Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020
<Under Japanese GAAP>
November 1, 2019
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 Section)
Code number:8012
URL (https: //www.nagase.co.jp/english/)Representative:
Kenji Asakura, Representative Director and President
Contact:
Akira Takami, Executive Officer, General Manager, Accounting Division TEL: +81-3-3665-3103
Filing of quarterly report (scheduled): November 7, 2019
Start of distribution of dividends (scheduled): December 2, 2019
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, 2020
(April 1, 2019 to September 30, 2019)(Percentages represent changes compared with same period of the previous fiscal year.)(1) Consolidated Operating Results
Net sales
For the second quarter ended
September 30, 2019
September 30, 2018

Operating income

Profit attributable toowners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

391,900
404,459(3.1)
4.4

10,62813,431(20.9)
6.5

10,584
13,910(23.9)
0.8

7,423
10,321(28.1)
17.8(Notes) Comprehensive income

Second quarter ended September 30, 2019: ¥4,967 million (65.4% decrease)
Second quarter ended September 30, 2018: ¥14,341 million (15.0% decrease)
Earnings per share

For the second quarter ended
September 30, 2019
September 30, 2018

Yen
59.86
82.43

Earnings per share (diluted)Yen(2) Consolidated Financial Position
Total assets
September 30, 2019
March 31, 2019
(Reference) Equity capital

Net assets

Shareholders’equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

630,051
567,346

315,133
312,60949.2
54.2

2,498.80
2,481.01

As of September 30, 2019: ¥ 309,880 million
As of March 31, 2019:¥ 307,674 million

2. Dividends
1Q
For the year ended (or ending)
Yen
March 2019
March 2020March 2020 (estimate)(Note) Revisions to the latest projected dividends: No

2Q

Annual Dividends per Share
3Q
Fiscal year end

Annual

Yen

Yen

Yen

Yen

18.00
22.00



24.00

42.00



22.00

44.00

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2020
(April 1, 2019 to March 31, 2020)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year

820,000

Operating income% Millions of yen

1.5

21,500

Profit attributable toowners of the parent

Ordinary income% Millions of yen(14.8)

22,000% Millions of yen(17.4)

17,300Earnings per
share

%

Yen

(14.1)

139.50(Note) Revisions to the latest projected consolidated results: Yes* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in thescope of consolidation): Yes
New: 1 (Company name:Nagase Holdings America Corporation) ([FOXGHGʊ &RPSDQ\ name:)(Note)
Please refer to 2. Quarterly Consolidated Financial Statements and Notes (4) Notes Related to Quarterly
Consolidated Financial Statements, (Changes in Significant Subsidiaries During the Period) on P.11 of
this document.
(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: 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)
Please refer to 2. Quarterly Consolidated Financial Statements and Notes (4) Notes Related to Quarterly
Consolidated Financial Statements, (Change in Accounting Policy) on P.11 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)
September 30, 2019
127,408,285 shares March 31,2019
127,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2019
3,396,472 shares

March 31, 2019

Average number of shares during the period
September 30, 2019
124,011,874 shares

September 30, 2018

3,396,352 shares

125,212,124 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.
Please refer to 1. Qualitative Information (3) Qualitative Information Related to Consolidated Earnings Forecasts on P.4of this document.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

Attachments
1. Qualitative Information

2(1) Business Performance2(2) Financial Position

3(3) Qualitative Information Related to Consolidated Earnings Forecasts

45

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

7

Quarterly Consolidated Statements of Income
Six-month periods ended September 30, 2019 and 20187

Quarterly Consolidated Statements of Comprehensive Income
Six-month periods ended September 30, 2019 and 20188(3) Quarterly Consolidated Statements of Cash Flows

9(4) Notes Related to Quarterly Consolidated Financial Statements

11(Assumption for Going Concern)

11(Significant Fluctuations in Shareholders’ Equity)

11(Changes in Significant Subsidiaries During the Period)

11(Change in Accounting Policy)

11(Segment Information, etc.)

1113

3. Supplementary Information

13(1) Overseas Sales㸫  㸫

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

1. Qualitative Information(1) Business Performancea. General Summary of Results
Although employment continues to improve, the Japanese economy experienced stagnant manufacturing and capital
investment during the cumulative consolidated second quarter. Despite a push from strong corporate earnings in the UnitedStates, the slowdown in the Chinese economy and concerns about an extended period of U.S.-China trade frictions haveresulted in increasing uncertainty as to the overall future direction of the global economy.
In this environment, the Company recorded domestic sales of ¥202.54 billion (+0.1% year on year) for the cumulative
consolidated second quarter. Overseas sales amounted to ¥189.35 billion (-6.4%). In total, the Company recorded ¥391.9
billion (-3.1%) in net sales.
The Company recorded gross profit of ¥50.86 billion (-3.9%) in conjunction with lower sales. Lower sales together with higher
general and administrative expenses led to operating income of ¥10.62 billion (-20.9%). Ordinary income amounted to ¥10.58
billion (-23.9%), while profit attributable to owners of the parent amounted to ¥7.42 billion (-28.1%).

b. Segment Summary
Functional Materials
The Functional Materials segment recorded slightly lower sales overall due to a slight decline in Japan and lower performanceoverseas.
The Performance Chemicals business recorded slightly lower sales due to lower sales in coating raw materials and urethanematerials, as a result of lower automotive production in Japan and overseas.
The Speciality Chemicals business recorded slightly lower sales overall, from decreased sales of both electronics chemicals forthe semiconductor and other related electronics industries in Japan and overseas, and of industrial oil solutions.
As a result, sales for the segment amounted to ¥87.23 billion for the cumulative consolidated second quarter, representing a¥2.41 billion (-2.7%) decrease year on year. Operating income for the segment was ¥2.81 billion, representing a ¥100 million(+3.8%) increase compared to the cumulative consolidated second quarter of the prior fiscal year due to improved sales mix.

Advanced Materials & Processing
Although the Advanced Materials & Processing segment recorded level sales in Japan year on year, overseas sales were lower,
resulting in lower overall performance.
The Colors & Advanced Processing business recorded higher sales as a whole, due to growth in digital print processing
materials in both Japan and overseas, as well as slight growth in sales of dyes and additives within Japan.
The Polymer Global Account business mainly sells plastics to the office equipment, appliance, and video game device markets.
Sales in these businesses were lower overall, caused by decreases in Japan, Greater China, and ASEAN.
As a result, sales for the segment amounted to ¥137.71 billion, representing a ¥3.73 billion (-2.6%) decrease compared to thesame period in the prior fiscal year. Operating income fell ¥170 million (-3.8%) to ¥4.43 billion for the cumulative
consolidated second quarter.

Electronics
Despite increased sales of formulated epoxy resins and photolithography materials to the semiconductor industries, theElectronics segment recorded lower net sales overall due to lower sales of precision processing-related, equipment-related, anddisplay-related materials used in connection with intermediate processing in semiconductors.
As a result, sales for the segment amounted to ¥57.3 billion, which was a ¥4.51 billion (-7.3%) decrease year on year.
㸫  㸫

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

Operating income fell ¥890 million (-22.3%) to ¥3.13 billion for the cumulative consolidated second quarter.

Mobility & Energy
The Mobility Solution business recorded lower overall sales, mainly due to lower sales in the resins business overseas, despiteslightly higher sales in the resins business and car electronics-related products in Japan.
As a result, sales for the segment amounted to ¥65.65 billion, which was a ¥2.59 billion (-3.8%) decrease compared to the
cumulative consolidated second quarter of the prior fiscal year. Operating income fell ¥320 million (-22.0%) to ¥1.16 billion.
(Note) As of the consolidated first quarter, the name of the former Automotive & Energy Segment has been changed to the
Mobility & Energy Segment.

Life & Healthcare
The Life & Healthcare segment recorded higher sales due to slightly higher domestic sales and higher overseas sales.
Sales of TREHA™ and other products in the food ingredients field in the Life & Healthcare Products business were higher
overseas and slightly higher in Japan. Sales of AA2G™ to customers in the skin care and toiletries sectors were lower in Japan,
however, overseas sales were higher due to favorable sales, primarily in Europe. In the medical and pharmaceutical field, salesof pharmaceutical raw materials and intermediates as well as medical materials increased, while sales of pharmaceuticalbusiness products were slightly higher. As a result, the business recorded higher sales compared to the cumulative consolidated
second quarter of the prior fiscal year.
The Beauty Care Products business, which includes sales of cosmetics and health foods, recorded lower sales due to weak
performance across all product categories.
As a result, sales for the segment amounted to ¥43.72 billion, which was a ¥730 million (+1.7%) increase compared to the
cumulative consolidated second quarter of the prior fiscal year. Operating income decreased ¥150 million (-7.2%) to ¥1.99
billion, mainly due to weaker profitability among the Company’s manufacturing subsidiaries in Japan.

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 ¥385.9 billion. This represents an increase of¥20.07 billion compared to the end of the prior consolidated fiscal year, mainly due to an increase in assets related to the newconsolidation of subsidiaries, despite decreases in accounts receivable and inventories, etc. among existing group companies.
Non-current assets amounted to ¥244.14 billion, up ¥42.62 billion. This increase was mainly due to an increase in assets related
to the new consolidation of subsidiaries and an increase in goodwill, as well as an increase in investments in securities
stemming from a rise in the fair value of stock owned by the Company. As a result, total assets increased ¥62.7 billion
compared to the end of the prior consolidated fiscal year to ¥630.05 billion.
Liabilities amounted to ¥314.91 billion, which was an increase of ¥60.18 billion compared to the end of the prior consolidated
fiscal year. This increase was mainly due to increases in short-term loans and commercial paper, despite redemptions of bonds
and a decrease in accounts payable.
Net assets amounted to ¥315.13 billion, up ¥2.52 billion. This increase was mainly due to the recording of profit attributable toowners of the parent in the amount of ¥7.42 billion and an increase in net unrealized holding gain on securities, despite adecrease in translation adjustments.
As a result, the Company recorded a shareholders’ equity ratio of 49.2%, down 5.0 points compared to the end of the priorconsolidated fiscal year.
㸫  㸫

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020b. Summary of Consolidated Cash Flows
Cash and cash equivalents (Cash) increased ¥1.74 billion (+4.0%) compared to the end of the prior consolidated fiscal year,
amounting to ¥45.76 billion. Cash from operating activities amounted to ¥12.44 billion, while cash used in investing activities
amounted to ¥47.81 billion, and cash from financing activities amounted to ¥39.44 billion. In addition, effects of exchange ratechanges had a ¥2.32 billion negative impact on Cash balances.
(Cash Flows from Operating Activities)
Cash flows from operating activities for the cumulative consolidated second quarter amounted to ¥12.44 billion. While theCompany recorded ¥4.28 billion in income taxes paid, profit before income taxes amounted to ¥10.52 billion and cash reserved
associated with depreciation and amortization amounted to ¥4.52 billion.
(Cash Flows from Investing Activities)
Cash used in investing activities for the cumulative consolidated second quarter amounted to ¥47.81 billion. This result was
mainly due to cash outlays of ¥42.8 billion for the acquisition of subsidiary stock in connection with a change in scope of
consolidation and ¥4.19 billion in purchases of property, plant and equipment.
(Cash Flows from Financing Activities)
Cash flows from financing activities for the cumulative consolidated second quarter amounted to ¥39.44 billion. This result
was mainly due to net increases of ¥45.17 billion and ¥8.0 billion related to short-term loans and the issuance of commercial
paper, respectively. These increases exceeded outlays of ¥10.0 billion in redemption of bonds.

(3) Qualitative Information Related to Consolidated Earnings Forecasts
During the cumulative consolidated second quarter for the fiscal year ending March 2020, China’s economic deceleration andthe impact of the U.S.-China trade frictions have slowed growth in the global economy. Production and investment activity in
China and Asia have fallen below the Company’s projections at the beginning of the period. Performance has been weaker
across all group segments, including our businesses in plastics and display-related materials.
We expect the business environment surrounding the group to continue to be challenging throughout the consolidated third
quarter and beyond. As a result, we have made a downward revision to the consolidated fiscal year earnings forecasts
previously announced. Further, the Company acquired equity in Prinova Group, LLC, making Prinova Group, LLC and its
subsidiaries consolidated subsidiaries of the Company. We expect the impact of this transaction on the current fiscal year’s
consolidated earnings to be limited, as only five months of Prinova’s group results will be incorporated into the Company’s
full-year earnings and the Company will incur significant temporary costs associated with the acquisition in question.
We have changed our projected foreign exchange rate from ¥110 to ¥108 to the U.S. dollar and from ¥16.0 to ¥15.4 to the
RMB.
Given these considerations, we have made the following downward revisions to our full-year forecasts.
Revised Consolidated Fiscal-Year Forecasts (Fiscal Year Ending March 31, 2020)(Millions of yen)Previous forecast (A)Revised forecast (B)Net sales

850,000

820,000(30,000)(3.5%)

Operating income

26,00021,500(4,500)(17.3%)

Ordinary income

27,00022,000(5,000)(18.5%)

Profit attributable toowners of the parent

20,50017,300(3,200)(15.6%)㸫  㸫

Change (B-A)

ChangeNAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2019)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
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㸫  㸫(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2019)

44,068230,459
74,471
1,847
4,683
10,651(355)
365,827

45,846
233,052
85,902
1,581
7,570
12,373(421)
385,904

66,46770,422

23,866
10,6392,772
37,27958,2979,851
2,794
70,94490,263
243
109
2,290
4,959
(92)
97,771
201,518
567,346

93,364
454
1,869
2,342
4,898
(150)
102,779
244,146
630,051NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

Prior Consolidated Fiscal Year
(March 31, 2019)
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 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 (loss) 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㸫  㸫(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2019)117,256
34,964949
12,00010,000
3,594
5,355
287
17,457
201,866

114,062
96,445858
20,000
1,923
5,150
128
19,438258,007

10,00017,577
12,075
12,461757
52,870254,737

10,00017,593
13,422
13,5382,354
56,909314,917

9,699
10,647
247,617(5,070)262,892

9,699
10,647
252,132(5,071)
267,408

41,857
(7)
3,224
(292)
44,781
4,934
312,609567,346

43,71723(1,163)(105)
42,472
5,253
315,133
630,051NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Six-month periods ended September 30, 2019 and 2018
(Millions of yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

(April 1, 2018 - September 30, 2018) (April 1, 2019 - September 30, 2019)

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
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 sale of non-current assets
Gain on sale of investment securities
Gain on sales of shares of subsidiaries and affiliates
Subsidy income
Total extraordinary gains
Extraordinary losses
Loss on sale of non-current assets
Loss on disposal of non-current assets
Impairment losses
Loss on sale of investment securities
Total extraordinary losses
Income before income taxes and non-controlling interests
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㸫  㸫

404,459
351,547
52,911
39,48013,431

391,900
341,038
50,861
40,233
10,628

105
993
134
337
206
1,777

54
1,226
128
175
1,584

743
374
181
1,298
13,910

696
260
421
250
1,629
10,584

134
1
6
142

14
17
25
57

69
99
0
0
170
13,882
2,771
665
3,436
10,445124
10,321

21
91
113
10,527
2,526
387
2,914
7,613
190
7,423

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

(Quarterly Consolidated Statements of Comprehensive Income)Six-month periods ended September 30, 2019 and 2018
(Millions of yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

(April 1, 2018 - September 30, 2018) (April 1, 2019 - September 30, 2019)

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 income (loss) ofaffiliates accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Non-controlling interests㸫  㸫

10,445

7,613

2,246
53
1,436
118

1,864
30
(4,444)
186

41

(282)

3,895
14,341(2,645)
4,967

14,272
68

5,120
(152)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2019

(April 1, 2018 - September 30, 2018) (April 1, 2019 - September 30, 2019)

Operating activities
Profit before income taxes
Depreciation and amortization other than amortizationof goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Subsidy income(Decrease) increase in retirement benefit liability
Increase in retirement benefit asset
Interest 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(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
Income taxes paid
Net cash (used in) 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 otherassetsPurchases of investments in securities
Proceeds from sales of investments in securities
Purchases of investments
Purchase of share of subsidiaries resulting in change inscope of consolidation(Increase) decrease on short-term loans receivable
included in other current assets, net
Decrease (increase) in time deposits, net
Proceeds from subsidy income
Other
Net cash used in investing activities㸫  㸫

13,882

10,527

4,653

4,522

0
907
(956)
(1,099)
743
591

904
(25)
1,313
(1,760)(1,280)
696
(23)

(6)

(17)

(10,613)(8,455)614(2,125)(1,864)
1,356(728)(2,734)(3,971)

6,621
2,394
(7,255)(642)
15,976
1,474(721)(4,282)
12,445(6,614)488(4,192)
75

(235)

(189)

(1,640)
12
(97)

(507)
28
(54)

-

(42,805)

(674)

303

300
45
(8,414)

(32)
25
(467)
(47,817)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

Financing activities
Increase in short-term loans, net
Increase in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other
Net cash used in financing activities
Effects of exchange rate changes on cash and cash
equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents, at end of the period㸫  㸫

10,979
2,000
418
(636)
(0)
(2,879)(402)

45,176
8,000
456
(414)
(10,000)(0)(2,976)
(219)

(498)

-

(28)
8,950

(578)
39,443580(2,326)(2,856)42,85740,001

1,745
44,01745,762

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

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

(Significant Fluctuations in Shareholders’ Equity)
No matters to report.

(Changes in Significant Subsidiaries During the Period)
The Company established Nagase Holdings America Corporation in the U.S. on April 1, 2019, including Nagase Holdings
America Corporation within the scope of consolidation from the consolidated first quarter. Subsequently, the Company made acapital increase in Nagase Holdings America Corporation on August 2, 2019, making it a specified subsidiary.

(Change in Accounting Policy)
Beginning from the consolidated first quarter, the Company has applied IFRS 16 Leases for overseas consolidated subsidiaries
that have adopted International Financial Reporting Standards. The impact of this accounting standard on quarterly consolidated
financial statements is minor.

(Segment Information, etc.)
Segment Information
I Six-month period ended September 30, 2018 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Advanced
Mobility &FunctionalLife &
Materials & Electronics
EnergyMaterials
Healthcare
Processing(Note) 1

Total

Others(Note) 2

Total

Corporate Adjustments Consolidated(Note) 3(Note) 5(Note) 4

Net sales
Sales tocustomers
Intersegment
sales/transfers

89,651

141,450

61,82068,24642,985404,154304

404,459--

404,459

1,444

1,200

851

1,368

197

5,062

2,803

7,865

-

(7,865)-

Total

91,095

142,651

62,671

69,61543,182409,2163,108

412,325-(7,865)404,459

Segment income(loss)

2,712

4,616

4,031

1,499

2,145

15,005

183

15,188(2,022)

265

13,431(Note) 1. As of the consolidated first quarter, the name of the former Automotive & Energy Segment has been changed to the
Mobility & Energy Segment.
2. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes logistics
services, information processing services, and professional services.
3. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others.
4. Adjustments are eliminations of intersegment transactions.
5. The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in“Consolidated”.

㸫  㸫NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

II Six-month period ended September 30, 2019 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Advanced
Mobility &FunctionalLife &
Materials & Electronics
EnergyMaterials
Healthcare
Processing(Note) 1

Total

Others(Note) 2

Total

Corporate Adjustments Consolidated(Note) 3(Note) 5(Note) 4

Net sales
Sales tocustomers
Intersegment
sales/transfers

87,239137,718

57,30865,651

43,720391,638261

391,900--

391,900

906

1,102

947

1,459

253

4,668

2,879

7,548

-

7,548)-

Total

88,145

138,820

58,255

67,111

43,974396,3073,141

399,449-

7,548)391,900

Segment income(loss)

2,816

4,439

3,134

1,169

1,990

13,55097

13,648

3,298)278

10,628(Note) 1. As of the consolidated first quarter, the name of the former Automotive & Energy Segment has been changed to the
Mobility & Energy Segment.
2. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes logistics
services, information processing services, and professional services.
3. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others.
4. Adjustments are eliminations of intersegment transactions.
5. The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in“Consolidated”.
2. Information about assets for each reportable segment(Significant increases in assets due to acquisition of subsidiaries)
During the consolidated second quarter, the Company acquired equity in Prinova Group, LLC, adding a total of 18
companies including Prinova Group, LLC and its subsidiaries to the scope of consolidation. In connection with thistransaction, assets of the Life & Healthcare segment increased ¥72,519 million compared to the end of the priorconsolidated fiscal year.
3. Information about impairment loss of non-current assets or goodwill, etc. for each reportable segment(Significant changes in goodwill)
During the consolidated second quarter, the Company acquired equity in Prinova Group, LLC, adding a total of 18
companies including Prinova Group, LLC and its subsidiaries to the scope of consolidation. In connection with thistransaction, the Company recorded ¥35,473 million in goodwill within the Life & Healthcare segment.
The allocation of acquisition costs has not been completed as of the end of the consolidated second quarter.
Accordingly, the amount of goodwill stated here represents a provisional calculation.

㸫  㸫NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2020

3. Supplementary Information(1) Overseas Sales
I Six-month period ended September 30, 2018 (consolidated)
GreaterChina
I Overseas sales (Millions of yen)

ASEAN

107,444

Americas59,658Europe19,143

Other

7,207

Total

8,756

II Consolidated sales (Millions of yen)

202,210404,459

III Ratio of overseas sales toconsolidated sales (%)

26.5

14.8

4.7

1.8

2.2

50.0

II Six-month period ended September 30, 2019 (consolidated)
GreaterChina
I Overseas sales (Millions of yen)

ASEAN

99,964

Americas56,086

Europe17,548

Other

7,459

Total

8,297

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

189,356
391,900

25.5

14.3

4.5

1.9

2.1

(Note) 1. Overseas sales 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) Greater China......China, Hong Kong, Taiwan(2) ASEAN...............Thailand, Singapore(3) Americas.............U.S., Mexico(4) Europe.................Germany(5) Other....................Korea㸫  㸫

48.3