Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023
<Under Japanese GAAP>May 9, 2023

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

Stock exchange listing: Tokyo (Prime Market)
NAGASE & CO., LTD.
Code number:8012
URL (https://www.nagase.co.jp/english/)Representative:
Hiroyuki Ueshima, Representative Director and President
Contact:
Yoshihisa Shimizu, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Annual general meeting of stockholders: June 20, 2023
Start of distribution of dividends (scheduled): June 21, 2023
Securities report filing (scheduled): June 21, 2023
Supplementary documents: Yes
Investors’ meeting: Yes(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results
Net sales
Millions of yen

912,896780,557

FYE March 2023
FYE March 2022
(Note) Comprehensive income

Gross profit
%

17.0
24.8

Millions of yen

155,410
139,494(% = year-on-year change)

Operating income
%

11.4
21.7

Millions of yen%

33,37135,263-5.4
60.9

Profit attributable toowners of the parent

Ordinary income
Millions of yen%

32,52836,497-10.9
59.7

Millions of yen

23,62525,939

%

-8.9
37.8

FYE March 2023: ¥37,994 million (32.8%)
FYE March 2022: ¥28,608 million (10.3% decrease)

Earnings per share

Earnings per share(diluted)

Yen

Yen

199.54213.46FYE March 2023
FYE March 2022
(Reference)Equity in earnings of affiliates

Ordinary income/total assets

Return on equity
%

%

6.6
7.7

−
−

Operatingincome/net sales
%

4.3
5.3

3.7
4.5

FYE March 2023: ¥318 million
FYE March 2022: ( ¥1,031) million(2) Consolidated Financial Position
Total assets
Millions of yen

762,688739,720FYE March 2023
FYE March 2022
(Reference) Equity capital

Shareholders’equity ratio

Net assets
Millions of yen

378,388355,092

Net assets per share
%

Yen

48.2
46.5

3,139.26
2,868.22

FYE March 2023: ¥367,675 million
FYE March 2022: ¥344,261 million(3) Consolidated Cash FlowsFYE March 2023
FYE March 2022

Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents,
end of the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

9,414(17,776)(8,031)(7,664)(17,247)
27,28240,33153,336

2. Dividends
Total dividends
paid(full fiscal year)

Annual Dividends per Share
1Q

2Q

Fiscalyear end

3Q

Payout ratio(consolidated)

Dividends/
net assets(consolidated)

Annual

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

−
−
−

24.00
30.00
40.00

−
−
−

30.00
40.00
40.00

54.00
70.00
80.00

6,514
8,245

25.1
34.9
38.0

1.9
2.3

FYE March 2022
FYE March 2023
FYE March 2024 (forecast)(Note) A year-end dividend for FYE March 2022 includes regular dividend of ¥24 per share and special dividend of ¥6 per share.
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(% = year-on-year change)

Net sales

Full fiscal year

OperatingincomeGross profit

Millions of yen%

Millions of yen

958,000

4.9

171,000% Millions of yen

10.0

34,500Ordinary income% Millions of yen

3.4

32,600

Profit attributableto owners of theparent% Millions of yen

0.2

24,000Earnings
per
share

%

Yen

1.6

209.35* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of
consolidation): No
New: ― (Company name:)
Excluded: ― (Company name:)(2) 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: Yes
ii. Changes in items other than (i) above: Noiii. Changes in accounting estimates: No
iv. 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)
March 31, 2023
117,908,285 shares March 31, 2022
120,908,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
March 31, 2023
786,718 shares

March 31, 2022

881,767 shares

Average number of shares during the period
March 31, 2023
118,398,261 shares

March 31, 2022

121,522,286 shares* These consolidated financial statements are not subject to audit by an independent audit corporation* 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 Fiscal Year Ended March 31, 2023

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)
Land
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Prior Consolidated Fiscal Year
(March 31, 2022)

Current Consolidated Fiscal Year
(March 31, 2023)

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

40,897302,105
152,504
2,446
14,77018,429(1,021)
530,132

61,430(36,003)
25,42764,794(47,271)
17,523
20,39830,318(21,112)
9,205
72,55464,095(37,018)
27,07665,005(47,686)
17,31818,83942,415(23,585)
18,82982,06429,492
5,912
29,66465,07029,004
4,337
35,58768,92875,600
24
3,139
3,572
5,583
(112)
87,809225,434
739,720

69,743
17
2,645
3,857
5,475
(176)
81,562
232,556
762,688

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

(Millions of yen)
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
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Provision for directors’ stock benefit
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

Current Consolidated Fiscal Year
(March 31, 2023)

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

140,438
66,117
1,056
38,000
2,913
6,985
371
30,321
286,203

20,00028,244
1,011
12,31013,238
1,987
76,791
384,628

30,00032,697
9,763
10,36013,19765
2,012
98,097384,300

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

9,699
10,636290,279(1,550)309,064

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

28,928(7)30,414(726)
58,61010,713378,388762,688

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
Employee salaries and allowances
Provision for accrued bonuses for employees
Provision for accrued bonuses for directors
Depreciation and amortization other than amortizationof goodwill
Retirement benefit expenses
Provision for retirement benefits for directors
Allowance for doubtful accounts
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Equity in earnings of affiliates
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 receipt of donated non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and affiliates
Gain on sales of investments in capital of subsidiaries
and affiliates
Gain on change in equity
Subsidy income
Other
Total extraordinary gains
Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Loss on impairment of fixed assets
Loss on sales of investment securities
Loss on valuation of investments securities
Loss on sales of shares of subsidiaries and affiliates
Other
Total extraordinary losses

Current Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)

780,557
641,062
139,494

912,896
757,486
155,410

19,90733,977
4,522
287

22,95338,839
4,421
396

6,716

7,554

769
42
612
2,478
34,918104,231
35,263

1,443
24
333
2,545
43,526122,038
33,371

156
1,395
272
1,283
822
3,929

197
1,537
243
12
318
656
2,967

1,176
1,031
486
2,695
36,497

3,211
598
3,810
32,528

16
719
7,037
-

144
6,587
52

314

147

75
229
8,392

449
25
7,406

177
453
2,974
6
1,436
59
224
5,333

87
998
2,838
7
2,120
466
277
6,797

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit for the period
Profit attributable to non-controlling interests
Profit attributable to owners of the parent

Prior Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)
39,557
12,826(141)
12,684
26,872932
25,939(Millions of yen)
Current Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)
33,137
9,621
(694)
8,927
24,210584
23,625

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)
Profit for the period
Other comprehensive income
Net unrealized holding loss on securities
Deferred gain (loss) on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive gain of affiliates
accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Non-controlling interests

Current Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)

26,872

24,210(11,844)106
13,623(430)(2,794)(186)
16,852
(564)

282

477

1,736
28,60813,78437,994

26,482
2,126

36,8381,156

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

(3) Consolidated Statements of Changes in Shareholders’ Equity
Prior Consolidated Fiscal Year (April 1, 2021 - March 31, 2022)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Less treasury stock, at
cost

Retained earnings

10,646

265,920

Total shareholders’equity(1,503)284,763

ChangesCash dividends(5,876)(5,876)

Profit attributable to ownersof the parent

25,93925,939Purchase of treasury stock(6,006)(6,006)

0

0

5,975

-

Disposal of treasury stock0

Cancellation of treasury
stock

(0)

Equity transactions with
non-controlling interests

(0)

(0)

Changes in scope of
consolidation

(6)

(6)

(5,975)

Changes in scope of equity
affiliates

7

7

Changes other thanshareholders’ equity
accounts (net)Total changes
Balance, end of period-(6)

14,094(30)

14,057

9,699

10,639280,015(1,534)

298,820

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

43,576

72

Translation
adjustments
1,006

Remeasurementsof defined benefit
plans

268

Total
Non-controlling
Total net assets
accumulated
interests
othercomprehensive
income44,924

8,743

338,431

ChangesCash dividends(5,876)

Profit attributable to ownersof the parent

25,939Purchase of treasury stock(6,006)

Disposal of treasury stock0

Cancellation of treasury
stock

-

Equity transactions with
non-controlling interests(0)

Changes in scope of
consolidation(6)

Changes in scope of equity
affiliates

7

Changes other thanshareholders’ equity
accounts (net)(11,843)

106

12,684

(430)

516

2,086

2,603

Total changes(11,843)

106

12,684

(430)

516

2,086

16,661

Balance, end of period

31,732

178

13,690(161)

45,441

10,830355,092

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

Current Consolidated Fiscal Year (April 1, 2022 - March 31, 2023)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Retained earnings

10,639Less treasury stock, atcost

280,015

Total shareholders’equity(1,534)

298,820

ChangesCash dividends(7,150)(7,150)

Profit attributable to ownersof the parent

23,62523,625Purchase of treasury stock
Cancellation of treasury
stock(5,645)(5,662)(5,662)5,645-

Equity transactions with
non-controlling interests

(0)

(0)

Changes in scope of
consolidation

(3)

(3)

Changes in scope of equity
affiliates

(330)

(330)

Changes in fiscal year-end
of consolidated subsidiaries

(234)

(234)

Changes other thanshareholders’ equity
accounts (net)Total changes
Balance, end of period-(3)10,264(16)

10,244

9,699

10,636290,279(1,550)309,064

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

31,732

178

Translation
adjustments
13,690Remeasurementsof defined benefit
plans

(161)

Total
Non-controlling
Total net assets
accumulated
interests
othercomprehensive
income45,441

10,830355,092

ChangesCash dividends(7,150)

Profit attributable to ownersof the parent

23,625Purchase of treasury stock(5,662)

Cancellation of treasury
stock

-

Equity transactions with
non-controlling interests(0)

Changes in scope of
consolidation(3)

Changes in scope of equity
affiliates(330)

Changes in fiscal year-end
of consolidated subsidiaries(234)

Changes other thanshareholders’ equity
accounts (net)(2,804)(186)

16,723(564)

13,169(117)

13,051

Total changes(2,804)(186)

16,723(564)

13,169(117)

23,295

Balance, end of period

28,928(7)30,414(726)

58,61010,713378,388

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

(4) Consolidated Statements of Cash Flows
Prior Consolidated
Fiscal Year
(April 1, 2021 March 31, 2022)
Operating Activities
Income before income taxes
Depreciation and amortization other than amortization of
goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Subsidy income
Share of loss (gain) of entities accounted for using equity
methodGain on change in equity
Decrease in retirement benefit liability
Increase in retirement benefit asset
Interest and dividend income
Interest expenses
Exchange gain, net
Gain on sales of investment securities, investments in capital,
shares of subsidiaries and affiliates, and investments in capital ofsubsidiaries and affiliates, net
Loss on valuation of investment securities, investments incapital, shares of subsidiaries and affiliates, and investments incapital of subsidiaries and affiliates, net
Increase in notes and accounts receivable
Increase in inventories
Increase (decrease) in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash (used in) provided by operating activities
Investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible fixed assets included in other assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Proceeds from sales of investments in capital
Purchases of shares of subsidiaries resulting in change in scopeof consolidation
Proceeds from sales of shares of subsidiaries resulting in changeof scope of consolidation
Increase in short-term loans receivable included in other current
assets, net(Increase) decrease in time deposits, net
Proceeds from subsidy income
Payments of leasehold and guarantee deposits
Other
Net cash used in investing activities(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2022 March 31, 2023)

39,55733,137

11,216

12,377

2,974
2,478
(75)

2,838
2,545
(25)

1,031

(318)

(599)
(869)
(1,551)
1,176
(778)

(449)
(609)
(55)
(1,734)
3,211
(891)

(7,285)(6,312)

1,436

2,120

(34,234)(49,346)
20,465
4,859(9,544)
1,926(1,202)(8,956)(17,776)(5,171)(1,275)(13,584)(1,462)
24,341
2,418(3,058)(14,286)
9,414(8,830)326(1,624)(1,317)
7,736
890(12,029)
540(4,888)
(437)
7,474
178

(3,848)

-

587

2,040

(83)

(623)

(137)
75
(1,352)(86)(7,664)

337
25
(650)
(8,031)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2023

(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2022 March 31, 2023)

Prior Consolidated
Fiscal Year
(April 1, 2021 March 31, 2022)
Financing activities
Increase (decrease) in short-term loans, net
Increase in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities
Effects of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Decrease in cash and cash equivalents resulting from changes infiscal year-end of consolidated subsidiaries
Cash and cash equivalents, at end of the period

33,32517,0001,900(12,039)(6,006)(5,876)(543)(477)
27,282
2,942
4,783
48,553(11,961)
13,0005,000(8,623)
10,000(10,000)(5,662)(7,150)(1,133)(716)(17,247)
3,064(12,800)
53,336-(204)

53,33640,331