Consolidated Financial Results for the Nine Months Ended December 31, 2022
(JPGAAP)
February 10, 2023
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
Tel. +81 3 4463 8401
Scheduled submission date of quarterly report: February 13, 2023
Scheduled dividend payment date: ―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 Nine Months Ended December 31, 2022 (From April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)

OperatingincomeNet sales

Nine months ended December 31, 2022
Nine months ended December 31, 2021
(Note) Comprehensive income:Ordinary
incomeNet income attributableto owners of parent

Million yen%

Million yen%

Million yen%

Million yen%

159,234

12.7

38,811

14.4

41,341

15.5

30,76020.0

141,337

2.2

33,93543.7

35,77948.925,64039.4

Nine months ended December 31, 2022

: 32,436 million yen ,41.8%

Nine months ended December 31, 2021

: 22,877 million yen ,4.0%

Basic earnings
per share

Diluted net income
per share

Yen

Yen

Nine months ended December 31, 2022

217.99－Nine months ended December 31, 2021

179.58－(2) Consolidated Financial Position
Total assets

As of December 31, 2022

Equity ratio

Million yen

Million yen%

276,608

216,240

77.1

208,00973.6

279,687

As of March 31, 2022
(Reference) Shareholders' equity:

Net assets

As of December 31, 2022

: 213,231 million yen

As of March 31, 2022

: 205,912 million yen

2. Cash Dividends
Cash dividends per shareFirst
quarter

SecondquarterYen

Thirdquarter

Yen

Year ended March 31, 2022

－

50.00

Year ending March 31, 2023

－

70.00

Year ending March 31, 2023
(Outlook)Year-end

Yen

Annual

Yen

Yen

－

72.00

122.00－94.00

164.00(Note) Revision of the latest released dividend outlook: None

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 salesYear ending March 31, 2023

Ordinary
incomeNet income attributableto owners of parent

Basic earnings
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

229,500

10.4

53,4004.8

55,5003.4

42,1008.6

298.61(Note) Revision of the latest released outlook of financial results: Yes
Please refer to " Revision of Financial Results 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 December 31, 2022

: 141,300,000 shares

As of March 31, 2022

: 143,000,000 shares

2. Number of treasury shares
As of December 31, 2022

: 355,811 shares

As of March 31, 2022

: 1,383,611 shares

3. Average number of shares outstanding
As of December 31, 2022

: 141,110,031 shares

As of December 31, 2021

: 142,782,860 shares(Note) The Company has introduced “Board Benefit Trust (BBT)” based on the resolution of Board of Directors' meeting held on
July 30,2019.The shares held by the Trust are included in the number of treasury shares at the end of the period, and they
are included in the number of treasury shares deducted in calculating the average number of shares outstanding over theperiod. The number of shares held by the Trust (included in treasury shares) at the end of the period was 152,500 shares.
In addition, the average number of shares held by the Trust during the period was 155,406 shares.
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 Information)........................................................................................................................10(Segment Information).........................................................................................................................11(Significant Subsequent Events) ...................................................................................................................... 121

1. Qualitative Information on Quarterly Results(1) Business Performance
During the third quarter of the current fiscal year (April 1, 2022 to December 31, 2022), although consumer spending showed a recovery
trend due to the relaxation of behavioral restrictions, the domestic economy did not achieve a full-fledged recovery due to soaring raw fuelmaterial prices, inflation, and also a downturn in exports caused by the stalling of overseas economies. Under these circumstances, in theChemicals Segment, sales of both Basic Chemicals and Fine Chemicals increased, despite the impact of troubles with the Nitric acid plant.
In the Performance Materials Segment, sales of Display Materials declined, but Semiconductor Materials performed well. In the Agricultural
Chemicals Segment, sales increased. In the Healthcare Segment, sales decreased.
As a result, sales and each income exceeded the same period of the previous fiscal year. Although operating income exceeded the forecast
announced in November, ordinary income fell short of the forecast. In addition, operating income, ordinary income, and net income attributableto owners of the parent reached record highs for the second consecutive year.

(Million yen, amount rounded down to the nearest million yen)
3Q FY2021

3Q FY2022

Change3Q FY2022(Outlook)

Change from
Outlook

Sales

141,337

159,234+17,897

159,200+34

Operating income

33,93538,811+4,875

38,100+711

Ordinary income

35,77941,341+5,56241,800(459)

Net income attributableto owners of parent

25,64030,760+5,11930,800(40)(Note) The outlook is described on page 10 of the 2Q FY2022 Presentation Materials (announced on November 11, 2022).
Explanations by segments are as below.
We changed our reporting segments from the first quarter of the current fiscal year. For details, please refer to "2. Consolidated Financial
Statements (4) Notes to Consolidated Financial Statements (Segment information)."
The Chemicals Segment
In Basic chemicals, sales of urea and AdBlue®* (high-grade urea solution) increased due to price revisions in response to higher
raw material and fuel prices and freight rates. Sales of melamine (adhesives agent for particle board) declined as a result of thetermination of sales in the third quarter under the structural reforms announced in August 2021. In Fine Chemicals, sales of"TEPIC" (powder coating agent for paint, sealants, etc.) and environmental chemicals (sterilizing and disinfecting agents for poolsand septic tanks, etc.), fineoxocol(raw materials for cosmetics, etc.) increase.
As a result, sales of this segment were 29,854 million yen (an increase of 2,297 million yen) and operating income was 1,489
million yen (a decrease of 968 million yen). Compared to the outlook (Note), sales were below 0.9 billion yen and operating income
was below 0.5 billion yen.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 22 of the 2Q FY2022 Presentation Materials (announced on November 11, 2022).

2

The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) declined. In Semiconductor Materials, sales of anti-reflective coating forsemiconductors (ARC®*) declined in the third quarter due to a decline in customer utilization, however, sales maintained an increase due tostrong sales through the first half of the fiscal year. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hardcoating, Organo / Monomer sol (various kinds of coating materials, resin additive), and Oilfield materials (solvents to improve the efficiency of
shale oil and gas extraction) were steady.
As a result, sales of this segment were 62,568 million yen (an increase of 2,053 million yen) and operating income was 20,814 million yen(an increase of 105 million yen). Compared to the outlook (Note), sales were below 2.1 billion yen and operating income was below 1.2 billion
yen.
* ARC® is a registered trademark of Brewer Science, Inc.
(Note) The outlook is described on page 22 of the 2Q FY2022 Presentation Materials (announced on November 11, 2022).
The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased due to the completion of customer inventory
adjustments in the previous fiscal year. In Japanese domestic market, sales of “ROUNDUP” (non-selective foliar application
herbicide), “ALTAIR” (paddy rice herbicide) and "GRACIA" (insecticide) were firm. In the overseas market, sales increased
significantly due to strong sales of "GRACIA", "LEIMAY" (fungicide) and "PERMIT" (herbicide).
As a result, sales of this segment were 48,759 million yen (an increase of 11,878 million yen) and operating income was 15,186
million yen (an increase of 5,270 million yen). Compared to the outlook (Note), sales were above 1.8 billion yen and operating income
was above 1.5 billion yen.
(Note) The outlook is described on page 22 of the 2Q FY2022 Presentation Materials (announced on November 11, 2022).
The Healthcare Segment
Shipments of "LIVALO" (anti-cholesterol drug) to overseas were decreased. In "Custom Chemicals"(custom manufacturing andsolution proposal business for pharmaceutical companies), sales decreased due to the concentration of shipments in the second
half of the year.
As a result, sales of this segment were 4,842 million yen (a decrease of 421 million yen) and operating income was 2,124 million
yen (a decrease of 175 million yen). Compared to the outlook (Note), sales and operating income were below 0.1 billion yen.
(Note) The outlook is described on page 22 of the 2Q FY2022 Presentation Materials (announced on November 11, 2022).
Trading
Sales of this segment were 74,652 million yen (an increase of 16,029 million yen) and operating income was 2,941 million yen (anincrease of 804 million yen).
Compared to the outlook (Note), sales were above 3.2 billion yen and operating income was above 0.5 billion yen.
(Note) The outlook is described on page 79 and 80 of the 2Q FY2022 Presentation Materials (announced on November 11, 2022).
OthersSales of this segment were 19,126 million yen (an increase of 2,642 million yen) and operating income was 343 million yen (anincrease of 150 million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of December 31, 2022 was 276,608 million yen (a decrease of 3,079 million yen from March 31, 2022). It is mainly due tothe decrease of Notes receivable and electronically recorded monetary claims.
Also, total liabilities as of December 31, 2022 was 60,368 million yen (a decrease of 11,309 million yen). It is mainly due to the decrease of
short-term loans payable.
Net assets as of December 31, 2022 was 216,240 million yen (an increase of 8,230 million yen).
As a result of these factors, equity ratio was 77.1% (an increase of 3.5% from March 31, 2022).

3

(Position of Cash Flows)
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 nine months ended December 31, 2022 was 37,767 million yen (35,008 million yen
for the same period of the previous year).
Due to the investment on plant and equipment, net cash used in investing activities for the nine months ended December 31, 2022 was
13,470 million yen (6,781 million yen for the same period of the previous year).
Due to the decrease in loans payable, payment for dividends and share repurchase, net cash used in financing activities for the ninemonths ended December 31, 2022 was 37,506 million yen (35,505 million yen for the same period of the previous year).
Cash and cash equivalents at the end of this period decreased 11,845 million yen from March 31, 2022 after adjusting for the 1,364 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 25,928 million yen (25,155 million yen for the same period of the previous year).

(3) Outlook of Consolidated Financial Results and Other Forward-looking Information
Outlook for the year ending March 31, 2023 was revised as follows based on the cumulative third quarter and demand forecast.
For the exchange rate of the fourth quarter and beyond, it is assumed that 1 U.S. dollar is 130 yen.
Revision of consolidated financial results’ outlook for the year ending March 31, 2023 (April 1, 2022 to March 31, 2023)(Billion yen, amounts rounded to the nearest billion yen)Previous
outlook(A)Revisedoutlook(B)Change(B-A)

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

Sales

234.2

229.5

(4.7)

(2.0%)

208.0

Operating income

55.5

53.4

(2.1)

(3.8%)

51.0

Ordinary income

58.3

55.5

(2.8)

(4.8%)

53.7

Net income attributable toowners of parent

42.1

42.1

0.0

0.0%

38.8

Basic earnings per share

298.59 yen

298.61 yen+0.02 yen

0.0%

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

42.4

39.7

2.5

1.7

Performance Materials

89.2

83.5

30.3

26.2

Agricultural Chemicals

79.2

81.4

21.9

23.5

Healthcare

6.6

6.6

2.8

2.9

Trading

95.7

98.9

2.8

3.3

Others

28.0

28.1

1.0

0.9

Adjustment(106.9)(108.7)

(5.8)

(5.1)

Total

234.2

229.5

55.5

53.4

(4) Basic Policy on Distribution of Earnings
The Company’s basic policy of profit allocation is returning to shareholders by improving company value through increasing revenue in themedium and long terms.
In medium-term business plan “Vista2027” 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 ofDecember 31, 2022

AssetsCurrent assets
Cash and deposits

34,65825,928Notes and accounts receivable - trade

79,97961,237

Merchandise and finished goods

37,66452,76415247

Raw materials and supplies

14,496

17,178

Accounts receivable - other

2,824

2,004

Short-term loans receivable

1,541

1,507

Other

4,140

6,550

(41)

(34)

175,279

167,383

69,44370,898(45,158)(46,221)Work in process

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net

24,284

24,677

Machinery, equipment and vehicles

145,129

148,756(132,567)(136,013)

12,561

12,743

41,34542,084(37,384)(38,378)

3,960

3,706

8,809

8,817

-

24

-

(9)

Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation-

14

Construction in progress

Leased assets, net

3,561

12,060Total property, plant and equipment

53,17762,019

1,736

1,699

Other

10,044

10,074

Total intangible assets

11,78011,773

Investment securities

30,21729,590Long-term loans receivable

3,323

0

Intangible assets
SoftwareInvestments and other assets

Deferred tax assets

918

319

Net defined benefit asset

1,844

2,430

Other

3,256

3,201

Allowance for doubtful accounts

(110)

(110)

Total investments and other assets

39,45035,431

104,408

109,224

279,687

276,608

Total non-current assets
Total assets

5

(Million yen)
As ofDecember 31, 2022

As ofMarch 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade

19,043

23,772

Short-term loans payable

20,981

9,325

552

510

8,710

3,096

Current portion of long-term loans payable
Income taxes payable
Provision for bonuses

2,285

750

Other

14,39817,423

Total current liabilities

65,97154,8781,182

948

Non-current liabilities
Long-term loans payable
Deferred tax liabilities

69

405

Provision for business structure improvement

698

436

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

380

2,638

2,521

Other
Total non-current liabilities
Total liabilities

5,706

5,489

71,67860,36818,942

18,942

Net assets
Shareholders' equity
Capital stock
Capital surplus

13,613

13,613Retained earnings

172,393

172,073

Treasury shares(8,261)(2,110)Total shareholders' equity

196,688

202,518

8,304

8,286

898

2,060

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

21

366

9,223

10,713

2,097

3,008

208,009216,240

279,687

276,608

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Million yen)
Nine Months Ended
December 31, 2021

Nine Months Ended
December 31, 2022

Net sales

141,337

159,234

Cost of sales

70,89580,785Gross profit

70,441

78,449Selling, general and administrative expenses

36,506

39,638Operating income

33,93538,811

Interest income

31

154

Dividend income

521

606

Equity in earnings of affiliates

840

1,398

Foreign exchange gains

309

912

Non-operating income

Other

712

485

2,415

3,557

Interest expenses

55

165

Loss on disposal of non-current assets

386

584

Plant stop losses

40

86

Other

89

190

Total non-operating income
Non-operating expenses

Total non- operating expenses

571

1,026

35,77941,341Gain on sales of investment securities

3,316

-

Total extraordinary income

3,316

-

Loss on valuation of investment securities

298-

Business structure improvement expenses

2,165

-

Ordinary income
Extraordinary income

Extraordinary losses

Loss on business of subsidiaries and affiliates

626

-

3,090

-

Income before income taxes and non-controlling interests

36,00541,341

Income taxes - current

9,205

9,557

Income taxes - deferred

881

803

Total extraordinary losses

Total income taxes

10,087

10,361

Net income

25,91830,980Net income attributable to non-controlling interests
Net income attributable to owners of parent

7

277

219

25,64030,760- Consolidated Statements of Comprehensive Income(Million yen)

Net income

Nine Months Ended
December 31, 2021

Nine Months Ended
December 31, 2022

25,91830,980

Other comprehensive income(3,057)(17)

Foreign currency translation adjustment

Valuation difference on available-for-sale securities

62

1,128

Remeasurements of defined benefit plans, net of tax

(45)

345

Share of other comprehensive income of entities accounted forusing equity method(0)0Total other comprehensive income
Comprehensive income(3,040)1,456

22,87732,436

22,60432,076273

359(Comprehensive income attributable to)
Owners of parent
Non-controlling interests8(3) Consolidated Statements of Cash Flows(Million yen)
Nine Months Ended
December 31, 2021

Nine Months Ended
December 31, 2022

Income before income taxes and non-controlling interests

36,00541,341

Depreciation

7,218

7,910

Business structure improvement expenses

2,165

-

Loss on business of subsidiaries and affiliates

626-

Loss on valuation of investment securities

298-

Amortization of goodwill

77

76

Cash flows from operating activities

Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses
Loss (gain) on disposal of non-current assets

(553)

(761)

(3,316)

-

55

165

386

584

Decrease (increase) in notes and accounts receivable - trade

13,37519,026

Decrease (increase) in inventories(11,628)(17,803)

Increase (decrease) in notes and accounts payable - trade

3,275

4,172

Other

(1,303)(3,137)

Subtotal

46,683

51,574

Interest and dividend income received

1,180

1,341

Interest expenses paid

(55)

(162)

Income taxes paid

(12,799)(14,986)

Net cash provided by (used in) operating activities

35,00837,767Purchase of investment securities

(129)

(496)

Proceeds from sales of investment securities

4,174

491

Purchase of shares of subsidiaries

(19)

(25)

(6,229)(11,753)

Cash flows from investing activities

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

(325)

(508)

Purchase of intangible assets(897)(1,012)

Payments of long-term loans receivable(3,322)-

Net decrease (increase) in short-term loans receivable

(184)

78

Purchase of long-term prepaid expenses

(97)

(241)

Other
Net cash provided by (used in) investing activities

250

(3)

(6,781)(13,470)(12,708)(12,032)

(276)

(276)

(15,468)(20,084)

(48)

(105)

(7,003)(5,002)0(5)(35,505)(37,506)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Dividends paid to non-controlling interests
Share repurchase
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

52

1,364

Net increase (decrease) in cash and cash equivalents(7,225)(11,845)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

32,38034,658-

3,116

25,15525,9289

(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. In addition, the Company made a stock
payment of 6,800 shares to the eligible party on July 25, 2022. As a result, treasury shares decreased by 55 million yen during thethird 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. Furthermore, the Company canceled 700,000 treasury shareson August 31, 2022 based on the resolution of Board of Directors' meeting held on August 23, 2022. As a result, retained earnings
and treasury shares decreased by 11,097 million yen during the third 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 third quarter of current consolidated fiscal year.
(Changes in Accounting Policies)(Application of "Implementation Guidance on Accounting Standard for Fair Value Measurement")
The company adopted “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31,
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 by “Implementation Guidance on Accounting Standard for Fair Value Measurement” into 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 group tax
sharing system from the current first quarter ended June 30, 2022. Accordingly, corporate, local corporate income taxes, and taxeffect accounting are accounted for and disclosed in accordance with “Practical Solution on the Accounting and Disclosure Under
the Group Tax Sharing System” (PITF No. 42, August 12, 2021. Hereinafter “PITF 42”). 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 Nine Months Ended December 31, 2021 (From April 1, 2021 to December 31, 2021)
Chemicals

Performance Agricultural
Materials
Chemicals(Million yen)

Healthcare

Trading

Others

Total

Adjustment(2)(3)

Consolidated
Total

Net Sales
Sales to outside customers(1)

19,05151,502

31,956

5,228

42,8297,123

157,692(16,354)

141,337

Intersegment Sales

8,505

9,013

4,924

35

15,7939,360

47,632(47,632)-

Total Sales

27,55760,51536,8605,263

58,623

16,484205,324(63,986)

141,337

2,458

20,709

9,915

2,300

2,136

193

37,712(3,777)33,935

Segment Income or Loss
(Operating Income or Loss)

Notes: (1) Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions.
A reconciliation of gross sales to net sales as agent transactions is made in the Adjustment section.
(2) The (16,354) million yen adjustment in sales to outside customers includes (16,369) million yen in the elimination of agent transactions, and15 million yen sales not attributable to any reporting segment.
(3) The (3,777) million yen adjustment in segment income includes (68) million yen in intersegment eliminations, 15 million yen sales not
attributable to any reporting segment, and (3,723) 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 Nine Months Ended December 31, 2022 (From April 1, 2022 to December 31, 2022)
Chemicals

Performance Agricultural
Materials
Chemicals(Million yen)

Healthcare

Trading

Others

Total

Adjustment(2)(3)

Consolidated
Total

Net Sales
Sales to outside customers(1)

20,461

50,56240,4004,831

57,072

8,161

181,490(22,255)

159,234

Intersegment Sales

9,392

12,0068,359

1017,57910,96458,313(58,313)-

Total Sales

29,85462,56848,7594,842

74,652

19,126

239,804(80,569)

159,234

1,489

20,814

15,186

2,124

2,941

343

42,900(4,089)38,811

Segment Income or Loss
(Operating Income or Loss)

Notes: (1) Sales to outside customers in reportable segments are calculated on a gross basis, including sales that are agent transactions.
A reconciliation of gross sales to net sales as agent transactions is made in the Adjustment section.
(2) The (22,255) million yen adjustment in sales to outside customers includes (22,271) million yen in the elimination of agent transactions, and16 million yen sales not attributable to any reporting segment.
(3) The (4,089) million yen adjustment in segment income includes (44) million yen in intersegment eliminations, 17 million yen sales not
attributable to any reporting segment, and (4,061) 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 thethird quarter of the previous fiscal year is presented based on the changed reporting segments.

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(Significant Subsequent Events)
The Company, at the board of Director's meeting held on February 10, 2023, has decided to repurchase its shares in the market
under Article 156 of the Companies 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(1) Class of shares: Common shares of the company(2) Total number of shares: Up to 1,000,000 shares(0.71% of total shares outstanding, excluding treasury shares)(3) Total amount: Up to 4,000,000,000 yen(4) Period of repurchase: From February 13, 2023 to April 21, 2023

(For reference)

Number of treasury shares as of December 31, 2022

Total number of shares issued (excluding treasury shares): 141,096,689 shares
Number of treasury shares:

203,311 shares* Not including 152,500 shares of treasury shares which the Board Benefit Trust (BBT) has hold.

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