Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024
<Under Japanese GAAP>

February 6, 2024

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
Filing of quarterly report (scheduled): February 9, 2024
Start of distribution of dividends (scheduled): Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: No(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results
Net sales
For the third quarter ended Millions of yen
December 31, 2023
677,732
December 31, 2022
695,680(Note) Comprehensive income

Gross profit
%

-2.6
21.2

Millions of yen

121,492
118,476

Operating income
%

2.5
13.8

Millions of yen

Profit attributable toowners of the parent

Ordinary income%

23,01927,438(% = year-on-year change)

-16.1
-2.5

Millions of yen

23,17927,445

%

-15.5
-9.0

Millions of yen

18,001
20,037

Third quarter ended December 31, 2023: ¥40,067 million (11.8% decrease)
Third quarter ended December 31, 2022: ¥45,427 million (66.1%)
Earnings per share

For the third quarter ended
December 31, 2023
December 31, 2022

Earnings per share (diluted)
Yen

Yen

156.19168.78−−(2) Consolidated Financial Position
Total assets
December 31, 2023
March 31, 2023
(Reference) Equity capital

Net assets

Millions of yen

Shareholders’equity ratio

Millions of yen

788,364
762,688

Net assets per share%

395,120
378,388

Yen

49.3
48.2

3,412.94
3,139.26

As of December 31, 2023: ¥ 388,274 million
As of March 31, 2023: ¥ 367,675 million

2. Dividends
1Q
For the year ended (or ending)
Yen
March 2023−
March 2024−
March 2024 (forecast)(Note) Revisions to the latest dividends forecast: No

2Q

Annual Dividends per Share
3Q
Fiscal year end
Yen

30.00
40.00

Yen

−
−

Yen

Annual
Yen

40.00

70.00

40.00

80.00

%

-10.2
-9.9

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
Millions of yen

Full fiscal year

900,000

Gross profit

Operating income%

Millions of yen

%

-1.4

163,000

4.9

Millions of yen%

30,000 -10.1

Ordinary income
Millions of yen

Profit attributable to Earnings pershareowners of the parent%

Millions of yen%

Yen

29,000 -10.8

22,500-4.8

195.86(Note) Revisions to the latest consolidated earnings forecast: No* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scopeof consolidation): No
New: ― (Company name:)
Excluded: ― (Company name:)(2) Application of special accounting methods to the preparation of quarterly financial statements: Yes(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (3) Notes Related to Quarterly Consolidated
Financial Statements (Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated Financial Statements),
on P.9 of this document(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
after error correctionsi.
Changes in accordance with revisions to accounting and other standards: Yes
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, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (3) Notes Related to Quarterly Consolidated
Financial Statements (Change in Accounting Policy), on P.9 of this document(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)
117,908,285 shares March 31, 2023
117,908,285 shares
December 31, 2023
ii.

iii.

Number of treasury stock as of the fiscal period end
4,142,899 shares
December 31, 2023

March 31, 2023

Average number of shares during the period
115,255,985 shares
December 31, 2023

December 31, 2022

786,718 shares

118,717,386 shares(Note) The number of treasury stock as of the fiscal period end includes Company shares held by the Stock-Granting Trust for Directors(288,500 shares as of December 31, 2023). Treasury stock deducted from the calculation of the average number of shares during theperiod includes Company shares held by the Stock-Granting Trust for Directors (290,350 shares as of December 31, 2023).

* Quarterly financial statements are not subject to quarterly review.
* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions deemed
rational. A variety of factors could cause actual results to differ materially from forecasts.
For matters related to earnings forecasts, please refer to 1. Qualitative Information, (3) Qualitative Information Related toConsolidated Earnings Forecasts, on P.4 of this document.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

Attachments
1． Qualitative Information

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

4(3) Qualitative Information Related to Consolidated Earnings Forecasts

4

2． Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

7

Quarterly Consolidated Statements of Income
Nine-month periods ended December 31, 2023 and 2022

7

Quarterly Consolidated Statements of Comprehensive Income
Nine-month periods ended December 31, 2023 and 2022

(3) Notes Related to Quarterly Consolidated Financial Statements

89(Assumption for Going Concern)

9(Change in Accounting Policy)

9(Significant Fluctuations in Shareholders’ Equity)(Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated Financial
Statements)(Additional Information)

9(Segment Information, etc.)

11

1

9
9

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

1. Qualitative Information(1) Review of Business Performancea.

General Summary of Results

During the cumulative consolidated third quarter of the current fiscal year, concerns remained about a global economic slowdown
due to the effects of ongoing monetary tightening policies in Europe and the United States and prolonged real estate recession in
China.
As an overview of the regions in which our group does business, concerns remained in Greater China of an economic slowdown
due to the prolonged real estate recession and sluggish corporate capital investment. In the Americas, concerns remained about afuture economic slowdown due to ongoing monetary tightening policies resulting from inflationary pressures. In ASEAN, theeconomy has been steady, mainly due to domestic and inbound demand. In Japan, the economy is gradually improving due to arecovery in consumer spending, particularly in the service-related sector, and inbound demand.
In this environment, earnings for the cumulative consolidated third quarter of the current fiscal year are as follows.
(Millions of yen)
Nine-month period

Nine-month period

ended
December 31, 2022

ended
December 31, 2023

Net sales

695,680

677,732(17,948)(2.6)

Gross profit

118,476

121,492

3,016

2.5

Operating income

27,43823,019(4,418)(16.1)

Ordinary income

27,44523,179(4,265)(15.5)

Profit before income taxes
Profit attributable to owners

27,822

25,722(2,099)(7.5)

20,03718,001(2,035)of the parent
・Gross profit increased for the cumulative consolidated third quarter due in part to the weakening yen.

(10.2)

ChangeChange (%)

・Operating income declined due to an increase in selling, general and administrative expenses despite an increase in gross profit.
For details see b. Segment Summary.
・Profit attributable to owners of the parent decreased ¥2.0 billion to ¥18.0 billion, mainly due to a decrease in loss on valuation of
investment securities despite an increase in interest expenses.

b.

Segment Summary

The following describes performance by segment.
Note that as of the third quarter of the current fiscal year under review, the categorizations for reportable segments have been partiallyamended. Year-on-year amounts and ratios for the cumulative consolidated third quarter of the previous fiscal year are calculated
after rearranging reportable segment classifications to match those of the cumulative consolidated third quarter of the current fiscal
year.
*For the details of the changes in business segmentation, please refer to (Segment Information Etc.) on P.10 of this document

2

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

Functional Materials(Millions of yen)
Nine-month period
ended

Nine-month period
ended

December 31, 2022

December 31, 2023

Net sales

119,500

109,707(9,793)(8.2)

Gross profit

22,962

20,568(2,394)(10.4)

Operating income

7,996

6,183

(1,813)(22.7)

ChangeChange (%)

・Sales decreased for coating materials.
・Sales decreased for raw materials for the electronics industry, including semiconductor-related products
・Sales of digital print processing materials were lower, as was profitability in the manufacturing business・Operating income decreased due to a decrease in gross profit
Advanced Materials & Processing(Millions of yen)
Nine-month period

Nine-month period

ended
December 31, 2022

ended
December 31, 2023

Net sales

170,851

149,973(20,877)(12.2)

Gross profit

18,80017,845

(955)

(5.1)

Operating income

6,446

5,295

(1,150)(17.9)

ChangeChange (%)

・Sales of resin declined due to lower demand in the office equipment, appliance, and video game device market and the impact of
inventory adjustments by customers
・Operating income decreased due to a decrease in gross profit
Electronics & Energy(Millions of yen)
Nine-month period
ended

Nine-month period
ended

December 31, 2022

December 31, 2023

Net sales

103,826

108,742

4,915

4.7

Gross profit

23,27524,9291,654

7.1

Operating income

7,287

8,171

883

12.1

ChangeChange (%)

・Despite weakening semiconductor market conditions, sales of materials to the semiconductor industry increased due to productline expansion
・Sales increased due to higher demand for formulated epoxy resins, mainly for server applications and mobile device applications
・Sales increased for photolithography materials for display applications
・Operating income increased due to an increase in gross profit
Mobility(Millions of yen)
Nine-month period

Nine-month period

ended
December 31, 2022

ended
December 31, 2023

Net sales

96,551

100,210

3,659

3.8

Gross profit

11,113

11,532418

3.8

Operating income

3,797

3,835

38

1.0

ChangeChange (%)

・Sales increased for resins, mainly due to boosted automobile production and expanded market share among existing customers.
・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

3

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

Life & Healthcare(Millions of yen)
Nine-month period

Nine-month period

ended
December 31, 2022

ended
December 31, 2023

Net sales

204,886

208,991

4,104

2.0

Gross profit

42,214

46,571

4,356

10.3

Operating income

8,580

7,670

(909)

(10.6)

ChangeChange (%)

・Overall Prinova Group sales increased due to operations of the new plant in Utah
・Sales of Hayashibara’s cosmetics materials increased
・Sales increased for pharmaceutical raw materials and intermediates
・Operating income decreased, despite higher gross profit, as personnel expense and other selling, general and administrative
expenses increased at the Prinova Group and profit contribution from the new Utah plant was delayed
OthersNo special matters to disclose.

(2) Review of Financial Position(Millions of yen)

Prior Consolidated
Fiscal Year
(March 31, 2023)

Third Quarter,
Current Consolidated
Fiscal Year
(December 31, 2023)

Current assets

530,132

542,332

12,2002.3

Non-current assets

232,556

246,031

13,475

5.8

Net assets

762,688788,364

25,675

3.4

Liabilities

384,300

393,244

8,943

2.3

Net assets

378,388395,120

16,732

4.4

48.2

49.3

+1.1 p－Shareholders’ equity ratio (%)

ChangeChange (%)

・Current assets increased due to an increase in cash and time deposits and accounts receivable, despite a decrease in inventories,etc.
・Non-current assets increased due to an increase in property, plant and equipment and intangible fixed assets, and the fair valuesof investments in securities
・Liabilities increased mainly due to an increase in accounts payable, commercial paper, and lease liabilities, despite a repayment
in short-term loans
・Net assets increased mainly due to the recording of quarterly profit attributable to owners of the parent and an increase intranslation adjustments, despite decreases from purchases of treasury stock and payments of dividends
・As a result, the Company recorded a shareholders’ equity ratio of 49.3%, up 1.1 points compared to 48.2% from the end of theprior consolidated fiscal year(3) Qualitative Information Related to Consolidated Earnings Forecasts
We made no changes to the consolidated earnings forecast for the current fiscal year (April 1, 2023 to March 31, 2024) from thefigures announced on November 1, 2023.

4

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal
Year(March 31, 2023)(Millions of yen)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2023)

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

53,268322,418
131,478
2,866
14,30918,765(774)
542,332

82,06487,51229,004
4,337
35,58768,92828,991
3,155
39,77471,921

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

74,638
25
2,897
3,741
5,486
(191)
86,597246,031
788,364

ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

Prior Consolidated Fiscal Year
(March 31, 2023)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
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 (loss) gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Millions of yen)
Third Quarter, Current
Consolidated Fiscal Year
(December 31, 2023)

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

157,01049,8107,943
42,000
4,049
4,504
163
31,090296,573

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

30,00026,12913,08911,593
13,32337
2,498
96,671
393,244

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

9,699
9,348
298,999(9,543)
308,504

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

32,20184
47,709(225)
79,7706,845
395,120
788,364NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Nine-month periods ended December 31, 2023 and 2022

(Millions of yen)

Nine-month period ended
December 31, 2022

Nine-month period ended
December 31, 2023

(April 1, 2022 – December 31, 2022)(April 1, 2023 – December 31, 2023)

695,680
577,204
118,476
91,03827,438

677,732
556,240
121,492
98,47223,019

74
1,401
184
402
115
332
2,510

352
1,418
178
400
629
530
3,510

2,144
359
2,503
27,445

2,841
509
3,350
23,179

140
2,617

76
3,013

52

－

－
1
2,812

507
45
3,642

38
487
7
1,349

29
885
21
9

466

－

85
2,435
27,822
7,193
20,628591
20,037152
1,099
25,722
7,382
18,339337
18,001

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

7

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(Quarterly Consolidated Statements of Comprehensive Income)Nine-month periods ended December 31, 2023 and 2022

(Millions of yen)
Nine-month period ended
December 31, 2022

Nine-month period ended
December 31, 2023

20,62818,339(2,606)(144)
26,944
135

3,267
91
17,448
500

468

419

24,79845,427

21,72840,06744,065
1,361

39,161
905(April 1, 2022 – December 31, 2022) (April 1, 2023 – December 31, 2023)

Profit for the period
Other comprehensive income
Net unrealized holding (loss) gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Non-controlling interests

8

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(3) Notes Related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.
(Change in Accounting Policy)(Adoption of U.S. FASB Accounting Standards Codification (ASC) No. 326, Financial Instruments-Credit Losses)
Certain foreign consolidated subsidiaries that adopted U.S. GAAP apply ASC No. 326, Financial Instruments-Credit Losses, atthe beginning of the consolidated first quarter of the current fiscal year. As a result, the subsidiaries in question are required torevise the methods used to measure financial instruments and recognize impairment of financial assets using the expected credit
loss model.
In applying this accounting standard, the subsidiary recognized the cumulative effect as of the date of adoption, which is permitted
under the transitional provisions.
The impact of this accounting treatment on the quarterly consolidated statements of income is immaterial.
(Changes in Significant Hedge Accounting Methods)
The Company previously used the allocation method for foreign currency receivables and payables with foreign exchange contracts,
if said receivables and payables qualified for the allocation method. However, from the consolidated third quarter of the current
fiscal year, the Company switched accounting methods to the principle accounting method.
As the Company reforms its enterprise system, the Company reviewed its management of foreign exchange contracts and changed
this approach to reflect derivative transactions more appropriately in Company financial statements.
Note that as impact from this change in accounting methods is minor, the change is not applied retroactively.
(Significant Fluctuations in Shareholders’ Equity)
Following a resolution by the Company’s board of directors at a meeting held May 9, 2023, the Company acquired 3,359,600
shares of treasury stock in the cumulative third quarter of the current consolidated fiscal year. As a result, treasury stock increasedby ¥7,999 million, with treasury stock holdings of ¥9,543 million as of the end of the consolidated third quarter.
(Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated Financial Statements)(Calculation of Tax Expenses)
Tax expenses are calculated by rationally estimating an effective tax rate after applying tax effect accounting to profit before income
taxes for the consolidated fiscal year, including the current third quarter, and multiplying profit before income taxes for the third
quarter by the estimated effective tax rate.
In the event that the calculated tax expenses using this estimated effective tax rate lead to significantly unreasonable results, thisshall be calculated by multiplying the statutory effective tax rate after adjusting significant non-temporary differences by the profit
before income taxes.
Deferred income taxes are included in income tax.
(Additional Information)(Stock-Based Compensation Plan)
Effective as of the previous 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 toestablish 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 thisway, the NAGASE Group intends to raise awareness about contributing to improved business performance and increased corporate
value over the medium to long term.

9

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(1) Overview
The Plan is a stock-based compensation plan under which a trust ("Trust") established by monetary contribution from the Company
acquires Company shares. The Company grants points to each Eligible Individual, and the Trust delivers the number of Company
shares equivalent to the points earned by each Eligible Individual. In principle, said delivery is made at the time of 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 the consolidated third
quarter was ¥612 million and the treasury stock in question amounted to 288,500 shares.

10

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(Segment Information, etc.)
Segment Information
I Nine-month period ended December 31, 2022 (consolidated)
1.

Information related to net sales and income (loss) by reportable segment(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
Intersegment
sales/transfers

119,500

170,851

103,826

96,551

204,886

695,61664

695,680－－

695,680

626

610

3,058

1,602

369

6,268

5,427

11,695－(11,695)－

Total

120,127

171,461

106,885

98,153

205,255

701,885

5,491

707,376－(1,695)

695,680

Segment income(loss)

7,996

6,446

7,287

3,797

8,580

34,108114

34,222(7,058)274

27,438(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.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating income as presented in“Consolidated”.

II Nine-month period ended December 31, 2023 (consolidated)
1.

Information related to net sales and income (loss) by reportable segment(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
Intersegment
sales/transfers

109,707

149,973

108,742

100,210

208,991

677,625

106

677,732－－

677,732

1,573

524

2,388

2,243

353

7,083

5,562

12,646－(12,646)－

Total

111,281

150,498

111,130

102,454

209,345684,709

5,669

690,378－(12,646)

677,732

Segment income(loss)

6,183

5,295

8,171

3,835

7,670

31,156

186

31,342(8,821)

498

23,019(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.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating income as presented in“Consolidated”.

11

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

2.

Matters Related to Changes in Reportable Segment(Change in Business Segments)
As of the beginning of the third quarter of the current consolidated fiscal year, the Company consolidated our original 11 business
Departments into 7 to streamline business operations through expanding the scale and functions of each department. This consolidationof business departments resulted in the following changes to business segments.
The Color & Advanced Processing Department of the Advanced Materials & Processing segment was abolished and integrated into
the Performance Chemicals Department of the Functional Materials segment, and the Polymers Global Account Department of theAdvanced Materials & Processing segment.
Segment information provided for the cumulative consolidated third quarter of the previous fiscal year is based on post-change
classification methods.
The following describes the major products and services handled by each reportable segment.
The Functional Materials segment is engaged in the sales of paints/inks, dyestuffs, pigments, additives, processed pigments, dispersing
elements, functional pigments, thermal paper materials, toner and inkjet materials, materials for 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 environment-related commercial
products, sintered metal filters, and more for the paints/inks, dye/additive, resins, urethane foam, organic synthesis, surfactants,
electronics chemicals, digital print processing materials, communications equipment, water processing, metal processing, plastic andfilm processing, and other industries.
The Advanced Materials & Processing Segment is engaged in the sales of thermoplastic resins, thermosetting resins, plastics products,
resin molding tools/dies, and more for the plastic compounds, masterbatch, stationery, raw resin material, resin molding, functionalfilm and sheet, appliance and office automation device, electronics, packaging material, daily commodities, household goods, hygienematerials, 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, 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, andother 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 and exteriormaterials and components, materials for functional components, products for electrification, sensor components, in-vehicle electronics
products, in-vehicle display-related components, self-driving-related products, and other products for the overall mobility industry andrelated industries.
The Life & Healthcare segment is engaged in the sale of pharmaceutical/agricultural chemicals and materials, research products, invitro 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 careindustries. 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.

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