Consolidated Financial Results for the Nine Months Ended December 31, 2015
(JPGAAP)
February 3, 2016
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: February 15, 2016
Scheduled dividend payment date: ―Supplemental information: Yes
Financial results meeting: None
(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2015 (From April 1, 2015 to December 31, 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

Nine Months Ended December 31, 2015

123,402+4.8%

19,212+19.0%

20,363+17.2%

14,849+25.6%

Nine Months Ended December 31, 2014

117,794+3.7%

16,139+14.9%

17,376+11.8%

11,819+7.7%(Note) Comprehensive Income:Nine Months Ended December 31, 2015: 17,142 million yen (+14.2%)
Nine Months Ended December 31, 2014: 15,013 million yen (-2.6%)

Net Income
per Share (Yen)

Diluted Profit
Attributable to
Owners of Parent
per Share (Yen)

Nine Months Ended December 31, 2015

95.06

－

Nine Months Ended December 31, 2014

73.81

－

(2) Consolidated Financial Position(Millions of Yen)

Total Assets

Net Assets

Equity Ratio

As of December 31, 2015

216,317

155,558

71.2%

As of March 31, 2015

223,854

151,263

66.9%(Reference) Shareholders' equity: As of December 31, 2015: 154,047 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－

Year Ending March 31, 2016－

18.00 yen－

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

Annual22.00 yen 36.00 yen

24.00 yen 42.00 yen(Note) Revision of the latest released dividend forecast: None

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)
Operating
IncomeNet SalesYear Ending March 31, 2016

181,500+6.0%

28,000(Note) Revision of the latest released forecast of financial results: None

+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): None(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 "Items concerning Summary Information" on page 4 for details.
(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
as of December 31, 2015

: 156,000,000 shares

as of March 31, 2015

: 158,000,000 shares

2. Number of shares of treasury stock
as of December 31, 2015

: 483,049 shares

as of March 31, 2015

: 286,679 shares

3. Average number of shares outstanding (cumulative first year)
as of December 31, 2015

: 156,207,416 shares

as of December 31, 2014

: 160,136,239 shares* Presentation regarding implementation status of quarterly review proceduresThis 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.
* Explanations regarding appropriate use of business forecasts and other special notes
The business 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........................................................................ 2(1) Business Performance ............................................................................................... 2(2) Financial Position..................................................................................................... 3(3) Forecast of Consolidated Business Results and Other Forward-looking Information.................. 3

2. Items concerning Summary Information (Notes) .................................................................... 4(1) Changes of Accounting Policies and Accounting Estimates, Restatement............................... 4

3. Consolidated Financial Statements .................................................................................... 5(1) Consolidated Balance Sheets...................................................................................... 5(2) Consolidated Statements of Income and 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(Segment Information) .......................................................................................... 10(Significant Subsequent Events) .................................................................................... 10-1-

1. Qualitative Information on Quarterly Results(1) Business Performance
During the year ended December 31, 2015 (from April 1, 2015 to December 31, 2015), the domestic economy
has been slowly recovering due to the healthy corporate performance on the background of weaker yen, lower
price of crude oil and expansion of inbound tourism consumption even though there was a sense of uncertainty
about the Chinese economy.
With regard to our group business, the profitability of Chemicals Segment was improved by lower price of raw
fuels. As for Performance Materials Segment, display materials have continued to grow. As for Agricultural
Chemicals Segment, both domestic sales and export sales increased steadily. As for Pharmaceutical Segment,
the domestic sales of “LIVALO” (anti-cholesterol drug) were adversely affected by generic drug.
As a result, the sales for this term were 123,402 million yen (an increase of 5,607 million yen from the same
term of the previous year). Operating income was 19,212 million yen (an increase of 3,073 million yen). Ordinary
income was 20,363 million yen (an increase of 2,986 million yen). Profit attributable to owners of parent was
14,849 million yen (an increase of 3,030 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, but the sales of “TEPIC” (epoxy compound for LED sealants, solder resist, painting) dropped
below previous year.
As a result, the sales of this segment were 25,736 million yen (a decrease of 16 million yen from the same
term of the previous year). Operating income was 2,554 million yen (an increase of 1,532 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 Organo silica sol (various kinds of coating materials) for inorganic colloid materials
exceeded previous year.
As a result, the sales of this segment were 39,564 million yen (an increase of 2,315 million yen from the same
term of the previous year). Operating income was 9,917 million yen (a decrease of 0 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 toexport sales, Fluralaner (the active substance of veterinary medical product) had healthy sales.
As a result, the sales of this segment were 26,126 million yen (an increase of 1,943 million yen from the same
term of the previous year). Operating income was 4,920 million yen (an increase of 1,386 million yen).
Pharmaceuticals“LIVALO” continued to face a tough situation. On the other hand, “Custom Chemicals” (custom manufacturing
and process researching services for pharmaceutical companies) had healthy sales.
As a result, the sales of this segment were 7,208 million yen (an increase of 126 million yen from the same
term of the previous year). Operating income was 2,165 million yen (an increase of 173 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 42,374 million yen (an increase of 980 million yen from the same
term of the previous year). Operating income was 1,398 million yen (an increase of 38 million yen).
Others
The sales of this segment were 13,638 million yen (an increase of 565 million yen from the same term of theprevious year). Operating income was 37 million yen (an increase of 25 million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of December 31, 2015 were 216,317 million yen (a decrease of 7,537 million yen from March
31, 2015). It is mainly due to the decrease of notes and accountants receivable.
Also, total liabilities as of December 31, 2015 were 60,758 million yen (a decrease of 11,832 million yen fromMarch 31, 2015). It is mainly due to the decrease of liabilities with interest.
Net Assets as of December 31, 2015 were 155,558 million yen (an increase of 4,294 million yen from March
31, 2015). As a result, equity ratio was 71.2% (an increase of 4.3% 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 nine months ended December 31,
2015 were 30,727 million yen (23,586 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 nine months ended
December 31, 2015 were 6,423 million yen (5,651 million yen for the same term of the previous year).
Due to the decrease in short-term loans payable, payment for dividends and purchase of treasury shares, net
cash used in financing activities for the nine months ended December 31, 2015 were 29,621 million yen (26,137
million yen for the same term of the previous year).
As a result, cash and cash equivalents at the end of this term were 25,969 million yen, reflecting 116 million
yen effect of exchange rate changes and 61 million yen increase from newly consolidated subsidiaries. It
decreased by 5,373 million yen from March 31, 2015 (22,905 million yen for the same term of the previous year).

(3) Forecast of Consolidated Business Results and Other Forward-looking Information
There is no change in the forecast of consolidated business results for the fiscal year ending March 31, 2016
from the statement announced on November 5, 2015.

-3-

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.

-4-

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

As ofDecember 31, 2015

AssetsCurrent assets
Cash and deposits

31,34325,969Notes and accounts receivable - trade58,13343,080

Merchandise and finished goods

28,12334,24959927

Raw materials and supplies

7,885

9,160

Other

7,931

7,576

Allowance for doubtful accounts

(29)

(40)

133,448

120,925

Buildings and structures, net

22,702

22,435

Other, net

24,426

24,668

Total Property, plant and equipment

47,12847,103W ork in process

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Goodwill

4

439

Other

669

4,293

Total Intangible assets

674

4,732

Investment securities

38,711

39,124

Other

4,079

4,611

Allowance for doubtful accounts

(187)

(180)

42,60343,55590,406

95,391

223,854

216,317

Investments and other assets

Total Investments and other assets
Total Non-current assets
Total assets-5-

(Millions of Yen)
As of
March 31, 2015

As ofDecember 31, 2015

Liabilities
Current liabilities
Notes and accounts payable - trade

15,077

19,186

Short-term loans payable

26,041

10,177

Income taxes payable

3,807

1,614

Provision for bonuses

1,827

583

Provision for directors' bonuses

24

17

Provision for environmental measures

315

268

Other

8,940

11,450Total Current liabilities

56,03443,298

9,060

7,690

704

704

Non-current liabilities
Long-term loans payable
Provision for business structure improvement
Net defined benefit liability

174

137

Other

6,618

8,928

Total Non-current liabilities

16,556

17,46072,59060,75818,942

18,942

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

13,611

13,611Retained earnings

105,602108,378

Treasury stocks(584)(1,281)

137,572

139,650

10,676

13,183894

636

Total 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-

639

576

12,21014,397

1,481

1,510

151,263

155,558

223,854

216,317

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income(Millions of Yen)
Nine Months Ended
December 31, 2014

Nine Months Ended
December 31, 2015

Net sales

117,794

123,402

Cost of sales

72,56573,555Gross profit

45,22949,846

Selling, general and administrative expenses

29,09030,634

Operating income

16,13919,212Non-operating income
Interest income

1310

Dividend income

543

483

Share of profit of entities accounted for using equity method

586

567

Other

1,075

1,009

Total non- operating income

2,217

2,069

Interest expenses

163

150

Loss on disposal of non-current assets

242

205

Plant stop losses

265

185

-

211

Other

309

166

Total non- operating expenses

980

919

17,376

20,363--

Product compensation expenses

390-

Business structure improvement expenses

704-

Non-operating expenses

Product compensation expenses

Ordinary income
Extraordinary income
Extraordinary losses

1,095

-

Income before income taxes and non-controlling interests

Total Extraordinary losses

16,281

20,363

Income taxes - current

3,880

4,888

Income taxes - deferred

463

476

Total income taxes

4,343

5,364

Profit11,937

14,998117

149

11,81914,849Profit attributable to non-controlling interests
Profit attributable to owners of parent-7-

- Consolidated Statements of Comprehensive Income(Millions of Yen)
Nine Months Ended
December 31, 2014
ProfitNine Months Ended
December 31, 2015

11,937

14,998Valuation difference on available-for-sale securities

2,048

2,507

Foreign currency translation adjustment

1,068

(300)

(41)

(62)

0

(0)

3,075

2,143

15,013

17,14214,807

17,036

205

106

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-8-(3) Consolidated Statements of Cash Flows(Millions of Yen)
Nine Months Ended
December 31, 2014

Nine Months Ended
December 31, 2015

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

16,281

20,363

Depreciation

6,054

6,911

Interest and dividend income

(556)

(493)

Interest expenses

163

150

Increase (decrease) in provision for business structure improvement

704-

Loss (gain) on disposal of non-current assets

242

205

Decrease (increase) in notes and accounts receivable - trade

10,575

14,881

Increase (decrease) in inventories(9,183)(8,397)

Increase (decrease) in notes and accounts payable - trade

5,633

4,083

Other

(76)

(602)

Subtotal

29,83837,102616

900

Interest and dividend income received
Interest expenses paid

(155)

(124)

Income taxes paid

(6,712)(7,152)

Cash flows from operating activities

23,58630,727(1,310)(328)

Proceeds from sales of investment securities

3,077

113

Purchase of property, plant and equipment(6,554)(5,620)

Payments for retirement of property, plant and equipment

(180)

(121)

Net decrease (increase) in short-term loans receivable

(246)

11

Other

(437)

(479)

(5,651)(6,423)Net decrease (increase) in short-term loans payable(9,785)(15,871)

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

(4,814)(6,269)

(50)

(70)

(6,001)(6,001)

(29)

(38)

(26,137)(29,621)

349

(116)

Net decrease (increase) in cash and cash equivalents(7,852)(5,434)

Cash and cash equivalents at beginning of period

30,75731,343

Increase in cash and cash equivalents from newly
consolidated subsidiary-61

22,90525,969Cash flows from investing activities
Purchase of investment securities

Cash flows from investing activities
Cash flows from financing activities

Dividends paid to non-controlling interests
Purchase of treasury shares
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period-9-(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 third quarter 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 thethird quarter of current consolidated fiscal year.

(5) Segment Information
1. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Nine Months Ended December 31, 2014 (From April 1, 2014 to December 31, 2014)
Pharmaceuticals(Millions of Yen)

Chemicals

Performance
Materials

Agricultural
Chemicals

Sales to outside customers

18,79232,961

21,9907,055

30,973

6,021

Intersegment Sales

6,960

4,286

2,192

26

10,4207,051

Total Sales

25,752

37,24824,182

7,081

41,393

Segment income or loss
(Operating Income or Loss)

1,021

9,918

3,533

1,991

1,359

Trading

Adjustment(1)

Consolidated
Total

117,794-

117,794

30,937(30,937)-

13,073

148,732(30,937)

117,794

11

17,837(1,698)

16,139Others

Total

Sales

Notes: (1) The negative 1,698 million yen adjustment in segment income includes negative 242 million yen in intersegment eliminations andnegative 1,456 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 Nine Months Ended December 31, 2015 (From April 1, 2015 to December 31, 2015)
Pharmaceuticals(Millions of Yen)

Chemicals

Performance
Materials

Agricultural
Chemicals

Sales to outside customers

18,80235,025

23,1137,208

33,1006,152Intersegment Sales

6,933

4,539

3,013

-

9,273

7,486

Total Sales

25,736

39,564

26,126

7,208

42,374

Segment income or loss
(Operating Income or Loss)

2,554

9,917

4,920

2,165

1,398

Trading

Adjustment(1)

Consolidated
Total

123,402-

123,40231,245(31,245)-

13,638

154,648(31,245)

123,40237

20,994(1,782)

19,212Others

Total

Sales

Notes: (1) The negative 1,782 million yen adjustment in segment income includes negative 261 million yen in intersegment eliminations andnegative 1,520 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.

(Significant Subsequent Events)
The Company, at the board of Director's meeting held on February 3, 2016, has decided to repurchase its shares in the market
under Article 156 of the Japanese Corporation Act, as applied pursuant to Article 165, Paragraph 3 of the same Act.
1. Purpose of repurchaseTo facilitate flexible implementation of capital policy in response to changes in the business environment.
2. Details of repurchase(1) Class of shares: Common shares of the company(2) Total number of shares: Up to 1,200,000 shares(Rate of the maximum shares to be acquired to the total outstanding shares: 0.77%)(3) Total amount: Up to 3,000,000,000 yen(4) Period of repurchase: From February 4, 2016 to April 28, 2016
(For reference) Number of treasury shares as of December 31, 2015
Total number of shares issued: 155,516,951 shares(excluding treasury shares)
Number of treasury shares: 483,049 shares- 10 -