Consolidated Financial Results for the Year Ended March 31, 2024
(JPGAAP)May 13, 2024
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: NOMURA Hiroshi, Deputy Head of Finance and Accounting Department
Tel. +81 3 4463 8401
Scheduled date of annual shareholders' meeting: June 26, 2024
Scheduled dividend payment date
: June 27, 2024
Scheduled date of submitting the Annual Securities Report: June 26, 2024
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, 2024 (From April 1, 2023 to March 31, 2024)(% indicates the rate of increase/decrease year on year)(1) Consolidated Operating Results
OperatingincomeNet salesYear ended March 31, 2024
Year ended March 31, 2023
(Note) Comprehensive income:Million yen
226,705
228,065% Million yen%(0.6)
48,201(7.8)
9.7
52,283
2.6
Year ended March 31, 2024
Year ended March 31, 2023

Basic earnings
per shareYen
272.82291.36

Year ended March 31, 2024
Year ended March 31, 2023
(Reference) Equity in earnings of affiliates

Ordinary
incomeDiluted net income
per share

Net income attributable toowners of parent

Million yen% Million yen
51,629(7.5)
38,03355,793
3.9
41,087: 42,461 million yen, 1.8%
: 41,690 million yen, 14.2%

Ratio ofnet income toshareholders'equityYen－－: Year ended March 31, 2024
: Year ended March 31, 2023

%
17.1
19.4

%
(7.4)
6.0

Ratio of ordinary
income tototal assets

Ratio of operating
income tonet sales

%
16.6
19.3
: 536 million yen: 1,485 million yen

%
21.3
22.9

(2) Consolidated Financial Position
Total assets
As of March 31, 2024
As of March 31, 2023
(Reference) Shareholders' equity:

Net assets

Net assets
per share

Equity ratio

Million yen
323,458
298,715

Million yen
230,903
221,526

%
70.3
73.1

As of March 31, 2024
As of March 31, 2023

: 227,470 million yen: 218,419 million yen

Yen
1,641.05
1,557.12(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
33,70135,226

Year ended March 31, 2024
Year ended March 31, 2023

Cash flows fromfinancing activities

Million yen(18,741)(19,643)

Million yen(22,101)(25,030)

Cash and cash
equivalents at
end of period
Million yen
22,73829,647

2. Cash Dividends
Cash dividends per share

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Outlook)

Dividend
Ratio of
Total cash
dividend
payoutdividends
ratio
to net assets(annual) (consolidated)(consolidated)First
quarter

Secondquarter

Third
quarterYear-end

Yen
－
－

Yen
70.00
70.00

Yen
－
－

Yen
94.00
94.00

Yen Million yen
164.0023,076164.0022,816

%
56.3
60.1

－

70.00

－

94.00

164.0058.9

Annual

%
10.9
10.3

3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025 (From April 1, 2024 to March 31, 2025)(% indicates the rate of increase/decrease against the same period of the previous year)
Net income
Operating
Ordinary
Basic earnings
attributable to
Net sales
incomeincomeper shareowners of parent
Million yen% Million yen% Million yen% Million yen%
Yen
Six months
109,600
3.7
24,000(0.4)
23,300 (11.1)
18,100(7.2)
131.15ending September 30, 2024
Year ending March 31, 2025
234,100
3.3
50,0003.7
50,500(2.2)
38,4001.0
278.67

4. Notes(1) Changes in significant consolidated subsidiaries(Changes in specified subsidiaries involving changes in scope of consolidation)
Newly Included: 1 company (Company name: Nippon Phosphoric Acid Corporation Limited): Yes(Note) Nippon Phosphoric Acid Corporation Limited changed the trade name into NC Tokyo Bay Corporation on July 3, 2023.
(2) Changes of accounting policies and accounting estimates, and restatement
1. Changes of accounting policies due to revisions of accounting standards
2. Changes of accounting policies other than the above
3. Changes in accounting estimates: None: None: None4. Restatements: None(3) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of March 31, 2024
: 138,800,000
As of March 31, 2023
: 141,300,000
2. Number of treasury shares
As of March 31, 2024
As of March 31, 2023

: 186,649: 1,029,072

sharessharessharesshares

3. Average number of shares outstanding over the year
As of March 31, 2024
: 139,407,930

shares

As of March 31, 2023

shares: 141,019,817(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, andthey are included in the number of treasury 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 144,354 shares.
This is not included in the average number of shares outstanding.
* Presentation regarding implementation status of audit proceduresThis 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.
* 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.
The prerequisite information of outlook and other items are on page 6 to page 7.
* 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. Analysis of Business Performances and Financial Position ........................................................................................... 2(1) Analysis of Business Performance ........................................................................................................................... 2(2) Analysis of Financial Position ................................................................................................................................... 5(3) Position of Cash Flow............................................................................................................................................ 5(4) Future Outlook ........................................................................................................................................................

6

2. Basic Approach to the Selection of Accounting Standards ............................................................................................ 7
3. Consolidated Financial Statements ...............................................................................................................................

8(1) Consolidated Balance Sheets ..................................................................................................................................

8(2) Consolidated Statements of Income / Consolidated 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 Going Concern) ............................................................................................................... 15(Segment and Related Information) .................................................................................................................... 15(Per Share Information) ....................................................................................................................................... 20(Significant Subsequent Events) ......................................................................................................................... 21

1

1. Analysis of Business Performance and Financial Position(1) Analysis of Business Performance(Operating results for the fiscal year)
During the current fiscal year (April 1, 2023 to March 31, 2024), the domestic economy showed a recovery trend in
consumer spending and automobile exports in the first half of the fiscal year, in addition to an increase in inbounddemand driven by the weak yen. However, the recovery was limited due to sluggish personal consumption toward theend of the fiscal year, as well as automobile production cutbacks and other factors. Under these circumstances, in theChemicals Segment, sales of both Basic Chemicals and Fine Chemicals decreased. In the Performance Materials
Segment, sales of Semiconductor Materials declined but sales of Display Materials were fine. In the Agricultural
Chemicals Segment, sales increased. In the Healthcare Segment, sales decreased.
As a result, both sales and each income were below the same period of the previous fiscal year. Although Ordinary
income exceeded the forecast announced in November, sales, operating income and net income attributable to owners ofparent fell short of the forecast.
(Million yen, amounts rounded down to the nearest million yen)
FY2022(Actual)FY2023(Actual)Year on yearchangeFY2023(Outlook)

Change from
Outlook

Sales

228,065

226,705(1,360)227,500(795)

Operating income

52,28348,201(4,081)

48,600(399)

Ordinary income

55,79351,629(4,164)51,300+329

Net income attributableto owners of parent

41,08738,033(3,053)38,400(367)

Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, sales of nitric acid products (metal dissolution, surface treatment, etc.) increased. Sales ofmelamine (adhesives agent) declined as a result of the termination of sales in the third quarter of the previous fiscal year
under the structural reforms. In Fine Chemicals, sales of environmental related products (sterilizing and disinfecting
agents for pools and septic tanks, etc.) and "TEPIC" (powder coating agent for paint, sealants, etc.) decreased due to theimpact of falling market demand.
As a result, sales of this segment were 35,562 million yen (a decrease of 3,471 million yen) and operating income was
48 million yen (a decrease of 1,330 million yen). Compared to the outlook, sales were below 3.0 billion yen and operating
income was below 0.8 billion yen.
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) increased. In Semiconductor Materials, sales ofantireflective 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, and Oilfield materials (solvents to improve the efficiency of shale oil and gas extraction) decreased.
As a result, sales of this segment were 84,567 million yen (an increase of 1,961 million yen) and operating income was
22,530 million yen (a decrease of 2,919 million yen). Compared to the outlook, sales were above 0.1 billion yen andoperating income was below 0.8 billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.

2

The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased. In Japanese domestic market, sales of"GRACIA"(insecticide) were firm, but sales of "ROUNDUP" (non-selective foliar application herbicide) decreased. In theoverseas market, although sales of "GRACIA" grew, sales of "LEIMAY" (fungicide) decreased.
As a result, sales of this segment were 82,113 million yen (an increase of 529 million yen) and operating income was23,398 million yen (an increase of 267 million yen). Compared to the outlook, sales were below 1.9 billion yen andoperating income was above 0.1 billion yen.
The Pharmaceuticals Segment
Sales of "LIVALO" (anti-cholesterol drug) declined, mainly to overseas markets. In "Custom Chemicals"(custom
manufacturing and solution proposal business for pharmaceutical companies), sales of generic active pharmaceuticalingredients decreased.
As a result, sales of this segment were 6,300 million yen (a decrease of 373 million yen) and operating income was
2,814 million yen (a decrease of 175 million yen). Compared to the outlook, sales were above 0.4 billion yen andoperating income was above 0.2 billion yen.
Trading
Sales of this segment were 103,794 million yen (an increase of 4,728 million yen) and operating income was
3,701 million yen (a decrease of 0 million yen). Compared to the outlook, sales were above 2.9 billion yen and operating
income was above 0.4 billion yen.
OthersSales of this segment were 30,167 million yen (an increase of 3,782 million yen) and operating income was 572 million
yen (a decrease of 307 million yen).

(Mid-and Long-term Management Strategies and Issues to be addressed)
In April 2022, we, Nissan Chemical Corporation and our group companies launched our new long-term business plan
"Atelier2050" and mid-term business plan "Vista2027".
In the "Vista2027", we identified the following challenges to tackle for our future development: "Further strengthen thedevelopment of new products", "Refine business plans", and "Enhance and improve business efficiency". And we have
implemented measures based on the four basic strategies.
Regarding to the first strategy of "Deeply exploit business areas and increase marketing ability", we found that "Venus
Oilclean", a microorganism formulation that decomposes oils and fats in wastewater from food factories, can decompose
insoluble matter of dead microorganisms and oil ball, and we have started making proposals for other uses. In the field of
secondary battery, in which demand is expected to increase, our product is used as materials of the secondary battery for
EV(electric vehicles).
Regarding to the second strategy of "Promote sustainable management", in order to continuously improvement ofresponsible care activities, the Climate Change Committee, which was established in 2022, conducts crossorganizational activities to address the increasingly serious issue of climate change. In FY2023, we have started
management accounting that utilizes internal carbon pricing (ICP), which treats GHG (greenhouse gas) emissions ascosts. When formulating our capital investment plans, we have shifted to a system that takes into account not only profit
and loss but also reductions in GHG emissions and makes comprehensive management decisions regarding
investments. Regarding sustainable procurement, we conducted a survey of suppliers, the number of companies has
decreased which did not meet our standards as a result of asking for cooperation in making improvements.

3

Regarding to the third strategy of "Strengthen the creation and co-creation process of values", in order to expand
human capital management, we are promoting the creation of infrastructure and environments that encourage value
creation and co-creation. We aim to develop human resources and improve the workplace environment in order to realize
an organization in which diverse human resources can take on challenges toward their own goals and they aspire toward
personal growth, while upholding our strength of “integrity”. Specifically, in order to strengthen human resource
development, we have started human resource development meetings by job categories and career dialogues, as well as
intrapreneurship program and the 10% Challenge (a system that allows employees to devote 10% of their annual working
hours to challenges in areas outside of their normal work). Especially, in career dialogues, we aim to promote theappropriate allocation of human resources with consideration to career design and improve productivity and retention
rates.
Regarding to the fourth strategy of "Expand market shares and profits of existing businesses", in the Chemicals
Segment, reinforcement of our high-purity sulfuric acid manufacturing facilities progressed smoothly, and we built astructure to increase sales in response to expanding demand.
In the Performance Materials Segment, "Rayalign", a photo-alignment material for IPS liquid crystal, which has
excellent viewing angle characteristics and color reproducibility, keep a significant market share for smartphones, IT(information technology), and automotive applications. Additionally, the second manufacturing base of our Korean
subsidiary NCK Co., Ltd., which manufactures materials for front-end processes for semiconductors, has been
established and started to manufacture the products for customer approval.
In the Agricultural Chemicals Segment, plants for the fungicide "LEIMAY" and the insecticide "GRACIA" at Nissan
Bharat Rasayan Private Limited, an Indian subsidiary established to strengthen the product supply system, have begun
the manufacturing and shipments of the active ingredients. Additionally, in Japan, we have completed construction of aplant for the active ingredient "VERDAD", an herbicide that is highly effective against difficult-to-control paddy field weeds.
It will come out as soon as marketing authorization is registered.
In the Healthcare Segment, a new generic active pharmaceutical ingredients project has started, and we have reacheda technical cooperation agreement with a partner for our manufacturing active pharmaceutical ingredients. We have also
made significant progress in Oligonucleotide Drug Discovery, and as stated in our news release in April 2024, we havesigned to Strategic Collaboration Agreement to discover and develop oligonucleotide therapeutics with Sanwa Kagaku
Kenkyusho Co., Ltd. Evaluation the efficacy and safety nucleic acid of compounds, which is designed using our
proprietary oligonucleotide technology, by our partners with extensive knowledge and experience. Due to that, we will
accelerate the creation of drug candidates.
As mentioned above, our mid-term business plan is making steady progress, and the results are showing.
On the other hand, FY2023 was the second year of Stage I, the first three years of Vista 2027, there were deviations
from the plan in certain businesses and areas. Regarding financial indicators, three of the four KPIs, operating profit
margin (target 20% or more), dividend payout ratio (target 55%), and total shareholder return ratio (target 75%), achieved
our target, but our return on equity ROE was 17%, which was less than our target of 18%. In terms of revenue, both sales
and operating income decreased compared to the previous year, resulting in a break in the series of record highs forthem. Although, this is due to significant changes in the external environment such as demand, raw materials price, andexchange rates, as well as the impact of natural disasters, we take very seriously that this is due to the imbalance in thebusinesses that drive business results and the delay in creating new products that should serve as growth engines thatwill contribute to improving profit margins. In FY2024 we will review the plan for Stage II, the second three years ofVista2027. We thoroughly analyze the discrepancy factors and identify issues in Stage I, and carefully review strategies,
measures, and action plans. In order for our group to continue to be a company chosen and sought after by society, we
will then formulate a plan for sustainable growth.

4Our business base is "Contribute to the protection of the global environment and the existence/development of
humanity, offering the value sought by society.", which is our Corporate Philosophy. And our Corporate Slogan is"WHERE IT ALL BEGINS". With a desire to transform, we are focusing on creating new products and expanding ourbusiness. We strongly promote management soundness and transparency, thorough compliance, consideration for theenvironment, and social contribution activities. We are committed to becoming a corporate group trusted by all
stakeholders.

(2) Analysis of Financial Position
Total assets as of March 31, 2024 were 323,458 million yen (an increase of 24,742 million yen from the previous year). It
is mainly due to the increase of merchandise and finished goods, buildings and structures and machinery, equipment andvehicles.
Total liabilities as of March 31, 2024 were 92,554 million yen (an increase of 15,365 million yen). It is mainly due to theincrease of short-term loans payable.
Net assets as of March 31, 2024 were 230,903 million yen (an increase of 9,376 million yen).
As a result of these factors, equity ratio was 70.3% (a decrease of 1.3% from March 31, 2023).

(3) Position of Cash Flow
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain andloss in working capital, net cash provided by operating activities for the consolidated fiscal year ended March 31,
2024 was 33,701 million yen (35,226 million yen for the previous year).
Due to investment on plant and equipment, net cash used in investing activities for the consolidated fiscal year ended
March 31, 2024 was 18,741 million yen (19,643 million yen for the previous year).
Due to payment for dividends and of long-term loans payable, share repurchase, net cash used in financing activities forthe consolidated fiscal year ended March 31, 2024 was 22,101 million yen (25,030 million yen for the previous year).
As a result of these factors, cash and cash equivalents for the consolidated fiscal year ended March 31, 2024 were
22,738 million yen (29,647 million yen for the previous year), reflecting exchange of 231 million yen. It increased by
6,909 million yen compared to the previous year.
<Reference> The transit of Cash Flow indices
For the year ended
March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024
Shareholders’ equity ratio (%)

73.7

74.9

73.6

73.1

70.3

Shareholders’ equity ratio
based on market value (%)

229.7

299.0

366.1

282.0

245.3

Debt repayment ratio (year)

0.7

0.6

0.5

0.8

1.2

Interest coverage ratio (times)

288.5

573.3

571.5

139.6

64.0

Shareholders' equity ratio: shareholders' equity/total assets

Shareholders' equity ratio based on market value : market capitalization/total assets
Debt repayment ratio: interest-bearing liabilities/cash flows from operating activities

Interest coverage ratio: cash flows from operating activities/interest payments

Notes: (1) All indicates are calculated based on consolidated financial figures.
(2) Market capitalization is calculated based on the number of shares outstanding, excluding treasury shares.
(3) Cash flows represents operating cash flow.
(4) Interest-bearing liabilities refer to all liabilities recorded in the consolidated balance sheets that incur interest.

5(4) Future Outlook(Outlook of business result for the next term)
Outlook of Financial Results(Billion yen, amounts rounded to the nearest billion yen)
FY2023
Actual(A)

FY2024
Outlook(B)

Increase or
decrease(B-A)

Rate of change
(%)

Sales

226.7

234.1

+7.4

+3.3%

Operating income

48.2

50.0

+1.8

+3.7%

Ordinary income

51.6

50.5

(1.1)

(2.2)%Net income attributable to owners ofparent

38.0

38.4

+0.4

+1.0%

272.82 yen

278.67 yen+5.85 yen

+2.1%

-

-

Basic earnings per share
Average U.S. dollar exchange rate

H1
H2

145 yen

145 yen
140 yenSegment Sales and Operating Income(Billion yen, amounts rounded to the nearest billion yen)
Sales
FY2023
ActualOperating income
FY2024
Outlook

FY2023
ActualFY2024
OutlookChemicals

35.6

37.7

0.0

0.6

Performance Materials

84.6

91.9

22.5

24.4

Agricultural Chemicals

82.1

84.9

23.4

24.1

Healthcare

6.3

6.4

2.8

2.3

Trading

103.8

104.1

3.7

3.2

Other

30.2

28.7

0.6

0.7

Adjustment(115.8)(119.6)

(4.8)

(5.3)

Total

226.7

234.1

48.2

50.0

We estimate that sales will be 234.1 billion yen, operating income will be 50.0 billion yen, ordinary income will be 50.5
billion yen and net income attributable to owners of parent will be 38.4 billion yen. The above outlook is calculated basedon the assumption that the exchange rate will be 145 yen in the first half of the year and 140 yen in the second half of theyear per U.S. dollar.

6

(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 company value throughincreasing revenue in the medium and long terms.
In medium-term business plan “Vista2027” Stage I launched from April 2022, the company aimed to realize dividend
payout ratio to be 55% and total payout ratio to be 75% from FY2022 onward, and they were 60.1% and 86.2% in
FY2023. In FY2024, the company aims to realize dividend payout ratio to be 55% and total payout ratio to be 75%.
The year-end dividend is scheduled to be 94 yen per share. The total annual dividend per share for the current year
ended March 31, 2024 will be as follows:
Annual dividend for FY2023

164 yenAnnual dividend for FY2022

164 yenTotal annual dividends per share for the year ending March 31, 2025 is planned to be 164 yen (second quarter: 70 yen,
year-end: 94 yen).

(Target Management Indicator)
Our most important objectives are “Return on Equity (ROE)” which represents the efficiency of managing shareholders’equity and “Operating Profit Margin” which leads to a high-value added company. We will expand our business toincrease our revenue.
We aim to realize Return on Equity (ROE) to be above 18% in medium term management plan “Vista2027” Stage I
launched in April 2022.
In addition, the medium-term management plan “Vista2027”, which started in April 2022, defines Key Performance
Indicators (KPI) as follows.
Financial indicators (Plan for FY2022-2027)
OP Margin

Above 20%

ROE

Above 18%

Dividend payout ratio

55% (Increased from 44.9% in FY2021)

Total Payout Ratio

75%

Non-financial indicators (Plan for FY2027)
Nissan Chemical Sustainable Agenda(total sales of products and services that contribute to

Maintain At least 55%

solving social issues/consolidated net sales)
At least 30% compared to FY2018

Reduction of GHG emissions(Achieve FY2030 Target 3 years ahead of schedule)

Positive response rate in survey of employee attitude on
human resource development
Percentage of female R&D professionals

At least 65%
At least 18%

2. 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

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As ofMarch 31, 2023

As ofMarch 31, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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

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

22,73888,80056,804
5
21,370
2,956
2,152
7,189
(48)
201,968

72,520(46,567)
25,95285,860(50,898)
34,962

Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net

151,653(136,861)
14,792

170,309(145,729)
24,579Tools, 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

42,153(38,379)
3,774
8,817
149
(10)
139
11,17664,65344,084(39,457)
4,626
9,064
160
(24)
135
4,004
77,372

1,722
9,813
11,5352,444
8,302
10,74727,3220531
2,140

26,119
50
519
3,737

3,186
(110)
33,071

3,054(111)
33,370109,260
298,715

121,489
323,458

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8As ofMarch 31, 2023

(Million yen)
As ofMarch 31, 2024

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 loss on business of subsidiaries and affiliates
Provision for business structure improvement
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for business structure improvement
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

9

19,942
25,327624

20,42739,062
634

7,879
2,413
－
418
15,556
72,161

4,940
2,548
310
2
18,63886,563

1,338
98
－
626

1,284
1,431
－
143

256

272

377
2,331
5,027
77,188

467
2,392
5,991
92,554

18,942
13,613

18,942
13,613

182,400(6,111)
208,844

182,327(943)
213,939

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

8,238
4,226
1,066
13,531
3,432
230,903
323,458

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income
Year Ended
March 31, 2023
228,065
121,262
106,80354,51952,283(Million yen)
Year Ended
March 31, 2024
226,705
121,930
104,774
56,572
48,201

203
1,323
1,485
1,296
694

161
1,560
536
2,210
810

Total non-operating income
Non-operating expenses
Interest expenses

5,004

5,280

252

526

Loss on disposal of non-current assets
Loss on sales of non-current assets
Plant stop losses
Other
Total non- operating expenses
Ordinary income

817
5
198
220
1,493
55,793

935
10
169
211
1,853
51,629Extraordinary income
Gain on sales of investment securities
Total extraordinary income

1,461
1,461

1,332
1,332

－
650
650

823
353
1,176

56,605
14,554633
15,18741,417329
41,08751,785
12,847730
13,57838,206
172
38,033

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

Extraordinary losses
Impairment losses
Loss on valuation of investment securities
Total 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

10

- 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

11

Year Ended
March 31, 2023
41,417(Million yen)
Year Ended
March 31, 2024
38,206

(625)
760
138

559
2,788
907

0

0

273
41,6904,254
42,461

41,270420

41,990470

(3) Consolidated Statements of Changes in Net Assets
For the Year Ended March 31, 2023(From April 01, 2022 to March 31, 2023)(Million yen)
Total shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

18,942

13,613Retainedearnings

Treasury shares

Total
shareholders'equity(8,261)

196,688

172,393

Changes of items during period
Dividends of surplus(20,084)(20,084)

Net income attributable toowners of parent

41,08741,087

Change in scope of consolidation

－

－

101

Share repurchase－101(9,002)(9,002)

55

55

Disposal of treasury shares－

Cancellation of treasury shares－(11,097)

11,097－－－

10,0062,150

12,156

18,942

13,613

182,400(6,111)

208,844

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

Accumulated other comprehensive income
Total
Valuationdifference on Foreign currency Remeasurements accumulatedtranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at beginning of current
period

8,304

898

21

9,223

Non-controllinginterests

2,097

Total
net assets

208,009

Changes of items during period
Dividends of surplus(20,084)

Net income attributable toowners of parent

41,087

Change in scope of consolidation

－

－

－

－

－

Share repurchase101(9,002)

Disposal of treasury shares

55

Cancellation of treasury shares－

Net changes of items other thanshareholders' equity

(625)

837

138

350

1,009

1,360

Total changes of items during
period

(625)

837

138

350

1,009

13,516

Balance at end of current period

7,678

1,735

159

9,574

3,107

221,526

12

For the Year Ended March 31, 2024 (From April 01, 2023 to March 31, 2024)(Million yen)
Total shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

18,942

13,613Retainedearnings

Treasury shares

Total
shareholders'equity(6,111)

208,844

182,400

Changes of items during period
Dividends of surplus(22,973)(22,973)

Net income attributable toowners of parent

38,03338,033

Change in scope of consolidation

－

－

－

Share repurchase－－(10,006)(10,006)

40

40

Disposal of treasury shares－

Cancellation of treasury shares－(15,133)

15,133

－

－

－

(73)

5,167

5,094

18,942

13,613

182,327(943)

213,939

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

Accumulated other comprehensive income
Total
Valuationdifference on Foreign currency Remeasurements accumulatedtranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at beginning of current
period

7,678

1,735

159

9,574

Non-controllinginterests

3,107

Total
net assets

221,526

Changes of items during period
Dividends of surplus(22,973)

Net income attributable toowners of parent

38,033

Change in scope of consolidation

－

－

－

－

－

Share repurchase－(10,006)

Disposal of treasury shares

40

Cancellation of treasury shares－

Net changes of items other thanshareholders' equity

559

2,490

907

3,956

325

4,282

Total changes of items during
period

559

2,490

907

3,956

325

9,376

Balance at end of current period

8,238

4,226

1,066

13,531

3,432

230,90313

(4) Consolidated Statements of Cash Flows(Million yen)
Year Ended
March 31, 2023
Cash flows from operating activities
Income before income taxes and non-controlling interests
Depreciation and amortization
Impairment losses
Loss on valuation of investment securities
Amortization of goodwill
Interest and dividend income
Loss (gain) on sales of investment securities
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
Payments for transfer of business
Payments of long-term loans receivable
Net decrease (increase) in short-term loans receivable
Purchase of long-term prepaid expenses
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-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 in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

14

Year Ended
March 31, 2024

56,605
10,878－650
101(1,527)(1,461)252
817(2,360)(12,382)217(3,057)
48,734
2,153(251)(15,408)

51,785
13,700823
353
101(1,722)(1,332)526
935(4,911)(12,424)(437)
477
47,875
2,242(525)(15,891)

35,22633,701

(506)
2,499
(25)
(18,236)(716)(1,221)－－(1,505)(282)
352(19,643)

(125)
1,742
(10)
(18,591)(820)(1,587)
－
(0)
1,070
(225)
(288)
(18,741)

3,940
780

10,924580(552)(20,084)(105)(9,002)(6)(25,030)
1,320(8,126)34,658(624)(22,973)－(10,006)(2)(22,101)
231(6,909)29,647

3,116－

29,64722,738(5) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.

(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 headquarters, 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:
Segment

Trading

Main Products
Basic chemicals (melamine※production terminated in June 2022, sulfuric acid, nitric acid,ammonia, etc.)
Fine chemicals (epoxy compound for LED sealants, solder resist and painting,flame retardants, chlorinated cyanuric acid for sterilizing, etc.)
Display materials (LCD alignment coating, etc.)
Semiconductor materials (bottom anti-reflective coating for semiconductors, etc.)
Inorganic materials (hard coating materials, electronic information materials, polishingmaterials, etc.)
Agrochemicals (herbicides, insecticides, fungicides, combination fungicide and insecticide,and plant growth regulators)
Animal health products
LIVALO (anti-cholesterol drug), etc.
Custom Chemicals (custom manufacturing and solution proposal business for pharmaceuticalcompanies)
Trading, etc.

OthersFertilizer, landscaping, Transportation, Engineering, Production of sulfuric acid, etc.

Chemicals

Performance
Materials

Agricultural Chemicals

Healthcare

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.

15

3. Information Regarding Sales, Income (Loss), and Segment Assets of Reportable Segments
1) For the Year Ended March 31, 2023 (From April 01, 2022 to March 31, 2023)
Chemicals

Performance Agricultural
Materials
Chemicals

Healthcare

Trading(Million yen)

Others

Total

Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside
customers(Note 1)

26,49566,22470,266

6,662

75,542

12,052257,243(29,177)

228,065Intersegment Sales

12,53816,381

11,31811

23,524

14,332

78,107(78,107)－

Total Sales

39,03482,606

81,584

6,673

99,066

26,384335,350(107,285)

228,065

1,379

25,44923,130

2,990

3,701

879

57,530(5,247)52,28334,332

61,287103,779

7,693

36,791

13,613

257,497

41,217

298,715

2,477

4,565

2,701

376

65

442

10,628249

10,878

－

－

101

－

－

－

101

－

101

3,659

8,711

6,232

449

66

366

19,485787

20,272

Segment Income or
Loss(Operating Income or
Loss)
Segment assets
Other items
Depreciation andamortization
Amortization of
goodwill
Increase of property,
plant and equipment
and intangible assets

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. The adjustments are as follows.
(1) (29,177) million yen adjustments in sales to outside customers includes (29,212)million yen elimination of agent
transactions, and 34 million yen sales not allocated to any reporting segments.
(2) (5,247) million yen adjustment in segment income includes 267 million yen in intersegment eliminations, 34 million
yen sales not attributable to any reporting segment, and (5,550) million yen corporate expenses not attributable toany reportable segment. The corporate expenses are mainly group administrative expenses which do not belong tosegments.
(3) 41,217 million yen adjustment in segment assets includes (17,921) million yen in intersegment eliminations and59,138 million yen in corporate assets not attributable to any reportable segment. The corporate assets are mainlygroup administrative assets which do not belong to segments.
(4) 249 million yen adjustment in depreciation and amortization is corporation expenses.
(5) 787 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.

162) For the Year Ended March 31, 2024 (From April 01, 2023 to March 31, 2024)
Performance Agricultural
Chemicals
Materials
Chemicals

Healthcare

Trading(Million yen)

Others

Total

Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside
customers(Note 1)

23,486

67,20567,414

Intersegment Sales

12,076

17,362

14,699Total Sales

35,562

84,567

82,11348

22,53023,39833,17870,645

2,731

Segment Income or
Loss(Operating Income or
Loss)
Segment assets

6,228

78,296

11,216

253,846(27,140)

226,70571

25,49818,951

88,660(88,660)－

6,300

103,794

30,167

342,506(115,801)

226,705

2,814

3,701

572

53,065(4,863)48,201

119,462

8,612

40,001

21,118293,01730,440323,458

5,986

3,319

367

77

748

13,229471

13,700

－

－

101

－

－

－

101

－

101

4,194

9,441

6,831

473

39

1,757

22,736468

23,204

Other items
Depreciation andamortization
Amortization of
goodwill
Increase of property,
plant and equipment
and intangible assets

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. The adjustments are as follows.
(1) (27,140)million yen adjustments in sales to outside customers includes(27,159)million yen elimination of agent
transactions, and 18 million yen sales not allocated to any reporting segments.
(2) (4,863) million yen adjustment in segment income includes 478 million yen in intersegment eliminations, 21 million
yen sales not attributable to any reporting segment, and (5,363) million yen corporate expenses not attributable toany reportable segment. The corporate expenses are mainly group administrative expenses which do not belong to
any segment.
(3) 30,440 million yen adjustment in segment assets includes (25,284) million yen in intersegment eliminations and55,725 million yen in corporate assets not attributable to any reportable segment. The corporate assets are mainlygroup administrative assets which do not belong to segments.
(4) 471 million yen adjustment in depreciation and amortization is corporation expenses.
(5) 468 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, 2023(From April 01, 2022 to March 31, 2023)(1) Sales by region(Million yen)Japan

105,937

China

Korea

30,547

Europe andthe United States

Other Asia

23,99429,25538,330Consolidated
Total

228,065

Note: Sales are classified to either countries or regions based on customers are located.
(2) Property, plant and equipment by region(Million yen)
Japan

Korea

49,858Europe andthe United States

India

7,630

6,673

Consolidated
Total

492

64,653For the Year Ended March 31, 2024 (From April 01, 2023 to March 31, 2024)(1) Sales by region(Million yen)Japan

103,027

China

36,730

Korea

Europe andthe United States

Other Asia

21,02330,57935,343

Note: Sales are classified to either countries or regions based on customers are located.
(2) Property, plant and equipment by region(Million yen)Japan

57,559Korea

11,800Europe andthe United States

India

7,504

508

18

Consolidated
Total

77,372

Consolidated
Total

226,705

Information regarding impairment loss on non-current assets by reportable segments
For the Year Ended March 31, 2023 (From April 01, 2022 to March 31, 2023)(Million yen)
Chemicals

Impairment loss

38

Performance Agricultural
Materials
Chemicals－－

Healthcare－

Trading－

Others

Total－

Adjustment

Consolidated
Total

－

38

38

For the Year Ended March 31, 2024 (From April 01, 2023 to March 31, 2024)(Million yen)
Performance Agricultural
Chemicals
Materials
Chemicals

Impairment loss

－

－

823

Healthcare－

Trading

Others

－

Total

3

Adjustment

Consolidated
Total

－

826

826

Information regarding amortization and unamortized balance on goodwill by reportable segments
For the Year Ended March 31, 2023 (From April 01, 2022 to March 31, 2023)(Million yen)
Performance Agricultural
Chemicals
Materials
Chemicals

Balance as ofMarch 31, 2023

－

－

201

Healthcare－

Trading－

Others

－

Total

201

Adjustment

Consolidated
Total

－

201

For the Year Ended March 31, 2024 (From April 01, 2023 to March 31, 2024)(Million yen)
Chemicals

Balance as ofMarch 31, 2024－

Performance Agricultural
Materials
Chemicals－

61

Healthcare－

19

Trading－

Others

－

Total

61

Adjustment

Consolidated
Total

－

61

(Per Share Information)(Yen)
Year Ended March 31, 2023

Year Ended March 31, 2024

Net assets per share

1,557.12

1,641.05

Net income per share

291.36272.82

Notes:
1. Since residual securities do not exist, diluted net income per share is not presented.
2. The Company has introduced “Board Benefit Trust (BBT)” from the second quarter of 2019, and has recorded theshares held by the Trust as treasury shares in the consolidated financial statements. Accordingly, for the purpose of
calculating net assets per share, the shares held by the Trust (included in treasury shares) are deducted from thenumber of shares outstanding at the end of the period. In addition, for the purpose of calculating net income per share,
the shares held by the Trust are deducted in calculating the average number of shares outstanding during the period.
The number of shares held by the Trust at the end of the current fiscal year was 144,000 shares, and the average
number of shares held by the Trust during the current fiscal year was 144,354 shares. (Trust at the end of the previous
fiscal year was 152,500 shares, and the average number of shares held by the Trust during the previous fiscal year
was 154,679 shares.)
3. Net income per share is calculated on the following basis.
Year Ended March 31, 2023

Year Ended March 31, 2024

41,08738,033

Amounts not allocated to ordinary shares (Million yen)－－

Net income allocated to ordinary shares (Million yen)

41,08738,033141,019,817

139,407,930

Year Ended March 31, 2023

Year Ended March 31, 2024

221,526

230,903

Amount deducted from net asset (Million yen)

3,107

3,432

(Non-controlling interest) (Million yen)

3,107

3,432

218,419

227,470

140,270,928

138,613,351

Net income per share
Net income attributable to owners of parent (Million yen)

Average number of ordinary shares
outstanding during each year (shares)
4. Net assets per share is calculated on the following basis.

Net asset (Million yen)

Net asset as of year end allocated toordinary shares (Million yen)
Number of ordinary shares as of year
end used to calculate net asset per share

20

(Significant Subsequent Events)
1. This is to notify that the company, at the Board of Directors’ meeting, has decided to repurchase its shares in themarket under Article 156 of the Companies Act, as applied pursuant to Article 165, Paragraph 3 of the same Act, on May
13, 2024.
(1) Purpose of repurchaseTo facilitate flexible implementation of capital policy in response to changes in the business environment.
(2) Details of repurchase1)Class of shares:

Common shares of the company

2)Total number of shares:

Up to 1,250,000 shares (Rate of the maximum shares to beacquired to the total outstanding shares: 0.90%)

3) Total amountUp to 5,000,000,000 yen

4) Period of repurchase

From May 14, 2024 to July 31, 2024

Reference
Number of treasury shares as of May 13, 2024
Total number of shares issued (excluding treasury shares): 138,757,351 shares
Number of treasury shares:

42,649 shares* Not including 144,000 shares of treasury shares which the Board Benefit Trust (BBT) has hold.

21