Consolidated Financial Results for the Three Months Ended June 30, 2021
(JPGAAP)
August 10, 2021
Stock Exchange: Tokyo
Name of listed company: Nissan Chemical Corporation
URL: http://www.nissanchem.co.jp/
Code number: 4021
Representative: YAGI Shinsuke, President
Inquiry to: DAIMON Hideki, Executive Officer and Head of Finance and Accounting Department Tel. +81 3 4463 8404
Scheduled submission date of quarterly report: August 12, 2021
䚷䚷䚷䚷䚷 Scheduled dividend payment date: 䇷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, 2021 (From April 1, 2021 to June 30, 2021)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)

OperatingincomeNet sales

Three months ended June 30, 2021
Three months ended June 30, 2020
(Note) Comprehensive income:Ordinary
incomeNet income attributableto owners of parent

Million yen%

Million yen%

Million yen%

Million yen%

46,499(5.6)

11,87521.1

12,323

18.3

8,849

16.3

49,280

1.2

9,810

5.0

10,416

4.4

7,608

(2.9)

Three months ended June 30, 2021

: 8,053 million yen ,(20.2%)

Three months ended June 30, 2020

: 10,091 million yen ,71.1%

Basic earnings
per share

Diluted net income
per share

Yen

Yen

Three months ended June 30, 2021

61.73

㸫

Three months ended June 30, 2020

52.38

㸫

(2) Consolidated Financial Position
Total assets

As of June 30, 2021

Equity ratio

Million yen

Million yen%

246,600

193,92777.9

200,56274.9

265,509

As of March 31, 2021
(Reference) Shareholders' equity:

Net assets

As of June 30, 2021

: 192,171 million yen

As of March 31, 2021

: 198,828 million yen

2. Cash Dividends
Cash dividends per shareFirst
quarter

Secondquarter

Yen

Year ended March 31, 2021

䠉Year ending March 31, 2022

䠉Year ending March 31, 2022
(Outlook)

Third
quarter

Yen

Year-end

Yen

Annual

Yen

Yen

46.00

㸫

58.00

104.00

48.00

㸫

60.00

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

3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)(% indicates the rate of increase/decrease against the same period of the previous year)
OperatingincomeNet sales

Ordinary
incomeNet income attributableto owners of parent

Basic earnings
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

Six months
ending September 30, 2021

76,500(19.0)

17,700(1.6)

18,000(1.0)

14,0000.7

98.03

Year ending March 31, 2022

172,500(17.5)

43,6002.5

44,9002.3

34,1001.9

239.18(Note) Revision of the latest released outlook of financial results: None
(Note) The Company determined to apply "Accounting Standard for Revenue Recognition" (ASJB Statement No. 29) from FY 2021.
㻌㻌As a result, the above earnings outlook is the amount after applying the relevant accounting standards.

4. Notes(1) Changes in significant consolidated subsidiaries(Changes in specified subsidiaries involving changes in scope of consolidation)(2) Application of special accounting treatment to 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 [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, 2021

: 144,000,000 shares

As of March 31, 2021

: 145,000,000 shares

2. Number of treasury shares
As of June 30, 2021

: 1,191,069 shares

As of March 31, 2021

: 1,351,888 shares

3. Average number of shares outstanding
As of June 30, 2021

: 143,347,412 shares

As of June 30, 2020

: 145,262,467 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 164,800 shares.
In addition, the average number of shares held by the Trust during the period was 164,967 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(Segment Information).........................................................................................................................111

1Qualitative Information on Quarterly Results(1) Business Performance
During the first quarter of the current fiscal year (April 1, 2021 to June 30, 2021), the domestic economy showed an upward trend inexports and investment on plant and equipment due to the recovery of overseas economies. However, a full fledged recovery was notachieved, as consumer spending was sluggish due to the impact of extension and recurrence of the declaration of emergency situations.
Under these circumstance, sales of Basic Chemicals and Fine Chemicals increased in the Chemicals Segment. In the Performance
Materials Segment, Display Materials, Semiconductor Materials and Inorganic materials performed well. In the Agricultural Chemicals
Segment, sales decreased. In the Pharmaceuticals Segment, sales in “Custom Chemicals” (custommanufacturing and process researching
services for pharmaceutical companies) decreased.
As a result, business performances for this period were as follows.
(Million yen, amount rounded down to the nearest million yen)

1Q FY2020

1Q FY2021

Change1Q FY2021

Change from

(Outlook)(Note)

OutlookSales

49,28046,499(2,780)40,000+6,499Operating income

9,810

11,875+2,0659,800+2,075

Ordinary income

10,416

12,323+1,907

10,200+2,123

7,608

8,849

+1,2417,500+1,349Net income attributableto owners of parent(Note) Outlook is described on page 14 of the FY2020 Presentation Materials (announced on May 14, 2021).
The Company adopted "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, revised on March 31, 2020)and other standards from the first quarter of the fiscal year ending March 31, 2022. For supplemental information, please refer to[2.Consolidated Financial Statement (4) Notes to Consolidated Financial Statements “(Changes in Accounting Policies)”] on page
10.
Explanations by segments are as below.
The Chemicals Segment
In the Basic Chemicals, sales of melamine (adhesives agent for particle board) and high purity sulfuric acid (agent used for cleaning
semiconductor) increased. In the Fine Chemicals, sales of "TEPIC" for general use (powder coating agent for paint, sealants, etc.)
and environmental chemicals (sterilizing and disinfecting agents for pools and septic tanks, etc.) performed well.
As a result, sales of this segment were 8,833 million yen (an increase of 1,418 million yen) and operating income was 1,265 million
yen (an increase of 596 million yen). Compared to the outlook (Note), sales were above 0.4 billion yen and operating income was
the same.
(Note) The outlook is described on page 19 and 20 of the FY2020 Presentation Materials.
The Performance Materials Segment
In the Display Materials, sales of "SUNEVER" (LCD alignment coating) for tablets and notebook PCs performed well. In the Semiconductor
Materials, sales of anti-reflective coating for semiconductors (ARC®*) and multilayer materials (OptiStack®*) increased, reflecting favorable
operation by customers. In the Inorganic materials, sales of "SNOWTEX" for polishing electronic materials and hard coating, and Organo /Monomer sol (various kinds of coating materials, resin additive) were firm.
As a result, sales of this segment were 19,951 million yen (an increase of 2,867 million yen) and operating income was 6,953 million yen (anincrease of 1,643 million yen). Compared to the outlook (Note), sales were above 1.4 billion yen and operating income was above 1.5 billionyen.

2(Note) The outlook is described on page 19 and 20 of the FY2020 Presentation Materials.
*ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.
The Agricultural Chemicals Segment
Due to adoption of “Accounting Standards for Revenue Recognition” from FY2021, the frequency of royalty appropriation doubled fromevery 6 months to every quarters, resulting in sales increase of Fluralaner (active ingredients for veterinary pharmaceuticals).
In domestic agrochemicals market, although sales of "ROUNDUP" (non-selective leaf treatment herbicide) were unchanged from theprevious fiscal year, sales of "ALTAIR" (paddy rice herbicide) and "GRACIA" (insecticide) declined. In the overseas agrochemicals segment,
sales of “QUINTEC” (fungicide) were firm, but shipments of "GRACIA" decreased and those of "TARGA" (herbicide) were delayed.
As a result, sales of this segment were 13,403 million yen (a decrease of 1,178 million yen) and operating income was 4,097 million yen (anincrease of 80 million yen). Compared to the outlook (Note), sales were below 1.1 billion yen and operating income was above 0.3 billion yen.
(Note) The outlook is described on page 19 and 20 of the FY2020 Presentation Materials.
The Pharmaceuticals Segment
Sales of "LIVALO" (anti-cholesterol drug) declined due to increased sales of generic drugs in Japan and overseas. Sales of "Custom
Chemicals" decreased due to the lag of shipment.
As a result, sales of this segment were 1,069 million yen (a decrease of 430 million yen) and operating loss was 185 million yen (adecrease in profit of 115 million yen). Compared to the outlook (Note), sales were above 0.2 billion yen and operating income wasabove 0.1 billion yen.
(Note) The outlook is described on page 19 and 20 of the FY2020 Presentation Materials.
Trading
Sales of this segment were 17,799 million yen (a decrease of 383 million yen), and operating income was 664 million yen (anincrease of 11 million yen). Compared to the outlook (Note), sales were above 1.3 billion yen and operating income was above 0.2
billion yen.
(Note) The outlook is described on page 19 and 20 of the FY2020 Presentation Materials.
OthersSales of this segment were 4,911 million yen (an increase of 125 million yen) and operating income was 68 million yen (an increase of 20
million yen).
(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of June 30, 2021 was 246,600 million yen (a decrease of 18,909 million yen from March 31, 2021). It is mainly due to thedecrease of cash and deposits.
Also, total liabilities as of June 30, 2021 was 52,672 million yen (a decrease of 12,274 million yen). It is mainly due to the decrease of
short-term loans payable.
Net assets as of June 30, 2021 was 193,927 million yen (a decrease of 6,634 million yen).
As a result of these factors, equity ratio was 77.9% (an increase of 3% from March 31, 2021).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain and loss on working
capital, net cash provided by operating activities for the three months ended June 30, 2021 was 11,849 million yen (12,394 million yen forthe same period of the previous year).
Due to the investment on plant and equipment, net cash used in investing activities for the three months ended June 30, 2021 was 3,291
million yen (1,557 million yen).
Due to the decrease in loans payable, payment for dividends and share repurchase, net cash used in financing activities for the threemonths ended June 30, 2021 was 23,821 million yen (24,851 million yen).

3As a result of these factors, cash and cash equivalents at the end of this period was 17,121 million yen, reflecting exchange of 4 million
yen. It decreased by 15,258 million yen from March 31, 2021 (16,633 million yen).
(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, 2022 from thestatement announced on May 14, 2021.
(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 “Vista2021” Stage II launched from April 2019, the company aims to realize dividend payout ratio to be 45%
and total payout ratio to be 75% after FY2019.

4

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As ofMarch 31, 2021

As ofJune 30, 2021

AssetsCurrent assets
Cash and deposits

32,38017,121

Notes and accounts receivable - trade73,93766,425Merchandise and finished goods

33,77436,137Work in process

23

329

Raw materials and supplies

12,853

13,382

Other

6,650

8,791

(31)

(28)

159,588

142,159

Buildings and structures, net

24,83724,984

Other, net

27,00026,474

Total property, plant and equipment

51,83751,459

548

693

Other

11,581

11,514

Total intangible assets

12,12912,208Investment securities

35,89434,858

Other

6,170

6,025

Allowance for doubtful accounts

(110)

(110)

Total investments and other assets

41,953

40,773105,921

104,440

265,509

246,600

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

Intangible assets
SoftwareInvestments and other assets

Total non-current assets
Total assets

5

(Million yen)
As ofMarch 31, 2021

As ofJune 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade16,29815,677

Short-term loans payable

21,48913,059

Income taxes payable

7,113

1,970

Provision for bonuses

2,250

700

7

2

Other

12,58515,859Total current liabilities

59,74447,270

1,184

1,184

171

101

91

130

249

267

3,506

3,718

Provision for directors' bonuses

Non-current liabilities
Long-term loans payable
Provision for business structure improvement
Provision for share-based remuneration for directors(and other officers)
Net defined benefit liability
Other
Total non-current liabilities

5,202

5,402

64,94752,672

Capital stock

18,942

18,942

Capital surplus

13,613

13,613Retained earnings

161,708

155,109

Treasury shares(7,340)(6,532)

Total shareholders' equity

186,923

181,132

11,35910,507

81

84

Total liabilities
Net assets
Shareholders' equity

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

463

448

11,904

11,039

1,733

1,755

200,562

193,927

265,509

246,600

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Million yen)Three Months Ended
June 30, 2020Three Months Ended
June 30, 2021

Net sales

49,28046,499

Cost of sales

28,48022,671Gross profit

20,79923,828Selling, general and administrative expenses

10,98911,952

Operating income

9,810

11,875Interest income

54Dividend income

306

270

Equity in earnings of affiliates

256

178

Other

272

178

Total non-operating income

841

631

Interest expenses

31

31

Loss on disposal of non-current assets

65

112

Foreign exchange losses

99

13

Non-operating income

Non-operating expenses

Other

38

26

Total non- operating expenses

235

183

10,416

12,323--

Ordinary income
Extraordinary income
Extraordinary losses--

Income before income taxes and non-controlling interests

10,416

12,323

Income taxes - current

1,988

2,159

Income taxes - deferred

800

1,244

Total income taxes

2,788

3,403

Net income

7,627

8,920

19

70

7,608

8,849

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

7

- Consolidated Statements of Comprehensive Income(Million yen)Three Months Ended
June 30, 2020Three Months Ended
June 30, 2021

7,627

8,920

2,380

(852)

Foreign currency translation adjustment811

Remeasurements of defined benefit plans, net of tax

1

(15)

Share of other comprehensive income of entities accounted forusing equity method0(0)

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

Total other comprehensive income
Comprehensive income

2,464

(866)

10,091

8,053

10,062

7,983

28

69

(Comprehensive income attributable to)
Owners of parent
Non-controlling interests8(3) Consolidated Statements of Cash Flows(Million yen)Three Months Ended
June 30, 2020Three Months Ended
June 30, 2021

Income before income taxes and non-controlling interests

10,416

12,323

Depreciation and amortization

2,317

2,248

16

25

Cash flows from operating activities

Amortization of goodwill
Interest and dividend income

(311)

(275)

Loss (gain) on sales of investment securities(0)-Interest expenses

31

31

Loss (gain) on disposal of non-current assets

65

112

Decrease (increase) in notes and accounts receivable - trade

9,528

7,537

Decrease (increase) in inventories(2,697)(3,196)

Increase (decrease) in notes and accounts payable - trade(1,065)

(644)

Other

(261)

273

Subtotal

18,03818,436

Interest and dividend income received

410

514

Interest expenses paid

(29)

(29)

Income taxes paid

(6,025)(7,071)

Net cash provided by (used in) operating activities

12,394

11,849(81)(78)

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

0-(2,049)(2,812)

Payments for retirement of property, plant and equipment

(43)

(74)

Purchase of intangible assets

(104)

(450)

Purchase of property, plant and equipment

Net decrease (increase) in short-term loans receivable

749

129

Purchase of long-term prepaid expenses

(14)

(23)

Other

(15)

19

(1,557)(3,291)

Net increase (decrease) in short-term loans payable(10,860)(8,430)Cash dividends paid

(6,990)(8,341)-(48)

Share repurchase(4,075)(4,755)

Setting up the trust for share repurchase(2,925)(2,245)-0(24,851)(23,821)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Dividends paid to non-controlling interests

Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

94

Net increase (decrease) in cash and cash equivalents(14,005)(15,258)

Cash and cash equivalents at beginning of period

30,63932,380Cash and cash equivalents at end of period

16,633

17,1219

(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 1,000 shares to the eligible party on April 23, 2021 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 4 million yen during thefirst quarter of current consolidated fiscal year. Also, the Company canceled 1,000,000 treasury shares on May 10, 2021 based on the resolution ofBoard of Directors' meeting held on April 23, 2021. As a result, retained earnings and treasury shares decreased by 5,559 million yen during the firstquarter of current consolidated fiscal year.
In addition, the Company repurchased 840,000 treasury shares based on the resolution of Board of Directors' meeting held on May 14, 2021.
As a result, treasury shares increased by 4,754 million yen during the first quarter of current consolidated fiscal year.
(Changes in Accounting Policies)(Application of "Accounting Standard for Revenue Recognition," etc.)
The Company adopted "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, revised on March 31, 2020) and other standards,
and applied accounting policy to recognize revenue with the amounts expected to be received in exchange for the promised goods or services as the controlof such goods or services are transferred to the customer at the beginning of the first quarter of fiscal 2022.
Major changes due to the adoption of Accounting Standard for Revenue Recognition are as follows:(1)Recognition of revenue related to agent transactions
For transactions where the Company ’ s role in providing the product to the customer is fulfilled by an agent, the method of revenue recognition
has changed to one in which the net amount after the amount paid to the supplier is deducted from the amount received from the customer is recognized
as revenue.
(2)Variable consideration
For transactions which include variable consideration in consideration, the Company includes such variable consideration within the transaction priceto the extent that it is highly probable that a significant reversal of previously recognized cumulative revenue will not occur when the uncertainty issubsequently resolved.
(3)Granting of license
As revenue for granting license, income from licensing was previously recognized upon deposit. However, if the nature of the covenant to granta license of the customer is the right to access the intellectual property rights over the term of the license, revenue is recognized over a certain period of timeand if the right to use the intellectual property at the time the license is granted, revenue is recognized at one point.
The application of such changes in accounting policies follows the transitional treatment prescribed in the proviso of paragraph 84 of Accounting Standard
for Revenue Recognition, such that the new accounting policy was applied from the beginning balance of retained earnings of the first quarter of fiscal 2022
to add to or deducted from the amount of beginning balance of retained earnings of the first quarter of fiscal 2022 the cumulative effects of applying
retrospectively the new accounting policy from the first quarter of the fiscal year ending March 31, 2022. The method prescribed in paragraph 86 of
Accounting Standard for Revenue Recognition was applied, however, with no retrospective application of the new accounting policy to the contract which arethat almost all amounts of revenues have been recognized in accordance with the prior treatments before the beginning of the first quarter of fiscal 2022.
In addition, applying the method prescribed in the proviso (1) of paragraph 86 of Accounting Standard for Revenue Recognition, for the contracts
which have been modified before the beginning of the first quarter of fiscal 2022, the cumulative effect is added to or deducted from the beginning balance ofthe retained earnings of the first quarter of fiscal 2022, based on the terms of the contracts that have been reflected all modifications in the contracts.
As a result, in the first quarter of the fiscal year ending March 31, 2022, net sales decreased by 3,489 million yen and cost of sales decreased by
4,718 million yen while Operating income, Ordinary income and income before taxes and non-controlling interests increased 1,229 million yen.
Also, the balance of retained earnings at the beginning of fiscal year ending March 31, 2022 decreased by 1,548 million yen.
(Application of "Accounting Standard for Fair Value Measurement," etc.)
The company adopted "Accounting Standard for Fair Value Measurement"(ASBJ Statement No.30, July 4, 2019) and other standards from the firstquarter of the fiscal year ending March 31, 2022. Based on the transition treatment prescribed in Paragraph 19 of "Accounting Standard for Fair Value
Measurement" and Paragraph 44-2 of "Accounting Standard for Financial Instruments" (ASBJ Statement No.10, July 4 2019), we have decided to apply
the new accounting policies set forth by "Accounting Standard for Fair Value Measurement" into the future. These changes had no impact on
the quarterly consolidated financial statements.

10

(Segment Information)
1. Information Regarding Sales, Income (Loss) of Reportable Segments(Million yen)

1) For the Three Months Ended June 30, 2020 (From April 1, 2020 to June 30, 2020)
Chemicals

Performance
Materials

Agricultural
Chemicals

Pharmaceuticals

Trading

Others

Total

Adjustment(1)

Consolidated
Total

Sales
49,280

Sales to outside customers

5,127

14,84012,9991,500

13,126

1,684

49,2790Intersegment Sales

2,287

2,244

1,583

-

5,055

3,100

14,271(14,271)-

7,415

17,084

14,582

1,500

18,182

4,785

63,550(14,270)

49,280

668

5,310

4,017

(70)

652

47

10,627

(817)

9,810

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

Notes: (1) The (817) million yen adjustment in segment income includes (59) million yen in intersegment eliminations, 0 million yen sales
not attributable to any reporting segment, and (758) 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.
(Million yen)

2) For the Three Months Ended June 30, 2021 (From April 1, 2021 to June 30, 2021)
Chemicals

Performance
Materials

Agricultural
Chemicals

Pharmaceuticals

Trading

Others

Total

Adjustment(1)(2)

Consolidated
Total

Sales
46,499

Sales to outside customers

6,093

17,031

12,612

1,069

12,527

1,878

51,212(4,713)

Intersegment Sales

2,739

2,920

791

-

5,272

3,032

14,756(14,756)-

Total Sales

8,833

19,951

13,403

1,069

17,7994,911

65,969(19,469)

46,499Segment Income or Loss
(Operating Income or Loss)

1,265

6,953

4,097

(185)

664

68

12,864(988)

11,875

Notes: (1) The䚷 (4,713)䚷 million䚷 yen䚷 adjustment䚷 in 䚷sales䚷 to䚷 outside䚷 customers 䚷includes䚷(4,718) million yen in the elimination of agent
transactions due to the adoption of Accounting Standard for Revenue Recognition, and 5 million yen sales not attributable
to any reporting segment.
(2) The (988) million yen adjustment in segment income includes (136) million yen in intersegment eliminations, 5 million yen sales
not attributable to any reporting segment, and (857) 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.

11