Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2020
(Based on Japanese GAAP)May 15, 2020
Company name:
Nippon Chemical Industrial CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

4092
President

URL

http://www.nippon-chem.co.jp/
Hirota Tanahashi

Inquiries:
General Manager, Accounting Department
Scheduled date of ordinary general meeting of shareholders:Manabu Sato
June 25, 2020

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 25, 2020
June 26, 2020

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
NoTEL

03-3636-8038(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
0.2
2,481
(19.6)
2,545(16.7)
1,857(13.8)(1.7)
3,084(24.5)
3,057(23.7)
2,154(22.4)

Net salesYear ended March 31, 2020
Year ended March 31, 2019

Millions of yen
36,24336,157

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen
%%%
–
5.2
3.9
6.8
–
6.2
4.8
8.5

Diluted earnings pershare

Earnings per shareYen
211.21
244.90Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
65,95065,497

Millions of yen
35,76835,497

Cash flows fromoperating activities
Millions of yen
4,776
2,632

Cash flows frominvesting activities
Millions of yen(5,503)(3,966)

Net assets per share%
54.2
54.2

Yen
4,066.52
4,035.61(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
842
9,315
1,445
9,041

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

40.00
35.00

––

30.00
35.00

70.00
70.00

615
615

28.6
33.1

1.8
1.7

–

–

––––

3. Forecast for the Consolidated Fiscal Year Ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Forecasts for the fiscal year ending March 31, 2021 are undisclosed due to inability to reasonably estimate business impact from the global
COVID-19 pandemic. Forecasts will be promptly released as soon as conditions allow for reasonable estimates.

1※Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

8,922,775 shares As of March 31, 2019

8,922,775 shares

126,963 shares As of March 31, 2019

126,667 sharesNumber of treasury shares at the end of the period
As of March 31, 2020
Average number of shares during the period
Year ended March 31, 2020

8,795,936 shares Year ended March 31, 2019

*This financial results report is exempt from audit by certified public accountants or accounting firm.

2

8,796,152 shares

Consolidated financial statements
Consolidated balance sheets
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Consumption taxes receivable
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
OtherAllowance for doubtful accountsTotal investments and other assets
Total non-current assets
Total assets

3(Millions of yen)
As of March 31, 2020

9,051
10,861
4,712
2,310
3,342
4532
(20)
30,794

9,392
10,820
4,474
2,196
2,170
–
665
(24)
29,69632,721(21,631)
11,0909,307(4,470)
4,836
7,730
2,567
6,303
(5,513)789
27,01434,487(22,320)
12,16613,135(6,058)
7,076
7,730
1,381
6,553
(5,630)923
29,279

62
257
319

47
597
644

6,597
37
141
165
450
(22)
7,368
34,70365,4975,735
22153–441
(22)
6,329
36,25465,950As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Accounts payable - facilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(Millions of yen)
As of March 31, 2020

4,617
9,143
346
24
432
2,361
2,000
18,925

3,194
7,825
296
363
416
1,904
1,928
15,930

5,422
2,118
1,299
2,233
11,07329,999

8,161
1,706
1,999
2,384
14,25130,181

5,757
2,269
24,840(353)32,514

5,757
2,269
26,126(354)
33,7992,792
0111792,983
35,49765,4972,467020(519)
1,968
35,76865,950Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Environmental expenses
Commission expenses
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

5

Fiscal year ended
March 31, 201936,15728,073
8,084
4,999
3,084

(Millions of yen)
Fiscal year ended
March 31, 2020
36,24328,457
7,785
5,304
2,481

12940156
326

134
44
114
293

74
148
91
39
354
3,057

76
51
38
62
229
2,545

55
55

194
194

156
–
156
2,956
746
56
802
2,154
2,154

216
12
228
2,511
624
29
654
1,857
1,857

Consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive incomeComprehensive income attributable toComprehensive income attributable to owners of parent

6

Fiscal year ended
March 31, 2019
2,154

(Millions of yen)
Fiscal year ended
March 31, 2020
1,857

(86)
2–(470)(325)(0)
9(698)

(4)

–

(559)
1,595

(1,014)843

1,595843

Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

5,757

Retained earnings

2,269

Total shareholders'equity

Treasury shares

23,302(352)

30,976

Changes during period
Dividends of surplus

(615)

(615)

Profit attributable to ownersof parent

2,154

2,154

Purchase of treasury shares

(0)

(0)

Net changes in items otherthan shareholders' equity––

1,538

(0)

1,537

5,757

2,269

24,840(353)

32,514

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred gains orlosses on hedges

2,879

(2)

Foreign currency Remeasurements
Total accumulatedtranslationof defined benefit other comprehensive
adjustment
plansincome
15649

3,542

Total net assets

34,518Changes during period
Dividends of surplus(615)

Profit attributable to ownersof parent

2,154

Purchase of treasury shares(0)

Net changes in items otherthan shareholders' equity

(86)

2(4)

(470)

Total changes during period(86)

Balance at end of period

2,792

2(4)

(470)

(559)

978

0

11179

2,983

35,4977(559)(559)

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of periodCapital surplus

5,757

Retained earnings

2,269

Total shareholders'equityTreasury shares

24,840(353)

32,514

Changes during period
Dividends of surplus

(571)

(571)

Profit attributable to ownersof parent

1,857

1,857

Purchase of treasury shares

(0)

(0)

Net changes in items otherthan shareholders' equity––

1,286

(0)

1,285

5,757

2,269

26,126(354)

33,799Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecuritiesDeferred gains orlosses on hedges

Foreign currencytranslation
adjustment

of defined benefit

2,792

011179Remeasurements
plans

Total accumulated
other comprehensive
income2,983

Total net assets

35,497

Changes during period
Dividends of surplus(571)

Profit attributable to ownersof parent

1,857

Purchase of treasury shares(0)

Net changes in items otherthan shareholders' equity

(325)

(0)

9(698)(1,014)(1,014)

Total changes during period

(325)

(0)

9(698)(1,014)

270

Balance at end of period

2,467020(519)

1,96835,7688Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securitiesLoss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Loan advances
Collection of loans receivable
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease obligations
Purchase of treasury shares
Dividends paid
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 resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

92,956
2,155
11
5
14
3(129)

2,511
2,657
14
0(16)
(21)
(134)

(40)

(44)

74
(2)
(55)
156
400
(2,148)
654
(126)
(116)
3,814
129
(73)
(1,241)
3
2,632

76
3(194)
216
101
1,523
(1,763)
343
116
5,392
134
(74)
(675)
–
4,776

(3,949)16(32)(5)122(1)
31(5,397)
14(411)(3)348(0)
23(67)–(79)(3,966)(76)(5,503)970
2,100(1,002)
(7)
(0)
(614)
1,445
2113
8,927

(140)
4,200
(2,637)
(8)
(0)
(570)
842
(5)
109
9,041

–

165

9,041

9,315