Summery of Consolidated Business Results for the First Quarter Ended June 2004
July 30, 2004
Company Name
Nagase & Co., Ltd
Listing Code8012(URL http://www.nagase.co.jp/)
Representative
Position
President
Contact Details
Position
Accounting Division, Manager

Stock Exchanges Listed: Tokyo, Osaka
Location of Head Office: Osaka Prefecture
Hiroshi Nagase
Takahide Osada

Telephone (03) 3665-3103

1. Matters concerning the preparation of the Summary of Business Results for the First Quarter of fiscal 2004
(1) Use of simplified accounting procedures:(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: 8 Excluded: 1
Equity method: New: 0 Excluded: 0
2. Consolidated Business Results for the First Quarter Ended June 2004 (April 1, 2004 – June 30, 2004)
1)Consolidated Operating Results(Note: Amounts have been rounded off to the nearest million yen)
Net SalesFirst Quarter Ended June 2004
First Quarter Ended June 2003
(Reference)
Period Ended March 31, 2004

¥ Millions
141,214132,926

Operating Income%6.2‐¥ Millions
3,394
3,480

Recurring income%-2.5‐

533,301

10,244

Net (quarterly) income

EPS (quarterly)¥ Millions
4,384
4,933%-11.1‐

13,110Fully Diluted EPS (quarterly)¥ Millions%¥¥First Quarter Ended June 2004
20.84
‐4.6
2,656
20.89
First Quarter Ended June 2003
‐
‐
2,784
21.89
(Reference)‐
Period Ended March 31, 2004
7,010
54.69
Notes:
1. Figures shown in percentage of sales, operating income and other items show the ratios of sequential changes comparedwith the first quarter of 2003.
2. The rate of change of the first quarter of 2003 were not presented because no settlement was made for the first quarter of2002.
2) Consolidated Financial Position¥ Millions
321,146
295,005¥ Millions
159,195
145,462

%
49.6
49.3

Shareholders Equity PerShare¥
1,251.77
1,143.54

310,793

156,21050.3

1,227.82

Net Cash Used for
Financial Activities¥ Millions-436-1,860

Balance of Cash and Cash
Equivalents at Term End¥ Millions
19,27914,141-1,832

21,033

Total Assets
First Quarter Ended June 2004
First Quarter Ended June 2003
(Reference)
Period Ended March 31, 2004

Shareholder's Equity Shareholder's Equity Ratio3)Consolidated Cash FlowsFirst Quarter Ended June 2004
First Quarter Ended June 2003
(Reference)
Period Ended March 31, 2004

Net Cash fromNet Cash Used for
operating activities Investment Activities¥ Millions¥ Millions-1,448-972-2,172-946
6,431-1,6893. Consolidated Forecasts for the Year Ended March 31, 2005 (April 1, 2004 - March 31, 2005)
No change has been made to the forecasts published on April 30, 2004 both for the subsequent quarters and for the entire fiscal year.
Net Sales
Recurring Income
Net Income¥ Millions¥ Millions¥ Millions
Interim Period
284,000
6,900
4,000
Whole Year
568,000
14,2009,500(Reference) Expected EPS(Whole Year) ¥ 74.31*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.

Summary of Consolidated Business Results for the First Quarter ofYear Ending March 2005
[Qualitative Information of Progress of Management Performance (Consolidated) and Others]

Overall Company PerformanceThe Japanese economy in the first quarter remained favorable as the thriving export conditions
continued and some signs of brighter times have begun to appear in the capital investment andconsumer spending. The future of the crude oil price remains highly uncertain, however, and there
are various other insecure factors such as the development of increasing interest rates and theinfluence of Chinese economy control policy.
These conditions were the backdrop for the following the results of the first quarter. The
domestic sales amounted to ¥88.82 billion, a decrease of 1.1% compared to the same quarter of theprevious year; the overseas sales amounted to ¥52.38 billion, an increase of 21.6% compared to thesame quarter of the previous year; the consolidated net sales thus amounted to ¥141.21 billion, an
increase of 6.2% compared to the same quarter of the previous year.
On the income front, the gross profit on sales increased but the operating income
decreased by 2.5% compared to the same quarter of the previous year to ¥3.39 billion, primarily due
to increased service, general and administration expenses caused by an increased number ofcompanies to be consolidated. The ordinary income amounted to ¥4.38 billion, a decrease of 11.1%
compared to the same quarter of the previous year, and the net quarterly income amounted to ¥2.65billion, a decrease of 4.6% compared to the same quarter of the previous year, due to decreased
dividends received and reduced investment profit on equity methods.

Segment Summaries
Sales: ¥63.18 billion[Chemicals]
An increase of 5.0% compared to the same quarter in the previous year.

The sales of the chemicals segment increased as the overseas sales remained buoyant along withother favorable factors such as the influence of rising product prices due to the increasing crude oil
price. In particular, a noticeable increase was seen in the sales related to recording materials, such as
materials for ink jet applications and chemicals for DVD and plasma display products, which are theareas where we focus our efforts in the electronics field. Moreover, the sales of synthetic resinmaterials, resin additives and pigment related materials increased, backed up by firm demands. In
contrast, the sales of products related to the medical and agricultural chemical fields went down,
partly due to the influence of reviewing the low-profit business.

[Plastics]

Sales: ¥44.06 billion
An increase of 10.8% compared to the same quarter in the previous year

The sales in the plastics segment went up because the overseas sales increased significantly and the1domestic sales remained strong as well. The overseas sales of functional resins grew mainly in theso-called Greater China Zone, i.e., China, Hong Kong and Taiwan, and the export of parts related toLCD technology also remained buoyant. The sales of automotive related products, which were oneof our focus areas, increased both inside and outside Japan, particularly the sales for our large
accounts. Overall, materials for business equipment and building materials also fared favorably; thegrowth of part processing and assembly business for electronics, which we began in the last fiscal
year, also contributed to this good result.

[Electronics]

Sales: ¥30.97 billion
An increase of 3.7% compared to the same quarter in the previous year

In the electronics segment, the sales related to LCD technology remained strong, but the overallsales ended up with only a slight increase because the sales of communication technology
components decreased. The sales of functional materials, LCD materials and chemicals forsemiconductor manufacturing mostly leveled off because the overseas sales increased, but thecorresponding domestic sales decreased. The overseas sales of LCD modules and other products
remained as strong as in the previous quarter and the sales of materials for LCD products were alsosteady. On the other hand, the sales of communication technology components failed to recover after
the demands saturated and decreased.

[Healthcare and Others] Sales: ¥2.98 billion
An increase of 2.7% compared to the same quarter in the previous year

The overall sales of the healthcare and others segment decreased because the sales of cosmetics andhealth foods saw sluggish growth and the sales related to medical information and clinicalexamination leveled off.

[Qualitative Information on Changes in Financial Position (Consolidated) and Others]
The company's total assets amounted to ¥321.14 billion, which represents a growth of ¥10.35 billion
compared to the previous consolidated fiscal year end. This increase was mainly due to an increaseof account receivables and inventory assets as well as an increase of current price assessment ofinvestments in securities.
Our liabilities amounted to ¥157.51 billion, which was an increase of ¥7.12 billion
compared to the previous consolidated fiscal year end. This is mainly due to increased accountpayables and short-term loans.
The shareholders' equity increased by ¥2.98 billion over the previous consolidated fiscal
year end to ¥159.19 billion. This is mainly due to increased retained earnings, as well as increased
amounts of unrealized gain on other securities declared as capital.
As a result of the above, the ratio of shareholder's equity was 49.6%, a decrease of 0.7
percentage points from 50.3% at the previous consolidated fiscal year end.

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[Status of Consolidated Cash Flows]
Regarding the cash flows from operating activities, the quarterly net income before income taxes andminority interests amounted to ¥4.59 billion, but an amount of ¥1.44 billion in cash was spent due toincreased operating funds, summer bonus allowances and corporate tax payments.
In terms of cash flows from investment activities, there was income from sales of part ofour investments in securities, but because expenditures were made to acquire certain tangible fixed
assets, an amount of ¥970 million in cash was spent.
Concerning cash flows from financing activities, an amount of ¥430 million in cash wasspent for dividend payments etc., although this was offset somewhat by income due to an increase of
short-term loans.
As a result of adjusting increases of cash and cash equivalents according to the newconsolidation, the balance of cash and cash equivalents at the end of the first quarter decreased by¥1.75 billion from the previous consolidated fiscal year end to ¥19.27 billion.

[Qualitative Information on Performance Forecasts and Others]
As of this date, there are no changes to the consolidated performance forecast figures for thesubsequent quarters or for the entire fiscal year which were announced on April 30, 2004. Similarly,
there are no adjustments to Non-Consolidated performance forecasts.

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