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.

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): 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

Millions of yen%

Millions of yen%

455,549
373,76221.9
30.5

79,38368,73415.5
27.8(Note) Comprehensive income(% = year-on-year change)

Operating income

Ordinary income

Millions of yen

Millions of yen%

19,891
2.0
19,499 118.2

Profit attributable toowners of the parent%

Millions of yen%

20,284 -0.9
20,467 111.2

15,594
14,622

6.6
43.5

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
ended
September 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: No

2Q

Annual Dividends per Share
3Q
Fiscal year end
Yen

24.00
30.00

Yen

Yen

Annual
Yen

−

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 per
share

%

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 thescope of consolidation): No
New: ― (Company name:)
Excluded: ― (Company name:)(2) Application of special accounting methods to the preparation of quarterly financial statements: Yes(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (4) Notes Related to Quarterly
Consolidated Financial Statements (Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated
Financial Statements), on P.12 of this document.

(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: 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, 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.
For matters related to earnings forecasts, please refer to 1. Qualitative Information, (3) Qualitative Information Related to Consolidated
Earnings Forecasts, on P.6 of this document.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

Attachments
1.

Qualitative Information

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

5(3) Qualitative Information Related to Consolidated Earnings Forecasts

6

2． Quarterly Consolidated Financial Statements and Notes

7(1) Quarterly Consolidated Balance Sheets

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

9

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

9

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

10(3) Quarterly Consolidated Statements of Cash Flows

11(4) Notes Related to Quarterly Consolidated Financial Statements

12(Assumption for Going Concern)

12(Significant Fluctuations in Shareholders’ Equity)

12(Special Accounting Treatment Applied in Preparing Quarterly Consolidated Financial Statements)

12(Segment Information, etc.)

13

1

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

1. Qualitative Information(1) Review of Business Performancea.

General Summary of Results

During the cumulative consolidated second quarter of the current fiscal year, the global economy showed movement toward
recovery from COVID-19; however, the speed of recovery was moderate due to supply chain disruptions and surging resource
prices.
As an overview of the regions in which our group does business, the economy of Greater China picked up after the lifting of the
Shanghai lockdowns and the resolution of power shortages. However, we saw an overall slowdown due in part to the reemergenceof COVID-19 infections. In the Americas, inflation continued to rise, causing growing concerns about a possible economic
slowdown due to the prospect of higher interest rates in the future. In ASEAN, economic activities remained steady. Consumer
spending advanced as the spread of COVID-19 slowed down. In Japan, the economy is on a gradual path toward recovery;
however, uncertainty continues to linger over the outlook for the U.S. economy and the rising cost of living due to the weakeningof the yen.
In this environment, earnings for the cumulative consolidated second quarter of the current fiscal year are as follows.
(Millions of yen)Six-month period
ended

Six-month period
ended

September 30, 2021

September 30, 2022

Net sales

373,762455,549

81,78721.9

Gross profit

68,734

79,383

10,648

15.5

Operating income

19,49919,891392

2.0

Ordinary income

20,467

20,284

(182)

(0.9)

Profit before income taxes
Profit attributable to owners

21,27621,027

(249)

(1.2)

ChangeChange (%)

14,622
15,594972
6.6
of the parent
・ The weaker yen is an assumed contributing factor to the increase in profit under consolidated financial results for cumulative
consolidated second quarter of the current fiscal year.
・ In terms of segment performance, the Life & Healthcare segment recorded a significant increase in profit, driven by the
Prinova Group, while the Functional Materials and Mobility segments also recorded strong results. In contrast, the Advanced
Materials & Processing and Electronics & Energy segments recorded a decline in profits. For details, see b. Segment Summary.
・ Ordinary income and profit before income taxes decreased due to higher debt stemming from an increase in working capitaland an increase in interest expenses due to higher interest rates. Profit attributable to owners of the parent increased ¥900
million to ¥15.5 billion. This increase was due in part to a decrease in tax expenses and the recording of profit attributable tonon-controlling interests.

- 2 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023b.

Segment Summary

The following describes performance by segment.
Functional Materials(Millions of yen)Six-month period

Six-month period

ended
September 30, 2021

ended
September 30, 2022

Net sales

49,18957,650

8,461

17.2

Gross profit

9,549

11,463

1,913

20.0

Operating income

3,874

4,545

670

17.3

ChangeChange (%)

・ Sales increased for coating and urethane raw materials, due in part to soaring market prices and the weakening of the yen
・ Sales increased for raw materials for industrial oil solutions and resins
・ Sales increased for electronics chemicals to the electronics industry, including semiconductor-related products
・ Operating income increased due to an increase in gross profit
Advanced Materials & Processing(Millions of yen)Six-month period
ended

Six-month period
ended

September 30, 2021

September 30, 2022

Net sales

125,628

135,727

10,0998.0

Gross profit

16,476

16,371

(105)

(0.6)

Operating income

6,486

5,041

(1,444)(22.3)

ChangeChange (%)

・ Despite the positive impact of the weak yen on sales, profitability decreased for resin sales to the office equipment,
appliance, and video game device market due to a reactionary decline stemming from increased profit ratios in connection
with soaring market conditions in the year-ago period
・ Sales increased for dyes and additives, and resins for industrial and packaging applications
・ Sales decreased for conductive materials and digital print processing materials
・ Operating income decreased due to a decrease in gross profit
Electronics & Energy(Millions of yen)Six-month period

Six-month period

ended
September 30, 2021

ended
September 30, 2022

Net sales

62,122

68,361

6,238

10.0

Gross profit

14,767

15,763995

6.7

Operating income

5,461

5,151

(309)

(5.7)

ChangeChange (%)

・ Sales increased for products related to precision processing materials for semiconductors
・ Sales of display materials were slow, although profitability improved due to the weak yen, etc.
・ Sales of formulated epoxy resins were strong for semiconductor applications, but slow for mobile devices
・ Sales decreased for photolithography materials for displays
・ Although gross profit increased, operating income decreased due to higher selling, general and administrative expenses- 3 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

Mobility(Millions of yen)Six-month period

Six-month period

ended
September 30, 2021

ended
September 30, 2022

Net sales

46,843

61,14014,29730.5

Gross profit

5,992

7,213

1,221

20.4

Operating income

2,002

2,494

491

24.6

ChangeChange (%)

・ Sales increased for resins due to the boosted automobile production and the weaker yen, etc.
・ 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(Millions of yen)Six-month period
ended

Six-month period
ended

September 30, 2021

September 30, 2022

Net sales

89,857

132,632

42,775

47.6

Gross profit

21,83428,508

6,674

30.6

Operating income

5,070

6,682

1,611

31.8

ChangeChange (%)

・ Materials sales, manufacturing, and processing in the nutrition-related business performed well・ Sales increased for food materials, primarily TREHA™
・ Sales of cosmetics materials, primarily for AA2G™ , decreased due to lower demand, mainly overseas
・ Sales increased for pharmaceutical raw materials
・ Operating income increased due to an increase in gross profit
OthersNo special matters to disclose.

- 4 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

(2) Review of Financial Positiona. Assets, Liabilities and Net Assets

Prior Consolidated
Fiscal Year
(March 31, 2022)

Second Quarter,
Current
Consolidated
Fiscal Year
(September 30,(Millions of yen)

ChangeChange (%)2022)
Current assets

514,286

567,760

53,47410.4

Non-current assets

225,434

234,196

8,761

3.9

Net assets

739,720

801,956

62,236

8.4

Liabilities

384,628

418,295

33,666

8.8

Net assets

355,092

383,661

28,569

8.0

46.5

46.5

(0.0) p－Shareholders’ equity ratio (%)

・ Current assets increased mainly due to an increase in inventories and accounts receivable
・ Non-current assets increased slightly due to an increase in property, plant and equipment and intangible fixed assets, despite
lower fair values of investments in securities
・ Liabilities increased mainly due to an increase in commercial paper and short-term loans
・ Net assets increased mainly due to the recording of quarterly profit attributable to owners of the parent and an increase intranslation adjustments, despite decreases from purchases of treasury stock and payments of dividends
・ As a result, the Company recorded a shareholders’ equity ratio of 46.5%, the same level as at the end of the prior fiscal year

b. Consolidated Cash Flows(Millions of yen)Six-month period ended
September 30, 2021

Six-month period ended
September 30, 2022

Cash flows from operating activities(13,625)(17,982)

Cash flows from investing activities(4,947)(5,987)

Cash flows from financing activities
14,417
11,550・ Although the Company recorded profit before income taxes of ¥21.0 billion, net cash used in operating activities was mainly
the result of a decrease in cash of ¥29.5 billion in connection with an increase in working capital and ¥9.1 billion in income
taxes paid
・ Net cash used in investing activities was mainly the result of cash outlays of ¥5.7 billion and ¥2.3 billion for the purchase ofproperty, plant and equipment and purchase of intangible fixed assets, respectively, offset in part by ¥1.6 billion in proceedsfrom the sales of investments in securities.
・ Net cash provided by financing activities was mainly the result of net proceeds of ¥14.0 billion in commercial paper, netproceeds of ¥10.0 billion in the issuance of bonds, and a net increase of ¥6.3 billion in short-term loans. These amounts wereoffset in part by cash outlays of ¥10.0 billion, ¥3.6 billion, and ¥3.2 billion due to the redemption of bonds, payments ofdividends, and purchases of treasury stock, respectively.

- 5 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

(3) Qualitative Information Related to Consolidated Earnings Forecasts
We made no changes to the consolidated earnings forecast for the current fiscal year (April 1, 2022 to March 31, 2023) from thefigures announced on May 10, 2022.
Although performance of the Advanced Materials & Processing and Electronics & Energy segments fell short of initial estimates
due to the impact of the Shanghai lockdowns and the decline in demand for mobile devices, semiconductor-related products
performed well, and the nutrition-related business handled by the Prinova Group performed better than expected. In addition, theweakening yen helped performance continue in line with the consolidated earnings forecast announced at the beginning of the
fiscal year.
We expect raw materials prices and utility costs to remain high throughout the second half of the fiscal year and beyond. There
are also concerns about a global economic recession, so the outlook remains uncertain. However, we expect to secure a certain
level of profit due to continued strong semiconductor-related products and a recovery in automobile production.
As a result, we have left the full-year consolidated earnings forecast unchanged, while revising earnings forecasts by segment asfollows.
These forecasts have been developed based on foreign exchange rates of ¥140 to the U.S. dollar and ¥20.0 to the RMB.
Revised operating income forecasts by segment (April 1, 2022 - March 31, 2023)(Operating income by segment)(Millions of yen)
Revised Forecast(B)Change (B-A)

Functional Materials
Advanced Materials & Processing

Prior Forecast (A)*
8,300
11,7009,500
10,5001,200(1,200)14.5%(10.3%)

Electronics & Energy
Mobility

11,5004,400

10,3005,500(1,200)1,100(10.4%)
25.0%

Life & Healthcare
Others

11,200(9,100)11,700(9,500)

500
(400)

4.5%
－

38,000－－Total operating income
38,000* Full-year consolidated earnings forecast announced on May 10, 2022

- 6 -Change (%)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

2. 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
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(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 for the Second Quarter of the Fiscal Year Ending March 31, 2023

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

8(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 for the Second Quarter of the Fiscal Year Ending March 31, 2023

(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

9373,762305,027
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
14,622

23
722
21,0275,000
16,026431
15,594

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

(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- 10 -

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 for the Second Quarter of the Fiscal Year Ending March 31, 2023

(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 of
goodwill
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
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash 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
Other
Net 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- 11 -

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

(4) Notes Related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.
(Significant Fluctuations in Shareholders’ Equity)
Following a resolution by the Company’s board of directors at a meeting held February 9, 2022, the Company acquired 1,711,600
shares of treasury stock in the cumulative second quarter of the current consolidated fiscal year. As a result, treasury stockincreased by ¥3,227 million, with treasury stock holdings of ¥4,761 million as of the end of the consolidated second quarter.
(Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated Financial Statements)(Calculation of Tax Expenses)
Tax expenses are calculated by rationally estimating an effective tax rate after applying tax effect accounting to profit before
income taxes for the consolidated fiscal year, including the current second quarter, and multiplying profit before income taxes
for the first quarter by the estimated effective tax rate.
In the event that the calculated tax expenses using this estimated effective tax rate lead to significantly unreasonable results, thisshall be calculated by multiplying the statutory effective tax rate after adjusting significant non-temporary differences by the
profit before income taxes.
Deferred income taxes are included in income tax.

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023

(Segment Information, etc.)
Segment Information
I Six-month period ended September 30, 2021 (consolidated)
1. Information related to net sales and income (loss) by reportable segment
Reportable Segments
Advanced
Functional
Electronics &Life &
Materials &Mobility
EnergyMaterials
Healthcare
Processing

Total(Millions of yen)
Others(Note) 1

Total

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

Net sales
Sales tocustomers
Intersegment
sales/transfers

49,189125,628

62,122

46,84389,857

373,641

121

373,762－－

373,762

307

361

1,093

1,147

214

3,123

2,015

5,139

－

(5,139)－Total

49,496125,990

63,21547,99090,071

376,765

2,136

378,901－(5,139)373,762

Segment income(loss)

3,874

6,486

5,461

2,002

5,070

22,89474

22,969(3,691)

221

19,499(Note) 1.

“Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information
processing services and professional services.

2.
3.

Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others.
Adjustments are eliminations of intersegment transactions.

4.

The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating income as presented in“Consolidated”.

II Six-month period ended September 30, 2022 (consolidated)
1. Information related to net sales and income (loss) by reportable segment
Reportable Segments
Advanced
Functional
Electronics &Life &
Materials &Mobility
EnergyMaterials
Healthcare
Processing

Total(Millions of yen)
Others(Note) 1

Total

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

Net sales
Sales tocustomers
Intersegment
sales/transfers
Total

57,650135,727

68,361

61,140132,632

455,51336

455,549－－455,549

494

415

1,143

911

238

3,204

3,529

6,733

－

(6,733)－58,144

136,143

69,50462,052

132,871458,7173,566

462,283－(6,733)455,549

4,545

5,041

5,151

2,494

6,682

23,91530

23,946(4,258)204

19,891

Segment(loss)

income(Note) 1.

“Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information2.

processing services and professional services.
Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others.

3.
4.

Adjustments are eliminations of intersegment transactions.
The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating income as presented in“Consolidated”.

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