Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018
<Under Japanese GAAP>
November 2, 2017
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

NAGASE & CO., LTD.
Stock exchange listing: Tokyo (First Section)
Code number:8012
URL (https: //www.nagase.co.jp/english/)Representative:
Kenji Asakura, Representative Director and President
Contact:
Akira Takami, General Manager, Accounting Division
TEL: +81-3-3665-3103
Filing of quarterly report (scheduled): November 8, 2017
Start of distribution of dividends (scheduled): December 4, 2017
Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: Yes (for analysts and institutional investors)(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2018
(April 1, 2017 to September 30, 2017)(1) Consolidated Operating Results(Percentages represent changes compared with same period of the previous fiscal year.)Net sales

Operating income

Profit attributable toowners of the parent

Ordinary income

For the second quarter ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen
September 30, 2017
387,501
10.4
12,60674.1
13,80284.5
8,760
September 30, 2016
350,865(6.7)
7,242 (27.8)
7,482 (26.6)
4,674(Notes) Comprehensive income
Second quarter ended September 30, 2017: ¥16,863 million (892.0%)%

87.4(28.1)

Second quarter ended September 30, 2016: ¥1,699 million (―%)
Earnings per share
For the second quarter ended
September 30, 2017
September 30, 2016

Yen
69.46
36.84

Earnings per share (diluted)
Yen−−(2) Consolidated Financial Position
Total assets
Millions of yen

September 30, 2017
March 31, 2017
(Reference) Equity capital

Net assets

Shareholders’equity ratio

Millions of yen

579,441
309,149
530,775
295,198
As of September 30, 2017: ¥304,046 million
As of March 31, 2017: ¥ 290,217 million

Net assets per share
%

Yen

52.5
54.7

2,410.91
2,301.10

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

1Q
2Q
For the year ended (or ending)
Yen
YenMarch 2017
16.00−
March 2018
17.00−
March 2018 (estimate)(Note) Revisions to the latest projected dividends: No

Annual

Yen

Yen

Yen

−

17.00

33.00

−

18.00

35.00

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2018
(April 1, 2017 to March 31, 2018)(Percentages represent changes compared with the corresponding periods of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year

771,000

Operating income% Millions of yen

6.7

23,500

Profit attributable toowners of the parent

Ordinary income% Millions of yen

56.3

25,500% Millions of yen

55.8

16,000Earnings per
share

%

Yen

54.9

126.87(Note) Revisions to the latest projected consolidated results: Yes* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in thescope of consolidation): Yes
Excluded: ― (Company name:)
New: 1 (Company name: INKRON LIMITED)(Note)
Please refer to “2. Quarterly Consolidated Financial Statements and Notes (4) Notes related to
Quarterly Consolidated Financial Statements (Changes in Significant Subsidiaries during the Period）.”
on page 13 of this document.
(2) Application of special accounting methods to the preparation of quarterly financial statements: No(3) Changes of accounting principles, changes in accounting estimates, and restatement of prior period financial
statements after error correctionsi.
Changes in accordance with revisions to accounting and other standards: No
ii. Changes in items other than (i) above: Noiii. Changes in accounting estimates: No
iv. Restatement of prior period financial statements after error corrections: No(4)
Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)
September 30, 2017
127,408,285 shares March 31,2017
127,408,285 shares
ii.

iii.

Number of treasury stock as of the fiscal period end
September 30, 2017
1,295,667 shares

March 31, 2017

Average number of shares during the period
September 30, 2017
126,118,383 shares

September 30, 2016

1,287,366 shares

126,901,165 shares* Quarterly financial statements are not subject to quarterly review.
* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions
deemed rational. A variety of factors could cause actual results to differ materially from forecasts.
Please refer to “1. Qualitative Information (3) Qualitative Information related to Earnings Forecasts” on page 5 of thisdocument.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018
Attachments
1. Qualitative Information

2(1) Business Performance2(2) Financial Position

4(3) Qualitative Information related to Earnings Forecasts

5

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheets

6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

8

Quarterly Consolidated Statements of Income
Six-month periods ended September 30, 2017 and 20168

Quarterly Consolidated Statements of Comprehensive Income
Six-month periods ended September 30, 2017 and 2016

9(3) Quarterly Consolidated Statements of Cash Flows

10(4) Notes related to Quarterly Consolidated Financial Statements

12(Assumption for Going Concern)

12(Segment Information, etc.)12(Significant Fluctuations in Shareholders’ Equity)

13(Changes in Significant Subsidiaries during the Period)

13

3. Supplementary Information(1)

13

Overseas Sales

13

－ 1 －

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

1. Qualitative Information(1) Business Performancea. General Summary of Results
The Japanese economy continued to recover during the cumulative consolidated second quarter as corporate earnings rallied,
while employment and payrolls improved to push improved personal consumption. The global economy maintained a gradual
recovery, with strong performance in the economies of China and the emerging economies, a moderate expansion in businessconditions in the United States, and other positive factors.
In this environment, the Company recorded domestic sales of ¥192.59 billion (+7.6% year on year) for the cumulative
consolidated second quarter. Overseas sales, impacted positively by the relatively weak yen compared to the year-ago period,rose to a record-high ¥194.9 billion (+13.4%). In total, the Company recorded ¥387.5 billion in net sales, an all-time record anda 10.4% improvement over the first six months in the prior fiscal year.
The Company recorded gross profit of ¥50.21 billion, an increase of 12.4%, in conjunction with higher sales. Operating
income amounted to ¥12.6 billion, an increase of 74.1% year on year. This increase was mainly due to a decrease in retirement
benefit expense in connection with the amortization of actuarial differences. Ordinary income amounted to ¥13.8 billion(+84.5%), while profit attributable to owners of the parent amounted to ¥8.76 billion (+87.4%). All profit indicators marked
record highs for any cumulative consolidated second quarter in the history of the Company.

b. Segment Summary
Functional Materials
The Functional Materials segment recorded higher sales in both domestic and overseas markets.
The Performance Chemicals business recorded higher sales due to improved sales of coating raw materials and urethanematerials, spurred by strong automotive production in Japan and overseas. Another contributing factor was a jump in sales
associated with the Company’s acquisition of a distributor in the United States.
The Speciality Chemicals business recorded higher sales overall. Sales of fluorochemicals, electronics chemicals, and raw
materials for industrial oil solutions were higher for the semiconductor and other electronics industry in Japan. Overseas, sales
were higher for electronics chemicals and other products.
As a result, sales for the segment amounted to ¥84.79 billion, which was a ¥10.66 billion (+14.4%) increase year on year.
Segment operating income grew ¥790 million (+42.9%), reaching ¥2.64 billion for the consolidated second quarter.

Advanced Materials & Processing
The Advanced Materials & Processing segment recorded higher sales in both domestic and overseas markets.
The Colors & Advanced Processing business recorded higher sales as a whole, driven by growth in plastic resins for industrial
and packaging applications, dyes/additives, and digital print processing materials in Japan. Overseas, strong sales of printrelated business products contributed to higher overall performance.
The Polymer Global Account business mainly sells plastics to the office equipment, appliance, and video game device markets.
The sales of those business were higher overall, driven by growth in Japan, Greater China, and ASEAN.
As a result, sales for the segment amounted to ¥131.83 billion, which was a ¥11.61 billion (+9.7%) increase compared to the
cumulative consolidated second quarter of the prior fiscal year. Segment operating income grew ¥920 million (+34.7%),
reaching ¥3.58 billion for the cumulative consolidated second quarter.

－ 2 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

Electronics
The Electronics segment recorded higher sales in Japan and overseas.
The Electronic Chemicals business recorded higher sales due to growth in photolithography material and equipment-related
sales, as well as strong performance of formulated epoxy resins for the electric and electronics industries.
The Electronic Materials business recorded lower sales compared to the same period in the prior fiscal year. Despite higher
sales of display-related products, the business experienced lower performance in processed materials caused by smartphonemodel changeovers.
As a result, sales for the segment amounted to ¥65.7 billion, which was a ¥3.18 billion (+5.1%) increase . Segment operating
income grew ¥1.16 billion (+36.6%) year on year, reaching ¥4.35 billion for the cumulative consolidated second quarter.

Automotive & Energy
The Automotive Solutions business recorded higher sales, driven by strong performance in our domestic resins business andhigher sales in Greater China and ASEAN.
As a result, sales for the segment amounted to ¥62.74 billion, which was a ¥10.33 billion (+19.7%) increase compared to the
cumulative consolidated second quarter of the prior fiscal year. Segment operating income grew ¥910 million (+177.3%),
reaching ¥1.43 billion for the cumulative consolidated second quarter.

Life & Healthcare
The Life & Healthcare segment recorded net sales slightly higher compared to the same period in the prior fiscal year. While
sales were level domestically, sales increased overseas.
Sales of TREHA™ and other products to food ingredient makers in our Life & Healthcare Products business were level, whilesales in Europe and other regions overseas grew. Although the business recorded lower sales of AA2G™ to major customers inthe skin care and toiletries field overseas, sales to major customers in Japan were higher. In the medical and pharmaceuticalfield, sales of pharmaceutical raw materials and intermediates and medical materials were level with the year-ago period, whilesales of pharmaceutical business products were lower. As a result, the business recorded sales slightly higher compared to theprior year.
The Beauty Care Products business, which includes sales of cosmetics and health foods, recorded lower sales, driven down due
to weak performance across all product categories.
As a result, sales for the segment amounted to ¥42.12 billion, which was a ¥850 million (+2.1%) increase compared to the
cumulative consolidated second quarter of the prior fiscal year. Segment operating income grew ¥480 million (+26.2%),
reaching ¥2.33 billion for the cumulative consolidated second quarter.

Other
No special matters to disclose.

－ 3 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

(2) Financial Positiona. Assets, Liabilities and Net Assets
As of the end of the consolidated second quarter, current assets amounted to ¥357.73 billion. This represents an increase of¥36.51 billion compared to the end of the prior consolidated fiscal year. This increase was mainly due to increases in accounts
receivable and inventories. Non-current assets amounted to ¥221.7 billion, up ¥12.14 billion. This increase was mainly due toincreases in fair values of shares retained and goodwill recorded by the Company during the period. As a result of these various
factors, total assets increased ¥48.66 billion to ¥579.44 billion as of the end of the consolidated second quarter.
Liabilities amounted to ¥270.29 billion, a ¥34.71 billion increase compared to the end of the prior consolidated fiscal year. This
increase was mainly due to increases in accounts payable and short-term loans, which exceeded redemptions of bonds.
Net assets amounted to ¥309.14 billion, up ¥13.95 billion. This increase was mainly due to ¥8.76 billion in profit attributable toowners of the parent and an increase in net unrealized holding gains on securities.
As a result, the Company recorded a shareholders’ equity ratio of 52.5%, down 2.2 points compared to the end of the priorconsolidated fiscal year.

b. Summary of Consolidated Cash Flows
Cash and cash equivalents (Cash) increased ¥4.09 billion (+10.3%) compared to the end of the prior consolidated fiscal year,
amounting to ¥43.82 billion. Cash from operating activities amounted to ¥6.5 billion, while cash used in investing activities
came to ¥10.22 billion, and cash from financing activities amounted to ¥7.34 billion. In addition, effects of exchange ratechanges had a ¥450 million positive impact on Cash balances, while a merger with a non-consolidated subsidiary also had apositive impact.

(Cash Flows from Operating Activities)
Cash flows from operating activities for the cumulative consolidated second quarter amounted to ¥6.5 billion. While theCompany experienced a ¥11.76 billion decrease in Cash due to increased working capital and payments of ¥2.56 billion inincome taxes, we also recorded income before profit before income taxes of ¥13.01 billion and cash reserved related todepreciation and amortization in the amount of ¥4.58 billion.

(Cash Flows from Investing Activities)
Cash used in investing activities for the cumulative consolidated second quarter amounted to ¥10.22 billion. This result was
mainly due to cash outlays of ¥3.59 billion for the purchase of tangible and intangible fixed assets and outlays of ¥6.0 billion
for the acquisition of the stock of a subsidiary in connection with a change in the scope of consolidation.

(Cash Flows from Financing Activities)
Cash flows from financing activities for the cumulative consolidated second quarter amounted to ¥7.34 billion. This result was
mainly due to increases of ¥9.06 billion and ¥7.0 billion related to short-term loans and the issuance of commercial paper.
These increases exceeded outlays of ¥10.0 billion in redemption of bonds.

－ 4 －NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018(3) Qualitative Information related to Earnings Forecasts
Sales of electronic components and materials, electronic device products, plastics, coatings and urethane materials, and otherproducts for the cumulative consolidated second quarter of the fiscal year ending March 2018 outperformed our initial
forecasts. This result was mainly due to active demand for our products in the electronics and automobile industries. The valueof the Japanese yen in the foreign currency market has also been weaker than we forecast originally.
While we expect a slowdown in sales of certain electronic components and materials, we project overall performance for thesecond half of the fiscal year to match the first half. Certain business expenses are expected to aggregate toward the second
half of the year. Nevertheless, we forecast increased sales to drive operating income, ordinary income, and profit attributable toowners of the parent above our initial projections.
We have changed our projected foreign exchange rate from ¥108 to ¥111 to the U.S. dollar.
Given these considerations, we have made the following upward revisions to our full-year forecasts.

Revised Consolidated Fiscal-Year Forecasts (Fiscal Year Ending March 31, 2018)(Millions of yen)Previous forecast (A)Revised forecast (B)Net sales

732,000

771,000+39,000+5.3%

Operating income

19,10023,500+4,400+23.0%

Ordinary income

20,90025,500+4,600+22.0%

Profit attributable toowners of the parent

12,50016,000+3,500+28.0%－ 5 －Change (B-A)

Change (%)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets

Prior Consolidated Fiscal Year
(March 31, 2017)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－ 6 －(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2017)39,830206,846
58,162
1,309
3,648
2,375
9,681
(638)
321,215

44,218
231,594
65,170
1,931
3,770
2,739
8,942
(632)
357,735

67,61968,42523,034
13,791
3,916
40,742

26,982
13,0033,484
43,46994,548
482
1,524
4,931
(289)
101,197
209,559
530,775

103,464
145
1,360
5,112
(272)
109,811
221,706
579,441

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

Prior Consolidated Fiscal Year
(March 31, 2017)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Current portion of bonds
Accrued income taxes
Deferred tax liabilities
Accrued bonuses for employees
Accrued bonuses for directors
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term loans
Deferred tax liabilities
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income (loss)
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－ 7 －(Millions of yen)
Second Quarter, Current
Consolidated Fiscal Year
(September 30, 2017)

102,076
28,162
3,522
10,000
1,849
37
4,512
171
16,161
166,494

119,500
38,709
1,649
7,000
2,272
39
4,248
120
17,739191,279

20,00020,07813,503
14,625874
69,082
235,576

20,00026,47017,202
14,508832
79,012
270,292

9,699
11,590219,721(1,337)
239,674

9,699
11,137226,330(1,353)245,81447,683
4
3,129
(274)
50,542
4,981
295,198
530,775

53,837
4
4,554
(164)
58,231
5,103
309,149
579,441

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)Six-month periods ended September 30, 2017 and 2016
(Millions of yen)Six-month period ended
September 30, 2016

Six-month period ended
September 30, 2017

(April 1, 2016 -September 30, 2016) (April 1, 2017 - September 30, 2017)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Equity in earnings of affiliates
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on negative goodwill
Total extraordinary gains
Extraordinary losses
Loss on sale of non-current assets
Loss on disposal of non-current assets
Impairment losses
Loss on sale of investments securities
Loss on valuation of investments securities
Loss on sales of shares of subsidiaries and affiliates
Loss on business withdrawal
Loss on step acquisitions
Other
Total extraordinary losses
Income before income taxes and non-controlling interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit for the period
Profit attributable to non-controlling interests
Profit attributable to owners of the parent－ 8 －350,865
306,194
44,67037,428
7,242

387,501
337,285
50,21537,60812,606

88
810
156
238
1,293

95
881
135
361
202
238
1,915

459
90
301
201
1,053
7,482

546
173
719
13,802

28
60
88

12
8
229
250

15
62
38
25
40
246
61
491
7,080
2,175
80
2,255
4,824
149
4,674

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

(Quarterly Consolidated Statements of Comprehensive Income)Six-month periods ended September 30, 2017 and 2016
(Millions of yen)Six-month period ended
September 30, 2016

Six-month period ended
September 30, 2017

(April 1, 2016 -September 30, 2016) (April 1, 2017 - September 30, 2017)

Profit for the period
Other comprehensive income
Net unrealized holding gain on securities
Deferred gain (loss) 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

－ 9 －

4,824

8,906

2,499
4
(6,148)
1,075

6,151
(0)
1,591
109

(554)

103

(3,124)
1,699

7,956
16,863

2,134
(434)

16,555307

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30, 2016

Six-month period ended
September 30, 2017

(April 1, 2016 -September 30, 2016) (April 1, 2017 - September 30, 2017)

Operating activities
Profit before income taxes
Depreciation and amortization other than amortizationof goodwill
Loss on impairment of fixed assets
Amortization of goodwill
Gain on negative goodwill
Loss on step acquisitions
Loss on business withdrawal
Increase (decrease) in liability for retirement benefits
Interest and dividend income
Interest expenses
Exchange (loss) gain, net
Gain (loss) on sales of investment securities,
investments in capital, shares of subsidiaries andaffiliates, and investments in capital of subsidiaries andaffiliates, net
Increase in notes and accounts receivable
Increase in inventories
Increase in notes and accounts payable
Other,net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible fixed assets included in otherassetsPurchases of investments in securities
Proceeds from sales of investments in securities
Purchases of investments in capital
Purchase of share of subsidiaries resulting in change inscope of consolidation
Proceed from sales of shares of subsidiaries resulting
in change in scope of consolidation(Increase) decrease in short-term loans receivable
Decrease (increase) in time deposits, net
Other,net
Net cash used in investing activities

－

10 －

7,080

13,018

4,590

4,589

38
771
1,709
(899)
459
(514)

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

211

(8)

(9,198)(266)
7,445(2,924)
8,502
1,137
(475)
(4,419)4,744(21,157)(5,630)15,024
1,243
8,433
1,192
(549)
(2,568)6,508(6,121)154(3,410)
58

(638)

(183)

(1,100)
1,954
(53)

(325)
16
(49)

-

(6,004)

293

-

(3)
197
108
(5,209)

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

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018
Financing activities
Increase in short-term loans, net
Increase in commercial paper
Proceeds from long-term loans
Repayments of long-term loans
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other,net
Net cash used in financing activities
Effects of exchange rate changes on cash and cash
equivalents
Net (increase) decrease in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents, at end of the period－ 11 －

2,506
24(1,395)(1,104)(2,032)
(254)

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

(47)

(453)

(16)
(2,320)0
7,346(2,031)458(4,817)42,9004,091
39,730-4

38,083

43,826

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018(4) Notes related to Quarterly Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.

(Segment Information, etc.)
Segment Information
I Six-month period ended September 30, 2016 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Advanced
Functional
Automotive
Life &
Materials & Electronics
Materials& Energy Healthcare
Processing

Total

Other
(Note) 1.

Total

Corporate Adjustments(Note) 2.
(Note) 3.

To Quarterly
Consolidated
Financial
Statements(Note) 4.

Net sales
Sales tocustomers
Intersegment
sales/transfers
Total
Segment income(loss)

74,128120,224

62,51952,413

41,266

350,552

312

350,865--

350,865

855

1,186

792

1,260

242

4,336

3,075

7,412

-

(7,412)-

74,983

121,41063,31253,67341,509354,889

3,388

358,277-(7,412)350,865

1,851

2,657

3,188

518

1,850

10,066106

10,172(3,212)

282

7,242

(Note) 1. Other is a business segment consisting of businesses not included in reportable segments, and includes logistics services,
information processing services, and professional services.
2. Corporate segment income (loss) represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of Segment income (loss), Corporate, and Adjustments is equivalent to operating profit as presented in the
consolidated statements of income.
II Six-month period ended September 30, 2017 (consolidated)
1. Information related to net sales and income (loss) by reportable segment(Millions of yen)
Reportable Segments
Advanced
Functional
Automotive
Life &
Materials & Electronics
Materials& Energy Healthcare
Processing

Total

Other
(Note) 1.

Total

Corporate Adjustments(Note) 2.
(Note) 3.

To Quarterly
Consolidated
Financial
Statements(Note) 4.

Net sales
Sales tocustomers
Intersegment
sales/transfers
Total
Segment income(loss)

84,790131,839

65,70562,74542,123

387,205

295

387,501--

387,501

1,190

1,139

1,005

1,333

223

4,892

2,300

7,193

-

(7,193)-85,980132,979

66,71164,07942,347392,098

2,596

394,694-(7,193)

387,501

2,645

3,580

4,354

1,437

2,335

14,353148

14,501(2,086)190

12,606(Note) 1. Other is a business segment consisting of businesses not included in reportable segments, and includes logistics services,
information processing services, and professional services.
2. Corporate segment income (loss) represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of Segment income (loss), Corporate, and Adjustments is equivalent to operating profit as presented in the
consolidated statements of income.

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12 －

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2018

(Significant Fluctuations in Shareholders’ Equity)
No matters to report.

(Changes in Significant Subsidiaries during the Period)
During the consolidated first quarter, the Company acquired shares of INKRON LIMITED (specified subsidiary). Accordingly,
the Company included INKRON LIMITED and two INKRON LIMITED subsidiaries (Inkron Oy and Inkron Technologies
GmbH) in the scope of consolidation.

3. Supplementary Information(1) Overseas Sales
ⅠSix-month period ended September 30, 2016 (consolidated)
GreaterChina
I Overseas sales(Millions of yen)

96,069ASEAN

Americas48,954

14,090Europe

Other

5,257

Total

7,463

II Consolidated sales

350,865(Millions of yen)
III Ratio of overseas sales toconsolidated sales (%)

171,835

27.4

14.0

4.0

1.5

2.1

49.0

ⅡSix-month period ended September 30, 2017 (consolidated)
GreaterChina
I Overseas sales(Millions of yen)

106,886

ASEAN

Americas53,636

17,084

Europe

Other

7,369

Total

9,926

II Consolidated sales

387,501(Millions of yen)
III Ratio of overseas sales toconsolidated sales (%)

194,904

27.6

13.8

4.4

1.9

2.6

(Note)
1. Overseas sales consist of net sales of the Company and consolidated subsidiaries in other countries or regions.
2. Countries/regions are determined by geographical proximity.
3. Major countries in each region(1) Greater China......China, Hong Kong, Taiwan(2) ASEAN...............Thailand, Singapore(3) Americas.............U.S., Mexico(4) Europe................Germany(5) Other...................Korea

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13 －

50.3