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, 2022
(Based on Japanese GAAP)

November 10, 2022

Company name:NIHON NOHYAKU CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

4997
President

URL

https://www.nichino.co.jp/
Hiroyuki Iwata

Inquiries:

General Manager of General Affairs & Legal
Masaki Yoshioka
Department

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

November 10, 2022
December 7, 2022
No
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, 2022 (from April 1, 2022 to September 30, 2022)(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, 2022
43,16737.1
3,030 109.7
3,197 103.9
2,582
66.8
Six months ended September 30, 2021
31,480
–
1,444
–
1,568
–
1,548
–
(Note) Comprehensive income: Six months ended September 30, 2022: 5,660 million yen [341.3%]
Six months ended September 30, 2021: 1,282 million yen [-%]
Earnings per share

Diluted earnings per share

Yen
32.94
19.69

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen
–
–

The figures for the six months ended September 30, 2021 are presented after being retrospectively restated reflecting changes in accounting
policies.
The year-on-year percentage changes for the six months ended September 30, 2021 are not presented due to the retrospective application of thechanges in accounting policies.
(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
Millions of yen%
As of September 30, 2022
125,418
72,00656.1
As of March 31, 2022
118,247
66,956
55.5(Reference) Equity: As of September 30, 2022: 70,369 million yen
As of March 31, 2022: 65,593 million yen
The figures for the fiscal year ended March 31, 2022 are presented after being retrospectively restated reflecting changes in accounting policies.

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
7.50
8.00

Yen
–

Yen
7.50

Yen
15.00

–

8.00

16.00

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
(Forecast)

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, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
98,000Percentages 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
22.3
8,800
52.7
7,800
37.7
5,400
22.6
68.86

(Note) Revision to the forecast of financial results announced most recently: No
Due to the retrospective application of the changes in accounting policies, the year-on-year percentage changes are calculated using figures forthe previous period retrospectively restated.
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

Yes
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, 2022

81,967,082 shares As of March 31, 2022

81,967,082 shares

Number of treasury shares at the end of the period
As of September 30, 2022

3,543,221 shares As of March 31, 2022

3,542,965 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

78,423,940 shares Six months ended September 30, 2021

78,640,382 shares

Shares of the Company held by the share grant trust for the Company’s officers are included in treasury shares which are deducted from thecalculation of the number 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.

2

Table of Contents
1. Qualitative information on quarterly financial results .................................................................................... 4(1) Explanation of operating results ................................................................................................................. 4(2) Explanation of financial position ............................................................................................................... 5(3) Explanation of the forecast of consolidated financial results and other forward-looking information ........ 5
2. Quarterly consolidated financial statements and primary notes ..................................................................... 6(1) Quarterly consolidated balance sheets ....................................................................................................... 6(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive
income ........................................................................................................................................................ 8(3) Quarterly consolidated statements of cash flows ..................................................................................... 10(4) Notes to quarterly consolidated financial statements ............................................................................... 12(Notes on going concern assumption) ................................................................................................. 12(Notes in case of significant changes in shareholders’ equity) ............................................................ 12(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) ........................................................................................................................................... 12(Changes in accounting policies) ........................................................................................................ 12(Additional information) ..................................................................................................................... 13(Segment information, etc.) ................................................................................................................. 143

1. Qualitative information on quarterly financial results(1) Explanation of operating results
During the six months ended September 30, 2022, the global economy experienced sluggish growth, with China
suffering from the aftermath of lockdowns enforced in major cities in accordance with the zero-COVID policy, and the
U.S. and Europe seeing higher policy interest rates driven by rising pressure on prices. In Japan, prices rose due to therapid depreciation of the Japanese yen resulting from interest rate gaps with Europe and the U.S. Furthermore, as supply
chains remained tight and resource prices continued to spike amid the prolonged military invasion of Ukraine by Russia,
an unstable economic climate persisted.
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 improve profitability, establish technological innovation and nextgeneration businesses, and sustainably enhance corporate value.
Major efforts during the six months ended September 30, 2022 included the full-scale launch of benzpyrimoxan, anovel insecticide for paddy rice, in India, followed by technology dissemination activities aimed at expanding sales.
Moreover, as part of our efforts to establish technological innovation and next-generation businesses, we expanded thenumber of crops that can be analyzed with the smartphone application “Leime AI Disease, Pest & Weed Analysis,”which we have been distributing since April 2020, to 15 crops. Through these smart agriculture initiatives, we areworking to further improve convenience for producers.
For the six months ended September 30, 2022, net sales amounted to 43,167 million yen (up 11,687 million yen or
37.1% year-on-year), thanks to the strong performance of our core business, the agrochemicals business, in overseas
countries. In terms of profits, operating profit came to 3,030 million yen (up 1,585 million yen or 109.7% year-on-year),ordinary profit was 3,197 million yen (up 1,629 million yen or 103.9% year-on-year), and profit attributable to owners ofparent was 2,582 million yen (up 1,034 million yen or 66.8% year-on-year).
To translate revenue and expenses of consolidated subsidiaries overseas, etc. into Japanese yen, we changed
methods effective from the first quarter of the fiscal year under review from the one using the spot market exchange rate
prevailing on the respective balance sheet dates of these companies to the one using the average exchange rate for therespective periods. Accordingly, year-on-year comparisons are drawn based on the figures adjusted retrospectively. For
details, see “2. Quarterly consolidated financial statements and primary notes, (4) Notes to quarterly consolidated
financial statements, (Changes in accounting policies).”
The state of the reportable segments during the six months ended September 30, 2022 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 pyrifluquinazon, an insecticide for horticultural (product name: COLT). The Company
concluded a sales agreement with Corteva Agriscience Japan Limited and Dow AgroSciences Japan Limited (hereinaftercollectively referred to as “Corteva”) in May 2021 in order to expand the share in the domestic agrochemicals market.
Overall domestic sales increased year on year owing in part to the start of selling Corteva products from October 2021.
For overseas agrochemicals sales, with demand for agrochemicals in Brazil, the world’s largest agrochemicalmarket, on an upward trend, Sipcam Nichino Brasil S.A. reported increased net sales. In North America, sales of thefungicide flutolanil to peanut growers increased. In Europe, growing demand for the herbicide pyraflufen-ethyl, which
gained market share on the expiration of the registration of a competing product and other factors, led to higher sales at
Nichino Europe Co., Ltd., and sales of the active ingredient flubendiamide to Bayer were strong. In Asia, sales of
tolfenpyrad, an insecticide for horticultural use, for cotton and chili pepper, were strong in India. Consequently, overseas
agrochemicals sales overall exceeded the levels of the same period of the previous fiscal year.
As a result of the above, net sales of the agrochemicals business amounted to 40,303 million yen (up 11,487 million
yen or 39.9% year-on-year) and operating profit amounted to 2,740 million yen (up 1,649 million yen or 151.3% yearon-year).
[Chemicals other than agrochemicals business]
In the chemicals business, AgriMart Corporation experienced strong sales of anti-infectives. Meanwhile, in the4pharmaceutical business, sales of topical antifungal drug luliconazole were sluggish for tinea pedis.
As a result of the above, net sales of the chemicals other than agrochemicals business amounted to 2,037 million
yen (up 72 million yen or 3.7% year-on-year) and operating profit amounted to 570 million yen (down 56 million yen or
9.1% year-on-year).

(2) Explanation of financial position
Total assets as of September 30, 2022 increased by 7,171 million yen from the end of the previous fiscal year to 125,418
million yen. This was due primarily to increases in cash and deposits, inventories, and other under investments and otherassets (mainly deferred tax assets) exceeding the decrease in notes and accounts receivable.
Total liabilities as of September 30, 2022 increased by 2,121 million yen from the end of the previous fiscal year to53,411 million yen. This was due primarily to increases in notes and accounts payable - trade and other under current
liabilities (mainly accrued expenses).
Net assets as of September 30, 2022 increased by 5,050 million yen from the end of the previous fiscal year to
72,006 million yen. This was due primarily to increases in accumulated other comprehensive income including foreign
currency translation adjustment and retained earnings resulting from profit attributable to owners of parent.
(3) Explanation of the forecast of consolidated financial results and other forward-looking information
There have been no changes to the forecast of consolidated financial results for the fiscal year ending March 31, 2023,
announced on August 9, 2022.

5

2. Quarterly consolidated financial statements and primary notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits

12,224

13,410Notes and accounts receivable - trade, and contract assets

36,01027,291

Electronically recorded monetary claims - operating

2,077

1,823

Merchandise and finished goods

22,39526,271769

1,079

Raw materials and supplies

9,531

17,462

Other

4,709

5,183

Allowance for doubtful accounts

(366)

(463)

87,351

92,057

Buildings and structures, net

4,180

4,230

Machinery, equipment and vehicles, net

3,682

3,714

Land

5,898

5,568

Other, net

1,019

1,254

Total property, plant and equipment

14,781

14,768Goodwill

2,794

2,942

Other

1,424

1,483

Total intangible assets

4,218

4,425

Investment securities

6,955

7,785

Other

5,318

6,835

Allowance for doubtful accounts

(377)

(453)

Total investments and other assets

11,896

14,16730,89533,361

118,247

125,418

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

6

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

19,406

20,589

Electronically recorded obligations - operating

1,117

783

Short-term borrowings

10,477

10,657

Current portion of bonds payable

202–

Income taxes payable

955

1,326

Provision for bonuses

869

732

Other provisions

41–

Electronically recorded obligations - non-operating

47

74

Other

8,062

10,591

Total current liabilities

41,18044,754

Bonds payable

1,226

1,553

Long-term borrowings

6,128

4,111

Retirement benefit liability

839

866

Other provisions

132

146

Other

1,782

1,978

Total non-current liabilities

10,1108,657

51,29053,411

Share capital

14,93914,939

Capital surplus

15,071

15,071Retained earnings

38,85540,848Treasury shares(1,906)(1,907)

Total shareholders’ equity

66,96068,952

846

934

–

69

Foreign currency translation adjustment(2,895)(244)

Remeasurements of defined benefit plans

682

656

(1,367)

1,416

Non-controlling interests

1,363

1,637

Total net assets

66,95672,006

118,247

125,418

Non-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 assets

7

(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, 2021

September 30, 2022

Net sales

31,48043,167

Cost of sales

21,63330,347Gross profit

9,846

12,819Selling, general and administrative expenses

8,401

9,789

Operating profit

1,444

3,030

Interest income

3595

Dividend income

49

62

Rental income from real estate53

51

Foreign exchange gains

299

679

Share of profit of entities accounted for using equity method

468

631

Other

33

75

Total non-operating income

939

1,594

Interest expenses

224

332

Loss on valuation of derivatives

534

1,030

Other

57

63

Total non-operating expenses

816

1,427

1,568

3,197

Gain on sale of non-current assets

209

26

Other

32

–

Total extraordinary income

242

26

Loss on disposal of non-current assets

13

7

Other

3

–

Total extraordinary losses

17

7

1,792

3,217

431

707

Profit

1,360

2,510

Loss attributable to non-controlling interests

(187)

(72)

Profit attributable to owners of parent

1,548

2,582

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes

8Quarterly consolidated statements of comprehensive income(Millions of yen)

ProfitSix months ended

Six months ended

September 30, 2021

September 30, 2022
1,360

2,510

(36)

88

–

138

Foreign currency translation adjustment

(118)

2,574

Remeasurements of defined benefit plans, net of tax

(31)

(25)

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

108

374

Total other comprehensive income

(78)

3,150

1,282

5,660

Comprehensive income attributable to owners of parent

1,399

5,366

Comprehensive income attributable to non-controllinginterests

(116)

293

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

Comprehensive income
Comprehensive income attributable to9(3) Quarterly consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Cash flows from operating activities
Profit before income taxes

1,792

3,217

Depreciation

740

833

Amortization of goodwill

98

112

Interest and dividend income

(85)

(157)

Interest expenses

224

332

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

(468)

(631)

Loss (gain) on sale of non-current assets

(209)

(26)

Loss on retirement of non-current assets

13

7

Decrease (increase) in trade receivables

12,422

12,573

Decrease (increase) in inventories(6,776)(9,426)

Increase (decrease) in trade payables

842(1,994)

Increase (decrease) in provision for environmental measures

(474)

–

Other, net

(332)

552

Subtotal

7,789

5,393

Interest and dividends received

238

403

Interest paid

(236)

(198)

Income taxes paid

(409)

(1,091)

Net cash provided by (used in) operating activities

7,382

4,506

Purchase of property, plant and equipment

(579)

(600)

Proceeds from sale of property, plant and equipment

212

449

Purchase of intangible assets

(116)

(77)

Payments into time deposits(1,000)(1,469)Proceeds from withdrawal of time deposits

1,296

1,012

32

(1)

(153)

(687)

Cash flows from investing activities

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

10

(Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(4,658)(2,210)

Repayments of long-term borrowings(1,979)(648)

Redemption of bonds

(193)

(223)

Repayments of lease liabilities

(67)

(102)

Dividends paid

(590)

(590)

Dividends paid to non-controlling interests

(20)

(19)

Purchase of treasury shares

(0)

(0)

(7,510)(3,795)

Effect of exchange rate change on cash and cash equivalents

147

676

Net increase (decrease) in cash and cash equivalents

(134)

701

Cash and cash equivalents at beginning of period

17,414

11,061

Cash and cash equivalents at end of period

17,27911,762

Net cash provided by (used in) financing activities11(4) Notes to quarterly consolidated financial statements(Notes on 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.
(Changes in accounting policies)(Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021) effective from the beginning of the first quarter of the fiscal year underreview and in accordance with the transitional treatment provided for in Paragraph 27-2 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement, the Company will prospectively apply the new
accounting policy prescribed by the Implementation Guidance on Accounting Standard for Fair Value Measurement .
This application has no impact on the quarterly consolidated financial statements.
(Change in the method of translating revenue and expenses of consolidated subsidiaries overseas, etc.)
Revenue and expenses of consolidated subsidiaries overseas, etc. were previously translated into Japanese yen using
the spot market exchange rate prevailing on the respective balance sheet dates of these companies. However, effectivefrom the first quarter of the fiscal year under review, the Company changed the translation method to the one using
the average exchange rate for the respective periods.
The change was made as a result of alterations in control systems in the Group that had been made against the
backdrop of an increasing significance of consolidated subsidiaries overseas, etc., including integration of budget
control systems. The change was also made to mitigate the impact of temporary fluctuations in exchange rates on
profit or loss for the period, etc. and reflect revenue and expenses of consolidated subsidiaries overseas, etc., which
are earned and incurred throughout the consolidated fiscal year, more appropriately in the consolidated financial
statements.
The change in the accounting policy has been applied retrospectively, and the quarterly consolidated financial
statements for the six months ended September 30, 2021 and the consolidated financial statements for the fiscal year
ended March 31, 2022 have been adjusted retrospectively.
As a result of the change, net sales for the six months ended September 30, 2021, decreased by 458 million yen,operating profit decreased by 113 million yen, ordinary profit increased by 57 million yen, profit before income taxes
increased by 57 million yen, profit attributable to owners of parent increased by 18 million yen, and earnings per share
increased by 0.24 yen, compared to the figures before the retrospective application of the change.
In addition, with the cumulative effects reflected on the net assets at the beginning of the previous fiscal year, theretained earnings balance at the beginning of the previous fiscal year decreased by 209 million yen and the foreign
currency translation adjustment balance at the beginning of the previous fiscal year increased by 209 million yen.

12(Additional information)(Accounting estimates related to the impact of the spread of COVID-19)
There have been no material changes to the statements in the Annual Securities Report (Additional Information) for the
fiscal year ended March 31, 2022 regarding the accounting estimates related to the impact of the spread of COVID-19
and the assumptions based on such estimates for the six months ended September 30, 2022.

13

(Segment information, etc.)[Segment information]
I For the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
Agrochemicals other thanbusiness
agrochemicals
business

Subtotal

Others(Note 1)

Total

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

Net sales
Net sales to outside
28,815
1,965
30,780699
31,480–31,480
customers
Inter-segment net
11
0
11
329
341
(341)
–
sales or transfers
Total
28,826
1,965
30,791
1,029
31,821(341)
31,480
Segment profit
1,090
627
1,718
126
1,844
(400)
1,444
(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 400 million yen adjustment for segment profit includes minus 400 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, 2022 (from April 1, 2022 to September 30, 2022)
1. Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
Agrochemicals other thanbusiness
agrochemicals
business

Subtotal

Others(Note 1)

Total

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.

14

2. Matters pertaining to changes in reportable segments
Revenue and expenses of consolidated subsidiaries overseas, etc. were previously translated into Japanese yen using
the spot market exchange rate prevailing on the respective balance sheet dates of these companies. However, effectivefrom the first quarter of the fiscal year under review, the Company changed the translation method to the one using the
average exchange rate for the respective periods. Accordingly, the figures presented above for the six months ended
September 30, 2021 are those that have been adjusted retrospectively to reflect the change in the accounting policy.

15