Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2024
<Under Japanese GAAP>

November 1, 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
Filing of quarterly report (scheduled): November 8, 2023
Start of distribution of dividends (scheduled): December 4, 2023
Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: Yes (for analysts and institutional investors)(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results
Net sales
For the second quarter
ended
September 30, 2023
September 30, 2022

Gross profitOperating 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%

Millions of yen%

450,199455,549-1.2
21.9

78,896
79,383-0.6
15.5

14,48319,891-27.2
2.0

14,24520,284-29.8-0.9

10,247
15,594-34.3
6.6(Note) Comprehensive income

Second quarter ended September 30, 2023: ¥31,306 million (15.0% decrease)
Second quarter ended September 30, 2022: ¥36,815 million (106.3%)
Earnings per share

For the second quarterended
September 30, 2023
September 30, 2022

Earnings per share (diluted)
Yen

Yen

88.48
130.95−−(2) Consolidated Financial Position
Total assets

Net assets per share

Millions of yen

Millions of yen%Yen784,728
762,688392,259
378,38849.1
48.2

3,368.93
3,139.26

September 30, 2023
March 31, 2023
(Reference) Equity capital

Shareholders’equity ratio

Net assets

As of September 30, 2023: ¥385,198 million
As of March 31, 2023: ¥367,675 million

2. Dividends
1Q
For the year ended (or ending)March 2023
March 2024March 2024 (forecast)

2Q

Annual Dividends per Share
3Q
Fiscal year end

AnnualYenYen

Yen

Yen

Yen−−

30.00
40.00

−

40.00

70.00

−

40.00

80.00

(Note) Revisions to the latest dividends forecast: No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
Millions of yen

Full fiscal year

900,000

Gross profit%-1.4

Millions of yen

Operating income% Millions of yen

163,000 4.9% Millions of yen

30,000 -10.1

Profit attributable toowners of the parentOrdinary income

29,000%Millions of yen

22,500-10.8%-4.8

Earningsper shareYen

195.86(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 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)
September 30, 2023
117,908,285 shares March 31, 2023
117,908,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2023
3,569,899 shares

March 31, 2023

Average number of shares during the period
September 30, 2023
115,817,285 shares

September 30, 2022

786,718 shares

119,089,430 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 Second Quarter Ended September 30, 2023

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2023)
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
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)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2023)

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

40,817
324,546
137,639
3,055
13,52020,118(809)
538,888

82,06486,50229,004
4,337
35,58768,92829,4643,549
39,03572,04869,743
17
2,645
3,857
5,475
(176)
81,562
232,556
762,688

75,268
26
2,844
3,754
5,572
(176)
87,289245,840
784,728

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 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 directorsOtherTotal 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)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2023)

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

156,759
55,9432,964
36,000
4,057
6,478
134
28,289290,627

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

30,00031,474
13,306
11,31813,21130
2,499
101,841
392,4699,699
10,636290,279(1,550)309,064

9,699
9,348
295,830(8,228)306,650

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

32,729300
45,912(394)
78,547
7,061
392,259784,728

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2023

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)Six-month periods ended September 30, 2023 and 2022

(Millions of yen)Six-month period ended
Six-month period ended
September 30, 2022
September 30, 2023
(April 1, 2022 - September 30, 2022) (April 1, 2023 - September 30, 2023)
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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
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 investments securities
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

455,549
376,166
79,38359,491
19,891

450,199
371,30278,89664,413
14,483

57
831
124
165
449
212
1,841

130
778
117
217
539
236
2,020

1,207
240
1,448
20,284

1,924
334
2,258
14,245

127
1,335
－1
1,465

55923
500
45
1,524

28
205
7457
23722
21,0275,000
16,026431
15,594

3
696
21
104
63888
14,881
4,256
10,625377
10,247

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2023

(Quarterly Consolidated Statements of Comprehensive Income)Six-month periods ended September 30, 2023 and 2022

(Millions of yen)Six-month period ended
Six-month period ended
September 30, 2022
September 30, 2023
(April 1, 2022 - September 30, 2022) (April 1, 2023 - September 30, 2023)Profit for the period
Other comprehensive income
Net unrealized holding (loss) gain 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

16,026

10,625(2,552)363
22,155
90

3,797
307
15,753
331

731

491

20,78936,815

20,681
31,30635,3581,457

30,184
1,121

NAGASE & CO., LTD. (8012)Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2023

(3) Quarterly Consolidated Statements of Cash Flows
Six-month periods ended September 30, 2023 and 2022

(Millions of yen)Six-month period ended
September 30, 2022

(April 1, 2022 - September 30, 2022)

Operating activities
Income before income taxes
Depreciation and amortization other than amortization ofgoodwill
Amortization of goodwill
Subsidy income
Increase in retirement benefit liability(Increase) decrease in retirement benefit asset
Interest and dividend income
Interest expenses
Exchange gain, netGain on sales of investment securities, investments incapital, shares of subsidiaries and affiliates, andinvestments in capital of subsidiaries and affiliates, net
Increase in notes and accounts receivable(Increase) decrease in inventories(Decrease) increase in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Proceeds from subsidy income
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
Purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of investments in capital
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Increase in short-term loans receivable included in othercurrent assets
Decrease in time deposits, net
OtherNet cash used in investing activities
Financing activities
Increase (decrease) in short-term loans, net
Increase (decrease) in commercial paper, net
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
Payments for purchases of shares of subsidiaries not
resulting in change in scope of consolidation
Other
Net cash provided by (used in) financing activities

Six-month period ended
September 30, 2023

(April 1, 2023 - September 30, 2023)

21,027

14,881

5,895

6,662

1,246
－
379
(27)
(889)
1,207
(2,823)

1,288
(500)
501
246
(908)
1,924
(1,314)(1,327)(902)(11,298)(11,960)(6,307)(3,880)(8,758)
1,073(1,156)－(9,140)(17,982)(11,599)
24,901
10,002(2,272)
42,9101,024(2,040)500(4,161)
38,232(5,725)495(2,370)
(228)
1,651
－

(4,947)93(2,438)
(394)
1,604
(202)

－

(244)

(601)

(245)

239
550
(5,987)322
40(6,411)

6,389
14,000(529)
10,000(10,000)(3,227)(3,600)(1,133)(16,269)(2,000)(17)－－(6,677)(4,696)(603)－(6,002)(347)
11,550(422)(36,689)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2023

(Millions of yen)Six-month period ended
September 30, 2022

(April 1, 2022 - September 30, 2022)

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
Decrease in cash and cash equivalents resulting from changes
in fiscal year-end of consolidated subsidiaries
Cash and cash equivalents at end of the period

Six-month period ended
September 30, 2023

(April 1, 2023 - September 30, 2023)

4,754(7,664)53,336

5,082
213
40,331(204)－

45,46740,545