FYE March 2020
First Quarter
Financial Highlights
NAGASE & CO., LTD.
August 2, 2019
Copyright © 2019 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

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Consolidated Statements of Income■ Net sales : Lower income in all segments other than the Life & Healthcare segment due to increasing uncertainty regarding
the future of the global economy.
■ Operating income : Lower income, coupled with higher general and administrative expenses led to lower profits.
(1 0 0 million s of yen )

18/06

19/06

ChangeOrig. Forecast(full year)

Vs. PYNet sales

1,986

1,929

△ 56

97%

8,500

Gross profit

265

253

△ 1196%

1,108<GP ratio>

13.3%

13.2%

△ 0.2%－13.0%

SG&A expenses

195

201

+5103%

848

Operating income

6952△ 1676%260

Ordinary income

7658△ 1776%

270

Profit attributable to owners ofthe parent54

41△ 1376%205@ 109.1@ 109.9@ 0.8

weak yen@110@ 17.1@ 16.1

@ 1.1 strong yen@ 16.0

US$ Exchange rate
(period average)
RMB Exchange rate
(period average)【 Foreign exchange rate impact on 19/06 net sales and operating income results 】
Net sales:△¥2 billion (approx.)
Operating income: △¥60million(approx.)

Copyright © 2019 NAGASE & CO., LTD.

3

Net Sales by Region (Domestic, Overseas)■ Despite level sales in Japan, sales overseas (with the exception of Europe) were lower (overseas ratio of total sales 47.3%).
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
1,00050%

2,000

900

48.6%

ASEAN

EuropeOther965
39
34
96

47.3%

Americas

800

912
38
37

(V:99%)(V:109%)91(V:96%)

40%
1,500

965

700

912

284
(V:107%)277(V:98%)

600

30%
500

1,000
400

20%
300

500

1,020

511

1,017
10%

200

466

(V:99%)(V:91%)

1000%

018/06

Copyright © 2019 NAGASE & CO., LTD.

19/06

018/06

19/06

V:Vs 18/06

4

Net Sales: Two-Year Comparison (by Segment)■Electronics : Despite increased sales of formulated epoxy resins and photolithography materials to the semiconductor industries,
lower sales of precision processing‐related, equipment‐related, and display‐related materials used in connection withintermediate processing in semiconductors led to lower sales.
■Mobility & Energy : Lower sales in the resins business in Japan and overseas, despite higher sales of car electronics‐relatedproducts, led to lower sales.
■Life & Healthcare : Increased sales due to higher sales of TREHA™ and other products in the food materials field, as well as highersales of pharmaceutical raw materials and intermediates and medical materials in the medical and pharmaceutical field.

Net Sales by Segment (100 millions of yen)

Functional Materials

Advanced Materials & Processing

Electronics

Mobility & Energy

1,986
2,000

222

1,500

341

Life & Healthcare

Others

1,929
226
325

292

266

687

673

440

436

18/06

19/06

1,000

500

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

Copyright © 2019 NAGASE & CO., LTD.

5Operating income: Two-Year Comparison (by Segment)■ Functional Materials : Increased profits, despite lower sales, due to improvement in sales mix.

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

Advanced Materials & Processing

80Electronics

Mobility & Energy

40

200

Others/Corptrate

69
1360

Life & Healthcare

71852
135122220

1314△7△14(20)
18/06

19/06

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

Copyright © 2019 NAGASE & CO., LTD.

6

Consolidated Balance Sheets■ Assets : Decrease of ¥9.2 billion, despite an increase in property, plant and equipment, mainly due to accounts receivableand inventory factors, as well as fair value decline in of investments in securities.
■ Liabilities : Decrease of ¥6.2 billion, despite redemption of bonds and a decrease in accounts payable.
■ Net Assets : Decrease of ¥2.9 billion due to decreases in translation adjustments and net unrealized holding gains onsecurities, which counteracted ¥4.1 billion in profit attributable to owners of the parent.
■ Shareholders’ equity ratio up 0.4 points to 54.6%.
Assets
19/03

Liabilities and Net Assets
19/06

Change19/03Total c urrent as s ets

3,658

3,568

△ 90

Total c urrent liabilities

Cash and time deposits

440412△ 28Notes and accounts payable

2,304

2,270

△ 33

Inventories

810

778

△ 31

Other

102106+3

Total non-c urrent as s ets

2,015

2,013

Property, plant and equipment

664

Intangible fixed assets( 100 millions of y en)

19/06

Change

2,018

1,932

△ 86

1,172

1,141

△ 31

Short-term loans and current portion of CP579

540

△ 38

Other266250△ 15

Total long-term liabilities

528

552+ 23△1Long-term loans and Bonds

275274△1683+ 18

Net defined benefit liability

124135+ 10372361△ 11Other128142+ 14

Investments, other assets

977968△8Total liabilities

2,5472,484△ 62

Investments in securities

902883△ 19

Total net as s ets

3,1263,096△ 297585+ 10

Shareholders’equity

2,628

2,641+ 12

Accumulated other comprehensive income

447407△ 40Net unrealized holding gain on securities

418401△ 173211△ 20Other△2△2+0Non-controlling interests4947△15,6735,581△ 92Notes and accounts receivable

Other(Deferred tax liabilities, etc.)

Translation adjustment

Total assets

5,673

Copyright © 2019 NAGASE & CO., LTD.

5,581

△ 92

Total liabilities and net assets

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

These presentation materials contain forward‐looking projections based on assumptions, forecasts,
and plans as of August 2 , 2019. Actual earnings may differ from projections due to risks anduncertainties in the future global economy, competitive landscape, currency exchange rates, etc.

Copyright © 2019 NAGASE & CO., LTD.