NOF : Consolidated Financial Results for the Three Months Ended June 30, 2022 (Under Japanese GAAP)

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

August 3, 2022

	Consolidated Financial Results
	for the Three Months Ended June 30, 2022
	(Under Japanese GAAP)
Company name:	NOF CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	4403
URL:	http://www.nof.co.jp/
Representative:	Takeo Miyaji, President and Chief Executive Officer
Inquiries:	Tomoaki Mori, Operating Officer and General Manager of Finance Dept.
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2022	52,014		21.4	12,451	40.8	14,245	51.7	9,937	54.5
June 30, 2021	42,835		13.4	8,844	61.9	9,391	55.7	6,431	71.9

Note: Comprehensive income	For the three months ended June 30, 2022:	¥9,327 million	[53.7%]
		For the three months ended June 30, 2021:	¥6,067 million	[(27.3)%]
	Basic earnings	Diluted earnings
		per share	per share
Three months ended		Yen	Yen
June 30, 2022		121.43	-
June 30, 2021		77.86	-

(2) Consolidated financial position

	Total assets		Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
June 30, 2022	294,351		224,626	76.1
March 31, 2022	289,630		221,706	76.3
Reference: Equity
As of June 30, 2022:	¥223,857 million
As of March 31, 2022:	¥220,928 million

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end		Fiscal year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended	-	43.00		-		47.00	90.00
March 31, 2022
Fiscal year ending	-
March 31, 2023
Fiscal year ending
March 31, 2023		45.00		-		45.00	90.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen			yen		yen		yen
Fiscal year ending	213,000		10.6	34,500	(3.1)	35,600	(5.4)	25,100	(6.0)	305.69
March 31, 2023
Note: Revisions to the earnings forecasts most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022	82,841,376 shares
As of March 31, 2022	82,841,376 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2022	1,253,204 shares
As of March 31, 2022	731,913 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2022	81,834,619 shares
Three months ended June 30, 2021	82,596,987 shares

Note: Since the Company introduced "Board Benefit Trust (BBT)" in the fiscal year ended March 31, 2020, the shares of the Company held by the trust are included in the number of treasury shares at the end of the period, and the number of treasury shares excluded from the calculation of the average number of shares outstanding during the period.

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters (Notes regarding forward-looking statements)
  Forward-looking statements including financial results forecasts stated in this material were compiled based on information available to the Company and certain assumptions considered reasonable at the time this material was compiled, and are not meant as a guarantee of the Company achieving such results. Therefore, the actual results, etc., may differ due to various factors. For information on the assumptions of the forecast and notes on the use of the forecast, please refer to "1. Qualitative Information on the Current Quarterly Financial Results, (3) Explanation on future forecast information including the forecast of consolidated financial results" on page 3 of the attached document.

Table of contents for the attachment
1. Qualitative information on the current quarterly financial results ............................................................	2
(1)	Explanations on operating results ..........................................................................................................	2
(2)	Explanation of financial position ...........................................................................................................	3
(3)	Explanation on future forecast information including the forecast of consolidated financial results ....	3
2. Quarterly consolidated financial statements and significant notes thereto................................................	4
(1)	Quarterly consolidated balance sheets ...................................................................................................	4
(2)	Quarterly consolidated statements of income and quarterly consolidated statements of
		6
	comprehensive income ..........................................................................................................................
	Quarterly consolidated statements of income
	For the three months period ............................................................................................................	6
	Quarterly consolidated statements of comprehensive income
	For the three months period ............................................................................................................	7
(3)	Notes on quarterly consolidated financial statements............................................................................	8
	(Notes on going concern assumption) ...................................................................................................	8
	(Notes on substantial changes in the amount of shareholders' equity) ..................................................	8
	(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
		8
	statements) .............................................................................................................................................
	(Additional information)........................................................................................................................	8
	(Segment information, etc.) ...................................................................................................................	9

- 1 -

1. Qualitative information on the current quarterly financial results

1. Explanations on operating results
   Despite the gradual easing of various restrictions and the normalization of economic activities, mainly in countries and regions where there was progress in dissemination of novel coronavirus infection (COVID-19) vaccinations, economic conditions remained uncertain in the first quarter of the current fiscal year (from April 1, 2022 to June 30, 2022) as a result of the intensified effects of the Ukraine crisis and restricted economic activities in China due to the spread of COVID-19 infections, as well as resource and energy price trends. In Japan, as measures against infection were established and social and economic activities were being normalized, there were signs of recovery in consumer spending and capital investment, etc.
   The business environment surrounding the Group was affected by global raw material and fuel prices hikes, semiconductor shortages, and geopolitical risks such as the Ukraine crisis, but domestic and overseas demand remained stable on the whole.
   In this business environment, under the three-year "2022 Mid-term Management Plan" ending in FY2022, the Group has made successive management efforts toward sustainable growth, striving to develop new markets, expand sales, and reduce production costs under the basic policy of "Challenge and Co-create," and addressing the issues of "expanding business in growth markets," "accelerating development of new products and techniques," "strengthening collaboration internally and externally," "improving productivity," and "promoting CSR activities."
   As a result of such efforts, net sales for the first quarter of the current fiscal year were 52,014 million yen, up 21.4% year on year. Operating profit increased to 12,451 million yen, up 40.8% year on year, ordinary profit increased to 14,245 million yen, up 51.7% year on year, and profit attributable to owners of parent increased to 9,937 million yen, up 54.5% year on year.
   Business results by segment are as follows.
2. 1. Functional Chemicals
      Net sales of fatty acid derivatives increased due to strong demand for environmental energy-related products.
      Net sales of surfactants increased due to strong demand for toiletries.
      Net sales of ethylene oxide/propylene oxide derivatives increased due to stable demand for toiletries and synthetic resins and resin processing.
      Net sales of organic peroxides increased due to strong demand in Japan and Asia.
      Net sales of special anti-corrosion agents decreased due to stagnant demand in the domestic and overseas automobile industry.
      As a result, net sales of Functional Chemicals were 35,256 million yen, up 15.2% year on year, operating profit was 6,143 million yen, up 6.3% year on year.
   2. Life Science
      Net sales of edible oils increased despite calm demand for functional oils for confectionery and bread production.
      Net sales of functional foods decreased due to a decrease in demand for health foods.
      Net sales of biocompatible materials increased due to strong demand for MPC (2-methacryloyloxyethyl phosphorylcholine) related products.
      Net sales of raw materials for DDS (drug delivery system) drug formulations increased due to strong demand in the United States and Europe.
      As a result, net sales of Life Science were 12,156 million yen, up 70.1% year on year, operating profit was 6,898 million yen, up 105.9% year on year.
   3. • 2 -