Nagase & Co., Ltd. · TSE:8012
Nagase & — FY2025 Q2 Earnings Presentation
38 slides from Nagase &'s earnings presentation, Nov 6, 2025
Slide 1: FY2025 Second Quarter Financial Briefing
FY2025 Second Quarter Financial Briefing NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 November 6, 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 Mobility The Prinova Group performed well overall, with the trading company b
Slide 3: Business Environment Surrounding NAGASE Segments
Business Environment Surrounding NAGASE Segments Industry Full-Year FY2025 Initial Forecast First Half Trends Second Half Trends Segment Automotive applications to grow Automotive applications to slightly; construction applications remaining flat; construction Coatings unlikely to recover; overall a
Slide 4: Contents
Contents ■ FY202５ Second Quarter Results and FY2025 Earnings Projectionｓ P5～23 ■ Medium-Term Management Plan ACE 2.0 P24～32 Appendix： ✓Management Conscious of Capital Costs and Share Prices ✓Sales, Gross Profit, and Operating Income by Quarter ✓Cash Allocation in FY2025 ✓Major Cash Inflows and Outfl
Slide 5: FY2025 Second Quarter Results and FY2025 Earnings Projections
FY2025 Second Quarter Results and FY2025 Earnings Projectionｓ ■ Consolidated Statements Income P6 ■ Gross Profit by Region P7 ■ Gross Profit by Business & Segment P8 ■ Operating Income by Business & Segment P9 ■ Segment Overview P10～P14 ■ Overview of Major Manufacturing Subsidiaries P15～P17 ■ Consol
Slide 6: Consolidated Statements Income
Consolidated Statements Income ▶ Gross profit increased due to efforts toward improving profit margin ▶ Operating income was level year on year, despite M&A-related expenses and an increase in selling, general and administrative expenses, which was caused by an increase in retirement benefit expense
Slide 7: 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) ▶ Gross profit increased overseas due to strong growth in the semiconductor-re
Slide 8: Gross Profit by Business & Segment
Gross Profit by Business & Segment ▶ While the Trading business performed well in Electronics & Energy and Life & Healthcare, Functional Materials and in the automobile-related business under Mobility remained sluggish, resulting in an approximately ¥0.4 billion decrease in profit. ▶ Manufacturing b
Slide 9: Operating Income by Business & Segment
Operating Income by Business & Segment ▶ Trading business profit decreased approximately ¥3.3 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 10: 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 were flat ▶ Operating income
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 due to lower volume for the Electrical Appliances and Electronics industries, including OA equipment and other applications. How
Slide 12: 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 solid perfo
Slide 13: Segment Overview: Mobility
Mobility Segment Overview: Mobility ▶ Gross profit decreased primarily for the following reasons ・ Resin sales, which account for about half of gross profit, saw the negative impact of a rising yen; however, performance improved year on year with an increase in volume ・ Sales decreased for functiona
Slide 14: 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 ・ Despite lower market pric
Slide 15: 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 solid performance for resins used in semiconductors for AI servers ・ S
Slide 16: 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 ingridients increased due to strong performance in Japan by the acquisition of new
Slide 17: Overview of Major Manufacturing Subsidiaries: Prinova Group
Overview of Major Manufacturing Subsidiaries: Prinova Group ▶ Gross profit increased primarily for the following reasons: ・ Despite lower market prices, sales of food ingredients increased due to higher volume ・ The manufacturing business is on the path to recovery with improving product mix, partic
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets ▶ Partially utilized interest-bearing debt for the acquisition of the SACHEM business in Asia and Nagase Diagnostics 100 millions of yen 2025/03 2025/09 Change Details Total Current Assets 5,601 5,343 (257) (Cash&deposits) 663 406 (256) (Trade account 3,112 3,145 33 recei
Slide 19: Consolidated Cash Flows
Consolidated Cash Flows ▶ Net cash used in investing CF amounted to ¥35.7 billion due to the acquisition of the SACHEM business in Asia, Nagase Diagnostics, etc. ▶ Net cash used in financing CF amounted to ¥3.4 billion as the Company raised debt to invest in growth, while also conducting share buyba
Slide 20: FY2025 Earnings Projection (Change)
FY2025 Earnings Projection（Change） ▶ Based on the following circumstances, we have revised upward our full-year earnings forecast up to Ordinary Profit (from Net Sales to Ordinary Profit) ▶ In the Food-related business, the Prinova Group has achieved greater-than-expected progress in cost reductions
Slide 21: FY2025 Earnings Projection By Segment (Change)
FY2025 Earnings Projection By Segment（Change） ▶ For Functional Materials, while sales of coating raw materials for automotive and construction applications remained sluggish, sales of semiconductor materials continued to perform steadily; therefore, the forecast remains unchanged ▶ For Advanced Mate
Slide 22: FY2025 Earnings Projections by Major Manufacturing Subsidiaries (Change)
FY2025 Earnings Projections by Major Manufacturing Subsidiaries（Change） ▶ Nagase ChemteX: Downward revision of the forecast, as sales of modified epoxy resins for AI server semiconductors face market uncertainty due to U.S.-China relations, and demand for mobile devices is weaker than expected ▶ Nag
Slide 23: 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 Policy of 100% Total Shareholder Return Ratio in fiscal 20
Slide 24: Medium-Term Management Plan ACE 2.0
Medium-Term Management Plan ACE 2.0 ■ ACE 2.0 Basic Policies P25 ■ ACE 2.０(QUICK WIN) Status P26 ■ Growth Strategies for the Future P27 ■ Improvement Area FY202５ Progress P28 ■ Efforts in the Food Area P29 ■ Efforts in the Semiconductor Area P30 ■ Efforts in the Life Science Area P31 ■ KGI Outlook f
Slide 25: ACE 2.0 Basic Policies
ACE 2.0 Basic Policies Become a true “Business designer” ACE 2.0 “Pursuit of Quality” With a mindset focused on Accountability (A), Commitment (C) and Efficiency (E), and to enable its sustained growth, NAGASE will work to give concrete shape (business, mechanisms, culture) (Pursuit) to the aspirati
Slide 26: ACE 2.0 (QUICK WIN) Status
ACE 2.０(QUICK WIN) Status～Laying the Groundwork for Change～ The initiatives implemented as Quick Wins have advanced the “Pursuit of Quality” outlined in ACE 2.0 Evolve our Business and Strengthen front-line capabilities and Financial portfolios improve capital efficiency ・Updated Growth Strategy and
Slide 27: 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 28: Improvement Areas FY2025 Progress
Reform of Profit Structure Improvement Areas FY2025 Progress Reducing operating losses through the sale of Inkron Oy, a developer and manufacturer of functional materials for optical devices Signed a share transfer agreement with Radiant Opto-Electronics Corporation to transfer shares completed in O
Slide 29: Efforts in the Food Area: Prinova Group Nutrition Business
Reform of Profit Structure Efforts in the Food Area ～Prinova Group Nutrition Business～ Revenue Trend of Nutrition Business (Million $) ■Cost reductions through efficiency 6.0 improvements 4.0 ・Optimize staffing structure 2.0 ・Streamline raw materials procurement/supply chain 0.0 ・Revise manufacturin
Slide 30: Efforts in the Semiconductor Area: SACHEM Business in Asia
Reform of Profit Structure Efforts in the Semiconductor Area ～SACHEM Business in Asia～ ▶ We acquired the SACHEM business in Asia for high-purity chemicals for semiconductors $101 million; the business joined the NAGASE Group on June 1, 2025 (PL consolidation began in the second quarter) ▶ Acquired t
Slide 31: Efforts in the Life Science Area: Nagase Diagnostics
Reform of Profit Structure Efforts in the Life Science Area ～Nagase Diagnostics～ ▶ Acquired Nagase Diagnostics, successor to the Asahi Kasei Pharma Corporation diagnostic enzymes business , added to the NAGASE Group in July 2025 ▶ Develops, manufactures, and markets diagnostic reagents, enzymes for
Slide 32: KGI Outlook for Medium-Term Management Plan ACE 2.0
KGI Outlook for Medium-Term Management Plan ACE 2.0 Projected KGI Achievement Aim to achieve a PBR above 1.0 at an early stage through sustained capital efficiency improvement and growth strategy execution Medium-Term Management Plan ACE 2.0 “Pursuit of Quality” KGI FY2025 FY2025 Measures Indicator
Slide 33: IR Materials, Website and Inquiries
■IR Materials for the first meeting: 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 based
Slide 34: 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 35: Sales, Gross Profit and Operating Income by Quarter
Sales, Gross Profit and Operating Income by Quarter 100 millions of yen FY2025 Forecast Achieve Quarterly results (After ment Revision) FY2024 １Q ２Q ３Q ４Q YTD Actual Sales FY2025 2,373 2,424 4,797 9,640 50% FY2024 2,392 2,417 2,370 2,269 4,809 9,449 YoY% (0.8%) 0.3% (0.3%) 2.0% Gross profit FY2025 4
Slide 36: 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 37: 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
Slide 38: 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, solutions from developed by essential oils to ingredients to th