Consolidated Financial Results for the Six Months Ended September 30, 2022
(JPGAAP)
November 11, 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
Tel. +81 3 4463 8401
Scheduled submission date of quarterly report: November 14, 2022
Scheduled dividend payment date: December 5, 2022
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 Six Months Ended September 30, 2022 (From April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)

OperatingincomeNet sales

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

Ordinary
incomeMillion yen%

Million yen%

Million yen%

Million yen%

109,53119.3

28,15932.1

31,986

43.7

23,68445.4

91,807(2.8)

21,32418.6

22,26322.5

16,291

17.2

Six months ended September 30, 2022

: 25,721 million yen ,86.8%

Six months ended September 30, 2021

: 13,772 million yen ,(16.2%)

Basic earnings
per share

Diluted net income
per share

Yen

Six months ended September 30, 2022

167.74Six months ended September 30, 2021

113.94Yen(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of September 30, 2022

280,233

219,393

77.2

As of March 31, 2022

279,687

208,009

73.6(Reference) Shareholders' equity:

As of September 30, 2022

: 216,246 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-end

Yen

Year ending March 31, 2023
(Outlook)

Annual

Yen

Yen

72.00

122.0094.00

164.00(Note) Revision of the latest released dividend outlook: Yes
Please refer to " Revision of Financial Results Outlook, Interim Dividend Payment, and Revision of Dividend Outlook" for details.

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

234,200

12.6

55,5008.9

58,3008.6

42,1008.6

298.59(Note) Revision of the latest released outlook of financial results: Yes

Please refer to " Revision of Financial Results Outlook, Interim Dividend Payment, and Revision of 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 September 30, 2022

: 141,300,000 shares

As of March 31, 2022

: 143,000,000 shares

2. Number of treasury shares
As of September 30, 2022

: 355,600 shares

As of March 31, 2022

: 1,383,611 shares

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

: 141,194,352 shares

As of September 30, 2021

: 142,982,238 shares

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 156,858 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

1

1 Qualitative Information on Quarterly Results(1) Business Performance
During the second quarter of the current fiscal year (April 1, 2022 to September 30, 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 material
prices and inflation. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals and Fine Chemicals increased,
despite the impact of problems with 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 ofrmaceutical companies) decreased.
As a result, sales and each income exceeded the same period of the previous fiscal year and the outlooks announced in August. In addition,
operating income, ordinary income, and net income attributable to owners of the parent reached record highs for the second consecutive
year.
(Million yen, amount rounded down to the nearest million yen)
2Q FY2021

2Q FY2022

Change2Q FY2022(Outlook)

Change from
Outlook

Sales

91,807

109,531+17,723

105,400+4,131

Operating income

21,32428,159+6,83527,600+559

Ordinary income

22,26331,986+9,72329,500+2,486

Net income attributableto owners of parent

16,291

23,684+7,392

21,200+2,484

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.

The Chemicals Segment
In Basic chemicals, sales of melamine (adhesives agent for particle board), urea, AdBlue®* (high-grade urea solution) increased
due to price revisions in response to higher raw material and fuel prices and freight rates. In Fine Chemicals, sales of "TEPIC"(powder coating agent for paint, sealants, etc.) and environmental chemicals (sterilizing and disinfecting agents for pools and septic
tanks, etc.) also increase. However, the segment as a whole reported higher sales and lower profits.
As a result, sales of this segment were 19,753 million yen (an increase of 2,668 million) and operating income was 1,061 million
yen (a decrease of 106 million yen). Compared to the outlook (Note), sales were above 0.3 billion yen and operating income was
below 0.4 billion yen.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) declined. In Semiconductor Materials, sales of anti-reflective coating forsemiconductors (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 (solvents to improve the efficiency of shale oil and gas extraction) were steady.
As a result, sales of this segment were 42,001 million yen (an increase of 2,446 million) and operating income was 13,867 million yen (anincrease of 737 million yen). Compared to the outlook (Note), sales were below 0.4 billion yen and operating income was below 0.3 billion
yen.
* ARC®, OptiStack® are registered trademarks of Brewer Science, Inc.
(Note) The outlook is described on page 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).

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 domestic ma-selective foliar application herbicide), "GRACIA"
In the overseas market, sales increased significantly due to strong sales of"LEIMAY" (fungicide), "PERMIT" (herbicide), and "GRACIA", as well as the shift in the timing of some shipments.
As a result, sales of this segment were 35,688 million yen (an increase of 10,738 million yen) and operating income was 12,066 million yen(an increase of 5,178 million yen). Compared to the outlook (Note), sales were above 2.5 billion yen and operating income was above 1.5
billion yen.
(Note) The outlook is described on page 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
The Healthcare Segment
Shipments of "LIVALO" (anti-cholesterol drug) to overseas were firm. In "Custom Chemicals", sales decreased due to theconcentration of shipments in the second half of the year.
As a result, sales of this segment were 3,248 million yen (a decrease of 91 million) and operating income was 1,457 million yen (anincrease of 69 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 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
Trading
Sales of this segment were 47,650 million yen (an increase of 11,208 million yen) and operating income was 1,951 million yen (anincrease of 695 million yen). Compared to the outlook (Note), sales were above 4.0 billion yen and operating income was above 0.3
billion yen.
(Note) The outlook is described on page 66 and 67 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
OthersSales of this segment were 12,445 million yen (an increase of 2,072 million yen) and operating income was 100 million yen (an increase of
104 million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of September 30, 2022 was 280,233 million yen (an increase of 545 million yen from March 31, 2022). It is mainly due tothe increase of cash and deposits and construction in progress.
Also, total liabilities as of September 30, 2022 was 60,839 million yen (a decrease of 10,838 million yen). It is mainly due to the decreaseof short-term loans payable.
Net assets as of September 30, 2022 was 219,393 million yen (an increase of 11,384 million yen).
As a result of these factors, equity ratio was 77.2% (an increase of 3.6% 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 six months ended September 30, 2022 was 43,381 million yen (33,765 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 six months ended September 30, 2022 was
9,633 million yen (6,091 million yen).
Due to the decrease in loans payable, payment for dividends and share repurchase, net cash used in financing activities for the six months
ended September 30, 2022 was 29,218 million yen (31,560 million yen).
Cash and cash equivalents at the end of this period increased 6,134 million yen from March 31, 2022 after adjusting for the 1,605 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 43,909 million yen (28,371 million yen).

3

(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 second quarter and demand
forecast. The exchange rate for the third quarter and beyond is assumed to be 135 yen to the U.S. dollar.
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

223.3

234.2

+10.9

+4.9%

208.0

Operating income

55.1

55.5

+0.4

+0.7%

51.0

Ordinary income

57.3

58.3

+1.0

+1.7%

53.7

Net income attributable toowners of parent

41.7

42.1

+0.4

+1.0%

38.8

Basic earnings per share

295.83 yen

298.59 yen+2.76 yen

+0.9%

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

38.8

42.4

2.3

2.5

Performance Materials

88.9

89.2

30.2

30.3

Agricultural Chemicals

75.4

79.2

20.6

21.9

Healthcare

6.0

6.6

2.3

2.8

Trading

87.7

95.7

2.7

2.8

Others

26.9

28.0

0.7

1.0

Adjustment(100.4)(106.9)

(3.7)

(5.8)

Total

223.3

234.2

55.1

55.5

(4) Basic Policy on Distribution of Earnings
shareholders by improving company value through increasing 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 of
September 30, 2022

Current assets
Cash and deposits

34,65843,909Notes and accounts receivable - trade, and contract assets

79,97960,833Merchandise and finished goods

37,664

43,38915

205

Raw materials and supplies

14,496

15,211

Accounts receivable - other

2,824

1,834

Short-term loans receivable

1,541

1,404

Other

4,140

5,056

(41)

(26)

175,279

171,817

69,44370,177(45,158)(45,861)

24,28424,316Work in process

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

145,129

147,649

Accumulated depreciation and impairment loss

Machinery, equipment and vehicles(132,567)(135,000)

Machinery, equipment and vehicles, net

12,561

12,648Tools, furniture and fixtures

41,34541,709

Accumulated depreciation and impairment loss

(37,384)(37,985)

3,960

3,724

8,809

8,826

Leased assets-

26

Accumulated depreciation-(8)

Leased assets, net-

18

Tools, furniture and fixtures, net
LandConstruction in progress

3,561

11,179Total property, plant and equipment

53,17760,713

Software

1,736

1,717

Other

10,044

10,124

Total intangible assets

11,78011,842

Investment securities

30,21729,894Long-term loans receivable

3,323

0

918

467

Intangible assets

Investments and other assets

Deferred tax assets
Net defined benefit asset

1,844

2,497

Other

3,256

3,110

Allowance for doubtful accounts

(110)

(110)

Total investments and other assets

39,45035,859104,408

108,416

279,687

280,233

Total non-current assets
Total assets

5

(Million yen)

As ofMarch 31, 2022

As of
September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

19,04319,019

Short-term loans payable

20,981

8,235

Current portion of long-term loans payable

552

510

Income taxes payable

8,710

7,974

Provision for bonuses

2,285

2,345

Other

14,39817,442

Total current liabilities

65,971

55,527

1,182

948

69

104

Provision for business structure improvement

698

544

Provision for loss on business of subsidiaries and affiliates

626

626

Provision for share-based remuneration for directors(and other officers)

200

170

Net defined benefit liability

290

350

2,638

2,567

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

Other
Total non-current liabilities

5,706

5,312

71,67860,839

Capital stock

18,942

18,942

Capital surplus

13,613

13,613Retained earnings

172,393

174,873

Treasury shares(8,261)(2,109)Total shareholders' equity

196,688

205,320

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
8,304

8,670

Foreign currency translation adjustment

Valuation difference on available-for-sale securities

898

1,875

Remeasurements of defined benefit plans

21

379

9,223

10,926

2,097

3,147

208,009219,393279,687

280,233

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)

Six Months Ended
September 30, 2021

Six Months Ended
September 30, 2022

Net sales

91,807

109,531

Cost of sales

46,27554,896Gross profit

45,532

54,634

Selling, general and administrative expenses

24,20826,475

Operating income

21,32428,159Interest income

15

105

Dividend income

301

341

Equity in earnings of affiliates

456

622

Plant stop losses

98

3,020

Other

484

338

1,356

4,427

Interest expenses

47

93

Loss on disposal of non-current assets

282

320

Foreign exchange losses

40

79

Other

47

106

Total non- operating expenses

417

600

22,26331,986

Gain on sales of investment securities

2,816

-

Total extraordinary income

2,816

-

Non-operating income

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
2,165

-

626

-

Total extraordinary losses

2,792

-

Income before income taxes and non-controlling interests

22,28731,986

Income taxes - current

6,105

7,757

Income taxes - deferred

(247)

178

Total income taxes

5,858

7,935

Net income

16,42824,051

137

367

16,291

23,684

Business structure improvement expenses
Loss on business of subsidiaries and affiliates

Net income attributable to non-controlling interests
Net income attributable to owners of parent

7

- Consolidated Statements of Comprehensive Income(Million yen)

Six Months Ended
September 30, 2021

Six Months Ended
September 30, 2022

16,42824,051(2,249)365

Foreign currency translation adjustment

(377)

944

Remeasurements of defined benefit plans, net of tax

(29)

358

0

0

Net income
Other comprehensive income
Valuation difference on available-for-sale securities

Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(2,656)

1,669

13,772

25,721

13,67525,21396

507(Comprehensive income attributable to)
Owners of parent
Non-controlling interests8(3) Consolidated Statements of Cash Flows(Million yen)

Six Months Ended
September 30, 2021

Six Months Ended
September 30, 2022

Income before income taxes and non-controlling interests

22,28731,986

Depreciation

4,622

5,071

Business structure improvement expenses

Cash flows from operating activities

2,165

-

Loss on business of subsidiaries and affiliates

626-

Amortization of goodwill

51

50

(317)

(446)

(2,816)0Interest expenses

47

93

Loss (gain) on disposal of non-current assets

282

320

Decrease (increase) in notes and accounts receivable - trade

18,052

19,345Decrease (increase) in inventories(5,603)(6,530)

(256)

(613)

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

Increase (decrease) in notes and accounts payable - trade
Other

1,124

1,646

Subtotal

40,26750,925942

1,023

Interest expenses paid

(47)

(93)

Income taxes paid

(7,396)(8,473)

Net cash provided by (used in) operating activities

33,76543,381

Purchase of investment securities

(118)

(483)

Proceeds from sales of investment securities

3,486

0

(19)

(25)

(5,252)(8,403)

Interest and dividend income received

Cash flows from investing activities

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

(236)

(304)

Purchase of intangible assets

(779)

(593)

(3,322)

-

62

230

Purchase of long-term prepaid expenses

(55)

(49)

Other

145

(3)

(6,091)(9,633)(15,893)(13,623)

(276)

(276)

(8,341)(10,208)

(48)

(105)

(7,001)(5,001)0(4)(31,560)(29,218)

(121)

1,605

Net increase (decrease) in cash and cash equivalents(4,008)

6,134

Cash and cash equivalents at beginning of period

32,38034,658-3,116

28,371

43,909Payments of long-term loans receivable
Net decrease (increase) in short-term loans receivable

Net cash provided by (used in) investing activities
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

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period9(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 thesecond quarter of current consolidated fiscal year. Also, the Company canceled 1,000,000 treasury shares on May 10, 2022 basedon the resolution of Board of Directors' meeting held on April 26, 2022. Furthermore, the Company canceled 700,000 treasury
shares on 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 second 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 second quarter of current consolidated fiscal
year.
(Changes in Accounting Policies)(Application of "Implementation Guidance on Accounting Standard for Fair Value Measurement")
The company adopted(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
into the future.
new accounting policies set forth byThis 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 12, 2021). 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 Six Months Ended September 30, 2021 (From April 1, 2021 to September 30, 2021)
Chemicals

Performance Agricultural
Materials
Chemicals(Million yen)

Healthcare

Trading

Others

Total

Adjustment(2)(3)

Consolidated
Total

Net Sales
Sales to outside customers(1)

11,701

33,95722,8003,320

25,626

4,406

101,843(10,035)

91,807

Intersegment Sales

5,384

5,597

2,150

19

10,784

5,966

29,902(29,902)-

Total Sales

17,08539,555

24,9503,340

36,441

10,373

131,746(39,938)

91,807

1,167

13,129

6,887

1,388

1,255

(3)

23,825(2,501)

21,324

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 Adjustments section.
(2) The (10,035) million yen adjustment in sales to outside customers includes (10,041) million yen in the elimination of agent transactions, and6 million yen sales not attributable to any reporting segment.
(3) The (2,501) million yen adjustment in segment income includes 7 million yen in intersegment eliminations, 6 million yen sales not attributable
to any reporting segment, and (2,514) 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 Six Months Ended September 30, 2022 (From April 1, 2022 to September 30, 2022)
Chemicals

Performance Agricultural
Materials
Chemicals(Million yen)

Healthcare

Trading

Others

Total

Adjustment(2)(3)

Consolidated
Total

Net Sales
Sales to outside customers(1)

13,731

33,96031,183

3,248

36,522

5,251

123,896(14,365)

109,531

Intersegment Sales

6,022

8,041

4,505

-

11,1287,194

36,892(36,892)-

Total Sales

19,75342,00135,6883,248

47,65012,445

160,788(51,257)

109,531

1,061

13,867

12,066

1,457

1,951

100

30,504(2,345)28,159Segment 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 Adjustments section.
(2) The (14,365) million yen adjustment in sales to outside customers includes (14,378) million yen in the elimination of agent transactions, and13 million yen sales not attributable to any reporting segment.
(3) The (2,345) million yen adjustment in segment income includes 287 million yen in intersegment eliminations, 14 million yen sales not
attributable to any reporting segment, and (2,647) 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 thesecond quarter of the previous fiscal year is presented based on the changed reporting segments.

11