Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015
<Under Japanese GAAP>
November 4, 2014
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

NAGASE & CO., LTD.
Stock exchange listing: Tokyo, (First Sections)
Code number:
8012 (http://www.nagase.co.jp/english/)Representative:
Hiroshi Nagase, Representative Director and President
Contact:
Akira Takami, General Manager, Accounting Division
Tel: +81-3-3665-3103
Filing of quarterly report (scheduled): November 7, 2014
Start of distribution of dividends (scheduled): December 1, 2014
Supplementary documents of quarterly financial results: Yes
Quarterly investors’ meeting: Yes (for analysts and institutional investors)(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2015
(April 1, 2014 to September 30, 2014)(1) Consolidated Operating Results(Percentages represent changes compared with same period of the previous fiscal year.)Net sales
For the second quarter ended
September 30, 2014
September 30, 2013
(Note)

Operating profit

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

372,782358,210

4.1
6.8

7,959
8,685

(8.4)
6.4

9,103
9,853

(7.6)
13.7

6,664
7,212

(7.6)
(10.9)

Comprehensive income

Second quarter ended September 30, 2014:
Second quarter ended September 30, 2013:
Earnings per share

For the second quarter ended
September 30, 2014
September 30, 2013¥17,592 million (15.1%)¥15,279 million (395.3%)

Earnings per share (diluted)
Yen

Yen

52.46
56.82




(2) Consolidated Financial Position
Total assets

Net assets

Net worth ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

529,574
498,141

266,545
251,892

49.3
49.5

2,056.14
1,942.20

September 30, 2014
March 31, 2014
(Reference) Equity capital

As of September 30, 2014:
As of March 31, 2014:¥261,196 million¥246,723 million

2. Dividends
1Q
For the year ended (or ending)March 31, 2014
March 31, 2015
March 31, 2015 (estimate)

Dividends per share
3Q
Fiscal year end

2Q

Annual

Yen

Yen

Yen

Yen

Yen




14.00
15.00



14.00

28.00



15.00

30.00

(Note) Revisions to the latest projected dividends: No

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2015
(April 1, 2014 to March 31, 2015)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Operating profit% Millions of yen

Ordinary income% Millions of yen

Full fiscal year
760,000
5.1
16,8006.4(Note) Revisions to the latest projected consolidated results: Yes

18,700Earnings per
share

Net income% Millions of yen

%

Yen

4.4

9.7

100.76

12,800* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in thescope of consolidation): No
New: ― (Company name:)
Excluded: ― (Company name:)(2) Application of Special Accounting Methods to the Preparation of Quarterly Financial Statements: No(3) Changes of accounting principles, changes in accounting estimates, and restatement of prior period financial
statements after error correctionsi.
Changes in accordance with revisions to accounting and other standards: No
ii. Changes in items other than (i) above: Yesiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No(Note) For details, see page 6, “2. Summary Information (Notes) (3) Changes of Accounting Policies or
Presentation Methods in the Consolidated Financial Statements.”(4) Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)
September 30, 2014
138,408,285 shares March 31, 2014
138,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2014
11,375,942 shares

March 31, 2014

11,375,631 shares

Average number of shares during the period
September 30, 2014
127,032,535 shares

September 30, 2013

126,918,769 shares* Quarterly Review Implementation DisclosureThis quarterly report is exempt from the quarterly review procedure based upon the Financial Instruments andExchange Act. Furthermore, quarterly consolidated financial statements were undergoing the review procedure process
at the time of release.
* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions
deemed rational. A variety of factors could cause actual results to differ materially from forecasts.
Please refer to “1. Qualitative Information (3) Qualitative Information related to Earnings Forecasts” on page 5 of thisdocument.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

1. Qualitative Information(1) Business Performancea. General Summary of Results
As of the second quarter of the fiscal year, the future of the Japanese economy remained uncertain. Despite strong
stock prices and an overall tone of gradual recovery, the country has been slow to recover from front-loaded
consumer demand in anticipation of consumption tax increases, and concerns remain regarding economic
stagnation in Europe and geopolitical risk throughout the world.
In this environment, the Company recorded domestic sales for the cumulative consolidated second quarter of¥185.41 billion (2.3% year-on-year increase) and overseas sales of ¥187.36 billion (5.9% increase). In total, theCompany recorded net sales of ¥372.78 billion, representing a 4.1% year-on-year increase.
Despite net sales gains, lower profits in our electronics-related business placed downward pressure on gross profit,
which came in at ¥44.45 billion (1.0% year-on-year decline). Operating profit amounted to ¥7.95 billion, which
was an 8.4% year-on-year decline. Although the Company recorded lower retirement benefit costs related toamortization of actuarial differences in retirement benefit obligations, doubts concerning the recovery of accounts
receivable from a customer of the Company’s Taiwanese subsidiary led to the Company recording a specificallowance for doubtful accounts. The Company recorded ordinary income of ¥9.1 billion, a 7.6% year-on-year
decrease, mainly due to lower year-on-year foreign exchange gains offsetting higher comparative equity inearnings of affiliates. These factors contributed to net income of ¥6.66 billion for the cumulative consolidated
second quarter, which was a 7.6% year-on-year decrease.
b. Segment Summary
The following discusses Company earnings by segment.
Beginning with the consolidated first quarter of this fiscal year, the Company has reorganized certain of its
reportable segments. For presentation purposes, the Company has calculated consolidated figures and ratios for thesecond quarter of the prior period according to these reorganized classifications.
Functional Materials
The Company’s Functional Materials segment recorded net sales at figures level with the same period in the priorfiscal year. While overseas net sales showed slight gains, results in Japan were flat.
The performance chemicals business experienced slight gains overall. While net sales of paints for construction
and building materials were slow, sales of urethane materials for the automotive and home electronics markets
contributed to business growth.
Our specialty chemicals business reported flat sales overall. Sales to fluorine and metal working oil manufacturers
in Japan were strong, as were exports of sealants. On the other hand, fluorine materials and epoxy compound
products revenue growth was somewhat slow.
As a result, net sales for the Functional Materials segment for the cumulative consolidated second quarteramounted to ¥83.81 billion, which was a year-on-year gain of ¥390 million or 0.5%. Operating profit, influenced
in part by lower profits at domestic manufacturing businesses, fell to ¥2.04 billion, representing a ¥220 million(10.0%) decrease year on year.
Advanced Materials & Processing
The Advanced Materials & Processing segment reported higher overall net sales for the period, driven by higher
performance in Northeastern Asia and slightly improved results in Japan, Southeastern Asia, and North America.
-2-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

These gains offset lower revenues in Europe.
The colors and imaging business recorded overall year-on-year declines. Although the dyes and additives businessshowed strong sales, toner materials and other areas of the information printing materials business experienced
slow sales.
Our office equipment and appliance business reported higher net sales as a whole. This result was mainly due tohigher revenues in Northeastern Asia, as well as slightly improved performance in Japan and Southeastern Asia.
Our business focusing on functional films and sheets and plastic molding products experienced strong sales ofplastic materials, materials for LCD TV reflectors, and conductive polymer materials, driving performance higher
year on year overall.
As a result, the Company recorded net sales of ¥124.01 billion for the Advanced Materials & Processing segment
for the cumulative consolidated second quarter, representing a ¥5.54 billion (4.7%) increase year on year.
Operating profit increased ¥340 million (18.6%) to ¥2.22 billion, due mainly to improved profits at certain of theCompany’s manufacturing subsidiaries.
Electronics
The Electronics segment reported higher overall revenues, driven mainly by revenue growth in Japan,
Southeastern Asia, and Northeastern Asia, which offset performance decreases in North America and Europe.
The Company’s electronic chemicals business reported slightly lower overall revenues, due mainly to weakerperformance in sales of formulated epoxy resin for the heavy and light electrical machinery markets and sales ofchemicals used in semiconductor and LCD panel manufacturing.
Our electronic materials business showed overall year-on-year gains, with higher reported sales of LED-related
products, thin-glass processing, and touch-panel materials.
As a result, the Electronics segment recorded net sales for the cumulative consolidated second quarter in theamount of ¥75.66 billion, representing a ¥3.71 billion (5.2%) increase compared to the same period in the priorfiscal year. Operating profit amounted to ¥2.33 billion, which was a ¥1.81 billion (43.7%) decrease year on year,
mainly due to an allowance for doubtful accounts related to a customer of the Company’s subsidiary in Taiwan.
Automotive & Energy
The automobile-related business recorded overall growth. This result was mainly due to strong sales for certain
vehicle models in Japan, combined with favorable trends in sales of resin raw material to Japanese auto
manufacturers in China and North America, which have continued to perform well. On the other hand, production
declines among Thai auto manufacturers have yet to recover.
The energy business experienced overall growth, with sales gains in industrial solar power systems and products
for lithium ion batteries.
As a result, segment net sales for the cumulative consolidated second quarter amounted to ¥51.93 billion,
representing a ¥4.47 billion (9.4%) increase year on year. Operating profit increased by ¥400 million (63.8%),
reaching ¥1.04 billion, owing mainly to improved profits among domestic manufacturing businesses, as well as
higher profits in China.
Life & Healthcare
The Company’s Life & Healthcare segment reported higher net sales as a whole. In the food materials industry, thesegment recorded strong sales of our proprietary trehalose products in Japan and overseas, while sales of enzyme-3-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

products were level with the same period on the prior fiscal year. In the skin care and toiletries business, inclement
summer weather negatively affected sales of our proprietary AA2G product; however, sales of raw materials to thetoiletries industry were strong. In the pharmaceuticals and medical business, sales of pharmaceutical raw materials
and intermediates to generic pharmaceuticals makers were strong, while sales for brand-name drugs and medical
materials use were on par with the prior year.
Our beauty care products business includes sales of cosmetics and health foods. Here, overall sales were lower due
to front-loaded demand in anticipation of the consumption tax rate increase, as well as the fact that the Company
did not introduce very many new products to the market.
As a result, segment net sales amounted to ¥36.93 billion for the cumulative consolidated second quarter, whichmarked a ¥430 million (1.2%) increase year on year. Operating profit fell to ¥1.32 billion, ¥120 million (8.5%)
lower than the same period in the prior fiscal year.
Other
No special matters to disclose.

(2) Financial Positiona. Assets, Liabilities and Net Assets
As of the end of the consolidated second quarter, current assets amounted to ¥327.97 billion. This represents anincrease of ¥21.61 billion compared to the end of the prior consolidated fiscal year, mainly due to increases inaccounts receivable and inventories. Non-current assets amounted to ¥201.59 billion, an increase of ¥9.81 billion
compared to the end of the prior consolidated fiscal year. This increase in non-current assets was mainly due tohigher valuations of the Company’s investments in securities, driven by higher market prices. As a result, total
assets increased by ¥31.43 billion, reaching ¥529.57 billion as of the end of the consolidated second quarter.
Liabilities amounted to ¥263.02 billion, which was an increase of ¥16.77 billion compared to the end of the priorconsolidated fiscal year. This increase was mainly due to increased accounts payable and deferred tax liabilities
due to unrealized holding gains on securities.
Net assets amounted to ¥266.54 billion at the end of the consolidated second quarter, up ¥14.65 billion comparedto the end of the prior consolidated fiscal year. The Company recorded quarterly net income of ¥6.66 billion, as
well as year-on-year increases in net unrealized holding gain on securities and translation adjustments.
As a result of the preceding, the Company’s shareholders’ equity ratio fell 0.2 points compared to the end of theprior consolidated fiscal year, down to 49.3%.
b. Cash Flows
Cash and cash equivalents (“Cash”) decreased by ¥1.23 billion (3.6%) compared to the end of the priorconsolidated fiscal year, amounting to ¥32.59 billion. Cash from operating activities amounted to ¥940 million,
while cash used in investing activities came to ¥2.76 billion. Cash used in financing activities amounted to ¥320
million, and the Company added ¥880 million in cash from exchange rate fluctuations, with an additional ¥30
million in cash from newly consolidated entities.
(Cash Flows from Operating Activities)
Cash flows from operating activities for the cumulative consolidated second quarter amounted to ¥940 million.
This result was mainly due to income before income taxes and minority interests of ¥9.32 billion and depreciation
and amortization of ¥4.51 billion, offset by ¥8.17 billion in higher working capital related to accounts receivable
increases and ¥4.35 billion in income tax payments.

-4-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

(Cash Flows from Investing Activities)
Cash used in investing activities during the cumulative consolidated second quarter amounted to ¥2.76 billion.
Although the Company received cash of ¥530 million from the sale of property, plant, and equipment and saw adecrease in time deposits of ¥630 million, cash outlays for purchases of property, plant, and equipment andintangible fixed assets amounted to ¥3.82 billion.
(Cash Flows from Financing Activities)
Cash used in financing activities for the cumulative consolidated second quarter amounted to ¥320 million. Whilethe company recorded an increase in short-term loans of ¥2.12 billion, payments on long-term loans accounted for¥370 million, with another ¥1.77 billion in dividend payments.

(3) Qualitative Information related to Earnings Forecasts
While the weaker yen has resulted in improved export profits and other positive factors, demand in Japan
continues to struggle in the wake of unseasonably bad summer weather and the effects of front-loaded demand inadvance of the consumption tax increase earlier this year. Regionally, the economy of the United States has beenstrong. However, concerns remain regarding the economic stagnation in Europe and the direction of geopoliticalrisk throughout the world.
Given these circumstances, we expect to see continued healthy demand in North America for our Automotive &Energy segment, despite the uncertainties caused by downwardly revised auto production figures in Japan andAsia.
For our Electronics segment, we do not project that we will reach our plan numbers with respect to profits, despite
the planned start of full production for our thin-glass processing business. Factors dragging on profit expectations
include low demand for LCD film-related materials, falling profitability for touch panel materials, and anallowance for doubtful accounts recorded during the prior quarter related to a customer of our Taiwanesesubsidiary.
Due to higher consumption taxes and unseasonably bad summer weather, we do not project that the Company will
be able to reach plan numbers for our mainstay trehalose and AA2G products in our Life & Healthcare segment.
We also project that we will underperform plan for paints for construction and building materials in our Functional
Materials segment for the same reasons.
Given these conditions, we have revised our full-year earnings forecasts as shown below:
Full-Year Earnings Forecast Revisions (April 1, 2014 to March 31, 2015)(Millions of yen)
Prior Forecast (A)Revised Forecast (B)Net sales

783,000

760,000(23,000)(2.9％)

Operating profit

19,00016,800(2,200)(11.6％)

Ordinary income

21,50018,700(2,800)(13.0％)Net income

14,20012,800(1,400)(9.9％)-5-

Change (B-A)

Change (%)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

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

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

(3) Changes of Accounting Policies or Presentation Methods in the Consolidated Financial Statements(Changes in Accounting Policies)
Companies have the option to adopt “Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
September 13, 2013) and “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22,
September 13, 2013) and “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13,2013) for consolidated fiscal years beginning April 1, 2014. Accordingly, the Company has adopted theseaccounting standards (with the exception of the provisions of paragraph 39 of the Accounting Standard forConsolidated Financial Statements). Under these accounting changes, the Company now records equity changes insubsidiaries subject to ongoing control to capital surplus. In addition, the Company now records acquisitionrelated costs as costs in the consolidated fiscal year in which they occurred. With respect to business combinations
occurring after the beginning of the consolidated first quarter, the Company will now revise acquisition costallocation base on provisional accounting estimates, reflecting these costs in the quarterly consolidated financial
statements of the date on which the business combination occurred.
In accordance with the transitional treatment based on the provisions of section 58-2(3) of the AccountingStandard for Business Combinations, section 44-5(3) of the Accounting Standard for Consolidated Financial
Statements and section 57-4(3) of the Accounting Standard for Business Divestitures, the cumulative effects of theretrospective application of these accounting changes have been adjusted to capital surplus and retained earnings
as of the beginning of the consolidated first quarter.
As a result, goodwill, retained earnings, and translation adjustments decreased by ¥857 million, ¥2,791 million,and ¥64 million as of the beginning of the consolidated first quarter. At the same time, capital surplus increased by¥1,998 million. The effect of these accounting changes on operating profit, ordinary income, and income before
income taxes and minority interests during the consolidated first quarter is minimal.

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2014)ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-7-

Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2014)

34,980202,996
53,075
1,344
3,039
4,537
7,324
(936)
306,362

33,151217,992
59,811
1,918
3,565
5,114
8,437
(2,013)327,979

63,91464,08329,78018,517
4,731
53,03028,24017,7304,510
50,481

66,275
1,168
2,702
4,906
(218)
74,832
191,778
498,141

78,230
1,134
3,050
4,833
(218)
87,030201,595
529,574NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2014)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Current portion of bonds
Accrued income taxes
Deferred tax liabilities
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
Deferred tax liabilities
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income (loss)
Net unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-8-

Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2014)

105,014
28,818
6,596
3,720
24
4,045
232
15,195
163,646

116,020
32,140
6,429
10,000
2,725
22
4,021
125
15,090186,575

30,00027,14012,506
11,875
1,080
82,603
246,249

20,00027,195
16,293
11,952
1,011
76,452
263,028

9,699
10,242
206,351(6,916)219,377

9,699
12,262
208,535(6,917)
223,580

24,725
(0)
2,239
380
27,346
5,168
251,892
498,141

32,106
11
5,259
238
37,615
5,349
266,545529,574NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statement of Income)(Cumulative Second Quarter)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Equity in earnings of affiliates
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of non-current assets
Gain on sale of investment securities
Other receivables
Other
Total extraordinary gains
Extraordinary losses
Loss on sale of non-current assets
Loss on disposal of non-current assets
Impairment loss
Loss on sale of investments securities
Loss on valuation of investments securities
Loss on sales of investments in capital
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests
Net income

Cumulative Second Quarter, Prior
Consolidated
Fiscal Year
(April 1, 2013 September 30, 2013)
358,210313,295
44,91536,229
8,685

Cumulative Second Quarter,
Current Consolidated
Fiscal Year
(April 1, 2014 September 30, 2014)
372,782
328,324
44,45736,498
7,959

109
603
147
255
491
306
1,912

100
660
128
372
312
260
1,834

531
213
745
9,853

535
154
689
9,103

32
687
118
11
850

364
0
364

16
86
40
0
19
163
10,5404,483(1,525)
2,957
7,582
370
7,212

19
36
67
0
20
144
9,323
3,348
(966)
2,381
6,942
278
6,664

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

(Quarterly Consolidated Statements of Comprehensive Income)(Cumulative Second Quarter)(Millions of yen)

Income before minority interests
Other comprehensive income
Net unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to shareholders of
the Company
Comprehensive income attributable to minority interests

Cumulative Second Quarter, Prior
Consolidated
Fiscal Year
(April 1, 2013 September 30, 2013)
7,582

Cumulative Second Quarter,
Current Consolidated
Fiscal Year
(April 1, 2014 September 30, 2014)
6,942

5,876
9
1,271
494

7,376
11
3,126
(141)

44

277

7,696
15,27910,65017,592

14,642

16,977636

615- 10 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015(3)

Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Cumulative Second Quarter, Prior
Consolidated
Fiscal Year
(April 1, 2013 September 30, 2013)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in adjustments for retirement
benefits
Interest income and dividend income
Interest expenses
Foreign exchange loss (gain)(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Cash from sale of property, plant and equipment
Payment for acquisition of intangible fixed assets
Purchases of investments securities
Cash from sale of investment securities
Cash used for purchase of investments
Change in short-term loans (increase)
Net decrease (increase) in time deposits
Other
Cash flows from investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans, net
Proceeds from long-term loans
Repayment of long-term loans
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Cash flows from financing activities
Effects of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents accompanying
consolidation
Cash and cash equivalents at end of the year

- 11 -

Cumulative Second Quarter,
Current Consolidated
Fiscal Year
(April 1, 2014 September 30, 2014)

10,540
4,142
815

9,323
4,515
807

703

(156)

(713)
531
151
(9,634)
1,834(1,835)
968
7,504
793
(544)
(3,396)
4,356

(761)
535
71
(10,186)(5,894)
7,905(1,216)
4,943
887
(531)
(4,356)942(3,691)
110
(725)
(57)
1,327
(1,143)
(368)
376
(345)
(4,517)(3,259)
537
(562)
(215)
10
－
(3)
635
89
(2,767)2,491
511(4,568)(1,647)(545)
320(3,436)

2,127
142
(373)
(1,778)
(334)
(106)
(323)

(289)

885

(3,886)45,816(1,263)33,825113

32

42,04332,594

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015(4) Notes related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.
(Segment Information, etc.)I

Six months ended September 30, 2013 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Functional
Materials

Advanced
Automotive
Materials & Electronics& Energy
Processing

Life &
Healthcare

Total

Other
(Note) 1

Total

To Quarterly
Consolidated
Corporate Adjustments(Note) 2 (Note) 3 Statements ofIncome(Note) 4

Net sales
Sales to customers

83,419118,461

71,94447,46336,504

357,793417

358,210－－358,210

Intersegment sales
and transfers

1,463

1,036

354

887

243

3,984

2,670

6,655

－

(6,655)－

Total

84,882

119,498

72,29948,35036,747361,778

3,087

364,866－(6,655)358,210Segment income
2,267
1,877
4,146
637
1,443
10,372
149
10,522 (2,098)
261
8,685
(loss)(Notes)1. Other is a business segment consisting of businesses not included in reportable segments, and includes distribution services, information
processing services, and professional services.
2. Corporate segment income represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment translations.
4. The sum of segment income totals, Corporate and Adjustments is equivalent to operating profit as presented in the consolidated statements ofincome.

II Six months ended September 30, 2014 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Functional
Materials

Advanced
Automotive
Materials & Electronics& Energy
Processing

Life &
Healthcare

Total

Other
(Note) 1

Total

To Quarterly
Consolidated
Adjustments
Corporate(Note) 2 (Note) 3 Statements ofIncome(Note) 4

Net sales
Sales to customers

83,816124,01075,66451,93836,935372,365416

372,782－－372,782

Intersegment sales
and transfers

1,427

1,102

379

1,377

147

4,435

2,516

6,952

－

(6,952)－

Total

85,244125,11376,04453,31637,082376,801

2,933

379,734－(6,952)372,782

Segment income
2,040
2,226
2,336
1,044
1,321
8,969
141
9,110 (1,429)
277
7,959
(loss)(Notes)1. Other is a business segment consisting of businesses not included in reportable segments, and includes distribution services, information
processing services, and professional services.
2. Corporate segment income represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment translations.
4. The sum of segment income totals, Corporate and Adjustments is equivalent to operating profit as presented in the consolidated statements ofincome.

- 12 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

2. Changes in Reportable Segments(Changes in Business Classifications)
Beginning with the consolidated first quarter, the low-power semiconductor design development business, which
had been categorized under the Electronics segment, is now categorized under the Automotive & Energy segment.
We believe this will promote technological development with businesses more closely related toenvironment/energy-related technologies.
Segment information for the consolidated second quarter of the prior period reflects these segment changes.
The following describes the major products and services handled by each reportable segment.
The Functional Materials segment is engaged in the sales of materials for paints/inks, urethane materials, plastic
materials, plastic additives, industrial oil solutions, surfactants, fluorochemicals, encapsulant materials, andsilicone materials and more for the paints/inks, resins, urethane foam, organic synthesis, surfactants,
semiconductor industries.
The Advanced Materials & Processing segment is engaged in the sales of dyestuffs, dyes, functional dyes,
information printing products, thermoplastic resins, thermosetting resins, synthetic rubber, inorganic materials,
plastics products, resins molding tools/dies, external inspection equipment for the dye/additive, information
printing, fiber processing, raw resin material, resin molding, functional film and sheet and other industries.
The Electronics segment is engaged in the sales of pre-processing materials and devices for LCD/semiconductors,
materials for LCD panels, materials and devices for semiconductor assembly, low-temperature/vacuum equipment,
high-function epoxy resins, precision electronics abrasives, and more for the display, touch panel, LCD,
semiconductor, hard disk drive, electronic components, and heavy electrical industries.
The Automotive & Energy segment is engaged in sales of plastic products, thermoplastic resins, thermosetting
resins, resins molding tools/dies, battery materials, solar cell/secondary battery-related materials and more for the
automotive, automotive component, and energy industries.
The Life & Healthcare segment is engaged in the sales of pharmaceutical/agricultural chemicals and materials,
research products, in vitro diagnostics, enzymes, food additives, additives for cosmetics, feeds/fertilizers, andsurfactants for the pharmaceutical, food, and cosmetics 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.
(Significant Fluctuations in Shareholders’ Equity)
No matters to report.
(Significant Subsequent Events)
No matters to report.

- 13 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2015

4. Supplementary Information(1) Overseas Sales
Six months ended September 30, 2013 (consolidated)

I

Overseas sales(Millions of yen)

Northeast Asia

Southeast Asia

North America

Europe & Others

99,83454,416

12,862

9,859

II Consolidated sales(Millions of yen)
III Ratio of overseas sales toconsolidated sales (%)

Total

176,973358,210

27.9

15.2

3.6

2.7

Northeast Asia

Southeast Asia

North America

Europe & Others

104,154

59,921

15,243

8,043

49.4

Six months ended September 30, 2014 (consolidated)

I

Overseas sales(Millions of yen)

II Consolidated sales(Millions of yen)
III Ratio of overseas sales toconsolidated sales (%)

Total

187,363372,782

27.9

16.1

4.1

2.2

(Notes)1. Sales in overseas markets consist of net sales of the Company and consolidated subsidiaries in other countries or regions.
2. Countries/regions are determined by geographical proximity.
3. Major countries in each region(1) Northeast Asia......Taiwan, China(2) Southeast Asia......Singapore, Thailand(3) North America......U.S.
(4) Europe & Others......Germany- 14 -

50.3