Consolidated Financial Results for the Three Months Ended June 30, 2022
(JPGAAP)
August 8, 2022
Stock Exchange: Tokyo
Name of listed company: Nissan Chemical Corporation
URL: https://www.nissanchem.co.jp/
Code number: 4021
Representative: YAGI Shinsuke, President
Inquiry to: ARITA Nobuhiro, Managing Associate Executive Officer and Head of Finance and Accounting Department
Scheduled submission date of quarterly report: August 12, 2022
Scheduled dividend payment date:
Supplemental information: Yes
Financial results meeting : Yes (For institutional investors and analysts)

Tel. +81 3 4463 8401

(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (From April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)

OperatingincomeNet sales

Three months ended June 30, 2022
Three months ended June 30, 2021
(Note) Comprehensive income:Net income attributableto owners of parent

Ordinary
incomeMillion yen%

Million yen%

Million yen%

Million yen%

58,29025.4

17,26645.4

19,492

58.2

13,86956.7

46,499(5.6)

11,87521.1

12,323

18.3

8,849

16.3

Three months ended June 30, 2022

:16,045 million yen ,99.2%

Three months ended June 30, 2021

: 8,053 million yen ,(20.2%)

Basic earnings
per share

Diluted net income
per share

Yen

Three months ended June 30, 2022

98.13

Three months ended June 30, 2021

61.73

Yen

(2) Consolidated Financial Position
Net assets

Total assets

As of June 30, 2022
(Reference) Shareholders' equity:

Million yen

Million yen%

277,231

209,71274.5

208,00973.6

279,687

As of March 31, 2022

Equity ratio

As of June 30, 2022

: 206,663 million yen

As of March 31, 2022

: 205,912 million yen

2. Cash Dividends
Cash dividends per shareFirst
quarter

Secondquarter

Yen

Year ended March 31, 2022

Yen

Third
quarterYear-end

Yen

Annual

Yen

Yen

50.00

72.00

122.00

70.00

92.00

162.00Year ending March 31, 2023
Year ending March 31, 2023
(Outlook)(Note) Revision of the latest released dividend outlook: Yes

3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)(% indicates the rate of increase/decrease against the same period of the previous year)

OperatingincomeNet sales

Ordinary
incomeNet income attributableto owners of parent

Basic earnings
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

Six months
ending September 30, 2022

105,400

14.8

27,60029.4

29,50032.5

21,20030.1

150.12

Year ending March 31, 2023

223,300

7.4

55,1008.1

57,3006.7

41,7007.5

295.83(Note) Revision of the latest released outlook of financial results: Yes
Please refer to " Revision of Financial Results Outlook, Interim Dividend Outlook and Year-ended Dividend Outlook" for details.

4. Notes(1) Changes in significant consolidated subsidiaries(Changes in specified subsidiaries involving changes in scope of consolidation):Yes

Newly Included: 1 company (Company name: Nissan Bharat Rasayan Private Limited)(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 [2. Consolidated Financial Statements (4) Notes to Consolidated Financial Statements"(Changes in Accounting Policies)"] on page 10 for further details.
(4) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of June 30, 2022

: 142,000,000 shares

As of March 31, 2022 : 143,000,000 shares
2. Number of treasury shares
As of June 30, 2022

: 1,062,348 shares

As of March 31, 2022

: 1,383,611 shares

3. Average number of shares outstanding
As of June 30, 2022

: 141,334,912 shares

As of June 30, 2021

: 143,347,412 shares(Note) July 30,2019. The shares held by the Trust are included in the number of treasury shares at the end of the period, and they(Note) are included in the number of treasury shares deducted in calculating the average number of shares outstanding over the(Note) period. The number of shares held by the Trust (included in treasury shares) at the end of the period was 159,300 shares.
(Note) In addition, the average number of shares held by the Trust during the period was 160,083 shares.
(Note) This is not included in the average number of shares outstanding.
* Presentation regarding implementation status of quarterly review procedures
The financial release is not subject to quarterly review.
* 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.

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. Qualitative Information on Quarterly Results(1) Business Performance(2) Financial Position........................................................................................................ 2.............................................................................................................................. 2..................................................................................................................................... 3(3) Outlook of Consolidated Financial Results and Other Forward-looking Information .................................................... 4(4) Basic Policy on Distribution of Earnings
2. Consolidated Financial Statements......................................................................................................... 4................................................................................................................... 5(1) Consolidated Balance Sheets ...................................................................................................................... 5(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income ......................................... 7(3) Consolidated Statements of Cash Flows........................................................................................................ 9(4) Notes to Consolidated Financial Statements..................................................................................................10(Notes on Assumption of Going Concern).................................................................................................10(Notes on Significant Changes in Shareholders' Equity)................................................................................ 10(Changes in Accounting Policies) ............................................................................................................ 10(Additional infomation).........................................................................................................................10(Segment Information).........................................................................................................................11

1

1 Qualitative Information on Quarterly Results(1) Business Performance
During the first quarter of the current fiscal year (April 1, 2022 to June 30, 2022), although consumer spending showed a recovery trend dueto the relaxation of behavioral restrictions, the domestic economy did not achieve a full-fledged recovery due to soaring raw material prices,
disruptions in the supply chain, and other factors. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals andFine Chemicals increased, despite the impact of problems with nitric acid plant. In the Performance Materials Segment, Semiconductor
Materials performed well. In the Agricultural Chemicals Segment, sales increased. In the Healthcare segment, both healthcare business andAs a result, sales and each income exceeded the same period of the previous fiscal year and the outlooks announced in May. We alsoachieved record highs for operating income, ordinary income, and net income attributable to owners of the parent for the second consecutive
year.
(Million yen, amount rounded down to the nearest million yen)
1Q FY2021

1Q FY2022

Change1Q FY2022(Outlook)(Note)

Change from
OutlookSales

46,49958,290+11,791

52,400+5,890Operating income

11,875

17,266+5,39014,600+2,666

Ordinary income

12,323

19,492+7,16915,200+4,292

Net income attributableto owners of parent

8,849

13,869+5,020

11,200+2,669(Note) The outlook is described on page 10 of the FY2021 Presentation Materials (announced on May 13, 2022).
Explanations by segments are as below.
We changed our reporting segments from the first quarter of the current fiscal year. For supplemental information, please refer to[2.Consolidated Financial Statements

page 11.

The Chemicals Segment
In Basic chemicals, sales of melamine (adhesives agent for particle board), urea, AdBlue®* (high-grade urea solution) were strong.
In Fine Chemicals, sales of "TEPIC" (powder coating agent for paint, sealants, etc.) and environmental chemicals (sterilizing anddisinfecting agents for pools and septic tanks, etc.) also increase.
As a result, sales of this segment were 10,415 million yen (an increase of 1,582 million) and operating income was 1,716 million
yen (an increase of 452 million yen). Compared to the outlook (Note), sales were above 0.2 billion yen and operating income wasabove 0.1 billion yen.
(Note) The outlook is described on page 24 of the FY2021 Presentation Materials (announced on May 13, 2022).
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) for smartphones declined. In Semiconductor Materials, sales of antireflective coating for semiconductors (ARC®*) and multilayer materials (OptiStack®*) increased due to favorable customer operations. In
Inorganic materials, sales of "SNOWTEX" for polishing electronic materials and hard coating, Organo / Monomer sol (various kinds of coating
materials, resin additive) and Oilfield materials (for enhancing oil recovery) were steady.
As a result, sales of this segment were 21,774 million yen (an increase of 1,822 million) and operating income was 7,888 million yen (anincrease of 959 million yen). Compared to the outlook (Note), sales were above 0.6 billion yen and operating income was above 0.8 billion
yen.
(Note) The outlook is described on page 24 of the FY2021 Presentation Materials (announced on May 13, 2022).
* ARC®, OptiStack® are registered trademarks of Brewer Science, Inc.

2

The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased due to the completion of customer inventory adjustmentsin the previous fiscal year. In Japanese-rice herbicide), and "GRACIA" (insecticide) were firm. In the overseas market, sales increased significantly due to strong sales of "TARGA"(herbicide), "LEIMAY" (fungicide) and "GRACIA", as well as the shift in the timing of some shipments.
As a result, sales of this segment were 19,728 million yen (an increase of 6,324 million yen) and operating income was 6,825 million yen (anincrease of 2,777 million yen). Compared to the outlook (Note), sales were above 2.5 billion yen and operating income was above 1.1 billion
yen.
(Note) The outlook is described on page 24 of the FY2021 Presentation Materials (announced on May 13, 2022).
The Healthcare Segment
Shipments of "LIVALO" (anti-cholesterol drug) to overseas were firm. In "Custom Chemicals", sales increased due to theconcentration of shipments.
As a result, sales of this segment were 1,654 million yen (an increase of 584 million) and operating income was 757 million yen (anincrease of 457 million yen). Compared to the outlook (Note), sales were above 0.1 billion yen and operating income was above 0.2
billion yen.
(Note) The outlook is described on page 24 of the FY2021 Presentation Materials (announced on May 13, 2022).
Trading
Sales of this segment were 23,656 million yen (an increase of 5,857 million yen) and operating income was 1,033 million yen (anincrease of 369 million yen). Compared to the outlook (Note), sales were above 4.0 billion yen and operating income was above 0.4
billion yen.
(Note) The outlook is described on page 82 and 83 of the FY2021 Presentation Materials (announced on May 13, 2022).
OthersSales of this segment were 6,537 million yen (an increase of 1,626 million yen) and operating income was 133 million yen (an increase of
65 million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of June 30, 2022 was 277,231 million yen (a decrease of 2,456 million yen from March 31, 2022). It is mainly due to thedecrease of cash and deposits.
Also, total liabilities as of June 30, 2022 was 67,519 million yen (a decrease of 4,158 million yen). It is mainly due to the decrease of shortterm loans payable.
Net assets as of June 30, 2022 was 209,712 million yen (an increase of 1,702 million yen).
As a result of these factors, equity ratio was 74.5% (an increase of 0.9% from March 31, 2022).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain and loss on working
capital, net cash provided by operating activities for the three months ended June 30, 2022 was 13,107 million yen (11,849 million yen forthe same period of the previous year).
Due to the investment on plant and equipment, net cash used in investing activities for the three months ended June 30, 2022 was 4,345
million yen (3,291 million yen).
Due to the decrease in loans payable, payment for dividends and share repurchase, net cash used in financing activities for the threemonths ended June 30, 2022 was 18,023 million yen (23,821 million yen).
Cash and cash equivalents at the end of this period decreased 8,407 million yen from March 31, 2022 after adjusting for the 852 million
yen effect of exchange rate. Moreover, after adding the 3,116 million yen increase in cash and cash equivalents resulting from change inscope of consolidation, the balance stood at 29,366 million yen (17,121 million yen).

3

(3) Outlook of Consolidated Financial Results and Other Forward-looking Information
Outlook for the six months ending September 30, 2022 and the year ending March 31, 2023 were revised as follows based on
the cumulative first quarter and demand forecast. The exchange rate for the second quarter and beyond is assumed to be 115 yen
to the U.S. dollar.
utlook for the six months ending September 30, 2022 (April 1, 2022 to September 30, 2022)(Billion yen, amounts rounded to the nearest billion yen)Previous
outlook(A)Increase or
decrease(B-A)

Revisedoutlook(B)Rate of change(%)(Reference)
Results for theprevious fiscal year

Sales

101.1

105.4

+4.3

+4.3%

91.8

Operating income

26.0

27.6

+1.6

+6.2%

21.3

Ordinary income

26.3

29.5

+3.2

+12.2%

22.3

Net income attributable toowners of parent

19.3

21.2

+1.9

+9.8%

16.3

Basic earnings per share

136.77 yen

150.12 yen+13.35 yen+9.8%

113.94 yen

31, 2023 (April 1, 2022 to March 31, 2023)(Billion yen, amounts rounded to the nearest billion yen)Previous
outlook(A)Increase or
decrease(B-A)

Revisedoutlook(B)Rate of change(%)(Reference)
Results for theprevious fiscal year

Sales

219.0

223.3

+4.3

+2.0%

208.0

Operating income

53.5

55.1

+1.6

+3.0%

51.0

Ordinary income

54.1

57.3

+3.2

+5.9%

53.7

Net income attributable toowners of parent

39.6

41.7

+2.1

+5.3%

38.8

Basic earnings per share

280.90 yen

295.83 yen+14.93 yen+5.3%

271.88 yen

Revision of consolidated sales and operating income outlook for the year ending March 31, 2023
(Billion yen, amounts rounded to the nearest billion yen)
Sales
Operating income
Previous

RevisedPrevious

RevisedChemicals

38.6

38.8

2.2

2.3

Performance Materials

89.9

88.9

30.5

30.2

Agricultural Chemicals

72.9

75.4

19.5

20.6

Healthcare

5.9

6.0

2.1

2.3

Trading

83.7

87.7

2.3

2.7

Others

26.5

26.9

0.8

0.7

Adjustment(98.5)(100.4)

(3.9)

(3.7)

Total

219.0

223.3

53.5

55.1

(4) Basic Policy on Distribution of Earnings
revenue in themedium and long terms.
In medium-Stage I launched from April 2022, the company aims to realize dividend payout ratio to be 55%

and total payout ratio to be 75% after FY2022.

42. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)

As ofMarch 31, 2022

As ofJune 30, 2022

AssetsCurrent assets
Cash and deposits

34,65829,366

Notes and accounts receivable - trade, and contract assets

79,97980,045Merchandise and finished goods

37,66440,85915

160

Raw materials and supplies

14,496

14,765

Accounts receivable - other

2,824

1,942

Short-term loans receivable

1,541

1,629

Other

4,140

3,887

(41)

(35)

175,279

172,619

Buildings and structures, net

24,28424,022Other, net

28,89332,889Total property, plant and equipment

53,17756,911

Software

1,736

1,635

Other

10,044

10,394

Total intangible assets

11,78012,030Investment securities

30,21729,806Long-term loans receivable

3,323

0

918

319

Net defined benefit asset

1,844

2,484

Other

3,256

3,168

Allowance for doubtful accounts

(110)

(110)

Total investments and other assets

39,45035,669104,408

104,611279,687

277,231Work in process

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

Intangible assets

Investments and other assets

Deferred tax assets

Total non-current assets
Total assets

5

(Million yen)

As ofMarch 31, 2022

As ofJune 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

19,043

18,525

Short-term loans payable

20,981

18,816552

552

Income taxes payable

8,710

5,583

Provision for bonuses

2,285

726

Other

14,39816,980Total current liabilities

65,971

61,183

1,182

1,182

Deferred tax liabilities

69

608

Provision for business structure improvement

698

611

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

626

626

200

170

290

328

Other

2,638

2,807

Total non-current liabilities

5,706

6,335

71,67867,519

Capital stock

18,942

18,942

Capital surplus

13,613

13,613Current portion of long-term loans payableNon-current liabilities
Long-term loans payable

Total liabilities
Net assets
Shareholders' equity

Retained earnings

172,393

169,802

Treasury shares(8,261)(6,884)

Total shareholders' equity

196,688

195,473

8,304

8,637

Foreign currency translation adjustment

898

2,159

Remeasurements of defined benefit plans

21

393

9,223

11,190

2,097

3,048

208,009

209,712279,687

277,231

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(Million yen)Three Months Ended
June 30, 2021

Three Months Ended
June 30, 2022

Net sales

46,49958,290

Cost of sales

22,671

28,026Gross profit

23,82830,263

Selling, general and administrative expenses

11,952

12,997

Operating income

11,875

17,266

Interest income

448

Dividend income

270

258

Equity in earnings of affiliates

178

232

-

1,694

Other

178

187

Total non-operating income

631

2,420

Interest expenses

31

41

Loss on disposal of non-current assets

112

83

Foreign exchange losses

13

-

Other

26

69

Total non- operating expenses

183

194

Non-operating income

Foreign exchange gains

Non-operating expenses

Ordinary income

12,323

19,492Extraordinary income--

Extraordinary losses--

Income before income taxes and non-controlling interests

12,323

19,492

Income taxes - current

2,159

4,560

Income taxes - deferred

1,244

843

Total income taxes

3,403

5,403

Net income

8,920

14,089

70

219

8,849

13,869Net income attributable to non-controlling interests
Net income attributable to owners of parent

7

- Consolidated Statements of Comprehensive Income(Million yen)

Net income

Three Months Ended
June 30, 2021

Three Months Ended
June 30, 2022

8,920

14,089

(852)

332

1

1,250

(15)

372

(0)

0

(866)

1,955

8,053

16,045

7,983

15,663

69

382

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)
Owners of parent
Non-controlling interests8(3) Consolidated Statements of Cash Flows(Million yen)Three Months Ended
June 30, 2021

Three Months Ended
June 30, 2022

Income before income taxes and non-controlling interests

12,323

19,492

Depreciation

2,248

2,451

25

25

(275)

(306)

Interest expenses

31

41

Loss (gain) on disposal of non-current assets

112

83

Decrease (increase) in notes and accounts receivable - trade

7,537

257

Decrease (increase) in inventories(3,196)(3,381)

Increase (decrease) in notes and accounts payable - trade(644)(1,153)

Other

273

2,661

Subtotal

18,436

20,171

Interest and dividend income received

514

490

Interest expenses paid

(29)

(38)

Income taxes paid

(7,071)(7,515)

Net cash provided by (used in) operating activities

11,84913,107

(78)

(441)

-

0

Cash flows from operating activities

Amortization of goodwill
Interest and dividend income

Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries

-

(25)

(2,812)(3,449)Payments for retirement of property, plant and equipment

(74)

(79)

Purchase of intangible assets

(450)

(328)

Net decrease (increase) in short-term loans receivable

129

(16)

Purchase of long-term prepaid expenses

(23)

(5)

Other

19

1

(3,291)(4,345)

Net increase (decrease) in short-term loans payable(8,430)(2,706)

Cash dividends paid

(8,341)(10,208)

(48)

(105)

Share repurchase(4,755)(5,000)Setting up the trust for share repurchase(2,245)-0(2)(23,821)(18,023)

4852

Net increase (decrease) in cash and cash equivalents(15,258)(8,407)

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

32,38034,658-

3,116

17,121

29,366

Purchase 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 equivalents9(4) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
The Company made a stock payment of 4,700 shares to the eligible party on April 26, 2022 based on the trust agreement of theBoard Benefit Trust (BBT) resolved by the Board of Director's meeting on July 30, 2019. As a result, treasury shares decreased by
22 million yen during the first quarter of current consolidated fiscal year. Also, the Company canceled 1,000,000 treasury shares on
May 10, 2022 based on the resolution of Board of Directors' meeting held on April 26, 2022. As a result, retained earnings andtreasury shares decreased by 6,354 million yen during the first quarter of current consolidated fiscal year.
In addition, the Company repurchased 683,300 treasury shares based on the resolution of Board of Directors' meeting held on
May 13, 2022. As a result, treasury shares increased by 4,999 million yen during the first quarter of current consolidated fiscal year.
(Changes in Accounting Policies)(Application of "Implementation Guidance on Accounting Standard for Fair Value Measurement")(ASBJ Guidance No. 31,
The company adopted
June 17, 2021) from the first quarter of the fiscal year ending March 31, 2023. Based on the transitional treatment prescribed in
Paragraph 27-2 of "Implementation Guidance on Accounting Standard for Fair Value Measurement", we have decided to apply the
new accounting policies set forth byinto the future.
This change had no impact on the quarterly consolidated financial statements.
(Additional information)(Adoption of the group tax sharing system)
The company and some of its domestic subsidiaries have transitioned from the consolidated taxation system to the g roup tax
sharing system from the current first quarter ended June 30, 2022. Accordingly, corporate, local corporate income taxes, and taxeffect accounting are accounted(PITF No. 42, August). In addition, based on Article 32 (1) of PITF
42, the effects of the change in accounting policies due to the adoption of PITF 42 are deemed negligible.

10

(Segment Information)
1. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Three Months Ended June 30, 2021 (From April 1, 2021 to June 30, 2021)
Chemicals

Performance Agricultural
Materials
Chemicals(Million yen)

Healthcare

Trading

Others

Total

Adjustment(1)(2)

Consolidated
Total

Net Sales
Sales to outside customers

6,093

17,031

12,612

1,069

12,527

1,878

51,212(4,713)46,499Intersegment Sales

2,739

2,920

791

-

5,272

3,032

14,756(14,756)-

Total Sales

8,833

19,951

13,403

1,069

17,7994,911

65,969(19,469)

46,499

1,263

6,929

4,048

299

664

68

13,273(1,397)

11,875

Segment Income or Loss
(Operating Income or Loss)

Notes: (1) The (4,713) million yen adjustment in sales to outside customers includes (4,718) million yen in the elimination of agent transactions, and 5
million yen sales not attributable to any reporting segment.
(2) The (1,397) million yen adjustment in segment income includes (136) million yen in intersegment eliminations, 5 million yen sales not
attributable to any reporting segment, and (1,267) million yen corporate expenses not attributable to any reportable segment. The

corporate

expenses are mainly group administrative expenses which do not belong to any segment.

2) For the Three Months Ended June 30, 2022 (From April 1, 2022 to June 30, 2022)
Chemicals

Performance Agricultural
Materials
Chemicals(Million yen)

Healthcare

Trading

Others

Total

Adjustment(1)(2)

Consolidated
Total

Net Sales
Sales to outside customers

7,313

17,91017,644

1,654

17,4262,874

64,824(6,533)58,290Intersegment Sales

3,102

3,863

2,084

-

6,229

3,662

18,942(18,942)-

Total Sales

10,415

21,774

19,728

1,654

23,656

6,537

83,766(25,476)

58,290

1,716

7,888

6,825

757

1,033

133

18,355(1,089)17,266

Segment Income or Loss
(Operating Income or Loss)

Notes: (1) The (6,533) million yen adjustment in sales to outside customers includes (6,535) million yen in the elimination of agent transactions, and 1
million yen sales not attributable to any reporting segment.
(2) The (1,089) million yen adjustment in segment income includes 201 million yen in intersegment eliminations, 1 million yen sales not
attributable to any reporting segment, and (1,292) million yen corporate expenses not attributable to any reportable segment. The corporate
expenses are mainly group administrative expenses which do not belong to any segment.

2. Matters related to changes in reporting segments(Changes in reporting segments)
Following the revision to our organizational structure, from April 1, 2022, the Healthcare segment was transferred from the Pharmaceuticals
segment, and the company has changed the segment to which some divisions are attributed. Furthermore, the segment information for the
first quarter of the previous fiscal year is presented based on the changed reporting segments.

11