Nagase & Co., Ltd. · TSE:8012
Nagase & — Q3 FY2023 Earnings Presentation
19 slides from Nagase &'s earnings presentation, Feb 6, 2024
Slide 1: FY2023 Third Quarter Financial Highlights
FY2023 Third Quarter Financial Highlights NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 February 6, 2024 Copyright © 2024 Nagase & Co., Ltd.
Slide 2: Contents
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 ■ FY2023 Earnings
Slide 3: Consolidated statements income
Consolidated statements income ▶ Gross profit : Sales decreased, but profits increased mainly due to strong performance of manufacturing subsidiaries with high profitability ▶ Operating income : Gross profit increased, but profit decreased due to increases in selling, general and administrative expe
Slide 4: Gross Profit By Region
Gross Profit By Region ▶ Higher profit both domestic and overseas ▶ Increase in domestic business sales, mainly due to higher sales of cosmetic materials and formulated epoxy resins ▶ Overseas profit increased due to the impact of the weaker yen and recovery in profitability of food ingredient busin
Slide 5: Gross Profit By Business & Segment
Gross Profit By Business & Segment ▶ Functional Materials sales declined due to lower sales of coating materials and raw materials for semiconductor-related and other materials for the electronics industry, as well as lower profitability in the digital print processing materials manufacturing busine
Slide 6: Operating Income by Business & Segment
Operating Income by Business & Segment ▶ Functional Materials and Advanced Materials & Processing posted lower operating income due to a decrease in gross profit ▶ Electronics & Energy posted higher operating income with increased gross profit ▶ Life & Healthcare recorded higher gross profit; howeve
Slide 7: Functional Materials Segment Operating Income Overview
Functional Materials Segment Operating Income Overview ▶ Overall sales of coating materials decreased due to sluggish sales for mainly architectural applications, despite a recovery in applications for the automobile and other industries ▶ Sales decreased for raw materials for the electronics indust
Slide 8: Advanced Materials & Processing Segment Operating Income Overview
Advanced Materials & Processing Segment Operating Income Overview ▶ Lower profit due to decreased demand for resin sales in the office equipment, appliance, and video game device market, as well as the impact of inventory adjustments by customers ▶ The manufacturing business returned to profit due t
Slide 9: Electronics & Energy Segment Operating Income Overview
Eｌectronics & Energy Segment Operating Income Overview ▶ Despite weakening semiconductor market conditions, sales of materials to the semiconductor industry increased due to growth in product sales ▶ Sales of formulated epoxy resins increased mainly for server applications and mobile device applicat
Slide 10: Mobility Segment Operating Income Overview
Mobility Segment Operating Income Overview ▶ Sales increased for resins, mainly due to an increase in automobile production and expanded market share to existing customers ▶ Sales increased in functional materials and functional components for interior and exterior fittings and electrification ▶ Hig
Slide 11: Life & Healthcare Segment Operating Income Overview
Life & Healthcare Segment Operating Income Overview ▶ Overall Prinova Group sales increased mainly due to operations of the new plant in Utah ▶ Hayashibara posted increased sales, mainly in cosmetic material ▶ Although we recorded higher gross profit, profits decreased year on year due to increased
Slide 12: State of Major Manufacturing Subsidiaries
State of Major Manufacturing Subsidiaries ▶ Nagase ChemteX : Despite the transfer of the biochemicals business to Hayashibara, profit rose due to increased sales of highly profitable formulated epoxy resins ▶ Hayashibara : Profits increased due to progress made to pass on the soaring prices of raw m
Slide 13: Consolidated Balance Sheets
Consolidated Balance Sheets ▶ Current assets : Decrease due to reduced inventories ▶ Net assets : Increase, despite dividend payments and share buybacks, as we posted a profit for the period, as well as increases in net unrealized holding gain on securities and translation adjustments due to the wea
Slide 14: FY2023 Earnings Projection (No Change)
FY2023 Earnings Projection(No Change) ▶ Although sales decreased due to sluggish resin sales, we expect gross profit to increase due to improved profitability of manufacturing subsidiaries and strong segment sales ▶ Overall, selling, general, and administrative (SG&A) expenses exceeded the increase
Slide 15: FY2023 Earnings Projection By Segment (No Change)
FY2023 Earnings Projection By segment(No Change) ▶ Sales and profits decreased in Functional Materials due to lower sales of coating materials and raw materials for semiconductor-related and other materials for the electronics industry, as well as deteriorating profitability in the digital print pro
Slide 16: FY2023 Earnings Projection By Major Manufacturing Subsidiaries
FY2023 Earnings Projection By Major Manufacturing Subsidiaries (No Changed) ▶ Nagase ChemteX : While sales of highly profitable formulated epoxy resins were strong, sales decreased while profits increased mainly due to the transfer of the biochemicals business ▶ Hayashibara : Operating income increa
Slide 17: Shareholder Returns
Shareholder Returns ▶ We plan to pay an interim dividend of ¥40 per share and a year-end dividend of ¥40 per share for an annual dividend of ¥80 per share for fiscal 2023 (expected 14th consecutive fiscal year of dividend increases) ▶ The repurchase of ¥8 billion in treasury stock, resolved in May 2
Slide 18: Remarks: Changes to business segment classification
Remarks: Changes to business segment classification (implemented on October 1, 2023) Functional Materials Performance Chemicals Dept. Performance Chemicals Dept. Integrated Speciality Chemicals Dept. Speciality Chemicals Dept. Advanced Materials Colors & Advanced Processing & Processing Dept. Integr
Slide 19: Inquiries and Investor Relations website
■Inquiries: https://www.nagase.co.jp/english/contact/ir/ ■NAGASE Group Investor Relations Website: https://www.nagase.co.jp/english/ir/ These presentation materials contain projections based on forward-looking assumptions, forecasts, and plans as of February 6, 2024 Actual earnings may differ from p