Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014
<Under Japanese GAAP>
February 5, 2014
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 Sections)
Code number:
8012 URL (http://www.nagase.co.jp/english/)Representative:
Hiroshi Nagase, Representative Director and President
Contact:
Akira Takami, General Manager, Corporate Accounting Division
TEL: +81-3-3665-3103
Filing of quarterly report (scheduled): February 10, 2014
Start of distribution of dividends (scheduled): −Supplementary documents of quarterly financial results: No
Quarterly investors’ meeting: No(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 to December 31, 2013)(1) Consolidated Operating Results(Percentages represent changes compared with same period of the previous fiscal year.)Net sales
For the third quarter ended
December 31, 2013
December 31, 2012
(Note)

Operating profit

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

543,112502,760

8.0
6.4

12,613
12,252

2.9
9.5

14,547
13,8425.1
2.6

11,150
11,209(0.5)
48.5

Comprehensive income

Third quarter ended December 31, 2013:
Third quarter ended December 31, 2012:
Earnings per share

For the third quarter ended
December 31, 2013
December 31, 2012

27,470 million (86.4%)
14,735 million (590.3%)

Earnings per share (diluted)
Yen

Yen

87.84
87.84

−
−

(2) Consolidated Financial Position
Total assets

Net assets

Net worth ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

527,024
486,747

256,053
237,806

47.4
46.9

1,967.74
1,803.31

December 31, 2013
March 31, 2013
(Reference) Equity capital

As of December 31, 2013:
As of March 31, 2013:

249,967 million
228,505 million

2. Dividends
1Q
For the year ended (or ending)March 31, 2013
March 31, 2014
March 31, 2014 (estimate)(Note)

Dividends per share
3Q
Fiscal year end

2Q

Annual

Yen

Yen

Yen

Yen

Yen

−
−

13.00
14.00

−
−

13.00

26.00

14.00

28.00

Revisions to the latest projected dividends: No

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2014
(April 1, 2013 to March 31, 2014)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year
(Note)

725,000

Operating profit

Ordinary income% Millions of yen% Millions of yen% Millions of yen

8.8

0.8

1.5

15,70018,200Earnings per
share

Net income

11,800%Yen(16.8)

92.89

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 policies or presentation methods in the consolidated financial statementsi.
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(Note) For details, see page 6, “2. Summary Information (Notes) (3) Changes of Accounting Policies or
Presentation Methods in the Consolidated Financial Statements.”(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)
December 31, 2013
138,408,285 shares March 31, 2013
138,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
December 31, 2013
11,375,492 shares

March 31, 2013

11,693,809 shares

Average number of shares during the period
December 31, 2013
126,953,046 shares

December 31, 2012

127,614,463 shares*Quarterly Review Implementation DisclosureThis quarterly report is exempt from the quarterly review procedure based upon the Financial Instruments andExchange Act. Furthermore, quarterly consolidated financial statements were undergoing the review procedure process
at the time of 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 5 of thisdocument.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

Attachments
1. Qualitative Information ............................................................................................................... 2(1) Business Performance............................................................................................................ 2(2) Financial Position .................................................................................................................. 4(3) Qualitative Information related to Earnings Forecasts .......................................................... 5
2. Summary Information (Notes) .................................................................................................... 6(1) Changes of Classification of Specified Subsidiaries Accompanied by Changes in theConsolidation Scope .............................................................................................................. 6(2) Application of Special Accounting Methods to the Preparation of Quarterly Financial
Statements.............................................................................................................................. 6(3) Changes of Accounting Policies or Presentation Methods in the Consolidated Financial
Statements.............................................................................................................................. 6
3. Quarterly Consolidated Financial Statements ............................................................................. 7(1) Quarterly Consolidated Balance Sheets ................................................................................. 7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ......................................................................................................... 9
Quarterly Consolidated Statement of Income ...................................................................... 9
Quarterly Consolidated Statements of Comprehensive Income ........................................ 10(3) Quarterly Consolidated Statements of Cash Flows ............................................................. 11(4) Notes related to Quarterly Consolidated Financial Statements ........................................... 12(Assumption for Going Concern) ........................................................................................ 12(Segment Information, etc.) ................................................................................................. 12(Significant Fluctuations in Shareholders’ Equity).............................................................. 13(Significant Subsequent Events) .......................................................................................... 13
4. Supplementary Information....................................................................................................... 14(1) Overseas Sale....................................................................................................................... 14-1-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

1. Qualitative Information(1) Business Performancea. General Summary of Results
Japanese government and central bank economic policies continued to drive the yen lower and stock prices higher
during the third fiscal quarter. At the same time, the economy experienced signs of a moderate recovery, withimprovement in both capital investment and personal consumption.
Under these conditions, the Company recorded domestic sales for the cumulative consolidated third quarter in theamount of ¥277.29 billion (1.0% year-on-year increase). Overseas sales amounted to ¥265.82 billion (16.4%
increase), owing in part to a cheaper yen valuation. In total, the Company as a whole recorded net sales of ¥543.11
billion (8.0% increase) for the quarter.
The Company recorded gross profit of ¥67.18 billion (8.0% year-on-year increase) for the period under review.
This result was due mainly to higher year-on-year net sales owing to solid performance in our automobile-related
business and office equipment and appliances business and higher net sales in our LCD film-related materials.
Operating profit grew to ¥12.61 billion (2.9% year-on-year growth), reflecting an increase in retirement benefit
costs due to amortizing retirement benefit obligation actuarial differences. Ordinary income grew 5.1% to ¥14.54
billion, stemming from higher foreign exchange gains due to the weaker yen. For the cumulative consolidated
third quarter, net income amounted to ¥11.15 billion (0.5% year-on-year decrease). This result was mainly due tothe fact that the Company recorded a gain on sale of non-current assets as extraordinary gains during the same
period in the prior fiscal year.
b. Segment Summary
The following discusses Company earnings by segment.
Beginning with the consolidated first quarter of this fiscal year, the Company has reorganized certain of its
reportable segments. For presentation purposes, the Company has calculated consolidated figures and ratios for thethird quarter of the prior period according to these reorganized classifications.
Functional Materials
Functional Materials saw level year-on-year net sales as a whole, with higher net sales in Japan, Northeast Asia,
Europe, and America offset by lower net sales in Southeast Asia.
The performance chemicals business recorded higher overall net sales compared to the same period in the priorfiscal year. While net sales in the plastic materials and additives business fell, solid performance of coating raw
materials and urethane materials sales to automobile-related markets drove overall net sales higher.
The Group recorded lower net sales overall for our specialty chemicals business due to struggling domestic
demand, despite strength in sales of silicone materials and fluorochemicals.
As a result, net sales for the Functional Materials segment amounted to ¥127.41 billion, which was a ¥60 million(0.1%) decrease compared to the prior consolidated third quarter. Segment operating profit came in at ¥3.32
billion—a ¥260 million (7.4%) year-on-year decrease.
Advanced Materials & Processing
Advanced Materials & Processing reported higher overall net sales for the period, driven by higher net sales bothin Japan and in all regions around the world.
The colors and imaging business experienced overall year-on-year growth for the period. The Company reported
higher domestic revenues for dyes/additives business, as well as growth in information printing materials in Japan,
Europe, and the United States.
-2-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

Our office equipment and appliances business reported higher net sales on the whole. This result stems mainly
from increased plastic sales, as well as higher revenues in Southeast and Northeast Asia.
Our business focusing on functional films and sheets and plastic molding products showed lower overall net sales,
which was the result of decreased year-on-year sales of anti-reflective materials for LCD TVs and anti-reflective
sheets for game devices, which more than offset gains in net sales of our plastic products.
As a result, segment net sales for the consolidated third quarter amounted to ¥181.09 billion, or a ¥19.71 billion(12.2%) gain compared to the same period in the prior fiscal year. Operating profit amounted to ¥2.83 billion,
which was a comparative ¥460 million (19.5%) higher.
Electronics
The Electronics segment reported higher overall revenues, driven by growth in electronics in Japan, as well as inNortheast and Southeast Asia.
The electronic chemicals business experienced overall sales gains year on year, with strong performance informulated epoxy resin for the heavy and light electric machinery markets. In addition, the business showed sales
gains in chemicals used in the manufacture of LCD panels, as well as increased revenues related to equipment tohard disk drive manufacturer in Europe and the United States.
Net sales in our electronic materials business were level with the same period in the prior fiscal year. Lower
performance in LED-related materials and touch panel materials was offset by growth in net sales of LCD
film-related materials.
As a result, the Company recorded consolidated third quarter net sales of ¥103.83 billion, which was a ¥7.46
billion (7.7%) increase compared to the same period in the prior fiscal year. Operating profit amounted to ¥5.2
billion for the consolidated third quarter—a ¥5 million (0.1%) year-on-year increase.
Automotive & Energy
The Company saw wide gains in net sales in our Automotive & Energy segment, where performance showed
year-on-year gains in Japan, in Northeast and Southeast Asia, and in the United States and Europe.
Our automobile-related business recorded overall net sales improvements compared to the same period in the priorfiscal year. This result was mainly due to production recovery among Japanese auto manufacturers operating in
China, as well as high levels of output in North America.
In our energy business, higher year-on-year performance in solar power related products and products for lithium
ion batteries sales drove net sales higher for the business as a whole.
As a result, segment net sales for the consolidated third quarter amounted to ¥73.97 billion, representing a ¥12.97
billion (21.3%) increase year on year. Operating profit increased ¥690 million (124.9%) compared to the priorcumulative consolidated third quarter, reaching ¥1.24 billion for the segment.
Life & Healthcare
The Company’s Life & Healthcare business experienced higher net sales as a whole. In the foods industry, sales oftrehalose and other functional saccharides in Japan and overseas drove strong performance and higher revenues. In
contrast, we saw lower revenues in the skin care and toiletries market, mainly due to a decline in sales to Japan’s
whitening cosmetics market, which couldn’t be offset by solid performance in functional saccharides and products
for detergents sales to major overseas cosmetics manufacturers. Sales of pharmaceutical raw materials,
intermediates and reagents in the pharmaceuticals and medical fields were level with the same period in the prior
year.

-3-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

Our beauty care products business includes sales of cosmetics and health foods. During the third quarter, we saw
weak sales in both cosmetics and health foods for existing products; however, strong sales of new products pushed
performance higher year on year as a whole business.
As a result, net sales amounted to ¥56.22 billion, which was a ¥280 million (0.5%) increase year on year.
Operating profit fell to ¥2.5 billion, ¥490 million (16.4%) lower than the same period in the prior fiscal year. Thisdecrease was mainly due to higher general and administrative expenses.
Other
No special matters to disclose.

(2) Financial Positiona. Assets, Liabilities and Net Assets
As of the end of the consolidated third quarter, current assets amounted to ¥330.03 billion. This represents anincrease of ¥24.27 billion compared to the end of the prior consolidated fiscal year, mainly due to increased
accounts receivable. Non-current assets amounted to ¥196.99 billion, an increase of ¥15.99 billion compared to theend of the prior consolidated fiscal year. This increase was mainly due to greater investments in securities via
share price gains in equity investments. As a result, total assets increased by ¥40.27 billion compared to the end of
the prior consolidated fiscal year, reaching ¥527.02 billion.
Liabilities amounted to ¥270.97 billion, which was an increase of ¥22.02 billion compared to the end of the priorconsolidated fiscal year. This increase was mainly due to increases in accounts payable and deferred tax liabilities
due to unrealized holding gains on securities.
Net assets amounted to ¥256.05 billion, representing an ¥18.24 billion increase compared to the end of the priorconsolidated fiscal year. The Company recorded net income of ¥11.15 billion for the period under review, as wellas an increase in unrealized holding gains on securities and improved translation adjustments in connection withthe weaker yen.
As a result, the Company’s shareholders’ equity ratio improved 0.5 points compared to the end of the priorconsolidated fiscal year, reaching 47.4%.
See “2. Summary Information (Notes) (3) Changes of Accounting Policies or Presentation Methods in theConsolidated Financial Statements” for more regarding the impact of the adoption of retirement benefits
accounting standards.
b. Cash Flows
Cash and cash equivalents (“Cash”) decreased by ¥4.35 billion (9.5%) compared to the end of the priorconsolidated fiscal year, amounting to ¥41.46 billion. Cash from operating activities amounted to ¥4.41 billion,
while cash used in investing activities came to ¥9.44 billion. Cash used in financing activities amounted to ¥1.67
billion and cash from translation differences amounted to ¥2.23 billion. As well, the Company added ¥110 million
in cash from newly consolidated entities.
(Cash Flows from Operating Activities)
Cash flows from operating activities for the consolidated third quarter amounted to ¥4.41 billion. Accounts
receivable increased by ¥19.38 billion, while the Company paid ¥5.86 billion in income taxes. However, thesechanges were more than offset by net income before income taxes of ¥16.21 billion, an increase in notes andaccounts payable of ¥5.53 billion, and non-cash depreciation and amortization of ¥6.39 billion.

-4-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

(Cash Flows from Investing Activities)
Cash used in investing activities during the consolidated third quarter amounted to ¥9.44 billion. Although theCompany received ¥1.67 billion in cash from sales of investments in securities, we also recorded ¥6.83 billion in
payments for purchases of property, plant and equipment, as well as cash outlays of ¥2.76 billion for investments
in securities.
(Cash Flows from Financing Activities)
Cash used in financing activities for the consolidated third quarter amounted to ¥1.67 billion. While the Company
recorded an increase in short-term loans ¥5.73 billion, we also paid ¥4.73 billion in long-term debt repayments, aswell as ¥3.42 billion in cash dividends.

(3) Qualitative Information related to Earnings Forecasts
The Company has made no changes to its full-year consolidated earnings forecasts originally published on
November 6, 2013.

-5-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

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(Changes in Accounting Policies)
Beginning with fiscal years starting on or after April 1, 2013, companies may apply the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and Guidance on Accounting Standard for
Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012). Beginning with the consolidated first quarter, theCompany has applied this accounting standard. Now, the Company records the amount of plan assets that are
deducted from retirement benefit obligations as a liability related to retirement benefits, with unrecognizedactuarial gains or losses and unrecognized past service costs recorded as liabilities related to retirement benefits.
Further, the Company has revised its calculation method for retirement benefit obligations and service costs,
changing the method of period attribution of the expected retirement benefit amount from a straight-line basis to abenefit formula basis. Further, the Company has changed the calculation method for the discount rate.
With the application of the Accounting Standard for Retirement Benefits, the Company will follow the transitional
treatment as determined in Paragraph 37 of the Accounting Standard for Retirement Benefits, taking the amount of
impact in connection with recording the amount of plan assets that is deducted from retirement benefit obligations
as a liability related to retirement benefits, adding or subtracting to the cumulative adjustment amount related to
the retirement benefits of the cumulative amount in other comprehensive income at the beginning of the third
quarter. In addition, the Company will take the amount of impact in connection with the change to the calculation
method of retirement benefit obligations and service costs to increase or decrease retained earnings at the
beginning of the consolidated third quarter.
As a result of this accounting change, other comprehensive income as of the beginning of the consolidated third
quarter has decreased by ¥982 million, while retained earnings has decreased by ¥671 million.
Further, with respect to retirement benefit costs (service costs/interest costs) of the consolidated third quarter, there
is only an immaterial effect on operating profit, ordinary income and net income before income taxes whencompared to the former accounting method used by the Company.

-6-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2013)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-7-

Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2013)

46,693
196,001
47,104
1,554
3,204
4,282
7,967
(1,057)305,751

41,890222,737
50,025
1,469
3,225
4,405
7,182
(906)
330,030

60,967

63,38830,72620,093
4,475
55,29530,281
18,911
4,749
53,94256,870
837
2,249
5,067
(289)
64,734
180,996486,747

70,837
1,209
2,841
4,985
(210)
79,663
196,994
527,024

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2013)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term debt
Accrued income taxes
Deferred tax liabilities
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Deferred tax liabilities
Accrued retirement benefits for employees
Liabilities for retirement benefits
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)
Unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Cumulative adjustment for retirement benefits
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets-8-

Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2013)

107,941
25,061
10,408
2,947
21
3,968
219
15,244
165,812

118,591
34,421
6,413
2,594
24
2,526
155
15,601
180,328

30,00032,6149,251
10,283−980
83,129248,941

30,00033,107
13,504−
12,941
1,088
90,643
270,971

9,699
10,041
199,160(7,109)211,792

9,699
10,242205,909(6,916)
218,935

17,943(6)(1,223)−
16,71250
9,250
237,806
486,747

27,677
(18)
3,605
(231)
31,032−
6,085
256,053
527,024

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statement of Income)(Cumulative Third Quarter)(Millions of yen)
Cumulative Third Quarter,
Prior Consolidated
Fiscal Year
(April 1, 2012 December 31, 2012)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Investment profit on equity method
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of non-current assets
Gain on sale of investment securities
Other receivables
Gain on negative goodwill
Other
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
Other
Total extraordinary losses
Net income before income taxes
Income taxes
Deferred taxes
Total income taxes
Net income before minority interests
Minority interests
Net income-9-

Cumulative Third Quarter,
Current Consolidated
Fiscal Year
(April 1, 2013 December 31, 2013)

502,760
440,546
62,21349,96012,252

543,112475,928
67,18354,56912,613

164
1,139
218
677
202
401
2,804

154
1,045
213
487
725
477
3,104

824
390
1,215
13,842

818
352
1,171
14,547

3,143
610
−
−
60
3,813

511
856
118
404
11
1,902

15
125
438
0
128
309
1,017
16,637
4,916
(149)
4,767
11,870660
11,209

43
113
53
3
19
−
233
16,216
5,687(1,067)
4,620
11,596445
11,150NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

(Quarterly Consolidated Statements of Comprehensive Income)(Cumulative Third Quarter)(Millions of yen)
Cumulative Third Quarter,
Prior Consolidated
Fiscal Year
(April 1, 2012 December 31, 2012)
Net income before minority interests
Other comprehensive income
Unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Adjustments for retirement benefits
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income, parent company
Comprehensive income, minority interests- 10 -

Cumulative Third Quarter,
Current Consolidated
Fiscal Year
(April 1, 2013 December 31, 2013)

11,87011,596

132
1
2,375
−

9,732
(12)
5,086
756

355

310

2,865
14,735

15,87427,47013,786949

26,395
1,075

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Cumulative Third Quarter,
Prior Consolidated
Fiscal Year
(April 1, 2012 December 31, 2012)
Cash flows from operating activities
Net Income before income taxes
Depreciation and amortization
Amortization of goodwill
Provision for accrued retirement benefits for employees
Increase (decrease) in adjustments for retirement benefits
Interest income and dividend income
Interest expenses
Foreign exchange gain (loss)(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Cash from sale of property, plant and equipment
Purchases of investments securities
Cash from sale of investments in securities
Cash used for purchase of investments
Change in short-term loans (increase)
Payment for acquisition of intangible fixed assets
Other
Cash flows from investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans, net
Proceeds from long-term loans
Repayment of long-term debt
Proceeds from issuance of bondPurchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Cash flows from 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
Increase in cash and cash equivalents accompanying
consolidation
Increase (decrease) in cash and cash equivalents
accompanying changes in fiscal years of consolidated
subsidiaries
Cash and cash equivalents at end of the year

- 11 -

Cumulative Third Quarter,
Current Consolidated
Fiscal Year
(April 1, 2013 December 31, 2013)

16,637
5,543
1,206
437
−
(1,304)
824
(360)
1,786
(4,096)(2,058)(4,538)14,077
1,547(754)(5,892)
8,977

16,216
6,391
1,250
−
1,248
(1,200)818
966(19,384)278
5,532(2,618)
9,498
1,583
(796)
(5,868)4,416(8,407)
3,073
(146)
856
(508)
(665)
(1,266)(519)(7,585)(6,838)752(2,766)
1,678(1,143)(604)(1,241)
720(9,442)(17,004)
4,575(5,792)
29,855(1,649)(3,189)
(540)
(82)
6,172

5,730
997
(4,734)−(0)(3,425)(545)
304(1,674)

760

2,234

8,325
28,517(4,465)45,816

915

113

3,721

−

41,47941,464

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

(4) Notes related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.
(Segment Information, etc.)
I

Nine months ended December 31, 2012 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Other(Note) 1

Corporate(Note) 2

To Quarterly
Consolidated
Adjustments
Statements of(Note) 3
Income(Note) 4

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

Total

127,482

161,378

96,37661,00555,931

502,174585

502,760−−

502,760

Intersegment
sales and transfers

1,777

889

497

1,018

337

4,519

3,882

8,401

−

(8,401)−

Total

129,259

162,267

96,87462,02356,268506,693

4,468

511,161−(8,401)

502,760

3,586

2,371

5,194

553

3,001

14,707

253

14,960(3,070)362

12,252Total

Net sales
Sales tocustomers

Segment income(loss)(Notes)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 represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment translations.
4. The sum of segment income totals, Corporate and Adjustments is equivalent to operating profit as presented in the consolidated statements ofincome.

II Nine months ended December 31, 2013 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Other(Note) 1

Corporate(Note) 2

To Quarterly
Consolidated
Adjustments
Statements of(Note) 3
Income(Note) 4

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

Total

127,416

181,096

103,839

73,97856,221

542,552559

543,112−−543,112Intersegment
sales and transfers

2,269

1,626

587

1,385

367

6,236

4,208

10,444−(10,444)−

Total

129,686

182,722

104,426

75,36356,589548,789

4,767

553,557−(10,444)543,112

3,322

2,832

5,200

1,245

2,509

15,110261

15,372(3,013)

255

12,613Total

Net sales
Sales tocustomers

Segment income(loss)(Notes)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 represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment translations.
4. The sum of segment income totals, Corporate and Adjustments is equivalent to operating profit as presented in the consolidated statements ofincome.

- 12 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

2. Changes in Reportable Segments(Changes in Business Classifications)
Beginning with the consolidated first quarter, the Company has moved its abrasives business for semiconductorand HDD industries from the Functional Materials segment to the Electronics segment in order to develop newmarkets and expand applications in a segment aligned more closely with the end user. Similarly, the Company has
moved its raw materials business for the cosmetics industries from the Functional Materials segment to the Life &Healthcare segment. This move was made to capitalize on synergies with products created by Hayashibara Co.,
Ltd., which the Company acquired.
Segment information for the consolidated third quarter of the prior period reflects these segment changes.
The following describes the major products and services handled by each reportable segment.
The Functional Materials segment is engaged in the sales of materials for paints/inks, urethane materials, plastic
materials, plastic additives, industrial oil solutions, surfactants, fluorochemicals, encapsulant materials, andsilicone materials and more for the paints/inks, resins, urethane foam, organic synthesis, surfactants,
semiconductor industries.
The Advanced Materials & Processing segment is engaged in the sales of dyestuffs, dyes, functional dyes,
information printing products, thermoplastic resins, thermosetting resins, synthetic rubber, inorganic materials,
plastics products, resins molding tools/dies, external inspection equipment for the dye/additive, information
printing, fiber processing, raw resin material, resin molding, functional film and sheet and other industries.
The Electronics segment is engaged in the sales of pre-processing materials and devices for LCD/semiconductors,
materials for LCD panels, materials and devices for semiconductor assembly, low-temperature/vacuum equipment,
high-function epoxy resins, precision electronics abrasives, and more for the display, touch panel, LCD,
semiconductor, hard disk drive, electronic components, and heavy electrical, industries.
The Automotive & Energy segment is engaged in sales of plastic products, thermoplastic resins, thermosetting
resins, resins molding tools/dies, battery materials, solar cell/secondary battery-related materials and more for the
automotive, automotive component, and energy industries.
The Life & Healthcare segment is engaged in the sales of pharmaceutical/agricultural chemicals and materials,
research products, in vitro diagnostics, enzymes, food additives, additives for cosmetics, feeds/fertilizers for thepharmaceutical, food, and cosmetics industries. In addition, this segment sells cosmetics, health foods, and beauty
foods directly to consumers.
(Significant Fluctuations in Shareholders’ Equity)
No matters to report.
(Significant Subsequent Events)
No matters to report.

- 13 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2014

4. Supplementary Information(1) Overseas Sale
Nine months ended December 31, 2012 (consolidated)

I

Overseas sale(Millions of yen)II

Consolidated sales(Millions of yen)

III Ratio of overseas sales toconsolidated sales (%)

Northeast Asia

Southeast Asia

North America

Europe & Others

132,763

64,61018,231

12,697

Total

228,302502,760

26.4

12.9

3.6

2.5

Northeast Asia

Southeast Asia

North America

Europe & Others

151,32380,804

19,482

14,20945.4

Nine months ended December 31, 2013 (consolidated)

I

Overseas sale(Millions of yen)II

Consolidated sales(Millions of yen)

III Ratio of overseas sales toconsolidated sales (%)

Total

265,820
543,112

27.9

14.9

3.6

2.6

(Notes)1. Sales in overseas markets 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) Northeast Asia......Taiwan, China(2) Southeast Asia......Singapore, Thailand(3) North America......USA(4) Europe & Others......Germany- 14 -

48.9