August 6th, 2019
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.
Exchanges Listed: Tokyo Stock Exchanges, First Section 7915
Contact: Hayato Nishihara
Senior Executive Vice President, CFO, Director of the Board
T +81 75 811 8111

Notice of Difference between Business Forecast and Actual Results
for the First Half of FY2019, and Revision to the Business Forecast for FY2019
We hereby announce that differences have arisen between the business forecast announced on February 14, 2019 and actual
results for the first half of FY2019 (January 1, 2019 to June 30, 2019), as follows.
We also announce that we have revised the business forecast for FY2019 (January 1, 2019 to December 31, 2019), as follows.

Difference between consolidated business forecast and actual results in the first half of FY2019 (January 1, 2019 to June 30, 2019)(Millions of yen, except basic earnings per share)

Net sales

EBITDA

Operating

Ordinary

profitprofitProfitBasic earnings

attributable toper shareowners of parent(Yen)(A) Previous forecast

78,0001,080(4,000)(4,300)(4,000)(80.14)(B) Actual results

73,100(1,080)(5,829)(6,387)(7,569)(151.65)

Changes in amount (B) - (A)(4,899)(2,160)(6.3)－(1,829)－(2,087)－(3,569)

72,542132(4,476)(5,954)(6,754)

Percentage of change (%)
Reference: Results for the six
months ended June 30, 2018－(133.77)

Reasons for the Difference
Net sales fell below the previous forecast mainly due to lower demand in the Devices segment.
For profit, EBITDA, operating profit and ordinary profit decreased compared to the previous forecast primarily because theoperation rate at domestic plants declined on account of sluggish demand for Chinese market and quality related costs increased1

at some overseas plants in the Industrial Materials segment, in addition to the decrease in sales in the Devices segment. Also,profit attributable to owners of parent was lower than the previous forecast mainly due to posting of impairment loss and loss onsales and retirement of non-current assets.
EBITDA is the total of operating profit, depreciation and amortization of goodwill.
Revision to consolidated business forecast for FY2019 (January 1, 2019 to December 31, 2019)(Millions of yen, except basic earnings per share)

ProfitNet Sales

EBITDA

Operating

Ordinary

attributable toprofit

profitowners ofBasic earnings
per share(Yen)parent(A) Previous Forecast

195,000

18,800

8,500

7,800

6,000

120.21(B) Revised Forecast

180,000

11,800

1,500

500

00.00

Changes in Amount (B) - (A)(15,000)(7,000)(7,300)(6,000)

Reference: Results for the(7.7)(7,000)fiscal year ended December

207,404

17,343

8,080

7,380

4,318

Percentage of Change (%)(37.2)(82.4)(93.6)－85.7031, 2018(Note) In the second quarter ended June 30, 2019, we finalized provisional accounting treatments for business combinations,which is reflected in the relevant figures for the results of the fiscal year ended December 31, 2018.
Reasons for the Revision
For consolidated business forecast for FY2019, we have considered the latest demand trends and other factors based on theresults for the six months ended June 30, 2018. Net sales are expected to decrease compared to the previous forecast mainly
because demand in the Devices segment is likely to decline compared to our original estimate and demand for Chinese market in
the Industrial Materials segment is weak. For profit, EBITDA, operating profit and ordinary profit also are expected to fall below
the previous forecast mainly owing to the impact of the decrease in net sales.
In addition, profit attributable to owners of parent is expected to decrease compared to the previous forecast due to theabove-mentioned reason, while we plan to dispose of idle fixed assets, etc.
EBITDA is the total of operating profit, depreciation and amortization of goodwill.
END2