Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025
<Under Japanese GAAP>

August 5, 2024

These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

NAGASE & CO., LTD.
Stock exchange listing: Tokyo (Prime Market)
Code number:8012
URL (https://www.nagase.co.jp/english/)Representative:
Hiroyuki Ueshima, Representative Director and President
Contact:
Kazuhiro Hanba, Executive Officer, General Manager, Corporate Management Department
TEL:+81-3-3665-3103
Start of distribution of dividends (scheduled): Supplementary documents of quarterly financial results: Yes
Quarterly investors' meeting: Yes(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results
Net sales
For the first quarter ended
June 30, 2024
June 30, 2023

Millions of yen

239,201
224,062(Note) Comprehensive income

Gross profit%

6.8
2.0

Millions of yen

45,78838,707

Operating income%18.3-3.0

Millions of yen

Profit attributable toowners of the parent

Ordinary income%

10,734
6,955(% = year-on-year change)

54.3
-36.0

Millions of yen%

10,949
7,338

Millions of yen

49.2
-36.4

%

7,415
4,367

69.8
-45.2

First quarter ended June 30, 2024: ¥21,409 million (44.0%)
First quarter ended June 30, 2023: ¥14,866 million (12.8% decrease)
Earnings per share

For the first quarter ended
June 30, 2024
June 30, 2023

Earnings per share (diluted)
Yen

Yen

65.42
37.45

−−(2) Consolidated Financial Position
Total assets
June 30, 2024
March 31, 2024
(Reference) Equity capital

Shareholders’equity ratio

Net assets

Millions of yen

Millions of yen

830,238
792,336

Net assets per share%

414,800
401,315

Yen

49.0
49.7

3,612.12
3,463.84

As of June 30, 2024: ¥ 406,947 million
As of March 31, 2024: ¥ 394,064 million

2. Dividends
1Q
For the year ended (or ending)March 2024
March 2025
March 2025 (forecast)

2Q
Yen−−(Note) Revisions to the latest dividends forecast: No

Annual Dividends per Share
3Q
Fiscal year end
Yen

40.00
40.00

YenYenAnnualYen

−

40.00

80.00

−

45.00

85.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2025
(April 1, 2024 to March 31, 2025)(% = year-on-year change)

Net sales

Full fiscal year

Millions of yen

940,000

Gross profit%

4.4

Millions of yen

180,000

Operating income% Millions of yen

9.3

36,500Ordinary income% Millions of yen

19.2

35,200

Profit attributableto owners of theparent% Millions of yen

15.1

28,000Earnings
pershare%

25.0

Yen

254.30(Note) Revisions to the latest consolidated earnings forecast: No* Notes(1) Significant changes in the scope of consolidation during the period: Yes
New: ― (Company name:)
Excluded: 1 (Company name: Nagase Specialty Materials NA LLC)
(2) Application of special accounting methods to the preparation of quarterly financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error
correctionsi.
Changes in accordance with revisions to accounting and other standards: Yes
ii. Changes in items other than (i) above: Noiii. Changes in accounting estimates: Noiv. Restatement of prior period financial statements after error corrections: No(4) Number of shares issued and outstanding (common stock)i.
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)June 30, 2024

ii.

March 31, 2024

117,908,285 shares

March 31, 2024

4,143,115 shares

June 30, 2023

116,646,422 shares

Number of treasury stock as of the fiscal period end
June 30, 2024

iii.

114,908,285 shares

2,246,437 shares

Average number of shares during the period
June 30, 2024

113,344,753 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants
or an audit firm: None
* Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions deemed rational.
A variety of factors could cause actual results to differ materially from forecasts.

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2024

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(March 31, 2024)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherLess allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Technology-based assets
Other
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2024)

59,410321,126
131,137
2,594
14,25914,881(940)
542,470

58,395
333,353
140,387
2,667
16,54021,573(1,062)571,854

87,39290,54927,884
2,761
38,70369,34928,2742,367
39,45970,101

76,225
326
6,217
4,596
5,935
(177)
93,123249,865
792,336

79,071
693
6,261
4,753
7,117
(163)
97,732
258,383
830,238NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2024

Prior Consolidated Fiscal Year
(March 31, 2024)
LIABILITIESCurrent liabilities
Notes and accounts payable
Short-term loans
Current portion of long-term loans
Commercial paper
Current portion of bonds
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors
OtherTotal current liabilities
Long-term liabilities
Bonds
Long-term loans
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Provision for directors’ stock benefit
Other
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets(Millions of yen)First Quarter, Current
Consolidated Fiscal Year
(June 30, 2024)156,352
50,731
6,946
37,00010,000
5,195
7,569
251
28,628302,675

166,026
60,561
5,050
37,00010,000
4,150
4,086
125
31,460318,462

20,00027,533
12,492
13,567
12,34560
2,345
88,345391,021

20,00034,93812,875
14,104
12,543133
2,379
96,975415,437

9,699
9,348
303,328(9,543)
312,832

9,699
9,348
299,230(5,954)
312,323

33,763
119
44,846
2,503
81,232
7,250
401,315
792,336

35,250172
57,315
1,885
94,623
7,853
414,800
830,238NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2024

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)Three-month periods ended June 30, 2024 and 2023

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
OtherTotal non-operating expensesOrdinary income
Extraordinary gains
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy income
Other
Total extraordinary gains
Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Loss on sales of investment securities
Loss on valuation of investments securities
Loss on discontinued operations
Total extraordinary losses
Income before income taxes
Income taxes
Profit for the period
Profit attributable to non-controlling interests
Profit attributable to owners of the parent(Millions of yen)Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)

224,062
185,355
38,70731,751
6,955

239,201
193,41345,78835,053
10,734

49
689
60
79
450
127
1,456

208
720
82
181
30
93
1,316

961
112
1,074
7,338

908
193
1,101
10,949

38
129
228
47
444

32－－
9
42

0
451
21
864
31
1,369
6,412
1,870
4,541
174
4,367

10
24－－
182
217
10,774
3,174
7,600
185
7,415

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2024

(Quarterly Consolidated Statements of Comprehensive Income)Three-month periods ended June 30, 2024 and 2023

Profit for the period
Other comprehensive income
Net unrealized holding gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive gain of affiliates
accounted for by the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Non-controlling interests(Millions of yen)Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)

4,541

7,600

5,331
303
4,216
163

1,488
53
12,559
(617)

309

326

10,324
14,866

13,80921,40914,446420

20,806602

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2024

(3) Quarterly Consolidated Statements of Cash Flows
Three-month periods ended June 30, 2024 and 2023

Operating activities
Income before income taxes
Depreciation and amortization other than amortization ofgoodwill
Amortization of goodwill
Subsidy income
Share of gain of entities accounted for using equity
methodLoss on discontinued operations
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Exchange gain, net
Gain on sales of investment securities, investments incapital, shares of subsidiaries and affiliates, andinvestments in capital of subsidiaries and affiliates, net
Loss on valuation of investment securities, investments incapital, shares of subsidiaries and affiliates, andinvestments in capital of subsidiaries and affiliates, net
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
Increase in notes and accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible fixed assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of investments in capital
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Increase in short-term loans receivable included in othercurrent assets
Decrease (increase) in time deposits, net
OtherNet cash used in investing activities(Millions of yen)Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)

6,412

10,774

3,306

3,793

638
(228)

677
－(79)

(181)

31140
169(738)
961
(576)

182
(728)
(837)
(929)
908
(1,393)

(108)

－864

－

1,364
11,534
2,412(5,902)
20,203836(1,116)228(4,256)
15,894(3,789)(5,366)
4,565(6,463)
1,213
1,044
(984)
－
(4,346)(3,074)(2,159)43(1,398)
(251)
214
－

(3,680)
60
(392)
(76)
－
(9)

(244)

－

(303)

(117)

104
(7)
(4,002)(2,791)(1,194)(8,202)

NAGASE & CO., LTD. (8012)
Consolidated Financial Statements (Summary) for the First Quarter Ended June 30, 2024

(Millions of yen)

Financing activities(Decrease) increase in short-term loans, net
Increase in commercial paper, net
Proceeds from long-term loans
Repayments of long-term loans
Purchase of treasury stock
Cash dividends paid
OtherNet cash (used in) provided by financing activities
Effects of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the period

Three-month period ended
June 30, 2023
(April 1, 2023 - June 30, 2023)

Three-month period ended
June 30, 2024
(April 1, 2024 - June 30, 2024)(10,495)
5,000
－
(8)
(3,290)(4,696)(145)(13,636)
3,372
1,628
40,331
41,960

6,455
－
7,000
(1,910)(3,361)(4,562)
(276)
3,344
4,043
(3,888)59,18555,297