Nagase & Co., Ltd. · TSE:8012
Nagase & — FY2025 Earnings Presentation
58 slides from Nagase &'s earnings presentation, May 7, 2026
Slide 1: FY2025 Financial Briefing
FY2025 Financial Briefing NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 May 7, 2026 Copyright © 2026 NAGASE & CO., LTD.
Slide 2: Executive Summary
Executive Summary The Company posted record-high net sales and profits at all levels. Fourth-quarter performance exceeded expectations, due in part to pull-forward demand driven by conditions in the Middle East, and full-year profits increased significantly. Profitability improved through ROIC manag
Slide 3: Business Environment Surrounding NAGASE Segments
Business Environment Surrounding NAGASE Segments Industry FY2025 Trends FY2026 Trends Segment Automotive applications decreased slightly. Automotive and construction applications Construction applications decreased, Coatings unlikely to recover, with overall performance Functional resulting in a sli
Slide 4: Contents
Contents ■ FY2025 Results and FY2026 Earnings Projectionｓ P6～２５ ■ New Medium-Term Management Plan P２７～５２ <Appendix> Initiatives to Realize Management Conscious of Capital Costs and Share Prices Trends in Key Indicators Trends in Evaluations by External Rating Agencies Major Cash Inflows and Outflows
Slide 5: FY2025 Results and FY2026 Earnings Projections
FY2025 Results and FY2026 Earnings Projectionｓ ■ Consolidated Statements Income P6 ■ Gross Profit by Region P7 ■ Gross Profit by Business & Segment P8 ■ Operating Profit by Business & Segment P9 ■ Segment Overview P10～P14 ■ Overview of Major Manufacturing Subsidiaries P15～P17 ■ Prinova Group Nutriti
Slide 6: Consolidated Statements Income
Consolidated Statements Income ▶ The Company posted record-high net sales and profits at all levels ▶ Gross profit increased and profit margins improved, driven by strong business performance and pull-forward demand stemming from conditions in the Middle East ▶ Operating profit increased despite an
Slide 7: Gross Profit by Region
Gross Profit by Region ▶ Higher domestic gross profit stemming from an improved profit margin at Nagase Viita and higher sales of formulated epoxy resins at Nagase ChemteX (including exports) ▶ Higher overseas gross profit driven by strong performance at the Prinova Group in the Americas, while perf
Slide 8: Gross Profit by Business & Segment
Gross Profit by Business & Segment ▶ Profit increased roughly ¥2.2 billion yen in the trading company business, despite weaker results in the Mobility and Functional Materials automobile-related business, as the Electronics & Energy and Life & Healthcare segments experienced stronger performance ▶ M
Slide 9: Operating Profit by Business & Segment
Operating Profit by Business & Segment ▶ Trading business increased by approximately ¥1.8 billion, driven mainly by strong semiconductor materials sales in Electronics & Energy ▶ Manufacturing business profit rose roughly ¥7.7 billion, due in part to allowance for doubtful accounts recorded in the p
Slide 10: Segment Overview: Functional Materials
Functional Materials Segment Overview: Functional Materials ▶ Gross profit flat, primarily for the following reasons: ・ Sales of raw materials for semiconductor materials increased ・ Coating materials sales decreased due to weak demand in automotive and architectural applications ▶ Operating profit
Slide 11: Segment Overview: Advanced Materials & Processing
Advanced Materials & Processing Segment Overview: Advanced Materials & Processing ▶ Gross profit increased primarily for the following reasons: • Sales of resins decreased for office equipment and other applications in the electrical appliances and electronic industries; however, planned product mix
Slide 12: Segment Overview: Electronics & Energy
Electronics & Energy Segment Overview: Electronics & Energy ▶ Gross profit increased primarily for the following reasons ・ Increased sales of semiconductor materials ・ Sales of Nagase ChemteX formulated epoxy resins increased. Despite weak performance in sales for mobile device applications, sales o
Slide 13: Segment Overview: Mobility
Mobility Segment Overview: Mobility ▶ Gross profit decreased primarily for the following reasons ・ Resin sales, which account for nearly half of gross profit, remained flat ・ Sales decreased for functional materials and functional components related to interior and exterior fittings and electrificat
Slide 14: Segment Overview: Life & Healthcare
Life & Healthcare Segment Overview: Life & Healthcare ▶ Gross profit increased primarily for the following reasons ・ Sales of intermediates and pharmaceutical raw materials remained flat ・ Higher volumes driven by market share gains in food ingredient sales at the Prinova Group ・ Nagase Viita improv
Slide 15: Major Manufacturing Subsidiaries: Nagase ChemteX
Overview of Major Manufacturing Subsidiaries: Nagase ChemteX ▶ Gross profit increased primarily for the following reasons ・ Despite weak performance in sales for mobile device applications, sales of formulated epoxy resins used in AI semiconductors remained strong ・ Profit margin improved due in par
Slide 16: Major Manufacturing Subsidiaries: Nagase Viita
Overview of Major Manufacturing Subsidiaries: Nagase Viita ▶ Gross profit increased primarily for the following reasons ・ Profit margin improved through cost reductions, despite lower sales of food ingredients ・ Cosmetic material sales remained flat, as strong performance in Japan, including new bus
Slide 17: Major Manufacturing Subsidiaries: Prinova Group
Overview of Major Manufacturing Subsidiaries: Prinova Group ▶ Gross profit increased primarily for the following reasons: ・ Higher volumes driven by market share gains in food ingredient sales ・ Performance was overall strong as profit margin improved in the manufacturing business due to improved pr
Slide 18: Prinova Group Nutrition Business Status
Prinova Group Nutrition Business Status ▶ Completed workforce optimization and manufacturing process reviews in fiscal 2025, significantly reducing losses ▶ Accelerate top-line growth and continue cost reductions to achieve profitability in fiscal 2026 Revenue Trend of Nutrition Business(Million $)
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets ▶ Utilized interest-bearing debt for the acquisition of the SACHEM business in Asia (the "Nagase Circrea Group") and Nagase Diagnostics 100 millions of yen 2025/03 2026/03 Change Details Total Current Assets 5,601 5,663 61 (Cash&deposits) 663 455 (207) (Trade account rece
Slide 20: Consolidated Cash Flows
Consolidated Cash Flows ▶ Net cash used in investing CF amounted to ¥46.5 billion due to the acquisition of the Nagase Circrea Group, Nagase Diagnostics, etc. ▶ Net cash used in financing CF amounted to ¥25.3 billion as the Company raised debt to invest in growth, while also conducting share buyback
Slide 21: Segments Change
Segments Change ▶ We will reorganize from five to three segments to clarify our business portfolio and accelerate decision-making. This will enable us to fast-track capital allocation to growth areas, reinforce ROIC-based management, and drive a shift toward a more capital-efficient earnings structu
Slide 22: FY2026 Earnings Projection
FY2026 Earnings Projection ▶ Expect to post record-high sales and profits at all levels ▶ Gross profit likely to increase, despite a negative rebound following the pull-forward demand in the previous fiscal year, as steady business performance and margin improvement support earnings ▶ Operating prof
Slide 23: FY2026 Earnings Projection By Segment
FY2026 Earnings Projection By Segment Operating profit is likely to decline across all segments due to higher upfront investments in growth and costs associated with the office relocation. Despite this forecast, we expect gross profit to increase across all segments for the following reasons. 100 mi
Slide 24: FY2026 Earnings Projections by Major Manufacturing Subsidiaries
FY2026 Earnings Projections by Major Manufacturing Subsidiaries ▶ Nagase ChemteX： Gross profit likely to increase, due in part to steady sales of formulated epoxy resins for AI semiconductors Operating profit likely to decrease, despite higher gross profit, as selling, general and administrative exp
Slide 25: Shareholder Returns
Shareholder Returns ▶ We will execute stable dividend increases over the three years through fiscal 2028, with flexible share buybacks (Guideline for flexibility: 30% EPS growth over three years) ▶ We plan to pay ¥27 per share for the fiscal 2026, consisting of an interim dividend of ¥13 per share a
Slide 26: New Medium-Term Management Plan: Walk the Talk 2028
New Medium-Term Management Plan Walk the Talk 2028
Slide 27: Top Message
Top Message Over the past five years, we have worked to build a To achieve this goal, we will improve capital resilient management foundation capable of efficiency and enhance the earnings structure responding to rapid changes in the external of our existing businesses. At the same time, environment
Slide 28: Agenda
Agenda １． Review of the Previous Medium-Term Management Plan ACE 2.0 ２． Medium-Term Management Plan “Walk the Talk 2028" 28
Slide 29: Core Policies of ACE 2.0
Core Policies of ACE 2.0 Under ACE 2.0, we set an overarching goal to transform our earnings structure and corporate culture, and to advance our “pursuit of quality” through building a strong earnings foundation and fostering a growth-oriented mindset. Reform of Profit Structure Reform of Corporate
Slide 30: Quantitative Targets: Status of KGI Achievement
Quantitative Targets: Status of KGI Achievement Through return-focused management and accelerated decision-making, we implemented various initiatives to transform into a lean and resilient organization. As a result, we achieved both KGIs: a sustainable operating profit of JPY 35 billion and an ROE o
Slide 31: Quantitative Targets: Non-Financial Targets / KPIs
Quantitative Targets: Non-Financial Targets / KPIs We achieved the non-financial targets under our sustainability initiatives. We also established and monitored three financial KPIs to promote return- focused management, resulting in stronger profitability. ■ Non-Financial Targets Project FY2025 Tar
Slide 32: Looking Back on the "Pursuit of Quality"
Looking Back on the “Pursuit of Quality” We shifted our business portfolio from a business-based to a function-based structure, allocating resources to our manufacturing functions (Semiconductor, Food, and Life Science) while restructuring and exiting unprofitable businesses. Through return-focused
Slide 33: Progress in the "Focus Domain"
Reference Progress in the “Focus Domain” We actively invested capital in the semiconductor, food, and life science areas. We strengthened the Group’s manufacturing capabilities and worked to build an earnings base with a clear focus on capital efficiency. ■ Focus ■ Foundation 【Gross profit of the Fo
Slide 34: Progress in the "Improve Domain"
Reference Progress in the “Improve Domain” We identified target areas and developed and executed improvement plans. We also reduced losses by exiting businesses and transactions with limited improvement potential and returning commercial rights where appropriate. Areas for Improvement Actions taken
Slide 35: The Message Embedded in "Walk the Talk 2028"
New Medium-Term Managemt Plan The Message Embedded in “Walk the Talk 2028" What we aim to achieve over the next three years is to bring to fruition the growth strategies we have pursued under ACE 2.0, while also sowing the seeds for our next stage of growth. Reflecting our commitment to executing th
Slide 36: NAGASE's Ideal State
NAGASE's Ideal State NAGASE — Contributing to the well-being of people and the planet by solving challenges faced by our customers and society through materials 36
Slide 37: Our Approach to Sustainability
Our Approach to Sustainability Amid a highly uncertain external environment, we will position sustainability at the core of our growth strategy, reｓｔｒｕｃｔｕｒｅ our business portfolio based on materiality, and strive to realize NAGASE's Ideal State Realization of NAGASE's Ideal State Ｌａｕｎｃｈ and ｄｒｉｖｅ bu
Slide 38: Positioning of the Medium-Term Management Plan
Positioning of the Medium-Term Management Plan NAGASE's Ideal State Exponential Growth Early achievement of JPY 1 trillion Under ACE 2.0, we have set “pursuit of quality" market capitalization Walk the Talk 2028 as our guiding principle, strengthening our foundation for transformation and reinforcin
Slide 39: Three Core Policies of the Medium-Term Management Plan
Three Core Policies of the Medium-Term Management Plan With an eye toward evolving into a company worthy of a JPY 1 trillion market capitalization within three years, we will advance three core policies: scaling our business, building resilience, and strengthening the human capital that drives our g
Slide 40: Changes to the Segment Structure
Execution of Growth Strategies Growth Strategies Human Capital Changes to the Segment Structure Resilience We will reorganize from five to three segments to clarify our business portfolio. This will enable us to fast-track capital allocation to growth areas, reinforce ROIC-based management, and driv
Slide 41: Business Strategy by Segment
Execution of Growth Strategies Growth Strategies Human Capital Business Strategy by Segment Resilience We will appoint segment heads for each segment and delegate responsibility and authority to accelerate decision-making, while driving growth through strategies tailored to diverse business environm
Slide 42: Ensuring Monetization of ACE 2.0 Growth Strategies
Execution of Growth Strategies Growth Strategies Human Capital Ensuring Monetization of ACE 2.0 Growth Strategies Resilience We will steadily execute the growth investments and initiatives planned under ACE 2.0 while maximizing investment returns to achieve sustained enhancement of corporate value F
Slide 43: Creating Uniqueness through One NAGASE
Execution of Growth Strategies Growth Strategies Human Capital Creating Uniqueness through One NAGASE Resilience By fully leveraging NAGASE's three functions — trading, manufacturing, and R&D — we will create “Uniqueness": a business model that only NAGASE can offer, delivering high added value acro
Slide 44: Case Study of "Uniqueness"
Reference Growth Strategies Human Capital Case Study of “Uniqueness" Resilience Case Study 1 Case Study 2 Resource Circulation Extending Healthy Life Expectancy (Disposable Diaper Recycling) (Sugar Reduction) Sales Target : JPY 50 billion ～ Sales Target : JPY 45 billion ～ ◼ Issue: Greenhouse gas emi
Slide 45: Quantitative Roadmap to Exponential Growth
Execution of Growth Strategies Growth Strategies Human Capital Quantitative Roadmap to Exponential Growth Resilience We will prioritize capital allocation to the highly profitable Electronics and Life Sciences segments to achieve a more balanced earnings structure. In parallel, we will create “Uniqu
Slide 46: Strengthening Individual Talent
Development of Human Capital Growth Strategies Human Capital Strengthening Individual Talent Resilience People who act on their own initiative, not bound by precedent, are the true source of NAGASE's execution power. We position people as our most critical management capital and will strengthen indi
Slide 47: Pursuit of Capital Efficiency - Deepening ROIC-based Management
Building Resilience Growth Strategies Human Capital Pursuit of Capital Efficiency - Deeping ROIC- Resilience based Management We will enhance capital efficiency from both “earning power" and “asset turnover", driving sustained increase in corporate value Gross profit ratio (as % of Sales) Improving
Slide 48: Pursuit of Capital Efficiency - Cash Allocation
Building Resilience Growth Strategies Human Capital Pursuit of capital efficiency - Cash Allocation Resilience We will proceed with the sale of cross-shareholdings and redirect capital toward growth. In addition, we will leverage debt to drive improvements in ROIC and EPS. FY2023～2025 FY2026～2028 （U
Slide 49: Corporate Governance
Building Resilience Growth Strategies Human Capital Corporate Governance Resilience We will conduct annual effectiveness evaluations of the Board of Directors incorporating third-party perspectives and implement initiatives to address identified issues. We will enhance the Board’s oversight function
Slide 50: Shareholder Return Policy
Shareholder Return Policy We will maintain progressive dividends as our base policy and flexibly conduct share buybacks. We will also enhance shareholder returns by balancing growth investments, with an eye toward 30% EPS growth over three years. Gradually increase EPS toward Exponential Growth ACE
Slide 51: Management Targets for Walk the Talk 2028
Management Targets for Walk the Talk 2028 ■ Company-wide KGI ■ Business KPI Earnings Operating profit EBITDA Set for each individual Power JPY 50.0 billion + company and segment Financial Capital ROE ROIC Set for each individual Efficiency 9.0％ + company and segment Scope 1,2 reduction ratio Carbon
Slide 52: Management Philosophy
Management Philosophy We recognize our responsibility to society and offer beneficial products and services while maintaining the highest standards of integrity. Through our growth, we will contribute to society and enrich the lives of our employees. 52
Slide 53: NAGASE Group Investor Relations Website and Inquiries
■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 based on forward-looking assumptions, forecasts, and plans as of May 7, 2026 Actual earnings may differ from projec
Slide 54: Initiatives to Realize Management Conscious of Capital Costs and Share Prices
Initiatives to Realize Management Conscious of Capital Costs and Share Prices Building the Foundation for Early Achievement of Exponential Growth (JPY 1 trillion market capitalization) ～Value Enhancement Story Based on “Walk the Talk 2028”～ Walk the Talk “Three Core Policies” for Achieving ACE 2.0 2
Slide 55: Trends in Key Indicators
Trends in Key Indicators FY2020 FY2021 FY202２ FY2023 FY2024 Change FY2025 ＋1.6 ROE 5.9％ 7.7％ ６.６％ 5.9％ 6.4％ 8.0％ ＋1.1 ROIC 4.2％ 5.3％ 4.4％ ４.０％ ４.４％ 5.5％ ＋0.3 WACC 5.7％ 5.5％ 5.７％ 5.9％ ５.９％ 6.2％ ＋0.07 NET DE ratio 0.23x 0.33x 0.3８x 0.27x 0.27x 0.34x +275 Net assets 3,384 3,55０ 3,７８３ ４,０１3 ４,０64 4,340
Slide 56: Trends in Evaluations by External Rating Agencies
Trends in Evaluations by External Rating Agencies External Highest FY２０１９ FY202０ FY2021 FY2022 FY２０２３ FY2024 FY2025 Organizations Score Results Results Results Results Results Results Results FTSE 5.0 １．２ １．９ 2.7 3.5 4.2 4.2 4.2 MSCI AAA BB BB BBB A A A AA Climate A C B B A- A- A- A Change Water A C
Slide 57: Major Cash Inflows and Outflows for FY2021-FY2025
Major Cash Inflows and Outflows for FY2021-FY2025 100 millions of yen （単位：億円） 5-years 5-years Cash In FY2021 FY2022 FY2023 FY2024 FY2025 Cumulative Cash Out FY2021 FY2022 FY2023 FY2024 FY2025 Cumulative Total Total Operating CF after Dividends and share 525 363 476 515 521 2,401 124 139 178 270 331
Slide 58: Prinova Group Business Overview
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, solutions from developed by essential oils to ingredients to the combi