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

February 8, 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:
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): February 10, 2023
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, 2023
(April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results
Net sales
For the third quarter ended Millions of yen
695,680
December 31, 2022
574,139
December 31, 2021

Gross profit%

21.2
26.5

(Note) Comprehensive income

Millions of yen

118,476
104,107

Operating income
%

13.8
24.4

Millions of yen

Profit attributable toowners of the parent

Ordinary income%

27,43828,151(% = year-on-year change)

-2.5
75.2

Millions of yen

27,44530,170%-9.0
75.8

Millions of yen

20,037
22,230Third quarter ended December 31, 2022: ¥45,427 million (66.1%)
Third quarter ended December 31, 2021: ¥27,354 million (9.1% decrease)
Earnings per share

For the third quarter ended
December 31, 2022
December 31, 2021

Earnings per share (diluted)
Yen

Yen

168.78182.40−−(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

December 31, 2022
March 31, 2022

Millions of yen

801,429
739,720(Reference) Equity capital

Shareholders’equity ratio

Net assets per share%

387,236
355,092

Yen

47.0
46.5

3,199.33
2,868.22

As of December 31, 2022: ¥ 376,319 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 Share
3Q
Fiscal year end
Yen

24.00
30.00

Yen−−Yen

AnnualYen

30.00

54.00

30.00

60.00

%

-9.9
34.3

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 pershare%

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: No
ii. 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)
December 31, 2022
120,908,285 shares March 31, 2022
120,908,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
December 31, 2022
3,283,731 shares

March 31, 2022

Average number of shares during the period
December 31, 2022
118,717,386 shares

December 31, 2021

881,767 shares

121,878,419 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, 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
Other
Total 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)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2022)

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

43,956
324,014
163,578
2,521
16,594
18,792(1,243)568,21472,55475,62629,492
5,912
29,66465,07030,742
4,731
38,47073,94475,600
24
3,139
3,572
5,583
(112)
87,809225,434
739,720

71,128
17
3,393
3,540
5,662
(98)
83,644233,215
801,429NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Third Quarter Ended December 31, 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
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
incomeNon-controlling interests
Total net assets
Total liabilities and net assets(Millions of yen)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2022)

149,036
73,121
8,752
25,00010,0007,100
7,648
497
26,678307,836

158,791
70,977
4,055
53,000
－
2,827
5,344
291
27,232
322,519

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

30,00033,6698,920
13,3305,752
91,672
414,192

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

9,699
10,636292,668(6,154)
306,849

31,732
178
13,690(161)

29,11534
40,345(25)

45,441

69,46910,830355,092
739,720

10,917387,236
801,429NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Third Quarter Ended December 31, 2022

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Nine-month periods ended December 31, 2022 and 2021

(Millions of yen)

Nine-month period ended
December 31, 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 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
Gain on sales of investments in capital ofsubsidiaries and affiliates
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, 2022

(April 1, 2021 – December 31, 2021)(April 1, 2022 – December 31, 2022)

574,139
470,031
104,10775,95528,151

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

108
1,240
206
118
964
561
3,199

74
1,401
184
402
115
332
2,510

861
319
1,181
30,170

2,144
359
2,503
27,445

12
2,324

140
2,617

－

52

42－

304
2,684

1
2,812

176
407
617138487
7
1,349

59

466

201
1,023
31,831
8,544
23,286
1,056
22,23085
2,435
27,822
7,193
20,628591
20,037

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Third Quarter Ended December 31, 2022

(Quarterly Consolidated Statements of Comprehensive Income)Nine-month periods ended December 31, 2022 and 2021

(Millions of yen)
Nine-month period ended
December 31, 2021

Nine-month period ended
December 31, 2022

23,286

20,628(3,849)
(33)
7,919
(208)

(2,606)(144)
26,944
135

240

468

4,06727,354

24,79845,42725,596
1,758

44,065
1,361(April 1, 2021 – December 31, 2021) (April 1, 2022 – December 31, 2022)

Profit for the period
Other comprehensive income
Net unrealized holding loss on securities
Deferred loss 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