Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2023
<Under Japanese GAAP>

August 4, 2022

These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

NAGASE & CO., LTD.
Stock exchange listing: Tokyo (Prime Market)
Code number:8012
URL (https://www.nagase.co.jp/english/)Representative:
Kenji Asakura, Representative Director and President
Contact:
Yoshihisa Shimizu, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Filing of quarterly report (scheduled): August 10, 2022
Start of distribution of dividends (scheduled): Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: No(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2023
(April 1, 2021 to June 30, 2022)(1) Consolidated Operating Results
Net sales
For the first quarter ended
June 30, 2022
June 30, 2021

Millions of yen

Gross profit%

219,571
184,389

19.1

Millions of yen

39,904
34,58936.9(Note) Comprehensive income

Operating income%

15.4
32.7

Millions of yen

Profit attributable toowners of the parent

Ordinary income%

10,8719,738(% = year-on-year change)

11.6

Millions of yen

11,542
10,660165.1%

8.3

Millions of yen

7,969
7,169

151.6

First quarter ended June 30, 2022: ¥17,047 million (57.6%)
First quarter ended June 30, 2021: ¥10,814 million (8.7% decrease)
Earnings per share

For the first quarter ended
June 30, 2022
June 30, 2021

Earnings per share (diluted)
Yen

Yen

66.69
58.37

−−(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

June 30, 2022
March 31, 2022

Millions of yen

782,013739,720(Reference) Equity capital

Shareholders’equity ratio

Net assets per share%

366,387
355,092

Yen

45.4
46.5

2,980.41
2,868.22

As of June 30, 2022: ¥ 354,673 million
As of March 31, 2022: ¥ 344,261 million

2. Dividends
1Q
For the year ended (or ending)
Yen
March 2022−
March 2023−
March 2023 (forecast)(Note) Revisions to the latest dividends forecast: No2Q

Annual dividends per share3Q
Fiscal year endYen

24.00
30.00

Yen

Yen

Annual
Yen−

30.00

54.00

−

30.00

60.00

%

11.2

5.3

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(% = year-on-year change)

Gross profit
Millions of yen

Full fiscal year

159,000

Operating income%

14.0

Millions of yen

38,000

Profit attributable toowners of the parent

Ordinary income%

7.8

Millions of yen

39,000%

6.9

Millions of yen

28,500Earnings per
share%

9.9

Yen

241.35(Note) Revisions to the latest consolidated earnings forecast: No* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope ofconsolidation): No
New: ― (Company name:)
Excluded: ― (Company name:)(2) Application of special accounting methods to the preparation of quarterly financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after
error correctionsi.
Changes in accordance with revisions to accounting and other standards: Noii. Changes in items other than (i) above: Noiii. Changes in accounting estimates: Noiv. Restatement of prior period financial statements after error corrections: No(4) Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)June 30, 2022
120,908,285 shares March 31, 2022
120,908,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
June 30, 2022
1,906,567 shares

March 31, 2022

Average number of shares during the period
June 30, 2022
119,507,343 shares

June 30, 2021881,767 shares

122,837,754 shares* Quarterly financial statements are not subject to quarterly review.
* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions deemed rational.
A variety of factors could cause actual results to differ materially from forecasts.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2022

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year(March 31, 2022)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherLess allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
OtherTotal intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
OtherLess allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2022)

54,211
289,862
142,5902,401
12,533
13,935(1,248)514,286

52,152
303,861
160,643
2,516
14,25920,554(1,198)552,789

72,55475,72929,492
5,912
29,66465,07029,986
5,518
31,827
67,33375,600
24
3,139
3,572
5,583
(112)
87,809225,434
739,72073,757
21
3,194
3,627
5,673
(112)
86,162229,224
782,013

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2022

Prior Consolidated Fiscal Year
(March 31, 2022)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Current portion of bonds
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
Deferred tax liabilities
Retirement benefit liability
OtherTotal long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equityCommon stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2022)

149,036
73,121
8,752
25,00010,000
7,100
7,648
497
26,678307,836

151,875
79,517
8,329
49,000－3,6634,140
156
29,903
326,586

20,00028,244
12,31013,2382,998
76,791
384,628

30,00028,87911,70813,443
5,007
89,038415,625

9,699
10,639280,015(1,534)
298,820

9,699
10,639284,149(3,400)301,089

31,732
178
13,690(161)
45,441
10,830355,092
739,720

30,147512
23,043(118)
53,584
11,714366,387
782,013

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2022

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Three-month periods ended June 30, 2022 and 2021

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Equity in gains of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary gains
Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes
Income taxes
Profit for the period
Profit attributable to non-controlling interests
Profit attributable to owners of the parent(Millions of yen)Three-month period ended
June 30, 2021
(April 1, 2021 - June 30, 2021)

Three-month period ended
June 30, 2022
(April 1, 2022 - June 30, 2022)

184,389
149,799
34,58924,851
9,738

219,571
179,666
39,90429,033
10,871

41
576
71－
531
91
1,312

18
672
62
83
328
186
1,352

290
4
95
390
10,660

490
－
191
681
11,542

2
571
178
752

123
43－
166

155
242
－
3
130
531
10,881
3,207
7,674
504
7,169

3
179
779－
270
11,438
3,194
8,244
275
7,969

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2022

(Quarterly Consolidated Statements of Comprehensive Income)Three-month periods ended June 30, 2022 and 2021

Profit for the period
Other comprehensive income
Net unrealized holding loss on securities
Deferred (loss) gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Non-controlling interests(Millions of yen)Three-month period ended
June 30, 2021
(April 1, 2021 - June 30, 2021)

Three-month period ended
June 30, 2022
(April 1, 2022 - June 30, 2022)

7,674

8,244

(1,840)
(16)
5,034
(70)

(1,582)
333
9,542
43

33

466

3,140
10,814

8,802
17,047

9,978
835

16,112934