Consolidated Financial Results for the Year Ended March 31, 2016
(JPGAAP)May 12, 2016

Stock Exchange: Tokyo
Name of listed company: NISSAN CHEMICAL INDUSTRIES, LTD.
URL: http://www.nissanchem.co.jp/
Code Number: 4021
Representative: Kojiro Kinoshita, President
Inquiry to: Hironori Yoshida, Executive Officer and Director of Finance and Accounting Department Tel. +81 3 3296 8356
Scheduled dividend payment date : June 29, 2016
Scheduled date of annual shareholders' meeting: June 28, 2016
Scheduled date of submitting the Financial Statement : June 28, 2016
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 Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(Millions of Yen)

(1) Consolidated Operating Results(% indicates the rate of increase/decrease year on year)

Net Sales

Operating
IncomeOrdinary
IncomeProfit Attributable to
Owners of Parent

Year Ended March 31, 2016

176,894+3.3%

28,606 +12.9%

29,531+11.9%

22,350+22.8%

Year Ended March 31, 2015

171,206+4.6%

25,347 +13.9%

26,391+11.2%

18,199+9.0%(Note) Comprehensive Income:Year Ended March 31, 2016: 21,508million yen (△10.7%)
Year Ended March 31, 2015: 24,094 million yen (+18.1%)
Net Income
per Share (Yen)

Diluted Net Income
per Share (Yen)

Ratio ofNet Income to
Shareholders' equity

Ratio of Ordinary
Income toTotal Assets

Ratio of Operating
Income to
Net SalesYear Ended March 31, 2016

143.37

－

14.6%

13.1%

16.2%

Year Ended March 31, 2015

113.99

－

12.7%

12.2%

14.8%

(Reference) Equity in earnings of affiliates: Year Ended March 31, 2016: 858 million yen

Year Ended March 31, 2015: 1,093 million yen(2) Consolidated Financial Position(Millions of Yen)

Total Assets

Net Assets

Equity Ratio

Net assets
per share (yen)As of March 31, 2016

228,169

156,92468.1%

1,006.56

As of March 31, 2015

223,854

151,26366.9%

949.71(Reference) Shareholders' equity: As of March 31, 2016: 155,392 million yen

As of March 31, 2015: 149,782 million yen(3) Consolidated Cash Flows(Millions of Yen)

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

As of March 31, 2016

29,989△ 8,416△ 17,317

Cash and cash
equivalents at theend of period
35,335

As of March 31, 2015

20,452△ 8,076△ 12,127

31,343

Cash Flows from
Financing Activities

2. Cash Dividends
Cash Dividends per ShareDividend
Ratio of
Total
PayoutDividend
Cash Dividends(Millions of yen)
Ratio
to Net Assets(Annual)(Consolidated) (Consolidated)

First
Quarter

SecondQuarter

Third
QuarterYear Ended March 31, 2015－

14.00 yen－

22.00 yen 36.00 yen

5,716

31.6%

4.0%

Year Ended March 31, 2016－

18.00 yen－

26.00 yen 44.00 yen

6,813

30.7%

4.5%

Year Ending March 31, 2017
(Forecast)－

24.00 yen－

26.00 yen 50.00 yen

Year-end

Annual33.3%

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2017 (From April 1, 2016 to March 31, 2017)(Millions of Yen)(% indicates the rate of increase/decrease against the same period of the previous year)
Net Sales

Operating
IncomeOrdinary
IncomeProfit Attributable to
Owners of Parent

Net Income
per share

Six Months
Ending March 31, 2017

86,000+2.8%

13,300△6.8%

13,300△12.1%

10,200

△8.5%

66.56

Year Ending March 31, 2017

187,500+6.0%

29,700+3.8%

30,400+2.9%

23,000+2.9%

150.36

The above Net Income per share are calculated in consideration of repurchasing and cancelation of treasury shares that will be implemented until August 31, 2016

4. Notes(1) Changes in significant consolidated subsidiaries(changes in specified subsidiaries involving changes in scope of consolidation): None(2) Changes of accounting policies and accounting estimates, and restatement
1. Changes of accounting policies due to revisions of accounting standards: Yes

2. Changes of accounting policies other than the above: None3. Changes in accounting estimates: None4. Restatements: None(Note) Please see (5) Notes to Consolidate Financial Statements, “Changes of Accounting Policies” on page 15 for details.
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
as of March 31, 2016

: 156,000,000 shares

as of March 31, 2015

: 158,000,000 shares

2. Number of shares of treasury stock
as of March 31, 2016

: 1,620,587 shares

as of March 31, 2015:

286,679 shares

3. Average number of shares outstanding over the year
as of March 31, 2016

:155,893,811 shares

as of March 31, 2015

:159,654,159 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-Consolidated Financial Results for the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(1) Non-Consolidated Operating Results( Amounts rounded down to the nearest million yen)(% indicates the rate of increase/decrease year on year)

Operating
IncomeNet Sales

Ordinary
IncomeProfitYear Ended March 31, 2016

130,987+1.8%

24,166+15.8%

26,059+13.0%

19,581+18.7%

Year Ended March 31, 2015

128,625+6.0%

20,864+12.8%

23,064+12.3%

16,496+10.0%Net Income
per share (Yen)

Diluted Net Income
per share (Yen)Year Ended March 31, 2016125.61－

Year Ended March 31, 2015

103.33－(2) Non-Consolidated Financial Position(Millions of Yen)

Total Assets

Net Assets

Equity Ratio

Net assets
per share (yen)As of March 31, 2016

196,014

131,61667.1%

852.55

As of March 31, 2015

193,828

127,37265.7%

807.62(Note) Shareholders' equity: As of March 31, 2016: 131,616 million yen As of March 31, 2015: 127,372 million yen* Implementation status about the review
This financial release is not subject to audit procedures based on Financial Instruments and Exchange Law in Japan.
Audit procedures of financial statements based on Financial Instruments and Exchange have not been completed at the time of disclosure.
* Statement regarding appropriate use of forecasts and other notes
The business forecast contained in this report is based on information available at the time of disclosure.
Actual operating results may differ materially from the forecast due to various factors.
The prerequisite information of actual forecast and other items are on page 3 and 4.
For supplemental information, please refer to our website.

Table of Contents for Attached Materials
1. Qualitative Information on Quarterly Results ...................................................................................... 2(1) Business Performance ................................................................................................................. 2(2) Financial Position ........................................................................................................................ 4(3) Basic Policy on Distribution of Earnings and Dividends for current and next term ........................ 5
2. Management Policy ........................................................................................................................... 6(1) Basic Management Policy ............................................................................................................ 6(2) Target Management Indicator ....................................................................................................... 6(3) Med-and Long-term Management Strategies and Issues to be addressed ...................................... 6
3. Basic Approach to the Selection of Accounting Standards .................................................................. 7
4. Consolidated Financial Statements .................................................................................................... 8(1) Consolidated Balance Sheets ....................................................................................................... 8(2) Consolidated Statements of Income and Statements of Comprehensive Income .......................... 10(3) Consolidated Statements of Changes in Net Assets .................................................................... 12(4) Consolidated Statements of Cash Flows ..................................................................................... 14(5) Notes to Consolidated Financial Statements ............................................................................... 15(Notes on Assumption of Going Concern) .............................................................................. 15(Notes on Changes of Accounting Policies) ........................................................................... 15(Segment Information) .......................................................................................................... 16(Per Share Information) ......................................................................................................... 19(Significant Subsequent Events) ............................................................................................. 19-1-

1. Qualitative Information on Quarterly Results(1) Business Performance
During the year ended March 31, 2016 (from April 1, 2015 to March 31, 2016), the domestic economy has
been slowly recovering. However, the lower individual consumption and stagnation of economic growth of
China and economic slowdown of emerging countries threaten the future of global economy.
With regard to our group business, the profitability of Chemicals Segment was improved by lower price ofraw fuels while the domestic demand decreased. As for Performance Materials Segment, display materials
have continued to grow due mainly to products for smartphone. As for Agricultural Chemicals Segment,
profit increased due to both herbicides and Fluralaner. As for Pharmaceutical Segment, the domestic salesof “LIVALO” (anti-cholesterol drug) were adversely affected by generic medicines.
As a result, the sales for this term were 176,894 million yen (an increase of 5,688 million yen from thesame term of the previous year). Operating income was 28,606 million yen (an increase of 3,258 millionyen). Ordinary income was 29,531 million yen (an increase of 3,140 million yen). Profit attributable toowners of parent was 22,350 million yen (an increase of 4,151 million yen).

Explanations by segments are as below.

Chemicals
As for Basic Chemicals, the sales volume of melamine (adhesive agent for particle board) increased inoverseas. As for Fine Chemicals, the sales of “HI-LITE” (chlorinated isocyanuric acid for sterilizing)
increased. Furthermore, the price decline of raw fuel such as naphtha contributes to rising of the profit rate
of Chemical segment.
As a result, the sales of this segment were 34,347 million yen (an increase of 83 million yen from thesame term of the previous year). Operating income was 3,927 million yen (an increase of 2,032 million yen).

Performance Materials“SUNEVER” (LCD alignment coating) for TV and smartphone had healthy sales. As for semiconductormaterials, bottom anti-reflective coating for semiconductors (“ARC®”) and multi-layer process materials(“ARC®”) were adversely affected by the lower capacity utilization ratio of some customers. As for inorganic
colloid materials, “SNOTEX” (silica sol for polishing electronic materials and non-polishing materials)
experienced difficulty with polishing electronic materials, while the sales of Organo silica sol (various kindsof coating materials) exceeded previous year.
As a result, the sales of this segment were 51,773 million yen (an increase of 2,401 million yen from thesame term of the previous year). Operating income was 12,021 million yen (an increase of 1 million yen).
*ARC® is registered trade mark of Brewer Science, Inc. Bottom anti-reflective coating and multi-layermaterials beneath a photoresist are included in the registered trade mark.

-2-

Agricultural Chemicals
The sales volume of “ALTAIR” (paddy rice herbicide) and Fluralaner (the active substance of veterinary
medical product) fairly increased. Also, “ROUNDUP” had healthy sales for individuals.
As a result, the sales of this segment were 47,487 million yen (an increase of 1,805 million yen from thesame term of the previous year). Operating income was 10,831 million yen (an increase of 1,587 million
yen).

Pharmaceuticals“LIVALO” sold well in overseas but continued to face a tough situation in Japan. On the other hand,“Custom Chemicals” (custom manufacturing and process researching services for pharmaceuticalcompanies) had healthy sales. Also, we entered into a license contract of new medicine with Yakult Honsha
Co., Ltd. concerning thrombocytosis medicine (NIP-022) and acquired income.
As a result, the sales of this segment were 8,668 million yen (a decrease of 143 million yen from thesame term of the previous year). Operating income was 2,006 million yen (a decrease of 302 million yen).

Trading
The sales of this segment were 55,644 million yen (an increase of 1,254 million yen from the same termof the previous year), operating income was 1,813 million yen (an increase of 133 million yen) due to thesales increase of agricultural chemicals and plastic materials.

Others
The sales of this segment were 20,879 million yen (a decrease of 3 million yen from the same term of theprevious year), operating income was 475 million yen (a decrease of 104 million yen)-3-

(Forecast of business result for the next term)(Billions of yen)Segment Sales and Operating Income(Billions of yen)

As domestic and overseas economy is unpredictable, forecast for the next term is in a critical situation.

Under this situation, we launched “Progress2030”, a long-term business plan, aiming for year 2030, as
well as, “Vista 2021”, a six-year medium-term business plan, showing the ideal vision for year 2021 fromthis April. We aim to construct stable business structure less affected by economic ups and downs, andestablish optimum business portfolio by implementing some measures based on basic strategy andadvancing into new business field.

As forecast of business result for the next term, we assume that Net Sales will be 187.5 billion yen,
Operating Income will be 29.7 billion yen, Ordinary Income will be 30.4 billion yen and Profit attribute to
Owners of Parent will be 23.0 billion yen. The above forecast is calculated on the assumption that naphtha
price will be 35,400 yen per kiloliter and the exchange rate will be 115 yen per dollar.

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Due to the increase of cash and deposits, assets as of March 31, 2016 were 228,169 million yen (anincrease of 4,314 million yen from the previous year).
While income taxes payable increased, due to the decrease of long-term loans payable, total liabilities asof March 31, 2016 were 71,244 million yen (a decrease of 1,346 million yen from the previous year).
Net Assets as of March 31, 2016 were 156,924 million yen (an increase of 5,660 million yen from theprevious year).
As a result, equity ratio was 68.1%, an increase of 1.2% from the previous year.

-4-(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests,
depreciation and gain and loss on working capital, net cash provided by operating activities for the year
ended March 31, 2016 were 29,989 million yen (20,452 million yen for the previous year).
Due to the investment on plant and equipment, net cash used in investing activities for the year ended
March 31, 2016 were 8,416 million yen (8,076 million yen for the previous year).
Due to the purchase of treasury shares, cash dividends paid and repayment of long- term loans payable,
net cash used in financing activities for the year ended March 31, 2016 were 17,317 million yen (12,127
million yen for the previous year).
As a result, cash and cash equivalents at the end of this term were 35,335 million yen, reflecting negative
324 million yen effect of exchange rate changes and 61 million yen increase from newly consolidated
subsidiaries (31,343 million yen for the previous year). Therefore, cash and cash equivalents at the end of
this term increased 3,992 million yen compared to previous year.

<Reference>
The transit of Cash Flow indices

Shareholders' equity ratio (%)
Shareholders' equity ratio
on market value basis (%)
Debt repayment ratio (%)
Interest coverage ratio (times)

For the fiscal year ended
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016
62.4
63.0
65.7
66.9
68.1
69.5
1.8
49.7

93.1
1.7
62.0

119.5
1.5
82.6

175.4
1.7
91.5

196.2
1.1
154.1

Stockholders’ equity ratio: stockholders’ equity/total assets
Stockholders’ equity ratio on market value basis: aggregate market value of common stock/total assets
Debt repayment ratio: interest-bearing liabilities/cash flows from operating activities
Interest coverage ratio: cash flows from operating activities/interest payments*1: All indicates are calculated based on the consolidated financial figures.
*2: Aggregate market value of common stock is calculated by multiplying the market price at the end ofeach fiscal year by the number of outstanding shares, excluding treasury stock, at the end of each fiscal
year.
*3: Cash flow represents operating cash flow.
*4: Interest-bearing liabilities include all liabilities on the consolidated balance sheets that incur interest.

(3) Basic policy on distribution of earnings and dividends for current and next term
The Company’s basic policy of profit allocation is returning to shareholders by improving its value throughincreasing revenue in the medium and long terms.
In line with our basic policy of profit allocation, the year-ended dividend is scheduled to be 26.00 yen per
share. Accordingly, the total annual dividend per share for the fiscal year ended March 31, 2016 will become
44.00 yen, which was 36.00 yen in the previous fiscal year.
The total annual dividend per share for the fiscal year ended March 31, 2017 is scheduled to be 50.00
yen (second quarter: 24.00 yen, year-end: 26.00 yen).

-5-

2. Management Policy(1) Basic Management Policy
As a group growing with customers, we will strengthen the brand nurtured by our faithful corporate culture
and maximize corporate value through productive activities for the society.

2) Target Management Indicator
Our most important objectives are “Return on Equity (ROE)” which represents the efficiency of managing
shareholders’ equity and “Operate Profit Ratio to Sales” which leads to a high-value added company. We
will expand our business to increase our revenue.

(3) Mid-and Long-term Management Strategies and Issues to be addressed
In April 2013, The Nissan Chemical Group launched “Vista2015 Stage II,” a three-year medium-termbusiness plan. Since then, we have been executing two basic strategies which are “creating new products
and new businesses” and “pursuit of business structure reforms.” Regarding new products, active
ingredient of veterinary pharmaceutical, display materials and others have enjoyed growth, while thedevelopment of new materials such as organic nanoparticle and three-dimensional cell culture media havemade progress. We have also steadily advanced the development of research infrastructures to accelerate
the creation of new materials, established a local subsidiary in China, and pursued other initiatives. As aresult of these efforts, operating profit for the fiscal year 2015 reached 28.6 billion yen, exceeding the target
by 2.6 billion yen.
Our performance is healthy for now, however, future world economy is uncertain. Under this circumstance,
we have identified that “foray into new business domains”, “development of new products that match market
trends”, and “enhancing R&D capability” as our tasks for ensuring sustainable growth. To overcome thesechallenges and secure growth, in April 2016, we launched “Progress2030,” a long-term business plan forthe period to 2030, and “Vista2021,” a six-year medium-term business plan which shows our ideal situationof 2021.
Upon formulating “Progress2030”, we have recognized that we could practice corporate vision through
CSR activities. Under this thought, we adopted new business model called “Future-Creating Enterprise that
responds to social needs with unique, innovative technologies.” We will strive to develop in synergy withsociety by helping to solve social issues such as global warming, energy problems and food shortages.
To be more specific, we have drawn our year 2030 vision as “A corporate group which provides newvalues for helping to enrich people’s lives by integrating internal and external knowledge with facing
globally-changing society” and “A group of first-class pioneers who blaze a way to the future withenthusiasm by trusts they have built and skills they have cultivated”. In addition to this, we have set
business domains as “Information & Communication”, “Life Sciences”, “Environmental & Energy” and“Chemicals & Affiliates”. We will aim for net sales of 300 billion yen and operating income for 50 billion yen
through “Entering new fields by evolving, deepening, and enhancing unique technologies”.
Under “Vista2021”, we will focus to establish the foundation of Environment & Energy business and aposition as a promising chemical manufacturer that keeps moving forward with a strong presence. We havedefined a six-year plan starting in FY2016 (The period is divided into the first three years (2016 to 2018) as-6-

Stage I and the second three years (2019 to 2021) as Stage II. We set our goal for the last year of eachstage as net sales of 217 billion yen and operating income of 35 billion yen (FY2018) and net sales of 250
billion yen and operating income of 40 billion yen (FY2021). As the existing products on Stage I, while new
products on Stage II will play the leading role on group income, we have set up the following three basic
strategies on Stage I.
1)

Maximizing the profit from existing products
Boosting the market shares of products for growing fields, driving overseas business expansion, andreducing costs

2)

Improving marketing power
Identifying market needs by moving closer to customers and obtaining information about advanced
materials

3)

Enhancing R&D capability
Improving existing technologies, establishing new technologies, and accelerating the developmentof new products

Under Corporate Philosophy, “Nissan Chemical Industries, Ltd. contributes to society with superior
technology, products, and services, while striving for harmony with the environment”, we continue to placeemphasis on transparency of management, compliance with laws and social imperative, contribution toenvironment and society. We aim to become a company that is trusted by all of our stakeholders.

(Notice) Our Basic CSR Policies are as follows.
(1) Conduct sensible business activities as a member of the international community in compliance withlaws and regulations.
(2) Enhance corporate value by providing safe and useful products and services.
(3) Strive proactively to eliminate accidents and disasters and protect the global environment.
(4) Disclose information appropriately with a focus on dialogue with stakeholders.
(5) Create a cheerful and pleasant place to work by respecting the individuality and personality of
employees.
(6) Conduct ourselves as a good corporate citizen and a respected member of society.

3. Basic approach to the selection of Accounting Standards
The Company will research on trend of IFRS in the country and overseas and correspond properly when
applying IFRS.

-7-

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)
As of
March 31, 2015

As ofMarch 31, 2016

AssetsCurrent assets
Cash and deposits

31,34335,335

Notes and accounts receivable - trade58,13357,606Merchandise and finished goods

28,12330,19859

43

Raw materials and supplies

7,885

8,266

Accounts receivable - other

2,097

4,726

Work in process

841

1,039

Deferred tax assets

3,102

2,968

Other

1,890

2,030

Short-term loans receivable

Allowance for doubtful accounts
Total current assets

(29)

(34)

133,448

142,181

58,21759,662(35,514)(37,027)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net

22,702

22,635

Machinery, equipment and vehicles

114,888116,267(104,548)(107,181)

10,3399,086

30,70433,828(26,876)(28,819)

3,828

5,008

9,318

9,195

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

225

116

(150)

(87)

Leased assets, net

74

28

Construction in progress

864

1,506

47,12847,461

Goodwill

42Software

308

476

Other

361

424

Total intangible assets

674

903

38,711

33,251

52

99

Net defined benefit asset

2,064

2,086

Other

1,962

2,354

Allowance for doubtful accounts

(187)

(167)

42,60337,62390,40685,988

223,854

228,169

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Deferred tax assets

Total investments and other assets
Total non-current assets
Total assets-8-

(Millions of Yen)
As of
March 31, 2015

As ofMarch 31, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade

15,077

15,350

Short-term loans payable

22,951

22,938Current portion of long-term loans payable

3,090

3,060

Income taxes payable

3,807

4,576

Provision for bonuses

1,827

1,874

Provision for directors' bonuses

24

21

Provision for environmental measures

315

350

Other

8,940

9,765

Total current liabilities

56,03457,937Long-term loans payable

9,060

7,100

Deferred tax liabilities

4,621

3,095

704

680

-

309

Non-current liabilities

Provision for business structure improvement
Provision for loss on business of subsidiaries and associates

174

102

Other

1,997

2,020

Total non-current liabilities

16,556

13,30772,59071,244

Capital stock

18,942

18,942

Capital surplus

13,611

13,611Retained earnings

105,602

115,878

Treasury shares(584)(4,281)

137,572

144,151

10,676

10,515894

171

Net defined benefit liability

Total liabilities
Net assets
Shareholders' equity

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 aseets

-9-

639

554

12,210

11,241

1,481

1,531

151,263

156,924

223,854

228,169

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Millions of Yen)
As of
March 31, 2015

As ofMarch 31, 2016

Net sales

171,206

176,894

Cost of sales

106,184

106,146

Gross profit

65,02270,748Selling, general and administrative expenses

39,67542,142

Operating income

25,34728,60620

16

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method

Gain on sales of non-current assets

613

580

1,093

858

12

274

Other

1,161

748

Total Non-operating income

2,901

2,478

Interest expenses

211

194

Loss on disposal of non-current assets

332

319

Plant stop losses

420

327

-

211

-

165

892

334

Non-operating expenses

Product compensation expenses
Foreign exchange losses
Other
Total Non-operating expenses

1,857

1,552

26,391

29,531Gain on sales of investment securities

-

3,081

Total Extraordinary income

-

3,081

Impairment loss

-

3,941

Loss on business of subsidiaries and associates

-

311

390

-

Ordinary income
Extraordinary income

Extraordinary losses

Product compensation expenses
Business structure improvement expenses

704

-

1,095

4,253

Income before income taxes and non-controlling interests

25,29628,360

Income taxes - current

7,265

7,955

Income taxes - deferred(351)(2,151)

Total income taxes

6,914

5,804

Profit18,381

22,556182

206

18,19922,350Total Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 10 -

- Consolidated Statements of Comprehensive Income(Millions of Yen)
As of
March 31, 2015
ProfitAs ofMarch 31, 2016

18,381

22,556

4,538

(159)

Foreign currency translation adjustment

952

(800)

Remeasurements of defined benefit plans, net of tax

221

(84)

0

(1)

Other comprehensive income
Valuation difference on available-for-sale securities

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

5,712(1,047)24,09421,508Comprehensive income attributable to owners of parent

23,832

21,380Comprehensive income attributable to non-controlling interests

261

127

Comprehensive income(Comprehensive income attribute to)- 11 -

(3) Consolidated Statements of Changes in Net Assets
For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(Millions of Yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Retainedearnings

Capital surplus

18,942

13,611

Treasury stocks

98,121(698)

213
18,942

13,611

Total
shareholders'equity129,975
213

98,334(698)

130,189

Changes of items during period
Dividends of surplus(4,814)(4,814)

Profit attribute to owners ofparent18,19918,199Change of scope of consolidation-

Purchase of treasury stocks(6,001)(6,001)00

Disposal of treasury stocks

0

Cancellation of treasury stocks(0)(6,116)

6,116

-

-

-

7,268

114

7,382

18,942

13,611

105,602(584)

137,572

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference ontranslationof defined benefit
available-for-saleadjustment
plans
securities

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

6,138

20

417

Total
accumulated
othercomprehensive
income6,576

Non-controllinginterests

1,269

Total
net assets

137,822
213

6,138

20

417

6,576

1,269

138,035

Changes of items during period
Dividends of surplus(4,814)

Profit attribute to owners ofparent18,199Change of scope of consolidation-

Purchase of treasury stocks(6,001)

Disposal of treasury stocks

0

Cancellation of treasury stocks-

Net changes of items other thanshareholders' equity

4,538

873

221

5,633

211

5,845

Total changes of items during period

4,538

873

221

5,633

211

13,227

Balance at end of current period

10,676894

639

12,2101,481

151,263- 12 -

For the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(Millions of Yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Retainedearnings

Capital surplus

18,942

13,611

Treasury stocks

105,602

(584)

Total
shareholders'equity137,572-

18,942

13,611

105,602(584)

137,572

Changes of items during period
Dividends of surplus(6,269)(6,269)Profit attribute to owners ofparent22,35022,350Change of scope of consolidation

(500)

(500)

Purchase of treasury stocks(9,001)(9,001)00

Disposal of treasury stocks

0

Cancellation of treasury stocks(0)(5,304)

5,304

-

-

-

10,276(3,696)

6,579

18,942

13,611

115,878(4,281)

144,151

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference ontranslationof defined benefit
available-for-saleadjustment
plans
securities

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

10,676

894

639

Total
accumulated
othercomprehensive
income12,210Non-controllinginterests

1,481

Total
net assets

151,263-

10,676894

639

12,2101,481

151,263

Changes of items during period
Dividends of surplus(6,269)Profit attribute to owners ofparent22,350Change of scope of consolidation(500)

Purchase of treasury stocks(9,001)

Disposal of treasury stocks

0

Cancellation of treasury stocks-

Net changes of items other thanshareholders' equity

(161)

(722)

(84)

(969)

50

(918)

Total changes of items during period

(161)

(722)

(84)

(969)

50

5,660

Balance at end of current period

10,515

171554

11,241

1,531

156,924- 13 -

(4) Consolidated Statements of Cash Flows(Millions of Yen)
As of
March 31, 2015

As ofMarch 31, 2016

Cash flows from operating activities
Income before income taxes and non-controlling interests

25,29628,360Depreciation

8,452

9,684

Impairment loss

-

3,941

Interest and dividend income

(633)

(597)

Interest expenses

211

194

Increase (decrease) in provision for business structure
improvement

704

(23)

Increase (decrease) in provision for loss on business of
subsidiaries and associates-

309

Loss (gain) on sales of investment securities-(3,081)

332

319

Decrease (increase) in notes and accounts receivable - trade

Loss (gain) on disposal of non-current assets(3,775)143

Decrease (increase) in inventories(2,659)(2,716)

(950)

352

Increase (decrease) in notes and accounts payable - trade

Other

(714)

(514)

Subtotal

26,26336,372

Interest and dividend income received

1,386

1,177

Interest expenses paid

(223)

(194)

Income taxes paid

(6,974)(7,366)

Net cash provided by (used in) operating activities

20,452

29,989(1,648)(331)

Cash flows from investing activities
Purchase of investment securities

3,077

2,206

(8,568)(9,071)

Payments for retirement of property, plant and equipment

(253)

(262)

Net decrease (increase) in short-term loans receivable

(109)

(216)

Proceeds from sales and redemption of investment securities

Purchase of property, plant and equipment

Other
Net cash provided by (used in) investing activities

(574)

(742)

(8,076)(8,416)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

(854)

54

Proceeds from long-term loans payable

6,700

1,100

Repayments of long-term loans payable(7,066)(3,090)Cash dividends paid

(4,814)(6,269)Dividends paid to non-controlling interests
Purchase of treasury shares
Other
Net cash provided by (used in) financing activities

(50)

(70)

(6,001)(9,001)

(40)

(40)

(12,127)(17,317)

Effect of exchange rate change on cash and cash equivalents

337

(324)

Net increase (decrease) in cash and cash equivalents

585

3,931

Cash and cash equivalents at the beginning of period

30,75731,343-

61

31,34335,335

Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at the end of period- 14 -

(5)Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable.

(Changes in Accounting Policies)
Effective from the beginning of the first quarter of current consolidated fiscal year, the Company adopted
the "Revised Accounting Standard for Business Combinations"(Accounting Standards Board ofJapan(ASBJ) Statement No.21, issued on September 13, 2013, hereinafter referred to as the "AccountingStandard for Business Combinations"), "Revised Accounting Standard for Consolidated Financial
Statements"(ASBJ Statement No.22, issued on September 13, 2013, hereinafter referred to as the"AccountingStandard

for

Consolidation")

and"RevisedAccountingStandard

forBusiness

Divestitures"(ASBJ Statement No.7, issued on September 13, 2013, hereinafter referred to as the"Accounting Standard for Business Divestitures").
In applying these revised accounting standards, the Company records any difference arising fromchanges in equity interest in subsidiaries as capital surplus when the control over its subsidiaries maintains
and the corresponding acquisition-related costs are recognized as expenses when incurred. Also,
regarding business combinations conducted after the beginning of the first quarter of current consolidated
fiscal year, the disclosure method was revised to reflect the retrospective adjustment of purchase priceallocation after determination of provisional accounting method in the quarterly consolidated financial
statements of the fiscal period in which the business combination occurred. In addition, presentation
method of net income is amended and also, the presentation of "minority interests" is changed to"non-controlling interests". To reflect these changes in presentation, the quarterly consolidated financial
statements and consolidated financial statements in the previous fiscal year have been reclassified.
Concerning the application of the Accounting Standard for Business Combinations and others, theCompany is subject to the transitional treatment set out in Section 58-2(4) of the Accounting Standard forBusiness Combinations, in Section 44-5(4) of the Accounting Standard for Consolidation and in Section
57-4(4) of the Accounting Standard for business Divestitures, and these changes are effective from the
beginning of the first quarter of current consolidated fiscal year. Also, these changes have no effect on profit
and loss.

- 15 -

(Segment and Related Information)
Segment Information
1. General Information about reportable segments
The Company's reportable segments are components of the Group that engage in business activities, whose operating
results are regularly reviewed by the Board of Directors when making resource allocation and performance assessment
decisions, and for which discrete financial information is available.
Divisions by products and services are located in the headquarter, and each division works out a comprehensive
strategy applicable to their products and services and carries out their business activities.
The Company consists of segments based on divisions as follows:
Main Products

Segment

Basic Chemicals (melamine, sulfuric acid, nitric acid, ammonia, etc.)
Chemicals

Fine Chemicals (epoxy compound for LED sealants, solder resist and painting,flame retardant, chlorinated isocyanuric acid for sterilizing, etc.)

Performance
Materials
Agricultural chemicals
Pharmaceuticals

Display Materials (LCD alignment coating, etc.)
Semiconductor Materials (bottom anti-reflective coating for semiconductors, etc.)
Inorganic Materials (hard coating materials, electronic information materials, polishing materials, etc.)
Agricultural chemicals (herbicide, insecticide, fungicide, fungicide and insecticide, plant growth regulator)
active substance of veterinary medical product
LIVALO (anti-cholesterol drug), etc.
Custom Chemicals (custom manufacturing and process services for pharmaceutical companies)

Trading

Trading, etc.

Otherstransportation, landscaping, engineering, fertilizer, etc.

2. Basis of measurement of reported segment income or loss, segment assets and other material items
The accounting policies for the reportable segments are consistent with the Company's accounting policies used in the preparation of
its consolidated financial statements. Intersegment sales and income (loss) are recognized based on current market prices.

- 16 -

3. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(Millions of Yen)

Chemicals

Performance
Materials

Agriculturalchemicals

Pharmaceuticals

Customers

25,072

43,66842,2298,759

41,154

10,321

171,206－

Intersegment

9,190

5,702

3,452

53

13,235

10,561

42,195△ 42,195－

Total Sales

34,26349,37145,682

8,812

54,39020,882

213,401△ 42,195

171,206

Operating Income (loss)

1,895

12,019

9,244

2,308

1,679

580

27,727△ 2,380

25,347

Segment Assets

25,17343,92653,577

11,42618,486

9,910

162,501

61,353

223,854

1,384

3,561

1,374

902

70

375

7,670

305

7,975

Amortization of goodwill

－

5

468

－

2

－

476

－

476

Increase of property,
plant and equipment
and intangible assets

1,393

5,244

1,765

415

19

338

9,176

620

9,796

Trading

OthersAdjustment Consolidated
(1)
Total

Total

Sales
171,206

Other items
Depreciation andamortization

Notes (1): The adjustments are as follows:
1) The negative 2,380 million yen adjustment in segment income includes negative 386 million yen in intersegment eliminations and negative 1,993
million yen corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.
2) The 61,353 million yen adjustment in segment assets includes negative 11,165 million yen in inter-segment asset and liability eliminations and 72,518
million yen in corporate assets not attributable to any reportable segment.
The corporate assets are mainly group administrative assets which do not belong to segments.
3) The 305 million yen adjustment in depreciation and amortization is corporation expenses.
4) The 620 million yen adjustment in increase of property, plant and equipment and intangible assets is corporate assets.
The corporate assets are mainly group administrative assets which do not belong to segments.

2) For the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(Millions of Yen)

Chemicals

Performance
Materials

Agriculturalchemicals

Pharmaceuticals

Customers

25,15945,84043,695

8,668

43,014

10,516

176,894－

Intersegment

9,187

5,932

3,792

－

12,63010,362

41,905△ 41,905－

Total Sales

34,347

51,77347,487

8,668

55,64420,879218,800△ 41,905

176,894

Operating Income (loss)

3,927

12,021

10,831

2,006

1,813

475

31,075△ 2,469

28,606

Segment Assets

26,64340,972

52,917

11,144

19,672

10,147

161,498

66,671

228,169

1,427

5,124

1,411

818

57

386

9,226

403

9,629

Amortization of goodwill

－

51

－

－

2

－

54

－

54

Increase of property,
plant and equipment
and intangible assets

2,264

5,405

1,298

438

15

441

9,863

381

10,245

Trading

OthersAdjustment Consolidated
(1)
Total

Total

Sales
176,894

Other items
Depreciation andamortization

Notes (1): The adjustments are as follows:
1) The negative 2,469 million yen adjustment in segment income includes negative 361 million yen in intersegment eliminations and negative 2,107
million yen corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.
2) The 66,671 million yen adjustment in segment assets includes negative 11,172 million yen in inter-segment asset and liability eliminations and 77,843
million yen in corporate assets not attributable to any reportable segment.
The corporate assets are mainly group administrative assets which do not belong to segments.
3) The 403 million yen adjustment in depreciation and amortization is corporation expenses.
4) The 381 million yen adjustment in increase of property, plant and equipment and intangible assets is corporate assets.
The corporate assets are mainly group administrative assets which do not belong to segments.

- 17 -

Related Information
For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Sales by region(Millions of Yen)
Other Asia Europe andConsolidated(except
the United
Total
Japan, Korea)
States

Japan

Korea

104,234

16,98832,60917,373

171,206

Note: Sales are classified to either countries or regions based on customers are located.
For the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Sales by region(Millions of Yen)
Other Asia Europe andConsolidated(except
the United
Total
Japan,Korea)
States

Japan

Korea

104,032

18,401

34,39820,062

176,894

Note: Sales are classified to either countries or regions based on customers are located.

Information regarding impairment loss on non-current assets by reportable segments
For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Not applicable.
For the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)

Impairment loss

Chemicals

Performance
Materials

Agricultural
Chemicals

Pharmaceuticals

－

3,941

－

－

Trading

Others－(Millions of Yen)
Consolidated
Adjustment
Total

Total

－

3,941

－

3,941

Information regarding amortization and unamortized balance on goodwill by reportable segments
For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)

Balance as ofMarch 31, 2015

Chemicals

Performance
Materials

Agricultural
Chemicals

Pharmaceuticals

－

－

－

－

Trading

Others4(Millions of Yen)
Consolidated
Total

Total

Adjustment

4

－

－

4

For the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)

Balance as ofMarch 31, 2016

Chemicals

Performance
Materials

Agricultural
Chemicals

Pharmaceuticals

－

－

－

－

Trading- 18 -

Others2(Millions of Yen)
Consolidated
Adjustment
Total

Total

－

2

－

2

(Per Share Information)(Yen)
Year Ended March 31, 2015 Year Ended March 31, 2016
Net asset per share

949.71

1,006.56

Net income per share

113.99143.37

Notes:
1. Since residual securities do not exist, diluted net income per share is not presented.
2. Net income per share is calculated on the following basis.
(Millions of Yen)
Year Ended March 31, 2015 Year Ended March 31, 2016
Net income per share
Profit attribute to owners of parent

18,19922,350

Amounts not allocated to ordinary shares－－

Net income allocated to ordinary shares
Average number of ordinary shares
outstanding during each year

18,19922,350159,654,159

155,893,811

3. Net asset per share is calculated on the following basis.
(Millions of Yen)
Year Ended March 31, 2015 Year Ended March 31, 2016
Net asset per share

151,263

156,924

Amount deducted from net asset

1,481

1,531

(Non-controlling interest)
Net asset as of year end allocated toordinary shares
Number of ordinary shares as of year
end used to calculate net asset per share-1,481-1,531

149,782

155,392

157,713,321

154,379,413(Significant Subsequent Events)
1. The Company, at the Board of Director’s meeting held on April 25, 2016, has decided to cancel its own shares
under Article 178 of the Japanese Corporation Act.
(1) Class of shares to be cancelled :Common shares of company(2) Number of shares to be cancelled :1,000,000 shares(Rate of shares to be cancelled to the total outstanding shares before cancellation: 0.64%)(3) Scheduled date of cancellation :May 10, 2016

2. The Company, at the Board of Director’s meeting held on May 12, 2016, has decided to repurchase its shares in the market
under Article 156 of the Japanese Corporation Act, as applied pursuant to Article 165, Paragraph 3 of the same Act, .
(1) Purpose of repurchaseTo facilitate flexible implementation of capital policy in response to changes in the business environment.
(2) Details of repurchase①Class of shares:

Common shares of the company②Total number of shares:

Up to 1,700,000 shares(Rate of the maximum shares to be acquired to the total outstanding shares: 1.10%)③Total amount:

Up to 5,000,000,000 yen④Period of repurchase:

From May 13, 2016 to August 31, 2016

- 19 -