Consolidated Financial Results for the Three Months Ended June 30, 2016
(JPGAAP)
August 5, 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 submission date of quarterly report: August 10, 2016
Scheduled dividend payment date: ―Supplemental information: Yes
Financial results meeting: None
(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2016 (From April 1, 2016 to June 30, 2016)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year on year)

Operating
IncomeNet Sales% Millions of Yen

Millions of Yen

Three Months Ended June 30, 2016
Three Months Ended June 30, 2015
(Note) Comprehensive Income:Ordinary
IncomeProfit Attributable to
Owners of Parent% Millions of Yen

45,085

(0.2)

9,508

0.9

45,190

6.4

9,426

5.8

% Millions of Yen

%

9,357

(8.6)

6,826

(5.3)

10,240

10.2

7,208

14.0

Three Months Ended June 30, 2016

: 4,889 million yen , (39.5)%

Three Months Ended June 30, 2015

: 8,082 million yen , 17.1%

Diluted Profit
Attributable to
Owners of Parent
per Share

Net Income
per Share
Yen

Yen

Three Months Ended June 30, 2016

44.31

－

Three Months Ended June 30, 2015

45.85

－

(2) Consolidated Financial Position
Total Assets

As of June 30, 2016

Equity Ratio

Millions of Yen

Millions of Yen%

207,197

154,59973.9

156,92468.1

228,169

As of March 31, 2016
(Reference) Shareholders' equity:

Net Assets

As of June 30, 2016

: 153,148 million yen

As of March 31, 2016 : 155,392 million yen

2. Cash Dividends
Cash Dividends per Share
First
Quarter

SecondQuarter

Yen

Year Ended March 31, 2016－

Year Ending March 31, 2017－

Year Ending March 31, 2017
(Forecast)

Third
Quarter

Yen

Year-end

Yen

Annual

Yen

Yen

18.00

－

26.00

44.00

24.00

－

26.00

50.00

(Note) Revision of the latest released dividend forecast: None

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

Ordinary
Income% Millions of Yen

Six Months
Ending September 30, 2016

86,0002.8

13,300(6.8)

13,300Year Ending March 31, 2017

187,500

6.0

29,7003.8

30,400

Profit Attributable to
Owners of Parent

Net Income
per share% Millions of Yen%

Yen(12.1)

10,200

(8.5)

66.45

2.9

23,0002.9

150.18(Note) Revision of the latest released forecast of financial results: None
Net Income per share are modified in consideration of repurchasing of treasury shares that has been implemented until August 2, 2016.

4. Notes(1) Changes in significant consolidated subsidiaries(changes in specified subsidiaries involving changes in scope of consolidation): None(2) Application of special accounting treatment to preparation of quarterly financial statements : None
(3) Changes of accounting policies and accounting estimates, and restatement
1. Changes of accounting policies due to revisions of accounting standards: Yes

2. Changes of accounting policies other than the above: None3. Changes in accounting estimates: None4. Restatements: None(Note) Please refer to "Items concerning Summary Information" on page 4 for details.
(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
as of June 30, 2016

: 155,000,000 shares

as of March 31, 2016

: 156,000,000 shares

2. Number of shares of treasury stock
as of June 30, 2016

: 1,550,648 shares

as of March 31, 2016

: 1,620,587 shares

3. Average number of shares outstanding (cumulative first year)
as of June 30, 2016

: 154,049,621 shares

as of June 30, 2015

: 157,214,729 shares* Presentation regarding implementation status of quarterly review proceduresThis financial release is not subject to quarterly review procedures based on Financial Instruments and Exchange Law in Japan.
Quarterly review 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 forecasts and other special 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.
For supplemental information, please refer to our website.

Table of Contents for Attached Materials
1. Qualitative Information on Quarterly Results(1) Business Performance........................................................................................................ 2.............................................................................................................................. 2(2) Financial Position ..................................................................................................................................... 3(3) Forecast of Consolidated Business Results and Other Forward-looking Information.................................................. 3(4) Basic policy on distribution of earnings .............................................................................................................................. 3
2. Items concerning Summary Information (Notes) ............................................................................................................ 4(1) Changes of Accounting Policies and Accounting Estimates, Restatement ............................................................... 4
3. Consolidated Financial Statements................................................................................................................... 5(1) Consolidated Balance Sheets ...................................................................................................................... 5(2) Consolidated Statements of Income and Statements of Comprehensive Income(3) Consolidated Statements of Cash Flows...................................................... 7........................................................................................................ 9(4) Notes to Consolidated Financial Statements..................................................................................................10(Notes on Assumption of Going Concern).................................................................................................10(Notes on Significant Changes in Shareholders' Equity) ................................................................................10(Segment Information).........................................................................................................................10-1-

1. Qualitative Information on Quarterly Results(1) Business Performance
During the year ended June 30, 2016 (from April 1, 2016 to June 30, 2016), a sense of uncertainty over future
domestic economy has increased due to lower individual consumption, stagnation of demand from inbound,progress of stronger yen and decline in stock price, and the Brexit.
With regard to our group business, the sales of Basic Chemicals in Chemicals Segment increased comparedto the same period the previous year. As for Performance Materials Segment, display materials have continued
to grow. As for Agricultural Chemicals Segment, both pesticides and the active substance of veterinary medical
products had healthy sales. As for Pharmaceutical Segment, the sales of “LIVALO” (anti-cholesterol drug)
exceeded that of the previous year.
As a result, the sales for this term were 45,085 million yen (a decrease of 105 million yen from the same termof the previous year). Operating income was 9,508 million yen (an increase of 81 million yen). Ordinary income
was 9,357 million yen (a decrease of 882 million yen). Profit attributable to owners of parent was 6,826 million
yen (a decrease of 382 million yen).
Explanations by segments are as below.
Chemicals
As for Basic Chemicals, the export sales of melamine (adhesive agent for particle board) and the sales of“AdBlue” (solution of urea in demineralized water) increased. As for Fine Chemicals, the sales of “TEPIC” (epoxy
compound for LED sealants, solder resist, painting) decreased, but the price decline of raw fuel such as naphtha
contributes to the profit rate improvement of Chemical segment.
As a result, the sales of this segment were 8,523 million yen (a decrease of 147 million yen from the same
term of the previous year). Operating income was 1,492 million yen (an increase of 30 million yen).
Performance Materials“SUNEVER” (LCD alignment coating) for smartphone had healthy sales. The sales of bottom anti-reflective
coating for semiconductors (“ARC®”), multi-layer process materials (“OptiStack®”) and inorganic colloid
materials decreased compared to the same period the previous year.
As a result, the sales of this segment were 12,648 million yen (a decrease of 311million yen from the same
term of the previous year). Operating income was 2,981 million yen (a decrease of 388 million yen).
*ARC® and OptiStack® are registered trade mark of Brewer Science, Inc.

Agricultural Chemicals
With regard to domestic sales, the sales volume of “ROUNDUP” (non-selective herbicide) and “ALTAIR”(paddy rice herbicide) increased. Moreover, “TREFANOCIDE” (herbicide for cereal, soybean etc.) launched fromthis year. The sales of Fluralaner (the active substance of veterinary medical product) also fairly increased.
As a result, the sales of this segment were 14,464 million yen (an increase of 864 million yen from the same
term of the previous year). Operating income was 4,488 million yen (an increase of 91 million yen).
Pharmaceuticals“LIVALO” continued to face a tough situation, but the sales volume of this term exceeded that of the previous
year in both domestic and foreign market. On the other hand, the sales of “Custom Chemicals” (custom
manufacturing and process researching services for pharmaceutical companies) decreased because the timingof shipment shifted to next quarter.
As a result, the sales of this segment were 2,217 million yen (an increase of 166 million yen from the same
term of the previous year). Operating income was 647 million yen (an increase of 262 million yen).

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Trading
The sales of this segment were 14,356 million yen (a decrease of 389 million yen from the same term of theprevious year). Operating income was 434 million yen (a decrease of 30 million yen).
Others
The sales of this segment were 3,973 million yen (a decrease of 135 million yen from the same term of theprevious year). Operating loss was 24 million yen (an improvement of 7 million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of June 30, 2016 were 207,197 million yen (a decrease of 20,971 million yen from March 31,2016). It is mainly due to the decrease of cash and deposits.
Also, total liabilities as of June 30, 2016 were 52,598 million yen (a decrease of 18,646 million yen from March
31, 2016). It is mainly due to the decrease of short term loans payable.
Net Assets as of June 30, 2016 were 154,599 million yen (a decrease of 2,325 million yen from March 31,2016). As a result, equity ratio was 73.9% (an increase of 5.8% from March 31, 2016).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation andgain and loss on working capital, net cash provided by operating activities for the three months ended June 30,
2016 were 9,879 million yen (10,553 million yen for the same term of the previous year).
Due to the proceeds from sales of investment securities and the investment on research and development
department, net cash used in investing activities for the three months ended June 30, 2016 were 369 million yen(1,934 million yen for the same term of the previous year).
Due to the decrease in short-term loans payable, payment for dividends, net cash used in financing activities
for the three months ended June 30, 2016 were 21,081 million yen (17,839 million yen for the same term of theprevious year).
As a result, cash and cash equivalents at the end of this term were 23,386 million yen, reflecting negative 353
million yen effect of exchange rate changes and 25 million yen decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation. It decreased by 11,948 million yen from March 31, 2016
(22,243 million yen for the same term of the previous year).

(3) Forecast of Consolidated Business Results and Other Forward-looking Information
There is no change in the forecast of consolidated business results for the fiscal year ending March 31, 2017from the statement announced on May 12, 2016.
(4) Basic policy on distribution of earnings
The Company’s basic policy of profit allocation is returning to shareholders by improving company value
through increasing revenue in the medium and long terms.
We aim to realize dividend payout ratio to be 40% in FY2018 and maintain total payout ratio to be 70% in
medium-term business plan “Vista2021” launched from April 2016.

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2. Items concerning Summary Information (Notes)(1) Changes of Accounting Policies and Accounting Estimates, Restatement(Changes in Accounting Policies)

Effective from the beginning of the first quarter of current consolidated fiscal year, the Company
adopted the “Practical Solution on a change in depreciation method due to Tax Reform 2016” (Practical
Issue Task Force (PITF) No.32, issued on June 17, 2016) in accordance with the revision of the
Corporation Tax Law of Japan. Accordingly, the Company changed the depreciation method for facilities
attached to buildings and structures acquired on and after April 1, 2016 from the declining-balance method
to the straight-line method.
The impact of this change on operating income, ordinary income, and income before income taxes andnon-controlling interests for the first quarter of current consolidated fiscal year was immaterial.

-4-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)
As of
March 31, 2016

As ofJune 30, 2016

AssetsCurrent assets
Cash and deposits

35,33523,386

Notes and accounts receivable - trade57,60654,278Merchandise and finished goods

30,19829,01843419

Raw materials and supplies

8,266

7,802

Other

10,765

8,219

(34)

(31)

142,181

123,094

Buildings and structures, net

22,63522,246

Other, net

24,82625,045

Total Property, plant and equipment

47,46147,292W ork in process

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Goodwill

2

1

Other

901

768

Total Intangible assets

903

770

Investment securities

33,251

31,773

Other

4,539

4,435

Allowance for doubtful accounts

(167)

(167)

Total Investments and other assets

37,62336,041

85,988

84,103

228,169

207,197

Investments and other assets

Total Non-current assets
Total assets-5-

(Millions of Yen)
As of
March 31, 2016

As ofJune 30, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade

15,35013,500

Short-term loans payable

25,99813,890

Income taxes payable

4,576

1,759

Provision for bonuses

1,874

584

Provision for directors' bonuses

21

7

Provision for environmental measures

350

284

Other

9,765

9,730

Total Current liabilities

57,93739,758

7,100

7,100

Provision for business structure improvement

680

678

Provision for loss on business of subsidiaries and associates

309

309

Net defined benefit liability

102

102

Other

5,115

4,649

Total Non-current liabilities

13,307

12,84071,24452,598

Capital stock

18,942

18,942

Capital surplus

13,611

13,611Retained earnings

115,878

115,814

Non-current liabilities
Long-term loans payable

Total liabilities
Net assets
Shareholders' equity

Treasury stocks(4,281)(4,456)

Total Shareholders' equity

144,151

143,911

10,515

9,544

Foreign currency translation adjustment

171

(844)

Remeasurements of defined benefit plans

554

535

11,241

9,236

1,531

1,450

156,924

154,599

228,169

207,197

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total Accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Millions of Yen)
Three Months Ended
June 30, 2015

Three Months Ended
June 30, 2016

Net sales

45,19045,085

Cost of sales

25,643

24,843Gross profit

19,547

20,241

Selling, general and administrative expenses

10,12010,733Operating income

9,426

9,508

Non-operating income
Interest income

2

3

Dividend income

235

277

Foreign exchange gains

203-

Share of profit of entities accounted for using equity method

314

143

Other

225

151

Total non- operating income

981

576

Non-operating expenses
Interest expenses

62

50

Loss on valuation of securities-

172

Foreign exchange losses

-

425

Other

104

77

Total non- operating expenses

167

727

10,240

9,357

-

-

Ordinary income
Extraordinary income
Extraordinary losses--

Income before income taxes and non-controlling interests

10,2409,357

Income taxes - current

2,315

1,711

Income taxes - deferred

666

768

Total income taxes

2,982

2,480

Profit

7,257

6,877

48

50

7,208

6,826

Profit attributable to non-controlling interests
Profit attributable to owners of parent-7-

- Consolidated Statements of Comprehensive Income(Millions of Yen)
Three Months Ended
June 30, 2015

Three Months Ended
June 30, 2016

7,257

6,877

Valuation difference on available-for-sale securities

498

(970)

Foreign currency translation adjustment

347

(998)

Remeasurements of defined benefit plans, net of tax

(20)

(18)

0

(0)

825

(1,987)

8,082

4,889

8,028

4,918

54

(28)

ProfitOther comprehensive income

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-8-(3) Consolidated Statements of Cash Flows(Millions of Yen)
Three Months Ended
June 30, 2015

Three Months Ended
June 30, 2016

Income before income taxes and non-controlling interests

10,2409,357

Depreciation

2,140

1,948

Interest and dividend income

(237)

(281)

Interest expenses

62

50

Loss (gain) on disposal of non-current assets

33

56

Cash flows from operating activities

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other

2,870

2,779

(1,143)

912

(472)

(1,633)420

745

13,913

13,935Interest and dividend income received

298

341

Interest expenses paid

(33)

(27)

Income taxes paid

(3,624)(4,369)Net cash provided by (used in ) operating activities

10,553

9,879

Subtotal

Cash flows from investing activities
Purchase of investment securities

(3)

(2)

Proceeds from sales of investment securities

105

2,638

(1,813)(2,839)

(25)

(54)

Net decrease (increase) in short-term loans receivable

(37)

(63)

Other

(160)

(46)

(1,934)(369)

Net increase (decrease) in short-term loans payable(8,288)(12,009)

Cash dividends paid

(3,469)(4,013)

(70)

(52)

Purchase of treasury shares(4,885)(2,895)

Setting up the trust for purchase of treasury stock(1,115)(2,104)(10)(5)(17,839)(21,081)

Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment

Net cash provided by (used in ) investing activities
Cash flows from financing activities

Dividends paid to non-controlling interests

Other
Net cash provided by (used in ) financing activities
Effect of exchange rate change on cash and cash equivalents

60

(353)

Net increase (decrease) in cash and cash equivalents(9,160)(11,923)

Cash and cash equivalents at the beginning of period

31,34335,335

Increase in cash and cash equivalents from newly consolidated
subsidiary

61-

Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation

-

(25)

22,24323,386

Cash and cash equivalents at the end of period-9-(4) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
The Company canceled 1,000,000 treasury stock on May 10, 2016 based on the resolution of Board of Directors' meeting held on April 25, 2016.
As a result, retained earnings and treasury stock decreased by 2,719 million yen during the first quarter of current consolidated fiscal year.
Also, the Company acquired treasury stock based on the resolution of Board of Directors' meeting held on May 12, 2016.
As a result, treasury stock increased by 2,894 million yen during the first quarter of current consolidated fiscal year.

Segment Information
1. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Three Months Ended June 30, 2015 (From April 1, 2015 to June 30, 2015)(Millions of Yen)

Chemicals

Performance
Materials

Agricultural
Chemicals

Pharmaceuticals

Sales to outside customers

6,336

11,45012,415

2,051

11,156

1,780Intersegment Sales

2,334

1,510

1,183

－

3,588

2,328

Total Sales

8,670

12,96013,5992,051

14,745

Segment income or loss
(Operating Income or Loss)

1,462

3,370

4,396

384

465

Trading

Adjustment(1)

Consolidated
Total

45,190－45,19010,946(10,946)－

4,109

56,137(10,946)

45,190(31)

10,049

(622)

9,426

Others

Total

Sales

Notes: (1) The negative 622 million yen adjustment in segment income includes negative 89 million yen in intersegment eliminations andnegative 533 million yen of corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.
2) For the Three Months Ended June 30, 2016 (From April 1, 2016 to June 30, 2016)(Millions of Yen)

Chemicals

Performance
Materials

Agricultural
Chemicals

Pharmaceuticals

Sales to outside customers

6,261

11,096

12,9752,217

10,9151,617Intersegment Sales

2,262

1,552

1,488

-

3,440

2,356

Total Sales

8,523

12,648

14,4642,217

14,356

Segment income or loss
(Operating Income or Loss)

1,492

2,981

4,488

647

434

Trading

Adjustment(1)

Consolidated
Total

45,085－45,085

11,098(11,098)－

3,973

56,183(11,098)

45,085(24)

10,021

(513)

9,508

Others

Total

Sales

Notes: (1) The negative 513 million yen adjustment in segment income includes 42 million yen in intersegment eliminations andnegative 555 million yen of corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.

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