Consolidated Financial Results for the Three Months Ended June 30, 2023
(JPGAAP)

August 10, 2023
Name of listed company: Nissan Chemical Corporation

Stock Exchange: Tokyo

Code number: 4021

URL: https://www.nissanchem.co.jp/

Representative: YAGI Shinsuke, President
Inquiry to: ARITA Nobuhiro, Senior Managing Associate Executive Officer and Head of Finance and Accounting Department Tel. +81 3 4463 8401
Scheduled submission date of quarterly report: August 10, 2023

Scheduled dividend payment date: ―Supplemental information: Yes
Financial results meeting : Yes (For institutional investors and analysts)(Amounts rounded down to the nearest million yen)
1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (From April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales

Ordinary

Net income attributable

incomeincometo owners of parent

Million yen%

Million yen%

Million yen%

Million yen%

54,93958,290(5.7)
25.4

14,99817,266(13.1)
45.4

17,046
19,492(12.5)
58.2

12,236
13,869(11.8)
56.7

Three months ended June 30, 2023
Three months ended June 30, 2022
(Note) Comprehensive income:OperatingThree months ended June 30, 2023

: 14,729 million yen, (8.2%)

Three months ended June 30, 2022

: 16,045 million yen, 99.2%

Basic earnings
per share

Diluted net income
per share
Yen

Yen

Three months ended June 30, 2023

87.40

－

Three months ended June 30, 2022

98.13

－

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of June 30, 2023

301,382

218,066

71.2

As of March 31, 2023

298,715

221,526

73.1(Reference) Shareholders' equity:

As of June 30, 2023

: 214,583 million yen

As of March 31, 2023

: 218,419 million yen

2. Cash Dividends
Cash dividends per shareFirst
quarter

Secondquarter

Yen

Year ended March 31, 2023－

Year ending March 31, 2024－

Year ending March 31, 2024(Outlook)Third
quarter

Yen

Year-end

Yen

Annual

Yen

Yen

70.00

－

94.00

164.00

70.00

－

94.00

164.00(Note) Revision of the latest released dividend outlook: None
3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2023 to March 31, 2024)(% indicates the rate of increase/decrease against the same period of the previous year)
OperatingincomeNet sales

Ordinary
incomeNet income attributableto owners of parent

Basic earnings
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

Six months
ending September 30, 2023

108,600(0.9)

26,100(7.3)

26,400(17.5)

19,700(16.8)

140.74

Year ending March 31, 2024

237,300

4.0

54,7004.6

55,500(0.5)

41,5001.0

297.61(Note) Revision of the latest released outlook of financial results: None

4. Notes(1) Changes in significant consolidated subsidiaries(Changes in specified subsidiaries involving changes in scope of consolidation): Yes

Newly Included: 1 company (Company name: Nippon Phosphoric Acid Corporation Limited)
Nippon Phosphoric Acid Corporation Limited changed the trade name into NC Tokyo Bay Corporation on July 3, 2023.
(2) Application of special accounting treatment to preparation of quarterly financial statements: None(3) Changes of accounting policies and accounting estimates, and restatement
1. Changes of accounting policies due to revisions of accounting standards: None2. Changes of accounting policies other than the above: None3. Changes in accounting estimates: None4. Restatements: None(4) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of June 30, 2023
: 140,600,000 shares
As of March 31, 2023

: 141,300,000 shares

2. Number of treasury shares
As of June 30, 2023

: 1,126,141 shares

As of March 31, 2023

: 1,029,072 shares

3. Average number of shares outstanding
As of June 30, 2023
: 140,009,075 shares
As of June 30, 2022

: 141,334,912 shares(Note) The Company has introduced “Board Benefit Trust (BBT)” based on the resolution of Board of Directors' meeting held on July 30,2019. The
shares held by the Trust are included in the number of treasury shares at the end of the period, and they are included in the number oftreasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by the Trust(included in treasury shares) at the end of the period was 144,000 shares.
In addition, the average number of shares held by the Trust during the period was 145,417 shares.
This is not included in the average number of shares outstanding.
* Presentation regarding implementation status of quarterly review procedures
The financial release is not subject to quarterly review.
* Explanations regarding appropriate use of business outlook and other special notes
The business outlook contained in this report is based on information available at the time of disclosure.
Actual operating results may differ materially from the outlook due to various factors.
For supplemental information, please refer to our website.
The transcript of financial results briefing will be released on our website as well.

Table of Contents for Attached Materials
1. Qualitative Information on Quarterly Results .................................................................................................................

2(1) Business Performance .............................................................................................................................................

2(2) Financial Position .....................................................................................................................................................

3(3) Outlook of Consolidated Financial Results and Other Forward-looking Information ................................................

4(4) Basic Policy on Distribution of Earnings ...................................................................................................................

4

2. Consolidated Financial Statements ...............................................................................................................................

5(1) Consolidated Balance Sheets ................................................................................................................................... 5(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income ................................... 7(3) Consolidated Statements of Cash Flows .................................................................................................................. 9(4) Notes to Consolidated Financial Statements ............................................................................................................ 10(Notes on Assumption of Going Concern) ........................................................................................................... 10(Notes on Significant Changes in Shareholders' Equity) ..................................................................................... 10(Additional information) ....................................................................................................................................... 10(Segment Information) ......................................................................................................................................... 11(Significant Subsequent Events) ......................................................................................................................... 121

1. Qualitative Information on Quarterly Results(1) Business Performance
During the first quarter of the current fiscal year (April 1, 2023 to June 30, 2023), although consumer spending showed arecovery trend owing to the relaxation of behavioral restrictions with the shift of COVID-19 to Category V Infectious
Diseases, the domestic economy did not achieve a full-fledged recovery due to sluggish exports and other factors caused
by weak overseas economies. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals
and Fine Chemicals decreased. In the Performance Materials Segment, sales of Display Materials were firm, but sales of
Semiconductor Materials declined. In the Agricultural Chemicals Segment, sales decreased. In the Healthcare Segment,
sales of "Custom Chemicals"(custom manufacturing and solution proposal business for pharmaceutical companies) werefirm.
As a result, net sales and each income decreased compared to the same period of the previous fiscal year. However,sales and each income exceeded the outlooks announced in May.

1Q FY2022(Million yen, amount rounded down to the nearest million yen)
1Q FY2023
Year-on-year
Change from
(Outlook)
1Q FY2023
ChangeOutlook(Note)

Sales

58,29054,939(3,350)54,800+139

Operating income

17,26614,998(2,267)

14,500+498

Ordinary income

19,492

17,046(2,445)

15,200+1,846

Net income attributableto owners of parent

13,86912,236(1,633)

10,900+1,336(Note) The outlook is described on page 10 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, sales of urea, AdBlue®* (high-grade urea solution) and nitric acid products (metal dissolution,
surface treatment, etc.) increased. Sales of melamine (adhesives agent) declined as a result of the termination of sales inthe third quarter of the previous fiscal year under the structural reforms. In Fine Chemicals, sales of environmental
chemicals (sterilizing and disinfecting agents for pools and septic tanks, etc.) were strong, and sales of "TEPIC" (powder
coating agent for paint, sealants, etc.) decreased.
As a result, sales of this segment were 9,094 million yen (a decrease of 1,321 million yen) and operating income was
924 million yen (a decrease of 792 million yen). Compared to the outlook (Note), sales were below 0.3 billion yen andoperating income was in line with the target.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) increased. In Semiconductor Materials, sales of antireflective coating for semiconductors (ARC®*) and multi-layer process materials (OptiStack®*) decreased due to a
decline in customer utilization. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hardcoating were on a par with the previous year, but Oilfield materials (solvents to improve the efficiency of shale oil and gas
extraction) were steady.
As a result, sales of this segment were 20,803 million yen (a decrease of 970 million yen) and operating income was6,451 million yen (a decrease of 1,437 million yen). Compared to the outlook (Note), sales were above 0.3 billion yen andoperating income was below 0.1 billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.

2

The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) decreased. In Japanese domestic market, salesof "ROUNDUP" (non-selective foliar application herbicide) and "ALTAIR" (paddy rice herbicide) decreased. In theoverseas market, sales of "GRACIA"(insecticide) grew, although sales of "LEIMAY" (fungicide) decreased.
As a result, sales of this segment were 18,795 million yen (a decrease of 933 million yen) and operating income was
6,571 million yen (a decrease of 254 million yen). Compared to the outlook (Note), sales were below 0.4 billion yen andoperating income was in line with the target.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
The Healthcare Segment
Sales of "LIVALO" (anti-cholesterol drug) declined both in Japan and overseas. In "Custom Chemicals", sales increased.
As a result, sales of this segment were 1,951 million yen (an increase of 297 million yen) and operating income was
1,089 million yen (an increase of 331 million yen). Compared to the outlook (Note), sales were above 0.1 billion yen andoperating income was above 0.1 billion yen.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
Trading
Sales of this segment were 24,345 million yen (an increase of 688 million yen) and operating income was 906 million
yen (a decrease of 127 million yen). Compared to the outlook (Note), sales were above 0.6 billion yen and operating
income was above 0.2 billion yen.
(Note) The outlook is described on page 72 and 73 of the FY2022 Presentation Materials (announced on May 15, 2023)
Part2.
OthersSales of this segment were 6,397 million yen (a decrease of 139 million yen) and operating income was 204 million yen(an increase of 70 million yen).

3(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of June 30, 2023 was 301,382 million yen (an increase of 2,666 million yen from March 31, 2023). It ismainly due to increase of inventory and construction in progress.
Also, total liabilities as of June 30, 2023 was 83,315 million yen (an increase of 6,126 million yen). It is mainly due to thedecrease of short-term loans payable.
Net assets as of June 30, 2023 was 218,066 million yen (a decrease of 3,459 million yen).
As a result of these factors, equity ratio was 71.2% (a decrease of 1.9% from March 31, 2023).
(Position of Cash Flows)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain andloss on working capital, net cash provided by operating activities for the three months ended June 30, 2023 was
12,293 million yen (13,107 million yen for the same period of the previous year).
Due to the investment on plant and equipment, net cash used in investing activities for the three months ended June 30,2023 was 5,078 million yen (4,345 million yen for the same period of the previous year).
Due to payment for dividends, net cash used in financing activities for the three months ended June 30, 2023 was
10,568 million yen (18,023 million yen for the same period of the previous year).
Cash and cash equivalents at the end of this period decreased 3,198 million yen from March 31, 2023 after adjusting forthe 154 million yen effect of exchange rate, to 26,449 million yen (29,366 million yen for the same period of the previousyear).

(3) Outlook of Consolidated Financial Results and Other Forward-looking Information
There is no change in the outlook of consolidated business results for the first half and full year ending March 31, 2024
from the statement announced on May 15, 2023.

(4) Basic Policy on Distribution of Earnings
The Company’s basic policy of profit allocation is returning to shareholders by improving company value throughincreasing revenue in the medium and long terms.
In medium-term business plan “Vista2027” Stage I launched from April 2022, the company aims to realize dividend
payout ratio to be 55% and total payout ratio to be 75% after FY2022.

42. Consolidated Financial Statements(1) Consolidated Balance Sheets
As ofMarch 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable - other
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5(Million yen)
As ofJune 30, 2023

29,647
82,67046,95018
17,703
2,113
3,088
7,305
(44)
189,454

26,44977,78052,218174
19,236
1,711
1,281
5,749
(42)
184,559

72,520(46,567)
25,952
151,653(136,861)
14,79242,153(38,379)
3,774
8,817
149
(10)
139
11,17664,65376,964(49,981)
26,983
161,404(145,254)
16,15042,540(38,858)
3,682
9,063
162
(17)
144
16,09072,115

1,722
9,813
11,535

1,856
9,544
11,40027,322
0
531
2,140
3,186
(110)
33,071
109,260
298,715

27,579
48
442
2,159
3,188
(110)
33,307
116,822
301,382

As ofMarch 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for business structure improvement
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for loss on business of subsidiaries and affiliates
Provision for share-based remuneration for directors(and other officers)
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Million yen)
As ofJune 30, 2023

19,942
25,327
624
7,879
2,413
418
15,556
72,161

17,42235,442
624
3,944
776
417
18,68177,308

1,338
98
626

1,338
1,122
572

256

245

377
2,331
5,027
77,188

351
2,377
6,007
83,315

18,942
13,613
182,400(6,111)
208,844

18,942
13,613
177,142(6,776)
202,921

7,678
1,735
159
9,574
3,107
221,526
298,715

8,104
3,403
154
11,662
3,483
218,066
301,382

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Plant stop losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Extraordinary losses
Income before income taxes and non-controlling interests
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

7

Three Months Ended
June 30, 2022
58,29028,02630,263
12,997
17,266(Million yen)Three Months Ended
June 30, 2023
54,93926,63428,305
13,30614,998

48
258
232
1,694
187
2,420

38
254
536
1,476
195
2,500

41
83
－
69
194
19,492－－
19,492
4,560
843
5,403
14,089219
13,869

124
275
10
39
451
17,046－－
17,046
3,647
946
4,594
12,452
216
12,236

- Consolidated Statements of Comprehensive Income

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)
Owners of parent
Non-controlling interests

8

Three Months Ended
June 30, 2022
14,089(Million yen)Three Months Ended
June 30, 2023
12,452

332
1,250
372

425
1,856
(5)

0

0

1,955
16,0452,276
14,72915,663382

14,324405

(3) Consolidated Statements of Cash Flows

Cash flows from operating activities
Income before income taxes and non-controlling interests
Depreciation
Amortization of goodwill
Interest and dividend income
Interest expenses
Loss (gain) on disposal of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Net decrease (increase) in short-term loans receivable
Purchase of long-term prepaid expenses
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Cash dividends paid
Dividends paid to non-controlling interests
Share repurchase
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

9

Three Months Ended
June 30, 2022

(Million yen)Three Months Ended
June 30, 2023

19,492
2,451
25
(306)
41
83
257
(3,381)(1,153)
2,661
20,171490(38)(7,515)
13,107

17,046
2,765
25
(292)
122
275
5,789
(6,106)(3,239)2,729
19,117660(121)(7,362)
12,293

(441)
0
(25)
(3,449)
(79)
(328)
(16)
(5)

(10)
－
－
(6,407)
(253)
(236)
1,802
(32)

－

93

1
(4,345)(33)(5,078)(2,706)(10,208)(105)(5,000)(2)(18,023)852(8,407)34,658

7,632(13,199)－(5,001)－(10,568)154(3,198)29,647

3,116－

29,36626,449(4) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.

(Notes on Significant Changes in Shareholders' Equity)
The Company made a stock payment of 7,600 shares to the eligible party on April 25, 2023 based on the trust
agreement of the Board Benefit Trust (BBT) resolved by the Board of Director's meeting on July 30, 2019. As a result,treasury shares decreased by 36 million yen during the first quarter of current consolidated fiscal year. Also, theCompany canceled 700,000 treasury shares on May 12, 2023 based on the resolution of Board of Directors' meeting
held on April 28, 2023. As a result, retained earnings and treasury shares decreased by 4,294 million yen during thefirst quarter of current consolidated fiscal year.
In addition, the Company repurchased 805,300 treasury shares based on the resolution of Board of Directors' meeting
held on May 15, 2023. As a result, treasury shares increased by 4,999 million yen during the first quarter of current
consolidated fiscal year.

10

(Segment Information)
1. Information Regarding Sales, Income (Loss) of Reportable Segments

1) For the Three Months Ended June 30, 2022 (From April 1, 2022 to June 30, 2022)
Performance Agricultural
Chemicals
Healthcare
Materials
Chemicals(Million yen)

Trading

Others

Total

Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside customers(Note 1)
Intersegment Sales

7,313

17,91017,644

1,654

17,4262,874

64,824(6,533)58,290

3,102

3,863

2,084

－

6,229

3,662

18,942(18,942)－

Total Sales

10,415

21,774

19,728

1,654

23,656

6,537

83,766(25,476)

58,290

Segment Income or Loss
(Operating Income or Loss)

1,716

7,888

6,825

757

1,033

133

18,355(1,089)17,266

Notes:
1. Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions.
A reconciliation of gross sales to net sales as agent transactions is made in the Adjustment section.
2. Adjustments are as follows.
(1) (6,533) million yen adjustment in sales to outside customers includes (6,535) million yen in the elimination of agent transactions, and1 million yen sales not attributable to any reporting segment.
(2) (1,089) million yen adjustment in segment income includes 201 million yen in intersegment eliminations, 1 million yen sales not attributable
to any reporting segment, and (1,292) million yen corporate expenses not attributable to any reportable segment. The corporate expenses aremainly group administrative expenses which do not belong to any segment.

2) For the Three Months Ended June 30, 2023 (From April 1, 2023 to June 30, 2023)
Performance Agricultural
Chemicals
Healthcare
Materials
Chemicals(Million yen)

Trading

Others

Total

Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside customers(Note 1)

6,057

16,836

15,741

1,951

18,3002,422

61,310(6,370)54,939Intersegment Sales

3,036

3,966

3,054

－

6,044

3,974

20,076(20,076)－

Total Sales

9,094

20,803

18,795

1,951

24,345

6,397

81,387(26,447)

54,939

924

6,451

6,571

1,089

906

204

16,146(1,148)14,998Segment Income or Loss
(Operating Income or Loss)
Notes:

1. Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions.
A reconciliation of gross sales to net sales as agent transactions is made in the Adjustment section.
2. Adjustments are as follows.
(1) (6,370) million yen adjustment in sales to outside customers includes (6,373) million yen in the elimination of agent transactions, and2 million yen sales not attributable to any reporting segment.
(2) (1,148) million yen adjustment in segment income includes 223 million yen in intersegment eliminations, 2 million yen sales not attributable
to any reporting segment, and (1,375) million yen corporate expenses not attributable to any reportable segment. The corporate expenses aremainly group administrative expenses which do not belong to any segment.

11

(Significant Subsequent Events)
The Company, at the Board of Director’s meeting held on July 28, 2023, has decided to cancel its own shares under
Article 178 of the Companies Act.
(1) Class of shares to be cancelled: Common shares of company(2) Number of shares to be cancelled: 800,000 shares(0.57% of issued shares prior to cancellation)(3) Scheduled date of cancellation: August 10, 2023

Reference
Number of issued shares subsequent to cancellation (including treasury shares) : 139,800,000 shares

12