Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014
<Under Japanese GAAP>
August 7, 2013
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

NAGASE & CO., LTD.
Stock exchange listing: Tokyo (First Sections)
Code number:
8012 (http://www.nagase.co.jp/english/)Representative:
Hiroshi Nagase, Representative Director and President
Contact:
Masanori Furukawa, General Manager, Corporate Accounting Division
Tel: +81-3-3665-3103
Filing of quarterly report (scheduled): August 12, 2013
Start of distribution of dividends (scheduled): −Supplementary documents of quarterly financial results: No
Quarterly investors’ meeting: No(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 to June 30, 2013)(1) Consolidated Operating Results(Percentages represent changes compared with same period of the previous fiscal year.)Net sales
For the first quarter ended
June 30, 2013
June 30, 2012
(Note)

Operating profit

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

171,328
166,722

2.8
8.0

4,169
4,128

1.0
(1.6)

5,106
4,657

9.7
(13.1)

3,527
3,409

3.5
6.8

Comprehensive income

First quarter ended June 30, 2013:
First quarter ended June 30, 2012:
Earnings per share

For the first quarter ended
June 30, 2013
June 30, 2012

¥ 8,818 million (−%)
¥ 126 million (97.0% decrease)

Earnings per share (diluted)
Yen

Yen

27.82
26.53

−
−

(2) Consolidated Financial Position
Total assets

Net assets

Net worth ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

494,216
486,747

242,940
237,806

47.3
46.9

1,840.23
1,803.31

June 30, 2013
March 31, 2013
(Reference) Equity capital

As of June 30, 2013:
As of March 31, 2013:¥ 233,627 million¥ 228,505 million

2. Dividends
1Q
For the year ended (or ending)March 31, 2013
March 31, 2014
March 31, 2014 (estimate)(Note)

Dividends per share
3Q
Fiscal year end

2Q

Annual

Yen

Yen

Yen

Yen

Yen

−
−

13.00

−

13.00

26.00

14.00

−

14.00

28.00

Revisions to the latest projected dividends: No

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2014
(April 1, 2013 to March 31, 2014)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year
(Note)

764,000

Operating profit% Millions of yen

14.7

19,200Ordinary income% Millions of yen

23.2

21,000Earnings per
share

Net income% Millions of yen

17.1

14,500

%

Yen

2.2

114.21

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 in accounting principles, changes in accounting estimates, and restatement of prior period financial
statements after error correctionsi.
Changes in accordance with revisions to accounting and other standards: No
ii. Changes in items other than (i) above: Yesiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No(Note) For details, see page 6, “2. Summary Information (Notes) (3) Changes of Accounting Policies or
Presentation Methods in the Consolidated Financial Statements.”(4) Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)June 30, 2013
138,408,285 shares March 31, 2013
138,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
June 30, 2013
11,452,925 shares

March 31, 2013

11,693,809 shares

Average number of shares during the period
June 30, 2013
126,832,903 shares

June 30, 2012

128,514,475 shares* Quarterly Review Implementation DisclosureThis quarterly report is exempt from the quarterly review procedure based upon the Financial Instruments andExchange Act. Furthermore, quarterly consolidated financial statements were undergoing the review procedure process
at the time of release.
* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions
deemed rational. A variety of factors could cause actual results to differ materially from forecasts.
Please refer to “1. Qualitative Information (3) Qualitative Information related to Earnings Forecasts” on page 5 of thisdocument.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

1. Qualitative Information(1) Business Performancea. General Summary of Results
During the first quarter of the current fiscal year, the Japanese economy experienced mild growth in exports andproduction, showing signs of a recovery, aided in part by effective government fiscal policies and a rebound inoverseas economies.
Under these conditions, the Company recorded domestic sales for the cumulative consolidated first quarter in theamount of ¥88.5 billion (6.4% year-on-year decrease). Overseas sales amounted to ¥82.81 billion (14.7%
increase), owing in part to a cheaper yen valuation. In total, the Company as a whole recorded net sales of ¥171.32
billion (2.8% increase) for the quarter.
Together with an increase in net sales, gross profit rose 6.5% to ¥22.17 billion, driven by strong performance inoverseas markets by the automobile-related business and continued healthy sales of smartphone- and tablet-relatedmaterials. At ¥4.16 billion, operating profit grew 1.0% compared to the same period in the prior fiscal year, mainly
affected by an increase in retirement benefit costs due to amortizing retirement benefit obligation actuarial
differences. The Company recorded ordinary income in the amount of ¥5.1 billion (9.7% increase), mainly
improved foreign exchange gains with the weaker yen. These factors contributed to a quarterly net income of¥3.52 billion, representing a year-on-year increase of 3.5%.
b. Segment Summary
The following discusses Company earnings by segment.
Beginning with the consolidated first quarter of this fiscal year, the Company has reorganized certain of its
reportable segments. For presentation purposes, the Company has calculated consolidated figures and ratios for the
first quarter of the prior period according to these reorganized classifications.
Functional Materials
Overall, net sales in the Functional Materials segment experienced a year-on-year decline. Despite growth inNortheast Asia, North America, and Europe, net sales fell in Japan and Southeast Asia.
Our performance chemicals business reported overall declines in net sales compared to the same period in theprior fiscal year. Lower sales in coating raw materials and urethane materials to the automotive industry weremore than could be offset by gains in plastic materials and additives.
Our speciality chemicals business also experienced lower year-on-year net sales. Surfactants and raw materials forindustrial oil solutions sales were on par with the same period in the prior fiscal year; however, sales offluorochemicals, semiconductor encapsulant materials, and raw material for organic synthesis drove down overall
performance.
As a result, net sales for the Functional Materials segment amounted to ¥41.14 billion, which was a ¥2.17 billion(5.0%) decrease compared to the prior consolidated first quarter. Segment operating profit came in at ¥1.12
billion—a ¥270 million (19.6%) year-on-year decrease.
Advanced Materials & Processing
The Advanced Materials & Processing segment saw overall performance gains for the quarter year on year. Whiledomestic sales fell for the period, sales grew in all overseas regions.
In the colors and imaging business, sales in Japan of dyes/additives fell, while the Company showed gains in salesof information printing materials to the United States and Europe, contributing to overall year-on-year growth in
the segment.
-2-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

Sales in the Company’s plastics business for office equipment and appliances grew overall. While we saw a drop
in domestic sales, lower materials exports to major customers, and fewer molding tools shipments to customers
overseas, these declines were outpaced by growth in Northeast and Southeast Asia.
As a whole, our business related to functional films and sheets and plastic molding products reported lower net
sales. Despite strong performance in plastics and plastic materials, sales of anti-reflective materials for LCD TVs
and anti-reflective sheets for game devices underperformed the same period in the prior fiscal year.
As a result, segment net sales for the consolidated first quarter amounted to ¥55.93 billion, or a ¥1.75 billion(3.2%) gain compared to the same period in the prior fiscal year. Operating profit amounted to ¥770 million,
which was a comparative ¥20 million (3.9%) higher.
Electronics
Sales in the electronics segment increased overall for the consolidated period. Sales in North America and Europe
were on par with the same period in the prior fiscal year, while sales grew year on year in Japan, as well as inNortheast and Southeast Asia.
Sales in our electronic chemicals business grew overall, with a strong performance in formulated epoxy resin sales
for the heavy electrical equipment and light electrical equipment markets, higher sales of chemicals used in the
manufacture of semiconductors and LCD panels, and greater revenues from sales of equipment to hard disk drive
manufacturer in the United States and Europe.
Net sales in the electronics materials business also experienced overall year-on-year gains. While sales ofLED-related materials fell and touch-panel materials sales were level with the same period in the prior fiscal year,
the Company showed wide gains in sales of LCD film-related materials.
As a result, the Company recorded consolidated first quarter net sales of ¥32.5 billion, which was a ¥3.46 (11.9%)
increase compared to the same period in the prior fiscal year. Operating profit amounted to ¥1.7 billion for the
consolidated first quarter—a ¥230 million (15.9%) year-on-year increase.
Automotive & Energy
Our automotive-related business saw growth overall for the consolidated period. Despite generally strong
performance of raw materials and component for automotive industry in our domestic market, sales fell comparedto the prior fiscal year, which had higher reconstruction demand in the wake of March 11, eco-car subsidies, andother growth-driving domestic factors leading to major auto production increases. Overseas, our performancecontinued to be solid, given a recovery in production among Japanese auto makers in China and strong
performance in the North American and ASEAN markets.
In our energy business, we outperformed the same period in the prior fiscal year, mainly due to higher sales ofsolar power systems and products for lithium ion batteries for industrial uses.
As a result, segment net sales for the consolidated first quarter amounted to ¥23.21 billion, representing a ¥2.12
billion (10.1%) increase year on year. Operating profit amounted to ¥470 million for the consolidated first quarter,a year-on-year increase owing mainly to strong performance in our overseas automobile-related business, despite
an operating loss in our lithium ion battery systems business due to roll-out delays. This result for operating
income was ¥180 million (62.0%) higher than the same period in the prior fiscal year.

-3-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

Life & Healthcare
The Company’s Life & Healthcare business reported lower year-on-year sales for the consolidated first quarter.
With respect to sales of functional materials to the food industry, domestic sales of TREHATM and other functionalsaccharides, enzymes, and other Company products were stable, while overseas sales performed well. Sales offunctional saccharides to the skin care market were basically level year on year, due to downward price pressuresin the market. At the same time, in the pharmaceutical and medical fields, sales of pharmaceutical raw materials
and intermediates to generic pharmaceuticals makers were weak.
Our beauty care products business includes sales of cosmetics and health foods. During the first quarter, we saw
weak sales in both cosmetics and health foods for existing products; however, strong sales of new products pushed
performance higher year on year as a whole.
As a result, segment net sales amounted to ¥18.33 billion for the consolidated first quarter, which was a ¥610
million (3.2%) decrease year on year. At the same time, gross profit grew, due mainly to greater sales of more
highly profitable products. Operating profit fell to ¥1.1 billion, ¥170 million (13.4%) lower than the same period
in the prior fiscal year. This decrease was mainly due to higher general and administrative expenses.
Other
No special matters to disclose.

(2) Financial Positiona. Assets, Liabilities and Net Assets
As of the end of the consolidated first quarter, current assets amounted to ¥308.82 billion. This represents anincrease of ¥3.07 billion compared to the end of the prior consolidated fiscal year, due mainly to increased
accounts receivable, more than offsetting decreases in cash and time deposits used to repay loans. Non-current
assets amounted to ¥185.38 billion, an increase of ¥4.39 billion compared to the end of the prior consolidated
fiscal year. This increase was mainly due to greater investments in securities via share price gains in equity
investments. As a result, total assets increased by ¥7.46 billion compared to the end of the prior consolidated fiscal
year, reaching ¥494.21 billion.
Liabilities increase by ¥2.33 billion compared to the end of the prior consolidated fiscal year, amounting to¥251.27 billion. While the Company recorded lower loans, increases in accounts payable and liabilities related toretirement benefits in connection with the early adoption of revised retirement benefits accounting standards
combined to drive liabilities higher.
Net assets amounted to ¥242.94 billion at the end of the consolidated first quarter, up ¥5.13 billion compared tothe end of the prior fiscal year. The Company recorded net income of ¥3.52 billion and an increase in otherunrealized holding gains on securities, which more than offset lower cumulative retained earnings and othercomprehensive income at the beginning of the term due to the early adoption of retirement benefits accounting
standards.
As a result, the Company’s shareholders’ equity ratio improved 0.4 points compared to the end of the priorconsolidated fiscal year, reaching 47.3%.
See “2. Summary Information (Notes) (3) Changes of Accounting Policies or Presentation Methods in theConsolidated Financial Statements” for more regarding the impact of the adoption of retirement benefits
accounting standards.

-4-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014b. Cash Flows
Cash and cash equivalents (“Cash”) decreased by ¥2.55 billion (5.6%) compared to the end of the priorconsolidated fiscal year, amounting to ¥43.26 billion. Cash from operating activities amounted to ¥4.79 billion,
while cash used in investing activities came to ¥2.14 billion. Cash used in financing activities amounted to ¥6.16
billion, and the Company added ¥110 million in cash from newly consolidated entities.
(Cash Flows from Operating Activities)
Cash flows from operating activities for the consolidated first quarter amounted to ¥4.79 billion. This increase wasmainly due to ¥2.02 billion in depreciation and amortization (no cash effects) and net income before income taxes
in the amount of ¥5.38 billion, more than offsetting income tax payments of ¥2.64 billion.
(Cash Flows from Investing Activities)
Cash used in investing activities during the consolidated first quarter amounted to ¥2.14 billion. This result was
mainly due to the Company’s purchase of property, plant and equipment of ¥1.71 billion.
(Cash Flows from Financing Activities)
Cash used in financing activities for the consolidated first quarter amounted to ¥6.16 billion. This result was
mainly due to ¥4.42 billion in long-term debt repayments and ¥1.64 billion in cash dividends paid.

(3) Qualitative Information related to Earnings Forecasts
The Company has made no changes to its full-year consolidated earnings forecasts originally published on May
10, 2013.

-5-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

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

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

(3) Changes of Accounting Policies or Presentation Methods in the Consolidated Financial Statements(Changes in Accounting Policies)
Beginning with fiscal years starting on or after April 1, 2013, companies may apply the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and Guidance on Accounting Standard for
Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012). Beginning with the consolidated first quarter, theCompany has applied this accounting standard. Now, the Company records the amount of plan assets that are
deducted from retirement benefit obligations as a liability related to retirement benefits, with unrecognizedactuarial gains or losses and unrecognized past service costs recorded as liabilities related to retirement benefits.
Further, the Company has revised its calculation method for retirement benefit obligations and service costs,
changing the method of period attribution of the expected retirement benefit amount from a straight-line basis to abenefit formula basis. Further, the Company has changed the calculation method for the discount rate.
With the application of the Accounting Standard for Retirement Benefits, the Company will follow the transitional
treatment as determined in Paragraph 37 of the Accounting Standard for Retirement Benefits, taking the amount of
impact in connection with recording the amount of plan assets that is deducted from retirement benefit obligations
as a liability related to retirement benefits, adding or subtracting to the cumulative adjustment amount related to
the retirement benefits of the cumulative amount in other comprehensive income at the beginning of the firstquarter. In addition, the Company will take the amount of impact in connection with the change to the calculation
method of retirement benefit obligations and service costs to increase or decrease retained earnings at the
beginning of the consolidated first quarter.
As a result of this accounting change, other comprehensive income as of the beginning of the consolidated firstquarter has decreased by ¥982 million, while retained earnings has decreased by ¥671 million.
Further, with respect to retirement benefit costs (service costs/interest costs) of the consolidated first quarter, there
is only an immaterial effect on operating profit, ordinary income and net income before income taxes whencompared to the former accounting method used by the Company.

-6-

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2013)ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term debt
Accrued income taxes
Deferred tax liabilities
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Deferred tax liabilities
Accrued retirement benefits for employees
Liabilities for retirement benefits
Other
Total long-term liabilities
Total liabilities-7-

First Quarter, Current
Consolidated Fiscal Year
(June 30, 2013)

46,693
196,001
47,104
1,554
3,204
4,282
7,967
(1,057)305,751

44,207202,276
47,658
1,660
3,308
3,990
6,754
(1,026)308,829

60,967

61,26730,72620,093
4,475
55,29530,417
19,6994,529
54,64656,870
837
2,249
5,067
(289)
64,734
180,996486,747

61,456
835
2,430
5,014
(264)
69,473
185,387494,216

107,941
25,061
10,408
2,947
21
3,968
219
15,244
165,812112,182
26,149
6,019
1,829
28
2,229
76
16,066
164,581

30,00032,6149,251
10,283−980
83,129248,941

30,00032,664
10,010−12,947
1,070
86,693
251,275

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2013)

The First Quarter, Current
Consolidated Fiscal Year
(June 30, 2013)

Net Assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income (loss)
Unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Cumulative adjustment for retirement benefits
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets

-8-

9,699
10,041
199,160(7,109)211,792

9,699
10,193200,065(6,963)212,994

17,943(6)(1,223)−
16,71250
9,250
237,806
486,747

21,088
(5)
284
(734)
20,632
20
9,292
242,940494,216

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statement of Income)(Cumulative First Quarter)(Millions of yen)
Cumulative First Quarter,
Prior Consolidated
Fiscal Year
(April 1, 2012 June 30, 2012)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Investment profit on equity method
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of non-current assets
Gain on sale of investment securities
Other receivables
Other
Total extraordinary gains
Extraordinary losses
Loss on sale of non-current assets
Loss on disposal of non-current assets
Impairment loss
Loss on sale of investments securities
Loss on valuation of investments securities
Other
Total extraordinary losses
Net Income before income taxes
Income taxes
Deferred taxes
Total income taxes
Net Income before minority interests
Minority interests
Net Income-9-

Cumulative First Quarter,
Current Consolidated
Fiscal Year
(April 1, 2013 June 30, 2013)

166,722
145,898
20,823
16,695
4,128

171,328
149,153
22,17418,004
4,169

51
528
71
87
58
120
918

54
598
74
102
340
151
1,323

266
121
388
4,657

258
128
386
5,106

1
172
−
0
174

22
167
118
−
308

0
30
15
0
130
3
180
4,651
1,415
(351)
1,064
3,587
177
3,409

11
17
−
0
−
−
29
5,385
1,736
(62)
1,674
3,710
183
3,527

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

(Quarterly Consolidated Statements of Comprehensive Income)(Cumulative First Quarter)(Millions of yen)
Cumulative First Quarter,
Prior Consolidated
Fiscal Year
(April 1, 2012 June 30, 2012)
Net Income before minority interests
Other comprehensive income
Unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Adjustments for retirement benefits
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income, parent company
Comprehensive income, minority interests- 10 -

Cumulative First Quarter,
Current Consolidated
Fiscal Year
(April 1, 2013 June 30, 2013)

3,587

3,710

(1,715)18(1,753)
−

3,150
1
1,587
247

(10)

121

(3,461)
126

5,107
8,818

87
38

8,372
445

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Cumulative First Quarter,
Prior Consolidated
Fiscal Year
(April 1, 2012 June 30, 2012)
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Provision for accrued retirement benefits for employees
Increase (decrease) in adjustments for retirement benefits
Interest income and dividend income
Interest expenses
Foreign exchange gain (loss)(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of investments securities
Change in short-term loans (increase)
Payment for acquisition of intangible fixed assets
Other
Cash flows from investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans, net
Proceeds from long-term loans
Repayment of long-term debt
Proceeds from issuance of bondCash dividends paid
Cash dividends paid to minority shareholders
Other
Cash flows from financing activities
Effects of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents accompanying
consolidation
Increase (decrease) in cash and cash equivalents
accompanying changes in fiscal years of consolidated
subsidiaries
Cash and cash equivalents at end of the year

- 11 -

Cumulative First Quarter,
Current Consolidated
Fiscal Year
(April 1, 2013 June 30, 2013)

4,651
1,886
402
339
−
(579)
266
(301)
(3,121)(3,597)
8,136
(891)
7,191
637
(176)
(2,381)
5,271

5,385
2,025
407
−
483
(653)
258
261
(3,424)
952
1,821
(540)
6,976
665
(203)
(2,647)
4,791(4,224)
(3)
(318)
(379)
(414)
(5,339)(1,711)
(25)
(144)
(385)
124
(2,141)(17,731)2,247(4)29,855(1,542)(435)(57)
12,33143−(4,423)−(1,647)(398)
264(6,160)

(893)

843

11,37028,517(2,667)45,816

915

113

3,721

−

44,52443,262

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

(4) Notes related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.
(Segment Information, etc.)
I

Three months ended June 30, 2012 (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

Corporate(Note) 2

To Quarterly
Consolidated
Adjustments
Statements of(Note) 3
Income(Note) 4

Net sales
Sales tocustomers

43,321

54,171

29,03921,08818,948

166,568

153

166,722−−

166,722

Intersegment
sales and transfers

668

331

203

376

205

1,785

1,258

3,043

−

(3,043)−

Total

43,98954,502

29,242

21,464

19,153

168,353

1,412

169,766−(3,043)

166,722

1,401

749

1,473

290

1,272

5,187

77

5,264

(1,127)

(9)

4,128

Segment income(loss)(Notes)1. Other is a business segment consisting of businesses not included in reportable segments, and includes distribution services, information
processing services, and professional services.
2. Corporate segment income represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment translations.
4. The sum of segment income totals, Corporate and Adjustments is equivalent to operating profit as presented in the consolidated statements ofincome.

II Three months ended June 30, 2013 (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

Corporate(Note) 2

To Quarterly
Consolidated
Adjustments
Statements of(Note) 3
Income(Note) 4

Net sales
Sales tocustomers

41,14555,93032,50623,217

18,334

171,134

193

171,328−−

171,328

Intersegment
sales and transfers

753

482

175

432

106

1,950

1,221

3,171

−

(3,171)−

Total

41,89856,41332,681

23,65018,440173,085

1,414

174,499−(3,171)

171,328

1,126

779

1,707

470

1,102

5,186

65

5,252

(1,259)

177

4,169

Segment income(loss)(Notes)1. Other is a business segment consisting of businesses not included in reportable segments, and includes distribution services, information
processing services, and professional services.
2. Corporate segment income represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment translations.
4. The sum of segment income totals, Corporate and Adjustments is equivalent to operating profit as presented in the consolidated statements ofincome.

- 12 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

2. Changes in Reportable Segments(Changes in Business Classifications)
Beginning with the consolidated first quarter, the Company has moved its abrasives business for semiconductorand HDD industries from the Functional Materials segment to the Electronics segment in order to develop newmarkets and expand applications in a segment aligned more closely with the end user. Similarly, the Company has
moved its raw materials business for the cosmetics industries from the Functional Materials segment to the Life &Healthcare segment. This move was made to capitalize on synergies with products created by Hayashibara Co.,
Ltd., which the Company acquired.
Segment information for the consolidated first quarter of the prior period reflects these segment changes.
The following describes the major products and services handled by each reportable segment.
The Functional Materials segment is engaged in the sales of materials for paints/inks, urethane materials, plastic
materials, plastic additives, industrial oil solutions, surfactants, fluorochemicals, encapsulant materials, andsilicone materials and more for the paints/inks, resins, urethane foam, organic synthesis, surfactants,
semiconductor industries.
The Advanced Materials & Processing segment is engaged in the sales of dyestuffs, dyes, functional dyes,
information printing products, thermoplastic resins, thermosetting resins, synthetic rubber, inorganic materials,
plastics products, resins molding tools/dies, external inspection equipment for the dye/additive, information
printing, fiber processing, raw resin material, resin molding, functional film and sheet and other industries.
The Electronics segment is engaged in the sales of pre-processing materials and devices for LCD/semiconductors,
materials for LCD panels, materials and devices for semiconductor assembly, low-temperature/vacuum equipment,
high-function epoxy resins, precision electronics abrasives, and more for the display, touch panel, LCD,
semiconductor, hard disk drive, electronic components, and heavy electrical, industries.
The Automotive & Energy segment is engaged in sales of plastic products, thermoplastic resins, thermosetting
resins, resins molding tools/dies, battery materials, solar cell/secondary battery-related materials and more for the
automotive, automotive component, and energy industries.
The Life & Healthcare segment is engaged in the sales of pharmaceutical/agricultural chemicals and materials,
research products, in vitro diagnostics, enzymes, food additives, additives for cosmetics, feeds/fertilizers for thepharmaceutical, food, and cosmetics industries. In addition, this segment sells cosmetics, health foods, and beauty
foods directly to consumers.
(Significant Fluctuations in Shareholders’ Equity)
No matters to report.
(Significant Subsequent Events)
No matters to report.

- 13 -

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2014

4. Supplementary Information(1) Overseas Sale
Three months ended June 30, 2012 (consolidated)
I

Overseas sales(Millions of yen)

Northeast Asia

Southeast Asia

North America

Europe & Others

41,41921,045

5,617

4,105

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

Total
72,188
166,722

24.8

12.6

3.4

2.5

Northeast Asia

Southeast Asia

North America

Europe & Others

43,51827,753

6,386

5,161

43.3

Three months ended June 30, 2013 (consolidated)
I

Overseas sales(Millions of yen)

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

Total
82,819171,328

25.4

16.2

3.7

3.0

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

48.3