Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021
<Under Japanese GAAP>
February 5, 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, Finance & Accounting Division+81-3-3665-3103
TEL:
Filing of quarterly report (scheduled): February 10, 2021
Start of distribution of dividends (scheduled): Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: No(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results
Net sales
For the third quarter ended
December 31, 2020
December 31, 2019

Operating income

Millions of yen%

604,541
601,7210.5(Notes) Comprehensive income

Millions of yen(2.4)(% = year-on-year change)

Profit attributable toowners of the parent

Ordinary income%

Millions of yen%

16,065
6.7
15,053 (28.1)

17,15915,7099.2

Millions of yen%

16,556 37.4
12,049 (25.2)(29.3)

Third quarter ended December 31, 2020: ¥30,089 million (102.4%)
Third quarter ended December 31, 2019: ¥14,866 million (116.4%)
Earnings per share

For the third quarter ended
December 31, 2020
December 31, 2019

Yen

133.51
97.16

Earnings per share (diluted)Yen(2) Consolidated Financial Position
Total assets

Shareholders’equity ratio

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

635,739
611,477

337,585
313,24351.8
49.9

2,655.88
2,462.04

December 31, 2020
March 31, 2020
(Reference) Equity capital

As of December 31, 2020:
As of March 31, 2020:¥329,359 million¥305,322 million

2. Dividends
1Q
For the year ended (or ending)YenMarch 2020March 2021
March 2021 (forecast)(Note) Revisions to the latest dividends forecast: Yes

2Q

Annual Dividends per Share
3Q
Fiscal year end

Annual

Yen

Yen

Yen

Yen

22.00
22.00




22.00

44.00

24.00

46.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(% = year-on-year change)

Net sales
Millions of yen

Full fiscal year

811,000

Operating income% Millions of yen

1.4

20,000

Profit attributable toowners of the parent

Ordinary income% Millions of yen

4.3

21,000% Millions of yen

10.0

17,000Earnings per
share

%

Yen

12.3

137.18(Note) Revisions to the latest consolidated earnings forecast: Yes
Our consolidated earnings forecast for the fiscal year ending March 2021 is based on the assumption that the COVID-19
pandemic will have a considerable impact on NAGASE Group earnings during the consolidated fourth quarter.

* 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 in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error correctionsi.
Changes in accordance with revisions to accounting and other standards: No
ii. Changes in items other than (i) above: Noiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No(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)
December 31, 2020
127,408,285 shares March 31, 2020
127,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
December 31, 2020
3,396,914 shares

March 31, 2020

Average number of shares during the period
December 31, 2020
124,011,458 shares

December 31, 2019

3,396,695 shares

124,011,848 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 Third Quarter of the Fiscal Year Ending March 31, 2021

Attachments
2

1. Qualitative Information(1) Business Performance2(2) Financial Position

3(3) Qualitative Information Related to Consolidated Earnings Forecasts

4
6

2. Quarterly Consolidated Financial Statements and Notes(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
Nine-month periods ended December 31, 2020 and 20198

Quarterly Consolidated Statements of Comprehensive Income
Nine-month periods ended December 31, 2020 and 20199(3) Notes Related to Quarterly Consolidated Financial Statements

10(Assumption for Going Concern)

10(Significant Fluctuations in Shareholders’ Equity)

10(Additional Information)

10(Segment Information, etc.)

11(Significant Subsequent Events)

13
14

3. Supplementary Information(1) Overseas Sales

14

－

1

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

1. Qualitative Information(1) Business Performancea. General Summary of Results
The global economy for the current consolidated third quarter saw different situations for each country. While the economic
impact of the COVID-19 pandemic remains serious, China maintained an economic recovery after resuming economic activity
quickly in the wake of the pandemic. Economic activities resumed gradually in the Japanese economy since the second quarter,
while consumer activities have also been recovering at a gradual pace. However, conditions continue to be unpredictable, assome economic activities have been curtailed due to the impact of the reemergence of COVID-19 infections. Among theregions where the NAGASE Group conducts business, Greater China has recovered to pre-pandemic levels. Japan and ASEAN
have been tracing a gradual recovery, while economic activity remains sluggish in the Americas and Europe, and the futurecontinues to be uncertain.
In this environment, the Company recorded domestic sales of ¥264.81 billion (-13.2% year on year) for the cumulative
consolidated third quarter. Overseas sales amounted to ¥339.72 billion (+14.5%), reflecting the entire nine-month sales of the
Prinova Group, which the Company acquired in the second quarter of the prior consolidated fiscal year. In total, the Company
recorded net sales of ¥604.54 billion (+0.5%).
The company recorded gross profit of ¥83.71 billion (+7.6%) due to the contributions of the highly profitable Prinova Group.
Despite rising costs related to our pursuit of digital transformation (DX) and other activities toward sustainable growth,
operating income amounted to ¥16.06 billion (+6.7%), mainly due to cost savings associated with voluntary constraints on
activities caused by the COVID-19 pandemic. Ordinary income amounted to ¥17.15 billion (+9.2%). Profit attributable toowners of the parent amounted to ¥16.55 billion (+37.4%), mainly due to gain on sales related to the transfer of subsidiarystock and sales of cross-shareholdings.

b. Segment Summary
Functional Materials
The Functional Materials segment recorded lower sales in both domestic and overseas markets. This result was mainly due tolower automotive production in all regions (except Greater China) affected by the spread of the COVID-19 pandemic. This wasparticularly true for the first half of the year, despite a more recent trend in recovery.
The Performance Chemicals business recorded lower sales due to lower sales in coating raw materials and urethane materials
as a result of lower automotive production.
The Speciality Chemicals business recorded lower sales overall, despite firm sales of electronics chemicals mainly for thesemiconductor and other electronics industries, mainly due to the performance of industrial oil solutions and plastic materials,
which were sharply impacted by the weak automotive industry.
As a result, sales for the segment amounted to ¥112.48 billion, representing a ¥17.43 billion (-13.4%) decrease compared to thesame period in the prior fiscal year. Operating income fell ¥640 million (-15.7%) compared to the prior cumulative
consolidated third quarter, amounting to ¥3.44 billion.

Advanced Materials & Processing
The Advanced Materials & Processing segment recorded lower sales in the domestic market due to the broad impact of the
COVID-19 on the resins and other businesses. Although sales in Greater China increased due to the early resumption of
economic activities, overall overseas sales decreased slightly due to a decline in sales in other regions.
The Colors & Advanced Processing business recorded lower sales overall, due to sharply decreased sales of digital print
processing materials in Japan, the Americas, and Europe. Sales of dyes and additives, plastic resins for industrial andpackaging applications, and conductive materials were also lower.
The Polymer Global Account business, which mainly sells plastics to the office equipment, appliance, and video game device
markets, recorded lower sales overall. This result was mainly due to sales declines in Japan and ASEAN, despite an increase in－ 2 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

sales in Greater China.
As a result, sales for the segment amounted to ¥195.92 billion, representing a ¥11.42 billion (-5.5%) decrease compared to thesame period in the prior fiscal year. Operating income declined ¥1.72 billion (-24.8%) compared to the previous cumulative
consolidated third quarter to ¥5.23 billion, impacted primarily by weaker profitability due to declining market conditions in thedigital print processing materials business.

Electronics
Despite increased sales of precision processing-related materials used in connection with intermediate processing insemiconductors and a slight increase in sales related to formulated epoxy resins used in heavy electrical and light electricalapplications, the Electronics segment recorded slightly lower net sales overall, driven by lower sales of materials related todisplays, photolithography, and equipment.
As a result, sales for the segment amounted to ¥86.01 billion, representing a ¥1.31 billion (-1.5%) decrease compared to thesame period in the prior fiscal year. Operating income was ¥6.11 billion, an increase of ¥1.97 billion (+47.7%) year on year,
mainly due to improved profitability among the Company’s manufacturing subsidiaries.

Mobility & Energy
The Mobility Solutions business recorded lower sales both in Japan and overseas. This result was due to lower sales of car
electronics-related products in Japan and lower sales in the resins business in all regions (except Greater China), stemmingfrom lower automotive production (excluding Greater China) caused by the COVID-19 pandemic.
As a result, sales for the segment amounted to ¥78.74 billion for the cumulative consolidated third quarter, representing a¥19.27 billion (-19.7%) decrease year on year. Operating income fell ¥740 million (-47.8%) compared to the prior cumulative
consolidated third quarter, amounting to ¥810 million.

Life & Healthcare
The Life & Healthcare segment recorded significantly higher sales overall, due to higher sales overseas driven by the additionof sales from the Prinova Group acquired by the Company in the prior consolidated second quarter, though domestic sales
decreased mainly due to lower demand attributable to the impact of the COVID-19 pandemic.
The new Food Ingredients business recorded significantly higher sales overall, boosted by the addition of sales from thePrinova Group despite reduced sales of TREHA™ and other products in the food materials field in Japan and overseas.
The Life & Healthcare business recorded gains in sales of pharmaceutical raw materials and intermediates and medical
materials in the medical and pharmaceutical field along with rising sales of hygiene products-related materials in the skin careand toiletries field. Overall sales were lower, however, as sales of AA2G™ in the skin care and toiletries field decreased inJapan and overseas. Pharmaceutical production business sales to the medical and pharmaceutical field also decreased due to thesale of a Company’s manufacturing subsidiary.
As a result, sales for the segment amounted to ¥131.09 billion, which was a ¥52.37 billion (+66.5%) increase compared to the
cumulative consolidated third quarter of the prior fiscal year. Operating income grew ¥2.51 billion (+95.8%) year on year,
reaching ¥5.14 billion.

Other
No special matters to disclose.

(2) Financial Position
As of the end of the consolidated third quarter, current assets amounted to ¥388.63 billion. This represents an increase of ¥9.29
billion compared to the end of the prior consolidated fiscal year, mainly due to an increase in accounts receivable, which wasoffset in part by decreases in cash and deposits and inventories. Non-current assets amounted to ¥247.1 billion, up ¥14.96
billion from the end of the prior consolidated fiscal year. This increase was mainly due to an increase in investment in－3－

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

securities stemming from a rise in the fair value of shares owned by the Company, offset in part by amortization of intangible
fixed assets and a decrease in property, plant and equipment in connection with the exclusion of certain domestic subsidiaries
from the scope of consolidation. As a result, total assets increased ¥24.26 billion compared to the end of the prior consolidated
fiscal year to ¥635.73 billion.
Liabilities amounted to ¥298.15 billion, a decrease of ¥80 million compared to the end of the prior consolidated fiscal year.
This result was mainly due to decreases in commercial paper and short-term loans, offset in part by an increase in accounts
payable.
Net assets amounted to ¥337.58 billion, up ¥24.34 billion compared to the end of the prior consolidated fiscal year. This
increase was mainly due to the recording of profit attributable to owners of the parent in the amount of ¥16.55 billion, as wellas an increase in net unrealized holding gain on securities.
As a result, the Company recorded a shareholders’ equity ratio of 51.8%, up 1.9 points over the 49.9% at the end of the priorconsolidated fiscal year.

(3) Qualitative Information Related to Consolidated Earnings Forecasts
During the cumulative consolidated third quarter, the global spread of COVID-19 continued to have a serious impact on theeconomy. However, China resumed economic activities early on and continues to recover, experiencing firm performance inthe electronics, electrical, and automobile businesses. During the consolidated third quarter, Japan and ASEAN also
experienced better-than-projected recoveries and lower costs associated with voluntary restraints on activities in response to
COVID-19. Overall, our performance has recovered to a greater degree than we projected at the beginning of the consolidated
fiscal year. We recorded a gain on sale in connection with the transfer of subsidiary shares and the sale of cross-shareholdings.
We entered these stock transactions from the perspective of the best owner of such shares, as part of the priority policy ofPortfolio Optimization described in our ACE-2020 mid-term management plan. As a result of these factors, performance inevery profit measure as of the end of the third quarter of the fiscal year ending March 31, 2021, exceeded the full-year
consolidated forecast we announced on May 14, 2020.
While the business environment surrounding the NAGASE Group remains uncertain, we expect a certain level of profits forthe fourth quarter. Therefore, we have decided to make an upward revision to our full-year earnings forecasts as indicatedbelow.
For these forecasts, we changed our assumed foreign exchange rates from ¥106 to ¥105 to the U.S. dollar and from ¥14.7 to¥15.5 to the RMB.

a. Revision to full-year earnings forecast (April 1, 2020 - March 31, 2021)(Millions of yen)Previous Forecast (A)Revised Forecast (B)Net sales

754,000

811,000

57,000

7.6%

Operating income

15,00020,000

5,000

33.3%

Ordinary income

15,50021,000

5,500

35.5%

Profit attributable to ownersof the parent

12,50017,000

4,500

36.0%

－

4

－

Change (B-A)

Change (%)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

b. Revised net sales and operating income forecasts by segment (April 1, 2020 - March 31, 2021)(Net sales by segment)(Millions of yen)
Most-Recent Forecast (A)* Revised Forecast (B)Change (B-A)

Change (%)

Functional Materials

142,500

151,000

8,500

6.0%

Advanced Materials &Processing

241,000

260,700

19,7008.2%

Electronics

102,500

116,000

13,50013.2%

Mobility & Energy

102,000

110,700

8,700

8.5%

Life & Healthcare

165,500

172,200

6,700

4.0%

500

400

(100)

(20.0%)

754,000

811,000

57,000

7.6%

OthersTotal Sales(Operating income by segment)(Millions of yen)

Most-Recent Forecast (A)* Revised Forecast (B)Change (B-A)

Change (%)

Functional Materials

4,200

4,700

500

11.9%

Advanced Materials &Processing

5,400

6,500

1,100

20.4%

Electronics

6,200

8,000

1,800

29.0%

Mobility & Energy

1,100

1,400

300

27.3%

Life & Healthcare

5,600

6,300

700

12.5%

Others(7,500)(6,900)600－

Total operating income

15,00020,000

5,000

33.3%

*Figures from FYE March 2021 Second Quarter Financial Briefing, P.18

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5

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2020)
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

－

6

－

(Millions of yen)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2020)

51,408221,116
86,166
1,789
7,730
11,859(732)
379,337

45,406
243,779
79,693
1,751
6,838
11,786(624)
388,631

74,30971,68335,246
9,064
28,286
72,59732,611
7,882
26,16866,662

76,124
391
1,754
2,085
4,967
(91)
85,232
232,139
611,477

99,623
206
2,230
1,793
4,999
(91)
108,761
247,107635,739NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

Prior Consolidated Fiscal Year
(March 31, 2020)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
Deferred tax liabilities
Retirement benefit liability
Other
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gain on securities
Deferred gain (loss) 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)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2020)

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

121,838
26,6197,777
12,000
2,019
3,114
107
22,432
195,91030,00042,621
9,280
13,6772,221
97,800298,234

30,00038,997
17,724
13,686
1,834
102,243
298,154

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

9,699
10,646
268,168(5,071)
283,442

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

47,466(44)(1,224)(280)
45,9168,226
337,585635,739NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Nine-month periods ended December 31, 2020 and 2019
(Millions of yen)
Nine-month period ended
December 31, 2019

Nine-month period ended
December 31, 2020

(April 1, 2019 - December 31, 2019) (April 1, 2020 - December 31, 2020)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and affiliates
Subsidy income
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 - current
Income taxes - deferred
Total income taxes
Profit for the period
Profit attributable to non-controlling interests
Profit attributable to owners of the parent

－

8

－

601,721523,899
77,821
62,767
15,053

604,541
520,827
83,71467,64816,065

107
1,865
199
314
2,487

101
1,023
199
518
493
2,336

1,078
156
130
466
1,831
15,709

770
189
283
1,242
17,159

20
3,763
27
3,810

70
5,769
2,657
8,497

43
146
1,041
22
1,254
18,266
4,585
1,365
5,950
12,315266
12,049

7
64
29
10
163
1
82
359
25,298
6,150
2,037
8,187
17,110553
16,556

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

(Quarterly Consolidated Statements of Comprehensive Income)Nine-month periods ended December 31, 2020 and 2019
(Millions of yen)
Nine-month period ended
December 31, 2019

Nine-month period ended
December 31, 2020

(April 1, 2019 - December 31, 2019) (April 1, 2020 - December 31, 2020)

Profit for the period
Other comprehensive income
Net unrealized holding gain on securities
Deferred gain (loss) on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive loss 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

－

12,315

17,1103,811
20(1,287)
155

14,838(48)(2,113)
414

(149)

(112)

2,550
14,866

12,97930,08914,740126

29,494594

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

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

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

(Additional Information)(Application of Tax Effect Accounting for Transition from Consolidated Taxation System to Group Tax Sharing System)
The Company and certain domestic consolidated subsidiaries have calculated the amounts of deferred tax assets and deferred tax
liabilities in accordance with the provisions of tax laws in Japan prior to the amendments based on the treatments stipulated in
Paragraph 3 of Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation
System to the Group Tax Sharing System (Accounting Standards Board of Japan (ASBJ) Practical Issues Task Force No. 39,
March 31, 2020) instead of applying the provision of Paragraph 44 of Implementation Guidance on Tax Effect Accounting (ASBJ
Guidance No. 28, February 16, 2018), regarding the transition to group tax sharing system provided for in Act for Partial
Amendment of the Income Tax Act, etc. (Act No. 8 of 2020), and items for which the non-consolidated taxation system has beenreviewed in line with the transition to the group tax sharing system.
(Effects of COVID-19 Pandemic When Making Accounting Estimates)
The Group made accounting estimates related to impairment loss on non-current assets and recoverability of deferred tax assets,etc., based on information available at the time the consolidated financial statements were prepared.
The impact of the spread of COVID-19 on the Group’s earnings during the cumulative consolidated third quarter has been
limited overall. The most prominent impact was on the first quarter results of the automobile-related business. However, since
the second quarter, China has maintained an economic recovery after resuming economic activities quickly. In the third quarter,
Japan and ASEAN experienced better-than-expected recoveries. However, we still cannot foresee when a cessation of the
spread of COVID-19 will occur. Given the expected decrease in automobile production due to a shortage in the supply ofsemiconductors, we project that the spread of COVID-19 will once again have a considerable impact on NAGASE Groupearnings during the consolidated fourth quarter.
In light of the preceding, the Group’s accounting process is based on the assumption that the impact of COVID-19 will result ina continued unstable business environment from the consolidated fourth quarter of fiscal 2020 through the end of fiscal 2021,
as has been the case with fiscal 2020.
Many uncertain factors regarding the impact of COVID-19 remain, which may affect the financial condition and operating
performance of the Group in the consolidated fourth quarter and thereafter.

－

10

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

(Segment Information, etc.)
Segment Information
I Nine-month period ended December 31, 2019 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Advanced
Functional
Mobility &Life &
Materials & Electronics
Materials
EnergyHealthcare
Processing

Total

Others(Note) 1

Total

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

Net sales
Sales tocustomers

129,917

207,356

87,32998,02078,718601,341379

601,721--

601,721

Intersegment
sales/transfers

1,374

1,666

1,428

2,211

370

7,051

4,113

11,164-(11,164)-

Total

131,291

209,02288,757100,231

79,089608,392

4,492

612,885-(11,164)

601,721

Segment income(loss)

4,090

6,961

4,140

1,561

2,628

19,381

164

19,546(4,793)301

15,053(Note) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes logistics
services, information processing services, and professional services.
2. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others.
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”.
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 ¥73,000 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 impairment losses of non-current assets)
In the Electronics segment, as a result of worsening profitability of the thin processing business for glass substrate, thecarrying amounts of the related business assets were reduced to their recoverable amounts. The recorded loss on
impairment of fixed assets in this instance was ¥1,039 million in the cumulative consolidated third quarter.
(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 goodwill within the Life & Healthcare segment. Following the finalization of theprovisional accounting treatment, goodwill amounted to ¥10,747 million at the end of the consolidated fiscal year.

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

II Nine-month period ended December 31, 2020 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Advanced
Functional
Mobility &Life &
Materials & Electronics
Materials
EnergyHealthcare
Processing

Total

Others(Note) 1

Total

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

Net sales
Sales tocustomers

112,480

195,927

86,01178,745131,092

604,259282

604,541--604,541

Intersegment
sales/transfers

1,287

1,571

1,266

2,037

294

6,457

4,160

10,617-(10,617)-

Total

113,768

197,499

87,27880,782

131,387

610,716

4,443

615,159-(10,617)604,541

3,448

5,235

6,115

815

5,145

20,760280

21,041(5,383)408

16,065

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

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

(Significant Subsequent Events)(Purchase of Treasury Stock)
At a meeting held February 5, 2021, the Company’s board of directors resolved to purchase treasury stock based on theprovisions of Article 156 of the Companies Act, applied mutatis mutandis to Paragraph 3, Article 165 of the same Act.
(1) Reasons for the purchase of treasury stock
To improve corporate value and shareholder profits through improved capital efficiency.
(2) Purchase details
a. Class of shares to be purchasedb. Total number of shares to be purchasedc. Total purchase amountd. Purchase period
e. Purchase method

Common shares
4,500,000 shares (maximum)(Equivalent to 3.63% of outstanding shares, excluding treasury stock)
6 billion yen (maximum)
From February 8, 2021 to February 4, 2022
Market purchases(Cancellation of treasury stock)
At a meeting held February 5, 2021, the Company’s board of directors resolved to cancel treasury stock based on theprovisions of Article 178 of the Companies Act.
a. Class of shares to be canceledb. Total number of shares to be canceledc. Effective date of the cancellation

Common shares
3,000,000 shares(Equivalent to 2.35% of outstanding shares, including treasury stock)
February 26, 2021

*Reference Treasury Stock held as of December 31, 2020
Total number of shares issued (excluding treasury stock) 124,011,371 shares
Total number of treasury stock
3,396,914 shares

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2021

3. Supplementary Information(1) Overseas Sales
I Nine-month period ended December 31, 2019 (consolidated)
GreaterChina
I Overseas sales(Millions of yen)

ASEAN

151,279

Americas83,863

Europe34,170Other

14,702

Total

12,775

296,791

II Consolidated sales(Millions of yen)

601,721

III Ratio of overseas sales to

25.2

consolidated sales (%)

13.9

5.7

2.4

2.1

49.3

II Nine-month period ended December 31, 2020 (consolidated)
GreaterChina
I Overseas sales(Millions of yen)

ASEAN

155,845

Americas73,36965,151

EuropeOther

32,802

Total

12,560II Consolidated sales(Millions of yen)
III Ratio of overseas sales toconsolidated sales (%)

339,729604,541

25.8

12.1

10.8

5.4

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, Vietnam(3) Americas.............U.S., Mexico(4) Europe.................Germany, UK(5) Other....................Korea

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56.2