Consolidated Financial Results for the Three Months Ended June 30, 2024
(JPGAAP)

August 9 2024
Name of listed company: Nissan Chemical Corporation

Stock Exchange: Tokyo

Code number: 4021

URL: https://www.nissanchem.co.jp/

Representative: YAGI Shinsuke, President
Inquiry to: NOMURA Hiroshi, Deputy Head of Finance and Accounting Department Tel. +81 3 4463 8401
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 Three Months Ended June 30, 2024 (From April 01, 2024 to June 30, 2024)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales

Ordinary

incomeincomeNet income attributableto owners of parent

Million yen%

Million yen%

Million yen%

Million yen%

58,68854,9396.8(5.7)

14,42614,998(3.8)(13.1)

16,02917,046(6.0)(12.5)

11,59012,236(5.3)(11.8)

Three months ended June 30, 2024
Three months ended June 30, 2023
(Note) Comprehensive income:OperatingThree months ended June 30, 2024

: 13,194 million yen, (10.4%)

Three months ended June 30, 2023

: 14,729 million yen, (8.2%)

Basic earnings

Diluted net income

per shareper share
Yen

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen

－
－

83.78
87.40

(2) Consolidated Financial Position
Total assets

As of June 30, 2024
As of March 31, 2024
(Reference) Shareholders' equity:

Net assets

Equity ratio

Million yen

Million yen%

335,800
323,458

227,088
230,952

66.5
70.3

As of June 30, 2024

: 223,422 million yen

As of March 31, 2024

: 227,520 million yen

2. Cash Dividends
Cash dividends per share
First

SecondThird

quarterquarterquarter

Yen

Year ended March 31, 2024－

Year ending March 31, 2025－

Year ending March 31, 2025(Outlook)

Yen

Year-end

Yen

Annual

Yen

Yen

70.00

－

94.00

164.00

70.00

－

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, 2025 (From April 01, 2024 to March 31, 2025)(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales

Six months
ending September 30, 2024
Year ending March 31, 2025

Operating

Ordinary

Net income attributable

Basic earnings

incomeincometo owners of parent

per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

109,600

3.7

24,000(0.4)

23,300(11.1)

18,100(7.2)

131.23

234,100

3.3

50,0003.7

50,500(2.2)

38,4001.0

279.08(Note) Revision of the latest released outlook of financial results: None

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: NC Agro Hakodate Corporation)(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 see [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, 2024

: 138,800,000 shares

As of March 31, 2025

: 138,800,000 shares

2. Number of treasury shares
As of June 30, 2024

: 1,052,083 shares

As of March 31, 2024

: 186,649 shares

3. Average number of shares outstanding
As of June 30, 2024

: 138,352,172 shares

As of June 30, 2023

: 140,009,075 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 oftreasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by the Trust(included in treasury shares) at the end of the period was 139,400 shares.
In addition, the average number of shares held by the Trust during the period was 140,167 shares.
This is not included in the average number of shares outstanding.
* Review of quarterly consolidated financial statements by certified public accountants or auditing corporation: None
* 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 .................................................................................................................

2(1) Business Performance .............................................................................................................................................

2(2) Financial Position .....................................................................................................................................................

4(3) Outlook of Consolidated Financial Results and Other Forward-looking Information ................................................

4(4) Basic Policy on Distribution of Earnings ...................................................................................................................

4

2. Consolidated Financial Statements ...............................................................................................................................

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(Segment Information) ......................................................................................................................................... 11

1. Qualitative Information on Quarterly Results(1) Business Performance
During the first quarter of the current fiscal year (April 01, 2024 to June 30, 2024), the domestic economy showed arecovery trend in global IT-related demand and automobile production, in addition to an increase in inbound demand
driven by the weak yen. However, the recovery of the domestic economy was limited due to such as high prices of raw
materials and commodities. Under these circumstances, in the Chemicals Segment, sales of Basic Chemicals decreased.
In the Performance Materials Segment, sales of Display Materials decreased, but sales of Semiconductor Materials
increased. In the Agricultural Chemicals Segment, sales increased. In the Healthcare Segment, sales decreased.
As a result, sales were above in the same period of the previous fiscal year, but each income were below the same
period of the previous fiscal year. Both sales and each income exceeded the outlooks announced in May.

1Q FY2023(Million yen, amount rounded down to the nearest million yen)
1Q FY2024
Year-on-year
Change from
(Outlook)
1Q FY2024
ChangeOutlook(Note)

Sales

54,93958,688+3,74856,200+2,488Operating income

14,99814,426(571)

11,900+2,526

Ordinary income

17,046

16,029(1,017)

12,200+3,829Net income attributableto owners of parent

12,236

11,590

(645)

9,300

+2,290(Note) The outlook is described on page 10 of the FY2023 Presentation Materials Part2 (announced on May 13, 2024).
Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, sales of high purity sulfuric acid (agent used for cleaning semiconductor) increased, but sales ofurea and AdBlue®* (high-grade urea solution) decreased. In Fine Chemicals, sales of environmental related products(sterilizing and disinfecting agents for pools and septic tanks, etc.) decreased due to the impact of falling market demand,
while sales of "TEPIC" (powder coating agent for paint, sealants, etc.) increased.
As a result, sales of this segment were 8,892 million yen (a decrease of 202 million yen from the same period of theprevious fiscal year) and operating income was 665 million yen (a decrease of 258 million yen). Compared to the outlook(Note), sales were below 0.2 billion yen and operating income was above 0.8 billion yen.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 19 of the FY2023 Presentation Materials Part2 (announced on May 13, 2024).
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) decreased. In Semiconductor Materials, sales ofantireflective coating for semiconductors (ARC®*) and multi-layer process materials (OptiStack®*) increased due torecovery in customer utilization. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hardcoating and Organo / Monomer sol (various kinds of coating materials, resin additive) increased.
As a result, sales of this segment were 23,480 million yen (an increase of 2,676 million yen) and operating income was
7,029 million yen (an increase of 577 million yen). Compared to the outlook (Note), sales were above 1.4 billion yen andoperating income was above 1.5 billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.
(Note) The outlook is described on page 19 of the FY2023 Presentation Materials Part2 (announced on May 13, 2024).

The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased. In Japanese domestic market, sales of"ALTAIR" (paddy rice herbicide) and "GRACIA"(insecticide) increased. In the overseas market, sales of "LEIMAY"(fungicide) and "GRACIA" increased, although sales of "TARGA"(herbicide) decreased.
As a result, sales of this segment were 20,356 million yen (an increase of 1,561 million yen) and operating income was6,909 million yen (an increase of 338 million yen). Compared to the outlook (Note), sales were above 0.5 billion yen andoperating income was below 0.1 billion yen.
(Note) The outlook is described on page 19 of the FY2023 Presentation Materials Part2 (announced on May 13, 2024).
The Healthcare Segment
Sales of "LIVALO" (anti-cholesterol drug) decreased both in Japan and overseas. Sales of "Custom Chemicals"(solution
proposal business and joint development business) decreased due to a shift in the timing of shipments and other factors.
As a result, sales of this segment were 1,466 million yen (a decrease of 484 million yen) and operating income was
609 million yen (a decrease of 479 million yen). Compared to the outlook (Note), sales were below 0.3 billion yen andoperating income was in line with the target.
(Note) The outlook is described on page 19 of the FY2023 Presentation Materials Part2 (announced on May 13, 2024).
Trading
Sales of this segment were 27,505 million yen (an increase of 3,159 million yen) and operating income was 994 million
yen (an increase of 88 million yen). Compared to the outlook (Note), sales were above 3.4 billion yen and operating
income was above 0.3 billion yen.
(Note) The outlook is described on page 64 and 65 of the FY2023 Presentation Materials Part2 (announced on May 13,2024).
OthersSales of this segment were 6,340 million yen (a decrease of 57 million yen) and operating income was 111 million yen (adecrease of 93 million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of June 30, 2024 was 335,800 million yen (an increase of 12,342 million yen from March 31, 2024). It ismainly due to increase of cash and deposits and inventory.
Also, total liabilities as of June 30, 2024 was 108,712 million yen (an increase of 16,207 million yen). It is mainly due tothe increase of short-term loans payable and bonds payable.
Net assets as of June 30, 2024 was 227,088 million yen (a decrease of 3,864 million yen).
As a result of these factors, equity ratio was 66.5% (a decrease of 3.8% from March 31, 2024).
(Position of Cash Flows)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain andloss on working capital, net cash provided by operating activities for the three months ended June 30, 2024 was
15,347 million yen (12,293 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 three months ended June 30,2024 was 2,770 million yen (5,078 million yen for the same period of the previous year).
Due to payment for dividends, while there were proceeds from the issuance of bonds, net cash used in financing
activities for the three months ended June 30, 2024 was 1,669 million yen (10,568 million yen for the same period of theprevious year).
Cash and cash equivalents at the end of this period increased 11,019 million yen from March 31, 2024 after adjusting forthe 111 million yen effect of exchange rate. Moreover, after adding the 17 million yen increase in cash and cash
equivalents resulting from change in scope of consolidation, the balance stood at 33,774 million yen (26,449 million yen
for the same period of the previous year).

(3) Outlook of Consolidated Financial Results and Other Forward-looking Information
There is no change in the outlook of consolidated business results for the first half and full year ending March 31, 2025
from the statement announced on May 13, 2024.

(4) Basic Policy on Distribution of Earnings
The Company’s basic policy of profit allocation is returning to shareholders by improving company value throughincreasing revenue in the medium 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.

2. Consolidated Financial Statements(1) Consolidated Balance Sheets
As ofMarch 31, 2024

(Million yen)
As ofJune 30, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable - other

22,73888,80056,804
5
21,3702,956

33,77485,792
59,744
139
23,425
1,689

Short-term loans receivable
Other
Allowance for doubtful accounts

2,152
7,189
(48)

1,368
6,361
(53)

201,968

212,242

85,860(50,898)
34,962
170,309(145,729)
24,57944,084(39,457)

88,142(52,196)
35,945174,093(149,398)
24,69444,268(39,914)

4,626
9,064

4,353
9,072

160
(24)

158
(22)

135
4,004
77,372135
4,610
78,812

2,444
8,302
10,7472,776
8,047
10,823

Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts

26,119
50
519
3,737
3,054
(111)

26,485
53
579
3,751
3,162
(110)

Total investments and other assets
Total non-current assets
Total assets

33,370
121,489
323,458

33,921
123,557
335,800

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
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
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets

As ofMarch 31, 2024

(Million yen)
As ofJune 30, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable

20,42739,062634

19,78145,433634

Income taxes payable
Provision for bonuses
Provision for loss on business of subsidiaries and affiliates

4,940
2,548
310

3,719
775
227

2
18,63886,563－
21,39991,971－
1,284

10,000
1,284

1,381
143

2,143
159

272

254

467
2,392

507
2,391

5,941
92,505

16,740108,712

18,942
13,613
182,376(943)
213,989

18,942
13,613
180,947(4,982)
208,520

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

8,238
4,226
1,066

8,464
5,406
1,031

Total accumulated other comprehensive income
Non-controlling interests
Total net assets

13,531
3,432
230,952

14,902
3,665
227,088323,458

335,800

Provision for business structure improvement
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for loss on business of subsidiaries and affiliates
Provision for share-based remuneration for directors(and other officers)
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity

Total liabilities and net assets

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses

Three Months Ended
June 30, 2023
54,93926,63428,305
13,30614,998(Million yen)Three Months Ended
June 30, 2024
58,68829,74028,947
14,521
14,426

38
254

62
229

536
1,476
195

134
1,271
298

2,500

1,996

124

182

Loss on disposal of non-current assets
Bond issuance costs
Plant stop losses
Other
Total non-operating expenses
Ordinary income

275
－
10
39

122
51
5
32

451
17,046394
16,029Extraordinary income
Extraordinary losses
Income before income taxes and non-controlling interests－－
17,046－－
16,029

Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

3,647
946
4,594
12,452
216
12,236

3,701
648
4,349
11,67989
11,590- Consolidated Statements of Comprehensive Income

Net income
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 interests

Three Months Ended
June 30, 2023
12,452(Million yen)Three Months Ended
June 30, 2024
11,679

425
1,856
(5)

226
1,324
(35)

0

(0)

2,276

1,514

14,72913,194

14,324

12,961

405

233

(3) Consolidated Statements of Cash Flows
Three Months Ended
June 30, 2023

(Million yen)Three Months Ended
June 30, 2024

17,046

16,029Depreciation
Amortization of goodwill
Interest and dividend income
Interest expenses
Loss (gain) on disposal of non-current assets
Decrease (increase) in notes and accounts receivable - trade

2,765
25
(292)
122
275
5,789

3,589
9
(292)
182
122
3,456

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other(6,106)(3,239)2,729(4,384)(1,593)
2,765

19,117660(121)(7,362)

19,884348(176)(4,709)12,293

15,347Purchase of investment securities
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Net decrease (increase) in short-term loans receivable
Purchase of long-term prepaid expenses
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other

(10)
(6,407)
(253)
(236)
1,802
(32)

(53)
(2,648)
(111)
(593)
854
(75)

93

－

(33)

(142)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from issuance of bonds
Cash dividends paid
Share repurchase
Payments made to trust account for acquisition of treasury shares
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(5,078)(2,770)

7,632－(13,199)(5,001)－－(10,568)
154

6,376
10,000(13,043)(4,061)(938)(2)(1,669)111(3,198)29,647

11,01922,738－17

26,44933,774

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

SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Net increase (decrease) in cash and cash equivalents
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

(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 4,600 shares to the eligible party on April 25, 2024 based on the trust
agreement of the Board 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.
In addition, the Company repurchased 870,000 treasury shares based on the resolution of Board of Directors' meeting
held on May 13, 2024 and May 28, 2024. As a result, treasury shares increased by 4,061 million yen during the firstquarter of current consolidated fiscal year.

(Changes in Accounting Policies)(Application of the Accounting Standard for Current Income Taxes)
The Accounting Standard for Current Income Taxes (ASBJ Statement No.27, October 28, 2022; hereinafter referred toas the “Revised Accounting Standard 2022”), etc. have been adopted from the beginning of the first quarter ended
June 30, 2024. The amendment to categories in which current income taxes should be recorded (taxes on othercomprehensive income) follows the transitional treatment prescribed in the proviso of paragraph 20-3 of the Revised
Accounting Standard 2022 and the transitional treatment prescribed in the proviso (2) of paragraph 65-2 of the
Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No.28, October 28, 2022; hereinafter referred toas the “Revised Implementation Guidance 2022”). This change in accounting policies has no impact on the quarterly
consolidated financial statements.
For the amendment related to the revised accounting treatment for consolidated financial statements when gains orlosses on sale of shares in subsidiaries resulting from transactions between consolidated companies were deferred fortax purposes, the Revised Implementation Guidance 2022 has been adopted from the beginning of the first quarter
ended June 30, 2024. This change in accounting policies was applied retrospectively. Hence, the quarterly
consolidated financial statements for the same period of the previous fiscal year and the consolidated financial
statements for the previous fiscal year have been modified retrospectively. As a result, deferred tax liabilities decreasedby 49 million yen and retained earnings increased by 49 million yen in the consolidated balance sheets for the fiscal
year ended March 31, 2024.

(Segment Information)
1. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Three Months Ended June 30, 2023 (From April 01, 2023 to June 30, 2023)
Performance Agricultural
Chemicals
Healthcare
Materials
Chemicals

Trading

Others(Million yen)
Total

Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside customers(Note 1)

6,057

16,836

15,741

1,951

18,3002,422

61,310(6,370)54,939Intersegment Sales

3,036

3,966

3,054

－

6,044

3,974

20,076(20,076)－

Total Sales

9,094

20,803

18,795

1,951

24,345

6,397

81,387(26,447)

54,939

924

6,451

6,571

1,089

906

204

16,146(1,148)14,998Segment 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. Adjustments are as follows.
(1) (6,370) million yen adjustment in sales to outside customers includes (6,373) million yen in the elimination of agent transactions, and2 million yen sales not attributable to any reporting segment.
(2) (1,148) million yen adjustment in segment income includes 223 million yen in intersegment eliminations, 2 million yen sales not attributable
to any reporting segment, and (1,375) million yen corporate expenses not attributable to any reportable segment. The corporate expenses aremainly group administrative expenses which do not belong to any segment.

2) For the Three Months Ended June 30, 2024 (From April 01, 2024 to June 30, 2024)
Performance Agricultural
Chemicals
Materials
Chemicals Healthcare(Million yen)
Total

Adjustment Consolidated(Note 2)
Total

Trading

Others

20,4352,636

64,822(6,133)

Net Sales
Sales to outside customers(Note 1)

5,901

Intersegment Sales

2,990

5,989

3,411

55

7,069

3,703

23,218(23,218)－

Total Sales

8,892

23,48020,356

1,466

27,505

6,340

88,040(29,352)

58,688

665

7,029

6,909

609

994

111

16,320(1,893)

14,426

Segment Income or Loss
(Operating Income or Loss)

17,491

16,945

1,411

58,688Notes:
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. Adjustments are as follows.
(1) (6,133) million yen adjustment in sales to outside customers includes (6,140) million yen in the elimination of agent transactions, and7 million yen sales not attributable to any reporting segment.
(2) (1,893) million yen adjustment in segment income includes (556) million yen in intersegment eliminations, 8 million yen sales not
attributable to any reporting segment, and (1,346) 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.