Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2022
<Under Japanese GAAP>

August 4, 2021

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 (First Section)
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 13, 2021
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, 2022
(April 1, 2021 to June 30, 2021)(1) Consolidated Operating Results
Net sales
For the first quarter ended
June 30, 2021
June 30, 2020

Millions of yen

Gross profit%

184,389
134,649

Millions of yen

Operating income%

34,58926,058Millions of yen

Profit attributable toowners of the parent

Ordinary income%Millions of yen%

9,738 165.1
10,660 151.6
3,673 (30.1)
4,237 (27.5)
First quarter ended June 30, 2021: ¥10,814 million (8.7% decrease)
36.9—(Notes) 1. Comprehensive income

32.7
2.6

(% = year-on-year change)

Millions of yen

7,169
6,807%

5.3
63.8

First quarter ended June 30, 2020: ¥11,850 million (―%)
2. At the beginning of the first quarter of the fiscal year ending March 31, 2022, the Company adopted Accounting Standard for Revenue
Recognition (ASBJ Statement No.29, issued on March 31, 2020) and related implementation guidance. Results for the first quarter
ended June 30, 2020 reflect a retrospective application of these standard and guidance. Accordingly, net sales for the first quarter ended
June 30, 2020 is revised, and its year-on-year change is not presented.
Earnings per share
For the first quarter ended
June 30, 2021
June 30, 2020

Earnings per share (diluted)
Yen

Yen

58.37
54.90

−−(2) Consolidated Financial Position
Total assets
Millions of yen

June 30, 2021
March 31, 2021

Shareholders’equity ratio

Net assetsMillions of yen

662,953
640,587%

344,028
338,431
As of June 30, 2021: ¥ 334,449 million
As of March 31, 2021: ¥ 329,687 million(Reference) Equity capital

Net assets per share
Yen

50.4
51.5

2,738.38
2,670.09

2. Dividends
1Q
For the year ended (or ending)
Yen
March 2021−
March 2022−
March 2022 (forecast)(Note) Revisions to the latest dividends forecast: No2Q

Annual dividends per share
3Q
Fiscal year end
Yen

Yen

22.00
24.00

－1－

Yen

AnnualYen−

24.00

46.00

−

24.00

48.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(% = year-on-year change)

Gross profit
Millions of yen

Full fiscal year

130,000

Operating income%

13.4

Millions of yen

30,000

Profit attributable toowners of the parent

Ordinary income%Millions of yen

36.9

31,000%35.6

Millions of yen

22,500Earnings pershare%

19.5

Yen

185.05(Note) Revisions to the latest consolidated earnings forecast: Yes* 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 aftererror correctionsi.
Changes in accordance with revisions to accounting and other standards: Yes
ii. Changes in items other than (i) above: Yesiii. 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, 2021
124,408,285 shares March 31, 2021
124,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
June 30, 2021
2,274,277 shares

March 31, 2021

Average number of shares during the period
June 30, 2021
122,837,754 shares

June 30, 2020

933,995 shares

124,011,553 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.

－2－

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2021

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2021)
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
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Retirement benefit asset
Deferred tax assets
OtherLess allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－3－(Millions of yen)First Quarter, Current
Consolidated Fiscal Year(June 30, 2021)

49,254
242,558
88,1301,654
7,457
13,259(563)
401,751

44,237
254,343
99,651
1,965
8,478
16,346(871)
424,152

70,89671,42430,216
7,488
26,89364,59830,3507,094
28,196
65,641

93,719
2,929
1,903
4,900
(112)
103,340
238,835
640,587

91,122
2,981
1,819
5,924
(112)
101,735
238,801
662,953NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2021

Prior Consolidated Fiscal Year
(March 31, 2021)
LIABILITIESCurrent liabilitiesNotes 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
Other
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Common 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－4－(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2021)

119,941
33,05012,025
8,000
3,565
6,042
203
23,310206,139

125,953
39,513
5,705
20,00010,000
3,228
3,043
84
24,582
232,11130,00034,514
16,077
13,292
2,131
96,016302,155

20,00036,015
15,196
13,4532,147
86,813318,925

9,699
10,646
265,920(1,503)284,763

9,699
10,646
270,134(3,739)286,741

43,57672
1,006
268
44,924
8,743
338,431640,587

41,73755
5,716
197
47,707
9,579
344,028
662,953NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2021

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Three-month periods ended June 30, 2021 and 2020

(Millions of yen)Three-month period ended
June 30, 2020
(April 1, 2020 - June 30, 2020)Three-month period ended
June 30, 2021
(April 1, 2021 - June 30, 2021)

134,649
108,590
26,05822,385
3,673

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

40
385
66
325
155
974

41
576
71
531
91
1,312

254
96
59
410
4,237

290
495
390
10,660

0
5,597
5,597

2
571
178
752

12
7
14
1
36
9,798
2,888
6,909
101
6,807

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
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
Impairment losses
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and affiliates
OtherTotal 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－5－

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2021

(Quarterly Consolidated Statements of Comprehensive Income)Three-month periods ended June 30, 2021 and 2020

(Millions of yen)Three-month period ended
June 30, 2020
(April 1, 2020 - June 30, 2020)Three-month period ended
June 30, 2021
(April 1, 2021 - June 30, 2021)

6,909

7,674

5,228
8(428)
138(1,840)
(16)
5,034
(70)

(5)

33

4,941
11,8503,140
10,814

11,78564

9,978835

Profit for the period
Other comprehensive income
Net unrealized holding gain (loss) on securities
Deferred gain (loss) on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive (loss) 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－6－