Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Three Months Ended June 30, 2024
[Japanese GAAP]
August 9, 2024
Company name: ADEKA CORPORATION
Listing: Tokyo
Securities code: 4401
URL: https://www.adeka.co.jp/en/

PRESIDENT & CHIEF EXECUTIVE OFFICER,REPRESENTATIVE DIRECTOROPERATING OFFICER & GENERAL MANAGER,LEGAL AFFAIRS & PUBLICITY DEPARTMENT

Representative: HIDETAKA SHIROZUME
Inquiries: FUMITAKE KOYAE

Telephone: +81-3-4455-2803
Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: Yes(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
June 30, 2024
98,160
3.8
8,688
17.1
9,731
19.4
6,821
33.2
June 30, 2023
94,596(7.0)
7,422(18.1)
8,150(21.9)
5,120(16.6)
12,626 million [(5.6) %]
(Note) Comprehensive income:Three months ended June 30, 2024:¥
13,371 million [2.6%]
Three months ended June 30, 2023:¥
Basic earnings
per share
Three months ended
June 30, 2024
June 30, 2023

Diluted earnings per
share
Yen

Yen

66.79
50.03

-

(2) Consolidated Financial Position
As ofJune 30, 2024
March 31, 2024
(Reference) Equity:

Total assets

Net assets

Millions of yen

Millions of yen

543,854543,057

As of June 30, 2024:
As of March 31, 2024:¥¥

345,543
339,682
290,851 million
285,143 million

Capital adequacy ratio

%

53.5
52.5

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2024

-

40.00

-

50.00

90.00

Fiscal year ending March 31, 2025

45.00

-

45.00

90.00

Fiscal year ending March 31, 2025
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

Year-end

Total

None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Six months ending
September 30, 2024
Full year

Millions ofyen%Millions ofyen%Millions ofyen

197,000

5.0

17,00014.9

16,9008.8

426,000

6.6

39,20010.6

38,4007.4(Note) Revision to the financial results forecast announced most recently:

Yes* Notes:(1) Significant changes in the scope of consolidation during the period:

None% Millions of yen%

Yen

11,70010.9

114.5624,2005.3

236.95(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2) Changes in accounting policies due to other reasons: None
3) Changes in accounting estimates: None
4) Restatement: None
(4) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2024:
103,768,142 shares
March 31, 2024:
103,768,142 shares
2) Number of treasury shares at the end of the period:
June 30, 2024:
1,636,629 shares
March 31, 2024:
1,636,449 shares
3) Average number of shares outstanding during the period:
Three months ended June 30, 2024:
102,131,553 shares
Three months ended June 30, 2023:
102,347,262 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public
accountants or an audit firm: None
* Proper use of earnings forecasts, and other special matters

Table of Contents – Attachments
1. Overview of Operating Results, etc. ............................................................................................................ 2(1) Overview of Operating Results for the Period under Review ................................................................. 2(2) Overview of Financial Position for the Period under Review ................................................................. 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ........ 4
2. Quarterly Consolidated Financial Statements and Principal Notes ............................................................. 5(1) Quarterly Consolidated Balance Sheets ................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income .......................................... 7
Quarterly Consolidated Statements of Income (For the three months) .................................................. 7
Quarterly Consolidated Statements of Comprehensive Income (For the three months) ........................ 8(3) Notes to Quarterly Consolidated Financial Statements ........................................................................... 9(Notes on changes in accounting policies) ........................................................................................... 9(Notes on accounting methods adopted particularly for the preparation of quarterly consolidated
financial statements) ........................................................................................................................... 9(Notes on segment information, etc.) ................................................................................................... 9(Notes in case of significant changes in shareholders' equity) ........................................................... 10(Notes on going concern assumption) ................................................................................................ 10(Notes on statements of cash flows) ................................................................................................... 10

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Period under Review
During the three months ended June 30, 2024, the global economy continued to show solid growth, benefitingin part from the economic and monetary policies of countries aimed at economic recovery and price stabilization,
despite concerns over the slowdown in Chinese economy and the outlook for the situation in the Middle East,
among other factors.
Under these circumstances, the consolidated operating results for the three months under review were as
follows.
Consolidated Operating Results

Net sales

Three months
ended June 30,
2024
981

Three months
ended June 30,
2023
945

Chemicals

564

Polymer Additives(100 million yen)

ChangeChange (%)
35

3.8

497

66

13.4

277

246

31

12.9

Electronics and IT Materials

107

94

13

13.8

Functional Chemicals

179

157

21

13.9

Food Products

209

207

2

1.1

Life Science

192

221

(29)

(13.3)

Others

14

18

(3)

(20.3)

Operating profit (loss)

86

74

12

17.1

Chemicals

75

55

19

36.0

Polymer Additives

31

17

13

74.7

Electronics and IT Materials

23

25

(1)

(5.0)

Functional Chemicals

20

12

7

63.2

Food Products

13

3

10

272.7

Life Science

(3)

11

(15)

–

Others1

3(2)(61.1)

Ordinary profit

97

81

15

19.4

Profit attributable to owners of parent

68

51

17

33.2

Note: Amounts of less than 100 million yen are rounded down. Percentage changes are rounded to the first decimal place.

An overview by reportable segment is as follows.
(Chemicals Business) Increased sales and profit
Overviews of the Polymer Additives, Electronics and IT Materials, and Functional Chemicals that comprise
the Chemicals Products Business are as follows.

21) Polymer Additives: Increased sales and profit
Sales of flame retardants for home appliance enclosures and electric vehicle components, and lightstabilizers for automobiles remained strong as excess inventories in the supply chain were dissolved andautomobile production recovered.
○ Major contributors

Net sales

Operating profit

Strong- Flame retardants (home appliance enclosures, electric vehicle
components)- Light stabilizers (automotive components)- PVC stabilizers (home interior materials)

Weak- General-purpose antioxidants (plastic products in general)

Positive- Prices- Sales volume- Foreign exchange

Negative- Fixed costs2) Electronics and IT Materials: Increased sales / Decreased profit
Sales of high-K materials for advanced DRAM and photoacid generators for advanced photo resists
remained strong supported by a recovery in demand for semiconductors on the back of robust investments in
AI-related fields. Profit decreased partly due to an increase in fixed costs resulting from the capital investment.
○ Major contributors
Net sales

Operating profit

Strong- High-K materials (advanced DRAM)- Black matrix resin (displays)- Photoacid generators (advanced photo resists)

Weak- Etching materials (displays)

Negative
Positive- Prices- Fixed costs- Sales volume- Foreign exchange

3) Functional Chemicals: Increased sales and profit
Sales of lubricant additives used in engine oils of automobiles remained strong against the backdrop of
expanded customer adoption in the United States and China, as well as the recovery of automobile production
such as hybrid vehicles. In addition, sales of reactive emulsifiers used in architectural coatings were solid, on
the back of expanded customer adoption in India and China.
○ Major contributors
Net sales

Operating profit

Strong- Lubricant additives (automotive engine oils)- Reactive emulsifiers (architectural coatings)- Special epoxy resins (structural adhesives of automobiles)

Positive- Sales volume- Foreign exchange

Negative- Fixed costs3

(Food Products Business) Increased sales and profit
Sales of functional fats and oils remained strong in Southeast Asia. In addition, domestic sales of high valueadded products, such as the Marvelous series of functional margarines, which contribute to food loss reduction,
were favorable. The number of adoptions of the Deli-PLANTS series of plant-based foods, which are mindful of
dietary diversity and environment, experienced a steady growth in the use for breads and cafe menus in Japan.
○ Major contributors
Net sales

Operating profit

Strong- Marvelous series of functional margarines (breads)- Whipping cream (confectionery, desserts)- Deli-PLANTS series of plant-based foods (breads and cafes)

Positive- Sales volume- Prices

Negative- Fixed costs(Life Science Business) Decreased sales, Operating loss
Sales of agrochemicals remained weak affected by inventory adjustment in India, as well as a reaction to thefront-loaded shipments of fungicides in North America at the end of the previous fiscal year. In terms of profit, thebusiness posted an operating loss due to sluggish sales of agrochemicals overseas and a drop in unit selling prices in
Brazil.
○ Major contributors
Net sales

Weak
SteadyOperating loss

Negative
Positive- India: Agrochemicals in general- Europe: Insecticide ingredients- North America: Fungicides- Brazil: Fungicides- Sales volume- Fixed costs- Foreign exchange(2) Overview of Financial Position for the Period under Review
Consolidated Financial Position(100 million yen)

June 30, 2024

March 31, 2023

ChangeChange (%)

Total assets

5,438

5,430

7

0.1

Total liabilities

1,983

2,033

(50)

(2.5)

Total net assets

3,455

3,396

58

1.7

Note: Amounts of less than 100 million yen are rounded down. Percentage changes are rounded to the first decimal place.

○ Major contributors- Total assets:- Total liabilities:- Total net assets:

An increase in inventories
Decreases in provision for bonuses and short-term borrowings
An increase in foreign currency translation adjustment(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
In view of the operating results for the three months ended June 30, 2024 and the recent development ofbusiness performance, the Company has revised its consolidated earnings forecast for the first half and full year.
For detailed information, please refer to the “Notice of revision of consolidated financial forecasts“ released
today (August 9, 2024).
● “Notice of revision of consolidated financial forecasts”
https://adeka.co.jp/en/ir/library/en/pdf/240809pe_e.pdf

42. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsSecurities
Merchandise and finished goods

98,42993,816116,937

113,844

5,498
64,236

5,498
67,791Work in process
Raw materials and supplies

8,464
41,9198,476
41,430Other
Allowance for doubtful accounts

12,490(1,378)

11,509(1,437)

Total current assets

346,598

340,931

Buildings and structures, net
Machinery, equipment and vehicles, net

40,13435,68440,57035,840Land
Other, net

31,467
19,553

31,66021,811

Total property, plant and equipment

126,840

129,883

4,476
2,328

4,227
2,288

Non-current assets
Property, plant and equipment

Intangible assets
Technical assets
Customer related assets
Other

9,692

9,858

Total intangible assets

16,497

16,374

Investment securities
Other

42,013
11,10642,396
14,268

Total investments and other assets

53,11956,664

196,458

202,923

543,057

543,854

Investments and other assets

Total non-current assets
Total assets

5

(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

64,903
26,78063,79925,038

Income taxes payable
Provision for bonuses

4,827
3,587

3,829
1,755

Other provisions
Other

126
34,202

21
29,777

Total current liabilities

134,427

124,221

Bonds payable
Long-term borrowings

14,381
22,283

14,53727,394Retirement benefit liability
Other provisions

20,52671

20,658382

Non-current liabilities

Other

11,684

11,115

Total non-current liabilities

68,94774,089203,374

198,310

Share capital
Capital surplus

23,04820,181

23,04820,256

Retained earnings
Treasury shares

213,125(3,375)

214,818(3,451)

Total shareholders' equity

252,979

254,672

11,665

11,736

Revaluation reserve for land
Foreign currency translation adjustment

3,330
17,147

3,330
21,082Remeasurements of defined benefit plans

20

30

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

32,16336,179Non-controlling interests

Total accumulated other comprehensive income

54,53954,691

Total net assets

339,682

345,543

543,057

543,854

Total liabilities and net assets

6

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)(Millions of yen)
For the three months
ended June 30, 2023

For the three months
ended June 30, 2024

Net sales
Cost of sales

94,596
71,10598,16071,779Gross profit

23,49026,380

Selling, general and administrative expenses

16,068

17,691

Operating profit

7,422

8,688

542

623

319

284

265

202

615
213

537
445

1,955

2,092

774

937

Loss on valuation of derivatives
Other

364
88

112

Total non-operating expenses

1,227

1,049

8,150

9,731

Gain on sale of non-current assets

37

27

Total extraordinary income

37

27

130
-

122
21

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of investment securities

130

144

Profit before income taxes

Total extraordinary losses

8,057

9,614

Income taxes - current

2,695

3,419

Income taxes - deferred

(418)

(913)

Total income taxes

2,276

2,506

Profit

5,780

7,108

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

7

660

286

5,120

6,821

Quarterly Consolidated Statements of Comprehensive Income (For the three months)(Millions of yen)
For the three months
ended June 30, 2023
ProfitOther comprehensive income

For the three months
ended June 30, 2024
5,780

7,108

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

1,376
(22)

(25)
-

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

6,174
0

5,495
(4)

61

52

7,590

5,517

Comprehensive income

13,371

12,626Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10,95010,836

2,420

1,789

8

(3) Notes to Quarterly Consolidated Financial Statements(Notes on changes in accounting policies)(Application of the accounting standard for current income taxes, etc.)
The Company has adopted the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27,
October 28, 2022; hereinafter referred to as the “Revised Accounting Standard 2022”), etc. since the beginning of
the first quarter under review.
The amendment to categories in which current income taxes should be recorded (taxation on othercomprehensive income) follows the transitional treatment prescribed in the proviso to Paragraph 20-3 of the
Revised Accounting Standard 2022 and the transitional treatment prescribed in the proviso to (2) of paragraph 652 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022;
hereinafter referred to as the “Revised Guidance 2022”). These changes in accounting policies have no impact on
the quarterly consolidated financial statements.
For the amendment related to the revised accounting treatment for consolidated financial statements when gains
or losses on sale of shares in subsidiaries resulting from transactions between consolidated companies are deferred
for tax purposes, the Company has applied the Revised Guidance 2022 since the beginning of the first quarter
under review. This change in accounting policies has been applied retrospectively, and the quarterly consolidated
financial statements for the same quarter of the previous fiscal year and the consolidated financial statements forthe previous fiscal year have been prepared reflecting the retrospective application. This change in accounting
policies has no impact on the quarterly consolidated financial statements for the same quarter of the previous fiscal
year and the consolidated financial statements for the previous fiscal year.
(Notes on accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
For certain subsidiaries, the Company has adopted a method of making a reasonable estimate of the effective
tax rate after application of tax effect accounting to profit before income taxes for the consolidated fiscal year towhich the first quarter under review belongs and multiplying the profit before income taxes by such estimatedeffective tax rate.
(Notes on segment information, etc.)[Segment information]
I. For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on net sales and profit (loss) by reportable segment(Million yen)

Reportable segment

Net sales(1) Net sales to outside
customers(2) Inter-segment net
sales or transfers
Total
Segment profit

Others(Note 1)

Amountrecorded in
Adjustment consolidated(Note 2) statements ofincome(Note 3)Chemicals
Business

Food
Products
Business

Life Science
Business

49,794

20,77522,18092,7501,845

94,596–

94,596

34

48

3

85

5,217

5,303

(5,303)–49,8295,534

20,823370

22,183
1,146

92,836
7,051

7,063
326

99,9007,377(5,303)45

94,596
7,422

Total

Total

(Notes) 1. “Others” refers to business segments not included in the reportable segments and includes construction andconstruction management, logistics, and real estate businesses.
2. The adjustment of segment profit of 45 million yen includes the elimination of inter-segment transactions.
3. Segment profit is adjusted with operating profit in the quarterly consolidated statements of income.

9II. For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Information on net sales and profit (loss) by reportable segment(Million yen)

Reportable segment

Net sales(1) Net sales to outside
customers(2) Inter-segment net
sales or transfers
Total
Segment profit (loss)

Others(Note 1)

Amountrecorded in
Adjustment consolidated(Note 2) statements ofincome(Note 3)Chemicals
Business

Food
Products
Business

Life Science
Business

56,45520,995

19,23996,6891,470

98,160–98,160

36

37

1

75

2,988

3,063

(3,063)–56,491
7,524

21,032
1,381

19,241(361)

96,765
8,544

4,458
74

101,224
8,618(3,063)70

98,160
8,688

Total

Total

(Notes) 1. “Others” refers to business segments not included in the reportable segments and includes construction andconstruction management, logistics, and real estate businesses.
2. The adjustment of segment profit (loss) of 70 million yen includes the elimination of inter-segment
transactions.
3. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statements of income.

(Notes in case of significant changes in shareholders' equity)
Not applicable.
(Notes on going concern assumption)
Not applicable.
(Notes on statements of cash flows)
Quarterly consolidated statements of cash flows for the three months ended June 30, 2024 have not been prepared.
Depreciation (including depreciation of intangible assets other than goodwill amortization) for the first three months
under review are as follows.
(Million yen)

For the three months
ended June 30, 2023
Depreciation

4,076

10

For the three months
ended June 30, 2024
4,385