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<br />2
<br />
<br />million
<br />(US$816 million), an increase of 4.3% over the
<br />fiscal year ended March 31, 1996 ("FY96"),
<br />while net income rose by 23.5% to Y3,109
<br />million (US$25 million).
<br />
<br />growth.
<br />Net sales amounted to YlO1,288
<br />
<br />Performance
<br />The corporation-wide efforts we made during
<br />FY97 to improve our profitability included
<br />development of competitive, high-value-added
<br />products, thorough implementation of cost-
<br />reduction measures, and improvements in our
<br />financial base. In the domestic market, we
<br />succeeded in achieving favorable sales of high-
<br />performance specialty chemicals, particularly
<br />of high-performance chemicals for the
<br />electronics industry. In the agrochemical field,
<br />release of new products contributed to an
<br />increase in sales. With respect to exports, our
<br />vigorous market development efforts, helped
<br />by a weaker yen, resulted in steady sales
<br />
<br />Introduction
<br />In 1997, Nissan Chemical Industries,
<br />celebrates its llOth anniversary.
<br />It gives us great pleasure to present this
<br />commemorative Annual Report, outlining our
<br />business results and activities for the fiscal
<br />year ended March 31, 1997 ("FY97").
<br />Although the Japanese economy has begun
<br />to show signs of emerging from recession,
<br />growth in FY97 was extremely modest, and
<br />the country's agricultural industry faced
<br />an increasingly harsh market environment.
<br />Under these circumstances, we adhered to our
<br />management philosophy of becoming a
<br />"Value Creating Enterprise" and, for a third
<br />year in succession, were able to achieve gains
<br />in both net sales and net income.
<br />
<br />agricultural formulations.
<br />R&D expenditure totaled Y6,264 million
<br />(US$50 million), representing approximately
<br />6% of total sales. R&D was focused primarily
<br />on accelerating the development and
<br />commercialization of new products, in the
<br />areas of specialty chemicals, agrochemicals and
<br />pharmaceuticals.
<br />The per-share dividend for FY97 was Y6.00
<br />(US$0.05), including an interim dividend of
<br />Y2.50 and a special dividend of Y1.00 in
<br />commemoration of our 110th anniversary. We
<br />intend to shift our focus to rapidly expanding
<br />industries and higher value-added products,
<br />with the aim of improving the bottom line.
<br />Under our basic policy of offering stable
<br />dividends, we will implement a range of
<br />measures to retain sufficient reserves to
<br />accommodate changes in performance,
<br />management environment, and future
<br />development strategies, and to return profit to
<br />our shareholders.
<br />
<br />Yaesu Audit Company
<br />
<br />
<br />
<br />23
<br />
<br />Tokyo, Japan
<br />
<br />We have also reviewel
<br />March 31, 1997 and ,.
<br />described in Note 4. I
<br />translated on such basis.
<br />
<br />the translation of
<br />"or the year then
<br />
<br />n our opinion
<br />
<br />ha-
<br />
<br />the statements
<br />ended into U.S.
<br />such statements
<br />
<br />mentioned
<br />dollars on
<br />
<br />above at
<br />the basis
<br />have been properly
<br />
<br />then ended
<br />n Japan applied on a basIs
<br />we concur, in the method of depreciation
<br />equipment, made in the year ended March 31, 1997,
<br />the Notes to the Financial Statements.
<br />
<br />the years
<br />accepted
<br />which
<br />
<br />ty with
<br />consistent
<br />
<br />ng principles generally
<br />except for the change, with
<br />for all property, plant and
<br />as described in Note 2 (d) of
<br />
<br />facilities and boosted our production capacity
<br />for TEPIC, a special epoxy compound, and
<br />pharmaceutical intermediates. In addition, we
<br />installed new facilities for the production of
<br />
<br />n our opinion, the accompanying non-cons,
<br />referred to above present fairly, in all material ,.
<br />financial position of Nissan Chemical Industries, L 1. as 0
<br />and 1997 and the non-consolidated results of its operations and
<br />n conform account
<br />
<br />respec~s,
<br />1< f
<br />
<br />March 31,1995,1996
<br />ts cash flows for
<br />
<br />financIal statements
<br />the non-consolidated
<br />
<br />From
<br />
<br />the Management
<br />
<br />e
<br />
<br />Ltd.
<br />
<br />By division, the Chemicals Division posted
<br />net sales of Y49,087 million (US$396 million),
<br />up 5.0% over FY96. Sales of the Agricultural
<br />Division amounted to Y50,381 million
<br />(US$406 million), an increase of 3.2%, while
<br />sales of the Pharmaceuticals Division totaled
<br />Y1,819 million (US$15 million), up 19.0%.
<br />Capital expenditure in FY97 declined by 5.3%
<br />to Y5,659 million (US$46 million), applied
<br />mainly to enhancing facilities for high value-
<br />added products and streamlining our
<br />production and distribution systems. We
<br />carried out rationalization of ammonia
<br />
<br />.
<br />
<br />accordingly, IIlcluded
<br />auditing procedures as
<br />
<br />Report of DndepeD1deD"'il1t Cert~
<br />
<br />years then ended, all expressed
<br />accordance with auditing sta
<br />such tests
<br />
<br />We have audited
<br />Industries, Ltd. as
<br />consolidated statements
<br />
<br />To the Board of Directors of
<br />Nissan Chemical Industries, Ltd
<br />
<br />the
<br />of
<br />
<br />Public ACCOIlJlD"'iltaD1ts
<br />
<br />generally accepted In
<br />of the accounting records and
<br />we considered necessary in the circumstances
<br />
<br />non-consolidated balance of Nlssan ChemIca
<br />March 31, 1995, 1996 and and the related non-
<br />of income, shareholders' equity and cash flows for the
<br />n Japanese yen We conducted our audits in
<br />ndards
<br />
<br />sheets
<br />1997
<br />
<br />e
<br />
<br />Japan and,
<br />such other
<br />
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