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 March 31, 2018
(Based on Japanese GAAP)May 14, 2018
NIHON NOHYAKU CO., LTD.
Company name:
Stock exchange listing: Tokyo
Stock code:
Representative:

4997
President

URL

http://www.nichino.co.jp/Inquiries:

Executive Officer, General Manager ofGeneral Affairs & Legal Department

Yosuke Tomoi
Shirou Takahashi

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:TEL+81-3-6361-1400

May 14, 2018
June 12, 2018
NoYes

(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended March 31, 2018 (from October 1, 2017 to March 31, 2018)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended March 31, 2018
36,955
4.1
3,732
3.7
3,955
4.3
2,525
5.9
Six months ended March 31, 201735,489 18.3
3,600 (28.2)
3,794 (16.1)
2,384 (18.8)
Earnings per share

Diluted earnings per share

Yen
37.79
35.68

Six months ended March 31, 2018
Six months ended March 31, 2017

Yen––(2) Consolidated financial position
Total assetsNet assets

Millions of yen
101,152
88,713As of March 31, 2018
As of September 30, 2017

Equity ratio

Millions of yen
50,40848,867%47.5
52.8

2. Cash dividends
Annual dividends per share

Year ended September 30, 2017
Year ending September 30, 2018Year ending September 30, 2018
(Forecast)

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen––

Yen
7.50
7.50

Yen–

Yen
7.50

Yen
15.00

–

7.50

15.00

3. Forecast of consolidated financial results for the year ending September 30, 2018 (from October 1, 2017 to September 30, 2018)
Net sales
Full year

Millions of yen
68,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
13.3
4,400
25.8
3,800
5.6
2,200
28.1
32.92

1

4. Notes(1) Changes in significant subsidiaries during the six months ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2018

70,026,782 shares As of September 30, 201770,026,782 shares

Number of treasury shares at the end of the period
As of March 31, 2018

3,190,468 shares As of September 30, 2017

3,189,804 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2018

66,836,574 shares Six months ended March 31, 2017

266,837,634 shares

Quarterly consolidated financial statements
Quarterly consolidated balance sheets(Millions of yen)
As of September 30, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits

11,6209,892Notes and accounts receivable - trade21,22033,793

Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process

895

1,335

9,986

10,801660

791

Raw materials and supplies

4,465

4,830

Other

3,868

4,218

Allowance for doubtful accounts

(441)

(539)

52,276

65,123

Buildings and structures, net

5,648

5,530

Machinery, equipment and vehicles, net

3,521

3,637

Land

6,458

6,424

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

Other, net

908

882

16,536

16,474

Goodwill

6,745

6,380

Other1,078

1,203

Total intangible assets

7,824

7,584

Investment securities

7,156

6,997

Other

Total property, plant and equipment
Intangible assets

Investments and other assets
4,947

4,989

Allowance for doubtful accounts

(27)

(16)

Total investments and other assets

12,076

11,96936,43636,02888,713

101,152

Total non-current assets
Total assets3

(Millions of yen)
As of September 30, 2017

As of March 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

9,546

13,028753

1,501

Short-term loans payable

3,838

9,777

Income taxes payable

642

1,437

Provision for bonuses

722

664

Provision for product recall related costs

137–

Provision for environmental measures

114–

Other provision

3061

Electronically recorded obligations - non-operating

100

271

Other

7,282

6,168

Total current liabilities

23,16832,911

Non-current liabilities
Bonds payable

2,014

2,035

Long-term loans payable

10,405

11,860Net defined benefit liability

1,423

1,396

58

43

Other provision
Other

2,775

2,496

Total non-current liabilities

16,676

17,831

39,84550,743

Capital stock

10,93910,939

Capital surplus

11,057

11,057Retained earnings

27,06729,091

Total liabilities
Net assets
Shareholders’ equity

Treasury shares(1,726)(1,727)

Total shareholders’ equity

47,33749,361

Valuation difference on available-for-sale securities

2,077

1,728

Foreign currency translation adjustment(2,487)(2,933)

Accumulated other comprehensive income

Remeasurements of defined benefit plans

(97)

(99)

Total accumulated other comprehensive income(507)(1,304)Non-controlling interests

2,0382,352

Total net assets

48,86750,40888,713

101,152

Total liabilities and net assets4Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income(Millions of yen)Six months ended
March 31, 2018

Six months ended
March 31, 2017
Net sales

35,48936,955

Cost of sales

23,264

24,743Gross profit

12,225

12,212

Selling, general and administrative expenses

8,625

8,479

Operating profit

3,600

3,732

Interest income

9781

Dividend income

4560

Real estate rent

4240

Foreign exchange gains

377

70

Share of profit of entities accounted for using equity method

220

261

Other

109

68

Total non-operating income

892

581

Interest expenses

243

256

Loss on valuation of derivatives

260

29

Other

194

72

Total non-operating expenses

698

358

3,794

3,955

Gain on sales of investment securities

169

133

Total extraordinary income

169

133

321

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Product recall related costs

113

57

Environmental expenses–17Total extraordinary losses

116

96

Profit before income taxes

3,847

3,992

Income taxes

1,272

1,156

Profit

2,575

2,836

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5190

310

2,384

2,525Quarterly consolidated statements of comprehensive income(Millions of yen)Six months ended
March 31, 2018

Six months ended
March 31, 2017
Profit

2,575

2,836

324

(348)

1,941

(505)

(4)

(2)

(265)

72

1,996

(784)

4,571

2,052

4,047

1,728

523

323

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)Six months ended
March 31, 2018

Six months ended
March 31, 2017
Cash flows from operating activities
Profit before income taxes

3,847

3,992Depreciation

744

710

Amortization of goodwill

309

209

Decrease (increase) in net defined benefit asset

(20)

(21)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for product recall related
costs
Increase (decrease) in provision for bonuses

(63)

(41)

(906)

(137)

(19)

(52)

Interest and dividend income

(143)

(141)

Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales of investment securities

243

256

(220)

(261)

(169)

(133)

Decrease (increase) in notes and accounts receivable - trade(11,824)(13,183)424(1,466)

1,686

4,269

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in provision for environmental measures–(114)

Other, net(328)(1,086)

Subtotal(6,440)(7,201)

Interest and dividend income received

143

141

Interest expenses paid

(240)

(244)

Income taxes paid

(242)

(513)

(6,780)(7,818)Purchase of property, plant and equipment

(531)

(733)

Purchase of intangible assets

(134)

(178)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of investment securities

(50)

(48)

Proceeds from sales of investment securities

229

171

Payments into time deposits

(288)

(452)

Proceeds from withdrawal of time deposits

303

474

Other, net

509

(0)

Net cash provided by (used in) investing activities

36

(766)

Increase in short-term loans payable

6,463

6,712

Decrease in short-term loans payable

(599)

(706)

Cash flows from financing activities

Proceeds from long-term loans payable

–

3,000

Repayments of long-term loans payable(1,658)(1,574)

(66)

(65)

Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(0)

(0)

(501)

(501)

(12)

(9)

3,624

6,854

399

28

Net increase (decrease) in cash and cash equivalents(2,719)(1,702)

Cash and cash equivalents at beginning of period

13,62910,128Cash and cash equivalents at end of period

10,9108,4267