FYE March 2021
Financial Highlightｓ
NAGASE & CO., LTD.
May 11, 2021

Copyright © 2021 NAGASE & CO., LTD.

AgendaConsolidated Statements 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

Consolidated Cash Flows8

FYE March 2022 Earnings Projections

9

FYE March 2022 Operating income Projections(by segment)

10Dividends

1１

Copyright © 2021 NAGASE & CO., LTD.

Consolidated Statements Income■ Net sales：Despite the considerable impact of COVID‐19 on our automobile‐related business during the first quarter, our electronics‐related businessand resins business experienced a recovery beginning in the second quarter, driven by demand for telework and other factors. In addition, the Prinova
Group, acquired in the second quarter of the prior consolidated fiscal year, contributed a full year of sales to the group this fiscal year
■ Operating income：Income increased, despite increased investments for digital transformation (DX) and other projects toward sustainable growth, due
to an increase in gross profit stemming from the contribution of Prinova Group high‐profit sales and a decrease in expenses due to voluntary restraints
on activities affected by COVID‐19■ Profit attributable to owners of the parent：Profit attributable to owners of the parent: Profit increased, mainly due to the recording of profits stemmingfrom the transfer of shares of subsidiaries and the sale of strategic cross‐shareholdings(100 million s of yen )

21/03

20/03

ChangeVs. PY

Revised Forecast(Full year)

Achievement

Net sales

7,995

8,302

+ 306

104%

8,110102%

Gross profit

1,049

1,146+ 96

109%

1,120102%<GP ratio>

13.1%

13.8%

+0.7%－

13.8%－

SG&A expenses

857926+ 69108%

920－

Operating income

191219+ 27114%

200110%Ordinary income

190

228+ 37120%

210109%Profit attributable to owners ofthe parent

151

188+ 36124%

170111%@ 108.7@ 106.1@ 2.6 strong yen@105.0－@ 15.6@ 15.7@ 0.1@ 15.5－

US$ Exchange rate
(period average)
RMB Exchange rate
(period average)

weak yen【 Foreign exchange rate impact on 21/03 net sales and operating income results 】
Net sales:¥(3.6) billion (approx.)
Operating income: ¥(0.0) billion（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: 56.3%)■ Greater China recorded sales in excess of pre‐COVID‐19 levels

Domestic & Overseas Sales(100 millions of yen,%）Domestic（Left axis）

6,000

5,000

Overseas（Left axis）

7,995

Overseas Net sales ratio（Right axis）

Greater ChinaASEAN

5,00060%

50%
3,500

4,670

(V:99%)

3,971

427(V:174%)

189
246

884(V:160%)

1,044(V:94%)

2,126(V:113%)

3,000
2,50030%

3,000

Other554
40%

4,000

Europe

187

4,500
4,000

49.7%

Americas

4,670

8,302
56.3%

3,971

Overseas Sales by Region(100 millions of yen,%）

1,106

2,000

2,000

4,023

3,631

20%

1,500
1,00010%

1,000

1,875

5000%

020/03Copyright © 2021 NAGASE & CO., LTD.

21/03

020/03

21/03

V:Vs 20/03

4

Net Sales: Two-Year Comparison(by segment)■Functional Materials/Mobility & Energy ： Sales decreased due to the impact of the decline in automotive production volume, particularlyin the first half of the year
■ Life & Healthcare ： Sales increased due to addition of Prinova Group sales, despite decrease in sales of TREHA™ and other food materials(excluding the Prinova Group) and AA2G™ and other cosmetics‐related materials caused by the COVID‐19 pandemic
Net Sales by Segment(100 millions of yen)

9,000
8,000

Functional Materials
Electronics
Life&Healthcare

7,995

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

Advanced Materials&Processing
Mobility&EnergyOthers

8,302

Others
(1)

1,215

1,744

(V:144%)

6,000

1,260

1,115

(V:89%)

5,000

1,151

1,195

(V:104%)7,000
Functional
Materials(141)

Electronics+44

Life&He
althcare
+529

8,302

4,000
3,000

2,670

2,691

(V:101%)

1,693

1,551

(V:92%)

20/03

21/03

7,995

2,000
1,000

Advanced
Materials&Processing+20

Mobility&Energy
(144)

0

Copyright © 2021 NAGASE & CO., LTD.

20/03

21/03
5Operating income: Two-Year Comparison(by segment)■ Advanced Materials & Processing：Lower profits, despite a recovery in demand and higher market prices
in the resins business, caused by deteriorating profitability in the digital print processing materials
business resulting from market conditions■ Electronics： Higher profits, mainly due to increased sales and improved profitability in certain
manufacturing subsidiaries
Operating income by Segment(100 millions of yen)
Functional Materials
Electronics
Life&Healthcare

Change in Operating income by segment(100 millions of yen)

Advanced Materials&Processing
Mobility&Energy
Others&Corporate

219
280

210

191

65

(V:164%)15(V:82%)

87(V:162%)73(V:86%)

53

48(V:91%)(59)△59△70(70)39
1853

Electronics+33
FunctionalMaterials(4)Life&He
althcare+25

Mobility&Energy(3)

Others&Corporate(11)

14085
70219
191

Advanced
Materials&Processing(12)0△(70)
70
20/03

Copyright © 2021 NAGASE & CO., LTD.

21/03

20/03

21/03
6Consolidated Balance Sheets■ Assets increased ¥29.1 billion due to an increase in accounts receivable and inventories, as well as an increase in investments in securities
resulting from a rise in the fair values of shares owned by the Company■ Liabilities increased ¥3.9 billion, mainly due to an increase in accounts payable, despite a decrease in commercial paper■ Shareholders’ equity ratio increased 1.6 points, from 49.9% at the end of the prior consolidated fiscal year to 51.5%
Assets
20/03

Liabilities and Net Assets
21/03

Change

20/03

Total c urrent assets

3,793

4,017+ 223

Cash and time deposits

514

492

(21)

2,211

2,425+ 214

Inventories

957

972+ 15

Other111

126+ 15

Total non-current ass ets

2,321

2,388

Property, plant and equipment

746

Intangible fixed assets

Total current liabilities(100 millions of y en)

21/03

Change2,004

2,061+ 57

1,082

1,199+ 116Short-term loans and current portion of CP

618

530(87)

Other

302

331+ 28

Total long-term liabilities

978960(17)+ 67Long-term loans and Bonds

726

645(81)708(37)Retirement benefit liability

136

132

(3)

724

645

(79)

Other

115

182

+ 67

Investments, other assets

849

1,033+ 183

Total liabilities

2,982

3,021+ 39

Investments in securities

761

937+ 175

Total net as sets

3,132

3,384+ 251

Other

88

96+7

Shareholders’equity

2,723

2,847+ 124

Accumulated other comprehensive income

329

449+ 119Net unrealized holding gain on securities

326435+ 109

Translation adjustment

1010(0)

Other( 6)3+ 10

Non-controlling interests

7987+86,114

6,405+ 291

Notes and accounts receivable

Total assets

6,114

Copyright © 2021 NAGASE & CO., LTD.

6,405+ 291

Notes and accounts payable(Deferred tax liabilities, etc.)

Total liabilities and net assets

7

Consolidated Cash Flows
Cash Flows
21/03
Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities（100 millions of yen）
Main factors

Profit before income taxes +292
Depreciation and amortization/amortization of goodwill +133
203
Change in working capital (100)Income taxes paid (92)
Sale of shares of subsidiaries resulting from a change in scope ofconsolidation +80

26 Proceeds from sales of investments in securities +60
Purchase of tangible and intangible fixed assets (95)
Purchase of investments in securities (32)
Net decrease in commercial paper (220)Cash dividends paid (54)(258)
Purchase of treasury stock (9)Proceeds from long-term loans +43

20/03
330(492)

243

Effects of exchange rate changes on cash and cashequivalents

9(18)Net increase (decrease) in cash and cash equivalents

(19)

63

Cash and cash equivalents at beginning of the year

504

440

Increase in cash and cash equivalents accompanying
consolidation－1

Cash and cash equivalents, at end of the period

485

504

Copyright © 2021 NAGASE & CO., LTD.

8

FYE March 2022 Earnings Projections■ Despite remaining concerns about the impact of COVID‐19 on the global economy, we expect economic activity to normalize beginning in thesecond half of fiscal 2021, as vaccinations progress to a certain extent in various countries■ Despite concerns about the impact of semiconductor shortages on production volume, we expect to see further recovery in our automobile‐
related business, which has continued since the second half of fiscal 2020
■ While we intend to continue making R&D and DX‐related investments for future growth, we expect that COVID‐19‐related restraints on activities
will continue to a certain extent. Therefore, we forecast expenses for the first half of fiscal 2021 to be at the same level as fiscal 2020(100 millions of yen)

21/03
ActualGross profit ※

1,146

22/03
Full Year Forcast
1,200

SG&A expenses

926

Operating income

ChangeVs.PY+53105%970+43105%219

230+10105%

Ordinary income

228

240

+11105%

Profit attributable to owners ofthe parent

188

180(8)

96%@106.1@104.0@2.1 Strong yen

@15.7

@15.4

@0.3 Strong yen

US$ Exchange rate
(period average)
RMB Exchange rate
(period average)*Beginning in fiscal 2021, the Company will disclose gross profit instead of net sales in our consolidated earnings forecasts

Copyright © 2021 NAGASE & CO., LTD.

9FYE March 2022 Operating income Projections(by Segment)
Changes in Operating income by segment(100 millions of yen)

Operating income Projections by Segment(100 millions of yen)320

Functional Materials

Advanced Materials&Processing

Electronics&Energy※1

Mobility※2

Life&Healthcare

Others&Corporate

219

Life&Healthcare
+6230
72

(V:111%)1830(V:162%)

160

84

76

(V:90%)

7372(V:98%)

80

4757（68）△68△77（77）

21/03 ※322/03

240

650△(80)80

FunctionalMaterials+9Electronics&Energy(8)Mobility+11AdvancedMaterials&Pr
ocessing(1)(V:121%)Others&Corporate
(8)

230

219

21/03

22/03

*1 As of April 1, 2021, the Electronics Segment has been renamed as the Electronics & Energy Segment.
*2 As of April 1, 2021, the Mobility & Energy Segment has been renamed the Mobility Segment.
*3 Due to organizational changes effective April 1, 2021, we have changed our business segment classification method.
Figures for the fiscal year ended March 2021 reflect this change in classification method.

Copyright © 2021 NAGASE & CO., LTD.

10Dividends■ Current fiscal year: We expect to pay dividends of ¥46 per share for the full year, consisting of a ¥22 per share interim dividend and a ¥24 per shareyear‐end dividend■ Next fiscal year: We expect to pay a dividend of ¥48 per share for the full year, consisting of a ¥24 per share interim dividend and a ¥24 per share year‐end dividend. (expected increase in dividends for a 12th consecutive fiscal year)（%）（%、Yen）

50

2.0

45
40
35

1.5

30
25
20
1.0

15
1050
Dividend per Share(left axis)
Payout Ratio(left axis)
DOE(right axis)

21/03
22/03
（Forecast) （Forecast)

12/03

13/03

14/03

15/03

16/03

17/03

18/03

19/03

20/03

24

26

2830

32

33

40

42

44

46

48

36.0

23.2

30.5

33.7

33.0

40.4

29.3

26.0

36.0

30.3

32.4

1.52

1.52

1.50

1.44

1.46

1.48

1.69

1.71

1.78

1.79

1.74

0.5

*1 FYE March 2018 dividends include a special dividend of ¥5 per share.
*2 FYE March 2021 year-end dividend to be submitted for approval to the 106th general meeting of shareholders scheduled for June 2021.

Copyright © 2021 NAGASE & CO., LTD.

11

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

These presentation materials contain projections based on forward-looking
assumptions, forecasts, and plans as of May 11, 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.