Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023
<Under Japanese GAAP>May 9, 2023

These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

Stock exchange listing: Tokyo (Prime Market)
NAGASE & CO., LTD.
Code number:8012
URL (https://www.nagase.co.jp/english/)Representative:
Hiroyuki Ueshima, Representative Director and President
Contact:
Yoshihisa Shimizu, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Annual general meeting of stockholders: June 20, 2023
Start of distribution of dividends (scheduled): June 21, 2023
Securities report filing (scheduled): June 21, 2023
Supplementary documents: Yes
Investors’ meeting: Yes
1. Consolidated Results for the Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results
Net salesFYE March 2023
FYE March 2022
(Note)

Millions of yen

912,896780,557

Comprehensive income

Gross profit
%

17.0
24.8

Millions of yen

155,410
139,494(Note: Amounts have been rounded down to the nearest million yen.)(% = year-on-year change)

Operating income
%

11.4
21.7

Millions of yen%

33,37135,263-5.4
60.9

Profit attributable toowners of the parent

Ordinary income
Millions of yen%

32,52836,497-10.9
59.7

Millions of yen

23,62525,939

%

-8.9
37.8

FYE March 2023: ¥37,994 million (32.8%)
FYE March 2022: ¥28,608 million (10.3% decrease)

Earnings per share

Earnings per share(diluted)

Yen

Yen

199.54213.46FYE March 2023
FYE March 2022
(Reference)Equity in earnings of affiliates

Ordinary income/total assets

Return on equity
%

%

6.6
7.7

−
−

Operatingincome/net sales
%

4.3
5.3

3.7
4.5

FYE March 2023: ¥318 million
FYE March 2022: (¥1,031) million(2) Consolidated Financial Position
Total assets
Millions of yen

762,688739,720FYE March 2023
FYE March 2022
(Reference)Equity capital

Shareholders’equity ratio

Net assets
Millions of yen

378,388355,092

Net assets per share
%

Yen

48.2
46.5

3,139.26
2,868.22

FYE March 2023: ¥367,675 million
FYE March 2022: ¥344,261 million(3) Consolidated Cash FlowsFYE March 2023
FYE March 2022

Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents,
end of the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

9,414(17,776)(8,031)(7,664)(17,247)
27,28240,33153,336

2. Dividends
Annual Dividends per Share
Fiscal
2Q
3Q
year end

1Q
Yen

FYE March 2022
FYE March 2023
FYE March 2024 (forecast)

Yen

Yen

24.00
30.00
40.00

−
−
−

Yen

30.00
40.00
40.00

−
−
−

Total dividends
paid(full fiscal year)

AnnualYen

Payout ratio(consolidated)

Millions of yen

54.00
70.00
80.00

Dividends/
net assets(consolidated)

%

6,514
8,245

%

25.1
34.9
38.0

1.9
2.3

(Note) A year-end dividend for FYE March 2022 includes regular dividend of ¥24 per share and special dividend of ¥6 per share.
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(% = year-on-year change)

Net sales

Full fiscal year

OperatingincomeGross profit

Millions of yen%

958,000

4.9

Millions ofyen

171,000%

10.0

Millions ofyenProfit attributableto owners of theparentOrdinary
income%34,500 3.4

Millions ofyen%

32,600 0.2

Millions ofyen

24,000Earnings
per
share

%

Yen

1.6

209.35* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of
consolidation): No
New: ― (Company name:)
Excluded: ― (Company name:)(2) 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: Yes
ii. Changes in items other than (i) above: Noiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No(Note) For details, please refer to 3. Consolidated Financial Statements and Notes (5) Notes Related to Consolidated Financial Statements(Change in Accounting Policy), on P.17 of this document.

(3) Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)
117,908,285 shares March 31, 2022
120,908,285 shares
March 31, 2023
ii.

iii.

Number of treasury stock as of the fiscal period end
March 31, 2023
786,718 shares

March 31, 2022

881,767 shares

Average number of shares during the period
118,398,261 shares
March 31, 2023

March 31, 2022

121,522,286 shares(Note) The number of treasury shares as of the fiscal period end includes Company shares held by the Stock-Granting
Trust for Directors (292,200 shares as of March 31, 2023). Treasury stock deducted from the calculation of the average
number of shares during the period includes Company shares held by the Stock-Granting Trust for Directors (22,477
shares as of March 31, 2023).

* These consolidated financial statements are not subject to audit by an independent audit corporation* 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.
For matters related to earnings forecasts, please refer to 1. Business Performance, (4) Future Outlook, on P.6 of this document.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Attachments
1. Business Performance2(1) Review of Business Performance2(2) Review of Financial Position

4(3) Summary of Cash Flows

5(4) Future Outlook

6(5) Dividend Policy and Dividends for the Fiscal Years Ending March 2022 and 2023

7

2. Basic Policy on the Selection of Accounting Standards

7

3. Consolidated Financial Statements and Notes

8(1) Consolidated Balance Sheets

8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

10(3) Consolidated Statements of Changes in Shareholders’ Equity

13(4) Consolidated Statements of Cash Flows

15(5) Notes Related to Consolidated Financial Statements

17(Assumption for Going Concern)

17(Change in Accounting Policy)

17(Additional Information)

17(Segment Information, etc.)

18(Per-Share Data)

24(Significant Subsequent Events)

24

1

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

1. Business Performance(1) Review of Business Performancea.

General Summary of Results

During the consolidated fiscal year under review, the global economy continued to recover, supported by the resumption of
economic activities after the COVID-19 pandemic. However, concerns remained regarding economic slowdowns due to risinggeopolitical risks associated with the prolonged deterioration of the situation in Ukraine, soaring resource prices, and risinginterest rates.
As an overview of the regions in which our group does business, in Greater China, the rapid spread of infections immediately
after the elimination of the Zero-COVID policy affected manufacturing operations and other businesses. Both the economy andeconomic activity are on a path toward recovery, however, as infections in the country have since been contained. In theAmericas, the economy slowed moderately due to higher corporate costs caused by inflation and the tightening of monetary
policy to control inflation. These policies led to restrained investment in housing and capital equipment. The ASEAN economy
experienced certain negative factors, including higher import prices due to currency weakening caused by higher interest rates
in the U.S. However, consumer spending is increasing and the regional economy is growing at a firm pace. In Japan, despite
inflationary trends due to the passing on of higher raw materials and energy costs, domestic demand grew and the economy
found a path toward recovery, supported by the easing of COVID-19 restrictions and inbound demand as a result of the weakeryen.
In this environment, earnings for the current consolidated fiscal year were as follows.
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2022)(March 31, 2023)(Millions of yen)
ChangeChange (%)

Net sales

780,557

912,896

132,339

17.0

Gross profit

139,494

155,410

15,915

11.4

Operating income

35,26333,371(1,891)(5.4)

Ordinary income

36,49732,528(3,969)(10.9)

Profit before income taxes
Profit attributable to owners

39,55733,137(6,419)(16.2)

25,93923,625(2,314)(8.9)
of the parent
・ Despite the weaker yen, operating income fell, mainly due to a decline in gross profit margin and an increase in selling,
general and administrative expenses.
・ In terms of segment performance, the Life & Healthcare segment recorded an increase in profit, driven by the Prinova Group,
while the Functional Materials and Mobility segments also recorded strong results. In contrast, the Advanced Materials &Processing and Electronics & Energy segments recorded a decline in profits. For details, see b. Segment Summary.
・ Profit attributable to owners of the parent decreased ¥2.3 billion to ¥23.6 billion, mainly due to the decrease in operating
income as well as an increase in interest expenses resulting from higher interest rates.

2

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023b.

Segment Summary

The following describes performance by segment.
Functional Materials
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2022)(March 31, 2023)(Millions of yen)
ChangeChange (%)

Net sales

99,874

112,092

12,21812.2

Gross profit

19,81922,372

2,552

12.9

Operating income

7,823

8,810

986

12.6

・ Sales increased for coating and urethane raw materials, due in part to soaring market prices and the weaker yen
・ Sales increased for raw materials for industrial oil solutions and resins
・ Sales increased for raw materials for the electronics industry, including semiconductor-related products
・ Operating income increased due to an increase in gross profit
Advanced Materials & Processing
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2022)(March 31, 2023)(Millions of yen)
ChangeChange (%)

Net sales

257,283

265,024

7,740

3.0

Gross profit

32,31331,767

(546)

(1.7)

Operating income

10,8589,342(1,515)(14.0)

Despite the positive impact of the weaker yen on sales, profitability decreased for resin sales to the office equipment,
appliance, and video game device market due to a reactionary decline stemming from increased profit ratios in connection
with soaring market conditions in the previous fiscal year
・ Sales of pigments and additives were flat; however, sales of resins for industrial and packaging applications were firm
・ Sales decreased for conductive materials and digital print processing materials
・ Operating income decreased due to higher selling, general and administrative expenses
・Electronics & Energy
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2022)(March 31, 2023)(Millions of yen)
ChangeChange (%)

Net sales

128,131

136,975

8,844

6.9

Gross profit

29,76730,770

1,003

3.4

Operating income

10,2789,273(1,004)(9.8)

・ Sales increased for materials related to semiconductors
・ Sales of photolithography materials for displays were slow
・ Sales of formulated epoxy resins were slow for semiconductor applications and mobile devices
・ Although gross profit increased, operating income decreased due to higher selling, general and administrative expenses

3

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Mobility
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2022)(March 31, 2023)(Millions of yen)
ChangeChange (%)

Net sales

103,389

125,560

22,171

21.4

Gross profit

12,71814,432

1,713

13.5

Operating income

4,131

4,794

662

16.0

・ Sales increased for resins due to the boosted automobile production and the weaker yen, etc.
・ Sales increased for functional materials and functional components for interior and exterior fittings and electrification
・ Operating income increased due to an increase in gross profit
Life & Healthcare
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2022)(March 31, 2023)(Millions of yen)
ChangeChange (%)

Net sales

191,634

273,161

81,52742.5

Gross profit

44,75755,907

11,15024.9

Operating income

9,429

10,581

1,151

12.2

・ Prinova Group performance remained firm as a whole, due in part to particularly strong sales of food materials in the firsthalf of the year.
・ Sales increased for Hayashibara’s food materials, primarily TREHA™, while sales of cosmetics materials, primarily for AA2G
™ , decreased due to lower demand, mainly overseas
・ Sales increased for pharmaceutical raw materials and intermediates and cosmetic materials
・ Operating income increased due to an increase in gross profit
OthersNo special matters to disclose.

(2) Review of Financial Position
Prior Consolidated Current Consolidated
Fiscal Year
Fiscal Year
(March 31, 2022)(March 31, 2023)(Millions of yen)
ChangeChange (%)

Current assets

514,286

530,132

15,846

3.1

Non-current assets

225,434

232,556

7,121

3.2

Total assets

739,720762,688

22,968

3.1

Liabilities

384,628

384,300

(327)

(0.1)

Net assets

355,092

378,388

23,295

6.6

46.5

48.2

+1.7p

－

Shareholders’ equity ratio (%)

・ Current assets increased mainly due to an increase in inventories and accounts receivable, despite a decrease in cash anddeposits
・ Non-current assets increased due to an increase in property, plant and equipment and intangible fixed assets, despite adecrease from sales of investments in securities
・ Liabilities decreased due to decrease in accounts payable and short-term loans, offset in part by increases in commercial
paper, lease obligations, etc.
・ Net assets increased mainly due to the recording of profit attributable to owners of the parent and an increase in translation
adjustments, despite a decrease in net unrealized holding gain on securities.
・ As a result, the Company recorded a shareholders’ equity ratio of 48.2%, up 1.7 points compared to 46.5% from the end of
the prior consolidated fiscal year

4

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(3) Summary of Cash Flows(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2023)

Prior Consolidated Fiscal Year
(March 31, 2022)
Cash flows from operating activities(17,776)

9,414

Cash flows from investing activities(7,664)(8,031)

Cash flows from financing activities

27,282(17,247)

・ Net cash provided by operating activities was mainly due to ¥33.1 billion income before taxes and ¥12.3 billion in reserveof funds due to depreciation and amortization, offset in part by a ¥20.0 billion decrease in cash due to an increase in working
capital and ¥14.2 billion in income taxes paid.
・ Net cash used in investing activities was mainly due to ¥12.0 billion in purchases of property, plant and equipment and ¥4.8
billion in purchases of intangible fixed assets, offset in part by the proceeds of ¥7.4 billion from sales of investments insecurities and ¥2.0 billion from sales of shares of subsidiaries resulting in change in scope of consolidation
・ Net cash used in financing activities was mainly due to ¥8.6 billion in repayments of long-term loans, ¥7.1 billion in paymentsof dividends, and ¥5.6 billion in purchases of treasury stock, offset in part by proceeds of ¥5.0 billion in long-term loans
FYE March
2019

FYE March
2020

FYE March
2021

FYE March
2022

FYE March
2023

54.2％

49.9％

51.5％

46.5％

48.2％

34.7％

25.9％

33.3％

29.5％

31.3％

Interest-bearing debt to cash flow
ratio (years)

4.9

4.1

5.8

-

19.1

Interest coverage ratio (times)

10.4

23.9

19.1

-

3.1

Shareholders’ equity ratio
Shareholders' equity ratio basedon market value

Shareholders’ equity ratio: Equity capital/total assets
Shareholders' equity ratio based on market value: Market capitalization/total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/operating cash flow
Interest coverage ratio: Operating cash flow/interest payments(Note) 1. Indicators are calculated based on consolidated figures.
2. Market capitalization is calculated using the closing price at the end of the year multiplied by the number ofoutstanding shares at the end of the year (less treasury stock at cost).
3. Operating cash flow is net cash provided by operating activities as shown in the consolidated statements of cash
flows. Interest-bearing debt is all liabilities in the consolidated balance sheets for which interest is payable. Interest
payments are the amount of interest paid as presented in the consolidated statements of cash flows.
4. Interest-bearing debt to cash flow ratio or interest coverage ratio are not presented for the fiscal year ended March
31, 2022, as operating cash flow was negative.

5

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(4) Future Outlook
a. Performance Forecast for the Fiscal Year Ending March 2024
We project that the environment surrounding the NAGASE Group in the next fiscal year will see an economic uptick with thenormalization of social and economic activities under an assumption of the new normal. At the same time, prices are expected
to remain high for crude oil, other energy resources, and raw materials due to the prolonged deterioration of the situation in
Ukraine. Concerns also remain regarding global inflation and tightening measures that might constrain consumer spending andeconomic activities. In this environment, we expect business fields related to the NAGASE Group will be affected by adjustments
of inventory accumulated due to supply chain disruptions. On the other hand, we also anticipate the impact of economic
normalization driven by inbound travel and other factors, and we have formulated the following assumptions for the next fiscal
year.
In the food-related business, which we identified as a focus business under the Medium-term Management Plan ACE 2.0, we
expect profitability to improve due to increased sales from the full-scale operation of Prinova Group's sports nutrition contract
manufacturing plant and projected inbound effects at Hayashibara. In the semiconductor-related products business, high-end
models have entered into an inventory adjustment phase in the supply chain which we expect will recover toward the end of the
fiscal year. In the automobile-related business, we expect shortages in the supply of certain general-purpose semiconductors topersist. However, we believe performance will remain strong as intermediate inventories of plastic materials and other materials
will be liquidated, while automobile production volume should recover. As we advance various measures, including investments
in research and development and investments related to DX, we will engage in company-wide business replacements andreallocations of resources, improving profitability and efficiency to secure a certain level of profit increase.
These forecasts have been developed based on foreign exchange rates of ¥135 to the U.S. dollar and ¥20 to the RMB.
Further, these forecasts were calculated based on information available at the time and on reasonable determinations ofconditions. Actual results may vary significantly due to a variety of factors, including business conditions overseas and in Japanand exchange rate trends. Any issues that require disclosure in the future will be disclosed promptly if important developments
relating to our forecasts for the fiscal year ending March 2024 occur.
We are reviewing and carefully considering our key goal indicators (KGIs) and key performance indicators (KPIs) under our
Medium-Term Management Plan ACE 2.0 in light of changes in the external environment and other factors.
Net sales

Gross profit

Operating income Ordinary income(Millions of yen)
Profit attributable toowners of the parent

FYE March 2024 Forecast

958,000

171,000

34,50032,60024,000FYE March 2023 Actual

912,897

155,41033,371

32,52823,625

Change＋4.9％＋10.0％

＋3.4％

＋0.2％

＋1.6％

b. Operating Income Forecast by Segment(Millions of yen)FYE March 2023
ActualFunctional Materials

FYE March 2024
Forecast

Change

8,811

8,900

＋1.0％

9,342

11,000＋17.7％

Electronics & Energy

9,274

10,600＋14.3％

Mobility

4,795

5,100

＋6.4％

Life & Healthcare

10,581

11,300＋6.8％

Others(9,431)(12,400)-

Total Operating Income

33,371

34,500＋3.4％

Advanced Materials &Processing

6

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(5) Dividend Policy and Dividends for the Fiscal Years Ending March 2023 and 2024
Dividends are paid based on consolidated cash flows and investment conditions. Our basic policy is to pay continuously
increasing dividends in consideration of consolidated earnings and financial structure, while improving profitability andstrengthening our corporate structure. In addition, we will consider the flexible implementation of share buybacks with an eye
toward efficiency.
Based on this policy, and after considering our business performance and financial position for the current consolidated fiscal
year, we revised the year-end dividend for the current consolidated fiscal year to ¥40 per share, an increase of ¥10 per sharecompared with the previous forecast of ¥30 per share. As a result, the scheduled full-year cash dividend including the interim
dividend will amount to ¥70 per share, an increase of ¥16 per share from the prior fiscal year.
After a comprehensive consideration of our stability and continuity of dividend payments, we forecast a full-year dividend of¥80 per share for the next fiscal year. This dividend will consist of a ¥40 per share interim dividend and a ¥40 per share yearend dividend.

2. Basic Policy on the Selection of Accounting Standards
The NAGASE Group intends to use Japanese accounting standards for the time being to allow for inter-company comparability.
We have been studying the adoption of International Financial Reporting Standards (IFRS) for some time, and we plan to makethe appropriate policy choice in the future, considering external trends and other factors.

7

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)
Prior Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2022)(March 31, 2023)
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
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)
Land
Other
Accumulated depreciation
Other (net)Total 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

8

54,211
289,862
142,5902,401
12,533
13,935(1,248)514,286

40,897302,105
152,504
2,446
14,77018,429(1,021)
530,132

61,430(36,003)
25,42764,794(47,271)
17,523
20,39830,318(21,112)
9,205
72,55464,095(37,018)
27,07665,005(47,686)
17,31818,83942,415(23,585)
18,82982,06429,492
5,912
29,66465,07029,004
4,337
35,58768,92875,600
24
3,139
3,572
5,583
(112)
87,809225,434
739,720

69,743
17
2,645
3,857
5,475
(176)
81,562
232,556
762,688

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2022)
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
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Provision for directors’ stock benefit
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 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

9

Current Consolidated Fiscal Year
(March 31, 2023)

149,036
73,121
8,752
25,00010,000
7,100
7,648
497
26,678307,836

140,438
66,117
1,056
38,000
2,913
6,985
371
30,321
286,203

20,00028,244
1,011
12,31013,238
1,987
76,791
384,628

30,00032,697
9,763
10,36013,19765
2,012
98,097384,300

9,699
10,639280,015(1,534)
298,820

9,699
10,636290,279(1,550)309,064

31,732
178
13,690(161)
45,441
10,830355,092
739,720

28,928(7)30,414(726)
58,61010,713378,388762,688

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
Employee salaries and allowances
Provision for accrued bonuses for employees
Provision for accrued bonuses for directors
Depreciation and amortization other than amortizationof goodwill
Retirement benefit expenses
Provision for retirement benefits for directors
Allowance for doubtful accounts
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on receipt of donated non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and affiliates
Gain on sales of investments in capital of subsidiaries
and affiliates
Gain on change in equity
Subsidy income
Other
Total extraordinary gains
Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Loss on impairment of fixed assets
Loss on sales of investment securities
Loss on valuation of investments securities
Loss on sales of shares of subsidiaries and affiliates
Other
Total extraordinary losses

10

Current Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)

780,557
641,062
139,494

912,896
757,486
155,410

19,90733,977
4,522
287

22,95338,839
4,421
396

6,716

7,554

769
42
612
2,478
34,918104,231
35,263

1,443
24
333
2,545
43,526122,038
33,371

156
1,395
272
1,283
822
3,929

197
1,537
243
12
318
656
2,967

1,176
1,031
486
2,695
36,497

3,211
598
3,810
32,528

16
719
7,037
-

144
6,587
52

314

147

75
229
8,392

449
25
7,406

177
453
2,974
6
1,436
59
224
5,333

87
998
2,838
7
2,120
466
277
6,797

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

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

Prior Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)
39,557
12,826(141)
12,684
26,872932
25,939

11(Millions of yen)
Current Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)
33,137
9,621
(694)
8,927
24,210584
23,625

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)
Profit for the period
Other comprehensive income
Net unrealized holding loss on securities
Deferred gain (loss) on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive gain 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

12

Current Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)

26,872

24,210(11,844)106
13,623(430)(2,794)(186)
16,852
(564)

282

477

1,736
28,60813,78437,994

26,482
2,126

36,8381,156

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(3) Consolidated Statements of Changes in Shareholders’ Equity
Prior Consolidated Fiscal Year (April 1, 2021 - March 31, 2022)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Less treasury stock, at
cost

Retained earnings

10,646

265,920

Total shareholders’equity(1,503)284,763

ChangesCash dividends(5,876)(5,876)

Profit attributable to ownersof the parent

25,93925,939Purchase of treasury stock(6,006)(6,006)

0

0

5,975

-

Disposal of treasury stock0

Cancellation of treasury
stock

(0)

Equity transactions with
non-controlling interests

(0)

(0)

Changes in scope of
consolidation

(6)

(6)

(5,975)

Changes in scope of equity
affiliates

7

7

Changes other thanshareholders’ equity
accounts (net)Total changes
Balance, end of period-(6)

14,094(30)

14,057

9,699

10,639280,015(1,534)

298,820

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

43,576

72

Translation
adjustments
1,006

Remeasurementsof defined benefit
plans

268

Total
Non-controlling
Total net assets
accumulated
interests
othercomprehensive
income44,924

8,743

338,431

ChangesCash dividends(5,876)

Profit attributable to ownersof the parent

25,939Purchase of treasury stock(6,006)

Disposal of treasury stock0

Cancellation of treasury
stock

-

Equity transactions with
non-controlling interests(0)

Changes in scope of
consolidation(6)

Changes in scope of equity
affiliates

7

Changes other thanshareholders’ equity
accounts (net)(11,843)

106

12,684

(430)

516

2,086

2,603

Total changes(11,843)

106

12,684

(430)

516

2,086

16,661

Balance, end of period

31,732

178

13,690(161)

45,441

10,830355,092

13

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Current Consolidated Fiscal Year (April 1, 2022 - March 31, 2023)(Millions of yen)
Shareholders’ equity
Common stock
Balance, beginning of period

Capital surplus

9,699

Retained earnings

10,639Less treasury stock, atcost

280,015

Total shareholders’equity(1,534)

298,820

ChangesCash dividends(7,150)(7,150)

Profit attributable to ownersof the parent

23,62523,625Purchase of treasury stock
Cancellation of treasury
stock(5,645)(5,662)(5,662)5,645-

Equity transactions with
non-controlling interests

(0)

(0)

Changes in scope of
consolidation

(3)

(3)

Changes in scope of equity
affiliates

(330)

(330)

Changes in fiscal year-end
of consolidated subsidiaries

(234)

(234)

Changes other thanshareholders’ equity
accounts (net)Total changes
Balance, end of period-(3)10,264(16)

10,244

9,699

10,636290,279(1,550)309,064

Accumulated other comprehensive income

Balance, beginning of period

Net unrealized
holding gain on
securities

Deferred gain
on hedges

31,732

178

Translation
adjustments
13,690Remeasurementsof defined benefit
plans

(161)

Total
Non-controlling
Total net assets
accumulated
interests
othercomprehensive
income45,441

10,830355,092

ChangesCash dividends(7,150)

Profit attributable to ownersof the parent

23,625Purchase of treasury stock(5,662)

Cancellation of treasury
stock

-

Equity transactions with
non-controlling interests(0)

Changes in scope of
consolidation(3)

Changes in scope of equity
affiliates(330)

Changes in fiscal year-end
of consolidated subsidiaries(234)

Changes other thanshareholders’ equity
accounts (net)(2,804)(186)

16,723(564)

13,169(117)

13,051

Total changes(2,804)(186)

16,723(564)

13,169(117)

23,295

Balance, end of period

28,928(7)30,414(726)

58,61010,713378,388

14

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(4) Consolidated Statements of Cash Flows
Prior Consolidated
Fiscal Year
(April 1, 2021 March 31, 2022)
Operating Activities
Income before income taxes
Depreciation and amortization other than amortization of
goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Subsidy income
Share of loss (gain) of entities accounted for using equity
methodGain on change in equity
Decrease in retirement benefit liability
Increase in retirement benefit asset
Interest and dividend income
Interest expenses
Exchange gain, net
Gain on sales of investment securities, investments in capital,
shares of subsidiaries and affiliates, and investments in capital ofsubsidiaries and affiliates, net
Loss on valuation of investment securities, investments incapital, shares of subsidiaries and affiliates, and investments incapital of subsidiaries and affiliates, net
Increase in notes and accounts receivable
Increase in inventories
Increase (decrease) in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash (used in) provided by operating activities
Investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible fixed assets included in other assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Proceeds from sales of investments in capital
Purchases of shares of subsidiaries resulting in change in scopeof consolidation
Proceeds from sales of shares of subsidiaries resulting in changeof scope of consolidation
Increase in short-term loans receivable included in other current
assets, net(Increase) decrease in time deposits, net
Proceeds from subsidy income
Payments of leasehold and guarantee deposits
Other
Net cash used in investing activities

15(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2022 March 31, 2023)

39,55733,137

11,216

12,377

2,974
2,478
(75)

2,838
2,545
(25)

1,031

(318)

(599)
(869)
(1,551)
1,176
(778)

(449)
(609)
(55)
(1,734)
3,211
(891)

(7,285)(6,312)

1,436

2,120

(34,234)(49,346)
20,465
4,859(9,544)
1,926(1,202)(8,956)(17,776)(5,171)(1,275)(13,584)(1,462)
24,341
2,418(3,058)(14,286)
9,414(8,830)326(1,624)(1,317)
7,736
890(12,029)
540(4,888)
(437)
7,474
178

(3,848)

-

587

2,040

(83)

(623)

(137)
75
(1,352)(86)(7,664)

337
25
(650)
(8,031)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2022 March 31, 2023)

Prior Consolidated
Fiscal Year
(April 1, 2021 March 31, 2022)
Financing activities
Increase (decrease) in short-term loans, net
Increase in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by (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
Decrease in cash and cash equivalents resulting from changes infiscal year-end of consolidated subsidiaries
Cash and cash equivalents, at end of the period

16

33,32517,0001,900(12,039)(6,006)(5,876)(543)(477)
27,282
2,942
4,783
48,553(11,961)
13,0005,000(8,623)
10,000(10,000)(5,662)(7,150)(1,133)(716)(17,247)
3,064(12,800)
53,336-(204)

53,33640,331

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

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

(Change in Accounting Policy)(Application of Accounting Standard for Fair Value Measurement)
As of the beginning of the current consolidated fiscal year, the Company has adopted Implementation Guidance on AccountingStandard for Fair Value Measurement (ASBJ Guidance No. 31, June 17, 2021). In accordance with the transitional treatmentprescribed in Paragraph 27-2 of ASBJ Guidance No.31,, new accounting policies prescribed by the guidance have been
adopted prospectively. This change in accounting treatment has no effect on our consolidated financial statements.

(Adoption of U.S. FASB Accounting Standards Codification (ASC) No. 842, Leases)
Certain foreign consolidated subsidiaries that adopted U.S. GAAP apply ASC No. 842, Leases, beginning with the current
consolidated fiscal year. As a result, the subsidiaries in question generally recognize all leases of lessees as assets and liabilities
on its balance sheet.
In applying this accounting standard, the subsidiary recognized the cumulative effect as of the date of adoption, which ispermitted under the transitional provisions.
As a result, Other under Non-current assets, Other in Current liabilities, and Lease obligations under Non-current liabilities
increased ¥8,206 million, ¥1,391 million, and ¥7,875 million, respectively, as of the end of the current consolidated fiscal
year. The impact of this accounting treatment on operating income, ordinary income, income before income taxes, and net
income for the current consolidated fiscal year is immaterial.

(Additional Information)(Stock-Based Compensation Plan)
Effective as of the current consolidated fiscal year, the Company has adopted a stock-based compensation plan (“Plan”) for
directors (excluding outside directors) and executive officers (collectively, “Eligible Individuals”). The purpose of the Plan is
to establish a clear link between compensation for Eligible Individuals and Company performance and share value, as well as
for Eligible Individuals to share the benefits and risks associated with fluctuations in NAGASE share price with shareholders.
In this way, the NAGASE Group intends to raise awareness about contributing to improved business performance andincreased corporate value over the medium to long term.
(1) Overview
The Plan is a stock-based compensation plan under which a trust ("Trust") established by monetary contribution from theCompany acquires Company shares. The Company grants points to each Eligible Individual, and the Trust delivers the numberof Company shares equivalent to the points earned by each Eligible Individual. In principle, said delivery is made at the timeof the retirement the Eligible Individual.
(2) Company shares remaining in the Trust
Company shares remaining in the Trust are recorded as treasury stock under net assets in the balance sheet based on the
carrying value in the Trust (excluding incidental expenses). The carrying value of said treasury stock as of the end of thecurrent consolidated fiscal year was ¥619 million and the treasury stock in question amounted to 292,200 shares.

17

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(Segment Information, etc.)
a. Segment Information
1. Reportable Segments
The Company’s reportable segments are those units comprising the NAGASE Group for which separate financial information
is available and for which the board of directors makes regular decisions regarding resource allocation and operating
performance.
The Company classifies reportable segments according to the location of the business in the value chain and the market(s)targeted. Accordingly, the Company has defined five segment categories: Functional Materials (located at the top of the value
chain), Advanced Materials & Processing (located in the next stage of the value chain), Electronics & Energy, Mobility, andLife & Healthcare (these last three segments functioning across all industries).
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, and adhesives, urethane materials andauxiliary materials, plastic materials, plastic additives, industrial oil solutions, water processing raw materials, surfactant raw
materials, fluorochemicals, encapsulant materials, 5G materials, silicone materials, environmental solutions and environmentrelated commercial products, sintered metal filters, and more for the paints/inks, resins, urethane foam, organic synthesis,
surfactants, electronics chemicals, communications equipment, water processing, metal processing, plastic and film
processing, and other industries.
The Advanced Materials & Processing Segment is engaged in the sales of dyestuffs, pigments, additives, processed pigments,
dispersing elements, functional pigments, thermal paper materials, toner and inkjet materials, thermoplastic resins,thermosetting resins, automobile refinish paints, conductive coatings, synthetic rubber, inorganic materials, plastics products,
resin molding tools/dies, and more for the dye/additive, coatings, ink, plastic compounds, masterbatch, stationery, digital print
processing material, digital printing, fiber processing, raw resin material, resin molding, functional film and sheet, applianceand office automation device, electronics, packaging material, daily commodities, household goods, hygiene materials,
construction material, and other industries.
The Electronics & Energy Segment is engaged in the sales of formulated epoxy resins, fluorine products, precision abrasives,semiconductor assembly materials and devices, adhesives and encapsulant materials, display panel components and devices,chemical management equipment for display manufacturing processes, low-temperature/vacuum equipment, liquid state
analysis equipment, LEDs, 3D printing products, design and manufacture of storage battery systems, solar panels, opticalwireless communication equipment, and other products for the semiconductor, electronic component, AR/VR, environmental
energy, 3D printing, heavy electrical and light electrical, HDD, automotive and aircraft, display, touch panel, housing, lighting,storage battery, energy, renewable energy, security device, large-scale commercial facility, and other industries. Its main
services include energy management system proposals, battery assessments, and health care services.
The Mobility Segment is engaged in the sales of plastic products in general, materials for secondary batteries, interior andexterior materials and components, materials for functional components, products for electrification, sensor components, invehicle electronics products, in-vehicle display-related components, self-driving-related products, and other products for theoverall mobility industry and related industries.
The Life & Healthcare segment is engaged in the sale of pharmaceutical/agricultural chemicals and materials, research
products, in vitro diagnostics, enzymes, food additives, food ingredients, sports nutrition products, nutrient premixes, additives
for cosmetics, feeds, surfactants, and medical appliances for the pharmaceutical, food and beverage, cosmetics, agricultural,
toiletries, and health care industries. The segment offers radiation measurement and sleep measurement as one of its main
services. In addition, this segment sells cosmetics, health foods, and beauty foods directly to consumers.

18

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

2. Net Sales, Income (Loss), Assets, Liabilities, and Other Items by Segment
Accounting treatment in each reportable segment follows the principles and procedures of the accounting treatments used toprepare the Company’s consolidated financial statements.
Income in reportable segments is defined as operating income. Intersegment sales/transfers are based on actual market
prices.

3. Information Related to Net Sales, Income (Loss), Assets, Liabilities, and Other Items by Segment
Prior Consolidated Fiscal Year (April 1, 2021 to March 31, 2022)
Reportable Segments
AdvancedElectronics
Functional
Materials && Energy
Materials
Processing

MobilityLife &
Healthcare

Total(Millions of yen)
Others(Note) 1

Total

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

Net sales
Sales tocustomers

99,874257,283

128,131103,389

191,634

780,313244

780,557--

780,557

711

777

2,319

2,389

452

6,649

4,649

11,298-(11,298)-

Total

100,585

258,060

130,450

105,778

192,087

786,962

4,893

791,856-(11,298)

780,557

Segment income(loss)

7,823

10,858

10,278

4,131

9,429

42,521

100

42,621(7,690)331

35,263

Segment assets

83,793

164,249

77,16368,492

218,060

611,759

2,838

614,598

190,048(64,926)

739,720

Depreciation
and amortization

465

1,447

1,479

342

5,959

9,694

16

9,711

1,505

-

11,216

Amortization of
goodwill

111

178

42

-

2,145

2,478

-

2,478

-

-

2,478

Unamortizedbalance of
goodwill

1,853

-

452

-

27,18629,492-29,492--29,492

Investments inequity affiliates

1,300

1,828

2,761

1,403

3,139

10,432

95

10,528-(0)

10,528

Increase inproperty, plant,
and equipment
and intangible
fixed assets

562

1,742

1,610

558

2,435

6,909

25

6,934

3,791

-

10,725Intersegment
sales/transfers

Other items(Note) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information
processing services and professional services.
2. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others. Segment assets under
Corporate are assets not allocable 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 profit as presented in“Consolidated”.

19

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Current Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable Segments
AdvancedElectronics
Functional
Materials && Energy
Materials
Processing

MobilityLife &
Healthcare

Total

Others(Note) 1

Total

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

Net sales
Sales tocustomers

112,092

265,024

136,975

125,560

273,161

912,815

81

912,896－－

912,896

853

755

2,580

2,257

490

6,936

7,439

14,376－(14,376)－

Total

112,946

265,779

139,555

127,817273,651

919,751

7,521

927,273－(14,376)

912,896

Segment income(loss)

8,810

9,342

9,273

4,794

10,58142,802

108

42,910△9,932394

33,371

Segment assets

87,094

156,840

77,66674,739240,442636,782

3,221

640,004

189,535(66,850)

762,688

Depreciation
and amortization

477

1,440

1,608

468

6,536

10,531

19

10,551

1,826－

12,377

Amortization of
goodwill

134

－

51

－

2,359

2,545

－

2,545

－

－

2,545

Unamortizedbalance of
goodwill

1,890

－

442

－

26,671

29,004－29,004－－29,004

Investments inequity affiliates

1,334

1,920

2,562

1,259

3,268

10,344104

10,449－(0)

10,448

Increase inproperty, plant,
and equipment
and intangible
fixed assets

421

2,177

1,908

279

5,737

10,524

7

10,531

6,642－

17,174

Intersegment
sales/transfers

Other items(Note) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information
processing services, and professional services.
2. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others. Segment assets under
Corporate are assets not allocable 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 profit as presented in“Consolidated”.

20

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

b. Other Information
Prior Consolidated Fiscal Year (April 1, 2021 to March 31, 2022)
1. Products and Services
Omitted, as the same information has been disclosed under Segment Information.

2. Geographical Information(1) Net sales

Group net sales consist primarily of revenues recognized from contracts with customers. The following provides detail of net
sales for each reportable segment, broken down by geographic region.
(Millions of yen)
Reportable Segments
Functional
Materials

Advanced
Materials &Processing

Electronics &Mobility

EnergyLife &

Others(Note) 3

Composition
(%)

Total

HealthcareJapan

40,971

69,12350,64031,55557,825244

250,360

32.1

Greater China

11,987

117,092

54,35430,534

3,594-

217,562

27.9

ASEAN

26,58058,9497,267

29,416

3,493-

125,707

16.1

Americas16,703

6,172

5,221

10,24979,243-

117,589

15.1

Europe

2,634

4,598

4,071

1,466

47,083-59,855

7.7

Other

996

1,347

6,575

167

394

-

9,481

1.1

99,874257,283

128,131103,389

191,634

244

780,557

100.0

99,874257,283

128,131103,389

191,634

244

780,557

100.0

Revenues from contracts
with customers

Net sales to customers(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
2. Major countries and regions in each category other than Japan(1) Greater China...... China, Hong Kong, Taiwan(2) ASEAN............... Thailand, Vietnam, Singapore(3) Americas............. U.S., Mexico(4) Europe................. U.K., Germany(5) Other................... Korea
3.“Others” is a business segment consisting of businesses not included in Reportable Segments, and includes
information processing services and professional services.

(2) Property, plant and equipment(Millions of yen)
Japan

Other
62,185

Total
10,3693. Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.

21

72,554

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Current Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)
1. Products and Services
Omitted, as the same information has been disclosed under Segment Information.

2. Geographical Information(1) Net sales

Group net sales consist primarily of revenues recognized from contracts with customers. The following provides detail of net

sales for each reportable segment, broken down by geographic region.
(Millions of yen)
Reportable Segments
Functional
Materials

Advanced
Materials &Processing

Electronics &Mobility

EnergyLife &

Others(Note) 3

Composition

Total

(%)

HealthcareJapan

44,80861,641

51,95539,817

67,103

81

265,407

29.1

Greater China

13,288115,304

56,94333,4993,276-

222,312

24.4

ASEAN

29,35873,801

7,540

36,541

5,507-

152,750

16.7

Americas20,969

6,893

6,929

14,039122,538-

171,37018.8

Europe

2,660

5,606

4,712

1,321

74,386-

88,686

9.7

Other

1,007

1,775

8,893

342

349

-

12,3681.3

112,092

265,024

136,975

125,560

273,161

81

912,896100.0

112,092

265,024

136,975

125,560

273,161

81

912,896

100.0

Revenues fromcontracts withcustomers

Net sales tocustomers(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
2. Major countries and regions in each category other than Japan(1) Greater China...... China, Hong Kong, Taiwan(2) ASEAN............... Thailand, Vietnam, Indonesia(3) Americas............. U.S., Mexico(4) Europe................. U.K., Germany(5) Other................... Korea
3.“Others” is a business segment consisting of businesses not included in Reportable Segments, and includes
information processing services, and professional service(2) Property, plant and equipment(Millions of yen)

Japan

Other
59,807

Total
22,2573. Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.

22

82,064

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

c. Impairment Losses of Non-Current Assets for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2021 to March 31, 2022)(Millions of yen)

Reportable Segments
Advanced
Functional
Electronics
Materials &Materials& Energy
Processing
Impairment
loss

-

2,974

Life &
Healthcare

Mobility

-

-

Total

-

Corporate/
Elimination

Others

2,974

-

-

Total

2,974

(Note) The Company no longer expects the profitability originally anticipated for the product and manufacturing process development
business related to resins in the Advanced Materials & Processing segment. Therefore, the Company has written down the bookvalue of goodwill and other intangible fixed assets related to this business to their recoverable amounts, recording impairment
losses in the amount of ¥2,911 million.

Current Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)(Millions of yen)

Reportable Segments
Advanced
Functional
Electronics
Materials &Materials& Energy
Processing
Impairment
loss

-

2,825

12

Life &
Healthcare

Mobility
-

Total

-

Corporate/
Elimination

Others

2,838

-

-

Total

2,838

(Note) The Company conducted a review of the future business plans for the business assets in products and manufacturing processdevelopment business related to resins and for the development and manufacturing business in connection with water-soluble support
materials for 3D printing, both in the Advanced Materials & Processing segment. As a result, we determined future cash flow will beless than book value. Therefore, the Company wrote down the book value of these assets to their recoverable amounts and recorded an
impairment loss of ¥2,285 million and ¥539 million, respectively.

d. Amortization and Unamortized Balance of Goodwill for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2021 to March 31, 2022)
Omitted, as the same information has been disclosed under Segment Information.

Current Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)
Omitted, as the same information has been disclosed under Segment Information.

e. Information About Gain on Negative Goodwill for Each Reportable Segment
Prior Consolidated Fiscal Year (April 1, 2021 to March 31, 2022)
No matters to report.

Current Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)
No matters to report.

23

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(Per-Share Data)
Prior Consolidated Fiscal Year
(April 1, 2021 -Current Consolidated Fiscal Year
(April 1, 2022 -March 31, 2022)

March 31, 2023)

Net assets per share¥2,868.22¥3,139.26

Earnings per share¥213.46¥199.54(Note) 1. Information for diluted earnings per share is not presented, as the Company does not issue any stock with dilutive effects.
2. Basic earnings per share calculations are as shown below.
Prior Consolidated Fiscal Year
(April 1, 2021 March 31, 2022)

Current Consolidated Fiscal Year
(April 1, 2022 March 31, 2023)

25,93923,62525,93923,625

121,522,286

118,398,261

Profit attributable to owners of the parent (millions of yen)
Profit attributable to common stock owners of the parent(millions of yen)
Average number of outstanding shares of common stock (shares)(Significant Subsequent Events)(Purchase of Treasury Stock)
At a meeting held May 9, 2023, the Company's board of directors resolved to purchase treasury stock based on the provisionsof Article 156 of the Companies Act, applied mutatis mutandis to Article 165, Paragraph 3 of the same Act.
(1) Reasons for the purchase of treasury stock
As part of the Company's efforts to improve capital efficiency from both business and financial perspectives under the
Medium-term Management Plan ACE 2.0, the Company determined to acquire treasury stock. This aims to enhance its
corporate value through greater capital efficiency as a result of comprehensive consideration of the current valuation of its
shares in the capital market, financial soundness and investment capacity for growth, and other factors.
(2) Details of shares to be purchased
a. Class of shares to be purchasedb. Total number of shares that may be purchased

Common shares
6,000,000 shares (maximum)(Equivalent to 5.11% of outstanding shares,
excluding treasury stock)c. Total value of shares that may be purchased
d. Purchase period

8 billion yen (maximum)
From May 10, 2023 to December 22, 2023

e. Purchase method

Market purchases*Reference: Treasury stock held as of April 30, 2023
Total number of shares issued (excluding treasury stock)Total number of treasury stock

117,413,767 shares
494,518 shares24