Summary of Consolidated Financial Statements for the Third Quarter of
the Fiscal Year Ending March 31, 2009
January 30, 2009
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

Nagase & Co., Ltd.
Code number: 8012
Representative: Hiroshi Nagase, Representative Director and President
Contact:
Masanori Furukawa, Manager, Corporate Accounting Division

Stock exchange listing: Tokyo, Osaka
http://www.nagase.co.jp
Tel. 81-3-3665-3103

Filing of Securities Report (Shihanki Hokokusho) (scheduled): February 12, 2009
(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2009
(April 1, 2008 to December 31, 2008)(1) Sales and Income(Percentages represent change compared with the corresponding period of the previous fiscal year.)
Operating
Ordinary
Net sales
Year-on-year
Year-on-year
Year-on-year
incomeincome(¥ million)change (%)
change (%)
change (%)(¥ million)(¥ million)
Nine months ended December 31, 2008
574,971—
11,968—13,361—
568,422
8.2
17,358
4.4
18,693
4.4
Nine months ended December 31, 2007
Net income(¥ million)
Nine months ended December 31, 2008
Nine months ended December 31, 2007

6,018
3,595

Year-on-yearchange (%)—(65.0)

Earnings
per share (¥)
46.81
27.98

Earnings
per share(diluted) (¥)
46.81
27.92

(2) Financial Position
Total assets
Net assets
Net worth ratio(¥ million)(¥ million)(%)
As of December 31, 2008
414,317
199,058
46.1
As of March 31, 2008
419,869
208,377
47.8(Reference) Net worth: As of December 31, 2008: ¥191,169 million; As of March 31, 2008: ¥200,554 million

Net assets
per share (¥)
1,487.02
1,559.97

2. Cash Dividends
1st Quarter
2nd Quarter
Year ended March 31, 2008—
0.00
Year ending March 31, 2009—
8.00
Year ending March 31, 2009 (est.)————
Note: Revisions to projected dividends during the quarter: No

Dividends per share (¥)
3rd Quarter————

Year-end
17.00
——
8.00

Full year
17.00
——
16.00

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2009
(April 1, 2008 - March 31, 2009)(Percentages represent change compared to the previous fiscal year.)
Earnings
Net sales
Operating income
Ordinary income
Net income
per share(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥)
Full year
710,000(7.2)
11,500(50.1)
13,000(47.6)
6,000(40.0)
46.67
Note: Revisions to projected consolidated results during the quarter: Yes

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4. Other(1) Changes in major subsidiaries during the period (changes in specified subsidiaries due to changes in the scope of
consolidation): No(2) Use of simplified accounting methods or special accounting methods for preparation of quarterly financial
statements: Yes
See “4. Other” of “Qualitative Information and Financial Statements” on pages 4-5.
(3) Changes in accounting rules, procedures, presentation method, etc., for the quarterly Consolidated Financial
Statements (changes in material items that form the basis for the preparation of the quarterly consolidated financial
statements)(a) Changes in consolidated accounting methods: Yes(b) Changes other than (a) above: Yes
See “4. Other” of “Qualitative Information and Financial Statements” on pages 4-5.
(4) Number of shares issued and outstanding (common stock)(a) Number of shares at the end of the period (including treasury stock)
Nine months ended December 31, 2008: 138,408,285 shares; Year ended March 31, 2008: 138,408,285 shares(b) Number of treasury shares at the end of the period:
Nine months ended December 31, 2008: 9,849,237 shares; Year ended March 31, 2008: 9,844,934 shares(c) Average number of shares outstanding (cumulative with earlier quarters):
Nine months ended December 31, 2008: 128,574,556 shares; Nine months ended December 31, 2007:
128,500,634 shares
Note: Cautionary Remarks Regarding Proper Use of Projected Results and Other Items
1. The projected consolidated results for the fiscal year ending March 31, 2009 have been revised from projections announced
on October 30, 2008. The projected consolidated results for the fiscal year contained in this document are based on
information currently available to the Company on the date of release. Due to various factors, actual results may differ
materially from the forecast.
2. Effective from the three months ended June 30, 2008, the Company applies the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ Statement No. 12) and its Implementation Guidance, “Guidance on Accounting Standard for
Quarterly Financial Reporting” (ASBJ Guidance No. 14). Quarterly consolidated financial statements have been prepared inaccordance with the “Regulation for Quarterly Consolidated Financial Reporting.”

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Qualitative Information and Financial Statements

1. Qualitative Information on Consolidated Operating Results(1) Summary of Overall Performance
During the nine months ended December 31, 2008, the Japanese economy worsened, with an accelerating
trend toward decreased production in the automobile, electronics and other industries that spread to corporatematerials and facility-related purchasing. In the global economy, conditions have noticeably worsened in the
United States and Europe due to the deepening financial crisis, and the degree of slowdown in Asia isstrengthening. There are concerns that drastic changes in stock and currency markets may further depress the
economy.
Under these conditions, despite a sudden drop in sales during the third quarter, Nagase maintained a slightoverall increase in total net sales of 1.2 percent for the nine-month period compared with the same period of theprevious fiscal year, as domestic sales decreased 0.6 percent to ¥319.70 billion and overseas sales increased 3.5
percent to ¥255.26 billion for total net sales of ¥574.97 billion.
Due to factors including an increase in manufacturing costs at manufacturing subsidiaries due to rising raw
material prices and recording a loss on valuation of inventories, gross profit decreased 3.9 percent comparedwith the same period of the previous fiscal year to ¥57.53 billion yen. Moreover, selling, general andadministrative expenses increased due to factors including amortization of actuarial gain in retirement benefit
accounting. Consequently, operating income decreased 31.1 percent to ¥11.96 billion and ordinary income
decreased 28.5 percent to ¥13.36 billion. Net income increased 67.4 percent to ¥6.01 billion due to a loss on
valuation of investment securities of ¥1.91 billion recorded as an extraordinary loss. The main reason for theincrease compared to the previous fiscal year was an extraordinary loss of ¥14.30 billion recorded in the same
period of the previous fiscal year related to the voluntary recall of products.
(2) Segment Summary[Chemicals] Sales: ¥204.11 billion, a 1.8 percent increase from the same period of the previous fiscal year
Overall sales increased slightly in the Chemicals segment. Sales expansion in the color and imaging business,
which handles pigments, dyestuffs and other products related to color, was mainly overseas. However, sales
remained flat in the performance chemicals business, which handles products such as raw materials for urethane,
raw materials and additives for plastics, and raw materials for paint, and decreased in the speciality chemicals
business, which handles a wide range of products including surfactants, industrial oil solutions and organic
synthetic raw materials such as silicone and fluorochemicals.
[Plastics]
Sales: ¥204.93 billion, a 1.7 percent increase from the same period of the previous fiscal year
Although overseas sales in the ASEAN and North American regions decreased, sales increased in the Greater
China region including Hong Kong and Taiwan. However, sales in Japan for precision instruments andelectronics applications decreased significantly and sales of Nagase-manufactured and other products forapplications in building and packaging materials also decreased. Automotive related sales increased for thenine-month period despite a drop midway through the third quarter. As a result, overall sales in the Plastics
segment increased slightly.
[Electronics] Sales: ¥121.02 billion, a 1.9 percent decrease from the same period of the previous fiscal year
Sales expanded in the display business, centered on a significant increase in sales of optical film and LCD
components, despite a significant drop in the electronic equipment and LCD-related component processing
business. However, sales decreased in the electronic chemicals business, which handles formulated epoxy resinand chemical supply and control equipment used in LCD and semiconductor front-end processing, andperformance was weak in the information and functional materials business, which handles materials related tobackend semiconductor processing. As a result, overall segment sales decreased slightly.
[Life Sciences] Sales: ¥ 43.70 billion, a 5.4 percent increase from the same period of the previous fiscal year
Although sales decreased slightly in the beauty care business, which handles cosmetics and health foods,
overall segment sales increased due to growth in sales of diagnostic agents, reagents and other products in thefine chemicals business.
[Others]
Sales: ¥1.20 billion, a 24.2 percent decrease from the same period of the previous fiscal year
Segment sales decreased significantly due to the voluntary recall of portable DVD players and other products
and the suspension of sales that began in the previous fiscal year.

32. Qualitative Information on Consolidated Financial Position(1) Assets, Liabilities and Net Assets
Despite an increase in inventories due to a sharp drop in sales, and the purchase of property, plant andequipment and other factors, total assets decreased ¥5.55 billion from the end of the previous fiscal year to¥414.31 billion, mainly due to a decrease in net unrealized holding gain on investment securities following adrop in share prices.
Despite a decrease in deferred tax liabilities, total liabilities increased ¥3.76 billion from the end of theprevious fiscal year to ¥215.25 billion due to factors including an increase in notes and accounts payablebecause the last day of the third quarter was a holiday, and an increase in long-term debt.
Net assets decreased ¥9.31 billion from the end of the previous fiscal year to ¥199.05 billion despite
recording net income, due to factors including net unrealized holding loss on securities and translation
adjustments.
As a result, the net worth ratio decreased 1.7 percentage points to 46.1 percent from 47.8 percent at the end of
the previous fiscal year.
(2) Cash FlowsNet cash provided by operating activities was ¥12.55 billion, mainly due to income before income taxes andminority interests, despite factors including income taxes paid.
Net cash used in investing activities was ¥9.77 billion, mainly as a result of expenditures for purchases ofproperty and equipment.
Net cash provided by financing activities was ¥1.23 billion, due mainly to proceeds from long-term debt,
despite the payment of dividends.
As a result, the balance of cash and cash equivalents at December 31, 2008 was ¥24.30 billion, an increase of¥0.81 billion from the end of the previous fiscal year.

3. Qualitative Information on Projected Consolidated Results
The Company expects the increasingly severe operating environment to continue as the effect of the financial
crisis triggered in the United States rapidly expands to affect the real global economy.
Under these conditions, demand is decreasing notably in the automobile and electronics industries, the end
users of the Nagase Group’s major business partners, as the trend toward inventory and production adjustments
continues and expands. As a result, projections for the fiscal year ending March 31, 2009 are for consolidated
net sales of ¥710.0 billion (a 7.2 percent decrease from the previous fiscal year), operating income of ¥11.5
billion (a 50.1 percent decrease), ordinary income of ¥13.0 billion (a 47.6 percent decrease), and net income of¥6.0 billion (a 40 percent decrease).

4. Other(1) Changes in Significant Subsidiaries during the Period (Changes in specified subsidiaries due to changes
in the scope of consolidation)
None applicable.
(2) Use of Simplified Accounting Methods or Special Accounting Methods for Preparation of Quarterly
Financial Statements
The Company uses special quarterly accounting methods to determine income tax payments, including
calculations for some consolidated subsidiaries using the estimated annual effective tax rate based on thenormal effective statutory tax rate.
(3) Changes in Consolidated Accounting Rules, Procedures, Presentation Method, etc. for the Quarterly
Consolidated Financial Statements(a)Effective from the three months ended June 30, 2008, the Company applies the “Accounting Standard
for Quarterly Financial Reporting” (ASBJ Statement No. 12, issued March 14, 2007) and its
Implementation Guidance, “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ
Guidance No. 14, issued March 14, 2007). Quarterly consolidated financial statements have been preparedin accordance with the “Regulation for Quarterly Consolidated Financial Reporting.”(b) Effective from the three months ended June 30, 2008, the Company applies the “Accounting Standard
for Measurement of Inventories” (ASBJ Statement No. 9, issued July 5, 2006), changing from primarily
using the cost or market method to the average method (method for reducing the carrying amount of
inventories below book value due to decline in profitability) for the valuation of inventories held for4normal sale. As a result, gross profit, operating income, ordinary income and income before income taxes
and minority interests each decreased by ¥617 million.
(c) Effective from the three months ended June 30, 2008, the Company applies the “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements”(ASBJ PITF No. 18, issued May 17, 2006) and carries out necessary consolidated financial adjustments.
There is no effect on income from these changes.
(d) Previously, finance lease transactions without title transfer were accounted for as operating leases.
However, companies are able to apply “Accounting Standard for Lease Transactions” (ASBJ Statement No.
13, issued June 17, 1993 (First Committee of Business Accounting Council), revised March 30, 2007) and
its Implementation Guidance, “Guidance on Accounting Standard for Lease Transactions” (ASBJ
Guidance No. 16 (issued January 18, 1994 (Japanese Institute of Certified Public Accountants), revised
March 30, 2007) on quarterly financial statements of fiscal years beginning on or after April 1, 2008.
Accordingly, the Company has applied the revised accounting standard from the three months ended June30, 2008. The revised accounting standard requires that all finance lease transactions be capitalized.
In addition, leased assets related to finance lease transactions without title transfer are depreciated on astraight-line basis, with the lease periods as their useful lives and no residual value.
The Company will continue to account for finance lease transactions without title transfer where thelease transaction started before the first year of application as operating leases.
There is no effect on income from these changes.

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