Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 9, 2023
Company name:NIHON NOHYAKU CO., LTD.
Stock exchange listing: Tokyo
Stock code:
4997
URL https://www.nichino.co.jp/
Representative:
President
Hiroyuki Iwata
Inquiries:
General Manager of General Affairs & Legal
Masaki Yoshioka
TEL +81-570-09-1177
Department
Scheduled date to file Quarterly Securities Report:
November 9, 2023
Scheduled date to commence dividend payments:
December 6, 2023
Preparation of supplementary material on quarterly financial results: No
Holding of quarterly financial results meeting:Yes(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2023
40,670(5.8)
1,176(61.2)
951 (70.3)
695 (73.1)
Six months ended September 30, 2022
43,167 37.1
3,030
109.7
3,197 103.9
2,582
66.8
(Note) Comprehensive income: Six months ended September 30, 2023: 4,006 million yen [(29.2)%]
Six months ended September 30, 2022: 5,660 million yen [341.3%]
Earnings per share

Diluted earnings per share

Yen
8.87
32.94

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen
–
–

(2) Consolidated financial position
Total assets
Millions of yen
As of September 30, 2023
138,786
As of March 31, 2023
136,652(Reference) Equity: As of September 30, 2023: 74,207 million yen
As of March 31, 2023: 70,915 million yen

Net assets
Millions of yen
76,504
73,125Equity ratio
%
53.5
51.9

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen
–
–

Yen
8.00
9.00

Yen
–

Yen
8.00

Yen
16.00

–

9.00

18.00

Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
Fiscal year ending March 31, 2024
(Forecast)Year-end

Total(Note) Revision to the forecast of cash dividends announced most recently: No
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
104,000
1.9
7,100 (18.8)
5,900 (24.2)
4,000 (10.9)
51.00(Note) Revision to the forecast of financial results announced most recently: Yes
Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

81,967,082 shares As of March 31, 2023

81,967,082 shares

3,503,266 shares As of March 31, 2023

3,543,527 shares

Number of treasury shares at the end of the period
As of September 30, 2023

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

78,438,953 shares Six months ended September 30, 2022

78,423,940 shares

Shares of the Company held by the Board Benefit Trust are included in the treasury shares which are excluded from the calculation of thenumber of treasury shares at the end of the period and the average number of shares during the period.
* These quarterly financial results are outside the scope of quarterly review by certified public accountants or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain
assumptions deemed reasonable. Actual results may differ significantly from these forecasts due to various factors.

Table of Contents - Attachments
1. Qualitative information on quarterly financial results .................................................................................... 2(1) Explanation of operating results .............................................................................................................. 2(2) Explanation of financial position ............................................................................................................. 3(3) Explanation of the forecast of consolidated financial results and other forward-looking information .... 3
2. Quarterly consolidated financial statements and primary notes ..................................................................... 4(1) Quarterly consolidated balance sheets ..................................................................................................... 4(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive
income ...................................................................................................................................................... 6(3) Quarterly consolidated statements of cash flows ..................................................................................... 8(4) Notes to quarterly consolidated financial statements ............................................................................. 10(Going concern assumption) ............................................................................................................... 10(Notes in case of significant changes in shareholders’ equity) ............................................................ 10(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) ......................................................................................................................................... 10(Segment information, etc.) ................................................................................................................. 11(Significant subsequent events) ........................................................................................................... 121

1. Qualitative information on quarterly financial results(1) Explanation of operating results
During the six months ended September 30, 2023, the global economy saw varied trends. In Europe, the economy
remained at a standstill due to the effects of monetary tightening arising from high inflation. However, in the U.S.,
personal consumption remained robust attributable to favorable employment conditions and wage increases. Meanwhile,
in Japan, as restrictions related to COVID-19 were relaxed, the normalization of socio-economic activities progressed,
and there were signs of recovery in personal consumption and corporate production activities. Nonetheless, with global
monetary tightening and signs of a slowdown in the Chinese economy, in addition to the inflation owing to theprolonged situation in Ukraine and the impact of drastic fluctuations of exchange rates, the economy remained unstable.
Under such circumstances, the Group engaged in the initiatives of the medium-term management plan, “Ensuring
Growing Global 2 (EGG 2),” and has been aiming to increase profitability, establish technological innovation and nextgeneration businesses, and sustainably enhance corporate value.
Major efforts during the six months ended September 30, 2023 included the acquisition of all outstanding shares ofInteragro (UK) Limited, a British manufacturer and distributor of adjuvants, other additives, and biostimulants, by ourconsolidated subsidiary Nichino Europe Co., Ltd., to expand our business portfolio beyond synthetic agrochemicals.
Moreover, in our initiatives to realize smart agriculture, we added a Pictorial Book feature and a diagnostic function for
Other Vegetables in June and a new AI Forecast function in August as part of our efforts to enhance the features of oursmartphone application “Leime AI Disease, Pest & Weed Analysis.” Furthermore, in India, our consolidated subsidiary
Nichino India Pvt. Ltd. obtained a registration of a new insecticide mixture that contains benzpyrimoxan, a new
insecticide for paddy rice. Nichino India Pvt. Ltd. also completed the construction of a multi-purpose plant capable ofmanufacturing multiple active agrochemical ingredients. The plant is scheduled to start operations by the end of thecurrent fiscal year.
For the six months ended September 30, 2023, net sales amounted to 40,670 million yen (down 2,496 million yen
or 5.8% year-on-year) due to sluggish growth in our core agrochemicals business, both in and outside Japan, influenced
mainly by unfavorable weather conditions and the impact of distribution inventories remaining from previous years. In
terms of profits, operating profit came to 1,176 million yen (down 1,854 million yen or 61.2% year-on-year), ordinary
profit was 951 million yen (down 2,246 million yen or 70.3% year-on-year), and profit attributable to owners of parent
was 695 million yen (down 1,887 million yen or 73.1% year-on-year).
The state of the reportable segments during the six months ended September 30, 2023, is as follows.
[Agrochemicals business]
Regarding agrochemicals sales in Japan, the Company worked to promote and expand the sales of core internallydeveloped products such as benzpyrimoxan (product name: “Orchestra”). However, sales were sluggish due to factors
such as fewer pests and diseases attributable to unfavorable weather conditions and the impact of distribution inventories
from previous years, resulting in total net sales in Japan falling below the same period of the previous year.
For overseas agrochemicals sales, Sipcam Nichino Brasil S.A. reported increased net sales, mainly due to expanded
demand for herbicides for sugar cane plants in Brazil, the world’s largest agrochemical market, due to heavy rainfall. In
Asia, Nichino India Pvt. Ltd. experienced a steady growth in net sales as its sales strategy to promote internallydeveloped products, such as tolfenpyrad and pyrifluquinazon, insecticides for horticultural use, proved successful,despite the impact of unfavorable weather, such as the delayed rainy season in India. Meanwhile, in Europe, a decline inuse of the herbicide pyraflufen-ethyl used in potato production due to the impact of drought led to stagnant sales at
Nichino Europe Co., Ltd. In addition, in North America, where colder weather persisted, there were fewer pests thanusual, resulting in a weakness in demand for insecticides, including the acaricide fenpyroximate, and sluggish net sales
for Nichino America Inc. Consequently, total overseas net sales fell below the figures from the same period of theprevious year though the Japanese yen trended lower in the foreign exchange market.
As a result of the above, net sales of the agrochemicals business amounted to 37,907 million yen (down 2,396
million yen or 5.9% year-on-year), and operating profit was 975 million yen (down 1,764 million yen or 64.4% year-onyear).

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[Chemicals other than agrochemicals business]
In the chemicals business, sales in the termiticide sector of AgriMart Corporation remained robust. In the pharmaceuticalbusiness, sales of topical antifungal drug luliconazole were sluggish due to a decrease in demand for overseas markets.
As a result of the above, net sales of the chemicals other than agrochemicals business amounted to 2,015 million
yen (down 22 million yen or 1.1% year-on-year), and operating profit was 518 million yen (down 51 million yen or
9.1% year-on-year).

(2) Explanation of financial position
Total assets as of September 30, 2023, increased by 2,133 million yen from the end of the previous fiscal year to 138,786
million yen. This was due primarily to increases in inventories and investment securities exceeding the decrease in tradereceivables.
Total liabilities as of September 30, 2023, decreased by 1,245 million yen from the end of the previous fiscal year to62,282 million yen. This was due primarily to a decrease in borrowings.
Net assets as of September 30, 2023, increased by 3,378 million yen from the end of the previous fiscal year to76,504 million yen. This was due primarily to an increase in accumulated other comprehensive income including foreign
currency translation adjustment.
(3) Explanation of the forecast of consolidated financial results and other forward-looking information
There has been a revision to the forecast of consolidated financial results for the fiscal year ending March 31, 2024,
announced on May 11, 2023. For details, please refer to the Notice of Differences Between Forecast of Financial Results
and Actual Results for the Six Months Ended September 30, 2023 and Revision to Forecast of Consolidated Financial
Results, which was announced today (November 9, 2023).

3

2. Quarterly consolidated financial statements and primary notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits

15,644

10,634

Notes and accounts receivable - trade, and contract assets

38,86930,000Electronically recorded monetary claims - operating

2,064

2,922

Merchandise and finished goods

27,65832,454

9781,081

Raw materials and supplies

13,236

17,743

Other

4,756

5,442

Allowance for doubtful accounts

(589)

(663)

102,619

99,616

Buildings and structures, net

4,103

4,139

Machinery, equipment and vehicles, net

3,629

3,631

Land

5,856

5,950

Other, net

1,713

2,161

Total property, plant and equipment

15,303

15,883

Goodwill

2,594

2,736

Other

1,503

1,731

Total intangible assets

4,097

4,467

Investment securities

7,552

11,292

Other

7,085

7,541

Allowance for doubtful accounts

(6)

(15)

Total investments and other assets

14,631

18,81834,032

39,169136,652

138,786

Work in process

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade20,51920,757

Electronically recorded obligations - operating

1,010

1,011

Short-term borrowings

10,940

8,023

–

1,798

Income taxes payable

759

925

Provision for bonuses

856

728

Provision for environmental measures

18–

Other provisions

51–

Electronically recorded obligations - non-operating

150

235

Other

10,253

11,879Total current liabilities

44,56045,359Bonds payable

5,315

4,496

Long-term borrowings

10,167

9,420

Retirement benefit liability

826

889

Other provisions

186

179

Other

2,470

1,936

Total non-current liabilities

18,966

16,922

63,52762,282

Share capital

14,93914,939

Capital surplus

15,071

15,071Retained earnings

42,12342,188Treasury shares(1,907)(1,886)

Total shareholders' equity

70,22770,313

956

1,267

–

(40)

Foreign currency translation adjustment(1,985)

1,022

Remeasurements of defined benefit plans

1,716

1,644

688

3,894

Non-controlling interests

2,209

2,296

Total net assets

73,12576,504

136,652

138,786

Current portion of bonds payableNon-current liabilities

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Total accumulated other comprehensive income

Total liabilities and net assets5(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales

43,16740,670

Cost of sales

30,34729,510Gross profit

12,819

11,160

Selling, general and administrative expenses

9,789

9,984

Operating profit

3,030

1,176

Interest income

95

860

Dividend income

62

133

Rental income from real estate51

49

Foreign exchange gains

679

486

Share of profit of entities accounted for using equity method

631

540

Other

75

48

1,594

2,119

332

1,176

1,030

1,087

63

79

1,427

2,344

3,197

951

Gain on sale of non-current assets

263Gain on sale of investment securities–

4

Total extraordinary income

26

7Loss on disposal of non-current assets

71

Environmental expenses–

15

Total extraordinary losses

7

16

3,217

941

707

452

2,510

489

(72)

(206)

2,582

695

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

Quarterly consolidated statements of comprehensive income(Millions of yen)

ProfitSix months ended

Six months ended

September 30, 2022

September 30, 2023
2,510

489

Valuation difference on available-for-sale securities

88

307

Deferred gains or losses on hedges

138

(81)

2,574

2,965

Remeasurements of defined benefit plans, net of tax

(25)

(71)

Share of other comprehensive income of entities accounted
for using equity method

374

396

3,150

3,516

5,660

4,006

Comprehensive income attributable to owners of parent

5,366

3,902

Comprehensive income attributable to non-controllinginterests

293

103

Other comprehensive income

Foreign currency translation adjustment

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to7(3) Quarterly consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Cash flows from operating activities
Profit before income taxes

3,217

941

Depreciation

833

839

Amortization of goodwill

112

113

Interest and dividend income

(157)

(993)

Interest expenses

332

1,176

Share of loss (profit) of entities accounted for using equity
method

(631)

(540)

Loss (gain) on sale of non-current assets

(26)

(3)

Loss on retirement of non-current assets

71

Decrease (increase) in trade receivables

12,573

10,622

Decrease (increase) in inventories(9,426)(6,670)

Increase (decrease) in trade payables(1,994)(1,668)–(18)

Other, net

552

(50)

Subtotal

5,393

3,749

Interest and dividends received

403

1,760

Interest paid

(198)

(1,022)

Income taxes paid

(1,091)(852)

Net cash provided by (used in) operating activities

4,506

3,635

Purchase of property, plant and equipment

(600)

(857)

Proceeds from sale of property, plant and equipment449

9Purchase of intangible assets

(77)

(268)

Purchase of investment securities

–

(66)

Purchase of shares of subsidiaries and associates–(2,523)

Payments into time deposits(1,469)(1,012)

Proceeds from withdrawal of time deposits

1,012

1,013

(1)

24

(687)

(3,682)

Increase (decrease) in provision for environmental measures

Cash flows from investing activities

Other, net
Net cash provided by (used in) investing activities

8

(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(2,210)(1,852)

Repayments of long-term borrowings(648)(2,701)

Redemption of bonds

(223)

–

Repayments of lease liabilities

(102)

(117)

Dividends paid

(590)

(630)

Dividends paid to non-controlling interests

(19)

(17)

Purchase of treasury shares

(0)

(0)

(3,795)(5,319)Effect of exchange rate change on cash and cash equivalents

676

344

Net increase (decrease) in cash and cash equivalents

701(5,022)

Cash and cash equivalents at beginning of period

11,061

14,366

Cash and cash equivalents at end of period

11,762

9,344

Net cash provided by (used in) financing activities9(4) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)(Tax expenses)
The Company calculates tax expenses by producing a reasonable estimate of the effective tax rate after applying taxeffect accounting to profit before income taxes for the fiscal year under review, and then multiplying profit before
income taxes by this estimated effective tax rate.

10

(Segment information, etc.)[Segment information]
I For the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
Information on net sales and profit (loss) by reportable segment
Reportable segment
Chemicals
Agrochemicals other thanbusiness
agrochemicals
business

Subtotal

Others(Note 1)

Total

(Million yen)Amountrecorded inquarterly
Adjustment
consolidated(Note 2)statements ofincome(Note 3)

Net sales
Net sales to outside
40,303
2,037
42,341826
43,167–
43,167
customers
Inter-segment net
10
–
10
360
371
(371)
–
sales or transfers
Total
40,313
2,037
42,351
1,186
43,538(371)
43,167
Segment profit
2,740
570
3,310
153
3,464
(433)
3,030
(Notes) 1. “Others” include business segments that are not included in reportable segments such as greenification andgardening construction, real estate leasing, logistics services, and agrochemical residue analysis.
2. The minus 433 million yen adjustment for segment profit includes minus 433 million yen in unallocatedcorporate expenses. Corporate expenses consist principally of general administrative expenses that are not
attributable to reportable segments.
3. Segment profit was adjusted based on operating profit reported on the consolidated statements of income forthe corresponding period.

II For the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
Information on net sales and profit (loss) by reportable segment
Reportable segment
Chemicals
Agrochemicals other thanbusiness
agrochemicals
business

Subtotal

Others(Note 1)

Total

(Million yen)Amountrecorded inquarterly
Adjustment
consolidated(Note 2)statements ofincome(Note 3)

Net sales
Net sales to outside
37,9072,015
39,922748
40,670–40,670
customers
Inter-segment net
7
–
7
387
395
(395)
–
sales or transfers
Total
37,915
2,015
39,9301,136
41,066(395)
40,670
Segment profit
975
518
1,494
121
1,616
(439)
1,176
(Notes) 1. “Others” include business segments that are not included in reportable segments such as greenification andgardening construction, real estate leasing, logistics services, and agrochemical residue analysis.
2. The minus 439 million yen adjustment for segment profit includes minus 439 million yen in unallocatedcorporate expenses. Corporate expenses consist principally of general administrative expenses that are not
attributable to reportable segments.
3. Segment profit was adjusted based on operating profit reported on the consolidated statements of income forthe corresponding period.

11

(Significant subsequent events)(Occurrence of a disputed incident)
A claim for damages was filed on October 10, 2023 against Sipcam Nichino Brasil S.A. (“SNB”), a consolidated
subsidiary of the Company, which was served with the complaint on October 20, 2023. Details of the litigation arepresented below.
1. Summary of the litigation
On July 26, 2023, a heavily armed robbery took place at SNB, a consolidated subsidiary of the Company, during
which products that SNB had been packaging in fulfillment of a contract with FMC QUÍMICA DO BRASIL LTDA.
(“FMC”) were stolen. In response, FMC filed a claim for damages against SNB on October 10, 2023.
2. Details of the plaintiff(1) Name: FMC QUÍMICA DO BRASIL LTDA.
(2) Address: Avenida Doutor José Bonifácio Coutinho Nogueira, No. 150, Commercial Complexes 103, 105, 107,108 and 109, Jardim Madalena District, in the municipality of Campinas, State of São Paulo, CEP
13091-611
3. Amount of damages claimed (excluding delay damages)
45 million reais
4. Future Outlook
The Group has obtained an opinion from an external legal expert that the incident falls within the definition of force
majeure. As there are significant differences in opinions regarding matters, including the interpretation of the scopeof liabilities, we will carefully examine the contents of the complaint and take appropriate action. We will defend
ourselves based on the opinion of the external legal expert mentioned above, among other things. It cannot be ruledout that the litigation may have an impact on our financial position and operating results depending on the
progression of the litigation. Therefore, at this moment, it is difficult to reasonably estimate whether we will have to
pay the damages and the amount of the impact they would have.

12