Consolidated Financial Results for the Year Ended March 31, 2023
(JPGAAP)May 15, 2023

Stock Exchange: Tokyo
Name of listed company: Nissan Chemical Corporation
URL: https://www.nissanchem.co.jp/
Code Number: 4021
Representative: YAGI Shinsuke, President
Inquiry to: ARITA Nobuhiro, Senior Managing Associate Executive Officer and Head of Finance and Accounting Department
Tel. +81 3 4463 8401
Scheduled dividend payment date : June 29, 2023
Scheduled date of annual shareholders' meeting: June 28, 2023
Scheduled date of submitting the Annual Securities Report : June 28, 2023
Supplemental information: Yes
Financial results meeting: Yes (for institutional investors and analysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year on year)

OperatingincomeNet salesYear ended March 31, 2023
Year ended March 31, 2022
(Note) Comprehensive income:Ordinary
incomeNet income attributable toowners of parent

Million yen%

Million yen%

Million yen%

Million yen%

228,065

9.7

52,283

2.6

55,793

3.9

41,087

6.0

207,972(0.5)

50,95919.8

53,69022.3

38,776

15.9

Year ended March 31, 2023

: 41,690 million yen, 14.2%

Year ended March 31, 2022

: 36,511 million yen, （5.6）%

Basic earnings
per share
Yen

Year ended March 31, 2023
Year ended March 31, 2022
(Reference) Equity in earnings of affiliates

Ratio ofnet income toshareholders' equity

Diluted net income
per share－

271.88－: Year ended March 31, 2023

: 1,485 million yen: Year ended March 31, 2022

: 950 million yen

Ratio of operating
income tonet sales

%

%

%

19.4

19.3

22.9

19.2

19.7

24.5

Yen

291.36

Ratio of ordinary
income tototal assets(2) Consolidated Financial Position
Total assets

As of March 31, 2023
As of March 31, 2022
(Reference) Shareholders' equity:

Net assets

Net assets
per share

Equity ratio

Million yen

Million yen%

Yen

298,715

221,52673.1

1,557.12

279,687

208,00973.6

1,454.01

As of March 31, 2023 : 218,419 million yen
As of March 31, 2022 : 205,912 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at
end of period

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2023

35,226(19,643)(25,030)

29,647

Year ended March 31, 2022

41,949(12,395)(27,868)

34,658

Total
cash dividends(annual)Dividend
Ratio ofpayoutdividendratio
to net assets(consolidated) (consolidated)

2. Cash Dividends
Cash dividends per shareFirst
quarter

Secondquarter

Third
quarterYear-end

AnnualYen

YenMillion yen%%

Year ended March 31, 2022

－

50.00

－

72.00

122.0017,30644.9

8.6

Year ended March 31, 2023

－

70.00

－

94.00

164.0023,076

56.3

10.9

Year ending March 31, 2024
(Outlook)

－

70.00

－

94.00

164.00

Yen

Yen

Yen

55.1

3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)(% indicates the rate of increase/decrease against the same period of the previous year)
OperatingincomeNet sales

Ordinary
incomeNet income attributable toowners of parent

Basic earnings
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

Six months
ending September 30, 2023

108,600(0.9)

26,100(7.3)

26,400(17.5)

19,700(16.8)

140.74

Year ending March 31, 2024

237,300

4.0

54,7004.6

55,500(0.5)

41,5001.0

297.61

4. Notes(1) Changes in significant consolidated subsidiaries(Changes in specified subsidiaries involving changes in scope of consolidation):Yes

Newly Included: 1 company (Company name: Nissan Bharat Rasayan Private Limited)(2) 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(Note) Please refer to [4. Consolidated Financial Statements (5) Notes to Consolidated Financial Statements"(Changes in Accounting Policies)"] on page 15 for further details.
(3) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of March 31, 2023

: 141,300,000 shares

As of March 31, 2022

: 143,000,000 shares

2. Number of treasury shares
As of March 31, 2023

: 1,029,072 shares

As of March 31, 2022

: 1,383,611 shares

3. Average number of shares outstanding over the year
As of March 31, 2023

: 141,019,817 shares

As of March 31, 2022

: 142,624,319 shares(Note) The Company has introduced “Board Benefit Trust (BBT)” based on the resolution of Board of Directors' meeting held on
July 30,2019. The shares held by the Trust are included in the number of treasury shares at the end of the period, and they
are included in the number of treasury shares deducted in calculating the average number of shares outstanding over theperiod. The number of shares held by the Trust (included in treasury shares) at the end of the period was 152,500 shares.
In addition, the average number of shares held by the Trust during the period was 154,679 shares.
This is not included in the average number of shares outstanding.
* Presentation regarding implementation status of audit proceduresThis 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.
* Explanations regarding appropriate use of business outlook and other special notes
The business outlook contained in this report is based on information available at the time of disclosure.
Actual operating results may differ materially from the outlook due to various factors.
The prerequisite information of outlook and other items are on page 3 to page 4.
For supplemental information, please refer to our website.
The transcript of financial results briefing will be released on our website as well.

Table of Contents for Attached Materials
1. Analysis of Business Performance and Financial Position ................................................................................................... 2(1) Analysis of Business Performance ................................................................................................................................... 2(2) Analysis of Financial Position ........................................................................................................................................... 4(3) Basic Policy on Distribution of Earnings and Dividends for current and next ter m ........................................................ 5

2. Management Policy ................................................................................................................................................................. 6(1) Basic Management Policy ................................................................................................................................................. 6(2) Mid-and Long-ter m Management Strategies and Issues to be addressed .................................................................... 6(3) Target Management Indicator ........................................................................................................................................... 8

3. Basic Approach to the Selection of Accounting Standards ..................................................................................................... 8

4. Consolidated Financ ial Statements ........................................................................................................................................ 9(1) Consolidated Balance Sheets ........................................................................................................................................... 9(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income ..................................... 11(3) Consolidated Statements of Changes in Net Assets ..................................................................................................... 13(4) Consolidated Statements of Cash Flow s ....................................................................................................................... 15(5) Notes to Consolidated Financial Statements ................................................................................................................. 16(Notes on Assumption Going Concern) .................................................................................................................... 16(Changes in Accounting Policies) ............................................................................................................................. 16(Additional Information) .............................................................................................................................................. 16(Segment and Related Information) .......................................................................................................................... 17(Per Share Information) ............................................................................................................................................. 22(Significant Subsequent Events) ............................................................................................................................... 22

1

1. Analysis of Business Performance and Financial Position(1) Analysis of Business Performance
During the current fiscal year (April 1, 2022 to March 31, 2023), although consumer spending showed a recovery trend due to therelaxation of behavioral restrictions, the domestic economy did not achieve a full-fledged recovery due to soaring raw fuel material
prices, inflation, as well as continued weak exports against the backdrop of sluggish overseas economies. Under thesecircumstances, in the Chemicals Segment, sales of both Basic Chemicals and Fine Chemicals increased. In the Performance
Materials Segment, although sales of Display Materials declined, Semiconductor Materials and Inorganic Materials performed well.
In the Agricultural Chemicals Segment, sales increased. In the Healthcare Segment, sales of “Custom Chemicals” (custom
manufacturing and solution proposal business for pharmaceutical companies) increased.
As a result, sales, operating income and net income attributable to owners of parent fell short of the forecasts announced in February.
However, compared to the same period last year, sales and each income increased. In addition, operating and ordinary income
achieved record highs for the ninth consecutive year, and net income attributable to owners of parent for the tenth consecutive year.
(Million yen, amounts rounded down to the nearest million yen)
FY2021

FY2022Year-on-year

FY2022

Change from

(Actual)(Actual)change(Outlook)

Outlook

Sales

207,972

228,065

20,093

229,500(1,435)

Operating income

50,95952,283

1,323

53,400(1,117)

Ordinary income

53,69055,7932,103

55,500293

38,77641,087

2,311

42,100(1,013)

Net income attributableto owners of parent
Explanations by segments are as below.

We changed our reporting segments from the first quarter of the current fiscal year. For details, please refer to "4. Consolidated
Financial Statements (5) Notes to Consolidated Financial Statements (Segment information)."
The Chemicals Segment
In Basic Chemicals, sales of urea and AdBlue®* (high-grade urea solution) increased due to price revisions in response to higher raw
material and fuel. Sales of melamine (adhesives agent for particle board) declined as a result of the termination of sales in the third quarter
under the structural reforms announced in August 2021.
In Fine Chemicals, sales of "TEPIC" (powder coating agent for paint, sealants, etc.) decreased, but environmental chemicals (sterilizing
and disinfecting agents for pools and septic tanks, etc.) and fineoxocol (raw materials for cosmetics, etc.) increased.
As a result, sales of this segment were 39,034 million yen (an increase of 1,385 million yen) and operating income was 1,379 million yen (adecrease of 2,408 million yen). Compared to the outlook, sales were below 0.7 billion yen and operating income was below 0.3 billion yen.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) declined. In Semiconductor Materials, sales of anti-reflective
coating for semiconductors (ARC®*) increased due to strong sales through the first half of the year, however, customer utilization
declined from the third quarter of the year. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hardcoating and Oilfield materials (solvents to improve the efficiency of shale oil and gas extraction) were steady.
As a result, sales of this segment were 82,606 million yen (an increase of 941 million yen) and operating income was 25,449 million
yen (a decrease of 2,171 million yen). Compared to the outlook, sales were a below 0.9 billion yen and operating income was below
0.8 billion yen.
* ARC® is registered trademarks of Brewer Science, Inc.

2

The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased due to the completion of customer inventory adjustmentsin the previous fiscal year. In Japanese domestic market, sales of “ROUNDUP” (non-selective foliar application herbicide), “ALTAIR” (paddy
rice herbicide) and "GRACIA" (insecticide) were firm. In the overseas market, sales increased significantly due to strong sales of "LEIMAY"(fungicide), "GRACIA" and "TARGA" (herbicide).
As a result, sales of this segment were 81,584 million yen (an increase of 15,765 million yen) and operating income was 23,130 million yen(an increase of 5,002 million yen). "Compared to the outlook, sales were above 0.2 billion yen and operating income was below 0.4 billionyen.
The Healthcare Segment
Sales of "LIVALO" (anti-cholesterol drug) were at the same level as the FY2021. In "Custom Chemicals", sales increased due to steadysales of generic active pharmaceutical ingredients.
As a result, sales of this segment were 6,673 million yen (an increase of 83 million yen) and operating income was 2,990 million yen (anincrease of 176 million yen). Compared to the outlook, sales were above 0.1 billion yen and operating income was above 0.1 billion yen.
Trading
Sales of this segment were 99,066 million yen (an increase of 18,629 million yen) and operating income was 3,701 million yen (anincrease of 797 million yen). Compared to the outlook, sales were above 0.1 billion yen and operating income was above 0.4 billion
yen.
OthersSales of this segment were 26,384 million yen (an increase of 2,789 million yen) and operating income was 879 million yen (anincrease of 187 million yen).
(Outlook of business result for the next term)
Outlook of Financial Results(Billion yen, amounts rounded to the nearest billion yen)
FY2022

FY2023

Increase or

ActualOutlookdecrease

(A)

(B)

(B-A)

Rate of change
(%)

Sales

228.1

237.3

+9.2

+4.0%

Operating income

52.3

54.7

+2.4

+4.6%

Ordinary income

55.8

55.5

(0.3)

(0.5)%

41.1

41.5

+0.4

+1.0%

291.36 yen

297.61 yen+6.25 yen

+2.1%

136 yen

128 yen--

Net income attributable to owners ofparentBasic earnings per share
Average U.S. dollar exchange rate3

Segment Sales and Operating Income(Billion yen, amounts rounded to the nearest billion yen)
Sales

Operating income

FY2022

FY2023

FY2022

FY2023

ActualOutlook

ActualOutlookChemicals

39.0

41.3

1.4

3.2

Performance Materials

82.6

87.5

25.4

26.5

Agricultural Chemicals

81.6

84.2

23.1

23.6

Healthcare

6.7

6.0

3.0

2.3

Trading

99.1

105.3

3.7

3.5

Others

26.4

30.7

0.9

0.9

Adjustment(107.3)(117.7)

(5.2)

(5.3)

Total

228.1

237.3

52.3

54.7

We estimate that sales will be 237.3 billion yen, operating income will be 54.7 billion yen, ordinary income will be 55.5 billion yen
and net income attributable to owners of parent will be 41.5 billion yen. The above outlook is calculated based on the assumptionthat the exchange rate will be 128 yen per U.S. dollar.

(2) Analysis of Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of March 31, 2023 were 298,715 million yen (an increase of 19,027 million yen from the previous year). It is mainly due tothe increase of merchandise and finished goods, raw materials and supplies and construction in progress.
Total liabilities as of March 31, 2023 were 77,188 million yen (an increase of 5,510 million yen). It is mainly due to the increase of short-termloans payable.
Net assets as of March 31, 2023 were 221,526 million yen (an increase of 13,516 million yen).
As a result of these factors, equity ratio was 73.1% (a decrease of 0.5% from March 31, 2022).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain and loss in working
capital, net cash provided by operating activities for the consolidated fiscal year ended March 31, 2023 was 35,226 million yen (41,949
million yen for the previous year).
Due to investment on plant and equipment, net cash used in investing activities for the consolidated fiscal year ended March 31, 2023 was
19,643 million yen (12,395 million yen for the previous year).
Due to share repurchase, payment for dividends and the decrease in loans payable, net cash used in financing activities for the
consolidated fiscal year ended March 31, 2023 was 25,030 million yen (27,868 million yen for the previous year).
Cash and cash equivalents at the end of this year decreased 5,010 million yen from March 31, 2022 after adjusting for the 1,320 million
yen effect of exchange rate. Moreover, after adding the 3,116 million yen increase in cash and cash equivalents resulting from change inscope of consolidation, the balance stood at 29,647 million yen (34,658 million yen for the same period of the previous year).

4

<Reference> The transit of Cash Flow indices
For the year ended
March 31, 2019

March 31, 2020

March 31, 2021

March 31, 2022

March 31, 2023

73.0

73.7

74.9

73.6

73.1

303.4

229.7

299.0

366.1

282.0

Debt repayment ratio (year)

0.8

0.7

0.6

0.5

0.8

Interest coverage ratio (times)

288.1

288.5

573.3

571.5

139.6

Shareholders’ equity ratio (%)
Shareholders’ equity ratio basedon market value (%)

Shareholders' equity ratio: shareholders' equity / total assets
Shareholders' equity ratio based on market value: market capitalization / total assets
Debt repayment ratio: interest-bearing liabilities / cash flows from operating activities
Interest coverage ratio: cash flows from operating activities / interest payments
Notes: (1) All indicates are calculated based on consolidated financial figures.
(2) Market capitalization is calculated based on the number of shares outstanding, excluding treasury shares.
(3) Cash flows represents operating cash flow.
(4) Interest-bearing liabilities refer to all liabilities recorded in the consolidated balance sheets that incur interest.

(3) Basic Policy on Distribution of Earnings and Dividends for current and next term
The Company’s basic policy of profit allocation is returning to shareholders by improving company value through increasing
revenue in the medium and long terms.
In medium-term business plan “Vista2027” Stage I launched from April 2022, the company aimed to realize dividend payout ratio
to be 55% and total payout ratio to be 75% from FY2022 onward, and they were 56.3% and 78.0%. In FY2023, the company aims
to realize dividend payout ratio to be 55% and total payout ratio to be 75%.
The year-end dividend is scheduled to be 94 yen per share. The total annual dividend per share for the current year ended March 31,
2023 will be 164 yen, which was 122 yen in the previous year.
Total annual dividends per share for the year ending March 31, 2024 is planned to be 164 yen (second quarter: 70 yen, year-end: 94 yen).

5

2. Management Policy(1) Basic Management Policy
As a group growing with customers, we will strengthen the brand nurtured by our faithful corporate culture and maximize
corporate value through productive activities for the society.

(2) Mid-and Long-term Management Strategies and Issues to be addressed
In April 2022, we, Nissan Chemical Corporation ("Company") and its group companies (collectively "Group") launched our
new long-term and mid-term business plans. The former is "Atelier2050", which extends our vision to the year 2050. And
the latter is "Vista2027", which indicates the ideal state of the Group in FY2027 as a stepping-stone to attain the long-termplan.
In the drastically changing circumstances, we has set the corporate philosophy “Contribute to the protection of the global
environment and the existence/development of humanity, offering the value sought by society.” Under that philosophy, we
will further strive to solve social issues and enhance corporate value focusing on the sustainable development of the worldsociety, pursuing the realization of people’s good life and happiness in harmony with the environment.

In Stage I, the first three years (FY2022 to FY2024) of the medium-term management plan "Vista2027", we sets numericaltargets of 255 billion yen in sales and 58.5 billion yen in operating income for FY2024, the final year of the plan. The
following four basic strategies have been defined to realize the corporate vision for 2050.

1．Deeply exploit business areas and increase marketing ability
2．Promote sustainable management
3．Strengthen the creation and co-creation process of values
4．Expand market shares and profits of existing businesses

Regarding to the first strategy of "Deeply exploit business areas and increase marketing ability", we launched the
Biological Group at the Biological Research Laboratories in April 2022. We are committed to fostering core technologies tocreate agricultural materials that utilize microorganism existing in the natural world. In addition, we also accelerate productdevelopment by using MI (Materials Informatics), a data-driven research methodology based on the development of
information technology. The Animal Care Planning Group, which newly established in the Planning and Development
Division in April 2023, considers the commercialization of animal health products following the Fluralaner (external
antiparasitic drugs for animal), and aims for long-term development in the life sciences business.
Regarding to the second strategy of "Promote sustainable management", we formulate the "Nissan Chemical Sustainable
Agenda" to pursue "what we can do for the future of the globe and human". We will provide and expand products andservices which help solve social issues to achieve both a contribution to a sustainable society and our sustainable growth.
The Climate Change Committee was established in June 2022, in order to conduct cross-organizational activities toaddress the increasingly serious issue of climate change. The committee identifies, analyses, and assessments risks andopportunities in our businesses and formulates strategies for them. We will continue to work to resolve various climatechange-related issues in order to achieve carbon neutrality by 2050.

6

Regarding to the third strategy of "Strengthen the creation and co-creation process of values", as part of our efforts toachieve this strategy, we revamped our personnel system in 2022. We create a vibrant workplace and maximize humancapital by building a system for securing and developing human resources and promoting diversity and active participationof women. In addition, we push ahead with the construction of a DX (Digital Transformation) platform with the goal of
maximizing the use of digital technology and data.
Regarding to the fourth strategy of "Expand market shares and profits of existing businesses", we promote the global
expansion of "GRACIA" (insecticide) in the Middle East and Africa, in addition to Asian countries such as Japan, South
Korea, and India. In the Semiconductor Materials of Performance Materials Segment, in addition to lithography materials,
we strengthen research and development of packaging materials such as temporary bonding materials, etc. In Display
Materials, we continue to take on the challenge of creating new materials quickly by accurately understanding diverse
market needs. In Inorganic Materials, we aim to expand our market shares by promoting sales of "nanoActiv Enhanced",which is solvents to improve the efficiency of oil and gas extraction with increased flexibility in use by our customers. We
are also working to strengthen the supply capacity of our main products. In March 2023, we will start commercial productionof agrochemical active ingredients created in-house at our joint venture in India, and we have decided to establish a newplant for semiconductor materials in South Korea, which is scheduled to start operation in 2024.

We think of corporate governance as a mechanism that ensures sound, efficient management to provide stakeholders
with sustainable, medium- to long-term profits. Based on this idea, we strive to ensure management decisions are madepromptly, and work to clarify the management responsibility and responsibility for executing operations. At the same time,
we take initiatives for strengthening the management’s monitoring function, compliance, risk management, and internal
control system under our Board of Directors and Audit & Supervisory Board, whose members include highly independent
outside officers. We will do our best to realize a corporate group that is trusted by all stakeholders.

7(3) Target Management Indicator
Our most important objectives are “Return on Equity (ROE)” which represents the efficiency of managing shareholders’equity and “Operating Profit Margin” which leads to a high-value added company. We will expand our business to increase
our revenue.
We aim to realize Return on Equity (ROE) to be above 18% in medium term management plan “Vista2027” Stage I
launched in April 2022. We have achieved it in FY2022.
In addition, the medium-term management plan “Vista2027,” which started in April 2022, defines Key Performance
Indicators (KPI) as follows.

Financial indicators (Plan for FY2022-2027)
OP Margin

Above 20%

ROE

Above 18%

Dividend payout ratio

55% (Increased from 44.9% in FY2021)

Total Payout Ratio

75%

Non- financial indicators (Plan for FY2027)
Nissan Chemical Sustainable Agenda(total sales of products and services that contribute to solving

Maintain At least 55%

social issues/consolidated net sales)
At least 30% compared to FY2018
Reduction of GHG emissions(Achieve FY2030 Target 3 years ahead ofschedule)

Positive response rate in survey of employee attitude on
At least 65%
human resource development
Percentage of female R&D professionals

At least 18%

3. Basic Approach to the Selection of Accounting Standards
The Company will research on trend of IFRS in the country and overseas and correspond properly when applying IFRS.

8

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As ofMarch 31, 2022

As ofMarch 31, 2023

AssetsCurrent assets
Cash and deposits

34,65829,647

Notes, accounts receivable - trade and contract assets

79,97982,670

Merchandise and finished goods

37,664

46,950Work in process

15

18

Raw materials and supplies

14,496

17,703

Accounts receivable - other

2,824

2,113

Short-term loans receivable

1,541

3,088

Other

4,140

7,305

Allowance for doubtful accounts
Total current assets

(41)

(44)

175,279

189,454

Non-current assets
Property, plant and equipment
Buildings and structures

69,44372,520

Accumulated depreciation and impairment loss

(45,158)(46,567)

Buildings and structures, net

24,28425,952

Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net

145,129

151,653(132,567)(136,861)

12,561

14,792

41,34542,153(37,384)(38,379)

3,960

3,774

8,809

8,817

-

149

-

(10)

-

139

Construction in progress

3,561

11,176

Total property, plant and equipment

53,17764,653

1,736

1,722

Intangible assets
SoftwareOther

10,044

9,813

Total intangible assets

11,78011,535Investment securities

30,21727,322Long-term loans receivable

3,323

0

918

531

Net defined benefit asset

1,844

2,140

Other

3,256

3,186

Allowance for doubtful accounts

(110)

(110)

Investments and other assets

Deferred tax assets

Total investments and other assets
Total non-current assets
Total assets

939,45033,071

104,408

109,260

279,687

298,715

(Million yen)
As ofMarch 31, 2022

As ofMarch 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

19,043

19,942

Short-term loans payable

20,981

25,327552

624

Income taxes payable

Current portion of long-term loans payable

8,710

7,879

Provision for bonuses

2,285

2,413

-

418

Other

14,39815,556

Total current liabilities

65,971

72,161

Provision for business structure improvement

Non-current liabilities
Long-term loans payable

1,182

1,338

Deferred tax liabilities

69

98

Provision for business structure improvement

698-

Provision for loss on business of subsidiaries and affiliates

626

626

Provision for share-based remuneration for directors(and other officers)

200

256

Net defined benefit liability

290

377

Other

2,638

2,331

Total non-current liabilities

5,706

5,027

71,67877,188

Capital stock

18,942

18,942

Capital surplus

13,613

13,613Retained earnings

172,393

182,400

Treasury shares(8,261)(6,111)

Total shareholders' equity

196,688

208,844

Total liabilities
Net assets
Shareholders' equity

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

8,304

7,678

Foreign currency translation adjustment

898

1,735

Remeasurements of defined benefit plans

21

159

9,223

9,574

2,097

3,107

208,009

221,526

279,687

298,715

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

10(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Million yen)
Year Ended
March 31, 2022
Net salesYear Ended
March 31, 2023

207,972

228,065

Cost of sales

106,883

121,262

Gross profit

101,089

106,803

Selling, general and administrative expenses

50,12954,519Operating income

50,95952,283

Interest income

49

203

Dividend income

768

1,323

Non-operating income

Equity in earnings of affiliates
Foreign exchange gains
Other

950

1,485

1,134

1,296

918

694

3,821

5,004

Interest expenses

73

252

Loss on disposal of non-current assets

682

817

Total non-operating income
Non-operating expenses

Loss on sales of non-current assets

116

5Plant stop losses

108

198

Other

109

220

1,090

1,493

53,69055,793Gain on sales of investment securities

3,366

1,461

Total extraordinary income

3,366

1,461

Loss on valuation of investment securities

477

650

Business structure improvement expenses

1,792

-

Total non- operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

Loss on business of subsidiaries and affiliates

626

-

2,896

650

Income before income taxes and non-controlling interests

54,16056,605

Income taxes - current

14,713

14,554

Income taxes - deferred

312

633

Total extraordinary losses

Total income taxes

15,02615,187

Net income

39,134

41,417

Net income attributable to non-controlling interests
Net income attributable to owners of parent

11

357

329

38,77641,087

- Consolidated Statements of Comprehensive Income(Million yen)
Year Ended
March 31, 2022
Net income

Year Ended
March 31, 2023

39,134

41,417

Other comprehensive income
Valuation difference on available-for-sale securities(3,055)(625)

Foreign currency translation adjustment

875

760

Remeasurements of defined benefit plans, net of tax

(442)

138

0

0

Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(2,622)273

36,511

41,69036,09541,270416

420(Comprehensive income attributable to)
Owners of parent
Non-controlling interests12(3) Consolidated Statements of Changes in Net Assets
For the Year Ended March 31, 2022(From April 1, 2021 to March 31, 2022)(Million yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Capital surplus

18,942

13,613Retainedearnings

Treasury shares

161,708(7,340)(1,548)18,942

13,613

Total
shareholders'equity186,923(1,548)160,160(7,340)185,375

Changes of items during period
Dividends of surplus(15,468)(15,468)

Net income attributable to ownersof parent

38,776

38,776-

Change in scope of consolidation
Share repurchase(12,003)(12,003)88

Disposal of treasury shares

0Cancellation of treasury shares△0(11,074)

11,074---

12,233(920)

11,313

18,942

13,613

172,393(8,261)

196,688

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference ontranslationof defined benefit
available-for-saleadjustment
plans
securities

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

11,359

81

463

Total
accumulated
othercomprehensive
income11,904Non-controllinginterests

1,733

Total
net assets

200,562(1,548)

11,35981463

11,904

1,733

199,013

Changes of items during period
Dividends of surplus(15,468)

Net income attributable to ownersof parent

38,776

Change in scope of consolidation(12,003)

Share repurchase
Disposal of treasury shares

8

Cancellation of treasury shares-

Net changes of items other thanshareholders' equity(3,055)

816

(442)

(2,680)363(2,317)

Total changes of items during period(3,055)

816

(442)

(2,680)

363

8,995

Balance at end of current period

8,304

898

21

9,223

2,097

208,00913

For the Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Million yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Capital surplus

18,942

13,613Retainedearnings

Treasury shares

172,393(8,261)

Total
shareholders'equity196,688-

18,942

13,613

172,393(8,261)

196,688

Changes of items during period
Dividends of surplus(20,084)(20,084)

Net income attributable to ownersof parent

41,08741,087

Change in scope of consolidation

101

101
(9,002)(9,002)

55

55(11,097)

11,097-

Share repurchase
Disposal of treasury shares
Cancellation of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period--

10,0062,150

12,156

18,942

13,613

182,400(6,111)

208,844

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference ontranslationof defined benefit
available-for-saleadjustment
plans
securities

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

8,304

898

21

Total
accumulated
othercomprehensive
income9,223

Non-controllinginterests

2,097

Total
net assets

208,009
-

8,304

898

21

9,223

2,097

208,009

Changes of items during period
Dividends of surplus(20,084)

Net income attributable to ownersof parent

41,087

Change in scope of consolidation

101(9,002)

Share repurchase
Disposal of treasury shares

55

Cancellation of treasury shares-

Net changes of items other thanshareholders' equity

(625)

837

138

350

1,009

1,360

Total changes of items during period

(625)

837

138

350

1,009

13,516

Balance at end of current period

7,678

1,735

159

9,574

3,107

221,526

14

(4) Consolidated Statements of Cash Flows(Million yen)
Year Ended
March 31, 2022

Year Ended
March 31, 2023

Net cash provided by (used in) operating activities
Income before income taxes and non-controlling interests

54,16056,605

Depreciation and amortization

10,11910,878Business structure improvement expenses

1,792

-

Loss on business of subsidiaries and affiliates

626-

Loss on valuation of investment securities

477

650

Amortization of goodwill

103

101

Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses
Loss (gain) on disposal of non-current assets(817)(1,527)(3,366)(1,461)

73

252

682

817

Decrease (increase) in notes and accounts receivable - trade(5,704)(2,360)Decrease (increase) in inventories(6,230)(12,382)

Increase (decrease) in notes and accounts payable - trade

2,523

217

Other

(1,163)(3,057)

Subtotal

53,277

48,734

Interest and dividend income received

1,913

2,153

Interest expenses paid

(73)

(251)

Income taxes paid

(13,168)(15,408)

Net cash provided by (used in) operating activities

41,94935,226

Net cash provided by (used in) investing activities
Purchase of investment securities

(190)

(506)

Proceeds from sales of investment securities

4,248

2,499

Purchase of shares of subsidiaries

(22)

(25)

(11,253)(18,236)

(466)

(716)

Purchase of intangible assets(1,133)(1,221)

Payments of long-term loans receivable(3,322)-

Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment

Net decrease (increase) in short-term loans receivable(262)(1,505)Purchase of long-term prepaid expenses

(188)

(282)

Other

196

352

(12,395)(19,643)

Net increase (decrease) in short-term loans payable

(345)

3,940

Proceeds from long-term loans payable

550

780

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Repayments of long-term loans payable
Cash dividends paid
Dividends paid to non-controlling interests
Share repurchase
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
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

15

(552)

(552)

(15,468)(20,084)

(48)

(105)

(12,003)(9,002)0(6)(27,868)(25,030)

591

1,320

2,277

(8,126)32,38034,658-3,116

34,65829,647

(5) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.
(Changes in Accounting Policies)(Application of "Implementation Guidance on Accounting Standard for Fair Value Measurement")
The company adopted “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31,
June 17, 2021) from the first quarter of the fiscal year ending March 31, 2023. Based on the transitional treatment prescribed in
Paragraph 27-2 of "Implementation Guidance on Accounting Standard for Fair Value Measurement", we have decided to apply the
new accounting policies set forth by “Implementation Guidance on Accounting Standard for Fair Value Measurement” into the future.
This change had no impact on the quarterly consolidated financial statements.
(Additional information)(Adoption of the group tax sharing system)
The company and some of its domestic subsidiaries have transitioned from the consolidated taxation system to the group tax
sharing system from the first quarter of the fiscal year ending March 31, 2023. Accordingly, corporate, local corporate income taxes,
and tax-effect accounting are accounted for and disclosed in accordance with “Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System” (PITF No. 42, August 12, 2021. Hereinafter “PITF 42”). In addition, based on Article 32 (1)of PITF 42, the effects of the change in accounting policies due to the adoption of PITF 42 are deemed negligible.

16

(Segment and Related Information)
Segment Information
1. General Information about reportable segments
The Company's reportable segments are components of the Group that engage in business activities, whose operating results are
regularly reviewed by the Board of Directors when making resource allocation and performance assessment decisions, and for which
discrete financial information is available.
Divisions by products and services are located in the headquarters, and each division works out a comprehensive strategy applicableto their products and services and carries out their business activities.
The Company consists of segments based on divisions as follows:
Segment

Main Products
Basic chemicals (melamine, sulfuric acid, nitric acid, ammonia, etc.)

Chemicals

Fine chemicals (epoxy compound for LED sealants, solder resist and painting, flame retardants, chlorinatedcyanuric acid for sterilizing, etc.)

Performance
Materials

Display materials (LCD alignment coating, etc.)
Semiconductor materials (bottom anti-reflective coating for semiconductors, etc.)
Inorganic materials (hard coating materials, electronic information materials, polishing materials, etc.)

Agricultural

Agrochemicals (herbicides, insecticides, fungicides, combination fungicide and insecticide, and plant growth regulators)

Chemicals

Animal health products

Healthcare

LIVALO (anti-cholesterol drug), etc.
Custom Chemicals (custom manufacturing and solution proposal business for pharmaceutical companies)

Trading

Trading, etc.

OthersFertilizer, Landscaping, Transportation, Engineering, etc.

2. Basis of measurement of reported segment income or loss, segment assets and other material items
The accounting policies for the reportable segments are consistent with the Company's accounting policies used in the preparationof its consolidated financial statements. Intersegment sales and income (loss) are recognized based on current market prices.

17

3. Information Regarding Sales, Income (Loss), and Segment Assets of Reportable Segments
1) For the Year Ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Million yen)

Chemicals

Performance
Materials

Agricultural
Chemicals

Healthcare

Trading

Others

Total

Adjustment2

Consolidated
Total

Sales to outside customers1

26,032

69,66457,965

6,540

59,644

10,877

230,724(22,752)

207,972

Intersegment Sales

11,61512,0007,853

49

20,792

12,71765,031(65,031)-

Total Sales

37,64881,66565,8196,590

80,437

23,595295,755(87,783)

207,972

3,787

27,621

18,127

2,813

2,903

692

55,945(4,985)50,95932,02055,312

90,7708,296

31,48912,175230,064

49,623

279,687

2,531

3,876

2,593

431

73

299

9,806

312

10,119

1

-

101

-

-

-

103

-

103

2,335

5,741

1,520

498

20

614

10,732219

10,951Net Sales

Segment Income or Loss
(Operating Income or Loss)

Segment assets
Other items
Depreciation and amortization
Amortization of goodwill
Increase of property,
plant and equipment
and intangible assets

1. Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions. A reconciliation ofgross sales to net sales as agent transactions is made in the Adjustment section.
2. The adjustments are as follows.
(1) The (22,752) million yen adjustments in sales to outside customers includes (22,807) million yen elimination of agent transactions due to theadoption of Accounting Standard for Revenue Recognition, and 55 million yen sales not allocated to any reporting segments.
(2) The (4,985) million yen adjustment in segment income includes (72) million yen in intersegment eliminations, 55 million yen sales not attributable
to any reporting segment, and (4,969) million yen corporate expenses not attributable to any reportable segment. The corporate expenses aremainly group administrative expenses which do not belong to any segment.
(3) The 49,623 million yen adjustment in segment assets includes (14,985) million yen in intersegment eliminations and 64,609 million yen incorporate assets not attributable to any reportable segment. The corporate assets are mainly group administrative assets which do not belong
to segments.
(4) The 312 million yen adjustment in depreciation and amortization is corporation expenses.
(5) The 219 million yen adjustment in increase of property, plant and equipment and intangible assets is corporate assets. The corporate assets aremainly group administrative assets which do not belong to segments.

182) For the Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Chemicals

Performance Agricultural
Materials
Chemicals(Million yen)

Healthcare

Trading

Others

Total

Adjustment2

Consolidated
Total

Net Sales
Sales to outside customers1

26,49566,22470,266

6,662

75,542

12,052257,243(29,177)

228,065Intersegment Sales

12,53816,381

11,31811

23,524

14,332

78,107(78,107)-

Total Sales

39,03482,606

81,584

6,673

99,066

26,384335,350(107,285)

228,065

1,379

25,44923,130

2,990

3,701

879

57,530(5,247)52,28334,332

61,287103,779

7,693

36,791

13,613

257,497

41,217

298,715

2,477

4,565

2,701

376

65

442

10,628249

10,878

-

-

101

-

-

-

101

-

101

3,659

8,711

6,232

449

66

366

19,485787

20,272

Segment Income or Loss
(Operating Income or Loss)

Segment assets
Other items
Depreciation and amortization
Amortization of goodwill
Increase of property,
plant and equipment
and intangible assets

1. Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions. A reconciliation ofgross sales to net sales as agent transactions is made in the Adjustment section.
2. The adjustments are as follows.
(1) The (29,177) million yen adjustments in sales to outside customers includes (29,212) million yen elimination of agent transactions due to theadoption of Accounting Standard for Revenue Recognition, and 34 million yen sales not allocated to any reporting segments.
(2) The (5,247) million yen adjustment in segment income includes 267 million yen in intersegment eliminations, 34 million yen sales not attributable
to any reporting segment, and (5,550) million yen corporate expenses not attributable to any reportable segment. The corporate expenses aremainly group administrative expenses which do not belong to any segment.
(3) The 41,217 million yen adjustment in segment assets includes (17,921) million yen in intersegment eliminations and 59,138 million yen incorporate assets not attributable to any reportable segment. The corporate assets are mainly group administrative assets which do not belong
to segments.
(4) The 249 million yen adjustment in depreciation and amortization is corporation expenses.
(5) The 787 million yen adjustment in increase of property, plant and equipment and intangible assets is corporate assets. The corporate assets aremainly group administrative assets which do not belong to segments.

4. Matters related to changes in reporting segments(Changes in reporting segments)
Following the revision to our organizational structure, from April 1, 2022, the Healthcare segment was transferred from the Pharmaceuticals
segment, and the company has changed the segment to which some divisions are attributed. Furthermore, the segment information for theprevious fiscal year is presented based on the changed reporting segments.

19

Related Information

For the Year Ended March 31, 2022(From April 1, 2021 to March 31, 2022)(1)Sales by region(Million yen)Japan

99,167

China

Korea

30,191

Europe andthe United States

Other Asia

21,39528,67828,537

Consolidated
Total

207,972

Note: Sales are classified to either countries or regions based on customers are located.

(2) Property, plant and equipment by region
As property, plant and equipment in Japan is more than 90% of the book balance, those records are omitted.

For the Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1)Sales by region(Million yen)Japan

105,937

China

Korea

30,547

Europe andthe United States

Other Asia

23,99429,25538,330Note: Sales are classified to either countries or regions based on customers are located.

(2)Property, plant and equipment by region(Million yen)Japan

49,858

Korea

Europe andthe United States

India

7,630

6,673

492

20

Consolidated
Total

64,653

Consolidated
Total

228,065

Information regarding impairment loss on non-current assets by reportable segments

For the Year Ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Million yen)
Chemicals
Impairment loss

775

Performance
Materials

Agricultural
Chemicals

Healthcare

－

－

－

Trading

Others

Total

9

－

784

Adjustment

Consolidated
Total

－

784

For the Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Million yen)
Chemicals
Impairment loss

38

Performance
Materials

Agricultural
Chemicals

Healthcare

－

－

－

Trading

Others

－

Total

38

－

Adjustment

Consolidated
Total

－

38

Information regarding amortization and unamortized balance on goodwill by reportable segments
For the Year Ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Million yen)
Chemicals
Balance as ofMarch 31, 2022－

Performance
Materials

Agricultural
Chemicals

Healthcare

－

303

－

Trading

Others

－

Total

－

303

Adjustment

Consolidated
Total

－

303

For the Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Million yen)
Chemicals
Balance as ofMarch 31, 2023－

Performance
Materials

Agricultural
Chemicals

Healthcare

－

201

－

21

Trading

Others

－

Total

－

201

Adjustment

Consolidated
Total

－

201

(Per Share Information)(Yen)
Year Ended March 31, 2023

Year Ended March 31, 2022
Net assets per share

1,454.01

1,557.12

Net income per share

271.88291.36

Notes:
1. Since residual securities do not exist, diluted net income per share is not presented.
2. The Company has introduced “Board Benefit Trust (BBT)” from the second quarter of 2019,and has recorded the shares held by the Trust as treasury shares in the consolidated financial statements.
Accordingly, for the purpose of calculating net assets per share, the shares held by the Trust (included in treasury shares) are
deducted from the number of shares outstanding at the end of the period.
In addition, for the purpose of calculating net income per share, the shares held by the Trust are
deducted in calculating the average number of shares outstanding during the period.
The number of shares held by the Trust at the end of the priod was 152,500 shares,
and the average number of shares held by the Trust during the period was 154,679 shares.
3. Net income per share is calculated on the following basis.
Year Ended March 31, 2022

Year Ended March 31, 2023

Net income per share
Net income attributable to owners of parent (Million yen)

38,77641,087

Amounts not allocated to ordinary shares (Million yen)――

Net income allocated to ordinary shares (Million yen)
Average number of ordinary shares
outstanding during each year (shares)

38,77641,087

142,624,319

141,019,817

4. Net assets per share is calculated on the following basis.
Year Ended March 31, 2022
Net asset (Million yen)

Year Ended March 31, 2023

208,009

221,526

Amount deducted from net asset (Million yen)

2,097

3,107

(Non-controlling interest) (Million yen)
Net asset as of year end allocated toordinary shares (Million yen)
Number of ordinary shares as of year
end used to calculate net asset per share(2,097)(3,107)

205,912

218,419

141,616,389

140,270,928(Significant Subsequent Events)
1.The Company, at the Board of Director’s meeting held on April 28, 2023, has decided to cancel its own shares under Article 178of the Japanese Corporation Act.
(1) Class of shares to be cancelled :Common shares of company(2) Number of shares to be cancelled :700,000 shares (0.50% of issued shares prior to cancellation)(3) Scheduled date of cancellation :May 12, 2023

Reference
Number of issued shares subsequent to cancellation (including treasury shares) : 140,600,000 shares
2. The Company, at the Board of Director’s meeting held on May 12, 2023, 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.
(1) Purpose of repurchaseTo facilitate flexible implementation of capital policy in response to changes in the business environment.
(2) Details of repurchase①Class of shares:

Common shares of the company②Total number of shares:

Up to 1,250,000 shares (Rate of the maximum shares to be acquired(3)Total amount(4)Period of repurchaseto the total outstanding shares: 0.89%)
Up to 5,000,000,000 yen
From May 16, 2023 to July 28, 2023

Reference
Number of treasury shares as of May 15, 2023
Total number of shares issued (excluding treasury shares): 141,423,428 shares
Number of treasury shares:
176,572 shares* Not including 152,500 shares of treasury shares which the Board Benefit Trust (BBT) has hold.

22