Summary of Consolidated Business Results for the Third Quarter Ended December 2005
February 6, 2006
Company Name
Nagase & Co., Ltd
Listing Code8012(URL http://www.nagase.co.jp/)
Representative
Position
President
Contact Details
Position
Accounting Division, Manager

Stock Exchanges Listed: Tokyo, Osaka
Location of Head Office: Osaka Prefecture
Hiroshi Nagase
Takahide Osada

Telephone (03) 3665-3103

1. Matters concerning the preparation of the Summary of Business Results for the Third Quarter of fiscal 2005
(1) Use of simplified accounting procedures:(Description):
Accounting standard of income and other taxes: The amount of these taxes was calculated using the estimated yearly tax rates
based on the legal effective tax rates.
For some account items with minor effects, a simpler calculation method was used.
(2) Changes in accounting policies compared to recent consolidated fiscal year: No(3) Change in the applicable scope of the consolidation and equity method:
Consolidated Subsidiaries: New: 5 Excluded: 3 (due to the merger of consolidated subsidiaries)
Equity method: New: 1 Excluded: 2
2. Consolidated Business Results for the Third Quarter Ended December 2005 (April 1, 2005 – December 31, 2005)
1)Consolidated Operating Results(Note: Amounts have been rounded off to the nearest million yen)
Net Sales
Third Quarter Ended December 2005
Third Quarter Ended December 2004
(Reference)
Period Ended March 31, 2005

¥ Millions
474,068
426,004

Operating Income%
11.3
7.2

¥ Millions
13,97910,507

Ordinary income

%
33.0
13.7

575,636

13,256

Net (quarterly) income

EPS (quarterly)¥ Millions
15,71012,108%29.7
2.8

15,158Fully Diluted EPS (quarterly)¥ Millions%¥¥Third Quarter Ended December 2005
10,70246.383.86
83.70
Third Quarter Ended December 2004
7,313
40.2
57.47
57.36
(Reference)
10,38481.00
80.82
Period Ended March 31, 2005
Notes:
Figures shown in percentage of sales, operating income and other items show the ratios of sequential changes comparedwith the Third quarter of 2005.
2)Consolidated Financial Position¥ Millions
390,409
339,026¥ Millions
190,257
163,646

%
48.7
48.3

Shareholders Equity Per
Share¥
1,487.05
1,285.37

335,290167,09249.8

1,311.37

Net Cash Used for
Financial Activities¥ Millions
9,645-3,052

Balance of Cash and Cash
Equivalents at Term End¥ Millions
19,092
19,140-5,119

17,215

Total Assets
Third Quarter Ended December 2005
Third Quarter Ended December 2004
(Reference)
Period Ended March 31, 2005

Shareholder's Equity Shareholder's Equity Ratio3)Consolidated Cash FlowsNet Cash fromNet Cash Used for
operating activities Investment Activities¥ Millions¥ Millions
Third Quarter Ended December 2005
-7,975-1,553
Third Quarter Ended December 2004
1,585-2,043(Reference)
Period Ended March 31, 2005
1,716-1,412

3. Consolidated Forecasts for the Year Ended March 31, 2006 (April 1, 2005 - March 31, 2006)
No change has been made to the forecasts published on October 31, 2005
Net Sales
Recurring Income
Net Income¥ Millions¥ Millions¥ Millions
Whole Year
625,000
18,50012,300(Reference) Expected EPS (Whole Year) ¥ 95.55*The above forecasts were prepared on the basis of information available on the date of release. Actual results may differ from theseforecasts due to various factors.

Business Performance and Financial Position[Business Performance]
Summary of Overall Company Performance
The Japanese economy, in this third quarter of the fiscal year, experienced gradual economic expansion
supported by increased capital expenditure and growth in consumer spending. However, elements ofuncertainty remained including the effect on the economy of oil prices hovering at the high end andchanges in the economic climate in the US and China.
In this situation, the operating results, up to this third quarter, achieved domestic sales of 288.05 billion
yen (an increase of 7.1% year on year), overseas sales of 186.01 billion yen (an increase of 18.5% year onyear), and total sales of 474.06 billion yen (an increase of 11.3% year on year).
As for profits, the operating income was 13.97 billion yen (an increase of 33.0% year on year) following
the increase in sales, and current profit was 15.71 billion yen (an increase of 29.7% year on year). Gainsfrom sale of fixed assets were also recorded during the current quarter. As a result, the net profit for thequarter rose to 10.7 billion yen (an increase of 46.3% year on year).
Segment Summary[Chemicals]
Sales: 201.92 billion yen
Year-On-Year Comparison: Up 8.0%
In the chemical products business, functional chemicals continued to grow, which include the areasinfluenced by the automotive industry, such as paint materials and urethane materials. The specialty
chemicals also remained strong including raw materials for specialty chemical products such as industrial
oil solutions. In addition, pigments such as ink materials extended their sales. Dyes and pharmaceuticalproducts remained almost unchanged. The sales of agricultural materials decreased, but remained strong
overall.
[Plastics]
Sales: 168.7 billion yen
Year-On-Year Comparison: Up 21.1%
In the plastics segment, overseas sales mainly led by Asia, for example, in China, Hong Kong and Taiwan,
the so-called Greater China region, continued to expand strongly. By usage, sales for precision measuring
equipment and digital media such as CD and DVD, as well as for the automotive industry showed
considerable increase both in functional resin and general-purpose resin. Packaging materials and housing
equipment materials, which are mainly domestic, remained unchanged, but sales as a whole increased
significantly.
[Electronics]
Sales: 94.56 billion yen
Year-On-Year Comparison: Up 5.1%
In the electronics operation, sale of chemical feeding devices, produced within the group for
semiconductor and liquid crystal production, and the intermediary business for optical films and liquid
crystal modules declined. However, component manufacturing and assembly for liquid crystal andelectronics devices increased. The sale of precision abrasive compound as well as the own brand image
processing and surface inspection devices expanded as well. Modified epoxy resin also fared relatively
well. As a result, the overall sales increased.
[Healthcare and others]
Sales: 8.87 billion yen

Year-On-Year Comparison: Down 8.2%-2-In our healthcare and other business segment, a trend of partial improvement was observed in the sale ofcosmetics and health food products, but it was not significant enough to compensate for the slump in thefirst half. Medical devices also decreased, and hence sales declined.

[Financial Position]
Total assets increased by 55.11 billion yen from the end of the previous period to 390.4 billion yen. Thiswas mainly due to the increase in receivables and investment securities following the rise in share price.
Liabilities increased by 31.33 billion yen from the end of the previous period to 194.68 billion yen. Thiswas mainly due to the increase in accounts payables, commercial paper and borrowing.
Shareholders’ equity increased by 23.16 billion yen from the end of previous period to 190.25 billion yen.
This is mainly due to the increase in unrealized gains of other negotiable securities recorded in asset aswell as the increase in retained earnings.
As a result of the above, the shareholders’ equity ratio decreased by 1.1 points from 49.8% in the previousquarter to 48.7%.
[Status of Consolidated Cash Flow]
Cash flows from operating activities was an outflow of 7.97 billion yen due to the increased operating
capital and corporation tax payment, despite the income before income taxes and others for the quarter of
17.52 billion yen.
Cash flows from investing activities was an outflow of 1.55 billion yen. This was as a result of continued
capital investment and acquisition of investment securities despite the sale of some tangible fixed assets
and investment securities.
Cash flows from financing activities was also an inflow of 9.64 billion yen as a result of financing throughcommercial paper and borrowing despite the dividend payment.
As a result, balance of cash and cash equivalents for this third quarter rose by 1.87 billion yen from theend of previous period to 19.09 billion yen after adjusting for the increase in cash and cash equivalents
following the recent consolidation.

[Financial Forecasts]
At this point in time, there have been no changes to the figures we announced on October 31, 2005 asconsolidated financial forecasts. We have also made no changes to our non-consolidated financial
forecasts.

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