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.

First Half of Fiscal Year March 2024

Summary ofFinancial Results

November 10, 2023
Nippon Chemical Industrial Co., Ltd.
© Nippon Chemical Industrial Co., Ltd.

1 Consolidated Results for First Half ofFY March 2024

2 Forecast of Consolidated Results for
FY March 2024

4092

Forecast of business results and business plans included herein are based on the information
available for us as of now and certain preconditions, and they provide no guarantee of our futurebusiness results. Actual business results may depend on a wide variety of factors.

1Consolidated Results for First Half ofFY March 2024

© Nippon Chemical Industrial Co., Ltd.

© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Key points concerning earnings for first half of FY March 2024
Restrictions were relaxed on social and economic activities and theeconomy shows a gradual recovery, but the uncertainty about the futureremains unchanged, including a rise in raw material and fuel prices andweakening of the yen as well as the effect of the international situation.

◆Net sales declined 5.0% Y-o-Y while operating profit declined 19.1%.
・Measures were implemented to increase earnings, including price revisions andcost reductions, and the sale of new products contributed to business results inphosphine derivatives.
・Demand of products for LCDs and semiconductors largely declined below its initialexpectation.
・Electronic ceramic materials for communication sharply declined while those for
automotive grade remained stable.

3© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Consolidated results for first half of FY March 2024
(Overview)

FY March 2023
2Q
(Millions of yen)

Net sales
Operating profit
Operating profit percentage

Ordinary profit
ProfitEBITDA *Earnings per share (Yen)FY March 2024
2Q

19,653
992
5.0%
1,123
735

18,672
803
4.3%
909
611

2,587
83.47

2,620
69.33

ChangeChange rate

(980)

(5.0%)(189)(19.1%)(0.7pt)(214)(19.1%)(123)(16.9%)

33

1.3%

--

* Brief version of EBITDA (operating profit + depreciation) is used4© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Consolidated results for first half of FY March 2024
(Performance by segment)

Inorganic
Chemicals
Specialty
Chemicals
Leasing
Business

OtherTotal

FY March 2023
2Q
(Millions of yen)

FY March 2024
2Q

Net sales

10,517

8,487(2,029)(19.3%)

Operatingprofit781

307(474)(60.7%)Net sales

8,278

9,365

1,087

13.1%

Operatingprofit(74)

233

307

-Net sales

457

457

00.0%

Operatingprofit268

266(2)(0.7%)Net sales

400361(39)(9.8%)

Operatingprofit

260(26)-Net sales

19,653

18,672(980)(5.0%)

Operatingprofit992803(189)(19.1%)

ChangeChange rate5© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Consolidated results for first half of FY March 2024
(Inorganic chemicals)(Millions of yen)

FY March 2023 FY March 2024
2Q
2Q

ChangeChangerate

Chromium Compounds

2,648

2,432(216)(8.2%)

Silicates and silica

1,224

1,210(14)(1.1%)

Inorganic Phosphorus
Compounds

4,720

3,335(1,385)(29.3%)

Other

1,923

1,509(414)(21.5%)

10,517

8,487(2,029)(19.3%)

Total◆Chromium Compounds: Sharp decline for plating

Net sales
10,5178,487

2023/3 2Q

2024/3 2Q

Operating profit
781◆Silicates and Silica: Solidness◆Inorganic Phosphorus Compounds:

307

Sharp decline for LCDs, semiconductors and general industry
2023/3 2Q

2024/3 2Q

6© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Consolidated results for first half of FY March 2024
(Specialty chemicals)(Millions of yen)

FY March 2023 FY March 2024
2Q
2Q

Electronic CeramicMaterials
Organic Functional
Materials
Battery and Electronic
Device Materials
OtherTotal

3,851

3,989

ChangeChangerate
Net sales

138

3.6%

9,365

8,278

1,608

2,410

802

49.9%

1,809

2,258

449

24.8%

1,009

708(301)(29.8%)

8,278

9,365

1,087

13.1%

2023/3 2Q

2024/3 2Q◆Electronic Ceramic Materials:

Sharp decline for communication and strongness for automotive grade
Operating profit◆Organic Functional Materials- Phosphine Derivatives:
Sharp decline for Quantum Dot and strong growth for overseas catalysts- Agrochemicals: Strong growth for major customers◆Battery and Electronic Device Materials

233▲ 742023/3 2Q

2024/3 2Q- Battery Materials: Revision of selling prices- Circuit Materials: Strong growth for paste- High-Purity Electronic Materials: Sharp decline for semiconductors
7© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Consolidated results for first half of FY March 2024
(Leasing)(Millions of yen)

FY March 2023 FY March 2024
2Q
2Q

Changerate

Change858

Leasing Business

457

457

00.0%

Book Store Operation

265

241(24)(9.1%)

Other

134

119(15)(11.2%)

858

819(39)(4.5%)

Total◆Leasing Business: Solidness for major tenants◆Book Store Operation: Weakness

Net sales

2023/3 2Q

819

2024/3 2Q

Operating profit294

2023/3 2Q

267

2024/3 2Q

8© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Balance Sheet(Millions of yen)March End,
2023

September End,
2023

ChangeMajor factors of change
Cash and deposits: 788,

Current assets

32,22834,204

1,976 Accounts receivable-trade: 1,175

Non-current assets

40,66940,947278 Investment securities: 431

72,89775,152

2,254

Current liabilities

17,492

21,4093,917 Short-term borrowings: 3,143

Non-current liabilities

13,163

10,919(2,244) Long-term borrowings: (2,360)

30,65632,328

1,672

Shareholders' equity

38,62738,948321 Retained earnings: 294

Accumulated othercomprehensive income

3,614

3,875

261 securities: 269

Total net assets

42,24142,823581

Total liabilities and net assets

72,89775,152

2,254

Total assets

Total liabilities◆Equity ratio: 57.0％

Property, plant and equipment: (233),

Notes and accounts payable-trade: 532,

Valuation difference on available-for-sale9© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Cash Flows(Millions of yen)

FY March 2023 FY March 2024
2Q
2Q

ChangeMajor factors of change

CF from operating activities

(31)

2,278

2,309 Decrease in inventories: 2,009

CF from investing activities(1,302)(2,004)(702)

CF from financing activities(1,783)471

2,254 Increase in short-tem borrowings: 2,000

Free CF*(1,772)

(34)

1,738

Cash at end of period

5,943

8,620

2,677

Dividends paid

438

307

(131)

Depreciation

1,595

1,817

222

* Calculated by deducting CF from investing activities and dividends from CF from operating activities10２

Forecast of Consolidated Results for
FY March 2024
(There are no revisions to the latest forecast announced)© Nippon Chemical Industrial Co., Ltd.

© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Forecast of consolidated results for FY March 2024
(Overview)
FY March 2023
Results(Millions of yen)

Net sales
Operating profit
Operating profit percentage

Ordinary profit
ProfitEBITDA*ROE
Earnings per share(Yen)Annual dividends per share(Yen)
Capital expenditures
Depreciation
R & D expenses

FY March 2024Forecast

ChangeChange rate

38,075
1,292
3.4%
1,412
855
4,623
2.0%

40,000
1,600
4.0%
1,600
1,000
5,400
2.4%

1,925

5.1%

308

23.8%

97.13

0.6pt
188

13.3%

145

17.0%

777

16.8%

0.4pt

-113.47--

Interim: 35
Year-end: 35
Annual: 70

Interim: 35
Year-end: 35
Annual: 70

--

4,288
3,331
1,518

5,300
3,800
1,500

1,012

23.6%

469

14.1%

(18)

(1.2%)* Brief version of EBITDA (operating profit + depreciation) is used12© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Forecast of Consolidated results for FY March 2024
(Performance by segment)

Inorganic
Chemicals
Specialty
Chemicals
Leasing
BusinessOtherTotal

FY March 2023
Results(Millions of yen)

FY March 2024
Forecast

Net sales

20,327

19,950(377)(1.9%)

Operatingprofit

1,130

870

(260)

(23.0%)Net sales

15,983

18,330

2,347

14.7%

Operatingprofit(437)

155592-

Net sales

915

915

00.0%

Operatingprofit541

535(6)(1.1%)Net sales

849

805(44)(5.2%)

Operatingprofit8140(41)(50.6%)Net sales

38,07540,000

1,925

5.1%

Operatingprofit1,2921,600308

23.8%

ChangeChange rate

13© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Forecast of Consolidated results for FY March 2024
(Inorganic chemicals)
2023/3(Millions of yen) Actual results

2024/3
Forecast

ChangeChange rate

Chromium Compounds

5,326

5,500

174

3.3%

Silicates and Silica

2,467

2,900

433

17.6%

Inorganic Phosphorus
Compounds

8,765

7,750

(1,015)(11.6%)

Other

3,768

3,800

32

0.8%

20,327

19,950(377)(1.9%)

Total◆Chromium Compounds:

Execution of price revisions despite weakness in sales volume

Net sales
20,32719,950

2023/32024/3Operating profit
1,130
870

◆Silicates and Silica: Execution of price revisions and sales expansion◆Inorganic PhosphorusCompounds:

Weakness for LCDs and semiconductors and price decrease arisingfrom a decrease in the raw material market

2023/32024/314

© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Forecast of Consolidated results for FY March 2024
(Specialty chemicals)
2023/3(Millions of yen) Actual results

Electronic CeramicMaterials
Organic Functional
Materials
Battery and Electronic
Device Materials
Other2024/3
ForecastChange

Changerate

7,617

8,400783

10.3%

2,655

3,200

545

20.5%

4,022

5,050

1,028

25.6%

1,687

1,680(7)(0.4%)Net sales
18,33015,9832023/3

Total

15,983

18,3302,347

2024/3

14.7%◆Electronic Ceramic Materials:

Solidness for automotive grade and recovery in demand toward the second half
despite weakness for communication◆Organic Functional Materials- Phosphine Derivatives: Flat for Quantum Dot and strong growth foroverseas catalysts- Agrochemicals: Execution of price revisions

Operating profit▲ 437

1552023/3

2024/3◆Battery and Electronic Device Materials- Battery Materials: Execution of price revisions according to an increase in market prices- Circuit materials: Solidness in sales volume- High-Purity Electronic Materials: Recovery of demand for organic electronic materials

15© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Forecast of Consolidated results for FY March 2024
(Leasing)
2023/3(Millions of yen) Actual results

Leasing Business2024/3
Forecast915

915

ChangeChange rate
Net sales

00.0%Book Store Operation

549

510(39)(7.1%)

Other299

295(4)(1.3%)

1,764

1,720(44)(2.5%)

Total◆Leasing Business: Solidness for major tenants

1,764

1,720

2023/32024/3◆Book Store Operation: Weakness
Operating profit
622

2023/3575

2024/316