Nagase & Co., Ltd. · TSE:8012
Nagase & — Q1 FY2025 Earnings Presentation
34 slides from Nagase &'s earnings presentation, Aug 5, 2025
Slide 1: FY2025 First Quarter Financial Briefing
FY2025 First Quarter Financial Briefing NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 August 5, 2025 Copyright © 202５ NAGASE & CO., LTD.
Slide 2: Executive Summary
Executive Summary The trading business reported a decrease in profit, despite strong performance in the Electronics & Energy and Life & Healthcare segments, mainly due to weaker results in automobile-related business under Functional Materials and Mobility Performance overall was strong in the Prino
Slide 3: Contents
Contents ■ Consolidated Statements Income P４ ■ Gross Profit by Region P5 ■ Gross Profit by Business & Segment P6 ■ Operating Income by Business & Segment P7 ■ Segment Overview P8～P12 ■ Overview of Major Manufacturing Subsidiaries P13～P15 ■ Consolidated Balance Sheets P16 ■ Consolidated Cash Flows P1
Slide 4: Consolidated Statements Income
Consolidated Statements Income ▶ Gross profit increased due to efforts toward improving profit margin ▶ Operating income decreased due to M&A-related expenses and an increase in selling, general and administrative expenses, which was caused by an increase in retirement benefit expenses related to th
Slide 5: Gross Profit by Region
Gross Profit by Region ▶ Higher domestic profit stemming from an increase in domestic sales, mainly due to higher sales of food ingredients at Nagase Viita and formulated epoxy resins at Nagase ChemteX (including exports) ▶ Overseas profit declined, even as Greater China and ASEAN reported strong se
Slide 6: Gross Profit by Business & Segment
Gross Profit by Business & Segment ▶ Trading business reported a decrease in profit of roughly ¥0.4 billion, despite strong performance in the Electronics & Energy and Life & Healthcare segments, as the automobile-related business under Functional Materials and Mobility experienced weaker results ▶
Slide 7: Operating Income by Business & Segment
Operating Income by Business & Segment ▶ Trading business profit decreased approximately ¥1.5 billion due to a decrease in gross profit, posting M&A related expenses and the impact of an increase in retirement benefit expenses related to the amortization of actuarial differences ▶ Manufacturing busi
Slide 8: Segment Overview: Functional Materials
Functional Materials Segment Overview: Functional Materials ▶ Gross profit decreased primarily for the following reasons ・ Coating materials sales were lower due to weak demand automotive and architectural applications ・ Sales of raw materials for semiconductor materials decreased ▶ Operating income
Slide 9: Segment Overview: Advanced Materials & Processing
Advanced Materials & Processing Segment Overview: Advanced Materials & Processing ▶ Gross profits flat, primarily for the following reasons • Sales of resins decreased due to lower volume for office equipment and other applications in the electrical appliances and electronic industries; however, pla
Slide 10: Segment Overview: Electronics & Energy
Electronics & Energy Segment Overview: Electronics & Energy ▶ Gross profit increased primarily for the following reasons ・ Sales of semiconductor materials increased ・ Despite weakness in sales for mobile device applications, sales of Nagase ChemteX formulated epoxy resins increased with strong perf
Slide 11: Segment Overview: Mobility
Mobility Segment Overview: Mobility ▶ Gross profit decreased primarily for the following reasons ・ Despite a rise in volume, resin sales, which account for about half of gross profit, were flat, mainly due to the strengthening yen ・ Sales decreased for functional materials and functional components
Slide 12: Segment Overview: Life & Healthcare
Life & Healthcare Segment Overview: Life & Healthcare ▶ Gross profit increased primarily for the following reasons ・ Increased sales of intermediates and pharmaceutical raw materials ・ Nagase Viita posted increased sales, mainly for food ingredients and cosmetic materials ・ While the volume of food
Slide 13: Overview of Major Manufacturing Subsidiaries: Nagase ChemteX
Overview of Major Manufacturing Subsidiaries: Nagase ChemteX ▶ Gross profit increased primarily for the following reasons ・ Despite weakness in sales for mobile device applications, sales of formulated epoxy resins increased with strong performance for resins used in semiconductors for AI servers ・
Slide 14: Overview of Major Manufacturing Subsidiaries: Nagase Viita
Overview of Major Manufacturing Subsidiaries: Nagase Viita ▶ Gross profit increased primarily for the following reasons ・ Sales of food ingredients increased due to wider adoption, mainly in Japan ・ Sales of cosmetic materials increased due to strong performance in Japan Operating income increased d
Slide 15: Overview of Major Manufacturing Subsidiaries: Prinova Group
Overview of Major Manufacturing Subsidiaries: Prinova Group ▶ Gross profit decreased primarily for the following reasons ・ While the volume of food ingredients increased, sales were lower and the gross margin decreased due to a downturn in market prices ・ The manufacturing business is on the path to
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets ▶ Effective use of NAGASE Group funds for investments in growth and working capital ▶ Use of interest-bearing debt for the acquisition of the SACHEM business in Asia 100 millions of yen 2025/03 2025/06 Change Details Total Current Assets 5,601 5,483 (117) (Cash&deposits)
Slide 17: Consolidated Cash Flows
Consolidated Cash Flows ▶ Total of ¥6.1 billion provided from financing CF in using interest-bearing debt for the acquisition of the SACHEM business in Asia; total of ¥18.9 billion used in investing CF ▶ Cash and cash equivalents decreased ¥16.4 billion due to the effective use of internal group fun
Slide 18: FY2025 Earnings Projection (No Change)
FY2025 Earnings Projection(No Change) ▶ Record-high profits expected at all profit measures ▶ Semiconductor-related businesses likely to perform well, driven by a moderate recovery in market conditions and higher demand for AI server semiconductors ▶ Resin sales shift to more profitable products as
Slide 19: FY2025 Earnings Projection By Segment (No Change)
FY2025 Earnings Projection By Segment(No Change) ▶ Gross profit to increase in Functional Materials due to higher sales of raw materials for coating materials and semiconductor materials, while higher general and administrative expenses to reduce operating income ▶ Advanced Materials & Processing ex
Slide 20: FY2025 Earnings Projections by Major Manufacturing Subsidiaries
FY2025 Earnings Projections b y M a j o r M a n u f a c t u r in g S u b s i d i a r ie s ( N o C h a n ge ) ▶ Nagase ChemteX: Higher gross profit due to continued strong sales of formulated epoxy resins for AI server semiconductors, following previous year performance. Operating income to increase
Slide 21: Shareholder Returns
Shareholder Returns ▶ We plan to pay ¥95 per share for the full year, consisting of an interim dividend of ¥45 per share and a year-end dividend of ¥50 per share (forecasting a 16th consecutive year of dividend increases) ▶ No changes to the 100% total return ratio policy in fiscal 2025, continuing
Slide 22: IR Materials and Inquiries
■IR Materials for the first meeting: NEW https://www.nagase.co.jp/english/ir/library/pdf/factbooks/20250804-1.pdf ■NAGASE Group Investor Relations Website: https://www.nagase.co.jp/english/ir/ ■Inquiries: https://www.nagase.co.jp/english/contact/ir/ These presentation materials contain projections b
Slide 23: Management Conscious of Capital Costs and Share Prices
Review Management Conscious of Capital Costs and Share Prices We continue to implement initiatives in the final year of the current medium-term management plan Policies to Enhance Corporate Value Execute growth, financial, and capital strategies set forth in the Medium-Term Management Plan ACE 2.0 C
Slide 24: Business Environment Surrounding NAGASE Segments
Review Business Environment Surrounding NAGASE Segments Industry FY2024 Trends FY2025 Trends Segment Automotive applications to grow slightly; Growth in both automotive and construction construction applications unlikely to recover; Coatings applications was sluggish, remaining generally overall per
Slide 25: Sales, Gross Profit and Operating Income by Quarter
Sales, Gross Profit and Operating Income by Quarter 100 millions of yen FY2025 Achiev Quarterly results Forecast ement FY2024 １Q ２Q ３Q ４Q YTD Actual Sales FY2025 2,373 2,373 9,550 25% FY2024 2,392 2,417 2,370 2,269 2,392 9,449 YoY% (0.8%) (0.8%) 1.1% Gross profit FY2025 443 443 1,810 24% FY2024 437
Slide 26: Growth Strategies for the Future
Reform of Profit Structure Growth Strategies for the Future Make proactive investments in Focus Area of manufacturing (across the three areas of food, semiconductors, and life sciences) to expand profit scale and profit margin over the medium to long term Potential investments in Focus Area and Deve
Slide 27: Efforts in the Food Area -Prinova Group Status-
Reform of Profit Structure Efforts in the Food Area -Prinova Group Status- The growth trend in the sports nutrition market remains unchanged We are proactively advancing efforts to establish a profit-contributing structure at the Utah plant Manufacturing Trading ・Work to acquire new customers with o
Slide 28: Efforts in the Semiconductor Area
Reform of Profit Structure Efforts in the Semiconductor Area The Focus Area works to establish a de facto standard in molding compounds for advanced semiconductors, while the Base Area expands commercial rights Focus Area ・Establish position as the de facto standard in molding compounds (LMC/a- NAGA
Slide 29: Efforts in the Life Science Area
Reform of Profit Structure Efforts in the Life Science Area Decided to add diagnostics business through M&A, Aim to expand business by developing new materials in the Develop Area Acquire Diagnostics and Other Businesses From Focus Area Asahi Kasei Pharma Corporation Acquire enzyme production busine
Slide 30: Improvement Areas FY2024 Progress
Reform of Profit Structure Review Improvement Areas FY2024 Progress Improved profit margin in FY2024, with operations aimed at achieving zero losses in FY2025 and beyond Improvement targets and initiatives 1. Operating loss among subsidiaries and equity in losses of affiliates Develop and implement
Slide 31: Cash Allocation in FY2025
Reform of Corporate Culture Review Cash Allocation in FY2025 Leverage interest-bearing debt to pursue growth investments and shareholder returns Cash In Cash Out Growth Investments Operating Execute announced M&A CF Growth Consider M&A deals in Asset Replacement ¥26.5～ Investments the range of sever
Slide 32: Prinova Group Business Overview
Review Prinova Group Business Overview Trading Manufacturing・Processing Aromas Ingredients Solutions Nutrition Flavors Reliable supply of Distribution of more Production of One-stop- Reliable flavors aromas and than 2,000 food premixes, combining solutions from developed by essential oils to ingredi
Slide 33: TOPICS: Turnaround of Prinova Nutrition
TOPICS：Turnaround of Prinova Nutrition * Cost reduction through efficiency improvements and top-line growth to drive early profitability in the Nutrition business (Utah and Tennessee factories) Recover Operating Profit of Prinova Group to a growth trajectory and reaccelerate profit contribution *Nut
Slide 34: Major Cash Inflows and Outflows for FY2021-FY2024
Review Major Cash Inflows and Outflows for FY2021-FY2024 100 millions of yen 4-years 4-years Cash In FY2021 FY2022 FY2023 FY2024 Cumulative Cash Out FY2021 FY2022 FY2023 FY2024 Cumulative Total Total Operating CF after Dividends and share 525 363 476 515 1,879 124 139 178 270 713 adjustments* buybac