FYE March 2021
First Quarter
Financial Highlights
NAGASE & CO., LTD.
August 4, 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

FYE March 2021 Earnings Projections

8Dividends

9Copyright © 2020 NAGASE & CO., LTD.

Consolidated Statements of Income■ Net sales: Sales declined because of the impact of the growth of the COVID-19 pandemic.
■ Operating income: Income declined mainly due to the decline in income among existing group companies and increased costs incurred to promote
DX for medium- to long-term growth, though gross profit increased due to the high profitability of Prinova Group.
■ Profit attributable to owners of the parent: Profit increased, mainly due to the recording of profits stemming from the sale of certain shares
owned by the Company.
(100 millions of yen)

19/06

20/06

ChangeOrig. Forecast(full year)

Vs. PYNet sales

1,929

1,805

( 124)

94%

7,540

Gross profit

253

260

+6103%

1,070<GP ratio>

13.2%

14.4%+1.3%－14.2%

SG&A expenses

201

223

+ 22111%920

Operating income5236( 15)

70%

150

Ordinary income5842( 16)

72%

155

Profit attributable to owners ofthe parent

41

68

+ 26

164%

125@ 109.9@ 107.6@ 2.3 strong yen@106.0@ 16.1@ 15.2@ 0.9 strong yen@ 14.7

US$ Exchange rate
(period average)
RMB Exchange rate
(period average)【 Foreign exchange rate impact on 20/06 net sales and operating income results】
Net sales:¥(3.2)billion (approx.)
Operating income: ¥(60)million(approx.)

Copyright © 2020 NAGASE & CO., LTD.

3

Net Sales by Region (Domestic, Overseas)■ Sales in particular in Japan and ASEAN decreased due to the impact of the growing COVID-19 epidemic, though sales in
Europe and America increased sharply due to the addition of sales from the Prinova Group (overseas ratio of total sales: 54.5%).

Domestic & Overseas Sales (100 millions of yen, %)Overseas Sales by Region (100 millions of yen, %)(V:103%)(V:286%)(V:220%)(V:70%)(V:94%)

V:Vs 19/06

Copyright © 2020 NAGASE & CO., LTD.

4

Net Sales: Two-Year Comparison (by Segment)■Mobility & Energy: Sales declined due to a decrease in the sales of car electronics-related products and resins business,
mainly caused by lower automotive production in Japan and overseas attributable to the impact of the COVID-19 pandemic.
■Life & Healthcare: Sales increased mainly due to increased sales of pharmaceutical raw materials/intermediates and medical
materials, and due to the addition of sales from the Prinova Group, which compensated for the decline in the sales of TREHA™,AA2G™, etc. The decline was mainly due to a lower demand caused by the impact of the COVID-19 pandemic.
Net Sales by Segment (100 millions of yen)

Copyright © 2020 NAGASE & CO., LTD.

Change in Net Sales by Segment (100 millions of yen)5Operating income: Two-Year Comparison (by Segment)■ Electronics: Despite reduced sales, increased profitability in certain manufacturing subsidiaries led to higher profit.
■ Life & Healthcare: Despite increased sales, weaker profitability among the Company’s manufacturing subsidiaries in Japan
led to slightly lower profit.
Operating income by Segment (100 millions of yen)

Copyright © 2020 NAGASE & CO., LTD.

Change in Operating income by Segment (100 millions of yen)6

Consolidated Balance Sheets■ Assets decreased ¥11.5 billion due to decreases in cash and deposits, accounts receivable, etc., though investments insecurities increased due to a rise in the fair value of stock owned by the Company.
■ Liabilities decreased ¥20.6 billion due to decreased accounts payable.
■ Shareholders’ Equity Ratio up 2.5 points to 52.4%.
Assets
20/03

Liabilities and Net Assets
20/06

Change

20/03

Total current assets

3,793

3,615( 178)

Total current liabilities

Cash and time deposits

514

417

( 96)

Notes and accounts payable

2,211

2,048

( 162)

Inventories

956

1,017+ 60

Other111

131+ 20

Total non-current assets

2,321

2,384

Property, plant and equipment

743

Intangible fixed assets( 100 millions of y en)

Change

20/06

2,004

1,843

( 160)

1,082

947( 134)

Short-term loans and current portion of CP

618

625

+7

Other302

269

( 33)

Total long-term liabilities

978932

( 45)

+ 62

Long-term loans and Bonds

726

652

( 73)

737

( 5)

Net defined benefit liability

136

138+1725709( 16)Other115

141+ 26

Investments, other assets

852

937+ 85

Total liabilities

2,982

2,775( 206)

Investments in securities

761

849+ 87

Total net assets

3,132

3,223+ 91

Other9188( 2)

Shareholders’equity

2,723

2,764+ 40

Accumulated other comprehensive income

329

379+ 49

Net unrealized holding gain on securities

326

378+ 52

Translation adjustment106( 4)

Other( 6)

( 5)

+1

Non-controlling interests

79

79+06,114

5,999( 115)

Notes and accounts receivable

Total assets

6,114

Copyright © 2020 NAGASE & CO., LTD.

5,999

( 115)(Deferred tax liabilities, etc.)

Total liabilities and net assets

7

FYE March 2021 Earnings Projections■ In the Life & Healthcare Segment, we foresee a significant increase in sales, since the strong sales of the Prinova Group is expected to make contributions
throughout the entire fiscal year and the company’s sales of vitamins, amino acids, and other products are expected to be strong mainly in Europe and America.
■In other segments, however, we forecast sales to decline considerably because of the impact of COVID-19 spreading globally■Based on the above, we forecast lower sales and profits overall (there are no changes to the earnings forecasts released in May 2020)[Assumptions]・The economy will gradually recover in the second half, though there is concern that the recovery of the economy may be delayed by the impact of
the COVID-19 epidemic.
・Foreign exchange rates: ¥106 to the U.S. dollar and ¥14.7 to the RMB(100 millions of yen)

20/03
Actual21/03
Full Year Forcast

Vs. PYChange

Net sales

7,995

7,540(455)94%Gross profit

1,049

1,070

+21102%＜GP ratio＞

13.1%

14.2%

+1.1%

―SG&A expenses

857

920

+63

107%

Operating income

191150(41)78%Ordinary income

190

155(35)

81%

Profit attributable to owners ofthe parent

151

125(26)83%

US$ Exchange rate
(period average)@108.7@106.0@2.7 Strong yen

RMB Exchange rate
(period average)

@15.6

@14.7

@0.9 Strong yen

Copyright © 2020 NAGASE & CO., LTD.

8

Dividends■Expecting ¥44 per share for the full year, consisting of a ¥22 per share interim dividend and a ¥22 per share year-end dividend.

*1 FYE March 2018 dividends include a special dividend of ¥5 per share.

Copyright © 2020 NAGASE & CO., LTD.

9

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

These presentation materials contain forwardlooking projections based on assumptions, forecasts, andplans as of August 4 , 2020. Actual earnings may differ from projections due to risks and uncertainties in thefuture global economy, competitive landscape, currency exchange rates, etc.
Copyright © 2020 NAGASE & CO., LTD.