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

November 4, 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
Filing of quarterly report (scheduled): November 10, 2022
Start of distribution of dividends (scheduled): December 5, 2022
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, 2023
(April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results
Net sales
For the second quarter
ended
September 30, 2022
September 30, 2021

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%

Millions of yen%

455,549
373,76221.9
30.5

79,38368,73415.5
27.8

19,891
19,499118.2

2.0

20,284
20,467

111.2

-0.9

15,594
14,622

6.6
43.5(Note) Comprehensive income

Second quarter ended September 30, 2022: ¥36,815 million (106.3%)
Second quarter ended September 30, 2021: ¥17,849 million (11.6% decrease)
Earnings per share

For the second quarter
endedSeptember 30, 2022
September 30, 2021

Earnings per share (diluted)
Yen

Yen

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

Net assets

Millions of yen

September 30, 2022
March 31, 2022

Millions of yen

801,956
739,720(Reference) Equity capital

Shareholders’equity ratio

Net assets per share%

383,661
355,092

Yen

46.5
46.5

3,148.87
2,868.22

As of September 30, 2022: ¥ 372,557 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

YenYenAnnualYen−

30.00

54.00

−

30.00

60.00

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%

9.9Yen241.35(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 aftererror correctionsi.
Changes in accordance with revisions to accounting and other standards: Noii. 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)
September 30, 2022
120,908,285 shares March 31, 2022
120,908,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2022
2,593,465 shares

March 31, 2022

Average number of shares during the period
September 30, 2022
119,089,430 shares

September 30, 2021

881,767 shares

122,298,419 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 Second Quarter Ended September 30, 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
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
OtherTotal 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, 2022)

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

46,124316,472
169,152
2,134
15,177
19,945(1,247)567,760

72,554

77,121

29,492
5,912
29,66465,07030,9595,125
35,81571,89975,600
24
3,139
3,572
5,583
(112)
87,809225,434
739,720

72,459
19
3,338
3,572
5,892
(108)
85,174
234,196
801,956NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 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
OtherTotal current liabilities
Long-term liabilities
Bonds
Long-term loansDeferred 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)
Second Quarter, Current
Consolidated Fiscal Year(September 30, 2022)

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

152,353
90,138
8,348
39,000
－
3,456
7,323
241
27,732
328,592

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

30,00029,223
11,265
13,517
5,695
89,702418,295

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

9,699
10,639291,775(4,761)
307,353

31,732
178
13,690(161)

29,170542
35,562(71)

45,441

65,204

10,830355,092
739,720

11,104
383,661
801,956NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2022

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Six-month periods ended September 30, 2022 and 2021

(Millions of yen)Six-month period ended
Six-month period ended
September 30, 2021
September 30, 2022
(April 1, 2021 - September 30, 2021) (April 1, 2022 - September 30, 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
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
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

373,762305,027
68,734
49,234
19,499455,549
376,166
79,38359,491
19,891

76
725
139
12
524
248
1,727

57
831
124
165
449
212
1,841

565
194
760
20,467

1,207
240
1,448
20,284

11
1,457
271
1,740

127
1,335
1
1,465

173
359
－
173

28
205
7
457

59

－

163
930
21,276
5,776
15,500877
14,62223722
21,0275,000
16,026431
15,594

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2022

(Quarterly Consolidated Statements of Comprehensive Income)Six-month periods ended September 30, 2022 and 2021

(Millions of yen)Six-month period ended
Six-month period ended
September 30, 2021
September 30, 2022
(April 1, 2021 - September 30, 2021) (April 1, 2022 - September 30, 2022)
Profit for the period
Other comprehensive income
Net unrealized holding loss on securities
Deferred (loss) gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Non-controlling interests

15,50016,026(2,588)
(19)
5,040
(139)

(2,552)363
22,155
90

56

731

2,349
17,84920,78936,815

16,5681,280

35,3581,457

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2022

(3) Quarterly Consolidated Statements of Cash Flows
Six-month periods ended September 30, 2022 and 2021

(Millions of yen)Six-month period ended
September 30, 2021

(April 1, 2021 - September 30, 2021)

Operating activities
Income before income taxes
Depreciation and amortization other than amortization ofgoodwill
Amortization of goodwill
Increase 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 incapital, shares of subsidiaries and affiliates, andinvestments in capital of subsidiaries and affiliates, net
Increase in notes and accounts receivable
Increase in inventories
Increase (decrease) in notes and accounts payable
OtherSubtotal
Interest 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
Purchases of investments in securities
Proceeds from sales of investments in securities
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Increase in short-term loans receivable included in othercurrent assets(Increase) decrease in time deposits, net
Payments of leasehold and guarantee deposits
Other
Net cash used in investing activities
Financing activities
Increase 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
OtherNet cash provided by financing activities
Effects of exchange rate changes on cash and cash equivalents
Net decrease 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, 2022

(April 1, 2022 - September 30, 2022)

21,27621,027

5,598

5,895

1,243
77(435)
(802)
565
(259)

1,246
379(27)(889)
1,207(2,823)(1,398)(1,327)(16,541)(22,765)
6,507(2,406)(9,339)894(588)(4,591)(13,625)(11,298)(11,960)(6,307)(3,880)(8,758)
1,073(1,156)(9,140)(17,982)(4,778)
304
(657)
(741)
1,613

(5,725)495(2,370)
(228)
1,651

587

－

(14)

(601)

(251)
(1,352)342(4,947)239－
550(5,987)

16,727
10,0001,900(6,931)－－(3,543)(2,963)(543)(228)
14,417352(3,803)48,553

6,389
14,000－(529)
10,000(10,000)(3,227)(3,600)(1,133)(347)
11,5504,754(7,664)53,336－(204)

44,74945,467