Nippon Soda : Financial Results Summary for the Fiscal Year Ended March 31, 2022

Consolidated Financial Results Summary

for the Fiscal Year Ended March 31,2022

Nippon Soda Co., Ltd.

May 10, 2022

1

Contents

１．Consolidated Financial Results

for the Fiscal Year Ended March 31, 2022

・Overview	...	3
・Performance by segment	...	4
・Net Sales by sub-segments of Chemicals	...	5
・Net Sales by sub-segments of Agro Products	...	6
・Non-operating income/expenses and Extraordinary income/losses	...	7
・Balance sheet	...	8
・Statement of cash flows	...	9
・Progress of Medium-Term Business Plan and Long-Term Vision	... 10

２．Forecast of Consolidated Financial Results
for the Fiscal Year Ending March 31, 2023
・Overview	... 12
・Performance forecast by segment	... 13～14
３．Reference Materials	... 15～16

2

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(Overview)

(Billions of yen)	2021/3	2022/3	Change	Change (%)
(amount)
Net sales	139.36	152.54	13.17	9.5%
Operating profit	9.98	11.93	1.95	19.5%
Share of profit of entities accounted	1.86	3.06	1.21
for using equity method
Ordinary profit	12.74	16.51	3.77	29.6%
Profit attributable to owners of parent	7.36	12.68	5.32	72.3%
Exchange rate (JPY/USD)	106.1	112.5	6.4
Exchange rate (JPY/EUR)	123.4	130.4	7.0

・Increased sales of the Chemicals, Trading and Agro Products Businesses

・Rose raw materials and fuel costs

・Increased share of profit of entities accounted for using equity method

･Exchange rate changed for the weak yen

・Recorded gain on exchange of subsidiaries and affiliates' stock as extraordinary income, due to business integration of "Certis Europe" that was equity-method affiliate

・Recorded extraordinary losses due to impairment loss related to structural reforms in the previous fiscal year

・Operating profit difference : 1.95 breakdown

Price difference : 1.76（of which, rate difference : 1.80）

Volume difference : 3.28

Material purchase price difference : (2.83) (of which, rate

difference : (0.66)

Others : (0.26)

【Operating profit (year on year)】

（Billions of yen）

3.28 (2.83)

		1.76				(0.26)	11.93
9.98
				Operating profit
				difference: 1.95
2021/3	Price		Volume	Material	Others	2022/3
difference		difference	Purchase
					Price difference		3

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(Performance by segment)

(Billions of yen)	2021/3	2022/3	Change (amount)
Net sales	Operating	Net sales	Operating	Net sales	Operating
	profit	profit	profit
Chemicals	37.57	1.72	43.89	2.47	6.32	0.75
Agro Products	48.20	4.84	50.56	5.51	2.36	0.68
Trading	32.32	0.73	35.68	1.17	3.37	0.44
Transportation and Warehousing	4.22	0.60	4.46	0.69	0.24	0.09
Construction	8.51	1.10	8.22	1.14	(0.29)	0.04
Others	8.54	0.78	9.72	1.06	1.18	0.28
Adjustments	-	0.21	-	(0.12)	-	(0.33)
Total	139.36	9.98	152.54	11.93	13.17	1.95

・Chemicals : Increased Fine Chemicals, Industrial Chemicals and Specialty Chemicals due to the recovery of economic activity that had been stagnant by COVID pandemic

Started the operation of expanded production facility of pharmaceutical additive "NISSO HPC", which provided sales growth

・Agro products : Increased sales for export of insecticide and acaricide, sales of new internally developed agrochemicals contributed to earnings, and decreased sales for export of herbicide and fungicide

・Trading : Increased sales of various organic and inorganic chemicals, nonferrous metals and urethane materials

・Transportation and Warehousing: Steady sales of Transportation and Warehousing

Transportation and

・Construction : Steady sales of plant construction work

Warehousing

Construction

Earning

Net sales

Chemicals 28.8%

Agro

Products 33.1%

Trading 23.4%

Others

2.9% 5.4% 6.4%

Breakdown

Operating

Trading

Construction

(2022/3)

Chemicals 20.7%

Agro

Products 46.2％

profit

9.8% 5.7%

9.6%

7.9%

4

Transportation and Warehousing

Others and Adjustments

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(Net sales by sub-segments of Chemicals)

(Billions of yen)

consolidated-	Industrial chemicals
Fine chemicals
	Specialty chemicals
	Eco-business
Non	Pharmaceuticals &
industrial fungicides

Subtotal

Subsidiaries sales, elimination of transactions, etc.

Net sales of Chemicals

2021/3	2022/3	Change	Main factors of change
(amount)
12.98	13.55	0.57	Phosphorus chloride↑, Caustic soda↑,
Caustic potash↓
7.44	9.63	2.19	Color developers for thermal paper↑,
Specialty isocyanates↑
6.23	6.62	0.40	VP-POLYMER↑,NISSO-PB↑

5.77	5.74	(0.03)
8.16	9.51	1.35	NISSO HPC↑,
Active pharmaceutical ingredients↑
40.58	45.05	4.47
(3.01)	(1.16)	1.85
37.57	43.89	6.32

・Industrial chemicals : Rose sales price of phosphorus chloride due to the soaring raw material price

Increased Caustic soda, and decreased Caustic potash

・Fine chemicals : Growth in Color developers for thermal paper and Specialty isocyanates

・Specialty chemicals : Increased KrF photo resist material "VP-POLYMER" and resin additive "NISSO-PB"

・Pharmaceuticals : Growth in pharmaceutical additive "NISSO HPC", and active pharmaceutical ingredients

【Chemicals : Net sales and operating profit】

（Billions of yen）		Net sales
	Operating profit
40	41.29	40.39		43.89	4
39.50	37.57
20	2.45	2.22		2.47	2
1.63			1.72
0					0
2018/3	2019/3	2020/3	2021/3	2022/3	5