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

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2019
(Based on Japanese GAAP)
November 8, 2019
Company name:
Nippon Chemical Industrial CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

4092
President

URL

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

Inquiries:
General Manager, Accounting DepartmentScheduled date to file Quarterly Securities Report:

Manabu SatoNovember 8, 2019

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 5, 2019
Yes

Holding of quarterly financial results meeting:

NoTEL

03-3636-8038(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2019
Six months ended September 30, 2018

Millions of yen
18,302
17,888Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
2.3
1,642(7.5)
1,694
(8.5)
1,121 (14.4)
0.3
1,774
18.7
1,851
23.0
1,310
20.6

Earnings per share

Diluted earnings per share

Yen
127.52148.95Six months ended September 30, 2019
Six months ended September 30, 2018

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2019
As of March 31, 2019

Net assets

Millions of yen
63,65065,497

Equity ratio

Millions of yen
36,02835,497

%
56.6
54.2

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
40.00
35.00

Yen–

Yen
30.00

Yen
70.00

–

35.00

70.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
37,500
3.7
3,100
0.5
3,100
1.4
2,200
2.1
250.11

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2019

8,922,775 shares As of March 31, 2019

8,922,775 shares

126,863 shares As of March 31, 2019

126,667 shares

Number of treasury shares at the end of the period
As of September 30, 2019

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2019

8,796,028 shares Six months ended September 30, 2018

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

2

8,796,185 shares

Quarterly consolidated financial statements
Consolidated balance sheets
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assetsInvestment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3(Millions of yen)
As of September 30, 2019

9,051
10,861
4,712
2,310
3,342
4
532
(20)
30,794

5,854
11,535
4,345
2,456
2,801
–
766
(21)
27,73832,721(21,631)
11,0909,307(4,470)
4,836
7,730
2,567
6,303
(5,513)789
27,014

34,136(21,856)
12,28011,669(5,063)
6,606
7,730
1,072
6,420(5,580)
839
28,530

62
257
319

55
344
399

6,597
37
141
165
450
(22)
7,368
34,70365,497

6,160
29
155
219
439
(22)
6,981
35,911
63,650As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Accounts payable - facilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilitiesNet assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(Millions of yen)
As of September 30, 2019

4,617
9,143
346
24
432
2,361
2,000
18,925

3,253
7,772
463
113
416
2,032
1,908
15,9605,422
2,118
1,299
2,233
11,07329,999

5,903
2,010
1,358
2,388
11,661
27,6225,757
2,269
24,840(353)
32,514

5,757
2,269
25,698(353)
33,371

2,792

2,515

0
11179
2,983
35,49765,497(0)
3137
2,656
36,02863,650Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended
Six months ended
September 30, 2018
September 30, 2019
Net sales
17,88818,302
Cost of sales13,697
14,152Gross profit
4,191
4,149
Selling, general and administrative expenses
2,416
2,507
Operating profit
1,774
1,642
Non-operating income
Interest and dividend income
68
69
Share of profit of entities accounted for using equity
68
18
methodOther
74
49
Total non-operating income
210137
Non-operating expenses
Interest expenses
36
37
Environmental expenses
63
11
Other
33
36
Total non-operating expenses
134
85
Ordinary profit
1,851
1,694
Extraordinary income
Gain on sales of investment securities–
21
Total extraordinary income–
21
Extraordinary losses
Loss on retirement of non-current assets
36129
Total extraordinary losses
36129
Profit before income taxes
1,815
1,586
Income taxes - current
434
445
Income taxes - deferred
70
19
Total income taxes
505
465
Profit1,310
1,121
Profit attributable to owners of parent
1,310
1,121

5

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

6

Six months ended
September 30, 2018
1,310

(Millions of yen)Six months ended
September 30, 2019
1,121

450
2(3)

(277)
(0)
(41)

(5)

(7)

443
1,753

(326)
794

1,753

794

Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2018
Cash flows from operating activities
Profit before income taxesDepreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtfulaccounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Interest expenses
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Loan advances
Collection of loans receivable
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activitiesNet increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease obligations
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7

1,815
1,039–

1,586
1,255
7(2)

0

6(8)
(68)

(16)
58(69)

(68)

(18)

36–
36732(1,050)
(48)
(72)
(138)
2,208
68(36)
(828)
3
1,415

37
(21)
129(648)761(1,633)
93
(40)
1,482
70
(38)
(335)
–
1,179

(1,591)
–
(8)
(3)
–
(1)
16

(3,125)2(113)
(2)
42
(0)
15

(67)

–

(9)
(1,665)(38)(3,219)

(30)
–
(500)
(3)
(0)
(263)
(797)

(170)
1,200
(1,918)
(4)
(0)
(263)
(1,157)2(0)(1,044)
8,927
7,882

(3,196)
9,041
5,844