Consolidated Financial Statements for the First Quarter of Fiscal Year Ending March 31, 2010
July 30, 2009
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, Osaka (First Sections)
Code number: 8012
(http://www.nagase.co.jp)
Representative:
Hiroshi Nagase, Representative Director and President
Contact:
Masanori Furukawa, Manager, Corporate Accounting Division
Filing of Quarterly Report (scheduled): August 12, 2010
(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, 2010 (April 1, 2009 toJune 30, 2009)(1) Consolidated Operating Results(Percentages represent change compared with the previous fiscal year.)Net sales
Operating income
Ordinary income
Net income%

Millions of yen

Three months ended June 30, 2009
Three months ended June 30, 2008

131,520
187,709%

Millions of yen(29.9)—

Earnings
per share

1,609
4,673

(65.6)

2,072
5,396

—%

Millions of yen(61.6)

997
3,121

—

(68.1)—

Earnings per share(diluted)
YenYen—

7.76
24.28

Three months ended June 30, 2009
Three months ended June 30, 2008%

Millions of yen

24.27(2) Consolidated Financial Position
Total assets

Net assets

Net assets per share%
Yen
As of June 30, 2009
341,689
199,30556.2
1,492.97
As of March 31, 2009
340,968
191,93154.1
1,435.88(Reference) Equity capital: As of June 30, 2009: ¥191,937 million (As of March 31, 2009: ¥184,599 million)
Millions of yen

2.

Net worth ratio

Millions of yen

Dividends(Record date)

1Q

Dividends per share
3Q

InterimFiscal 2008
Fiscal 2009Fiscal 2010 (est.)

Fiscal Year-End

AnnualYen

Yen

Yen

Yen

Yen——

8.00

—

8.00

16.00

7.00

—

7.00

14.00

Note: Revisions to projected dividends during the three months ended June 30, 2009: No

3.

Projected Consolidated Results for the Fiscal Year ending March 31, 2010
(April 1, 2009 – March 31, 2010)(Percentages represent change compared with the previous fiscal year or cumulative consolidated second quarter, as applicable)

Net sales

Operating income

Ordinary income

EarningspershareNet income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Yen

271,000(29.5)

4,000(55.1)

4,400(55.3)

2,300(59.7)

17.89

Full year
564,000(21.1)
8,400(32.9)
9,400(28.0)
5,000 (13.9)
Note: Revisions to projected consolidated results during the three months ended June 30, 2009: Yes

38.89

Cumulative consolidated
second quarter－1－4. Other(1) Changes in major subsidiaries during the period (changes in specified subsidiaries due to changes in thescope of consolidation): None
(2) Use of simplified accounting methods or special accounting methods for preparation of quarterly financialstatements: No(3) Changes in accounting principles, procedures and presentation methods in connection with the preparationof consolidated financial statements(Recorded under “Changes in important items considered fundamental to the preparation of consolidated
financial statements.”)i.
Changes in accordance with revisions to accounting and other standards: Noii.
Changes in items other than (i) above: Yes
See “4. Other” of “Qualitative Information and Financial Statements” on page 4.
(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)Three months ended June 30, 2009:
138,408,285 sharesYear ended March 31, 2009:
138,408,285 sharesii.
Number of treasury stock as of the fiscal period end
Three months ended June 30, 2009:
9,847,902 sharesYear ended March 31, 2009:
9,846,589 sharesiii.
Average number of shares during the period:
Three months ended June 30, 2009:
128,560,758 shares
Three months ended June 30, 2008:
128,569,083 shares
Notes: Cautionary Remark Regarding Forward-Looking Statements
1. The projected second quarter and full-year consolidated results for fiscal 2009 have been revised from the projections
announced in April 30, 2009.
2. Statements made in this document with respect to projected results and other statements that are not of historical fact
are forward-looking statements based on the assumptions, projections and plans of the Company as of the date of thisreport. Readers are advised that actual results may differ materially from projections due to risks and uncertainties
arising from a variety of factors, including shifts in global economic and competitive conditions, foreign currency
exchange rates and interest rates.

－2－1. Business Performance(1) Analysis of Business Performancea. General Summary of Results
During the first quarter of the fiscal year ending March 31, 2010, the Japanese economy was anticipated to see further
harsh conditions characterized by sluggish production despite some industries showing signs of recovery due to thepromotion of inventory adjustments.
Against this backdrop, domestic sales for the first quarter fell 23.6 percent compared with the corresponding period of
the previous fiscal year to ¥82.84 billion and overseas sales dropped 38.6 percent to ¥48.67 billion, for total net salesof ¥131.52 billion, a 29.9 percent decrease.
On the earnings front, operating income plunged 65.6 percent year on year to ¥1.60 billion and ordinary income fell
61.6 percent to ¥2.07 billion due to the substantial sales drop, despite the Company’s efforts to reduce selling, generaland administrative expenses. As a result, net income for the first quarter of the fiscal year under review declined 68.1
percent to ¥0.99 billion.

b. Segment Summary
The classification of business segments has been somewhat changed from the first quarter of the fiscal year underreview. Year-on-year figures have been calculated based on a reclassification of the previous business segments into
the new categories.
[Chemicals] Sales: ¥52.42 billion, a 29.9 percent decrease from the same period of the previous fiscal year
On the back of the economic recession, decreased demand throughout the overall chemicals industry affected
Nagase’s chemical businesses across the board, with substantial sales drops being recorded by the chemicals business
which handles coating materials, urethane materials, plastic raw materials and additives; the colors and imaging
business which handles dyestuffs, pigments and other products related to color; and the specialty chemical business
which handles a wide range of organic synthesis materials such as surfactants, industrial oil solutions, silicone andfluorochemicals.
[Plastics] Sales: ¥38.39 billion, a 42.2 percent decrease from the same period of the previous fiscal year
During the period under review, overseas sales in the business areas of Northeast Asia, Southeast Asia and North
America dropped substantially. In Japan, sales of materials for precision instruments, electronics and automotive
applications shrank, while sales of building and packaging materials-related products decreased. As a result, overallsales in this segment plunged.
[Electronics] Sales: ¥26.25 billion, a 18.7 percent decrease from the same period of the previous fiscal year
Sales of display-related products, including LCD display films and touch-panel components grew significantly during
the period under review. However, sales of precision abrasive materials for hard disks and silicon wafers as well as ofchemicals and appliances for manufacturing semiconductors were stagnant, while demand for formulated epoxy resinfor heavy electric machinery remained on par with the corresponding period of the previous fiscal year. Accordingly,
overall sales dropped, reflecting sluggish sales of products for the automobile and light electrical equipment markets.
[Life Sciences] Sales: ¥14.15 billion, a 3.0 percent increase from the same period of the previous fiscal year
In the Life Sciences segment, sales of pharmaceutical raw materials and intermediates as well as agricultural raw
materials in the fine chemicals business edged up. However, sales in the beauty care products business, which handles
cosmetics and health foods, edged down, resulting in the overall sales on par with the corresponding period of theprevious fiscal year.
[Other] Sales: ¥0.29 billion, a 33.2 percent decrease from the same period of the previous fiscal year
No specific items to report in this segment during the period under review.

－3－2. Qualitative Information on Consolidated Financial Position(1) Assets, Liabilities and Net Assets
Total assets increased ¥0.72 billion to ¥341.68 billion during the period under review. This was mainly attributable toan increase in marketable securities due to accumulated current assets on hand as well as increased current prices ofinvestment account securities despite the decrease in trade receivables and inventories.
Total liabilities decreased ¥6.65 billion compared with the corresponding period of the pervious fiscal year to ¥142.38
billion, reflecting decreased short-term loans and notes and accounts payable despite an increase in deferred tax
liability.
Net assets rose ¥7.37 billion to ¥199.3 billion due to the increase in net unrealized holding gain on securities.
As a result, the net worth ratio increased 2.1 percentage points to 56.2 percent from 54.1 percent at the end of theprevious fiscal year.
(2) Cash FlowsNet cash provided by operating activities was ¥22.53 billion due to decreases in working capital as well as net income
before income taxes and minority interests.
Net cash used in investing activities was ¥2.09 billion, mainly as a result of purchasing property andequipment.
Net cash used in financing activities was ¥6.96 billion, reflecting a decrease in short-term loans and dividendpayments.
As a result, the balance of cash and cash equivalents at June 30, 2009 was ¥50.07 billion, an increase of ¥13.93
billion from the end of the previous fiscal year.

3. Qualitative Information on Projected Consolidated Results
The projected second quarter and full-year consolidated results for fiscal 2009 have been revised from theprojections announced in April 30, 2009. Please refer to the “Notice Concerning the Revision of Earnings Forecasts”
announced on July 30, 2009 for details.

4. Other(1) Changes in Significant Subsidiaries during the Period (Changes in specified subsidiaries due to changes inthe scope of consolidation)
None applicable(2) Use of Simplified Accounting Methods or Special Accounting Methods for Preparation of Quarterly
Financial Statements
No(3) Changes in Consolidated Accounting Rules, Procedures, Presentation Method, etc., for the Quarterly
Consolidated Financial Statements
a. The Company has been applying special quarterly accounting methods to determine income tax payments,
including calculations for some consolidated subsidiaries that use the estimated annual effective tax rate based on
the normal effective statutory tax rate. However, such accounting methods have been replaced from the period
under review with the basic accounting procedures used for the full year in order to ensure the more appropriate
calculation of quarterly tax expenditures. The impact of such changes on the Company’s financial performance isminor.
b. The classification of business segments has been partially changed from the first quarter of the fiscal year
under review.

－4－