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

Summary of Consolidated Financial Results
for the Year Ended March 31, 2021
(Based on Japanese GAAP)May 13, 2021
Company name:
Nippon Chemical Industrial CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

4092
President

URL

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

Inquiries:
General Manager, Accounting Department
Scheduled date of ordinary general meeting of shareholders:Manabu Sato
June 24, 2021

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

June 24, 2021
June 25, 2021

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

Yes
Yes

TEL

03-3636-8038(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%(4.4)
2,783
12.2
2,315(9.0)
2,182
17.5
0.2
2,481
(19.6)
2,545(16.7)
1,857(13.8)

Net salesYear ended March 31, 2021
Year ended March 31, 2020

Millions of yen
34,642
36,243

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
5.8
3.4
8.0
–
5.2
3.9
6.8

Diluted earnings pershare

Earnings per share
Yen
248.11211.21

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
70,196
65,950Millions of yen
39,07535,768Cash flows fromoperating activities
Millions of yen
5,216
4,776

Cash flows frominvesting activities
Millions of yen(3,539)(5,503)

Net assets per share%
55.7
54.2

Yen
4,442.58
4,066.52(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,024)
9,962
842
9,315

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

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

35.00
35.00

––

35.00
35.00

70.00
70.00

615
615

33.1
28.2

1.71.6–35.00–35.00

70.00

132.4

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
36,0003.92,600(6.6)
2,600
12.3
1,900 (12.9)
216.01
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

8,922,775 shares As of March 31, 2020

8,922,775 shares

127,069 shares As of March 31, 2020

126,963 shares

Number of treasury shares at the end of the period
As of March 31, 2021
Average number of shares during the period
Year ended March 31, 2021

8,795,760 shares Year ended March 31, 2020

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

28,795,936 shares

Consolidated financial statements
Consolidated balance sheets
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3(Millions of yen)
As of March 31, 2021

9,392
10,820
4,474
2,196
2,170
665
(24)
29,696

10,004
11,297
4,374
2,393
2,021
531
(23)
30,59834,487(22,320)
12,16613,135(6,058)
7,076
7,730
1,381
6,553
(5,630)923
29,27934,885(23,154)
11,731
14,668(7,466)
7,201
7,730
3,271
6,634
(5,695)938
30,874

47
597
644

33
556
589

5,735
22
153–
441
(22)
6,329
36,25465,950

7,044
8
147
351
604(22)
8,133
39,59870,196

As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Accounts payable - facilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Liabilities from application of equity method
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(Millions of yen)
As of March 31, 2021

3,194
7,825
296
363
416
1,904
1,928
15,9303,802
8,300
658256435
2,092
1,979
17,525

8,161
1,706
1,999–
2,384
14,25130,181

7,283
2,173
1,387
424
2,326
13,59531,1205,757
2,269
26,126(354)
33,7995,757
2,269
27,693(354)
35,3652,467
020(519)1,968
35,76865,950

3,445
0(7)
270
3,709
39,07570,196

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

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

5

Fiscal year ended
March 31, 2020
36,24328,457
7,785
5,304
2,481

(Millions of yen)
Fiscal year ended
March 31, 2021
34,642
26,799
7,843
5,060
2,783

134
44
114
293

130–
158
288

76–
51
38
62
229
2,545

81
517
79
39
36
755
2,315

194
194

824
824

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

149
42–
191
2,948
866
(100)
765
2,182
2,182

Consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

6

Fiscal year ended
March 31, 2020
1,857

(Millions of yen)
Fiscal year ended
March 31, 2021
2,182(325)(0)
9(698)(1,014)843

9780(27)
790
1,740
3,923

843

3,923

Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

5,757

Retained earnings

2,269

Total shareholders'equityTreasury shares

24,840(353)

32,514

Changes during period
Dividends of surplus

(571)

(571)

Profit attributable to ownersof parent

1,857

1,857

Purchase of treasury shares

(0)

(0)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

1,286

(0)

1,285

5,757

2,269

26,126(354)

33,799

Accumulated other comprehensive income
ValuationDeferred gains
difference onor losses onavailable-for-shedges
ale securities
Balance at beginning of period

2,7920Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

11179

Total accumulated
Total net assets
othercomprehensive
income2,983

35,497

Changes during period
Dividends of surplus(571)

Profit attributable to ownersof parent

1,857

Purchase of treasury shares(0)

Net changes in items otherthan shareholders' equity

(325)

(0)

9(698)(1,014)

Total changes during period(325)

Balance at end of period2,467(0)9(698)(1,014)270

020(519)

1,968

35,7687(1,014)

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

5,757

Retained earnings

2,269

Total shareholders'equity

Treasury shares

26,126(354)

33,799Changes during period
Dividends of surplus

(615)

(615)

Profit attributable to ownersof parent

2,182

2,182

Purchase of treasury shares

(0)

(0)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––

1,566

(0)

1,566

5,757

2,269

27,693(354)

35,365

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-for-s
hedgesale securities
Balance at beginning of period

2,467

0

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans20(519)Total accumulated
Total net assets
othercomprehensive
income1,968

35,768Changes during period
Dividends of surplus(615)

Profit attributable to ownersof parent

2,182

Purchase of treasury shares(0)

Net changes in items otherthan shareholders' equity

9780(27)

790

1,740

1,740

Total changes during period

9780(27)

790

1,740

3,307

Balance at end of period

3,4450(7)

270

3,709

39,0758Consolidated statements of cash flows
Fiscal year ended
March 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using equity method
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Loss on retirement of non-current assets
Loss on disaster
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

9(Millions of yen)
Fiscal year ended
March 31, 2021

2,511
2,657
14
0(16)
(21)
(134)
(44)
76
3(194)
216
–
101
1,523
(1,763)
343
116
5,392
134
(74)
(675)
–
4,776

2,948
2,875
14(0)
18
64(130)
517
81(2)
(824)
149
42(491)46636
(107)
(183)
5,655
130(81)
(512)
25
5,216

(5,397)14(411)(3)348(0)
23(76)(5,503)(4,193)
8(81)
(102)
913
(1)
15(97)(3,539)Fiscal year ended
March 31, 2020
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease obligations
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period10(Millions of yen)
Fiscal year ended
March 31, 2021

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

(1,242)
2,360(1,520)
(6)
(0)
(614)
(1,024)
(5)
647
9,315

165–

9,315

9,962