Summery of Consolidated Business Results for the First Quarter Ended June 2003
August 8, 2003
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 First Quarter of 2003
(1) Change in the recognition of the accounting method from the recent consolidated fiscal years:
Some changes were made in the recognition.
(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) Change in the applicable scope of the consolidation and equity method: The applicable scope was changed.
Newly Consolidated: 2
Newly Applied Equity Method: 1
2. Consolidated Business Results for the First Quarter Ended June 2003 (April 1, 2003 – June 30, 2003)
1)Consolidated Operating Results(Note: Amounts have been rounded off to the nearest million yen)
Net Sales¥ Millions
132,926‐First Quarter Ended June 2003
First Quarter Ended June 2002
(Reference)
Period Ended March 31, 2003

Operating Income%‐‐¥ Millions
3,480

503,688

Recurring income%
‐
‐

8,433

Net (quarterly) income¥ Millions
4,933
‐

%
‐
‐

11,284EPS

Fully Diluted EPS¥ Millions%¥¥First Quarter Ended June 2003
‐
‐
2,784
21.89
First Quarter Ended June 2002‐‐‐‐
(Reference)‐
Period Ended March 31, 2003
4,186
31.72
Notes:
1. Figures shown in percentage of sales, operating income and other items show the ratios of sequential changes comparedwith the first quarter of 2002. But because no quarterly settlement was made in the quarters of 2002, percentage figures
were omitted.
2. The quarterly business results of 2002 were not presented because no settlement was made for these quarters.
2) Consolidated Financial Position¥ Millions
295,005‐¥ Millions
145,462‐%49.3‐

Shareholders Equity PerShare¥
1,143.54‐

284,800

140,94449.5

1,107.55

Net Cash Used forFinancial Activities¥ Millions-1,860‐

Balance of Cash and Cash
Equivalents at Term End¥ Millions
14,141‐

Total Assets
First Quarter Ended June 2003
First Quarter Ended June 2002
(Reference)
Period Ended March 31, 2003

Shareholder's Equity Shareholder's Equity Ratio3)Consolidated Cash FlowsNet Cash fromNet Cash Used for
operating activities Investment Activities¥ Millions¥ Millions-2,172-946‐‐

First Quarter Ended June 2003
First Quarter Ended June 2002
(Reference)
4,392963-7,64319,044
Period Ended March 31, 2003
Notes:The quarterly business results of 2002 were not presented because no settlement was made for these quarters.

3. Consolidated Forecasts for the Year Ended March 31, 2004 (April 1, 2003 - March 31, 2004)
No change has been made to the forecasts published on May 14, 2003 both for the subsequent quarters and for the entire fiscal year.
Net Sales
Recurring Income
Net IncomeEPS¥ Millions¥ Millions¥ Millions¥Interim Period
255,000
6,000
2,600
20.44
Whole Year509,000
11,8006,000
46.70*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.

Summery of Consolidated Business Results for the First Quarter Ended June 2003

[Qualitative information about the situation of business results (consolidated) and others]
Group Results
During the first quarter ended June 2003, the Japanese economy experienced a continued uncertainty about
employment and income, although there were some signs of touching bottom, and domestic business activities
failed to get rid of stagnancy. Business conditions in the U.S. and Europe also lacked the power enough torevitalize the global economy.
Under these conditions, the Company's consolidated domestic sales for the first quarter were ¥89,840 million
and its overseas sales were ¥43,080 million. The total sales amounted to ¥132,920 million.
Because the sales were steady in general, the Company's operating income totaled to ¥3,480 million, its
ordinary income, ¥4,930 million, and its net income for the quarter, ¥2,780 million.

Results by Business Segment[Chemicals]
Sales: ¥60,200 million
In the Chemicals business, overseas sales were inactive while domestic sales were steady. The Company
suffered weakness in the export of plastic raw materials to Asia and food additives to the U.S. and Europe, andalso poor domestic sales of some insecticides. On the other hand, the sales of functional pigments forcomputer displays and surface-active agent materials were favorable, and those of paint materials andpharmaceutical intermediates were solid, too.
[Plastics]
Sales: ¥39,770 million
The Plastics business was firm as a whole. At home, although the sales of construction materials remainedsluggish, those of special film products and project products for the domestic market were steady. Overseas,
the sales of machines and equipment were poor, but those of acryl optical waveguides were favorable. Solidsales were achieved for plastics in the Asian market, too.
[Electronics]
Sales: ¥29,870 million
The Company enjoyed a favorable growth in the Electronics business. The sales of Nagase Group products
were steady, while electronic parts and members attained very good results, including liquid crystal parts for
the Asian and domestic market, parts for communications stations for China and precision grinding-relatedbusiness.
[Health Care & Others] Sales: ¥3,060 million
The Health Care business experienced stagnancy in the sales of health food, as well as in medical careinformation systems and radiation measurement-related business. Other business remained firm.
[Qualitative information about changes in financial position (consolidated)]
Due to increase in receivables and investments in securities, the company's total assets grew by ¥10,200
million sequentially to ¥295,000 million.
Also, because there were increases in the amount appropriated to capital of retained earnings and other latent
profits, the shareholders' equity climbed by ¥4,510 million sequentially to ¥145,460 million.
As a result, the ratio of shareholders' equity fell by 0.2 percent points sequentially to 49.3%.
[Situation of consolidated cash flows]
In the cash flows from operating activities, income before income taxes and minority interests amounted to¥5,090 million, but due to increased operating funds, payment of income and other taxes, and decrease inaccrued retirement benefits for employees, cash in an amount of ¥2,170 million was used.
In the cash flow from investing activities, there was income from sale of part of investments in securities, but
because expenditure was made for acquisition of tangible fixed assets and increase in short-term loans, cash
amounting to ¥940 million was used..

In the cash flows from financing activities, cash in an amount of ¥1,860 million was used for repayment ofbank loans and dividend payments.
As a result, the balance of cash and cash equivalents at the end of the first quarter ended June 2003 decreasedby ¥4,900 million sequentially to ¥14,140 million.
[Qualitative information about future business expectations and others]
Although the results for the quarter under review were above the planned level, the Company has not changed
its consolidated business forecast published on May 14, 2003 for the subsequent quarters and for the entire
fiscal year because of the unstable world economy and great uncertainties about the future business trend of theJapanese economy. The forecast for non-consolidated business has not been changed, either.