For the Six Months Ended
September 30, 2020

Summary ofFinancial Results

November 10, 2020
Nippon Chemical Industrial Co., Ltd.
© Nippon Chemical Industrial Co., Ltd.

4092

1 Summary of Consolidated Financial
Results for the Six Months Ended
September 30, 2020
2 Forecast of Consolidated Financial
Results for the Year Ended March 31,2021

1© Nippon Chemical Industrial Co., Ltd.

Summary of Consolidated
Financial Results for the Six
Months Ended September 30,2020

Consolidated financial results
for the six months ended September 30, 2020
(Millions of yen)Six months endedSix months ended

September 30, 2019

September 30, 2020

ChangeChange rate

Net sales

18,302

16,112(2,190)(12.0%)

Operating profit

1,642914(728)(44.3%)

Ordinary profit

1,694925(768)(45.3%)

Profit1,121650(470)(42.0%)©Nippon Chemical Industrial Co., Ltd.
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3

Chemicals

Net sales
Operatingprofit

Six months

ended September

ended September

30, 2019

30, 2020

7,828

6,576

401(50)Change(1,251)(451)

Specialty

Net sales

8,098

7,591(506)

Chemicals

Operating

979671(308)

455

456

0265

269

4

1,494

1,057(437)

(27)

(27)

0Net sales

4254305Operating

1118

718,302

16,112(2,190)

1,642

914(728)

profitLeasing

Net sales

Business

OperatingprofitAir-Net salesconditioning
Business

OthersOperatingprofitprofitTotal

Net sales
OperatingprofitSpecialty Chemicals

Inorganic

Six months

Others(Millions of yen)

Inorganic Chemicals

Earnings by business for the six months ended
September 30, 2020
Chromium
Decline for plating and refractories
CompoundsSilicates and Silica

Significant decline forenvironment-related products

InorganicPhosphorus
Compounds

Weakness for automobiles andstrong performance in LCDs andsemiconductors

OthersWeakness for lithium products andcuprous oxide

Phosphine
Derivatives

Solidness

Agrochemicals

Solidness

Battery Materials

Weakness for major customers
and decline in resource prices

Electronic CeramicMaterials

Weakness for automobiles andstrong performance fortelecommunications and ICT

Circuit Materials

Solidness for major customers

OthersWeakness for barium products andstrong performance forpharmaceutical intermediates

Leasing Business

Solidness

Air-conditioningBusiness

Weak demand for new designs,
construction and maintenanceBook StoreOperationSolidness

Others©Nippon Chemical Industrial Co., Ltd.
No duplication or reproduction of this document, either in whole or in part, is permitted without prior
本資料の全部または一部についての無断複製・無断転載を禁じます。
consent of us

Strong performance for4
environmental measurement

Consolidated balance sheet - Assets(Millions of yen)

[Assets]

As of March 31, 2020 As of September 30, 2020

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

29,696
9,392
10,8208,840
644
36,25429,279
644
5,735
596
65,950©Nippon Chemical Industrial Co., Ltd.
本資料の全部または一部についての無断複製・無断転載を禁じます。
No duplication or reproduction of this document, either in whole or in part, is permitted without prior consent of us28,408
9,484
9,542
8,764
618
37,63929,837
597
6,454
751
66,047

Change(1,288)91(1,277)
(76)
(26)
1,385
557
(46)
719
155
97

5

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

As of March 31, 2020

As of September 30, 2020

(Millions of yen)
Change15,930
3,194
7,825
4,911
14,251
8,161
1,999
1,706
2,384
30,181

16,459
2,916
8,970
4,573
12,998
6,616
1,995
2,006
2,379
29,457

529
(277)
1,144
(338)
(1,253)(1,544)
(4)
299
(5)
(724)

33,7991,968
35,76865,95034,142
2,448
36,59066,047343
480822
97[Net assets]
Shareholders' equity
Accumulated other comprehensive income
Total net assets
Total liabilities and net assets©Nippon Chemical Industrial Co., Ltd.
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Consolidated statements of income(Millions of yen)

Net sales
Cost of sales
Selling, general and administrative expenses
Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Extraordinary income
Extraordinary lossesProfit before income taxes
Income taxes - current
Income taxes - deferred
ProfitSix months ended
September 30, 2019

Six months ended
September 30, 2020

18,302
14,152
2,507
1,642
137
85
1,694
21
129
1,586
445
19
1,121

16,112
12,707
2,490
914
147
136
925
41
884
148
85
650

©Nippon Chemical Industrial Co., Ltd.
本資料の全部または一部についての無断複製・無断転載を禁じます。
No duplication or reproduction of this document, either in whole or in part, is permitted without prior consent of us

ChangeChange rate

(2,190)(1,445)(17)(728)
1051(768)(12.0%)(10.2%)(0.7%)(44.3%)

(88)
(702)
(297)
66(470)(45.3%)(44.3%)(42.0%)

7

Consolidated statements of cash flows(Millions of yen)

I Cash flows from operating activities
Profit before income taxes
Depreciation
Changes in inventories
Other
II Cash flows from investing activities
Capital expenditure
Other
III Cash flows from financing activities
Changes in loans payable
Cash dividends paid
Other
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

As of September As of September
30, 2020
30, 2019
2,824
1,179
884
1,586
1,405
1,255
74
761
461
(2,423)(2,047)(3,219)(1,996)(3,238)(51)
19(711)(1,157)
(399)
(888)
(307)
(263)
(5)
(6)
(4)
(0)
61
(3,196)
9,315
9,041
9,377
5,844

©Nippon Chemical Industrial Co., Ltd.
本資料の全部または一部についての無断複製・無断転載を禁じます。
No duplication or reproduction of this document, either in whole or in part, is permitted without prior consent of us82

Forecast of ConsolidatedFinancial Results for the Year
Ended March 31, 2021
(There is no revision to the forecast for business performance.)© Nippon Chemical Industrial Co., Ltd.

Forecast of consolidated financial results forthe year ended March 31, 2021
(Millions of yen)

Year ended
March 31, 2020

Year ended
March 31, 2021

ActualForecast

Net sales

36,24333,000(3,243)(8.9%)

Operating profit

2,481

1,200(1,281)(51.6%)

Ordinary profit

2,545

1,200(1,345)(52.9%)

Profit1,857

800(1,057)(56.9%)©Nippon Chemical Industrial Co., Ltd.
本資料の全部または一部についての無断複製・無断転載を禁じます。
No duplication or reproduction of this document, either in whole or in part, is permitted without prior consent of us

ChangeChange rate

10Forecast of net sales by business for theyear ended March 31, 2021
(Millions of yen)

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

ChangeChange rate

ActualForecast

Inorganic
Chemicals

15,50913,360(2,149)(13.9%)

Specialty
Chemicals

15,47014,620(850)(5.5%)

Leasing
Business912

913

10.1%

Air-conditioning
Business

3,418

3,273(145)(4.2%)

Other931

834(97)(10.4%)

Total

36,24333,000(3,243)(8.9%)©Nippon Chemical Industrial Co., Ltd.
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11Capital expenditures and depreciation for the year
ended March 31, 2021
100

Capital expenditures
Depreciation(Hundred millions of yen）

29

54

55

30

2280

20

192760

c

4640

26

22c

2040

Forecast for 2021/320Continue concentrated investment inc
growth products, but partially revise10
the contents of investment in light of0 the situation
Increasing depreciation0

Recent major
investments

2017/3

2018/3

2019/32020/3

Forecast

2021/3

Product

Plant

Background and description of investment

Fiscalyear

Organic electronicmaterials

Fukushima
No. 2

Constructed a new plant to meet the rising needs for leading-edgeorganic materials.
Aim to double sales of organic electronic materials business.

2018

Fukushima
No. 1

Added a new production line to expand production capacity by10%.

2018

Tokuyama

To cater to soaring MLCC demand stemming from a shift to EV cars
as well as the installation of 5G base stations, constructing a newplant in Tokuyama.

2019(- 2025)

Electronicceramic materials©Nippon Chemical Industrial Co., Ltd.
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