Consolidated Financial Results for the Year Ended March 31, 2015
(JPGAAP)May 12, 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 date of annual shareholders' meeting: June 25, 2015
Scheduled dividend payment date: June 26, 2015
Supplemental information: Yes
Financial results meeting: Yes (for institutional investors and analysts)( Amounts rounded down to the nearest million yen)(% indicates the rate of increase/decrease year on year)

1. Consolidated Financial Results for the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(1) Consolidated Operating Results(Millions of Yen)

Operating
IncomeNet Sales

Ordinary
IncomeNet Income

Year Ended March 31, 2015

171,206+4.6%

25,347+13.9%

26,391+11.2%

18,199+9.0%

Year Ended March 31, 2014

163,658+6.4%

22,246+13.8%

23,723+15.8%

16,701+20.3%(Note) Comprehensive Income:Year Ended March 31, 2015:

24,094 million yen +18.1%

Year Ended March 31, 2014:

20,408 million yen +26.5%

Net Income
per Share (Yen)Year Ended March 31, 2015
Year Ended March 31, 2014

Diluted Net Income
per Share (Yen)

113.99－102.11－(Note) Equity in earnings of affiliates: Year Ended March 31, 2015: 1,093 million yen

Ratio ofNet Income to
Shareholders' equity

Ratio of Ordinary
Income toTotal Assets

Ratio of Operating
Income to
Net Sales

12.7%

12.2%

14.8%

12.7%

11.7%

13.6%

Year Ended March 31, 2014: 960 million yen(2) Consolidated Financial Position(Millions of Yen)

Total Assets

Net Assets

Net assets
per share (yen)Equity Ratio

As of March 31, 2015

223,854

151,26366.9%

949.71

As of March 31, 2014

207,999

137,82265.7%

850.91(Note) Shareholders' equity:

As of March 31, 2015: 149,782 million yen

As of March 31, 2014: 136,552 million yen(3) Consolidated Cash Flows(Millions of Yen)

As of March 31, 2015

20,452-8,076-12,127

Cash and cash
equivalents at theend of period
31,343As of March 31, 2014

23,759-13,471-11,80230,757

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

2. Cash Dividends(Millions of Yen)

Cash Dividends per ShareTotal annual
dividend paid
(Millions of yen)

Dividend
payoutratio

Ratio ofdividend
payoutto net assets

First
Quarter

SecondQuarter

Third
QuarterYear Ended March 31, 2014－

14.00 yen－

16.00 yen 30.00 yen

4,860

29.4%

3.7%

Year Ended March 31, 2015－

14.00 yen－

22.00 yen 36.00 yen

5,716

31.6%

4.0%

Year Ending March 31, 2016
(Forecast)－

18.00 yen－

22.00 yen 40.00 yen

Year-end

Annual30.6%

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 Sales

Operating
IncomeOrdinary
IncomeProfit Attributable to
Owners of Parent

Net Income
per share

Six Months
Ending March 31, 2016

85,000+6.4%

12,900+3.1%

13,600+6.8%

10,100+14.1%

64.04

yenYear Ending March 31, 2016

181,000+5.7%

26,500+4.5%

27,600+4.6%

20,600+13.2%

130.62yen4. Notes(1) Changes in significant consolidated subsidiaries(changes in specified subsidiaries involving changes in scope of consolidation): None(2) 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 see (5) Notes to Consolidate Financial Statements, “Changes of Accounting Policies” on page 15 for details.
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
as of March 31, 2015;

158,000,000 shares

as of March 31, 2014;

161,000,000 shares

2. Number of shares of treasury stock
as of March 31, 2015;

286,679 shares

as of March 31, 2014;

522,032 shares

3. Average number of shares outstanding over the year
as of March 31, 2015;

159,654,159 shares

as of March 31, 2014;

163,564,898 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-Consolidated Financial Results for the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(1) Non-Consolidated Operating Results( Amounts rounded down to the nearest million yen)(% indicates the rate of increase/decrease year on year)

Ordinary
IncomeOperating
IncomeNet Sales

Net Income

Year Ended March 31, 2015

128,625+6.0%

20,864+12.8%

23,064+12.3%

16,496+10.0%

Year Ended March 31, 2014

121,323+6.0%

18,489+13.0%

20,541+19.8%

14,995+27.6%Net Income
per share (Yen)

Diluted Net Income
per share (Yen)Year Ended March 31, 2015

103.33－

Year Ended March 31, 2014

91.68

－

(2) Non-Consolidated Financial Position(Millions of Yen)

Total Assets

Net Assets

Equity Ratio

Net assets
per share (yen)As of March 31, 2015

193,828

127,37265.7%

807.62As of March 31, 2014

180,971

117,11764.7%

729.81(Note) Shareholders' equity:

As of March 31, 2015: 127,372 million yen

As of March 31, 2014: 117,117 million yen* 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.
The prerequisite information of actual forecast and other items are on page 3.
For supplemental information, please refer to our website.

Table of Contents for Attached Materials

1. Qualitative Information on Quarterly Results …………..………………………………………………………………………… 2(1) Explanation of Operating Results ………………………………………………………………………………………………. 2(2) Explanation of Financial Position ……………………………………………………………………………………………….. 4(3) Basic policy on distribution of earnings and dividends for current and next term …………………….............................. 5
2. Management Policy …………………………………………………………………………………………………………………. 6(1) Basic management policy ……………………………………………………………………………………………………….. 6(2) Targeting Management Objectives ……………………………………………………………………………………………… 6(3) Mid- and Long- Term Business Strategy and Issues the Company needs to deal with …………………………………… 6
3. Our approach to the selection of Accounting Standards ………………………………………………………………………… 7
4. Consolidated Financial Statements ……………………………………………………………………………………………...... 8(1) Consolidated Balance Sheets ……………………………………………………………………………………………………. 8(2) Consolidated Statements of Income and Statements of Comprehensive Income ………………………………………... 10(3) Consolidated Statements of Changes in Net Assets ……………………………………….. ………………………………. 12(4) Consolidated Statements of Cash Flows ………………………………………………………………………………….…... 14(5) Notes to Consolidated Financial Statements ………………………………………………………………………………..... 15(Notes on Assumption of Going Concern) …………………………………………………………………..…………......15(Changes of accounting policies and accounting estimates, and restatement) ………………………………………..15(Segment and Related Information) ………………………………………………………………………………………...16(Per Share Information) ……………………………………………………………………………………………………... 19(Significant Subsequent Events) …………………………………………………………………………………………….19－1－

1. Qualitative Information on Quarterly Results(1) Explanation of Operating Results
During the year ended March 31, 2015 (from April 1, 2014 to March 31, 2015), the domestic consumption was weak due to theprice hike and the influence of a counter reaction to the rush demand before the consumption tax raise. However, export relatedcompanies improved their earnings by weaker yen and the domestic economy was on the gradual recovery trend.
With regard to our group business, Chemicals Segment was benefited by lower price fuels and weaker yen. As for Performance
Materials Segment, Display Materials and Semiconductor Materials increased their sales due to the products matched to the market
needs. As for Agrochemicals Segment, while domestic sales were affected by tax raise, new paddy rice herbicide recovered the loss.
As for overseas sales, pesticide had steady sales as well as Fluralaner (the active substance of veterinary medical product) was a
big hit. As for Pharmaceutical Segment, domestic “LIVALO” (anti-cholesterol drug) sales decreased due to the influence of genericproducts.
As a result, the sales for this term were 171,206 million yen (an increase of 7,548 million yen from the same term of the previousyear). All operating income, ordinary income and net income were highest ever. Operating income was 25,347 million yen (anincrease of 3,100 million yen). Ordinary income was 26,391 million yen (an increase of 2,667 million yen). Net income was 18,199
million yen (an increase of 1,497 million yen).

Explanations by segments are as below.

Chemicals
As for Basic Chemicals, the sales of melamine (adhesive agent for particle board) decreased both domestically andinternationally, while sales of high purity ammonia increased due to the lower price of naphtha. As for Fine Chemicals, the sales of“TEPIC” (epoxy compound for LED sealants, solder resist, painting) increased due to weaker yen, while “HI-LITE” (chlorinatedisocyanuric acid for sterilizing) had a hard time with price-cutting competition.
As a result, the sales of this segment were 34,263 million yen (a decrease of 1,229 million yen from the same term of theprevious year). Operating income was 1,895 million yen (a decrease of 1 million yen).

Performance Materials“SUNEVER” (LCD alignment coating) mainly for smartphone continued to have healthy sales due to the transition to IPS. The
demand for “ARC®” (bottom anti-reflective coating for semiconductors) and multi-layer process materials increased due to theminiaturization of semiconductors. The demands for BARC and multi-layer process materials increased due to the miniaturization ofsemiconductors. The sales of “SNOWTEX” (silica sol for polishing electronic materials and non-polishing materials) exceeded
previous year for polishing electronic materials.
As a result, the sales of this segment were 49,371 million yen (an increase of 6,538 million yen from the same term of theprevious year). Operating income was 12,019 million yen (an increase of 3,208 million yen).
*ARC® is registered brand of Brewer Science, Inc.

Agrochemicals
With regard to the domestic sales, the sales volume of “ROUNDUP” (non-selective herbicide) and “ALTAIR” (paddy riceherbicide) increased. Steady sales of “TARGA” (crop herbicide) and “PERMIT” (paddy rice and crop herbicide) and especially thelaunch of veterinary medical product including Fluralaner in Europe and the United States of America contributed to the significant
increase of overseas sales.

－2－As a result, the sales of this segment were 45,682 million yen (an increase of 6,551 million yen from the same term of theprevious year). Operating income was 9,244 million yen (an increase of 3,015 million yen).

Pharmaceuticals
Export “LIVALO” had healthy sales mainly in the United States of America and Asia. Domestic “LIVALO” sales drasticallydecreased due to the influence of generic products. 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 8,812 million yen (a decrease of 2,737 million yen from the same term of the previousyear). Operating income was 2,308 million yen (a decrease of 2,631 million yen).

Trading
The sales of display materials related products and agrochemicals products increased.
As a result, the sales of this segment were 54,390 million yen (an increase of 3,738 million yen from the same term of theprevious year). Operating income was 1,679 million yen (an increase of 183 million yen).

Others
The sales of this segment were 20,882 million yen (a decrease of 563 million yen from the same term of the previous year).
Operating loss was 580 million yen (a decrease of 177 million yen).

(Forecast for the next term)(Millions of Yen)
Operating

Ordinary

Profit Attributable to

Net Income

IncomeIncomeOwners of Parent

per share (Yen)Net Sales
Next Term

181,000

26,50027,60020,600130.62*Current Term

171,200

25,30026,40018,200113.99*If the 60 billion yen purchase of treasury stock announced on May 12, 2015 is considered, it will be 131.66 yen.

Business Segment Information(Millions of Yen)
Net Sales
Next Term

Operating Income

Current Term

Next Term

Current Term

Chemicals

35,80034,300

3,600

1,900

Performance Materials

51,70049,40010,80012,000Agrochemicals

48,50045,700

9,600

9,200

Pharmaceuticals

8,500

8,800

2,100

2,300

Trading

60,10054,400

1,900

1,700

Others

21,20020,900500

600

Adjustment‐44,800‐42,300‐2,000‐2,400Total

181,000

171,200

26,50025,300As domestic and overseas economy is unpredictable, forecast for the next term is in critical situation.
However, the Company will implement measures under midterm business plan “Vista 2015 Stage II” and aim to achieve earning－3－

target of FY2015.
Forecast of the next term is 181,000 million yen for net sales, 26,500 million yen for operating income, 27,600 million yen forordinary income and 20,600 million yen for profit attributable to owners of parent. The assumption of naphtha market price is 54,800
yen/kl and 120 yen for a dollar.

(2) Explanation of Financial Position(Position of Assets, Liabilities and Net Assets)
Due to the increase of notes and accounts receivable-trade, stocks and investment securities, assets as of March 31, 2015 were
223,854 million yen (an increase of 15,855 million yen from the previous year).
While liabilities with interest decreased, due to the increase of deferred tax liability, total liabilities as of March 31, 2015 were72,590 million yen (an increase of 2,414 million yen from the previous year).
Net Assets as of March 31, 2015 were 151,263 million yen (an increase of 13,441 million yen from the previous year).
As a result, equity ratio was 66.9%, an increase of 1.2% from the previous year.

(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 year ended March 31, 2015 were 20,452 million yen (23,759 million yen forthe previous year).
Due to the acquisitions on plant and equipment of Performance Materials division, net cash used in investing activities for theyear ended March 31, 2015 were 8,076 million yen (13,471 million yen for the previous year).
Due to the decrease in borrowings and dividends payment, net cash used in financing activities for the year ended March 31,
2015 were 12,127 million yen (11,802 million yen for the previous year).
As a result, cash and cash equivalents at the end of this term were 31,343 million yen, reflecting 337 million yen effect of
exchange rate changes. It increased by 585 million yen from the previous year (30,757 million yen for the previous year).

<Reference>
The transit of Cash Flow indices

Shareholders' equity ratio (%)
Shareholders' equity ratio
on market value basis (%)
Debt repayment ratio (%)
Interest coverage ratio (times)

For the fiscal year ended
March 31, 2011 March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015
60.7
62.4
63.0
65.7
66.9
79.8
1.6
47.7

69.5
1.8
49.7

93.1
1.7
62.0

119.5
1.5
82.6

175.4
1.7
91.5

Stockholders’ equity ratio: stockholders’ equity/total assets
Stockholders’ equity ratio on market value basis: aggregate market value of common stock/total assets
Debt repayment ratio: interest-bearing liabilities/cash flows from operating activities
Interest coverage ratio: cash flows from operating activities/interest payments*1: All indicates are calculated based on the consolidated financial figures.
*2: Aggregate market value of common stock is calculated by multiplying the market price at the end of each fiscal year by the
number of outstanding shares, excluding treasury stock, at the end of each fiscal year.
*3: Interest-bearing liabilities include all liabilities on the consolidated balance sheets that incur interest.

－4－(3) Basic policy on distribution of earnings and dividends for current and next term
The Company’s basic policy of profit allocation is returning to shareholders by improving its value through increasing revenue in themedium and long terms.
In line with our basic policy of profit allocation, the year-ended dividend is scheduled to be 22.00 yen per share. Accordingly, thetotal annual dividend per share for the fiscal year ended March 31, 2015 will become 36.00 yen, which was 30.00 yen in the previous
fiscal year.
The total annual dividend per share for the fiscal year ended March 31, 2016 is scheduled to be 40.00 yen (second quarter: 18.00
yen, year-end: 22.00 yen).

－5－

2. Management Policy(1) Basic management policy
As a group growing with customers, we will strengthen the brand nurtured by our faithful corporate culture and maximize
corporate value through productive activities for the society.

(2) Targeting Management Objectives
Our most important objectives are “Return on Equity (ROE)” which represents the efficiency of managing shareholders’ equityand “Operate Profit Ratio to Sales” which leads to a high-value added company. We will expand our business to increase ourrevenue.

(3) Mid- and Long- Term Business Strategy and Issues the Company needs to deal with
The Company recognized that to achieve financial target for FY2015 by implementing measures based on two basic strategies
established by “Vista 2015 Stage II”, midterm business plan from FY2013 to FY2015, is the most important task.

As for the first strategy “Creating New Products and New Businesses”, veterinary medical product “BRAVECTO”, including
Fluralaner invented by us, launched in Europe in April 2014, followed by the United States of America and other countries. We
will enhance stability of supply to meet increasing future demands. We will also accelerate to expand customers for“Hyper-Branch polymers” and “NANOFIBERGEL”, as well as focus on selling “FCem Series”, the three-dimensional culture forcancer cells. “Hyper-Branch polymers” are hyperbranched organic nanoparticles used as fluoro-polymeric surface modifier,ultra-high refractive index coating materials and transparent fluorine coating. “NANOFIBERGEL” are high performance gelator
aiming to create the market for cosmetics and quasi-drug.

As for the research to create new products, Performance Materials integrated Electronic Materials Research Laboratories andInorganic Materials Research Laboratories as Materials Research Laboratories in October 2014. We will accelerate creating newmaterials through Advanced Material Research Department and Frontier Material Research Department. Advanced Material
Research Department develops materials for existing products and Frontier Material Research Department creates andresearches new performance materials. In the field of life science, we drastically make-over our Biological Research Laboratories.
Research centers for pharmaceutical, compound library and agrochemical are constructed by now. Greenhouse facilities are to
be constructed in March 2017, which will improve the efficiency of agrochemical and pharmaceutical R&D.

As for the second strategy “Pursuit of business structure reforms”, we decided to change the feedstock used to manufactureammonia from naphtha to natural gas in Toyama Plant. This conversion is to be completed in August 2016. As natural gas does
not fluctuate as greatly in price as naphtha, we will pursue stable profitability from ammonia. Expanding overseas business isnecessary for our group to grow. Therefore, we established “Nissan Chemical Product (Shanghai) Co., Ltd.” in China last year,
and the operation started from April 2014. We will incorporate growing market of agrochemical in China by strengthening sales
support and promotion. Considering the fact that the importance of overseas market will increase, we started study abroad
program to generate and secure global-minded human resources. Junior staffs have chance to improve their language and learn
other cultures. We will continue this program to increase staffs who can deal with global business.

－6－For this financial year, we will develop new business plan starting from April 2016 as well as implementing “Vista 2015 Stage II”.
Under Corporate Vision, “A company that contributes to human survival and development”, we will establish strategies forcontinuous growth and corporate value expansion.

Under Corporate Philosophy, “Nissan Chemical Industries, Ltd. contributes to society with superior technology, products, andservices, while striving for harmony with the environment”, we places emphasis on transparency of management, compliancewith laws and social imperative, contribution to environment and society. We aim to become a company that is trusted by all of
our stakeholders.

3. Our approach to the selection of Accounting Standards
The Company will research on trend of IFRS in the country and overseas and correspond properly when applying IFRS.

－7－

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)

As of
March 31, 2014

As ofMarch 31, 2015

AssetsCurrent assets
Cash and deposits

30,75731,343

Notes and accounts receivable-trade
Merchandise and finished goods

54,041
26,775

58,13328,123Work in process
Raw materials and supplies

51
6,353

59
7,885

Accounts receivable - other

2,390

2,097

Short-term loans receivable
Deferred tax assets

706
2,882

841
3,102

Other
Allowance for doubtful accounts

1,477
-22

1,890
-29

125,413

133,448

Buildings and structures
Accumulated depreciation and impairment loss

53,393-33,873

58,217-35,514

Buildings and structures, net
Machinery, equipment and vehicles

19,520110,022

22,702
114,888

Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land-101,402
8,619
28,893-25,319
3,573
9,374

-104,548
10,33930,704-26,876
3,828
9,318

261
-142
118
3,768
44,975

225
-150
74
864
47,128

481
342
427
1,251

4
308
361
674

33,570
26
55
1,265
1,681
-240
36,35882,585207,999

38,711
21
52
2,064
1,940
-187
42,60390,406
223,854

Total current assets
Noncurrent assets
Property, plant and equipment

Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
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 noncurrent assets
Total assets－8－

(Millions of Yen)

As of
March 31, 2014

As ofMarch 31, 2015

Liabilities
Current liabilities
Notes and accounts payable-trade

16,067

15,077

Short-term loans payable
Current portion of long-term loans payable

23,5797,066

22,951
3,090

Income taxes payable
Provision for bonuses

3,512
1,754

3,807
1,827

27

24

Provision for environmental measures
Other

Provision for directors' bonuses

7,646

315
8,940

Current liabilities
Noncurrent liabilities

59,65256,034Long-term loans payable
Deferred tax liabilities

5,450
2,863

9,060
4,621

Provision for business structure improvement-704

Net defined benefit liability
Other

244
1,966

174
1,997

Total noncurrent liabilities
Total liabilities

10,52470,176

16,556
72,590Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

18,942
13,611
98,121-698

18,942
13,611
105,602-584

129,975

137,572

6,138
20
417
6,576
1,269
137,822
207,999

10,676894
639
12,2101,481
151,263
223,854

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
Minority interests
Total net assets
Total liabilities and net assets－9－(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive income- Consolidated Statements of Income(Millions of Yen)

As of
March 31, 2014

As ofMarch 31, 2015

Net sales

163,658

171,206

Cost of sales
Gross profit

103,277
60,381

106,184
65,022

Selling, general and administrative expenses
Operating income

38,134
22,246

39,67525,347

Non-operating income
Interest income

21

20

Dividends income
Equity in earnings of affiliates

638
960

613
1,093

Foreign exchange gains

415

476

968
3,004

697
2,901

280
284
598

211
332
420

-

315

Other
Total non-operating expenses

363
1,527

577
1,857

Ordinary income
Extraordinary income
Extraordinary loss
Product compensation expense
Business structure improvement expenses
Total extraordinary loss

23,723-

26,391
-

-

390
704
1,095

Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

23,723
6,901
-64
6,836
16,887
186
16,701

25,296
7,265
-351
6,914
18,381
182
18,199

Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of noncurrent assets
Plant stop loss
Environmental expenses－10－

- Consolidated Statements of Comprehensive Income(Millions of Yen)
As of
March 31, 2015

As ofMarch 31, 2014
Income before minority interests

16,887

18,381Other comprehensive income
Valuation difference on available-for-sale securities

2,598

4,538

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

924
-

952
221

-1

0

3,521
20,408

5,712
24,094

20,152
255

23,832
261

Share of other comprehensive income ofassociates accounted for using equity method

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests－11－(3) Consolidated Statements of Changes in Net Assets
For the Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(Millions of Yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Retainedearnings

Capital surplus

18,942

13,611

Treasury stocks

91,360-1,053

Total
shareholders'equity122,861-

18,942

13,611

91,360-1,053

122,861

Changes of items during period
Dividends of surplus-4,584-4,584

Net income

16,701

16,701

Purchase of treasury stocks-5,001-5,00100

Disposal of treasury stocks

0

Retirement of treasury stocks△0-5,355

5,355

-

-

-

6,760

354

7,114

18,942

13,611

98,121-698

129,975

Total
accumulated
othercomprehensive
incomeMinority interests

2,707

1,132

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference onof defined benefit
translation
available-for-saleplansadjustment
securities

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

3,541

-834

-

Total
net assets

126,701
-

3,541

-834

-

2,707

1,132

126,701

Changes of items during period
Dividends of surplus-4,584

Net income

16,701

Purchase of treasury stocks-5,001

Disposal of treasury stocks

0

Retirement of treasury stocks-

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

2,596

854

417

3,869

137

4,006

2,596

854

417

3,869

137

11,121

6,138

20

417

6,576

1,269

137,822－12－

For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(Millions of Yen)
Total shareholders' equity
Capital stock

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Retainedearnings

Capital surplus

18,942

13,611

Treasury stocks

98,121-698

213
18,942

13,611

Total
shareholders'equity129,975
213

98,334-698

130,189

Changes of items during period
Dividends of surplus-4,814-4,814

Net income

18,19918,199Purchase of treasury stocks-6,001-6,00100

Disposal of treasury stocks

0

Retirement of treasury stocks-0-6,116

6,116

-

-

-

7,268

114

7,382

18,942

13,611

105,602-584

137,572

Total
accumulated
othercomprehensive
incomeMinority interests

6,576

1,269

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference onof defined benefit
translation
available-for-saleplansadjustment
securities

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

6,138

20

417

Total
net assets

137,822
213

6,138

20

417

6,576

1,269

138,035

Changes of items during period
Dividends of surplus-4,814

Net income

18,199Purchase of treasury stocks-6,001

Disposal of treasury stocks

0

Retirement of treasury stocks-

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

4,538

873

221

5,633

211

5,845

4,538

873

221

5,633

211

13,227

10,676894

639

12,2101,481

151,263－13－

(4) Consolidated Statements of Cash Flows(Millions of Yen)

As of
March 31, 2014

As ofMarch 31, 2015

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation

23,723
8,515

25,2968,452Interest and dividends income
Interest expenses

-660
280

-633
211

Increase (decrease) in provision forbusiness structure improvement-

704

Loss (gain) on disposal of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade

284
3,019

332
-3,775Decrease (increase) in inventories-2,281-2,659

Increase (decrease) in notes and accounts payable-trade
Other-1,529-1,898-950-714

SubtotalInterest and dividends income received

29,454
1,620

26,263
1,386Interest expenses paid
Income taxes paid

-287
-7,027-223-6,97423,75920,452-918
245-2,749-1,6483,077--8,999-170-8,568-253

Net decrease (increase) in short-term loans receivable
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

-400
-478
-13,471-109-574-8,076

-588
4,000

-854
6,700

Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
Purchase of treasury stock of subsidiaries in consolidation
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
Cash and cash equivalents at end of period-5,533-4,584-48-5,001-45-11,802393-1,12031,87830,757-7,066-4,814-50-6,001-40-12,127337
585
30,75731,343

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of stocks of subsidiaries and affiliates
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment－14－(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable.

(Changes of accounting policies and accounting estimates, and restatement)
Effective from the beginning of current consolidated financial year, the Company adopted paragraph 35 of the "AccountingStandard for Retirement Benefits" (ASBJ Statement No.25 on May 17, 2012) and paragraph 67 of the "Guidance on AccountingStandard for Retirement Benefits" (ASBJ Statement No.25 on May 17, 2012).
Affecting the above change, the Company reviewed the calculation method of retirement benefit obligations and service costs.
The Company changed the method of attributing expected benefit to periods primarily from straight-line attribution to benefit
formula basis as well as the decision method of the discount rate.
The term of bond which is the basis of the discount rate determination was changed from calculating with years approximate
to employees' average estimated remaining service years to weighted average discount rate reflecting the estimated payment
term of retirement benefits and its amount.
In accordance with transitional accounting as stipulated in paragraph 37 of the Accounting Standard for Retirement Benefits,
the effect of the changes in the calculation methods of retirement benefit obligations and service costs were adjusted in retained
earnings at the beginning of current consolidated financial year.
As a result, asset for retirement benefit increased by 331 million yen and retained earnings increased by 213 million yen at the
beginning of current consolidated financial year. There was a slight effect on operating income, ordinary income and net income
before taxes for the year ended March 31, 2015.

－15－

(Segment and Related Information)
Segment Information
1. General Information about reportable segments
The Company's reportable segments are components of the Group that engage in business activities, whose operating
results are regularly reviewed by the Board of Directors when making resource allocation and performance assessment
decisions, and for which discrete financial information is available.
Divisions by products and services are located in the headquarter, and each division works out a comprehensive
strategy applicable to their products and services and carries out their business activities.
The Company consists of segments based on divisions as follows:
Main Products

Segment

Basic Chemicals (melamine, sulfuric acid, nitric acid, ammonia, etc.)
Chemicals

Fine Chemicals (epoxy compound for LED sealants, solder resist and painting,flame retardant, chlorinated isocyanuric acid for sterilizing, etc.)
Display Materials (LCD alignment coating, etc.)

Performance
Materials

Semiconductor Materials (bottom anti-reflective coating for semiconductors, etc.)
Inorganic Materials (hard coating materials, electronic information materials, polishing materials, etc.)

Agrochemicals
Pharmaceuticals

Agrochemicals (herbicide, insecticide, fungicide, fungicide and insecticide, plant growth regulator)
active substance of veterinary medical product
LIVALO (anti-cholesterol drug), etc.
Custom Chemicals (custom manufacturing and process services for pharmaceutical companies)

Trading

Trading, etc.

Otherstransportation, landscaping, engineering, fertilizer, etc.

2. Basis of measurement of reported segment income or loss, segment assets and other material items
The accounting policies for the reportable segments are consistent with the Company's accounting policies used in the
preparation of its consolidated financial statements.
Intersegment sales and income (loss) are recognized based on current market prices.

－16－

3. Information Regarding Sales, Income (Loss) of Reportable Segments
1) For the Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)
Agrochemicals(Millions of Yen)

Chemicals

Performance
Materials

Pharmaceuticals

Customers

26,461

37,61736,168

11,49340,503

11,413

163,655－

Intersegment

9,031

5,214

2,961

56

10,14810,03237,445-37,445－

Total Sales

35,49342,832

39,13011,55050,651

21,446201,103-37,445

163,658

Trading

OthersAdjustment Consolidated
(1)
Total

Total

Sales
163,658

Operating Income (loss)

1,897

8,810

6,229

4,940

1,495

757

24,130-1,88322,246

Segment Assets

25,77737,98048,56912,69918,1099,082

152,22155,778207,999

1,417

3,153

1,405

1,190

85

372

7,625

257

7,882

6

624

－

2

－

633

－

633

4,275

1,342

624

27

377

7,879

906

8,786

Other items
Depreciation andamortization

Amortization of goodwill－
Increase of property,
plant and equipment
1,231
and intangible assets
Notes (1): The adjustments are as follows:

1) The negative 1,883 million yen adjustment in segment income includes negative 398 million yen in intersegment eliminations and negative 1,485
million yen corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.
2) The 55,778 million yen adjustment in segment assets includes negative 9,738 million yen in inter-segment asset and liability eliminations and 65,516
million yen in corporate assets not attributable to any reportable segment.
The corporate assets are mainly group administrative assets which do not belong to segments.
3) The 257 million yen adjustment in depreciation and amortization is corporation expenses.
4) The 906 million yen adjustment in increase of property, plant and equipment and intangible assets is corporate assets.
2) For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Agrochemicals(Millions of Yen)

Chemicals

Performance
Materials

Pharmaceuticals

Customers

25,072

43,66842,2298,759

41,154

10,321

171,206－

Intersegment

9,190

5,702

3,452

53

13,235

10,561

42,195-42,195－

Total Sales

34,26349,37145,682

8,812

54,39020,882

213,401-42,195

171,206

Operating Income (loss)

1,895

12,019

9,244

2,308

1,679

580

27,727-2,38025,347

Segment Assets

25,17343,92653,577

11,42618,486

9910

162,501

61,353

223,854

1,384

3,561

1,374

902

70

375

7,670

305

7,975

5

468

－

2

－

476

－

476

5,244

1,765

415

19

338

9,176

620

9,796

Trading

OthersAdjustment Consolidated
(1)
Total

Total

Sales
171,206

Other items
Depreciation andamortization

Amortization of goodwill－
Increase of property,
plant and equipment
1,393
and intangible assets
Notes (1): The adjustments are as follows:

1) The negative 2,380 million yen adjustment in segment income includes negative 386 million yen in intersegment eliminations and negative 1,993
million yen corporate expenses not attributable to any reportable segment.
The corporate expenses are mainly group administrative expenses which do not belong to segments.
2) The 61,353 million yen adjustment in segment assets includes negative 11,165 million yen in inter-segment asset and liability eliminations and 72,518
million yen in corporate assets not attributable to any reportable segment.
The corporate assets are mainly group administrative assets which do not belong to segments.
3) The 305 million yen adjustment in depreciation and amortization is corporation expenses.
4) The 620 million yen adjustment in increase of property, plant and equipment and intangible assets is corporate assets.

－17－

Related Information
For the Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)
Sales by region/country(Millions of Yen)
Europe andConsolidated
the United
Total
States

Japan

Asia

110,00241,833

11,823

163,658

Note: Sales are classified to either countries or regions where coustomers are located.
For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Sales by region/country(Millions of Yen)
Europe andConsolidated
the United
Total
States

Japan

Asia

104,234

49,597

17,373

171,206

Note: Sales are classified to either countries or regions where coustomers are located.

Information regarding impairment loss on noncurrent assets by reportable segments
For the Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)

Impairment loss

Chemicals

Performance
Materials

Agrochemicals

－

75

－

Pharmaceuticals－

Trading

Others－(Millions of Yen)
Consolidated
Adjustment
Total

Total

－

75

－

75

For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Not applicable.
Information regarding goodwill and unamortized balance by reportable segments
For the Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)

Balance as ofMarch 31, 2014

Chemicals

Performance
Materials

Agrochemicals

－

5

468

Pharmaceuticals

Trading－

Others

Total

－

7

(Millions of Yen)
Consolidated
Adjustment
Total

481

－

481

For the Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)

Balance as ofMarch 31, 2015

Chemicals

Performance
Materials

Agrochemicals

－

－

－

Pharmaceuticals

－

－18－

Trading

Others4(Millions of Yen)
Consolidated
Total

Total

－

Adjustment

4

－

4

(Per Share Information)(Yen)
Year Ended March 31, 2014 Year Ended March 31, 2015
Net asset per share

850.91

949.71

Net income per share

102.11113.99Notes:
1. Since residual securities do not exist, diluted ne income per share is not presented.
2. Net income per share is calculated on the following basis.
(Millions of Yen)
Year Ended March 31, 2014 Year Ended March 31, 2015
Net income per share
Net income

16,701

18,199Amounts not allocated to ordinary shares－－

Net income allocated to ordinary shares
Average number of ordinary shares
outstanding during each year

16,701

18,199163,564,898

159,654,159

3. Net asset per share is calculated on the following basis.
(Millions of Yen)
Year Ended March 31, 2014 Year Ended March 31, 2015
Net asset per share

137,822

151,263

Amount deducted from net asset

1,269

1,481

(Minority interest)
Net asset as of year end allocated toordinary shares
Number of ordinary shares as of year
end used to calculate net asset per share(1,269)(1,481)

136,552

149,782

160,477,968

157,713,321(Significant Subsequent Events)
The Company has decided to repurchase its shares in the market under Article 156 of the Japanese Corporatio
as applied pursuant to Article 165, Paragraph 3 of the same Act, at the board of Director’s meeting held on May
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 2,500,000 shares(Rate of the maximum shares to be acquired to the total outstanding shares: 1.59%)(3) Total amount: Up to 6,000,000,000 yen(4) Period of repurchase: From May 13, 2015 to August 31, 2015
(For reference)
Number of treasury shares as of March 31, 2015
-Total number of shares issued (excluding treasury shares): 157,713,321 shares-Number of treasury shares: 286,679 shares－19－