Consolidated Financial Statements for the Year Ended March 31, 2012
<Under Japanese GAAP>May 8, 2012
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

Stock exchange listing: Tokyo, Osaka (First Sections)
NAGASE & CO., LTD.
Code number:
8012 (http://www.nagase.co.jp)
Representative:
Hiroshi Nagase, Representative Director and President
Contact:
Masanori Furukawa, General Manager, Corporate Accounting Division
Tel: +81-3-3665-3103
Annual General Meeting of Stockholders (scheduled): June 28, 2012
Start of Distribution of Dividends (scheduled):
June 29, 2012
Securities Report Filing:
June 29, 2012
Supplementary Documents:
Yes
Investors’ Meeting:
Yes(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Year Ended March 31, 2012
(April 1, 2011 to March 31, 2012)(1) Consolidated Operating Results(% = year-on-year change)

Net sales
Millions of yen
631,854660,213FYE March 2012
FYE March 2011

(Notes) Comprehensive income

Operating profit
%
(4.3)
9.3

FYE March 2012:
FYE March 2011:

Earnings per share(Reference) Equity in earnings of affiliates

Ordinary income%(28.3)
42.7

Millions of yen
15,69020,625

Net income%(23.9)
40.2

Millions of yen
8,570
12,823%(33.2)
70.1¥7,282 million (20.8% decrease)¥9,191 million (58.3%)

Earnings per share(diluted)

Yen
66.69
99.76

FYE March 2012
FYE March 2011

Millions of yen
13,427
18,732Return on equity

Yen

%
4.2
6.5

−
−

FYE March 2012:
FYE March 2011:

Ordinary income/total assets

Operating income/net sales

%
3.8
5.5

%
2.1
2.8

¥368 million¥300 million(2) Consolidated Financial Position
Total assets
Millions of yen
450,842375,336FYE March 2012
FYE March 2011

(Reference) Equity capitalFYE March 2012:
FYE March 2011:

Net assets
Millions of yen
212,744
209,316

Net worth ratio

Net assets per share
%
45.4
53.7

Yen
1,592.87
1,568.04

Cash flows from financing
activities

Cash and cash equivalents,
end of the year

Millions of yen
56,961
3,564

Millions of yen
28,517
47,202¥204,706 million¥201,516 million(3) Consolidated Cash Flows
Cash flows from operating
activitiesFYE March 2012
FYE March 2011

Millions of yen
5,690
10,997

Cash flows from investing
activities
Millions of yen(81,066)(9,147)

2. Dividends
Annual dividend per share
1Q
Yen

2Q

3Q

FiscalYear End

Yen

AnnualFYE March 2011
FYE March 2012

−
−

Yen
9.00
12.00

−
−

Yen
13.00
12.00

Yen
22.00
24.00

FYE March 2013 (estimate)

−

13.00

−

13.00

26.00

Total dividends
paid(full fiscal year)

Payout ratio(consolidated)

Dividends/
net assets(consolidated)

Millions of yen
2,827
3,084

%
22.1
36.0

%
1.4
1.5

21.6

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2013
(April 1, 2012 to March 31, 2013)
Net sales
2Q (cumulative)
Full fiscal year

(Note)

Millions of yen−
700,000

Operating profit
%
−
10.8

Millions of yen−
19,500(% = year-on-year change)

Ordinary income
%
−
45.2

Millions of yen−
20,500%−30.7

Earnings per
share

Net income
Millions of yen−
15,500

%
−
80.9

Yen
−
120.61As the Company only discloses full-year earnings targets, we have omitted presentation of interim consolidated results
here.

* Notes(1) Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in thescope of consolidation): Yes
New 1 (Company Name: Hayashibara Co., Ltd.)
Excluded: ― (Company name:)(2) Changes of accounting policies or presentation methods in the consolidated financial statements
i. 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(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)
March 31, 2012

138,408,285 shares

March 31,2011

138,408,285 shares

ii. Number of treasury stock as of the fiscal period end
March 31, 2012

9,893,787 shares

March 31,2011

9,893,808 sharesiii. Average number of shares during the period:
March 31, 2012

128,514,527 shares

March 31,2011

128,535,317 shares* Disclosure of Audit Procedure ProgressThis earnings report is exempt from audit procedures as provided by the Financial Instruments and Exchange Act.
Consolidated financial statements were undergoing the audit process at the time of the release of this report.
* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
Earnings forecasts presented in this document are based on information available and assumptions deemed rational at
the time. Actual performance could differ materially from forecasts due to a variety of factors.
Please refer to 1. Business Performance, pages 2 through 9 of the attached supplementary documents for further
information.

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

{ Attachments
1. Business Performance ................................................................................................................. 2(1) Analysis of Business Performance ........................................................................................... 2(2) Analysis of Financial Position.................................................................................................. 6(3) Dividend Policy and Dividends for the Fiscal Years Ended March 2012 and March 2013 ..... 7(4) Operating and Other Risks ....................................................................................................... 7
2. Management Policies ................................................................................................................ 10(1) Basic Management Policy ...................................................................................................... 10(2) Management Objectives and Medium-Term Strategies ......................................................... 10(3) Issues to be Addressed by the Company ................................................................................ 11
3. Consolidated Financial Statement ............................................................................................. 13(1) Consolidated Balance Sheets.................................................................................................. 13(2) Consolidated Statement of Income and Consolidated Statements ofComprehensive Income .......................................................................................................... 15(3) Consolidated Statement of Change in Shareholders’ Equity.................................................. 17(4) Consolidated Statements of Cash Flows ................................................................................ 20(5) Assumption for Going Concern.............................................................................................. 21(6) Changes in Basic Matters related to the Preparations of Consolidated
Financial Statements............................................................................................................... 21(7) Notes related to Consolidated Financial Statements .............................................................. 22(Business Combinations)........................................................................................................ 22(Segment Information) ........................................................................................................... 27(Per-Share Data) ..................................................................................................................... 32(Significant Subsequent Events)............................................................................................. 32
4. Other ......................................................................................................................................... 33
Financial Highlights (Consolidated)....................................................................................... 33-1-

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

1. Business Performance(1) Analysis of Business Performance(Performance for the Fiscal Year Ended March 2012)a. General Summary of Results
Despite signs of recovery from the March 11 earthquake and tsunami, the future of the Japanese economy
remained murky throughout the period. A slow international economy due to the impact of the European
financial crisis, historical highs in the yen valuation, and the flooding in Thailand were just some of the factors
contributing to the overall sense of unease.
Cumulative consolidated earnings for the fiscal year showed domestic sales of ¥366.36 billion (5.9%
year-on-year decrease), with overseas sales of ¥265.48 billion (2.0% decrease). Net sales amounted to ¥631.85
billion, which was a 4.3% year-on-year decline.
In addition to the decline in net sales, Nagase experienced an increase in selling, general and administrative
expenses, including personal expenses(including actuarial losses) and depreciation and amortization. As aresult, operating profit for the year amounted to ¥13.42 billion (28.3% year-on-year decrease), ordinary income
amounted to ¥15.69 billion (23.9% decrease), and net income amounted to ¥8.57 billion (33.2% decrease).
b. Segment Summary[Chemicals] Sales: ¥251.94 billion (6.8% year-on-year decrease)
Sales decreased as a whole for the year. Despite growing sales in Southeast Asia and Europe/U.S., theCompany experienced declining performance domestically and in Northeast Asia.
• Sales in our colors and imaging business related to dyes/additives, information printing, and dyestuffs/fiber
processing agents for the fiber processing industry all experienced declines. Significant year-on-year
decreases in sales of functional dyes for display-related products contributed further to an overall decline.
• Performance chemical business sales performed on par with prior-year levels as a whole. We saw a decline insales of plastic materials and additives to the Asian market, as well as a drop in sales of urethane materials
due to the decline in automotive production during the first half of the year. Meanwhile, we experienced anincrease in domestic sales of coating raw materials, which buoyed performance as a whole.
• Sales of specialty chemicals as a whole declined year on year. Sales of surfactants, raw materials forindustrial oil solutions and fluorochemicals in our specialty chemicals business increased compared to theprior year. On the other hand, sales of organic products declined, as did sales of precision abrasive materials
for hard disk drive and semiconductor applications, mainly due to the impact of the March 11 disaster and theThailand flooding. In addition, sales of products from our domestic manufacturing subsidiary Nagase
ChemteX Corp. were weak throughout the period.
[Plastics] Sales: ¥219.2 billion (1.3% year-on-year decrease)
Despite higher sales in Europe, the United States and Japan, sales in Northeast and Southeast Asia declined.
As a result, sales in the Plastics segment decreased year on year.
• Despite lower sales of domestic manufacturing group companies, domestic sales to office automation andcustomer electronics business showed steady growth.
In spite of this growth, financial concerns in Europe and the Thailand flooding led to lower exports of resin
raw materials, and export of injection molding-related products to China also declined significantly.
Leading to an overall year-on-year decline in this category.
• In our automotive-related business, we experienced a comparative decline in first-half domestic sales due tothe lasting impact of the March 11 disaster. However, sales recovered throughout the second half of the fiscal-2-Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

year. Despite the flooding in Thailand, sales in Northeast Asia, Southeast Asia, and North America grewcompared to the prior fiscal year, leading to sales gains in our automotive-related business as a whole.
• Sales of functional films and sheet and plastics molding products declined overall compared with the priorfiscal year. Sales of functional films for LCD TVs and power connectors and anti-reflective sheet for suchelectronic devices as mobile phones declined. As well, sales of precision inspection systems for liquid crystal
polarizer films declined significantly.
[Electronics] Sales: ¥110.51 billion (5.2% year-on-year decrease)
Despite an increase in sales to Northeast Asia and North America, the Company experienced a drop in sales
domestically, in Southeast Asia, and Europe, leading to an overall decline in segment sales for the fiscal year.
• The Electronic chemicals business experienced lower overall sales for the period. Sales in formulated epoxy
resins for heavy electrical equipment and mobile phone applications continued to be strong. However, theMarch 11 disaster and user manufacturing adjustments led to lower sales in chemicals for TV LCD panels
and chemicals for production of semiconductor-related products.
• Electronic materials sales fell overall, despite strength in optical film and touch panels, smartphones, andproducts for LED lighting. These gains were offset by our pull-out from the domestic TV LCD panel
components processing business.
[Life Sciences] Sales: ¥49.17 billion (2.1% year-on-year decrease)
While domestic sales in this segment were on par with the prior fiscal year, we saw lower sales in Europe andSoutheast Asia, driving sales down as a whole compared to the prior year.
These consolidated results include the non-cumulative March 2012 earnings of our newest consolidated
subsidiary, Hayashibara (sales of ¥2.07 billion).
• Our fine chemicals business experienced lower overall sales. Injection medicines and other liquid medicines
for pharmaceuticals performed well; however, sales decreased for pharmaceutical raw materials andintermediates and daily commodities, as did sales of products in our agricultural-related businesses. Lower
sales of Nagase ChemteX products led to lower performance in enzyme and fermentation products sales.
• Our beauty care products business, dealing in cosmetics and health foods, experienced sales declines
compared to the prior fiscal year. While a new cosmetics product launched during the second quarterrecorded strong results, sales of health foods and make-up products introduced during the prior fiscal year
fell.
[Other] Sales: ¥1.01 billion (9.1% year-on-year increase)
No specific items to report in this segment for the year under review.

-3-Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Forecast for the Fiscal Year Ending March 2013)(Millions of yen)
Net sales

Operating profit

Ordinary
incomeNet income

Year ending March 31, 2013

700,000

19,50020,50015,500Year ended March 31, 2012

631,854

13,427

15,6908,570

Change+10.8%+45.2%+30.7%+80.9%

a. Performance Forecast for the Fiscal Year Ending March 2013
While we expect that the economies of emerging countries will continue to be strong for throughout the next
fiscal year, the future of the economy in the United States and Europe remains cloudy due to European
financial concerns and other factors. On top of oil price highs, a strong yen, overseas economic issues, andother concerns, Japan will also be dealing with summer electricity supply worries domestically. However, weare beginning to see signs of steadiness in our economy, and we believe we will be able to avoid a double-dip.
We launched our new medium-term management plan “Change-S2104” in response to this market
environment. Our basic strategy under this plan is to accelerate the improving quality of our business andmanagement (Speed up), bring the total strength of the Nagase Group to bear throughout the value chain in our
strategic markets (Step up), and to expand our unique solutions globally, creating sustained growth(Sustainable growth). We believe that achieving these basic strategies will lead to continued improvements incorporate value.
We forecast fiscal 2013 consolidated net sales of ¥700.0 billion (10.8% year-on-year increase), operating profitof ¥19.5 billion (45.2% increase), ordinary income of ¥20.5 billion (30.7% increase), and net income of ¥15.5
billion (80.9% increase).
We have assumed an average exchange rate of ¥78 per U.S. dollar in our full-year forecasts.
(Impact of the Hayashibara Acquisition)
The Company acquired Hayashibara Co., Ltd. during the fiscal year under review, making Hayashibara a
consolidated subsidiary. Our forecasts include a contribution of ¥27.3 billion in net sales, ¥3.0 billion in
operating profit, and ¥2.6 billion in net income from this new subsidiary for the next fiscal year.
These figures also reflect selling, general, and administrative expenses of ¥3.0 billion related to amortization of
intangible fixed assets (including goodwill) connected with the purchase of Hayashibara shares.
(Change in accounting method for depreciation of property, plant and equipment in domestic companies)
The Company and domestic affiliates changed our method of accounting for depreciation of property, plantand equipment from the declining balance method to the straight-line method. We believe this change willmore correctly reflect the relationship of revenues and expenses in our business. We have also revised ourestimate of the useful lives of certain assets. Accordingly, we forecast a ¥2.2 billion decrease in depreciation
and amortization expense compared to our former accounting method, and we have reflected this change in thepreceding earnings forecast.
b. Forecast by Business Segment
To date, we have categorized our products into four business segments: chemicals, plastics, electronics, andlife sciences. However, we have reorganized our business segments to more fully concentrate the strengths of
our entire group, reflecting the respective positions of each business in the value chain, as well as the mostclosely aligned industry. This realignment has resulted in 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, Automotive & Energy, and Life & Healthcare (these last three segments functioning acrossall industries).
-4-Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

We forecast segment sales of ¥194.0 billion in Functional Materials, ¥236.0 billion in Advanced Materials &Processing, ¥117.0 billion in Electronics, ¥77.0 billion in Automotive & Energy, ¥75.0 billion in Life &Healthcare, and ¥1.0 billion in Other.
Our forecasts are based on information available at the time of our calculations. Actual performance may differ
according to international and domestic economic trends, foreign currency exchange rates, and other factors.
(Millions of yen)FYE March 2012
ActualNew Segments

FYE March 2013
Forecast

Functional Materials

177,126

194,000

Advanced Materials &Processing

217,930

236,000

Electronics

110,496

117,000

Automotive & Energy

76,11477,000Life & Healthcare

49,17075,000

Other

1,018

1,000

631,854700,000

Net Sales* We recalculated FYE March 2012 Actual figures to reflect these new segment categories.

-5-Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(2) Analysis of Financial Positiona. Summary of Consolidated Balance Sheets
Current assets increased by ¥4.97 billion compared to the balance at the end of the prior consolidated fiscal
year, reaching ¥282.28 billion. This increase was due in part to an increase in notes and accounts receivable,
stemming from the fact that the end of the current consolidated fiscal year was a bank holiday.
Non-current assets amounted to ¥168.56 billion, representing an increase of ¥70.52 billion over the priorconsolidated fiscal year end. This increase was primarily due to an increase in goodwill and technology-based
assets in conjunction with the Company’s purchase of Hayashibara.
Liabilities amounted to ¥238.09 billion, which was a ¥72.07 billion increase over the prior consolidated fiscal
year end. This increase was mainly due to an increase in debt to finance the Company’s purchase and supportof Hayashibara.
Net assets amounted to ¥212.74 billion, representing an increase of ¥3.42 billion over the prior consolidated
fiscal year end.
This increase was primarily attributable to a rise in retained earnings, which resulted from the posting of net
income in the fiscal year under review.Lower translation adjustments due to the strength of the yen were offset
by this rise in retained earnings.
As a result, our net worth ratio was 45.4%, an 8.3-point decrease compared to our 53.7% net worth ratio at theend of the prior consolidated fiscal year.
b. Summary of Consolidated Cash Flows
Cash flows from operating activities amounted to ¥5.69 billion. Income before income taxes offset increased
notes and accounts receivable.
Cash used in investing activities amounted to ¥81.06 billion, mainly due to the Company’s investment andfinancing related to the Hayashibara acquisition.*
Cash flows from financing activities amounted to ¥56.96 billion. This result was mainly due to an increase in
debt to finance the Company’s investment and financing of Hayashibara.
As a result of the preceding, cash and cash equivalents at the end of the current consolidated fiscal year
amounted to ¥28.51 billion, representing a ¥18.68 billion decrease compared to the prior consolidated fiscal
year end.
* The entire ¥70 billion in investment and financing related to Hayashibara has been allocated to repayment of
rehabilitation claims and security interests according to Hayashibara corporate reorganization proceedings.
c. Trends in Cash Flow IndicatorsFYE March
2008

FYE March
2009

FYE March
2010

FYE March
2011

FYE March
2012

Net worth ratio

47.8%

54.1%

53.1%

53.7%

45.4%

Net worth ratio based on market value

31.2%

28.7%

40.8%

33.9%

29.2%

Interest-bearing debt to cash flow ratio−

0.9 years

0.8 years

2.5 years

15.6 years

Interest coverage ratio

−

36.0

44.7

19.5

8.9

(Notes) Net worth ratio: Equity capital/total assets
Net worth ratio based on market value: Market capitalization/total assets-6-

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

Interest-bearing debt to cash flow ratio: Interest-bearing debt/operating cash flow
Interest coverage ratio: Operating cash flow/interest payments* Indicators are calculated based on consolidated figures.
* 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).
* 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 for which interest is payable as presented in the consolidated balance
sheets. Interest payments are the amount of interest paid as presented in the consolidated statements of cash flows.

(3) Dividend Policy and Dividends for the Fiscal Years Ended March 2012 and March 2013
Our basic policy is to continue paying a stable dividend to our shareholders in line with our consolidated results as
we improve our earnings power and management structure. We look to improve per-share dividends based on
considerations of consolidated payout ratio and consolidated dividend to equity ratio. We also plan to use funds
from internal reserves effectively in our business activities and to build a stronger management foundation.
The Nagase Group declared a year-end dividend of ¥12 per share based on this policy, resulting in a scheduled
full-year cash dividend of ¥24 per share.
We forecast a full-year dividend of ¥26 per share for the next fiscal year, consisting of a ¥13 per share interim
dividend and a ¥13 per share year-end dividend.

(4) Operating and Other Risks
The Nagase Group is engaged in trading, marketing, research and development, manufacturing and processing insix business segments across the world: Functional Materials, Advanced Materials & Processing, Electronics,
Automotive & Energy, Life & Healthcare, and Other. The nature of these businesses entails various risks that may
have a material effect on investment decisions. We provide a discussion of the major risks below.
Any forward-looking statements are based on management decisions as of the end of fiscal March 2012.
a. Overall Operating Risk
The Nagase Group is engaged in activities that rely on the use of chemicals across a wide spectrum of products
and services through our Functional Materials, Advanced Materials & Processing, Electronics, Automotive &Energy and Life & Healthcare bussiness. These products and services include dyes/pigments, coating
materials/inks, surfactants, OA, electrical equipment, home electronics, automobiles, LCDs, semiconductors,
and pharmaceutical/medical applications. Accordingly, significant changes in domestic and internationalcommercial chemicals industry could affect the Nagase Group’s earnings and financial condition.
b. Product Market Conditions
The Nagase Group relies heavily on petrochemicals manufactured from naphtha in our Functional Materials,
Advanced Materials & Processing, and Automotive & Energy segments. Raw materials markets anddemand-supply balance are two factors that result in unique market circumstances for each of our products.
Fluctuations in these factors could affect our revenues and profits in related product lines.
Some products manufactured by the Group use raw materials derived from grains. Raw materials costs
fluctuate widely due to changes in grain market prices; we may not be able to pass on increased raw materials
costs through higher sales prices, which could affect our profits in related product lined.

-7-

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

c. Impact of Fluctuations in Foreign Currency Exchange Rates
The Nagase Group conducts import/export as well as non-trade business transactions denominated in foreign
currencies. Fluctuations in currency markets have a significant impact when prices are converted to yen. While
the Group executes exchange contract hedges for these transactions to minimize exchange rate risk to thegreatest extent possible, currency exchange rate fluctuations could have a significant impact on Group earnings
and financial conditions. The Nagase Group owns foreign-domiciled corporations whose financial statements
are prepared using local currencies. The conversion of these currencies to Japanese yen for consolidated
reporting purposes entails currency conversion risk due to fluctuating exchange rates.
d. Impact of Fluctuations in Interest Rates
The Nagase Group obtains funds for operating and financing activities through loans from financial
institutions; some of these loans are interest-bearing debt including variable interest terms. The Group reduces
interest rate fluctuation risk related to variable interest loans by utilizing interest-rate swap contracts. Groupearnings and financial conditions may be affected by future interest rate trends.
e. Risks Involved in Operating Overseas
A significant and increasing percentage of Nagase Group sales and manufacturing are conducted overseas inlocations such as China, Southeast Asia, Europe, and the United States. While Group management keeps aclose eye on local trends and conditions in order to respond appropriately, unforeseen events stemming fromlocal government regulations, business customs, or other influences could have a significant impact on Groupbusiness performance and financial conditions.
f. Impact of Changes in Stock Prices
The Nagase Group maintains a portfolio of marketable securities, primarily equity shares of companies doing
business with the Group. These equity investments are subject to share price fluctuation risks. As a matter ofpolicy, the Nagase Group reduces risk by continuously reviewing and reorganizing its shareholdings. However,changes in share prices could impact Group earnings and financial condition. A decline in share prices could
damage the value of pension plan assets managed by the Group, increasing retirement benefit costs and thereby
reducing Group profits.
g. Counterparty Credit Risk
The Nagase Group extends credit to domestic and overseas purchasers in connection with various transactions.
As a matter of policy, the Nagase Group reduces credit risk by obtaining guarantees and collateral according to
the financial condition of the purchaser. Although the Nagase Group strives to ensure stable, uninterrupted
product procurement, financial weakness or bankruptcies among suppliers or others could damage the Group’s
ability to procure goods. Such circumstances could have a significant impact on the Group’s earnings andfinancial condition.
h. Risk of Investments[F1]
The Nagase Group business is based on brokered transactions. At the same time, the Group continues to lookfor new high-value business opportunities. Accordingly, we support the Nagase R&D Center and domestic
manufacturing subsidiaries in their pursuit of new business through proactive investment and strategic mergers
and acquisitions, using advanced technologies and information-gathering capabilities as leverage.
As a result of pursuing new business, the Group will be exposed to greater risk than were we to follow a
conventional brokered business model. The book value of business assets and intangible fixed assets (goodwill,etc.) when acquiring other companies becomes an important management topic. If future cash flows from new
businesses underperform projections, and the Group records correlating impairment losses, such losses may
have a significant impact on Group earnings and financial condition.

-8-

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

i. Product Quality Risk
The Nagase Group operates the Nagase R&D Center and domestic manufacturing subsidiaries to offer
high-value-added products to our customers. We pay detailed attention to the quality of the technologies andproducts that bear the name of Nagase and our affiliates. We also bear manufacturers’ liability for products that
we handle as an importer, and accordingly treat these products with the same attention to detail and quality as
if they were made in our own facilities. However, product defects could result in cessation of sales and/or
product recalls, exposing the Nagase Group to liability for damages, which could have a significant impact onGroup earnings and financial conditions.
j. Risks of Handling Various Chemicals
The Nagase Group imports and exports a variety of chemicals in the performance of our main business lines.
To maintain international peace and safety, the chemicals we export are subject to different laws, including theForeign Exchange and Foreign Trade Control Law and the Export Trade Control Order. Imports are subject to
the Law Concerning the Examination and Regulation of Manufacture, etc. of Chemical Substances (Chemical
Substances Control Law) and other related statutes. To ensure compliance, the Group has established the
Security Trade Control Committee and the Chemical Management Committee. While these committees arecharged with assuring compliance to both Japanese law and the various chemical control regulations of China,
Southeast Asia, Europe, the United States and other regions, violation of such laws and statutes could result in
restrictions on Group business activities, having a significant impact on Group earnings and financial
condition.
k. Risks of Natural Disasters
The Nagase Group has put emergency response systems in place, including the creation of a business
contingency plan, the adoption of safety confirmation systems, the creation of a disaster-response manual,
earthquake-response measures, disaster-response training, and other measures to deal with natural disasters.
However, as we conduct business across a great number of countries and regions, we are exposed to the risk ofmajor natural disasters, H1N1 influenza and other communicable diseases, and other emergencies that could
disrupt our supply chain. Such disruptions could prevent us from selling our products or damage the
manufacturing capabilities of important Group facilities. Such interruptions would result in opportunity loss,
and could have a significant impact on Group earnings and financial condition.

-9-

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

2. Management Policies(1) Basic Management Policy
Management Philosophy
The Nagase Group is a member of the world society. As such, it is our duty to maintain good and fair businesspractices and, through continued growth and development, provide society with the goods and services needed
while improving the welfare of our employees.
Consistent with this management philosophy, we believe our most important goal is to contribute to society,including efforts to maintain good and fair business practices, while ensuring continued growth and development.
Guided by our Group slogan to be a “technology- and intelligence-oriented company that turns wisdom intobusiness,” we strive to become a unique company that combines the functions of a trading company with that ofmanufacturing, taking advantage of technologies and wisdom, tempered by experience. We will continue to createstronger functions and offer better business solutions as we become our customers’ partner of choice in business.

(2) Management Objectives and Medium-Term Strategies
Based on this management philosophy, we created the following objectives and strategies as we work toward our
vision for the future.
• Allow stakeholders to realize their dreams and ideals through our business• Continue to grow and increase value, using our strengths in technology• Anticipate changes in the market structure and environment, growing together with our customers as we offer
unique solutions• Contribute to making a better society and global environment
In April 2009, we began execution on our three-year “Change” 11 business plan, pursuing a basic strategy to
improve business and operations. Under this plan, we acted on important polices and conducted proactive
investment in our priority business areas. The fiscal year ended March 2012 was the last year of the “Change” 11business plan. Net sales for the fiscal year amounted to ¥631.8 billion (versus a ¥720.0 billion target), with
operating profit of ¥13.4 billion (versus a ¥15.0 billion target). While we missed our operating profit target, weinvested a total of ¥107.4 billion over three years (versus a ¥30.0 billion target), including our investments inHayashibara Co., Ltd., expanding our manufacturing capacity and extending into new businesses. Having createdstronger bases of operations overseas, we were able to increase our gross profit ratio from 10.0% in fiscal 2009 to
11.3%, reflecting a Group-wide commitment to cost restructuring and a new spirit of cooperation that led to amore robust business and operation foundation.
We recognize that structure and qualitative changes in the external environment are happening at an even fasterpace. In response, we know that we must accelerate the pace of structural evolution in our business and operations
if we are to reach our established vision of the future. Accordingly, we have created “Change-S2014,” our new
three-year business plan to carry us through the next three years, beginning April 2012.

- 10 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

The theme of Change-S2014 is to ACCELERATE CHANGE, pursuing a basic strategy to accelerate theimproving quality of our business and operations (Speed up), to bring the total strength of the Nagase Group to
bear throughout the value chain in our strategic markets (Step up), and to expand our unique solutions globally,
creating sustained growth (Sustainable growth). In executing this basic strategy, we have reorganized four of ourbusiness segments to reflect more fully the respective positions of each business in the value chain, as well as withthe most closely aligned industry. This realignment has resulted in 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, Automotive & Energy, and Life & Healthcare (these last three segments functioning across allindustries). Each business segment is tasked with ACCELERATING CHANGE, following two key strategies:
Globalization and the creation of high-added-value businesses. Nagase further looks to improve existing
businesses and create new opportunities by taking advantage of the Group’s strengths in core fields related tobioscience, environment and energy, and electronics. This will be accomplished by combining the Group’s
foundational technologies with the functions of each business segment.
Another task for the Group is to improve our management foundation in order to respond to the changing external
environment and evolution of the Group’s business structure.
Our target performance indicators for the final year of our Change-S2014 plan (FYE March 2015) are consolidated
net sales of ¥800.0 billion, consolidated operating profit of ¥30.0 billion, and return on equity of 8.0%. We also
intend to invest ¥40.0 billion over the next three years, concentrating on our priority business fields in order toachieve qualitative change and quantitative growth.

(3) Issues to be Addressed by the Company
We began executing on our new Change-S2014 three-year plan in April 2012. Under this plan, we have definedGroup-wide initiatives to address issues of creating stronger capabilities in core businesses and a stronger
management foundation, based on the strategies outlined above.
[Stronger Capabilities in Core Businesses]a. Fields Utilizing Bioscience Technologies
Working from the Hayashibara business, we will create a quicker feedback loop from the market through the
integration of the Nagase Group research and development and sales functions. Our goal is to create highly
original bio-related products, expanding sales of the same throughout the world, which will lead to stronger
competitive position and higher growth in the medical, food, health and beauty markets within our Life &Healthcare business.
We have also identified potential applications of bio-related technologies for general commercial use and uses
in long-term renewable resources.
b. Fields Utilizing Environment/Energy-Related Technologies
The Nagase Group is creating a new business model anticipating global technological innovations in green
energy, bringing our entire force to bear in businesses focused on friendly manufacturing (using electricity
generated from PV, wind power, and other renewable sources), smart grids, and energy conservation systems,
as well as next-generation automobiles that make smart use of resources.
We are also advancing research into reducing the environmental burden of business, such as chemical
recycling and creating lighter components for automobiles.
c. Fields Utilizing Electronics-Related Technologies
The electronics field is one of rapid technological innovation and structural change. Here, our goal is to expand
our business by offering highly innovative technologies, products, and services that meet the needs of ourcustomers.
- 11 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

To accelerate the pace of growth in the global market, we will create more nimble manufacturing anddevelopment capabilities overseas.
[Stronger Management Foundation]
Where the Japanese market has slowed compared to the growing markets in emerging countries, the Nagase Grouphas chosen to focus expanding business in emerging and other international markets, establishinghigh-value-added businesses using our manufacturing and processing functions. Through investments in
manufacturing, we have increased Group-wide manufacturing and processing bases in Japan and around the world,changing the fundamental shape of internal risk in the Group’s manufacturing businesses.
To respond to these internal and external changes, we are engaged in creating a stronger consolidated management
structure, building more mature risk management policies, and developing higher-caliber human resources.
With respect to stronger consolidated management structure, we continue build a more efficient Groupmanagement structure, encourage personnel interchange within the Group, and improve our IT infrastructure. To
ensure a sound financial foundation, we are working to balance liabilities and equity at prudent levels, while
keeping an eye open for any changes in our credit rating. At the same time, we are improving our ability toforecast present and future operating cash flows to balance investment (risk assets) and operating cash flows
properly. From a perspective of efficient asset utilization, we are replacing older assets with newer, more
profitable assets.
In terms of risk management, we are in the process of putting stronger systems into place for internal controls, risk
management, and transaction risk control (as a manufacturer) across the Group’s companies.
We are also in the process of establishing a stronger Group management foundation through hiring, training, andutilizing a talented workforce that can respond to the diverse demands of our businesses.

- 12 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Current Consolidated
Fiscal Year
(March 31, 2012)

Prior Consolidated
Fiscal Year
(March 31, 2011)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
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)Land
Others
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
OthersTotal intangible fixed assets
Investments and other assets
Investments in securities
Long-term loan receivable
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 13 -

47,202
186,113
34,033
531
2,150
2,582
5,881
(1,191)
277,304

29,184
197,70241,087
1,292
2,879
4,067
7,299
(1,235)282,280

40,258(22,099)
18,15831,203(24,326)
6,876
11,747
15,601(12,468)
3,133
39,91645,398(24,445)
20,952
51,992(42,856)
9,136
18,52324,282(16,168)
8,114
56,727

1
−
3,672
3,674

32,07921,6693,705
57,45450,726
599
1,046
2,661
(592)
54,441
98,032
375,336

49,014
1,122
896
3,612
(266)
54,379168,561
450,842Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Millions of yen)
Prior Consolidated
Fiscal Year
(March 31, 2011)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term debt
Accrued income taxes
Deferred tax liabilities
Provision for bonuses
Provision for officer bonuses
OthersTotal current liabilities
Long-term liabilities
Long-term debt
Deferred tax liabilities
Accrued retirement benefits for employees
OthersTotal 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)
Unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets- 14 -

Current Consolidated
Fiscal Year
(March 31, 2012)

101,679
15,525
613
3,947
38
3,342
212
13,157
138,517

109,163
38,633
11,551
3,170
50
3,632
198
15,290181,689

10,555
8,810
7,295
841
27,502
166,020

38,2007,251
10,032922
56,407238,097

9,699
10,041
181,665(5,460)195,946

9,699
10,041
186,907(5,460)201,188

13,188(8)(7,610)
5,570
235
7,564
209,316
375,336

12,731(21)(9,191)
3,518
110
7,927
212,744
450,842Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Divided income
Rent income
Investment profit on equity method
Foreign exchange gain
OthersNon-operating income, total
Non-operating expenses
Interest expenses
Cost of rent revenues
OthersNon-operating expenses, total
Ordinary income
Extraordinary gains
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of stock acquisition rights
Gain on reversal of doubtful accounts
Gain on negative goodwill
OthersTotal extraordinary gains
Extraordinary losses
Loss on sale of non-current assets
Loss on disposal of non-current assets
Impairment loss
Loss on sale of investments securities
Loss on valuation of investments securities
Provision for doubtful accounts from affiliates
Loss on step acquisitions
Other
Total extraordinary losses
Net income before income taxes
Income taxes
Deferred taxes
Total income taxes
Net income before minority interests
Minority interests
Net income- 15 -

Prior Consolidated
Fiscal Year
(April 1, 2010 March 31, 2011)
660,213587,204
73,00854,276
18,732Current Consolidated
Fiscal Year
(April 1, 2011 March 31, 2012)
631,854560,226
71,62858,20013,427

224
1,157
250
300
70
878
2,881

268
1,018
260
368
694
874
3,485

568
17
403
988
20,625

692
46
483
1,221
15,690

526
1,190
−
282
20
−
2,020

16
1,759
124
−
−
4
1,905

22
217
50
75
260
699
341
61
1,727
20,918
7,005
280
7,285
13,632809
12,823

5
172
455
5
383
−
−
36
1,058
16,536
6,980
118
7,098
9,438
867
8,570

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

Consolidated Statement of Comprehensive Income(Millions of yen)

Net income before minority interests
Other comprehensive income
Unrealized holding gain on securities
Deferred (loss) gain on hedges
Translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income, parent company
Comprehensive income, minority interests- 16 -

Prior Consolidated
Fiscal Year
(April 1, 2010 March 31, 2011)
13,632Current Consolidated
Fiscal Year
(April 1, 2011 March 31, 2012)
9,438(1,780)(18)(2,531)(456)(13)(1,626)

(110)

(58)

(4,441)
9,191(2,155)
7,282

8,648
542

6,518
764

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(3) Consolidated Statement of Change in Shareholders’ Equity(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2011 March 31, 2012)

Prior Consolidated
Fiscal Year
(April 1, 2010 March 31, 2011)
Shareholders’ equity
Common stock
Balance, beginning of period
Changes
Total changes
Balance, end of period
Capital surplus
Balance, beginning of period
Changes
Disposal of less treasury stock
Total changes
Balance, end of period
Retained earnings
Balance, beginning of period
ChangesCash dividends
Net Income
Changes in scope of consolidation
Changes in scope of equity affiliates
Increase due to merger
Total changes
Balance, end of periodLess treasury stock, at cost
Balance, beginning of period
Changes
Purchases of treasury stock
Disposal of treasury stock
Total changes
Balance, end of period
Total shareholders’ equity
Balance, beginning of period
ChangesCash dividends
Net Income
Purchases of treasury stock
Disposal of treasury stock
Changes in scope of consolidation
Changes in scope of equity affiliates
Increase due to merger
Total changes- 17 -

9,699

9,699

−
9,699

−
9,699

10,04010,0410
0
10,0410
0
10,041

171,286

181,665(2,313)
12,823
(51)
(137)
58
10,379181,665(3,212)
8,570
(118)
3
−
5,241
186,907(5,427)(5,460)

(33)
0
(33)
(5,460)(0)0(0)(5,460)185,599

195,946(2,313)
12,823
(33)
0
(51)
(137)
58
10,346(3,212)
8,570
(0)
0
(118)
3
−
5,242

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Millions of yen)

Balance, end of period
Accumulated other comprehensive income (loss)
Unrealized holding gain on securities
Balance, beginning of period
Changes
Changes other than shareholders’ equity accounts (net)Total changes
Balance, end of period
Deferred (loss) gain on hedges
Balance, beginning of period
Changes
Changes other than shareholders’ equity accounts (net)Total changes
Balance, end of period
Translation adjustments
Balance, beginning of period
Changes
Changes other than shareholders’ equity accounts (net)Total changes
Balance, end of period
Total accumulated other comprehensive income
Balance, beginning of period
Changes
Changes other than shareholders’ equity accounts (net)Total changes
Balance, end of period
Stock acquisition rights
Balance, beginning of period
Changes
Changes other than shareholders’ equity accounts (net)Total changes
Balance, end of period
Minority interests
Balance, beginning of period
Changes
Changes other than shareholders’ equity accounts (net)Total changes
Balance, end of period- 18 -

Prior Consolidated
Fiscal Year
(April 1, 2010 March 31, 2011)
195,946

Current Consolidated
Fiscal Year
(April 1, 2011 March 31, 2012)
201,188

14,961

13,188(1,773)(1,773)
13,188(457)(457)
12,731

8

(8)

(16)
(16)
(8)

(13)
(13)
(21)

(5,225)(7,610)(2,384)(2,384)(7,610)(1,580)(1,580)(9,191)

9,744

5,570

(4,174)(4,174)
5,570(2,051)(2,051)
3,518

235

235

－
－
235

(124)
(124)
110

7,173

7,564

390
390
7,564

363
363
7,927

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Millions of yen)
Prior Consolidated
Fiscal Year
(April 1, 2010 March 31, 2011)
Total net assets
Balance, beginning of period
Changes
Dividends of surplus
Net Income
Purchases of treasury stock
Disposal of treasury stock
Changes in scope of consolidation
Changes in scope of equity affiliates
Increase due to merger
Changes other than shareholders’ equity accounts (net)Total changes
Balance, end of period- 19 -

Current Consolidated
Fiscal Year
(April 1, 2011 March 31, 2012)

202,753

209,316(2,313)
12,823
(33)
0
(51)
(137)
58
(3,783)
6,562
209,316(3,212)
8,570
(0)
0
(118)
3
－
(1,813)
3,428
212,744Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(4) Consolidated Statements of Cash Flows(Millions of yen)
Current Consolidated
Fiscal Year
(April 1, 2011 March 31, 2012)

Prior Consolidated
Fiscal Year
(April 1, 2010 March 31, 2011)
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Others
Sub totalInterest and dividends received
Interest paid
Taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of investment securities
Cash from sale of investment securities
Payment for acquisitions
Change in short-term loans (increase)
Payment for acquisition of intangible fixed assets
OthersCash flows from investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans, net
Proceeds from long-term loans
Repayment of long-term debt
Cash dividends paid
OthersCash flows from financing activities
Effects of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents accompanying
consolidation
Increase in cash and cash equivalents due to merger with
non-consolidated subsidiaries
Cash and cash equivalents, end of period- 20 -

20,9186,387(2,272)(6,472)(4,273)706
14,994
1,596(563)(5,029)10,997

16,536
7,273(10,120)(7,417)
6,712(294)
12,6891,467(637)(7,829)5,690(5,708)(1,588)2,082(460)(1,225)(1,825)(421)(9,147)(11,215)
(914)
2,151
(67,774)(175)(1,420)(1,718)(81,066)

6,114
138
(60)
(2,313)
(313)
3,564

22,97639,257(1,527)(3,212)(532)
56,961(1,253)

(434)

4,161
42,807(18,849)
47,202

204

165

29

−

47,20228,517

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(5) Assumption for Going Concern
No matters to report.

(6) Changes in Basic Matters related to the Preparations of Consolidated Financial Statements(Change in the Scope of Consolidation or Application of Equity Method Accounting)1) Number of consolidated subsidiaries

55

(New)
(Excluded)

512) Number of affiliates accounted under the equity method
(New)

11
2

(Additional Information)
Application of Accounting Standard for Accounting Changes and Error Corrections
Beginning with the current consolidated fiscal year, the Company has adopted Accounting Standard for
Accounting Changes and Error Corrections (ASBJ Statement No. 24, December 4, 2009) and Guidance on
Accounting Standard for Accounting Changes and Error Corrections (ASBJ Guidance No. 24, December 4,2009) to apply to future changes in accounting principles or correction of past accounting errors.

- 21 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012(7) Notes related to Consolidated Financial Statements(Business Combinations)
Current Consolidated Fiscal Year (April 1, 2011 to March 31, 2012)(Business Combination through Acquisition)
Acquisition of Hayashibara Co., Ltd. stock(1) Overview of Business Combinationa. Name and Business Lines of Company Acquired
Name of Business Acquired
Hayashibara Co., Ltd.
Business Lines
Manufacture, research and development, and sales of microorganisms, enzymes and enzyme-processed
products made mainly from starch.
b. Reasons for the Business Combination
We believe that we can expect to develop synergies in terms of research, development, manufacturing, and sales inimportant bio and life sciences businesses to a scale matching the current Nagase Group chemicals, electronics,
and plastics businesses. As such, Nagase acquired all outstanding shares of Hayashibara, making the company awholly owned Nagase subsidiary.
c. Date of Business Combination
February 3, 2012
d. Legal Form of the Business Combination
Stock purchasee. Name of the Company Post-Combination
Hayashibara Co., Ltd.
f. Percentage of Voting Shares Acquired
Number of Shares Acquired in Business Combination

300,000 shares

Percentage of Voting Shares Acquired

100%

g. Main Basis for Decision to Acquire Business
Acquisition of stock paid for using Company cash.
(2) Period of Earnings of Acquired Company Included in Consolidated Financial Statements
March 1, 2012 through March 31, 2012.
(3) Stock Acquisition Price and Details
Acquisition Price
Costs Directly Related to the Acquisition
Acquisition Cost

¥15,000 million¥278 million¥15,278 million(4) Goodwill Amount, Source, Amortization Method and Amortization Perioda. Amount¥30,321 million

b. Source

Goodwill stems from rational expectations for future excess earning
power through business growth.

c. Amortization Method and Period

Straight-line method; 20 years- 22 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(5) Assets Acquired and Liabilities Incurred through Business Combination
Current assets¥15,711 million

Non-current assets¥17,983 million

Total assets¥33,694 million

Current liabilities¥11,814 million

Long-term liabilities¥50,892 million

Total liabilities¥62,707 million(6) Amount and Amortization Period of Intangible Fixed Assets Other than Goodwill
Technology-based assets
Amortization period¥ 21,800 million
13 to 17 years(7) Approximate Amount and Calculation Method of Impact of Business Combination on Consolidated Statements ofIncome for the Current Consolidated Fiscal Year Assuming Acquisition was Completed on the First Day of theCurrent Consolidated Fiscal Year
The Nagase Group is presently making these calculations.

- 23 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Business Combination through Acquisition)
Acquisition of Engineered Materials Systems Inc. stock(1) Overview of Business Combinationa. Name and Business Lines of Company Acquired
Name of Business Acquired
Engineered Materials Systems Inc.
Business Lines
Development, manufacture, and sales of commercial adhesives, conductive adhesives, and encapsulationmaterials
b. Reasons for the Business Combination
Engineered Material Systems Inc. is based in North America. The company manufactures adhesives, sealants,
insulating materials and other high-value-added formulated epoxy resins used in inkjet printers, lighting fixtures,
solar cells and a wide variety of other applications. We believe this company is highly complementary with theNagase Group’s formulated epoxy resin business, and that the company has a strong potential for future growth.
By acquiring shares of Engineered Material Systems, we have secured a production base in North America, as
well as creating an opportunity to integrate technologies with Nagase ChemteX Corp., which we believe will leadto global expansion of our electronics business as we engage in sales of high-value-added products in North
America.
c. Date of Business Combination
January 5, 2012
d. Legal Form of the Business Combination
Stock purchasee. Name of the Company Post-Combination
Engineered Materials Systems Inc.
f. Percentage of Voting Shares Acquired
Number of Shares Acquired in Business Combination
Percentage of Voting Shares Acquired

100 shares
100%

g. Main Basis for Decision to Acquire Business
Acquisition of stock paid for using Company cash.
(2) Period of Earnings of Acquired Company Included in Consolidated Financial Statements
January 5, 2012 through March 31, 2012(3) Stock Acquisition Price and Details
Acquisition Price

US$23 million(¥1,779 million)

Costs Directly Related to Acquisition

US$1 million(¥93 million)

Acquisition Cost

US$24 million(¥1,872 million)* Yen value calculated according to exchange rates on January 5, 2012.
(4) Goodwill Amount, Source, Amortization Method and Amortization Perioda. Amount

US$23 million

b. Source

Goodwill stems from rational expectations for future excess earning
power through business growth.

c. Amortization Method and Period

Straight-line method; 20 years- 24 -(¥1,781million)

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(5) Assets Acquired and Liabilities Incurred through Business Combination
Current assets

US$4 million(¥317 million)

Non-current assets

US$2 million(¥184 million)

Total assets

US$6 million(¥501 million)

Current Liabilities

US$5 million(¥392 million)

Long-term liabilities

US$0 million(¥18 million)

Total liabilities

US$5 million(¥410 million)(6) Approximate Amount and Calculation Method of Impact of Business Combination on Consolidated Statements ofIncome for the Current Consolidated Fiscal Year Assuming Acquisition was Completed on the First Day of theCurrent Consolidated Fiscal YearNot presented, as the amount is immaterial.
(Form of the Jointly Controlled Entity)
Having transferred 50% of the outstanding shares of Nagase Colors & Chemicals Co., Ltd. (formerly a wholly
owned subsidiary) to OG Co., Ltd., Nagase Co., Ltd. is now a 50% equity holder in Nagase Colors & Chemicals.
(Note) Nagase Colors & Chemicals Co., Ltd. changed its name to Nagase-OG Colors & Chemicals Co., Ltd.
after an absorption-type merger with ON Co-Labo Corporation (affiliate accounted for under the equity
method) and the transfer of the textiles and colors and imaging business from OG Co., Ltd.
(1) Overview of the Transaction
a. Name and Business Lines of Company Acquired
Name of Business Acquired
Textile-related businessBusiness Lines
Sales and consulting services related to dyestuffs/fiber-processing agents, functional processing agents,
chemicals, petrochemicals, and textile productsb. Date of Business Combination
December 27, 2011
c. Legal Form of Business Combination
Creation of a jointly controlled entity between the Nagase Group and OG Co., Ltd., each party retaining a 50%
equity interestd. Name of the Company Post-Combination
Nagase Colors & Chemicals Co., Ltd.
e. Other Matters related to the Transaction
The Company and OG Co., Ltd. established ON Co-Labo Corporation as a joint venture in 2007 for the purpose ofdeveloping and expanding a joint textiles-related business in China.
While the two companies had an ongoing competitive relationship within Japan, the decision was made tointegrate domestic and international operations to grow the worldwide textile business through an agreement with
OG Co., Ltd. to form a jointly controlled entity.
f. Determination as a Jointly Controlled Entity
In creating this jointly controlled entity, we signed a basic joint enterprise agreement with OG Co., Ltd. naming
Nagase Colors & Chemicals Co., Ltd. as the joint-investment company. Consideration paid for the businesscombination consisted solely of voting stock. There are no other certain circumstances indicating other controlling
relationships. Accordingly, in our opinion, this business combination was formed as a jointly controlled entity.
- 25 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(2) Overview of Accounting Method(s) Used
Under the Accounting Standard for Business Combinations (ASBJ Statement No. 21, December 26, 2008) and the
Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures(ASBJ Guidance No. 10, December 26, 2008), the Company has treated this transaction as the creation of a jointly
controlled entity.
As a result of this business combination, the Company accounted for Nagase Colors & Chemicals Co., Ltd. as anaffiliate under the equity method beginning with the consolidated third quarter.

- 26 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(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 make regular decisions regarding resource allocationand operating performance.
The Company has established divisions within its headquarters organized along product lines or industries. Eachdivision executes business activities based on a comprehensive domestic and international strategy for each productthe division handles.
Accordingly, the Company consists of segments organized into divisions along product lines or industries. These
reportable segments include Chemicals, Plastics, Electronics, and Life Sciences.

The Chemicals segment is engaged in the sales of chemicals across a wide variety of industries. Major products inthis segment include dyestuffs, pigments, information recording paper-related products, functional dyes, coating/ink
materials, urethane materials, plastic materials, resin additives, industrial oil materials, surfactants, fluorochemicals,sealant materials, and silicone materials.
The Plastics segment is engaged in the sales of Company products to the automotive and auto components
manufacturing, home appliances, office automation, and housing industries. Major products in this segment include
thermoplastic resins, thermosetting resins, synthetic rubber, inorganic materials, plastic products, plastic-related
equipment, devices, dies, and external inspection equipment.
The Electronics segment is engaged in the sales of Company products to the display, touch panel, LCD,
semiconductor, electronics components, and heavy electrical industries. Major products in this segment include
pre-processing materials and devices for LCD/semiconductors, materials for LCD panels, materials and devices forsemiconductor assembly, precision cleaning agents for electronics, low-temperature/vacuum equipment, andhigh-function epoxy resins.
The Life Sciences segment is engaged in the sales of pharmaceuticals/agricultural chemical raw materials, reagents,
test agents, enzymes, bio-science-related products, sales of food additives, cosmetics additives, cosmetics and healthfoods/beauty foods, and radiation measurement services.
2 Net Sales, Profit (Loss), Assets, Liabilities, and Other by Segment
Profit in reportable segments is defined as operating profit. Inter-segment profits and transfers are based on actual
market prices.

- 27 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

3 Information related to Net Sales, Profit (Loss), Assets, Liabilities, and Other by Segment
Prior Consolidated Fiscal Year (April 1, 2010 to March 31, 2011)(Millions of yen)
Reportable Segments

To
Other

Chemicals

Plastics

Electronics

Life
Sciences

Sub-Total(Notes)1

Corporate Adjustments

Total(Notes)2(Notes)3

Consolidated
Financial
Statements(Notes)4

Net Sales
270,294

222,100

116,636

50,247659,279934

660,213−−660,213Intersegment Sales/Transfers

2,315

2,676

544

514

6,050

5,461

11,512−(11,512)−

Total

272,609

224,777

117,180

50,762

665,330

6,395

671,725−(11,512)660,213

9,093

4,767

5,827

956

20,645

13

20,659(2,685)758

18,732

113,533

100,265

53,89030,136

297,826

7,371

305,198

101,437(31,299)375,336

474

586

2,697

650

4,409

398

4,807

1,579

−

6,387

Amortization of Goodwill

7

−

103

−

110

−

110

−

−

110

Goodwill

1

−

−

−

1

−

1

−

−

1

Investments in Equity
Affiliates

99

786

74

1,534

2,495

1,669

4,164

−

−

4,164

Increase in Property, Plant,
and Equipment andIntangible Fixed Assets

398

1,014

2,167

262

3,843

47

3,891

3,321

−

7,212

Sales to Customers

Segment Profit (Loss)
Segment Assets
Other
Depreciation andAmortization- 28 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

Current Consolidated Fiscal Year (April 1, 2011 to March 31, 2012)(Millions of yen)
Reportable Segments

To
OthersChemicals

Plastics

Electronics

Life
Sciences

Sub-Total(Notes)1

Total

Corporate Adjustments(Notes)2(Notes)3

Consolidated
Financial
Statements(Notes)4

Net sales
251,942

219,209110,513

49,170630,835

1,018

631,854−−

631,854

Intersegment sales andtransfers

2,211

2,639

725

629

6,206

5,369

11,576−(11,576)−

Total

254,153

221,849

111,239

49,799637,0426,388

643,431−(11,576)

631,854

7,154

3,071

6,017

710

16,953141

17,094(4,471)804

13,427

118,175

107,585

58,025

114,198

397,985

7,165

405,150

154,761(109,070)

450,842

622

757

2,372

816

4,568

343

4,912

2,361

−

7,273

Amortization of Goodwill

1

−

23

126

151

−

151

−

−

151

Goodwill

−

−

1,884

30,19532,079−32,079−−32,079

551

732

146

1,598

3,028

1,725

4,753

−

−

4,753

1,107

1,720

4,079

1,438

8,346

99

8,445

4,736

−

13,182

Sales to customers

Segment income (loss)
Segment Assets
Other
Depreciation andamortization

Investments in Equity
Affiliates
Increase in Property, Plant,
and Equipment andIntangible Fixed Assets(Notes)1. Other is a business segment consisting of businesses not included in reportable segments, and includes distribution services,
information processing services, and professional services.
2. Corporate segment income represents expenses not allocated to reportable segments or Other.
3. Adjustments are eliminations of intersegment transactions.
4. The sum of segment income totals, Corporate and Adjustments is equivalent to operating profit as presented in the consolidated
statements of income.
5. Changes in reportable segments:
To more fully take advantage of potential synergies, the Company moved precision/abrasive materials, solar cell-related materials,
and hard disc-related materials from the Electronics segment into the Chemicals segment beginning with the first quarter of theconsolidated fiscal period.
For the prior consolidated fiscal year, we have presented information related to net sales and profit (loss) for each reportablesegment created according to the new categorization.

- 29 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Other Information)
Prior Consolidated Fiscal Year (April 1, 2010 to March 31, 2011)
1 Products and Services
Omitted, since the same information has been disclosed under Segment Information.
2 Geographic Information(1) Net Sales(Millions of yen)
Japan

China
389,379

Other
112,631

Total
158,202660,213(Notes) Net sales are categorized by country or region, according to the location of the customer.
(2) Property, Plant and Equipment(Millions of yen)Japan

Others36,627

Total
3,289

39,9163 Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.
Current Consolidated Fiscal Year (April 1, 2011 to March 31, 2012)
1 Products and Services
Omitted, since the same information has been disclosed under Segment Information.
2 Geographic Information(1) Net Sales(Millions of yen)
Japan

China
366,369

Others122,501

Total

142,983

631,854(Note) Net sales are categorized by country or region, according to the location of the customer.
(2) Property, Plant and Equipment(Millions of yen)Japan

Others53,569

Total
3,158

56,7273 Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.

- 30 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Impairment of Non-Current Assets by Reportable Segment)
Prior Consolidated Fiscal Year (April 1, 2010 to March 31, 2011)(Millions of yen)
Reportable Segments
Chemicals

Plastics−

Impairment Loss−

Corporate/
Eliminatio
ns

OthersElectronics

Life
Sciences

Sub-Total

−

−

−

−

Total

50

50

(Note) Corporate/Eliminations represent idle assets across all corporate segments.
Current Consolidated Fiscal Year (April 1, 2011 to March 31, 2012)(Millions of yen)
Reportable Segments
Chemicals
Impairment Loss−

Plastics−

OthersElectronics

Life
Sciences

Sub-Total

319

54

373

82

Corporate/
Eliminatio
ns
−

Total

455

(Notes) The amount in Electronics is related to assets related to the Company’s abandonment of the LCD panel
materials processing business in China. These assets have been written down to recoverable book values.
The amount in Life Sciences is related to idle assets that have been written down to recoverable book value
due to significant decline in market values.
The amount in Other is related to assets related to the Company’s abandonment of certain parking structures
operated by subsidiaries. These assets have been written down to recoverable amount.

(Goodwill Amortization, Unamortized Balances by Reportable Segment)
Prior Consolidated Fiscal Year (April 1, 2010 to March 31, 2011)
Omitted, since the same information has been disclosed under Segment Information.
Current Consolidated Fiscal Year (April 1, 2011 to March 31, 2012)
Omitted, since the same information has been disclosed under Segment Information.

(Gain on Negative Goodwill by Reportable Segment)
Prior Consolidated Fiscal Year (April 1, 2010 to March 31, 2011)
During the current consolidated fiscal year, the Chemicals business recorded a ¥20 million gain on negative
goodwill as extraordinary gains. This gain was recorded because the Company made addition purchases of Sofix
Corporation, making the entity a consolidated subsidiary. Prior to this, Sofix had been accounted for under theequity method.
Current Consolidated Fiscal Year (April 1, 2011 to March 31, 2012)
No matters to report.

- 31 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

(Per-Share Data)
Current Consolidated Fiscal Year
(April 1, 2011
to March 31, 2012)

Prior Consolidated Fiscal Year
(April 1, 2010
to March 31, 2011)
Net Assets per Share¥1,568.04 Net Assets per Share¥1,592.87

Earnings per Share¥99.76 Earnings per Share¥66.69Diluted earnings per share not presented, as the Company does
not issue any stock with dilutive effects.

Diluted earnings per share not presented, as the Company does
not issue any stock with dilutive effects.

(Notes) Basis for calculation
Earnings per share and diluted earnings per share
Prior Consolidated Fiscal
Year(April 1, 2010
to March 31, 2011)

Current Consolidated Fiscal
Year(April 1, 2011
to March 31, 2012)

Net income from consolidated statements of income (millions ofyen)

12,8238,570

Net income related to common stock (millions of yen)

12,823

8,570

128,535,317

128,514,527

−

−

1,614

826

Item

Average number of outstanding shares of common stock(shares)
Main reason for increase in number of commons shares used to
calculate diluted earnings per share (shares)
Stock acquisition rights
Dilutive stock not included in calculation of diluted earnings per
share (no dilutive effect)
Number of stock acquisition rights (units)(Significant Subsequent Events)
No matters to report.

- 32 -Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012

4. OtherYear ended March 31, 2012

Financial Highlights (Consolidated)(Millions of yen)

[Sales in overseas markets]
Item

Current Consolidated Fiscal Year
AmountOverseas Sales

Prior Consolidated Fiscal Year

Overseas Sales/
Consolidated
Sales (%)

(Notes)Overseas Sales
Consolidated
Sales (%)

AmountChange265,48442.0

270,833

41.0(5,348)

155,692

24.6

159,485

24.1(3,793)

Southeast Asia

72,882

11.5

77,14411.7(4,261)

North America

21,236

3.4

18,9742.9

2,261Europe & Other

15,673

2.5

15,2292.3

443

Northeast Asia

1.

Sales in overseas markets consist of net sales of theCompany and consolidated subsidiaries in othercountries or regions.

2.

Major countries in each region(1) Northeast Asia ･･････ Taiwan, China(2) Southeast Asia ･･････ Singapore, Thailand(3) North America ･･････ U.S.
(4) Europe & Others･････ Germany(Millions of yen)

[Income (Loss)]
Item
Net sales

Current
Consolidated
Fiscal Year
631,854

Prior
Consolidated
Fiscal Year

ChangeOverview

Change (%)

660,213(28,358)(4.3%)

Chemicals

251,942

270,294

219,209

222,100(2,891)

Electronics

110,513

116,636(6,123)life sciences

49,17050,247(1,077)

Others

1,018

934

84

Gross profit

71,62873,008(1,380)(Profit Ratio)(11.3%)(11.1%)(1.9%)

Selling, general and administrative
expenses

3,924

58,20054,276

Selling expense

8,768

8,475

292

Payroll

26,364

24,1282,236

Depreciation and amortization

3,058

2,623

434

Others

20,00919,048960

13,427

18,732(5,305)(28.3%)

Financial Profit

594

813

(219)

Interest income

268

224

43

Divided income

1,018

1,157

(139)

Interest expenses

692

568

124

Other non-operating profit (Loss)

1,669

1,079

589

Ordinary income

15,69020,625(4,934)(23.9%)

Extraordinary gains

1,905

2,020

(114)

Extraordinary losses

1,058

1,727

(668)

Total income taxes

7,098

7,285

(186)

Minority interests
Net income

Chemicals:

Increase in net sales in Southeast Asia, Europe and North America. Decline
domestically and in Northeast Asia.
Lower sales of dyestuffs, specialty chemicals.

Plastics:

Lower exports of resin raw materials, molding machines for office equipment andappliance applications.
Higher sales in automobile business for Northeast Asia, Southeast Asia, North
America.

Electronics:

Growth in electronic materials for touch panels, smartphones, LED lighting.
Lower sales this period due to abandonment of lower profit business. Minimum
impact on profits.
Strong sales of formulated epoxy resins in electronic chemicals business; lower
overall sales due to declines in chemicals used for LCD panel, semiconductor
manufacturing applications.

(18,351)

Plastics

Operating profit[Net sales]

867

809

58

8,570

12,823(4,252)

Life sciences: Strong sales in pharmaceutical manufacturing materials; lower sales inpharmaceutical raw materials/intermediates, agricultural chemicals, enzymes.
Slow sales of health foods in beauty care business led to lower sales.
[Gross profit]
Higher profits in Electronics, Life Sciences. Lower profits in Chemicals, Plastics.
[Selling, general and administrative expenses]• Selling expense (+292): Increase in parents warehousing expenses (+135)• Payroll(+2,236): Increased employee retirement benefits (+848), employee bonuses (+707)• Depreciation and amortization(+434): Increase in parents depreciation and amortization(+326)• Other (+960): Increased provision for doubtful accounts (+433)[Operating profit]
Higher profit in Electronics. Lower profit in Chemicals, Plastics, Life Sciences[Extraordinary gains]• Gain on sale of investment securities

1,759[Extraordinary losses]• Impairment loss 455• Loss on valuation of investments securities

383(33.2%)(Millions of yen)

[Assets, Liabilities]
Item

Current
Consolidated
Fiscal Year

Prior
Consolidated
Fiscal Year

ChangeOverview

Current assets

282,280

277,304

4,976

Non-current assets

168,561

98,03270,529

PP&E/intangible Fixed Assets

114,182

43,59070,591

Investments and other assets

54,37954,441(61)

Total assets

450,842375,336

75,505Current liabilities

181,689

138,517

43,172

38,633

15,525

23,108short-term loans
Current portion of long-term debt

11,551

613

10,937

Others131,505

122,378

9,126

Long-term liabilities

56,40727,502

28,904Long-term debt

38,20010,55527,644

Others

18,206

16,947

1,259

Total liabilities

238,097

166,020

72,076

Interest-bearing debt

88,71027,12561,585201,188

195,946

5,242

3,518

5,570

(2,051)

110

235

(124)

Minority interests

7,927

7,564

363

Total net assets

212,744

209,316

3,428

45.4%

53.7%

Shareholders’ equity
Accumulated other comprehensive
income (loss)
Stock acquisition rights

Net worth ratio(Note) Figures inside parentheses of explanatory text indicate comparative change- 33 -[Current assets]
Decrease in cash and deposits (-18,017); increase in notes and accounts receivable (+11,589),
inventories (+8,545)[Non-current assets]• Property, plant and equipment (+16,811): Land purchases (+6,776)• Intangible fixed assets (+53,780): Increases mainly goodwill(+32,079), technology assets(+21,669)[Current liabilities]• Short-term loans: Increase in parents loans (+22,586)• Current portion of long-term debt: Increase in parents debt (+10,879)• Others: Increase in trade payables (+7,483)[Long-term liabilities]• Long-term debt: Increase in parents debt (+27,763)* Interest-bearing debt mainly increased due to loans for funds to finance/invest in Hayashibara[Net assets]• Shareholders’ equity: Net income increase resulted in retained earnings increase (+8,570)• Accumulated other comprehensive income (loss): Decrease in translation adjustments (-1,580)

Nagase & Co., Ltd. (8012)
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2012
Earnings Performance and Fiscal 2013 Earnings Forecast(Millions of yen)

Net Sales
Chemicals
Plastics
Electronics
Life sciences
Other
Gross profit
Ratio
Operating profit
Ratio
Ordinary income
Ratio
Net income
Ratio
Total assets
Equity capital
Net worth ratio
ROE (Equity capital/profit ratio)
ROA (Total assets/profit ratio)
Earnings per share (¥)
Debt to cash flow ratio (x)Consolidated companies
Consolidated subsidiaries
Equity method affiliates

FYE March 2009

FYE March 2010

FYE March 2011

FYE March 2012

715,238
263,114
255,859
135,773
58,905
1,585
71,52710.0%
12,522
1.8%
13,052
1.8%
5,808
0.8%
340,968
184,599
54.1%
3.0%
1.5%
45.17
0.03
62
51
11

603,949
237,124
192,569
117,591
55,542
1,121
65,415
10.8%
13,1282.2%
14,712
2.4%
7,537
1.2%
368,088
195,344
53.1%
4.0%
2.1%
58.64
−
59
49
10

660,213
270,294
222,100
116,636
50,247934
73,008
11.1%
18,732
2.8%
20,625
3.1%
12,823
1.9%
375,336
201,516
53.7%
6.5%
3.4%
99.76
−
60
51
9

631,854
251,942
219,209110,513
49,1701,018
71,62811.3%
13,427
2.1%
15,690
2.5%
8,570
1.4%
450,842
204,706
45.4%
4.2%
2.1%
66.69
−
66
55
11

FYE March 2013
(forecast)
700,000−−−−−
87,50012.5%
19,5002.8%
20,5002.9%
15,5002.2%

Year-on-Year
Change110.8%

120.61180.9%

122.2%
145.2%
130.7%
180.9%

81
61
20

Note 1: ROE = net income /{( equity capital, beginning of period + equity capital, end of period) / 2}
ROA = net income / {(total assets, beginning of period + total assets, end of period) / 2}
Note 2: Debt to Cash Flow Ratio = (Interest-bearing debt − cash and deposits) / equity capital[Earnings Forecast by Segment]
FYE March 2013 Forecast
700,000
194,000

Net sales
Functional Materials
Advanced Materials & Processing

236,000

Electronics
117,000
Automotive & Energy
77,000Life & Healthcare
75,000
Other
1,000
The Company has reorganized business segments to more fully concentrate the strengths of the entire group, reflecting the respective positions of each business in the value chain, as well as the mostclosely aligned industry. The new segments are Functional Materials, Advanced Materials & Processing, Electronics, Automotive & Energy, and Life & Healthcare.

Consolidated Companies(Units: Companies)[Ratio of Profitable to Unprofitable Companies]
Category
Consolidated
Subsidiaries
Equity Method
Affiliates
Composition Ratio (%)

Japan
Overseas
Japan
Overseas

Current Consolidated Fiscal Year
Profitable Co’s
Unprofitable Co’s
Total
20
5
25
23
7
30
7
2
9
2
0
2
79%
21%
100%

Prior Consolidated Fiscal Year
Profitable Co’s
Unprofitable Co’s
19
3
25
4
6
1
2
0
87%
13%

Total
22
29
7
2
100%

− Major Profitable Companies −Category
Domestic Consolidated
Subsidiaries
Overseas Consolidated
Subsidiaries
Equity Method Affiliates

Company Name
Nagase ChemteX Corp.
Nagase Plastics Co., Ltd.
Nagase Electronics Technology Co., Ltd.
Nagase (Hong Kong) Ltd.
Nippon Vopak Co., Ltd.

Main Business Lines
Manufacture of epoxy resins, enzyme-processed products, commercial chemicals
Sales of synthetic plastic materials and products
Thin-glass processing via chemical etching of LCD glass panel units
Import/export, brokerage, market development, information collection
Warehousing, trucking, and shipping services− Major Unprofitable Companies −Category
Domestic Consolidated
Subsidiaries
Overseas Consolidated
Subsidiaries
Equity Method Affiliates

Company Name
Fukui Yamada Chemical Co., Ltd.
Setsunan Kasei Co., Ltd.
Nagase Precision Plastics (Shanghai) Co., Ltd.
Sofix Corp.
SN Tech Corporation

Main Business Lines
Manufacture of pressure-sensitive, heat-sensitive dyes
Plastics color processing, sales
Plastic tray molding
Manufacture of pressure-sensitive, heat-sensitive dyes
Manufacture, recycling of developing chemicals(Unit: People)[Employees]
Current Consolidated Fiscal Year
Consolidated
Parents
Equity Affiliates
Subsidiaries
961
4,584
1,222
* Change indicates change versus prior consolidated fiscal year.

ChangeTotal

Parents
6,767(2)- 34 -

Consolidated
Subsidiaries
854

Equity Affiliates
94

Total
946