Nagase : Consolidated Financial Statements for the Three Months Ended June 30, 2025

August 5, 2025

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

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 financial results: Yes Holding of financial results briefing: Yes

(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Three Months Ended June 30, 2025 (April 1, 2025 to June 30, 2025)

   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, 2025	237,314	-0.8	44,331	0.4	10,249	-4.5	10,662	-2.6	7,507	1.2
      June 30, 2024	239,201	6.8	44,153		10,734	54.3	10,949	49.2	7,415	69.8

      (Notes) 1. Comprehensive income For the three months ended June 30, 2025: ¥1,768 million (-91.7%)

      For the three months ended June 30, 2024: ¥21,409 million (44.0%)

2. Due to a change in accounting policy, gross profit for the three months ended June 30, 2024, has been restated retrospectively. Accordingly, the year-on-year percentage change for the first quarter is not presented.

1. Consolidated Financial Position

(Reference) Equity capital As of June 30, 2025: ¥391,156 million As of March 31, 2025: ¥399,052 million

1. Dividends

   	Annual Dividends per Share
   	1Q	2Q	3Q	Fiscal year end	Annual
   For the year ended (or ending)	Yen	Yen	Yen	Yen	Yen
   March 2025		45.00		45.00	90.00
   March 2026	
   March 2026 (forecast)		45.00		50.00	95.00

   (Note) Revisions to the latest dividends forecast: No

2. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(% = year-on-year change)

(Notes) 1. Revisions to the latest consolidated earnings forecast: No

2. Due to a change in accounting policy, the year-on-year percentage change in gross profit is calculated using the retrospectively adjusted figures for the corresponding period of the previous fiscal year.

* Notes

1. Significant changes in the scope of consolidation during the period: Yes

   New: 7 (Company name: APLIQUIMICA APLICACOES QUIMICAS ESPECIAIS LTDA

   SACHEM Japan Holding GK SACHEM Japan GK

   SN Tech Corporation SACHEM Wuxi Co., Ltd. SACHEM Korea Ltd.

   NAGASE WAHLEE INDIA PRIVATE LIMITED)

   Excluded: 1 (Company name: Nagase Abrasive Materials 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 the Preparation of Quarterly Consolidated Financial Statements), on P.10 of this document.

3. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections

   1. Changes in accordance with revisions to accounting and other standards: No

   2. Changes in items other than (i) above: Yes

   3. Changes in accounting estimates: No

   4. Restatement of prior period financial statements after error corrections: No

      (Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Notes, (4) Notes Related to Quarterly Consolidated Financial Statements (Changes in Accounting Policy), on P.10 of this document.

4. Number of shares issued and outstanding (common stock)

   1. Number of shares issued and outstanding as of the fiscal period end (including treasury stock)

      June 30, 2025

      109,908,285 shares

      March 31, 2025

      114,908,285 shares

   2. Number of treasury stock as of the fiscal period end

      June 30, 2025

      3,149,976 shares

      March 31, 2025

      6,443,222 shares

   3. Average number of shares during the period

(Note) The number of treasury shares as of the fiscal period end includes Company shares held by the Stock-Granting Trust for Directors (282,400 shares as of June 30, 2025 and 282,400 shares as of March 31, 2025). Treasury stock deducted from the calculation of the average number of shares during the period includes Company shares held by the Stock-Granting Trust for Directors (282,400 shares for the period ended June 30, 2025 and 288,500 shares for the period ended June 30, 2024).

*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.

For matters related to earnings forecasts, please refer to 1. Qualitative Information, (3) Qualitative Information Related to Consolidated Earnings Forecasts, on P.4 of this document.

NAGASE & CO., LTD. (8012)

Consolidated Financial Statements for the Three Months Ended June 30, 2025

1. Qualitative Information 2

   1. Review of Business Performance 2

   2. Review of Financial Position 4

   3. Qualitative Information Related to Consolidated Earnings Forecasts 4

2. Quarterly Consolidated Financial Statements and Notes 5

   1. Quarterly Consolidated Balance Sheets 5

   2. Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 7

      Quarterly Consolidated Statements of Income

      Three-month periods ended June 30, 2025 and 2024 7

      Quarterly Consolidated Statements of Comprehensive Income

      Three-month periods ended June 30, 2025 and 2024 8

   3. Quarterly Consolidated Statements of Cash Flows 9

   4. Notes Related to Quarterly Consolidated Financial Statements 10

(Assumption for Going Concern) 10

(Changes in Accounting Policy) 10

(Significant Fluctuations in Shareholders’ Equity) 10

(Special Accounting Treatment Applied in the Preparation of Quarterly Consolidated Financial

Statements) 10

(Segment Information, etc.) 11

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NAGASE & CO., LTD. (8012)

Consolidated Financial Statements for the Three Months Ended June 30, 2025

1. Qualitative Information
   1. Review of Business Performance
      1. General Summary of Results

         Earnings for three-month period ended June 30, 2025 are as follows.

         (Millions of yen)

         	Three-month period ended June 30, 2024	Three-month period ended June 30, 2025	Change	Change (%)
         Net sales	239,201	237,314	(1,887)	(0.8)
         Gross profit	44,153	44,331	177	0.4
         Operating income	10,734	10,249	(485)	(4.5)
         Ordinary income	10,949	10,662	(287)	(2.6)
         Profit before income taxes	10,774	10,511	(263)	(2.4)
         Profit attributable to owners of the parent	7,415	7,507	91	1.2

         ・Although net sales for the first quarter of the current fiscal year decreased due in part to the impact of yen appreciation on foreign exchange, gross profit margin improved as a result of improved profitability at certain manufacturing subsidiaries and other factors, resulting in an overall increase in gross profit for the period.

         ・Operating income decreased due to an increase in selling, general and administrative expenses despite an increase in gross profit. For details, see b. Segment Summary.

         ・Profit attributable to owners of the parent increased by ¥0.09 billion to ¥7.5 billion, mainly due to a decrease in tax expenses despite a decrease in operating profit.

      2. Segment Summary

The following describes performance by segment.

The comparative analysis of gross profit in the Life & Healthcare segment reflects the retrospective application of a change in accounting policy for the first quarter of the previous fiscal year.

*For details, please refer to (Changes in Accounting Policy) on P.10 of this document.

(Millions of yen)

Gross profit decreased mainly due to the following factors.

・Sales of coating materials decreased due to lower demand in automotive and architectural applications

・Sales increased for raw materials for semiconductor materials Operating income decreased due to a decrease in gross profit.

(Millions of yen)

Gross profit remained flat mainly due to the following factors.

・Although resin sales declined due to lower volume in the electrical and electronics industry, including office automation equipment, profit margin improved as a result of planned product mix optimization

・Sales of industrial hoses and civil engineering pipes increased at Totaku Industries, Inc. Operating income increased due to a decrease in general and administrative expenses.

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