Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021
<Under Japanese GAAP>May 11, 2021

These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

Stock exchange listing: Tokyo (First Section)
NAGASE & CO., LTD.
Code number:8012
URL (https://www.nagase.co.jp/english/)Representative:
Kenji Asakura, Representative Director and President
Contact:
Yoshihisa Shimizu, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Annual general meeting of stockholders (scheduled): June 23, 2021
Start of distribution of dividends (scheduled): June 24, 2021
Securities report filing (scheduled): June 24, 2021
Supplementary documents: Yes
Investors’ meeting: Yes(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Fiscal Year Ended March 31, 2021
(April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results
Net salesFYE March 2021
FYE March 2020

Millions of yen(Notes) Comprehensive income

FYE March 2021
FYE March 2020

Operating income%

830,240
799,559(% = year-on-year change)
Profit attributable toOrdinary income
owners of the parent

3.8
(1.0)

Millions of yen%

21,916
19,16714.3(24.0)

Millions of yen%

22,85419,08319.8(28.4)

Millions of yen

18,82915,144%24.3(24.8)FYE March 2021: ¥31,887 million (790.7%)
FYE March 2020: ¥3,579 million (69.7% decrease)
Earnings per
share
Yen
151.91
122.12(Reference) Equity in earnings of affiliates

Earnings per
share (diluted)
Yen−−

FYE March 2021:
FYE March 2020:

Ordinary income/total assets
%
%
5.9
3.7
4.9
3.2

Return on equity

Operatingincome/net sales
%
2.6
2.4

(¥327) million(¥538) million(2) Consolidated Financial Position
Total assets
FYE March 2021
FYE March 2020
(Reference) Equity capitalMillions of yen

640,587
611,477

Net assets
Millions of yen

338,431313,243

Net worth ratio

Net assets per share
%

Yen

51.5
49.9

2,670.09
2,462.04

Cash flows fromfinancing activities

Cash and cash
equivalents, end of theyear

FYE March 2021: ¥329,687 million
FYE March 2020: ¥305,322 million(3) Consolidated Cash Flows
Cash flows fromoperating activitiesFYE March 2021
FYE March 2020

Millions of yen

20,39133,074

Cash flows frominvesting activities
Millions of yen

2,643(49,208)

Millions of yen(25,866)
24,334

Millions of yen

48,55350,471

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

1Q
FYE March 2020
FYE March 2021
FYE March 2022 (forecast)

Yen

−
−
−

Yen

22.00
22.00
24.00

Yen

Yen

22.00
24.00
24.00

−
−
−

Annual
Yen

44.00
46.00
48.00

Total dividends
Dividends/
Payout ratio
paid
net assets(consolidated)(full fiscal year)(consolidated)
Millions of yen

5,456
5,691

%

%

36.0
30.3
32.4

1.8
1.8

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(% = year-on-year change)
Gross profit
Millions of yen

Full fiscal year

120,000

Operating income%

4.7

Millions of yen

23,000

Profit attributable toowners of the parent

Ordinary income% Millions of yen

4.9

24,000% Millions of yen

5.0

18,000Earnings per
share

%

(4.4)

Yen

148.04(Note) 1. In conjunction with the adoption of Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) from the
beginning of the fiscal year ending March 2022, the Company will disclose gross profit instead of net sales in our publishedconsolidated earnings forecasts from this report.
2. Consolidated earnings forecasts for the fiscal year ending March 2022 are based on the assumption that the unstablebusiness environment will continue through the first half of the fiscal year. We also assume that the spread of vaccinations
will lead to a gradual normalization in business activities in and after the second half of the fiscal year.

* 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) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error correctionsi.
Changes in accordance with revisions to accounting and other standards: No
ii. Changes in items other than (i) above: Noiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No(3) Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)
March 31, 2021
124,408,285 shares March 31, 2020
127,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
March 31, 2021
933,995 shares

March 31, 2020

3,396,695 shares

Average number of shares during the period
March 31, 2021
123,955,784 shares

March 31, 2020

124,011,793 shares* These consolidated financial statements are not subject to audit by an independent audit corporation* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions
deemed rational. A variety of factors could cause actual results to differ materially from forecasts.
Please refer to 1. Business Performance (4) Future Outlook on P.5 of this document.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

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

4(3) Summary of Cash Flows

4(4) Future Outlook

5(5) Dividend Policy and Dividends for the Fiscal Years Ending March 2021 and 2022

6

2. Basic Policy on the Selection of Accounting Standards

6

3. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheets

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

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

11(4) Consolidated Statements of Cash Flows

13(5) Notes Related to Consolidated Financial Statements

15(Assumption for Going Concern)

15(Additional Information)

15(Segment Information, etc.)

16(Per-Share Data)

22(Significant Subsequent Events)

22

- 1 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

1. Business Performance(1) Review of Business Performancea. General Summary of Results
The global economy during the current consolidated fiscal year experienced a major downturn in the first half due to theworldwide spread of COVID-19. More recently, however, the economy has been recovering gradually, albeit with degrees ofdifference among regions, as seen in the early resumption of economic activities in China. The tourism, travel, and restaurant
industries in Japan experienced significant damage due to activity restrictions. On the other hand, some industries performed
well, including those that adapted to changes in the consumption structure due to in-home demand.
Among the regions where the NAGASE Group operates, the situation has returned to pre-pandemic levels in Greater China.
While a gradual resumption of economic activities and economic stimulus are expected to accelerate recoveries in theAmericas and ASEAN, the resumption of activities has been limited in Japan due to repeated declarations of emergencies.
Differences in economic recoveries in each country have been affected by vaccine distribution and other measures to preventthe spread of COVID-19. The outlook remains uncertain, however, as the pace of infections has accelerated in certain regionsof the world.
The impact of COVID-19 on NAGASE Group earnings was considerable during the consolidated first quarter, mainly in our
automobile-related business. However, since the consolidated second quarter, our electronics-related business and resins
business experienced a recovery, driven by demand for telework and other factors. Given these developments, the impact on
our businesses overall was limited in scope.
In this environment, we recorded domestic sales of ¥363.16 billion (-9.8% year on year) for the current consolidated fiscal
year. Overseas sales amounted to ¥467.07 billion (+17.6%). In total, we recorded ¥830.24 billion (+3.8%) in net sales.
We recorded gross profit of ¥114.6 billion (+9.2%), aided by the contribution of the highly profitable Prinova Group. Despite
rising costs related to our pursuit of digital transformation (DX) and other activities toward sustainable growth, operating
income amounted to ¥21.91 billion (+14.3%), mainly due to cost savings associated with voluntary constraints on activities
caused by the COVID-19 pandemic. Ordinary income amounted to ¥22.85 billion (+19.8%), while profit attributable to ownersof the parent amounted to ¥18.82 billion (+24.3%).

b. Segment Summary
Functional Materials
The Functional Materials segment recorded lower sales in both domestic and overseas markets. This result was mainly due tolower automotive production in all regions (except Greater China) affected by the spread of the COVID-19 pandemic. This wasparticularly true for the first half of the year, despite a more recent trend in recovery.
The Performance Chemicals business recorded lower sales due to lower sales in coating raw materials and urethane materials
as a result of lower automotive production.
The Speciality Chemicals business recorded lower sales overall, despite firm sales of electronics chemicals mainly for thesemiconductor and other electronics industries, mainly due to the performance of industrial oil solutions and plastic materials,
which were sharply impacted by the weak automotive industry.
As a result, sales for the segment amounted to ¥155.16 billion, which was a ¥14.15 billion (-8.4%) decrease compared to theprior consolidated fiscal year. Operating income fell ¥470 million (-8.9%) to ¥4.88 billion for the year.

Advanced Materials & Processing
Despite lower domestic sales, the Advanced Materials & Processing segment recorded slightly higher sales due to increased
sales overseas.
- 2 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

The Colors & Advanced Processing business recorded lower sales overall, due to sharply decreased sales of digital print
processing materials in Japan, the Americas, and Europe. Sales of dyes and additives, plastic resins for industrial andpackaging applications, and conductive materials were also lower.
The Polymer Global Account business, which mainly sells plastics to the office equipment, appliance, and video game device
markets, recorded higher sales overall. Although sales in Japan decreased, sales overseas rose due to a recovery in demand andhigher market prices, mainly in the resins business.
As a result, sales for the segment amounted to ¥269.15 billion, which was a ¥2.07 billion (+0.8%) increase compared to theprior consolidated fiscal year. Meanwhile, operating income declined ¥1.21 billion (-14.2%) to ¥7.31 billion. This result was
mainly due to the impact of weaker profitability due to declining market conditions in the digital print processing materials
business.

Electronics
Despite a decrease in sales of display materials-related and equipment-related products, the Electronics segment recorded
higher sales, driven by rising sales of precision processing-related materials for intermediate processing in semiconductors andformulated epoxy resins-related products.
As a result, sales for the segment amounted to ¥119.59 billion, which was a ¥4.46 billion (+3.9%) increase compared to theprior consolidated fiscal year. Operating income was ¥8.74 billion, an increase of ¥3.35 billion (+62.1%), mainly due toincreased sales and improved profitability among certain of the Company’s manufacturing subsidiaries.
(Note) As of April 1, 2021, the Electronics Segment has been renamed as the Electronics & Energy Segment.

Mobility & Energy
The Mobility Solutions business recorded lower sales both in Japan and overseas. This result was due to lower sales of car
electronics-related products in Japan and lower sales in the resins business in all regions (except Greater China), stemmingfrom lower automotive production (excluding Greater China) caused by the COVID-19 pandemic.
As a result, sales for the segment amounted to ¥111.53 billion, which was a ¥14.46 billion (-11.5%) decrease compared to theprior consolidated fiscal year. Operating income fell ¥340 million (-18.4%) to ¥1.54 billion.
(Note) As of April 1, 2021, the Mobility & Energy Segment has been renamed as the Mobility Segment.

Life & Healthcare
Despite a decrease in domestic sales, mainly due to lower demand attributable to the impact of the COVID-19 pandemic, theLife & Healthcare segment recorded significantly higher sales overall, due to higher sales overseas for the current consolidated
fiscal year driven by the addition of the Prinova Group acquired by the Company in the prior consolidated second quarter.
The new Food Ingredients business recorded significantly higher sales overall, boosted by the addition of sales from thePrinova Group, despite lower sales of TREHA™ and other products in the food materials field in Japan.
The Life & Healthcare Products business recorded gains in sales of pharmaceutical raw materials and intermediates andmedical materials in the medical and pharmaceutical field along with rising sales of hygiene product-related raw materials in
the cosmetics and toiletries field. Overall business sales were lower, however, as sales of AA2G™ in the skin care field
decreased in Japan and overseas. Pharmaceutical production business sales to the medical and pharmaceutical field also
decreased due to the sale of a manufacturing subsidiary.
As a result, sales for the segment amounted to ¥174.45 billion, which was a ¥52.9 billion (+43.5%) increase compared to theprior consolidated fiscal year. Operating income rose ¥2.53 billion (+63.9%) to ¥6.51 billion.

- 3 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

OthersNo special matters to disclose.

(2) Review of Financial Position
As of the end of the current consolidated fiscal year, current assets amounted to ¥401.75 billion. This represents an increase of¥22.39 billion compared to the end of the prior consolidated fiscal year, mainly due to increases in accounts receivable andinventories, which was offset in part by decreases in cash and deposits. Non-current assets amounted to ¥238.83 billion, up¥6.71 billion from the end of the prior consolidated fiscal year. This increase was mainly due to an increase in investment insecurities stemming from a rise in the fair value of shares owned by the Company, despite a decrease resulting from theamortization of intangible fixed assets and a decrease in property, plant and equipment stemming from the removal of certain
domestic subsidiaries from the scope of consolidation. As a result, total assets increased ¥29.1 billion compared to the end of
the prior consolidated fiscal year to ¥640.58 billion.
Liabilities amounted to ¥302.15 billion, an increase of ¥3.92 billion compared to the end of the prior consolidated fiscal year.
This increase was mainly due to an increase in accounts payable, despite a decrease in commercial paper.
Net assets amounted to ¥338.43 billion, up ¥25.18 billion compared to the end of the prior consolidated fiscal year. This
increase was mainly due to the recording of profit attributable to owners of the parent in the amount of ¥18.82 billion, as wellas an increase in net unrealized holding gain on securities.
As a result, the Company recorded a shareholders’ equity ratio of 51.5%, up 1.6 points over the 49.9% at the end of the priorconsolidated fiscal year.

(3) Summary of Cash Flows
Cash and cash equivalents (“Cash”) at the end of the current consolidated fiscal year decreased ¥1.91 billion (-3.8%) comparedto the end of the prior consolidated fiscal year, amounting to ¥48.55 billion. Cash from operating activities amounted to ¥20.39
billion, while Cash from investing activities amounted to ¥2.64 billion, Cash used in financing activities amounted to ¥25.86
billion, and exchange rate changes increased Cash as well.
(Cash Flows from Operating Activities)
Cash from operating activities as of the end of the current consolidated fiscal year amounted to ¥20.39 billion. This result was
mainly due to the recording of profit before income taxes of ¥29.27 billion, offset in part by a decrease in cash due to anincrease in working capital in the amount of ¥10.05 billion.
(Cash Flows from Investing Activities)
Cash from investing activities as of the end of the current consolidated fiscal year amounted to ¥2.64 billion. This result was
mainly due to proceeds of ¥8.01 billion from the sale of subsidiary stock in connection with a change in the scope of
consolidation and ¥6.02 billion stemming from proceeds from sales of investments in securities. These increases were offset inpart by a decrease of ¥8.86 billion in outlays for the purchases of property, plant and equipment and ¥3.26 billion in purchasesof investments in securities.
(Cash Flows from Financing Activities)
Cash used in financing activities as of the end of the current consolidated fiscal year amounted to ¥25.86 billion. This result
was mainly due to a net decrease of ¥22.0 billion in commercial paper and payments of dividends in the amount of ¥5.45
billion. These decreases were offset in part by proceeds from long-term loans in the amount of ¥4.35 billion.

- 4 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

FYE March
2017

FYE March
2018

FYE March
2019

FYE March
2020

FYE March
2021

54.7％

53.3%

54.2%

49.9%

51.5%

36.9%

39.7%

34.7%

25.9%

33.3%

Interest-bearing debt to cash
flow ratio (years)

5.6

4.1

4.9

4.1

5.8

Interest coverage ratio (times)

13.9

16.3

10.4

23.9

19.1

Shareholders’ equity ratio
Shareholders' equity ratio basedon market value

Shareholders’ equity ratio: Equity capital/total assets
Shareholders' equity ratio based on market value: Market capitalization/total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/operating cash flow
Interest coverage ratio: Operating cash flow/interest payments(Note) 1. Indicators are calculated based on consolidated figures.
2. Market capitalization is calculated using the closing price at the end of the year multiplied by the number ofoutstanding shares at the end of the year (less treasury stock at cost).
3. Operating cash flow is net cash provided by operating activities as shown in the consolidated statements of cash
flows. Interest-bearing debt is all liabilities in the consolidated balance sheets for which interest is payable.
Interest payments are the amount of interest paid as presented in the consolidated statements of cash flows.
4. At the beginning of the fiscal year ended March 2019, the Company adopted Partial Amendment to the
Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan (ASBJ) Statement No.28,
February 16, 2018). Indicators for the fiscal year ended March 2018 reflect a retrospective application of thisaccounting standard.

(4) Future Outlook
a. Performance Forecast for the Fiscal Year Ending March 2022
The environment surrounding the NAGASE Group in the next fiscal year will continue to present uncertainties and a lack ofclarity. Although economic activities are expected to normalize in developed countries and other regions due to the increase in
COVID-19 vaccination rates, uncertain factors include the impact of variant strains on the Japanese economy and trends in
U.S.-China frictions. As companies are forced to respond to the new normal and geopolitical risks, demands will also rise
regarding sustainable efforts toward social and environmental issues.
In the midst of these circumstances, we launched our ACE 2.0 medium-term management plan in April 2021. The measures
implemented under ACE-2020 resulted in a number of reforms. However, we recognize the need for further efforts to ensure
the outcomes of these reforms. Further, we recognize the growing need for a paradigm shift in response to the ongoing rapidchanges in the external environment. For this reason, we have named our new medium-term management plan ACE 2.0,
indicating that we have upgraded the plan, while still retaining the basic concepts defined in ACE-2020.
*For more details on our new medium-term management plan, please refer to the following URL (Japanese).
https://www.nagase.co.jp/assetfiles/tekijikaiji/20210511-3.pdf (English version in progress)
While the impact of COVID-19 on the global economy will continue to be a concern, we have formulated our earnings
forecasts for the fiscal year ending March 2022 as follows, based on the assumption that vaccinations will progress to a certain
extent in many countries and that economic activities will begin to normalize in and after the second half of the fiscal year.
The impact of semiconductor shortages on production volume and on our automobile-related business is an issue; however, we
expect the recovery that began in the second half of the prior fiscal year will continue. We expect Prinova Group sales to risewith the recovery of the U.S. economy, providing a positive impact on our Life & Healthcare business. Even as we pursue
growth aggressively through research and development and investments related to digital transformation, we expect our firsthalf expenses to be level with the prior fiscal year in connection with ongoing restraint in certain activities due to COVID-19.
- 5 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

These forecasts have been developed based on foreign exchange rates of ¥104 to the U.S. dollar and ¥15.4 to the RMB.
Further, these forecasts were calculated based on information available at the time and on reasonable determinations ofconditions. Actual results may vary significantly due to a variety of factors, including the time for containing the COVID-19
outbreak, business conditions overseas and in Japan, exchange rate trends, etc. Any issues that require disclosure in the future
will be disclosed with all haste if important developments relating to our forecasts for the fiscal year ending March 2022 occur.
(Millions of yen)
Gross profit

Operating income

Ordinary income

Profit attributable toowners of the parent

FYE March 2022 Forecast

120,000

23,00024,00018,000FYE March 2021 Actual

114,600

21,91622,854

18,829Change

+4.7％

+4.9%

+5.0%

(4.4%)(Note) In conjunction with the adoption of Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) from the
beginning of the fiscal year ending March 2022, the Company will disclose gross profit instead of net sales in our
published consolidated earnings forecasts from this report.
b. Operating Income Forecast by Segment(Millions of yen)FYE March 2021

FYE March 2022

Actual (Note) 3

Forecast

ChangeFunctional Materials

4,712

5,700

+21.0％

Advanced Materials & Processing

7,311

7,200

(1.5%)

Electronics & Energy (Note) 1

8,408

7,600

(9.6%)

Mobility (Note) 2

1,851

3,000

+62.0％

Life & Healthcare

6,512

7,200

+10.6％

Others(6,879)(7,700)-Total Operating Income

21,91623,000+4.9％(Note) 1. As of April 1, 2021, the Electronics Segment has been renamed the Electronics & Energy Segment.
2. As of April 1, 2021, the Mobility & Energy Segment has been renamed the Mobility Segment.
3. Due to organizational changes effective April 1, 2021, we have changed our business segment classification method
for the fiscal year ended March 2021.

(5) Dividend Policy and Dividends for the Fiscal Years Ending March 2021 and 2022
Dividends are paid based on consolidated cash flows and investment conditions. Our basic policy is to pay continuously
increasing dividends in consideration of consolidated earnings and financial structure, while improving profitability andstrengthening our corporate structure. In addition, we will consider the flexible implementation of share buybacks with an eye
toward efficiency.
The NAGASE Group declared a year-end dividend of ¥24 per share based on this policy. As a result, the scheduled full-year cash
dividend including the interim dividend will amount to ¥46 per share, an increase of ¥2 per share from the prior fiscal year.
After a comprehensive consideration of our forecast earnings capacity (our present consolidated earnings forecasts adjusted forspecial circumstances) and of our stability and continuity of dividend payments, we forecast a full-year dividend of ¥48 per sharefor the next fiscal year. This dividend will consist of a ¥24 per share interim dividend and a ¥24 per share year-end dividend.

2. Basic Policy on the Selection of Accounting Standards
The NAGASE Group intends to use Japanese accounting standards for the time being to allow for inter-company comparability.
We have been studying the adoption of International Financial Reporting Standards (IFRS) for some time, and we plan to makethe appropriate policy choice in the future, considering external trends and other factors.
- 6 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2020)

Current Consolidated Fiscal Year
(March 31, 2021)

51,408221,116
86,183
1,789
7,730
11,859(732)
379,354

49,254
242,558
88,1301,654
7,457
13,259(563)
401,751

61,970(37,033)
24,937
63,984(50,063)
13,92021,09233,303(18,628)
14,67474,62659,327(34,422)
24,90564,956(47,962)
16,99320,05428,074(19,131)
8,943
70,89633,2309,064
30,20472,49930,216
7,488
26,89364,59876,124
391
1,754
1,850
4,967
(91)
84,997232,123
611,477

93,719
211
2,929
1,903
4,689
(112)
103,340
238,835
640,587

ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)
Land
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 7 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2020)

Current Consolidated Fiscal Year
(March 31, 2021)

108,285
30,5901,277
30,000
4,625
5,123
170
20,360200,434

119,941
33,05012,025
8,000
3,565
6,042
203
23,310206,139

30,00042,621
9,280
13,6772,221
97,800298,234

30,00034,514
16,077
13,292
2,131
96,016302,155

9,699
10,646
257,067(5,071)
272,342

9,699
10,646
265,920(1,503)284,763

32,618
3
1,051
(694)
32,9797,921
313,243
611,477

43,57672
1,006
268
44,924
8,743
338,431640,587

LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
Deferred tax liabilities
Retirement benefit liability
Other
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 8 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2019 March 31, 2020)

Current Consolidated Fiscal Year
(April 1, 2020 March 31, 2021)

799,559
694,657
104,901

830,240
715,640
114,600

12,787
26,491
2,967
147

14,87730,828
3,609
175

4,975

6,558

1,545
22
281
2,037
34,47785,734
19,167

1,936
19
(62)
2,344
32,396
92,683
21,916

148
2,173
266
666
3,254

149
1,163
263
417
766
2,759

1,355
538
747
697
3,339
19,083

1,064
327
430
1,821
22,854

21
9,723
52
4
9,801

86
5,774
2,657
163
51
8,733

46
204
3,116
1,028
288
4,684
24,200
7,395
1,288
8,684
15,515371
15,144

23
92
1,824
10
155
1
206
2,314
29,272
7,851
1,775
9,626
19,646816
18,829Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
Employee salaries and allowances
Provision for accrued bonuses for employees
Provision for accrued bonuses for directors
Depreciation and amortization other than amortizationof goodwill
Retirement benefit expenses
Provision for retirement benefits for directors
Allowance for doubtful accounts
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
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 sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and affiliates
Subsidy income
Other
Total extraordinary gains
Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Loss on impairment of fixed assets
Loss on sales of investment securities
Loss on valuation of investments securities
Loss on sales of shares of subsidiaries and affiliates
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit for the period
Profit attributable to non-controlling interests
Profit attributable to owners of the parent- 9 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Prior Consolidated Fiscal Year
(April 1, 2019 March 31, 2020)

Current Consolidated Fiscal Year
(April 1, 2020 March 31, 2021)

15,515

19,646(9,231)11(1,973)(402)

10,945
69
7
963

(339)

254

(11,935)
3,579

12,241
31,8873,380
199

30,774
1,112

Profit for the period
Other comprehensive income
Net unrealized holding (loss) gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive (loss) gain of affiliates
accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Non-controlling interests- 10 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

(3) Consolidated Statements of Changes in Shareholders’ Equity
Prior Consolidated Fiscal Year (April 1, 2019 - March 31, 2020)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Retained earnings

10,647Less treasury stock,at cost247,617

Total shareholders’equity(5,070)262,892

ChangesCash dividends(5,704)(5,704)

Profit attributable to ownersof the parent

15,144

15,144Purchases of treasury stock(0)

Equity transactions with
non-controlling interests

(0)

(0)

(0)

Changes in scope of
consolidation

(93)

(93)

Changes in scope of equity
method103

103

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

-

(0)

9,450

(0)

9,449

9,699

10,646

257,067(5,071)

272,342

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred (loss)
gain on hedges

41,857(7)Translation
adjustments
3,224

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net assets(292)

44,781

4,934

312,609

ChangesCash dividends(5,704)

Profit attributable to ownersof the parent

15,144Purchase of treasury stock(0)

Equity transactions with
non-controlling interests(0)

Changes in scope of
consolidation(93)

Changes in scope of equity
method103

Changes other thanshareholders’ equity
accounts (net)(9,238)11(2,172)(402)(11,802)

2,986(8,815)

Total changes(9,238)11(2,172)(402)(11,802)

2,986

634

Balance, end of period

32,618

3

1,051

(694)

32,9797,921

313,243- 11 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

Current Consolidated Fiscal Year (April 1, 2020 - March 31, 2021)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Retained earnings

10,646

Less treasury stock, atcost

257,067

Total shareholders’equity(5,071)

272,342

ChangesCash dividends(5,456)(5,456)

Profit attributable to ownersof the parent

18,82918,829Purchase of treasury stock
Disposal of treasury stock0

Cancellation of treasury
stock

(0)

Equity transactions with
non-controlling interests(0)(4,520)

(952)

(952)

0

0

4,520

(0)

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

-

(0)

8,852

3,568

12,4209,699

10,646

265,920(1,503)284,763

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

32,6183Translation
adjustments
1,051

Remeasurementsof defined benefit
plans

(694)

Total
Non-controlling
Total net assets
accumulated
interests
othercomprehensive
income32,9797,921

313,243

ChangesCash dividends(5,456)

Profit attributable to ownersof the parent

18,829Purchase of treasury stock(952)

Disposal of treasury stock0

Cancellation of treasury
stock

-

Equity transactions with
non-controlling interests(0)

Changes other thanshareholders’ equity
accounts (net)10,957

69

(45)

963

11,944822

12,767

Total changes

10,957

69

(45)

963

11,944822

25,188

Balance, end of period

43,576

72

1,006

268

44,924

8,743

338,431- 12 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

(4) Consolidated Statements of Cash Flows(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2020 March 31, 2021)

Prior Consolidated
Fiscal Year
(April 1, 2019 March 31, 2020)
Operating Activities
Income before income taxes
Depreciation and amortization other than amortization of
goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Subsidy income
Increase in retirement benefit liability
Increase in retirement benefit asset
Interest and dividend income
Interest expenses
Exchange gain, net
Gain on sales of investment securities, investments in capital,
shares of subsidiaries and affiliates, and investments in capital ofsubsidiaries and affiliates, net
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories(Decrease) increase in notes and accounts payable
Other
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 other assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of investments in capital
Purchase of share of subsidiaries resulting in change in scope of
consolidation
Proceeds from sale of share of subsidiaries resulting in change ofscope of consolidation
Decrease on short-term loans receivable included in othercurrent assets, net(Increase) decrease in time deposits, net
Proceeds from subsidy income
Other
Net cash (used in) provided by investing activities- 13 -

24,20029,272

10,08911,008

3,116
2,037
(52)
645
(1,645)(2,322)
1,355
(121)

1,824
2,344
(163)
1,395
(1,174)(1,312)
1,064(24)(9,723)(8,419)19,452
3,187(13,689)
2,244
38,773
2,714(1,382)(7,031)33,074(17,641)(1,034)
8,623
3,036
28,7971,950(1,067)(9,288)20,391(11,909)87(464)(1,635)
10,278(54)(8,864)448(704)(3,260)6,027(47)(44,691)

-

-

8,010

404

319

(887)
52
(388)
(49,208)

290
163
259
2,643

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2020 March 31, 2021)

Prior Consolidated
Fiscal Year
(April 1, 2019 March 31, 2020)
Financing activities(Decrease) increase in short-term loans, net
Increase (decrease) in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by (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
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents, at end of the period- 14 -(21,332)
18,00025,454(1,131)
20,000(10,000)(0)(5,704)(219)(730)
24,334(1,882)
6,317
44,017658(22,000)
4,350(1,891)(952)(5,456)(290)(285)(25,866)913(1,918)50,471

136-

50,471

48,553

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

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

(Additional Information)(Application of Tax Effect Accounting for Transition from Consolidated Taxation System to Group Tax Sharing System)
The Company and certain domestic consolidated subsidiaries have calculated the amounts of deferred tax assets and deferred
tax liabilities in accordance with the provisions of tax laws in Japan prior to the amendments based on the treatments stipulated
in Paragraph 3 of Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated
Taxation System to the Group Tax Sharing System (ASBJ Practical Issues Task Force No. 39, March 31, 2020) instead of
applying the provision of Paragraph 44 of Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28,
February 16, 2018), regarding the transition to group tax sharing system provided for in Act for Partial Amendment of the
Income Tax Act, etc. (Act No. 8 of 2020), and items for which the non-consolidated taxation system has been reviewed in linewith the transition to the group tax sharing system.
(Effects of COVID-19 Pandemic When Making Accounting Estimates)
The Group made accounting estimates related to impairment loss on non-current assets and recoverability of deferred tax
assets, etc., based on information available at the time the consolidated financial statements were prepared.
The impact of the spread of COVID-19 on NAGASE Group earnings for the current consolidated fiscal year was particularly
significant on our automobile-related business during the consolidated first quarter. However, in the consolidated second
quarter, we began to see a recovery driven by telework demand, etc., in our electronics-related business under our Electronics
segment and resins business under our Advanced Materials & Processing segment. As a result, the impact of COVID-19
overall was limited.
Accounting estimates related to the impact of COVID-19 in fiscal 2021 and later are based on the assumption that the unstablebusiness environment will continue through the first half of fiscal 2021. We also assume that the spread of vaccinations during
the second half of fiscal 2021 will lead to a gradual normalization in business activities, which we have reflected in our
accounting processes.
There are still many uncertain factors regarding the impact of COVID-19, and it may affect the financial condition andoperating performance of the Group in and after the next consolidated fiscal year.

- 15 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

(Segment Information, etc.)
a. Segment Information
1. Reportable Segments
The Company’s reportable segments are those units comprising the NAGASE Group for which separate financial
information is available and for which the board of directors makes regular decisions regarding resource allocation andoperating performance.
The Company classifies reportable segments according to the location of the business in the value chain and the market(s)targeted. Accordingly, the Company has defined five segment categories: Functional Materials (located at the top of thevalue chain), Advanced Materials & Processing (located in the next stage of the value chain), Electronics, Mobility &Energy, and Life & Healthcare (these last three segments functioning across all industries).
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, and adhesives, urethane materials andauxiliary materials, plastic materials, plastic additives, industrial oil solutions, water processing raw materials, surfactant raw
materials, fluorochemicals, encapsulant materials, 5G materials, silicone materials, environmental solutions andenvironment-related commercial products, sintered metal filters, and more for the paints/inks, resins, urethane foam, organic
synthesis, surfactants, electronics chemicals, communications equipment, water processing, metal processing, plastic andfilm processing, and other industries.
The Advanced Materials & Processing segment is engaged in the sales of dyestuffs, pigments, functional pigments, digitalprint processing products, 3D printing products, thermoplastic resins, thermosetting resins, automobile refinish paints,
conductive coatings, synthetic rubber, inorganic materials, plastics products, resin molding tools/dies, and more for thedye/additive, digital print processing material, fiber processing, raw resin material, resin molding, 3D printing, functionalfilm and sheet, appliance and office automation device, electronics, packaging material, construction material, and otherindustries.
The Electronics segment is engaged in the sales of formulated epoxy resins, precision abrasives, semiconductor assemblymaterials and devices, adhesives and encapsulant materials, display panel components and devices, chemical management
equipment for display manufacturing processing, low-temperature/vacuum equipment, LEDs, and other products for theheavy electrical and light electrical, semiconductor, HDD, electronic component, automotive and aircraft, display, touch
panel, environmental energy, and other industries.
The Mobility & Energy segment is engaged in the sales of plastic products in general, materials for secondary batteries,
interior and exterior materials and components, materials for functional components, products for electrification, sensor
components, in-vehicle electronics products, in-vehicle display-related components, self-driving-related products, design
and manufacture of storage battery systems, proposals for energy management systems, solar panels, battery assessment
services, optical wireless communication equipment, and other products for the mobility, mobility-related, storage battery,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, food ingredients, sports nutrition products, nutrient premixes,
additives for cosmetics, feeds, and surfactants for the pharmaceutical, food and beverage, cosmetics, agricultural, toiletries,
and health care industries. The segment offers radiation measurement as one of its main services. In addition, this segment
sells cosmetics, health foods, and beauty foods directly to consumers.

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

- 16 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

3. Information Related to Net Sales, Income (Loss), Assets, Liabilities, and Other Items by Segment
Prior Consolidated Fiscal Year (April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable Segments
Advanced
Functional
Mobility &Life &
Materials & Electronics
Materials
EnergyHealthcare
Processing

Total

Others(Note) 1

Total

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

Net sales
Sales tocustomers

169,318

267,078

115,123

126,000

121,545799,066492

799,559--

799,559

Intersegment
sales/transfers

1,867

2,180

1,816

2,849

480

9,194

5,374

14,568-(14,568)-

Total

171,186

269,259

116,940

128,849

122,025

808,260

5,867

814,128-(14,568)

799,559

Segment income(loss)

5,364

8,526

5,396

1,890

3,973

25,151

180

25,331(6,603)439

19,167

Segment assets

76,936

135,541

58,87948,687

171,461

491,506

4,699

496,205

152,181(36,909)611,477

Depreciation
and amortization

413

754

2,372

204

4,571

8,316

208

8,525

1,563

-

10,089Amortization of
goodwill

107

-

132

-

1,796

2,037

-

2,037

-

-

2,037

Unamortizedbalance of
goodwill

1,864

946

484

-

29,93533,230-33,230--33,230Investments inequity affiliates

1,895

1,722

3,906

1,242

3,064

11,831-

11,831-(2)

11,829

Increase inproperty, plant,
and equipment
and intangible
fixed assets

436

1,845

3,235

241

6,035

11,79424

11,8181,010-

12,829Other items(Note) 1. “Others” 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 Others. Segment assets
under Corporate are assets not allocable to Reportable Segments or Others.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of Segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in“Consolidated”.

- 17 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

Current Consolidated Fiscal Year (April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable Segments
Advanced
Functional
Mobility &Life &
Materials & Electronics
Materials
EnergyHealthcare
Processing

Total

Others(Note) 1

Total

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

Net sales
Sales tocustomers

155,166

269,151

119,590

111,530

174,452

829,891349

830,240--

830,240

Intersegment
sales/transfers

2,249

2,113

2,234

3,015

399

10,013

5,059

15,072-(15,072)-

Total

157,415

271,265

121,824

114,546

174,852

839,904

5,408

845,312-(15,072)

830,240

Segment income(loss)

4,888

7,311

8,746

1,543

6,512

29,002

157

29,160(7,763)519

21,916

Segment assets

81,236

144,135

63,85555,899165,934

511,061

2,738

513,800

161,684(34,898)

640,587

Depreciation
and amortization

472

1,040

1,490

285

5,788

9,076

104

9,180

1,828

-

11,008

Amortization of
goodwill

105

89

40

-

2,108

2,344

-

2,344

-

-

2,344

Unamortizedbalance of
goodwill

1,787

720

451

-

27,25730,216-30,216--30,216

Investments inequity affiliates

1,981

1,728

3,170

1,237

2,995

11,11382

11,196-(1)

11,195

Increase inproperty, plant,
and equipment
and intangible
fixed assets

399

1,974

1,195

261

5,744

9,576

11

9,588

1,167

-

10,755

Other items(Note) 1. “Others” 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 Others. Segment assets
under Corporate are assets not allocable to Reportable Segments or Others.
3. Adjustments are eliminations of intersegment transactions.
4.The sum of Segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in“Consolidated”.

- 18 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

b. Other Information
Prior Consolidated Fiscal Year (April 1, 2019 to March 31, 2020)
1. Products and Services
Omitted, as the same information has been disclosed under Segment Information.

2. Geographical Information(1) Net sales(Millions of yen)
Japan

Greater China

402,390

ASEAN

187,554

Americas110,642

55,420Europe24,610

Other

Total

18,939799,559(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
2. Countries/regions are determined by geographical proximity.
3. Major countries in each region(1) Greater China...... China, Hong Kong, Taiwan(2) ASEAN............... Thailand, Vietnam(3) Americas............. U.S., Mexico(4) Europe................. Germany(5) Other................... Korea(2) Property, plant and equipment(Millions of yen)
Japan

Other
64,301

Total
10,324

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

- 19 -

74,626

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

Current Consolidated Fiscal Year (April 1, 2020 to March 31, 2021)
1. Products and Services
Omitted, as the same information has been disclosed under Segment Information.

2. Geographical Information(1) Net sales(Millions of yen)
Japan

Greater China

363,168

ASEAN

212,622

Americas104,495

88,460Europe42,787

Other

Total

18,705830,240(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
2. Countries/regions are determined by geographical proximity.
3. Major countries in each region(1) Greater China...... China, Hong Kong, Taiwan(2) ASEAN............... Thailand, Vietnam(3) Americas............. U.S., Mexico(4) Europe................. Germany, UK(5) Other................... Korea(2) Property, plant and equipment(Millions of yen)
Japan

Other
61,846

Total
9,050

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

- 20 -

70,896

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

c. Impairment Losses of Non-Current Assets for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable Segments
Advanced
Functional
Mobility &Life &
Materials & Electronics
Materials
EnergyHealthcare
Processing
Impairment
loss

-

-

2,209

2

903

Total

Corporate/
Elimination

Others

3,114

-

Total

2

3,116

(Note) In the Electronics segment, as a result of worsening profitability of the thin processing business for glass substrate, the bookvalues of related business assets were written down to their recoverable amounts. Thus, the Company recorded a ¥1,639
million loss on impairment of fixed assets. Also in this segment, in respect to goodwill related to our siloxane materials
production and development business, the Company have made progress strengthening the foundation of development of
optical component materials for the wearables market, but the financial results have not been as good as projected in the initialbusiness plan. The Company wrote down the book value of these assets to their recoverable amounts, recording a ¥570 million
loss on impairment of goodwill.
The Life & Healthcare segment recorded impairment loss of ¥903 million for business assets related to a pharmaceuticalmanufacturing business due to decreasing profitability. The Company wrote down the book value of these assets to theirrecoverable amounts.

Current Consolidated Fiscal Year (April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable Segments
Advanced
Functional
Mobility &Life &
Materials & Electronics
Materials
EnergyHealthcare
Processing
Impairment
loss

-

843

954

18

-

Total
1,817

Corporate/
Elimination

Others

-

7

Total

1,824

(Note) The Advanced Materials & Processing segment recorded impairment losses of ¥843 million for business assets related to color
former manufacturing business due to declining profitability. The Company wrote down the book value of these assets to theirrecoverable amounts.
We conducted a review of the future business plans for the business assets owned by a Taiwanese subsidiary in the polyimide
film and glass lamination business in the Electronics segment. As a result, we determined future cash flow will be less thanbook value. Therefore, the Company wrote down the book value of these assets to their recoverable amounts and recorded an
impairment loss of ¥951 million.

- 21 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2021

d. Amortization and Unamortized Balance of Goodwill for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2019 to March 31, 2020)
Omitted, as the same information has been disclosed under Segment Information.

Current Consolidated Fiscal Year (April 1, 2020 to March 31, 2021)
Omitted, as the same information has been disclosed under Segment Information.

e. Information About Gain on Negative Goodwill for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2019 to March 31, 2020)
No matters to report.

Current Consolidated Fiscal Year (April 1, 2020 to March 31, 2021)
No matters to report.

(Per-Share Data)
Prior Consolidated Fiscal Year
(April 1, 2019 March 31, 2020)

Current Consolidated Fiscal Year
(April 1, 2020 March 31, 2021)

Net assets per share¥2,462.04¥2,670.09

Earnings per share¥122.12¥151.91(Note) 1. Information for diluted earnings per share is not presented, as the Company does not issue any stock with dilutive effects.
2. Basic earnings per share calculations are as shown below.
Prior Consolidated Fiscal Year
(April 1, 2019 March 31, 2020)

Current Consolidated Fiscal Year
(April 1, 2020 March 31, 2021)

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

15,144

18,829Profit attributable to common stock owners of the parent(millions of yen)

15,144

18,829Average number of outstanding shares of common stock(shares)

124,011,793

123,955,784(Significant Subsequent Events)
No matters to report.

- 22 -