Interim report
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Consolidated Financial Statements for the Three Months Ended June 30, 2026 <Under Japanese GAAP> August 4, 2026 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: Natsuki Imamura, Executive Officer, General Manager, Corporate Management Department TEL: + 81-3-3665-3103 Start of distribution of dividends (scheduled): - Supplementary documents of financial results: Yes Holding of financial results briefing: Yes (for analysts and institutional investors) ( Note: Amounts have been rounded down to the nearest million yen.) 1. Consolidated Results for the Three Months Ended June 30, 2026 (April 1, 2026 to June 30, 2026) (1) Consolidated Operating Results (% = year-on-year change) Net sales Gross profit Operating income Ordinary income Profit attributable to owners of the parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 279,718 17.9 55,154 24.4 17,008 65.9 18,054 69.3 14,655 95.2 June 30, 2025 237,314 -0.8 44,331 1.3 10,249 -4.5 10,662 -2.6 7,507 1.2 (Notes) 1. Comprehensive income For the three months ended June 30, 2026: ¥27,685 million (−%) For the three months ended June 30, 2025: ¥1,768 million (-91.7%) Earnings per share Earnings per share (diluted) Three months ended Yen Yen June 30, 2026 35.93 − June 30, 2025 17.40 − (Notes) 2. The Company enacted a four -for-one stock split of its common stock with an effective date of April 1, 2026. “Earnings per share” is calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year. (2) Consolidated Financial Position Total assets Net assets Shareholders’ equity ratio Net assets per share As of Millions of yen Millions of yen % Yen June 30, 2026 942,118 456,064 47.4 1,095.74 March 31, 2026 871,526 434,025 48.8 1,043.19 (Reference) Equity capital As of June 30, 2026: ¥446,877 million As of March 31, 2026: ¥ 425,446 million (Note) The Company enacted a four -for-one stock split of its common stock with an effective date of April 1, 2026. “ Net assets per share” is calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year. 2. Dividends Annual Dividends per Share 1Q 2Q 3Q Fiscal year end Annual For the year ended (or ending) Yen Yen Yen Yen Yen March 2026 − 45.00 − 55.00 100.00 March 2027 − March 2027 (forecast) 13.00 − 14.00 27.00 (Notes) 1. Revisions to the latest dividends forecast: No 2. Although the Company enacted a four-for-one stock split of its common stock with an effective date of April 1, 2026, “FYE March 2026” represents the actual dividend payments before the stock split.
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3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027) (% = year-on-year change) Net sales Gross profit Operating income Ordinary income Profit attributable to owners of the parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full fiscal year 1,000,000 2.8 198,000 5.5 45,000 0.6 45,000 2.1 34,500 4.2 84.59 (Note) Revisions to the latest consolidated earnings forecast: No * Notes (1) Significant changes in major subsidiaries during the period: Yes New: − (Company name: − ) Excluded: 1 (Company name: Fukui Yamada Chemical Co., Ltd. ) (2) Application of special accounting methods to the preparation of quarterly financial statements: Yes (Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (4) Notes Related to Quarterly Consolidated Financial Statements (Special Accounting Treatment Applied in Prepar ing Quarterly Consolidated Financial Statements), on P.8 of this document. (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections i. Changes in accordance with revisions to accounting and other standards: No ii. Changes in items other than (i) above: No iii. Changes in accounting estimates: No iv. 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, 2026 439,633,140 shares March 31, 2026 439,633,140 shares ii. Number of treasury stock as of the fiscal period end June 30, 2026 31,800,831 shares March 31, 2026 31,800,608 shares iii. Average number of shares during the period June 30, 2026 407,832,365 shares June 30, 2025 431,343,208 shares (Notes) 1. The Company enacted a four -for-one stock split of its common stock with an effective date of April 1, 2026. “Number of shares issued and outstanding as of the fiscal period end (including treasury stock)”, “Number of treasury stock as of the fiscal period end” and “Average number of shares during the period” are calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year. 2. The number of treasury shares as of the fiscal period end includes Company shares held by the Stock-Granting Trust for Directors (2,920,000 shares as of June 30, 2026 and 2,920,000 shares as of March 31, 2026 ). Treasury shares deducted from the calculation of the average number of shares during the period include Company shares held by the Stock-Granting Trust for Directors (2,920,000 shares as of June 30, 2026 and 1,129,600 shares as of June 30, 2025). *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. Due to the impact of the situation in the Middle East, we plan to reassess our full -year earnings forecast at the time of the second - quarter earnings, after closely assessing future market trends and demand. *This document is a full English translation of the Japanese summary of financial results for the current quarter.
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Attachments 1． Overview of Operating Results, etc. 2 2． Quarterly Consolidated Financial Statements and Notes 3 (1) Quarterly Consolidated Balance Sheets 3 (2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 5 Quarterly Consolidated Statements of Income 5 Three-month periods ended June 30, 2026 and 2025 Quarterly Consolidated Statements of Comprehensive Income 6 Three-month periods ended June 30, 2026 and 2025 (3) Quarterly Consolidated Statements of Cash Flows 7 (4) Notes Related to Quarterly Consolidated Financial Statements 8 (Assumption for Going Concern) 8 (Significant Fluctuations in Shareholders’ Equity) 8 (Special Accounting Treatment Applied in Preparing the Quarterly Consolidated Financial Statements) 8 (Segment Information, etc.) 9 (Significant Subsequent Events) 11 NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 1 －
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1. O verview of O perating Results, etc. Please refer to “FY2026 First Quarter Financial Briefing” disclosed on TDnet. NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 2 －
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2. Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 ASSETS Current assets Cash and time deposits 45,599 41,058 Notes and accounts receivable and contract assets 321,435 354,126 Merchandise and finished goods 157,496 171,746 Work in process 3,282 3,073 Raw materials and supplies 16,781 20,510 Other 22,660 26,698 Less allowance for doubtful accounts (936) (1,051) Total current assets 566,319 616,162 Non-current assets Property, plant and equipment 123,973 132,163 Intangible fixed assets Goodwill 28,384 27,970 Technology-based assets 3,060 2,991 Other 37,244 36,860 Total intangible fixed assets 68,688 67,823 Investments and other assets Investments in securities 87,595 99,626 Long-term loans receivable 1,329 1,348 Retirement benefit asset 9,628 9,658 Deferred tax assets 6,029 7,482 Other 9,056 8,847 Less allowance for doubtful accounts (1,093) (994) Total investments and other assets 112,545 125,968 Total non-current assets 305,207 325,955 Total assets 871,526 942,118 NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 3 －
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 LIABILITIES Current liabilities Notes and accounts payable 159,845 175,366 Short-term loans 20,175 24,092 Current portion of long-term loans 15,000 15,000 Commercial paper 47,000 68,000 Accrued income taxes 6,934 6,243 Accrued bonuses for employees 9,533 4,937 Accrued bonuses for directors 404 182 Provision for directors’ stock benefit 49 53 Provision for loss on business withdrawal 1,306 1,344 Other 36,757 46,357 Total current liabilities 297,008 341,577 Long-term liabilities Bonds 40,000 40,000 Long-term loans 50,000 50,000 Lease liabilities 16,077 16,631 Deferred tax liabilities 19,600 22,753 Retirement benefit liability 10,981 11,198 Provision for directors’ stock benefit 315 391 Other 3,517 3,502 Total long-term liabilities 140,493 144,475 Total liabilities 437,501 486,053 NET ASSETS Shareholders’ equity Common stock 9,699 9,699 Capital surplus 9,336 9,336 Retained earnings 321,076 330,092 Less treasury stock, at cost (26,233) (26,233) Total shareholders’ equity 313,878 322,894 Accumulated other comprehensive income Net unrealized holding gains on securities 40,477 48,323 Deferred gain on hedges (123) (251) Translation adjustments 68,119 73,529 Remeasurements of defined benefit plans 3,094 2,382 Total accumulated other comprehensive income 111,567 123,982 Non-controlling interests 8,578 9,187 Total net assets 434,025 456,064 Total liabilities and net assets 871,526 942,118 NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 4 －
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(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Quarterly Consolidated Statements of Income) Three-month ended June 30, 2026 and 2025 (Millions of yen) Three-month period ended June 30, 2025 (April 1, 2025 - June 30, 2025) Three-month period ended June 30, 2026 (April 1, 2026 - June 30, 2026) Net sales 237,314 279,718 Cost of sales 192,982 224,564 Gross profit 44,331 55,154 Selling, general and administrative expenses 34,081 38,145 Operating income 10,249 17,008 Non-operating income Interest income 193 183 Dividend income 850 1,007 Rent income 35 21 Equity in earnings of affiliates 216 281 Foreign exchange gains 21 243 Other 164 237 Total non-operating income 1,481 1,974 Non-operating expenses Interest expenses 740 861 Other 327 66 Total non-operating expenses 1,067 928 Ordinary income 10,662 18,054 Extraordinary gains Gain on sales of non-current assets 11 0 Gain on sales of investment securities 106 0 Gain on sales of investments in capital － 66 Gain on sales of shares of subsidiaries and affiliates － 20 Other 0 － Total extraordinary gains 117 87 Extraordinary losses Loss on sales of non-current assets 8 0 Loss on disposal of non-current assets 33 11 Loss on sales of investment securities 0 － Loss on valuation of investment securities 157 － Loss on business withdrawal 70 22 Total extraordinary losses 269 35 Income before income taxes 10,511 18,107 Income taxes 2,800 3,073 Profit for the period 7,710 15,033 Profit attributable to non-controlling interests 203 378 Profit attributable to owners of the parent 7,507 14,655 NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 5 －
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(Quarterly Consolidated Statements of Comprehensive Income) Three-month ended June 30, 2026 and 2025 (Millions of yen) Three-month period ended June 30, 2025 (April 1, 2025 - June 30, 2025) Three-month period ended June 30, 2026 (April 1, 2026 - June 30, 2026) Profit for the period 7,710 15,033 Other comprehensive income Net unrealized holding gain on securities 1,078 7,846 Deferred gain (loss) on hedges 38 (127) Translation adjustments (7,057) 5,538 Remeasurements of defined benefit plans 148 (712) Share of other comprehensive income of affiliates accounted for by the equity method (149) 106 Total other comprehensive (loss) income (5,941) 12,651 Comprehensive income 1,768 27,685 Comprehensive income attributable to: Shareholders of the parent 1,615 27,076 Non-controlling interests 152 608 NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 6 －
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(3) Quarterly Consolidated Statements of Cash Flows Three-month ended June 30, 2026 and 2025 (Millions of yen) Three-month period ended June 30, 2025 (April 1, 2025 - June 30, 2025) Three-month period ended June 30, 2026 (April 1, 2026 - June 30, 2026) Operating activities Income before income taxes 10,511 18,107 Depreciation and amortization other than amortization of goodwill 3,661 4,616 Amortization of goodwill 655 777 Share of gain of entities accounted for using equity method (216) (281) Loss on business withdrawal 70 22 Increase in retirement benefit liability 128 26 Decrease (increase) in retirement benefit asset 36 (873) Interest and dividend income (1,043) (1,190) Interest expenses 740 861 Exchange loss (gain), net 1,293 (1,655) Gain on sales of investment securities, net (105) (0) Loss on evaluation of investment securities 157 － Increase in notes and accounts receivable (700) (28,639) Increase in inventories (3,758) (15,028) Increase in notes and accounts payable 827 13,061 Other (8,423) (5,415) Subtotal 3,834 (15,609) Interest and dividends received 1,086 1,287 Interest paid (899) (1,006) Income taxes paid (3,317) (5,932) Net cash provided by (used in) operating activities 703 (21,260) Investing activities Purchases of property, plant and equipment (5,363) (3,436) Proceeds from sales of property, plant and equipment 146 1 Purchases of intangible fixed assets (972) (334) Purchases of investments in securities (609) (924) Proceeds from sales of investments in securities 155 0 Proceeds from sales of investments in capital － 174 Purchases of shares of subsidiaries resulting in change in scope of consolidation (12,519) － Decrease in short -term loans receivable included in other current assets 323 1,446 Increase in time deposits, net － (795) Other (101) (267) Net cash used in investing activities (18,941) (4,136) Financing activities Increase in short-term loans, net 12,849 3,411 Increase in commercial paper, net 3,500 21,000 Repayments of long-term loans (12) － Purchase of treasury stock (4,627) (0) Cash dividends paid (4,893) (5,647) Other (677) (644) Net cash provided by financing activities 6,138 18,118 Effects of exchange rate changes on cash and cash equivalents (4,373) 1,929 Net decrease in cash and cash equivalents (16,471) (5,350) Cash and cash equivalents at beginning of the year 65,903 45,390 Cash and cash equivalents at end of the period 49,431 40,040 NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 7 －
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(4) Notes Related to Quarterly Consolidated Financial Statements (Assumption for Going Concern) No matters to report. (Significant Fluctuations in Shareholders’ Equity) No matters to report. (Special Accounting Treatment Applied in Preparing the Quarterly Consolidated Financial Statements) (Calculation of Tax Expenses) Tax expenses are calculated by rationally estimating an effective tax rate after applying tax effect accounting to profit bef ore income taxes for the fiscal year including the current first quarter, and multiplying profit before income taxes for the first quarter by the estimated effective tax rate. In the event that the calculated tax expenses using this estimated effective tax rate lead to significantly unreasonable results, this shall be calculated by multiplying the statutory effective tax rate after adjusting significant non-temporary differences by the profit before income taxes. Deferred income taxes are included in income tax. NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 8 －
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(Segment Information, etc.) a. Segment Information I Three-month period ended June 30, 2025 (consolidated) 1. Information related to net sales and income (loss) by reportable segment (Millions of yen) Reportable Segments Others (Note) 1 Total Corporate (Note) 2 Adjustments (Note) 3 Consolidated (Note) 4 Materials Electronics Life Sciences Total Net sales Sales to customers 118,908 41,527 76,851 237,287 26 237,314 － － 237,314 Intersegment sales/transfers 235 499 224 958 1,597 2,555 － (2,555) － Total 119,143 42,026 77,075 238,245 1,623 239,869 － (2,555) 237,314 Segment income (loss) 5,020 3,075 2,128 10,225 96 10,321 (304) 232 10,249 (Notes) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments and includes information processing services and professional services. 2. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others. 3. Adjustments are eliminations of intersegment transactions. 4. The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating income presented in the consolidated financial statements. II Three-month period ended June 30, 2026 (consolidated) 1. Information related to net sales and income (loss) by reportable segment (Millions of yen) Reportable Segments Others (Note) 1 Total Corporate (Note) 2 Adjustments (Note) 3 Consolidated (Note) 4 Materials Electronics Life Sciences Total Net sales Sales to customers 140,333 49,133 90,208 279,675 42 279,718 － － 279,718 Intersegment sales/transfers 215 460 234 911 1,183 2,094 － (2,094) － Total 140,549 49,594 90,443 280,586 1,226 281,813 － (2,094) 279,718 Segment income (loss) 8,193 4,931 2,907 16,033 124 16,157 871 (21) 17,008 (Notes) 1. “Others” is a business segment consisting of businesses not included in Reportable Segments and includes information processing services and professional services. 2. Corporate segment income (loss) represents expenses not allocated to Reportable Segments or Others. 3. Adjustments are eliminations of intersegment transactions. 4. The sum of segment income (loss) Total, Corporate, and Adjustments is equivalent to operating income presented in the consolidated financial statements. NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 9 －
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2. Matters Related to Changes in Reportable Segment （Change in Business Segments） As of the first quarter of the current consolidated fiscal year, the Company consolidated the previous five -segment structure into three segments: Materials, Electronics, and Life Sciences. The new structure will accelerate delegation of authority to each segment head and speed up decision -making. We will continue to build on the stable earnings base of the Materials business while further expanding Electronics and Life Sciences. Segment information for the first quarter of the previous fiscal year reflects this reclassification. The following describes the major products and services handled by each reportable segment. The Materials segment is engaged in the sales of paints/inks, pigments/additives, resins, raw resin materials/resin molded products, plastic compounds, masterbatch, urethane foam, organic synthesis, surfactants, electronics chemicals, information printing-related materials, communications equipment, water treatment, metal processing, plastics/film processing, stationery, functional film/sheet, hygiene materials, home appliance/OA equipment, electronics, packaging, daily commodities, household goods, construction materials, and the overall mobility industry and related industries, as principal products: resin raw materials, resins, special epoxy, engineering plastics, general -purpose plastics, packaging materials, and other plastics - related products and services, solvents, pigments and dispersions, dyestuffs, functional coatings, colorants, various additives, urethane raw materials, release agents, conductive materials, functional films, pressure-sensitive adhesives, adhesives, hygiene materials, organic chemicals, inorganic chemicals, high -purity chemicals, silicone pro ducts, silicone raw materials, bio - products, special acrylic rubber, polymer filters, enzymes, light -weight components, decorative parts, HMI components, CASE-related products (xEV-related components, heat management components, battery materials, various sensors, LiDAR- related components, self -driving-related products), Mixing Concierge ™, total coordination services for dispersion and processing, raw material search services for CASE applications, Chemical AI Joint Logistics Matching Service, original VR safety goggles for the chemical industry, water treatment equipment, MOF, CO₂ Capture System, and other products and services. The Electronics segment is engaged in the sales of semiconductor, electronic component, AR/VR, environmental energy, heavy electrical and light electrical, HDD, automotive and aircraft, display, touch panel, housing, lighting, renewable energy, large- scale commercial facility, storage battery and energy-related industries, offering as principal products formulated epoxy resins and related products, precision abrasives, display optical materials, touch panel components, functional coatings, conductive and insulating materials, adhesives and encapsulant materials, high heat-resistant films, optical lenses, high-frequency devices, low dielectric materials, sensing modules, semiconductor and electronic device-related equipment, battery evaluation and consulting services, battery pack prototyping and development, photolithography materials for flat panel displays and semiconductors, and other products and services. The Life Sciences segment is engaged in the sales of pharmaceutical materials (active pharmaceutical ingredients, additives, intermediates, and other raw materials), in -vitro diagnostics reagents, raw materials for cosmetics and household products (active ingredients, additives, emulsifiers, and fragrances), food ingredients (nutrition ingredients, functional carbohydrates such as TREHA® , glycosides, and processing aids such as enzymes), nutrient premixes (OEM, ODM), agricultural, fisheries, and livestock-related materials, endotoxin removal services, and other products and services for the pharmaceutical, food and beverage, cosmetics, agricultural, toiletries, and health care, and other industries. In addition, this segment sells cosmetics, health foods, and beauty foods directly to consumers. (Change in Measurement Method for Segment Income (Loss)) As of the first quarter of the current consolidated fiscal year, we changed the method of allocating corporate expenses to more appropriately evaluate the performance of reportable segments. Segment information for the first quarter of the previous consolidated fiscal year is based on the allocation method after the change. NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 10 －
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(Significant Subsequent Events) (Repurchase of Own Shares) At a meeting of the Board of Directors held on August 4, 2026, the Company resolved, in accordance with Article 156 of the Companies Act, as applied pursuant to Article 165, Paragraph 3 of the Companies Act, to repurchase its own shares as follows. 1. Reason for the Repurchase of Own Shares The Company positions the enhancement of shareholder value as one of its key management priorities. Under Medium-Term Management Plan “Walk the Talk 2028,” the Company has established a shareholder return policy of delivering continuous dividend increases and flexibly repurchasing its own shares. Based on the above shareholder return policy, the Company will repurchase its own shares to enhance corporate and shareholder value by further improving capital efficiency, after comprehensively considering the current state of its stock price, financial position and investment capacity for growth. 2. Details of the share to be repurchased (1) Class of shares to be repurchased C ommon shares (2) Total number of shares to be repurchased Up to 3,7 00,000 shares (Equivalent to 0.90% of outstanding shares, excluding treasury shares ) (3) Total repurchase amount Up to 3 billion yen (4) Repurchase period From August 5, 2026, to September 30, 2026 (5) Repurchase method Market purchases NAGASE & CO., LTD. (8012) Consolidated Financial Statements for the Three Months Ended June 30, 2026 － 11 －