FYE March 2019
First Quarter
Financial Highlights
NAGASE & CO., LTD.
August 3, 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

Copyright © 2018 NAGASE & CO., LTD.

Consolidated Statements of Income■ Net sales : Higher, mainly due to strong performance in base areas (Functional Materials, Advanced Materials &Processing)■ Operating income ： Higher, mainly due to higher revenues and increased profitability at manufacturing subsidiaries(100 millions of yen)

17/06

18/06

ChangeOrig. Forecast

Vs. PY(full year)

Net sales

1,871

1,986+ 114

106%

8,280

Gross profit

240

265

+ 24110%

1,073<GP ratio>

12.9%

13.3%

+0.5%

－13.0%

SG&A expenses

184

195+ 10106%

818

Operating income

5669+ 13124%

255

Ordinary income

6376+ 12120%

275

Profit attributable to owners ofthe parent

3454+ 20158%

186@ 111.1@ 109.1@ 2.0 strong yen@105@ 16.2@ 17.1@ 0.9@ 16.5

US$ Exchange rate
(period average)
RMB Exchange rate
(period average)

weak yen【 Foreign exchange rate impact on18/6 net sales and operating income results 】
Net sales:＋¥1.6 billion (approx.)
Operating income: ＋¥70 million (approx.)

Copyright © 2018 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 48.6%)
Domestic & Overseas Sales (100 millions of yen, %)Domestic（Left axis）

2,000Overseas（Left axis）

Overseas Sales by Region (100 millions of yen, %)Overseas Net sales ratio（Right axis）

49.3%

Greater China

ASEAN

921
4634

48.6%
80040%

EuropeOther965

1,00050%

Americas763934(V:85%)(V:99%)

96(V:125%)

965

1,500
921

30%

600

261

284

(V:109%)1,00020%500

949

Copyright © 2018 NAGASE & CO., LTD.

502

1,020

017/06

400

18/06

10%

2000%

017/06511(V:102%)

18/06

V:Vs 17/06

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) additionalsales of U.S. distributor acquired in the second quarter of the prior 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

2,000
1,800
1,600

1,871

Electronics

Automotive & EnergyLife & Healthcare

Others1,986
222

207307341

1,400
1,200305

292

1,000
800

645

687

600
400200

403

440

17/06

18/06

0

Copyright © 2018 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: Higher profits, mainly due to strong performance of high‐margin businesses in Greater China

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

Advanced Materials & Processing

Electronics

Automotive & EnergyLife & Healthcare

Others/Corptrate

69505613127618172016221113△8△717/06

18/06(10)Copyright © 2018 NAGASE & CO., LTD.

6

Consolidated Balance Sheets■Assets: Increase of ¥13.6 billion, mainly due to increases in accounts receivable, inventories, and rising investments in securities due to gains
in fair market prices■Liabilities: Increase of ¥9.5 billion due to increases in and short‐term loans and current portion of CP■Net assets: Increase of ¥4.0billion, mainly due to profit attributable to owners of the parent of ¥5.4 billion and increase innet unrealized holding gain on securities■Shareholders’ Equity Ratio down 0.5 points to 52.8%

Assets
18/03

Liabilities and Net Assets
18/06

Change

18/03

Total c urrent as s ets

3,533

3,643+ 110

Total current liabilities

Cash and time deposits

433

418

ᇞ 14

Notes and accounts payable

2,259

2,315+ 55

Inventories

736

804+ 67

Other

103

105

+1

Total non-c urrent as s ets

2,161

2,187

Property, plant and equipment

672

Intangible fixed assets( 100 millions of y en)

18/06

Change1,929

2,110+ 180

1,180

1,195+ 14

Short-term loans and current portion of CP

480

601+ 121

Other

269

313+ 43

Total long-term liabilities

676

591

ᇞ 84+ 25

Long-term loans and Bonds

379

279

ᇞ 99

666

ᇞ5Net defined benefit liability

145

146+0410

401

ᇞ9

Other

152

166+ 14

Investments, other assets

1,078

1,118+ 40

Total liabilities

2,606

2,702+ 95

Investments in securities

1,004

1,048+ 44

Total net as s ets

3,088

3,128+ 40

74

70

ᇞ3

Shareholders’equity

2,502

2,523+ 21

Accumulated other comprehensive income

533

553+ 19Net unrealized holding gain on securities

507523+ 15Translation adjustment

2931+2Otherᇞ3ᇞ2+0Non-controlling interests5151

ᇞ05,694

5,830+ 136

Notes and accounts receivable

Other

Total assets

5,694

Copyright © 2018 NAGASE & CO., LTD.

5,830+ 136(Deferred tax liabilities, etc.)

Total liabilities and net assets

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

These presentation materials contain forward‐looking projections based on assumptions, forecasts, andplans as of August 3 , 2018. Actual earnings may differ from projections due to risks and uncertainties inthe future global economy, competitive landscape, currency exchange rates, etc.

Copyright © 2018 NAGASE & CO., LTD.