FYE March 2018
Financial Highlights㻺㻭㻳㻭㻿㻱㻌㻒㻌㻯㻻㻚㻘㻌㻸㼀㻰㻚May7,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

FYE March 2019 Earnings Projections

9

Dividends

10

Copyright©2018NAGASE&CO.,LTD.

Consolidated Statements of Income
䘠NAGASErecordedrecordhighsforsalesandprofits
䕔Netsales:Higher,mainlyduetostrongsalesinallsegmentsandthelowervaluationoftheyen䕔Operatingincome:Higher,mainlyduetooperatingprofitgrowthandloweramortizationofretirement
benefitaccountingactuarialdifferences㻌㻔㻝㻜 㻜㻌㼙㼕㼘㼘㼕㼛㼚㼟㻌㼛㼒㻌㼥㼑㼚 㻕



&KDQJH

2ULJ)RUHFDVW

9V3<$FKLHYHPHQW

IXOO\HDU

Net sales

7,223

7,839+615

109%

7,710

102%

Gross profit

915

1,026+111112%

1,000103%<GP ratio>

12.7%

13.1%

+0.4%

䠉13.0%

䠉SG&A expenses

764

785+20103%

765䠉

Operating䚷income

150241+90160%

235103%

Ordinary income

163259+96159%

255102%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103

171+68

166%

160

107%

@108.4@110.9@2.5 devaluation@111.0䠉@16.1@16.7@0.6 devaluation@16.4䠉US$Exchangerate(periodaverage)
RMBExchangerate(periodaverage)

䛆 Foreign exchange rate impact on18/03 net sales and operating income results 䛇Net sales:䠇¥15.7 billion (approx.);Operating income: 䠇¥570million

Copyright©2018NAGASE&CO.,LTD.

3

Net Sales by Region (Domestic, Overseas)
䕔HigherrevenuesinJapanandeveryregionoverseas(ratioofoverseasnetsales49.6%)
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, %)GreaterChina

OverseasNetsalesratio
䠄Rightaxis䠅

8,000
48.9%

49.6%

7,000

50%

3,500

3,000

6,000

3,885

2,500

5,000

Americas

Europe

Other

3,885
3,530




40%

3,530



(V:127%)

(V:124%)(V:118%)
(V:108%)(V:86%)

30% 2,000

4,000
3,000
2,000

ASEAN

4,000

20%

3,693

1,500

1,000

3,954




(V:88%)(V:107%)

10%
1,000

(V:88%)
5000%

017/03Copyright©2018NAGASE&CO.,LTD.

18/03

0

17/03

18/03
4

Net Sales: Two-Year Comparison (by Segment)
䕔FunctionalMaterials:Highersales,mainlyduetosalesofcoatingrawmaterialsandurethanematerials

associatedwithhigherproductionofautomobilesinJapanandoverseas,risingsalesofrawmaterialsfor
industrialoilsolutions,andtheimpactofouracquisitionofFitzChem Corporation(U.S.specialtychemicals
distributor)
䕔AdvancedMaterials&Processing:HighersalesduetoincreaseinsalesofplasticsinJapanandoverseas
Net Sales by Segment (100 millions of yen)
FunctionalMaterials

AdvancedMaterials&Processing

8,000Electronics

Automotive&Energy

853

849

6,000





5,000

Others



7,000

Life&Healthcare



4,000
3,000





2,000
1,000









05

Copyright©2018NAGASE&CO.,LTD.

Operating income: Two-Year Comparison (by Segment)䕔Inadditiontohighersalesamongallsegments,growthinElectronics,AdvancedMaterials&Processing,and

othermanufacturingsubsidiariesalsohadapositiveimpact
䕔Inadditiontothepreceding,loweramortizationofretirementbenefitaccountingactuarialdifferencesforthe
Others/Corporatesegmentresultedinoverallincreaseinoperatingincomeof¥9.0billion
Net Sales by Segment (100 millions of yen)
FunctionalMaterials

AdvancedMaterials&Processing

Electronics

Automotive&EnergyLife&Healthcare

Others/Corptrate


270
240
210
180
150
120






30





9060











䕧

䕧





0(30)
(60)

Copyright©2018NAGASE&CO.,LTD.

6

Consolidated Balance Sheets䕔Assets:Increaseof¥40.6billion,mainlyduetoincreasesinaccountsreceivable,inventories,andrisinginvestmentsinsecuritiesduetogainsinfairmarketprices
䕔Liabilities:Increaseof¥27billionduetoincreasesinaccountspayableandshortͲtermloans
䕔Netassets:Increaseof¥13.6billion,mainlyduetoprofitattributabletoownersoftheparentof¥17.1billionandincreaseinnetunrealizedholding
gainonsecurities
䕔Shareholders’EquityRatiodown1.6pointsto53.1%$VVHWV
17/03ᇫᇫᇫᇫᇫᇫᇫᇫ/LDELOLWLHVDQG1HW$VVHWVᇫᇫ PLOOLRQV RI\ HQ
18/03

Change17/03㻯㼔㼍㼚㼓㼑

18/03

7RWDOF XUUHQWDV VHWV

3,212

3,561+ 348

7RWDOF XUUHQWOLDELOLWLHV

1,664

1,930+ 265

ᇫ&DVKDQGWLPHGHSRVLWV

398433+ 34

ᇫ1RWHVDQGDFFRXQWVSD\DEOH

1,020

1,180+ 159

ᇫ1RWHVDQGDFFRXQWVUHFHLYDEOH

2,068

2,259+ 191

ᇫ6KRUWWHUPORDQVDQGFXUUHQWSRUWLRQRI&3416480+ 63

ᇫ,QYHQWRULHV

631736+ 105

ᇫ2WKHU

227270+ 42

ᇫ2WKHU

114131+ 17

7RWDOORQJWHUPOLDELOLWLHV

690696+5ᇞ 21

7RWDOQRQFXUUHQWDV VHWV

2,095

2,153+ 57ᇫ/RQJWHUPORDQVDQG%RQGV

400379

ᇫ3URSHUW\SODQWDQGHTXLSPHQW

676672

ᇞ3ᇫ1HWGHILQHGEHQHILWOLDELOLW\146145

ᇞ1ᇫ,QWDQJLEOHIL[HGDVVHWV

407

410+3ᇫ2WKHUᇫ 'HIHUUHGWD[OLDELOLWLHVHWF

143

171+ 27

ᇫ,QYHVWPHQWVRWKHUDVVHWV

1,011

1,070+ 58

7RWDOOLDELOLWLHV

2,355

2,626+ 270

,QYHVWPHQWVLQVHFXULWLHV

945

1,004+ 58

7RWDOQHWDVV HWV

2,951

3,088+ 136

2WKHU

6666+0ᇫ6KDUHKROGHUVಬHTXLW\2,396

2,502+ 106

ᇫ$FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH

505533+ 28

ᇫ1HWXQUHDOL]HGKROGLQJJDLQRQVHFXULWLHV

476507+ 30

ᇫ7UDQVODWLRQDGMXVWPHQW

3129

ᇞ2

2WKHU

ᇞ2

ᇞ3+04951+15,307

5,714+ 406

ᇫ1RQFRQWUROOLQJLQWHUHVWV

Total assets

5,307

5,714+ 406

Total liabilities and net assets

7Copyright©2018NAGASE&CO.,LTD.

Consolidated Cash Flows䕔Cashandcashequivalentsup¥3.1billion.Cashflowsfromoperatingactivitiesof¥21.0billion(¥24billioninprofitbeforeincometaxes),cashusedin
investingactivitiesof¥14.4billion(¥7.2billionusedinpurchasesoftangibleandintangiblefixedassets,¥5.9billionused inpurchaseofsharesof
subsidiariesresultinginachangeinscopeofconsolidation),cashusedinfinancingactivitiesof¥3.1billion(¥10billion usedinredemptionofbonds),andtheimpactoftranslationdifferences
Cash Flows
୺࡞ෆヂ

18/03

Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities(IIHF WV RIH[F KDQJHUDWHFKDQJHVRQF DVKDQG
F DVKbbHTXLY DOHQWV
Net increase (decrease) in cash and cashequivalents(100 millions of yen)

Profit before income taxes 䠇240
Depreciation and amortization/amortization of goodwill 䠇110
210
Working capital 䕦119
Income tax paid 䕦48
Purchases of property, plant and equipment 䕦㻢㻢Purchase of shares of subsidiaries resulting in change in scope ofŸ 144 consolidation 䕦59
Purchases of investment in securities 䕦16Purchases of intangible fixed assets included in other assets 䕦5
Proceeds from and Repayments of long-term loans payable 䠇㻡㻝Net increase (decrease) in commercial papers 䠇50
Ÿ 31 Net increase (decrease) in short-term loans payable 䠇36
Redemption of bonds 䕦100
Cash dividends paid 䕦42145

Ÿ 65

Ÿ 105

Ÿ1Ÿ532Ÿ 31

Cash and cash equivalents at beginning of the year

Japan 254 䚸Greater China 70 䚸 , ASEAN 35 䚸 Europe 18 䚸397
Americas 5 䚸 Other 13'HF UHDV HLQF DVKDQGFDV KHTXLY DOHQWV UHV XOWLQJIURPH[ F OXVLRQRIVXEVLGLDULHVIURP F RQV ROLGDWLRQŸ1㻯㼍㼟㼔 㻌㼍㼚 㼐㻌㼏㼍㼟㼔 㻌㼑㼝㼡 㼕㼢㼍㼘㼑 㼚 㼠㼟㻘㻌㼍㼠㻌㼑 㼚 㼐㻌 㼛㼒㻌㼠㼔㼑 㻌㼜㼑㼞㼕㼛㼐428

Copyright©2018NAGASE&CO.,LTD.

17/03

429
䠉Japan 226 䚸Greater China 105 䚸ASEAN 46 䚸Europe 30 䚸Americas 4 䚸Other 12397

8

FYE March 2019 Earnings Projections
䕔ForecastforcontinuedrecordͲhighsalesandprofitsnextyear
PLOOLRQVRI\HQ

18/03

18/03

Actual䠄A䠅

Vs.PY
䠄B/A䠅

FullYearForecas䠄B䠅

NetsalesOperatingincome

Ordinaryincome

Profitattributabletoowners
oftheparent

US$Exchangerate(periodaverage)##

ನRMBExchangerate(periodaverage)

#

#

ನ

Copyright©2018NAGASE&CO.,LTD.

9

Dividends
䕔Currentperiod:Totalannualdividendof¥40percommonshare(¥17interimdividend,¥18yearͲenddividend,¥5specialyearͲenddividend)䕔Nextperiod:Totalannualdividendof¥37,includinginterimdividendof¥18andyearͲenddividendof¥19(¥2percommonshareincrease)䠄䠂䚸yen䠅䠄䠂䠅SpecialDividend

45

1.8

40

1.6

35

1.4

30

1.2

25

1.0

20

0.8

150.6

100.4

50.2

0
Dividend per Share(left axis)
Payout Ratio(left axis)
DOE(right axis)

2018/03
2019/03䠄Forecast) 䠄Forecast)

10/03

11/03

12/03

13/03

14/03

15/03

16/03

17/03

16

22

24

26

28

30

32

33

40

37

27.3

22.1

36.0

23.4

30.5

33.7

33.0

40.4

29.3

24.9

1.08

1.42

1.52

1.52

1.50

1.44

1.46

1.48

1.69

1.49

0.0

*18/03 year-end dividend to be submitted for approval to general meeting of shareholders scheduled for June 2018

Copyright©2018NAGASE&CO.,LTD.

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

ThesepresentationmaterialscontainforwardͲlookingprojectionsbasedonassumptions,forecasts,and
plansasofMay7,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.