Nagase & Co., Ltd. · TSE:8012
Nagase & — Q1 FY2023 Earnings Presentation
17 slides from Nagase &'s earnings presentation, Aug 3, 2023
Slide 1: FY2023 First Quarter Financial Highlights
FY2023 First Quarter Financial Highlights NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 August 3, 2023 Copyright © 2023 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 : Net sales increased due to the weaker yen, but gross profit margin declined due to lower profitability at certain manufacturing subsidiaries, etc., resulting in lower gross profit ▶ Operating income : Profit decreased due to lower gross profit as well
Slide 4: Gross Profit By Region
Gross Profit By Region ▶ Profit decreased in both domestic and overseas businesses ▶ Sales of cosmetics-related and other businesses were strong in Japan; however, overall profit decreased due to weak sales of raw materials for semiconductor-related products and other electronics industry-related pr
Slide 5: Gross Profit By Business & Segment
Gross Profit By Business & Segment ▶ Functional Materials posted lower sales of coating raw materials and raw materials for semiconductor-related products and other electronics industry products ▶ Advanced Materials & Processing posted lower sales due to decreased demand for resin sales in the offic
Slide 6: Operating Income by Business & Segment
Operating Income by Business & Segment ▶ Operating income decreased due to lower gross profit in Functional Materials and Advanced Materials & Processing ▶ While gross profit increased in Life & Healthcare, weaker profitability at the Prinova Group, increased personnel expense and other selling, gen
Slide 7: Functional Materials Segment Operating Income Overview
Functional Materials Segment Operating Income Overview ▶ Decrease in sales of coating raw materials to the automotive and other industries ▶ Sales decreased for raw materials for semiconductor-related products and other electronics industry products, as did sales of raw materials for industrial oil
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 ▶ Lower digital print processing materials sales due
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 for server applications, but performance was lower overal
Slide 10: Mobility Segment Operating Income Overview
Mobility Segment Operating Income Overview ▶ Sales increased for resins, mainly due to an increase in automobile production ▶ Sales increased in functional materials and functional components for interior and exterior fittings and electrification ▶ Operating income increased year on year, despite an
Slide 11: Life & Healthcare Segment Operating Income Overview
Life & Healthcare Segment Operating Income Overview ▶ Prinova Group profitability in food ingredient sales declined due to falling market prices; however, manufacturing and processing businesses posted higher sales due in part to operations at the new plant in Utah ▶ Hayashibara profitability recove
Slide 12: State of Major Manufacturing Subsidiaries
State of Major Manufacturing Subsidiaries ▶ Nagase ChemteX : Lower profit due to weak sales of formulated epoxy resins for use in semiconductor and mobile device applications ▶ Hayashibara : Higher profit due to improved profitability in AA2G™ cosmetics materials through the wider advancement of pri
Slide 13: Consolidated Balance Sheets
Consolidated Balance Sheets ▶ Current assets : We reduced inventories and working capital ▶ 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
Slide 14: FY2023 Earnings Projection (No Change)
FY2023 Earnings Projection(No Change) ▶ We expect raw materials and resource prices to remain high, due in part to the protracted Russian invasion of Ukraine ▶ We expect the business environment to remain challenging, given inflation in many countries, consumer spending impacted negatively by tighte
Slide 15: FY2023 Earnings Projection By segment (No Change)
FY2023 Earnings Projection By segment(No Change) ▶ We expect Functional Materials and Mobility to remain firm, mainly in response to an increase in automobile production volume ▶ We expect higher profit in Advanced Materials & Processing to increase, driven mainly by a recovery in resin sales volume
Slide 16: 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) ▶ We are proceeding as planned with the repurchase of ¥８ billion in
Slide 17: 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 August 3, 2023 Actual earnings may differ from pro