FYE March 2019
Financial Highlights
NAGASE & CO., LTD.
May 7, 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

Consolidated Cash Flows8

FYE March 2020 Earnings Projections

9Dividends

10Copyright © 2019 NAGASE & CO., LTD.

Consolidated Statements of Income✔ NAGASE recorded record highs for sales and profits(100 millions of yen)

18/03

19/03

ChangeVs. PYOrig. Forecast

Achievement

Net sales

7,839

8,077+ 238

103%

8,28098%

Gross profit

1,026

1,054+ 27103%

1,07398%<GP ratio>

13.1%

13.1%

△ 0.0%

－

13.0%

－

SG&A expenses

785802+ 16102%

818－

Operating income

241252+ 11105%

255

99%

Ordinary income

259

266

+6103%

27597%

Profit attributable to owners ofthe parent

171201+ 29117%

186108%@ 110.85@ 110.92@ 0.07

weak yen@105－@ 16.7@ 16.5@ 0.2 strong yen@ 16.5－

US$ Exchange rate
(period average)
RMB Exchange rate
(period average)【 Foreign exchange rate impact on19/03 net sales and operating income results 】
Net sales:＋¥1.6 billion (approx.);Operating income: ＋¥400million

Copyright © 2019 NAGASE & CO., LTD.

3

Net Sales by Region (Domestic, Overseas)■In addition to domestic businesses, performance was strong overseas, particularly in ASEAN and the Americas (overseas
ratio of total sales at 48.9%)
Overseas Sales by Region (100 millions of yen, %)Domestic & Overseas Sales (100 millions of yen, %)Greater China

Domestic（Left axis）

Overseas（Left axis）

Overseas Net sales ratio（Right axis）

3,500

8,000
49.6%
7,000
6,000

4,000

3,885

50%
48.9%
3,951

ASEAN

3,885
199
141365

Americas

Europe

Other

3,951
(V:85%)

168
152(V:108%)394(V:108%)

3,000

40%
2,500

1,103

1,181
(V:107%)5,000
30% 2,000
4,000
1,500

20%

3,000
2,000

3,954

1,000

4,126

2,074

2,054
(V:99%)

10%
500

1,000
00%
18/03

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19/03

018/03

19/03

V:Vs 18/03

4

Net Sales: Two-Year Comparison (by Segment)■Functional Materials : Higher sales, driven by (1) increase in sales of coating raw materials and urethane materials, spurred bystrong automotive production and naphtha price increases; (2) increased sales of electronics chemicals, etc.; and (3) acquisitionof a US‐based distributor in the second quarter of the prior consolidated fiscal year.
■Advanced Materials & Processing : Higher sales in Japan and overseas, mainly due to increased sales of plastics and digital print
processing materials

Net Sales by Segment (100 millions of yen)
Functional Materials

Advanced Materials & Processing

8,000
7,000
6,000
5,000

7,839

Electronics

Automotive & EnergyLife & Healthcare

Others

8,077865

907

1,297

1,392

1,293

1,223

2,628

2,752

1,749

1,796

18/03

19/03

4,000
3,000
2,000
1,000
0
*1 The Company reclassified reportable segments in the current fiscal year (certain businesses in the Functional Materials segment reclassified to the Life & Healthcare
segment). Results for fiscal 2018 have been reclassified for comparison.
*2 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)■Advanced Materials & Processing: Higher profits, mainly due to improved profitability among manufacturing subsidiaries inJapan and overseas■Electronics:Lower profits due to lower sales of photolithography materials, equipment‐related and display‐related materials

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

Advanced Materials & Processing

300
270240210180150

241
422489

Electronics

Automotive & EnergyLife & Healthcare

Others/Corptrate

252
4630
74120
90

6780

60
30

5154

△33

△3418/03

19/030(30)*1 The Company reclassified reportable segments in the current fiscal year (certain businesses in the Functional Materials segment reclassified to the Life & Healthcaresegment). Results for fiscal 2018 have been reclassified for comparison.
*2 As of April 1, 2019, the Automotive & Energy Segment has been renamed the Mobility & Energy Segment

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6

Consolidated Balance Sheets■Shareholders’ Equity Ratio down 0.9 points to 54.2%
Assets
18/03

Liabilities and Net Assets
19/03

Change

18/03

Total c urrent as sets

3,533

3,658+ 125

Total current liabilities

Cash and time deposits

433440+7Notes and accounts payable

2,259

2,304+ 44Inventories

736

810+ 73

Other103

102△0Total non-c urrent ass ets

2,161

2,015

Property, plant and equipment

672

Intangible fixed assets( 100 millions of y en)

19/03

Change1,929

2,018+ 88

1,180

1,172

△7

Short-term loans and current portion of CP

480

579+ 99

Other269

266△2Total long-term liabilities

676

528

△ 147

△ 146

Long-term loans and Bonds

379

275

△ 103

664

△7Net defined benefit liability

145124△ 20410372△ 38Other152128△ 23Investments, other assets

1,078977△ 100

Total liabilities

2,606

2,547

△ 59

Investments in securities

1,004902△ 101

Total net ass ets

3,088

3,126+ 387475+0

Shareholders’equity

2,502

2,628+ 126

Accumulated other comprehensive income

533447△ 85

Net unrealized holding gain on securities

507418△ 89

Translation adjustment

2932

△3

Other

△3△2+0Non-controlling interests

5149△25,694

5,673

△ 21

Notes and accounts receivable

OtherTotal assets

5,694

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5,673

△ 21(Deferred tax liabilities, etc.)

Total liabilities and net assets

7

Consolidated Cash Flows
Cash Flows

19/03

Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities

Effects of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of the year
Dec reas e in c as h and c as h equiv alent s res ult ing
f rom ex c lus ion of s ubs idiaries f rom c ons olidat ion

Cash and cash equivalents, at end of the period

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(100 millions of yen)

18/03
Profit before income taxes ＋282
Depreciation and amortization other than amortization of goodwill,
173 amortization of goodwill +111
Working capital ▲125
Income tax paid ▲48
Proceeds from sales of investments in securities +54▲ 73

Purchases of tangible and intangible fixed assets ▲107
Purchases of investment in securities ▲25

Net increase (decrease) in commercial papers ＋70
Repayments of long-term loans ▲111
▲ 89
Cash dividends paid ▲51210▲ 144▲ 311▲11232428

Japan 226 、Greater China 105 、 , ASEAN 46 、 Europe 30 、Americas 4 、Other 12▲0440397▲1Japan 225 、Greater China 123 、ASEAN 47 、Europe 21 、Americas 3、Other 184288FYE March 2020 Earnings Projections■Forecast for continued record‐high sales and profits next year
(100 millions of yen)

19/03

20/03

Actual（A）

Full Year Forecas（B）

Vs. PY（B/A）

Net sales

8,077

8,500

105%

Operating income

252

260

103%

Ordinary income

266

270

101%

Profit attributable to ownersof the parent201

205

102％

US$ Exchange rate
(period average)@110.9@110.0―RMB Exchange rate
(period average)

@16.5

@16.0

―

Copyright © 2019 NAGASE & CO., LTD.

9Dividends■Current period: Total annual dividend of ¥42 per common share (¥18 interim dividend, ¥24 year‐end dividend)■Next period: Total annual dividend of ¥44 per common share (¥22 interim dividend, ¥22 year‐end dividend)*1 FYE March 2018 dividends include a special dividend of ¥5 per share.
*2 19/03 year-end dividend to be submitted for approval to general meeting of shareholders scheduled for June 2019

Copyright © 2019 NAGASE & CO., LTD.

10

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

These presentation materials contain forward‐looking projections based on assumptions, forecasts, andplans as of May 7 , 2019. Actual earnings may differ from projections due to risks and uncertainties in thefuture global economy, competitive landscape, currency exchange rates, etc.

Copyright © 2019 NAGASE & CO., LTD.