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

First Half of Fiscal Year March 2023

Summary ofFinancial Results

November 10, 2022
Nippon Chemical Industrial Co., Ltd.
© Nippon Chemical Industrial Co., Ltd.

1 Consolidated Results for First Half ofFY March 2023

2 Forecast of Consolidated Results for
FY March 2023

4092

1Consolidated Results for First Half ofFY March 2023

© Nippon Chemical Industrial Co., Ltd.

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

Key points concerning earnings for first half of FY March 2023
Uncertain outlook remained unchanged including increased prices of raw
materials and fuel, rapid depreciation in the yen and prolonged geopolitical risks.

◆Net sales increased 1.3% Y-o-Y while operating profit declined 57.1%.
・Products were repriced because of the increased prices of raw materials and fuel,but profits declined because of the increased purchase cost, which was significantly
higher than initially estimated, and weak demand of products for automobiles,communication, and semiconductors.

・Focus on the development of new markets in Japan and overseas and sales expansionthat contributed to the sales increase.
・Continued investment in the areas contributing to medium- and long- term growth.
(Electronic ceramic materials, phosphine derivatives, high-purity electronic materialsand others)3© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Consolidated results for first half of FY March 2023
(Overview)
FY March 2022
2Q
(Millions of yen)

Net sales
Operating profit
Operating profit percentage

Ordinary profit
ProfitEBITDA*Earnings per share (Yen)FY March 2023
2Q

19,397
2,312
11.9%
2,322
2,025

19,653992
5.0%
1,123735

3,822
230.27

2,587
83.47

ChangeChange rate
255

1.3%

(1,320)( 57.1%)(6.9pt)(1,198)( 51.6%)(1,290)( 63.7%)(1,235)( 32.3%)* Brief version of EBITDA (operating profit + depreciation) is used4© Nippon Chemical Industrial. Co., Ltd. All rights reserved.

Consolidated results for first half of FY March 2023
(Performance by segment)
FY March 2022
2Q(Millions of yen)

FY March 2023
2Q

Net sales

7,310

10,517

3,206

43.9%

Operatingprofit

565

781

216

38.2%

Net sales

9,288

8,278(1,010)( 10.9%)Operatingprofit1,196(74)(1,270)( 106.2%)

Net sales

457

457

00.0%

Operatingprofit

266

268

20.8%

Net sales

1,926-(1,926)-

Operatingprofit

258-

(258)

-

Net sales

414

400(14)( 3.4%)

Operatingprofit

2026

6

30.0%

Net sales

19,397

19,653255

1.3%Operatingprofit2,312992(1,320)( 57.1%)

Inorganic
Chemicals
Specialty
Chemicals
Leasing
BusinessAir-conditioning
Business

Other
Total

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

Consolidated results for first half of FY March 2023
(Inorganic chemicals)
FY March 2022 FY March 2023
2Q
2Q
(Millions of yen)

ChangeChangerate

Chromium Compounds

2,344

2,648

304

13.0%

Silicates and silica

1,047

1,224

177

16.9%

2,439

4,720

2,281

93.5%

1,479

1,923

444

30.0%

Inorganic Phosphorus
Compounds
Other

Net sales
10,5177,310

2022/3 2Q

Total

7,310

10,5173,2062023/3 2Q

43.9%◆Chromium Compounds:

Sharp decline for refractory and solidness for plating, as well as repricing

Operating profit
781◆Silicates and Silica: Solidness in general as well as repricing

565◆Inorganic Phosphorus Compounds:

Weakness for semiconductors, solidness for general industry as well as repricing

2022/3 2Q

2023/3 2Q

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

Consolidated results for first half of FY March 2023
(Specialty chemicals)(Millions of yen)
Electronic CeramicMaterials
Organic Functional
Materials
Battery and Electronic
Device Materials

FY March 2022 FY March 2023
2Q2Q

OtherTotal4,358

3,851

ChangeChangerate(507)( 11.6%)

Net sales
9,288
8,278

2,016

1,608(408)( 20.2%)

1,917

1,809(108)( 5.6%)

996

1,009

131.3%

9,288

8,278(1,010)( 10.9%)2022/3 2Q◆Electronic Ceramic Materials: Sharp decline for automobiles and communication

2023/3 2Q

Operating profit
1,196◆Organic Functional Materials- Phosphine Derivatives:
Strongness for Quantum Dot and sharp decline for other overseas- Agrochemicals: Sharp decline for major customers◆Battery and Electronic Device Materials- Battery Materials: Weakness- Circuit Materials: Strong growth for paste- High-Purity Electronic Materials:
Strong growth for semiconductors and sharp decline in some products

2022/3 2Q▲ 74
2023/3 2Q

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

Consolidated results for first half of FY March 2023
(Leasing)
FY March 2022 FY March 2023
2Q
2Q
(Millions of yen)

Changerate

ChangeNet sales
2,798

Leasing Business

457

457

00.0%

Air-conditioning Business

1,926-(1,926)-Book Store Operation

303

265(38)( 12.5%)

Other111134

2320.7%858

2022/3 2QTotal

2,798

858

(1,940)2023/3 2Q( 69.3%)◆Leasing Business: Solidness◆Air-conditioning Business: The business was outside the scope ofconsolidation from the third quarter of the fiscal year ended March 31, 2022, asa result of sales of the business.

Operating profit
545
294◆Book Store Operation: Weakness
2022/3 2Q

2023/3 2Q

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

Balance Sheet(Millions of yen)March End,
2022

September End,
2022

ChangeMajor factors of change
Cash and deposits: (3,058),

Current assets

30,71830,169(549) inventories: 1,989

Non-current assets

39,712

38,713(999) investment securities: (719)

70,431

68,883Current liabilities

17,706

17,537(169) Income taxes payable: (250)

Non-current liabilities

10,857

9,657(1,200) Long-term borrowings: (1,216)

28,56327,194(1,369)

Shareholders' equity

38,49938,815316 Retained earnings: (289)

Accumulated othercomprehensive income

3,368

2,873

(495) securities: (507)

Total net assets

41,867

41,688(178)

Total liabilities and net assets

70,431

68,883(1,547)

Total assets

Total liabilities◆Equity ratio: 60.5％

Property, plant and equipment: (301),(1,547)

Valuation difference on available-for-sale9

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

Cash FlowsFY March 2022 FY March 2023
2Q
2Q
(Millions of yen)

ChangeMajor factors of change

CF from operating activities

1,217

(31)

CF from investing activities582(1,302)

CF from financing activities(1,378)(1,783)

Free CF*

1,492(1,772)(3,264)

Cash at end of period

10,395

5,943(4,452) Cash and cash equivalents (3,058)

Dividends paid

306

438

132

Depreciation

1,510

1,595

85

(1,248) Profit before income taxes: (1,747)
Decrease in proceeds from sales of shares(1,884) of subsidiaries: (2,227)

Decrease in loans payable and payments:(405) (202)* Calculated by deducting CF from investing activities and dividends from CF from operating activities10２

Forecast of Consolidated Results for
FY March 2023
(There are no revisions to the latest forecast announced)© Nippon Chemical Industrial Co., Ltd.

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

Forecast of consolidated results for FY March 2023
(Overview)
FY March 2022
Results(Millions of yen)

Net sales
Operating profit
Operating profit percentage

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

FY March 2023
Forecast

37,275
3,921
10.5%
3,864
3,735
6,982
9.2%

38,000
2,100
5.5%
2,200
1,400
5,700
3.3%

424.47

Change rate

Change725

1.9%( 1,821)( 46.4%)(5.0pt)( 1,664)( 43.1%)( 2,335)( 62.5%)( 1,282)( 18.4%)(5.9pt)-159.06--

Interim: 35
Year-end: 50
Annual: 85

Interim: 35
Year-end: 35
Annual: 70

--

4,407
3,061
1,326

4,900
3,500
1,400493

11.2%

439

14.3%

74

5.6%

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

Forecast of Consolidated Results for FY March 2023
(Performance by segment)
FY March 2022
Results(Millions of yen)

FY March 2023
ForecastNet sales

16,11019,255

3,145

19.5%

Operatingprofit

950

1,040909.5%

Net sales

17,426

16,985(441)( 2.5%)

Operatingprofit2,075480(1,595)( 76.9%)Net sales

91391300.0%

Operatingprofit537

525(12)( 2.2%)Net sales

1,926-(1,926)-

Operatingprofit258-(258)-

Net sales

898

847(51)( 5.7%)

Operatingprofit9555(40)( 42.1%)

Net sales

37,27538,000725

1.9%Operatingprofit3,921

2,100(1,821)( 46.4%)

Inorganic
Chemicals
Specialty
Chemicals
Leasing
Business
Air-conditioning
Business

OtherTotal

ChangeChange rate

13

Cautions:
The forecasts of financial results and business plans included in the materials were based on currently available information available and certain
preconditions, and so the forecasts do not guarantee future financial results. Actual financial results may differ from the forecasts for to a variety of reasons.
Please make your own decisions on investments.