FYE March 2021
Third Quarter
Financial Highlights
NAGASE & CO., LTD.
February 5, 2021

Copyright © 2021 NAGASE & CO., LTD.

AgendaConsolidated Statements of Income

3

Net Sales by Region (Domestic, Overseas)

4

Net Sales: Two-Year Comparison (by Segment)

5

Operating Income: Two-Year Comparison (by Segment)

6

Consolidated Balance Sheets

7

FYE March 2021 Earnings Projections

8Earnings Projections (by Segment)

9Dividends

10

Copyright © 2021 NAGASE & CO., LTD.

Consolidated Statements of Income■Net sales: Sales increased, despite the impact of the COVID-19 pandemic. Sales recovered quickly to pre-pandemic levels in China andcontinue to recover, while Japan and ASEAN began to experience gradual recoveries in the second quarter. In addition, the Prinova Group,acquired in the second quarter of the prior consolidated fiscal year, contributed a full period of sales.
■Income increased, despite an increase in costs to promote DX and other measures for sustainable growth, as gross profit rose due to thecontribution of the highly profitable Prinova Group and expenses decreased due to voluntary restraints on activities stemming from COVID-19.
■Profit attributable to owners of the parent: Profit increased, mainly due to the recording of profits stemming from the transfer of shares of(100 millions of yen)subsidiaries and the sale of strategic cross-shareholdings.

20/12

19/12

ChangeOrig. Forecast(full year)

Vs. PYNet sales

6,017

6,045

+ 28

100%

7,540

Gross profit

778

837

+ 58

108%

1,070

<GP ratio>

12.9%

13.8%

+0.9%

－14.2%

SG&A expenses

627

676

+ 48108%920

Operating income

150160+ 10107%

150

Ordinary income

157

171

+ 14109%

155

Profit attributable to owners of theparent

120

165

+ 45137%125@ 108.7@ 106.1@ 2.6 strong yen@106.0@ 15.6@ 15.4@ 0.2 strong yen@ 14.7

US$ Exchange rate
(period average)
RMB Exchange rate
(period average)【 Foreign exchange rate impact on 20/12 net sales and operating income results】
Net sales:¥(4.4)billion (approx.)
Operating income: ¥(100)million(approx.)

Copyright © 2021 NAGASE & CO., LTD.

3

Net Sales by Region (Domestic, Overseas)■Sales declined in particular in Japan and ASEAN due to the impact of the growing COVID-19 pandemic, though sales in Europe
and America increased sharply due to the addition of sales from the Prinova Group (overseas ratio of total sales: 56.2%).
■ Greater China recovered to pre-pandemic levels, while Japan and ASEAN gradually recovered beginning in the second quarter.
Domestic & Overseas Sales (100 millions of yen, %)Overseas Sales by Region (100 millions of yen, %)Domestic（Left axis）

Overseas（Left axis）

6,017
6,000

Overseas Net sales ratio（Right axis）

Greater China

3,000

5,000

49.3%
2,967

50%
2,500

EuropeOther125(V:98%)

328(V:223%)

651(V:191%)

838

733

(V:87%)

1,5121,558(V:103%)

19/12

20/12

V:Vs 19/12

2,96760%

Americas

3,397

3,500

6,045
56.2%

ASEAN

127147341

3,397

4,00040%
2,000

3,00030%
1,500

2,00020%
1,000

3,049

2,648

1,000

10%

00%
19/12

Copyright © 2021 NAGASE & CO., LTD.

20/12

500

04

Net Sales: Two-Year Comparison (by Segment)■Mobility & Energy: Sales declined due to a decrease in the sales of car electronics-related products in Japan and in the resins
business in all regions except Greater China, mainly caused by lower automotive production in all regions except Greater China.
■Life & Healthcare: Sales increased mainly due to increased sales of pharmaceutical raw materials/intermediates and medical
materials and of hygiene products-related materials, and due to the addition of sales from the Prinova Group, factors thatcompensated for the decline in the sales of TREHA™ and other food materials (other than Prinova Group) and AA2G™ and othercosmetics-related materials. The decline was mainly due to a lower demand caused by the impact of the COVID-19 pandemic.

Net Sales by Segment (100 millions of yen)
Functional Materials

Advanced Materials & Processing

Electronics

Mobility & EnergyLife & Healthcare

Others6,017

Change in Net Sales by Segment (100 millions of yen)

Advanced
Materials &Processing
(114)

6,045

6,000

787
5,000
4,000980
873

Others(0)FunctionalMaterials(174)1,310(V:167%)787(V:80%)

860(V:98%)

1,959(V:94%)

1,299

1,124

(V:87%)

19/12

20/12

Electronics
(13)

6,017

Life &Healthcare+523

Mobility &Energy(192)

6,045

3,000

2,073
2,000
1,0000

Copyright © 2021 NAGASE & CO., LTD.

19/12

20/12
5Operating income: Two-Year Comparison (by Segment)■ Advanced Materials & Processing: Lower profits due to declining sales and degraded market conditions in the digital print
processing materials business.
■Electronics: Despite reduced sales, increased profitability in certain manufacturing subsidiaries led to higher profit.

Operating income by Segment (100 millions of yen)200

Functional Materials

Advanced Materials & Processing

Electronics

Mobility & EnergyLife & Healthcare

Others/Corptrate

150
26150

1541

Change in Operating income by Segment (100 millions of yen)
Others/Corptrate(3)

160
51(V:196%)

8(V:52%)61(V:148%)

FunctionalMaterials(6)Electronics+191006950524034(43)(46)

19/1220/12

Life &Healthcare+25
Mobility &Energy(7)(V:75%)

160

150
Advanced
Materials &Processing(17)(V:84%)

0(50)Copyright © 2021 NAGASE & CO., LTD.

19/1220/126

Consolidated Balance Sheets■Assets increased by ¥24.2 billion, despite decreases in cash and deposits, inventories, etc. The increase was mainly due toan increase in accounts receivable and an increase in investments in securities stemming from a rise in the fair values ofshares owned by the Company.
■Liabilities decreased by ¥80 million, mainly due to decreases in commercial paper and short-term loans, despite anincrease in accounts payable.
■Shareholders’ Equity Ratio up 1.9 points to 51.8%.
Assets
20/03

Liabilities and Net Assets
20/12

Change

20/03

Total current assets

3,793

3,886+ 92

Total current liabilities

Cash and time deposits

514

454

( 60)

Notes and accounts payable

2,211

2,437+ 226

Inventories

956

882

( 74)

Other111

111+0

Total non-current assets

2,321

2,471

Property, plant and equipment

743

Intangible fixed assets(100 millions of y en)Change

20/12

2,004

1,959

( 45)

1,082

1,218+ 135

Short-term loans and current portion of CP

618

463

( 154)

Other

302

276

( 26)

Total long-term liabilities

9781,022+ 44+ 149

Long-term loans and Bonds

726

689

( 36)

716

( 26)

Retirement benefit liability

136

136

+0725

666

( 59)

Other

115

195+ 80

Investments, other assets

852

1,087+ 235

Total liabilities

2,982

2,981(0)Investments in securities

761

996+ 234

Total net assets

3,132

3,375+ 243

Other91

91+0

Shareholders’equity

2,723

2,834+ 110

Accumulated other comprehensive income

329

459+ 129Net unrealized holding gain on securities

326474+ 148

Translation adjustment

10( 12)( 22)

Other( 6)

( 3)

+3

Non-controlling interests

79

82+3

6,114

6,357+ 242

Notes and accounts receivable

Total assets

6,114

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6,357+ 242(Deferred tax liabilities, etc.)

Total liabilities and net assets

7

FYE March 2021 Earnings Projections■ While the economic impact of the COVID-19 pandemic remains serious, China maintained an economic recovery after quickly resuming
economic activity.
■ Businesses in Japan and ASEAN experienced a greater-than-expected recovery, while expenses decreased due to voluntary restraints on
activities caused by the COVID-19 pandemic.
■As part of the priority policy of Portfolio Optimization described in our ACE-2020 mid-term management plan, we have transferred stockof subsidiaries and sold strategic cross-shareholdings from the perspective of the best owner of such shares. As a result, we recorded again on sale of stock.
■While the business environment surrounding the NAGASE Group remains uncertain, we expect a certain level of profits for the fourthquarter. Therefore, we have made an upward revision to our full-year earnings forecasts.
(100 millions of yen)

20/03

21/03
Revised
Forecast(C)

Previous
Forecast(B)

Actual(A)

Change(C-A)

Vs.PY
(C/A)

Net sales

7,995

7,540

8,110+114

101%

Gross profit

1,049

1,070

1,120

+70107%＜GP ratio＞

13.1%

14.2%

13.8%

+0.7%

SG&A expenses

857

920

920

+62107%

Operating income

191

150200+8104%

Ordinary income

190

155

210

+19110%

Profit attributable to owners ofthe parent151

125

170+18112%

US$ Exchange rate
(period average)@108.7@106.0＠105.0 ＠3.7 Strong yen―

RMB Exchange rate
(period average)

@15.6

@14.7

＠15.5 ＠0.1 Strong yen―

Copyright © 2021 NAGASE & CO., LTD.

8

Earnings Projections (by Segment)
Net Sales Forecast by Segment (100 millions of yen)

Operating Income Forecast by Segment (100 millions of yen)
10080

3,000

80
65

2,607

60

2,410

2,500

63

62

56

54
4247

40
2,000
1,655
1,500

11 1420

1,425

1,722

1,510

0(20)

1,160
1,0251,020

1,107(40)

1,000(60)500(75)(80)(69)(100)0Functional
Materials

Advanced
Materials &Processing

Electronics

Latest forecast(revised in November 2020)*

Mobility &Energy
RevisedForecast

Life &Healthcare

Functional
Materials

Advanced
Materials &Processing

Electronics

Mobility &Energy

Latest forecast(revised in November 2020)*

Life &
Healthcare

Others/Corptrate

Revised
Forecast* Latest forecast (revised in November 2020): Please refer to the material on P.18 of the FYE March 2021 Second Quarter Financial Briefing announced on
November 26, 2020. （https://www.nagase.co.jp/english/assetfiles/tekijikaiji/20201225.pdf）

Copyright © 2021 NAGASE & CO., LTD.

9Dividends■We decided to increase our year-end dividend by ¥2 (from ¥22 to ¥24) based on our basic dividend policy and taking into accountbusiness performance, financial position, etc.
■We expect to pay a dividend of ¥46 per share for the full year, consisting of a ¥22 per share interim dividend and a ¥24 per share yearend dividend.(expected increase in dividends for an 11th consecutive fiscal year)（%）（%、Yen）

452.04035301.525
20
15

1.0

1050
Dividend per Share(left axis)
Payout Ratio(left axis)
DOE(right axis)

11/03

12/03

13/03

14/03

15/03

16/03

17/03

18/03

19/03

20/03

21/03
（Forecast)

2224

26

28

30

32

33

40

42

44

46

22.0

36.0

23.2

30.5

33.7

33.0

40.4

29.3

26.0

36.0

33.4

1.42

1.52

1.52

1.50

1.44

1.46

1.48

1.69

1.71

1.78

1.79

0.5

*1 FYE March 2018 dividends include a special dividend of ¥5 per share.
*2 21/03 year end dividend to be submitted for approval to the 106th Annual Shareholders’ Meeting scheduled for June 2021.

Copyright © 2021 NAGASE & CO., LTD.

10

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

These presentation materials contain forwardlooking projections based on assumptions, forecasts, andplans as of February 5 , 2021. Actual earnings may differ from projections due to risks and uncertainties in
the future global economy, competitive landscape, currency exchange rates, etc.
Copyright © 2021 NAGASE & CO., LTD.