Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024
<Under Japanese GAAP>May 8, 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:
Kazuhiro Hanba, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Annual general meeting of stockholders: June 21, 2024
Start of distribution of dividends (scheduled): June 24, 2024
Securities report filing (scheduled): June 24, 2024
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, 2024
(April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results
Net sales
Millions of yen

900,149
912,896

FYE March 2024
FYE March 2023
(Note) Comprehensive income(% = year-on-year change)

Gross profit
%

-1.4
17.0

Millions of yen

164,719
155,410

Operating income
%

6.0
11.4

Millions of yen%

30,61833,371-8.2-5.4

Profit attributable toowners of the parent

Ordinary income
Millions of yen%

30,591
32,528-6.0-10.9

Millions of yen

22,402
23,625

%

-5.2
-8.9

FYE March 2024: ¥46,335 million (22.0%)
FYE March 2023: ¥37,994 million (32.8%)

Earnings per share

Earnings per share(diluted)

Yen

Yen

194.96199.54FYE March 2024
FYE March 2023
(Reference)Equity in earnings of affiliates−−

FYE March 2024:
FYE March 2023:

Ordinary income/total assets

Return on equity

Operatingincome/net sales

%

%

%

5.9

3.9

3.4

6.6

4.3

3.7

¥568 million¥318 million(2) Consolidated Financial Position
Total assets
Millions of yen

792,336
762,688

FYE March 2024
FYE March 2023
(Reference) Equity capital

Shareholders’equity ratio

Net assets
Millions of yen

401,315
378,388

Net assets per share
%

Yen

49.7
48.2

3,463.84
3,139.26

FYE March 2024: ¥394,064 million
FYE March 2023: ¥367,675 million(3) Consolidated Cash FlowsFYE March 2024
FYE March 2023

Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents,
end of the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

72,9599,414(11,627)(8,031)(48,046)(17,247)

59,18540,331

2. Dividends
Total dividends
paid(full fiscal year)

Annual Dividends per Share
1Q
FYE March 2023
FYE March 2024
FYE March 2025 (forecast)

2Q

Fiscalyear end

3Q

Payout ratio(consolidated)

Dividends/
net assets(consolidated)

Annual

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

−
−
−

30.00
40.00
40.00

−
−
−

40.00
40.00
45.00

70.00
80.00
85.00

8,245
9,147

34.9
40.8
33.0

2.3
2.4

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2025
(April 1, 2024 to March 31, 2025)(% = year-on-year change)

Net sales
Full fiscal year

Gross profit

Operating income

Ordinary income

Profit attributable to Earnings pershareowners of the parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

940,000

4.4

180,000

9.3

36,50019.2

35,20015.1

28,00025.0254.30* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scopeof 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: Yesiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No(Note) For details, please refer to 3. Consolidated Financial Statements and Notes (5) Notes Related to Consolidated Financial Statements(Change in Accounting Policy), on P.15 of this document.

(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, 2024
117,908,285 shares March 31, 2023
117,908,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
March 31, 2024
4,143,115 shares

March 31, 2023

786,718 shares

Average number of shares during the period
March 31, 2024
114,911,971 shares

March 31, 2023

118,398,261 shares(Note) The number of treasury shares as of the fiscal period end includes Company shares held by the Stock-Granting
Trust for Directors (288,500 shares as of March 31, 2024). Treasury stock deducted from the calculation of the average
number of shares during the period includes Company shares held by the Stock-Granting Trust for Directors (289,923
shares as of March 31, 2024).
* 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.
For matters related to earnings forecasts, please refer to 1. Business Performance, (4) Future Outlook, on P.5 of this document.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

Attachments
1. Business Performance2(1) Review of Business Performance2(2) Review of Financial Position

4(3) Summary of Cash Flows

4(4) Future Outlook

5(5) Dividend Policy and Dividends for the Fiscal Years Ending March 2023 and 2024

6

2. Basic Policy on the Selection of Accounting Standards

6

3. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheets

7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

9(3) Consolidated Statements of Changes in Shareholders’ Equity

11(4) Consolidated Statements of Cash Flows

13(5) Notes Related to Consolidated Financial Statements

15(Assumption for Going Concern)

15(Change in Accounting Policy)

15(Additional Information)

15(Segment Information, etc.)

15(Per-Share Data)

22(Significant Subsequent Events)

22

1

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

1. Business Performance(1) Review of Business Performancea.

General Summary of Results

During the current consolidated fiscal year, concerns emerged about a slowdown in the global economy due to the protracted situation in
Ukraine and the Middle East, continued inflation and accompanying monetary tightening policies in the United States and Europe, andstagnation in China's real estate market.
As an overview of the regions in which the NAGASE Group does business, we saw a slowing in economy of Greater China, as thestagnant real estate market drove down consumer spending. In the Americas, prices continue to rise, albeit at a slower pace. The economy
is expected to continue picking up with increased personal consumption and employment growth. In ASEAN, the economy has beensteady, mainly due to domestic and inbound demand. In Japan, downside factors include rising interest rates due to the lifting of thenegative interest rate policy, sharp fluctuations in foreign exchange rates due to geopolitical risks and other factors, and rising negativity
in consumer sentiment. However, the economy should continue to recover with improved real wages, firm corporate capital investment,
and continued inbound travel demand.
In this environment, earnings for the current consolidated fiscal year were as follows.
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year

(Millions of yen)
ChangeChange (%)(March 31, 2023)(March 31, 2024)

Net sales

912,896

900,149(12,746)(1.4)

Gross profit

155,410

164,719

9,309

6.0

Operating income

33,371

30,618(2,753)(8.2)

Ordinary income

32,52830,591(1,937)(6.0)

Profit before income taxes
Profit attributable to owners

33,13732,665

(472)

(1.4)

23,62522,402(1,222)(5.2)

of the parent

・Gross profit increased due in part to the weakening yen.
・Operating income declined due to an increase in selling, general and administrative expenses despite an increase in gross profit. For
details see b. Segment Summary.
・Profit attributable to owners of the parent decreased ¥1.2 billion to ¥22.4 billion, despite a decrease in loss on valuation of investment
securities.

b.

Segment Summary

The following describes performance by segment.
Note that as of October 1, 2023 of the consolidated fiscal year under review, the categorizations for reportable segments have been
partially amended. Year-on-year amounts and ratios for the previous fiscal year are calculated after rearranging reportable segmentclassifications to match those of the current fiscal year.
*For the details of the changes in business segmentation, please refer to (Segment Information Etc.) on P.15 of this document
Functional Materials
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year

(Millions of yen)
ChangeChange (%)(March 31, 2023)(March 31, 2024)

Net sales

156,161

146,804(9,356)(6.0)

Gross profit

29,88928,123(1,765)(5.9)

Operating income

10,486

8,629(1,856)(17.7)

・Sales decreased for coating materials.
・Sales decreased for raw materials for the electronics industry, including semiconductor-related products
・Sales of digital print processing materials were lower, as was profitability in the manufacturing business
2

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

・Operating income decreased due to a decrease in gross profit
Advanced Materials & Processing
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2023)(March 31, 2024)(Millions of yen)
ChangeChange (%)

Net sales

220,955

198,543(22,412)(10.1)

Gross profit

24,24823,614

(634)

(2.6)

Operating income

7,678

6,804

(874)

(11.4)

・Sales of resin declined due to lower demand in the office equipment, appliance, and video game device market and the impact of
inventory adjustments by customers
・Operating income decreased due to a decrease in gross profit
Electronics & Energy
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2023)(March 31, 2024)(Millions of yen)
ChangeChange (%)

Net sales

136,975

144,758

7,782

5.7

Gross profit

30,77034,226

3,456

11.2

Operating income

9,273

11,327

2,053

22.1

・Despite weakening semiconductor market conditions, sales of materials to the semiconductor industry increased due to product line
expansion・Sales increased due to higher demand for formulated epoxy resins, mainly for server applications and mobile device applications
・Sales increased for photolithography materials for display applications
・Operating income increased due to an increase in gross profit
Mobility
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year

(Millions of yen)
ChangeChange (%)(March 31, 2023)(March 31, 2024)

Net sales

125,560

132,117

6,556

5.2

Gross profit

14,432

15,235803

5.6Operating income

4,794

4,933

138

2.9

・Sales increased for resins, mainly due to boosted automobile production and expanded market share among existing customers.
・Sales increased for functional materials and functional components for interior and exterior fittings and electrification
・Operating income increased due to an increase in gross profit
Life & Healthcare
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2023)(March 31, 2024)(Millions of yen)
ChangeChange (%)

Net sales

273,161

277,779

4,617

1.7

Gross profit

55,90763,436

7,528

13.5

Operating income

10,581

10,321

(259)

(2.5)

・Overall Prinova Group sales increased due to operations of the new plant in Utah
・Sales at Nagase Viita (name changed from Hayashibara on April 1, 2024) increased, mainly due to an increase in sales of cosmetic
material
・Sales increased for pharmaceutical raw materials and intermediates
・Operating income decreased, despite higher gross profit, as personnel expense and other selling, general and administrative expenses
increased at the Prinova Group and profit contribution from the new Utah plant was delayed
3

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

OthersNo special matters to disclose.

(2) Review of Financial Position
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year

(Millions of yen)
ChangeChange (%)(March 31, 2023)(March 31, 2024)

Current assets

530,132

542,470

12,337

2.3

Non-current assets

232,556

249,865

17,309

7.4

Total assets

762,688792,336

29,647

3.9

Liabilities

384,300

391,021

6,720

1.7

Net assets

378,388

401,315

22,926

6.1

48.2

49.7

+1.5p

－

Shareholders’ equity ratio (%)

・Current assets increased due to an increase in cash and time deposits and accounts receivable, despite a decrease in inventories, etc.
・Non-current assets increased due to an increase in property, plant and equipment and intangible fixed assets, and the fair values ofinvestments in securities
・Liabilities increased mainly due to an increase in accounts payable, accrued income taxes, and lease liabilities, despite a repayment inshort-term loans
・Net assets increased mainly due to the recording of profit attributable to owners of the parent and an increase in net unrealized holding
gain on securities and translation adjustments, despite decreases from purchases of treasury stock and payments of dividends
・As a result, the Company recorded a shareholders’ equity ratio of 49.7%, up 1.5 points compared to 48.2% from the end of the priorconsolidated fiscal year(3) Summary of Cash Flows
Prior Consolidated Fiscal Year

(Millions of yen)
Current Consolidated Fiscal Year

(March 31, 2023)(March 31, 2024)

Cash flows from operating activities

9,414

72,959Cash flows from investing activities(8,031)(11,627)

Cash flows from financing activities(17,247)(48,046)

・Net cash provided by operating activities was mainly the result of an increase in cash of ¥33.0 billion due to a decrease in working
capital, the recording of ¥32.6 billion in profit before income taxes, and ¥13.9 billion in reserve of funds due to depreciation andamortization. These amounts were offset in part by ¥8.8 billion in income taxes paid.
・Net cash used in investing activities was mainly the result of cash outlays of ¥14.0 billion and ¥3.7 billion for the purchase of property,
plant and equipment and purchase of intangible fixed assets, respectively, offset in part by ¥7.1 billion in proceeds from the sales ofinvestments in securities
・Net cash used in financing activities was mainly the result of a ¥22.4 billion net decrease in short-term loans, ¥9.2 billion in dividend
payments, cash outlays of ¥8.0 billion in purchases of treasury stock, and ¥6.0 billion in the acquisition of stock of a subsidiary not
resulting in a change in the scope of consolidation.

4

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

FYE March
2020

FYE March
2021

FYE March
2022

FYE March
2023

FYE March2024

Shareholders’ equity ratio

49.9％

51.5％

46.5％

48.2％

49.7％

Shareholders' equity ratio based on market
value

25.9％

33.3％

29.5％

31.3％

36.7％

Interest-bearing debt to cash flow ratio(years)

4.1

5.8

-

19.1

2.3

Interest coverage ratio (times)

23.9

19.1

-

3.1

18.9

Shareholders’ equity ratio: Equity capital/total assets
Shareholders' equity ratio based on market value: Market capitalization/total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/operating cash flow
Interest coverage ratio: Operating cash flow/interest payments(Note) 1. Indicators are calculated based on consolidated figures.
2. Market capitalization is calculated using the closing price at the end of the year multiplied by the number of outstanding
shares at the end of the year (less treasury stock at cost).
3. Operating cash flow is net cash provided by operating activities as shown in the consolidated statements of cash flows.
Interest-bearing debt is all liabilities in the consolidated balance sheets for which interest is payable. Interest payments are
the amount of interest paid as presented in the consolidated statements of cash flows.
4. Interest-bearing debt to cash flow ratio or interest coverage ratio are not presented for the fiscal year ended March 31,
2022, as operating cash flow was negative.

(4) Future Outlook
a. Performance Forecast for the Fiscal Year Ending March 2025
The outlook for the business environment surrounding the NAGASE Group in the next fiscal year is uncertain, given theunprecedented rise in geopolitical risks, including a new outbreak of military conflict in the Middle East amid prolonged
aggression in Ukraine. Elections are scheduled in many countries around the world, and there are concerns that changes indomestic politics could have a significant impact on the international order. Observers also expect further acceleration of
supply chain restructuring, including a revision in the location of manufacturing bases in response to heightened geopoliticalrisks.
Given this environment, we expect many of the business sectors related to the NAGASE Group will perform well. We
formulated our earnings forecast for the next fiscal year based on the following assumptions.
In our food-related business, the Prinova Group expects the downward trend from the previous fiscal year the foodingredients market to rise from a low point. The company is also improving productivity at its Utah plant. Nagase Viita(name changed from Hayashibara on April 1, 2024) expects strong sales of food ingredients due to increased inbound travel
demand. In the semiconductor-related business, the Nagase ChemteX formulated epoxy resin products for high-end servers
should continue to perform well. We also expect a full-scale recovery semiconductors, which had continued to perform
sluggishly, for other applications in beginning in the second half of the fiscal year. The automobile-related business should
recover, and we expect performance to be strong. On a non-consolidated basis, Nagase & Co. incurred approximately ¥3.5
billion in favorable differences under the accounting treatment for retirement benefit actuarial differences. We expect toamortize the recognized differences in a lump sum in the following year under the accounting policy in question, which will
likely result in a significant decrease in expenses.
These forecasts have been developed based on foreign exchange rates of ¥148 to the U.S. dollar and ¥20 to the RMB.
Further, these forecasts were calculated based on information available at the time and on reasonable determinations ofconditions. Actual results may vary significantly due to a variety of factors, including business conditions overseas and inJapan and exchange rate trends. Any issues that require disclosure in the future will be disclosed promptly if importantdevelopments relating to our forecasts for the fiscal year ending March 2025 occur.

5

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(Millions of yen)
Net sales

Gross profit

Operating income

Ordinary income

Profit attributable toowners of the parent

FYE March 2025 Forecast

940,000

180,000

36,50035,20028,000FYE March 2024 Actual

900,149

164,719

30,61830,591

22,402

Change

+4.4%

+9.3%

+19.2%+15.1%+25.0%

b. Operating Income Forecast by Segment(Millions of yen)FYE March 2024
ActualFunctional Materials

FYE March 2025
Forecast

Change

6,158

6,800

+10.4%

5,313

5,500

+3.5%

Electronics & Energy

8,852

8,600

(2.8%)

Mobility

3,614

3,200

(11.4%)

Life & Healthcare

8,006

9,400

+17.4%

Others(1,327)3,000-

Total Operating Income

30,61836,500+19.2%

Advanced
Processing

Materials&(*) Effective as of the fiscal year ending March 31, 2025, the Company revised in part our method for allocating company-wide
shared expenses. To better manage the performance of reportable segments, we will allocate certain company-wide sharedexpenses, previously included under “Others”, to each reportable segment. Segment information for the fiscal year ended March
31, 2024 in the table above is based on the allocation method after the change.

(5) Dividend Policy and Dividends for the Fiscal Years Ending March 2024 and 2025

At a meeting held May 8, 2024, the Company's board of directors resolved to revise the Company's shareholder return policy to a
100% total return ratio. This policy represents a limited measure for the two years through fiscal 2025, the final year of our
Medium-Term Management Plan ACE 2.0, in order to achieve the ACE 2.0 quantitative ROE target of at least 8.0%.

The Company intends to pay dividends in the same manner as before, following a basic policy of continuing dividend increases inconsideration of consolidated earnings and financial structure, while also considering consolidated cash flows and investment conditions.
At the same time, the Company will strive to improve profitability and strengthen our corporate structure.
The Company capped the amount of share buybacks at the level of policy holding share sales during the course of ACE 2.0. However,based on the preceding policy, we intend to carry out share buybacks opportunistically and with an eye to efficiency.
The Company plans to pay a year-end dividend of ¥40 per share for the current fiscal year, resulting in an annual dividend of ¥80 per
share including the interim dividend. This dividend represents an increase of ¥10 per share compared with the previous fiscal year.
After a comprehensive consideration of our stability and continuity of dividend payments, we forecast a full-year dividend of ¥85 pershare for the next fiscal year. This dividend will consist of a ¥40 per share interim dividend and a ¥45 per share year-end dividend.

2. Basic Policy on the Selection of Accounting Standards
The NAGASE Group intends to use Japanese accounting standards for the time being to allow for inter-company comparability.
We have been studying the adoption of International Financial Reporting Standards (IFRS) for some time, and we plan to make theappropriate policy choice in the future, considering external trends and other factors.

6

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2023)
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
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

7

Current Consolidated Fiscal Year
(March 31, 2024)

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

59,410321,126
131,137
2,594
14,25914,881(940)
542,470

64,095(37,018)
27,07665,005(47,686)
17,31818,83942,415(23,585)
18,82982,06463,432(36,734)
26,69767,471(50,883)
16,58820,221
50,107(26,222)
23,88487,39229,004
4,337
35,58768,92827,884
2,761
38,70369,34969,743
17
2,645
3,857
5,475
(176)
81,562
232,556
762,688

76,225
326
6,217
4,596
5,935
(177)
93,123249,865
792,336NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2023)
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
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 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

8

Current Consolidated Fiscal Year
(March 31, 2024)

140,438
66,117
1,056
38,000
2,913
6,985
371
30,321
286,203156,352
50,731
6,946
37,00010,000
5,195
7,569
251
28,628302,675

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

20,00027,533
12,492
13,567
12,34560
2,345
88,345391,021

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

9,699
9,348
303,328(9,543)
312,832

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

33,763
119
44,846
2,503
81,232
7,250
401,315
792,336NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
Employee 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
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
Equity in earnings of affiliates
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
Gain on sales of shares of subsidiaries and affiliates
Gain on sales of investments in capital of subsidiaries
and affiliates
Gain on change in equity
Subsidy income
Other
Total 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 investment 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

9

Current Consolidated Fiscal Year
(April 1, 2023 March 31, 2024)

912,896
757,486
155,410900,149
735,430
164,719

22,95338,8394,421
396

22,43343,704
4,447
270

7,554

9,231

1,443
333
2,545
43,550122,038
33,371

2,275
282
2,627
48,827
134,100
30,618

197
1,537
243
12
318
656
2,967

610
1,553
248
635
568
705
4,321

3,211
598
3,810
32,528

3,744
604
4,348
30,591

144
6,587
52

83
5,591
-

147

-

449
25
7,406

512
46
6,234

87
998
2,838
7
2,120
466
277
6,797
33,137
9,621
(694)
8,927
24,210584
23,625

41
1,422
2,276
21
135
263
4,160
32,665
10,627(815)
9,812
22,853450
22,402

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2022 March 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

10

Current Consolidated Fiscal Year
(April 1, 2023 March 31, 2024)

24,21022,853(2,794)(186)
16,852
(564)

4,827
126
14,738
3,229

477

560

13,78437,99423,482
46,33536,8381,156

45,024
1,310

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(3) Consolidated Statements of Changes in Shareholders’ Equity
Prior Consolidated Fiscal Year (April 1, 2022 - March 31, 2023)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Retained earnings

10,639Less treasury stock, atcost

280,015

Total shareholders’equity(1,534)

298,820

ChangesCash dividends(7,150)(7,150)

Profit attributable to ownersof the parent

23,62523,625Purchase of treasury stock
Cancellation of treasury
stock(5,645)(5,662)(5,662)5,645-

Equity transactions with
non-controlling interests

(0)

(0)

Changes in scope of
consolidation

(3)

(3)

Changes in scope of equity
affiliates

(330)

(330)

Changes in fiscal year-end
of consolidated subsidiaries

(234)

(234)

Changes other thanshareholders’ equity
accounts (net)Total changes
Balance, end of period-(3)10,264(16)

10,244

9,699

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

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

31,732

178

Translation
adjustments
13,690Remeasurementsof defined benefit
plans

(161)

Total
Non-controlling
Total net assets
accumulated
interests
othercomprehensive
income45,441

10,830355,092

ChangesCash dividends(7,150)

Profit attributable to ownersof the parent

23,625Purchase of treasury stock(5,662)

Cancellation of treasury
stock

-

Equity transactions with
non-controlling interests(0)

Changes in scope of
consolidation(3)

Changes in scope of equity
affiliates(330)

Changes in fiscal year-end
of consolidated subsidiaries(234)

Changes other thanshareholders’ equity
accounts (net)(2,804)(186)

16,723(564)

13,169(117)

13,051

Total changes(2,804)(186)

16,723(564)

13,169(117)

23,295

Balance, end of period

28,928(7)30,414(726)

58,61010,713378,388

11

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

Current Consolidated Fiscal Year (April 1, 2023 - March 31, 2024)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Retained earnings

10,636

Less treasury stock, at
cost

290,279

Cumulative effects of changes
in accounting policies

Total shareholders’equity(1,550)309,064(72)

Restated balance

9,699

10,636(72)

290,207(1,550)308,992

ChangesCash dividends(9,281)(9,281)

Profit attributable to ownersof the parent

22,402

22,402

Purchase of treasury stock
Cancellation of treasury
stock
Equity transactions with
non-controlling interests(8,001)(8,001)7

7(1,287)(1,287)

Changes other thanshareholders’ equity
accounts (net)Total changes
Balance, end of period-(1,287)

13,121(7,993)

3,840

9,699

9,348

303,328(9,543)

312,832

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

28,928(7)Translation
adjustments
30,414Remeasurementsof defined benefit
plans

(726)

Total
Non-controlling
Total net assets
accumulated
interests
othercomprehensive
income58,61010,713Cumulative effects of changes
in accounting policies
Restated balance

378,388(72)

28,928(7)30,414(726)

58,61010,713378,315

ChangesCash dividends(9,281)

Profit attributable to ownersof the parent

22,402

Purchase of treasury stock(8,001)

Cancellation of treasury
stock

7

Equity transactions with
non-controlling interests(1,287)

Changes other thanshareholders’ equity
accounts (net)

4,834

126

14,431

3,229

22,622(3,462)

19,159Total changes

4,834

126

14,431

3,229

22,622(3,462)

22,999Balance, end of period

33,763

119

44,846

2,503

81,232

7,250

401,315

12NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(4) Consolidated Statements of Cash Flows(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2023 March 31, 2024)

Prior Consolidated
Fiscal Year
(April 1, 2022 March 31, 2023)
Operating Activities
Income before income taxes
Depreciation and amortization other than amortization of
goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Subsidy income
Share of gain of entities accounted for using equity method
Gain on change in equity(Decrease) increase in retirement benefit liability(Increase) decrease 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 in capital,
shares of subsidiaries and affiliates, and investments in capital ofsubsidiaries 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 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 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 scope of
consolidation
Proceeds from sales of shares of subsidiaries resulting in changeof scope of consolidation
Increase in short-term loans receivable included in other current
assets, net
Decrease in time deposits, net
Proceeds from subsidy income
Other
Net cash used in investing activities

13

33,13732,665

12,377

13,998

2,838
2,545
(25)
(318)
(449)
(609)
(55)
(1,734)
3,211
(891)

2,276
2,627
(512)
(568)
3,775
495
(2,164)
3,744(1,652)(6,312)(5,570)

2,120

135

(5,171)(1,275)(13,584)(1,462)
24,341
2,418(3,058)(14,286)
9,414(7,373)31,6268,844
188
82,5372,589(3,865)512(8,814)
72,959(12,029)
540(4,888)
(437)
7,474
178

(14,019)585(3,735)
(623)
7,154
(205)
-

-

(244)

2,040

-

(623)

(316)

337
25
(650)
(8,031)378(601)(11,627)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2023 March 31, 2024)

Prior Consolidated
Fiscal Year
(April 1, 2022 March 31, 2023)
Financing activities
Decrease in short-term loans, net
Increase (decrease) 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
Payments for purchases of shares of subsidiaries not resulting inchange in scope of consolidation
Other
Net cash used in 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
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

14(11,961)
13,0005,000(8,623)
10,000(10,000)(5,662)(7,150)(1,133)(22,408)(1,000)1,000(1,055)(8,001)(9,281)(603)-(6,025)(716)(17,247)
3,064(12,800)
53,336(670)(48,046)
5,569
18,85440,331(204)-

40,331

59,185

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(5) Notes Related to Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.

(Change in Accounting Policy)(Adoption of U.S. FASB Accounting Standards Codification (ASC) No. 326, Financial Instruments-Credit Losses)
Certain foreign consolidated subsidiaries that adopted U.S. GAAP apply ASC No. 326, Financial Instruments-Credit Losses, atthe beginning of the current consolidated fiscal year. As a result, the subsidiaries in question are required to revise the methods
used to measure financial instruments and recognize impairment of financial assets using the expected credit loss model.
In applying this accounting standard, the subsidiary recognized the cumulative effect as of the date of adoption, which ispermitted under the transitional provisions.
The impact of this accounting treatment on the quarterly consolidated statements of income is immaterial.
(Changes in Significant Hedge Accounting Methods)
The Company previously used the allocation method for foreign currency receivables and payables with foreign exchange
contracts, if said receivables and payables qualified for the allocation method. However, from the consolidated third quarter ofthe current fiscal year, the Company switched accounting methods to the principle accounting method.
As the Company reforms its enterprise system, the Company reviewed its management of foreign exchange contracts andchanged this approach to reflect derivative transactions more appropriately in Company financial statements.
Note that as impact from this change in accounting methods is minor, the change is not applied retroactively.

(Additional Information)(Stock-Based Compensation Plan)
Effective as of the previous consolidated fiscal year, the Company has adopted a stock-based compensation plan (“Plan”) for
directors (excluding outside directors) and executive officers (collectively, “Eligible Individuals”). The purpose of the Plan is toestablish a clear link between compensation for Eligible Individuals and Company performance and share value, as well as for
Eligible Individuals to share the benefits and risks associated with fluctuations in NAGASE share price with shareholders. In
this way, the NAGASE Group intends to raise awareness about contributing to improved business performance and increased
corporate value over the medium to long term.
(1) Overview
The Plan is a stock-based compensation plan under which a trust ("Trust") established by monetary contribution from theCompany acquires Company shares. The Company grants points to each Eligible Individual, and the Trust delivers the numberof Company shares equivalent to the points earned by each Eligible Individual. In principle, said delivery is made at the time of
the retirement the Eligible Individual.
(2) Company shares remaining in the Trust
Company shares remaining in the Trust are recorded as treasury stock under net assets in the balance sheet based on the carrying
value in the Trust (excluding incidental expenses). The carrying value of said treasury stock as of the end of the current
consolidated fiscal year was ¥612 million and the treasury stock in question amounted to 288,500 shares.

(Segment Information, etc.)
a. Segment Information
1. Reportable Segments(Change in Business Segments)
As of October 1, 2023 of the current consolidated fiscal year, the Company consolidated our original 11 business departments
into 7 to streamline business operations through expanding the scale and functions of each department. This consolidation ofbusiness departments resulted in the following changes to business segments.
The Color & Advanced Processing Department of the Advanced Materials & Processing segment was abolished and integrated
into the Performance Chemicals Department of the Functional Materials segment, and the Polymers Global AccountDepartment of the Advanced Materials & Processing segment.
Segment information provided for the previous consolidated fiscal year is based on post-change classification methods.
The following describes the major products and services handled by each reportable segment.

15

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

The Functional Materials segment is engaged in the sales of paints/inks, dyestuffs, pigments, additives, processed pigments,
dispersing elements, functional pigments, thermal paper materials, toner and inkjet materials, materials for adhesives, urethanematerials and auxiliary materials, plastic materials, plastic additives, industrial oil solutions, water processing raw materials,
surfactant raw materials, fluorochemicals, encapsulant materials, 5G materials, silicone materials, environmental solutions
and environment-related commercial products, sintered metal filters, conductive coatings, and more for the paints/inks,
dye/additive, resins, urethane foam, organic synthesis, surfactants, electronics chemicals, digital print processing materials,
communications equipment, water processing, metal processing, plastic and film processing, stationery, functional film andsheet, hygiene materials, and other industries.
The Advanced Materials & Processing Segment is engaged in the sales of thermoplastic resins, thermosetting resins, plastics
products, resin molding tools/dies, and more for the plastic compounds, masterbatch, raw resin material, resin molding,appliance and office automation device, electronics, packaging material, daily commodities, household goods, construction
material, and other industries.
The Electronics & Energy Segment is engaged in the sales of formulated epoxy resins, fluorine products, precision abrasives,semiconductor assembly materials and devices, adhesives and encapsulant materials, display panel components and devices,chemical management equipment for display manufacturing processes, low-temperature/vacuum equipment, liquid state
analysis equipment, LEDs, 3D printing products, solar panels, and other products for the semiconductor, electronic component,
AR/VR, environmental energy, 3D printing, heavy electrical and light electrical, HDD, automotive and aircraft, display, touch
panel, housing, lighting, renewable energy, large-scale commercial facility, and other industries.
The Mobility Segment is engaged in the sales of plastic products in general, materials for secondary batteries, interior andexterior materials, materials for functional components, products for electrification, sensor components, in-vehicle electronics
products, in-vehicle display-related components, self-driving-related products, and other products for the overall mobility
industry and related industries.
The Life & Healthcare segment is engaged in the sale of pharmaceutical/agricultural chemicals and materials, research
products, in vitro diagnostics, enzymes, food additives, food ingredients, sports nutrition products, nutrient premixes, additives
for cosmetics, feeds, surfactants, and medical appliances for the pharmaceutical, food and beverage, cosmetics, agricultural,
toiletries, and health care, and other industries. The segment offers radiation measurement and sleep measurement as one ofits main services. In addition, this segment sells cosmetics, health foods, and beauty foods directly to consumers.

2. Net Sales, Income (Loss), Assets, Liabilities, and Other Items by Segment
Accounting treatment in each reportable segment follows the principles and procedures of the accounting treatments used toprepare the Company’s consolidated financial statements.
Income in reportable segments is defined as operating income. Intersegment sales/transfers are based on actual market prices.

16

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

3. Information Related to Net Sales, Income (Loss), Assets, Liabilities, and Other Items by Segment
Prior Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable Segments
Advanced
Functional
Electronics
Materials &Materials& Energy
Processing

MobilityLife &
Healthcare

Total

Others(Note) 1

Total

Corporate Adjustments Consolidated(Note) 2(Note) 3(Note) 4

Net sales
Sales tocustomers

156,161

220,955

136,975

125,560

273,161

912,815

81

912,896－－

912,896

799

776

2,580

2,257

490

6,903

7,439

14,343－(14,373)－

Total

156,961

221,731

139,555

127,817273,651

919,718

7,521

927,239－(14,343)912,896

Segment income(loss)

10,486

7,678

9,273

4,794

10,58142,814108

42,922(9,932)381

33,371

Segment assets

130,562

113,358

77,66674,739240,442636,769

3,221

639,990

189,535(66,836)

762,688

Depreciation
and amortization

817

1,100

1,608

468

6,536

10,531

19

10,551

1,826－

12,377

Amortization of
goodwill

134

－

51

－

2,359

2,545

－

2,545

－

－

2,545

Unamortizedbalance of
goodwill

1,890

－

442

－

26,671

29,004－29,004－－29,004

Investments inequity affiliates

1,957

1,297

2,562

1,259

3,268

10,344104

10,449－(0)

10,448

Increase inproperty, plant,
and equipment
and intangible
fixed assets

1,591

1,006

1,908

279

5,737

10,524

7

10,531

6,642－

17,174

Intersegment
sales/transfers

Other items(Note) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information
processing services and professional services.
2. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others. Segment assets under
Corporate are assets not allocable to Reportable Segments or Others.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of Segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in“Consolidated”.

17

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable Segments
AdvancedElectronics
Functional
Materials && Energy
Materials
Processing

MobilityLife &
Healthcare

Total

Others(Note) 1

Total

Corporate Adjustments Consolidated(Note) 4(Note) 2(Note) 3

Net sales
Sales tocustomers

146,804

198,543

144,758

132,117

277,779

900,003146

900,149－－

900,149

Intersegment
sales/transfers

1,709

792

3,068

2,798

471

8,839

7,251

16,090－(16,090)－

Total

148,513

199,335

147,826

134,915

278,251

908,8427,398

916,240－(16,090)

900,149

Segment income(loss)

8,629

6,804

11,327

4,933

10,32142,01679

42,095(12,007)529

30,618Segment assets

131,559

104,394

84,08774,881

245,132

640,056

3,142

643,198

203,748(54,610)792,336

Depreciation
and amortization

916

725

1,803

388

7,291

11,12618

11,1452,853－

13,998

Amortization of
goodwill

143

－

54

－

2,429

2,627

－

2,627

－

－

2,627

Unamortizedbalance of
goodwill

1,992

－

444

－

25,44727,884－27,884－－27,884

Investments inequity affiliates

2,649

1,128

2,994

1,332

3,351

11,456111

11,567－(4)

11,563

Increase inproperty, plant,
and equipment
and intangible
fixed assets

1,262

1,159

3,189

325

4,367

10,30460

10,364

9,648－

20,012Other items(Note) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information
processing services and professional services.
2. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others. Segment assets under
Corporate are assets not allocable to Reportable Segments or Others.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of Segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in“Consolidated”.

18

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

b. Other Information
Prior Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)
1. Products and Services
Omitted, as the same information has been disclosed under Segment Information.

2. Geographical Information(1) Net sales

Group net sales consist primarily of revenues recognized from contracts with customers. The following provides detail of net
sales for each reportable segment, broken down by geographic region.
(Millions of yen)
Reportable Segments
Functional
Materials

Advanced
Materials &Processing

OthersElectronics &Mobility

EnergyLife &(Note) 3

Composition

Total

(%)

HealthcareJapan

44,80861,641

51,95539,817

67,103

81

265,407

29.1

Greater China

13,288115,304

56,94333,4993,276-

222,312

24.4

ASEAN

29,35873,801

7,540

36,541

5,507-

152,750

16.7

Americas20,969

6,893

6,929

14,039122,538-

171,37018.8

Europe

2,660

5,606

4,712

1,321

74,386-

88,686

9.7

Other

1,007

1,775

8,893

342

349

-

12,3681.3

112,092

265,024

136,975

125,560

273,161

81

912,896100.0

112,092

265,024

136,975

125,560

273,161

81

912,896

100.0

Revenues from contracts
with customers

Net sales to customers(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
2. Major countries and regions in each category other than Japan(1) Greater China...... China, Hong Kong, Taiwan(2) ASEAN............... Thailand, Vietnam, Indonesia(3) Americas............. U.S., Mexico(4) Europe................. U.K., Germany(5) Other................... Korea
3. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes
information processing services and professional services.

(2) Property, plant and equipment(Millions of yen)
Japan

Other
59,807

Total
22,2573. Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.

19

82,064

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
1. Products and Services
Omitted, as the same information has been disclosed under Segment Information.

2. Geographical Information(1) Net sales

Group net sales consist primarily of revenues recognized from contracts with customers. The following provides detail of net
sales for each reportable segment, broken down by geographic region.
(Millions of yen)
Reportable Segments
Functional
Materials

Advanced
Materials &Processing

OthersElectronics &Mobility

EnergyLife &(Note) 3

Composition
(%)

Total

HealthcareJapan

64,933

34,69456,442

42,16370,490146

268,872

29.9

Greater China

17,881

96,35659,80331,724

3,866-

209,632

23.3

ASEAN

34,19860,586

7,403

37,665

6,200-

146,053

16.2

Americas22,847

4,509

8,880

18,716

123,756-

178,71019.9

Europe

5,899

1,133

4,021

1,562

73,068-85,685

9.5

Other

1,044

1,263

8,206

285

396

-

11,196

1.2

146,804

198,543

144,758

132,117

277,779

146

900,149100.0

146,804

198,543

144,758

132,117

277,779

146

900,149

100.0

Revenues from contracts
with customers

Net sales to customers(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
2. Major countries and regions in each category other than Japan(1) Greater China...... China, Hong Kong, Taiwan(2) ASEAN............... Thailand, Vietnam, Indonesia(3) Americas............. U.S., Mexico(4) Europe................. U.K., Germany(5) Other................... Korea
3.“Others” is a business segment consisting of businesses not included in Reportable Segments, and includes
information processing services, and professional service(2) Property, plant and equipment
Japan(Millions of yen)
Americas58,943

Other
21,458

Total
6,990

3. Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.

20

87,392

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

c. Impairment Losses of Non-Current Assets for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)(Millions of yen)

Reportable Segments
Advanced
Functional
Electronics
Materials &Materials& Energy
Processing
Impairment
loss

-

2,825

Life &
Healthcare

Mobility

12

-

-

Total

Corporate/
Elimination

Others

2,838

-

-

Total

2,838

(Note) The Company conducted a review of the future business plans for the business assets in products and manufacturing processdevelopment business related to resins and for the development and manufacturing business in connection with water-soluble
support materials for 3D printing, both in the Advanced Materials & Processing segment. As a result, we determined future cash
flow will be less than book value. Therefore, the Company wrote down the book value of these assets to their recoverable
amounts and recorded an impairment loss of ¥2,285 million and ¥539 million, respectively.

Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)(Millions of yen)

Reportable Segments
Advanced
Functional
Electronics
Materials &Materials& Energy
Processing
Impairment
loss

2,276

-

-

Life &
Healthcare

Mobility
-

-

Total

Corporate/
Elimination

Others

2,276

-

-

Total

2,276

(Note) The Functional Materials segment recorded impairment losses of ¥2,276 million for business assets etc. related to color former
manufacturing business due to declining profitability. The Company wrote down the book value of these assets to theirrecoverable amounts.

d. Amortization and Unamortized Balance of Goodwill for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)
Omitted, as the same information has been disclosed under Segment Information.

Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
Omitted, as the same information has been disclosed under Segment Information.

e. Information About Gain on Negative Goodwill for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)
No matters to report.

Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
No matters to report.

21

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2024

(Per-Share Data)
Prior Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)

Current Consolidated Fiscal Year
(April 1, 2023 March 31, 2024)

Net assets per share¥3,139.26¥3,463.84

Earnings per share¥199.54¥194.96(Note) 1. Information for diluted earnings per share is not presented, as the Company does not issue any stock with dilutive effects.
2. The Company’s shares held by the Stock-Granting Trust for Directors are included in treasury stock in shareholders’ equity.
These are excluded from the total number of issued shares at the end of the period when calculating net assets per share.
Also, these are excluded from the calculation of average number of shares during the period when calculating profit
attributable to owners of parent per share.
The number of such shares at the end of the period excluded from the calculation of net assets per share was 288,500 shares,
while the average number of shares during the period excluded from the calculation of profit attributable to owners of parent
per share was 289,923 shares.
3. Basic earnings per share calculations are as shown below.
Prior Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)

Current Consolidated Fiscal Year
(April 1, 2023 March 31, 2024)

Profit attributable to owners of the parent (millions of yen)

23,62522,402

Profit attributable to common stock owners of the parent (millionsof yen)23,62522,402Average number of outstanding shares of common stock (shares)

118,398,261

114,911,971(Significant Subsequent Events)(Purchase of Treasury Stock)
At a meeting held May 8, 2024, the Company's board of directors resolved to purchase treasury stock based on the provisionsof Article 156 of the Companies Act, applied mutatis mutandis to Article 165, Paragraph 3 of the same Act.
(1) Reasons for the purchase of treasury stock
The Company’s board of directors, at a meeting held on May 8, 2024, made a resolution to change Shareholder Returns Policyin Medium-Term Management Plan ACE 2.0. and to implement a total payout ratio of 100% as a limited measure for the twoyears until the final year of ACE 2.0. Pursuant to this policy, the Company will repurchase its treasury stock.
(2) Details of shares to be purchased
a. Class of shares to be purchasedb. Total number of shares that may be purchased

Common shares
5,500,000 shares (maximum)(Equivalent to 4.82% of outstanding shares,
excluding treasury stock)
10 billion yen (maximum)
From May 9, 2024 to October 31, 2024
Market purchasesc. Total value of shares that may be purchased
d. Purchase period
e. Purchase method(Cancellation of Treasury Stock)
At a meeting held May 8, 2024, the Company's board of directors resolved to cancel treasury stock based on the provisions ofArticle 178 of the Companies Act.
a. Class of shares to be cancelledb. Total number of shares that may be cancelled

Common shares
3,000,000 shares(Equivalent to 2.54% of outstanding shares,
including treasury stock)
May 31, 2024

c. Effective date of the cancellation

Reference: Treasury stock held as of April 30, 2024
Total number of shares issued (excluding treasury stock)
114,053,648 shares
Total number of treasury stock
3,854,637 shares(*) The number of treasury shares as of April 30, 2024 does not include 288,500 Company shares held by the Stock-Granting
Trust for Directors.
22