November 1, 2004

Summary of Consolidated Interim Business Results for the Year Ended March 31, 2005
Company Name:
Nagase & Co., Ltd.
Listing Code:8012(URL http://www.nagase.co.jp)
Representative
Position
President
Hiroshi Nagase
Contact Details
Position
Accounting Division Manager
Takahide Osada
Date of Board of Directors' Meeting for Interim Settlement of Accounts November 1, 2004
Adoption of U.S.GAAP: No

Stock Exchanges Listed: Tokyo, Osaka
Location of Head Office: Osaka Prefecture

Telephone: (03) 3665-3103

１. September 30, 2004 Consolidated Interim Results (April 1, 2004 - September 30, 2004)(1) Consolidated Operating Results
Sales\millionsInterim period ended
September 30, 2004
Interim period ended
September 30, 2003
Year ended March 31,
2004

Interim period ended
September 30, 2004
Interim period ended
September 30, 2003
Year ended March 31,
2004
Notes:(Note: Amounts have been rounded down to the nearest million yen.)
Operating income
Recurring income%\millions%\millions%

279,812

6.5

6,497

2.9

7,625

(5.7)

262,636

5.2

6,316

38.0

8,085

32.2

533,301

10,244

Interim Net Income

Interim EPS

Fully Diluted Interim EPS\millions

%

4,686

69.6

36.84

36.75

2,763

(37.6)

21.73

―

54.69

―

7,010

\

\

1. Gain (loss) on equity method investment
Interim period ended September 30, 2004: 179 million yen Interim period ended September 30, 2003: 503 million yen Year ended March 31, 2004: 437 million yen
2. Average number of shares during the consolidated accounting period.
Interim period ended September 30, 2004: 127,215,519 Interim period ended September 30, 2003: 127,201,161 Year ended March 31, 2004: 127,195,732
3. Changes to accounting policies: Yes.
4. The percentage figures for sales, operating income, recurring income and interim net income represent
increases (decreases) relative to the previous year's interim results.

(2) Consolidated Financial Position
Total assets\millionsInterim period ended
319,997
September 30, 2004
Interim period ended
298,721
September 30, 2003
Year ended March 31,
310,793
2004
Notes:

13,110Shareholders’ equity\millionsShareholders’ equity ratio Shareholders’ equity per share%\

159,22349.8

1,250.56

148,19249.6

1,165.08

156,21050.3

1,227.82

1. Shares issued and outstanding at end of the consolidated accounting period
Interim period ended September 30, 2004: 127,321,704 Interim period ended September 30, 2003: 127,195,704 Year ended March 31, 2004: 127,181,787(3) Consolidated Cash FlowsNet cash from operating Net cash used for financial
activities
activities\millions\millionsInterim period ended(1,466)(1,122)September 30, 2004
Interim period ended(1,988)920
September 30, 2003
Year ended March 31,
6,431(1,689)2004

Net cash used forBalance of cash and cash
investment activities
equivalents at term end\millions\millions(677)

19,093(2,230)15,862(1,832)

21,033(4) Scope of Consolidation and Application of Equity Method
Consolidated subsidiaries: 38 Non-consolidated affiliated companies covered by equity method accounting: 0
Affiliated companies covered by equity method accounting: 9(5) Changes to Scope of Consolidation and Application of Equity Method
Consolidated Subsidiaries: New: 8 Excluded: 1（merger of consolidated subsidiaries ）Equity method: New: 0 Excluded: 0

2. Consolidated Forecasts for the Year Ended March 31, 2005 (April 1, 2004 - March 31, 2005)
Sales

Recurring Income\millions\millions
568,000
14,200Whole Year
Reference: Annual net income per share is projected to reach ¥74.22

Net Income\millions
9,500* The above forecasts were prepared on the basis of information available on the date of release. Actual results may differ from these forecasts due to various factors.

Management Policy
1. Basic Management Policy<Management Philosophy>
The Nagase Group is a member of the world society. As such, it is our duty tomaintain good and fair business practices and, through continued growth anddevelopment, provide society with the goods and services needed while improving
the welfare of our employees.
With this management philosophy in mind, we have developed a new slogan“technology- and intelligence-oriented company that turns wisdom into business”, andfrom April 2003, we adopted a long-term vision as follows.
To provide new “capabilities” and “services” worldwide based on our chemicalbusiness, so as to become a company that keeps creating value-added businesses
capable of solving issues for customers. Our business target in ten years is a
consolidated operating income of ¥20 billion with gross profit ratio of 15% andearnings higher than capital costs.
Our vision is based on the brief that all answers can be found in the market. Our aim
is to strictly apply a customer-oriented approach, make use of our technology andintelligence, along with wisdom gained through experience, and ultimately increase
earnings.
Due to ever-diversifying customer demands, we cannot expect our business togrow steadily based on simple intermediary functions. We do, however, acknowledge
that no company can fulfill all functions by itself in this day and age. To help
customers create new value, we will continue to enhance our functions in order to bechosen as a reliable business partner by customers without hesitation, and persevere
in proposing businesses to the market.
2. Basic Profit Sharing Policy
Our basic policy is to strive to further enhance our corporate structure and earning
power, so that we can continue to generate steady dividends for our shareholders. We
will also work on increasing shareholder value by effectively making use of thetreasury stock system. As one of the measures for this, in fiscal 2002, we introduced astock option scheme aimed at boosting the motivation and morale of employees within
the Group to improve their performance, and at further increasing Nagase’s corporate
value by sharing common interests with our shareholders. We issued rights topurchase new shares in the form of stock options on August 9, 2004, to Directors,
Auditors, Executive Officers and Managers of the Company, as well as Directors andindividuals with an equivalent title in consolidated subsidiaries, based on the
resolution at the ordinary general meeting of shareholders held on June 29, 2004.
3. Approach Policy, etc. for Reduction of Investment Unit
We acknowledge that reduction of minimum investment unit is an effective means toencourage individual investors to participate in the stock market, and ultimately
improve the liquidity of stock. We intend to look into measures to reduce theminimum investment unit, taking into account our business performance, market
conditions and other factors, after carefully examining their costs and benefits. at thispoint of time, however, we have not yet decided on any specific measure or schedule toreduce the minimum investment unit.

4. Target Management Performance Indicators and the Company’s Medium/Long-termManagement Strategies
We are currently pursuing a three year Medium-term Management Plan called the
WIT21 (W: Wisdom, I: Intelligence and T: Technology), which we launched in April
2003, and the interim period of the year ending March 2005 marked the end of thefirst half of the plan. In WIT21, based on the aforementioned long-term vision, a 10
year long-term performance target was first set at “consolidated operating income of
20 billion yen and gross sales-to-profit ratio of 15%, and earnings exceeding capital
cost in the year ending March 2013.” As for performance indicator, we intend toplace top priority on operating income. Instead of an indicator that can be only
expressed in terms of percentage such as Return of Equity (ROE), operating income
clearly shows the absolute value and the changes of earnings performance in the corebusiness and thus we are able to clearly indicate our aims for business expansion andgrowth. As a process to reach the targets, we set our medium-term target to achieve
consolidated sales of ¥550.0 billion and consolidated operating income of ¥11.0 billion
in the year ending March 2006, the final year of the WIT21. The targets are likely to
be attained ahead of plan in the year ending March 2005, the second year of themedium-term plan.
The three basic strategies for achieving this are as follows:(i)

Differentiate Nagase from the competition by strictly taking acustomer-oriented approach;(ii) Nurture and strengthen market-leading businesses; and(iii) Make use of Nagase Group’s functions and distinctive identity to create new
businesses.

We aims to take advantage of our relationships developed over many years withapproximately 6,000 excellent client companies and Nagase Group’s manufacturing,
research, development and marketing functions, and provide clients with superior
services and products needed in the market through creating and proposing ourbusiness models that go beyond being an intermediary.
In addition, as the areas where these basic strategies are implemented, wehighlight the following four business areas as important:
1. Electronics
2. Life science
3. Automotive-related
4. Overseas operations
We will concentrate our management resources in these areas to expand revenues.
These four business areas have potential to exercise strength among all businessbases currently owned by Nagase and at the same time the market of these areas will
likely to expand in the future.
In addition, for all group’s employees working together on “creating new
business,” each and every employee should act with an entrepreneur sprit, set hightargets and focus constantly on achieving them. Accordingly, development of humanresources is another key strategy to attain targets set in the WIT21 and we enhance
management education and training programs to upgrade skills for planning andexecuting business strategies. Furthermore, we provide regular opportunities for theemployees and top management to discuss business strategies, and direct our efforts
for instilling a sprit of challenging through active debate.
5. Challenges to Be Made by the Company
Enhancement of Key Business Area
In order to attain the targets set in medium-term management plan WIT21 andfurther expand revenues over the long term, we currently concentrates ourmanagement resources on the areas we view as important, including investments.
(Electronics)
We believe that the electronics industry is likely to continue growing on a global basis
at the macro level. However at the device unit level represented by PC monitor use
liquid crystal panels, demand and price fluctuations become drastic in accompany
with intensified competition, and we need to foresee and preempt the market trends
and establish the business base in the niche area which is more free from pricefluctuations caused by demand fluctuations in order to sustain the growth. The originof the electronics-related business of the company was not electronics components
themselves but chemicals-based products including chemicals for the production ofsemiconductors and liquid crystals. Currently, we continue working to expand theareas of products handled by developing downstream business such as liquid crystal
use optical films, liquid crystal modules, the assembling and processing business ofthese products, information equipment use components and final consumption
commodities, and to establish systems which generates revenues comprehensively ina broad range of business areas.
In addition, we are increasing the weight in the manufacturing business,through companies we had established, such as Nagase Finechem Singapore (Pte) Ltd.
that produces chemicals for the production of semiconductor and liquid crystal
manufacturing; Nagase ChemteX (Wuxi) Corp. that manufactures formulated epoxy
resin; and Nagase International Electronics Ltd. that was established in March 2004,
as a managing and sales subsidiary for consigned-based manufacturing center for
liquid crystal-related components in the South China region. Through these measures,
we will work to expand revenues by minimizing risk of demand/price fluctuations in
the industry by optimizing the balance of trading business and manufacturingbusiness, and the balance of upstream and downstream sectors in the electronics
industry.
(Life Science)
Currently the pharmaceutical industry is going through severe competition for
expanding business at the scale of global mergers and acquisitions. Japanesepharmaceuticals manufacturers are also not immune to this move and are not only
inevitably competing on a global basis but also facing the intensified competition fororders as a result of activated consignment-based manufacturing in preparation for
the revision of pharmaceutical law in 2005.
For Nagase’s life science related business, we need new strategies and businessdirection on top of the current business pillar, that is new drug intermediate business.
We launched the Life Science Business Planning Office in April 2004. Centering on
this office, we are working at establishing business which comprehensively combinedfunctions such as the manufacturing function held by Nagase ChemteX Corp. andNagase Medicals Co., Ltd., the services function held by MEDICANET Co., Ltd. that
supports clinical tests in new drug developments, the research and development
function at Nagase R&D center, and the sales function for fringe products such as
cosmetics and health foods.
(Automotive)
In the automotive-related business, we achieved direct transactions with finishedautomotive manufacturers, not only selling plastics materials to processing
manufacturers for automotive interior materials and to exterior component

manufacturers such as headlamps, but also selling resin components and moldings atgroup companies and others, and furthermore, suggesting an innovative businessmodel which integrates automotive components designing with mold manufacturingfunctions. In addition, we established a system in which automotive components
assembled in South East Asia are supplied to Japanese automotive manufacturers in
Europe just in time, and actual supply has started.
In the environment where a dramatic increase in domestic new car sales
volume is not expected, expansion of the automotive related business depends on how
to support global production system of client automotive manufacturers. We not only
set up sales bases in the areas where Japanese automotive manufacturers advancedsuch as Tianjin, Shanghai, and Guangzhou in China, but also allocate humanresources specialized in the automotive industry, further developing the system inwhich we provide similar services as Japan, for the manufacturing and design
functions. In addition, not only upgrading human resources and boosting services inexisting bases, we will work to establish strategies for the areas where future
development is expected such as inner China and India.
(Overseas Operations)
In addition to our overseas operations of the aforementioned electronics andautomotive sectors, we are expanding our overseas business centering on so-called
Greater China region which includes mainland China, Hong Kong, and Taiwan, andso-called ASEAN region in South East Asia. For the business in China which changes
much faster than Japan, more business dynamisms and more speedy decision making
are required, and thus we set up a system where executive officer in charge of the
China region will be working as a specialized and resident staff in China from
November 2004, following posting executive officer in charge of ASEAN in the South
East Asia region in April 2004. When considering individual overseas businessdevelopment at each operation bases as a vertical line, we intend to strengthen thefunction as horizontal line in which the optimum strategies within the areas areplanned and implemented.
6. Basic Approach to Corporate Governance and Implementation Status of Measures
Our management policy has always been to carry out good and fair business practices.
We acknowledge the need to enhance corporate governance in the face of accelerated
globalization. In addition, in order to continue improving enterprise value, we
acknowledge the importance of quick decision-making and action and securingtransparency in the management.
While adopting a Board of Auditors system, we introduced a corporate
executive officer system in June 2001, and current management structure features 10

Directors (including one outside Director), 19 Executive Officers (including 8 Officers
concurrently serving as Directors) and 4 Auditors (including 2 outside Auditors). The
Board of Directors is clearly defined as the body in charge of making decisions for

management policies/strategies and supervising the execution of operations. The
Board of Auditors sets the auditing policy in accordance with laws and the Article of
Incorporation, and forms an audit opinion based on reports of each auditor, to reportto the management. In addition, auditors attend all the meetings of the Board of
Directors and express opinions as necessary. The Board of Executive Officers are theGeneral Managers’ Meeting which consists of business operation executive officers
and the Board of Executive Officers which consists of administrative executive
officers and they make quick decision for each execution of business operations ofeach segment.
In addition, we established an advisory board with two outside experts asadvisors based on the view that it is important to have the management practices
examined and checked objectively. We counsel ShinNihon & Co. for a certified public
accountants audit to carry out audit in a fair and objective manner. In addition, there
are no personnel relations, capital relations, business relations nor other interest
relations between outside Directors/Auditors and the company.
Furthermore, we established a Compliance Committee in 2001, in order toimplement compliance management. We endeavored to ensure compliance with laws
and improvement in management ethics. In November 2003, we established theNagase Group’s Compliance Code of Conduct. We work to make sure compliancematters are well understood by executives and employees of the Nagase Group, setrules for consultation services for compliance and provide opportunities in whichgroup employees can directly report the matter and consult the compliance committee
office and outside lawyers beyond the occupational ladder once acknowledging thecompliance related problem within the company.
In addition, in Products Compliance & Security Committee, we carry out
thorough control of trade of restricted freights and technologies stipulated by theexport related laws such as foreign currency and foreign trade law, with the aim to
maintain international peace and security.
In Environmental Protection Committee, we engage in activities in line with
“Environmental Policies” such as 1) compliance with all environmental laws andregulations, 2) development of businesses that give full consideration toenvironmental issues, 3) fulfillment of our responsibilities as a good corporate citizen,4) establishment and continual improvement of environmental management system
and 5) disclosing and making the relevant parties fully aware of our environmental
policies.
In addition, prior to Act for Protection of Computer Processed Personal Data

held by Administrative Organs which is to be enforced in April 2005, we launched theworking team in the Compliance Committee as private information protection
measures, as acknowledging the need to further strengthen the information
management system within the group. We formulated “Privacy Policy for Personal
Information” in October 2004 and will continue enhancing information management
system to fulfill social duties.
Diagram of the Company’s corporate governance structure is as follows:

Shareholder’s Meeting

Audit

Board of Directors（10 including 1 Outside Director）（

Direction
Audit

President
Advice, Check

Direction

Advisory Board

Board of Auditors（4 including 2 Outside Auditors））
2 outside experts

Accounting Auditor

Auditors

Direction

General Managers’ Meeting

Board of Executive Officers（Sales）（Management）

Products Compliance andCompliance Committee

Security Committee
Environment Protection Committee

Business Results and Financial Position
I. Business Results
1. Overview of Interim Period
Overall Company Performance
During the interim period, the Japanese economy continues to trend on a moderate
recovery and the material market continues moving favorably. However, there aresome uncertainties such as the negative impact from continuing overly high price in
crude oil, slowdown in overseas economy including the US, and oversupply of digital
home appliances and liquid crystal related products.
We strived to expand earnings under these circumstances and consequently
domestic sales increased 2.4% year-on-year to ¥177.57 billion while overseas salesrose 14.6% year-on-year to ¥102.24 billion, making sales of ¥279.81 billion, a 6.5%
increase year-on-year.
On the income front, operating income increased 2.9% year-on-year to ¥6.49
billion, thanks to sales increases and others, while recurring income declined 5.7%
year-on-year to ¥7.62 billion due to decreases in equity method investment gains.
While booking losses due to early adoption of loss impairment accounting standards
in the interim period, net income jumped 69.6% year-on-year to ¥4.68 billion due toabsence of extraordinary losses in conjunction with the change in the accounting
standards for retirement benefits in the previous interim period.
Segment Summaries[Chemicals]

Sales: Year-on-year increase of 6.4% to ¥123.36 billion

In the chemicals segment, sales increased in computer peripheral equipment andautomotives related products. An increase in the material market condition also
boosted earnings.
▸ In the colors material segment, overall pigments, particularly those related to ink
materials for ink jet printers, toner materials for copiers and laser printers, andmaterials for liquid crystal color filters, which we had been concentrating ourefforts on as growth industry, trended favorably. While sales of color formers which
are the materials for thermal- and pressure- sensitive papers, and other chemicals
for paper making and dyestuffs grew flat, sales of chemicals used for plasma
display and DVDs increased, pushing up overall sales significantly.
▸ Sales of the urethane materials which are used for sheets and cushions forautomotives increased centering on overseas owing to the effects fromestablishment of joint ventures which the company emphasized as strategic area.

Overseas sales of painting materials which the company focused on also grew.
Sales of these products grew significantly, boosted by the hike in the material
market.
▸ The specialty chemicals segment deals with materials for special chemicals such as
surfactants for home use toiletry products, and industrial use oil solutions. In thissegment, sales of products of Nagase ChemteX Corp., the group’s core
manufacturing company, increased but overall sales growth was marginal due tosome products sold overseas faced competition with lower priced Chinese products.
▸ Sales in the fine chemicals segment, which handles materials for pharmaceuticals
and agricultural chemicals, intermediates and food addictives such as enzyme
slightly declined overall, due to price competition in the pharmaceutical industry
and the review of the agricultural chemicals business to improve profitability,
while enzyme for beverage performed positively.
[Plastics]

Sales: Year-on-year increase of 9.9% to ¥90.65 billion

In the plastic segment, continued expansion of overseas sales and the hike in thematerial market pushed up sales.
▸ Sales overseas (mainly in Asia) of functional resins (engineering plastics) andgeneral use resins continued increasing in the Greater China region. Sales of liquid
crystal related components and materials made of synthetic resins also grew
overseas.
▸ Sales of resin materials for the packaging materials industry and plastics for thehome appliance industry in Japan did not increase significantly, but overall growth
was steady thanks to the hike in the material market condition.
▸ For the business related to resin materials and components for the automotive
industry and resin molding facilities, sales expanded not only in Japan and the
Asian region including mainland China where we have expanded business bases,
but also in the US and Europe, contributing to considerable growth.
▸ Sales in the resin materials used for casings of computer peripheral equipments
andmaterials/productsforbuilding/housing

relatedfacilities

expandedsignificantly owing to collaboration with important clients.
▸ The components assembling business including resin molding products forelectronics equipments which we launched in the previous fiscal year, steadily
expanded, although small sales.
▸ The Nagase Group’s manufacturing companies including Totaku Industries, Inc.
which manufactures industry use hoses, Setsunan Kasei Co. Ltd. which engages incoloring and processing of plastics and Kotobuki Kasei Corp. which manufactures
trays for food packaging performed briskly, with increasing sales.

[Electronics Business]

Sales: Year-on-year increase of 2.5% to ¥59.33 billion

In the electronics segment, while liquid crystal related components, chemicals forliquid crystals and semiconductors, and equipment related businesses trended
favorably, overall sales increased only marginally due to huge decline in thecommunication equipment related business.
▸ While the business centering on formulated epoxy resins at Nagase ChemteX wasflat on the whole, high value added products such as semiconductor encapsulants,that we concentrate our efforts on grew steadily, albeit small scale sales.
▸ The business for chemicals for manufacturing liquid crystals and semiconductors,
and feeding devices expanded significantly, as overseas sales mainly of chemicals
and equipments manufactured by the group companies such as Nagase ChemteX
contributed to sales.
▸ Sales in the business of precision abrasives for semiconductor related silicon wafers
processing expanded significantly both in Japan and overseas.
▸ Domestic and overseas sales (mainly for Taiwan) of optical films used for liquid
crystals trended steadily. In addition, the business of processing and assembling of
liquid crystal components in South China was strong for Japan but recorded
marginal sales decline for overseas.
▸ In the components related business such as liquid crystal modules, sales decreased
due to price decline. Meanwhile, sales of aluminum used for laptop PC casings, andproducts such as DVD players, recoding media and film software which weconcentrate our efforts on as a part of development of downstream business,
expanded. It more than offset sales decline in the liquid crystal module segment.
▸ Sales of components such as power amplifiers used for mobile phones and PHS
station bases declined year on year significantly, failing to recover in the interim
period, while we are working on sales activities of products corresponding to thenext generation products that we developed following a halt in demand in mainland
China and others.
[Healthcare and Others]

Sales: Year-on-year increase 2.8% to ¥6.45 billion

In the Healthcare and Others operations, all businesses such as cosmetics, healthfoods, medical care and radiation measurement products trended on par with theprevious year.
▸ For the door-to-door sales activities in the cosmetics and health foods related
segment, sales function has shifted to Nagase Beauty Care Co., Ltd. during fiscal
2003, concentrating on local community oriented sales activities. While sales

increased temporarily owing to the launch of new products, the segment has not yet
attained full fledged recovery in sales.
▸ Based on medical equipment sales for medical institutions, the medical care related
business which handles medical information and diagnostics systems, and theradiation measurement business which is related to safety management ofradiation performed almost on par with the previous year.
2. Full-year Forecast（Unit: million yen）

Sales
For the year ending
March 2005
For the year ended
March 2004
Year-on-yearcomparison

OperatingincomeRecurringincomeNet income

568,000

12,00014,2009,500

533,301

10,244

13,1107,010

106.5%

117.1%

108.3%

135.5%

We estimate our full-year earnings performance based on the information acquired at
this stage and thus the figures are in line with the disclosed figures in the previous
term (on April 30, 2004). However, the figures may differ significantly in the future,
due to the impact from prolonged hike in crude oil prices, demand and supply balancein the electronics equipment related business including liquid crystals, andfurthermore, the economic trend in the US, the impact from the counter–cyclicalmeasures taken in China, and other unpredictable changes in the economic situationand environment.

II. Financial Position
1. Overview of Interim Period(1) Status of Consolidated Balance Sheet
Total assets increased ¥9.2 billion year-on-year to ¥319.99 billion owing toincreases in account receivable and inventory assets.
While the declared amount of the unrealized holding gains of other securities
declined due to price falls in shares and sales of shares, shareholders’ equity
increased ¥3.01 billion year-on-year to ¥159.22 billion thanks to increases in net
income in the interim period.
Consequently shareholders’ equity ratio declined by 0.5 percentage points, to49.8%.
(2) Status of Consolidated Cash Flow
Net cash provided by operating activities totaled ¥1.46 billion due to increase inoperating funds and payment of corporate taxes and others, while income before
income taxes and minority interests was ¥7.66 billion.
Net cash used in investing activities totaled ¥1.12 billion, due to advancementin capital investment and others although some investment securities were sold off.
In addition, net cash used in financial activities amounted to ¥0.67 billion due
to payment of dividends and others.
Consequently, the balance of cash and cash equivalents as of end of the interim
period declined ¥1.94 billion year-on-year to ¥19.09 billion.

2. Trends in Cash Flow Indicators

Shareholders’ equity
ratio
Shareholders’ equity
ratio based onmarket value
Debt repayment
period (year)
Interest coverageratio

For the year
ended March
2001

For the year
ended March
2002

For the year
ended March
2003

For the year
ended March
2004

For the term
ended September
2004

43.4%

48.0%

49.5%

50.3%

49.8%

21.0%

22.6%

23.2%

38.8%

36.9%

2.9

1.6

3.8

2.6

—

9.9

19.9

10.1

13.9

—

(Note) Shareholders’ equity ratio = Shareholders’ equity / Total assets
Shareholders’ equity ratio based on market value = Market capitalization of shares /Total assets
Debt repayment period = Interest-bearing debt / Operating cash flow
Interest Coverage Ratio = Operating cash flow / Interest payment* All indexes are calculated on the basis of consolidated financial figures.
* Market capitalization of shares is calculated by multiplying the closing price of shares atthe end of the period by the total number of outstanding shares as at the end of the period.
* Operating cash flow refers to net cash provided by operating activities in the Consolidated
Statement of Cash Flows. Interest bearing debt refers to all debt for which interest is
payable declared in the Consolidated Balance Sheet. Interest payment refers to theamount of interest paid as shown in the Consolidated Statement of Cash Flows.
* For the interim debt repayment period, the amount per year is calculated by doubling theoperating cash flow.

November 1, 2004

Summary of Non-Consolidated Interim Financial Statements for the Year Ended March 31, 2005
Company Name:
Nagase & Co., Ltd.
Listing Code:8012(URL http://www.nagase.co.jp)
Representative
Contact Details

Position
Position

Stock Exchanges Listed:Tokyo, Osaka
Location of Head Office:Osaka Prefecture

President

Hiroshi Nagase

Accounting Division Manager
Date of Board of Directors' Meeting for Interim Settlement of Accounts
Interim Dividend System: No
Date of Commencement of Interim Dividend Payment:－
Unit Stock System: Yes (1 unit=1,000 shares)

Takahide Osada
November 1, 2004

Telephone: (03) 3665-3103

１. September 30, 2004 Interim Results (April 1, 2004 - September 30, 2004)(1) Business Results(Note: Amounts have been rounded down to the nearest million yen.)Sales\millionsInterim period ended
September 30, 2004
Interim period ended
September 30, 2003
Year ended March 31,
2004%

Recurring income\millions

4.3

2,828

(11.6)

5,022

(7.8)

213,325

2.9

3,201

126.2

5,449

41.4

433,817

4,217\millions

Notes:%

222,524

Interim Net Income

Interim period ended
September 30, 2004
Interim period ended
September 30, 2003
Year ended March 31,
2004

Operating income\millions

%

7,663

Interim EPS
\

%

3,607

164.7

28.35

1,362

(52.0)

10.71
41.84

5,373

1. Average number of shares during accounting period.
Interim period ended September 30, 2004: 127,258,250 Interim period ended September 30, 2003: 127,243,892
2. Changes to accounting policies: Yes.
3. The percentage figures for sales, operating income, recurring income and interim net income represent
increases (decreases) relative to the previous year's interim results.

Year ended March 31, 2004: 127,238,463(2) Dividends

Interim period ended
September 30, 2004
Interim period ended
September 30, 2003
Year ended March 31,
2004

Dividend
Interim
Dividend per per share\\ (Note) The dividend for the interim period ended September 30, 2004 consists of the following:
Commemorative－－\－
dividend
－

－

－

9.00

Special dividend\－(3) Financial Position
Total assets\millionsInterim period ended
September 30, 2004
Interim period ended
September 30, 2003
Year ended March 31,
2004
Notes:

253,054

Shareholders’ equity
Shareholders’ equity ratio Shareholders’ equity per share%\\millions
121,49048.0

953.88240,172

110,89046.2

871.52

253,810

119,85047.2

941.65

1. Shares issued and outstanding at end of accounting period
Interim period ended September 30, 2004: 127,364,435 Interim period ended September 30, 2003: 127,238,435 Year ended March 31, 2004: 127,224,518
2. Treasury stock at the end of accounting period
Interim period ended September 30, 2004: 11,043,850 Interim period ended September 30, 2003: 11,169,850 Year ended March 31, 2004: 11,183,767

2. Forecasts for the Year Ended March 31, 2005 (April 1, 2004 - March 31, 2005)
Sales

RecurringincomeNet income\millions \millions\millions
Whole Year
445,000
8,300
5,400
Reference: Annual net income per share is projected to reach ¥42.01

Annual dividend
per share

Final
\
8.00

\
8.00

* The above forecasts were prepared on the basis of information available on the date of release. Actual results may differ from these forecasts due to various factors.