Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022
<Under Japanese GAAP>May 10, 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
Annual general meeting of stockholders (scheduled): June 20, 2022
Start of distribution of dividends (scheduled): June 21, 2022
Securities report filing (scheduled): June 21, 2022
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, 2022
(April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results
Net sales
Millions of yen

FYE March 2022
FYE March 2021

780,557

625,245

Gross profit%24.8－(Notes) 1. Comprehensive income

Millions of yen

139,494
114,600%21.79.2(% = year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of the parent

Millions of yen%

Millions of yen%

Millions of yen

14.3

22,85419.8

18,82935,263

21,91660.9

36,49759.7

25,939

%

37.8

24.3

FYE March 2022: ¥28,608 million (10.3% decrease)
FYE March 2021: ¥31,887 million (790.7%)

2. At the beginning of the fiscal year ended March 2022, the Company adopted the Accounting Standard for Revenue
Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). Results for the fiscal year
ended March 2021 reflect a retroactive application of this accounting standard. As a result, net sales affected by thisretroactive application do not show the year-on-year rate of change in the fiscal year ended March 2021.
Earnings per
shareEarnings per
share (diluted)

Return on equity

Ordinary income/total assets

Operatingincome/net sales

Yen

Yen%%%FYE March 2022
FYE March 2021

213.46151.91

−−

7.7
5.9

5.3
3.7

4.5
3.5

(Reference)Equity in earnings of affiliates

FYE March 2022:
FYE March 2021:(¥1,031) million(¥327) million(2) Consolidated Financial Position
Total assets
Millions of yen

FYE March 2022
FYE March 2021
(Reference)Equity capital

739,720
640,587

Net assets
Millions of yen

355,092
338,431

Shareholders’equity ratio

Net assets per share%

46.5
51.5

Yen

2,868.22
2,670.09

FYE March 2022: ¥344,261 million
FYE March 2021: ¥329,687 million(3) Consolidated Cash Flows
Cash flows fromoperating activitiesFYE March 2022
FYE March 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents, end of theyear

Millions of yen

Millions of yen

Millions of yen

Millions of yen(17,776)
20,391(7,664)
2,643

27,282(25,866)

53,33648,553

2.

Dividends
Annual Dividends per Share
Fiscal
2Q
3Q
year end

1Q

Total dividends
Dividends/
Payout ratio
paid
net assets(consolidated)(full fiscal year)(consolidated)

Annual

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

−−−

22.00
24.00
30.00

−−−

24.00
30.00
30.00

46.00
54.00
60.00

5,691
6,514

30.3
25.1
24.7

1.8
1.9

FYE March 2021FYE March 2022
FYE March 2023 (forecast)(Note) A year-end dividend for FYE March 2022 includes regular dividend of ¥24 per share and special dividend of ¥6per share.
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
Full fiscal year

Operating income

Profit attributable toowners of the parent

Ordinary income

Earnings pershare

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

159,000

14.0

38,0007.8

39,0006.9

28,5009.9241.35* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in thescope 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(3) 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, 2022
120,908,285 shares March 31, 2021
124,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
March 31, 2022
881,767 shares

March 31, 2021

933,995 shares

Average number of shares during the period
March 31, 2022
121,522,286 shares

March 31, 2021

123,955,784 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.

Consolidated Financial Statements(1) Consolidated Balance Sheets

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2022

(Millions of yen)

ASSETS
Current assets
Cash and time depositsNotes 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, 2021)

Current Consolidated Fiscal Year
(March 31, 2022)

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

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

59,327(34,422)
24,90564,956(47,962)
16,99320,05428,074(19,131)
8,943
70,89661,430(36,003)
25,42764,794(47,271)
17,523
20,39830,318(21,112)
9,205
72,55430,216
7,488
26,89364,59829,492
5,912
29,66465,07093,719
211
2,929
1,903
4,689
(112)
103,340
238,835
640,587

75,600
24
3,139
3,572
5,583
(112)
87,809225,434
739,720

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2022

(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2021)
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
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, 2022)

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

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

30,00034,514
16,077
13,292
2,131
96,016302,155

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

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

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

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

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2022

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2020 March 31, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expensesEmployee 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
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
Subsidy income
OtherTotal 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
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

Current Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)

625,245
510,645
114,600

780,557
641,062
139,494

14,87730,8283,609
175

19,90733,977
4,522
287

6,558

6,716

1,936
19
(62)
2,344
32,396
92,683
21,916

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

149
1,163
263
417
766
2,759

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

1,064
327
430
1,821
22,854

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

86
5,774
2,657

16
719
7,037
--

314

163
51
8,733

75
229
8,392

23
92
1,824
10
155
1
206
2,314
29,272
7,851
1,775
9,626
19,646816
18,829

177
453
2,974
6
1,436
59
224
5,333
39,557
12,826(141)
12,684
26,872932
25,939

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2022

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Prior Consolidated Fiscal Year
(April 1, 2020 March 31, 2021)
Profit for the period
Other comprehensive income
Net unrealized holding gain (loss) on securities
Deferred gain 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, 2021 March 31, 2022)

19,646

26,872

10,945697963(11,844)106
13,623
(430)

254

282

12,241
31,887

1,736
28,60830,774
1,112

26,482
2,126

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2022

(3) Consolidated Statements of Changes in Shareholders’ Equity
Prior Consolidated Fiscal Year (April 1, 2020 - March 31, 2021)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Retained earnings

10,646

Less treasury stock, atcost

257,067

Total shareholders’equity(5,071)

272,342

ChangesCash dividends(5,456)(5,456)

Profit attributable to ownersof the parent

18,82918,829Purchase of treasury stock
Disposal of treasury stock0

Cancellation of treasury
stock

(0)

Equity transactions with
non-controlling interests(0)(4,520)

(952)

(952)

00

4,520

(0)

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

-(0)

8,852

3,568

12,4209,699

10,646

265,920(1,503)284,763

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

32,6183Translation
adjustments
1,051

Remeasurementsof defined benefit
plans

(694)

TotalNon-controlling
Total net assets
accumulated
interests
othercomprehensive
income32,9797,921

313,243

ChangesCash dividends(5,456)

Profit attributable to ownersof the parent

18,829Purchase of treasury stock(952)

Disposal of treasury stock0

Cancellation of treasury
stock-Equity transactions with
non-controlling interests(0)

Changes other thanshareholders’ equity
accounts (net)10,95769(45)

963

11,944822

12,767

Total changes

10,95769(45)

963

11,944822

25,188

Balance, end of period

43,576

72

1,006

268

44,924

8,743

338,431NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2022

Current 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, atcost

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)005,975-

Disposal of treasury stock0

Cancellation of treasury
stock

(0)

Equity transactions with
non-controlling interests

(0)

(0)

Changes in scope ofconsolidation

(6)

(6)

(5,975)

Changes in scope of equity
affiliates

77

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 treasurystock-Equity transactions with
non-controlling interests(0)

Changes in scope ofconsolidation(6)

Changes in scope of equity
affiliates
Changes other thanshareholders’ equity
accounts (net)

7(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, 2022

(4) Consolidated Statements of Cash Flows(Millions of yen)
Current Consolidated
Fiscal Year(April 1, 2021 March 31, 2022)

Prior Consolidated
Fiscal Year
(April 1, 2020 March 31, 2021)
Operating Activities
Income before income taxes
Depreciation and amortization other than amortization ofgoodwill
Loss on impairment of fixed assets
Amortization of goodwill
Subsidy income
Share of loss of entities accounted for using equity method
Increase (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 in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) 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
Purchases of investments in capital
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
Decrease (increase) in short-term loans receivable included inother current assets, net
Decrease (increase) in time deposits, net
Proceeds from subsidy income
Payments of leasehold and guarantee deposits
Other
Net cash provided by (used in) investing activities

29,27239,557

11,008

11,216

1,824
2,344(163)
327
1,395
(1,174)(1,312)
1,064
(24)

2,974
2,478
(75)
1,031
(599)
(869)
(1,551)
1,176
(778)

(8,419)(7,285)

155

1,436

(17,641)(1,034)8,623
2,544
28,7971,950(1,067)(9,288)20,391(34,234)(49,346)
20,465
4,859(9,544)
1,926(1,202)(8,956)(17,776)(8,864)448(704)(3,260)
6,027
(47)
57

(8,830)326(1,624)(1,317)
7,736
890

-

(3,848)

8,010

587

319

(83)

290
163
202
2,643

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Fiscal Year Ended March 31, 2022

Prior Consolidated
Fiscal Year
(April 1, 2020 March 31, 2021)
Financing activities
Increase in short-term loans, net(Decrease) increase in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash (used in) provided by financing activities
Effects of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents, at end of the period

658(22,000)
4,350(1,891)(952)(5,456)(290)(285)(25,866)913(1,918)50,471
48,553(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2021 March 31, 2022)
33,32517,0001,900(12,039)(6,006)(5,876)(543)(477)
27,282
2,942
4,783
48,55353,336