Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025
<Under Japanese GAAP>

August 5, 2024

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

Stock exchange listing: Tokyo (Prime Market)
NAGASE & CO., LTD.
Code number:8012
URL (https://www.nagase.co.jp/english/)Representative:
Hiroyuki Ueshima, Representative Director and President
Contact:
Kazuhiro Hanba, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Start of distribution of dividends (scheduled): Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: Yes(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results
Net sales
For the first quarter ended
June 30, 2024
June 30, 2023

Gross profit(% = year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of the parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

239,201
224,0626.8
2.0

45,78838,70718.3-3.0

10,734
6,955

54.3
-36.0

10,949
7,338

49.2
-36.4

7,415
4,367

69.8
-45.2

(Note) Comprehensive income

First quarter ended June 30, 2024: ¥21,409 million (44.0%)
First quarter ended June 30, 2023: ¥14,866 million (12.8% decrease)
Earnings per share

For the first quarter ended
June 30, 2024
June 30, 2023

Earnings per share (diluted)
Yen

Yen

65.42
37.45

−
−

(2) Consolidated Financial Position
Total assets
June 30, 2024
March 31, 2024
(Reference) Equity capital

Shareholders’equity ratio

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

830,238
792,336

414,800
401,31549.0
49.7

3,612.12
3,463.84

As of June 30, 2024: ¥ 406,947 million
As of March 31, 2024: ¥ 394,064 million

2. Dividends
1Q
For the year ended (or ending)March 2024
March 2025
March 2025 (forecast)

2Q
Yen

−
−

(Note) Revisions to the latest dividends forecast: No

Annual Dividends per Share
3Q
Fiscal year end
Yen

40.00
40.00

Yen

Yen

Annual
Yen

−

40.00

80.00

−

45.00

85.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2025
(April 1, 2024 to March 31, 2025)(% = year-on-year change)

Net sales
Millions ofyenFull fiscal year

940,000

OperatingincomeGross profit%

Millions of yen%

4.4

180,000

9.
3

Millions ofyen

36,500Ordinary income

%

19.2

Millions ofyen

35,200%

15.1

Profitattributable toowners of theparentMillions ofyen

28,000Earnings
per
share
%

Yen

25.0

254.30(Note) Revisions to the latest consolidated earnings forecast: No* Notes(1) Significant changes in the scope of consolidation during the period: Yes
New: ― (Company name:)
Excluded: 1 (Company name: Nagase Specialty Materials NA LLC)
(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (4) Notes Related to Quarterly
Consolidated Financial Statements (Changes in the scope of consolidation and application of the equity method), on P.12 of thisdocument.

(2) Application of special accounting methods to the preparation of quarterly financial statements: Yes(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (4) Notes Related to Quarterly
Consolidated Financial Statements (Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated
Financial Statements), on P.12 of this document.

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error correctionsi.
Changes in accordance with revisions to accounting and other standards: Yes
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(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (4) Notes Related to Quarterly
Consolidated Financial Statements (Change in Accounting Policy), on P.12 of this document.

(4) Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)June 30, 2024

ii.

March 31, 2024

117,908,285 shares

March 31, 2024

4,143,115 shares

Number of treasury stock as of the fiscal period end
June 30, 2024

iii.

114,908,285 shares

2,246,437 shares

Average number of shares during the period

June 30, 2024
113,344,753 shares June 30, 2023
116,646,422 shares(Note) The number of treasury shares as of the fiscal period end includes Company shares held by the Stock-Granting Trust for
Directors (288,500 shares as of June 30, 2024). Treasury stock deducted from the calculation of the average number ofshares during the period includes Company shares held by the Stock-Granting Trust for Directors (288,500 shares as of June30, 2024).

* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified
public accountants or an audit firm: None
* 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.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

Attachments
1． Qualitative Information

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

5(3) Qualitative Information Related to Consolidated Earnings Forecasts

5

2． Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheets

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

8

Quarterly Consolidated Statements of Income
Three-month periods ended June 30, 2024 and 2023

8

Quarterly Consolidated Statements of Comprehensive Income
Three-month periods ended June 30, 2024 and 2023

9(3) Quarterly Consolidated Statements of Cash Flows

10(4) Notes Related to Quarterly Consolidated Financial Statements

12(Assumption for Going Concern)

12(Changes in the scope of consolidation and application of the equity method)

12(Change in Accounting Policy)

12(Significant Fluctuations in Shareholders’ Equity)

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

12(Additional Information)

13(Segment Information, etc.)

14

- 1 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

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

General Summary of Results

Despite expectations of monetary easing in the U.S., the outlook for the global economy remained uncertain during the firstquarter of the current consolidated fiscal year. This uncertainty was due to the economic impact of the upcoming U.S. presidential
election in the fall, concerns over corporate earnings in Japan due to rising interest rates and a stronger yen, and stagnation in the
Chinese real estate market.
As an overview of the regions in which the NAGASE Group does business, the economy in Greater China has not yet recovered
with the ongoing stagnation in the real estate market and weak consumer spending. The economy in the Americas is expected tocontinue to pick up in the near term due to strong consumer spending, capital investment, and housing investment. In ASEAN,
the economy has been steady, mainly due to domestic and inbound demand. Downside factors in the Japanese economy include
narrowing in the Japan-U.S. interest rate differential, wide fluctuations in exchange rates, and a sharp rise in the price of imported
goods due to the weak yen. However, the economy should continue to recover with improved real wages, firm corporate capital
investment, and continued inbound travel demand.
In this environment, earnings for the cumulative consolidated first quarter of the current fiscal year are as follows.
(Millions of yen)Three-monthThree-month

period ended
June 30, 2023

period ended
June 30, 2024

ChangeChange (%)

Net sales

224,062

239,201

15,1386.8Gross profit

38,70745,788

7,080

18.3

Operating income

6,955

10,734

3,778

54.3

Ordinary income

7,338

10,949

3,611

49.2

Profit before income taxes

6,412

10,774

4,362

68.0

Profit attributable to ownersof the parent

4,367

7,415

3,047

69.8

・All stages of profit for the first quarter of the current consolidated fiscal year increased partly due to the weakening yen.
・Operating income increased due to an increase in gross profit. For details, see b. Segment Summary.
・Profit attributable to owners of the parent increased ¥3.0 billion to ¥7.4 billion, mainly due to the decrease in loss on valuationof investment securities as well as the increase in operating income.

- 2 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025b.

Segment Summary

The following describes performance by segment.
Note that as of October 1, 2023 of the previous consolidated fiscal year the categorizations for reportable segments have been
partially amended. Year-on-year amounts and ratios for the cumulative first quarter of the previous consolidated fiscal year are
calculated after rearranging reportable segment classifications to match those of the cumulative first quarter of the current
consolidated fiscal year.
*For the details of the changes in business segmentation, please refer to (Segment Information Etc.) on P.14 of this document
As of the first quarter of the current consolidated fiscal year, we changed the method of allocating corporate expenses to more
appropriately reflect the performance of reportable segments. Segment information in the table below for the first quarter of theprevious consolidated fiscal year is based on the allocation method after the change.
Functional Materials(Millions of yen)Three-monthThree-month

period ended
June 30, 2023

period ended
June 30, 2024

ChangeChange (%)

Net sales

36,43940,581

4,142

11.4

Gross profit

6,407

8,827

2,420

37.8

Operating income

1,000

2,975

1,974

197.2

・Sales increased for coating materials mainly due to strong performance in the automobile industry
・Sales increased for raw materials for the electronics industry, including semiconductor-related products
・The digital print processing materials manufacturing business narrowed losses, mainly due to the suspension of production at
the U.S. site
・Operating income increased due to an increase in gross profit
Advanced Materials & Processing(Millions of yen)Three-monthThree-month

period ended
June 30, 2023

period ended
June 30, 2024

ChangeChange (%)

Net sales

48,56053,503

4,943

10.2

Gross profit

5,483

6,588

1,104

20.1

Operating income

1,016

1,588

571

56.3

・Resin sales increased due to recovery in demand in the electrical and electronics industry, including office equipment andappliance
・Operating income increased due to an increase in gross profit- 3 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

Electronics & Energy(Millions of yen)Three-monthThree-month

period ended
June 30, 2023

period ended
June 30, 2024

ChangeChange (%)

Net sales

35,53840,092

4,553

12.8

Gross profit

7,720

9,554

1,833

23.7

Operating income

1,781

2,770

989

55.5

・Sales of materials to the semiconductor industry increased due to a moderate market recovery
・Sales increased for materials for display applications due to higher demand
・Sales increased for formulated epoxy resins, mainly for server applications and mobile device applications
・Operating income increased due to an increase in gross profit
Mobility(Millions of yen)Three-monthThree-month

period ended
June 30, 2023

period ended
June 30, 2024

ChangeChange (%)

Net sales

31,13632,117980

3.1

Gross profit

3,414

4,022

607

17.8

660

988

327

49.7

Operating income

・Sales increased for resins due to boosted global automobile production despite a decrease in production by Japanese customers
in China
・Sales increased for functional materials and functional components for interior and exterior fittings and electrification
・Operating income increased due to an increase in gross profit
Life & Healthcare(Millions of yen)Three-month
period ended
June 30, 2024

Three-month
period ended
June 30, 2023

ChangeChange (%)

Net sales

72,386

72,861475

0.7

Gross profit

15,636

16,8881,251

8.0Operating income

2,750

1,526

(1,223)(44.5)

・Prinova Group's profitability recovered compared to the same period last year, when the food ingredients market was declining,and sales also increased
・Domestic sales of NAGASE Viita’s cosmetics materials increased, while sales abroad decreased partly due to inventory
adjustments
・Sales increased for pharmaceutical raw materials and intermediates
・Operating income decreased, despite higher gross profit, as personnel expense and other selling, general and administrative
expenses increased at the Prinova Group
OthersNo special matters to disclose.

- 4 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(2) Review of Financial Positiona.

Assets, Liabilities and Net Assets(Millions of yen)

Prior Consolidated

First Quarter,
Current

Fiscal Year
(March 31, 2024)

Consolidated
Fiscal Year

ChangeChange (%)(June 30, 2024)
Current assets

542,470

571,854

29,385

5.4

Non-current assets

249,865

258,383

8,517

3.4

Net assets

792,336

830,238

37,902

4.8

Liabilities

391,021415,437

24,416

6.2

Net assets

401,315414,800

13,485

3.4

49.7

49.0

+ 0.7 p－Shareholders’ equity ratio (%)

・Current assets increased due to an increase in accounts receivable and inventories, etc.
・Non-current assets increased due to an increase in property, plant and equipment and intangible fixed assets, and the fair valuesof investments in securities
・Liabilities increased mainly due to an increase in accounts payable, short-term loans and long-term loans
・Net assets increased mainly due to the recording of quarterly profit attributable to owners of the parent and an increase intranslation adjustments, despite decreases from purchases of treasury stock and payments of dividends
・As a result, the Company recorded a shareholders’ equity ratio of 49.0%, down 0.7 points compared to 49.7% from the end of
the prior consolidated fiscal yearb.

Consolidated Cash Flows(Millions of yen)Three-month period ended

Three-month period ended

June 30, 2023

June 30, 2024

Cash flows from operating activities

15,894(3,074)

Cash flows from investing activities(4,002)(8,202)

Cash flows from financing activities(13,636)

3,344

・Although the Company recorded profit before income taxes of ¥10.7 billion, net cash used in operating activities was mainly
the result of a decrease in cash of ¥4.5 billion in connection with an increase in working capital and ¥4.3 billion in income
taxes paid.
・Net cash used in investing activities was mainly the result of cash outlays of ¥3.6 billion for the purchase of property, plantand equipment and ¥2.7 billion for net increase of time deposits
・Net cash provided by financing activities was mainly due to ¥7.0 billion in proceeds from long-term loans and a net increaseof ¥6.4 billion in short-term loans. These amounts were offset in part by cash outlays of ¥4.5 billion, ¥3.3 billion, and ¥1.9
billion due to the payments of dividends, purchases of treasury stock, and repayments of long-term loans respectively.

(3) Qualitative Information Related to Consolidated Earnings Forecasts
We made no changes to the consolidated earnings forecast for the current fiscal year (April 1, 2024 to March 31, 2025) fromthe figures announced on May 8, 2024.

- 5 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2024)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 6 -(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2024)

59,410321,126
131,137
2,594
14,25914,881(940)
542,470

58,395
333,353
140,387
2,667
16,54021,573(1,062)571,854

87,39290,54927,884
2,761
38,70369,34928,2742,367
39,45970,101

76,225
326
6,217
4,596
5,935
(177)
93,123249,865
792,336

79,071
693
6,261
4,753
7,117
(163)
97,732
258,383
830,238NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

Prior Consolidated Fiscal Year
(March 31, 2024)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Current portion of bonds
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Provision for directors’ stock benefit
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- 7 -(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2024)

156,352
50,731
6,946
37,00010,000
5,195
7,569
251
28,628302,675

166,026
60,561
5,050
37,00010,000
4,150
4,086
125
31,460318,462

20,00027,533
12,492
13,567
12,34560
2,345
88,345391,021

20,00034,93812,875
14,104
12,543133
2,379
96,975415,437

9,699
9,348
303,328(9,543)
312,832

9,699
9,348
299,230(5,954)
312,323

33,763
119
44,846
2,503
81,232
7,250
401,315
792,336

35,250172
57,315
1,885
94,623
7,853
414,800
830,238NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)Three-month periods ended June 30, 2024 and 2023

(Millions of yen)Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)

224,062
185,355
38,70731,751
6,955

239,201
193,41345,78835,053
10,734

49
689
60
79
450
127
1,456

208
720
82
181
30
93
1,316

961
112
1,074
7,338

908
193
1,101
10,949

38
129
228
47
444

32
－
－
9
42

0
451
21
864
31
1,369
6,412
1,870
4,541
174
4,367

10
24
－
－
182
217
10,774
3,174
7,600
185
7,415

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy income
Other
Total extraordinary gains
Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Loss on sales of investment securities
Loss on valuation of investments securities
Loss on discontinued operations
Total extraordinary losses
Income before income taxes
Income taxes
Profit for the period
Profit attributable to non-controlling interests
Profit attributable to owners of the parent- 8 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(Quarterly Consolidated Statements of Comprehensive Income)Three-month periods ended June 30, 2024 and 2023

(Millions of yen)Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)

4,541

7,600

5,331
303
4,216
163

1,488
53
12,559
(617)

309

326

10,324
14,866

13,80921,40914,446420

20,806
602

Profit for the period
Other comprehensive income
Net unrealized holding gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive 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- 9 -NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(3) Quarterly Consolidated Statements of Cash Flows
Three-month periods ended June 30, 2024 and 2023

(Millions of yen)Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)

6,412

10,774

3,306

3,793

638
(228)

677
－

(79)

(181)

31
140
169
(738)
961
(576)

182
(728)
(837)
(929)
908
(1,393)

(108)

－

864

－

1,364
11,534
2,412(5,902)
20,203836(1,116)228(4,256)
15,894(3,789)(5,366)
4,565(6,463)
1,213
1,044
(984)
－
(4,346)(3,074)(2,159)43(1,398)
(251)
214
－

(3,680)
60
(392)
(76)
－
(9)

(244)

－

(303)

(117)

104
(7)
(4,002)(2,791)(1,194)(8,202)

Operating activities
Income before income taxes
Depreciation and amortization other than amortization of
goodwill
Amortization of goodwill
Subsidy income
Share of gain of entities accounted for using equity
methodLoss on discontinued operations
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Exchange gain, net
Gain on sales of investment securities, investments incapital, shares of subsidiaries and affiliates, andinvestments in capital of subsidiaries and affiliates, net
Loss on valuation of investment securities, investments incapital, shares of subsidiaries and affiliates, andinvestments in capital of subsidiaries and affiliates, net
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
Increase in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible fixed assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of investments in capital
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Increase in short-term loans receivable included in othercurrent assets
Decrease (increase) in time deposits, net
OtherNet cash used in investing activities- 10 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(Millions of yen)Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)(10,495)
5,000
－
(8)
(3,290)(4,696)(145)(13,636)
3,372
1,628
40,331
41,960

6,455
－
7,000
(1,910)(3,361)(4,562)
(276)
3,344
4,043
(3,888)59,18555,297

Financing activities(Decrease) increase in short-term loans, net
Increase in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Purchase of treasury stock
Cash dividends paid
Other
Net cash (used in) provided by financing activities
Effects of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the period- 11 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(4) Notes Related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.
(Changes in the scope of consolidation and application of the equity method)
Major changes in the scope of consolidation(Decrease)・Nagase Specialty Materials NA LLC (dissolved in an absorption-type merger, in which consolidated subsidiary Nagase America
LLC was the surviving company, on April 1, 2024)(Change in Accounting Policy)(Application of Accounting Standard for Current Income Taxes)
The Company adopted the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022; "Revised
Accounting Standard 2022") beginning with the first quarter of the current consolidated fiscal year.
We recorded revisions related to the classification of income taxes (taxes on other comprehensive income) in accordance withthe transitional treatment provided in the proviso of Paragraph 20-3 of the Revised Accounting Standard 2022 and the proviso
of Paragraph 65-2(2) of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28,
2022; "Revised Guidance 2022"). This change in accounting policy has no impact on our quarterly consolidated financial
statements.
At the start of the first quarter of the current consolidated fiscal year, the Company adopted Revised Guidance 2022 to revise
the treatment in the consolidated financial statements when tax deferrals are applied for gains or losses on the sale of subsidiarycompany shares, etc., between consolidated companies. We applied this change in accounting policy retrospectively, and we
prepared all quarterly and year-end consolidated financial statements for the previous year on a retrospective basis. Deferred
tax assets or liabilities are recorded on the financial statements of the company selling shares of the subsidiary in question for
temporary differences related to gains or losses on the sale in question when recording the tax effects in cases where the gain orloss on the sale of subsidiary company shares, etc., between consolidated companies is deferred for tax purposes. In this case,
we decided to reverse the deferred tax assets or deferred tax liabilities related to the temporary difference in question, rather
than the past treatment in which the amount of deferred tax assets or deferred tax liabilities related to the temporary differencein question was not adjusted in the consolidated financial statements. This change in accounting policy has no impact on ourquarterly consolidated financial statements.
(Significant Fluctuations in Shareholders’ Equity)
Following a resolution by the Company’s board of directors at a meeting held May 8, 2024, the Company acquired 1,103,300
shares of treasury stock in the cumulative first quarter of the current consolidated fiscal year, resulting in a ¥3,361 million increasein treasury stock. The Company also cancelled 3,000,000 shares of treasury stock on May 31, 2024, pursuant to a resolution by
the Company's board of directors at a meeting held on the same date, resulting in a ¥6,951 million decrease in retained earnings
and treasury stock.
As a result, retained earnings amounted to ¥299,230 million and treasury stock holdings amounted to ¥5,954 million as of theend of the consolidated first quarter.
(Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated Financial Statements)(Calculation of Tax Expenses)
Tax expenses are calculated by rationally estimating an effective tax rate after applying tax effect accounting to profit before
income taxes for the consolidated fiscal year, including the current first quarter, and multiplying profit before income taxes forthe first quarter by the estimated effective tax rate.
In the event that the calculated tax expenses using this estimated effective tax rate lead to significantly unreasonable results, thisshall be calculated by multiplying the statutory effective tax rate after adjusting significant non-temporary differences by the
profit before income taxes.
Deferred income taxes are included in income tax.

- 12 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(Additional Information)(Stock-Based Compensation Plan)
Effective as of March 2023, the Company has adopted a stock-based compensation plan (“Plan”) for directors (excluding outside
directors) and executive officers (collectively, “Eligible Individuals”). The purpose of the Plan is to establish a clear link between
compensation for Eligible Individuals and Company performance and share value, as well as for Eligible Individuals to share
the benefits and risks associated with fluctuations in NAGASE share price with shareholders. In this way, the NAGASE Groupintends to raise awareness about contributing to improved business performance and increased corporate value over the medium
to long term.
(1) Overview
The Plan is a stock-based compensation plan under which a trust ("Trust") established by monetary contribution from theCompany acquires Company shares. The Company grants points to each Eligible Individual, and the Trust delivers the numberof Company shares equivalent to the points earned by each Eligible Individual. In principle, said delivery is made at the time of
the retirement the Eligible Individual.
(2) Company shares remaining in the Trust
Company shares remaining in the Trust are recorded as treasury stock under net assets in the balance sheet based on the carrying
value in the Trust (excluding incidental expenses). The carrying value of said treasury stock as of the end of the consolidated
first quarter was ¥612 million and the treasury stock in question amounted to 288,500 shares.

- 13 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(Segment Information, etc.)
a. Segment Information

I Three-month period ended June 30, 2022 (consolidated)
1.

Information related to net sales and income (loss) by reportable segment
Reportable Segments
Advanced
Functional
Electronics &Life &
Materials &Mobility
EnergyMaterials
Healthcare
Processing

Total(Millions of yen)
Others(Note) 1

Total

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

Net sales
Sales tocustomers
Intersegment
sales/transfers

36,43948,56035,53831,136

72,386224,0620

224,062--224,062

197

169

922

852

197

2,340

1,837

4,177

-

(4,177)-

Total

36,637

48,73036,461

31,98972,584

226,402

1,837

228,240-(4,177)224,062

Segment income(loss)

1,000

1,016

1,781

660

2,750

7,210

92

7,302

(453)

106

6,955

(Note) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information
processing services and professional services.
2. Corporate segment income (loss) represents expenses not allocated 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 income as presented in“Consolidated”.

II Three-month period ended June 30, 2024 (consolidated)
1.

Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
AdvancedElectronics
Functional
Materials && Energy
Materials
Processing

MobilityLife &
Healthcare

Total

Others(Note) 1

Total

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

Net sales
Sales tocustomers
Intersegment
sales/transfers

40,58153,50340,092

32,11772,861

239,15744

239,201--

239,201

328

189

376

515

122

1,531

1,597

3,129

-

(3,129)-Total

40,90953,69340,46932,632

72,983

240,688

1,641

242,330-(3,129)239,201

Segment income

2,975

1,588

2,770

988

1,526

9,849

85

9,935

642

15407

10,734(Note) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information
processing services and professional services.
2. Corporate segment income represents gains and losses not allocated to Reportable Segments or Others.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of segment income Total, Corporate, and Adjustments is equivalent to operating income as presented in“Consolidated”.

- 14 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

2.

Matters Related to Changes in Reportable Segmen(Change in Business Segments)
On October 1, 2023, the Company integrated its original 11 business departments into 7 to streamline business operations byexpanding the scale and functions of each department. The integration of business departments resulted in the followingchanges to business segments.
The Color & Advanced Processing Department of the Advanced Materials & Processing segment was abolished and integrated
into the Performance Chemicals Department of the Functional Materials segment, and the Polymers Global AccountDepartment of the Advanced Materials & Processing segment.
Segment information for the first quarter of the previous fiscal year reflects this reclassification.
The following describes the major products and services handled by each reportable segment.
The Functional Materials segment is engaged in the sales of paints/inks, dyestuffs, pigments, additives, processed pigments,
dispersing elements, functional pigments, thermal paper materials, toner and inkjet materials, materials for adhesives, urethanematerials and auxiliary materials, plastic materials, plastic additives, industrial oil solutions, water processing raw materials,
surfactant raw materials, fluorochemicals, encapsulant materials, 5G materials, silicone materials, environmental solutions
and environment-related commercial products, sintered metal filters, conductive coatings, and more for the paints/inks,
dye/additive, resins, urethane foam, organic synthesis, surfactants, electronics chemicals, digital print processing materials,
communications equipment, water processing, metal processing, plastic and film processing, stationery, functional film andsheet, hygiene materials, and other industries.
The Advanced Materials & Processing Segment is engaged in the sales of thermoplastic resins, thermosetting resins, plastics
products, resin molding tools/dies, and more for the plastic compounds, masterbatch, raw resin material, resin molding,appliance and office automation device, electronics, packaging material, daily commodities, household goods, construction
material, and other industries.
The Electronics & Energy Segment is engaged in the sales of formulated epoxy resins, fluorine products, precision abrasives,semiconductor assembly materials and devices, adhesives and encapsulant materials, display panel components and devices,chemical management equipment for display manufacturing processes, low-temperature/vacuum equipment, liquid state
analysis equipment, LEDs, 3D printing products, solar panels, and other products for the semiconductor, electronic component,
AR/VR, environmental energy, 3D printing, heavy electrical and light electrical, HDD, automotive and aircraft, display, touch
panel, housing, lighting, renewable energy, large-scale commercial facility, and other industries.
The Mobility Segment is engaged in the sales of plastic products in general, materials for secondary batteries, interior andexterior materials, materials for functional components, products for electrification, sensor components, in-vehicle electronics
products, in-vehicle display-related components, self-driving-related products, and other products for the overall mobility
industry and related industries.
The Life & Healthcare segment is engaged in the sale 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, surfactants, and medical appliances for the pharmaceutical, food and beverage, cosmetics, agricultural,
toiletries, and health care, and other industries. The segment offers radiation measurement and sleep measurement as one ofits main services. In addition, this segment sells cosmetics, health foods, and beauty foods directly to consumers.

(Change in Measurement Method for Segment Income (Loss))
As of the first quarter of the current consolidated fiscal year, we changed the method of allocating corporate expenses to more
appropriately reflect the performance of reportable segments. Segment information in the table above for the first quarter of theprevious consolidated fiscal year is based on the allocation method after the change.

- 15 -