Consolidated Financial Results for the Nine Months Ended December 31, 2023
(JPGAAP)

February 9,2024
Name of listed company: Nissan Chemical Corporation

Stock Exchange: Tokyo

Code number: 4021

URL: https://www.nissanchem.co.jp/

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 submission date of quarterly report: February 13, 2024

Scheduled dividend payment date: ―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 Nine Months Ended December 31, 2023 (From April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)
OperatingincomeNet sales
Million yen
155,334

Nine months ended December 31, 2023
Nine months ended December 31, 2022
(Note) Comprehensive income:Ordinary
incomeNet income attributableto owners of parent% Million yen(2.4)
33,436% Million yen(13.8)
35,049% Million yen(15.2)
25,972%(15.6)

12.7

14.4

15.5

20.0

159,234

38,811

41,341

Nine months ended December 31, 2023

: 28,625 million yen ,(11.7%)

Nine months ended December 31, 2022

: 32,436 million yen ,41.8%

Basic earnings
per share

30,760

Diluted net income
per share

Nine months ended December 31, 2023

Yen
186.02

Yen－

Nine months ended December 31, 2022

217.99－(2) Consolidated Financial Position
Total assets

As of December 31, 2023

Equity ratio

Million yen
309,707

Million yen
221,355%
70.4

298,715

221,526

73.1

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

Net assets

As of December 31, 2023

: 218,030 million yen

As of March 31, 2023

: 218,419 million yen

2. Cash Dividends
Cash dividends per shareFirst
quarter

Secondquarter

Yen－－

Year ended March 31, 2023
Year ending March 31, 2024

Thirdquarter

Yen
70.00
70.00

Year ending March 31, 2024 (Outlook)

Yen
－
－

Year-end

Annual

Yen
94.00

Yen
164.0094.00

164.00(Note) Revision of the latest released dividend outlook: None
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)
Net salesYear ending March 31, 2024

Million yen
227,500

Operatingincome% Million yen(0.2)
48,600(Note) Revision of the latest released outlook of financial results: None

Ordinary
income% Million yen(7.0)
51,300Net income attributableto owners of parent% Million yen(8.1)
38,400

%
(6.5)

Basic
earnings
per shareYen
275.76

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: Nippon Phosphoric Acid Corporation Limited)
Nippon Phosphoric Acid Corporation Limited changed the trade name into NC Tokyo Bay Corporation on July 3, 2023.
(2) Application of special accounting treatment to preparation of quarterly financial statements: None(3) Changes of accounting policies and accounting estimates, and restatement
1. Changes of accounting policies due to revisions of accounting standards: None2. Changes of accounting policies other than the above: None3. Changes in accounting estimates: None4. Restatements: None(4) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of December 31, 2023

: 139,800,000 shares

As of March 31, 2023

: 141,300,000 shares

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

: 476,943 shares

As of March 31, 2023

: 1,029,072 shares

3. Average number of shares outstanding
As of December 31, 2023

: 139,623,948 shares

As of December 31, 2022

: 141,110,031 shares(Note) The Company has introduced “Board Benefit Trust (BBT)” based on the resolution of Board of Directors' meeting held on July 30,2019.Theshares 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 oftreasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by theTrust (included in treasury shares) at the end of the period was 144,000 shares.
In addition, the average number of shares held by the Trust during the period was 144,472 shares.
This is not included in the average number of shares outstanding.
* Presentation regarding implementation status of quarterly review procedures
The financial release is not subject to quarterly review.
* 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.
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. Qualitative Information on Quarterly Results .............................................................................................................

2(1) Business Performance .........................................................................................................................................

2(2) Financial Position .................................................................................................................................................

4(3) Outlook of Consolidated Financial Results and Other Forward-looking Information ............................................

4(4) Basic Policy on Distribution of Earnings..............................................................................................................

4

2. Consolidated Financial Statements ...........................................................................................................................

5(1) Consolidated Balance Sheets ..............................................................................................................................

5(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income ..............................

7(3) Consolidated Statements of Cash Flows .............................................................................................................

9(4) Notes to Consolidated Financial Statements ....................................................................................................... 10(Notes on Assumption of Going Concern)...................................................................................................... 10(Notes on Significant Changes in Shareholders' Equity) ................................................................................ 10(Segment Information) ....................................................................................................................................

111

1. Qualitative Information on Quarterly Results(1) Business Performance
During the third quarter of the current fiscal year (April 1, 2023 to December 31, 2023), consumer spending showed arecovery trend and inbound demand increased, driven by the depreciation of the yen. However, the domestic economy
failed to achieve a full-fledged recovery due to rising prices and a slowdown in overseas economies. Under thesecircumstances, in the Chemicals Segment, sales of both Basic Chemicals and Fine Chemicals decreased. In the
Performance Materials Segment, sales of Display Materials were fine, but sales of Semiconductor Materials declined. In
the Agricultural Chemicals Segment, sales decreased. In the Healthcare Segment, sales were on a par with the same
period of the previous year.
As a result, both sales and each income were below the same period of the previous fiscal year, but they exceeded theoutlook announced in November.

3Q FY2022(Million yen, amount rounded down to the nearest million yen)
3Q FY2023
Year on Year
Change from
(Outlook)
3Q FY2023
ChangeOutlook(Note)

Sales

159,234

155,334(3,900)153,700+1,634

Operating income

38,81133,436(5,374)32,000+1,436

Ordinary income

41,34135,049(6,292)34,300+749

Net income attributableto owners of parent

30,76025,972(4,787)25,700+272(Note) The outlook is described on page 11 of the 2Q FY2023 Presentation Materials (announced on November 10,2023).
Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, sales of urea, AdBlue®* (high-grade urea solution) and nitric acid products (metal dissolution,
surface treatment, etc.) increased. Sales of melamine (adhesives agent) declined as a result of the termination of sales inthe third quarter of the previous fiscal year under the structural reforms. In Fine Chemicals, sales of environmental related
products (sterilizing and disinfecting agents for pools and septic tanks, etc.) were firm, but sales of "TEPIC" (powder
coating agent for paint, sealants, etc.) decreased.
As a result, sales of this segment were 27,547 million yen (a decrease of 2,307 million yen from the same period of theprevious fiscal year) and operating income was 283 million yen (a decrease of 1,206 million yen). Compared to theoutlook (Note), sales were below 0.9 billion yen and operating income was in line with the target.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 23 of the 2Q FY2023 Presentation Materials (announced on November 10,2023).

2

The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) increased. In Semiconductor Materials, sales ofantireflective coating for semiconductors (ARC®*) and multi-layer process materials (OptiStack®*) decreased due to a
decline in customer utilization. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hardcoating, and Oilfield materials (solvents to improve the efficiency of shale oil and gasextraction) decreased.
As a result, sales of this segment were 61,937 million yen (a decrease of 631 million yen) and operating income was17,414 million yen (a decrease of 3,400 million yen). Compared to the outlook (Note), sales were above 0.2 billion yen
and operating income was above 0.5 billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.
(Note) The outlook is described on page 23 of the 2Q FY2023 Presentation Materials (announced on November 10,2023).
The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased. In Japanese domestic market, sales of"GRACIA"(insecticide) were firm, but sales of "ROUNDUP" (non-selective foliar application herbicide) decreased. In theoverseas market, although sales of "GRACIA" grew, sales of "LEIMAY" (fungicide) decreased.
As a result, sales of this segment were 48,458 million yen (a decrease of 301 million yen) and operating income was
14,509 million yen (a decrease of 676 million yen). Compared to the outlook (Note), sales were below 0.7 billion yen andoperating income was in line with the target.
(Note) The outlook is described on page 23 of the 2Q FY2023 Presentation Materials (announced on November 10,2023).
The Healthcare Segment
Sales of "LIVALO" (anti-cholesterol drug) were at the same level as the same period of FY2022. In "Custom Chemicals"(custom manufacturing and solution proposal business for pharmaceutical companies), sales decreased.
As a result, sales of this segment were 4,839 million yen (a decrease of 2 million yen) and operating income was2,277 million yen (an increase of 153 million yen). Compared to the outlook (Note), sales and operating income wereabove 0.2 billion yen.
(Note) The outlook is described on page 23 of the 2Q FY2023 Presentation Materials (announced on November 10,2023).
Trading
Sales of this segment were 77,062 million yen (an increase of 2,409 million yen) and operating income was 2,841 million
yen (a decrease of 99 million yen). Compared to the outlook (Note), sales were above 1.0 billion yen and operating
income was above 0.2 billion yen.
(Note) The outlook is described on page 76 and 77 of the 2Q FY2023 Presentation Materials (announced on November
10, 2023).
OthersSales of this segment were 18,330 million yen (a decrease of 796 million yen) and operating loss was 43 million yen (adecrease in profit of 387 million yen).

3(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of December 31, 2023 was 309,707 million yen (an increase of 10,991 million yen from March 31, 2023).
It is mainly due to the increase merchandise and finished goods and raw materials and supplies, though notes andaccounts receivable - trade decreased.
Also, total liabilities as of December 31, 2023 was 88,351 million yen (an increase of 11,162 million yen). It is mainly due
to the increase of short-term loans payable.
Net assets as of December 31, 2023 was 221,355 million yen (a decrease of 170 million yen).
As a result of these factors, equity ratio was 70.4% (a decrease of 2.7% from March 31, 2023).
(Position of Cash Flows)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain andloss on working capital, net cash provided by operating activities for the nine months ended December 31, 2023 was
33,678 million yen (37,767 million yen for the same period of the previous year).
Mainly due to capital investment in factories, etc., net cash used in investing activities for the nine months ended
December 31, 2023 was 11,920 million yen (13,470 million yen for the same period of the previous year).
Due to payment for dividends and share repurchase, net cash used in financing activities for the nine months ended
December 31, 2023 was 25,899 million yen (37,506 million yen for the same period of the previous year).
Cash and cash equivalents at the end of this period decreased 3,964 million yen from March 31, 2023 after adjusting forthe 176 million yen of increase as an effect of exchange rate change. Moreover, the balance stood at 25,683 million yen(25,928 million yen for the same period of the previous year).

(3) Outlook of Consolidated Financial Results and Other Forward-looking Information
There is no change in the outlook of consolidated business results for the fiscal year ending March 31, 2024 from thestatement announced on November 10, 2023.

(4) Basic Policy on Distribution of Earnings
The Company’s basic policy of profit allocation is returning to shareholders by improving company value throughincreasing revenue in the medium and long terms.
In medium-term business plan “Vista2027” Stage I launched from April 2022, the company aims to realize dividend
payout ratio to be 55% and total payout ratio to be 75% after FY2022.

42. Consolidated Financial Statements(1) Consolidated Balance Sheets
As ofMarch 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable - other
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
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
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5(Million yen)
As ofDecember 31, 2023

29,647
82,67046,95018
17,703
2,113
3,088
7,305
(44)
189,454

25,68364,166
61,649225
23,007
2,062
1,024
11,673(47)
189,445

72,520(46,567)
25,952
151,653(136,861)
14,79242,153(38,379)
3,774

82,906(50,635)
32,271
172,006(147,665)
24,341
43,522(39,125)
4,396

8,817
149
(10)
139
11,17664,653

9,060
155
(20)
134
5,414
75,618

1,722
9,813
11,535

1,722
9,724
11,44727,322
0
531
2,140
3,186
(110)
33,071
109,260

27,533
47
439
2,175
3,111
(111)
33,195120,261

298,715309,707

As ofMarch 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for business structure improvement
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for loss on business of subsidiaries and affiliates
Provision for share-based remuneration for directors(and other officers)
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
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
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Million yen)
As ofDecember 31, 2023

19,942
25,327
624
7,879
2,413
418
15,556
72,161

23,39735,072
571
1,065
790
379
21,12582,400

1,338
98
626

1,079
1,368
453

256

245

377
2,331
5,027
77,188

432
2,371
5,951
88,351

18,942
13,613
182,400(6,111)
208,844

18,942
13,613
176,149(2,638)206,066

7,678
1,735
159
9,574
3,107
221,526
298,715

8,561
3,258
143
11,963
3,325
221,355
309,707(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Plant stop losses
Other
Total non- operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Total extraordinary losses
Income before income taxes and non-controlling interests
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

7

Nine Months Ended
December 31, 2022
159,234
80,78578,44939,63838,811(Million yen)
Nine Months Ended
December 31, 2023
155,334
80,61174,72341,28733,436

154
606
1,398
912
485
3,557

115
622
497
1,078
576
2,889

165
584
86
190
1,026
41,341

378
666
68
161
1,275
35,049

－
－

603
603

－
41,341
9,557
803
10,361
30,980219
30,760－35,653
8,597
999
9,596
26,056
83
25,972

- Consolidated Statements of Comprehensive Income

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)
Owners of parent
Non-controlling interests

8

Nine Months Ended
December 31, 2022
30,980(Million yen)
Nine Months Ended
December 31, 2023
26,056

(17)
1,128
345

882
1,702
(16)

0

(0)

1,456
32,4362,569
28,62532,076359

28,362
263

(3) Consolidated Statements of Cash Flows

Cash flows from operating activities
Income before income taxes and non-controlling interests
Depreciation
Amortization of goodwill
Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses
Loss (gain) on disposal of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Net decrease (increase) in short-term loans receivable
Purchase of long-term prepaid expenses
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Dividends paid to non-controlling interests
Share repurchase
Payments made to trust account for acquisition of treasury shares
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 in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

9Nine Months Ended
December 31, 2022

(Million yen)
Nine Months Ended
December 31, 2023

41,341
7,910
76
(761)
－
165
584
19,026(17,803)
4,172(3,137)51,574
1,341(162)(14,986)
37,76735,653
9,415
76
(737)
(603)
378
666
19,469(19,442)2,765
276
47,9191,617(373)(15,484)
33,678

(496)
491
(25)
(11,753)(508)(1,012)
78
(241)

(100)
788
(10)
(12,779)(586)(1,251)
2,110
(203)

－

93

(3)
(13,470)

18(11,920)(12,032)(276)(20,084)(105)(5,002)－(5)(37,506)
1,364(11,845)
34,6587,392(312)(22,973)－(5,818)(4,187)(0)(25,899)
176(3,964)29,647

3,116－

25,92825,683

(4) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.

(Notes on Significant Changes in Shareholders' Equity)
The Company made a stock payment of 7,600 shares to the eligible party on April 25, 2023 based on the trust
agreement of the Board Benefit Trust (BBT) resolved by the Board of Director's meeting on July 30, 2019. As a result,treasury shares decreased by 36 million yen during the second quarter of current consolidated fiscal year. Also, theCompany canceled 700,000 treasury shares on May 12, 2023 based on the resolution of Board of Directors' meeting
held on April 28, 2023. Furthermore, the Company canceled 800,000 treasury shares on August 10, 2023 based on the
resolution of Board of Directors' meeting held on July 28, 2023. As a result, retained earnings and treasury shares
decreased by 9,251 million yen during the third quarter of current consolidated fiscal year.
In addition, the Company repurchased 805,300 treasury shares based on the resolution of Board of Directors' meeting
held on May 15, 2023. Also, the Company repurchased 150,000 treasury shares based on the resolution of Board of
Directors' meeting held on December 15, 2023. As a result, treasury shares increased by 5,818 million yen during thethird quarter of current consolidated fiscal year.

10

(Segment Information)
1. Information Regarding Sales, Income (Loss) of Reportable Segments

1) For the Nine Months Ended December 31, 2022 (From April 01, 2022 to December 31, 2022)
Performance Agricultural
Chemicals
Healthcare
Materials
Chemicals

Trading

Others

Total(Million yen)
Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside customers(Note 1)

20,461

50,56240,4004,831

57,072

8,161

181,490(22,255)

159,234

Intersegment Sales

9,392

12,0068,359

1017,57910,96458,313(58,313)－

Total Sales

29,85462,56848,7594,842

74,652

19,126

239,804(80,569)

159,234

Segment Income or Loss
(Operating Income or Loss)

1,489

20,814

15,186

2,124

2,941

343

42,900(4,089)38,811

Notes:
1 Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions.
A reconciliation of gross sales to net sales as agent transactions is made in the Adjustment section.
2 Adjustments are follows.
(1) (22,255) million yen adjustment in sales to outside customers includes (22,271) million yen in the elimination of agent transactions, and16 million yen sales not attributable to any reporting segment.
(2) (4,089) million yen adjustment in segment income includes (44) million yen in intersegment eliminations, 17 million yen sales not
attributable to any reporting segment, and (4,061) million yen corporate expenses not attributable to any reportable segment. The corporate
expenses are mainly group administrative expenses which do not belong to any segment.

2) For the Nine Months Ended December 31, 2023 (From April 01, 2023 to December 31, 2023)
Performance Agricultural
Chemicals
Materials
Chemicals Healthcare

Trading

Others

Total(Million yen)
Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside customers(Note 1)

18,28549,646

38,118

4,782

57,708

7,316

175,857(20,523)

155,334

Intersegment Sales

9,262

12,291

10,33957

19,353

11,01462,317(62,317)－

Total Sales

27,54761,93748,458

4,839

77,062

18,330238,175(82,840)

155,334

283

17,414

14,509

2,277

2,841

(43)

37,283(3,847)33,436

Segment Income or Loss
(Operating Income or Loss)
Notes:

1 Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions.
A reconciliation of gross sales to net sales as agent transactions is made in the Adjustment section.
2 Adjustments are follows.
(1) (20,523) million yen adjustment in sales to outside customers includes (20,540) million yen in the elimination of agent transactions, and17 million yen sales not attributable to any reporting segment.
(2) (3,847) million yen adjustment in segment income includes 254 million yen in intersegment eliminations, 19 million yen sales not attributable
to any reporting segment, and (4,121) million yen corporate expenses not attributable to any reportable segment. The corporate expenses aremainly group administrative expenses which do not belong to any segment.

11