Consolidated Financial Results for the Six Months Ended September 30, 2015
(JPGAAP)
November 5, 2015
Stock Exchange: Tokyo
Name of listed company: NISSAN CHEMICAL INDUSTRIES, LTD.
URL: http://www.nissanchem.co.jp/
Code Number: 4021
Representative: Kojiro Kinoshita, President
Inquiry to: Hironori Yoshida, Executive Officer and Director of Finance and Accounting Department Tel. +81 3 3296 8356
Scheduled submission date of quarterly report: November 13, 2015
Scheduled dividend payment date: November 30, 2015
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, 2015 (From April 1, 2015 to September 30, 2015)(Millions of Yen)(% indicates the rate of increase/decrease year on year)(1) Consolidated Operating Results
Operating
IncomeNet Sales

Ordinary
IncomeProfit Attributable to
Owners of Parent

Six Months Ended September 30, 2015

83,670+4.7%

14,265+14.1%

15,131+18.9%

11,147+26.0%Six Months Ended September 30, 2014

79,920+4.6%

12,506+18.2%

12,728+14.5%

8,850+11.2%(Note) Comprehensive Income:Six Months Ended September 30, 2015: 9,554 million yen (-6.2%)
Six Months Ended September 30, 2014: 10,187 million yen (+1.9%)

Net Income
per Share (Yen)

Diluted Profit
Attributable to
Owners of Parent
per Share (Yen)Six Months Ended September 30, 2015

71.21

－

Six Months Ended September 30, 2014

55.15

－

(2) Consolidated Financial Position(Millions of Yen)

Total Assets

Net Assets

Equity Ratio

As of September 30, 2015

205,530

150,770

72.7%

As of March 31, 2015

223,854

151,263

66.9%(Reference) Shareholders' equity: As of September 30, 2015: 149,330 million yen As of March 31, 2015: 149,782 million yen

2. Cash Dividends
Cash Dividends per Share
First
Quarter

SecondQuarter

Third
QuarterYear Ended March 31, 2015－

14.00 yen－

22.00 yen 36.00 yen

Year Ending March 31, 2016－

18.00 yen－

24.00 yen 42.00 yen

Year Ending March 31, 2016
(Forecast)Year-end

Annual(Note) Revision of the latest released dividend forecast: Yes
For details, please refer to "Announcement about revision of Forecast of Financial Results and Dividend forecast"

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2016 (From April 1, 2015 to March 31, 2016)(Millions of Yen)(% indicates the rate of increase/decrease against the same period of the previous year)
Net SalesYear Ending March 31, 2016

181,500+6.0%(Note) Revision of the latest released forecast of financial results: Yes

Operating
Income28,000+10.5%

Ordinary
Income29,200+10.6%

Profit Attributable to
Owners of Parent

Net Income
per share

21,700139.53 Yen+19.2%

4. Notes(1) Changes in significant consolidated subsidiaries(changes in specified subsidiaries involving changes in scope of consolidation)(2) Adoption of special accounting methods of preparation of quarterly financial statements: None: 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 "Items concerning Summary Information" on page 5 for details.
(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
as of September 30, 2015; 156,000,000 shares
as of March 31, 2015; 158,000,000 shares
2. Number of shares of treasury stock
as of Sptember 30, 2015; 482,749 shares
as of March 31, 2015; 286,679 shares
3. Average number of shares outstanding (cumulative first year)
as of September 30, 2015; 156,554,994 shares
as of September 30, 2014; 160,477,714 shares* Implementation status about the review
This financial release is not subject to audit procedures based on Financial Instruments and Exchange Law in Japan.
Audit procedures of financial statements based on Financial Instruments and Exchange have not been completed at the time of disclosure.
* Statement regarding appropriate use of forecasts and other notes
The forecast contained in this report is based on information available at the time of disclosure.
Actual operating results may differ materially from the forecast due to various factors.
For supplemental information, please refer to our website.

Table of Contents for Attached Materials
1. Qualitative Information on Quarterly Results(1) Business Performance........................................................................................................ 2.............................................................................................................................. 2(2) Financial Position ..................................................................................................................................... 3(3) Forecast of Consolidated Business Results and Other Forward-looking Information
2. Items concerning Summary Information (Notes).................................................. 4................................................................................................... 5(1) Changes of Accounting Policies and Accounting Estimates, Restatement ............................................................... 5
3. Consolidated Financial Statements................................................................................................................... 6(1) Consolidated Balance Sheets ...................................................................................................................... 6(2) Consolidated Statements of Income and Statements of Comprehensive Income(3) Consolidated Statements of Cash Flows...................................................... 8.......................................................................................................10(4) Notes to Consolidated Financial Statements..................................................................................................11(Notes on Assumption of Going Concern).................................................................................................11(Notes on Significant Changes in Shareholders' Equity) ................................................................................11(Segment Information).........................................................................................................................11-1-

1. Qualitative Information on Quarterly Results(1) Business Performance
During the year ended September 30, 2015 (from April 1, 2015 to September 30, 2015), the domestic
economy has been slowly recovering due to the improvement of corporate performance on the background of
weaker yen and lower price of crude oil even though there was an influence of volatile stock market triggered byslowdown concern about Chinese economy.
With regard to our group business, the profitability of Chemicals Segment was improved by lower price of raw
fuels and also, export sales of environmental chemicals were higher than previous year. As for Performance
Materials Segment, fixed cost increased due to the investments in semiconductor materials development
facilities, while display materials could keep the steady performance.
As for Agricultural Chemicals Segment, sales of agrochemicals and veterinary medical product grew inoverseas. As for Pharmaceutical Segment, domestic “LIVALO” (anti-cholesterol drug) continued to face a difficult
situation.
As a result, the sales for this term were 83,670 million yen (an increase of 3,750 million yen from the same
term of the previous year). Operating income was 14,265 million yen (an increase of 1,759 million yen). Ordinary
income was 15,131 million yen (an increase of 2,402 million yen). Profit attributable to owners of parent was
11,147 million yen (an increase of 2,296 million yen).
Explanations by segments are as below.
Chemicals
As for Basic Chemicals, the sales volume of melamine (adhesive agent for particle board) increased inoverseas. As for Fine Chemicals, the sales of “HI-LITE” (chlorinated isocyanuric acid for sterilizing) exceeded
previous year in overseas.
As a result, the sales of this segment were 16,742 million yen (an increase of 46 million yen from the same
term of the previous year). Operating income was 1,405 million yen (an increase of 988 million yen).
Performance Materials“SUNEVER” (LCD alignment coating) for TV and smartphone had healthy sales. Multi-layer materials forsemiconductors (ARC® coating) were adversely affected by the lower capacity utilization ratio of somecustomers. The sales of “SNOWTEX” (silica sol for polishing electronic materials and non-polishing materials) for
non-polishing materials and organo silica sol (various kinds of coating materials) exceeded previous year.
As a result, the sales of this segment were 26,040 million yen (an increase of 1,800 million yen from the same
term of the previous year). Operating income was 6,338 million yen (a decrease of 338 million yen).
*ARC® is registered trade mark of Brewer Science, Inc. Bottom anti-reflective coating and multi-layer materials beneath a
photoresist are included in the registered trade mark.

Agricultural Chemicals
With regard to domestic sales, the sales volume of “ALTAIR” (paddy rice herbicide) increased. With regard tooverseas sales, “PERMIT” (herbicide for corn and rice, etc.), “TARGA” (herbicide for soybean, etc.) and
Fluralaner (the active substance of veterinary medical product) had healthy sales.
As a result, the sales of this segment were 21,140 million yen (an increase of 2,608 million yen from the same
term of the previous year). Operating income was 6,221 million yen (an increase of 2,266 million yen).
Pharmaceuticals
Export “LIVALO” had healthy sales. Domestic “LIVALO” continued to face a tough situation. As somedeliveries were behind the original schedule, the sales of “Custom Chemicals” (custom manufacturing andprocess researching services for pharmaceutical companies) decreased. We expected to have up-front revenue
on a new pipeline product. However, the revenue didn’t realized by September 30, 2015 due to the delay of thecontract conclusion.
As a result, the sales of this segment were 3,742 million yen (a decrease of 1,256 million yen from the same
term of the previous year). Operating income was 617 million yen (a decrease of 981 million yen).

-2-

Trading
The sales of agricultural chemicals products increased. On the other hand, administrative costs increased
accordingly.
As a result, the sales of this segment were 27,521 million yen (an increase of 223 million yen from the same
term of the previous year). Operating income was 856 million yen (a decrease of 48 million yen).
Others
The sales of this segment were 8,888 million yen (an increase of 427 million yen from the same term of theprevious year). Operating loss was 28 million yen (operation loss of the same term of the previous year was 27
million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of September 30, 2015 were 205,530 million yen (a decrease of 18,323 million yen from March
31, 2015). It is mainly due to the decrease of notes and accountants receivable.
Also, total liabilities as of September 30, 2015 were 54,760 million yen (a decrease of 17,830 million yen fromMarch 31, 2015). It is mainly due to the decrease of liabilities with interest.
Net Assets as of September 30, 2015 were 150,770 million yen (a decrease of 493 million yen from March 31,2015). As a result, equity ratio was 72.7% (an increase of 5.8% from March 31, 2015).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and minority interests, depreciation and gain
and loss on working capital, net cash provided by operating activities for the six months ended September 30,
2015 were 27,642 million yen (22,902 million yen for the same term 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, 2015 were 4,654 million yen (2,770 million yen for the same term of the previous year).
Due to the decrease in repayments of long-term loans payable and purchase of treasury shares, net cashused in financing activities for the six months ended September 30, 2015 were 27,287 million yen (23,332 million
yen for the same term of the previous year).
As a result, cash and cash equivalents at the end of this term were 26,931 million yen, reflecting 172 million
yen effect of exchange rate changes and 61 million yen increase from newly consolidated subsidiaries. It
decreased by 4,411 million yen from March 31, 2015 (27,648 million yen for the same term of the previous year).

-3-(3) Forecast of Consolidated Business Results and Other Forward-looking information
Nissan Chemical Industries Ltd. (“the Company”) announces the revision of its forecast for the fiscal year ending
March 31, 2016 (from April 1, 2015 to March 31, 2016), due to the recent financial results. The above forecast is
calculated on the assumption that naphtha price will be 51,000 yen per kiloliter and that the exchange rate will be
120 yen per dollar.
(Millions of Yen)
Net Sales

Operating

Ordinary

Profit Attributable to

Net Income

IncomeIncomeOwners of Parent

per Share (Yen)Previous Forecast (A)181,000

26,50027,60020,600132.46

Revised Forecast (B)181,500

28,00029,20021,700139.53

Change (B-A)

500

1,500

1,600

1,100

―

Rate of Change (%)

0.3%

5.7%

5.8%

5.3%

―

171,206

25,347

26,391

18,199113.99(Ref.) Results for the Year
Ended March 31, 2015

(Billions of yen)

Net Sales

Operating

Previous

Revised

Forecast

Forecast

ChangeChemicals

35.8

34.9

-0.9

Performance Materials

51.7

51.4

-0.3

Agricultural Chemicals

48.5

49.1

0.6

Pharmaceuticals

8.5

8.7

0.2

Trading

60.1

59.0

-1.1

Others

21.2

20.9

-0.3

Adjustment

-44.8

-42.5

2.3

Total

181.0

181.5

0.5

Chemicals

3.6

3.4

-0.2

Performance Materials

10.8

11.0

0.2

Agricultural Chemicals

9.6

11.3

1.7

Pharmaceuticals

2.1

2.1

－

Trading

1.9

2.0

0.1

Others

0.5

0.5

－

Adjustment

-2.0

-2.3

-0.3

Total

26.5

28.0

1.5

Income-4-

2. Items concerning Summary Information (Notes)(Changes in Accounting Policies)

Effective from the beginning of the first quarter of current consolidated fiscal year, the Company adopted
the "Revised Accounting Standard for Business Combinations"(Accounting Standards Board ofJapan(ASBJ) Statement No.21, issued on September 13, 2013, hereinafter referred to as the "AccountingStandard for Business Combinations"), "Revised Accounting Standard for Consolidated Financial
Statements"(ASBJ Statement No.22, issued on September 13, 2013, hereinafter referred to as the"AccountingStandard

for

Consolidation")

and"RevisedAccountingStandard

forBusiness

Divestitures"(ASBJ Statement No.7, issued on September 13, 2013, hereinafter referred to as the"Accounting Standard for Business Divestitures").
In applying these revised accounting standards, the Company records any difference arising fromchanges in equity interest in subsidiaries as capital surplus when the control over its subsidiaries maintains
and the corresponding acquisition-related costs are recognized as expenses when incurred. Also,
regarding business combinations conducted after the beginning of the first quarter of current consolidated
fiscal year, the disclosure method was revised to reflect the retrospective adjustment of purchase priceallocation after determination of provisional accounting method in the quarterly consolidated financial
statements of the fiscal period in which the business combination occurred. In addition, presentation
method of net income is amended and also, the presentation of "minority interests" is changed to"non-controlling interests". To reflect these changes in presentation, the quarterly consolidated financial
statements and consolidated financial statements in the previous fiscal year have been reclassified.
Concerning the application of the Accounting Standard for Business Combinations and others, theCompany is subject to the transitional treatment set out in Section 58-2(4) of the Accounting Standard forBusiness Combinations, in Section 44-5(4) of the Accounting Standard for Consolidation and in Section
57-4(4) of the Accounting Standard for business Divestitures, and these changes are effective from the
beginning of the first quarter of current consolidated fiscal year. Also, these changes have no effect on profit
and loss.

-5-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)
As of
March 31, 2015

As of
September 30, 2015

AssetsCurrent assets
Cash and deposits

31,34326,931

Notes and accounts receivable - trade58,13343,390

Merchandise and finished goods

28,12329,15859618

Raw materials and supplies

7,885

8,367

Other

7,931

7,466

(29)

(35)

133,448

115,898

Buildings and structures, net

22,702

22,393

Other, net

24,426

24,613

Total Property, plant and equipment

47,12847,006

Goodwill

4

464

Other

669

4,508

Total Intangible assets

674

4,972

Investment securities

38,711

33,514

Other

4,079

4,320

Allowance for doubtful accounts

(187)

(180)

42,60337,65490,406

89,632

223,854

205,530Work in process

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

Intangible assets

Investments and other assets

Total Investments and other assets
Total Non-current assets
Total assets-6-

(Millions of Yen)
As of
March 31, 2015

As of
September 30, 2015

Liabilities
Current liabilities
Notes and accounts payable - trade

15,077

13,583

Short-term loans payable

26,041

9,689

Income taxes payable

3,807

3,851

Provision for bonuses

1,827

1,855

Provision for directors' bonuses

24

11

Provision for environmental measures

315

299

Other

8,940

9,700

Total Current liabilities

56,03438,992

9,060

7,690

Provision for business structure improvement

704

704

Net defined benefit liability

174

146

Other

6,618

7,228

Total Non-current liabilities

16,556

15,76872,59054,760Capital stock

18,942

18,942

Capital surplus

13,611

13,611Retained earnings

105,602

107,475

Treasury stocks(584)(1,280)137,572

138,748

10,676

9,441

Foreign currency translation adjustment

894

542

Remeasurements of defined benefit plans

639

597

12,210

10,581

1,481

1,439

151,263

150,770

223,854

205,530

Non-current liabilities
Long-term loans payable

Total liabilities
Net assets
Shareholders' equity

Total Shareholders' equity
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-7-

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Millions of Yen)
Six Months Ended
September 30, 2014

Six Months Ended
September 30, 2015

Net sales

79,92083,670

Cost of sales

48,25049,004Gross profit

31,66934,665

Selling, general and administrative expenses

19,163

20,400Operating income

12,506

14,265Interest income

96Dividend income

292

245

Share of profit of entities accounted for using equity method

294

446

Other

457

876

1,054

1,574

Interest expenses

126

110

Plant stop losses

265

185

-

150

Other

439

261

Total non- operating expenses

831

708

12,72815,131--

Product compensation expenses

390-

Total Extraordinary losses

390-

Income before income taxes and non-controlling interests

12,33815,131

Income taxes - current

3,569

3,981

Income taxes - deferred

(163)

(94)

Total income taxes

3,406

3,886

Profit8,931

11,244

80

97

8,850

11,147

Non-operating income

Total non- operating income
Non-operating expenses

Product compensation expenses

Ordinary income
Extraordinary income
Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent-8-

- Consolidated Statements of Comprehensive Income(Millions of Yen)
Six Months Ended
September 30, 2014

Six Months Ended
September 30, 2015

8,931

11,244

Valuation difference on available-for-sale securities

749(1,234)Foreign currency translation adjustment

534

(413)

Remeasurements of defined benefit plans, net of tax

(27)

(42)

Share of other comprehensive income of entities accounted
for using equity method

(0)

(0)

1,255

(1,690)

10,187

9,554

10,060

9,518

126

35

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-9-(4) Consolidated Statements of Cash Flows(Millions of Yen)
Six Months Ended
September 30, 2014

Six Months Ended
September 30, 2015--

Income before income taxes and non-controlling interests

12,33815,131

Depreciation

3,713

4,446

Interest and dividend income

(302)

(251)

Interest expenses

126

110

Loss (gain) on disposal of non-current assets

170

130

Decrease (increase) in notes and accounts receivable - trade

11,591

14,490

Increase (decrease) in inventories(1,947)(2,231)

Decrease (increase) in notes and accounts payable - trade(1,208)(1,542)

Other

1,935

1,168

Subtotal

26,41731,453

Interest and dividend income received

362

311

Interest expenses paid

(138)

(111)

Income taxes paid

(3,738)(4,011)

Cash flows from operating activities

22,902

27,642

Cash flows from investing activities--

Purchase of investment securities(1,307)(6)

Proceeds from sales of investment securities

3,040

109

Purchase of property, plant and equipment(3,824)(4,308)

Payments for retirement of property, plant and equipment

(113)

(96)

Net increase (decrease) in short-term loans receivable

(96)

(271)

Other

(469)

(82)

(2,770)(4,654)--

Net decrease (increase) in short-term loans payable(15,236)(16,355)

Repayments of long-term loans payable(5,456)(1,370)Cash dividends paid

(2,567)(3,469)Dividends paid to non-controlling interests

(50)

(70)

Purchase of treasury shares(1)(6,000)

Other

(20)

(21)

(23,332)(27,287)

91

(172)

Net decrease (increase) in cash and cash equivalents(3,109)(4,473)

Cash and cash equivalents at beginning of period

30,75731,343-

61

27,64826,931

Cash flows from operating activities

Cash flows from investing activities
Cash flows from financing activities

Cash flows from 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 period- 10 -

(4) Notes to Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
The Company acquired treasury stock based on the resolution at the meeting of Board of Directors held on May 12, 2015.
As a result, treasury stock increased by 5,999 million yen during the first half of current consolidated fiscal year. Also, the Company
canceled 2,000,000 treasury stock on July 31, 2015 based on the resolution at the meeting of Board of Directors held on July 14, 2015.
As a result, retained earnings and treasury stock decreased 5,304 million yen, capital surplus decreased 0 million yen during thefirst half of current consolidated fiscal year.
(5) Segment Information
1. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Six Months Ended September 30, 2014 (From April 1, 2014 to September 30, 2014)
Performance Agricultural
Chemicals
Materials
Chemicals

Pharmaceuticals(Millions of Yen)

Trading

Others

Total

Adjustment Consolidated
(1)
Total

Sales
Sales to outside customers

12,114

21,39017,151

4,998

20,240

4,023

79,920-Intersegment Sales

4,580

2,849

1,379

-

7,057

4,436

20,304(20,304)-

16,69524,23918,531

4,998

27,2978,460

100,224(20,304)

79,920

416

6,677

3,954

1,598

904

(27)

13,525(1,018)12,506

Total Sales
Segment income or loss
(Operating Income or Loss)

79,920Notes: (1) The negative 1,018 million yen adjustment in segment income includes negative 102 million yen in intersegment eliminations andnegative 915 million yen of corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.
2) For the Six Months Ended September 30, 2015 (From April 1, 2015 to September 30, 2015)
Performance Agricultural
Chemicals
Materials
Chemicals

Pharmaceuticals(Millions of Yen)

Trading

Others

Total

Adjustment Consolidated
(1)
Total

Sales
Sales to outside customers

12,297

23,032

19,236

3,742

21,484

3,876

83,670-Intersegment Sales

4,444

3,008

1,903

-

6,036

5,011

20,404(20,404)-

Total Sales

16,742

26,04021,1403,742

27,521

8,888

104,075(20,404)

83,670

Segment income or loss
(Operating Income or Loss)

1,405

6,338

6,221

617

856

(28)

15,410(1,144)

14,265

Notes: (1) The negative 1,144 million yen adjustment in segment income includes negative 146 million yen in intersegment eliminations andnegative 998 million yen of corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.

- 11 -

83,670