Consolidated Financial Statements for the First Quarter of the Fiscal Year Ended March 31, 2016
<Under Japanese GAAP>
August 4, 2015
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 (First Section)
Code number:8012
URL (http: //www.nagase.co.jp/english/)Representative:
Kenji Asakura, Representative Director and President
Contact:
Akira Takami, General Manager, Accounting Division
TEL: +81-3-3665-3103
Filing of quarterly report (scheduled): August 7, 2015
Start of distribution of dividends (scheduled): －Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: No(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the First Quarter of the Fiscal Year Ended March 31, 2016
(April 1, 2015 to June 30, 2015)(Percentages represent changes compared with same period of the previous fiscal year.)(1) Consolidated Operating Results
Net sales
For the first quarter ended
June 30, 2015
June 30, 2014

Operating income

Profit attributable toowners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

185,147
181,337

2.1
5.8

4,958
4,431

11.9
6.3

5,324
5,089

4.6
(0.3)

3,400
3,512

(3.2)
(0.4)

(Notes) Comprehensive income

First quarter ended June 30, 2015:¥5,123 million (24.0% decrease)

First quarter ended June 30, 2014:¥6,738 million (23.6% decrease)

Earnings per share
For the first quarter ended
June 30, 2015
June 30, 2014

Yen
26.77
27.65

Earnings per share (diluted)
Yen−−(2) Consolidated Financial Position
Total assets

Net assets

Net worth ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

June 30, 2015
March 31, 2015

544,409546,525

290,409287,500

52.2
51.5

2,237.93
2,215.18(Reference) Equity capital

As of June 30, 2015: ¥284,288 million
As of March 31, 2015: ¥281,398 million

2. Dividends
1Q
For the year ended (or ending)
Yen
March 2015−
March 2016−
March 2016 (estimate)(Note) Revisions to the latest projected dividends: No

2Q

Annual Dividends per Share
3Q
Fiscal year end

Annual

Yen

Yen

Yen

Yen

15.00

−

15.00

30.00

16.00

−

16.00

32.00

3. Projected Consolidated Results for the Fiscal Year Ended March 31, 2016
(April 1, 2015 to March 31, 2016)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year

823,000

Operating profit

Profit attributable toowners of the parent

Ordinary income

Earnings per
share% Millions of yen% Millions of yen% Millions of yen

%

Yen

8.3

7.4

1.1

6.9

95.25

19,50020,60012,100(Note) Revisions to the latest projected consolidated results: 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: No(3) Changes of accounting principles, 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)June 30, 2015
127,408,285 shares March 31, 2015
127,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
June 30, 2015
376,612 shares

March 31, 2015

Average number of shares during the period
June 30, 2015
127,031,790 shares

June 30, 2014

376,363 shares

127,032,637 shares* Quarterly Review Implementation DisclosureThis quarterly report is exempt from the quarterly review procedure based upon the Financial Instruments and ExchangeAct. Furthermore, quarterly consolidated financial statements were undergoing the review procedure process at the timeof release.
* 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.
Please refer to “1. Qualitative Information (3) Qualitative Information related to Earnings Forecasts” on page 4 of thisdocument.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

Attachments
1 Qualitative Information

2(1) Business Performance2(2) Financial Position

3(3) Qualitative Information related to Earnings Forecasts

4

2. Summary Information (Notes)

4(1) Changes of Classification of Specified Subsidiaries Accompanied by Changes in the Consolidation Scope

4(2) Application of Special Accounting Methods to the Preparation of Quarterly Financial Statements

4(3) Changes of Accounting Policies or Presentation Methods in the Consolidated Financial Statements

4(4) Additional Information

4

3 Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)(Quarterly Consolidated Statements of Comprehensive Income)(3) Notes related to Quarterly Consolidated Financial Statements

5
7
7
8
9

(Assumption for Going Concern)

9(Segment Information, etc.)9(Significant Fluctuations in Shareholders’ Equity)9(Significant Subsequent Events)

94 Supplementary Information

10(1) Overseas Sales

10
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- 1 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

1 Qualitative Information(1) Business Performancea. General Summary of Results
The Japanese economy continued to experience signs of a moderate recovery during the first quarter of the consolidated fiscal
year, including favorable corporate earnings and a higher personal consumption. The future direction of the global economy,
however, remains unclear. Despite continued recovery in the United States, the economy of China is slowing amid fears of amarket downturn.
In this environment, the Company recorded domestic sales of ¥90.03 billion for the cumulative consolidated first quarter,
which represented a 3.3% decrease year on year. Overseas sales amounted to ¥95.1 billion (7.8% increase). In total, theCompany recorded net sales of ¥185.14 billion for the cumulative consolidated first quarter of the current year, representing a
2.1% increase year on year.
Net sales growth overseas helped spur profit growth, with the Company recording a gross profit of ¥23.52 billion (5.9% yearon-year increase). Operating income amounted to ¥4.95 billion (11.9% year-on-year increase). The Company recorded
ordinary income in the amount of ¥5.32 billion (4.6% year-on-year increase), a decline mainly due to a drop in equity inearnings of affiliates. Profit attributable to owners of the parent for the cumulative consolidated first quarter amounted to ¥3.4
billion (3.2% year-on-year decrease). This decline was mainly due to higher year-on-year tax expenses.

b. Segment Summary
Functional Materials
Our Functional Materials segment reported lower overall net sales compared to the same period in the prior fiscal year. Growthoverseas as a whole, particularly in the Americas and China, could not outpace the decline in domestic revenues for the period.
The performance chemicals business recorded lower overall net sales compared to the same period in the prior fiscal year.
While sales grew in China and the Americas, domestic weakness in automotive production volume and new housing starts
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resulted in lower sales of coating raw materials and urethane materials.
The speciality chemicals business reported net sales level with the same period in the prior fiscal year. While industrial oil
solutions, semiconductor-related products, and other electronics industry-related chemicals sales were strong, sales of paints
for construction materials and other products were comparatively sluggish.
As a result, net sales for the Functional Materials segment for the cumulative consolidated first quarter amounted to ¥40.43
billion, which was a year-on-year decrease of ¥1.34 billion (3.2%). Operating income for the segment was ¥1.11 billion,
representing a ¥110 million (11.8%) increase year on year. This improvement was mainly due to higher revenues and profit
ratios in our overseas businesses.

Advanced Materials & Processing
The Advanced Materials & Processing segment reported higher overall net sales for the period, driven by higher performancein Northeastern Asia, Southeastern Asia, Europe, and the United States. Sales for Japan were level with the same period in theprior fiscal year.
The colors and imaging business recorded higher revenues as a whole year on year. Despite lower sales of materials for LCD
TV reflectors and conductive materials, the Company experienced revenue gains for dyes and additives, information printing
materials, anti-reflective optical sheets, and plastic materials.
The segment’s business selling plastics and other products to the office equipment and appliance markets reported higher net
sales year on year as a whole. This result stems mainly from gains in Northeast Asia and Southeast Asia, despite slightly lower
performance domestically.
As a result, segment net sales for the Advanced Materials & Processing segment for the cumulative consolidated first quarter- 2 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

amounted to ¥64.97 billion, which was a ¥5.06 billion (8.5%) increase compared to the same period in the prior fiscal year.
Operating profit increased ¥330 million (33.1%), reaching ¥1.33 billion for the period.

Electronics
The Electronics segment reported lower overall revenues compared to the same period in the prior fiscal year. While revenues
grew in Europe and the United States, these gains could not compensate for lower revenues in Japan and Northeastern Asia.
The electronic chemicals business delivered gains as a whole, despite lower revenues for chemicals used in LCD panel
manufacturing. Sales of formulated epoxy resin for the heavy and light electrical machinery markets rose year on year.
The electronic materials business reported lower sales overall, mainly due to decreased revenues for touch panel materials andLED-related products.
As a result, the segment recorded cumulative consolidated first quarter net sales of ¥29.89 billion, representing a ¥4.96 billion(14.2%) decrease year on year. Operating income amounted to ¥1.52 billion for the period, ¥80 million (6.2%) higher year on
year. This result was mainly due to profit ratio improvements among our overseas manufacturing businesses.

Automotive & Energy
The Automotive & Energy segment recorded overall net sales gains compared to the same period in the prior fiscal year. While
sales in Japan were weak due to lower automobile production, the markets for our products were strong overall in the Americas,
China, and Southeast Asia.
As a result, segment net sales for the cumulative consolidated first quarter amounted to ¥28.68 billion, representing a ¥3.01
billion (11.7%) year-on-year increase. Operating income increased ¥10 million (3.6%) to ¥550 million for the period. While thesegment recorded higher profits as a result of higher revenues, higher general and administrative expenses at sales companies
partially offset these gains.
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Life & Healthcare
The Life & Healthcare segment reported higher overall net sales compared with the same period in the prior fiscal year.
Revenues were strong in Japan, and grew in our overseas markets as well.
The life & healthcare products business recorded sales gains in Japan and overseas for sales of our proprietary TREHA™ andother products for the food materials industry. The segment also saw higher sales of enzyme products. In the skin care andtoiletries field, the segment recorded higher sales of our proprietary AA2G™ to our main customers, while sales of raw
materials to the same market also performed well. In the pharmaceuticals and medical fields, sales of pharmaceutical raw
materials and intermediates were level with the same period in the prior fiscal year. At the same time, sales of medical
materials were sluggish for the period. As a result, the business as a whole reported higher overall net sales year on year.
The beauty care products business includes sales of cosmetics and health foods. While the business recorded strong sales for
new products, weakness in existing product sales led to results for the period only level with the same period in the prior fiscal
year.
As a result, segment net sales for the cumulative consolidated first quarter amounted to ¥20.97 billion, which was a ¥2.05
billion (10.9%) increase year on year. Despite higher revenues, operating income fell ¥60 million (5.8%) year on year to ¥970
million. This decrease was mainly due to increased costs at manufacturing subsidiaries for new plant operations.

Other
No special matters to disclose.

(2) Financial Position
As of the end of the consolidated first quarter, current assets amounted to ¥327.97 billion. This represented a decrease of ¥1.86
billion compared to the end of the prior consolidated fiscal year, mainly due to decreases in cash and time deposits. Non- 3 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

current assets decreased ¥240 million compared to the end of the prior fiscal year, down to ¥216.43 billion. As a result, total
assets decreased by ¥2.11 billion compared to the end of the prior consolidated fiscal year, down to ¥544.4 billion.
Liabilities as of the end of the consolidated first quarter amounted to ¥253.99 billion, which was a decrease of ¥5.02 billion
compared to the end of the prior consolidated fiscal year. This decrease was mainly due to decreased accounts payable.
Net assets amounted to ¥290.4 billion at the end of the consolidated first quarter, representing an increase of ¥2.9 billion
compared to the end of the prior consolidated fiscal year. This increase was mainly due to higher retained earnings stemmingfrom quarterly profit attributable to owners of the parent of ¥3.4 billion.
As a result, the Company reported a shareholders’ equity ratio of 52.2%, up 0.7 points compared to the end of the priorconsolidated fiscal year.

(3) Qualitative Information related to Earnings Forecasts
The Company has made no changes to its full-year consolidated earnings forecasts as originally published on May 8, 2015.

2 Summary Information (Notes)(1) Changes of Classification of Specified Subsidiaries Accompanied by Changes in the Consolidation Scope
No matters to report.

(2) Application of Special Accounting Methods to the Preparation of Quarterly Financial Statements
No matters to report.

(3) Changes of Accounting Policies or Presentation Methods in the Consolidated Financial Statements
No matters to report.

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(4) Additional Information
Beginning with the first quarter of the current consolidated fiscal year, the Company has adopted the provisions of Paragraph
39 of the Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013).
Accordingly, the Company has changed its presentation with respect to quarterly net income, as well as changing its
presentation from “minority interests” to “non-controlling interests.” To reflect these changes in presentation, the Company has
reclassified its financial statements for the first quarter of the prior consolidated fiscal year and its financial statements for theprior consolidated fiscal year.

- 4 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets

Prior Consolidated Fiscal Year
(March 31, 2015)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
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
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

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- 5 -(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2015)

40,575208,209
63,719
1,668
3,625
4,058
8,797
(806)
329,848

39,362
208,534
63,196
1,829
3,794
3,704
8,509
(952)
327,978

66,774

66,82027,626
16,942
4,276
48,84427,25916,548
4,302
48,10992,638
1,139
2,381
6,277
(1,378)101,058
216,677
546,525

93,387
1,141
2,080
6,312
(1,422)
101,499
216,430
544,409

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

Prior Consolidated Fiscal Year
(March 31, 2015)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Current portion of bonds
Accrued income taxes
Deferred tax liabilities
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
Deferred tax liabilities
Net defined 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 (loss)
Net unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

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- 6 -(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2015)

105,737
31,3886,377
10,000
2,268
19
4,314
213
16,105
176,424

100,438
33,596
7,179
1,400
33
2,297
66
16,043161,055

20,00030,322
20,272
10,803
1,201
82,600259,025

30,00030,445
20,485
10,882
1,130
92,943
253,999

9,699
11,654205,203(228)
226,328

9,699
11,654
206,689(229)
227,81444,9203
9,478
666
55,0696,102
287,500
546,525

45,604(9)
10,371506
56,473
6,121
290,409544,409

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)Cumulative First Quarter

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 gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary gains
Extraordinary losses
Loss on sale of non-current assets
Loss on disposal of non-current assets
Impairment loss
Loss on sale of investments securities
Loss on sales of investments in capital
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(Millions of yen)
Cumulative First Quarter, Prior Cumulative First Quarter, Current
Consolidated Fiscal Year
Consolidated Fiscal Year
(April 1, 2014 (April 1, 2015 June 30, 2014)
June 30, 2015)
181,337
185,147
159,112
161,619
22,224
23,527
17,793
18,568
4,431
4,958
49
590
65
172
14
113
1,006

62
623
74
115
876

264
83
347
5,089

255
8
61
185
510
5,324

14
14

1
36
38

1
16
37
0
20
76
5,027
871
532
1,404
3,623
110
3,512

0
31
9
9
50
5,312
1,046
692
1,739
3,573
172
3,400

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

(Quarterly Consolidated Statements of Comprehensive Income)Cumulative First Quarter

Profit for the period
Other comprehensive income
Net unrealized holding 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:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests(Millions of yen)
Cumulative First Quarter, Prior Cumulative First Quarter, Current
Consolidated Fiscal Year
Consolidated Fiscal Year
(April 1, 2014 (April 1, 2015 June 30, 2014)
June 30, 2015)
3,623
3,573

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- 8 -

3,867
3
(573)
(72)

680
(13)
1,031
(159)

(110)

11

3,114
6,738

1,550
5,123

6,677

4,805

60

318

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016(3) Notes related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.

(Segment Information, etc.)
I

Three months ended June 30, 2014 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
To Quarterly
Consolidated

Reportable Segments
Advanced
Functional
Automotive
Life &
Materials & Electronics
Materials& Energy Healthcare
Processing

Total

Other
(Note) 1

Total

Corporate Adjustments
Statements of(Note) 2 (Note) 3
Income(Note) 4

Net sales
Sales tocustomers
Intersegment
sales/transfers

41,78659,90534,86025,66918,921

181,143

193

181,337--

181,337

797

557

191

671

68

2,286

1,308

3,594

-

(3,594)-

Total

42,58360,46235,052

26,34018,990183,429

1,502

184,931-(3,594)

181,337

Segment income(loss)

993

1,000

1,437

538

1,039

5,009

63

5,073

(786)

144

4,431

(Note) 1 Other is a business segment consisting of businesses not included in reportable segments, and includes distribution services,
information processing services, and professional services.
2. Corporate segment income (loss) represents expenses not allocated to reportable segments or Other.
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 the
consolidated statements of income.
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II

Three months ended June 30, 2015 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
To Quarterly
Consolidated

Reportable Segments
Advanced
Functional
Automotive
Life &
Materials & Electronics
Materials& Energy Healthcare
Processing

Total

Other
(Note) 1

Total

Corporate Adjustments
Statements of(Note) 2 (Note) 3
Income(Note) 4

Net sales
Sales tocustomers
Intersegment
sales/transfers

40,43964,97429,89928,68020,977

184,971

176

185,147--

185,147

510

573

188

625

106

2,003

1,371

3,374

-

(3,374)-

Total

40,94965,54730,08829,30521,083

186,974

1,547

188,522-(3,374)

185,147

Segment income(loss)

1,110

1,331

1,526

558

978

5,506

40

5,547

(715)

126

4,958

(Note) 1 Other is a business segment consisting of businesses not included in reportable segments, and includes distribution services,
information processing services, and professional services.
2. Corporate segment income (loss) represents expenses not allocated to reportable segments or Other.
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 the
consolidated statements of income.

(Significant Fluctuations in Shareholders’ Equity)
No matters to report.

(Significant Subsequent Events)
No matters to report.
- 9 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the first Quarter of the Fiscal Year Ended March 31, 2016

4. Supplementary Information(1) Overseas Sales
Three months ended June 30, 2014 (consolidated)
Northeast Asia

I

Overseas Sales(Millions of yen)II

Consolidated sales(Millions of yen)III

Ratio of overseas sales toconsolidated sales (%)

49,453

Southeast Asia

27,506

North America

7,663

Europe & Others

Total

3,607

88,229181,337
27.3

15.2

4.2

2.0

48.7

Three months ended June 30, 2015 (consolidated)
Northeast Asia

I

Overseas Sales(Millions of yen)II

Consolidated sales(Millions of yen)III

Ratio of overseas sales toconsolidated sales (%)

55,679Southeast Asia

26,940

North America

7,922

Europe & Others

4,565

Total

95,108185,147

30.1

14.6

4.3

2.4

51.4

(Notes)1.
2.

Sales in overseas markets consist of net sales of the Company and consolidated subsidiaries in other countries or regions.
Countries/regions are determined by geographical proximity.

3.

Major countries in each region(1) Northeast Asia......Taiwan, China

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(2) Southeast Asia......Singapore, Thailand(3) North America......U.S.
(4) Europe & Others......Germany- 10 -