FYE March 2020
Third Quarter
Financial Highlights㻺㻭㻳㻭㻿㻱㻌㻒㻌㻯㻻㻚㻘㻌㻸㼀㻰㻚
February 5, 2020

Copyright © 2020 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

Copyright © 2020 NAGASE & CO., LTD.

Consolidated Statements of Income
䕔 Net sales: Overall industry weakness and stronger yen led to lower sales.
䕔 Operating income: Lower profits due to lower sales and increased expenses in connection
with the Prinova Group acquisition.
㻌㻔 㻝㻜㻜㻌 㼙㼕㼘㼘㼕㼛㼚㼟㻌㼛㼒㻌㼥㼑 㼚㻕

&KDQJH

5HYLVHG)RUHFDVW
IXOO\HDU9V3<Net sales

6,164

6,017

14798%

8,200

Gross profit

808

778

3096%

1,080

<GP ratio>

13.1%

12.9%

ᶭ 0.2%

䠉

13.2%

SG&A expenses

599

627

+ 27

105%

865

Operating䚷income

209

150

5872%

215

Ordinary income

222

157

6571%

220

㻼㼞㼛㼒㼕㼠㻌㼍㼠㼠㼞㼕㼎㼡㼠㼍㼎㼘㼑㻌㼠㼛㻌㼛㼣㼚㼑㼞㼟㻌㼛㼒㼠㼔㼑㻌㼜㼍㼞㼑㼚㼠

161

120

4075%

173

@ 111.1@ 108.7@ 2.5 strong yen@108.0@ 16.6@ 15.6@ 1.0 strong yen@ 15.4

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

䛆 Foreign exchange rate impact on19/12 net sales and operating income results 䛇Net sales:䕧¥10.5 billion (approx.);Operating income: 䕧¥100million

Copyright © 2020 NAGASE & CO., LTD.

2Net Sales by Region (Domestic, Overseas)
˛ Despite increased sales in the Americas and Europe due to the consolidation (two months) of the Prinova Group, sales
decreased in other regions. (overseas ratio of total sales 49.3%)
Domestic & Overseas Sales (100 millions of yen, %)Domestic
䠄Left axis䠅

Overseas䠄Left axis䠅

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

Greater China

3,033
3,000

6,000

50%
49.2%

ASEAN

49.3%




2,500

5,000Americas

EuropeOther2,967




(V:99%)(V:129%)(V:119%)

40%
3,033

2,967

2,000



4,000
30%


(V:107%)(V:94%)

1,500

3,000
20%
1,000

2,000
3,130



3,049
10%

1,000

00%
18/12

Copyright © 2020 NAGASE & CO., LTD.

19/12
(V:94%)(V:99%)

500

018/12

19/12

V:Vs 18/123

Net Sales: Two-Year Comparison (by Segment)䕔Electronics: Despite increased sales of photolithography material, sales of precision processing-related, equipment-related, anddisplay-related materials used in connection with intermediate processing in semiconductors were lower, driving overallsales down.
䕔Life & Healthcare: Though sales of AA2G™ to customers in the skin care and toiletries sectors were higher overseas,
sales decreased in Japan. In the medical and pharmaceutical field, though sales in the pharmaceutical businessdecreased, sales of pharmaceutical raw materials and intermediates, as well as medical materials, increased.
However, in the food materials field, increased sales of TREHA™ and other products, as well as contribution byconsolidation of the Prinova Group (two months), led to overall increases.

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

Advanced Materials & Processing

7,000
6,000

Electronics

Mobility & Energy
677

Life & Healthcare

Others
787

5,000

4,000

















3,000
2,000
1,000
0
* As of April 1, 2019, the Automotive & Energy Segment has been renamed the Mobility & Energy Segment

Copyright © 2020 NAGASE & CO., LTD.

4Operating income: Two-Year Comparison (by Segment)
䕔Profit lower in all segments other than Advanced Materials & Processing.
䕔Advanced Materials & Processing: Despite reduced sales, increased profitability in the Company’s manufacturingsubsidiaries in Japan led to higher profit.
䕔Life & Healthcare: Despite increased sales, decreased profitability in a portion of the Company’s manufacturingsubsidiaries leads to lower profit.
䕔 Corporate/Other: Increased expenses in connection with the Prinova Group acquisition and system-building toimplement measures toward medium- and long-term growth resulted in greater expenses
overall.
Operating income by Segment (100 millions of yen)
Functional Materials

Advanced Materials & Processing

Electronics

Mobility & EnergyLife & Healthcare

Others/Corptrate220190

160130








10070









40
10(20)

䕧㻞㻠䕧㻠㻟

(50)


* As of April 1, 2019, the Automotive & Energy Segment has been renamed the Mobility & Energy Segment

Copyright © 2020 NAGASE & CO., LTD.

5

Consolidated Balance Sheets䕔Assets: Increase of ¥74.2 billion due to intake of assets in connection with new consolidation of a subsidiary, recordingof intangible assets including goodwill, and an increase in investments in securities due to price increases ofshares owned.
䕔Liabilities: Increase of ¥62.8 billion due to increase in interest-bearing debt as a result of the Prinova Group acquisition.
䕔 Net assets: Increase of ¥11.4 billion due to the recording of profit attributable to owners of the parent, as well as anincrease in net unrealized holding gain on securities.
䕔Shareholders’ Equity Ratio down 4.8 points to 49.4%.
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19/12㻯㼔㼍㼚㼓㼑

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275721+ 446

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2WKHUᇫ1RQFRQWUROOLQJLQWHUHVWVTotal assets

5,673

Copyright © 2020 NAGASE & CO., LTD.

6,416

+ 742

Total liabilities and net assets

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

These presentation materials contain forward-looking projections based on assumptions, forecasts, andplans as of February 5 , 2020. Actual earnings may differ from projections due to risks and uncertainties in
the future global economy, competitive landscape, currency exchange rates, etc.

Copyright © 2020 NAGASE & CO., LTD.