Interim report
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CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll RRRRReeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee SSSSSiiiiixxxxx MMMMMooooonnnnnttttthhhhhsssss EEEEEnnnnndddddeeeeeddddd SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222255555 (((((JJJJJPPPPPGGGGGAAAAAAAAAAPPPPP))))) November 10, 2025 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: NOMURA Hiroshi, Head of Finance and Accounting Department Tel. +81 3 4463 8401 Scheduled submission date of semi-annual securities report: November 11, 2025 Scheduled dividend payment date: December 8,2025 Supplemental information: Yes Financial results meeting : Yes (For institutional investors and analysts) (Amounts rounded down to the nearest million yen) 11111..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll RRRRReeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee SSSSSiiiiixxxxx MMMMMooooonnnnnttttthhhhhsssss EEEEEnnnnndddddeeeeeddddd SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222255555 (((((FFFFFrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 0000011111,,,,, 22222000002222255555 tttttooooo SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222255555))))) (1) Consolidated Operating Results (% indicates the rate of increase/decrease against the same period of the previous year) Net sales Operating income Ordinary income Net income attributable to owners of parent Million yen % Million yen % Million yen % Million yen % Six months ended September 30, 2025 130,094 10.1 29,598 4.4 29,788 6.6 22,827 11.2 Six months ended September 30, 2024 118,185 11.8 28,344 17.6 27,945 6.7 20,522 5.3 (Note) Comprehensive income: Six months ended September 30, 2025 : 25,943 million yen ,39.1% Six months ended September 30, 2024 : 18,644 million yen ,(17.4%) Basic earnings per share Diluted net income per share Yen Yen Six months ended September 30, 2025 168.45 － Six months ended September 30, 2024 148.78 － (2) Consolidated Financial Position Total assets Net assets Equity ratio Million yen Million yen % As of September 30, 2025 322,238 241,366 73.9 As of March 31, 2025 330,763 236,180 70.5 (Reference) Shareholders' equity: As of September 30, 2025 : 238,015 million yen As of March 31, 2025 : 233,291 million yen 22222..... CCCCCaaaaassssshhhhh DDDDDiiiiivvvvviiiiidddddeeeeennnnndddddsssss Cash dividends per share First quarter Second quarter Third quarter Year-end Annual Yen Yen Yen Yen Yen Year ended March 31, 2025 － 70.00 － 104.00 174.00 Year ending March 31, 2026 － 70.00 Year ending March 31, 2026 (Outlook) － 110.00 180.00 (Note) Revision of the latest released dividend outlook: Yes Please refer to "Revision of Financial Results Outlook and Dividend Outlook" for details. 33333..... OOOOOuuuuutttttlllllooooooooookkkkk ooooofffff CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll RRRRReeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee FFFFFiiiiissssscccccaaaaalllll YYYYYeeeeeaaaaarrrrr EEEEEnnnnndddddiiiiinnnnnggggg MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222266666 (((((FFFFFrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 0000011111,,,,, 22222000002222255555 tttttooooo MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222266666))))) (% indicates the rate of increase/decrease against the same period of the previous year) Net sales Operating income Ordinary income Net income attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Year ending March 31, 2026 272,200 8.3 59,000 3.8 59,000 1.7 44,000 2.2 328.22 (Note) Revision of the latest released outlook of financial results: Yes Please refer to "Revision of Financial Results Outlook and Dividend Outlook" for details.
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44444..... NNNNNooooottttteeeeesssss (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 : None 2. Changes of accounting policies other than the above : None 3. Changes in accounting estimates : None 4. Restatements : None (4) Number of shares outstanding (common shares) 1. Number of shares outstanding (including treasury shares) As of September 30, 2025 : 136,800,000 shares As of March 31, 2025 : 136,800,000 shares 2. Number of treasury shares As of September 30, 2025 : 1,944,827 shares As of March 31, 2025 : 517,787 shares 3. Average number of shares outstanding As of September 30, 2025 : 135,511,720 shares As of September 30, 2024 : 137,933,538 shares (Note) The Company has introduced “Board Benefit Trust (BBT)” based on the resolution of Board of Directors' meeting held on July 30, 2019.The shares held by the Trust are included in the number of treasury shares at the end of the period, and they are included in the number of treasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by the Trust (included in treasury shares) at the end of the period was 132,200 shares. In addition, the average number of shares held by the Trust during the period was 134,350 shares. This is not included in the average number of shares outstanding. * Presentation regarding implementation status of quarterly(Semi-annual) review procedures The financial release is not subject to quarterly(Semi-annual) 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.
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1 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 (Additional information) ........................................................................................................................................ 10 (Segment Information) ......................................................................................................................................... 11 (Significant Subsequent Events) .......................................................................................................................... 12
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2 11111..... QQQQQuuuuuaaaaallllliiiiitttttaaaaatttttiiiiivvvvveeeee IIIIInnnnnfffffooooorrrrrmmmmmaaaaatttttiiiiiooooonnnnn ooooonnnnn QQQQQuuuuuaaaaarrrrrttttteeeeerrrrrlllllyyyyy RRRRReeeeesssssuuuuullllltttttsssss (1) Business Performance During the second quarter of the current fiscal year (April 01, 2025 to September 30, 2025), the global economy was supported by active investment in generative AI and fiscal and monetary policies in various countries. However, the situation remained uncertain due to factors such as the broad tariff measures implemented by the United States. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals and Fine Chemicals increased. In the Performance Materials Segment, sales of Semiconductor Materials were strong, and sales of Display Materials and Inorganic Materials increased. In the Agricultural Chemicals Segment, sales of both domestic and overseas increased. In the Healthcare Segment, sales decreased. As a result, both sales and each income exceeded 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 FY2024 2Q FY2025 Year-on-Year Change 2Q FY2025 (Outlook) Change from Outlook Sales 118,185 130,094 +11,908 121,900 +8,194 Operating income 28,344 29,598 +1,253 28,300 +1,298 Ordinary income 27,945 29,788 +1,843 27,100 +2,688 Net income attributable to owners of parent 20,522 22,827 +2,305 20,600 +2,227 Explanations by segments are as below. TTTTThhhhheeeee CCCCChhhhheeeeemmmmmiiiiicccccaaaaalllllsssss SSSSSeeeeegggggmmmmmeeeeennnnnttttt In Basic Chemicals, sales of high purity sulfuric acid (agent used for cleaning semiconductor), urea, and AdBlue®* (high-grade urea solution) increased. In Fine Chemicals, sales of "FINEOXOCOL" (cosmetics, etc.) and environmental related products (sterilizing and disinfecting agents for pools and septic tanks, etc.) increased. As a result, sales of this segment were 18,830 million yen (an increase of 978 million yen from the same period of the previous fiscal year) and operating loss was 97 million yen (improved by 195 million yen). Compared to the outlook (Note), sales and operating income were below 0.3 billion yen. * AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA). (Note) The outlook is described on page 19 of the FY2024 Presentation Materials (announced on May 15, 2025). TTTTThhhhheeeee PPPPPeeeeerrrrrfffffooooorrrrrmmmmmaaaaannnnnccccceeeee MMMMMaaaaattttteeeeerrrrriiiiiaaaaalllllsssss SSSSSeeeeegggggmmmmmeeeeennnnnttttt In Display Materials, sales of "SUNEVER" (LCD alignment coating) increased. In Semiconductor Materials, sales of anti-reflective coating for semiconductors (ARC®*) and multi-layer process materials (OptiStack®*) increased significantly. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hard coating increased. As a result, sales of this segment were 54,417 million yen (an increase of 5,805 million yen) and operating income was 17,367 million yen (an increase of 2,838 million yen). Compared to the outlook (Note), sales were above 2.4 billion yen and operating income was above 1.1 billion yen. * ARC® and OptiStack® are registered trademarks of Brewer Science, Inc. (Note) The outlook is described on page 19 of the FY2024 Presentation Materials (announced on May 15, 2025).
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3 TTTTThhhhheeeee AAAAAgggggrrrrriiiiicccccuuuuullllltttttuuuuurrrrraaaaalllll CCCCChhhhheeeeemmmmmiiiiicccccaaaaalllllsssss SSSSSeeeeegggggmmmmmeeeeennnnnttttt Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) remained flat compared to the previous fiscal year. In Japanese domestic market, sales of "ALTAIR" (paddy rice herbicide) increased, driven by increased demand due to rising rice prices. In the overseas market, sales of "LEIMAY" (fungicide) and "TARGA" (herbicide) were firm. As a result, sales of this segment were 42,273 million yen (an increase of 3,082 million yen) and operating income was 11,975 million yen (a decrease of 2,431 million yen). Compared to the outlook (Note), sales were above 3.6 billion yen and operating income was above 0.3 billion yen. (Note) The outlook is described on page 19 of the FY2024 Presentation Materials (announced on May 15, 2025). TTTTThhhhheeeee HHHHHeeeeeaaaaalllllttttthhhhhcccccaaaaarrrrreeeee SSSSSeeeeegggggmmmmmeeeeennnnnttttt Sales of "LIVALO" (anti-cholesterol drug) increased in the overseas market. In "Custom Chemicals" (solution proposal business and joint development business), sales decreased. As a result, sales of this segment were 2,831 million yen (a decrease of 463 million yen) and operating income was 695 million yen (a decrease of 592 million yen). Compared to the outlook (Note), sales were above 0.2 billion yen and operating income was above 0.2 billion yen. (Note) The outlook is described on page 63 and 64 of the FY2024 Presentation Materials (announced on May 15, 2025). TTTTTrrrrraaaaadddddiiiiinnnnnggggg Sales of this segment were 58,792 million yen (an increase of 2,526 million yen) and operating income was 1,955 million yen (a decrease of 67 million yen). Compared to the outlook (Note), sales were above 2.2 billion yen and operating income was above 0.4 billion yen. (Note) The outlook is described on page 19 of the FY2024 Presentation Materials (announced on May 15, 2025). OOOOOttttthhhhheeeeerrrrrsssss Sales of this segment were 14,845 million yen (an increase of 2,807 million yen) and operating income was 789 million yen (an increase of 755 million yen). (2) Financial Position (Position of Assets, Liabilities and Net Assets) Total assets as of September 30, 2025 was 322,238 million yen (a decrease of 8,524 million yen from March 31, 2025). It is mainly due to the decrease notes and accounts receivable - trade, though cash and deposits increased. Total liabilities as of September 30, 2025 was 80,872 million yen (a decrease of 13,709 million yen). It is mainly due to the decrease of short-term loans payable and commercial papers. Net assets as of September 30, 2025 was 241,366 million yen (an increase of 5,185 million yen). As a result of these factors, equity ratio was 73.9% (an increase of 3.4% from March 31, 2025). (Position of Cash Flows) Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and change in working capital, net cash provided by operating activities for the six months ended September 30, 2025 was 48,711 million yen (46,153 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, 2025 was 8,085 million yen (7,046 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, 2025 was 35,041 million yen (31,087 million yen for the same period of the previous year). Cash and cash equivalents at the end of this period increased 6,819 million yen from March 31, 2025 after adjusting for the 1,234 million yen of increase as an effect of exchange rate change. The balance stood at 34,274 million yen (30,449 million yen for the same period of the previous year).
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4 (3) Outlook of Consolidated Financial Results and Other Forward-looking Information Outlook for the year ending March 31, 2026 was revised as follows based on the cumulative second quarter and demand forecast. The exchange rate for the third quarter and beyond is assumed to be 145 yen to the U.S. dollar. Revision of consolidated financial results’outlook for the year ending March 31, 2026 (April 01, 2025 to March 31, 2026) (Billion yen) Previous outlook(A) Revised outlook(B) Change (B-A) Rate of change (%) (Reference) Results for the previous fiscal year Sales 262.2 272.2 +10.0 +3.8% 251.4 Operating income 57.6 59.0 +1.4 +2.4% 56.8 Ordinary income 57.3 59.0 +1.7 +3.0% 58.0 Net income attributable to owners of parent 43.1 44.0 +0.9 +2.1% 43.0 Basic earnings per share 319.43 yen 328.22 yen +8.79 yen +2.8% 313.26 yen Revision of consolidated sales and operating income outlook by segments for the year ending March 31, 2026 (Billion yen) Sales Operating income Previous Revised Previous Revised Chemicals 40.1 39.6 1.2 0.8 Performance Materials 106.0 109.7 30.9 32.1 Agricultural Chemicals 92.0 95.9 25.3 26.0 Healthcare 5.2 5.3 1.4 1.5 Trading 121.0 121.6 3.4 3.6 Others 31.5 31.8 1.2 1.5 Adjustment (133.6) (131.7) (5.8) (6.5) Total 262.2 272.2 57.6 59.0 (4) Basic Policy on Distribution of Earnings The Company’s basic policy of profit allocation is returning to shareholders by improving company value through increasing revenue in the medium and long terms. In medium-term business plan "Vista2027" Stage Ⅱ launched from April 2025, the company aims to realize dividend payout ratio to be 55% or more and total payout ratio to be 75% or more after FY2025.
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5 22222..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll SSSSStttttaaaaattttteeeeemmmmmeeeeennnnntttttsssss (1) Consolidated Balance Sheets (Million yen) As of March 31, 2025 As of September 30, 2025 Asset Current assets Cash and deposits 27,454 34,274 Notes and accounts receivable - trade, and contract assets 89,131 73,875 Merchandise and finished goods 57,505 58,149 Work in process 19 257 Raw materials and supplies 22,624 21,189 Accounts receivable - other 2,146 1,815 Short-term loans receivable 2,257 573 Other 9,277 6,869 Allowance for doubtful accounts (64) (66) Total current assets 210,352 196,939 Non-current assets Property, plant and equipment Buildings and structures 89,171 91,478 Accumulated depreciation and impairment loss (55,383) (56,433) Buildings and structures, net 33,788 35,044 Machinery, equipment and vehicles 176,436 179,667 Accumulated depreciation and impairment loss (155,323) (158,526) Machinery, equipment and vehicles, net 21,113 21,140 Tools, furniture and fixtures 45,732 48,466 Accumulated depreciation and impairment loss (41,561) (42,141) Tools, furniture and fixtures, net 4,170 6,324 Land 8,867 8,866 Leased assets 123 123 Accumulated depreciation (10) (13) Leased assets, net 113 110 Construction in progress 4,370 4,349 Total property, plant and equipment 72,424 75,835 Intangible assets Software 3,511 3,400 Other 9,951 9,439 Total intangible assets 13,463 12,840 Investments and other assets Investment securities 24,353 26,461 Long-term loans receivable 133 123 Deferred tax assets 567 592 Net defined benefit asset 4,782 4,778 Other 4,742 4,723 Allowance for doubtful accounts (56) (55) Total investments and other assets 34,523 36,624 Total non-current assets 120,411 125,299 Total assets 330,763 322,238
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6 (Million yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 19,877 20,565 Short-term loans payable 19,987 11,073 Commercial papers 8,996 3,998 Current portion of long-term loans payable 514 448 Income taxes payable 9,957 6,592 Provision for bonuses 2,576 2,730 Provision for loss on business of subsidiaries and affiliates 213 12 Other 17,096 19,214 Total current liabilities 79,218 64,635 Non-current liabilities Bonds payable 10,000 10,000 Long-term loans payable 977 579 Deferred tax liabilities 1,063 2,155 Provision for share-based remuneration for directors (and other officers) 264 258 Net defined benefit liability 542 601 Other 2,515 2,643 Total non-current liabilities 15,363 16,237 Total liabilities 94,582 80,872 Net assets Shareholders' equity Capital stock 18,942 18,942 Capital surplus 13,613 13,613 Retained earnings 192,928 201,568 Treasury shares (2,590) (9,055) Total shareholders' equity 222,893 225,068 Accumulated other comprehensive income Valuation difference on available-for-sale securities 7,035 8,576 Foreign currency translation adjustment 1,788 2,902 Remeasurements of defined benefit plans 1,573 1,468 Total accumulated other comprehensive income 10,397 12,947 Non-controlling interests 2,889 3,350 Total net assets 236,180 241,366 Total liabilities and net assets 330,763 322,238
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7 (2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income - Consolidated Statements of Income (Million yen) Six Months Ended September 30, 2024 Six Months Ended September 30, 2025 Net sales 118,185 130,094 Cost of sales 61,267 68,253 Gross profit 56,918 61,840 Selling, general and administrative expenses 28,573 32,242 Operating income 28,344 29,598 Non-operating income Interest income 126 84 Dividend income 465 1,086 Equity in earnings of affiliates 143 161 Other 884 447 Total non-operating income 1,619 1,779 Non-operating expenses Interest expenses 345 222 Loss on disposal of non-current assets 342 565 Bond issuance costs 53 0 Plant stop losses 249 127 Foreign exchange losses 833 447 Other 193 226 Total non- operating expenses 2,019 1,589 Ordinary income 27,945 29,788 Extraordinary income Gain on receipt of contingent consideration 821 － Total extraordinary income 821 － Extraordinary losses Total extraordinary losses － － Income before income taxes and non-controlling interests 28,767 29,788 Income taxes - current 8,435 6,191 Income taxes - deferred 143 432 Total income taxes 8,579 6,624 Net income 20,187 23,164 Net income attributable to non-controlling interests (334) 336 Net income attributable to owners of parent 20,522 22,827
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8 - Consolidated Statements of Comprehensive Income (Million yen) Six Months Ended September 30, 2024 Six Months Ended September 30, 2025 Net income 20,187 23,164 Other comprehensive income Valuation difference on available-for-sale securities (271) 1,540 Foreign currency translation adjustment (1,199) 1,343 Remeasurements of defined benefit plans, net of tax (71) (105) Share of other comprehensive income of entities accounted for using equity method (0) 0 Total other comprehensive income (1,543) 2,779 Comprehensive income 18,644 25,943 (Comprehensive income attributable to) Owners of parent 19,108 25,377 Non-controlling interests (463) 566
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9 (3) Consolidated Statements of Cash Flows (Million yen) Six Months Ended September 30, 2024 Six Months Ended September 30, 2025 Cash flows from operating activities Income before income taxes and non-controlling interests 28,767 29,788 Depreciation 6,145 6,892 Gain on receipt of contingent consideration (821) － Amortization of goodwill 18 68 Interest and dividend income (591) (1,170) Interest expenses 345 222 Loss (gain) on disposal of non-current assets 342 565 Decrease (increase) in notes and accounts receivable - trade 19,831 15,649 Decrease (increase) in inventories (3,306) 829 Increase (decrease) in notes and accounts payable - trade (3,420) 356 Other 3,200 3,190 Subtotal 50,511 56,392 Interest and dividend income received 1,792 2,058 Interest expenses paid (326) (219) Income taxes paid (5,823) (9,519) Net cash provided by (used in) operating activities 46,153 48,711 Cash flows from investing activities Purchase of investment securities (66) (115) Proceeds from sales of investment securities 1 － Proceeds from sale of shares of subsidiaries 276 － Purchase of property, plant and equipment (8,533) (8,477) Payments for retirement of property, plant and equipment (330) (327) Purchase of intangible assets (981) (605) Proceeds from contingent consideration 2,633 － Net decrease (increase) in short-term loans receivable 453 1,671 Purchase of long-term prepaid expenses (551) (39) Other 51 (192) Net cash provided by (used in) investing activities (7,046) (8,085) Cash flows from financing activities Net increase (decrease) in short-term loans payable (22,724) (8,776) Net increase (decrease) in commercial papers － (4,997) Repayments of long-term loans payable (317) (464) Proceeds from issuance of bonds 10,000 － Cash dividends paid (13,043) (14,187) Dividends paid to non-controlling interests － (105) Share repurchase (5,000) (6,499) Other (2) (9) Net cash provided by (used in) financing activities (31,087) (35,041) Effect of exchange rate change on cash and cash equivalents (325) 1,234 Net increase (decrease) in cash and cash equivalents 7,694 6,819 Cash and cash equivalents at beginning of period 22,738 27,454 Increase in cash and cash equivalents from newly consolidated subsidiary 17 － Cash and cash equivalents at end of period 30,449 34,274
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10 (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 7,200 shares to the eligible party on April 25, 2025 and July 25, 2025 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 34 million yen during the second quarter of current consolidated fiscal year. Also, the Company repurchased 1,434,100 treasury shares based on the resolution of Board of Directors' meeting held on March 6, 2025 and May 15, 2025. As a result, treasury shares increased by 6,498 million yen during the second quarter of current consolidated fiscal year. (Additional information) (Change of fiscal year-end of consolidated subsidiaries) With respect to our consolidated subsidiary Nippon Polytech Corp. having a fiscal year-end of December 31, we previously used their financial statements as of December 31 to prepare the consolidated financial statements and made necessary consolidation adjustments for significant transactions among consolidated companies that occurred between December 31 and the consolidated fiscal year-end. Effective April 1, 2025, the fiscal year-end of these consolidated subsidiary was changed to March 31 to align with the consolidated fiscal year-end, and we have adopted the method to adjust earnings for the period between January 1, 2025 to March 31, 2025 through the consolidated statements of income, and accordingly the period subject to consolidation for the fiscal year ended March 31, 2026 is 15 months from January 1, 2025 to March 31, 2026. The impact of this change is minor.
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11 (Segment Information) 1. Information Regarding Sales, Income (Loss) of Reportable Segments 1) For the Six Months Ended September 30, 2024 (From April 01, 2024 to September 30, 2024) (Million yen) Chemicals Performance Materials Agricultural Chemicals Healthcare Trading Others Total Adjustment (Note 2) Consolidated Total Net Sales Sales to outside customers (Note 1) 11,850 36,002 32,141 3,220 42,955 4,526 130,696 (12,510) 118,185 Intersegment Sales 6,001 12,608 7,049 74 13,311 7,512 46,557 (46,557) － Total Sales 17,851 48,611 39,190 3,294 56,266 12,038 177,253 (59,067) 118,185 Segment Income or Loss (Operating Income or Loss) (292) 14,528 14,406 1,288 2,022 34 31,987 (3,642) 28,344 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) (12,510) million yen adjustment in sales to outside customers includes (12,723) million yen in the elimination of agent transactions, and 212 million yen sales not attributable to any reporting segment. (2) (3,642) million yen adjustment in segment income includes (707) million yen in intersegment eliminations, 214 million yen sales not attributable to any reporting segment, and (3,149) million yen corporate expenses not attributable to any reportable segment. The corporate expenses are mainly group administrative expenses which do not belong to any segment. 2) For the Six Months Ended September 30, 2025 (From April 01, 2025 to September 30, 2025) (Million yen) Chemicals Performance Materials Agricultural Chemicals Healthcare Trading Others Total Adjustment (Note 2) Consolidated Total Net Sales Sales to outside customers (Note 1) 12,467 39,430 36,661 2,783 44,404 6,835 142,582 (12,488) 130,094 Intersegment Sales 6,362 14,986 5,611 48 14,388 8,010 49,407 (49,407) － Total Sales 18,830 54,417 42,273 2,831 58,792 14,845 191,990 (61,896) 130,094 Segment Income or Loss (Operating Income or Loss) (97) 17,367 11,975 695 1,955 789 32,685 (3,086) 29,598 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) (12,488) million yen adjustment in sales to outside customers includes (12,526) million yen in the elimination of agent transactions, and 37 million yen sales not attributable to any reporting segment. (2) (3,086) million yen adjustment in segment income includes (130) million yen in intersegment eliminations, 37 million yen sales not attributable to any reporting segment, and (2,994) million yen corporate expenses not attributable to any reportable segment. The corporate expenses are mainly group administrative expenses which do not belong to any segment.
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12 2. Matters related to changes in reporting segments (Changes in Method for Calculating Earnings for Reporting Segments) From the beginning of the second quarter of the current fiscal year, the Company has changed the allocation method for certain corporate expenses in order to more accurately reflect the performance of each reportable segment. Furthermore, the segment information for the second quarter of the previous fiscal year has been restated based on the changed allocation method for comparative purposes. (Significant Subsequent Events) The Company, at the Board of Director’s meeting held on October 29, 2025, has decided to cancel its own shares under Article 178 of the Companies Act. (1) Class of shares to be cancelled : Common shares of company (2) Number of shares to be cancelled : 1,000,000 shares (0.73% of issued shares prior to cancellation) (3) Scheduled date of cancellation : November 10, 2025 Reference Number of issued shares subsequent to cancellation (including treasury shares) : 135,800,000 shares