Consolidated Financial Results for the Six Months Ended September 30, 2023
(JPGAAP)

November 10, 2023
Name of listed company: Nissan Chemical Corporation

Stock Exchange: Tokyo

Code number: 4021

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

Representative: YAGI Shinsuke, President
Inquiry to: ARITA Nobuhiro, Senior Managing Associate Executive Officer and Head of Finance and Accounting Department Tel. +81 3 4463 8401
Scheduled submission date of quarterly report: November 13, 2023
Scheduled dividend payment date: December 4, 2023
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, 2023 (From April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales
Million yen

Operating

Ordinary

incomeincome% Million yen

Net income attributableto owners of parent% Million yen% Million yen%

Six months ended September 30, 2023

105,675(3.5)

24,094(14.4)

26,197(18.1)

19,497(17.7)

Six months ended September 30, 2022

109,53119.3

28,15932.1

31,986

43.7

23,68445.4(Note) Comprehensive income:Six months ended September 30, 2023

: 22,578 million yen ,(12.2%)

Six months ended September 30, 2022

: 25,721 million yen ,86.8%

Basic earnings
per share

Diluted net income
per share
Yen

Yen

Six months ended September 30, 2023

139.55－Six months ended September 30, 2022

167.74－(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of September 30, 2023

292,114

225,876

76.1

As of March 31, 2023

298,715

221,526

73.1

As of September 30, 2023

: 222,396 million yen

As of March 31, 2023

: 218,419 million yen(Reference) Shareholders' equity:
2. Cash Dividends

Cash dividends per shareFirst
quarter

SecondquarterYen

Thirdquarter

Yen

Year ended March 31, 2023

－

70.00

Year ending March 31, 2024

－

70.00

Year ending March 31, 2024 (Outlook)Year-end

Yen

Annual

Yen

Yen

－

94.00

164.00－94.00

164.00(Note) Revision of the latest released dividend outlook: None
3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)(% indicates the rate of increase/decrease against the same period of the previous year)
OperatingincomeNet sales
Million yen
Year ending March 31, 2024

227,500% Million yen(0.2)

48,600(Note) Revision of the latest released outlook of financial results: Yes
Please refer to "Revision of Financial Results Outlook" for details.

Ordinary
income% Million yen(7.0)

51,300Net income attributableto owners of parent% Million yen(8.1)

38,400Basicearnings
per share

%

Yen

(6.5)

275.42

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:Nippon Phosphoric Acid Corporation Limited)
Nippon Phosphoric Acid Corporation Limited changed the trade name into NC Tokyo Bay Corporation on July 3, 2023.
(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: None2. Changes of accounting policies other than the above: None3. Changes in accounting estimates: None4. Restatements: None(4) Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of September 30, 2023
: 139,800,000 shares
As of March 31, 2023

: 141,300,000 shares

2. Number of treasury shares
As of September 30, 2023

: 326,631 shares

As of March 31, 2023

: 1,029,072 shares

3. Average number of shares outstanding
As of September 30, 2023
: 139,713,151 shares
As of September 30, 2022

: 141,194,352 shares(Note) The Company has introduced “Board Benefit Trust (BBT)” based on the resolution of Board of Directors' meeting held on July 30,2019.Theshares held by the Trust are included in the number of treasury shares at the end of the period, and they are included in the number oftreasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by theTrust (included in treasury shares) at the end of the period was 144,000 shares.
In addition, the average number of shares held by the Trust during the period was 144,708 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 .................................................................................................................

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

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

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

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

4

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

5(1) Consolidated Balance Sheets ................................................................................................................................... 5(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income ................................... 7(3) Consolidated Statements of Cash Flows .................................................................................................................. 9(4) Notes to Consolidated Financial Statements ............................................................................................................ 10(Notes on Assumption of Going Concern) ........................................................................................................... 10(Notes on Significant Changes in Shareholders' Equity) ..................................................................................... 10(Segment Information) ......................................................................................................................................... 111

1. Qualitative Information on Quarterly Results(1) Business Performance
During the second quarter of the current fiscal year (April 1, 2023 to September 30, 2023), exports of automobiles,
reflecting the temporary easing of the semiconductor shortage, and inbound demand, driven by the depreciation of theyen, showed an increasing trend. However domestic demand, especially consumer spending, was sluggish against a
backdrop of soaring prices. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals andFine Chemicals decreased. In the Performance Materials Segment, sales of Display Materials were firm, but sales of
Semiconductor Materials declined. In the Agricultural Chemicals Segment, sales decreased. In the Healthcare Segment,
sales of "Custom Chemicals"(custom manufacturing and solution proposal business for pharmaceutical companies)
increased.
As a result, both sales and each income were below the same period of the previous fiscal year and the outlooks
announced in May.

(Million yen, amount rounded down to the nearest million yen)
2Q FY2022

2Q FY2023

Year on Year
Change2Q FY2023(Outlook)

Change from
OutlookSales

109,531

105,675(3,855)

108,600(2,925)

Operating income

28,15924,094(4,064)

26,100(2,006)

Ordinary income

31,98626,197(5,788)26,400(203)

Net income attributableto owners of parent

23,684

19,497(4,187)

19,700(203)

Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, sales of urea, AdBlue®* (high-grade urea solution) and nitric acid products (metal dissolution,
surface treatment, etc.) increased. Sales of melamine (adhesives agent) declined as a result of the termination of sales inthe third quarter of the previous fiscal year under the structural reforms. In Fine Chemicals, sales of environmental
chemicals (sterilizing and disinfecting agents for pools and septic tanks, etc.) were firm, but sales of "TEPIC" (powder
coating agent for paint, sealants, etc.) decreased.
As a result, sales of this segment were 17,874 million yen (a decrease of 1,878 million yen from the same period of theprevious fiscal year) and operating loss was 86 million yen (a decrease in profit of 1,147 million yen). Compared to theoutlook (Note), sales and operating income were below 1.3 billion yen.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) increased. In Semiconductor Materials, sales of antireflective coating for semiconductors (ARC®*) and multi-layer process materials (OptiStack®*) decreased due to a
decline in customer utilization." In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hardcoating, Organo / Monomer sol (various kinds of coating materials, resin additive) decreased.
As a result, sales of this segment were 40,513 million yen (a decrease of 1,488 million yen) and operating income was11,129 million yen (a decrease of 2,737 million yen). Compared to the outlook (Note), sales were below 1.2 billion yen
and operating income was below 1.6 billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.

2

The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased. In Japanese domestic market, sales of"GRACIA"(insecticide) were firm, but "ROUNDUP" (non-selective foliar application herbicide) decreased. In the overseas
market, although sales of "GRACIA" grew, sales of "LEIMAY" (fungicide) decreased.
As a result, sales of this segment were 35,279 million yen (a decrease of 409 million yen) and operating income was
11,638 million yen (a decrease of 427 million yen). Compared to the outlook (Note), sales were below 1.5 billion yen andoperating income was below 0.4 billion yen.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
The Healthcare Segment
Sales of "LIVALO" (anti-cholesterol drug) declined both in Japan and overseas. In "Custom Chemicals", sales increased.
As a result, sales of this segment were 3,546 million yen (an increase of 298 million yen) and operating income was
1,805 million yen (an increase of 348 million yen). Compared to the outlook (Note), sales and operating income wereabove 0.3 billion yen.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
Trading
Sales of this segment were 48,793 million yen (an increase of 1,142 million yen) and operating income was 1,782 million
yen (a decrease of 169 million yen). Compared to the outlook (Note), sales were above 0.1 billion yen and operating
income was above 0.3 billion yen.
(Note) The outlook is described on page 72 and 73 of the FY2022 Presentation Materials (announced on May 15, 2023)
Part2.
OthersSales of this segment were 12,265 million yen (a decrease of 180 million yen) and operating income was 158 million yen(an increase of 57 million yen).

(2) Financial Position(Position of Assets, Liabilities and Net Assets)
Total assets as of September 30, 2023 was 292,114 million yen (a decrease of 6,601 million yen from March 31, 2023).
It is mainly due to the decrease of cash and deposits and Notes and accounts receivable - trade.
Also, total liabilities as of September 30, 2023 was 66,238 million yen (a decrease of 10,950 million yen). It is mainly due
to the decrease of short-term loans payable.
Net assets as of September 30, 2023 was 225,876 million yen (an increase of 4,349 million yen).
As a result of these factors, equity ratio was 76.1% (an increase of 3.0%).
(Position of Cash Flows)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and net
increase or decrease in working capital, net cash provided by operating activities for the six months ended September 30,
2023 was 36,026 million yen (43,381 million yen for the same period of the previous year).
Mainly due to capital investment in factories, etc., net cash used in investing activities for the six months ended
September 30, 2023 was 8,486 million yen (9,633 million yen for the same period of the previous year).
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, 2023 was 36,232 million yen (29,218 million yen for the same period of theprevious year).
Cash and cash equivalents at the end of this period increased 8,476 million yen from March 31, 2023 after adjusting forthe 215 million yen of increase as an effect of exchange rate change. Moreover, the balance stood at 21,171 million yen(43,909 million yen for the same period of the previous year).

3(3) Outlook of Consolidated Financial Results and Other Forward-looking Information
Outlook for the year ending March 31, 2024 was revised as follows based on the cumulative second quarter anddemand forecast. The exchange rate for the third quarter and beyond is assumed to be 142 yen to the U.S. dollar.
Revision of consolidated financial results’ outlook for the year ending March 31, 2024 (April 01, 2023 to March 31, 2024)(Billion yen, amounts rounded to the nearest billion yen)
Increase or(Reference)Previous
Rate of change
Reviseddecrease
Results for theoutlook(B)outlook(A)
(%)
(B-A)
previous fiscal year
Sales

237.3

227.5

(9.8)

(4.1)%

228.1

Operating income

54.7

48.6

(6.1)

(11.2)%

52.3

Ordinary income

55.5

51.3

(4.2)

(7.6)%

55.8

Net income attributable toowners of parent

41.5

38.4

(3.1)

(7.5)%

41.1

Basic earnings per share

297.61 yen

275.42 yen(22.19) yen(7.5)%

291.36 yen

Revision of consolidated sales and operating income outlook for the year ending March 31, 2024
(Billion yen, amounts rounded to the nearest billion yen)
Sales
Operating income
Previous

RevisedPrevious

RevisedChemicals

41.3

38.6

3.2

0.8

Performance Materials

87.5

84.5

26.5

23.3

Agricultural Chemicals

84.2

84.0

23.6

23.3

Healthcare

6.0

5.9

2.3

2.6

Trading

105.3

100.9

3.5

3.3

Others

30.7

30.5

0.9

0.9

Adjustment(117.7)(116.9)

(5.3)

(5.6)

Total

237.3

227.5

54.7

48.6

(4) Basic Policy on Distribution of Earnings
The Company’s basic policy of profit allocation is returning to shareholders by improving company value throughincreasing revenue in the medium and long terms.
In medium-term business plan “Vista2027” Stage I launched from April 2022, the company aims to realize dividend
payout ratio to be 55% and total payout ratio to be 75% after FY2022.

42. Consolidated Financial Statements(1) Consolidated Balance Sheets
As ofMarch 31, 2023

(Million yen)
As of
September 30, 2023

Asset
Current assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable - other
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net

29,647
82,67046,95018
17,703
2,113
3,088
7,305
(44)
189,454

21,171
68,33153,854211
19,723
1,965
814
6,193
(46)
172,219

72,520(46,567)
25,952
151,653(136,861)
14,792

78,563(50,465)
28,098164,066(146,843)
17,222Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net

42,153(38,379)
3,774

43,102(39,239)
3,863

8,817
149
(10)
139
11,17664,653

9,067
162
(20)
142
17,45775,851

1,722
9,813
11,535

1,808
9,506
11,31427,322
0
531
2,140
3,186
(110)
33,071
109,260
298,715

26,981
50
460
2,193
3,155
(111)
32,729
119,894
292,114

Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As ofMarch 31, 2023

(Million yen)
As of
September 30, 2023

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

19,942
25,327
624
7,879
2,413
418
15,556
72,161

19,821
10,314
571
6,322
2,507
388
21,06460,988

1,338
98
626

1,079
566
572

256

245

377
2,331
5,027
77,188

419
2,366
5,249
66,23818,942

18,942

13,613
182,400(6,111)
208,844

13,613
179,446(1,823)
210,178

7,678
1,735
159
9,574
3,107
221,526
298,715

8,264
3,803
149
12,217
3,479
225,876
292,114(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income- Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Plant stop losses
Other
Total non- operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Income before income taxes and non-controlling interests
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

7

Six Months Ended
September 30, 2022
109,53154,89654,634
26,47528,159(Million yen)
Six Months Ended
September 30, 2023
105,675
54,136
51,53927,44424,094

105
341
622
3,020
338
4,427

83
354
397
1,879
341
3,057

93
320
79
106

255
501
58
139

600
31,986953
26,197－603－－
31,986
7,757
178
7,935
24,051367
23,684603－
26,801
6,806
313
7,119
19,682
184
19,497

- Consolidated Statements of Comprehensive Income

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)
Owners of parent
Non-controlling interests

8

Six Months Ended
September 30, 2022
24,051(Million yen)
Six Months Ended
September 30, 2023
19,682

365
944
358

586
2,321
(10)

0

(0)

1,669
25,721

2,896
22,57825,213507

22,140437

(3) Consolidated Statements of Cash Flows

Cash flows from operating activities
Income before income taxes and non-controlling interests
Depreciation
Amortization of goodwill
Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses
Loss (gain) on disposal of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Net decrease (increase) in short-term loans receivable
Purchase of long-term prepaid expenses
Other
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
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

9

Six Months Ended
September 30, 2022

(Million yen)
Six Months Ended
September 30, 2023

31,986
5,071
50
(446)
－
93
320
19,345(6,530)(613)
1,646
50,925
1,023(93)(8,473)43,38126,801
5,829
50
(438)
(603)
251
501
15,324(8,170)(830)
4,817
43,5331,315(253)(8,568)36,026

(483)
0
(25)
(8,403)
(304)

(67)
788
(10)
(10,385)
(468)

(593)
230
(49)
(3)

(608)
2,309
(110)
(27)

(9,633)(8,486)(13,623)(276)(10,208)(105)(5,001)(4)(29,218)
1,605
6,134
34,658(17,720)(312)(13,199)－(5,004)
4(36,232)
215(8,476)
29,647

3,116－

43,90921,171

(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 7,600 shares to the eligible party on April 25, 2023 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 36 million yen during the second quarter of current consolidated fiscal year. Also, theCompany canceled 700,000 treasury shares on May 12, 2023 based on the resolution of Board of Directors' meeting
held on April 28, 2023. Furthermore, the Company canceled 800,000 treasury shares on August 10, 2023 based on the
resolution of Board of Directors' meeting held on July 28, 2023. As a result, retained earnings and treasury shares
decreased by 9,251 million yen during the second quarter of current consolidated fiscal year.
In addition, the Company repurchased 805,300 treasury shares based on the resolution of Board of Directors' meeting
held on May 15, 2023. As a result, treasury shares increased by 4,999 million yen during the second quarter of current
consolidated fiscal year.

10

(Segment Information)
1. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Six Months Ended September 30, 2022 (From April 1, 2022 to September 30, 2022)
Performance Agricultural
Chemicals
Materials
Chemicals Healthcare

Trading

Others

Total(Million yen)
Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside customers(Note 1)
Intersegment Sales

13,731

33,96031,183

3,248

36,522

5,251

123,896(14,365)

109,531

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

Segment Income or Loss
(Operating Income or Loss)

1,061

13,867

12,066

1,457

1,951

100

30,504(2,345)28,159Notes:
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. Adjustments are as follows.
(1) (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.
(2) (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 aremainly group administrative expenses which do not belong to any segment.

2) For the Six Months Ended September 30, 2023 (From April 1, 2023 to September 30, 2023)
Performance Agricultural
Chemicals
Materials
Chemicals Healthcare

Trading

Others3,489

36,617

4,701

Total

(Million yen)
Adjustment Consolidated(Note 2)Total

Net Sales
Sales to outside customers(Note 1)

11,89632,85529,528

119,089(13,413)

105,675

Intersegment Sales

5,978

7,657

5,750

57

12,175

7,563

39,182(39,182)－

Total Sales

17,87440,51335,2793,546

48,793

12,265

158,272(52,596)

105,675(86)

11,129

11,638

1,805

1,782

158

26,427(2,332)24,094

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. Adjustments are as follows.
(1) (13,413) million yen adjustment in sales to outside customers includes (13,424) million yen in the elimination of agent transactions, and10 million yen sales not attributable to any reporting segment.
(2) (2,332) million yen adjustment in segment income includes 402 million yen in intersegment eliminations, 11 million yen sales not attributable
to any reporting segment, and (2,746) million yen corporate expenses not attributable to any reportable segment. The corporate expenses aremainly group administrative expenses which do not belong to any segment.

11