1 Summary of Consolidated Financial Results
for the Year Ended March 31, 2021
For the year ended March 31, 2021

Summary of
Financial Results

2 Forecast of Consolidated Financial Results
for the Year Ending March 31, 2022
3 Medium-Term Business Plan
4 Efforts to Social Issues
5 Efforts to Research and Development

May 28, 2021
Nippon Chemical Industrial Co., Ltd.

4092

1
© Nippon Chemical Industrial Co., Ltd.

Summary of Consolidated
Financial Results for the Year
Ended March 31, 2021

Points of the Full-year Financial Results
for the Year Ended March 31, 2021
・The chemical industry showed a continuing recovery trend after the second
quarter though the global economy slowed down due to COVID-19 crisis.
・Demand for our products, particularly for automobile market, recovered after
the third quarter. Net sales and operating profit were significantly above ourforecasts, which were announced in the first quarter, partially due tocontribution of purchases and expenses reduced by stronger yen.
◆ Net sales declined 4.4% Y-o-Y while operating profit increased 12.2%.
・Orders received from the automobile market, which recovered in the third quarter,
remains solid.
・DX-related demand remains steady in telecommunication and ICT markets.
・Demand in semiconductor market is also strong due to acceleration of digitalization.
・For further efficient and competitive business operation, measures to increase the asset
efficiency such as business restructuring were executed in the fourth quarter.
(Dissolution of the affiliated company caused temporal expenses of more than 500
million yen)3
Any unauthorized reproduction or distribution of all or part of this material is prohibited

Consolidated Financial Results for the Year Ended
March 31, 2021
(Millions of yen)

Year ended
March 31, 2020

Year ended
March 31, 2021

ChangeChange rate

Net sales

36,24334,642(1,600)(4.4%)

Operating profit

2,481

2,783

302

12.2%

6.8%

8.0%

+1.2pt-Ordinary profit

2,545

2,315

(230)

(9.0%)

Profit

1,857

2,182

324

17.5%

ROE

5.2%

5.8%

-

-

Net earnings per share(Yen)

211.21

248.11

-

-

70

70

-

-

Operating profit percentage

Annual dividends per share(Yen)

4
Any unauthorized reproduction or distribution of all or part of this material is prohibited(Millions of yen)

Inorganic
Chemicals Operating
ProfitNet Sales
Specialty
Chemicals Operating
ProfitLeasing
Business

Net Sales
Operating
ProfitNet Sales
Airconditioning
OperatingBusiness
ProfitNet Sales
Others

Total

Operating
ProfitNet Sales
Operating
Profit15,509492
15,470
1,280
912
532
3,418
139
931
62
36,243
2,481

14,257434
15,151
1,517
913
535
3,399
182
921
68
34,642
2,783

Weakness for environmental-related

Inorganic Phosphorus
Compounds

Strongness for LCDs andsemiconductors

Other Inorganic
Chemicals

Weakness in lithium products andcuprous oxide(319)

Phosphine Derivatives

Solidness in catalysts for plants andphosphorus materials for QD

237

Agrochemicals

Solidness

Battery Materials

Decline in market prices of raw
materials

Electronic CeramicMaterials

Weakness for automobile andsolidness for communication

Circuit Materials

Solidness for major customers

High Purity Electronicmaterials

Strongness for semiconductors andmajor customers

Other Specialty
Chemicals

Weakness in barium

Leasing Business

Solidness in major tenants

Air-conditioning
Business

Weakness in large-size facilities andstrongness in quantum computer

Book Store Operation

Solidness

OthersSolidness(1,252)
(58)

1
3
(18)
43

Specialty Chemicals

Net Sales

Chromium Compounds Weakness for automobile and steel

Silicates and Silica

Change(10)6(1,600)302

Other

Year ended March Year ended March
31, 2021
31, 2020

Inorganic Chemicals

Earnings for the Year Ended March 31, 2021, by Business5

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Consolidated Balance Sheets - Assets(Millions of yen)

[Assets]
Current assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Other
Non-current assets
Property, plant and equipment
Intangible assets
Investment securities
Other
Total assets

As ofMarch 31, 2020

As ofMarch 31, 2021

Change29,696
9,392
10,8208,840
644
36,25429,279
644
5,735
596
65,95030,59810,004
11,297
8,788
509
39,59830,874
589
7,044
1,091
70,196

902
611
476
(52)
(135)
3,344
1,595
(54)
1,309
495
4,246

6
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Consolidated Balance Sheet - Liabilities & Net assets(Millions of yen)

As ofMarch 31, 2020

As ofMarch 31, 2021

ChangeDeferred tax liabilities

15,930
3,194
7,825
4,911
14,251
8,161
1,999
1,706

17,525
3,802
8,300
5,423
13,595
7,283
1,387
2,173

1,595
608
475
512
(656)
(878)
(612)
467

Liability fromapplication of the equity method

-

424

424

Other

2,384
30,181

2,326
31,120(58)
939

Shareholders' equity

33,7991,968
35,76865,95035,365
3,709
39,07570,196

1,566
1,741
3,307
7
4,246

[Liabilities & Net assets]
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Other
Non-current liabilities
Long-term borrowings
Retirement benefit liability

Total liabilities[Net assets]

Accumulated other comprehensive income
Total net assets
Total liabilities and net assets

Consolidated Statements of Income
Net sales
Cost of sales
Selling, general and administrative expenses
Operating profit
Non-operating income
Non-operating expenses
Investment loss on equity method
Other non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Profit(Millions of yen)

Year ended
March 31, 2020

Year ended
March 31, 2021

36,24328,457
5,304
2,481
293
229

34,642
26,799
5,060
2,783
288
755

(1,600)(1,658)
(244)
302
(5)
526

-

517

517

229
2,545
194

238
2,315
824

9
(230)
630

194

824

630

228
2,511
624
29
1,857

191
2,948
866
(100)
2,182

(37)
437
242
(129)
324

Change Change rate

(4.4%)(5.8%)(4.6%)
12.2%(9.0%)

17.4%

17.5%
8

Consolidated Statements of Cash Flows(Millions of yen)

I Cash flows from operating activities
Profit before income taxes
Depereciation
Changes in inventories
Other
II Cash flows from investing activities
Capital expenditure
Other
III Cash flows from financing activities
Changes in loans payable
Cash dividends paid
Other
Effect of exchange rate changes 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

Year ended
March 31, 2020

Year ended
March 31, 2021

4,776
2,511
2,657
1,523
(1,915)(5,503)(5,794)
291
842
1,423
(570)
(11)

5,216
2,948
2,875
46
(653)
(3,539)(4,266)727(1,024)
(402)
(614)
(8)

(5)

(5)

109

647

9,041
9,315

9,315
9
9,962

２

© Nippon Chemical Industrial Co., Ltd.

Forecast of Consolidated Financial Results
for the Year Ending March 31, 2022

Points of Full-year Forecasts
for the Year Ending March 31, 2022
・Growth will turn positive in global economy. Production activities are expected toshow continuing recovery due to economic measures and increase invaccination.
・Impact of shortage of semiconductors on automobile production will be a risk
factor, but automobile and steel markets will show a continuing recovery trend.
Semiconductor-related is also expected to show continuing growth.
◆ Increasing demand related to digitalization and energy saving will increase net
sales, and investment in growth will be maintained to contribute to the society
via our products.
・Investment in growth: Maintain proactive investment in MLCC materials.
・Increase sales toward realizing outcome of investment in growing areas for recent years.
・Promote smartification of plants.
・Create new value with core technologies.

11
Any unauthorized reproduction or distribution of all or part of this material is prohibitedForecast of Consolidated Financial Results for the YearEnding March 31, 2022
(Millions of yen)
Year ended
March 31, 2021
Actual results

Year ending
March 31, 2022
Forecast

ChangeChange rate

34,642
2,783

36,000
2,600

1,358

3.9%

(183)

(6.6%)

8.0%

7.2%(0.8pt)

-

2,315
2,182

2,600
1,900

285

12.3%

216.01
70--

Cash dividends (Yen)

248.1170--

Capital expenditures

4,443

5,300

857

19.3%

Depreciation

2,875

3,200

325

11.3%

R & D expenses

1,223

1,300

77

12
6.3%

Net sales
Operating profit
Operating profit margin

Ordinary profit
ProfitNet assets per share (Yen)(282) (12.9%)

Net Sales
Inorganic
Chemicals Operating
ProfitNet Sales
Specialty
Chemicals Operating
ProfitLeasing
Business

Net Sales
Operating
ProfitNet Sales

Airconditioning
OperatingBusiness

ProfitNet Sales
Others

Total

Operating
ProfitNet Sales
Operating
ProfitForecast

14,257 13,635
434
595
15,151 16,535
1,517 1,230
913
913
535
525
3,399 3,950
182
195
921
967
68
55
34,642 36,000
2,783 2,600(622)

Silicates and Silica

DeclineInorganic Phosphorus
Compounds

Solidness for LCDs andsemiconductors

Other Inorganic
Chemicals

Weakness in lithium products andsolidness in cuprous oxide

Phosphine Derivatives

Solidness in catalysts for plants andphosphorus materials for QD

Agrochemicals

Solidness

Battery Materials

Decline in market prices of raw
materials

Electronic CeramicMaterials

Steadiness for Automobile andcommunication

Circuit Materials

Solidness for major customers

High purity electronicmaterials

Strongness for semiconductors andmajor customers

Other Specialty
Chemicals

Weakness in barium

Leasing Business

Solidness

Air-conditioning
business

Strongness in quantum computer

Book store operation

Weakness

Other

Solidness

161
1,384
(287)
0
(10)
551

Specialty Chemicals

Actual results

Year ending
March 31, 2022 Change

13
46
(13)
1,358
(183)

Other

Year ended
March 31, 2021

Inorganic Chemicals

Forecast of Earnings for the Year Ending March 31, 2022,
Chromium Compounds Recovery for automobile and steel
by Business(Millions of yen)

13

Any unauthorized reproduction or distribution of all or part of this material is prohibited3© Nippon Chemical Industrial Co., Ltd.

Medium-Term Business Plan

Review of the Previous Medium-Term Business Plan
The plan was achieved in net sales and profits until the second year,
but it was unachieved for the third year.
Promotion of aggressive investment increased depreciation, which squeezed profits.
(Millions of yen)

OperatingprofitPlan: 2,500

Plan: 2,800

Plan: 2,900

Actual: 4,000

Actual: 3,000

Actual: 2,400

350

Net sales
Plan:

Actual:35,00036,700Plan:

36,000

Actual:Plan:

Actual:36,10037,50036,200300

2018/3

2019/32020/315

Measures during the Previous Medium-Term Business Plan
The groundwork for realization of sustained and steady profits was executed✔ Concentrated investment in priority areas✔ Aggressive development of overseas strategies✔ Reinforcement of business foundation

Execution of investment in growth fields such as MLCC materials andorganic electronic materials
Acquisition of Rockgate Corporation and an increase in net sales fromquantum computer market
Promotion of overseas expansion for semiconductor market and thenext-generation display market
Development and net sales increase of Asian emerging markets

Groundwork forrealization ofoutcome

Implementation of strategic net sales increase and various cost-cutting
measures
Completed redevelopment of the site for the Nishiyodogawa plant16
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New Medium-Term Business Plan
(Fiscal year ending March 31, 2022 to Fiscal year ending March 31, 2024)“Promotion and Realization of Outcome of the Growth Strategy”

17
Any unauthorized reproduction or distribution of all or part of this material is prohibitedBasic Policy of the New Medium-Term Business Plan
Promotion and realization ofoutcome of the growth strategy
We will strove to realize the outcome as a culmination of the groundwork of
the previous medium-term business plan.
We will seek to build the new earnings base by continuously strengthening and reinforcing ofbusiness foundation and promoting the growth strategy and global strategy.

Corporate value

Enhancing
corporate value

Expansion of growth fields
Promotion of globalization

Realization ofsustained and steadyprofits

Strengthening of basic
chemical fields
Reinforcement of businessfoundation
2021

18
Any unauthorized reproduction or distribution of all or part of this material is prohibitedNumerical Targets of the New Medium-Term Business Plan
Net sales
Goals for the fiscal year
ending March 31, 2024

Operating profit

30Chemic390
hundred millions of yen

hundred millionsof yenal
16％

Net Sales(Hundred millions of yen）

346

390

New medium-term

Numerical Goals

Inorganic
Chemicals
Specialty
Chemicals
Air-conditioning

business plan

Year ended

Year ending

March 31,2021

March 31,2024

142

＋8%

Fiscal year ended Fiscal year ending
March 31, 2021
March 31, 2024

151

＋20%

Operating profit
27

business

33＋12%

Others18

steady30

Fiscal year ended Fiscal year ending
March 31, 2021
March 31, 2024 19
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Strengthening of Basic Chemical Fields<Examples of basic chemical products and their applications>

Chromium Compounds

Silicates and Silica

Inorganic Phosphorus

Only manufacturer of
Chromium Compound in JapanFirst producer of Sodium Silicate
in Japan

Largest level of product lineup
in Japan

Hard chrome plating
Excellence in hardness
and abrasion
resistance

Removal of ink from used papers
Used to remove stains when regenerating
pulp from used paper and to stabilizehydrogen peroxide during bleaching.

Application: Cylinder,
Piston ringFire bricks
They have therefractoriness of 1790
degree or more.
Application:
metallurgical furnace
Magnetic steel sheet plating
EV drive motor

Food additives
Additives for giving a flavor
to noodles
pH adjusters
Emulsifier

Detergent

Soil hardening agents
Liquid agents for injecting to fill cavities voids
and cracks at construction works, and it is used
to curing soft ground.

Optical glass materials
Giving chemical stabilization
Increase in visible lighttransmission

Seeking an increase in profitability and earnings by expanding

the lineup of value-added products and increasing the production
20

efficiency
Any unauthorized reproduction or distribution of all or part of this material is prohibitedExpansion of Growth Fields
Digitalization and energy saving will contribute to an increase in net sales<Percentage of growth fields in net sales>

Accelerating growth◆Electronic ceramic materials◆Phosphoric acid for LCDs andsemiconductors◆High-purity red phosphorus◆High-purity phosphine gas◆Phosphorus materials for Quantum Dot◆Organic electronic materials

29％

38％

2020

2023

＜Net sales in growth fields＞
150(hundred millions of yen)

100

50

0
2020

2021

2022

2023

21
Any unauthorized reproduction or distribution of all or part of this material is prohibitedElectronic Ceramic Materials
Value added MLCC will structurally increase demand for mid- and long-term
Our Strengths

Growth Factors◆ Electrification of Automobiles(Increase in Automatic Driving, Hybrid and Electronic Vehicles)◆Infrastructure investment for realization of Society 5.0(5G base station, sensors, IoT modules)◆ 5G support of Smartphones◆ Skilled Synthesizing Technology of Inorganic Chemicals→This enables us to cover functions demanded by customers.

◆ A wide variety of manufacturing methods→Oxalic method, Solid-state method, and Alkoxide method◆ High-quality Products→Stable composition (Ba/Ti), uniform particle size and high purity

Product application
・Barium Titanate: MLCC Derivative Materials
・High Purity Barium Carbonate: Materials for Barium Titanate

Business Strategy◆ Strengthening of product supply capability◆ Response to BCP (Multiple production bases)◆ Development of new products satisfying customer demands

Completed construction of new production building for barium titanate
・A new production building in Tokuyama Factory, in addition to the existingproduction site of Fukushima No.1 Factory, was constructed at April 2021.
・The production building will start operation in the first half of 2021.
・We will make a plan to increase production according to expansion of market
New production building
for barium titanatein Tokuyama

22

Any unauthorized reproduction or distribution of all or part of this material is prohibitedPhosphoric Acid for Semiconductors, High-purity Phosphine
Gas and High-purity Red Phosphorus
Digitalization with 5G contributes to demand expansion
Growth Factors

Our Strengths◆ Product Supply Capacity◆ Continuing growth of semiconductor market→Completed production increase of high-purity red phosphorus◆ Higher speed and greater capacity of internet communication→Increasing demand for light emitting/receiving device materials ◆ High-quality Products→Producing high-purity red phosphorus from phosphine gas
for optical communications
Product application
・Phosphoric acid: Etching・High-purity red phosphorus: N-type dopant materials,
Compound semiconductor materials (InP-based)
・High-purity phosphine gas: N-type dopant materials

Business Strategy◆ Development of new grades satisfying customer demands

Completed construction of new production building for High-purity
Red Phosphorus
・The market is expected to grow, supported by the acceleration ofdigitalization and increasing demand for optical communications.
・A new production building in Fukushima No.2 was constructed and started
operation in April 2021.
・Double the production capacity to strengthen the stable supply system.
New production building
for high-purity red phosphorus
In Fukushima

23
Any unauthorized reproduction or distribution of all or part of this material is prohibitedPhosphorus Materials for Quantum Dot (QD)
Upward trend in demand along with a growth in global market
Growth Factors

Our strengths◆Increasing demand for quantum dot displays◆Major South Korean display manufacturer makes
large-size investment in the next-generation
display using Indium Phosphide (InP) –based ink.
→A steady investment toward rollout in 2022.

◆ Vast amount of technologies and know-how→Provision of a wide variety of compounds based on trackrecord on development and manufacturing ofphosphine derivatives for more than 25 years◆ A wide variety of manufacturing methods→Wide production coverage over main-stream Cd/Sebased materials as well as the next generation InPbased materials◆ Competitive advantage→Building the relationship with major users from thephase of market set up, provision of materials to androllout of new products in market

What is Quantum Dot (QD)?
Semiconductor particle with the diameter of 10nm or less
It is mainly divided into cadmium selenide-based and indium phosphide -based.
What is QD television?
It is the quantum dot (QD) embedded next generation television which is
penetrated mainly in China and South Korea.

24
Any unauthorized reproduction or distribution of all or part of this material is prohibited4© Nippon Chemical Industrial Co., Ltd.

Efforts to Social Issues

Corporate Philosophy of Nippon Chemical Industrial

Treating Humanity, Treasuring Technology with Good Care
Nippon Chemical has manufactured high quality products for more than 125
years since its founding while overcoming major changes in society. With these
traditions and its achievement passed down to our generation, we look tocontribute to an enriched society through better products and services.

New breeze in society

New breeze in business areas

We aim for corporate activities that contribute to
the happiness of people from the perspectives of
local communities, nations and on a global scale.

We polish our strong areas and characteristic
technologies in order to heighten
functionality.

New breeze to our customers

New breeze in the company
The energy of individuals challenging their limits
become the technology to create a comfortablebreeze in the workplace.

We will deepen the connection with customers
as people, work hard to capture market needs inadvance, and respond with characteristic
technologies and foresight.

26

Nippon Chemical and Social Issues (i)We are Treating Humanity, Treasuring Technology with Good Care

Corporate
Philosophy

Research andDevelopment
Improvement of comfort
Energy management
Protection of health (life)

Products

Comfortable life
Making safe community
Sophistication of information and communicatio27

Nippon Chemical and Social Issues (ii)
Pursuing both a sustainable society and corporate growth
Development
Capability

Technology
Capability

Corporate
CultureEfforts toSocial Issues

Creatinga Sustainable
Society

Increase inSocial Value andCorporate Value

Development of
Human
Resources

Realization of
Sustainable andStable Earnings
28

5

Efforts to Research and Development© Nippon Chemical Industrial Co., Ltd.

Concept of Research and Development

Core
Technologies
Organic Synthesis technology

Improvement of comfort
Technologies
For expansion
and enrichment

Piezoelectric Materials
Dielectric Materials
Adsorbents

Evaluation and Analytical technology

Nano technology
Surface Modification and Coating technology

Crystalline and Structural Control technology

Polymer technology
Biochemical technology

Energy management
Battery Materials
Negative Thermal expansion materials

Composite technology
Phosphines technology

Protection of health (life)
Inorganic Synthesis technology

Pharmaceutical raw materials
Chiral Phosphine Ligand

30
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Specialty Phosphates for Small All-Solid-State Batteries
Development of specialty phosphates suitable for active material and solid-state electrolyte
for the next-generation batteries
Characteristics◆ Unique, chemical synthesis method combining our core technologies and know-how→Know-how on production of phosphoric acid with the history of 100 years→Inorganic synthesis technology developed in production of active cathode material for lithium-ion batteries→Crystallinity and structure-control technologies making composition ratio uniform on the molecular level◆ Controlling the reaction with lithium, phosphoric acid and a variety of metals◆ “Specialty phosphates” especially suitable for small all-solid-state batteries
Examples of products

・LATP：Lithium Aluminum Titanium Phosphate
・LVP：Lithium Vanadium Phosphate
・LCP：Lithium Cobalt Phosphate31
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The forecasts of financial results and business plans included in the materials were based on the information available for us as of now and certain
preconditions, and so they do not guarantee our future financial results. Actual financial results, etc., may differ from the forecasts due to a variety of reasons.
Please make decisions on investment by user himself or herself.