Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019
<Under Japanese GAAP>
November 2, 2018
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, 2018
Start of distribution of dividends (scheduled): December 3, 2018
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, 2019
(April 1, 2018 to September 30, 2018)(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, 2018
September 30, 2017

Operating income

Profit attributable toowners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

404,459
387,501

4.4
10.4

13,431
12,606

6.5
74.1

13,91013,8020.8
84.5

10,321
8,760

17.8
87.4

(Notes) Comprehensive income

Second quarter ended September 30, 2018: ¥ 14,341 million (15.0% decrease)
Second quarter ended September 30, 2017: ¥ 16,863 million (892.0%)
Earnings per share

For the second quarter ended
September 30, 2018
September 30, 2017

Yen
82.43
69.46

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

September 30, 2018
March 31, 2018
(Reference) Equity capital

Net assets

Shareholders’equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

593,323
569,456

319,364
308,804

53.0
53.3

2,511.98
2,424.97

As of September 30, 2018: ¥ 314,529 million
As of March 31, 2018:¥ 303,636 million

2. Dividends
1Q
For the year ended (or ending)
Yen
March 2018
March 2019
March 2019 (estimate)(Note) Revisions to the latest projected dividends: No

2Q

Annual Dividends per Share
3Q
Fiscal year end

Annual

Yen

Yen

Yen

Yen

17.00
18.00



23.00

40.00



19.00

37.00

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2019
(April 1, 2018 to March 31, 2019)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year

828,000

Operating income

Profit attributable toowners of the parent

Ordinary income

Earnings per
share% Millions of yen% Millions of yen% Millions of yen

%

Yen

5.6

5.7

5.8

8.3

148.5525,50027,50018,600(Note) Revisions to the latest projected consolidated results: 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: 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: 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)
September 30, 2018
127,408,285 shares March 31,2018
127,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2018
2,196,209 shares

March 31, 2018

Average number of shares during the period
September 30, 2018125,212,124 shares

September 30, 2017

2,195,966 shares

126,118,383 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” onpage 4 of this document.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

Attachments
1. Qualitative Information

2(1) Business Performance2(2) Financial Position

4(3) Qualitative Information Related to Consolidated Earnings Forecasts

4

2. Quarterly Consolidated Financial Statements and Notes

5(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, 2018 and 20177

Quarterly Consolidated Statements of Comprehensive Income
Six-month periods ended September 30, 2018 and 20178(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(Additional Information)

11(Segment Information, etc.)

12

3. 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, 2019

1. Qualitative Information(1) Business Performancea. General Summary of Results
The Japanese economy maintained a pace of moderate recovery throughout the cumulative consolidated second quarter, pushed
by strong corporate earnings. However, risks remain as to the impact of natural disasters on consumption, production, and otherfactors. The global economy continued to experience a gradual recovery, backed by strong performance in U.S. corporate
earnings. Despite these positive indicators, however, U.S.-China trade frictions make the future direction of the world economy
uncertain.
In this environment, the Company recorded domestic sales of ¥202.24 billion (+5.0% year on year) for the cumulative
consolidated second quarter. Overseas sales amounted to ¥202.21 billion (+3.7%). In total, the Company recorded ¥404.45
billion in net sales, a 4.4% improvement over the first six months in the prior fiscal year.
The Company recorded gross profit of ¥52.91 billion (+5.4%) and operating income of ¥13.43 billion (+6.5%). This increase
was mainly due to generally higher global sales and improved profitability among the Company’s manufacturing subsidiaries.
Ordinary income amounted to ¥13.91 billion (+0.8%), while profit attributable to owners of the parent amounted to ¥10.32
billion (+17.8%).

b. Segment Summary
The following section describes segment earnings for the period.
The Company reclassified certain reportable segments in the first quarter of the current consolidated fiscal year. The Company
have reclassified reportable segment classifications for the cumulative consolidated second quarter of the prior fiscal year forcomparative purposes.

Functional Materials
The Functional Materials segment recorded higher sales in both domestic and overseas markets.
The Performance Chemicals business recorded higher sales year on year, mainly due to improved sales of coating raw
materials and urethane materials, spurred by strong automotive production in Japan and overseas, as well as naphtha priceincreases. Another contributing factor was the additional sales of the U.S. distributor acquired in the second quarter of the priorfiscal year, reflected for an entire cumulative consolidated second quarter in the current fiscal year.
The Speciality Chemicals business recorded higher sales year on year, mainly due to an increase in sales of electronics
chemicals and plastic materials/plastic additives for the semiconductor and other related electronics industries in Japan.
Overseas sales were level year on year.
As a result, the Functional Materials segment recorded sales of ¥89.65 billion for the first six months of the fiscal year, a ¥5.23
billion (+6.2%) increase year on year. Operating income for the segment was ¥2.71 billion, an increase of ¥30 million (+1.3%).

Advanced Materials & Processing
The Advanced Materials & Processing segment recorded higher sales in both domestic and overseas markets.
The Colors & Advanced Processing business recorded higher sales as a whole, driven by growth in Japan for plastic resins forindustrial and packaging applications and dyes/additives, as well as growth in digital print processing materials in both Japanand overseas.
The Polymer Global Account business mainly sells plastics to the office equipment, appliance, and video game device markets.
The sales of those business were higher overall, driven by growth in Japan, Greater China, and ASEAN.
As a result, the Advanced Materials & Processing segment recorded sales of ¥141.45 billion for the cumulative consolidated
second quarter, a ¥9.61 billion (+7.3%) increase year on year. Operating income grew ¥1.03 billion (+28.9%), reaching ¥4.61－ 2 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019billion. This increase was mainly due to profitability improvements at domestic and overseas manufacturing subsidiaries.

Electronics
The Electronics segment recorded lower sales in both domestic and overseas markets.
Despite favorable performance in formulated epoxy resins and equipment-related sales to the semiconductor industry, lower
photolithography materials sales drove Electronic Chemicals business sales slightly lower.
The Electronic Materials business recorded lower sales due to decreases in display-related products, despite strong
performance in our business for abrasives used connection with interim processing in semiconductors.
As a result, sales for the segment amounted to ¥61.82 billion, which was a ¥3.88 billion (-5.9%) decrease. Segment operating
income fell ¥320 million (-7.4%) to ¥4.03 billion for the cumulative consolidated second quarter.

Automotive & Energy
The Automotive Solutions business recorded higher sales, driven by strong performance in the resins business in Japan,
Greater China, and ASEAN. Sales growth for car electronics-related products was another positive factor.
As a result, sales for the segment amounted to ¥68.24 billion, which was a ¥5.5 billion (+8.8%) increase year on year. Segment
operating income grew ¥60 million (+4.2%), reaching ¥1.49 billion for the cumulative consolidated second quarter.

Life & Healthcare
The Life & Healthcare segment recorded sales level with the same period in the prior fiscal year in both Japan and overseas.
Sales of TREHA™ and other products in the food ingredients field in the Life & Healthcare Products business were lower
overseas and slightly higher in Japan. Sales of AA2G™ to customers in the skin care and toiletries sectors were higher both inJapan and overseas. In the medical and pharmaceutical field, sales of pharmaceutical raw materials and intermediates, medical
materials, and pharmaceutical business products were slightly lower. As a result, the business recorded period sales level withthe prior year.
The Beauty Care Products business, which includes sales of cosmetics and health foods, recorded lower sales, driven down due
to weak performance across all product categories.
As a result, sales for the segment amounted to ¥42.98 billion, which was a ¥490 million (+1.2%) increase year on year. At thesame time, operating income fell ¥150 million (-6.8%) to ¥2.14 billion for the period. This result was mainly due to declining
profitability of a certain domestic manufacturing subsidiaries.

Other
No special matters to disclose.

－

3 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

(2) Financial Positiona. Assets, Liabilities and Net Assets
As of the end of the consolidated second quarter, current assets amounted to ¥371.35 billion. This represents an increase of¥18.02 billion compared to the end of the prior consolidated fiscal year, mainly due to increases in accounts receivable andinventories. Non-current assets amounted to ¥221.97 billion, up ¥5.84 billion. This increase was mainly due to increases in thefair value of shares retained. As a result of these various factors, total assets increased ¥23.86 billion to ¥593.32 billion as ofthe end of the consolidated second quarter.
Liabilities amounted to ¥273.95 billion, a ¥13.3 billion increase compared to the end of the prior consolidated fiscal year. This
increase was mainly due to increases in short-term loans and commercial paper.
Net assets amounted to ¥319.36 billion, up ¥10.55 billion. This increase was mainly due to ¥10.32 billion in profit attributableto owners of the parent and an increase in unrealized holding gain on other securities.
As a result, the Company recorded a shareholders’ equity ratio of 53.0%, 0.3 points lower than the end of the prior consolidated
fiscal year.

b. Summary of Consolidated Cash Flows
Cash and cash equivalents (Cash) decreased ¥2.85 billion (-6.7%) compared to the end of the prior consolidated fiscal year,
amounting to ¥40.0 billion. Cash used in operating activities amounted to ¥3.97 billion, while cash used in investing activities
came to ¥8.41 billion and cash from financing activities amounted to ¥8.95 billion. In addition, effects of exchange ratechanges had ¥580 million positive impact on Cash balances.
(Cash Flows from Operating Activities)
Cash used in operating activities for the cumulative consolidated second quarter amounted to ¥3.97 billion. While theCompany recorded profit before income taxes of ¥13.88 billion and ¥4.65 billion in cash reserved associated with depreciation
and amortization, working capital increases had a ¥18.45 billion negative impact on Cash. The Company also paid ¥2.73
billion in income taxes.
(Cash Flows from Investing Activities)
Cash used in investing activities for the cumulative consolidated second quarter amounted to ¥8.41 billion. This result was
mainly due to cash outlays of ¥6.84 billion for the purchase of tangible and intangible fixed assets and outlays of ¥1.64 billion
for the purchase of investment securities.
(Cash Flows from Financing Activities)
Cash flows from financing activities for the cumulative consolidated second quarter amounted to ¥8.95 billion. This result was
mainly due to increases of ¥10.97 billion in short-term loans and a net ¥2.0 billion related to the issuance of commercial paper.
These increases exceeded outlays of ¥2.87 billion in dividend payments.

(3) Qualitative Information Related to Consolidated Earnings Forecasts
The Company has made no changes to the full-year consolidated earnings forecasts announced on May 7, 2018.

－

4 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2018)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
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－

5 －(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2018)

43,303225,999
67,681
1,883
4,106
10,953(602)
353,325

40,145
237,782
76,116
2,156
4,772
10,773(395)
371,351

67,22568,65725,478
12,215
3,396
41,09024,885
11,427
3,028
39,341

100,403
109
2,409
4,992
(101)
107,813
216,130
569,456

106,654
268
2,210
4,941
(101)
113,973
221,972
593,323

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

Prior Consolidated Fiscal Year
(March 31, 2018)
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
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
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－

6 －(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2018)

118,028
31,934
11,067
5,000
1,738
5,451
274
19,500
192,996

119,595
43,798
10,6307,000
10,000
2,036
4,834
148
17,521
215,566

20,00017,906
14,42014,518809
67,655
260,651

10,00018,333
15,91913,398741
58,392273,959

9,699
11,158232,534(3,114)250,278

9,699
10,659239,975(3,114)257,220

50,773
(15)
2,917
(317)
53,3585,168
308,804
569,456

53,019
38
4,450
(199)
57,3094,834
319,364593,323

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Six-month periods ended September 30, 2018 and 2017
(Millions of yen)Six-month period ended
September 30, 2017

Six-month period ended
September 30, 2018

(April 1, 2017 - September 30, 2017) (April 1, 2018 - September 30, 2018)

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 gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
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
Gain on negative goodwill
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 business withdrawal
Loss on step acquisitions
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－

7 －387,501
337,285
50,21537,60812,606404,459
351,547
52,911
39,48013,431

95
881
135
361
202
238
1,915

105
993
134
337
206
1,777

546
173
719
13,802

743
374
181
1,298
13,910

12
8
229
250

134
1
6
142

20
32
239
449
294
1,035
13,018
3,298
813
4,111
8,906
145
8,760

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

(Quarterly Consolidated Statements of Comprehensive Income)Six-month periods ended September 30, 2018 and 2017
(Millions of yen)Six-month period ended
September 30, 2017

Six-month period ended
September 30, 2018

(April 1, 2017- September 30, 2017) (April 1, 2018- September 30, 2018)

Profit for the period
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:Shareholders of the parent
Non-controlling interests

－

8 －

8,906

10,445

6,151
(0)
1,591
109

2,246
53
1,436
118

103

41

7,956
16,863

3,895
14,341

16,555307

14,272
68

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30, 2018

Six-month period ended
September 30, 2017

(April 1, 2017- September 30, 2017) (April 1, 2018- September 30, 2018)

Operating activities
Profit before income taxes
Depreciation and amortization other than amortizationof goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Gain on negative goodwill
Loss on step acquisitions
Loss on business withdrawal
Decrease in liability for retirement benefits
Interest and dividend income
Interest expenses
Exchange loss, net
Gain on sales of investment securities, investments incapital, shares of subsidiaries and affiliates, andinvestments in capital of subsidiaries and affiliates, net
Increase in notes and accounts receivable
Increase in inventories
Increase in notes and accounts payable
Other, net
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 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
Decrease (increase) in short-term loans receivable(Increase) decrease in time deposits, net
Other, net
Net cash used in investing activities－

9 －13,01813,882

4,589

4,653

239
844
(229)
294
449
(6)
(977)
546
195

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

(8)

(6)

(21,157)(5,630)15,024
1,243
8,433
1,192
(549)
(2,568)6,508(10,613)(8,455)614(2,125)(1,864)
1,356(728)(2,734)(3,971)(3,410)58(6,614)
488

(183)

(235)

(325)
16
(49)

(1,640)12(97)(6,004)

-

50
(183)
(189)
(10,221)

(674)
300
45
(8,414)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

Financing activities
Increase in short-term loans, net
Net increase in commercial papers
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 not resulting in change in scope of
consolidation
Other, net
Net cash used in 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 resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents, at end of the period

－

10 －

9,064
7,000
6,500
(2,330)(10,000)(15)(2,144)(275)

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

(453)

(498)

0
7,346

(28)
8,950

458

580

4,091
39,730(2,856)42,857

4-

43,82640,001

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019(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.

(Additional Information)
At the beginning of the consolidated first quarter, the Company adopted the Partial Amendment to the Accounting Standard forTax Effect Accounting (ASBJ Statement No.28, February 16, 2018). Under this standard, the Company now classifies deferred
tax assets under investments and other assets, while deferred tax liabilities are classified under long-term liabilities forpresentation.

－

11 －

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

(Segment Information, etc.)
Segment Information
I Six-month period ended September 30, 2017 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
To Quarterly
Consolidated

Reportable Segments
Advanced
Functional
Automotive
Life &
Materials & Electronics
Materials& Energy Healthcare
Processing

Total

Other
(Note) 1

Total

Corporate Adjustments
Financial(Note) 2(Note) 3

Statements(Note) 4

Net sales
Sales tocustomers
Intersegment
sales/transfers

84,420131,839

65,70562,74542,493

387,205

295

387,501--

387,501

1,190

1,139

1,005

1,333

223

4,892

2,300

7,193

-

(7,193)-

Total

85,610132,979

66,71164,07942,717392,098

2,596

394,694-(7,193)

387,501

Segment income(loss)

2,677

3,580

4,354

1,437

2,303

14,353148

14,501(2,086)190

12,606(Note) 1. Other 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 Other.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of Segment income (loss), Corporate, and Adjustments is equivalent to operating profit as presented in the
consolidated statements of income.
II 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
Functional
Automotive
Life &
Materials & Electronics
Materials& Energy Healthcare
Processing

Total

Other
(Note) 1

Total

To Quarterly
Consolidated
Corporate Adjustments
Financial(Note) 2(Note) 3
Statements(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. Other 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 Other.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of Segment income (loss), Corporate, and Adjustments is equivalent to operating profit as presented in the
consolidated statements of income.

－

12 －

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

2. Changes in Reportable Segments(Changes in Business Classifications)
Beginning in the consolidated first quarter, the Company reclassified Fitz Chem LLC under the Functional
Materials and the Life & Healthcare segments. In the prior consolidated fiscal year, Fitz Chem LLC was classified
under the Functional Materials segment. This change is in response to a change in business unit management.
Segment information for the prior cumulative consolidated second quarter has been prepared under this newclassification method, reported under 1. Information related to net sales and income (loss) by reportable segment.
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,
auxiliaries, plastic materials, plastic additives, industrial oil solutions, surfactants, fluorochemicals, encapsulantmaterials, silicone materials, and more for the paints/inks, resins, urethane foam, organic synthesis, surfactants, andsemiconductor industries.
The Advanced Materials & Processing segment is engaged in sales of dyestuffs, dyes, functional dyes, digital print
processing materials, thermoplastic resins, thermosetting resins, automobile refinish paints, conductive coatings,
synthetic rubber, inorganic materials, plastics products, and resins molding tools/dies for the dye/additive, digitalprint processing material, fiber processing, raw resin material, resin molding, functional film and sheet,construction, and other industries.
The Electronics segment is engaged in the sales of pre-processing materials and devices for LCD/semiconductors,
materials for display 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,semiconductor, hard disk drive, electronic components, and heavy electrical industries.
The Automotive & Energy segment is engaged in the sales of plastic products, thermoplastic resins, thermosetting
resins, silicone products, resin molding tools/dies, high-function car electronics materials and components, battery
materials, solar cell/secondary battery 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, and surfactants forthe 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.

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NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2019

3. Supplementary Information(1) Overseas Sales
I Six-month period ended September 30, 2017 (consolidated)
GreaterChina
I Overseas sales(Millions of yen)

ASEAN

106,886

Americas53,636

17,084

Europe

Other

7,369

Total

9,926

II Consolidated sales(Millions of yen)

194,904
387,501

III Ratio of overseas sales toconsolidated sales (%)

27.6

13.8

4.4

1.9

2.6

50.3

II Six-month period ended September 30, 2018 (consolidated)
GreaterChina
I Overseas sales(Millions of yen)

ASEAN

107,444

Americas59,65819,143

Europe

Other

7,207

Total

8,756

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

202,210404,459

26.5

14.8

4.7

1.8

2.2

(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

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50.0