Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2022
<Under Japanese GAAP>

November 4, 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
Filing of quarterly report (scheduled): November 12, 2021
Start of distribution of dividends (scheduled): December 6, 2021
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, 2022
(April 1, 2021 to September 30, 2021)(1) Consolidated Operating Results
Net sales
For the second quarter ended

September 30, 2021
September 30, 2020

Millions of yen

373,762286,376(Notes) 1. Comprehensive income

Gross profit%

30.5

Millions of yen－68,734
53,782

Operating income%

27.8
5.7

Millions of yen

Profit attributable toowners of the parent

Ordinary income%

19,4998,934(% = year-on-year change)

118.2(15.9)

Millions of yen%

20,467 111.2
9,692 (8.4)

Millions of yen

14,622
10,187

Second quarter ended September 30, 2021: ¥17,849 million (11.6% decrease)
Second quarter ended September 30, 2020: ¥20,194 million (306.5%)

2. At the beginning of the first quarter of the fiscal year ending March 2022, the Company adopted the Accounting Standard
for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). Results forthe second quarter of the fiscal year ended March 2021 reflect a retroactive application of this accounting standard. As aresult, net sales affected by this retroactive application do not show the year-on-year rate of change in the second quarter ofthe fiscal year ended March 2021.
Earnings per share
For the second quarter ended
September 30, 2021
September 30, 2020

Earnings per share (diluted)
YenYen119.5782.15−−(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

678,698
640,587

September 30, 2021
March 31, 2021
(Reference) Equity capital

Shareholders’equity ratio

Net assets per share%

349,709338,431

Yen

2,798.62
2,670.09

50.1
51.5

As of September 30, 2021: ¥ 339,724 million
As of March 31, 2021:¥ 329,687 million

2. Dividends
1Q
For the year ended (or ending)
Yen
March 2021−
March 2022−
March 2022 (forecast)(Note) Revisions to the latest dividends forecast: No2QAnnual Dividends per Share
3Q
Fiscal year end
Yen

22.00
24.00

Yen

Yen

AnnualYen

−

24.00

46.00

−

24.00

48.00

%

43.5
37.2

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

130,000

Operating income%

13.4

Millions of yen

30,000

Profit attributable toowners of the parent

Ordinary income%

36.9

Millions of yen

31,000%35.6

Millions of yen

22,500Earnings pershare%

19.5

Yen

185.11(Note) Revisions to the latest consolidated earnings forecast: No* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in thescope of consolidation): No
New: ― (Company name:)
Excluded: ― (Company name:)(2) Application of special accounting methods to the preparation of quarterly financial statements: Yes(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: Yesiii. Changes in accounting estimates: Noiv. Restatement of prior period financial statements after error corrections: No(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, 2021
124,408,285 shares March 31, 2021
124,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2021
3,018,081 shares

March 31, 2021

Average number of shares during the period
September 30, 2021
122,298,419 shares

September 30, 2020

933,995 shares

124,011,496 shares* Quarterly financial statements are not subject to quarterly review.
* 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 (Summary) for the Second Quarter Ended September 30, 2021

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2021)
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
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Retirement benefit asset
Deferred tax assets
OtherLess allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2021)

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

45,689260,714
110,460
1,983
9,453
14,111(832)
441,581

70,89670,88630,216
7,488
26,89364,59830,2236,700
28,08965,01393,719
2,929
1,903
4,900
(112)
103,340
238,835
640,587

90,429
3,205
1,783
5,911
(112)
101,217
237,117678,698

NAGASE & CO., LTD. (8012)Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2021

Prior Consolidated Fiscal Year
(March 31, 2021)
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
Deferred tax liabilities
Retirement benefit liability
Other
Total long-term liabilities
Total liabilitiesNET 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(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2021)

119,941
33,05012,0258,000－
3,565
6,042
203
23,310206,139

127,14750,560
5,531
18,00010,000
4,748
5,552
172
21,440243,154

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

20,00036,06314,363
13,466
1,942
85,834
328,989

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

9,699
10,639277,587(5,046)
292,879

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

40,98852
5,674
128
46,844
9,985
349,709678,698

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2021

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Six-month periods ended September 30, 2021 and 2020

(Millions of yen)Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

(April 1, 2020 - September 30, 2020) (April 1, 2021 - September 30, 2021)

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
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary gains
Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Impairment losses
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and affiliates
Other
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

286,376
232,594
53,782
44,847
8,934

373,762305,027
68,734
49,234
19,499

67
591
133
－
570
280
1,643

76
725
139
12
524
248
1,727

481
225
178
885
9,692

565
－
194
760
20,467

27
5,597
－
5,624

11
1,457
271
1,740

7
34
38
10
44
1－
138
15,1794,655
10,523336
10,187

173
359
－
－
173
59
163
930
21,276
5,776
15,500877
14,622

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2021

(Quarterly Consolidated Statements of Comprehensive Income)Six-month periods ended September 30, 2021 and 2020

(Millions of yen)Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

(April 1, 2020 - September 30, 2020) (April 1, 2021 - September 30, 2021)

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

10,523

15,50010,914(14)(1,470)276(2,588)
(19)
5,040
(139)

(35)

56

9,670
20,194

2,349
17,84919,868325

16,5681,280

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the Second Quarter Ended September 30, 2021

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2021

15,17921,276

5,326

5,598

38
1,277
687
(429)
(658)
481
122－
1,243
77(435)
(802)
565
(259)

(5,584)(1,398)

11,697359(9,837)(515)
18,144959(514)(5,344)
13,245(16,541)(22,765)
6,507(2,406)(9,339)894(588)(4,591)(13,625)(5,148)42(438)(3,044)
5,746(52)(4,778)
304
(657)
(741)
1,613
－－

587

266

(14)

121－
(90)
(2,598)(251)(1,352)342(4,947)(3,889)(20,000)
4,383(1,003)(0)(2,728)(290)(104)(23,632)

16,727
10,0001,900(6,931)(3,543)(2,963)(543)(228)
14,417(461)

352(13,447)
50,47137,023(3,803)48,55344,749(April 1, 2020 - September 30, 2020) (April 1, 2021 - September 30, 2021)

Operating activities
Income before income taxes
Depreciation and amortization other than amortization of
goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Increase in retirement benefit liability
Increase in retirement benefit assetInterest and dividend income
Interest expenses
Exchange loss (gain), net
Gain on sales 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(Decrease) increase in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
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
Decrease (increase) on short-term loans receivable
included in other current assets
Decrease (increase) in time deposits, net
Payments of leasehold and guarantee deposits
OtherNet cash used in investing activities
Financing activities(Decrease) increase in short-term loans, net(Decrease) increase in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
OtherNet cash (used in) provided by financing activities
Effects of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the period