Annual Report 2015
“Providing affluence and comfort to people
and society, with our unique technology”

2

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Nippon Shokubai Group Mission:
Providing afﬂuence and comfort to people and society, with our unique technology.

Management Commitment:
We conduct all of our corporate activities based upon a deep respect for humanity.
We aim at coexisting with society, and working in harmony with the environment.
We pursue technologies that will create the future.
We act on the global stage.

Corporate Credo
Safety takes priority over production.

Code of Conduct:
In the belief that it is our social responsibility to conduct business based upon the principles of complianceand self-responsibility for the sake of proper social development, we have set forth the following basic
corporate behavior guidelines in the "Nippon Shokubai Code of Conduct."
1. Guided by Nippon Shokubai Group Mission of", we will conduct all of our"actions as a good corporate citizen.
2. We will comply with relevant laws both inside andoutside of Japan, and act in accordance with in-house
regulations.
3. We will create and nurture a sound, vibrant workplace,where each individual can hone their professional
competence and ﬁnd fulﬁllment in their career.
4. We will develop and market products and services
that are both safe and useful, based upon an accurate
understanding of social demands.
5. We will commit ourselves to eliminating labor hazards
and accidents, and constantly strive to protect the
global environment.

6. We will conduct business based on fair and open
competition.
7. We will take a ﬁrm stance when dealing with unlawfulor antisocial groups.
8. We will ensure frequent communications with ourshareholders and members of society in general, andguarantee the appropriate disclosure of corporate
information.
9. With respect for the culture and customs of every
nation/region we serve, we will contribute to theirdevelopment and wellbeing through community-based
business undertakings.
10. We will ensure the solid and sustainable developmentof the company through business undertakings based
soundly upon the above action guidelines.

Contents

01 Consolidated Financial Highlights
02 Messages from President
03 Special Feature
06 Description of Business
08 Governance System

Based on Responsible Care
11 CSR
Concept
12 Ten-Years Summary
Discussion and
14 Management
Analysis of Operation
18 Financial Statements
54 Corporate Data

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Management
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

Consolidated Financial Highlights
Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Net sales

Operating income

374,873¥¥

million26,133
million24.1% Up

90.0% Up
Total assets

419,634¥
Net assets¥

270,128

millionROA

5.3% Upmillion

7.3%

2.9points Up

11.5% Up

Sales increased across all
segments

The recovery and resumption of operations at
all Himeji plants that had ceased production asa result of the accident, and reinforced acrylicacid and superabsorbent polymers production
facilities in Indonesia leading to the start ofcommercial production from October 2013
resulted in higher sales volume year on year

Higher production and sales
volume and improved spreads>
increased production andtransportation expenses due to
new facilities and the resumptionof operations at Himeji Plants.

The higher technology licensing
income and an increase in equity
earnings>
decreased foreign exchange
incomeIncrease in “Income taxes”

01

02

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Messages from President

Masanori Ikeda
President

Nippon Shokubai started its new long-term business plan for the ﬁscal years 2014 to 2020, entitled “Reborn Nippon Shokubai 2020,”

along with the medium-term business plan, which will specify an action plan for the initial three years of the period (ﬁscal 2014 to2016). In ﬁscal 2014, based on basic business and investment strategies, we demonstrated our strong management style and steadyefforts to address our main issue. As a result, we smoothly started the medium-term business plan in its ﬁrst year.
We reconﬁrm our intention to follow our corporate credo: “Safety takes priority over production,” endeavor to keep safe and stable
operation, and strive to gain more conﬁdence of stake holders as a chemical company. By delivering our product with conﬁdence andpride, and by developing new products that meet market needs, we will realize our group mission “
Providing afﬂuence and comfort to people and society, with our unique technology.”
We will strive as a team to achieve the “Reborn Nippon Shokubai” − a company* that everybody can be proud of.
* A company that promotes work safety and peace of mind
A company that rewards people who make their best efforts and achieve results
A company that people can be proud to work for−Consolidated
Financial
Highlights

Messages fromPresident

Description ofSpecial Feature BusinessGovernance
SystemCSR Based on
Responsible
Care Concept

Management
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

Special Feature

Long-term Business Plan
"Reborn Nippon Shokubai 2020"
Nippon Shokubai started its long-term business plan for the ﬁscal years 2014 to 2020, entitled “Reborn Nippon
Shokubai 2020.”
We reconﬁrm our intention to follow our corporate credo: “Safety takes priority over production,” and we aremaking every effort to implement the preventive/corrective measures learned from the accident that occurredat the Himeji Plant in 2012. We believe that only through these actions will we be able to regain the conﬁdenceof stake holders as a chemical company.

Mission/Management Commitment

Nippon Shokubai Group Mission
Providing afﬂuence and comfort to people and society, with ourunique technology

Management Commitment
We conduct all of our corporate activities based upon a deep
respect for humanity.
We aim at coexisting with society, and working in harmony withthe environment.
We pursue technologies that will create the future.
We act on the global stage.

Corporate Credo

Safety takes priority overproduction.

“Reborn Nippon Shokubai 2020” is designed to ensure
safe, reliable production activities. The plan also highlights
proﬁtability over sales, setting goals for strengthening
existing and core businesses,establishing new businesses assoon as possible, and launching new products to the market
quickly.
Management Indexes and Numerical Targets （Unit:Billion yen）
Sales Ordinary Income
FY2020 target figures 500.0
50.0

9.5%

FY2016 target figures 393.0

8.5%

Sales
（Billion yen）

Sales
Ordinary Income
ROA（%）

500.0
400.0

374.9

300.0
29.9

200.0
100.0
0

34.0

7.3

FY2014
Results

360.0
32.0

393.0

ROA

9.5

8.5
34.0

500.0
50.0

Ordinary Income（Billion yen）

50.0
40.0
30.0
20.0

7.5

10.0
FY2015
Forecasts

FY2016
mid-term target

0
FY2020lomg-term target

03

04

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Feature of investment

New Investment Plan in Belgium

Production capacity :SAP 100,000 T/Y (expansion)(current capacity 60,000 T/Y, totally 160,000 T/Yafter completion)
AA 100,000 T/Y (new)Schedule: Mechanical completion – October 2017
Commercial operation – May 2018
Location: Existing plant site of NSE (industrial site of
INEOS Oxide)
Investment amount:
Approx. 350 million EURONIPPON SHOKUBAI EUROPE N.V., a subsidiary in Belgium(“NSE”), plans to expand its Superabsorbent Polymer (“SAP”)
plant and build its Acrylic Acid (“AA”) plant. SAP, one of
Nippon Shokubaiʼs core businesses, shows steady growthof demand as a key material of disposable diapers. With
this new plant at NSE, Nippon Shokubai groupʼs global SAP
production capacity will be 710,000 T/Y and Nippon Shokubai
will enhance its position as one of the world top suppliers of
SAP.

540

China

(Zhangjiagang)

30

Belgium(Antwerp)

60 100

100

Japan

40

140

50

USA

(Himeji)

Newly establishedin 2018

320

Newly
establishedin 201660 60 (Houston)
90

Singapore(Jurong Island)

Indonesia(Cilegon)Acrylic Acid Facility

Superabsorbent Polymers Facility

ditto (under contemplation)ditto (under contemplation)

Figures : Annual Production Capacity(Unit : kt/y)Prime Minister of Belgium, Charles Michel visited Nippon Shokubai and had a conference with the President, Masanori Ikeda
In the conference, Ikeda introduced Nippon Shokubai Groupand the large-scale investment plan at NSE.

From left: Prime Minister, Charles Michel, President of Nippon Shokubai,
Masanori Ikeda, Deputy Prime Minister, Kris Peeters

Consolidated
Financial
Highlights

Messages fromPresident

Description ofSpecial Feature BusinessGovernance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Halal Certiﬁcation for Organic Acids Used in Food Additives
Nippon Shokubai has acquired halal certiﬁcation for its
organig acid.
The Halal Certiﬁcate is granted to products and services
that take into account the religious beliefs of Muslim
consumers, if the products and services are conﬁrmed tomeet standards set by the Japan Muslim Association and the
Shariah Research Institute in Japan.
The certiﬁcation was granted by the Japan Muslim
Association based on tests by the Shariah Research Instituteat Takushoku University in Japan.
In Southeast Asia, the consumption of processed foods
such as instant noodles is currently growing as eating habits
become increasingly diverse. At the same time, there is a
growing need for processed food production plants basedin the region to acquire halal certiﬁcation for food additives
because of the large population of Muslims in Southeast
Asia, especially in Malaysia and Indonesia.

Looking ahead, Nippon Shokubai intends to keep responding
to market needs while providing a wide range of productsthat bring richness and comfort to people and society.
Halal products(Application examples)
Succinic acid(miso paste, soya sauce)
Disodium succinate <SS50>(instant noodles, processed foods)
Fumaric acid(beverages, pastries)
Maleic anhydride-raw material for food additives, that is, Succinic acidand Fumaric acid
Sodium polyacrylate<AQUALIC H>(thickeners, feed binders, ﬂocculants）

Closure of Suita Plant and Plans to Bolster its R&D Facilities There
Nippon Shokubai ceased manufacturing at its Suita Plant
in the city of Suita, a production facility which played a keyrole in the Companyʼs growth. In the future, however, theCompany plans to bolster its R&D operations in the area by
constructing a new research and development facility.
The Suita Plant was opened in 1943 for the purposeof boostingproduction ofphthalic anhydride,
for which demand
was growing at
the time. Since
then, the plant
has served as acornerstone of the Companyʼs expansion.
Nippon Shokubai proceeded to transfer production fromthe Suita Plant to its other manufacturing facilities and ﬁnallyterminated the plantʼs production operations at the end of
2014.
Looking ahead, Nippon Shokubai plans to bolster its
R&D operations in the area as the plant was located byconstructing a new research and development facility,
scheduled for completion in 2016. Designed to quickly andefﬁciently take idea creation to the next stage of incubation(including support for new business startups), the new R&D
center will actively promotes open innovation. It will also
speed up the development of new products needed to drive
the Companyʼs growth going forward.

Establishment of Nippon Shokubai Korea
Nippon Shokubai reorganized its Korean ofﬁce andestablished a wholly owned subsidiary company “NIPPONSHOKUBAI KOREA CO., LTD.” on April 1, 2015.
In 2007, Nippon Shokubai established an ofﬁce in Korea,
in order to extend a solid base for business in electronic

and information material, because Korean company haslarge global share in television, semiconductor, etc. Now,
for the purpose of strengthening its sales and marketing
activity, Nippon Shokubai reorganized its Korean ofﬁce andestablished a new subsidiary company.

05

06

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Description of Business

Descriptionof Business•Ethylene oxide (EO)
•Ethylene glycol•Ethanolamine•Secondary alcohol
ethxylates•Polymers forconcrete admixture•Water-soluble
polymers•Acrylic acid
•Acrylates•Specialty acrylates•Specialty methacrylates•Superabsorbent
polymers•Process catalysts

Basic Chemicals
Sales of acrylic acids and acrylates
increased signiﬁcantly, normal
operations at the Himeji Plant resumed,
and new facilities that were underconstruction at the Himeji Plant began
operation during summer 2014, causing
a signiﬁcant increase in sales volumes.
Sales of ethylene oxide, secondary
alcohol ethoxylates and ethanolamine
increased due to higher sales volumes.
Sales of ethylene glycol decreased

due to lower sales volumes primarily inexports, in addition to lower sales prices
resulting from a market slump causedby the sudden drop in crude oil prices atthe end of 2014.
As a result of the above, net sales inthe basic chemicals segment increased
14.0% year-on-year to 147,976 million yen.
Operating income rose 140.6% yearon-year to 7,820 million yen. This was on
account of a signiﬁcant increase in sales•Maleic anhydride& Derivatives•Resins for paints& adhesives•Acrylic resin for
optical materials•Zirconia sheets& cells•Automotive
catalysts•De-Nox & dioxins
decomposition
catalysts

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusinessvolumes owing to resuming operations
despite an increase in processing costs,
no need to purchase products that wereGovernance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summaryrequired due to decreased production
capacity stemming from the accident
during the previous ﬁscal year, an

Functional Chemicals
Sales of superabsorbent polymers
increased substantially as normal
operations at the Himeji Plant resumed,
in addition to the beginning of operations
at a new production facility in Indonesia
from October 2013, causing a signiﬁcant
increase in sales volumes.
Sales of special acrylates andwater-soluble polymers for raw
materials of detergents rose signiﬁcantly,
in line with a signiﬁcant increase insales volumes resulting from resuming
normal operations at the Himeji Plant.
Sales of maleic anhydride, polymers
for concrete admixture, ethyleneimine
derivatives and electronics informationmaterials increased on the back ofgrowing sales volumes.
Sales of resins for paints, processedadhesive products, resin modiﬁers andiodine compounds fell due to a decline insales volumes.
As a result of the above, net sales in
the functional chemicals segment rose
36.8% year-on-year to 200,967 million
yen.
Operating income increased
109.8% year-on-year to 17,286 million
yen. Despite the increase in processing
costs associated with the resumptionof production, contributions not only
from the Himeji Plant but from new
production facilities for superabsorbent
polymers in Indonesia yielded asigniﬁcant increase in sales volumes,
and the spread expanded.

Environment & Catalysts
Sales of automotive catalysts, dioxins
decomposition catalysts and fuel cellmaterials increased on higher sales
volumes.
Sales of process catalysts, De-NOx
catalysts, wet oxidation catalysts andpolymer for lithium-ion batteries fell due
to decreased sales volumes.

As a result, sales in the environmentand catalysts segment rose 1.9% yearon-year to 25,931 million yen.
Operating income decreased 37.5%
to 1,277 million yen year-on-year owing
to decline in sales volumes of processcatalysts.

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

expanded spread due to lower crude oil
prices, and other factors.

07

08

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Governance System

We are working to improve our corporate culture and strengthen our competitiveness in order to respond to global trends.
Our approach to corporate governance therefore establishes our foundation. Using the system illustrated in the following
diagram, we are taking steps to revitalize our board of directors, strengthen our audit system, improve the efﬁciency of ourmanagement structure, and improve and strengthen our compliance system.

Our Corporate Governance System
General Meeting of Shareholders

Board ofAuditors
Reports

Board of Directors
AuditsPresident

Accounting
Auditors

Corporate Managing
Committee
AuditsRisk Management
Committee

Collaborates
Collaborates

ProvidessupportCSR Management Committee

Auditor Office

RC Promotion Committee
Compliance Committee

Internal Control Committee
Executive Officers

Internal
Audit
OfficeInternal
audit

Corporate
Planning

GeneralAdministration &Personnel

Purchasing &Logistics

Finance &Accounting

Information
Technology
Management
OfficeResponsible
Care

Sales

Research
Planning &Development

Production

Legal
Advisors
Consultation

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemBoard of Directors
Supervises the execution of duties of each director andreports, deliberates on, and resolves matters related to
execution of duties. In general, the board of directors
convenes monthly.

Corporate Managing Committee
As an advisory body to the president, this committee
deliberates on basic management policies and related
matters. It also consults on the execution of important
divisional matters.

Board of Auditors
Comprising two external auditors and two internal auditors,
this board convenes monthly in general, submits reports,
and engages in discussions and deliberations on importantmatters.

CSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

CSR Management Committee
Chaired by the president, this committee determines thecompanyʼs CSR direction and promotes CSR initiatives that
contribute to the interests of stakeholders while maintaining
coordination with the other committees.

RC Promotion Committee
Chaired by the president, this committee promotes thecompanyʼs Responsible Care activities. It formulates the RC
Promotion Basic Plan and works to further improve safety,
quality, and environmental issues.

Compliance Committee
Chaired by the president, this committee improves andstrengthens the companyʼs overall corporate ethics andsystems for compliance with laws and regulations.

Risk Management Committee

Internal Control Committee

Chaired by the president, this committee implements
periodic measures in response to various wide-ranging risks
to which the company is exposed.

This committee, in full operation since April 2008 under thechairmanship of the president, has established a system toensure the reliability of ﬁnancial reporting as enforced by
the Financial Instruments and Exchange Act. It also seeks toprocess company operations more efﬁciently and effectively.

09

10

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Outside Members of the Board and Outside Corporate Auditors

Koichi Miura(Outside Member of the Board)
Mr. Koichi Miura is Emeritus Professor of Kyoto University, Specially Appointed Professor of Institute of Advanced Energy,
Kyoto University. He attended all 13 meetings of the Board that were held during the ﬁscal year 2014. From his viewpoint as a
specialist in chemical engineering who is familiar with the chemical industry, he provides useful advice concerning the Companyʼs
management and supervises the Companyʼs management from an independent perspective.

Takashi Sakai(Outside Member of the Board)
Mr. Takashi Sakai is Advisor to Osaka Gas Co., Ltd., Chairman of Board of Directors, Gas and Power Co., Ltd. He attended all
10 meetings of the Board that were held during the ﬁscal year 2014 following his election as a Member of the Board. Due to his
experience as an executive of a company that is a manufacturer and has a strong commitment to public service, he provides
useful advice concerning the Companyʼs management and supervises the Companyʼs management from an independent
perspective.

Kozo Arao(Outside Corporate Auditor)
Mr. Kozo Arao is Attorney-at-law. He attended 12 of the 13 meetings of the Board that were held during the ﬁscal year 2014. At
these meetings, he provides his views from the perspective of an attorney as required.
He also attended all 14 meetings of the Corporate Auditors that were held during the ﬁscal year 2014, exchanged opinionswith respect to the results of audits and discussed important issues regarding such audits. Furthermore, he periodicallyexchanged opinions with the senior management.

Akira Omachi(Outside Corporate Auditor)
Mr. Akira Omachi is Director and Senior Vice President of JX Holdings, Inc. He attended 10 of the 13 meetings of the Board thatwere held during the ﬁscal year 2014. At these meetings, he provides his views from the perspective of a corporate executive as
required.
He also attended 12 of the 14 meetings of the Corporate Auditors that were held during the ﬁscal year 2014, exchanged
opinions with respect to the results of audits and discussed important issues regarding such audits. Furthermore, he periodicallyexchanged opinions with the senior management.

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

CSR Based on Responsible Care Concept

CSR Concept
In accordance with the Nippon Shokubai Group Mission,and the Corporate Credo, “Safety takes
priority over production”, instituted in 1973, Nippon Shokubai established a Management Commitment and Code of Conduct tocomprehensively view our corporate conduct from economic, social and environmental perspectives, setting out our corporate
ethics, Responsible Care (RC), human rights and labor, information disclosure, social contribution and corporate governanceas our management's top priority issues and implementing our activities to enhance our corporate value via continuing dialogue
with various stakeholders, including our customers, business partners, shareholders/investors, public administration, employees
and local communities.
Based on this concept of CSR, we will strive to contribute to the development of a sustainable society by implementing ourlong-term management plan, "Reborn Nippon Shokubai 2020," as part of our efforts to achieve our vision for 2025.

CSR Implementation Structure
CSR Management Committee
RC Promotion Committee
Compliance Committee
Disclosure Committee
CSR Promotion Ofﬁce

Determines overall policy for CSR initiatives.
Determines overall policy for RC activities and implements the PDCA cycle.
Determines comprehensive policies for corporate ethics and implements the PDCA cycle.
Implements the PDCA cycle related to information disclosure in an effort to enhancecommunication with society.
Establishes a CSR implementation structure and implements the PDCA cycle for social
contribution initiatives.

Basic Policy on Responsible CareIn conformity with the Nippon Shokubai Group mission, Management commitment , Corporate credo and the Nippon Shokubai
Code of Conduct, we rank it as an important management measure to provide products and technologies that contribute tosociety and environmental protection. In addition, while paying due respect to the principle of Sustainable Development, weare determined to conduct all activities in accordance with the following policy related to environmental protection, safety andproduct quality that will bring our business operations into harmony with the global environment.
Aim at environmental protection and reduction of negative environmental impact throughout the entire life cycle of a
1 product,from development to disposal.
the safety of our employees and our communities by targeting zero accidents and zero disasters with a commitment
2 Ensure
to the principle “Safety takes priority over production.”Conﬁrm the safety of chemical materials, intermediates and products, and consider the health of our customers,
3 employees
of our logistics subcontractors, our employees, and others.

4 Stably supply products and associated services that meet customer satisfaction and inspire their trust.
5 Publicly announce the results of these activities and make an effort to communicate for proper understanding.
We will implement this RC Policy in all our business operations by ensuring all employees have a thorough understanding andawareness of its importance. The president shall be the person with the ultimate responsibility for implementing this policy.

11

12

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Ten-Years Summary

FY2005

FY2006

FY2007¥232,441
23,22816,257¥266,513
19,42913,988¥302,669
18,37911,875291,564
164,631

323,675
179,368

352,783
175,634

17,468-20,663-2,562
19,856

16,087-23,109
4,037
16,991

20,129-33,100
17,495
21,371

Operating results
Net sales .......................................................................................................................
Operating income .........................................................................................................
Net income (loss) .........................................................................................................
Financial position
Total assets ...................................................................................................................
Net assets .....................................................................................................................
Cash ﬂows
Cash ﬂows from operating activities ...........................................................................
Cash ﬂows from investment activities .........................................................................
Cash ﬂows from ﬁnancing activities ............................................................................
Cash and cash equivalents ..........................................................................................
Per share
Earnings per share .......................................................................................................
Net assets .....................................................................................................................
Cash dividends..............................................................................................................
Shareholders' equity ratio (%) .....................................................................................
ROE (%) ........................................................................................................................
ROA (%) ........................................................................................................................
Liquidity ratio (%) .........................................................................................................
PER (%) ........................................................................................................................
Dividend payout ratio (%) .............................................................................................

¥

85.89
875.00
16.0

¥

74.92
948.34
16.0

¥

64.91
947.34
16.0

56.46
10.5
9.7
156
16.29
18.6

54.08
8.2
7.4
146
16.98
21.4

48.61
6.9
6.1
150
10.18
24.6

113.3542,400
1,399
1,426
851

117.0050,000
1,272
1,503
1,152

114.3861,400
661
1,316
626

Market data
Exchange rate, average (¥/$) .......................................................................................
Naphtha price (¥/kl) .....................................................................................................
Share Price (¥) (Closing) .............................................................................................
(High) ......................................................................................................................
(Low) .......................................................................................................................

Consolidated
Financial
Highlights

Messages fromPresident

FY2008Special Feature

Description ofBusiness

FY2009FY2010Governance
SystemCSR Based on
Responsible
Care Concept

FY2011

Ten-Years
Summary

FY2012

Management
Discussion
and Analysis ofOperation

FY2013Financial
Statements

FY2014(Millions of yen)

Corporate Data

FY2014(Millions of U.S. dollars)¥289,102622-5,307¥244,317
13,881
10,832¥288,345
29,813
21,119¥320,704
31,10021,257¥269,520
10,0348,401¥302,136
13,752
10,503¥374,873
26,13319,089$3,120217
159302,948
151,662

310,946
163,781329,332
194,266

356,407
209,070

352,373
220,248

398,396
242,193419,634
270,128

3,492
2,248

17,613-16,675
8,099
29,45044,346-23,850-21,772
28,23431,706-16,696-3,05039,17443,857-21,747-9,67150,812

27,322-31,87881
47,801

16,992-25,141-2,51939,61932,697-18,941-10,237
44,336

272
-158
-85
369

¥ -29.61
831.11
15.5¥ 60.85898.3314.0

110.30938.6722.0¥ 104.71
1,006.48
22.0¥ 41.38
1,059.85
16.0¥ 51.74
1,164.10
16.0¥ 94.06
1,307.13
24.0

48.83
-3.3
0.2
159
−
−

51.43
7.0
4.9
155
13.89
23.0

57.86
12.1
9.7
197
9.45
19.9

57.33
10.8
9.7
174
9.16
21.0

61.05
4.0
3.9
189
19.94
38.7

59.31
4.7
4.4
168
23.56
30.9

63.22
7.6
7.3
205
18.74
25.5

−
−
−
−
−
−

100.5858,900
622
866
442

92.88
41,200
845
920
600

85.72
47,500
1,042
1,047
682

79.07
54,900
959
1,100
764

83.09
57,500825
987
738

100.21
67,300
1,219
1,286
791

109.8863,500
1,763
1,832
1,093

−
528.4
14.7
15.2
9.1

¥

$

0.8
10.9
0.2

Notes: Conversions into USD are just for indication only. The exchange rate is the rate at March 31, 2015. (¥120.17 / $1.00) Figures are rounded off.

13

14

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Management Discussion and Analysis of Operation

Fiscal 2014 Performance
In the current ﬁscal year, concerning the global economy,
the United States economy was on a recovery trend, and as
Europe also moved toward a recovery, a deceleration wasseen in China.
Although Japanʼs economy was on a moderate recovery
trend due to improved corporate business results andemployment conditions, a pullback in demand after the rushin demand prior to the consumption tax increase caused
personal consumption to slump.
In the chemicals industry, the future outlook remains unclear
due to factors such as unstable raw material prices resulting
from a decline in crude oil prices from November 2014
onward.

Segment Sales(¥billion)

6.9%
25.9

Total
374.9
53.6%

148.0

39.5%

201.0

■ Basic Chemicals■ Functional Chemicals■ Environment & Catalysts

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

CSR Based on
Responsible
Care Concept

Governance
SystemManagement
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

Financial position
Under these conditions, the Groupʼs consolidated net salesrose 24.1% year-on-year, to 374,873 million yen (+72,737
million yen) in the current ﬁscal year. Factors contributing
to this result included the resumption of operations at all
Himeji plants in February 2014 that had ceased production
as a result of the accident occurred in September 2012 andefforts to restore the clientsʼ conﬁdence that resulted in thesubstantial rise in sales volume.
With regard to proﬁts, operating income increased
90.0% year-on-year to 26,133 million yen (+12,381 millionyen). Although processing costs rose as the production at
Himeji plants resumed, this increased the sales volume
which outweighed the costs, and widening spreads following
the drop in raw materials costs due to lower crude oil prices
after November 2014 contributed to this result.

Non-operating income increased 913 million yen due
to higher technology licensing income. As a result, ordinary
income rose 79.9% year-on-year to 29,941 million yen(+13,294 million yen).
Extraordinary income and loss improved year on yearby 79 million yen. While insurance income and other costs
related to the accident at Himeji plants were no longer
recorded, loss on abandonment of non-current assets wasrecognized, loss on liquidation of business decreased andgain on sales of investment securities was recorded. As aresult, net income rose 81.7% year-on-year to 19,089 million
yen (+8,586 million yen).

Shareholdersʼ Equity and Total Assets(¥billion)

419.6

398.4

400
356.4

352.4

265.3
200

204.3

215.1

236.3

0
FY2011FY2012FY2013

FY2014■ Shareholders’ Equity■ Total Assets

15

16

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Cash Flows
Cash and cash equivalents at the end of the current ﬁscal
year increased by 4,717 million yen over the end of theprevious ﬁscal year to 44,336 million yen, as cash ﬂow
provided by operating activities exceeded cash ﬂow used
in investing activities (capital investment, etc.) and theredemption of bonds and other ﬁnancing activities.
Net cash provided by operating activities totaled 32,697
million yen (16,992 million yen provided in the previous ﬁscalyear). This was due to an increase of 15,704 million yen fromthe previous ﬁscal year as a result of an increase in earnings
before taxes, depreciation and amortization and decreasein outlays associated with notes and accounts receivable –trade and inventories, despite increase in income taxes paid.

Net cash used in investing activities totaled 18,941
million yen (25,141 million yen used in the previous ﬁscalyear). This was due to a decline of 6,200 million yen inoutlays from the previous ﬁscal year as a result of decreasein purchase of property, plant and equipment and increasein proceeds from sales of property, plant and equipment,
although outlays increased for purchase of shares ofsubsidiaries and associates and purchase of investment
securities.
Net cash used in ﬁnancing activities totaled 10,237
million yen (2,519 million yen used in the previous ﬁscalyear). Redemption of bonds and an increase in cash
dividends paid resulted in an increase of 7,718 million yen inoutlays.

Cash Flows■ Operating activity■ Investments activity■ Free cash flows(¥billion)

50

43.9

40

32.7

30
20

27.3
22.1
17.0

13.8

10
0
-4.6

-10
-20

-18.9

-21.7

-25.1

-30
-40

-8.1

-31.9
FY2011FY2012FY2013

FY2014

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Basic Policy on the Distribution of Proﬁts, and Dividends
Nippon Shokubai has positioned the return of proﬁts toshareholders as the most important management task,and, in consideration of the dividend payout ratio, distributes
dividends under a basic policy of aiming to improve mediumto long-term dividend levels in line with projected trends
in consolidated earnings, while at the same time taking
an overall view to expand the business and strengthen thecorporate structure. In addition to dividend distributions, theCompany intends to continue stock buybacks to raise thevalue per share.
The Company will continue to distribute proﬁts by taking
into careful consideration a balance between the criticalneed to maintain competitiveness and continue growth into
the future by aggressively investing in equipment, R&D andother areas, with the need to accomplish these investments,
recognizing the importance of keeping on hand a sufﬁcientlevel of retained earnings.

The Company pays dividends twice a year, once at theend of the interim period and once at the end of the ﬁscal
year.
Based on the above basic policy, the Company plansto pay a year-end dividend of 13 yen per share for FY 2014,
taking into consideration the business environment, earnings
results and future prospects for business growth. As aresult, annual dividends will total 24 yen per share for a
consolidated payout ratio of 25.5%.
For FY 2015, in light of a revision to ﬁnancial forecasts
and a reverse stock split (merging of 5 shares of common
stock to 1 share) with an effective date of October 1, 2015,
interim dividends are scheduled to be 13 yen per share, andyear-end dividends are scheduled to be 65 yen per share.
Without taking into account the reverse stock split, year-end
dividends would be 13 yen.

Fiscal 2015 Outlook
Although a recovery trend is expected to continue in theJapanese economy due to expanded personal consumption
stemming from an improved employment and income
environment, downward economic risks including concern foroverseas economies such as recovery trends in the European
economy and slowing growth in China, in addition to an
unclear outlook for crude oil prices are expected to create an
unpredictable corporate management environment.
Under such conditions, projected earnings in the next ﬁscal
year are based on exchange rates of 115 yen to the U.S. dollar
and 130 yen to the euro, and naphtha prices of 50,000 yen/kl.
Although sales volumes are projected to increase, centered onfunctional chemicals, sales prices are expected to decrease due
to lower raw material prices. We therefore forecast consolidated
net sales to decrease 4.0% to 360,000 million yen (-14,873
million yen), with 175,000 million yen in the ﬁrst half.

With regard to proﬁts, although the Company projections
incorporate a contraction in spread due to trends in raw
materials and product markets, the expected effect of higher
production and sales volumes will lead to an increase inoperating income by 18.6%, to 31,000 million yen (+4,867 millionyen), with 12,000 million yen in the ﬁrst half. The Company
projects an increase in ordinary income of 6.9%, to 32,000 million
yen (+2,059 million yen), with 12,500 million yen in the ﬁrst
half, assuming a wider non-operating loss due to factors suchas decreased technology licensing income and income from
dividends, and an increase in net income attributable to ownersof parent of 17.9%, to 22,500 million yen (+3,411 million yen),with 9,000 million yen in the ﬁrst half.

17

18

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Financial Statements
Consolidated Balance Sheet

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

March 31,
2014

2015
AssetsCurrent assets:
Cash and cash equivalents (Note 3 ) …………………………………

Time deposits (Notes 3 and 7 ) ………………………………………

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

(Millions of yen)¥

44,336
4,919

2015

¥

39,6193,636$

368,944
40,934

Notes and accounts receivable (Note 3 ):Unconsolidated subsidiaries and afﬁliates …………………………
Trade ………………………………………………………………
Allowance for doubtful accounts …………………………………

Inventories (Note 5 ) …………………………………………………

Deferred income taxes (Note 9 ) ……………………………………
Other current assets …………………………………………………

Total current assets ……………………………………………………

Property, plant and equipment, at cost (Notes 6, 7 and 20):
Land ………………………………………………………………………
Buildings and structures ………………………………………………

Machinery and equipment ………………………………………………
Construction in progress ………………………………………………

Leased assets ……………………………………………………………
Accumulated depreciation ………………………………………………

Property, plant and equipment, net………………………………………

Investments and other assets:
Investments in securities (Notes 3 and 4 )……………………………

Investments in unconsolidated subsidiaries and afﬁliates …………
Deferred income taxes (Note 9 ) ……………………………………
Asset for retirement beneﬁts (Note 8 ) ………………………………

Other assets (Note 7 ) ………………………………………………
Total investments and other assets ……………………………………

Total assets ………………………………………………………………

¥

7,089
67,067(235)
56,303
3,706
13,362
196,547

6,544
63,420(192)
58,624
4,377
10,315
186,343

58,991
558,101(1,956)
468,528
30,840111,193
1,635,575

31,68098,318366,9822,250
696(350,279)
149,647

32,392
94,610357,0528,657
711(341,284)
152,138

263,627
818,158
3,053,857
18,723
5,792(2,914,863)
1,245,294

34,797
23,973
1,995
5,476
7,199
73,44025,292
22,924
2,458
2,507
6,734
59,915289,565
199,492
16,60145,56959,907611,134

398,396$ 3,492,003

419,634¥

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

March 31,
2014

2015
Liabilities and Net Assets
Current liabilities:
Short-term bank loans (Notes 3 and 7 ) ………………………………

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

(Millions of yen)¥

Current portion of long-term debt (Notes 3 and 7 ) …………………

Notes and accounts payable (Note 3 ):Unconsolidated subsidiaries and afﬁliates …………………………

Trade ……………………………………………………………………

Lease obligations (Note 7 ) ……………………………………………
Income taxes payable (Note 9 ) …………………………………………
Accrued bonuses to employees ………………………………………

Accrued bonuses to directors and corporate auditors ………………

Reserve for periodic repairs ……………………………………………
Other current liabilities …………………………………………………

Total current liabilities ……………………………………………………
Long-term liabilities:
Long-term debt (Notes 3 and 7 ) ………………………………………
Lease obligations (Note 7 ) ……………………………………………
Deferred income taxes (Note 9 ) ………………………………………
Liability for retirement beneﬁts (Note 8 ) ………………………………

Other ……………………………………………………………………

Total long-term liabilities …………………………………………………

22,071
7,685

2015

¥

17,60418,028$

183,665
63,951

5,962
41,553
28
4,839
3,075
152
2,485
8,177
96,027

5,444
47,323
30
3,917
2,639
125
2,845
13,182
111,137

49,613345,785
233
40,26825,5891,265
20,67968,044
799,092

36,910149
3,607
11,755
1,058
53,47932,716175
284
10,8001,091
45,066

307,148
1,240
30,016
97,8208,804
445,028

25,03822,083
195,497(956)
241,662

25,03822,083
180,240(924)
226,437

208,355
183,765
1,626,837(7,955)2,011,002

10,652
13,09527(162)
23,612
4,854
270,128
419,634

4,454
6,344
9
(970)
9,837
5,919
242,193
398,396

88,641
108,971
225(1,349)196,488
40,393
2,247,883$ 3,492,003

Contingent liabilities (Note 17 )Net assets:
Shareholdersʼ equity (Note 10 ):Common stock:
Authorized – 636,000,000 shares
Issued – 204,000,000 shares in 2015 and 2014 ……………………
Capital surplus…………………………………………………………
Retained earnings ……………………………………………………

Less treasury stock, at cost …………………………………………

Total shareholdersʼ equity ………………………………………………
Accumulated other comprehensive income (loss):
Net unrealized holding gain on securities …………………………

Translation adjustments ………………………………………………

Net unrealized deferred gain on hedges ……………………………
Retirement beneﬁt liability adjustments ……………………………

Total accumulated other comprehensive income, net ………………

Minority interests ………………………………………………………

Total net assets ……………………………………………………………
Total liabilities and net assets ……………………………………………

See accompanying notes to consolidated ﬁnancial statements.

¥

¥

19

20

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Consolidated Statement of Income

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Year ended March 31,
2014

2015

Net sales (Note 20 ) ………………………………………………………

¥

Gross proﬁt …………………………………………………………

Selling, general and administrative expenses (Note 11 ) ………………
Operating income (Note 20) ………………………………………

Other income (expenses):
Interest and dividend income …………………………………………

Interest expense …………………………………………………………

Royalty income and technical support fee ……………………………
Equity in earnings of an unconsolidated subsidiary and afﬁliates …

Loss on impairment of property, plant and equipment(Notes 6 and 20 ) …………………………………………………………

Rent income from real estate …………………………………………
Gain on insurance claims (Note 12 ) ……………………………………
Gain on insurance adjustment …………………………………………

Loss on reduction of property, plant and equipment …………………

Loss on disposal of property, plant and equipment …………………

Loss on discontinued operations (Note 14 ) ……………………………
Loss on explosion and ﬁre accident (Note 13 ) ………………………
Loss on cancellation of retirement beneﬁt trust………………………
Loss on devaluation of investments in an unconsolidated subsidiary
Other, net ………………………………………………………………
Income before income taxes and minority interests………………

Income taxes (Note 9 ):Current …………………………………………………………………
Deferred …………………………………………………………………
Income before minority interests …………………………………

Minority interests …………………………………………………………

Net income …………………………………………………………

See accompanying notes to consolidated ﬁnancial statements.

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

(Millions of yen)

Cost of sales (Note 11) ……………………………………………………

¥

374,873309,135
65,7382015

302,136
253,181
48,955$ 3,119,522
2,572,480
547,042

39,605
26,13335,203
13,752

329,575
217,467

1,100
(602)
1,198
1,259

1,031
(599)
369
1,105

9,154
(5,010)9,969
10,477

(477)
1,129
–
–
–
(463)
(151)
–
–
–
229
29,355

(394)
1,112
9,179
2,275
(2,128)(64)(867)(8,323)
(414)
(50)
(2)
15,982(3,969)9,395–––(3,853)(1,257)–––
1,906
244,279

8,333
1,752
10,085
19,270(181)
19,089

5,489
(373)
5,116
10,866(363)
10,50369,344
14,57983,923
160,356(1,506)
158,850¥¥$

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Consolidated Statement of Comprehensive Income

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Year ended March 31,
2014

2015

Income before minority interests ………………………………………

¥

Net unrealized deferred gain on hedges ………………………………
Translation adjustments ………………………………………………

Retirement beneﬁts liability adjustments ……………………………
Share of other comprehensive income of an unconsolidated
subsidiary and afﬁliates accounted for by the equity method ………

Total other comprehensive income ……………………………………

Comprehensive income (Note 15 ) ………………………………………

¥Comprehensive income attributable to:Shareholders of the Company …………………………………………

¥Minority interests ………………………………………………………

See accompanying notes to consolidated ﬁnancial statements.

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

(Millions of yen)

Other comprehensive income (Note 15 )Net unrealized holding gain on securities ……………………………

19,2702015¥

10,866$160,356

6,211
18
5,786
918

1,602
8
10,736–

51,685
151
48,148
7,639

1,058
13,99133,261

2,301
14,64725,513

8,804
116,427
276,783

32,863398¥¥

24,663
850$$

273,471
3,312

21

22

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Consolidated Statement of Changes in Net Assets

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Shareholdersʼ equity
Commonstock
Balance at April 1, 2013 ……………

Less treasury
Total
stock,
shareholdersʼ
at costequityRetainedearnings(Millions of yen)¥

Changes during the year:
Cash dividends ……………………

Net income …………………………
Purchases of treasury stock ………
Disposition of treasury stock………
Net changes in items other thanshareholdersʼ equity ………………

Total changes during the year ……

Balance at March 31, 2014 …………

Capitalsurplus¥25,038¥22,083¥ 172,375

–
–
–
–

–
–
–
0

(2,638)10,503––––25,038–0
22,083–7,865¥ 180,240¥¥(897) ¥ 218,599(2,638)10,503
(30)
3

–
–
(30)
3

¥

–
–
(27)
7,838
(924) ¥ 226,437

Accumulated other comprehensive income (loss)

Balance at April 1, 2013 ……………

Net
unrealized
holding gain
on securities

Retirement Total accumulatedNet
beneﬁtunrealizedotherliability
Translation deferred gain
comprehensive
adjustmentson hedges
adjustments
income, net¥¥

Changes during the year:
Cash dividends ……………………

Net income …………………………
Purchases of treasury stock ………
Disposition of treasury stock………
Net changes in items other thanshareholdersʼ equity ………………

Total changes during the year ……
Balance at March 31, 2014 …………

¥

(Millions of yen)

(6,309) ¥

1

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

1,608
1,608
4,454

12,653
12,653
6,344

8
8
9

(970)
(970)
(970) ¥

2,846

¥

¥

¥

¥

–

¥

Minority
interests

Total net
assets5,111¥ 220,248

–
–
–
–

–
–
–
–

(2,638)10,503(30)
313,29913,299
9,837

808
808
5,919

14,107
21,945¥ 242,193(3,462) ¥¥Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

CSR Based on
Responsible
Care Concept

Governance
SystemManagement
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Shareholdersʼ equity
Commonstock

CapitalsurplusLess treasury
Total
stock,
shareholdersʼ
at costequityRetainedearnings(Millions of yen)

Balance at April 1, 2014, as originallyreported ……………………………… ¥Cumulative effect of change inaccounting policy ……………………

Balance at April 1, 2014, as adjusted …
Changes during the year:
Cash dividends ……………………

Net income …………………………
Purchases of treasury stock ………
Net changes in items other thanshareholdersʼ equity ………………

Total changes during the year ……

Balance at March 31, 2015 …………

¥

25,038¥¥ 180,240–
25,038–22,083

25
180,265

–
(924)

25
226,462

–
–
–

–
–
–

(3,857)
19,089–––(32)(3,857)
19,089(32)––
25,038––22,083–
15,232¥ 195,497¥¥(924) ¥ 226,437

22,083¥––(32)
15,200(956) ¥ 241,662

Accumulated other comprehensive income (loss)
Net
unrealized
holding gain
on securities

Retirement Total accumulatedNet
beneﬁtunrealizedotherliability
Translation deferred gain
comprehensive
adjustmentson hedges
adjustments
income, net

Minority
interests

Total net
assets

5,919¥ 242,193(Millions of yen)

Balance at April 1, 2014, as originallyreported ……………………………… ¥Cumulative effect of change inaccounting policy ……………………

Balance at April 1, 2014, as adjusted …
Changes during the year:
Cash dividends ……………………

Net income …………………………
Purchases of treasury stock ………
Net changes in items other thanshareholdersʼ equity ………………

Total changes during the year ……

Balance at March 31, 2015 …………

¥

4,454

¥

6,344

¥

9

¥

(970) ¥

9,837

¥

–
4,454

–
6,344

–
9

–
(970)

–
9,837

–
5,919

25
242,218

–
–
–

–
–
–

–
–
–

–
–
–

–
–
–

–
–
–

(3,857)
19,089
(32)

6,198
6,198
10,652

6,751
6,751
13,095

18
18
27

808
808
(162) ¥¥¥¥

13,775
13,77523,612¥(1,065)
12,710(1,065)27,9104,854 ¥ 270,128

23

24

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Shareholdersʼ equity
Commonstock

CapitalsurplusLess treasury
Total
stock,
shareholdersʼ
at costequityRetainedearnings(Thousands of U.S. dollars) (Note 2)

Balance at April 1, 2014, as originallyreported ……………………………… $ 208,355
Cumulative effect of change inaccounting policy ……………………

Balance at April 1, 2014, as adjusted …
Changes during the year:
Cash dividends ……………………

Net income …………………………
Purchases of treasury stock ………

$ 183,765 $ 1,499,875 $(7,689) $ 1,884,306–
208,355–
183,765208
1,500,083–(7,689)208
1,884,514

–
–
–

–
–
–

(32,096)
158,850
–

–
–
(266)

(32,096)
158,850(266)

Net changes in items other thanshareholdersʼ equity ………………

–
–
–
–
–
126,754
Balance at March 31, 2015 ………… $ 208,355 $ 183,765 $ 1,626,837 $Total changes during the year ……

–
–
(266)
126,488(7,955) $ 2,011,002

Accumulated other comprehensive income (loss)
Net
unrealized
holding gain
on securities

Retirement Total accumulatedNet
beneﬁtunrealizedotherliability
Translation deferred gain
comprehensive
adjustmentson hedges
adjustments
income, net

Minority
interests

Total net
assets(Thousands of U.S. dollars) (Note 2)

Balance at April 1, 2014, as originallyreported ……………………………… $Cumulative effect of change inaccounting policy ……………………

Balance at April 1, 2014, as adjusted …
Changes during the year:
Cash dividends ……………………

Net income …………………………
Purchases of treasury stock ………
Net changes in items other thanshareholdersʼ equity ………………

Total changes during the year ……

Balance at March 31, 2015 ………… $37,064 $52,792 $75 $(8,072) $81,859 $49,255 $ 2,015,420–
37,064–
52,792–75–(8,072)–81,859–49,255208
2,015,628

–
–
–

–
–
–

–
–
–

–
–
–

–
–
–

–
–
–

(32,096)
158,850(266)

51,57756,17951,57756,17988,641 $ 108,971 $See accompanying notes to consolidated ﬁnancial statements.

150
150
225 $

6,723
114,629
6,723
114,629(1,349) $ 196,488 $(8,862)
105,767(8,862)
232,255
40,393 $ 2,247,883

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Consolidated Statement of Cash Flows

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Year ended March 31,
2014

2015

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

(Millions of yen)

Operating activities:
Income before income taxes and minority interests ……………………

¥Adjustments to reconcile income before income taxes and minority
interests to net cash provided by operating activities:
Depreciation and amortization …………………………………………

Gain on sales of investments in securities ……………………………

Loss on devaluation of investments in an unconsolidated
subsidiary ………………………………………………………………

Loss on reduction of property, plant and equipment …………………

Loss on discontinued operations ………………………………………
Loss on impairment of property, plant and equipment ………………
Gain on insurance claims ………………………………………………

Gain on insurance adjustment …………………………………………

Increase in asset for retirement beneﬁts ……………………………

Increase in liability for retirement beneﬁts ……………………………
Interest and dividend income …………………………………………

Interest expense …………………………………………………………
Equity in earnings of an unconsolidated subsidiary and afﬁliates …

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 ………………………………………………………………
Proceeds from insurance claims …………………………………………

Payment of income taxes …………………………………………………
Payment for liquidation of business ……………………………………
Net cash provided by operating activities ………………………………
Investing activities:
Purchases of property, plant and equipment ……………………………

Proceeds from sales of property, plant and equipment ………………
Purchase of intangible assets ……………………………………………
Purchases of investments in securities …………………………………

Proceeds from sales of investments in securities ………………………

Payments for purchases of shares of afﬁliates …………………………
Initiation of loans receivable………………………………………………
Collection of loans receivable ……………………………………………

Other, net …………………………………………………………………

Net cash used in investing activities ……………………………………

¥

29,3552015¥

15,982$

244,279

18,971(422)

16,995–

157,868(3,512)

–
–
–
477
–
–
(2,989)
1,629(1,100)602(1,259)(2,254)

50
2,128
725
394
(9,192)(2,275)(107)
232(1,031)599(1,105)(2,270)

–
–
–
3,969
–
–
(24,873)
13,556(9,154)
5,010(10,477)(18,756)(2,521)
3,874(6,278)451
38,536
2,366
(621)
–
(7,450)(134)
32,697(16,215)(14,393)
12,386
(657)
2,246
1,953
(614)
14,639(1,226)(6)
16,992(20,979)
32,238(52,243)
3,753
320,679
19,689(5,168)–(61,996)(1,115)
272,089(17,629)
1,547
(986)
(1,108)1,267(1,285)–140(887)(18,941)(22,395)
109
(933)
(742)
328
(9)
(600）
184
(1,084)(25,142)(146,701)
12,873(8,205)(9,220)
10,544(10,693)–
1,165(7,381)(157,618)

¥

$

25

26

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Nippon Shokubai Co., Ltd. and Consolidated Subsidiaries

Years ended March 31,
2014

2015

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

(Millions of yen)

Financing activities:
Increase in short-term bank loans, net …………………………………

¥Proceeds from long-term debt …………………………………………
Repayment of long-term debt ……………………………………………
Repayments of bonds ……………………………………………………
Cash dividends paid
Proceeds from sales of treasury stock …………………………………
Purchases of treasury stock ……………………………………………

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 ………………………

Cash and cash equivalents at end of year ………………………………

¥

3,498
8,750
(8,537)(10,000)(3,857)–(32)(60)(10,238)
1,199
4,717
39,61944,336

2015

¥

¥

2,918
11,400(14,100)–(2,639)3(30)(71)(2,519)2,487(8,182)47,801
39,619$$29,10972,814(71,041)(83,215)(32,096)
–
(266)
(501)
(85,196)
9,978
39,253
329,691
368,944

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

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

March 31, 2015
1. Summary of Signiﬁcant Accounting Policies(a) Basis of presentation
The accompanying consolidated ﬁnancial statements of Nippon Shokubai Co., Ltd. (the “Company”) and its consolidated
subsidiaries are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects
as to the application and disclosure requirements of International Financial Reporting Standards, and are compiled from theconsolidated ﬁnancial statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated ﬁnancial statements, certain reclassiﬁcations and rearrangements have been
made to the consolidated ﬁnancial statements issued domestically in order to present them in a format which is more familiar toreaders outside Japan.
Certain reclassiﬁcations of previously reported amounts have been made to conform the consolidated ﬁnancial statements
for the year ended March 31, 2014 to the 2015 presentation. Such reclassiﬁcations had no effect on consolidated net income or net
assets.
(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 overseas consolidated subsidiaries are consolidated on the basis of ﬁscal periods ending December 31, a date which
differs from the balance sheet date of the Company. As a result, adjustments have been made for any signiﬁcant intercompany
transactions which took place during the period between the year end of these overseas consolidated subsidiaries and the year
end of the Company.
Investments in an unconsolidated subsidiary and signiﬁcant afﬁliates are accounted for by the equity method.
Investments in unconsolidated subsidiaries and afﬁliates not accounted for by the equity method are carried at cost.
(c) Foreign currency translation
The ﬁnancial statements of the overseas consolidated subsidiaries are translated into yen at the rates of exchange in effect atthe balance sheet date, except that the components of net assets excluding minority interests are translated at their historicalexchange rates. Differences resulting from translating the ﬁnancial statements of the overseas consolidated subsidiaries
are not included in the determination of net income but are reported as translation adjustments and minority interests in theaccompanying consolidated balance sheets at March 31, 2015 and 2014.
Revenue and expense items arising from transactions denominated in foreign currencies are generally translated into yen at
the rates of exchange in effect at the respective transaction dates.
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rates of exchange in effectat the balance sheet date and gain or loss on each translation is credited or charged to income.
(d) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time and short-term
investments with a maturity of three months or less when purchased which can easily be converted to cash and are subject tolittle risk of change in value.
(e) Allowance for doubtful accounts
The Company and its consolidated subsidiaries provide an allowance for doubtful receivables at an amount calculated based on
their historical experience of bad debts on ordinary receivables plus an additional estimate of probable speciﬁc bad debts from
customers experiencing ﬁnancial difﬁculties.

27

28

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015(f) Inventories
Inventories are stated at the lower of cost or net selling value, cost being determined primarily by the moving average method.
(g) Property, plant and equipment
Depreciation is computed principally by the straight-line method over the estimated useful lives of the respective assets except
for leased assets.
(h) Leases
Leased assets under ﬁnance lease transactions that do not transfer ownership to the lessee are depreciated to a residual value ofzero by the straight-line method using the contract term as the useful life.
For ﬁnance lease transactions that do not transfer ownership to the lessee, those that started on or before March 31, 2008
continue to be accounted for as operating lease transactions.
(i) Investments in securities
Securities are classiﬁed into three categories: trading securities, held-to-maturity debt securities and other securities. Trading
securities, consisting of debt and marketable equity securities, are carried at fair value. Gain and loss, both realized andunrealized, are credited and charged to income. Held-to-maturity debt securities are carried at amortized cost. Marketablesecurities classiﬁed as other securities are carried at fair value, with any changes in unrealized holding gain or loss, net ofthe applicable income taxes, reported as a separate component of net assets. Non-marketable securities classiﬁed as othersecurities are carried at cost. Cost of securities sold is determined by the moving average method.
(j) Research and development costs and computer software
Research and development costs are charged to income when incurred.
Expenditures relating to the development of computer software intended for internal use are charged to income as incurred,
except if these are deemed to contribute to the generation of future income or cost savings. Such expenditures are capitalized asassets and amortized by the straight-line method over their respective estimated useful lives, generally a period of 5 years.
(k) 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 ﬁnancial reporting and the tax bases of the assets andliabilities which will result in taxable or tax-deductible amounts in the future. The calculation of deferred income tax assets andliabilities is based on the enacted tax laws.
(l) Hedge accounting
Gain or loss on derivatives positions designated as hedges is deferred until the loss or gain on the respective underlying hedged
items is recognized. Interest rate swaps which meet certain conditions are accounted for as if the interest rates applied to theswaps had originally applied to the underlying debt.
Forward foreign currency exchange contracts which meet certain criteria are accounted for by the allocation method which
requires that recognized foreign currency receivables or payables be translated at the corresponding contract rates (“Allocation
method”).
(m) Accrued bonuses to employees
Accrued bonuses to employees are provided based on the estimated amount of bonuses to be paid to employees which is charged
to income in the current year.

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data(n) Accrued bonuses to directors and corporate auditors
Accrued bonuses to directors and corporate auditors are provided at an estimate of the amount to be paid in the following year
which has been allocated to the current ﬁscal year.
(o) Reserve for periodic repairs
The Company and certain consolidated subsidiaries provide a reserve for the cost of periodic repairs to production facilities atplants based on their estimates of the future cost of such repairs.
(p) Retirement beneﬁts
The liability for retirement beneﬁts is provided based on the retirement beneﬁt obligation reduced by the pension plan assets atfair value at the end of the year.
The retirement beneﬁts are attributed to periods corresponding to the service years of eligible employees based on the
beneﬁt formula method.
Actuarial gain or loss is amortized in the year following the year in which the gain or loss is recognized by the straight-line
method principally over a period of 10 years, which is within the estimated average remaining years of service of the eligible
employees.
Prior service cost is amortized by the straight-line method principally over a period of 5 years, which is within the estimatedaverage remaining years of service of the eligible employees.
(q) Distribution of retained earnings
Under the Corporation Law of Japan, the distribution of retained earnings with respect to a given ﬁnancial period is made byresolution of the shareholders at a general meeting held subsequent to the close of the ﬁnancial period. The accounts for that
period do not, therefore, reﬂect such distributions (see Note 22).
(r) Recognition of contract revenue and cost
The Company recognizes revenue by applying the percentage-of-completion method for the construction projects for which
the outcome of the construction activity is deemed certain at the end of the reporting period. To estimate the progress of such
construction projects, the Company measures the percentage of completion by comparing costs incurred to date with the mostrecent estimate of total costs required to complete the project (cost to cost basis). For other construction projects where theoutcome cannot be reliably measured, the completed-contract method is applied.
(s) Change in accounting policy
Accounting Standard for Retirement Beneﬁts
The Company and its domestic subsidiaries adopted Section 35 of “Accounting Standard for Retirement Beneﬁts” (AccountingStandards Board of Japan (“ASBJ”) Statement No.26 of May 17, 2012) and the main clause of Section 67 of “Guidance on
Accounting Standard for Retirement Beneﬁts” (ASBJ Guidance No.25 of March 26, 2015) effective from April 1, 2014. As a result,the methods for calculating the retirement beneﬁt obligation and service cost have been revised in the following respects: themethod for attributing projected beneﬁts to each period has been changed from the straight-line method to the beneﬁt formula
method, and the method for determining the discount rate has been changed from using a discount rate based on the estimatedaverage remaining years of service of the eligible employees to the use of a single weighted-average discount rate reﬂecting the
expected timing and amount of beneﬁt payments.
The cumulative effect of changing the methods for calculating the retirement beneﬁt obligation and service cost wasrecognized by adjusting retained earnings at April 1, 2014, in accordance with the transitional treatment provided in Section 37 of
Accounting Standard for Retirement Beneﬁts.
As a result, the liability for retirement beneﬁts increased by ¥116 million ($965 thousand), retained earnings increased by ¥25
million ($208 thousand) and assets for retirement beneﬁts decreased by ¥20 million ($166 thousand) at April 1, 2014.

29

30

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015(t) Accounting standards issued but not yet effective(Accounting Standards for Business Combinations)
On September 13, 2013, ASBJ issued “Revised Accounting Standard for Business Combinations” (ASBJ Statement No.21), “Revised
Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22), “Revised Accounting Standard for Business
Divestitures” (ASBJ Statement No.7), “Revised Accounting Standard for Earnings Per Share” (ASBJ Statement No.2), “Revised
Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance
No.10), and “Revised Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance No.4).
(1) Overview
Under these revised accounting standards, the accounting treatment for any changes in a parentʼs ownership interest in a
subsidiary when the parent retains control over the subsidiary and the corresponding accounting for acquisition-related costs
were revised. In addition, the presentation method of net income was amended, the reference to “minority interests” waschanged to “non-controlling interests,” and accounting treatment for adjustments to provisional amounts was also changed.
(2) Scheduled date of adoption
The Company expects to adopt these revised accounting standards and guidance from the beginning of the ﬁscal year ending
March 31, 2016.
(3) Impact of adopting revised accounting standards and guidance
The Company is currently evaluating the effect of adopting these revised standards on its consolidated ﬁnancial statements.
2.

U.S. Dollar Amounts
The translation of yen amounts into U.S. dollar amounts is included solely for convenience, as a matter of arithmetic computation
only, at ¥120.17 = U.S. $1.00, the approximate rate of exchange in effect on March 31, 2015. This 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 theabove or any other rate.

3.

Financial Instruments(1) Current status of ﬁnancial instruments
1) Policy for ﬁnancial instruments
The Group manages temporary surplus funds through short-term bank deposits. The Group raises funds through bankloans. The Group uses derivatives for the purpose of reducing foreign currency exchange rate ﬂuctuation risk or interest
rate ﬂuctuation risk, and does not enter into derivatives for speculative or trading purposes.

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

2) Types of ﬁnancial instruments and related risk
Notes and accounts receivable, trade are exposed to credit risk in relation to customers. Trade receivables in foreign
currencies, arising from export transactions for the global business, are exposed to foreign currency exchange rate
ﬂuctuation risk, which are hedged by forward foreign exchange contracts.
Investments in securities are composed of the shares of common stock of other companies with which the Grouphas business or capital relationships, which are also exposed to market price volatility risk.
Substantially all notes and accounts payable, trade have payment due dates within one year, which are also hedged
by forward foreign currency exchange contracts. The loans are taken out principally for the purpose of making capital
expenditures. The loans with variable interest rates are exposed to interest rate ﬂuctuation risk. However, the interest
rate ﬂuctuation risk is covered by interest rate swap transactions.
Regarding derivatives, the Group enters into forward foreign currency exchange transactions to avoid foreign
currency exchange rate ﬂuctuation risk related to trade receivables and trade payables denominated in foreign
currencies. The Group also enters into interest rate swap transactions to avoid interest rate ﬂuctuation risk related to
the loans.
Further information regarding the method of hedge accounting, hedging instruments and hedged items, hedging
policy, and the assessment of the effectiveness of hedging activities can be found in Note 19.
3) Risk management for ﬁnancial instrumentsi) Monitoring for credit risk (the risk that customers or counterparties may default)With respect to trade receivables, each related division of the Company monitors the conditions of their main
customers periodically, monitors due dates and outstanding balances of individual customers, and evaluates credit
worthiness of their main customers semiannually. The consolidated subsidiaries also monitor trade receivables in asame manner.
The Group also believes that the credit risk of derivatives is insigniﬁcant as the Group enters into derivativetransactions only with ﬁnancial institutions with high credit ratings.
ii)

Monitoring of market risks (the risks arising from ﬂuctuations in foreign exchange rates, interest rates and others)
For trade receivables and trade payables in foreign currencies, the Group enters into forward foreign currency
exchange contracts.
For investments in securities, the Group periodically reviews the fair values of such ﬁnancial instruments andthe ﬁnancial position of the issuers. In addition, the Group continuously evaluates whether securities other thanthose classiﬁed as held-to-maturity should be maintained taking into account their fair values and relationships with
the issuers.
For derivative transactions, the ﬁnance department of the Company enters into and manages derivativetransactions. Results of derivative transactions are reported to the director in charge monthly.

iii) Monitoring of liquidity risk (the risk that the Group may not be able to meet its obligations on the scheduled due
dates)
Based on reports from each division, the Group prepares and updates its cash ﬂow plans on a timely basis to
manage liquidity risk.
4) Supplementary explanation of the estimated fair value of ﬁnancial instruments
The notional amounts of derivatives in the following table are not necessarily indicative of the actual market risk involved
in derivative transactions.

31

32

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

(2) Fair value of ﬁnancial instruments
Carrying value, fair value, and unrealized gain or loss on ﬁnancial instruments at March 31, 2015 and 2014 are shown in thefollowing table. The following table does not include ﬁnancial instruments for which it is extremely difﬁcult to determine thefair value.
2015
2014
(Millions of yen)

Carrying
value

Fair
value

Unrealized
gain

49,255¥Carrying
value

Fair
value

Unrealized
loss

Assets:i) Cash and cash
equivalents, and time deposits …

¥ii) Notes andaccounts receivable ……………
iii) Investments insecurities:
Other securities ………………

Total assets …………………………

49,255¥–¥–43,255¥43,255¥–

74,15674,15634,147¥ 157,558

34,147¥ 157,558

¥

–
–

¥

¥

¥

–

¥52,767¥52,767¥–

69,964¥

24,667
137,886

69,964¥

24,667
137,886–¥––

Liabilities:iv) Notes andaccounts payable ………………
v) Short-term bankloans ……………………………

47,51547,51522,071

22,071–

17,604

17,604–

Total liabilities ………………………

7,685
36,910¥ 114,181

7,741
37,028¥ 114,355

¥

56
118
174

¥

8,028
32,716111,115¥

8,006
32,637
111,014

¥

(22)
(79)
(101)

Derivatives …………………………

¥

¥

¥

–

¥

14

¥

14

¥

–

vi) Current portion of
long-term debt …………………

vii) Long-term debt ………………

40

40
2015

(Thousands of U.S. dollars)

Carrying
value

Fair
value

i) Cash and cash equivalents, andtime deposits ……………………

$ 409,878$ 409,878ii) Notes andaccounts receivable ……………

617,092

617,092

284,156$1,311,126

284,156$1,311,126

Unrealized
gain

Assets:iii) Investments insecurities:
Other securities ………………

Total assets …………………………

$

–
–

$

–
–

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

2015
(Thousands of U.S. dollars)

Carrying
value

Fair
value

Unrealizedgainiv) Notes andaccounts payable ………………

$ 395,398$ 395,398v) Short-term bankloans ……………………………

183,665

183,665–

Total liabilities ………………………

63,951
307,148$ 950,162

64,417308,130$ 951,610

$

466
982
1,448

Derivatives …………………………

$

$

$

–

Liabilities:vi) Current portion of
long-term debt …………………

vii) Long-term debt ………………

1)

333

333

$

–

Calculation methods of fair value of ﬁnancial instruments, securities, and derivatives are as follows:
Assets:i) Cash and cash equivalents, time deposits, and ii) notes and accounts receivable
Since these items are settled in a short period of time, their carrying values approximate the fair value.
iii) Investments in securities
Please refer to Note 1(i).
Liabilities:iv) Notes and accounts payable, and v) short-term bank loans
Since these items are settled in a short period of time, their carrying values approximate the fair value.
vi) Current portion of long-term debt, and vii) long-term debt
The fair value of long-term debt is based on present value of the total amount including principal and interest,
discounted by the expected interest rate in the case of new borrowings under the same conditions and in the sameamount of the balance as of the end of the period. Long-term loans with ﬂoating interest rates were hedged byinterest-rate swap agreements and accounted for as loans with ﬁxed interest rates. The estimated fair value of thoselong-term loans is reasonably based on the present value of the total of principals, interests and net cash ﬂows of swap
agreements discounted by the interest rates, estimated reasonably, applicable to loans made under similar conditions.
Derivative transactions:
Please refer to Note 19.

2)

Financial instruments for which it is extremely difﬁcult to determine the fair value:
Other securities whose market value was not determinable at March 31, 2015 and 2014 are presented as follows:
2015
2014
2015

Unlisted securities and other ……………

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

¥

650

¥

625

$

5,409

Since there is no market price for unlisted securities and it is difﬁcult to determine the fair value, they are not included in thepreceding table “(2) Fair value of ﬁnancial instruments.”

33

34

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 20153)

The redemption schedule for monetary assets with maturity dates as of March 31, 2015 and 2014 is as follows:
2015
2014
2015
(Thousands of
U.S. dollars)(Millions of yen)

Due within
one year
Cash and cash equivalents, and time
deposits ……………………………………

¥

49,255
74,156
123,411

Notes and accounts receivable …………

¥
4.

Due within
one year¥

Due within
one year

43,25569,964113,219¥$

409,878
617,092
1,026,970$

Investments in Securities
Marketable securities classiﬁed as other securities at March 31, 2015 and 2014 are summarized as follows:
2015
2014
(Millions of yen)Book value (fairmarket value)
Securities whose fair market value
exceeds their cost:
Equity securities ……………………

¥Subtotal ………………………………

Securities whose cost exceeds theirfair market value:
Equity securities ……………………

Subtotal ………………………………
Total …………………………………

¥

33,24733,247900
900
34,147

Unrealized
gain (loss)

Book value (fairmarket value)¥¥

18,191
18,191(60)(60)
15,100 ¥

6,476
6,476
24,667

Cost¥

18,08718,087960
960
19,047¥¥

15,16015,1602015(Thousands of U.S. dollars)

Securities whose fair market value
exceeds their cost:
Equity securities ……………………

Subtotal ………………………………

Securities whose cost exceeds theirfair market value:
Equity securities ……………………

Subtotal ………………………………
Total …………………………………

Book value (fairmarket value)

Cost

Unrealized
gain (loss)$ 276,666
276,666$ 150,512
150,512$ 126,154
126,154

7,490
7,490
$ 284,156

7,989
7,989
$ 158,501

(499)
(499)
$ 125,655

Sales of other securities for the years ended March 31, 2015 and 2014 were as follows:
2015
2014
2015

Proceeds ……………………………
Gross realized gain …………………

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

¥
¥

547
422

¥
¥

93
–

$
$

4,552
3,512

Unrealized
gain (loss)

Cost

¥

¥

11,131
11,131

6,933
6,933
18,064

¥

¥

7,060
7,060

(457)
(457)
6,603

Consolidated
Financial
Highlights

5.

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Inventories
Inventories at March 31, 2015 and 2014 were as follows:
2015
2014

¥

Raw materials
Work in process
Supplies

¥

Total

6.

33,76911,446
6,222
4,866
56,303¥¥

Ten-Years
Summary

Financial
Statements

Corporate Data

2015
(Thousands of
U.S. dollars)(Millions of yen)

Merchandise and ﬁnished goods

Management
Discussion
and Analysis ofOperation

35,455
11,623
6,738
4,808
58,624$ 281,010
95,24851,77740,493$ 468,528

Loss on Impairment of Property, Plant and Equipment
Property, plant and equipment are primarily grouped based on the business segment categories designated for management
control purposes.
For the year ended March 31, 2015, growth of the polymer market for lithium-ion batteries was below expectations followed
by a decline in the price of the product. Based on these circumstances, as continuous loss hereafter was expected, a loss on
impairment in the amount of ¥181 million ($1,506 thousand) was recognized on equipment which was used to manufacture
polymer for lithium-ion batteries at the Kawasaki Plant in Kanagawa Prefecture. Accordingly, the Company has written downsuch assets to their respective net recoverable amounts. The net recoverable amounts of these impaired assets were measured
at value in use based on estimated future cash ﬂows discounted at a rate of 5%.
Sales of equipment to manufacture fuel cell materials had decreased and the growth of this market was not expected. Basedon these circumstances, as continuous loss hereafter was expected, a loss on impairment in the amount of ¥296 million ($2,463
thousand) was recognized on equipment which was used to manufacture fuel cell materials in Saga Prefecture. Accordingly,
the Company has written down such assets to their respective net recoverable amounts. The net recoverable amounts of these
impaired assets were measured at value in use based on estimated future cash ﬂows discounted at a rate of 5%.
For the year ended March 31, 2014, market value of equipment used to manufacture polymers for concrete admixture in at
a plant in China had decreased signiﬁcantly in line with decrease in market demand, and a loss on impairment of property andequipment was recognized. Accordingly, the Company has written down such assets to their respective net recoverable amounts.
The net recoverable amounts of these impaired assets were measured at net selling value in the amount of ¥394 million.
Details of the loss on impairment of property, plant and equipment for the years ended March 31, 2015 and 2014 aresummarized as follows:
2015
Company

Application

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

Kawasaki Plant(Kanagawa Prefecture)

Equipment to manufacture
polymer for lithium-ion
Buildings and structures,
batteries
machinery and equipment¥181$1,506

Saga Prefecture

Equipment to manufacture
fuel cell materials
Machinery and equipment

296

2,463

¥477

$3,969Total

2014
Company

Nisshoku Chemical
Industry Co., Ltd.
Total

Application

Classiﬁcation(Millions of yen)Equipment to manufacture Machinery and equipment,
polymers for concrete
construction in progress,
admixturebuildings and structures

¥394
¥

394

35

36

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 20157.

Short-Term Bank Loans, Long-Term Debt and Lease Obligations
Short-term bank loans consisted mainly of unsecured loans. The average interest rates on short-term bank loans outstanding at
March 31, 2015 and 2014 were 0.57% and 0.67%, respectively.
Long-term debt and lease obligations at March 31, 2015 and 2014 consisted of the following:
2015
2014
2015
(Thousands of
U.S. dollars)(Millions of yenn)

Unsecured bonds payable in Japanese yen, at rate of 1.66%, due
through 2014 …………………………………………………………

¥

–

¥

10,000$–Unsecured loans from banks and insurance companies, payable inJapanese yen, at rates from 0.36% to 1.09%, due through 2021 …

19,304

15,337

160,639

Unsecured loans from banks, payable in U.S. dollars, at rates
from 0.57% to 1.52%, due through 2020 ……………………………

25,24025,294210,036

51
177
44,772(7,713)37,059113
205
50,949(18,058)
32,891424
1,473
372,572(64,184)
308,388

Secured loans from banks, payable in Japanese yen, at rates from
1.24% to 1.25%, due through 2016 …………………………………
Lease obligations ……………………………………………………

Subtotal ………………………………………………………………

Less current portion …………………………………………………

Total …………………………………………………………………

¥¥

The aggregate annual maturities of long-term debt subsequent to March 31, 2015 are summarized below:
Year ending March 31,
2016 …………………………………………………………………

(Millions of yen)¥2017 …………………………………………………………………
2018 …………………………………………………………………
2019 …………………………………………………………………
2020 and thereafter …………………………………………………

¥

7,685
8,359
11,822
4,720
12,00944,595(Thousands of
U.S. dollars)$$

63,951
69,56098,37739,27899,933371,099

The aggregate annual maturities of lease obligations to March 31, 2015 are summarized below:
Year ending March 31,
2016 …………………………………………………………………

(Millions of yen)¥2017 …………………………………………………………………
2018 …………………………………………………………………
2019 …………………………………………………………………
2020 and thereafter …………………………………………………

¥

28
29
29
30
61
177

(Thousands of
U.S. dollars)

$

$

233
241
241
250
508
1,473

$

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Assets pledged as collateral for short-term bank loans, long-term debt, including the current portion thereof, and notes andaccounts payable at March 31, 2015 and 2014 were as follows:
2015
2014
2015

Time deposits ………………………………………………………

¥

Land …………………………………………………………………
Buildings and structures ……………………………………………
Machinery and equipment …………………………………………

Other assets …………………………………………………………

Total …………………………………………………………………

8.

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

¥

–
526
73
188
13
800

¥

¥

8
533
102
199
4
846

$

$

–
4,377
607
1,564
109
6,657

Retirement Beneﬁts
Outline of Retirement Beneﬁt Plan
Employees of the Company and consolidated subsidiaries are mainly covered by funded and unfunded deﬁned beneﬁt plans anddeﬁned contribution pension plans to provide for retirement beneﬁts. In funded deﬁned beneﬁt corporate pension plans, lumpsum payments or pensions at retirement based on salary and length of service are paid. In unfunded lump-sum payments plan,
lump-sum payments based on salary and length of service are paid as retirement beneﬁts. However, the Company has a cash
balance plan for a deﬁned beneﬁt corporate pension plan and a retirement lump-sum plan. Under the cash balance plan, eacheligible employee has a hypothetical account, which is equivalent to the funded amount as the basis for the pension payment. The
hypothetical accounts accumulate contribution credits based on salary level and interest credits based on market interest trends.
Certain deﬁned beneﬁt corporate pension plans adopt an employeesʼ retirement beneﬁt trust. During the year ended
March 31, 2014, the Company contributed all assets in the employeesʼ retirement beneﬁt trust to the corporate pension fund andcancelled the employeesʼ retirement beneﬁt of the Company since the objective of the trust was achieved.
Certain consolidated subsidiaries calculate the retirement beneﬁt obligations, retirement beneﬁt assets and retirement
beneﬁt expenses for their deﬁned beneﬁt corporate pension plans and lump-sum payments plans based on the amount which
would be payable at the year-end if all eligible employees terminated their services voluntarily (“the simpliﬁed method”).
Certain consolidated subsidiaries participate in a multi-employer pension plan. Since the portion of pension assets of theconsolidated subsidiaries held in the multi-employer pension plan could not be reasonably calculated, the required contribution
amount is recognized as retirement beneﬁt expense.
Information on deﬁned beneﬁt pension plans for the years ended March 31, 2015 and 2014 is as follows:
The change in retirement beneﬁt obligation is outlined as follows (excluding plans to which the simpliﬁed method is applied):
2015
2014
2015

Balance at the beginning of the year, as originally reported ……

¥

Cumulative effect of change in accounting principle ………………

Balance at the beginning of the year, as adjusted …………………

Service cost …………………………………………………………

Interest cost …………………………………………………………
Actuarial loss …………………………………………………………

Beneﬁts paid …………………………………………………………

Prior service cost ……………………………………………………
Other …………………………………………………………………

Balance at the end of the year ………………………………………

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

32,353135
32,488
1,528
593
3,673
(1,884)3
11
36,412¥¥32,096–32,0961,362
613
29(1,828)87(6)32,353$$

269,227
1,123
270,350
12,715
4,935
30,565(15,678)25
92
303,004

37

38

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

The change in plan assets at fair value is outlined as follows (excluding plans to which the simpliﬁed method is applied):
2015
2014
2015

Balance at the beginning of the year ………………………………

¥Expected return on plan assets ……………………………………

Actuarial gain…………………………………………………………
Contributions by the employer………………………………………

Beneﬁts paid …………………………………………………………

Balance at the end of the year ………………………………………

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

25,074
717
4,479
2,002
(1,150)31,122¥¥

23,693
658
759
1,149
(1,185)25,074The change in liabilities for retirement beneﬁts calculated by the simpliﬁed method is outlined as follows:
2015
2014

Balance at the beginning of the year ………………………………
Retirement beneﬁt expenses ………………………………………
Beneﬁts paid …………………………………………………………

Other …………………………………………………………………

Balance at the end of the year ………………………………………

¥

1,015
55
(21)
(61)
988

$

208,654
5,967
37,272
16,660(9,570)258,9832015(Thousands of
U.S. dollars)(Millions of yen)

¥

$

¥

¥

1,097
84
(108)
(58)
1,015

$

8,446
458
(175)
(507)
8,222

$

The reconciliation of the ending balance of the retirement beneﬁt obligation and plan assets to the asset and liability for
retirement beneﬁts recognized in the consolidated balance sheets were as follows:
2015
2014
2015

Funded retirement beneﬁt obligation ………………………………

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

Unfunded retirement beneﬁt obligation ……………………………

26,790(31,977)(5,187)
11,466

Net amount of liabilities and assets recognized in consolidatedbalance sheets ………………………………………………………

6,279

8,293

52,251

11,755(5,476)

10,800(2,507)

97,820(45,569)

Plan assets at fair value ……………………………………………

Liability for retirement beneﬁts ……………………………………

Asset for retirement beneﬁts ………………………………………

Net amount of liabilities and assets recognized in consolidatedbalance sheets ………………………………………………………

¥

6,279

Retirement beneﬁt calculated by the simpliﬁed method is included in the above table.

¥¥

23,792(25,847)(2,055)
10,348

8,293

$

$

222,934(266,098)(43,164)
95,41552,251

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

The components of retirement beneﬁt expenses are outlined as follows:2015

Service cost …………………………………………………………

¥Expected return on plan assets ……………………………………
Amortization:
Actuarial loss ………………………………………………………

Past service cost……………………………………………………
Retirement beneﬁt expenses calculated by simpliﬁed method

¥

1,528
593
(717)

(Thousands of
U.S. dollars)

¥

549
40
55
2,048

Corporate Data

2015

2014
(Millions of yen)Interest cost …………………………………………………………

Retirement beneﬁt expenses ………………………………………

Financial
Statements

¥

1,362
613
(658)
224
17
84
1,642

$

$

12,715
4,935(5,967)
4,569
333
458
17,043

Loss on cancellation of the employeesʼ retirement beneﬁt trust of ¥414 million is not included in the above table and was recordeda loss in the consolidated statement of income for the year ended March 31, 2014.
The components of retirement beneﬁts liability adjustments included in other comprehensive income, before the tax effect, areoutlined as follows:
2015

Prior service cost ……………………………………………………

(Millions of yen)¥

Actuarial loss …………………………………………………………

Total …………………………………………………………………

¥(Thousands of
U.S. dollars)

37
1,355
1,392

$
$

308
11,276
11,584The information on the above table for the year ended March 31, 2014 was omitted as disclosure is not required under the
Financial Instruments and Exchange Act of Japan.
The components of retirement beneﬁt liability adjustments included in accumulated other comprehensive income, before the tax
effect, are outlined as follows:
2015
2014
2015
(Thousands of
U.S. dollars)(Millions of yen)

Unrecognized past service cost ……………………………………

¥Total …………………………………………………………………

¥Unrecognized actuarial loss …………………………………………

46
(111)
(65)

¥
¥

84
1,243
1,327

$
$

383
(924)
(541)

39

40

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

The breakdown of plan assets by major category is as follows:
2015
Bonds …………………………………………………………………

2014
40%
32%
0%
12%
16%
100%

Equities ………………………………………………………………
General accounts ……………………………………………………
Cash and deposits ……………………………………………………

Other …………………………………………………………………
Total …………………………………………………………………

44%
35%
2%
2%
17%
100%

(Note) The breakdown of plan assets in the above table is determined based on the percentage of composition of the various
assets in the pension fund. Bonds include alternative investments that are approximately the same as bonds in terms oflevel of risk.
(Note) For the year ended March 31, 2015, “Cash and deposits,” which was included in “Other” for the year ended March 31,
2014, is separately presented because it has become material. Cash and deposits was previously combined with other.
(Note) 0.4% of pension assets are part of a retirement beneﬁt trust for a corporate pension plan.
The expected long-term rate of return on plan assets is determined as a result of consideration of both the portfolio allocation atpresent and in the future, and long-term expected rates of return from multiple plan assets at present and in the future.
The assumptions used in accounting for the deﬁned beneﬁt plans for the year ended March 31, 2015 and 2014 are as follows:
2015
2014
Principally 1.9%
Discount rates ……………………………………………………… Principally 1.1%
Principally 3.0%
Expected long-term rate of return on plan assets ……………… Principally 3.0%
Principally 5.2%
Rates of salary increase …………………………………………… Principally 5.2%
The required contributions to deﬁned contribution pension plans for the years ended March 31, 2015 and 2014 amounted to ¥201
million ($1,673 thousand) and ¥219 million, respectively.
The following table sets forth the status of the multi-employer pension plan at March 31, 2014 and 2013, the most recent date on
which such data was available:
2014
2013
2014
(Thousands of
U.S. dollars)(Millions of yen)

Plan assets……………………………………………………………

¥

512,489¥522,290(9,801)

Total amounts of actuarial liability calculated under pension
ﬁnancing and minimum actuarial reserve …………………………

Difference ……………………………………………………………

¥

465,230$ 4,264,700¥

497,125(31,895)

4,346,259$(81,559)(Note) “Total amounts of actuarial liability calculated under pension ﬁnancing and minimum actuarial reserve” was stated as“Beneﬁt obligation calculated under pension ﬁnancing” at March 31, 2014.
The contribution ratio of the Company and consolidated subsidiaries to the multi-employer plan was 0.5% at March 31, 2015 and2014. This percentage is not the same as the Company and consolidated subsidiariesʼ percentage of obligation.

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Additional information
The difference of ¥9,801 million ($81,559 thousand) in the above table is the net amount of the balance of prior service costof ¥45,242 million ($376,483 thousand) calculated under pension ﬁnancing, the general reserve of ¥17,618 million ($146,609
thousand) and the surplus of the plan of ¥17,823 million ($148,315 thousand) at March 31, 2014. Prior service cost is amortizedon a straight-line basis over 8 years as of March 31, 2014, and the Company and consolidated subsidiaries expensed additional
payments in the amount of ¥28 million ($233 thousand) for amortization of prior service cost.
The difference of ¥31,895 million in the above table was the net amount of the balance of prior service cost of ¥49,514 million
calculated under pension ﬁnancing and the surplus of the plan of ¥17,618 million at March 31, 2013. Prior service cost wasamortized on a straight-line basis over 9 years as of April 1, 2013, and the Company and consolidated subsidiaries expensed
additional payments in the amount of ¥28 million for amortization of prior service cost.
9.

Income Taxes
Income taxes applicable to the Company and its domestic consolidated subsidiaries consist of corporation, inhabitantsʼ
and enterprise taxes. The statutory tax rates in Japan for the years ended March 31, 2015 and 2014 were, in the aggregate,approximately 35.6% and 38.0%, respectively.
The effective tax rates reﬂected in the accompanying consolidated statements of income for the years ended March 31, 2015
and 2014 differed from the above statutory tax rates for the following reasons:
2015
2014
35.6 %
38.0 %
Statutory tax rates……………………………………………………
Effect of:Valuation allowance ………………………………………………

Different tax rate applicable to income of subsidiaries …………

Tax credit for research and development costs …………………

Equity in earnings of an unconsolidated subsidiary and afﬁliates
Foreign tax credit …………………………………………………
Decrease in deferred income tax assets resulting from change
in the statutory tax rates …………………………………………

Other, net …………………………………………………………

Effective tax rates ……………………………………………………

2.2
(4.2)
(2.9)
(1.5)
(0.1)

5.3
(4.2)
(5.8)
(2.6)
(0.4)

1.7
3.6
34.4 %

1.5
0.2
32.0 %41

42

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Deferred income taxes reﬂect the net tax effect of the temporary differences between the carrying amounts of the assets andliabilities calculated for ﬁnancial reporting purposes and the corresponding tax bases reported for income tax purposes. The
signiﬁcant components of the deferred tax assets and liabilities of the Company and its consolidated subsidiaries at March 31,
2015 and 2014 are summarized as follows:
2015
2014
2015
(Thousands of
U.S. dollars)(Millions of yen)

Deferred tax assets:
Depreciation and amortization (including
loss on impairment) ………………………………………………

¥

Liability for retirement beneﬁts for employees …………………

Tax loss carryforwards ……………………………………………

Intercompany proﬁt on inventories and property, plant andequipment …………………………………………………………

Accrued bonuses to employees …………………………………
Loss on impairment of land ………………………………………

Reserve for periodic repairs ………………………………………
Impairment of investments in securities and other ……………

Other ………………………………………………………………

Gross deferred tax assets …………………………………………
Less: Valuation allowance …………………………………………

Total deferred tax assets ……………………………………………
Deferred tax liabilities:
Net unrealized holding gain on securities ………………………
Equity in earnings of an overseas consolidated subsidiary ……

Deferred capital gain on property (in overseas subsidiaries) …
Depreciation and amortization ……………………………………

Reserve for depreciation for tax purposes ………………………
Other ………………………………………………………………

Total deferred tax liabilities …………………………………………

Net deferred tax assets ……………………………………………

¥

2,249
2,179
5,097

¥

2,733
2,508
3,709

$

18,715
18,13342,415

1,525
960
961
821
683
1,810
16,285(5,647)
10,638

1,440
903
1,042
1,013
421
2,702
16,471(5,006)
11,465

12,690
7,989
7,997
6,832
5,684
15,062
135,517(46,992)
88,525(4,363)(1,156)
(288)
(996)
(8)
(1,733)(8,544)2,094(2,052)(1,130)
(320)
(291)
(11)
(1,110)(4,914)
6,551(36,307)(9,620)(2,397)(8,288)(67)(14,421)(71,100)
17,425¥$The “Act for Partial Amendment of the Income Tax Act, etc.” (Act No.9 of 2015) and the “Act for Partial Amendment of the
Local Tax Act, etc.” (Act No.2 of 2015) were promulgated on March 31, 2015. As a result, the effective statutory tax rate used tomeasure the Companyʼs deferred tax assets and liabilities was changed from 35.6% to 33.0% for temporary differences expected
to be realized or settled in the period from April 1, 2015 to March 31, 2016 and to 32.2% for the temporary differences expected tobe realized or settled on April 1, 2016 or thereafter. The effect of the announced reduction of the effective statutory tax rate wasto decrease deferred tax assets, after offsetting deferred tax liabilities, by ¥46 million ($383 thousand), net retirement beneﬁts
liability adjustments by ¥2 million ($17 thousand) and increase income taxes-deferred by ¥504 million ($4,194 thousand), unrealized
holding gain on securities by ¥458 million ($3,811 thousand) and unrealized gain on hedges by ¥1 million ($8 thousand) as of andfor the year ended March 31, 2015.

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

10. Shareholdersʼ Equity
The Corporation Law of Japan (the “Law”) provides that an amount equal to 10% of the amount to be disbursed as distributions ofcapital surplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capitalreserve and the legal reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the capitalstock account. Such distributions can be made at any time by resolution of the shareholders, or by the Board of Directors if
certain conditions are met.
Retained earnings include the legal reserve provided in accordance with the provisions of the Law. The legal reserve of theCompany included in retained earnings amounted to ¥3,920 million ($32,620 thousand) at March 31, 2015 and 2014.
Common stock and treasury stock
Movements in shares of common stock in issue and treasury stock during the years ended March 31, 2015 and 2014 aresummarized as follows:
2015
Number of shares(Thousands)

Common stock …………
Treasury stock …………

April 1, 2014

Increase

Decrease

March 31, 2015

204,000
1,033

–
23

–
–

204,000
1,056

2014
Number of shares(Thousands)

Common stock …………

Treasury stock …………

April 1, 2013

Increase

Decrease

March 31, 2014

204,000
1,010

–
25

–
2

204,000
1,033

11. Research and Development Costs
Research and development costs included in cost of sales and selling, general and administrative expenses for the years ended
March 31, 2015 and 2014 totaled ¥11,948 million ($99,426 thousand) and ¥11,161 million, respectively.
12. Gain on Insurance Claims
During the year ended March 31, 2014, the Company received insurance proceeds in the amount of ¥9,179 million related to the
explosion and ﬁre at the Himeji Plant on September 29, 2012.
13. Loss on Explosion and Fire Accident
Loss on explosion and ﬁre accident for the years ended March 31, 2014 in the amount of ¥8,323 million is mainly plant ﬁxed costs
due to business suspension resulting from the explosion and ﬁre at the Himeji Plant on September 29, 2012.
14. Loss on Discontinued Operations
For the year ended March 31, 2015, the Company recorded a loss on discontinued operations due to termination of the
manufacturing business of resins for adhesives and paints in the Suita Factory. The main component is removal cost of ﬁxed
assets.
For the year ended March 31, 2014, the Company recorded a loss on discontinued operations and near infrared radiation
blocking materials industry in the Himeji Plant and the Suita Factory.

43

44

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

15. Other Comprehensive Income
The following table presents reclassiﬁcation adjustments and tax effects of components of other comprehensive income for theyears ended March 31, 2015 and 2014:
2015
2014
2015

Net unrealized holding gain (loss) on securities:
Amount arising during the year …………………………………

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

Reclassiﬁcation adjustments ……………………………………

Before tax effects …………………………………………………

Tax effects …………………………………………………………

Net unrealized holding gain on securities ………………………

Net unrealized deferred gain (loss) on hedges:
Amount arising during the year …………………………………

Tax effects …………………………………………………………

Net deferred gain on hedges ………………………………………
Translation adjustments:
Amount arising during the year …………………………………
Reclassiﬁcation adjustments ……………………………………

Translation adjustments …………………………………………

Retirement beneﬁts liability adjustments:
Amount arising during the year …………………………………

Reclassiﬁcation adjustments ……………………………………

Before tax effects …………………………………………………

Tax effects …………………………………………………………

Retirement beneﬁts liability adjustments ………………………

8,944
(422)
8,522
(2,311)
6,211

¥

2,343
–
2,343
(741)
1,602

$

74,428(3,512)
70,916(19,231)
51,685

26
(8)
18

12
(4)
8

217
(66)
151

5,786
(0)
5,786

10,736–
10,73648,148(0)
48,148

803
589
1,392
(474)
918

–
–
–
–
–

6,682
4,901
11,583(3,944)
7,639

1,044
14

2,301
–

8,687
117

Share of other comprehensive income of an unconsolidated
subsidiary and afﬁliates accounted for by the equity method:Amount arising during the year …………………………………

Reclassiﬁcation adjustments ……………………………………
Share of other comprehensive income of an unconsolidated
subsidiary and afﬁliates accounted for by the equity method …

Total other comprehensive income …………………………………

¥

1,058
13,991¥

2,301
14,647$

8,804
116,427

16. Lease
The following pro forma amounts represent the acquisition cost, accumulated depreciation and net book value of property leased
to the Company and its domestic consolidated subsidiaries at March 31, 2015 and 2014 which would have been reﬂected in theaccompanying consolidated balance sheets if ﬁnance leases, other than those which transfer the ownership of the leased assets
to the Company or its domestic consolidated subsidiaries, that started on or before March 31, 2008 (which are currently accounted
for as operating leases) had been capitalized:
2015
2014
2015
(Thousands of
U.S. dollars)(Millions of yen)Equipment:
Acquisition costs ……………………………………………………

¥

Net book value ……………………………………………………

¥

Accumulated depreciation/amortization …………………………

532
(386)
146

¥
¥

564
(361)
203

$
$

4,427
(3,212)
1,215

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Management
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

Lease payments of the Company and its domestic consolidated subsidiaries relating to ﬁnance leases amounted to ¥57 million($474 thousand) and ¥59 million for the years ended March 31, 2015 and 2014, respectively. Depreciation on these leased assets
calculated by the straight-line method would have amounted to ¥57 million ($474 thousand) and ¥59 million for the years ended
March 31, 2015 and 2014, respectively, if it had been reﬂected in the accompanying consolidated balance sheet.
Future minimum lease payments (including the interest portion thereon) subsequent to March 31, 2015 under ﬁnance leasetransactions, other than those which transfer the ownership of the leased assets to the Company or its domestic consolidated
subsidiaries, that were entered into on or before March 31, 2008 are summarized as follows:Year ending March 31,
2016(Thousands of
U.S. dollars)(Millions of yen)

¥

54
92
146

2017 and thereafter

¥

$

449
766
1,215

$

17. Contingent Liabilities
The Company and a consolidated subsidiary were contingently liable as guarantors of indebtedness of an afﬁliate at March 31,
2015 and 2014 as follows:
2015
2014
2015

American Acryl L.P. …………………………………………………

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

¥

2,308
1,154

Re-guaranteed by Arkema Delaware Inc. …………………………

¥

1,977
988

$

19,206
9,603

Two consolidated subsidiaries had contingent liabilities arising from notes discounted with banks and notes endorsed at March
31, 2015 and 2014 as follows:
2015
2014
2015

Notes discounted with banks ………………………………………

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

¥

476
0

Notes endorsed ………………………………………………………

¥261
3

$

3,961
0

18. Amounts per Share2015
Net income ……………………………………………………………
Cash dividends ………………………………………………………

Net assets ……………………………………………………………

2014
(Yen)

¥

94.06
24.00
1,307.13

2015(U.S. dollars)

¥

51.74
16.00
1,164.10

$

0.78
0.20
10.88

Net income per share has been computed based on the net income available to shareholders of common stock and the weightedaverage number of shares of common stock outstanding during the year. Diluted net income per share has not been presented
for the years ended March 31, 2015 and 2014 since neither the Company nor any of the consolidated subsidiaries had any
potentially dilutive shares at March 31, 2015 and 2014.
The amounts per share of net assets have been computed based on the number of shares of common stock outstanding at
the year end.
Cash dividends per share represent the cash dividends declared as applicable to the respective years together with theinterim cash dividends paid.
The ﬁnancial data used in the computation of net income per share for the years ended March 31, 2015 and 2014 issummarized as follows:

45

46

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

2015

2015

2014

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

Net income ……………………………………………………………

¥Adjusted net income available to shareholders of common stock¥

19,089–19,089Deductions from net income ………………………………………
Weighted-average number of shares of common stock outstanding
during the year (thousands of shares ) ……………………………

¥¥

202,954$

10,503–
10,503$

158,850–
158,850

202,981

19. Derivatives(1) Derivative transactions to which hedge accounting is not applied
There were no derivative transactions to which hedge accounting was not applied as of March 31, 2015 and 2014.
(2) Derivative transactions to which hedge accounting is applied
The estimated fair value of the derivatives positions outstanding which qualify for deferral hedge accounting as of March 31,
2015 and 2014 are summarized as follows:
Currency-related transactions
Millions of yen

2015
Contract value
Method of hedge
accounting
Deferral hedge

Allocation method

Transaction

Major hedged item

Maturing within
one year

Maturing after
one year

Fair value

Forward foreign currency
exchange contracts:
Buy

Accounts payable, trade

¥

¥

¥

222

–

40

Forward foreign currency
exchange contracts:
Sell

Accounts receivable,
trade

Buy

Accounts payable, trade

9,722
25

(*)
(*)

–
–

Millions of yen

2014
Contract value
Method of hedge
accounting
Deferral hedge

Allocation method

Transaction

Major hedged item

Maturing within
one year

Maturing after
one year

Fair value

Forward foreign currency
exchange contracts:
Buy

Accounts payable, trade

¥

¥

¥

312

–

14

Forward foreign currency
exchange contracts:
Sell

Accounts receivable,
trade

Buy

Accounts payable, trade

8,334
26

–
–

(*)
(*)

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Management
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

Thousands of U.S. dollars

2015
Contract value
Method of hedge
accounting
Deferral hedge

Allocation method

Transaction

Major hedged item

Maturing within
one year

Forward foreign currency
exchange contracts:
Buy

Accounts payable, trade$ 1,847

Maturing after
one year

Fair value

$

$

–

333

Forward foreign currency
exchange contracts:
Sell

Accounts receivable,
trade

Buy

Accounts payable, trade

80,902
208

(*)
(*)

–
–

Fair value of forward foreign currency exchange contracts is computed using prices provided by counterparty ﬁnancial institutions.
(*) Fair value of forward foreign currency exchange contracts under the allocation method is included in accounts receivable,
trade or accounts payable, trade.
Interest-rate related transactions
Millions of yen

2015
Contract value
Method of hedge
accounting
Swap rates applied tounderlying debt

Transaction
Interest rate swaps:
Receive / ﬂoating and pay/ ﬁxedMajor hedged item
Long-term debt,
including current
portionNotional
amount¥5,000

More than one
year

¥

5,000

Fair value(*)

Millions of yen

2014
Contract value
Method of hedge
accounting
Swap rates applied tounderlying debt

Transaction
Interest rate swaps:
Receive / ﬂoating and pay/ ﬁxedMajor hedged item
Long-term debt,
including current
portionNotional
amount¥5,000

More than one
year

¥

5,000

Fair value

(*)

47

48

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Thousands of U.S. dollars

2015
Contract value
Method of hedge
accounting
Swap rates applied tounderlying debt

Transaction
Interest rate swaps:
Receive / ﬂoating and pay/ ﬁxedMajor hedged item
Long-term debt,
including current
portionNotional
amount$ 41,608

More than one
year

Fair value$ 41,608(*)(*) Because interest rate swap agreements are accounted for by applying swap rates to underlying long-term debt, their fairvalue is included in that of the long-term debt disclosed in Note 3.
20. Segment Information(1) Outline of reporting segments
The Groupʼs reporting segments are divisions of the Group for which separate ﬁnancial information is available, and whose
operating results are reviewed regularly by the Board of Directors meeting of the Company in order to allocate management
resources and assess performance of operations.
The Groupʼs main business lines are divided based on similarities of function and nature and the Company prepares thecomprehensive strategy and conducts the business activities corresponding to the products handled by each business line.
Accordingly, the Group has three reporting segments based on product family: Basic chemicals, Functional chemicals, andEnvironment and catalysts.
Basic chemicals:
Acrylic acids, acrylic ester, ethylene oxides, ethylene glycols, ethanolamine, higher-alcohol and glycol ether
Functional chemicals:Superabsorbent polymers, pharmaceutical intermediates, polymer for concrete admixture, electronic and information materials,
iodine, maleic anhydride, resins for adhesives and paints, plastic molded products and process adhesive products
Environment and catalysts:
Automotive catalysts, De-NOx catalysts, dioxin decomposition catalysts, industrial catalysts, exhaust gas treatment equipment
and fuel cell material(2) Calculation methods used for sales, income or loss, assets, and other items on each reporting segment.
The accounting policies of the segments are substantially the same as those described in the signiﬁcant accounting policies inNote 1. Intersegment sales and transfers are recorded at the same prices used in transactions with third parties.

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Management
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

(3) Information as to sales, income or loss, assets, and other items on each reporting segment
The segment information of the Company and its consolidated subsidiaries for the years ended March 31, 2015 and 2014 isoutlined as follows:Year ended March 31, 2015
Basic
chemicals

Functional
chemicals

Environmentand catalysts

¥

¥

¥

Total

Adjustments
andeliminations

Consolidated(Millions of yen)

Depreciation and amortization

147,976
44,032
192,008
7,820
149,225
9,469

Increases in property, plant andequipment and other assets

7,358

Sales to third parties
Intragroup sales and transfers
Net sales
Segment income¥¥

Segment assets¥¥

200,966
5,312
206,278
17,286
205,794
9,439

¥
¥

5,762

25,931
2,308
28,2391,277
26,111
602¥¥¥

374,873
51,652426,525
26,383381,130
19,510518¥¥¥

13,638–(51,652)(51,652)(250)
38,504–¥¥¥–

374,873–
374,873
26,133419,634
19,51013,638Year ended March 31, 2014
Basic
chemicals

Functional
chemicals

Environmentand catalysts

¥

¥

¥

Total

Adjustments
andeliminations

Consolidated(Millions of yen)

Depreciation and amortization

129,842
24,632
154,474
3,250
149,880
9,156

Increases in property, plant andequipment and other assets

12,157

Sales to third parties
Intragroup sales and transfers
Net sales
Segment income
Segment assets

¥
¥

¥
¥

146,857
2,980
149,837
8,239
189,052
7,934¥¥

13,72425,437626
26,0632,044
26,010
554
228

¥
¥
¥

302,136
28,238330,374
13,533364,942
17,644¥¥¥

26,109–(28,238)(28,238)
219
33,454––¥¥¥

302,136–
302,136
13,752
398,396
17,644
26,109Year ended March 31, 2015
Basic
chemicals

Functional
chemicals

Environmentand catalysts

Total

Adjustments
andeliminations

Consolidated(Thousands of U.S. dollars)

Depreciation and amortization$ 1,231,389
366,414$ 1,597,803$
65,074
1,241,782
78,797$ 1,672,347
44,204$ 1,716,551$ 143,846
1,712,524
78,547

Increases in property, plant andequipment and other assets

61,23047,949

Sales to third parties
Intragroup sales and transfers
Net sales
Segment income
Segment assets$$$

215,786
19,206234,992
10,627217,284
5,009$ 3,119,522
429,824$ 3,549,346$ 219,547
3,171,590
162,353

4,310

113,489$–(429,824)$ (429,824)$(2,080)320,413–$ 3,119,522–$ 3,119,522$217,467
3,492,003
162,353–

113,489

49

50

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Note:

The adjustments in segment income are related to the elimination between inter segment transactions. The
adjustments in segment assets consist of inter segment elimination and the common properties of the group. The
common properties are the investments held by the Company, mainly cash and cash equivalents, and investments
in securities.

Note:

The amount of long-term prepaid expense and its amortized cost are included in increases in property, plant andequipment and other assets.

(4) Related information
Geographical information
1) SalesSales categorized by countries and regions based on locations of customers of the Group for the years ended March 31, 2015
and 2014 are summarized as follows:
Millions of yen

2015
Japan

¥

Asia

182,709¥

Europe81,155¥

Americas52,634¥

Other

39,724¥

Total

18,651¥

374,873

Millions of yen

2014
Japan

¥

Asia

159,211¥

Europe62,328¥Americas35,659¥Other

28,277¥

Total

16,661¥

302,136

Thousands of U.S. dollars

2015
Japan

$

Asia

1,520,421$

Europe675,335$

Americas437,996$

Other

330,565$

Total

155,205$

3,119,522“Asia” includes east and south-east Asia. “Americas” includes U.S.A. and Canada. “Other” includes areas except for Asia,
Europe, North America and Japan.
2)

Property, plant and equipment
Property, plant and equipment categorized by countries and regions as of March 31, 2015 and 2014 is summarized as follow:
Millions of yen

2015
Japan

¥

Asia

100,802¥

Europe33,237

Other

¥

4,055

¥

Total

11,553¥

149,647

Millions of yen

2014
Japan

¥

Asia

104,152¥

Europe32,623

¥

Other

4,373

¥

Total

10,990¥96,139$152,138

Thousands of U.S. dollars

2015
Japan

$

Asia

838,828$

Europe276,583$

Other

33,744$

Total

1,245,294

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Management
Discussion
and Analysis ofOperation

Ten-Years
Summary

Financial
Statements

Corporate Data

(5) Information about loss on impairment
Millions of yen

2015
Reporting segments
Functional
chemicals

Basic chemicals
Loss onimpairment ………

¥

–

¥

Adjustments
andeliminations

Environment andcatalysts

–

¥

477

¥

Total

–

¥

477

Millions of yen

2014
Reporting segments
Functional
chemicals

Basic chemicals
Loss onimpairment ………

¥

–

¥

Adjustments
andeliminations

Environment andcatalysts

394

¥

–

Total

¥

–

¥

394

Thousands of U.S. dollars

2015
Reporting segments
Functional
chemicals

Basic chemicals
Loss onimpairment ………

$

–

$

Environment andcatalysts

–

$

3,969

Adjustments
andeliminations

$

Total

–

$

3,969

21. Related Party Transactions
Principal transactions between the Company and its related party for the years ended March 31, 2015 and 2014 are summarized
as follows:
2015
2014
2015
(Thousands of
U.S. dollars)(Millions of yen)

Umicore Shokubai Co., Ltd.:Sales of ﬁnished goods ………………………………………………

¥Purchases of raw materials …………………………………………

18,242
16,146¥The balances due from and to its related party at March 31, 2015 and 2014 were as follows:
2015

15,326
13,159$151,802134,360

2015

2014

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

Umicore Shokubai Co., Ltd.:
Notes and accounts receivable ………………………………………
Notes and accounts payable …………………………………………

¥

6,684
4,079

¥

5,593
3,678

The prices for the above related party transactions were determined in reference to market value and cost.
Umicore Shokubai Co., Ltd. is a related company in which the Company indirectly owns 40% of the shares.

$

55,621
33,94451

52

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 201522. Subsequent Event
The following distribution of retained earnings of the Company, which has not been reﬂected in the accompanying consolidated
ﬁnancial statements for the year ended March 31, 2015, was approved at a shareholdersʼ meeting held on June 19, 2015:

Cash dividends (¥13.00 = $0.108 per share) ……………………………………………………

(Millions of yen)

¥

2,638

(Thousands of
U.S. dollars)$

21,952

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

53

54

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Corporate Data

NIPPON SHOKUBAI CO., LTD. (As of March 31, 2015)
Established: August 21, 1941
Common Stock (Paid in Capital): 25,038 million yen
Number of Shares Issued: 204,000,000 shares
Number of Shares Authorized: 636,000,000 shares
Number of Employees: : 4,075 (Consolidated)
2,141 (Non-consolidated)
Markets listed: Tokyo Stock Exchange; Securities Code:4114;
ADR (The Bank of New York Mellon Bank);
Checker Symbol: NPSHY

Fiscal Year Ends: March 31
Auditors: Ernst & Young Shin Nihon LLC
Lead Managers (Securities): Nomura Securities Co., ltd.,
Mizuho Securities Co., Ltd.
Stock Transfer Agency: Mitsubishi UFJ Trust and Banking
Corporation
Banks: Resona Bank, Limited,
Mizuho Bank, Ltd.,The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Number of shareholders: 10,207

Organization Chart (As of April 1, 2015)

DivisionInternal Audit Office
Corporate Planning
Health & Medical Business
Planning Office
General Administration & Personnel
Purchasing & Logistics
Finance & Accounting
Information Technology
Management Office
Responsible Care
Production
The Board

President
Corporate Managing
Committee

Engineering
ResearchResearch Planning & Development
Ethylene Oxide BusinessAcrylic BusinessSuperabsorbents Business
Performance Chemicals Business
Catalysis & Green Energy
Materials Business
Kawasaki Plant
Himeji Plant

AuditorBoard of Auditors

Auditor OfficeConsolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

CSR Based on
Responsible
Care Concept

Governance
SystemTen-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

Major Shareholders (As of March 31, 2015)

Name

Sumitomo Chemical Company, Limited
Japan Trustee Services Bank, Ltd.
(Trust Account)
JX Holdings, Inc.
The Master Trust Bank of Japan, Ltd.
(Trust Account)
Resona Bank, Limited.
National Mutual Insurance Federation ofAgricultural Cooperatives
Sanyo Chemical Industries, Ltd.
Mizuho Bank, Ltd.
Toyo Ink SC Holdings Co., Ltd.
Sompo Japan Nipponkoa Insurance Inc.
(Note 1)
(Note 2)
(Note 3)

Number of Shares
Owned(thousand shares)

Ratio of capital
Contribution(%)

19,484

9.6

11,9895.910,645

5.24

10,204

5.02

6,867

3.38

6,540

3.22

6,338
4,744
4,522
2,781

3.12
2.33
2.22
1.37

Individuals, others,
10.5％

Financial
Institutions
36.0％

Stock Brokers
1.5％

Foreign
Institutions,
etc.
21.0％
Other Corporate
Shareholders
31.0％

Other than the above, the Company holds 1,056 thousand shares as treasury stock.
Treasury stock is excluded from the calculation for “Shareholding Ratio of the Total Shares Outstanding” above.
Figures in “Number of Shares Owned” and “Shareholding Ratio of the Total Shares Outstanding” are truncated.

Share Price and Turnover (April 2014- March 2015)
Share Price(¥)

1,900
1,800
1,700
1,600
1,500
1,400
1,300
1‚200
1‚100
Trading volume(thousand shares)

30‚00020‚00010‚000

0

4

2014

5

6

7

8

9

10

11

12

1

2015

2

3

55

56

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Subsidiaries & AfﬁliatesJapan
NIPPOH CHEMICALS CO., LTD.

Neo Kawai Bldg.,8-15,4-Chome,Nihonbashi-Honchou, Chuo-Ku, Tokyo 103-0023, Japan
TEL +81-3-3270-5341 FAX +81-3-3270-3401
Principle Business: Manufacture and sale of iodine, intermediates
for API and agro-chemicals, and photo/electro chemicals

CHUGOKU KAKO CO., LTD.

1575 Mizue, Kurashiki, Okayama 710-0802 Japan
TEL +81-86-465-3555 FAX +81-86-465-7843
Principle Business: Manufacture and sale of adhesive tape and ﬁne sphere particles

Nisshoku Butsuryu Co., Ltd.

6F Kogin Bldg., 4-1-1 Koraibashi, Chuo-ku, Osaka 541-0043 Japan
TEL +81-6-6202-5267 FAX +81-6-6233-2475
Principle Business: Logistics of chemicals

NIPPON NYUKAZAI CO., LTD.

4-1 Nihonbashi Kobuna-cho, Chuo-ku, Tokyo 103-0024 Japan
TEL +81-3-5651-5631 FAX +81-3-5651-5639
Principle Business: Manufacture and sale of surfactant and other chemicals

Tokyo Fine Chemical CO., LTD.

3F Bussan Bldg., 1-4-14 Nishi Shinbashi, Minato-ku, Tokyo 105-0003 Japan
TEL +81-3-3506-7666 FAX +81-3-3506-7671
Principle Business: Manufacture and sale of stabilizer of vinyl chloride resin and anti-freeze
9-1 Koutani Shinmachi, Ichikawa, Chiba 272-0011 Japan

NISSHOKU TECHNO FINE CHEMICAL CO., LTD. TEL +81-47-328-1185 FAX +81-47-328-1189(formerly NIHON JYORYU KOGYO CO., LTD) Principle Business: Manufacture and sale of polycyclic aromatic hydrocarbons, (meth)acrylic acidderivatives and photo/electro chemicals

NIPPON SHOKUBAI TRADING CO., LTD.

2F TT-1 Bldg., 1-14-8 Nihonbashi Ningyou-cho, Chuo-ku, Tokyo 103-0013 Japan
TEL +81-3-5695-4021 FAX +81-3-5695-4024
Principle Business: Sale of chemical products

NIPPON POLYMER IND. Co., Ltd.

2114 Okihama, Aboshi-ku, Himeji, Hyogo 671-1241 Japan
TEL +81-79-273-4121 FAX +81-79-273-4601
Principle Business: Manufacture and sale of acrylic emulsions

Japan Composite Co., Ltd.

3-2-13 Nihonbashi-Honcho, Chuo-ku, Tokyo 103-0023 Japan
TEL +81-3-3516-3002 FAX +81-3-3516-3090
Principle Business: Manufacture and sale of unsaturated polyester resins and plastic molded materials

Umicore Shokubai Japan Co. Ltd

1-25-19 Rinku-cho, Tokoname, Aichi 479-0882 Japan
TEL +81-569-38-7670 FAX +81-569-38-7678
Principle Business: Manufacture, R&D and sale of automotive catalysts

NS Green Co., Ltd.

992-1 Aza-Nishioki, Okihama, Aboshi-ku, Himeji, Hyogo 671-1241 Japan
TEL +81-79-273-4744 FAX +81-79-273-4744
Principle Business: Maintenance of green tract of land of plant site

NISSHOKU ENGINEERING SERVICE CO.,LTD.

992-1 Aza-Nishioki, Okihama, Aboshi-ku, Himeji, Hyogo 671-1241 Japan
TEL +81-79-272-0677 FAX +81-79-271-5188
Principle Business: Design, construction, repair and maintenance of production facilities

NIHON METHACRYL MONOMER CO. LTD.

Sumitomo Twin Bldg., 2-27-1 Shinkawa, Chuo-ku, Tokyo 104-0033 Japan
TEL +81-3-5543-5302 FAX +81-3-5543-5907
Principle Business: Manufacture and sale of MAA and MMA

Consolidated
Financial
Highlights

Messages fromPresident

Special Feature

Description ofBusiness

CATOX Co., Ltd.

Governance
SystemCSR Based on
Responsible
Care Concept

Ten-Years
Summary

Management
Discussion
and Analysis ofOperation

Financial
Statements

Corporate Data

1-46 Higashi Kaigan-cho, Amagasaki, Hyogo 660-0843 Japan
TEL +81-6-6409-1301 FAX +81-6-6409-1302
Principle Business: Development and sale of plant control systems

Overseas
NA Industries, Inc.

4631 Old Highway 146, Suite A, Pasadena, TX 77507, USA
TEL +1-832-284-4033
Principle Business: Manufacture and sale of superabsorbent polymers, polymers for concrete admixture
and water soluble polymers

SINGAPORE ACRYLIC PTE LTD

80 Robinson Road #18-02 Singapore 068898
TEL +65-6532-0078 FAX +65-6532-0079
Principle Business: Manufacture and sale of crude acrylic acid

PT.NIPPON SHOKUBAI INDONESIA

Kawasan Industri Panca Puri Jl. Raya Anyer Km. 122 Ciwandan, Cilegon 42447 Banten, Indonesia
TEL +62-254-600-660 FAX +62-254-600-657
Principle Business: Manufacture and sale of acrylic acid and acrylic esters

NIPPON SHOKUBAI (ASIA) PTE.LTD.

80 Robinson Road #18-02 Singapore 068898
TEL +65-6532-0078 FAX +65-6532-0079
Principle Business: Manufacture glacial acrylic acid, Sale of chemical products

NIPPON SHOKUBAI EUROPE N.V.

Haven 1053, Nieuwe Weg1, B-2070 Zwijndrecht, Belgium
TEL +32-3-250-3705 FAX +32-3-250-3712
Principle Business: Manufacture and sale of superabsorbent polymers

NISSHOKU CHEMICAL INDUSTRY(ZHANGJIAGANG) CO., LTD.

No.19 Changjiang Road (E),Yangtze River International Chemical Industrial Park, Zhangjiagang,
Jiangsu, China, 215635
TEL +86-512-5893-7910 FAX +86-512-5893-7912
Principle Business: Manufacture and sale of superabsorbent polymers, polymers for concrete admixture

SINO-JAPAN CHEMICAL CO.,LTD

14Fl, 99, Sec. 2, Jen Ai Rd., Taipei, Taiwan
TEL +886-2-2396-6223 FAX +886-2-2396-9076
Principle Business: Manufacture and sale of surfactant and other chemicals

LG MMA Corporation

27F One IFC, 10, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul 150-876, Korea
TEL+82-2-6930-3800 FAX +82-2-6930-3801
Principle Business: Manufacture and sale of MAA and PMMA

American Acryl NA,LLC
American Acryl L.P.

4631 Old Highway 146, Suite B, Pasadena, TX 77507, USA
Principle Business: Manufacture and sale of acrylic acid

Umicore Shokubai S.A.

L-4940, Bascharage, 5, rue Bommel, Luxembourg
Principle Business: Automotive catalyst

NISSHOKU TRADING (SHANGHAI) CO.,LTD

R/No.3604,The Center,989 Changle Road Shanghai, China, 200031
TEL +86-21-5407-5959 FAX +86-21-5407-5673
Principle Business: Sale of chemical products

NIPPON SHOKUBAI KOREA CO., LTD.

4F 26, Hwangsaeul-ro 200beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-Do, Korea, 463-825
TEL +82-31-718-9111 FAX +82-31-718-9693
Principle Business: Sale of E&I materials and chemical products

57

58

NIPPON SHOKUBAI CO., ltd
ANNUAL REPORT 2015

Directory
Management
Member of the Board, President
Masanori Ikeda ＊Member of the Board,
Senior Managing Executive Ofﬁcer
Yasuhito Nishii ＊Haruhisa Yamamoto
Member of the Board,
Managing Executive Ofﬁcer
Masao Yamamoto
Yojiro Takahashi
Yujiro Goto

Member of the Board
Koichi Miura
Takashi Sakai
Statutory Corporate Auditor
Taizo Maruo
Yoshihiro Arita
Kozo Arao
Kunimitsu Oba

Executive Ofﬁcer
Takumi Hatsuda
Kin-ya Nagasuna
Masaya Yoshida
Kazukiyo Arakawa
Teruo Kamei
Ren Hasebe

Managing Executive Ofﬁcer
Koichiro Yamada
Nobuyuki Harada* Representative

Company Outline
Business establishments
・Osaka Ofﬁce
Kogin Bldg., 4-1-1 Koraibashi, Chuoku, Osaka 541-0043 Japan
TEL +81-6-6223-9111
FAX +81-6-6201-3716
・Tokyo Ofﬁce
Hibiya Dai Bldg., 1-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011
Japan
TEL +81-3-3506-7475
FAX +81-3-3506-7598
・Kawasaki Plant and Kawasaki
Research Center[Chidori Plant]
14-1 Chidori-cho, Kawasaki-ku,
Kawasaki, Kanagawa 210-0865
Japan
TEL +81-44-288-7366[Ukishima Plant]
10-12 Ukishima-cho, Kawasakiku, Kawasaki, Kanagawa 210-0862
Japan
TEL +81-44-288-5715

Research Centers
・Himeji Plant and Himeji ResearchCenter992-1 Aza-Nishioki, Okihama,
Aboshi-ku, Himeji, Hyogo 671-1282
Japan
TEL +81-79-273-1131 (Plant)+81-79-273-1145(Research Center)
・Suita Research Center
5-8 Nishi Otabi-cho, Suita, Osaka
564-0034 Japan
TEL +81-6-6317-2202
・Tsukuba Research Center
1-25-12 Kannondai, Tsukuba, Ibaraki
305-0856 Japan
TEL +81-29-838-2561

・Strategic Technology ResearchCenter(Suita, Himeji,Tsukuba)
・Advanced Materials ResearchCenter(Suita, Himeji)
・GSC Catalysts Technology
Research Center(Himeji, Kawasaki)・Superabsorbents ResearchCenter(Himeji)
・Fine & Specialty Chemicals
Research Center(Suita)
・E&I & Performance Materials
Research Center(Suita, Himeji Tsukuba)
・Process Technology Center(Suita, Himeji)

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
Securities Code 4114
URL http://www.shokubai.co.jp