Summary of Consolidated Business Results
for the Year Ended March 31, 2002

May 21, 2002
Stock Exchanges Listed:Tokyo, Osaka
Location of Head Office:Osaka Prefecture

Company Name:
Nagase & Co., Ltd.
Listing Code:8012(URL http://www.nagase.co.jp)
Contact Details:
Name: Makoto Tsuruoka
Position: Chief Financial Officer
Telephone: (03) 3665-3100
Date of Board of Directors' Meeting for Settlement of Accounts: May 21, 2002
Date of Regular General Meeting of Shareholders: June 27, 2002
Interim Dividend System: No
Unit Stock System: Yes (1 unit=1,000 shares)

1. Consolidated Financial Statements for the Year Ended March 31, 2002 (April 1, 2001 - March 31, 2002)(1) Consolidated Operating Results(Note: Amounts have been rounded down to the nearest million yen.)Sales¥millions%Operating income¥millionsYear ended March 31, 2002

490,583(12.3)

1,673

Year ended March 31, 2001

559,372(1.6)

Net income¥millions

Ordinary income¥millions%%(78.4)

4,739(53.9)

7,752(47.7)

10,2824.0

Net income
per shareAfteradjustment
for latentsharesReturn on
equity (ROE)

Return on
assets
(ROA)

¥

¥

%

%

%

Year ended March 31, 2002

(2,097)−(15.39)

−

(1.4)

1.4

1.0

Year ended March 31, 2001

4,945

(22.4)

35.28

−

3.4

3.1

1.8

Notes:%

Sales-ordinary
income ratio

1. Gain (loss) on equity method investment
Year ended March 31, 2002: \276 million Year ended March 31, 2001: \375 million
2. Average number of shares during the consolidated accounting period.
Year ended March 31, 2002: 136,264,739 Year ended March 31, 2001: 140,173,640
3. Changes to accounting policies: none.
4. The percentage figures for sales, operating income, ordinary income and net income represent
increases (decreases) relative to the previous year's result.

(2) Consolidated Financial Position
Total assets¥millionsShareholders’ equity¥millionsShareholders’ equity ratio%

Shareholders’ equity per share¥

Year ended March 31, 2002

300,073

144,17648.0

1,082.16

Year ended March 31, 2001

353,776

153,498

43.4

1,104.81

Notes:

1. Shares issued and outstanding at end of the consolidated accounting period
Year ended March 31, 2002: 133,230,914 Year ended March 3, 2001: 138,936,961(3) Consolidated Cash FlowsNet cash from operating Net cash used for financial
activities
activities¥millions¥millions

Net cash used forinvestment activities¥millions

Balance of cash and cash
equivalents at term end¥millionsYear ended March 31, 2002

12,351

1,300

8,615

21,960Year ended March 31, 2001

8,165

4,162

8,306

18,465(4) Scope of Consolidation and Application of Equity Method
Consolidated subsidiaries: 26 Non-consolidated affiliated companies covered by equity method accounting: 0
Affiliated companies covered by equity method accounting: 8(5) Changes to Scope of Consolidation and Application of Equity Method
Consolidated subsidiaries: New: 2 (resulting from split-up of consolidated subsidiaries)
Excluded: 4 (including 3 resulting from mergers of consolidated subsidiaries)
Equity method: New: 0 Excluded: 0

2. Consolidated Forecasts for the Year Ended March 31, 2003 (April 1, 2002 - March 31, 2003)
Sales

Ordinary Income¥millionsInterim250,000
500,000

Whole Year
Reference: Net income per share is projected to reach ¥36.03

Net Income¥millions

4,000
8,000

¥millions

2,400
4,800

* 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.
For further information about the forecast items, please refer to Pages 8 and 9 of the attached notes.

Management Policy
1. Basic Policy
Philosophy
The Nagase Group is a member of society and, as such, it is our duty to behave in a manner in keeping with thisrole by maintaining good and fair business practices and providing society with the goods and services it needs.
Through continued growth and development, Nagase can improve the welfare of its employees, while making acontribution to society.
Our vision is to remain faithful to this philosophy as a technology and information oriented company that turns
wisdom into business. We interpret this vision as meaning a total commitment to the customer based on afundamental belief that all answers can be found in the market, and a determination to develop our businessactivities through the combination of information with experience to create wisdom that goes beyond the narrow
definition of the trading company.
The needs of our customer vary widely, and we cannot hope to build stable business relationships based solely
on an intermediation role. We recognize that the time when we could function effectively through intermediation
alone has passed. We are also aware that it is no longer feasible for a single company to perform all functions
itself. We are strengthening our capabilities so that customers will feel confident to choose us as a reliablebusiness partner that can help them to create new value. Our priorities are as follows:• Expansion and enhancement of our R&D and manufacturing capabilities• Development of new investments and businesses based on our business strategy• Reinforcement of our distribution systems• Maintenance and expansion of domestic and overseas business relationships based on trust developed overmany years• Reinforcement of our unique human resources
Efforts in these areas will help us to lay the foundations for a more focused business structure that will allow us
to supply our markets with a continuing stream of attractive business ideas.
2. Basic Policy on Profit Distribution
Our fundamental policy is to enhance our corporate fundamentals and earning power so that we can continue togenerate stable dividends for our shareholders. As in the previous year, we plan to pay a dividend of ¥8 in thecurrent year. We are also working to improve our share price by taking advantage of the treasury stock system toacquire and cancel our own shares. We are also employing effective capital policies, including stock options andM&A.
3. Thinking and Policies on Reduction of Investment Unit
We recognize that the reduction of minimum investment units is a way to encourage individual investors toparticipate in the stock market, thereby increasing share liquidity. We intend to proceed with caution, taking into
account our business performance, the state of the market, and the balance between costs and benefits. However,
we have not yet made decisions concerning a specific policy or time for the reduction of investment units.
4. Medium- to Long-Term Management Strategy
We are implementing a medium-term management plan covering the period from April 2000 to March 2003.
This plan, which stipulates key business strategies and targets, is called the “WIT2000” plan (W: Wisdom, I:
Intelligence, T: Technology). Our aim under this plan is to achieve earnings in excess of capital costs andcontinued income growth, and to achieve this we established a new business indicator called “Nagase Return on
Equity” (Note), or NROE. Our target was to raise our consolidated NROE to 7% by the end of fiscal 2002.
Unfortunately, an extremely harsh business environment has forced us to reduce our targets for the final year of
the medium-term plan to net income of ¥ 4,800 million and an NROE of 5%. Our approach is based on thefollowing management policies.

① We will continue to target earnings in excess of capital costs by achieving profit growth through aggressive
investment in the priority areas of electronics and healthcare. In principle, that investment will not exceed
Nagase profit.
② We will work to maximize efficiency and productivity by focusing on consolidated management priorities
for the Nagase Group, including the reinforcement and development of manufacturing group companies,
and improvement of the sales systems and business fundamentals of sales and service companies.
③ We will concentrate our resources by dividing our business operations into chemicals, plastics, electronics
and healthcare segments, and by identifying core and challenge activities in each of these four segments.
Note: NROE = Nagase profit/equity capital at the beginning of the period
Nagase profit=Profit after tax＋(depreciation ±appraisal profit/loss)×(1-effective tax rate)
Nagase profit is equivalent to operating cash flows.
5. Policies Concerning the Management Organization
At the Board of Directors’ meeting held today, the Directors of Nagase & Co. Ltd. adopted a proposal to amend
the Articles of Association to reduce the term of office of directors from two years to one year, and table this
proposal as a motion at the 87th regular general meeting of shareholders to be held on June 27, 2002.
In the previous fiscal year, the Company introduced an executive director system and defined its Board of
Directors as the organization responsible for decisions concerning management policy and strategy, and forsupervision of the performance of business operations. Management systems will be flexibly developed to createa structure that will support speedy and appropriate management decision-making. The aim of these moves is toaccelerate the implementation and realization of the WIT2000 Medium-term Management Plan, which has as its
goal the improvement of group earning power, and to build a corporate structure equipped for success in the 21st
century.
6. Priority Goals(1) Management Rationalization
The number of employees (non-consolidated) was reduced by approximately 150 compared with the previous
year’s total, through an early retirement plan and natural attrition. We will continue to reduce group selling andadministrative costs and improve earning power through restructuring of the domestic sales networks.
In the current year, Nagase withdrew from a TV component assembly business in Mexico and a temporary
staffing business in Japan. It also sold the sales operations of Nagase Pharmaceuticals Co., Ltd. Nagase willcontinue to drop some activities and pick up others as part of its continuing efforts to strengthen its sales andearning potential by concentrating its management resources in strategically important areas in which it has anadvantage.
(2) Reinforcement of R&D and Manufacturing Systems
Nagase is strengthening its research and development systems and manufacturing systems to facilitate thecreation of new businesses based on wisdom that goes beyond the conventional framework of a trading company.
The Nagase R&D Center has earned an excellent reputation for its high standard of technology. Its productdevelopment activities focus primarily on the healthcare field, especially synthesis technology forpharmaceutical intermediates, and natural extracts.
Recent moves des igned to strengthen Nagase’s manufacturing capabilities include the establishment of Nagase
Finechem Singapore Pte Limited to manufacture and recycle LCD materials and the industrial packaging
material manufacturer Nagase Precision Plastics Shanghai Co., Ltd.. Nagase also invested in Guangzhou Kurabo
Chemicals Co., Ltd., a joint venture established to manufacture automotive urethane moldings.
(3) Investment and New Business Development Based on Business Strategies
Nagase is strengthening its business base and competitiveness by channeling its investment into strategic areas
with long-term growth and profit potential. In the area of electronic products, Gigatech Co., Ltd. has expanded
its production capacity for communications modules. It continues to achieve rapid growth, especially in sales of
products for the Chinese market. A functional film image processing system, which Gigatech took from theplanning to development stages, has become the de facto standard in the Japanese market. Nagase ChemteX
Corp. is working to expand its epoxy business and has acquired sales rights from Nihon Polymer Co. Ltd.
In the healthcare area, Herbal Care Co., Ltd. is building a new sales network for cosmetics and healthcare
products through the establishment of outlets in department stores. Nagase ChemteX has expanded its
production capacity for pharmaceutical intermediates, while Nagase Pharmaceutical Co., Ltd. is investing infacilities to support the expansion of its contract production operations.
In the plastics field, Nagase is working with its customers and group companies to strengthen its automobilerelated activities. Recently it established Design ＆ Die Co., Ltd., which specializes in automotive plastic parts,
from the design and prototype stage through development and engineering of mass-production dies.
Nagase will continue to foster new business activities through investment in areas that reflect its businessstrategies .
(4) Emphasis on Consolidated Management
Nagase is rationalizing and restructuring its group with the emphasis on group earnings. Nagase sells a wide
range of highly specialized products , and its approach in the past has been to maintain sales companies in eachbusiness segment. This structure is now being replaced with one based on customer- and region-focused sales
companies that span multiple business areas and are able to respond quickly to customer needs in various
product categories. This restructuring will strengthen Nagase’s sales capabilities and income base.
(5) Reinforcement of Overseas Business Activities
Nagase recognizes the growth potential of the Chinese market and has established four new production
operations there, bringing the total to seven. It has also expanded its network of sales offices to nine with the
opening of new offices in Dalian, Suzhou and Guangzhou. In addition, Nagase has also restructured its sales
network in North America, including the establishment of Nagase Plastics America Corporation. These changes
reflect the emergence of a quadrilateral structure based on Japan, North America, Europe and Asia in theautomobile sector.
Nagase will continue to expand its overseas business activities. Future plans include the establishment of abusiness operation in Hanoi, Vietnam.
(6) Strengthening Human Resources
Globalization is bringing dramatic changes in Japan’s industrial structure. Nagase is adapting flexibly to thesechanges by increasingly linking promotion and remuneration to results, instead of the traditional system ofseniority-based advancement. It is also working to revitalize both people and organizations under a new humanresource management system. To improve morale and provide enhanced motivation toward performance
improvement, Nagase also intends to introduce stock option plans for directors, executive directors, senior
employees and directors of subsidiaries.
(7) Environmental Initiatives
Nagase’s environmental policy emphasizes consideration for the environment in all business activities. Specificinitiatives that reflect Nagase’s capabilities as a technology- and information-oriented enterprise include thedissemination of information about the safety of chemical products. Nagase also supplies information about theachievement of zero emissions and proposes eco-materials, equipment and systems that will help to reduce
environmental impact. Another way in which Nagase contributes to environmental protection is through thee xpansion of its eco-business activities. These include on-site recycling of liquid waste, including oils andcleansers, from metal processing and other manufacturing operations, and sales of Pluswood, a newenvironment-friendly construction material made by mixing halogen-free resins with powdered scrap timber andtimber from forest thinning activities.

Business Results and Financial Position
I. Business Results
1. Overview of the Year Ended March 31, 2002
The Japanese economy continued to stagnate in the year ended March 2002. Falling business incomes caused a
decline in private sector capital investment, while high unemployment and falling personal incomes continued toexert downward pressure on consumer spending. As in the previous year, this harsh economic environment was
exacerbated by a deflationary trend.
Overseas, the U.S. economy began to show signs of recovery in the second half of the fiscal year, and theEuropean and Asian economies were also expected to recover. However, the IT slump that rippled outward fromthe United States had a major impact, and the world economy as a whole remained stagnant throughout the fiscal
year.
Nagase worked to expand its earnings in every business segment. However, total sales were 12.3% below theprevious year’s level at ¥490,580 million, reflecting economic stagnation in Japan and the worldwide slump in
the IT sector. Domestic sales declined by 13.1% to ¥341,100 million, while overseas sales were down 10.4% at¥149,480 million.
The decline in sales had a serious impact on profit. Operating income was sharply lower with a 78.4% decline to¥1,670 million, while ordinary income fell by 53.9% to ¥4,730 million. Nagase also posted extraordinary cost
items, including restructuring costs and valuation losses on investment securities. It is with regret thatmanagement must report a net loss of ¥2,090 million for the year ended March 31, 2002.
Segment Summaries
Chemicals
Sales: Decline of 8.1% to ¥218,520 million
Situation
In the chemicals segment, trends in Nagase’s pharmaceuticals bulk and pharmaceuticals intermediate businesses
remained firm, but economic deceleration in Japan and overseas caused sales of pigments, paints, plastic raw
materials, electronic chemicals and other products to stagnate. As a result, total sales fell below the previous
year’s level.
The plastic additive business has been a major focus for Nagase over the past few years, and it has enjoyedrelatively strong trends in exports Asia. In the current year, however, slower trends in several sectors, notably
housing, construction and data equipment, were reflected in reduced domestic demand for plastics. This in turnled to lower unit prices, causing sales of plastic raw materials, pigments and other products to fall on year-toyear basis.
In the area of recording materials, Nagase continued to develop new products in such areas as inkjet and display
products . Unfortunately, demand for materials used in pressure- and thermal-sensitive papers fell sharply inEurope, North America and Japan, with the result that sales failed to match the previous year’s figures. Sales ofpaint-related products also declined year-on-year due to stagnating demand, especially in the area of house paints.
In the pharmaceutical category, exports of pharmaceutical bulk and intermediates to Europe and North America
were buoyant, and Nagase also maintained firm trends in its sales of bulk and intermediates to pharmaceuticalmanufacturers in Japan.
In the specialty chemicals field, Nagase recorded strong sales of newly developed products, such as cosmetic andperfume raw materials and catalysts. However, sales of chemicals used to manufacture electronic raw materials
were sharply lower than in the previous year. Demand for enzymes used in food manufacturing was also slow.
As a result, sales declined year-on-year.
Performance of Group Companies

Nagase ChemteX Corporation recorded a year-on-year decline in its sales of chemical products. This reflects
slower sales of enzymes, specialty chemicals and other products.
The sales of Nagase Color & Chemicals., Ltd. were below the previous year’s level due to a slump in theJapanese textiles industry.
Nagase Thailand Co., Ltd. recorded excellent results thanks to increased sales of urethane raw materials andother products .
Nagase America Corporation reported pleasing results, including increased sales of food additives and otherproducts .
Plastics
Sales: Decline of 14.7% to ¥175,250 million
Situation
Nagase maintained firm sales trends in the areas of automotive products and products manufactured by groupcompanies. However, exports of plastics for use in electrical equipment and data equipment manufacturing werelower because of the IT slump, while the transfer of domestic sales of GE products caused a reduction indomestic sales of plastics. As a result, total sales fell below the previous year’s level.
Despite a fall in the number of automobiles sold in Japan, sales of automotive products remained strong becauseof Nagase’s efforts to build a four-sided sales structure encompassing Japan, North America, Europe and Asia.
Exports of electrical equipment and data equipment to China and Hong Kong were buoyant, reflecting theaccelerating shift of production operations to China by the Japanese manufacturing sector. However, sales ofdata equipment were affected by the IT slump, and both domestic sales and exports to Southeast Asia were
below the previous year’s levels.
In the area of packaging materials and construction materials, competition from imports caused the unit prices ofgeneral-purpose plastics to decline. A predicted increase in sales of timber composite materials failed to emerge
because of delays in market development, and sales stagnated. As a result, total sales of packaging materials andconstruction materials declined year-on-year.
Performance of Group Companies
Nagase Plastics Co., Ltd. reported lower sales than in the previous fiscal year. Reasons for this result included astagnant market environment due to competition from imports.
Kotobuki Kasei Kogyo Co., Ltd. recorded buoyant sales trends, but Totaku Industries, Inc. and Setsunan Kasei
Co., Ltd. were both affected by slumps in the construction, civil engineering, office automation equipment andelectrical appliance industries, and their sales fell sharply compared with the previous year’s results.
Reduced demand for plastics in the electrical equipment and data equipment manufacturing industries wasreflected in substantially reduced sales for several companies, including Nagase Singapore (Pte) Ltd. and Nagase
Wahlee Plastics Corporation.
The shift of production operations for electrical equipment, data equipment and other products to China wasreflected in increased sales for Nagase (Hong Kong) Ltd.
Canada Mold Technology Inc. increased its sales of automotive molds.
Electronics
Sales: Decline of 19.1% to ¥83,660 million
Situation

Sales increased in a number of areas, notably communications parts and modules and image processing
equipment. Nagase continued to target future business expansion through investment in Japan and overseas ,including the establishment of Nagase Finechem Singapore Pte Limited. However, demand for PCs, mobile
telephones, data equipment and other products was substantially lower, and there was a dramatic fall in the unit
prices of LCDs. Sales of parts for mobile telephones, fluororesins and encapsulation agents were also slow. As aresult, total sales fell short of the previous year’s result.
Market prices for LCDs were dramatically lower, causing sales to decline year-on-year.
In the area of parts for communications equipment, increased demand for telecommunications in China wasreflected in strong sales of communications parts and modules.
In the functional materials category, Nagase recorded strong sales of some products, including insulating
materials for electrical equipment, and optical adhesives. However, total sales fell below the previous year’slevel due to slack demand for electronic parts, including fluororesins, encapsulation agents, and advanced
functional adhesives.
Sales of precision abrasive materials were significantly affected by inventory adjustments necessitated bysluggish demand for mobile telephones and PCs, which are the main applications for crystal oscillators and harddisk drives. Total sales in this area declined year-on-year.
Performance of Group Companies
Nagase ChemteX Corp. maintained firm trends in its sales of epoxy resins for heavy electrical machinery andchemicals for LCD manufacturing. However, there were sharp declines in sales of epoxy resins and chemicals
used in semiconductor manufacturing, with the result that total sales declined relative to the previous year’s
result.
Hoei Sangyo Co., Ltd. recorded buoyant sales of image media, but stagnant demand for equipment systems andsoftware meant that sales marked time at the previous year’s level.
Nagase Electronic Equipment Service Co., Ltd. reported a substantial year-on-year decline in its sales. This
reflects a sharp fall in semiconductor-related capital investment.
Health Care and Other Activities
Sales: Increase of 3.9% to ¥13,140 million
Situation
Door-to-door sales of cosmetics declined year-on-year, but sales of health foods and beauty foods were higher.
There was also an increase in sales of medical information equipment.
Door-to-sales of cosmetics declined because of economic stagnation, which was reflected in falling prices andreduced consumer spending. However, sales of health foods expanded, reflecting increased health awareness on
the part of consumers, as well as the introduction of New Belmash.
Sales of medical information equipment remained strong, thanks to marketing efforts focusing on infection
prevention systems and bacteria test devices.
2. Forecasts for the Year to March 31, 2003
Year Ended
Sales (¥ millions)
Ordinary income (¥ millions)
Net income (¥ millions)

March 31, 2002

March 31, 2003

490,583
4,739(2,097)500,000
8,000
4,800

Year-on-Year Increase(Decrease) (%)
101.9%
168.8%The U.S. economy is e xpected to remain on a recovery path, which should also ensure a recovery in the Asia
economies. Japan’s economic performance is also likely to bottom out, led by exports to the United States andAsia. Based on this economic outlook, Nagase is predicting growth in exports of plastic raw materials to Asia,and a recovery in demand for materials used to manufacture semiconductors and LCDs. Rationalization
measures implemented in the previous and current years, including reductions in selling and administrative
expenses , should translate into higher income.
Segment Forecasts
Chemicals
Sales: Increase of 3.4% to ¥226,000 million
The domestic demand environment is expected to remain harsh, and overall sales and income for the chemicals
segment are expected to show only marginal growth. The current year’s strong trends in sales of pharmaceuticalbulk and intermediates should continue, and a recovery in demand for plastic additives in Asia and recording
materials in Europe and North America is expected to result in buoyant sales in this areas. Nagase will also
continue its efforts to expand its business activities in China.
Plastics
Sales: Decline of 5.9% to ¥165,000 million
Overseas, the new fiscal year is expected to bring a recovery in sales of plastic raw materials for use in the
production of office automation equipment and electrical appliances, especially in China and Southeast Asia.
However, domestic sales of plastics are expected to stagnate because of a shift to offshore production. Sales are
therefore likely to be lower than in the current year. Despite this, profit will benefit from the restructuring of theNagase Group’s manufacturing companies and increased sales of high-margin in-house products. Nagase is
therefore predicting lower sales but higher income.
Electronics
Sales: Increase of 12.4% to ¥94,000 million
Demand for semiconductor- and LCD-related products is expected to recover, and Nagase is predicting increased
sales of parts for communications equipment, as well as increased revenues and profit resulting from the
expansion of its overseas assembly operations. One priority will be the early start-up of Nagase Finechem
Singapore Pte Limited. Nagase will also work to strengthen its business activities relating to LCDs andsemiconductors.
Health Care and Other Activities
Sales: Increase of 14.1% to ¥15,000 million
In the area of cosmetics and health foods, Nagase will work to launch necessary products and expand its businessthrough retail outlets, which are a new sales channel in this segment. Both revenues and income are expected torise. In the medical information equipment field, Nagase will target further business expansion, including
increased sales of infection prevention systems and bacteria test devices.
These forecasts add up to total sales of ¥500,000 million, ordinary income of ¥8,000 million, and net income of¥4,800 million in the year to March 31, 2003. Nagase plans to pay a dividend of ¥8 per share.
II. Financial Position
1. Overview of the Current Fiscal Year
(1) Consolidated Balance Sheet
Consolidated total assets declined by ¥53,700 million compared with the figure for the previous consolidated
accounting period to ¥300,070 million. The decline reflects a reduction in accounts receivable because of adecline in sales, as well as a decline in investment securities. Shareholders’ equity declined ¥9,320 million fromthe level in previous consolidated accounting period to ¥144,170 million. Reasons for this include a reduction in
the amount of unrealized profit on other securities transferred to capital, due to the stagnation of the stock market.
The shareholders ’ equity ratio rose by 4.6 points to 48.0%.

(2) Consolidated Cash Flows
Despite the net loss of ¥2,940 million before adjustment for income taxes, net cash from operating activities
amounted to ¥12,350 million. This is mainly attributable to adjustments for non-financial costs, such as valuation
losses on securities, and a reduction in working capital.
Nagase invested actively in plant and facilities. However, it also sold some of its investment securities, with theresult that net cash used for investment activities amounted to only ¥1,300 million.
Net cash used for financial activities amounted to ¥8,610 million. This reflects the repayment of bank loans, thepayment of dividends, and the acquisition of treasury stock.
Cash and cash equivalents as of March 31, 2001, amounted to ¥21,960 million. This represents an increase of¥3,490 million over the position at the end of the previous fiscal year.
2. Outlook for the Year to March 31, 2003
Net income before income taxes will improve compared with the current year’s result. However, net cash fromoperating activities is expected to decline because of an increase in working capital due to the absence of theholiday factor.
Net cash used for investment activities is expected increase, reflecting continuing investment in plant andfacilities, and investment and lending activities.
Net cash used in financial activities is expected to remain close to the current year’s level, due to the continuingacquisition of treasury stock and reduction of interest-bearing debt.
On this basis, the balance of cash and cash equivalents at the end of the next fiscal year is expected to be lower
than the position at the end of the current year.
* The above forecasts of business performance and the financial position in the year to March 31, 2003 are basedon reasonable conclusions and assumptions from information available at this time. It should be noted that actual
results may vary from these statements due to future changes in the situation.

Summary of Non-Consolidated Financial Statements
for the Year Ended March 31, 2002

May 21, 2002

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

Company Name:
Nagase & Co., Ltd.
Listing Code:8012(URL http://www.nagase.co.jp)
Contact Details:
Name: Makoto Tsuruoka
Position: Chief Financial Officer
Telephone: (03) 3665-3100
Date of Board of Directors' Meeting for Settlement of Accounts: May 21, 2002
Date of Regular General Meeting of Shareholders: June 27, 2002
Interim Dividend System: No
Unit Stock System: Yes (1 unit=1,000 shares)
1. Results for the Year Ended March 31, 2002 (April 1, 2001 - March 31, 2002)(1) Business Results(Note: Amounts have been rounded down to the nearest million yen.)Sales¥millionsOperating income¥millions%%

Ordinary income¥millions%Year ended March 31, 2002

407,950(15.2)

(905)

−

2,761

(51.5)

Year ended March 31, 2001

481,294

(1.7)

2,280

(47.7)

5,697

(5.4)

Net income
per shareAfteradjustment
for latentsharesReturn on
equity (ROE)

Net income¥millions

¥

¥

%

%

%

Year ended March 31, 2002

(2,361)−(17.33)

−

(2.0)

1.0

0.1

Year ended March 31, 2001

3,004

(27.2)

21.42

−

2.6

2.1

1.2

Notes:%

Return on
Sales-ordinary
assetsincome ratio(ROA)

1. Average number of shares during accounting period.
Year ended March 31, 2002: 136,264,739 Year ended March 31, 2001: 140,248,593
2. Changes to accounting policies: none.
3. The percentage figures for sales, operating income, ordinary income and net income represent
increases (decreases) relative to the previous year's result.

(2) Dividends

¥

Total
annualdividend¥millionsYear ended March 31, 2002

8.00

−

8.00

1,065

Year ended March 31, 2001

8.00

−

8.00

1,111

Dividend per share
Interim¥

Final¥

Dividendshareholders' equity ratio

Dividend
propensity
%

%

−

1.0
37.0

1.0

(3) Financial Position
Total assets¥millionsShareholders’ equity
Shareholders’ equity ratio Shareholders’ equity per share%¥millions¥Year ended March 31, 2002

244,916

111,35045.5

835.77

Year ended March 31, 2001

284,772

121,97042.8

877.88Notes:

1. Shares issued and outstanding at end of accounting period
Year ended March 31, 2002: 133,230,914 Year ended March 3, 2001: 138,937,285
2. Treasury stock at the end of accounting period
Year ended March 31, 2002: 5,177,371 Year ended March 3, 2001: 324

2. Forecasts for the Year Ended March 31, 2003 (April 1, 2002 - March 31, 2003)
Ordinary
incomeNet income¥millions¥millions¥millions

200,000
400,000

1,900
3,800

1,400
2,900

Sales

Interim

Annual dividend per share

InterimWhole Year
Reference: Net income per share is projected to reach ¥21.77

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 tovarious factors. For further information about the forecast items, please refer to Pages 8 and 9 of the attached notes.