Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024
<Under Japanese GAAP>
February 6, 2024
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:
Hiroyuki Ueshima, Representative Director and President
Contact:
Yoshihisa Shimizu, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Filing of quarterly report (scheduled): February 9, 2024
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 Third Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results
Net sales
For the third quarter ended Millions of yen
677,732
December 31, 2023
695,680
December 31, 2022

(Note) Comprehensive income

Gross profit

Operating income(% = year-on-year change)

Profit attributable toowners of the parent

Ordinary income%Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

-2.6
21.2

121,492
118,476

2.5
13.8

23,01927,438-16.1-2.5

23,17927,445-15.5-9.0

18,001
20,037-10.2-9.9

Third quarter ended December 31, 2023: ¥40,067 million (11.8% decrease)
Third quarter ended December 31, 2022: ¥45,427 million (66.1%)
Earnings per share

For the third quarter ended
December 31, 2023
December 31, 2022

Earnings per share (diluted)
Yen

Yen

156.19168.78(2) Consolidated Financial Position
Total assets
December 31, 2023
March 31, 2023

Net assets

Shareholders’equity ratio

Net assets per share

Millions of yen

Millions of yen%Yen

788,364
762,688395,120
378,38849.3
48.2

3,412.94
3,139.26(Reference) Equity capital

As of December 31, 2023: ¥ 388,274 million
As of March 31, 2023: ¥ 367,675 million

2. Dividends
1Q
For the year ended (or ending)YenMarch 2023
March 2024
March 2024 (forecast)(Note) Revisions to the latest dividends forecast: No2Q

Annual Dividends per Share
3Q
Fiscal year end

AnnualYen

Yen

Yen

Yen

30.00
40.00




40.00

70.00

40.00

80.00

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

Gross profit

Operating income

Millions of yen%

Millions of yen%

900,000-1.4

163,000

4.9

Millions of yen%

30,000 -10.1

Ordinary income
Millions of yen

Profit attributable to Earnings perowners of the parent
share%

Millions of yen%

Yen

29,000 -10.8

22,500-4.8

195.86(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 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)
December 31, 2023
117,908,285 shares March 31, 2023
117,908,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
December 31, 2023
4,142,899 shares

March 31, 2023

Average number of shares during the period
December 31, 2023
115,255,985 shares

December 31, 2022

786,718 shares

118,717,386 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 Third Quarter Ended December 31, 2023

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets

ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable and contract assets
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
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivableRetirement benefit asset
Deferred tax assets
OtherLess allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Prior Consolidated Fiscal
Year(March 31, 2023)(Millions of yen)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2023)

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

53,268322,418
131,478
2,866
14,30918,765(774)
542,332

82,06487,51229,004
4,337
35,58768,92828,991
3,155
39,77471,921

69,743
172,645
3,857
5,475
(176)
81,562
232,556
762,688

74,638
25
2,897
3,741
5,486(191)
86,597246,031
788,364NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Third Quarter Ended December 31, 2023

Prior Consolidated Fiscal Year
(March 31, 2023)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors
OtherTotal 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 (loss) 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)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2023)

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

157,01049,8107,943
42,000
4,049
4,504
163
31,090296,573

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

30,00026,12913,08911,593
13,32337
2,498
96,671
393,244

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

9,699
9,348
298,999(9,543)
308,504

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

32,20184
47,709(225)
79,7706,845
395,120
788,364NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Third Quarter Ended December 31, 2023

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Nine-month periods ended December 31, 2023 and 2022
(Millions of yen)
Nine-month period ended
December 31, 2022

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 earnings of affiliates
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
OtherTotal non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries andaffiliates
Subsidy income
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
Loss on sales of shares of subsidiaries andaffiliates
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

Nine-month period ended
December 31, 2023

(April 1, 2022 – December 31, 2022)(April 1, 2023 – December 31, 2023)

695,680
577,204
118,476
91,03827,438

677,732
556,240
121,492
98,47223,019

74
1,401
184
402
115
332
2,510

352
1,418
178
400
629
530
3,510

2,144
359
2,503
27,4452,841
509
3,35023,179

140
2,617

76
3,013

52－－
1
2,812

507
45
3,642

38
487
7
1,349

29
885
21
9466

－

85
2,435
27,822
7,193
20,628591
20,037152
1,099
25,722
7,382
18,339337
18,001

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Third Quarter Ended December 31, 2023

(Quarterly Consolidated Statements of Comprehensive Income)Nine-month periods ended December 31, 2023 and 2022
(Millions of yen)

Nine-month period ended
December 31, 2022

Nine-month period ended
December 31, 2023

20,62818,339(2,606)(144)
26,944
135

3,267
91
17,448
500

468

419

24,79845,427

21,72840,06744,065
1,361

39,161
905(April 1, 2022 – December 31, 2022) (April 1, 2023 – December 31, 2023)

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