs are expected to increase significantly as a result of delays
in containerships and tight transportation capacity caused by disruptions in port logistics, as well as due
to soaring raw material and crude oil prices in addition to the weakening yen.
In addition to striving for stable procurement of raw materials, such as purchases from multiple
suppliers, the Group will appropriately pass on prices and continuously reduce costs in response to anincrease in purchasing costs due to soaring raw material prices.
Initiatives in each business segment are as follows. In the industrial products business, as for cosmetic
ingredients in the cosmetic ingredients business, the domestic market continues to face difficult
conditions due to the impact of COVID-19, but we expect the market to generally recover to prepandemic levels in the next fiscal year, and we will focus on R&D and sales promotion activities withan eye to new demand for With Corona (living with COVID-19) and after-pandemic products. In
addition, as for overseas markets, we will focus on active R&D and sales promotion activities ofcosmetic ingredients that meet the unique market needs of each country, mainly in the Asian market,
which is expected to grow significantly in the future. In terms of phospholipids for pharmaceuticals, inorder to continue to expand our business domain, we will continue to develop our own products,
technologies, and services, expand them to the downstream field, and strive to acquire new customers,
while focusing on the steady launch of a new plant at the Takasago Plant. In the fine chemicals
business, we will focus on the development and launch of high-performance materials such as holetransport materials used in perovskite solar cells that contribute to decarbonization and resin materials
with functions such as low dielectric constant and high heat resistance, which are essential for highspeed communication.
In the household products business, we will continue to focus on expanding our market share in theenvironmental hygiene-related market, which has expanded due to the spread of COVID-19, by
expanding sales to existing customers, spreading the ARBONURSE brand that will lead to theacquisition of new sales channels, and developing new products with an eye on With Corona (livingwith COVID-19) and after-pandemic products.
In addition, the Group will promote sustainability initiatives with the aim of achieving both
digitalization and sustainable society and sustainable growth with the aim of becoming a company thatcan provide new value.
As for the consolidated earnings forecasts for the fiscal year ending March 31, 2023, based on theabove initiatives, the Group forecasts net sales of ¥36,000 million (up 7.6% year-on-year), operating
profit of ¥4,850 million (down 0.7% year-on-year), ordinary profit of ¥5,200 million (up 1.4% year-onyear), and profit attributable to owners of parent of ¥3,500 million (up 0.8% year-on-year).
The main exchange rates used in the earnings forecasts are ¥120 per US$ and ¥130 per EUR.
The fiscal year ending March 31, 2023 is the final year of the five-year medium-term management planannounced on April 27, 2018, and regarding the level of achievement, we expect consolidated net sales
to be 7.7% lower than the target of ¥39,000 million in the plan and consolidated operating profit to be
24.4% higher than the target of ¥3,900 million in the plan.
(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 3.0%.
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 ¥29
per share. As a result, the annual dividends per share is ¥54 and the consolidated payout ratio is 36.9%.
In addition, the annual dividends per share for the next fiscal year is expected to be ¥56 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, 2021)
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, 2022)

14,373,553
7,873,963
2,659,849
1,801,691
2,088,918
131,006(244)
28,928,738

12,862,645
8,703,595
3,087,092
2,116,475
3,216,976
239,580(2,095)30,224,271

11,696,595(7,990,543)
3,706,052
14,260,107(12,686,004)
1,574,103
3,725,754
1,690,857
3,157,552(2,624,145)
533,407
11,230,174
309,678

11,548,367(8,043,033)
3,505,334
14,359,320(13,043,647)
1,315,673
3,644,767
3,775,146
3,312,163(2,780,154)
532,008
12,772,930
307,314

12,535,526–
261,297
12,796,823
24,336,677
53,265,415

11,205,190
26,889271,010
11,503,089
24,583,335
54,807,607

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
Provision for environmental measures
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, 2021)

Current fiscal year
(As of March 31, 2022)

3,944,584
696,549
702,979
635,230

3,928,700
757,375
985,079
778,695

118,100

92,259101,400
444,091
662,057
7,304,994

61,332362,000
646,323
7,611,766

2,659,469
178,193
132,453
24,984
99,2139,430
9,926
3,113,671
10,418,665

2,267,152
117,223
111,707
15,600103,2369,430
11,0772,635,427
10,247,193

5,933,221
6,803,377
23,358,507(1,025,109)
35,069,997

5,933,221
6,803,377
25,790,799(1,296,698)
37,230,699

6,675,536
7,877
365,750(3,152)
7,046,012
730,739
42,846,750
53,265,415

5,784,914
34,721
675,778
6,154
6,501,567
828,145
44,560,413
54,807,607

NIPPON FINE CHEMICAL CO., LTD. (4362)(2) Consolidated statement of income and comprehensive income(Thousands of yen)Previous fiscal year
(From April 1, 2020
to March 31, 2021)
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 income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sales of investments in capital of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on sale 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-8-

Current fiscal year
(From April 1, 2021
to March 31, 2022)

30,509,589
21,408,512
9,101,076
5,161,185
3,939,891

33,448,650
23,170,277
10,278,372
5,396,482
4,881,889

25,865
209,02233,080267,968

29,524
235,782
38,071
303,378

1,403
47,247
4,908
53,5594,154,300

1,335
56,512311
58,1595,127,108

2,211
74,511
309,852
386,575

37,0110–37,01176,018280,430–
162,732
519,181
4,021,695
1,143,055
37,963
1,181,018
2,840,676

54,676
89,602
2,818–
147,097
5,017,023
1,444,961
9,445
1,454,407
3,562,615

2,758,884
81,792

3,472,343
90,272

2,196,299
9,856
224,888
53,6672,484,711
5,325,387(890,622)
29,838406,9259,306(444,552)
3,118,063

5,180,546

2,927,898

144,841

190,165

NIPPON FINE CHEMICAL CO., LTD. (4362)(3) Consolidated statement of changes in equity
Previous fiscal year (From April 1, 2020 to March 31, 2021)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

5,933,221

Retained earnings

6,803,377

21,413,272

Total shareholders’equityTreasury shares(1,024,805)

33,125,066

Changes during period
Dividends of surplus(807,397)(807,397)

Profit attributable to owners ofparent

2,758,884

2,758,884

Purchase of treasury shares(303)

Employee welfare benefit fund(303)

(6,252)(6,252)

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

1,945,234(303)

1,944,931

5,933,221

6,803,377

23,358,507(1,025,109)

35,069,997

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

4,479,237(993)

202,925

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincome(56,819)

4,624,350

Noncontrollinginterests

Total net assets

649,877

38,399,293

Changes during period
Dividends of surplus(807,397)

Profit attributable to owners ofparent

2,758,884

Purchase of treasury shares(303)

Employee welfare benefit fundNet changes in items other thanshareholders’ equity(6,252)
2,196,299

8,870

162,824

53,6672,421,662

80,8622,502,524

Total changes during period

2,196,299

8,870

162,824

53,6672,421,662

80,862

4,447,456

Balance at end of period

6,675,536

7,877

365,750(3,152)

7,046,012

730,739

42,846,750-9-NIPPON FINE CHEMICAL CO., LTD. (4362)

Current fiscal year (From April 1, 2021 to March 31, 2022)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

5,933,221

Retained earnings

6,803,377

23,358,507

Total shareholders’equityTreasury shares(1,025,109)

35,069,997

Changes during period
Dividends of surplus(1,032,982)(1,032,982)

Profit attributable to owners ofparent3,472,343

3,472,343

Purchase of treasury shares(271,589)

Employee welfare benefit fund(271,589)(7,069)(7,069)Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period––

2,432,291(271,589)

2,160,702

5,933,221

6,803,377

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

37,230,699

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

6,675,536

7,877

365,750

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincome(3,152)

7,046,012

Noncontrollinginterests

Total net assets

730,739

42,846,750

Changes during period
Dividends of surplus(1,032,982)

Profit attributable to owners ofparent3,472,343

Purchase of treasury shares(271,589)

Employee welfare benefit fundNet changes in items other thanshareholders’ equity(7,069)(890,622)

26,844

310,0279,306(544,444)

97,405(447,038)

Total changes during period(890,622)

26,844

310,0279,306(544,444)

97,405

1,713,663

Balance at end of period

5,784,914

34,721

675,778

6,154

6,501,567

828,145

44,560,413- 10 -

NIPPON FINE CHEMICAL CO., LTD. (4362)(4) Consolidated statement of cash flows(Thousands of yen)Previous fiscal year
(From April 1, 2020
to March 31, 2021)
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
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Loss (gain) on sales of investments in capital ofsubsidiaries
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
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
Payments for asset retirement obligations
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
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, 2021
to March 31, 2022)

4,021,695
1,064,543
280,43047(95,304)–(234,887)
1,403(6,094)(74,511)5,017,023
1,070,388
89,602
1,850(20,745)(26,889)(265,307)
1,335(8,259)2,818(309,852)–

73,807

17,665(385,756)
438,779
8,452
289,243
218,4025,290,397
234,887(1,403)(825,093)
4,698,788(757,736)(1,816,875)
4,022(62,613)(38,870)
3,207,407
265,307(1,335)(1,185,468)
2,285,910(83,950)
54,775(2,676,320)
4,611(16,800)(67,391)(1,142)
97,599(96,200)–(2,813,261)
143,883–(14,724)(1,149)40,020269,950–(2,418,668)(2,741,431)(807,397)(62,039)(303)(4,396)(874,136)(1,032,982)(90,567)(271,589)(4,617)(1,399,756)

60,72878,955

1,466,711
11,720,387
13,187,098(1,776,321)
13,187,098
11,410,777

NIPPON FINE CHEMICAL CO., LTD. (4362)(5) Notes to consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Changes in accounting policies)
Application of Accounting Standard for Revenue Recognition, Etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review,
and it has recognized revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services.
In accordance with the alternative treatment prescribed in paragraph 98 of the “Accounting Standard for
Revenue Recognition”, for domestic sales of goods or products, revenue is recognized at the time of
shipment if the period from the time of shipment to the time when control of the goods or products istransferred to the customer is a normal period.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition, but there is no effect on the opening balance of retained earnings ofthe fiscal year under review.
There is also no impact on profit or loss for the fiscal year under review.
In accordance with the transitional treatment stipulated in Paragraph 89-3 of the Accounting Standard for
Revenue Recognition, notes related to “Revenue Recognition” for the previous fiscal year are notpresented.
Accounting Standard for Fair Value Measurement, Etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review, andit has applied the new accounting policy provided by the Accounting Standard for Fair Value
Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph
19 of the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This has no effect on
Consolidated financial statements.
(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 “Industrial Products Business” and “Household Products
Business”.
The “Industrial Products Business” segment conducts manufacturing and sales, and stocking andsales of cosmetic ingredients, lanolin and cholesterol, phospholipids, functional coating agents,
resin additives, vegetable oils and fats, synthetic resin products, and other products. In “Household
Products Business”, we manufacture and sell commercial detergents, medicinal soap solutions,disinfectants, and fungicides.

- 12 -

NIPPON FINE CHEMICAL CO., LTD. (4362)

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 described in “Important
Matters that are fundamental 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.
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, 2020 to March 31, 2021)
Reporting segment

Net sales
Revenues from externalcustomers
Intersegment sales ortransfers(Thousands of yen)
Consolidated
Adjustment
financialamountstatement
Note: 2amounts
Note: 3

Industrial
products
business

Householdproducts
business

Total

Other
Note: 1

Total

19,305,514

10,069,904

29,375,419

1,134,170

30,509,589–

30,509,589

175,427

43,391

218,818

36,320255,139(255,139)

–

Total

19,480,942

10,113,295

29,594,237

1,170,490

30,764,728(255,139)

30,509,589

Segment profit

2,293,467

1,423,391

3,716,858

223,032

3,939,891–

3,939,891

Segment assets

21,004,816

4,502,996

25,507,812

3,095,540

28,603,353

24,662,062

53,265,415

824,794

104,534

929,328

121,176

1,050,504

14,0381,064,543

1,432,407

168,606

1,601,013

518,877

2,119,891

120,680

2,240,571

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 the realestate business and the business of entrusting pharmacology and safety tests.
2. The adjustments are as follows:(1) Adjustments to segment assets were ¥63,725 thousand (loss) for intersegment eliminations and ¥24,725,787
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, increase in property, plant and equipment and intangible assets 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.

- 13 -

NIPPON FINE CHEMICAL CO., LTD. (4362)

Current fiscal year (From April 1, 2021 to March 31, 2022)
Reporting segment

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

Other
Note: 1(Thousands of yen)
Consolidated
Adjustment
financialamountstatement
Note: 2amounts
Note: 3

Industrial
products
business

Householdproducts
business

Total

23,600,987

8,646,258

32,247,246

891,231

33,138,477–

33,138,477

–

–

–

310,172

310,172–

310,172

23,600,987

8,646,258

32,247,246

1,201,403

33,448,650–

33,448,650

151,369

40,431

191,800

46,885

238,685(238,685)–
33,448,650

Total

Total

23,752,357

8,686,690

32,439,047

1,248,288

33,687,335(238,685)

Segment profit

3,621,695

927,680

4,549,376

332,513

4,881,889–

4,881,889

Segment assets

25,971,194

4,063,543

30,034,738

3,067,669

33,102,407

21,705,199

54,807,607

803,442

99,913903,356

148,299

1,051,655

18,732

1,070,388

2,438,520

103,356

2,541,876

190,192

2,732,069–

2,732,069

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 the realestate business and the business of entrusting pharmacology and safety tests.
2. The adjustments are as follows:(1) Adjustments to segment assets were ¥67,097 thousand (loss) for intersegment eliminations and ¥21,772,296
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, increase in property, plant and equipment and intangible assets 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. Information on impairment losses on non-current assets per reporting segment
Previous fiscal year (From April 1, 2020 to March 31, 2021)(Thousands of yen)

Impairment losses

Industrial products
business

Householdproducts business

238,271

42,158

Unallocatedamounts andelimination

Other
–

Total
–

280,430

Current fiscal year (From April 1, 2021 to March 31, 2022)(Thousands of yen)

Impairment losses

Industrial products
business

Householdproducts business––- 14 -

Other
89,206

Unallocatedamounts andelimination

Total
–

89,602NIPPON FINE CHEMICAL CO., LTD. (4362)(Per share information)(Yen)
Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Net assets per share
Basic earnings per share

Current fiscal year
(From April 1, 2021
to March 31, 2022)

1,773.54

1,851.84

116.17146.32

Notes: 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, 2020
to March 31, 2021)

Current fiscal year
(From April 1, 2021
to March 31, 2022)

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

2,758,884

3,472,343

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

Profit attributable to owners ofparent pertaining to Ordinary
share/s (Thousands of yen)

2,758,884

3,472,343

Average number of shares
outstanding during the period(Shares)

23,746,913

23,730,529(Subsequent events)
Not applicable.

- 15 -