Financial Highlights

NAGASE&CO.,LTD.
May 10, 2022

Copyright © 2022 NAGASE & CO., LTD.

I D E N T I F Y >>> D E V E L O P >>> E X PA ND

FYE March 2022

Contents■ Consolidated Statements IncomeP3■ Gross Profit by Region

P4■ Gross Profit by Business & Segment

P5■ Operating Income by Business & Segment

P6■ Segment Operating Income Overview

P7～P11■ State of Major Manufacturing Subsidiaries P12■ Consolidated Balance Sheets

P13■ Consolidated Cash FlowsP14■ FYE March 2023 Earnings Projection P15～P16■ Shareholder Returns

Copyright © 2022 NAGASE & CO., LTD.

P17

Consolidated Statements Income▶ Gross profit
・ Higher profit in all segments, with all stages of profit below gross profit reaching record highs
・ In particular, the automobile, resins and electronics, the Prinova Group's nutrition-related business performed well
▶ Operating income
・ Income greatly increased year-on-year with increases in gross profit; the economic impact of the COVID-19 had been significant
in the previous fiscal year

▶ Net income
・ Significantly higher profits with strong business performance and gain on sales of cross-shareholdings, despite recording impairment
losses that pressured profits downward
100 millions of yen

21/03

22/03

ChangeVs.PY

Forecast（announced Feb 9）

Achievement

Sales

6,252

7,805+ 1,553

125%

ーー

Gross profit

1,146

1,394+ 248

122%

1,380

101%

<GP ratio>

18.3%

17.9%

(0.5pt)－ー－

SG&A expenses

926

1,042+ 115

112%

1,030－

219

352

+ 133

161%

350

101%

228

364

+ 136

160%

365

100%

188

259

+ 71

138%

250

104%

@ 106.1@ 112.4@ 6.3 Weak yen@111.9@ 15.7@ 17.5@ 1.8 Weak yen@17.4

OperatingincomeOrdinaryincome
Profit Attributableto owners of theparent
US$ Exchange rate
(period average)
RMB Exchange rate
(period average)※ Offset to sales and cost of sales from application of revenue recognition standards: March. 2021, -¥204.9 billion; March. 2022, -¥244.8 billion※ Impact from foreign exchange: Gross profit, +¥3,200 million; Operating income, +¥900 million
Copyright © 2022 NAGASE & CO., LTD.

3

Gross Profit by Region▶ Higher profit both domestic and overseas▶ Domestic : In particular, the automobile-related business and electronics-related business for mobile devices/displays performed well
▶ Overseas : The resins business, mainly for office equipment, appliances, and video game devices and focused on Greater China andASEAN, and the nutrition-related business in Europe and the Americas performed wellDomestic & Overseas Gross profit(100 millions of yen)
Total 1,394

1,400

Overseas
681
1,200

1,000

800

100%
90%

Total 1,146

70%

Overseasgross profit
ratio
48.8%

60%

Total 681

700

Total 511
Europe64

Americas
175
300

Domestic
634

Domestic
713

30%

ASEAN
127

200

10010%

00%
21/03

ASEAN
9420%

200

22/03

Americas238

400

40%

400

Other
10500

50%

600

Other
11Europe
84600

80%

Overseas
511

Overseasgross profit
ratio
44.6%

Overseas gross profit By Region(100 millions of yen)GreaterChina
166

GreaterChina
218

021/03

22/03※ From FYE March 2022, the usual overseas net sales per-destination region have been replaced by per-region information for grossprofit, aggregated for each location of consolidated※ Domestic figures under Domestic & Overseas Gross Profit include inter-regional adjustments
Copyright © 2022 NAGASE & CO., LTD.

4

Gross Profit by Business & Segment▶ Higher profits in all segments, with a full year gross profits reaching record high▶ Advanced Materials & Processing : Profitability improved in the resins business due to rising market conditions▶ Life & Healthcare : Profits increased due to strong performance in the Prinova Group's nutrition-related business and strong salesof cosmetics-related materials※ Comparison information for segment values reflects impact from business segmentation changes implemented on April 1, 2021.

Change in Gross Profit By Segment (100 millions of yen)

Gross Profit By Business & Segment (100 millions of yen)

1,200

1,000

Total 1,394

Total 1,394

1,400

Total 1,146

Manufacturing
546

Total 1,146

Life &Healthcare
374

Manufacturing
475Life &Healthcare
447

Mobility 127

800
Mobility 89
600

400

Trading& Other670

Trading& Other
847

200

Electronics &Energy
255
Advanced
Materials& Processing
268
Functional
materials
1550Electronics &Energy
297

Advanced
Materials& Processing
323

History of Gross Profit(100 millions of yen)
400
300

345
260

353

341
299

277

353
308

200
Functional
materials
198

By Business

By Business

By Segment

By Segment

21/03

22/03

21/03

22/03

Copyright © 2022 NAGASE & CO., LTD.

22/03

21/03

1000１Q

２Q
21/03

３Q

４Q

22/03

5

Operating Income by Business & Segment▶ Operating income reached a record high with an increase in gross profit across all segments, despite a slowdown in the second half,
mainly due to the normalization of profitability related to resin sales and an increase in general and administrative expenses▶ Manufacturing business operating income reached record high, mainly due to strong Prinova Group performance▶ We continue to invest for sustainable growth in the future, such as DX-related areas

Operating Income by Business & Segment (100 millions of yen)

Change in Operating Income By Segment (100 millions of yen)

Total 352

420
Life &Healthcare
94

Total 352

350
Manufacturing
114

280
Total 219

Manufacturing87

140

Trading& Other
237
Trading& Other
131

0(70)

Life &Healthcare
65

Mobility 18

210

70

Total 219

By Business
21/03

By Business
22/03

Copyright © 2022 NAGASE & CO., LTD.

Electronics &Energy
84

Advanced
Materials& Processing
73
Functional
materials
47

Mobility 41

Electronics &Energy
102

21/03
Advanced
Materials& Processing
108

Functional
materials
78

History of Operating Income(100 millions of yen)

Corporate&Others(72)

By Segment
21/03

By Segment
22/03

97100

97

86

71

8071
58

5260
40

Corporate&Others
(68)

22/03

36

200
1Q

3Q

２Q
21/03

4Q

22/03

6Functional Materials Segment Operating Income Overview▶ Raw materials sales increased for coating and urethane raw materials as well as those related to industrial oil solutions and plastic
materials, driven by an increase in automotive production▶ Sales trended strong in areas like electronics chemicals for the electronics industry, such as for semiconductor-related products▶ Profits increased year-on-year; the economic impact of the COVID-19 had been significant in the previous fiscal year, primarily inthe automobile-related businessHistory of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
Total 78
Manufact
uring1175

2020

19
18

1860
15
Total 47
45

13

Manufact
uring 51310
Trading &Other
67

30
Trading &Other
42

108

5

1500
21/03

22/03

1Q

２Q
21/03

Copyright © 2022 NAGASE & CO., LTD.

3Q

4Q

22/03

7

Advanced material & Processing Segment Operating Income Overview▶ Resins sales, mainly in products to the office equipment, appliance, and video game device industry, performed well due to risingmarket conditions▶ Digital print processing materials sales continued to be sluggish due to impact from declining market from the second half ofthe previous fiscal year
▶ Profits increased significantly year-on-year thanks to strong sales in the resins business both domestically and overseas, as well as improvementin profitability from rising market conditions

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
Total 108

Manufact
uring 03231

1003080Total 73

24Manufact
uring 02060

40

Trading &Other
107

20

19

1715

14

Trading &Other72

2000
21/03

22/03

1Q

２Q
21/03

Copyright © 2022 NAGASE & CO., LTD.

3Q

4Q

22/03

8

Eｌectronics & Energy Segment Operating Income Overview▶ Sales increased for display-related materials and precision processing-related materials for semiconductors▶ Sales of formulated epoxy resins-related products increased, primarily for mobile devices and semiconductors▶ Establishing a structure for next-generation communications-related business, aiming for medium- to long-term growth despite upfront
development costs

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
Total 102

3029

100

Total 848060

20252424
23

20

Manufact
uring
39

40

25

Manufact
uring
35

16

Trading &Other
67

16

10

Trading &Other
45

00
21/03

22/03

1Q

２Q
21/03

Copyright © 2022 NAGASE & CO., LTD.

3Q

4Q

22/03

9

Mobility Segment Operating Income Overview▶ Sales increased in the resins business domestically and overseas, primarily in ASEAN▶ Sales increased in functional materials and functional components for interior and exterior fittings and electrification▶ Profits increased significantly year-on-year amid improved profitability stemming from a recovery in automotive production and risingmarket conditions

History of operating income （100 millions of yen）

Operating income by business（１００ millions of yen）
Total 41

1140

101010

9830

77620

Total 18

Trading &Other41432
10

Trading &Other180(1)
(2)

0
21/03

22/03

1Q

21/03
Copyright © 2022 NAGASE & CO., LTD.

3Q

２Q

4Q

22/03

10

Life & Healthcare Segment Operating Income Overview▶ Materials sales, manufacturing, and processing all trended strongly in the nutrition-related business, primarily focused on the Prinova Group▶ Sales increased related to food materials, primarily TREHA™, in cosmetics materials, primarily AA2G™, and related to pharmaceutical raw
materials and intermediates▶ Profits increased significantly year-on-year ; the economic impact of the COVID-19 had been significant in the previous fiscal year, primarily infood materials and cosmetics-related material

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
Total 94302780232221

Total 65
60

40

20
Manufact
uring
69

20

16

Manufact
uring
46

13

13

10

20
Trading &Other
19

Trading &Other
25

0
21/03

22/03

01Q

21/03
Copyright © 2022 NAGASE & CO., LTD.

3Q

２Q

4Q

22/03

11

State of Major Manufacturing Subsidiaries▶ Nagase ChemteX Corporation : Profits increased with strong sales related to formulated epoxy resins primarily for mobile devices andsemiconductors, as well as for products like photolithography materials for displays▶ Hayashibara Co., Ltd. : Profits increased with demand for the TREHA ™ food material and with recovery in demand for the AA2G ™
cosmetics material▶ Prinova Group : Profits increased with continued strong sales of nutrition materials thanks to U.S. economic recovery as well as withrecovery of manufacturing and processing

100 millions of yen

21/03
Sales
Nagase ChemteX
Corporation

Hayashibara Co.,Ltd.

Prinova Group

Copyright © 2022 NAGASE & CO., LTD.

22/03

ChangeVs.PY

259

289

30112%

Gross profit

80898110%

Operating income

32375117%

Sales

236

265

29112%

Gross profit

1001087107%

Operating income

43451104%

Goodwill amortization etc.

3030-100%

Operating income afteramortization burden

12141115%

Sales

866

1,209342140%

Gross profit

16321855134%

Operating income

476922147%

Goodwill amortization etc.

19201104%

Operating income after
amortization burden

2749

21177%

12Consolidated Balance Sheets▶ Current assets : Accounts receivable and inventories increased due to favorable performance (working capital increased)▶ Net assets : Shareholders’ equity increased due to the recording of profits for the fiscal year, despite payments of dividends, purchasesof treasury stock, and a decline in market value of investments in securities▶ NET D/E ratio : Increased to 0.33 with increase in short-term borrowings due to demand for funds from increased working capital

100 millions of yen

21/03
Total current assets

22/03

Change

4,017

5,142

1,125

492

542

50

2,425

2,898

473

972

1,575

602

2,388

2,254(134)

937

756

(181)

Total assets

6,405

7,397

991

Current Liab.

2,061

3,078

1,016

(Notes & accounts payable)
Non-current Liab.

1,199
960

1,490
767

290
(192)

Total Liab.

3,021

3,846

824

Shareholders' equity

2,847

2,988

140

449

454587108

203,384

3,550

166

(Cash & time deposits)(Notes & accounts receivable)(Inventories)
Total non-current assets(Investments in security)

Accum. other comprehensive income
Non-controlling interests
Total net assets
Working capital

2,198

2,983

Shareholders' equity ratio

51.5%

46.5%

0.23

0.33

NET D/E ratio

Copyright © 2022 NAGASE & CO., LTD.

Details

Short-term loans/CP+570,
Current portion of bonds+100

Translation adjustments+126,
Net unrealized holding loss on securities(118)13Consolidated Cash Flows▶ Operating CF : Net cash used of ¥17.7 billion as working capital increased due to strong business performance▶ Investing CF : Net cash used of ¥7.6 billion due to purchases of property, plant and equipment and the acquisition of stock of a
subsidiary related to a corporate acquisition; offset in part by proceeds from sales of investments in securities▶ Financing CF : Net cash provided of ¥27.2 billion, mainly due to a net increase in short-term loans in connection with an increase inworking capital, offset in part by dividends and purchases of treasury stock
100 millions of yen

２1/03

22/03

Operating CF

203

(177)

Investing CF

26(76)

230

(254)

(258)

272

929

Net change in cash and cash equivalents

(19)

+ 47

Depreciation and amortization oftangible and intangible assets

133

136

Fixed asset investment

(128)

(169)

Change in working capital

(100)

(631)

Free CF
Financing CF
Effects of exchange rate changes on cash and cash
equivalents

Copyright © 2022 NAGASE & CO., LTD.

14

FYE March 2023 Earnings Projection▶ We expect the impact of COVID-19 on economic activities to be limited in response to the easing of regulations in various countries▶ We expect the impact of the Russia-Ukraine situation on soaring prices for crude oil and related chemical markets, as well as supply chain
disruptions, to continue to a certain extent▶ The outlook is uncertain due to many factors (impact of high global prices on consumer spending and corporate earnings, sharp
fluctuations in interest rates and exchange rates, etc.); however, at present, we expect to see strong performance across mostbusinesses related to the NAGASE Group (expecting record high profits for a second consecutive fiscal year)
100 millions of yen

22/03
Actual23/03
Forecast

ChangeVs.PY

Gross profit

1,394

1,590

195114%

SG&A expenses

1,042

1,210

167116%

Operating income

35238027108%

Ordinary income

364

390

25107%

Profit attributable toowners of the parent

259

285

25110%

US$ Exchange rate(period average)@ 112.4@ 120.0

RMB Exchange rate(period average)@ 17.5@ 18.5

Copyright © 2022 NAGASE & CO., LTD.

15

FYE March 2023 Earnings Projection (By segment)▶ We expect the resins business, centered on Advanced Materials & Processing and Mobility, to experience strong performance based on
our projections of increased demand and ongoing high market condition levels▶ We expect the semiconductor-related products business, centered on Functional Materials and Electronics, to experience strong
performance based on our projections of strong demand, particularly for telecommunications applications▶ We expect further growth in the nutrition-related business of the Life & Healthcare-related Prinova Group due to expanding
consumption and rising health consciousness in Europe and the Americas▶ We expect cost increases in Corporate & Others due to office relocation, etc.
100 millions of yen

22/03 Actual
Functional Materials

23/03 Forecast

ChangeVs.PY

Gross profit

19822122112%

Operating income

78834106%

Advanced Materials& Processing

Gross profit

323

343

19106%

Operating income

108

117

8108%

Electronics& Energy

Gross profit

297

325

27109%

Operating income

10211512112%

Gross profit

127

142

14112%

41442106%

447

557

109

124%

94

112

17119%

12

0168%

(72)

(91)

(18)

ー1,394

1,590

195

114%

352

380

27108%

MobilityLife & Healthcare

Corporate & Others

Total

Copyright © 2022 NAGASE & CO., LTD.

Operating income
Gross profitOperating income
Gross profit
Operating income
Gross profit
Operating income

16Shareholder Returns▶ Annual dividend increased from the originally planned ¥48 per share to ¥54 per share in response to strong performance▶ As we expect strong earnings for FY2022, we plan to increase annual dividends per share by ¥6 to ¥60 per share (increase in dividendsfor an expected 13th consecutive fiscal year)▶ We are proceeding as planned with the repurchase of ¥6 billion in treasury stock, as resolved in February 2022
(purchase period : February 2022 to February 2023)

Total Dividend

Stock buy-backTotal Payout ratio％

millions of yen
51.0
48.3

50.0

15,00042.4
12,52039.5
12,000
33.7

35.6

36.0

12,085

40.0

5,041

30.0

35.2

33.0

30.5
6,006

9,000
6,799
6,000

5,269
3,557

3,811

4,064

7,186

6,643

1,956

5,456

952

5,023

5,230

5,456

5,691

1,776

20.0

1,107

3,000

6,514

7,044

3,557

3,811

4,064

4,162

14/03

15/03

16/03

17/03

18/03

19/03

20/03

21/03

22/03

23/03
（Forecast）

¥２8

¥30

¥32

¥33

¥40

¥42

¥44

¥46

¥54

¥600Dividend per share

10.0

0.0

※ 22/03 year-end dividend to be submitted for approval to the 107th general meeting of shareholders scheduled for June 2022.
Copyright © 2022 NAGASE & CO., LTD.

17

https://www.nagase.co.jp/english/

These presentation materials contain projections based on forward-looking assumptions,forecasts, and plans as of May 10, 2022.
Actual earnings may differ from projections due to risks and uncertainties in the future
global economy, competitive landscape, currency exchange rates, etc.

Copyright © 2022 NAGASE & CO., LTD.