Nissan Chemical Corporation
1Q FY2022 Financial Results Briefing
Presenter:
DAIMON Hideki Director, Managing Executive Officer & CFO
August 8, 2022

Daimon: I am Daimon of Nissan Chemical Corporation. Thank you all for taking time out of your busy schedules
to join us. From this time on, I will be in charge of explaining the financial results. Thank you for yourcooperation.
I will now begin with page four of the presentation materials, 1Q FY2022 financial summary.
As stated here, compared to the same period last year, sales increased by JPY11.8 billion and operating profit
increased by JPY5.4 billion, which translates to an increase of 45%, and net income increased by JPY5.1 billion,
or 57%.
Operating profit, ordinary income, and net income reached record highs for the second consecutive year.
Compared to earnings outlook, sales were JPY5.9 billion higher and operating profit was JPY2.7 billion higher,or about 18%. Net income was also JPY2.7 billion higher, or 24%.
As for shareholder returns, as already announced in our press release, we have completed the acquisition of
JPY5 billion of treasury stock from May to June.
Furthermore, we have revised our earnings outlooks, and today we are announcing upward revisions to thefigures announced in May, for 1H and full year, which will be explained later.

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Next, please see page five. This is the overall figure.
In the middle, you will find 1Q FY2022. Sales were JPY58.3 billion, operating profit was JPY17.3 billion, nonoperating income was JPY2.2 billion, which I will explain later, ordinary income was JPY19.5 billion, and there
were no extraordinary items. As a result, net income was JPY13.9 billion.
The exchange rate was JPY130 for 1Q FY2022. The JCC's figure for crude oil for the April to June period was
USD111.

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Next, please see page six. This is a comparison with the earnings outlook announced in May.
The figures are the same as before, but if you look at the elements below, the exchange rate forecast was
JPY115 as of May. Meanwhile, the actual rate was JPY130. As for JCC crude oil price, we had forecasted it at
USD88 at the beginning of the period.

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Next, please see page seven. This is an analysis of changes in operating profit by segment.
First, for Chemicals, as you can see in the comments, sales of melamine and TEPIC increased and exceeded
the outlook due to higher sales prices, resulting in an increase of JPY0.4 billion over the same period last year,
which was JPY0.1 billion higher than the outlook.
For Performance Materials, operating profit increased JPY1.0 billion from the same period of the previous
year as a result of a large increase in Semis sales, while Display profit remained unchanged. The profit wasalso higher than the outlook by JPY0.8 billion, due in part to the favorable performance of Semis and fixed
costs being lower than the expectations by about JPY0.3 billion.
In the Agrochemicals business, we saw a large increase in profit of JPY2.8 billion due to factors including theincrease in sales of Fluralaner, ROUNDUP, TARGA, and GRACIA.
In addition to the higher sales of TARGA, ROUNDUP, and DITHANE, fixed costs were lower, which was apositive factor in the profit increase of about JPY0.4 billion, resulting in the profit exceeding the outlook by
JPY1.1 billion.
Lastly, for Healthcare, there was an increase of JPY0.5 billion in sales compared to the same period last year,
on the back of sales increase in LIVALO and Custom Chemicals, while the sales of Custom Chemicals wereslightly skewed to 1Q. The profit for Healthcare was JPY0.2 billion higher than the outlook.
Therefore, the profits in all segments were higher than those for the same period last year and exceeded theoutlook.

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Next, please see page eight. This is the breakdown of non-operating income/expenses andextraordinary income/loss.
As I mentioned earlier, the actual result for 1Q FY2022, in terms of non-operating income/loss, was JPY2.23
billion as shown in the line near the bottom, and if you look at the YoY comparison, the figure next to it shows
an increase of about JPY1.8 billion.
The third line from the top shows the foreign exchange gains, which amounted to about JPY1.7 billion, which
was zero in the previous year. A large figure was recorded for 1Q FY2022.
The outlook figures for 1Q announced in May are shown in the rightmost column for your reference.
As for extraordinary gains and losses, we initially expected JPY0.25 billion in gains on sales of investment
securities in 1Q, but since there were no actual sales in 1Q, the amount is zero.

5Please continue to cash flow, on page nine.
In the middle column, you will see the FY2022 actual numbers for this 1Q. Next to it is the YoY comparison.
First, as for cash flow from operating activities, income before income taxes increased significantly, resulting
in a net cash increase of JPY7.2 billion. On the other hand, the increase in working capital has had a negative
impact. As a result, net cash from operating activities increased JPY1.3 billion compared to the same period
last year.
As for cash flow from investing activities, cash decreased by about JPY1.0 billion, as purchase of PPE increasedslightly.
As a result, free cash flow for this 1Q was JPY8.8 billion, a YoY increase of JPY0.3 billion.
The cash flow from financing activities shows a JPY18.0 billion cash outflow in 1Q.
First, regarding dividends, the year-end dividend paid in June was JPY10.2 billion, an increase of JPY1.9 billion
over the same period last year, due to an increase in the dividend compared to the previous period.
As I mentioned earlier, the JPY5.0 billion in share repurchases completed in June was recorded as cash outflow,
while the previous year, FY2021, the Company made a purchase of JPY7 billion for 1H of the year.
However, as of the end of June 2021, the cash outflow for the share buyback was JPY4.8 billion, and the
portion not yet completed is shown in the "others" section below, resulting in this discrepancy.

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Regarding changes in borrowings, cash outflows amounted to JPY2.7 billion. There was a large repayment, in
July 2022, not in June.
As a result, the balance of cash and cash equivalents was JPY29.4 billion, as shown in the last line at the bottom.
One line above, there is an increase of JPY3.1 billion in cash and cash equivalents resulting from change
in scope of consolidation, which is due to the consolidation of NBR, a joint venture in India, from this fiscal
year.

Please continue on to page 10, the balance sheet.
The upper left table shows the asset side. The total assets decreased by JPY2.5 billion compared to the end of
the previous quarter, which is the end of March.
Cash decreased JPY5.3 billion from the end of March, but there was a slight increase in inventories.
On the right side, liabilities decreased JPY4.2 billion, while net assets increased JPY1.7 billion. There were no
major changes, while there were slight movements.
As a result, as shown on the lower right, the equity ratio was 74.5% at the end of June.
Please see the breakdown of investment securities in the lower left-hand corner. The total column shows adecrease of JPY0.4 billion compared to the end of the previous quarter. The number of listed stocks held on a
non-consolidated basis has not changed since the end of March, but the increase in market value has resulted
in an increase of JPY0.4 billion.

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The bottom line shows the percentage of strategic shareholdings in consolidated net assets on a nonconsolidated basis. One year ago, at the end of June 2021, the figure was over 10%, at 12.2%, but now thefigure is slightly below 10%.

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Let me skip a little bit to the segment overview and start with the Chemicals segment on page 15. This shows
the sales growth rate of our main products.
As for Fine Chemicals, sales increased 30% YoY in 1Q FY2022 and were higher compared to the earnings
outlook.
As for Basic Chemicals, sales increased 11% YoY in 1Q FY2022, but were short of the outlook.
This is the explained in two of the footnotes. The second line from the bottom explains that from April to June
2022, there was a temporary shutdown of a nitric acid plant due to mechanical troubles. As you can see here,
the estimated loss for 1Q FY2022 was approximately JPY0.67 billion, and the estimated loss for 2Q is JPY0.32
billion, for a total loss of JPY0.99 billion for 1H of the year.
In relation to this, the third line of the table from the bottom shows that sales of nitric acid products decreased
by 33% compared to the same period of the previous year, and also fell short of the outlook.

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Next, please see page 16. This is a YoY comparison for the Chemicals segment.
As shown in the table, sales increased by JPY1.6 billion YoY, of which Fine Chemicals sales increased by JPY1
billion and Basic Chemicals sales increased by JPY0.6 billion.
Operating profit increased JPY0.4 billion YoY.
As you can see in the comments below, both sales and profit increased for Fine Chemicals. The sales of TEPIC
for general applications increased greatly due to an increase in sales prices.
On the other hand, sales of TEPIC for electronic materials decreased. This was due to the shortage ofsemiconductors, which affected those for automotive applications. There were also some impacts from thelockdown in Shanghai.
As for environmental related products, sales also increased due to higher sales prices. As for FINEOXOCOL,
sales of cosmetics use recovered, resulting in a relatively large increase in sales here as well.
In addition, the high cost of raw materials and fuel, as well as the soaring shipping cost, were factors in thedecrease in profit for this fiscal year, as shown here. The final result for Fine Chemicals; however, was anincrease in profit even with these factors compensated for.
The right-hand side shows Basic Chemicals, which showed a YoY increase in both sales and profit in 1Q FY2022.
Sales of melamine increased due to higher prices. The same was true for Urea/AdBlue. Sales of high purity
sulfuric acid also increased, albeit by 2%. On the other hand, nitric acid products are as I mentioned earlier.

10Meanwhile, raw material and fuel costs and shipping costs decreased, so there is a slight mix of factors
contributing to decrease and increase in profits, but in total they ended up being factors for lower profits.
In addition, the increase in fixed costs, as I mentioned earlier, was due to an increase of over JPY0.2 billion inrepair costs resulting from trouble with nitric acid facilities, and this was a factor for the decrease in profit.
However, this was offset in the short term by the impact of inventory adjustment, which was almost the sameamount of JPY0.3 billion, as shown here.

Page 17 shows the comparison to earnings outlook for the Chemicals segment.
Net sales were JPY0.2 billion higher and operating profit was JPY0.1 billion higher, which means that despite
the nitric acid plant trouble I mentioned earlier, profits exceeded the earnings outlook.
Although I will not explain all the comments, in 1Q FY2022, as for Fine Chemicals, both sales and operating
profits were higher.
On the other hand, for Basic Chemicals, as I mentioned earlier, sales and operating profits were both lower
due to the nitric acid plant trouble.
In the lower right-hand corner, the JPY0.3 billion portion of the fixed costs above the expectations was due toan increase in nitric acid facility repair expenses, as mentioned earlier.

11Page 18 shows the manufacturing flow of main products.
Compared to the previous flowchart, we have provided a little more detail, and there is a horizontal arrowfrom the middle, middle row, from the nitric acid. The nitric acid problem affected not only some Basic
Chemicals, but also some Fine Chemicals, such as isocyanuric acid and TEPIC.

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Continuing on page 19, this is the page on restructuring due to the shutdown of melamine production, which
was announced last August.
As planned, the production of melamine terminated in June 2022.
These have been for Chemicals, and now let us move on to the Performance Materials segment.

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Please skip to page 21. Here is an image of sales for each of the sub-segments of the Performance Materials
segment: Display Materials, Semis Materials, and Inorganic Materials.

Continuing on page 22, this is the sales growth rates for the major products in 1Q FY2022.
As mentioned in the opening comments, sales of Display Materials decreased 2% in 1Q FY2022 and wereslightly below the outlook.
Meanwhile, Semis Materials showed a large increase by 25% in sales in 1Q FY2022, which exceeded theearnings outlook.
Inorganic Materials sales increased by 2% in 1Q FY2022, which is also an increase compared to the earnings
forecast.
Details for each product are as shown below, and as for SUNEVER, as I mentioned, sales declined by 2% YoY
and were slightly lower than the outlook.
On the other hand, sales in Semis Materials and ARC increased 25% YoY, and other Semis Materials also
showed a similarly large 26% YoY increase in sales.

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Continuing on page 23, this shows sales distribution of SUNEVER by mode in the Display Materials business.
If you look at the table here below, you will see that in 1Q FY2022, sales for VA increased compared to thesame period of the previous year but fell short of the outlook.
IPS, which includes both photo IPS and rubbing IPS, showed a YoY decrease in sales which was also lower thanthe outlook.
As mentioned at the top, sales of photo IPS increased compared to the same period of the previous year andalso exceeded the outlook.

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Continuing on page 24, this is the YoY comparison for the Performance Materials segment.
Sales increased JPY1.8 billion and operating profit increased JPY1.0 billion.
First of all, as you can see on the lower left, sales of Display Materials decreased in 1Q FY2022, while profits
remained flat. In particular, sales of Photo IPS increased due to the continued strong performance of the nonsmartphone portion.
On the other hand, sales decreased for rubbing IPS and increased for VA.
As for Semis Materials, sales and profits increased in 1Q FY2022. As I indicated earlier, sales of ARC and otherSemis Materials increased significantly, and the market in general was favorable, but fixed costs increased by
JPY0.1 billion.
Sales and profits of Inorganic Materials also increased, as did those of SNOWTEX, Organo/Monomer Sol, andOilfield Materials.
The decrease in fixed costs also came out on the profit side, which is also recorded a positive JPY0.1 billion.

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Continuing on page 25, this is a comparison with the earnings outlook.
As mentioned at the top, sales were JPY0.6 billion higher, and operating profit was JPY0.8 billion higher.
In addition, the fixed costs being JPY0.3 billion lower in total was a factor for the increase in the profits. As a
breakdown of the lower fixed cost, JPY0.1 billion was in Display Materials and approximately JPY0.2 billion
was in Semis Materials.
As a brief comment on each of the sub-segments, as shown on the lower left, for Display Materials, sales werelower and operating profit was higher.
Sales of Photo IPS were higher, while those of rubbing IPS and VA were lower compared to the outlook, as I
mentioned earlier.
On the other hand, for the Semis Materials, both sales and operating profit were higher. For Inorganic
Materials, both sales and operating profits were higher as well.

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This is followed by Agrochemicals. Please skip to page 27. This shows the sales growth rate of our main
products.
As noted here, sales increased 47% in 1Q FY2022 and exceeded the forecast.
First, as for ROUNDUP, sales increased 22% from the same period last year and were higher than the outlook.
For the animal health product Fluralaner, sales also increased 55%. The sales also exceeded the outlook.
Almost all of the following products, including ALTAIR, TARGA, DITHANE, PERMIT, and others reported sales
being higher YoY and above the outlook, but only QUINTEC reported sales being lower YoY and below theoutlook, due to the shipment shifted from 1Q to 2Q.
This is an image of GRACIA sales. It is shown as bar charts at lower left. For this 1Q, the YoY growth wassubstantial. The sales were also higher than the May outlook.

Continuing on page 28, here is the YoY comparison for 1Q FY2022.
Sales were JPY6.3 billion higher and operating profit was JPY2.8 higher.
In addition, an increase in fixed costs was a factor in the decrease in profit of JPY0.3 billion, while the impact
of inventory adjustment was a factor in the increase in income of JPY0.7 billion.
Details for the main products are as written in the lower left. As for ROUNDUP, we raised the prices of both
ML and AL last year, but sales volume also increased, resulting in an increase in sales.

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As for the animal health product Fluralaner, as described here, there was the growth of the APIs due to someeffects of the postponement of some API shipments from FY2021 to this 1Q, as well as the end of inventory
adjustment at the customer Merck. Royalties revenue was also firm.
TARGA sales increased significantly, partly due to accelerated shipments from 2Q, but also supported byincreased demand. As for LEIMAY, exports increased due to sales for mixture product applications in Europe,
which also led to an increase in sales.
As for GRACIA, domestic sales increased due to the almost complete elimination of channel inventory. Export
sales also increased due to sales expansion in India and Indonesia, where shipments began in 2H of theprevious fiscal year, and sales recovery in South Korea.
QUINTEC, as I mentioned earlier, experienced a decline in sales due to the postponement of shipments to 2Q.

Please see page 29.
As stated, compared to the outlook, sales were higher by JPY2.5 billion operating profit was JPY1.1 billion
higher.
In addition, fixed costs were JPY0.4 billion lower. The impact of the inventory adjustment was also JPY0.2
billion, both of which are factors contributing to the increase in profit.
Each of the major products is listed there.

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Next, please skip to page 34, where you will see a slight change from the explanation given in May regarding
the joint venture company in India.
As you can see in the comment on the third line from the top, our original plan was to start operation of theplant in 2Q of FY2022, but due to delays in the delivery of some equipment, we have decided to push backthe start of the plant to 4Q FY2022.
The forecast for the contribution to our consolidated operating profit is as shown in the lower right-handcorner of the table, and remains almost unchanged, but has been revised up slightly for the current fiscal year.

22Finally, the Healthcare segment. See page 35.
Here, the broken line on the bar chart below shows the operating margin, which jumped considerably in
FY2021.
This is an area that requires some explanation, and I will explain the specific figures later, but as you can see,the Healthcare segment is undergoing organizational change starting in April 2022. In accordance with theaccounting standard for the disclosure of segment information, the segment information for FY2021, the year
prior to the organizational change, has been revised to the current year's classification method and isdisclosed here.

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On page 36, this is the YoY comparison for 1Q FY2022.
As shown in the figures here, sales increased approximately JPY0.6 billion and operating profit increasedslightly less than JPY0.5 billion, representing increases in both sales and profit.
As you can see in the comments below, LIVALO's sales increased in 1Q FY2022 both in Japan and exports,
while sales for Custom Chemicals were slightly skewed toward 1Q of this fiscal year.

24Page 37 shows the comparison to the outlook for the Healthcare segment.
The figures were as explained earlier, with both sales and operating profit being slightly above the outlook.

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Next, please see page 39. As I mentioned earlier, we have shown the impact of the organizational change
from April 2022 on operating profit by segment for the previous fiscal year, FY2021.
The leftmost box shows the figures before the organizational change, which were previously presented as
FY2021 results, and the middle box shows the revised figures after the organizational change.
As you can see on the right-hand side, the difference between before and after the change in the Healthcare
segment was about as an increase of about JPY1.9 billion for the full year in terms of operating profit.
The majority of this amount has been transferred to the adjustment segment, which is detailed in note threeof the footnotes below, and the amount transferred to the planning & development division is JPY1.6 billion.
In the other segments, specifically Performance Materials and Agrochemicals, the figures are shown as factors
for a decrease in profit of JPY0.1 billion or JPY0.2 billion due to changes in the allocation of overheads andother factors, but these are the figures for the previous years.

Continued on page 42, this is a summary of the full-year outlook for the current fiscal year.
Originally, we do not review company-wide budgets at the time when 1Q results are available. However, thelarge 1Q upswing has led us to revise our 1H and full-year results upward.
The idea is as shown here in blue. This outlook is calculated by adding up the results for 1Q and the outlookfor 2Q to 4Q announced in May 2022.
Therefore, we have not changed the assumed level of exchange rates, crude oil and other parameters for 2Q
and beyond.

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However, for Display Materials in 2Q, we have made downward revisions of JPY1.6 billion in sales and JPY1.1
billion in operating profit, in light of the current market and customer trends.
In addition, the extraordinary income, gain on sales of investment securities, originally planned for 1Q was
JPY0.3 billion (JPY0.25 billion to be exact), but this was revised to be recorded in 2H FY2022, since thesecurities are not expected to be sold in 1H.
As a result of this earnings revision, for 1H, as written there, we expect sales to increase by JPY13.6 billion,
operating profit by JPY6.3 billion, and net income JPY4.9 billion compared to the same period last year.
Looking at the full-year YoY comparison, we expect sales to increase by JPY15.3 billion, representing an
increase of 7%, operating profit by JPY4.1 billion or 8%, and net income by JPY2.9 billion or 8%, all comparedto the same period of the previous year.
As a result, operating profit and ordinary income are expected to reach record highs for the ninth consecutive
year, and net income for the tenth consecutive year.
The ROE outlook is 19.6%. At the beginning of the year, the outlook was 18.7%, and in the previous year,
FY2021, the figure was 19.2%.
In terms of comparison with the previous outlook, as written there, the outlook for sales is revised up by
JPY4.3 billion, the outlook for operating profit by JPY1.6 billion, and the outlook for net income by JPY2.1
billion.
As for the shareholder return outlook, as stated here, there is no change from the May announcement of the
mid-term plan target of a 75% total payout ratio and a 55% dividend payout ratio.
As a result of the upward revision mentioned earlier, the annual dividend outlook is JPY162 per share,compared to the previous outlook of JPY154. The outlook for both the interim and year-end dividends is JPY4
higher, as shown in the blue text.
Specifically, the interim dividend outlook is JPY70, and the year-end dividend outlook is JPY92, maintaining apayout ratio of 55%.
As for the total payout ratio, as written in the bottom line, the current figure is 66.7% after taking into accountthe JPY5 billion share repurchase completed in June, but the target of 75% has not been changed.

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Please see page 43 for specific figures.
The middle portion of this table shows the outlook figures we announced in May. In contrast, the revised
version is shown in blue shaded area on the far right.
As for the assumptions, as I mentioned earlier, there has been no change in the exchange rate, which we
maintain at JPY115 and at USD88 for crude oil from 2Q onwards.

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As a result, on page 44, the YoY comparison is shown in the square on the far right for 1H and the full year.
In the bottom line, we expect operating profit to increase by JPY6.3 billion in 1H of the year and by JPY4.1
billion for the full year.
In particular, in the area of Performance Materials, as I mentioned earlier, for 2Q, we have slightly lowered
the figures for Display Materials, we expect a YoY increase of JPY0.1 billion in operating profit for 2Q.
At the beginning of the year, we had included a 2Q operating profit figure of JPY7.4 billion, but this has now
been lowered by JPY1.1 billion to JPY6.3 billion.

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Also, the figures seen in comparison to the previous outlook are shown on page 45.
As shown in the bold frame on the far right, sales of Performance Materials for both 1H and the full year are
JPY1.0 billion lower and operating profit is JPY0.3 billion lower than the figures presented in May, but as you
can see at the bottom of the page, we expect an increase in sales and operating profit of agrochemicals andother products. Therefore, we are projecting an increase of JPY4.3 billion in sales and JPY1.6 billion in
operating profit.

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The following pages are for reference. Pages 57 and 58 show graphs of changes in ratio of OP margin trend
and ROE trend, respectively. This concludes my presentation.

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Question & Answer<Questioner 1>
Q: I would like to know the factors behind the downward revision of the Display Materials business in 2Q.
A: As for the reasons for the downward revision, each customer has entered a phase of capacity utilization
adjustment amid declining demand in all applications and excess panel inventories. Among these, Photo IPS
has been performing well as a result of the switch from rubbing IPS and others.
Q: How long do you expect this inventory adjustment to continue?
A: At this point, there are some uncertainties, but we expect that inventory consumption will be largely
completed in 2Q, and that the operation will recover in stages from 2H of the year.
Q: Regarding semiconductor materials, I think that production adjustments will be made to memories in the
future, so could you please explain your thinking in this area?
A: As for the future outlook for semiconductor memory, we are currently gathering various information, andat this point we do not see any major production adjustments at this stage. We see this as somewhat of adelay in investment.
Q: Next, in the Agrochemicals, there have been comments that the overall business is doing quite well andexceeding the expectation and that shipments were shifted to 1Q, but you have not made any changes for 2Q
from the current environment. What are your thoughts?
A: As you mentioned, a certain percentage of the sales were concentrated in 1Q due to shipment shifted from
2Q, but in our view, various other factors other than the impact of that also contributed to the increase insales that exceeded our outlook.
We believe there will be no major impact, although there may be some negative effects in 2Q due to shipment
shifted to 1Q from 2Q.
Q: What factors contributed to the strong sales in 1Q?
A: As for GRACIA, the elimination of channel inventories is progressing in a slightly better way than we had
expected. Demand for TARGA and other products for overseas markets was strong, including for mixture
products, and this is why our results were higher than we had expected.

<Questioner 2>
Q: In the area of Agrochemicals, 1Q results were significantly higher than forecast. I would like to ask you to
divide this increase into price increase and volume increase.
A: Among the factors contributing to the upward swing, the price increase has had an effect on some products,
such as ROUNDUP, but the most significant factor is the increase in the volume. We have just arrived at the33

table for negotiations on price increases for domestic agricultural chemicals other than ROUNDUP, so we do
not expect to see the results of these negotiations until December.
Q: As for Fluralaner, The 1Q YoY figures are strong compared to the original plan for full year, but the current
feeling is that it is likely to be above the original plan when viewed on a full year?
A: Regarding the 1Q results of Fluralaner, shipments of APIs were almost in line with our expectations.
Royalties slightly exceeded the initial forecast. Since a strong YOY growth rate was originally expected in 1Q,
there were no major surprises, and at this point there are no changes to the full-year forecast. We will present
an updated outlook in the November interim announcement and elsewhere as we revise our second-halfforecasts.
Q: As another question, since the exchange rate assumption has been unchanged for 2Q and beyond this time,
could you tell us about the exchange rate sensitivity?
A: Regarding exchange rate sensitivity, on an annual basis, the so-called imbalance portion of exports minus
imports is about USD0.3 billion for the company as a whole. Therefore, a JPY1 depreciation against USD will
have an effect of JPY0.3 billion in the direction of profits for the full-year.

<Questioner 3>
Q: With regard to chemicals, despite the impact of the loss from the nitric acid plant trouble, the results were
JPY0.1 billion higher than the outlook. Did the increase in sales prices of each product contribute significantly
to the results?
A: The increase in sales price contributed considerably to the overall increase in operating profit, which morethan covered the nitric acid plant trouble that occurred, as you mentioned.
Q: How do you see the continuity of the high prices of the ammonia related products?
A: For ammonia related products, we expect sales prices to remain at high levels in the future.
Q: Regarding Display Materials, can you explain a little more about the reasons for the upswing in Photo IPS
despite the difficult business environment?
A: In terms of the results for 1Q, I think the rate of penetration is gradually progressing as initially expected,
or even better.

<Questioner 4>
Q: Could you explain the future outlook for agrochemicals price trends?
A: First of all, regarding domestic price trends, one thing to note is that negotiations have just begun.
We have also received information that the industry as a whole is experiencing a large number of priceincreases, not only from our company but also from other pesticide manufacturers. Usually, the price isdetermined around October, but this year, the price will take longer than usual to be determined due to thelarge number of cases. However, we are looking at new prices starting at the end, December.

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As for ROUNDUP, we have already raised the price for this year, but we will further review the price ifnecessary.
As for overseas, we have already proceeded with the price increases in several cases for the major items, andwe are planning to do so for those items, regions, and countries where we have not dealt with the priceincrease.
Q: I understood that among domestic pesticide manufacturers, your company, with the exception of
Fluralaner, has a particularly high ratio of products for the domestic market; is that correct?
A: Yes, that's right.

<Questioner 5>
Q: Regarding Agrochemicals, I think there was a significant increase in LEIMAY in 1Q. Will it continue to bestrong for the full year? What is your current outlook?
A: The supply of raw materials for LEIMAY has been favorable due to various factors, and we have been
particularly successful in expanding sales in Australia, India, Vietnam, etc. We expect that LEIMAY will continue
to do well throughout the year.
Q: As for TARGA, since this was brought forward from 2Q to 1Q, will there be a slight drop in 2Q?
A: For TARGA, although the shipment shifted, we currently believe that we will be able to achieve our annual
forecast. We are working hard to expand sales, especially in foreign countries such as India, some EU countries,
Slovakia, and the Baltic countries.
Q: In that sense, is it correct to say that although the outlook has been left unchanged for 2Q beyond, we canactually expect an uptick in LEIMAY or something like that?
A: Yes. We recognize that some of this is to be expected.
Q: Next, in Display Materials, I understand that you have reduced your full-year outlook this time. What partof this is a fairly large adjustment that you are looking at with respect to the applications.
A: In terms of applications, we see the downward revision as having a significant impact mainly on
smartphones and large-screen TVs.
[END]

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