2002

Annual ReportProfile
Since its foundation in 1941, Nippon Shokubai has been engaged in R&D
activities in search of original technical solutions in four major fields: catalyst
technology, polymer synthesis, environment preservation systems, and organic
synthesis. Our major products are basic chemicals, including acrylic acid,methacrylic acid and ethylene oxide; fine and specialty chemicals, including
superabsorbent polymers and higher alcohols; synthetic resin, including unsaturated polyester resins; and catalysts/environment preservation systems, including catalysts for cleaning automobile exhaust gases, process catalysts anddioxins decomposition/elimination equipment. Created through our proprietary technology and know-how, these products have made various contributions to our society and people’s daily lives.
In addition, our various chemical product manufacturing technologies havebeen highly appreciated overseas, as well as our diverse line of products.
A wide variety of chemicals manufacturing technologies, including thoserelated to acrylic acid/esters and many other process technologies, have been
exported to Europe, Asia, the USA, and elsewhere.
In recent years, we have been making efforts to develop our business at
global basis by establishing production bases for acrylic acid and acrylic esters
in Southeast Asia and North America and for superabsorbent polymers inNorth America and Europe.
Under our corporate philosophy of “TechnoAmenity,” which seeks to harmonize “Technology” and “Natural Environment,” and focusing on our ultimate objective, “making human life richer and more comfortable throughtechnological innovations,” we are working to meet emerging global changes
and to enhance our potential for commercial competition.

Contents
Financial Highlights .................................................................................. 1
To Our Shareholders ................................................................................. 2
Review of Operations
Chemical Business ................................................................................. 4
Other Businesses .................................................................................... 6
Responsible Care ....................................................................................... 7
Topics ........................................................................................................ 8
Management Indices ............................................................................... 10
Financial Section
Independent Auditors’ Report .............................................................. 13
Consolidated Balance Sheets ............................................................... 14
Consolidated Statements of Income ..................................................... 16
Consolidated Statements of Shareholders’ Equity .............................. 17
Consolidated Statements of Cash Flows .............................................. 18
Notes to Consolidated Financial Statements ....................................... 20
Corporate Data ........................................................................................ 30

Financial Highlights
Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries
Years ended March 31

Millions of yen

Thousands of
U.S. dollars

2002

2001

2000

2002

For the YearNet Sales ........................................
Operating Income ..........................
Income before Income Taxes ........
Net Income ....................................

¥159,722
8,963
4,987
1,590

¥160,585
5,379
3,178
1,242

¥162,461
6,622
5,349
2,659

$1,198,215
67,24037,412
11,928At Year-End
Total Assets ...................................
Total Shareholders’ Equity ...........

¥230,253
120,238¥230,468
117,340¥216,896
118,820$1,727,330
902,009Yen

Per Share Amounts
Net Income ....................................
Cash Dividends .............................

¥8.16
7.00

U.S. dollars

¥6.37
7.00

¥13.54
7.00

$0.06
0.05

Foreign Exchange Rate: US$1.00 = ¥133.3

Net Sales (Billions of yen)

Net Income (Billions of yen)

200

6

Shareholders’ Equity(Billions of yen)

140
5.2

172
160

162

161 160

120

5

111.7

114.7

118.8 117.3 120.2

4.5

150

100
4
80

100

3

2.7

60
2
1.6

50

40

1.2

1

0

20

0
’98 ’99 ’00 ’01 ’02

0’98 ’99 ’00 ’01 ’02’98 ’99 ’00 ’01 ’02

Nippon Shokubai Co., Ltd. 1

To Our Shareholders

Performance
Fiscal 2001, ended March 31, 2002 was adifficult year throughout the world as the global
economy weakened under the impact of the slowdown in the United States economy. In Japan, thesense of stagnation in the economy deepened asexports continued to decline and capital investment
was at low ebb in the private and public sectors.
The chemical industry suffered a similar fate,with declining demand and a progressive economic
deflationary trend creating a difficult businessclimate.
Performance Highlights

Net sales
Operating income
Ordinary income
Net income
Net income
per share
ROA
ROE
Exchange rate
Naphtha price(Unit: millions of yen)
Fiscal Year
Change2001
2000
Amount%159,722
160,585
(863)
(0.5)
8,963
5,379
3,584
66.6
5,558
4,303
1,254
29.1
1,590
1,242
347
28.0
¥8.16
¥6.37
2.4%
1.9%
1.3%
1.1%
$=¥125.04$=¥110.60
EUR=¥110.50 EUR=¥100.38¥22,100/kl¥23,550/kl

¥1.79
—
—

28.1
0.5 points
0.2 points¥14.44¥10.12(¥1,450/kl)

In this business environment, consolidated net
sales edged down ¥863 million, or 0.5%, to¥159,722 million. Sales in yen terms were somewhat boosted by the undervaluation of the yen,
however, these gains were overridden by declines insales volume of basic chemicals and other products
and cuts in sales prices.
Operating income rose ¥3,584 million, or 66.6%,
to ¥8,963 million. Although sales volume of basic
chemicals and other products decreased and prices
declined, profits ballooned thanks to the fall in raw
material costs and increased sales volume of superabsorbent polymers and industrial catalysts throughtechnology licensing. In addition, the depreciationof the yen and rationalization of operating expenses
also contributed to higher profits.
Ordinary income advanced to ¥5,558 million, up¥1,254 million, or 29.1%. The growth in ordinary
income was lower than that of operating income
because of increases in interest paid, losses on
disposal of assets, and equity in losses of unconsolidated subsidiaries and affiliates.
Consolidated net income expanded ¥347 million,or 28.0%, to ¥1,590 million. Although the Company
recorded a loss on devaluation of investments insecurities, it also received transfer income related to
2 Nippon Shokubai Co., Ltd.

the exchange of businesses with Sumitomo
Chemical Co., Ltd.
Net income per share amounted to ¥8.16. Returnon assets (ROA) was 2.4%, up 0.5 percentage points
from the previous fiscal year while return on equity(ROE) increased 0.2 percentage points, to 1.3%.
Sales by Business Group and Region(Unit: millions of yen)
Fiscal Year 2001 Fiscal Year 2000
ChangeProduct Group Chemicals Others Chemicals Others Chemicals Others
Sales
157,894 1,827 158,230 2,355(335) (527)
Operating income
8,369
578
4,738
505
3,630
72
Regional
Japan Overseas Japan Overseas Japan Overseas
Sales
132,285 27,436 142,021 18,564 (9,735) 8,872
Operating income
8,507 (101)
5,397
(54)
3,109
(46)

OutlookDespite the mild recovery in Japan’s exports
anticipated following the bottoming out of the U.S.
economy, a genuine recovery in the Japanese
economy is expected to take some time. Conditions
are anticipated to remain challenging in Japan with
unemployment rising and personal consumption
continuing its slump.
Under these circumstances, we foresee that theconsolidated net sales of the Group will be ¥163.0
billion (¥79.0 billion in the first half) based onincreased sales volume. Operating income is also
expected to expand despite continued high raw
material costs and soft product prices thanks toincreased sales volume and operating expenses
reductions.
Reflecting improvements in equity in losses of
unconsolidated subsidiaries and affiliates and in
financial income and expenses as well as increased
income from technology sales, ordinary income
should grow ¥3,541 million, to ¥9.1 billion (¥2.7
billion in the first half) compared with the previous
fiscal year. Consolidated net income is expected toincrease ¥3,309 million, to ¥4.9 billion (¥1.0 billion
in the first half) because of the lack of the substantial loss on devaluation of investments in securities
booked during the previous fiscal year.
In making these performance forecasts, we haveassumed exchange rates of ¥130 to the U.S. dollar
and ¥116 to the Euro. In addition, the price ofnaphtha, which sets the standard for raw material
prices, was set at ¥23,000 per kiloliter.

Business Plan
(1) Fundamental Business Policies
Our corporate philosophy of “TechnoAmenity,”
seeks to make human life richer and more comfort-

able through technological innovation, with ourcatalyst technology as a core, we are working to meet
emerging global changes and to enhance our potential for commercial competition, based on the following fundamental business policies.
• Respect humanity.
• Target the development of pioneering technologies.
• Conduct business activities with a global view.

(2) Dividend Policy
Nippon Shokubai considers shareholder dividends
as one of its top corporate priorities, and our policy is
to ensure a payout of continuous, stable dividends toour shareholders. At the same time, the Company
must maintain its competitive edge and follow
practices that promote sustainable growth, and thisrequires judicious investment in facilities and research and development. It is thus vital that we retainsome of the profits within the Company. Consequently, dividends are paid in consideration ofmaintaining a balance between these two factors.
(3) Medium-term Business Strategy
We believe that our highest priority is not the
pursuit of continuous growth in quantity but inquality. Recognizing our strengths and weakness, wemust be selective and focused in the use of ourbusiness resources. Based on an awareness of thispriority, we have prepared medium-term (3 years)
and long-term (6 years) business plans that were
implemented in April 2001.
1) Summary of the Long-term Business Plan,“TechnoAmenity NV”
1. Our future vision of the Company is “Nippon
Shokubai: A Global Company Creating New
Values through Unique Technologies.”
2. Under our long-term business plan slogan, “A
Shift from Quantitative Growth to Qualitative
Growth—for Our Development in the 21st Century,” we are aiming to establish a powerfulbusiness structure through selective and focuseduse of business resources on new product fields,
establishing a business portfolio and clarifying
profit responsibilities in our existing fields, andrevitalizing employees and our organization.
3. Performance Targets
Targeting more efficient use of assets and increased product profitability, we have introduced
return on assets (ROA) on a consolidated basis as
our indicator of overall corporate performance. As
performance indicators for business operations, wehave introduced cash flow provided by operating
activities and sales contribution income (our own,
original indicator).

Hiroshi Yanagida, President2) Summary of the Medium-term Business Plan
The first half, or three years, of the long-termbusiness plan, has been termed the “foundation
setting” stage of the plan, and we have implemented
concrete measures for each business to achieve its
goals.
Pursuing our goal of an ROA of 5% or greater on
a consolidated basis by the end of the medium-termbusiness plan, we are improving asset efficiency andstrengthening our corporate structure.
As part of those efforts, we began operations of asuperabsorbent polymer plant at Nippon ShokubaiEurope N.V., of Belgium, in June 2001. In addition,
we made a business exchange with Sumitomo
Chemical Co., Ltd., during the fiscal year. At theend of March 2002, the two companies combined
their acrylic acid and MMA monomer operations,with Nippon Shokubai acquiring the acrylic acidoperations and Sumitomo Chemical taking over the
MMA monomer operations.
In the United States, American Acryl, a joint
venture with ATOFINA, of France, plans to complete a new acrylic acid product plant this summer.
When completed, Nippon Shokubai’s share ofannual production will be 60 thousand tons. Combined with our domestic production capacity of 300
thousand tons and the 60-thousand-ton annual
production capacity of Nippon Shokubai Indonesia,
the new plant will give us a total acrylic acid production capacity of 420 thousand tons per annum,
making the Nippon Shokubai Group the 3rd largest
producer of acrylic acid in the world.
Through such strategies, we are being selective
and focused in the allocation of our corporate
resources, aiming to achieve quality growth.

Hiroshi Yanagida
President
Nippon Shokubai Co., Ltd. 3

Review of Operations(Chemical Business)
Basic Chemicals Group
Chemical Business(Change of net sales)(100 millions of yen)

2,000
1,691
1,577 1,599 1,582 1,579

1,500

1,000

500

0
’98 ’99 ’00 ’01 ’02

Breakdown andcomponent ratio in
2002:

Reflecting a soft global market, salesof acrylic acid and acrylic esters decreased because of weakening demand inJapan and overseas. Sales of methacrylicacid and methacrylate esters also slipped
because of declining demand in Japanand overseas.
Lower sales volume resulting from
intensified competition in overseas
markets and struggling demand in Japan
pushed down sales of ethylene glycols.
Sales of ethylene oxide and its derivatives
also dropped due to stagnant domestic
demand.
Phthalic anhydride sales declined
because of continued weak domestic
demand for its use in plasticizers andpaint. Sales of maleic anhydride, however, increased thanks to higher domestic
sales arising from the exit of somecompetitors from the market.
Consequently, sales of the Basic
Chemicals Group totaled ¥48,589 million, a decline of 11.2% from the previous fiscal year.

(100 millions of yen)
114.7

Basic
Chemicals
Group

486
30.8%

Breakdown andcomponent ratio in
2002:

117.3

Fine & Specialty
Chemicals Group
Sales of superabsorbent polymers
expanded substantially. Sales volume
increased thanks to growing demand
worldwide. Other factors contributing togreater sales were extraordinary demand
for superabsorbent polymers due to the
production problem of overseas competitor and the undervaluation of the yen.
Sales of higher-alcohol products(SOFTANOL) and other raw materials
for detergents declined because of weakdomestic and overseas demand.
Faltering domestic and overseas
demand for products used as concrete
admixtures resulted in lower sales volume
and decreased sales.
Sales volume of raw materials forpaints and resins fell because of stagnant
domestic demand and intensified competition in overseas markets, resulting in adrop in sales.
Sales of resin performance improvers
also decreased due to falling sales volume
caused by weak domestic and overseas
demand and intensifying competition
overseas.
Among other fine chemicals, sales of
medical intermediates were approximately the same as those posted in theprevious fiscal year. Sales of iodic andcyanic compounds and agriculturalchemical-related products fell because ofheightened competition.
Consequently, sales of the Fine &Specialty Chemicals Group amounted to¥68,116 million, up 12.1% from theprevious fiscal year.

(100 millions of yen)

Fine andSpecialty
Chemicals
Group

681
43.1%

Paint (Acrilic esters)

Disposable diapers (Superabsorbent polymers, AQUALIC CA)
4 Nippon Shokubai Co., Ltd.

Polymers & Resins GroupIn addition to weak sales of unsaturated polyester resin (EPOLAC) for use in
housing construction and industrial
equipment, the product faced intensifiedcompetition from low-priced imports,
resulting in a drop in sales.
Sales of adhesive resins rose on
increased domestic and overseas demand,but sales of heat-resistant paints andinsulating varnishes fell because ofheightened competition in overseas
markets and low demand in Japan.
Sales of plastic molded products werealso weak, mirroring stagnant demand.
Consequently, sales of the Polymers &Resins Group decreased 9.2%, to ¥20,329
million compared with the previous fiscal
year.

Environment Business &Catalysts Group
Sales of industrial catalysts throughtechnology licensing rose significantly
because of strong replacement demand.
Greater demand from electric power
plants contributed to increased sales of
De-NOx catalysts. Conversely, sales ofautomotive catalysts declined substantially because of decreased demand.
Demand was favorable for dioxin
decomposition catalysts, boosting salesof these products. However, sales ofwaste water treatment plant equipment
and catalysts declined due to low demand.
Consequently, sales of the Environment Business & Catalysts Group totaled¥20,858 million, edging up 2.3% fromthe previous fiscal year.
Overall, total sales of the chemicals
business edged down ¥335 million, or
0.2%, to ¥157,894 million compared withthe previous fiscal year.
Operating income soared ¥3,630
million, or 76.6%, to ¥8,369 million
despite declines in sales volume of basic
chemicals and product prices. Increased
sales of superabsorbent polymers andindustrial catalysts through technology
licensing, the depreciation of the yen, adecline in raw material costs, and further
reductions in fixed costs contributed to
the growth in operating income.

Breakdown andcomponent ratio in
2002:(100 millions of yen)

203
12.9%

Polymers &Resins Group

Breakdown andcomponent ratio in
2002:(100 millions of yen)

209
13.2%
Environment
Business &Catalysts Group

Printed circuit boards(Special heat-resistant resin, EPOCEL)

Automotive catalysts for gasoline and diesel engines.
Nippon Shokubai Co., Ltd. 5

Review of Operations(Other Businesses)
Other Businesses
Revenues from the transportation
business were almost the same as thoserecorded in the previous fiscal year.
During the fiscal year, we eliminated ourservices business after exiting from thegolf driving range business.

Other Business(Change of net sales)(100 millions of yen)

Overall, sales of Other Businesses
dropped ¥527 million, or 22.4%, to¥1,827 million from the previous fiscal
year. Operating income, however, rose
¥72 million, or 14.3%, to ¥578 million
thanks to cost cutting efforts.

30
27
25

25

26
23

20
18

15

10

5

0
’98 ’99 ’00 ’01 ’02

114.7

117.3

Geographic Information
Japan
Reflecting a generally weak chemicals
business throughout the fiscal year, sales
declined 6.9%, to ¥132,285 million. On
the other hand, operating income jumped
57.6%, to ¥8,507 million.

Overseas
Growth of production plants in Asia
boosted overseas sales 47.8%, to ¥27,436
million. However, operating income
moved further into the red, at ¥101
million.

6 Nippon Shokubai Co., Ltd.

Specific Responsible Care Activities
Nippon Shokubai’s Fundamental Policy
Regarding Environmental Preservation and Safety
As a member of the business community and society
at large, we are committed to be a good corporate citizen
not only of local communities also of the world. In our
activities, we place great emphasis on the environmental
preservation, health and safety throughout the entire life
cycle of chemical substances, from development todisposal. Based on the principle of sustainable development, our fundamental policy is to harmonize our activities with environmental preservation on a global basis.

Environmental Preservation and Safety
Activities
Nippon Shokubai is a participant in the Responsible
Care activities of the International Chemical Council
Association (ICCA). Through these RC activities, theCompany is contributing to the environmental preservation.

Major Activities on environmental preservation(1) Pollutant Release and Transfer Register (PRTR)(2) Promotion of energy conservation(3) Reduction of industrial waste(4) Material Safety Data Sheet (MSDS) preparation anddistribution to customers(5) Yellow Card preparation(6) Environmental management system (ISO14001
certification)(7) Participation in regional RC meetings sponsored by
the JRCC(1)PRTR (Pollutant Release andTransfer Register)A regulatory system which
requires reporting of emission
volumes of chemical substances
into the air, water and soil andtransferred volumes of wastes.
Data compiled to thegovernment bodies aredisclosed to the public.
(4)MSDS (Material Safety Data
Sheet)
A document that describes thehealth, safety andenvironmental hazards of amaterial and provides
information on how the material
can be safely handled, used anddisposed.

Society
Process
safety andDisasterPrevention
Environmental
Preservation

Communications

Occupationalsafety andhealth

Product
stewardship

Five themes of activities● Environmental preservation● Process safety and disaster prevention● Occupational safety and health● Product stewardship● Communication (Publication of performance, dialogue with the public)(8) Participation in the ICCA’s initiative on high production volume (HPV)(9) Participation in the ICCA’s long-range research
initiative (LRI)RC Participation History
1993 Established fundamental policy and committed tothe pursuit of RC.
1995 The Japan Responsible Care Council (JRCC) wasestablished, with 74 companies participating.
* As of 2002, 114 companies are participating in the JRCC.

RC (Responsible Care)
Activities undertaken by the chemical industry bywhich manufactures and handlers of chemical substances,
under the principle of self-determination and individual
responsibility, conduct self-management of environmental
and safety issues surrounding aspects of chemical substances, from development to disposal.

(5)Yellow Card
A card stating the procedures tobe taken and contact
information for transporters, firesquads, and police in the eventof an accident during the roadtransport of chemical
substances.

(8)HPV(High Production
Volume)Preexisting Chemical
Substances
An OECD program forcollecting and evaluating safety
data on chemical substances
whose production volume
exceeds 1,000 tons per country.

(7)JRCC (Japan Responsible
Care Council)
An organization establishedwithin JCIA in 1995 for thepromotion of RC in Japan.

(9)LRI (Long-range ResearchInstitute)
A voluntary long-term plan to
study the effects of chemical
substances on health, safety, andthe environment, one of ICCA’s
most crucial agendas.

(9)ICCA (International
Chemical Council
Association)
An organization of the world’s
chemical industry groups,
which, as of its establishment in
1990, has included the Japan
Chemical Industry Association.

Nippon Shokubai Co., Ltd. 7

Topics

Exchanging and Integrating
Acrylic Acid and MMA Monomer
Businesses with Sumitomo
ChemicalNippon Shokubai and Sumitomo
Chemical Co., Ltd., concluded a basic
agreement to exchange and integrate theiracrylic acid and methyl methacrylate(MMA) monomer business at the end of
March 2002, with Nippon Shokubai
acquiring the acrylic acid business andSumitomo acquiring the MMA monomer
business.
Nippon Shokubai produces a fullrange of acrylic acid and such derivatives
as superabsorbent polymers and acrylicacid esters. On the other hand, besides
monomers, Sumitomo Chemical manufactures a wide-range of MMA polymer
products, such as sheets and molding

Nippon Shokubai’s
acrylic acid production
plant.

8 Nippon Shokubai Co., Ltd.

materials for car components and otherfields. Amid intensifying global competition, both companies are seeking to focus
their corporate resources on their specialty fields, aiming to boost their competitiveness.
Based on this exchange of businesses,
Nippon Shokubai’s domestic acrylic acidproduction capacity will increase by 80
thousand tons to 300 thousand tons.
Combined with the 60-thousand-ton
annual production capacity of Nippon
Shokubai Indonesia and the 60-thousandton share of the production of American
Acryl, which completed its plant in the
beginning of 2002, the Nippon ShokubaiGroup will have a total production
capacity of 420 thousand tons per annum
and be the 3rd largest producer of acrylicacid in the world.

President Hiroshi
Yanagida (right), of
Nippon Shokubai, andPresident Hiromasa
Yonekura, of Sumitomo
Chemical, shake hands
after signing agreement
to exchange businesses.
(At the media event held
on November 5, 2001)

Nippon Shokubai Europe
Completes Superabsorbent
Polymer Plant

Strengthening Our U.S. Acrylic
Acid and Superabsorbent Polymer
Business

During the fiscal year, Nippon
Shokubai Europe N.V., a 100% owned
subsidiary in Belgium, completed asuperabsorbent polymer plant being
constructed to further strengthen this corebusiness of Nippon Shokubai. A completion ceremony was held on June 14,
2001.
The plant, construction of whichbegan in Antwerp, in Flanders, Belgium,in September 1999, has an annual production capacity of 30 thousand tons.
Including this new production base,the Nippon Shokubai Group now has atotal global annual production capacity
for superabsorbent polymer of 230
thousand tons: 140 thousand tons inJapan, 60 thousand tons from the U.S.
subsidiary NA Industries, Inc., and 30
thousand tons in Europe.
The Group plans to further expand
business, with an eye on the Chinese,
Southeast Asian, and South American
markets, and aims to gain a 25% share of
the global market.

American Acryl is building an acrylicacid plant that will strengthen our coreacrylic acid and superabsorbent polymer
business in the United States. Construction is progressing favorably and American Acryl will begin supplying acrylicacid to our U.S. subsidiary NA Industries,
Inc., in August 2002.
We expect that this stable supply ofhigh quality, low-cost acrylic acid to NA
Industries will give us a substantial costadvantage in the superabsorbent polymer
market in the United States.

The near-to-completionacrylic acid plant (Annual
production capacity, 120
thousand tons).

The new
superabsorbent
polymer plant.

Cherry trees being
planted at the completion ceremony tosymbolize hopes for the
future growth of thecompany.

Nippon Shokubai Co., Ltd. 9

Management Indices(1) Consolidated Management Indices
PeriodFiscal Year End

86th
March
1998

87th
March
1999

88th
March
2000

89th
March
2001

90th
March
2002
(Millions of yen)

Net Sales
Ordinary Income
Net Income
Net Assets
Total Assets

171,805
11,222
5,226
111,673
218,953

160,190
8,231
4,450
114,658
231,081

162,461
5,088
2,659
118,820
216,896

160,585
4,303
1,242
117,340
230,468

159,7225,558
1,590
120,238
230,253(yen)

Net Assets per ShareNet Income per Share
Fully Diluted Net Income per Share
Capital Ratio (%)
Return on Equity (%)
Price Earning Ratio (times)

567.21
26.54—

582.3922.61—

609.72
13.54—

602.116.37—

617.05
8.16
—

51.0
4.8
28.0

49.6
3.9
29.7

54.8
2.3
33.2

50.9
1.1
70.6

52.2
1.3
62.0
(Millions of yen)

Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Cash and Cash Equivalents at Year-end

—
—
—
—

—
—
—
23,76718,285(5,709)(13,463)
22,827

9,757(12,961)(6,584)
14,806

17,268(8,178)(1,579)23,151

Number of Employees

—

—

3,050

3,189

3,077

Note 1: Net Sales do not include consumption taxes.
Note 2: Fully Diluted Net Income per Share is not recorded because bonds with warrants attached and convertible bonds are not issued.

10 Nippon Shokubai Co., Ltd.

(2) Non-consolidated Management Indices
PeriodFiscal Year End

86th
March
1998

87th
March
1999

88th
March
2000

89th
March
2001

90th
March
2002
(Millions of yen)

Net Sales
Ordinary Income
Net Income
Capital141,755
9,146
5,546
16,529128,998
6,870
4,115
16,529128,086
4,616
3,097
16,529129,712
5,205
2,539
16,529123,706
8,054
1,744
16,529Issued and Outstanding Shares(Thousands shares)

196,881

196,881

194,881

194,881

194,881(Millions of yen)

Net Assets
Total Assets

106,113
193,178

109,533
203,537

113,470
189,999

114,568
189,236

115,578
188,821(yen)

Net Assets per ShareDividend per Share(Interim Dividend per Share)
Net Income per Share
Fully Diluted Net Income per Share

538.977.00(3.50)
28.17—

556.347.00(3.50)
20.90—

582.257.00(3.50)
15.77—

587.897.00(3.50)
13.03—

593.147.00(3.50)
8.95—

Capital Ratio (%)
Return on Equity (%)
Price Earning Ratio (times)
Dividend Payout Ratio (%)
Number of Employees

54.9
5.3
26.4
24.8
2,217

53.8
3.8
32.1
33.5
2,258

59.7
2.8
28.5
44.3
2,127

60.5
2.2
34.5
53.7
2,004

61.2
1.5
56.5
78.2
1,937

Note 1: Net Sales do not include consumption taxes.
Note 2: Fully Diluted Net Income per Share is not recorded because bonds with warrants attached and convertible bonds are not issued.
Note 3: Issued and Outstanding Shares are 2,000 thousands less than in the 88th period, owing to the retirement of treasury stock out of profit.
Note 4: Number of Employees will be the representation of the number of people actually engaged in work from the 88th period onward.

Nippon Shokubai Co., Ltd. 11

Consolidated Financial Statements
Years ended March 31, 2002 and 2001

Independent Auditors’ Report ................................................. 13
Consolidated Balance Sheets .................................................. 14
Consolidated Statements of Income ........................................ 16
Consolidated Statements of Shareholders’ Equity ................. 17
Consolidated Statements of Cash Flows ................................. 18
Notes to Consolidated Financial Statements .......................... 20

12 Nippon Shokubai Co., Ltd.

Independent Auditors’ Report

The Board of Directors and the Shareholders
Nippon Shokubai Co., Ltd.

We have audited the consolidated balance sheets of Nippon Shokubai Co., Ltd. and consolidated
subsidiaries as of March 31, 2002 and 2001, and the related consolidated statements of income,shareholders’ equity and cash flows for the years then ended, all expressed in yen. Our audits weremade in accordance with auditing standards, procedures and practices generally accepted andapplied in Japan and, accordingly, included such tests of the accounting records and such otherauditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying consolidated financial statements, expressed in yen, present
fairly the consolidated financial position of Nippon Shokubai Co., Ltd. and consolidated subsidiaries at March 31, 2002 and 2001, and the consolidated results of their operations and their cash flows
for the years then ended in conformity with accounting principles and practices generally acceptedin Japan consistently applied during the period.
As described in Note 1, Nippon Shokubai Co., Ltd. and consolidated subsidiaries adopted new
accounting standards for foreign currency translation, financial instruments, and employees’ retirement benefits effective April 1, 2000.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2002 are presented solely for convenience. Our audit also included thetranslation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been
made on the basis described in Note 2.

Osaka, Japan
June 25, 2002

See Note 1(a) which explains the basis of presentation of the consolidated financial statements of
Nippon Shokubai Co., Ltd. under Japanese accounting principles and practices.

Nippon Shokubai Co., Ltd. 13

Consolidated Balance Sheets
Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

2002

March 31,
2001

(Millions of yen)

2002
(Thousands of
U.S. dollars)( Note 2)

AssetsCurrent assets:
Cash and cash equivalents .......................................................
Time deposits (Note 6) .............................................................
Short-term investments (Note 4) ..............................................
Notes and accounts receivable:
Unconsolidated subsidiaries and affiliates ...........................
Trade .....................................................................................
Allowance for doubtful receivables ......................................
Inventories (Note 5) .................................................................
Deferred income taxes (Note 8) ...............................................
Other current assets ..................................................................

¥ 23,151
118—¥ 14,806
331
11$ 173,676
885
—

4,871
41,973(164)
25,074
2,359
4,052

6,480
44,119(196)
29,8462,105
3,265

36,542
314,876(1,230)188,102
17,69730,398

Total current assets .....................................................................

101,434

100,767

760,946

Property, plant and equipment (Note 6):
Land ..........................................................................................
Buildings and structures ...........................................................
Machinery and equipment ........................................................
Construction in progress ..........................................................
Accumulated depreciation........................................................

28,63958,669215,870
136(211,387)

28,47358,995
209,404
6,682(207,780)

214,846
440,128
1,619,430
1,020(1,585,799)

Property, plant and equipment, net ............................................

91,927

95,774

689,625

Investments and other assets:
Investments in securities (Notes 4 and 6) ................................
Investments in and advances tounconsolidated subsidiaries and affiliates ............................
Deferred income taxes (Note 8) ...............................................
Other assets ..............................................................................

13,04013,79997,824

9,337
3,192
11,323

10,4153,692
6,021

70,04523,946
84,944

Total investments and other assets .............................................

36,89233,927

276,759

Total assets .................................................................................

¥ 230,253¥230,468$ 1,727,330

14 Nippon Shokubai Co., Ltd.

2002

March 31,
2001

2002
(Thousands of
U.S. dollars)( Note 2)(Millions of yen)

Liabilities and shareholders’ equity
Current liabilities:
Short-term bank loans (Note 6)................................................
Current portion of long-term debt (Note 6) .............................
Notes and accounts payable:
Unconsolidated subsidiaries and affiliates ...........................
Trade .....................................................................................
Construction ..........................................................................
Accrued income taxes (Note 8) ................................................
Other current liabilities ............................................................
Total current liabilities ...............................................................

¥ 12,354
14,101¥ 9,251
9,186$ 92,678
105,784

2,664
24,476
473
7,298
3,627
64,993

3,715
29,890
1,377
1,619
7,213
62,251

19,985
183,616
3,548
54,74927,210487,570

32,6238,181

38,004
9,022

244,734
61,373739
678
130
42,351

601
758
228
48,613

5,544
5,086
976
317,713

2,671

2,264

20,038

Shareholders’ equity:
Common stock:
Authorized –424,000,000 shares
Issued –194,881,287 shares in 2002
and 2001 .................................................................
Additional paid-in capital (Note 9) ..........................................
Retained earnings (Note 9) ......................................................
Unrealized holding gain on securities ......................................
Translation adjustments ...........................................................
Less treasury stock, at cost .......................................................
Total shareholders’ equity ..........................................................

16,52913,562
87,686
744
1,727
(10)
120,238

16,52913,562
88,168—(919)
0117,340

123,998
101,740
657,809
5,581
12,956(75)
902,009

Total liabilities and shareholders’ equity ...................................

¥ 230,253¥ 230,468$ 1,727,330

Long-term liabilities:
Long-term debt (Note 6) ..........................................................
Accrued retirement benefits for employees (Note 7) ..............
Accrued retirement benefits for directors andcorporate auditors .................................................................
Deferred income taxes (Note 8) ...............................................
Other .........................................................................................
Total long-term liabilities ...........................................................
Minority interests .......................................................................
Contingent liabilities (Note 12)

See accompanying notes to consolidated financial statements.

Nippon Shokubai Co., Ltd. 15

Consolidated Statements of Income
Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Year ended March 31,
2001

2002

(Millions of yen)

2002
(Thousands of
U.S. dollars)( Note 2)

Net sales (Note 15) .....................................................................
Cost of sales (Note 10) .............................................................

¥ 159,722
121,819¥ 160,585
126,568$ 1,198,215
913,871

Gross profit ...........................................................................

37,90334,017284,344

Selling, general and administrative expenses (Note 10) ............

28,94028,638217,104

Operating income (Note 15) .................................................

8,963

5,379

67,240

Other income (expenses):
Interest and dividend income ...................................................
Interest expense ........................................................................
Royalty income ........................................................................
Loss on devaluation of investments in securities ....................
Equity in losses of unconsolidated
subsidiaries and affiliates ......................................................
Gain on sales of property, plant and equipment ......................
Amortization of net retirement benefit
obligation at transition ..........................................................
Gain on marketable securities for
employees’ retirement benefit trust ......................................
Gain on divestitures (Note 3) ...................................................
Other, net ..................................................................................

403(1,622)621(3,033)

583
(906)
748
(588)

3,023
(12,168)
4,659(22,753)(1,492)—(1,308)305(11,193)——(3,813)——
2,543(1,396)

3,233
—
(455)

—
19,077(10,473)

Income before income taxes and minority interests .............

4,987

3,178

37,412

Income taxes (Note 8):
Current ......................................................................................
Deferred ....................................................................................

4,040
(703)

2,531
(746)

30,308(5,274)

3,337

1,785

25,034

Income before minority interests ..........................................
Minority interests in earnings of consolidated subsidiaries.......

1,650
(60)

1,393
(151)

12,378(450)

Net income (Note 13) ...........................................................

¥ 1,590

1,242$ 11,928

See accompanying notes to consolidated financial statements.

16 Nippon Shokubai Co., Ltd.

Consolidated Statements of Shareholders’ Equity
Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

2002

Year ended March 31,
2001

2002
(Thousands of
U.S. dollars)( Note 2)(Millions of yen)

Common stock:
Balance at beginning and end of year ......................................

¥ 16,529¥ 16,529$ 123,998

Additional paid-in capital:
Balance at beginning and end of year ......................................

¥ 13,562¥ 13,562$ 101,740¥ 88,168
1,590(1,364)(86)¥ 88,731
1,242(1,366)(87)$ 661,425
11,928(10,233)
(645)

—

9

—

—

1,821

—

(622)

—

(4,666)—(2,182)—

Balance at end of year ................................................................

¥ 87,686¥ 88,168$657,809

Net unrealized holding gain on securities:
Balance at beginning of year ....................................................
Net change during the year ......................................................

¥

¥

$

Retained earnings:
Balance at beginning of year ....................................................
Net income ...............................................................................
Cash dividends .........................................................................
Bonuses to directors and corporate auditors ............................
Increase in retained earnings resulting frommerger of an unconsolidated subsidiary ...............................
Increase in retained earnings resulting fromexclusion of companies accounted for by
the equity method ..................................................................
Decrease in retained earnings resulting fromdecrease in a consolidated subsidiary ...................................
Decrease in retained earnings resulting from
inclusion of consolidated subsidiaries ..................................

—
744

Balance at end of year ................................................................

¥ 744

Translation adjustments:
Balance at beginning of year ....................................................
Net change during the year ......................................................

¥ ( 919)2,646

Balance at end of year ................................................................

¥ 1,727

¥

—
—

—
5,581

—

$ 5,581—(919)$ (6,894)
19,850¥ (919)$ 12,956

See accompanying notes to consolidated financial statements.

Nippon Shokubai Co., Ltd. 17

Consolidated Statements of Cash Flows
Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Year ended March 31,
2002
2001
(Millions of yen)

Operating activities:
Income before income taxes and minority interests .....................
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities:
Depreciation and amortization ..................................................
Reversal of retirement allowances ............................................
Interest and dividend income ....................................................
Interest expense .........................................................................
Equity in losses of unconsolidated subsidiaries
and affiliates ........................................................................
Decrease in investments in securities in trust ...........................
Gain on divestitures ..................................................................
Loss on devaluation of investments in securities .....................
Loss on disposal of property, plant and equipment ..................
Other, net ...................................................................................
Changes in operating assets and liabilities:
Notes and accounts receivable ............................................
Inventories ...........................................................................
Notes and accounts payable ................................................
Other current liabilities ........................................................
Subtotal ............................................................................
Interest and dividends received .....................................................
Interest paid ...................................................................................
Income taxes paid ..........................................................................
Net cash provided by operating activities .....................................
Investing activities:
Purchases of shares of a subsidiary ...............................................
Proceeds from sales of short-term investments andinvestments in securities ...........................................................
Purchases of marketable securities and investments in securities
Purchases of property, plant and equipment .................................
Proceeds from sales of property, plant and equipment .................
Increase in loans receivable ..........................................................
Collection of loans receivable .......................................................
Other, net .....................................................................................
Net cash used in investing activities .............................................

18 Nippon Shokubai Co., Ltd.

2002
(Thousands of
U.S. dollars)(Note 2)

¥ 4,987¥ 3,178$ 37,412

10,063
(834)
(403)
1,622

10,088(1,371)(583)
906

75,491(6,257)(3,023)
12,1681,492—(2,543)
3,033
477
1,111

1,308
424
—
588
70
(805)

11,193—(19,077)
22,753
3,578
8,335

3,387
5,916
(7,052)
152
21,408449(1,886)(2,703)
17,268(2,975)(4,132)
5,876(664)
11,908632(898)(1,885)
9,757

25,40944,381(52,903)
1,141
160,601
3,368(14,149)(20,278)
129,542—(1,679)—3,617(2,476)(4,211)31(5,140)668(667)(8,178)41(4,270)(7,484)
339
(326)
466
(48)
(12,961)

27,134(18,575)(31,590)
233(38,560)
5,011(5,004)(61,351)

Year ended March 31,
2002
2001
(Millions of yen)

Financing activities:
Increase (decrease) in short-term bank loans, net .........................
Proceeds from long-term debt .......................................................
Repayment of long-term debt .......................................................
Cash dividends paid ......................................................................
Other, net .....................................................................................
Net cash used in financing activities .............................................
Effect of exchange rate changes on cash and cash equivalents ....
Increase (decrease) in cash and cash equivalents .........................
Cash and cash equivalents at beginning of year ...........................
Increase in cash and cash equivalents resulting frommerger of an unconsolidated subsidiary ...................................
(Decrease) increase in cash and cash equivalents resulting
from changes in number of consolidated subsidiaries ..............
Cash and cash equivalents at end of year ......................................

2002(Thousands of
U.S. dollars)(Note 2)

2,799
13,672(16,797)(1,364)111(1,579)(3,701)
4,030(5,641)(1,364)92(6,584)20,998102,566(126,009)(10,233)
833(11,845)882
8,393
14,806

195(9,593)
22,827

6,617
62,963111,073

—

9

—

(48)
¥ 23,151

1,563¥ 14,806(360)$ 173,676

See accompanying notes to consolidated financial statements.

Nippon Shokubai Co., Ltd. 19

Notes to Consolidated Financial Statements
Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries
March 31, 2002

1. Summary of Significant Accounting Policies(a)Basis of Presentation
Nippon Shokubai Co., Ltd. (the “Company”) and
its domestic consolidated subsidiaries maintain theiraccounts and records in accordance with accounting
principles and practices generally accepted andapplied in Japan. Its foreign subsidiaries maintaintheir accounts in conformity with the requirementsof their countries of domicile. The accompanying
consolidated financial statements have been compiled from the consolidated financial statements
prepared by the Company as required by the Securities and Exchange Law of Japan, which may differ
in certain material respects from accounting principles and practices generally accepted in countries
and jurisdictions other than Japan.
Certain reclassifications of previously reported
amounts have been made to conform the consolidated financial statements for the year ended March
31, 2001 to the 2002 presentation. Such reclassifications had no effect on consolidated net income orshareholders’ equity.

(b)Basis of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its
significant subsidiaries. All significant intercompany items have been eliminated in consolidation.
The foreign consolidated subsidiaries are consolidated on the basis of fiscal periods ending December
31, which differs from the balance sheet date of theCompany. As a result, adjustments have been madefor any significant intercompany transactions which
took place during the period between the year endsof these foreign consolidated subsidiaries and theyear end of the Company.
Investments in an unconsolidated subsidiary andsignificant affiliates are stated at cost plus equity intheir undistributed earnings or losses. Consolidated
net income includes the Company’s equity in thecurrent net income or losses of such companies after
the elimination of unrealized intercompany profits.
Investments in unconsolidated subsidiaries andaffiliates not accounted for by the equity method are
carried at cost.
The excess of cost over underlying net assets atthe date of acquisition is amortized over a period offive years on a straight-line basis, except thatimmaterial amounts are charged to income as
incurred.

20 Nippon Shokubai Co., Ltd.

(c)

Foreign Currency Translation
The financial statements of the foreign consolidated subsidiaries are translated into yen at the rates
of exchange in effect at the balance sheet date exceptthat the components of shareholders’ equity aretranslated at their historical exchange rates. Translation differences resulting from translating thefinancial statements of the foreign consolidated
subsidiaries are not included in the determination of
net income but are reported as translation adjustments in a separate component of shareholders’equity and minority interests in the consolidatedbalance sheets at March 31, 2002 and 2001.
Revenue and expense items arising from transactions denominated in foreign currencies are generally translated into yen at the rates in effect at therespective transaction dates.
Effective April 1, 2000, the Company and its
consolidated subsidiaries adopted a revised “Accounting Standard for Foreign Currency Translation” which was issued by the Business Accounting
Deliberation Council of Japan. Under this standard,
all monetary assets and liabilities denominated inforeign currencies are translated into yen at the rates
of exchange in effect at the balance sheet date,
except that receivables and payables hedged byqualified forward foreign exchange contracts aretranslated at their corresponding contract rates. Gainor loss on each translation is credited or charged toincome. The effect of the adoption of this standard
on the consolidated statement of income for the year
ended March 31, 2001 was immaterial.

(d)Cash and Cash Equivalents
Cash and cash equivalents include cash on handand in banks and other highly liquid investmentswith maturities of three months or less when purchased.

(e)Inventories
Inventories of the Company and its consolidated
subsidiaries are stated principally at the lower ofcost or market, cost being determined by the moving
average method.

(f)

Property, Plant and Equipment
Property, plant and equipment is stated on thebasis of cost. Depreciation is computed principallyby the declining-balance method over the estimateduseful lives of the respective assets, except that theforeign consolidated subsidiaries compute depreciation by the straight-line method over the estimateduseful lives of the respective assets.
(g)

(h)

LeasesNon-cancelable leases of the Company and its
domestic consolidated subsidiaries are accounted for
as operating leases (whether such leases are classified as operating or finance leases), except thatleases which stipulate the transfer of ownership ofthe leased assets to the lessee are accounted for as
finance leases. However, leases of the foreign
consolidated subsidiaries are generally classified andaccounted for as either finance or operating leases.
Short-Term Investments and Investments in
Securities
Effective April 1, 2000, the Company and its
domestic consolidated subsidiaries adopted “Accounting Standards for Financial Instruments” which
was issued by the Business Accounting Deliberation
Council of Japan. This standard requires that
securities be classified into three categories: trading
securities, held-to-maturity debt securities or othersecurities.
Under this standard, trading securities, consistingof debt and marketable equity securities, are carriedat fair value. Gain and loss, both realized andunrealized, are charged to income. Held-to-maturity
debt securities are carried at amortized cost. Marketable securities classified as other securities arecarried at fair value, with any changes in unrealized
holding gain or loss, net of the applicable income
taxes, reported as a separate component of shareholders’ equity. Non-marketable securities classified as other securities are carried at cost. Cost of
securities sold is determined by the moving averagemethod. Through March 31, 2002, marketablesecurities classified as other securities were carriedat cost determined by the moving average method.
The effect of the adoption of this standard formarketable securities classified as other securities isreported as unrealized holding gain on securities in a
separate component of shareholders’ equity. The
overall effect at March 31, 2001 was to increasedeferred tax liabilities by ¥546 million ($4,096
thousand) and minority interests by ¥8 million ($60
thousand) over the amounts which would have beenrecorded under the method applied in the previous
year.

As of April 1, 2000, the Company and its domestic consolidated subsidiaries assessed their intent tohold their short-term investments and investments insecurities and classified their securities at March 31,
2001 as “held-to-maturity debt securities” or “othersecurities” in accordance with the new standard
referred to above. As a result, short-term investments of ¥8 million, which had been included in
short-term investments at March 31, 2000, werereclassified to investments in securities effective
April 1, 2000.
(i)

Research and Development Costs and Computer Software
Research and development costs are charged toincome when incurred.
Expenditures relating to the development ofcomputer software intended for internal use arecharged to income as incurred, except if these are
deemed to contribute to the generation of future
income or cost savings. Such expenditures arecapitalized as assets and amortized by the straightline method over their useful lives, generally a periodof 5 years.

(j)

Income Taxes
Income taxes are calculated based on taxable
income and charged to income on an accrual basis.
Deferred income tax assets and liabilities are computed based on the temporary differences between
the financial reporting and tax bases of the assets
and liabilities which will result in taxable or deductible amounts in the future. The calculation ofdeferred income tax assets and liabilities is based on
the enacted tax laws.

(k)Retirement Benefits
The domestic consolidated subsidiaries have
either unfunded employees’ retirement benefit plans
and/or pension plans which are noncontributory andfunded and which cover substantially all theiremployees. These plans provide for lump-sum
payments and/or annuity payments payable upon
termination of employment.
Through March 31, 2000, accrued retirement
benefits for employees were stated at the amountwhich would be required to be paid if all employees
covered by the plans voluntarily terminated theiremployment with their respective companies at thebalance sheet date, less the balance of the funds in thepension plan.
Nippon Shokubai Co., Ltd. 21

Effective April 1, 2000, the Company and its
consolidated domestic subsidiaries adopted “Accounting Standard for Retirement Benefits” which
was issued by the Business Accounting Deliberation
Council of Japan. In accordance with this standard,
accrued retirement benefits are provided based on theamount of the projected benefit obligation reduced by
the pension plan assets at fair value at the end of theyear. The net retirement benefit obligation at transition of ¥3,813 million was fully charged to income
for the year ended March 31, 2001.
In connection with the adoption of this standard,
the Company contributed its own securities to an
employees’ retirement benefit trust. In establishing
this trust and contributing its marketable securities,
the Company recognized a gain of ¥3,233 million
arising from the valuation of the marketable securities. This has been presented in the consolidated
statement of income for the year ended March 31,
2001 as gain on marketable securities contributed to
employees’ retirement benefit trust.
Prior service cost is amortized principally by thestraight-line method over 5 years, which is within theestimated average remaining years of service of theeligible employees.
Actuarial gain or loss is amortized in the year
following the year in which the gain or loss isrecognized principally by the straight-line method
over 10 years, which is within the estimated averageremaining years of service of the eligible employees.
The effect of the adoption of the revised standard
for retirement benefits was to decrease income before
income taxes and minority interests for the year
ended March 31, 2001 by ¥785 million from theamount which would have been recorded under the
method applied in the previous year.
In addition, directors and corporate auditors of theCompany and certain consolidated subsidiaries arecustomarily entitled to lump-sum payments under
their respective unfunded retirement benefit plans.
The provision for retirement benefits for theseofficers has been made at an estimated amount.
(l)Appropriation of Retained Earnings
Under the Commercial Code of Japan, theappropriation of retained earnings with respect to agiven financial period is made by resolution of theshareholders at a general meeting held subsequent tothe close of the financial period. The accounts forthat period do not, therefore, reflect such appropriations (see Note 16).

22 Nippon Shokubai Co., Ltd.

2. U.S. Dollar Amounts
The translation of yen amounts into U.S. dollar
amounts is included solely for convenience, as amatter of arithmetic computation only, at the rate of¥133.3 = U.S.$1.00, the approximate rate of exchange in effect on March 31, 2002. The translation
should not be construed as a representation that yen
have been, could have been, or could in the future
be, converted into U.S. dollars at the above or any
other rate.

3. Divestitures and Acquisition
In November 2001, the Company sold its Methyl
Methacrylete Monomer Business (“MMA Monomer
Business”) to Sumitomo Chemical Co., Ltd.
(“Sumitomo Chemical”) under the terms of a basic
agreement to integrate each company’s acrylic acidand MMA Monomer Business into the Company and
Sumitomo Chemical, respectively. As a result of thistransaction, the Company recorded gain of ¥2,543
million ($19,077 thousand). The components of thesale of the MMA Monomer Business consisted of thesale of a certain portion of the Company’s interest in
Nihon Methacryl Monomer Co., Ltd., and the sale ofall shares of the Company’s interest in Singapore
MMA Monomer Pte Ltd. (“Singapore MMA”) as
well as the MMA monomer businesses.
On October 23, 2000, the Company acquired
24,545 thousand shares of PT NISSHOKUTRIPOLYTA ACRYLINDO (“NTA”) for ¥2,354
million in cash. NTA manufactures acrylic acid andacrylic esters and distributes these products to theCompany and an affiliate. Prior to the acquisition,
the Company owned approximately 50.0% of theshares of common stock of NTA. As a result of thisacquisition, the Company acquired an interest of
approximately 90.9% in NTA.
In 2001, the name “PT NISSHOKU TRIPOLYTAACRYLINDO” was changed to “PT Nippon
Shokubai Indonesia.”

4. Short-Term Investments and Investments in Securities
Marketable securities classified as other securities at March 31, 2002 and 2001 are summarized as follows:
2002(Millions of yen)

...
...
...
Cost
Securities whose fairmarket value exceeds their cost:... Equity securities ..............
¥ 3,135
Subtotal .......................................
3,135
Securities whose costexceeds their fair market value:... Equity securities ..............
8,004
Subtotal .......................................
8,004
Total ............................................
¥ 11,139

Unrealized
gain (loss)

Cost¥ 6,060
6,060¥ 2,925
2,925

6,384
6,384
¥ 12,444(1,620)(1,620)¥ 1,305(Millions of yen)

Cost

Fair market value available:
Equity securities ...... ¥12,990

Fair market Net unreavalue
lized gain
¥16,149¥ 3,159

A breakdown of other securities whose market value was
not known at March 31, 2002 and 2001 is as follows:

2002

2001

(Millions of yen)

Bonds held to maturity ....
Other securities ................

¥—
596

¥ 11
809

2002
(Thousands of
U.S. dollars)

$—
4,471

5. Inventories
Inventories at March 31, 2002 and 2001 were as
follows:
2002

2001

(Millions of yen)

Merchandise andfinished goods ..... ¥ 11,186
Raw materials ...........
6,496
Work in process ........
5,715
Supplies ....................
1,677¥ 25,074¥ 11,717
8,129
8,270
1,730
¥ 29,846Book value(Fair market
value)

Unrealized
gain (loss)$ 23,518
23,518$ 45,461
45,461$ 21,943
21,94360,04560,045$ 83,563

47,89247,892$ 93,353(12,153)(12,153)$ 9,790

6. Short-Term Bank Loans and Long-Term Debt

2001

...
...

(Thousands of U.S. dollars)Book value(Fair market
value)

2002(Thousands of
U.S. dollars)$ 83,916
48,73242,873
12,581$ 188,102

Short-term bank loans consisted mainly of
unsecured loans. The average interest rates on the
short-term bank loans outstanding at March 31, 2002
and 2001 were 0.60% and 2.37%, respectively.
Long-term debt at March 31, 2002 and 2001
consisted of the following:
2002(Millions of yen)

2001

2002

(Thousands of
U.S. dollars)

1.425% unsecured bonds
due November 2002 ................ ¥5,000 ¥5,000 $37,509
1.85% unsecured bonds due
November 2004 ....................... 5,000
5,000
37,509Unsecured loans from banks andinsurance companies, payablein yen, at rates from 1.02% to2.60%, due through 2006 ........ 10,838 12,576
81,306
Unsecured loans from banks,
payable in U.S. dollars,
at rates from 2.50% to 3.75%,
due through 2009 ..................... 17,930 10,212 134,509
Unsecured loans from banks, payablein Euro, at rates from 3.69%
to 4.05%, due through 2007 .... 4,336
3,915
32,528
Secured loans from banks andinsurance companies, payablein yen, at rates from 1.10% to5.60%, due through 2008 ........ 3,620
4,980
27,157
Secured loans from banks,
payable in yen, at 7.85%,
due through 2004 .....................
—
5,507
—
46,724 47,190 350,518
Less current portion .................... (14,101) (9,186) (105,784)¥32,623 ¥38,004 $244,734
Nippon Shokubai Co., Ltd. 23

The aggregate annual maturities of long-term debt
subsequent to March 31, 2002 are summarized below:
Year ending March 31,
2003 ..........................
2004 ..........................
2005 ..........................
2006 ..........................
2007 and thereafter ...

(Millions of yen)(Thousands of
U.S. dollars)¥ 14,101
7,859
10,8803,705
10,179$ 105,784
58,957
81,62027,79576,362¥ 46,724$ 350,518

Assets pledged as collateral for long-term debt,
including the current portion thereof, and accounts
and notes payable at March 31, 2002 and 2001 wereas follows:
2002

Time deposits ...................
Land ..................................
Buildings and structures .....
Machinery and equipment ..
Investments in securities ....

2001

2002

(Millions of yen)(Thousands of
U.S. dollars)

¥ 85
1,014
877
865
2,315
¥ 5,156

¥ 258
2,705
1,564
11,882
4,304¥ 20,713

$ 638
7,607
6,579
6,489
17,367$38,680

The components of retirement benefit expenses
for the years ended March 31, 2002 and 2001 areoutlined as follows:
2002

2001

2002

(Millions of yen)(Thousands of
U.S. dollars)Service cost ............................. ¥1,635Interest cost ............................. 1,192
Expected return on plan assets ..
(939)
Amortization:
Retirement benefit
obligation at transition ......
—
Past service cost ....................
(372)
Actuarial loss ........................
276
Retirement benefit expenses ... ¥1,792¥1,8871,225(984)$12,266
8,942(7,044)

3,813
(216)
—
¥5,725—(2,791)
2,070$13,443

The assumptions used in accounting for thedefined benefit plans for the years ended March 31,
2002 and 2001 were as follows:
2002
2001
Discount rate ......................... Principally 2.6%
3.5%
Expected rate of return onplan assets ........................... Principally 4.5% Principally 4.5%

8. Income Taxes
7. Retirement Benefits
The following table sets forth the funded andaccrued status of the plans, and the amounts recognized in the consolidated balance sheets at March
31, 2002 and 2001 for the Company’s and theconsolidated subsidiaries’ defined benefit plans:
2002

2001

2002

(Millions of yen)(Thousands of
U.S. dollars)

Retirement benefit
obligation at end of year ....... ¥(41,224) ¥(36,033) $(309,257)
Fair value of plan assets
at end of year ........................ 25,203
26,086
189,070
Unfunded retirement
benefit obligation .................. (16,021)(9,947) (120,187)
Unrecognized actuarial loss .... 9,885
2,744
74,156
Unrecognized past service cost (2,038)(1,816) (15,289)
Net retirement benefit
obligation at transition .......... (8,174)(9,019) (61,320)
Prepaid pension cost ...............
7353
Accrued retirement benefits .... ¥(8,181) ¥(9,022) $(61,373)

24 Nippon Shokubai Co., Ltd.

Income taxes applicable to the Company and its
domestic consolidated subsidiaries consist of
corporation, inhabitants’ and enterprise taxes. The
statutory tax rate in Japan for the years ended March
31, 2002 and 2001 was, in the aggregate, approximately 42.0%. The effective tax rates reflected in
the consolidated statements of income for the years
ended March 31, 2002 and 2001 differed from theabove statutory tax rate for the following reasons:Statutory tax rate .................................
Effect of:
Equity in losses of an unconsolidated subsidiary and affiliates ......
Permanently nondeductible
expenses ........................................
Permanently nontaxable
dividends received ........................
Foreign tax credits ............................
Valuation allowance .........................
Gain on sale of investment in a
subsidiary accounted for by theequity method ...............................
Other, net ..........................................
Effective tax rates ...............................

2002
42.0%

2001
42.0%

12.6

17.3

2.5

3.2

(4.3)
—
31.0

(3.4)
(4.9)
—

(19.9)
3.0
66.9%

—
2.0
56.2%

Deferred income taxes reflect the net tax effect of
the temporary differences between the carrying
amounts of the assets and liabilities reported forfinancial purposes and the corresponding tax bases
reported for income tax purposes. The significant
components of the deferred tax assets and liabilitiesof the Company and consolidated subsidiaries at
March 31, 2002 and 2001 are summarized as follows:
2002

2001

2002

(Thousands of(Millions of yen) U.S. dollars))

Deferred tax assets:
Accrued retirement benefits . ¥2,160
Intercompany profit oninventories and property,
plant and equipment ........
792
Reserve for repairs .............. 1,160
Depreciation andamortization .....................
502
Accrued employees’ bonuses ..
508
Impairment of investments
in securities and other ...... 1,491
Accrued enterprise tax ........
243
Other ....................................
919
Subtotal .................................. 7,775
Less: Valuation allowance .. (1,055)
Total deferred tax assets ........ 6,720
Deferred tax liabilities:
Net unrealized holding gain
on securities ..................... (546)
Depreciation andamortization ..................... (546)Deferred capital gainon property ....................... (362)Reserve for depreciation fortax purposes .................... (228)
Other .................................... (170)
Total deferred tax liabilities ... (1,852)
Net deferred tax assets .......... ¥4,868¥2,384$16,204

800
999

5,941
8,702

488
357

3,765
3,810

312
146
911
6,397
—
6,397

11,185
1,822
6,898
58,327(7,915)50,412—(4,096)(523)(4,096)(379)(2,715)(273) (1,710)(183) (1,276)(1,358) (13,893)¥5,039 $36,519

9. Additional Paid-in Capital and Retained
Earnings
On October 1, 2001, an amendment (the“Amendment”) to the Commercial Code of Japan(the “Code”) became effective. The Amendment
eliminates the stated par value of the Company’s
outstanding shares, which resulted in all outstanding
shares having no par value as of October 1, 2001.
As a result of the Amendment, all share issuances
after September 30, 2001 will be of shares with nopar value. Prior to the date on which the Amendment became effective, the Company’s shares had apar value of ¥50 per share.
The Code provides that an amount equal to atleast 10% of the amounts to be disbursed as distributions of earnings be appropriated to the legal reserve
until the total of the legal reserve and additional
paid-in capital equals 25% of the common stock
account. The Code also stipulates that, to the extent
that the sum of the additional paid in capital accountand the legal reserve exceeds 25% of the common
stock account, the amount of any such excess isavailable for appropriation by resolution of theshareholders.
Retained earnings include the legal reserve
provided in accordance with the provisions of theCode. The legal reserve of the Company included inretained earnings at March 31, 2002 and 2001
amounted to ¥3,919 million ($29,400 thousand) and¥3,839 million, respectively.

10. Research and Development Costs
Research and development costs included in costof sales and selling, general and administrative
expenses for the years ended March 31, 2002 and2001 totaled ¥9,173 million ($68,815 thousand) and¥9,136 million, respectively.

11. Leases
The following pro forma amounts represent theacquisition costs (including the interest portion),
accumulated depreciation and net book value of theleased assets as of March 31, 2002 and 2001, which
would have been reflected in the balance sheets if
finance lease accounting had been applied to thefinance leases currently accounted for as operatingleases:2002

2001(Millions of yen)

Machinery and equipment
and software:
Acquisition costs .............. ¥871
Accumulated depreciation ... (521)
Net book value ................. ¥350

¥796
(456)
¥340

2002
(Thousands of
U.S. dollars)$6,534(3,908)$2,626

Lease payments relating to finance leases accounted for as operating leases amounted to ¥188
million ($1,410 thousand) and ¥216 million for theyears ended March 31, 2002 and 2001, respectively.
Depreciation of the leased assets calculated by thestraight-line method over the respective lease terms
amounted to ¥188 million ($1,410 thousand) and¥216 million for the years ended March 31, 2002
and 2001, respectively.
Nippon Shokubai Co., Ltd. 25

14. Derivatives

Future minimum lease payments (including theinterest portion thereon) subsequent to March 31,
2002 for finance leases accounted for as operatingleases are summarized as follows:(Thousands ofYears ending March 31, (Millions of yen) U.S. dollars)
2003 ............................................ ¥164
$1,2302004 and thereafter ....................
186
1,395
¥350
$2,625

12. Contingent Liabilities
At March 31, 2002, the Company and a consolidated subsidiary were contingently liable as guarantors
of indebtedness of affiliates, the Company’s employees
and other in the aggregate amount of ¥2,770 million($20,780 thousand).
In addition, at March 31, 2002, the Company andits consolidated subsidiaries had contingent liabilities
arising from notes discounted by banks and notes
endorsed in the aggregate amount of ¥1,258 million($9,437 thousand).

13. Amounts Per Share
2002

2001

( yen)Net income ..................
Cash dividends ............
Net assets .....................

¥8.16
7.00
617.05

2002(U.S. dollars)

¥6.37
7.00
602.11

$0.06
0.05
4.63

The computation of net income per share is basedon the weighted average number of shares of common
stock outstanding during each year.
Cash dividends per share represent the cash
dividends declared as applicable to the respective
years together with the interim cash dividends paid.
Net assets per share are based on the number ofshares outstanding at the respective balance sheet dates.

Derivative financial instruments are utilized by theCompany and its consolidated subsidiaries principally
to reduce the risk of fluctuation in interest rates andforeign exchange rates. The Company has establisheda control environment which includes policies andprocedures for risk assessment and for the approval,reporting and monitoring of transactions involving
derivatives. The Company and its consolidated
subsidiaries do not hold or issue derivative financial
instruments for speculative trading purposes.
The Company and its consolidated subsidiaries are
exposed to certain market risks arising from forward
foreign exchange contracts and interest rate swaps.
The Company and its consolidated subsidiaries arealso exposed to the risk of credit loss in the event of
non-performance by the counterparties to theseforward foreign exchange contracts and interest-rate
swap contracts; however, the Company and its consolidated subsidiaries do not anticipate nonperformance by any of the counterparties, all of whom arefinancial institutions with high credit ratings.
At March 31, 2002, one consolidated subsidiary
had open interest-rate swap positions. The total fairvalue of these positions, however, was immaterial.

15. Segment Information
The Company and its consolidated subsidiaries areprimarily engaged in the manufacture and sale ofproducts in Japan and overseas in the following
business segment: business in the chemicals segments
conducted principally by the Company.
Business Segments
The business segment information for the Company and its consolidated subsidiaries for the years
ended March 31, 2002 and 2001 is outlined asfollows:

Chemicals

I. Sales and operating income
Sales to third parties .............................................
Intergroup sales and transfers ...............................
Total sales .............................................................
Operating expenses ...............................................
Operating income .................................................
II. Assets, depreciation and capital expenditures
Total assets ............................................................
Depreciation and amortization .............................
Capital expenditures .............................................
26 Nippon Shokubai Co., Ltd.

Year ended March 31, 2002
Other
Total
Eliminations or
corporate

Consolidated(Millions of yen)

¥157,894—
157,894
149,525¥8,369¥1,828
8,298
10,126
9,548¥578¥159,722
8,298
168,020
159,073¥8,947¥ —(8,298)(8,298)(8,314)¥16¥159,722—
159,722150,759¥8,963¥194,773
10,3405,189¥5,388179
59¥200,161
10,5195,248¥30,092
49—¥230,253
10,5685,248

Chemicals

Year ended March 31, 2001
Other
Total
Eliminations or
corporate

Consolidated(Millions of yen)

I. Sales and operating income
Sales to third parties ..................................................
Intergroup sales and transfers ....................................
Total sales ..................................................................
Operating expenses ....................................................
Operating income ......................................................
II. Assets, depreciation and capital expenditures
Total assets ................................................................
Depreciation and amortization ..................................
Capital expenditures ..................................................

¥158,2300158,230
153,492¥4,738¥2,355
8,594
10,94910,443¥506¥160,585
8,594
169,179
163,935¥5,244¥—(8,594)(8,594)(8,729)¥135¥160,585—
160,585
155,206¥5,379¥199,632
10,041
8,094¥7,848287
94¥207,480
10,328
8,188¥22,98853—¥230,468
10,381
8,188

As mentioned in Note 1(k), the Company and its consolidated domestic subsidiaries adopted a new accounting standard for retirement benefits.
The effect of this adoption decreased operating income from the chemicals and other segments by ¥61 millionand ¥78 million, respectively, from the amounts which would have been recorded under the standard followed in
the previous year.

Chemicals

I. Sales and operating income
Sales to third parties .................................................. $1,184,501
Intergroup sales and transfers ....................................
—
Total sales .................................................................. 1,184,501
Operating expenses .................................................... 1,121,718
Operating income ......................................................
$62,783
II. Assets, depreciation and capital expenditures
Total assets ................................................................ $1,461,163
Depreciation and amortization ..................................
77,569
Capital expenditures ..................................................
38,927

Year ended March 31, 2002
Other
Total
Eliminations or
corporate

Consolidated(Thousands of U.S. dollars)$13,71462,25175,96571,628$4,337$1,198,215
62,251
1,260,466
1,193,346$67,120$ —(62,251)(62,251)(62,371)$120$1,198,215—
1,198,215
1,130,975$67,240$40,420
1,343
443$1,501,583
78,91239,370$225,747
368—$1,727,330
79,28039,370

Nippon Shokubai Co., Ltd. 27

Geographical Areas
The geographical segment information for the Company and its consolidated subsidiaries for the years ended
March 31, 2002 and 2001 is outlined as follows:Year ended March 31, 2002
Japan
Overseas
Total
ElimiConsolinations or
dated
corporate
I. Sales and operating income
Sales to third parties ..................................................
Intergroup sales and transfers ....................................
Total sales ..................................................................
Operating expenses ....................................................
Operating income (loss) ............................................
II. Total assets ..............................................................

I. Sales and operating income
Sales to third parties ..................................................
Intergroup sales and transfers ....................................
Total sales ..................................................................
Operating expenses ....................................................
Operating income (loss) ............................................
II. Total assets ..............................................................

(Millions of yen)¥132,285
9,827
142,112
133,605¥8,507¥153,872¥27,437
3,699
31,136
31,237¥(101)¥49,340¥159,722
13,526173,248
164,842¥8,406¥203,212¥—(13,526)(13,526)(14,083)¥557¥27,041¥159,722—
159,722150,759¥8,963¥230,253

Japan

Year ended March 31, 2001
Overseas
Total
Eliminations or
corporate

Consolidated(Millions of yen)¥142,021
7,352
149,373
143,976¥5,397¥171,319¥18,564
147
18,711
18,766¥(55)¥41,980¥160,585
7,499
168,084
162,742¥5,342¥213,299¥—(7,499)(7,499)(7,536)¥37¥17,169¥160,585—
160,585
155,206¥5,379¥230,468

As mentioned in Note 1(k), the Company and its consolidated domestic subsidiaries adopted a new accounting standard for retirement benefits. The effect of this adoption decreased operating income in the Japan segment by ¥140 million from the amount which would have been recorded under the standard followed in theprevious year.

Japan

I. Sales and operating income
Sales to third parties .................................................. $992,386
Intergroup sales and transfers ....................................
73,721
Total sales .................................................................. 1,066,107
Operating expenses .................................................... 1,002,289
Operating income (loss) ............................................
$63,818
II. Total assets ................................................................ $1,154,329

28 Nippon Shokubai Co., Ltd.

Year ended March 31, 2002
Overseas
Total
Eliminations or
corporate

Consolidated(Thousands of U.S. dollars)$205,829
27,749233,578
234,335$(757)$370,142$1,198,215
101,470
1,299,685
1,236,624$63,061$1,524,471$—(101,470)(101,470)(105,649)$4,179$202,859$1,198,215—
1,198,215
1,130,975$67,240$1,727,330

Overseas Sales
Overseas sales, which include export sales of the Company and the domestic consolidated subsidiaries andsales (other than exports to Japan) of the foreign consolidated subsidiaries, for the years ended March 31, 2002
and 2001 are summarized as follows:

Asia

Year ended March 31, 2002
EuropeAmerica
Other

Total

(Millions of yen)Overseas sales .................................................................
Overseas sales as a percentage of consolidated
net sales ................................................................

¥20,774¥18,669¥17,214¥4,046¥60,703

13.0%

11.7%

10.8%

2.5%

38.0%

Asia

Year ended March 31, 2001
EuropeAmerica
Other

Total

(Millions of yen)Overseas sales .................................................................
Overseas sales as a percentage of consolidated
net sales ................................................................

¥19,428¥13,948¥13,770¥3,805¥50,951

12.1%

8.7%

8.6%

2.3%

31.7%

Asia

Year ended March 31, 2002
EuropeAmerica
Other

Total

(Thousands of U.S. dollars)

Overseas sales .................................................................

$155,844$140,053$129,137$30,352

16. Subsequent Event
The following appropriations of retained earnings of the Company, which have not been reflectedin the accompanying consolidated financial statements for the year ended March 31, 2002, wereapproved at a shareholders’ meeting held on June25, 2002:$455,386(Millions (Thousands ofof yen)U.S. dollars)

Cash dividends (¥3.50 = $ 0.03
per share) ...................................
Bonuses to directors and corporate
auditors ......................................

¥682$5,116

77
¥759

577
$5,693

Nippon Shokubai Co., Ltd. 29

Corporate Data

NIPPON SHOKUBAI CO., LTD.
Incorporated

Organization(as of April 2002)

August 21, 1941

Division

Common Stock
Authorized:
424,000,000 shares
Issued:194,881,287 sharesInternal Audit Office
ERP Development

Capital¥16,529,413,238

Information System Office

Number of Employees
1,937

Board of Directors

Stock Listings
First Section, Tokyo Stock ExchangeFirst Section, Osaka Securities ExchangeFirst Section, Nagoya Stock Exchange

President

Corporate Planning

Corporate
Management
Committee

General Administration

Finance

Transfer Agent
UFJ Trust Bank Limited
1-4-3 Marunouchi, Chiyoda-ku
Tokyo 100-0005, Japan

Production(as of March 31, 2002)

International Project

Board of Directors

Research & Development

President:
Hiroshi Yanagida

New Business Planning

Executive Managing Director:
Yoshinori Sano

Chemicals Sales

Senior Managing Director:
Keizo Maruyama
Managing Directors:
Tatsuo Konishi
Yutaka Morimoto
Directors:
Takahiro Toyohama
Michio Ueshima
Yoshinobu Haruna
Hideyuki Tahara
Yosuke Ogata
Corporate Auditors:
Tadashi Kimura
Haruki Yoshida

Fine & Specialty
Chemicals Sales

Tsumoru Yamada
Tsuneyuki Nakashima

Superabsorbent Polymers
Business

Yuji Noma
Shigehiro Nishimura
Hisao Takagishi
Fujio Kondo

Resins Business

Kawasaki Plant

Himeji Plant

Kazunosuke Nagai
Kaneyoshi Nishiyama(as of June 25, 2002)

30 Nippon Shokubai Co., Ltd.

Environment & Catalyst
Business

Auditor

Auditor’s OfficeConsolidated Subsidiaries
Name

Paid-in
EquityCapital Ownership Principal Business(millions)(%)

President

Nippoh Chemicals Co., Ltd.*

¥517

67.9

Manufacture and sale of iodine,
iodic compounds, and natural gas

Tadao Kondo

Nippon Polyester Co., Ltd.*

¥400

97.3

Manufacture and sale of synthetic
resins and related additives

Yoshizumi Ozawa

Daiko Kaiun Co., Ltd.*

¥100

64.8

Transport

Katsunobu Kaneko

Tokyo Fine Chemical Co., Ltd.*

¥80

66.2

Manufacture and sale of stabilizerof vinyl chloride resin andanti-freeze

Kazumi Fukuyasu

Chugoku Kako Co., Ltd.*

¥75

74.7

Manufacture and sale of synthetic
resins and heat insulator

Masaji Yamaoka

Shinritsu Co., Ltd.*

¥40

73.1

Sale of chemical products

Toyohiko Kunihara

Manufacture and sale of superabsorbent polymers
Technical liaison and businessdevelopment

Katsumi Uchida

100.0

Sale of chemical products

Kazuhiro Noda

NA Industries, Inc.*

Nippon Shokubai (Asia) Pte. Ltd.*

US$1.525** 100.0

S$0.3

Nippon Shokubai Europe N.V.*

EUR27

100.0

Manufacture of superabsorbent
polymers

Tadahiro Yoneda

PT. Nippon Shokubai Indonesia*

US$12093.7

Manufacture and sale of acrylicacid and acrylic esters

Takashi Onishi

Nihon Jyoryu Kogyo Co., Ltd.

¥90

46.6

Manufacture and sale ofanthraquinone, carbozole, andtheir derivatives

Takakiyo Goto

ICT Co., Ltd.

¥270

50.0

Sale of automobile exhaust catalyst

Yojiro Takahashi

Nippon Polymer Ind. Co., Ltd.

¥100

50.0

Manufacture and sale of acrylic
emulsions

Yoshio Yasuda

Nisshoku Schenectady Kagaku, Inc.

¥40

45.0

Manufacture and sale of insulating
varnish and enamel

Norio Matsui

50.0

Manufacture and sale of automobile exhaust catalyst

W. Staron

International Catalyst Technology, Inc. US$7.4(as of June 30, 2002)*

Included in consolidation
American Acryl NA LLC, and American Acryl LP., are consolidated into NA Industries, Inc. by the equity method.
** This item only thousand dollars

Nippon Shokubai Co., Ltd. 31

Directory

HEAD OFFICESLABORATORIESOsaka Office
Kogin Bldg.
4-1-1 Koraibashi, Chuo-ku
Osaka 541-0043, Japan
Telephone: 81-6-6223-9111
Facsimile: 81-6-6201-3716

Strategic Technology Research Center
5-8 Nishi Otabi-cho, Suita
Osaka 564-8512, JapanTokyo Office
Hibiya Dai Bldg.
1-2-2 Uchisaiwai-cho, Chiyoda-ku
Tokyo 100-0011, Japan
Telephone: 81-3-3506-7475
Facsimile: 81-3-3506-7598

SALES OFFICE
Nagoya Sales Office
Nagoya Mitsui Bldg., Annex
1-24-21 Meiekiminami, Nakamura-ku
Nagoya 450-0003, Japan

Performance Chemicals & Materials ResearchCenter
5-8 Nishi Otabi-cho, Suita
Osaka 564-8512, Japan
Polymers Research Center
5-8 Nishi Otabi-cho, Suita
Osaka 564-8512, Japan
Catalysts Research Center
992-1 Aza Nishioki Okihama, Aboshi-ku
Himeji, Hyogo 671-1241, Japan
Process Technology Center
992-1 Aza Nishioki Okihama, Aboshi-ku
Himeji, Hyogo 671-1241, Japan

PLANTS
Kawasaki Chidori Plant
14-1 Chidori-cho, Kawasaki-ku
Kawasaki, Kanagawa 210-0865, Japan

Environmental Engineering and Research Center
992-1 Aza Nishioki Okihama, Aboshi-ku
Himeji, Hyogo 671-1241, Japan

Kawasaki Ukishima Plant
10-12 Ukishima-cho, Kawasaki-ku
Kawasaki, Kanagawa 210-0862, Japan

Superabsorbent Polymers Research Center
992-1 Aza Nishioki Okihama, Aboshi-ku
Himeji, Hyogo 671-1241, Japan

Himeji Plant
992-1 Aza Nishioki Okihama, Aboshi-ku
Himeji, Hyogo 671-1241, JapanOVERSEAS COMPANIES

Ehime Plant
5-1 Soubiraki-cho, Niihama, Ehime
792-8521, Japan
Suita Plant
5-8 Nishi Otabi-cho, Suita
Osaka 564-0034, JapanNA Industries, Inc.
P.O. Box 5407
2651 Riverport Road
Chattanooga, TN 37406, U.S.A.
Telephone: 1-423-624-6496
Facsimile: 1-423-629-0531
NIPPON SHOKUBAI (ASIA) PTE. LTD.
138 Cecil Street, #05-04
Cecil Court, Singapore 069538
Telephone: 65-6-225-6313
Facsimile: 65-6-225-0969
NIPPON SHOKUBAI EUROPE N.V.
Haven 1053, Nieuwe Weg 1, B-2070
Zwijndrecht, Belgium
Telephone: 32-3-250-3701
Facsimile: 32-3-250-3712
PT. NIPPON SHOKUBAI INDONESIA
Wisma 46, KOTA BNI 31st Floor,
Suite 3102-3104 JI. Jend. Sudirman
Kav.1 Jakarta 10220, Indonesia
Telephone: 62-215-745111
Facsimile: 62-215-745222

32 Nippon Shokubai Co., Ltd.

Osaka Office
Kogin Bldg.
4-1-1 Koraibashi, Chuo-ku
Osaka 541-0043, Japan
Telephone: +81-6-6223-9111
Facsimile: +81-6-6201-3716
Tokyo Office
Hibiya Dai Bldg.
1-2-2 Uchisaiwai-cho, Chiyoda-ku
Tokyo 100-0011, Japan
Telephone: +81-3-3506-7475
Facsimile: +81-3-3506-7598
URL: http://www.shokubai.co.jp’02 Aug., 1500
Printed in Japan