Summery of Consolidated Business Results for the Third Quarter Ended December 2003
February 6, 2004
Company NameNagase & 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 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.
Consolidated Subsidiaries: New: 2 Excluded: 0
Equity method: New: 1 Excluded: 1
2. Consolidated Business Results for the Third Quarter Ended December 2003 (April 1, 2003 – December 31, 2003)
1)Consolidated Operating Results(Note: Amounts have been rounded off to the nearest million yen)
Net Sales
Third Quarter Ended December 2003
Third Quarter Ended December 2002
(Reference)
Period Ended March 31, 2003

¥ Millions
397,288‐

Operating Income%‐‐¥ Millions
9,244

503,688

8,433

Net (quarterly) income

EPS (quarterly)

Recurring income%‐‐¥ Millions
11,783‐%‐‐

11,284
Fully Diluted EPS (quarterly)¥ Millions%¥¥Third Quarter Ended December 2003‐‐
5,21641.01
Third Quarter Ended December 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 third 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
315,185‐¥ Millions
151,346‐%
48.0‐

Shareholders Equity PerShare¥
1,189.92‐

284,800

140,94449.5

1,107.55Total Assets
Third Quarter Ended December 2003
Third Quarter Ended December 2002
(Reference)
Period Ended March 31, 2003

Shareholder's Equity Shareholder's Equity Ratio3)Consolidated Cash FlowsNet Cash fromNet Cash Used for
Net Cash Used forBalance of Cash and Cashoperating activities Investment Activities
Financial Activities
Equivalents at Term End¥ Millions¥ Millions¥ Millions¥ Millions
Third Quarter Ended December 2003
3,556
-1,719-877
19,418
Third Quarter Ended December 2002‐‐‐‐
(Reference)
4,392
963
-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 November 7, 2003.
Net Sales
Recurring Income
Net IncomeEPS¥ Millions¥ Millions¥ Millions¥
Whole Year509,000
12,6007,000
54.57*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.

Summary of Consolidated Business Results for Third Quarter of Year ending March 2004

Qualitative Information on Progress of Management Performance (Consolidated), etc.

Overall Company Performance
The Japanese economy in the third quarter continued to experience slow recovery, due to positive
signs in exports and capital investment, and the growth of digital equipment. However, there arestill uncertainties in the international climate, including the turmoil in Iraq, and in association with
this, concerns about prospective exchange rate movements remain.
Under these circumstances, domestic sales and overseas sales in the third quarter amounted to ¥260
billion and ¥136 billion, respectively, resulting in consolidated net sales of ¥397 billion.
On the income front, operating income amounted to ¥9 billion due to brisk sales, and ordinary
income amounted to ¥11 billion. Quarterly net income was ¥5 billion.

Segment Summaries
Chemicals

Sales: ¥173 billion

In the chemicals segment, sales were brisk with respect to urethane for automotive applications,where we are making strategic efforts both domestically and internationally, as well as oil solutions,etc. in the field of specialty chemicals based on a thorough customer-oriented approach. Sales ofpaints also increased especially in China, as we have actively been promoting our expansion
overseas, in conjunction with clients making inroads into overseas markets. In addition, sales ofproprietary products increased in the filter business. On the other hand, overseas sales of plastic
additives decreased due to poor resin production in South Korea, and sales of agrichemicals also
diminished as a result of revising unprofitable products.

Plastics
Sales: ¥126 billion
In the plastics segment, export sales of materials for liquid crystal and molding machines werestrong, especially those destined for Taiwan. Sales of plastics bound for China and Hong Kong also
increased, as a result of the establishment of new bases and the enhancement of existing ones in aneffort to bolster our marketing strength. On the other hand, sales of functional resins in Southeast
Asia decreased, partly because Japanese manufacturers moved their production bases to China.
Sales generated by the automotive business targeting North America increased steadily, while
domestic sales were helped by new businesses regarding the sale of components for electronicequipment. As a result, the segment performed solidly overall.

Electronics
Sales: ¥88 billion
In the electronics segment, we are directing our efforts towards the contract processing business inrelation to LCDs. The business continued to perform well and dramatically pushed up sales,
especially by the sales of materials and components. Sales of digital equipment and software also
increased sharply, while communication components performed solidly. On the other hand, sales offunctional materials slightly decreased, especially due to exports. Nonetheless, the segment
performed extremely well overall.
1Healthcare and Others
Sales: ¥9 billion
The healthcare segment was slightly sluggish, in regard to both cosmetics and health foods. In themedical field, sales relating to clinical examination performed favorably, while sales of medical
information systems and home medical care were sluggish.

Qualitative Information on Changes in Financial Position (Consolidated), etc.
Total assets on a consolidated basis increased ¥30 billion over the previous consolidated fiscal
year-end to ¥315 billion, due to the increase in accounts receivable and investments in securities.
Also, shareholders’ equity increased ¥10 billion over the previous consolidated fiscal year-end to¥151 billion, due to retained earnings and the increase in the amount of unrealized gains on othersecurities declared as capital.

As a result, the ratio of shareholders’ equity fell by 1.5 percentage points to 48.0%, from 49.5% at
the previous consolidated fiscal year-end.

Status of Consolidated Cash Flow
Net cash provided by operating activities amounted to ¥3.5 billion. This is the result of quarterly
income before income taxes and minority interests in the amount of ¥8.3 billion, in addition to theincrease in working capital and the payment of income taxes.
Net cash used in investing activities totaled ¥1.7 billion. This is the result of the expenditure
attributable to the acquisition of plant, property and equipment, and the increase in short-term loans
receivable, which offset the gains on the sale of some of the investment securities.
Net cash used in financing activities amounted to ¥0.8 billion, as a result of the repayment of bankloans and payment of dividends.
Consequently, cash and cash equivalents as at the end of the third quarter increased by ¥0.3 billion
from the previous consolidated fiscal year-end to ¥19.4 billion.
Qualitative Information on Performance Forecasts, etc.
While the domestic economy is showing some signs of recovery, prospects of the global economy
remain uncertain, due to doubts over the U.S. economy and concerns over the stronger yen.
Under these circumstances, Nagase’s business performance for the third quarter was more or less asplanned. Accordingly, there are no changes to the figures on consolidated performance forecasts
announced on November 7, 2003. Similarly, there are no adjustments to the unconsolidated
forecasts.

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