FYE March 2019
Second Quarter
Financial Highlights
NAGASE & CO., LTD.
November 2, 2018

Copyright © 2018 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

Consolidated Cash Flows8

Copyright © 2018 NAGASE & CO., LTD.

Consolidated Statements of Income■ Net sales : Higher, mainly due to strong performance in base areas (Functional Materials, Advanced Materials &Processing)■ Operating income ： Higher, mainly due to higher revenues and increased profitability at manufacturing subsidiaries(100 millions of yen)

17/09

18/09

ChangeOrig. Forecast

Vs. PY(full year)

Net sales

3,875

4,044+ 169

104%

8,280

Gross profit

502529

+ 26

105%

1,073

<GP ratio>

13.0%

13.1%

+0.1%

－13.0%

SG&A expenses

376394+ 18105%

818

Operating income

126

134

+8107%

255

Ordinary income

138

139

+1101%

275

Profit attributable to owners ofthe parent

87

103

+ 15118%

186@ 111.0@ 110.3@ 0.8 strong yen@105@ 16.4@ 16.7@ 0.3@ 16.5

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

weak yen【 Foreign exchange rate impact on18/9 net sales and operating income results 】
Net sales:＋¥1.4 billion (approx.)
Operating income: ＋¥60 million (approx.)

Copyright © 2018 NAGASE & CO., LTD.

3

Net Sales by Region (Domestic, Overseas)■In addition to domestic businesses, performance was strong overseas, particularly in ASEAN and the Americas (overseas
ratio of total sales at 50.0%)
Domestic & Overseas Sales (100 millions of yen, %)Domestic（Left axis）

Overseas（Left axis）

Overseas Sales by Region (100 millions of yen, %)Overseas Net sales ratio（Right axis）

Greater China
2,000

1,949
9973

4,00050.3%

ASEAN

50%

170

50.0%

Americas

Europe

2,022

Other

87
72

(V:88%)(V:98%)

191(V:112%)

1,500

3,000

1,949

2,022

40%

536

596
(V:111%)(V:109%)

30%

1,000

2,000
20%
1,000

1,925

500

2,022

1,068

1,074
(V:102%)(V:101%)

10%

00%
17/09

Copyright © 2018 NAGASE & CO., LTD.

18/09

017/0918/09

V:Vs 17/09

4Net Sales: Two-Year Comparison (by Segment)■Functional Materials : Higher sales, driven by (1) increase in sales of coating raw materials and urethane materials, spurred bystrong automotive production and naphtha price increases; (2) increased sales of electronics chemicals, etc.; and (3) acquisitionof a US‐based distributor in the second quarter of the prior consolidated fiscal year.
■Advanced Materials & Processing : Higher sales in Japan and overseas, mainly due to increased sales of plastics and digital print
processing materials
Net Sales by Segment (100 millions of yen)
Functional Materials

Advanced Materials & Processing4,500
4,000
3,500

3,875
424

3,000627

2,500657

Electronics

Automotive & EnergyLife & Healthcare

Others4,044
429682
618

2,000
1,500

1,318

1,414844896

17/09

18/09

1,0005000* The Company reclassified reportable segments in the current fiscal year (certain businesses in the Functional Materials segment reclassified to the Life & Healthcare
segment). Results for the first six months of fiscal 2017 have been reclassified for comparison.

Copyright © 2018 NAGASE & CO., LTD.

5Operating income: Two-Year Comparison (by Segment)■Advanced Materials & Processing: Higher profits, mainly due to improved profitability among manufacturing subsidiaries inJapan and overseas

Operating income by Segment (100 millions of yen)
Functional Materials

Advanced Materials & Processing

160

126

130

2314

10043Electronics

Automotive & EnergyLife & Healthcare

Others/Corptrate

134
21
1440

70
4640

35

102627△17△1517/09

18/09(20)* The Company reclassified reportable segments in the current fiscal year (certain businesses in the Functional Materials segment reclassified to the Life & Healthcare
segment). Results for the first six months of fiscal 2017 have been reclassified for comparison.

Copyright © 2018 NAGASE & CO., LTD.

6

Consolidated Balance Sheets■Assets: Increase of ¥23.8 billion, mainly due to increases in accounts receivable, inventories, and rising investments in securities due to gains
in fair market prices■Liabilities: Increase of ¥13.3 billion due to increases in and short‐term loans and current portion of CP■Net assets: Increase of ¥10.5billion, mainly due to profit attributable to owners of the parent of ¥10.3 billion and increase innet unrealized holding gain on securities■Shareholders’ Equity Ratio down 0.3 points to 53.0%

Assets
18/03

Liabilities and Net Assets
18/09

Change

18/03

Total current assets

3,533

3,713

+ 180

Total current liabilities

Cash and time deposits

433401ᇞ 31

Notes and accounts payable

2,259

2,377+ 117

Inventories

736

830

+ 93

Other

103

103

+0

Total non-current assets

2,161

2,219

Property, plant and equipment

672

Intangible fixed assets( 100 millions of y en)

18/09

Change1,929

2,155+ 225

1,180

1,195

+ 15

Short-term loans and current portion of CP

480714+ 234

Other269

245

ᇞ 24

Total long-term liabilities

676

583

ᇞ 92+ 58

Long-term loans and Bonds

379

283

ᇞ 95

686+ 14

Net defined benefit liability

145

133

ᇞ 11410393

ᇞ 17

Other152

166+ 14

Investments, other assets

1,078

1,139+ 61

Total liabilities

2,606

2,739

+ 133

Investments in securities

1,004

1,066+ 62

Total net assets

3,088

3,193+ 105

74

73

ᇞ0

Shareholders’equity

2,502

2,572+ 69

Accumulated other comprehensive income

533

573

+ 39

Net unrealized holding gain on securities

507

530

+ 22Translation adjustment

2944+ 15Otherᇞ3

ᇞ1+1

Non-controlling interests5148

ᇞ35,694

5,933+ 238

Notes and accounts receivable

Other

Total assets

5,694

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5,933+ 238(Deferred tax liabilities, etc.)

Total liabilities and net assets

7

Consolidated Cash Flows
Cash Flows
18/09
Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities

Effects of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cashequivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents, at end of the pe riod

Copyright © 2018 NAGASE & CO., LTD.

(100 millions of yen)

主な内訳
Profit before income taxes ＋138
Depreciation and amortization ＋46▲ 39
Working capital ▲184
Income tax paid ▲27
Purchases of tangible and intangible fixed assets ▲68
Purchases of investment in securities ▲16▲ 84

Net increase (decrease) in short-term loans payable ＋109
Net increase (decrease) in commercial papers ＋2089
Cash dividends paid ▲2817/0965▲ 10273

54▲ 2840Japan 227 、Greater China 117 、 , ASEAN 46 、 Europe 32 、Americas 4Japan 217 、Greater China 106 、ASEAN 44 、Europe 26 、400
Americas 44283974388

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

These presentation materials contain forward‐looking projections based on assumptions, forecasts, andplans as of November 2 , 2018. Actual earnings may differ from projections due to risks and uncertainties in
the future global economy, competitive landscape, currency exchange rates, etc.

Copyright © 2018 NAGASE & CO., LTD.