Financial Results for the 1Q of FY2025

(JPGAAP)

August 8 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 dividend payment date:―

Supplemental information: Yes

Financial results meeting : Yes (For institutional investors and analysts)

(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (From April 01, 2025 to June 30, 2025)

   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
      Three months ended June 30, 2025 Three months ended June 30, 2024	Million yen 69,871 58,688	% 19.1 6.8	Million yen 18,097 14,426	% 25.4 (3.8)	Million yen 18,139 16,029	% 13.2 (6.0)	Million yen 13,892 11,590	% 19.9 (5.3)

      (Note) Comprehensive income: Three months ended June 30, 2025 : 16,500 million yen, 25.1%

      Three months ended June 30, 2024 : 13,194 million yen, (10.4%)

      	Basic earnings per share	Diluted net income per share
      Three months ended June 30, 2025 Three months ended June 30, 2024	Yen 102.20 83.78	Yen - -

   2. Consolidated Financial Position

   	Total assets	Net assets	Equity ratio
   	Million yen	Million yen	%
   As of June 30, 2025	334,500	235,556	69.4
   As of March 31, 2025	330,763	236,180	70.5

   (Reference) Shareholders' equity: As of June 30, 2025 : 232,200 million yen

   As of March 31, 2025 : 233,291 million yen

2. Cash Dividends

   	Cash dividends per share
   	First quarter	Second quarter	Third quarter	Year-end	Annual
   Year ended March 31, 2025 Year ending March 31, 2026	Yen - -	Yen 70.00	Yen -	Yen 104.00	Yen 174.00
   Year ending March 31, 2026(Outlook)		70.00	-	106.00	176.00

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

3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2026 (From April 01, 2025 to March 31, 2026)

   (% 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
   Six months ending September 30, 2025	Million yen 121,900	% 3.1	Million yen 28,300	% (0.2)	Million yen 27,100	% (3.0)	Million yen 20,600	% 0.4	Yen 152.52
   Year ending March 31, 2026	262,200	4.3	57,600	1.3	57,300	(1.2)	43,100	0.1	319.43

   (Note) Revision of the latest released outlook of financial results: None

4. Notes

1. Changes in significant consolidated subsidiaries

   (Changes in specified subsidiaries involving changes in scope of consolidation) : None

2. Application of special accounting treatment to preparation of quarterly financial statements : None

3. Changes of accounting policies and accounting estimates, and restatement

   1. Changes of accounting policies due to revisions of accounting standards : 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 June 30, 2025 : 136,800,000 shares

   As of March 31, 2025 : 136,800,000 shares

2. Number of treasury shares

   As of June 30, 2025 : 1,199,177 shares

   As of March 31, 2025 : 517,787 shares

3. Average number of shares outstanding

As of June 30, 2025 : 135,927,758 shares

As of June 30, 2024 : 138,352,172 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 135,300 shares.

In addition, the average number of shares held by the Trust during the period was 135,983 shares. This is not included in the average number of shares outstanding.

• Review of quarterly consolidated financial statements by certified public accountants or auditing corporation: None

• 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 4

   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

(1) Business Performance

During the first quarter of the current fiscal year (April 01, 2025 to June 30, 2025), the domestic economy showed only a moderate recovery because of inflation and uncertainty surrounding US economic policy, while inbound demand expanded and the income environment improved. 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 agrochemicals and active ingredients for veterinary pharmaceuticals increased. In the Healthcare Segment, sales increased.

As a result, both sales and each income exceeded the same period of previous fiscal year and the outlook announced in May.

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

(Note) The outlook is described on page 10 of the FY2024 Presentation Materials (announced on May 15, 2025). Explanations by segments are as below.

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 environmental related products (sterilizing and disinfecting agents for pools and septic tanks, etc.) and "FINEOXOCOL" (cosmetics, etc.) increased.

As a result, sales of this segment were 9,338 million yen (an increase of 446 million yen from the same period of the previous fiscal year) and operating income was 709 million yen (an increase of 25 million yen). Compared to the outlook (Note), sales were below 0.1 billion yen and operating income was below 0.1 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).

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®*) increased. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hard coating increased.

As a result, sales of this segment were 25,858 million yen (an increase of 2,377 million yen) and operating income was 8,201 million yen (an increase of 1,081 million yen). Compared to the outlook (Note), sales were above 0.2 billion yen and operating income was below 0.1 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).

Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased. In Japanese domestic market, sales of "ALTAIR"(herbicide for paddy rice) and "GRACIA"(insecticide) were firm. In the overseas market, sales of "LEIMAY" (fungicide) and "TARGA" (herbicide) grew.

As a result, sales of this segment were 26,589 million yen (an increase of 6,232 million yen) and operating income was 8,648 million yen (an increase of 1,657 million yen). Compared to the outlook (Note), sales were above 3.4 billion yen and operating income was above 1.0 billion yen.

(Note) The outlook is described on page 19 of the FY2024 Presentation Materials (announced on May 15, 2025).

Sales of "LIVALO" (anti-cholesterol drug) increased in the overseas market. Sales of "Custom Chemicals"(solution proposal business and joint development business) decreased.

As a result, sales of this segment were 1,575 million yen (an increase of 108 million yen) and operating income was 494 million yen (a decrease of 124 million yen). Compared to the outlook (Note), sales were above 0.1 billion yen and operating income was above 0.1 billion yen.

(Note) The outlook is described on page 19 of the FY2024 Presentation Materials (announced on May 15, 2025).

Sales of this segment were 29,982 million yen (an increase of 2,477 million yen) and operating income was 1,087 million yen (an increase of 92 million yen). Compared to the outlook (Note), sales were above 1.7 billion yen and operating income was above 0.3 billion yen.

(Note) The outlook is described on page 63 and 64 of the FY2024 Presentation Materials (announced on May 15, 2025).

Sales of this segment were 7,904 million yen (an increase of 1,564 million yen) and operating income was 487 million yen (an increase of 375 million yen).