Financial Highlights

NAGASE&CO.,LTD.
August 4,2022

Copyright © 2022 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 2023 First Quarter

Contents■ Consolidated Statements Income

P3■ 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 2023 Earnings Projection■ Shareholder Returns

Copyright © 2022 NAGASE & CO., LTD.

P14～P15P16

Consolidated statements income▶ Gross profit
・ Overall gross profit reached a new quarterly record due to strong growth in Life & Healthcare, as well as increases in Functional
Materials and Electronics & Energy▶ Operating income
・ Selling, general and administrative expenses increased due to higher logistics costs and increased activities; however,
the increase in gross profit exceeded this increase in expenses, and operating income also reached a quarterly record high
▶ Profit attributable to owners of the parent
・ Profit for the period increased due to the increase in profits at every measure through ordinary income
100 millions of yen

21/06

22/06

ChangeVs.PY

Forecast

Achievement（Full year）

Sales

1,843

2,195+ 351

119%

ーー

Gross profit

345399

+ 53

115%

1,590

25%

<GP ratio>

18.8%

18.2%

(0.6pt)－ー－

SG&A expenses

248290+ 41117%

1,210－

97108+ 11112%

38029%

106115+8108%

39030%

7179+7111%

285

28%@ 109.5@ 129.7@ 20.2 Weak yen@120.0@ 16.9@ 19.6@ 2.7 Weak yen@18.5

Operatingincome
Ordinaryincome
Profit Attributableto owners of theparent
US$ Exchange rate
(period average)
RMB Exchange rate
(period average)※ Offset to sales and cost of sales from revenue recognition standards: June 2021, -¥58.5 billion; June 2022, -¥65.1 billion※ Impact from foreign exchange: Gross profit, +¥2.4 billion; Operating income, +¥0.8 billion

Copyright © 2022 NAGASE & CO., LTD.

3

Gross Profit By Region▶ Higher profit both domestic and overseas▶ Domestic profit increased due to an increase in sales for precision processing-related materials and electronics chemicals tosemiconductor-related businesses▶ Increase overseas due to strong performance of the Prinova Group in the Americas and Europe, and an increase in Greater China,
despite the lockdowns, due to the weaker yen

Overseas gross profit By Region(100 millions of yen)Domestic & Overseas Gross profit(100 millions of yen)
400

350

300

250

Total 345

Total 399

100%

Overseas216

90%

Total 165
Overseasgross profit
ratio
54.2%

70%
150

Europe
1860%

Other
3

Americas86

Americas
5750%

200

Other2Europe
32

200

80%

Overseas
165

Overseasgross profit
ratio
48.0%

Total 216

10040%
150
ASEAN
3030%
100

Domestic180

Domestic
182

5020%

50

10%

00%
21/06

22/06

ASEAN
37

Greater
China
56

Greater
China
57

21/06

22/06

0※Domestic figures under Domestic & Overseas Gross Profit include inter-regional adjustments
Copyright © 2022 NAGASE & CO., LTD.

4

Gross Profit By Business & Segment▶ Functional Materials sales increased in areas like electronics chemicals for the electronics industry, including semiconductor-related products▶ Despite the impact of the weak yen on resin sales, Advanced Materials & Processing profitability decreased due to a reactionary
decline stemming from increased profit ratios in connection with soaring market conditions in the year-ago period▶ Electronics & Energy sales increased for products related to precision processing materials for semiconductors▶ Life & Healthcare sales were strong for nutritional materials and manufacturing and processing in the Prinova Group

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

Gross Profit By Business & Segment (100 millions of yen)
Total 399

400

Corporate&Others(0)

Total 345

300

Manufacturing137

Life & Healthcare
36

Total 399

Total 345
Manufacturing169

Life &Healthcare
111

Life &Healthcare147Electronics& Energy
6

Advanced
Materials &Processing(1)

Mobility 32
Mobility 29

200
Electronics &Energy
72

100

Trading& Other
208

Trading& Other
229

0Electronics &Energy
78

History of Gross Profit(100 millions of yen)
399

Advanced
Materials& Processing
81

Functional
materials
48

Functional
materials
58

345

353

341

353

300
200
1000000

By Business

By Business

By Segment

By Segment

21/06

22/06

21/06

22/06

Copyright © 2022 NAGASE & CO., LTD.

22/0６

2１/0６

400
Advanced
Materials& Processing
82

Mobility
２

1Q

2Q
22/03

3Q
23/03

4Q

5

Operating Income by Business & Segment▶ Selling, general and administrative expenses increased due to higher logistics costs and increased activities; however,
the increase in gross profit exceeded this increase in expenses reaching a quarterly record high▶ Advanced Materials & Processing recorded lower profit, partly due to a reactionary decline from the stemming from increased
profit ratios in connection with soaring market conditions in the year-ago period, as well as higher selling, general andadministrative expenses▶ Life & Healthcare recorded a significant profit increase due to strong sales of nutritional materials by the Prinova Group▶ We continue to invest for sustainable future growth, including in DX-related areas
Operating Income by Business & Segment(100 millions of yen)

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

Total 108120
Total 108
100

Total 97

80

Manufacturing
33

Manufacturing
44

Life &Healthcare
27

Mobility 9
Electronics &Energy
25

60

40

Total 97

Trading& Other
63

Trading& Other
64

Advanced
Materials& Processing
32

20
Functional
materials
19Life &Healthcare
41

(20)

By Business
21/06

By Business
22/06

Copyright © 2022 NAGASE & CO., LTD.

By Segment
21/06

Electronics& Energy
0

Mobility 9

AdvancedMaterials &Processing(７)

Electronics &Energy
26
AdvancedMaterials& Processing
25
Functionalmaterials
230
Corporate&Others(18)

Corporate&Others(0)

Corporate&Others(18)

By Segment
22/06

Mobility(0)

22/0６

2１/0６

History of Operating Income(100 millions of yen)
120
100

108
97

97
86
71

80
60
40
200000
1Q

２Q
22/03

3Q

4Q

23/03

6Functional Materials Segment Operating Income Overview▶ Sales increased for coating and urethane raw materials, due in part to soaring market prices and the weakening of the yen▶ Sales increased in areas like electronics chemicals for the electronics industry, including semiconductor-related products, as well
as for raw materials for industrial oil solutions and resins▶ Profit increased year on year due to steady demand, mainly from semiconductor-related industries, market conditions, and theimpact of the weaker yen

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）

23

Total 23
Manufact
uring 320
19

Total 19

1818

Manufact
uring 3

Trading &Other
16

Trading &Other20

0
21/06

22/06

1Q２Q22/03

Copyright © 2022 NAGASE & CO., LTD.

03Q
23/03

04Q

7

Advanced material & Processing Segment Operating Income Overview▶ Despite the impact of the weak yen on resin sales to the office equipment, appliance, and video game device market, profitability
decreased due to a reactionary decline stemming from increased profit ratios in connection with soaring market conditions in theyear-ago period▶ Digital print processing materials sales were weak due to sluggish demand▶ Profit was lower year on year due to a decrease in resin sales, lower profitability in our manufacturing businesses, and an increase
40in selling, general and administrative expenses

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
Total 32

Manufact
uring 232
31

Total 25

Manufact
uring 025
24

20

19
Trading &Other
30

Trading &Other
25

0000
21/06

Copyright © 2022 NAGASE & CO., LTD.

22/06

1Q

２Q
22/03

3Q

4Q

23/03

8

Eｌectronics & Energy Segment Operating Income Overview▶ Sales increased for products related to precision processing materials for semiconductors▶ Sales of formulated epoxy resins were strong for semiconductor applications, but slow for mobile devices▶ We are building a system for a next-generation communications-related business, aiming for medium- to long-term growth after
upfront development costs▶ Profit increased year on year due to continued strong performance in semiconductor-related product businessHistory of operating income （100 millions of yen）

Operating income by business（100 millions of yen）

29
Total 25

Total 26
26
25

Manufacturing
8

Trading &
Other
17

21/06

Manufact
uring
624
23

Trading &
Other
19

22/06

1Q

２Q
22/03

Copyright © 2022 NAGASE & CO., LTD.

3Q
23/03

4Q

9

Mobility Segment Operating Income Overview▶ Sales increased for resins due to the weak yen, etc., despite lower automobile production▶ Sales increased for functional materials and functional components for interior and exterior fittings and electrification▶ Although gross profit increased, profit decreased year on year, due in part to an increase in selling, general and administrative
expenses

History of operating income （100 millions of yen）

Operating income by business（１００ millions of yen）

11Total 9

Total 9109

Trading &Other 9Trading &Other 921/06

22/06

1091Q

２Q
22/03

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3Q
23/03

4Q

10

Life & Healthcare Segment Operating Income Overview▶ Sales of Prinova Group nutrition-related materials were strong and profitability improved▶ Sales of food ingredients (mainly TREHATM) and pharmaceutical raw materials increased; however, sales of cosmetics materials(mainly AA2GTM) decreased due to lower demand overseas and other factors▶ We recorded a substantial increase in profit year on year, mainly due to the strong business performance of the Prinova Groupand the impact of the weaker yen

History of operating income （100 millions of yen）

Operating income by business（100 millions of yen）
Total 41

41

Total 27

27
Manufact
uring
33

23

22
20

Manufacturing
19

Trading &Other 7

Trading &Other 7

21/06

22/06

1Q

２Q
22/03

Copyright © 2022 NAGASE & CO., LTD.

3Q
23/03

4Q

11

State of Major Manufacturing Subsidiaries▶ Nagase ChemteX: Lower profit, despite strong semiconductor-related sales, due to weak sales of formulated epoxy resins
for use in mobile devices▶ Hayashibara: Lower profit due to lower sales of cosmetic material AA2GTM and lower profitability of food material TREHATM,
stemming from higher raw materials and energy prices▶ Prinova Group: Higher profit due to higher sales of nutrition-related materials stemming from increased demand, as well as
improved profitability

100 millions of yen

21/06
Nagase ChemteX
Corporation

Hayashibara
Co.,Ltd.

Copyright © 2022 NAGASE & CO., LTD.

ChangeVs.PY

Sales

7272

0101%

Gross profit

2422(2)

91%

Operating income

128(3)

70%

Sales

6671

4106%

Gross profit

2828(0)98%

Operating income1311(1)88%Goodwill amortization etc.

77-100%Operating income after
amortization burden

53(1)

72%

273

459

186

168%

Gross profit

538532161%

Operating income

1833

14180%

Goodwill amortization etc.

450110%Operating income after
amortization burden

1328

14204%

Sales

Prinova Group

22/06

12Consolidated Balance Sheets▶ Current assets: Increase in working capital due to overall strong performance▶ Net assets: Increase, despite dividend payments and share buyback, due to profit for the period and an increase in foreign
currency translation adjustments due to the weaker yen▶ NET D/E ratio: Increased to 0.41 times due to an increase in short-term borrowings for funds as a result of an increase
in working capital

100 millions of yen

22/03

22/06

ChangeDetailesTotal Current Assets

5,142

5,527

385

(Cash&deposits)

542

521

(20)

(Trade account receivbable)

2,898

3,038

139

(Inventories)

1,575

1,774

198

2,254

2,292

37

756

737

(18)

Total assets

7,397

7,820

422

Current Liab.

3,078

3,265

187

1,490

1,518

28

767

890

Total Liab.

3,846

4,156

309

Shareholders' equity

2,988

3,010

22Accum. Other Comprehensive Income

45453581

Non-controlling interest

108

117

8

Total net assets

3,550

3,663

112

Working capital

2,983

3,294

310

Shareholders' equity ratio

46.5%

45.4%

(1.2%)

0.33

0.41

0.09

Total non-current assets(Investments in security)(Trade account payable)
Non-current Liab.

NET D/E ratio

Copyright © 2022 NAGASE & CO., LTD.

Short-term loans/CP+3０3、Current Portion of Bonds(100)122 Corporate Bonds+100

Translation adjustment+93、Appraisal Loss on Investment Securities(1５)13FYE March 2023 Earnings Projection(No change)▶ Semiconductor and food-related businesses, which are focus businesses under the ACE 2.0 medium-term management plan,
will continue to expand market share and deliver strong performance▶ We expect the impact of COVID-19 on economic activities to be limited due to trends toward deregulation in various countries▶ We also expect a certain degree of supply chain disruption and continuing sharp rises in crude oil and related chemical prices▶ Direct dealings to Russia and Ukraine are negligible, and have limited impact on our business▶ Despite the many uncertainties in the external environment, we currently expect to record record-high profits for a second
consecutive fiscal year

100 milions of yen

22/03
Actual23/03
Forecast

ChangeVs.PY

Gross profit

1,394

1,590

195

114%

SG&A expenses

1,042

1,210

167116%

Operating income

352

380

27108%

Ordinary income

364

390

25107%

Profit attributable toowners of the parent

259

285

25110%

US$ Exchange rate
(period average)@ 112.4@ 120.0

RMB Exchange rate
(period average)@ 17.5@ 18.5※Impact on operating income of 1 yen change in exchange rate: US$ approx. 100 million yen, RMB approx. 400 million yen
Copyright © 2022 NAGASE & CO., LTD.

14

FYE March 2023 Earnings Projection By segment (No change)▶ We expect the semiconductor-related products business, centered on Functional Materials and Electronics, to experience strong
performance based on our projections of strong demand, particularly for telecommunications applications▶ Advanced Materials & Processing and the resins business within Mobility should see normalizing profit ratios due to a high resinmarket, and performance should be strong due to increasing demand and expanded sales of high-performance products▶ We expect further growth in the nutrition-related business of Life & Healthcare-related Prinova Group due to expanding
consumption and rising health consciousness in Europe and the Americas▶ We expect cost increases in Corporate & Others due to office relocation, etc.

100 millions of yen

Functional Materials

22/03 Actual

23/03 forecast

ChangeVs.PY

Gross profit

198

221

22112%

Operating income

7883

4106%

Advanced Materials& Processing

Gross profit

323

343

19106%

Operating income

108117

8108%

Electronics& Energy

Gross profit

29732527109%

Operating income

10211512112%

Gross profit

12714214112%

41442106%

447

557

109124%94112

17119%

120168%

(72)

(91)

(18)

ー1,394

1,590

195

114%

352

380

27108%

MobilityLife & Healthcare

Corporate & Others

Total

Copyright © 2022 NAGASE & CO., LTD.

Operating income
Gross profit
Operating income
Gross profit
Operating income
Gross profit
Operating income

15

Shareholder Returns▶ The dividend per share for fiscal 2022 is planned to be 60 yen per year, 30 yen in the interim, 30 yen at the end of the year
(Increase in dividends for an expected 13th consecutive fiscal year )▶ We are proceeding as planned with the repurchase of ¥6 billion in treasury stock, as resolved in February 2022
(Acquired 1.8 billion yen in the first quarter of the current fiscal year, and the cumulative amounts of acquisitions as of the endof June 2022 was 2.8 billion yen)

Total Dividend

Stock buy-backTotal Payout ratio%

51.0

millions of yen

48.3

50.0

15,00012,00033.7

42.4

12,520

39.5
35.6

36.0

35.2

12,085

40.0

5,041

30.0

33.0

30.5
6,006

9,000
6,799
6,000

5,269
3,811

3,557

4,064

7,186

6,643

1,956

5,456

952

5,023

5,230

5,456

5,691

1,776

20.0

1,107

3,000

6,514

7,044

3,557

3,811

4,064

4,162

14/03

15/03

16/03

17/03

18/03

19/03

20/03

21/03

22/03

23/03
（Forecast）

¥２8

¥30

¥32

¥33

¥40

¥42

¥44

¥46

¥54

¥60

0

Dividend pershare

10.00.0※ 2３/03 year-end dividend to be submitted for approval to the 108th general meeting of shareholders scheduled for June 202３.

Copyright © 2022 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, 202２.
Actual earnings may differ from projections due to risks and uncertainties in
the future global economy, competitive landscape, currency exchange rates,etc.

Copyright © 2022 NAGASE & CO., LTD.