Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017
<Under Japanese GAAP>
November 4, 2016
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): November 9, 2016
Start of distribution of dividends (scheduled): December 5, 2016
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, 2017
(April 1, 2016 to September 30, 2016)(1) Consolidated Operating Results(Percentages represent changes compared with same period of the previous fiscal year.)Net sales

Operating income

Profit attributable toowners of the parent

Ordinary income

For the second quarter ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen
September 30, 2016
350,865(6.7)
7,242 (27.8)
7,482 (26.6)
4,674
September 30, 2015
376,064
0.9
10,03426.1
10,18811.9
6,502(Notes) Comprehensive income
Second quarter ended September 30, 2016: ¥1,699 million (―%)%

(28.1)(2.4)

Second quarter ended September 30, 2015: (¥3,743) million (―%)
Earnings per share
For the second quarter ended
September 30, 2016
September 30, 2015

Yen
36.84
51.19

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

September 30, 2016
March 31, 2016
(Reference) Equity capital

Net assets

Shareholders’equity ratio

Millions of yen

509,203277,375
512,081279,149
As of September 30, 2016: ¥272,915million
As of March 31, 2016: ¥273,963 million

Net assets per share
%

Yen

53.6
53.5

2,163.89
2,156.67

2. Dividends
Annual Dividends per Share
3Q
Fiscal year end

1Q
2Q
For the year ended (or ending)
Yen
YenMarch 2016
16.00−
March 2017
16.00−
March 2017 (estimate)(Note) Revisions to the latest projected dividends: No

Annual

Yen

Yen

Yen

−

16.00

32.00

−

16.00

32.00

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2017
(April 1, 2016 to March 31, 2017)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year

735,000

Operating income% Millions of yen(1.0)

Profit attributable toowners of the parent

Ordinary income% Millions of yen

14,500 (19.6)% Millions of yen

16,000 (13.0)

Earnings per
share

%

Yen

9,500 (22.9)

74.78(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: Yesiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No
Please refer to “2. Summary Information (Notes) (3) Changes in Accounting Policies, Estimates and(Note)
Restatements.” on page 4 of this document.
(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, 2016
127,408,285 shares March 31,2016
127,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2016
1,285,536 shares

March 31, 2016

Average number of shares during the period
September 30, 2016
126,901,165 shares

September 30, 2015

377,300 shares

127,031,664 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 Second Quarter of the Fiscal Year Ending March 31, 2017

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 in Significant Subsidiaries during the Period

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

4(3) Changes in Accounting Policies, Estimates and Restatements

4(4) Additional Information

4

3. Quarterly Consolidated Financial Statements

6(1) Quarterly Consolidated Balance Sheets

6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

8

Quarterly Consolidated Statements of Income
Six-month periods ended September 30, 2016 and 20158

Quarterly Consolidated Statements of Comprehensive Income
Six-month periods ended September 30, 2016 and 20159(3) Quarterly Consolidated Statements of Cash Flows

10(4) Notes related to Quarterly Consolidated Financial Statements

11(Assumption for Going Concern)

11(Segment Information, etc.)

11(Significant Fluctuations in Shareholders’ Equity)11(Significant Subsequent Events)

12

4. Supplementary Information

12(1) Overseas Sales

12

－ 1 －

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

1. Qualitative Information(1) Business Performancea. General Summary of Results
The Japanese economy experienced a moderate recovery during the cumulative consolidated second quarter. Japanese
corporate earnings and payrolls improved, reflecting government and central bank policies. Despite these improvements, thestrong valuation of the yen remains a cause for concern about deteriorating corporate profits. While the United States continues
to experience a gradual economic expansion, growth is slowing in China and other emerging economies. These factors,
combined with the impact of the British exit from the EU, mean that the future direction of the global economy remains
uncertain.
In this environment, the Company recorded domestic sales of ¥179.02 billion for the cumulative consolidated second quarter,
which represented a 0.1% increase year on year. Overseas sales, impacted by a comparatively strong yen, amounted to ¥171.83
billion (12.9% decrease). In total, the Company recorded ¥350.86 billion in net sales, a decrease of 6.7%.
The Company recorded gross profit of ¥44.67 billion (3.8% decrease) in conjunction with lower revenues. Operating income
amounted to ¥7.24 billion, a decrease of 27.8%. This decrease was mainly due to an increase in retirement benefit expense inconnection with the amortization of actuarial losses. Ordinary income amounted to ¥7.48 billion (26.6% decrease), while profit
attributable to owners of the parent amounted to ¥4.67 billion (28.1% decrease).

b. Segment Summary
Functional Materials
The Functional Materials segment recorded lower sales in both domestic and overseas markets.
The performance chemicals business recorded lower net sales as a whole. While sales of coating raw materials and urethanematerials, etc. grew in ASEAN and Mexico, lower naphtha prices and domestic downturn in automotive production resulted inlower sales elsewhere, most notably in Japan.
The speciality chemicals business recorded slightly lower net sales. While sales of fluorochemicals for the electronics industry
in Japan and Korea were strong, sales were weak in the plastic additives and other businesses.
As a result, the segment recorded net sales of ¥74.12 billion for the period, representing a ¥5.07 billion (6.4%) decrease.
Operating income for the segment was ¥1.85 billion, representing a ¥240 million (11.6%) decrease.

Advanced Materials & Processing
The Advanced Materials & Processing segment recorded lower sales in both domestic and overseas markets .
The colors and imaging business recorded lower net sales overall, despite increased sales of plastic resins for packaging
applications in Japan. Sales of materials for LCD TV reflectors, conductive materials, dyes/additives, digital print processing
materials, and anti-reflective optical sheets were down for the period.
The polymer global account business sells mainly plastics to the office equipment, appliance, and video game device markets.
Here, sales were level with the same period in the prior fiscal year. Sales in Japan were level year on year, while sales inGreater China were slightly lower, and sales in ASEAN were slightly higher.
As a result, the segment recorded net sales of ¥120.22 billion for the period, representing a ¥13.15 billion (9.9%) decrease.
Meanwhile, operating income increased ¥70 million (2.8%) to ¥2.65 billion, mainly due to improved gross profit ratios among
the Company’s domestic manufacturing subsidiaries.

－ 2 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

Electronics
The electronics segment recorded lower sales as a whole. Domestic sales were strong, driven by the performance of domestic
manufacturing subsidiaries. However, overseas sales were weak, most notably in Greater China.
The electronic chemicals business recorded increased sales for the period, driven by higher sales of formulated epoxy resin to
the electronic components and semiconductor industries.
The electronic materials business recorded lower net sales, mainly due to lower sales of smartphone components, materials for
touch panels, and thin glass processing.
As a result, the segment recorded net sales of ¥62.51 billion for the period, representing a ¥2.78 billion (4.3%) decrease.
Operating income for the segment was ¥3.18 billion, representing a ¥530 million (14.3%) decrease. This decrease was mainly
due to lower operating rates at our overseas manufacturing businesses.

Automotive & Energy
The automotive solutions business recorded slightly improved sales for the period. While the strong yen and lower naphtha
prices had a negative impact on revenues, the resins business experienced growth. Despite favorable volume trends overseas,
the strong yen drove sales downward, resulting in lower performance for the business.
As a result, the segment recorded net sales of ¥52.41 billion for the period, down ¥4.46 billion (7.8%). Operating income
decreased ¥180 million (26%) to ¥510 million. This decrease was mainly due to declines in gross profit.

Life & Healthcare
The Life & Healthcare segment recorded net sales level with the same period in the prior fiscal year. While sales rose
domestically, revenues from Greater China and other overseas regions were lower.
The life & healthcare products business recorded lower sales of TREHA™ in overseas markets, while sales of this productwere level in Japan. Although the business recorded lower sales of AA2G™ to major customers in the Japanese skin care andtoiletries field, sales to major customers overseas were higher. In the pharmaceuticals and medicals fields, sales of raw
pharmaceuticals, intermediates, and medical materials were higher. As a result, the business recorded period sales level withthe prior year.
The beauty care products business, which includes sales of cosmetics and health foods, recorded higher net sales, mainly due tothe strong performance of new products.
As a result, net sales for the segment amounted to ¥41.26 billion, which was a ¥320 million (0.8%) increase. Operating income
for the segment was ¥1.85 billion, representing a ¥200 million (12.1%) increase.

Other
No special matters to disclose.

－ 3 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

(2) Financial Positiona. Assets, Liabilities and Net Assets
As of the end of the consolidated second quarter, current assets amounted to ¥307.93 billion. This represents a decrease of ¥4.4
billion compared to the end of the prior consolidated fiscal year, mainly due to decreases in cash, time deposits, and inventories.
Non-current assets amounted to ¥201.27 billion, up ¥1.52 billion. Although the Company sold shares of affiliates during theperiod, higher fair values for shares retained resulted in an increase in investments in securities. As a result of these various
factors, total assets decreased by ¥2.87 billion to ¥509.2 billion as of the end of the consolidated second quarter.
Liabilities amounted to ¥231.82 billion, a ¥1.1 billion decrease compared to the end of the prior consolidated fiscal year. Thisdecrease was mainly due to decreases in accrued income taxes.
Net assets amounted to ¥277.37 billion, down ¥1.77 billion. This decrease was mainly due to a decrease in translation
adjustments, despite the fact that the Company recorded profit attributable to owners of the parent in the amount of ¥4.67
billion.
As a result, the Company recorded a shareholders’ equity ratio of 53.6%, up 0.1 points compared to the end of the priorconsolidated fiscal year.

b. Summary of Consolidated Cash Flows
Cash and equivalents (Cash) decreased by ¥4.81 billion (11.2%) compared to the end of the prior consolidated fiscal year,
amounting to ¥38.08 billion. Cash from operating activities amounted to ¥4.74 billion, while cash used in investing activities
came to ¥5.2 billion and cash used in financing activities amounted to ¥2.32 billion. In addition, Cash balances decreased ¥2.03
billion due to the effect of exchange rate fluctuations.

(Cash Flows from Operating Activities)
Cash flows from operating activities for the cumulative consolidated second quarter amounted to ¥4.74 billion. This increase
was mainly due to income before income taxes and non-controlling interests of ¥7.08 billion and depreciation and amortizationof ¥4.59 billion. These factors offset ¥2.01 billion in cash decreases due to increases in working capital and ¥4.41 billion inincome tax payments.

(Cash Flows from Investing Activities)
Cash used in investing activities during the cumulative consolidated second quarter amounted to ¥5.2 billion. This result was
mainly due to cash outlays of ¥6.75 billion in purchases of property, plant and equipment and intangible fixed assets.

(Cash Flows from Financing Activities)
Cash used in financing activities for the cumulative consolidated second quarter amounted to ¥2.32 billion. This result was
mainly due to ¥2.03 billion in dividend payments and ¥1.1 billion in cash outlays to purchase treasury stock.

(3) Qualitative Information related to Earnings Forecasts
The Company has made no changes its full-year consolidated earnings forecasts as originally published on May 6, 2016.

2. Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
No matters to report.

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

－ 4 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017(3) Changes in Accounting Policies, Estimates and Restatements(Change in Inventory Valuation Method)
The Company and certain domestic affiliates had valued inventory according to the weighted-average method. In the
consolidated second quarter of the current fiscal year, these entities have changed to the moving-average method of inventory
valuation. This change in inventory valuation method was made in conjunction with the adoption of a new enterprise system inAugust 2016. By calculating payout costs on a more timely basis, the Company believes it will be able to determine periodic
income or loss more promptly and accurately.
The Company has not applied this change retroactively to restate prior financial statements, as management has not judged theimpact of this change to be material.

(4) Additional Information(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company has adopted Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26;
March 28, 2016), effective the first quarter of the current consolidated fiscal year.

－ 5 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

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

Prior Consolidated Fiscal Year
(March 31, 2016)
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－ 6 －(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2016)

43,283
196,335
57,404
1,726
3,789
2,842
7,843
(890)
312,334

38,244
198,070
54,333
1,528
3,767
2,727
9,956
(699)
307,930

66,47468,926

24,582
15,366
4,567
44,51623,743
14,5784,387
42,70981,345
1,023
1,544
5,017
(174)
88,755
199,747
512,081

83,328
570
1,306
4,598
(167)
89,637201,273509,203

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

Prior Consolidated Fiscal Year
(March 31, 2016)
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－ 7 －(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2016)

97,80025,294
8,823
4,305
13
4,224
194
15,461
156,118

100,300
24,912
10,05010,000
1,770
0
4,038
87
15,651
166,81130,00023,1088,433
14,0601,211
76,813232,932

20,00020,1399,725
14,195954
65,015
231,827

9,699
11,615
213,572(230)
234,657

9,699
11,604
216,203(1,334)
236,172

37,074(9)
4,411(2,169)39,3055,185
279,149
512,081

39,574(5)(1,732)(1,094)36,742
4,460
277,375
509,203

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Six-month periods ended September 30, 2016 and 2015
(Millions of yen)Six-month period ended
September 30, 2015

Six-month period ended
September 30, 2016

(April 1, 2015 -September 30, 2015)(April 1, 2016 -September 30, 2016)

376,064
329,641
46,42236,387
10,034

350,865
306,194
44,67037,428
7,242

109
705
147
90
181
1,235

88
810
156
238
1,293

523
258
299
1,082
10,188

459
90
301
201
1,053
7,482

4
50
55

28
60
88

13
83
290
9
397
9,846
3,104
(29)
3,075
6,770
267
6,502

15
62
38
25
40
246
61
491
7,080
2,175
80
2,255
4,824
149
4,674

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
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 valuation of investments securities
Loss on sales of shares of subsidiaries and affiliates
Other
Total extraordinary losses
Income before income taxes and non-controlling interests
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－ 8 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

(Quarterly Consolidated Statements of Comprehensive Income)Six-month periods ended September 30, 2016 and 2015
(Millions of yen)Six-month period ended
September 30, 2015

Six-month period ended
September 30, 2016

(April 1, 2015 -September 30, 2015)(April 1, 2016 -September 30, 2016)

6,770

4,824

(7,999)(11)(1,885)
(318)

2,499
4
(6,148)
1,075

(299)

(554)

(10,514)(3,743)(3,124)
1,699(3,839)
96

2,134
(434)

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－ 9 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30, 2016

Six-month period ended
September 30, 2015

(April 1, 2015 -September 30, 2015) (April 1, 2016 -September 30, 2016)

Operating activities
Profit before income taxes
Depreciation and amortization other than amortizationof goodwill
Amortization of goodwill
Loss on impairment of fixed assets(Decrease) increase in liability for retirement benefits
Interest and dividend income
Interest expenses
Exchange gain, net(Loss) gain on sales of investment securities,
investments in capital, shares of subsidiaries andaffiliates, and investments in capital of subsidiaries andaffiliates, net
Increase in notes and accounts receivable(Increase) decrease in inventories(Decrease) increase in notes and accounts payable
Other,net
SubtotalInterest and dividends received
Interest paid
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 otherassetsPurchases of investments in securities
Proceeds from sales of investments in securities
Purchases of investments
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Increase on short-term loans receivable included inother current assets, net
Decrease in time deposits, net
Other, net
Net cash used in investing activities
Financing activities
Decrease in short-term loans, 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
Net cash used in financing activities
Effects of exchange rate changes on cash and cash
equivalents
Net (increase) decrease in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the period－ 10 －

9,846

7,080

4,747

4,590

818
290
(369)
(815)
523
(304)

771
38
1,709
(899)
459
(514)

(40)

211

(670)
2,456
(2,914)(2,351)
11,214986(490)(2,286)
9,423(9,198)(266)
7,445(2,924)
8,502
1,137
(475)
(4,419)4,744(4,022)
5(6,121)
154

(646)

(638)

(306)
73
(310)

(1,100)
1,954
(53)

-

293

(402)

(3)

2
224
(5,382)

197
108(5,209)

284
1,488
(241)
9,949
(10,000)(0)(1,905)
(421)
(20)
(867)

2,506
24
(1,395)(1,104)(2,032)(254)(64)(2,320)(318)(2,031)

2,854
40,522
43,377(4,817)42,90038,083

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017(4) Notes related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.

(Segment Information, etc.)
Segment Information
I Six-month period ended September 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
Total
Segment income(loss)

79,203

133,383

65,30256,87540,942375,708

355

376,064－－

376,064

992

1,140

447

1,233

229

4,044

2,899

6,943

－

(6,943)－80,196

134,524

65,75058,10841,172379,752

3,255

383,007－(6,943)376,064

2,094

2,585

3,722

700

1,649

10,753140

10,893(1,116)257

10,034(Note) 1. Other is a business segment consisting of businesses not included in reportable segments, and includes logistics 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), Corporate, and Adjustments is equivalent to operating profit as presented in the
consolidated statements of income.
II Six-month period ended September 30, 2016 (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 to74,128120,224

62,51952,413

41,266

350,552

312

350,865－－

350,865Intersegment
sales/transfers

855

1,186

792

1,260

242

4,336

3,075

7,412

－

(7,412)－

Total

74,983

121,41063,31253,67341,509354,889

3,388

358,277－(7,412)350,865

1,851

2,657

3,188

518

1,850

10,066106

10,172(3,212)

282

7,242

customers

Segment income(loss)(Note) 1. Other is a business segment consisting of businesses not included in reportable segments, and includes logistics 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), Corporate, and Adjustments is equivalent to operating profit as presented in the
consolidated statements of income.

- 11 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

(Significant Fluctuations in Shareholders’ Equity)
At a meeting held September 20, 2016, the Company’s Board of Directors resolved to repurchase 908,000 shares of Company
stock in accordance with the provisions of Article 156 of the Companies Act as applied mutatis mutandis to the provisions ofArticle 165(3) of the same act.
As a result, treasury stock increased ¥1,104 million, amounting to ¥1,334 million as of the end of the consolidated second quarter.
Stock repurchases under the resolution in question were completed as of September 21, 2016.

(Significant Subsequent Events)
No matters to report.

4. Supplementary Information(1) Overseas Sales
Six-month period ended September 30, 2015 (consolidated)
Greater
China
I

Overseas sales(Millions of yen)II

109,573

ASEAN

Americas57,09816,365

Europe

Other

6,311

Total

7,922

Consolidated sales

376,064(Millions of yen)III

197,271

Ratio of overseas sales to

29.1

consolidated sales (%)

15.2

4.4

1.7

2.1

52.5

Six-month period ended September 30, 2016 (consolidated)
Greater
China
I

Overseas sales(Millions of yen)II

Consolidated sales(Millions of yen)III

Ratio of overseas sales to

96,069consolidated sales (%)

ASEAN

Americas48,954

14,090Europe

Other

5,257

Total

7,463

171,835

350,865
27.4

14.0

4.0

1.5

2.1

(Note)
1. Overseas sales consist of net sales of the Company and consolidated subsidiaries in other countries or regions.
2. Countries/regions are determined by geographical proximity.
3. Major countries in each region(1) Greater China......China, Hong Kong, Taiwan(2) ASEAN...............Thailand, Singapore(3) Americas.............U.S., Mexico(4) Europe................Germany(5) Other...................Korea- 12 -

49.0

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2017

4.

Change in region classifications
The Company had classified its regions as Northeast Asia, Southeast Asia, North America, and Europe & Others. Beginning withthe first quarter of the current consolidated fiscal year, the Company has renamed and reclassified its regions for coordination with
the Company’s ACE-2020, our mid-term management plan.
(1) Northeast Asia renamed as Greater China; Southeast Asia renamed as ASEAN; North America renamed as Americas.
Europe & Others categorized separately into Europe and Other.
(2) Brazil, formerly classified under Europe & Others, now included in Americas(3) Korea, formerly classified under Northeast Asia, now included in Other- 13 -