Financial Highlights

NAGASE&CO.,LTD.
August 4,2021

Copyright © 2021 NAGASE & CO., LTD.

I D E N T I F Y >>> D E V E L O P >>> E X P A ND

FYE March 2022 First Quarter

Contents■ Consolidated Statements IncomeP3■ Gross Profit by Region

P4■ Gross Profit by Business & Segment

P5■ Operating Income by Business & Segment

P6■ Segment Operating Income Overview

P7～P11■ State of Major Manufacturing Subsidiaries P12■ Consolidated Balance Sheets

P13■ FYE March 2022 Earnings Projection P14～P15■ Shareholder Returns

Copyright © 2021 NAGASE & CO., LTD.

P16

Consolidated statements income▶ Gross profit
・ Higher profit in all segments, with all stages of profit below gross profit reaching record highs for the first quarter・ In particular, the automobile-related business, resins and electronics-related businesses, and the Prinova Group‘s nutritionrelated business performed well
▶ Operating income
・Income greatly increased year-on-year; the economic impact of the COVID-19 epidemic had been significant in the same period of
the previous year
▶ Profit attributable to owners of the parent
・Income increased due to significant increase up to ordinary income despite decrease in gain on sales of cross-shareholdings
100 millions of yens

1,346

1,843+ 497

137%

Forecast（Full year)
ーGross profit

260345+ 85

133%

1,20029%<GP ratio>
SG&Ae x p e n s e s

19.4%

18.8%

（0.6pt）

－ー－

223

248

+ 24

111%

970

－

3697

+ 60

265%

23042%

42106

+ 64

252%

24044%+3105%

180

39%

20/06

Sale

Operatingi n c o m eOrdinary
i n c o m e

21/06

ChangeVs.PY

Profit attributableto owners of thep a r e n tUS$ Exchange rate
(period average)

6871@ 107.6@ 109.5@ 1.9 Weak yen@104.0RMB Exchange rate
(period average)@ 15.2@ 16.9@ 1.7 Weak yen

＠15．4

Achievementー※ Offset to sales and cost of sales from application of revenue recognition standards: June 2020, -¥45.9 billion; June 2021, -¥58.5 billion※ Impact from foreign exchange: Gross profit, +¥400 million; Operating income, +¥100 million
Copyright © 2021 NAGASE & CO., LTD.

3

Gross Profit By Region▶ Higher profit both domestic and overseas▶ Domestic : In particular, the automobile-related business and electronics-related business for mobile devices/displays performed well
▶ Overseas: The resins business, mainly for office equipment, appliances, and video game devices and focused on Greater China and ASEAN,
and the nutrition-related business in Europe and the Americas performed well

Overseas gross profit By Region(100 millions of yen)Domestic & Overseas Gross profit(100 millions of yen)
100%

400

200

Total 345

350

Overseas
165

90%
80%

300
70%

Total 260
250

200

Overseas
113
Overseas ratio
43.7%

Total 165
Europe18150

60%
Total 113

Overseas ratio
48.0%50%

10040%

150

Domestic
146

Domestic
180

Americas
4350

5020%
10%0%

020/06

21/06

Other
1Americas
57

Europe
1530%
100

Other
3

ASEAN
30

ASEAN
17
Greater China
35

Greater China
56

020/06

21/06※From FYE March 2022, the usual overseas net sales per-destination region have been replaced by per-region information for grossprofit, aggregated for each location of consolidated※Domestic figures under Domestic & Overseas Gross Profit include inter-regional adjustments
Copyright © 2021 NAGASE & CO., LTD.

4

Gross Profit By Business & Segment▶ Higher profits in all segments, with quarterly gross profits reaching record highs▶ Advanced Materials & Processing: Profitability improved due to strong demand in the resins business and rising market conditions▶ Life & Healthcare: Profits increased due to strong performance in the Prinova Group's nutrition-related business and strong salesof cosmetics-related materials※Comparison information for segment values reflects impact from business segmentation changes implemented on April 1, 2021.
Gross Profit By Business & Segment (100 millions of yen)

Total 345

350

300

Total 260

Manufacturing137

Change in Gross Profit By Segment (100 millions of yen)

Total 345

Total 260

Life &Healthcare
111

250

200

Life &Healthcare
92

Manufacturing
121

Mobility 14

150

10050

Trading &Other
139

Trading &Other
208

Electronics &Energy
55
Advanced
Materials& Processing
62

By Business

By Business

Functional
materials
34
By Segment

20/06

21/06

20/06

0

Copyright © 2021 NAGASE & CO., LTD.

Mobility 29
20/06

Electronics &Energy
72

21/06

History of Gross Profit(100 millions of yen)
400

Advanced
Materials& Processing
82
Functional
materials
48

300

345
260

308

299

277

200
1000000
By Segment
21/06

Q1Q221/03

Q322/03

Q45

Operating Income by Business & Segment▶ Quarterly operating income reached record highs as well with increases in gross profit in all business segments▶ we continue to invest for sustainable future growth, including in DX-related areas

Change in Operating Income By Segment (100 millions of yen)

Operating Income by Business & Segment(100 millions of yen)120

Total 97

100Total 97

80

Manufacturing 33

Life &Healthcare
27
Mobility 960
Total 3640200(20)Total 36

Manufacturing 23

Trading& Other63

Life &Healthcare
13
Electronics &Energy16

Electronics &Energy
25

20/06

Trading& Other
138Mobility(1)

By Business By Business
20/06
21/06

History of Operating Income(100 millions of yen)

AdvancedMaterials& Processing
32

Advanced Materials& Processing
Functional materials
1419
Functional materials

21/06

97

10071

80

Corporate&Others(16)

Corporate&Others(18)

By Segment
20/06

By Segment
21/0６

4036

20
0000
Q1

Copyright © 2021 NAGASE & CO., LTD.

585260

Q2

21/03

Q3

22/03

Q4

6

Functional Materials Segment Operating Income Overview▶ Raw materials sales increased for coating and urethane raw materials as well as those related to industrial oil solutions and plastic
materials, driven by an increase in automotive production▶ Sales trended strong in areas like electronics chemicals for the electronics industry, such as for semiconductor-related products▶ Profits increased year-on-year; the economic impact of the COVID-19 epidemic had been significant in the same period of theprevious year, primarily in the automobile-related businessHistory of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
252520Total 192019Manufact
uring 315151313101010Trading&Other
16Total 8

8Manufacturing 1

55Trading&
Other
700
20/06

21/06

Q1Q2

21/03

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000Q3

Q4

22/03

7

Advanced material &Processing Segment Operating Income Overview▶ The resins business, mainly in products for the office equipment, appliance, and video game device industry, performed well thanks to increased
demand in Japan and overseas, primarily in China, as well as rising market conditions▶ Digital print processing materials sales continued to be sluggish due to impact from declining market conditions from the second half of theprevious fiscal year
▶ Profits increased significantly year-on-year thanks to strong demand in the resins business both domestically and overseas, as well as
improvement on profitability from rising market conditions

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
35

35

32

Total 32
Manufact
uring 2

30

30

25

25

20

2020201715

Total 14

Trading&
Other30

1514

Manufact
uring 210510
Trading&
Other11

500
20/06

21/06

Q1Q2

21/03

Copyright © 2021 NAGASE & CO., LTD.

000Q3Q422/03

8

Eｌectronics & Energy Segment Operating Income Overview▶ Sales increased for display-related materials and precision processing-related materials for semiconductors▶ Sales of formulated epoxy resins-related products increased, primarily for mobile devices and semiconductors▶ Profits increased year-on-year, maintaining strong performance from the second half of the previous fiscal year

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
3030

Total 25252525

25

25
Manufacturing820201716

Total 16
1510515Manufacturing
7Trading&
Other
17Trading&
Other
810

500
20/06

21/06

Q1Q2

21/03
Copyright © 2021 NAGASE & CO., LTD.

000Q3

Q422/03

9Mobility Segment Operating Income Overview▶ Sales increased in the resins business domestically and overseas, primarily in ASEAN, and profitability increased thanks to rising market
conditions▶ Sales increased in functional materials and functional components for interior and exterior fittings and electrification▶ Profits increased significantly year-on-year amid recovery in automotive production

History of operating income （100 millions of yen）

Operating income by business（１００ millions of yen）
1010Total 98987676Trading&Other 944322Trading&
Other (1)00000Total (1)(1)△220/06

21/06

(2)
Q1

Q221/03
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Q3

Q422/0310

Life & Health Care Segment Operating Income Overview▶ Materials sales, manufacturing, and processing all trended strongly in the nutrition-related business, primarily focused on the Prinova Group▶ Sales increased related to food materials, primarily TREHA™, in cosmetics materials, primarily AA2G™, and related to pharmaceutical raw materials
and intermediates▶ Profits increased significantly year-on-year; the economic impact of the COVID-19 epidemic had been significant in the same period of theprevious year, primarily in food materials and cosmetics-related materials

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
3030

27

Total 2725

25212020
Manufact
uring 1915

1615

Total 1313

101310
Manufact
uring 115Trading&
Other 70Trading&
Other 220/06

5021/06

Q1Q221/03
Copyright © 2021 NAGASE & CO., LTD.

000Q3

Q422/03

11

State of Major Manufacturing Subsidiaries▶ Nagase ChemteX Corporation: Profits increased with strong sales related to formulated epoxy resins primarily for mobile devices andsemiconductors, as well as for products like photolithography materials for displays▶ Hayashibara Co., Ltd.: Profits increased with demand for the TREHA™ food material and with recovery in demand for the AA2G™
cosmetics material▶ Prinova Group: Profits increased with continued strong sales of nutrition materials thanks to U.S. economic recovery as well as withrecovery of manufacturing and processing

100 millions of yen

20/06
NagaseChemteX
Corporation

Hayashibara
Co., LtdCopyright © 2021 NAGASE & CO., LTD.

ChangeVs.PY

Sales

5972

13122%

Gross profit

18245133%

Operating income

7125171%

Sales

5766

9116%

Gross profit

25283112%

Operating income

11131118%

77-100％351129%22227350123%

Gorss profit

4253

11126%

Operating income

12186150%

44(0)

100%

7136188%

Goodwill amortization
etc.
Operating income after
amotization burden
Sales

Prinova Group

21/06

Goodwill amortizationetc.
Operating income aftar
amotization burden

12Consolidated Balance Sheets▶ Current assets: Accounts receivable and inventories increased due to favorable performance (working capital increased)▶ Shareholders' equity: Shareholders' equity increased slightly due to booking profit from the quarter despite purchases of treasury stock,
payments of dividends, and decline in market value of investments in securities▶ Net D/E ratio: Increased to 0.26 with increase in short-term borrowings due to demand for funds from increased working capital

100 milions of yen
21/03
Total current assets

21/06

ChangeDetailes

4,017

4,241

224

492

442

(50)

2,425

2,543

117

972

1,100

128

Total non-current assets

2,388

2,388

(0)

（Investments in security）

847

822

(25)

Total assets

6,405

6,629

223

Current liabilites

2,061

2,321

259 CP+120、Current Portion of Bonds+100

Non-current Liab.

960

868

2,847

2,867

449

477

87

95

8

3,384

3,440

55

（Cash&Deposits）（Notes&account Receivbable）（Inventories）

Shareholders`equity
Accumulated Other Comprehensive Income
Non-controlling interests
Total net assets

Working capital

2,198

2,384

Shareholders`equity ratio

51.5%

50.4%

0.23

0.26

NET D/E ratio

Copyright © 2021 NAGASE & CO., LTD.

(92)
19 Purchase of treasury stock (22)27 Translation adjustment +47

13FYE March 2022 Earnings Projection▶ Strong performance exceeding initial expectations in the automobile-related business, electronics-related business, and the Prinova Group▶ Regarding the normalization of economic activity from the second half, the outlook remains uncertain due to repeated states ofemergency declared in Japan against the backdrop of new COVID-19 variant spread and lockdown measures in ASEAN. Despite this uncertainty,
we expect a certain degree of recovery due to progress in vaccination efforts▶ The full-year consolidated earnings forecast is being revised upward; while the resins market is expected to soften and economic activity recovery
is to lead to greater expensing beginning in the second quarter, the first quarter has shown an upside in performance versus initial forecasts andrecovery is expected in demand for food/souvenirs/other products

100 millions of yen

21/03
Actual

22/03
22/03
Previous Forecast Revised Forecast

ChangePercent
Change

1,146

1,200

1,300

1008.3%

SG&A expenses

926

970

1,000303.1%

Operating income

219

230

300

7030.4%

Ordinary income

228

240

310

70

29.2%

Profit attributableto owners of theparent

188

180

225

4525.0%

US$ Exchange rate
(period average)@ 106.1

＠ 104.0@ 109．5

RMB Exchange rate
(period average)@ 15.7@ 15.416.9

Gross profit

Copyright © 2021 NAGASE & CO., LTD.

14

FYE March 2022 Earnings Projection(By segment)▶ Upward revision to earnings forecast in all segments, primarily in Advanced Materials & Processing, Electronics & Energy, andLife & Healthcare▶ For the resins business, while the situation at hand is expected to continue, the resins market is expected to soften to a degree
beginning in the second half
▶ The situation at hand is expected to continue for the electronics-related business given increases in demand for mobile devices
and displays

100 millions of yen

155

2２/3 Forecast（Original）
165

２２/3 Forecast（Revised）
177

47

57

66

915.8%

268

270

295

259.3%

7372

96

2433.3%

255

255

274

197.5%

Operating income

84

76

88

1215.8%Gross profit

89105112

76.7%

Operating income

183034413.3%

374

400

437

379.3%

6572

93

2129.2%

155ーー(68)

(77)

(77)

ーー

1,146

1,200

1,300

1008.3%

219

230

300

70

30.4%

21/3 Actual
Functional materials Gross profit
Operating income

Advanced Materials& Processing

Gross profit
Operating income

Electronics& Energy
MobilityLife & Healthcare

Gross profit

Gross profit
Operating income

Corporate&Others

Gross profit
Operating income

Total

Gross profit
Operating income

Copyright © 2021 NAGASE & CO., LTD.

ChangePercent
Change127.3%

15Shareholder Returns▶ Current 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)▶ Currently mid-acquisition of treasury stock of ¥6 billion (February 8, 2021 to February 4, 2022; as of June 30, 2021,
acquisition completed for ¥3.1 billion)

Dividend per Share(left axis)（％、yen）

Payout Ratio(left axis)

Dividend on equity(right axis)

（％）

50

2.0454040.436.0

1.50

3530

1.52

33.7

1.72

36.0
30.5

1.44

1.46

1.48
29.3

23.2

20

1.71

1.79

33.0

1.52

25

1.69

1.78

1.5

30.3
26.0

25.8
1.0

15
1050

24

262830

32

33

40

42

44

46

48

12/03

13/03

14/03

15/03

16/03

17/03

18/03

19/03

20/03

21/03

22/03
（Forecast）

0.5※ 18/03 year-end dividend include a special dividend of ¥5 per share.
※ 22/03 year-end dividend to be submitted for approval to the 107th general meeting of shareholders scheduled for June 2022.

Copyright © 2021 NAGASE & CO., LTD.

16

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

These presentation materials contain projections based on forward-looking
assumptions, forecasts, and plans as of August 4, 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.