Consolidated Financial Results for the Year Ended March 31, 2021
(JPGAAP)May 14, 2021

Stock Exchange: Tokyo
Name of listed company: Nissan Chemical Corporation
URL: http://www.nissanchem.co.jp/
Code Number: 4021
Representative: YAGI Shinsuke, President
Inquiry to: DAIMON Hideki, Executive Officer and Director of Finance and Accounting Department Tel. +81 3 4463 8404
Scheduled dividend payment date : June 28, 2021
Scheduled date of annual shareholders' meeting: June 25, 2021
Scheduled date of submitting the Annual Securities Report : June 25, 2021
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, 2021 (From April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year on year)

OperatingincomeNet salesYear ended March 31, 2021
Year ended March 31, 2020
(Note) Comprehensive income:Ordinary
incomeNet income attributable toowners of parent

Million yen%

Million yen%

Million yen%

Million yen%

209,1211.1

42,53010.0

43,8939.7

33,4708.7

206,837

0.9

38,6474.2

40,003

2.3

30,779

4.8

Year ended March 31, 2021

: 38,663 million yen, 44.7%

Year ended March 31, 2020

: 26,726 million yen, 2.0%

Basic earnings
per share
Yen

Year ended March 31, 2021

Ratio ofnet income toshareholders' equity

Diluted net income
per shareYen

231.73

Year ended March 31, 2020

210.09(Reference) Equity in earnings of affiliates: Year ended March 31, 2021

: 1,123 million yen: Year ended March 31, 2020

: 945 million yen

Ratio of ordinary
income tototal assets

Ratio of operating
income tonet sales

%

%

%

17.5

17.0

20.3

16.9

16.1

18.7

(2) Consolidated Financial Position
Total assets

As of March 31, 2021
As of March 31, 2020
(Reference) Shareholders' equity:

Net assets

Net assets
per share

Equity ratio

Million yen

Million yen%

Yen

265,509200,56274.9

1,384.13

249,522

185,52873.7

1,264.23

As of March 31, 2021 : 198,828 million yen
As of March 31, 2020 : 183,917 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at
end of period

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2021

39,939(12,854)(25,629)

32,380Year ended March 31, 2020

35,550(15,624)(25,186)

30,639Total
cash dividends(annual)Dividend
Ratio ofpayoutdividendratio
to net assets(consolidated) (consolidated)

2. Cash Dividends
Cash dividends per shareFirst
quarter

Secondquarter

Yen

Yen

Third
quarterYear-end

Yen

AnnualYen

YenMillion yen%%

Year ended March 31, 2020

42.00

48.00

90.00

13,14442.8

7.2

Year ended March 31, 2021

46.00

58.00

104.0014,97944.9

7.9

Year ending March 31, 2022
(Outlook)

48.00

60.00

108.0045.2

3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)(% indicates the rate of increase/decrease against the same period of the previous year)
OperatingincomeNet sales

Ordinary
incomeNet income attributable toowners of parent

Basic earnings
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

Six months
ending September 30, 2021

76,500(19.0)

17,700(1.6)

18,000(1.0)

14,0000.7

98.03

Year ending March 31, 2022

172,500(17.5)

43,6002.5

44,9002.3

34,1001.9

239.18(Note) The Company determined to apply the "Accounting Standard for Revenue Recognition" (Corporate Accounting Standard No. 29) from FY 2021.
As a result, the above earnings outlook is the amount after applying the relevant accounting standards.For supplemental information, please refer to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: None2. Changes of accounting policies other than the above: None3. Changes in accounting estimates: None4. Restatements: None(3) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of March 31, 2021

: 145,000,000 shares

As of March 31, 2020

: 146,000,000 shares

2. Number of treasury shares
As of March 31, 2021

: 1,351,888 shares

As of March 31, 2020

: 522,578 shares

3. Average number of shares outstanding over the year
As of March 31, 2021

: 144,438,465 shares

As of March 31, 2020

: 146,511,438 shares

The shares held by the Trust are included in the number of treasury shares at the end of the period, and they are includedin 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 165,800 shares.
In addition, the average number of shares held by the Trust during the period was 165,892 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 3 to page 4.
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) 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) Mid-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 / 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(Going Concern Assumption) ............................................................................................................................................15(Segment and Related Information) ...................................................................................................................................15(Per Share Information) .....................................................................................................................................................18(Significant Subsequent Events) ........................................................................................................................................18

1. Analysis of Business Performance and Financial Position(1) Analysis of Business Performance
In the current fiscal year (April 1, 2020 to March 31, 2021), the domestic economy recorded significant negative growth due to the spreadof the COVID-19. Though exports have been partially picked up towards the latter half of the year, the severe situation continued
such as prolonged stagnation of consumer spending. Under these circumstances, sales of Basic Chemicals decreased in theChemicals Segment. In the Performance Materials Segment, Display Materials and Semiconductor Materials performed well. Salesof the Agricultural Chemicals Segment were unchanged from the previous fiscal year. In the Pharmaceuticals Segment, althoughsales of "Custom Chemicals" (custom manufacturing and process researching services for pharmaceutical companies) increased,sales of drug discovery decreased.
As a result, operating and ordinary income achieved record highs for the seventh consecutive year and net income attributable toowners of parent for the eighth consecutive year, exceeding the earnings outlook announced in November.
(Million yen, amounts rounded down to the nearest million yen)
FY2019FY2020Year-on-year

FY2020Change from

(Actual)(Actual)change(Outlook)

OutlookNet sales

206,837

209,121+2,283

209,500(379)

Operating income

38,64742,530+3,88340,300+2,230Ordinary income

40,00343,893+3,88941,100+2,79330,77933,470+2,69031,400+2,070Net income attributableto owners of parent
Explanations by segments are as below.
The Chemicals Segment

In Basic Chemicals, although sales of high purity sulfuric acid (agent used for cleaning semiconductor) increased, sales of melamine(adhesives agent for particle board) declined due to market conditions. In Fine Chemicals, sales of "TEPIC" (powder coating agent for paint,
sealants, etc.) were basically unchanged from the previous fiscal year, while sales for environmental chemicals (sterilizing and disinfecting
agents for pools and septic tanks, etc.) decreased.
As a result, sales of this segment were 31,908 million yen (a decrease of 2,427 million yen) and operating income was 1,482 million yen (anincrease of 186 million yen). Compared to the outlook, net sales were above 0.2 billion yen and operating income was above 0.3 billion yen.
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) for tablets and notebook PCs performed well. In Semiconductor
Materials, sales of anti-reflection coating materials for semiconductors (ARC®*) and multilayer materials (OptiStack®*) increased,reflecting the strong operation of customers. In Inorganic materials, sales of Organo / Monomer sol (various kinds of coating
materials, resin additive) decreased, while sales of "SNOWTEX" for polishes for electronic materials were firm.
As a result, sales of this segment were 71,648 million yen (an increase of 6,187 million yen) and operating income was 22,416 million yen(an increase of 5,429 million yen). Compared to the outlook, net sales were above 1.8 billion yen and operating income was above 1.8
billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.

The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) decreased due to the impact of inventories of customers. In thedomestic agrochemicals segment, sales of "ALTAIR" (paddy rice herbicide)

ungicide) acquired in the third quarterof FY 2020 contributed to sales. On the other hand, sales of "ROUNDUP" (non-selective leaf treatment herbicide) were firm, and shipmentsof "GRACIA" (insecticide) declined due to moderate insect pests outbreaks. In the overseas agrochemicals segment, sales of"GRACIA", "ALTAIR" and "PERMIT" (herbicide) were robust.
As a result, sales of this segment were 63,848 million yen (a decrease of 189 million yen) and operating income was 18,202 million yen (adecrease of 1,050 million yen). Compared to the outlook, net sales were below 0.8 billion yen and operating income was below 0.5 billion yen.
The Pharmaceuticals Segment
Sales of "LIVALO" (anti-cholesterol drug) declined due to increased sales of generic drugs. In "Custom Chemicals", sales of active
pharmaceutical ingredients (generics) increased.
As a result, sales of this segment were 6,652 million yen (a decrease of 310 million yen) and operating income was 357 million yen (adecrease of 575 million yen). Compared to the outlook, net sales were below 0.1 billion yen and operating income was below 0.2 billion yen.
Trading
Sales of this segment were 69,820 million yen (an increase of 1,912 million yen) and operating income was 2,498 million yen (an increaseof 385 million yen). Compared to the outlook, net sales were above 0.7 billion yen and operating income was above 0.4 billion yen.
OthersSales of this segment were 23,763 million yen (an increase of 1,369 million yen) and operating income was 831 million yen (anincrease of 146 million yen).
(Note) From FY2020, we have changed the method of totaling operating income by segments. Year-on-year comparisons arecalculated using figures compiled using the same method. Under the new method, consolidation adjustments (such as unrealized
gains on inventories and non-current assets) previously allocated to individual segments are collectively processed with theadjustments for the entire company. The impact of this change is minor.
(Outlook of business result for the next term)
Outlook of Financial Results(Billion yen, amounts rounded to the nearest billion yen)
FY2020

FY2021

Increase orRate of change

ActualOutlookdecrease

(%)

(A)

(B)

(B-A)

Net sales

209.1

172.5

(36.6)(18)%

Operating income

42.5

43.6

+1.1

+3%

Ordinary income

43.9

44.9

+1.0

+2%

33.5

34.1

+0.6

+2%

231.73 yen

239.18 yen+7.45 yen

+3%

106 yen107 yen--

Net income attributable to owners ofparentBasic earnings per share
Average U.S. dollar exchange rate

Segment Sales and Operating Income(Billion yen, amounts rounded to the nearest billion yen)
Net sales

Operating income

FY2020

FY2021

FY2020

FY2021

ActualOutlook

ActualOutlookChemicals

31.9

34.6

1.5

2.4

Performance Materials

71.6

75.8

22.4

23.8

Agricultural Chemicals

63.8

66.2

18.2

17.6

Pharmaceuticals

6.7

6.1

0.4

0.3

Trading

69.8

70.1

2.5

2.2

Other

23.8

23.4

0.8

0.7

Adjustment(58.5)(103.7)

(3.3)

(3.4)

Total

209.1

172.5

42.5

43.6

As outlook of business result for the next term, we assume net sales will be 172.5 billion yen, operating income will be 43.6 billion
yen, ordinary income will be 44.9 billion yen and net income attributable to owners of parent will be 34.1 billion yen. The above
outlook is calculated on the assumption that the exchange rate will be 107 yen per dollar.
Also, the Company will apply

from FY2021, and the outlook is based on thestandards. The amount of financial impact is as below.
(Outlook of consolidated financial results for six months ending September 30, 2021)(Billion yen, amounts rounded to the nearest billion yen)
Net sales
After application (A)(1)
Before application (B)(2)
Amount of financial impact(A-B)

Operating income

Net income attribute

Ordinary income

to owners of parent

76.5

17.7

18.0

14.0

98.1

18.7

19.0

14.7

(21.6)

(1.0)

(1.0)

(0.7)

(Outlook of consolidated financial results for the fiscal year ending March 31, 2022)(Billion yen, amounts rounded to the nearest billion yen)
Net sales
After application (A)(1)
Before application (B)(2)
Amount of financial impact(A-B)(Notes 1) Outlook after application of

Operating income

Net income attribute

Ordinary income

to owners of parent

172.5

43.6

44.9

34.1

217.1

43.6

44.9

34.1

(44.6)---

(2) Analysis of Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of March 31, 2021 were 265,509 million yen (an increase of 15,987 million yen from the previous year). It is mainly due tothe increase of merchandise and finished goods, intangible assets, and investment securities.
Total liabilities as of March 31, 2021 were 64,947 million yen (an increase of 953 million yen). It is mainly due to the increase of deferred tax
liabilities.
Net assets as of March 31, 2021 were 200,562 million yen (an increase of 15,033 million yen).
As a result of these factors, equity ratio was 74.9% (an increase of 1.2% from March 31, 2020).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain and loss in working
capital, net cash provided by operating activities for the consolidated fiscal year ended March 31, 2021 was 39,939 million yen (35,550
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, 2021 was
12,854 million yen (15,624 million yen for the previous year).
Due to share repurchase, payment for dividends and of long-term loans payable, net cash used in financing activities for the consolidated
fiscal year ended March 31, 2021 was 25,629 million yen (25,186 million yen for the previous year).
As a result of these factors, cash and cash equivalents for the consolidated fiscal year ended March 31, 2021 were 32,380 million yen(30,639 million yen for the previous year), reflecting exchange of 284 million yen. It increased by 1,741 million yen compared to the previous
year.
<Reference> The transit of Cash Flow indices
For the year ended
March 31, 2017

March 31, 2018

March 31, 2019

March 31, 2020

March 31, 2021

69.9

71.0

73.0

73.7

74.9

212.2

268.5

303.4

229.7

299.0

Debt repayment ratio (year)

0.9

0.8

0.8

0.7

0.6

Interest coverage ratio (times)

208.0

299.3

288.1

288.5

573.3

on market value (%)

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.
(Notes 2) Market capitalization is calculated based on the number of shares outstanding, excluding treasury shares.
(Notes 3) Cash flows represents operating cash flow.
(Notes 4) Interest-bearing liabilities refer to all liabilities recorded in the consolidated balance sheets that incur interest.
(3) Basic Policy on Distribution of Earnings and Dividends for current and next term
basic policy of profit allocation is returning to shareholders by improving company value through increasing
revenue in the medium and long terms.
In medium-Stage II launched from April 2019, the company aimed to realize dividend payout ratio

to be 45% and total payout ratio to be 75% in FY2020, and they were 44.9% and 74.6%. In FY2021, the company aims to realize
dividend payout ratio to be 45% and total payout ratio to be 75%.
The year-end dividend is expected to be 58 yen per share. Accordingly, the total annual dividend per share for the current year ended
March 31, 2021 will become 104 yen, which was 90 yen in the previous year.
Total annual dividends per share for the year ending March 31, 2022 is scheduled to be 108 yen (second quarter: 48 yen, year-end: 60
yen).

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

equity an-value added company. We will expand ourbusiness to increase our revenue.
We aim to realize Return on Equity (ROE) to be above 16% inStage II launchedin April 2019. We have achieved it in FY2019 and FY2020.

(3) Mid-and Long-term Management Strategies and Issues to be addressed
In April 2019, we launched "Vista 2021" Stage II (FY2019 to FY2021) later three years of our medium-term business planthat sets out our vision for FY2021. In FY2020, the second year of the plan, we achieved record-high operating income forthe seventh consecutive year, and maintained an upward trend in both sales and profits, even in the COVID-19 crisis.
Looking ahead, we will continue to steadily implement measures based on the basic strategy and take every possible
measure to prepare for all possible risks that could threaten the survival of our business. By responding to rapid changes inthe business environment, we aim to establish a stronger incomes basis and further increase our corporate value.

Regarding to the first strategy set in Vista2021 Stage II of "Increase profitability of products that are source of growth","SUNEVER" continued to achieve higher sales thanks to the contribution of increased demand for monitors in the
Performance Materials Segment. Also, sales of ARC®*, an anti-reflection coating material for semiconductors, grewsignificantly due to favorable market conditions such as stay-at-home demand and 5G developments, as well as anincrease in the number of applicable layers and the achievement of increased market shares. In the Chemicals segment,
we expanded our cyanuric acid production facilities. Accordingly, we will focus on expanding sales of products such as
made from cyanuric acid. In the Agricultural Chemicals segment, we acquired Quinoxifen
fungicide product line in November 2019 and Mancozeb fungicide product line in December 2020 with the purpose of
expanding our portfolio of agrochemicals products. As a medium-term measure, we established Nissan Bharat Rasayan
Private Limited in India as our first overseas agrochemicals manufacturing base to meet the growing demand for our
agrochemicals worldwide. We are planning to produce "LEIMAY" materials, "GRACIA" materials, and other products, andwill further boost our profitability.
* ARC® is registered trademark of Brewer Science, Inc.

Regarding to the second strategy of "Strengthen ability to create new products", we are strengthening our R&D foundation,
including technological development with an eye on new domains. With our joint research with PeptiDream Inc., we havesucceeded in developing innovative peptide production technologies that reduce manufacturing costs and environmental
impact. The technology is highly regarded as an important new technology in chemical industry journals. In thePharmaceuticals segment, we invested in Luxna Biotech Co., Ltd., a partner in joint research, with the aim of nurturingoligonucleotides into future mainstay drug discovery research areas. We also looking for continuously expanding ourdevelopment pipeline and shortening the time to launch. In addition, in order to intensively allocate management resources
to more promising research and strengthen exploratory research in new domains, we are selecting and concentrating
research themes with an eye on the market and reviewing personnel allocation.

With regard to the third strategy of "Improve ability to adapt to social/market changes", we are steadily advancing
initiatives for the 19-element materiality (important issues). For example, under the heading "Provision of new value forhelping to enrich people's lives", we are planning an 18% increase in agrochemicals net sales in FY2021 compared to
FY2018 in order to contribute to food issues. Under the heading "Strengthening of Nissan Group's business base", wepropelled health promotion measures with the purpose of maintaining and improving the health of our employees. As aconsequence, in March 2021 we were selected for the fifth consecutive year as a "Health and Productivity Management
Organization (White 500) ". In the item "Continuous improvement of responsible care activities", we set a long-term targetof reducing greenhouse gas emissions by 30% from FY2018 level by 2030. In order to respond to rapid changes in thebusiness environment, in July 2020 we established the Digital Technology Promotion Office to accelerate digitaltransformation, improve profitability in established businesses, and provide an environment in which employees canmaximize their strengths through telework and other means.

To strengthen corporate governance, we will increase the number of outside directors by 1 to 4 by the resolution of theOrdinary General Shareholders Meeting in June of this year. In this way, we will further enhance the effectiveness of
independent and objective management oversight by the Board of Directors in order to increase corporate value over the
medium to long term.

As described above, various measures under the Medium-Term Management Plan Vista2021 are progressing steadily.
In FY2021, the final year of the plan, we will strive to achieve our goals. Over the next year, we will work to formulate thenext medium-term management plan and a new long-term management plan that will raise our perspective by 2050. We
will aim to establish a more robust business portfolio by drawing up a growth strategy that looks ahead to the future oftransformation, including global-scale fluctuations such as measures to combat global warming and population issues, thearrival of digital society, and the values of people who are becoming increasingly diverse. In addition, we will establish apath for the future for our group by aggressively promoting corporate social responsibility (CSR) management andthoroughly pursuing measures to increase corporate value.
Based on our corporate philosophy of "We contribute to society in harmony with the environment, based on our excellent
technologies, products and services", we will more vigorously promote sound and transparent management, thoroughcompliance, further consideration for the environment, and social contribution activities. We will continue to make aconcerted effort to become a corporate group that is trusted by all stakeholders.

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.

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

AssetsCurrent assets
Cash and deposits

30,63932,380Notes and accounts receivable - trade72,50973,937

Merchandise and finished goods

33,131

33,774153

23

10,59012,853

Accounts receivable - other

2,765

2,534

Short-term loans receivable

2,045

1,223

Other

2,387

2,892

(26)

(31)

154,196

159,588

Work in process
Raw materials and supplies

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

67,11068,438

Accumulated depreciation and impairment loss

(42,260)(43,601)

Buildings and structures, net

24,85024,837

Machinery, equipment and vehicles

135,476

140,790(123,035)(128,053)

12,44012,736

39,62539,775(35,829)(36,742)

Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss

3,796

3,033

Land

Tools, furniture and fixtures, net

8,995

8,996

Construction in progress

1,499

2,233

Total property, plant and equipment

51,581

51,837

566

548

Other

6,812

11,581

Total intangible assets

7,379

12,12930,87335,894

Intangible assets
SoftwareInvestments and other assets
Investment securities
Deferred tax assets

721

205

Net defined benefit asset

1,609

2,478

Other

3,244

3,485

(84)

(110)

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

36,364

41,953

95,325

105,921249,522265,509(Million yen)
As ofMarch 31, 2020

As ofMarch 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade16,876

16,298

Short-term loans payable

22,89820,937640

552

Income taxes payable

6,167

7,113

Provision for bonuses

2,151

2,250

Current portion of long-term loans payable

Provision for directors' bonuses

26

7

Other

11,254

12,585

Total current liabilities

60,01559,744

1,076

1,184

Deferred tax liabilities

76

1,310

Provision for business structure improvement

284

171

Provision for loss on business of subsidiaries and affiliates
Provision for share-based remuneration for directors(and other officers)
Net defined benefit liability

309

-

46

91

Non-current liabilities
Long-term loans payable

208

249

Other

1,976

2,196

Total non-current liabilities

3,978

5,202

63,99364,947

18,942

18,942

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

13,613

13,613Retained earnings

146,997

161,708

Treasury shares(2,470)(7,340)Total shareholders' equity

177,082

186,923

Valuation difference on available-for-sale securities

7,782

11,359Foreign currency translation adjustment

(896)

81

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

(51)

463

6,834

11,904

1,610

1,733

185,528

200,562249,522265,509(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Million yen)
Year Ended
March 31, 2020

Year Ended
March 31, 2021

Net sales

206,837

209,121

Cost of sales

122,379

121,376

Gross profit

84,45887,745

Selling, general and administrative expenses

45,81045,214

Operating income

38,64742,530Non-operating income
Interest income

26

16

Dividend income

785

981

Equity in earnings of affiliates

945

1,123

Other
Total non-operating income

852

668

2,609

2,790

123

69

Non-operating expenses
Interest expenses
Loss on disposal of non-current assets

443

696

Plant stop losses

298

177

Foreign exchange losses

235

52

Other
Total non- operating expenses
Ordinary income

151

431

1,252

1,427

40,00343,893Extraordinary income
Gain on sales of investment securities

1,834

1,588

Total extraordinary income

1,834

1,588

834

-

Extraordinary losses
Licensing arrangement fee

834-

Income before income taxes and non-controlling interests

Total extraordinary losses

41,00345,481

Income taxes - current

10,102

12,037

Income taxes - deferred

36

(50)

Total income taxes

10,138

11,986

Net income

30,86433,49584

25

30,77933,470Net income attributable to non-controlling interests
Net income attributable to owners of parent

- Consolidated Statements of Comprehensive Income(Million yen)
Year Ended
March 31, 2020
Net income

Year Ended
March 31, 2021

30,86433,495

Other comprehensive income
Valuation difference on available-for-sale securities(2,851)

3,575

Foreign currency translation adjustment

(976)

1,075

Remeasurements of defined benefit plans, net of tax

(309)

514

(0)

1

(4,137)

5,167

26,726

38,663

26,73338,540(6)

122

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

(3) Consolidated Statements of Changes in Net Assets
For the Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Million yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCapital surplus

18,942

13,613Retainedearnings

Treasury shares

143,200(6,291)

Total
shareholders'equity169,464

Changes of items during period
Dividends of surplus(12,360)(12,360)

Net income attributable to ownersof parent

30,77930,779

Share repurchase
Disposal of treasury shares
Cancellation of treasury shares(10,801)(10,801)

(0)

0

0

(14,622)

14,622-

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

-

-

3,797

3,821

7,618

18,942

13,613

146,997(2,470)177,082

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements
accumulateddifference ontranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at beginning of current
period10,634(11)

258

10,880Non-controllinginterests

1,728

Total
net assets

182,074

Changes of items during period
Dividends of surplus(12,360)

Net income attributable to ownersof parent

30,779

Share repurchase(10,801)

Disposal of treasury shares

0Cancellation of treasury shares-

Net changes of items other thanshareholders' equity(2,851)

(884)

(309)

(4,046)(117)(4,164)

Total changes of items during period(2,851)

(884)

(309)

(4,046)

(117)

3,454

Balance at end of current period

7,782

(896)

(51)

6,834

1,610

185,528

For the Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(Million yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCapital surplus

18,942

13,613Retainedearnings

Treasury shares

146,997(2,470)Total
shareholders'equity177,082

Changes of items during period
Dividends of surplus(13,629)(13,629)

Net income attributable to ownersof parent

33,47033,470Share repurchase(10,002)(10,002)1

1(5,130)5,130-

Disposal of treasury shares
Cancellation of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period--

14,710(4,870)9,840

18,942

13,613

161,708(7,340)186,923

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements
accumulateddifference ontranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at beginning of current
period

7,782

(896)

(51)

6,834

Non-controllinginterests

1,610

Total
net assets

185,528

Changes of items during period
Dividends of surplus(13,629)

Net income attributable to ownersof parent

33,470Share repurchase(10,002)

Disposal of treasury shares

1

Cancellation of treasury shares-

Net changes of items other thanshareholders' equity

3,577

978

514

5,070

123

5,193

Total changes of items during period

3,577

978

514

5,070

123

15,033

Balance at end of current period

11,35981463

11,904

1,733

200,562(4) Consolidated Statements of Cash Flows(Million yen)
Year Ended
March 31, 2020

Year Ended
March 31, 2021

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

41,00345,481

Depreciation and amortization

10,516

10,346

28

78

(811)

(997)

(1,834)(1,588)

Amortization of goodwill
Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses

123

69

Loss (gain) on disposal of non-current assets

443

696

Decrease (increase) in notes and accounts receivable - trade(3,656)(1,016)

Decrease (increase) in inventories(2,352)(2,398)

Increase (decrease) in notes and accounts payable - trade

(715)

(842)

Other

(263)

(671)

Subtotal

42,481

49,159Interest and dividend income received

1,565

1,925

Interest expenses paid

(123)

(69)

Income taxes paid

(8,373)(11,076)

Net cash provided by (used in) operating activities

35,55039,939Purchase of investment securities

(657)

(159)

Proceeds from sales of investment securities

3,206

3,063

Cash flows from investing activities

Purchase of shares of subsidiaries(330)(1,209)(8,904)(8,254)

Payments for retirement of property, plant and equipment

(391)

(598)

Purchase of intangible assets

(285)

(688)

Payments for transfer of business(6,335)(5,384)

Net decrease (increase) in short-term loans receivable(1,538)

522

(645)

(222)

Purchase of property, plant and equipment

Purchase of long-term prepaid expenses
Other
Net cash provided by (used in) investing activities

256

77

(15,624)(12,854)(653)(2,017)

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

600

660

Repayments of long-term loans payable(1,860)(640)

Cash dividends paid

(12,360)(13,629)

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

(111)

-

(10,801)(10,002)0-(25,186)(25,629)

(283)

284

Net increase (decrease) in cash and cash equivalents(5,544)

1,741

Cash and cash equivalents at beginning of period

36,18330,639Cash and cash equivalents at end of period

30,63932,380(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
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 theirproducts 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 retardants, chlorinated cyanuric 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.)
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 process researching services for pharmaceutical companies)

Trading

Trading, etc.

OthersFertilizer, landscaping, transportation, engineering, 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 preparationof its consolidated financial statements. Intersegment sales and income (loss) are recognized based on current market prices.

3. Information Regarding Sales, Income (Loss), and Segment Assets of Reportable Segments
1) For the Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Performance Agricultural
Chemicals
Materials
Chemicals(Million yen)Pharmaceuticals

Trading

Others

Total

Adjustment(1)

Consolidated
Total
206,837

Sales
Customers

24,893

57,831

58,693

6,905

48,235

10,265

206,824

13

Intersegment

9,443

7,629

5,345

56

19,672

12,12854,276(54,276)

Total sales

34,336

65,46064,038

6,962

67,90722,394

261,100(54,262)

Operating income (loss)

1,296

16,987

19,253

932

2,113

685

41,269(2,621)38,647

Segment assets

27,71150,17273,90910,55525,243

11,976

199,569

49,952249,522

1,940

5,202

2,296

598

85

187

10,311

204

10,516

206,837

Other items
Depreciation andamortization

Amortization of goodwill
1
Increase of property,
3,134
plant and equipment
and intangible assets(Notes 1) The adjustments are as follows:

27
3,276

28

7,902

597

104

366

28

15,381327

15,709(1) The (2,621) million yen adjustment in segment income includes 275 million yen in intersegment eliminations, 13 million yen sales
not attributable to any reporting segment, and (2,909) 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 49,952 million yen adjustment in segment assets includes (11,924) million yen in intersegment eliminations and 61,877
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 204 million yen adjustment in depreciation and amortization is corporation expenses.
(4) The 327 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, 2021 (From April 1, 2020 to March 31, 2021)
Performance Agricultural
Chemicals
Materials
Chemicals(Million yen)Pharmaceuticals

Trading

Others

Total

Adjustment(1)

Consolidated
Total
209,121

Sales
Customers

21,86762,60057,541

6,609

50,833

9,657

209,109

12

Intersegment

10,041

9,047

6,306

43

18,987

14,10658,533(58,533)

Total sales

31,90871,64863,848

6,652

69,82023,763

267,642(58,521)

Operating income (loss)

1,482

22,41618,202

357

2,498

831

45,790(3,260)42,530

Segment assets

30,76351,014

82,822

9,646

26,205

12,789213,241

52,268265,509

2,241

4,477

2,527

517

80

311

10,155

191

10,346

209,121

Other items
Depreciation andamortization

Amortization of goodwill
1
Increase of property,
4,903
plant and equipment
and intangible assets(Notes 1) The adjustments are as follows:

77
3,174

6,426

78
475

137

388

15,50478
296

15,800(1) The (3,260) million yen adjustment in segment income includes 33 million yen in intersegment eliminations, 12 million yen sales
not attributable to any reporting segment, and (3,305) 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 52,268 million yen adjustment in segment assets includes (12,958) million yen in intersegment eliminations and 65,226
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 191 million yen adjustment in depreciation and amortization is corporation expenses.
(4) The 296 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.

4. Matters related to changes in reportable segment, etc.
(Change of calculation method for profit (loss) and depreciation and amortization by reportable segment)
In order to evaluate and manage the performance of each reportable segment more appropriately, the Company reviewed the method of adjusting
intersegment transactions and has changed the method of calculation for profit or loss and depreciation and amortization of each reportable segment.
Segment information for the previous consolidated fiscal year is based on the revised method.

Related Information
For the Year Ended March 31, 2020(From April 1, 2019 to March 31, 2020)
Sales by region

Japan

China

109,217

22,840Korea

19,829Other Asia

24,395(Million yen)
Europe andConsolidated
the United
Total
States30,554

206,837

Note: Sales are classified to either countries or regions based on customers are located.
For the Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Sales by region

Japan

China

108,443

26,476

Korea

21,481Other Asia

25,175(Million yen)
Europe andConsolidated
the United
Total
States27,554

209,121

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, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable.
For the Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Performance
Materials

Chemicals

Agricultural
Chemicals

Pharmaceuticals

Trading

OthersImpairment loss

(Million yen)
Consolidated
Adjustment
Total

Total

11

11

11

Information regarding amortization and unamortized balance on goodwill by reportable segments
For the Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Performance
Materials

Chemicals

Balance as ofMarch 31, 2020

3

Agricultural
Chemicals

Pharmaceuticals

Trading

Others

Total

298

Adjustment

301(Million yen)
Consolidated
Total

301

For the Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Performance
Materials

Chemicals

Balance as ofMarch 31, 2021

1

Agricultural
Chemicals

404

Pharmaceuticals

Trading

Others

Total

Adjustment

406(Million yen)
Consolidated
Total

406

(Per Share Information)
Year Ended March 31, 2020

(Yen)
Year Ended March 31, 2021

Net assets per share

1,264.23

1,384.13

Net income per share

210.09231.73

Notes:
1. Since residual securities do not exist, diluted net income per share is not presented.
and has recorded the shares 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 the number 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 priod was 165,800 shares,
and the average number of shares held by the Trust during the period was 165,892 shares.
3. Net income per share is calculated on the following basis.
Year Ended March 31, 2020

Year Ended March 31, 2021

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

30,77933,470

Amounts not allocated to ordinary shares (Million yen)
Net income allocated to ordinary shares (Million yen)
Average number of ordinary shares
outstanding during each year (shares)

30,77933,470146,511,438

144,438,465

4. Net assets per share is calculated on the following basis.
Year Ended March 31, 2020
Net asset (Million yen)

Year Ended March 31, 2021

185,528

200,562

Amount deducted from net asset (Million yen)

1,610

1,733

(Non-controlling interest) (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(1,610)(1,733)

183,917

198,828

145,477,422

143,648,112(Significant Subsequent Events)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 (0.69% of issued shares prior to cancellation)(3) Scheduled date of cancellation :May 10, 2021

Reference
Number of issued shares subsequent to cancellation (including treasury shares) : 144,000,000 shares

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 repurchase
Class of shares:
Total number of shares:

Common shares of the company
Up to 1,800,000 shares (Rate of the maximum shares to be acquired
to the total outstanding shares: 1.25%)(3)Total amount(4)Period of repurchase

Up to 7,000,000,000 yen
From May 17, 2021 to August 31, 2021

Reference
Number of treasury shares as of May 10, 2021
Total number of shares issued (excluding treasury shares): 143,813,788 shares
Number of treasury shares:
186,212 shares* Not including 164,800 shares of treasury shares which the Board Benefit Trust (BBT) has hold.