Consolidated Financial Results for the Nine Months Ended December 31, 2014
(JPGAAP)
February 3, 2015
Stock Exchange: Tokyo
Name of listed company: NISSAN CHEMICAL INDUSTRIES, LTD.
URL: http://www.nissanchem.co.jp/
Code Number: 4021
Representative: Kojiro Kinoshita, President
Inquiry to: Hironori Yoshida, Director of Finance and Accounting Department Tel. +81 3 3296 8356
Scheduled dividend payment date: －Supplemental information: Yes
Financial results meeting: No( Amounts rounded down to the nearest million yen)(% indicates the rate of increase/decrease year on year)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2014 (From April 1, 2014 to December 31, 2014)(1) Consolidated Operating Results(Millions of Yen)

Net Sales

Operating
IncomeOrdinary
IncomeNet Income
11,819 +7.7%

Nine Months Ended December 31, 2014

117,794 +3.7%

16,139 +14.9%

17,376 +11.8%

Nine Months Ended December 31, 2013

113,562 +7.5%

14,050 +25.9%

15,538 +34.9%

10,969 +44.1%

Nine Months Ended December 31, 2014:

15,013 million yen-2.6%

Nine Months Ended December 31, 2013:15,419 million yen +91.3%(Note) Comprehensive Income:Net Income
per Share (Yen)

Diluted Net Income
per Share (Yen)

Nine Months Ended December 31, 2014

73.81

－

Nine Months Ended December 31, 2013

66.99

－

(2) Consolidated Financial Position(Millions of Yen)

Total Assets

Net Assets

Equity Ratio

As of December 31, 2014

203,415

142,183

69.2%

As of March 31, 2014

207,999

137,82265.7%(Note) Shareholders' equity:

As of December 31, 2014:

140,757 million yen

As of March 31, 2014:

136,552 million yen

2. Cash Dividends
Cash Dividends per ShareFirst Quarter

Second Quarter

Third Quarter

Year Ended March 31, 2014－

14.00 yen－

Year Ending March 31, 2015－

14.00 yen－

Year Ending March 31, 2015 (Forecast)Year-end

Annual16.00 yen

30.00 yen

16.00 yen

30.00 yen

(Note) Revision of the latest forecast of cash dividends: No

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2015 (From April 1, 2014 to March 31, 2015)(Millions of Yen)

Net SalesYear Ending March 31, 2015

171,000 +4.5%(Note) Revision of the latest forecast of financial results: No

Operating
IncomeOrdinary
IncomeNet Income

24,100 +8.3%

24,800 +4.5%

17,800 +6.6%

Net Income
per share
112.86 yen4. Notes(1) Changes in significant consolidated subsidiaries(changes in specified subsidiaries involving changes in scope of consolidation)(2) Adoption of special accounting methods of preparation of quarterly financial statements: None: None(3) Changes of accounting policies and accounting estimates, and restatement
1. Changes of accounting policies due to revisions of accounting standards: Yes

2. Changes of accounting policies other than the above: None3. Changes in accounting estimates: None4. Restatements: None(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
as of December 31, 2014;

161,000,000 shares

as of March 31, 2014;

161,000,000 shares

2. Number of shares of treasury stock
as of December 31, 2014;
as of March 31, 2014;

3,286,528 shares
522,032 shares

3. Average number of shares outstanding during the nine months
ended December 31, 2014;

160,136,239 shares

ended December 31, 2013;

163,741,504 shares* Implementation status about the quarterly review
This financial release is not subject to audit procedures based on Financial Instruments and Exchange Law in Japan. Audit
procedures of financial statements based on Financial Instruments and Exchange have not been completed at the time of
disclosure.
* Statement regarding appropriate use of forecasts and other notes
The forecast contained in this report is based on information available at the time of disclosure.
Actual operating results may differ materially from the forecast due to various factors.
For supplemental information, please refer to our website.

Table of Contents for Attached Materials

1. Qualitative Information on Quarterly Results …………..………………………………………………………………………… 2(1) Explanation of Operating Results ………………………………………………………………………………………………. 2(2) Explanation of Financial Position ……………………………………………………………………………………………….. 3(3) Explanation of future forecast information, such as Forecast of Consolidated Financial Results ……………………..... 3
2. Items concerning Summary Information (Notes) ………………………………………………………………………………... 4(1) Changes of accounting policies and accounting estimates, and restatement …………………………………………….. 4
3. Consolidated Financial Statements ……………………………………………………………………………………………..... 5(1) Consolidated Balance Sheets …………………………………………………………………………………………………… 5(2) Consolidated Statements of Income and Statements of Comprehensive Income ………………………………………... 7(3) Consolidated Cash Flow …………………………………………………………………………………………………….….. 9(4) Notes to Consolidated Financial Statements ……………………………………………………………………………….... 10(Notes on Assumption of Going Concern) …………………………………………………………………..…………..... 10(Notes on Significant Changes in Shareholders' Equity) …………………………………………………….………….. 10(5) Segment Information …………………………...………………………………………………………………………............. 10－1－

1. Qualitative Information on Quarterly Results(1) Explanation of Operating Results
During the Nine months ended December 31, 2014 (from April 1, 2014 to December 31, 2014), the domestic personal
consumption was weak due to the higher price hike. However, the economy was on the gradual recovery trend due to the better
condition in exports mainly for the United States of America. With regard to our group business, Display Materials andSemiconductor Materials continued to have healthy sales. Fluralaner (the active substance of veterinary medical product) also
had healthy sales.
As a result, the sales for this term were 117,794 million yen (an increase of 4,232 million yen from the same term of theprevious year). Operating income was 16,139 million yen (an increase of 2,088 million yen). Net income was 11,819 million yen(an increase of 849 million yen).

Explanations by segments are as below.

Chemicals
As for Basic Chemicals, the sales of melamine (adhesive agent for particle board) decreased both domestically andinternationally. As for Fine Chemicals, the sales of “TEPIC” (epoxy compound for LED sealants, solder resist, painting) increased
due to the demand expansion in overseas and weak yen, while “HI-LITE” (chlorinated isocyanuric acid for sterilizing) had a hardtime with price-cutting competition.
As a result, the sales of this segment were 25,752 million yen (a decrease of 953 million yen from the same term of theprevious year). Operating income was 1,021 million yen (a decrease of 336 million yen).

Performance Materials“SUNEVER” (LCD alignment coating) mainly for smartphone continued to have healthy sales. The demands for BARC andmulti-layer process materials increased due to the miniaturization of semiconductors. The sales of “SNOWTEX” (silica sol forpolishing electronic materials and non-polishing materials) exceeded previous year for polishing electronic materials.
As a result, the sales of this segment were 37,248 million yen (an increase of 5,587 million yen from the same term of theprevious year). Operating income was 9,918 million yen (an increase of 3,256 million yen).

Agricultural Chemicals
With regard to the domestic sales, the sales volume of “ROUNDUP” (non-selective herbicide) and “ALTAIR” (paddy riceherbicide) increased. The export sales significantly increased due to the launch of veterinary medical product including Fluralanerin Europe and the United States of America.
As a result, the sales of this segment were 24,182 million yen (an increase of 2,708 million yen from the same term of theprevious year). Operating income was 3,533 million yen (an increase of 1,940 million yen).

－2－

Pharmaceuticals
Export “LIVALO” API had healthy sales mainly in the United States of America and Asia. Domestic “LIVALO” API sales
drastically decreased due to the influence of generic products. On the other hand, “Custom Chemicals” (custom manufacturing
and process researching services for pharmaceutical companies) had healthy sales.
As a result, the sales of this segment were 7,081 million yen (a decrease of 2,328 million yen from the same term of theprevious year). Operating income was 1,991 million yen (a decrease of 2,460 million yen).

Trading
The sales of display materials related products and agricultural chemicals products increased.
As a result, the sales of this segment were 41,393 million yen (an increase of 4,083 million yen from the same term of theprevious year). Operating income was 1,359 million yen (an increase of 246 million yen).

Others
The sales of this segment were 13,073 million yen (a decrease of 1,541 million yen from the same term of the previous year).
Operating income was 11 million yen (a decrease of 330 million yen).

(2) Explanation of Financial Position(Position of Assets, Liabilities and Net Assets)
Due to the decrease of cash and deposits, notes and accounts receivable-trade, assets as of December 31, 2014 were203,415 million yen (a decrease of 4,584 million yen from March 31, 2014).
Due to the decrease of liabilities with interest, total liabilities as of December 31, 2014 were 61,231 million yen (a decrease of
8,944 million yen from March 31, 2014).
Net Assets as of December 31, 2014 were 142,183 million yen (an increase of 4,360 million yen from March 31, 2014).
As a result, equity ratio was 69.2%, an increase of 3.5% from March 31, 2014.

(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and minority interests, depreciation and gain and loss on
working capital, net cash provided by operating activities for the nine months ended December 31, 2014 (from April 1, 2014 toDecember 31, 2014) were 23,586 million yen (23,645 million yen for the same term of the previous year).
Due to the acquisitions on plant and equipment of research and development division, net cash used in investing activities forthe nine months ended December 31, 2014 were 5,651 million yen (9,146 billion yen for the same term of the previous year).
Due to the decrease in borrowings, dividends payment and Purchase of treasury stock, net cash used in financing activities
for the nine months ended December 31, 2014 were 26,137 million yen (19,475 million yen for the same term of the previousyear).
As a result, cash and cash equivalents at the end of this term were 22,905 million yen, reflecting 349 million yen effect of
exchange rate changes. It decreased by 7,852 million yen from March 31, 2014 (27,347 million yen as of December 31, 2013.).

(3) Explanation of future forecast information, such as Forecast of Consolidated Financial Results
The forecast of financial results for the year ending March 31, 2015 remain unchanged from the previous announcement on
November 5, 2014.

－3－

2. Items concerning Summary Information (Notes)(1) Changes of accounting policies and accounting estimates, and restatement
Effective from the beginning of current consolidated financial year, the Company adopted paragraph 35 of the "AccountingStandard for Retirement Benefits" (ASBJ Statement No.25 on May 17, 2012) and paragraph 67 of the "Guidance on AccountingStandard for Retirement Benefits" (ASBJ Statement No.25 on May 17, 2012).
Affecting the above change, the Company reviewed the calculation method of retirement benefit obligations and service costs.
The Company changed the method of attributing expected benefit to periods primarily from straight-line attribution to benefit
formula basis as well as the decision method of the discount rate.
The term of bond which is the basis of the discount rate determination was changed from calculating with years approximate
to employees' average estimated remaining service years to weighted average discount rate reflecting the estimated payment
term of retirement benefits and its amount.
In accordance with transitional accounting as stipulated in paragraph 37 of the Accounting Standard for Retirement Benefits,
the effect of the changes in the calculation methods of retirement benefit obligations and service costs were adjusted in retained
earnings at the beginning of current consolidated financial year.
As a result, asset for retirement benefit increased by 331 million yen and retained earnings increased by 213 million yen at the
beginning of current consolidated financial year. There was a slight effect on operating income, ordinary income and net income
before taxes for the nine months ended December 31, 2014.

－4－

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)

As of
March 31, 2014

As ofDecember 31, 2014

AssetsCurrent assets
Cash and deposits

30,75722,905

Notes and accounts receivable-trade
Merchandise and finished goods

54,041
26,77543,88432,458Work in process
Raw materials and supplies

51
6,353

943
9,319

Other

7,457

6,683

-22
125,413-26
116,170

Buildings and structures, net
Other, net

19,52025,45522,70524,983

Total property, plant and equipment

44,97547,689Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

－5－

481

6

769
1,251

678
684

33,5703,028-24036,35882,58535,4903,575-195
38,87087,244

207,999

203,415

(Millions of Yen)

As of
March 31, 2014

As ofDecember 31, 2014

Liabilities
Current liabilities
Notes and accounts payable-trade

16,067

21,825

Short-term loans payable
Income taxes payable

30,6453,512

16,378688

Provision for bonuses
Provision for directors' bonuses

1,754
27

568
20

Other

7,646

10,27859,65249,759Long-term loans payable
Provision for business structure improvement

5,450
-

4,750
704

Net defined benefit liability
Other

244
4,829

205
5,812

Total noncurrent liabilities

10,524

11,472

70,176

61,231

18,942

18,942

13,611
98,121-698
129,975

13,611
105,339-6,700131,193

6,138

8,187

20
417
6,576
1,269
137,822
207,999

1,001
375
9,564
1,425
142,183
203,415

Current liabilities
Noncurrent liabilities

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets－6－

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive income- Consolidated Statements of Income(Millions of Yen)

Nine Months Ended
December 31, 2013

Nine Months Ended
December 31, 2014

Net sales

113,562

117,794

Cost of sales
Gross profit

71,751
41,811

72,56545,229Selling, general and administrative expenses
Operating income

27,76014,05029,09016,139Non-operating income
Interest income

14

13

Dividends income
Foreign exchange gains

583
453

543
590

Equity in earnings of affiliates

772

586

Other
Total non-operating income

672
2,497

484
2,217

Interest expenses
Loss on disposal of noncurrent assets
Plant stop loss

215
177
396

163
242
265

Other

219

309

1,009
15,538980
17,376

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Product compensation expense
Business structure improvement expenses
Total extraordinary loss
Income before income taxes and minority interests--

15,538

390
704
1,095
16,281

Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

3,722
708
4,431
11,107137
10,969

3,880
463
4,343
11,937
117
11,819－7－

- Consolidated Statements of Comprehensive Income(Millions of Yen)
Nine Months Ended
December 31, 2014

Nine Months Ended
December 31, 2013
Income before minority interests

11,107

11,937

Other comprehensive income
Valuation difference on available-for-sale securities

3,264

2,048

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

1,048
-

1,068
-41

-1

0

4,312
15,4193,075
15,013

15,192
227

14,807
205

Share of other comprehensive income ofassociates accounted for using equity method

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests－8－(3) Consolidated Statements of Cash Flows(Millions of Yen)

Nine Months Ended
December 31, 2013

Nine Months Ended
December 31, 2014

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation

15,5386,156

16,281
6,054

Interest and dividends income
Interest expenses

-597
215

-556
163

Increase (decrease) in provision forbusiness structure improvement-

704

Loss (gain) on disposal of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade177
14,180242
10,575Decrease (increase) in inventories-5,867-9,183

Increase (decrease) in notes and accounts payable-trade
Other

2,041
-2,1895,633-76

SubtotalInterest and dividends income received

29,654984

29,838616Interest expenses paid
Income taxes paid

-182
-6,810-155-6,712

23,64523,586-914
244-2,749-1,3103,077--5,357-114-6,554-180

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of stocks of subsidiaries and affiliates
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Net decrease (increase) in short-term loans receivable
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable33-288-9,146-246-437-5,651-12,116-2,690-9,785-5,456

Cash dividends paid
Cash dividends paid to minority shareholders
Purchase of treasury stock of subsidiaries in consolidation
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-4,584-48-1-34-19,475444-4,531
31,87827,347-4,814-50-6,001-29-26,137
349-7,85230,75722,905－9－

(4) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
At the board of Director’s meeting held on November 5, 2014, the Company has decided to repurchase its shares in the market
under Article 156 of the Japanese Corporation Act, as applied pursuant to Article 165, Paragraph 3 of the same Act.
The Company has completed the acquisition of treasury stocks on November 8, 2014.
As a result, shareholders' equity as of December 31, 2014 was 6,700 million yen, increased by 6,001 million yen.
(5) Segment Information
1. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Nine Months Ended December 31, 2013 (From April 1, 2013 to December 31, 2013)
Performance Agricultural
PharmaChemicals
Trading
OthersMaterials
Chemicalsceuticals

Total(Millions of Yen)
Adjustment Consolidated
(1)
Total

Sales

19,991

27,673

19,495

9,352

30,141

6,908

113,562－Intersegment

6,714

3,987

1,978

56

7,168

7,706

27,613-27,613－

Total Sales

26,706

31,661

21,474

9,409

37,30914,614

141,176-27,613

113,562

Operating Income

1,357

6,661

1,592

4,452

1,113

342

15,521-1,47014,050113,562

Notes: (1) The negative 1,470 million yen adjustment in segment income includes 372 million yen in intersegment eliminations andnegative 1,098 million yen corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.
2) For the Nine Months Ended December 31, 2014 (From April 1, 2014 to December 31, 2014)
Chemicals

Performance Agricultural
Materials
Chemicals

Pharmaceuticals

Trading(Millions of Yen)

Others

Total

Adjustment Consolidated
(1)
Total

Sales

18,79232,961

21,9907,055

30,973

6,021

117,794－

Intersegment

6,960

4,286

2,192

26

10,4207,051

30,937-30,937－

Total Sales

25,752

37,24824,182

7,081

41,393

13,073

148,732-30,937

117,794

Operating Income

1,021

9,918

3,533

1,991

1,359

11

17,837-1,698

16,139Notes: (1) The negative 1,698 million yen adjustment in segment income includes 242 million yen in intersegment eliminations andnegative 1,456 million yen corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.

－10－

117,794