Nagase & Co., Ltd. · TSE:8012
Nagase & — FY2023 Earnings Presentation
22 slides from Nagase &'s earnings presentation, May 8, 2024
Slide 1: FY2023 Financial Highlights
FY2023 Financial Highlights NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 May 8, 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 ■ Consolidated Cas
Slide 3: Consolidated statements income
Consolidated statements income ▶ Gross profit increased due to strong performance of high-profit manufacturing subsidiaries; however, operating income decreased due to increases in personnel expenses and other selling, general and administrative expenses ▶ Net income decreased with the decrease in o
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 strong performance in the food ingredient business
Slide 5: Gross Profit By Business & Segment
Gross Profit By Business & Segment ▶ Functional Materials saw a decline in sales of coating materials and raw materials for semiconductor-related and other materials for the electronics industry, as well as weakening profitability in the digital print processing materials manufacturing business ▶ Ad
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 overa
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 high-end server applications and mobile device
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 ▶ Nagase Viita (formerly Hayashibara) posted increased sales, mainly for cosmetic material ▶ Although we recorded higher gross profit, profits decreased due t
Slide 12: State of Major Manufacturing Subsidiaries
State of Major Manufacturing Subsidiaries ▶ Nagase ChemteX : Despite the transfer of the biochemicals business to Nagase Viita, profit rose due to increased sales of highly profitable formulated epoxy resins ▶ Nagase Viita : Profits increased due to progress made to pass on the soaring prices of raw
Slide 13: Consolidated Balance Sheets
Consolidated Balance Sheets ▶ Inventory reductions progressed and working capital decreased ▶ Net assets increased ¥22.9 billion compared with the end of the previous fiscal year due to internal reserves, valuation difference on available-for-sale securities, and an increase in translation adjustmen
Slide 14: Consolidated Cash Flows
Consolidated Cash Flows ▶ Operating CF : Net proceeds of ¥72.9 billion, mainly due to a decrease in working capital stemming from inventory reductions ▶ Investing CF : Net cash used of ¥11.6 billion, despite proceeds from sales of investment securities, etc., mainly due to the purchase of property,
Slide 15: FY2024 Earnings Projection
FY2024 Earnings Projection ▶ We expect to increase manufacturing earnings in our semiconductor-related and food-related businesses ▶ We expect trading business resin sales to recover, while the automobile-related business should also see firm performance ▶ We expect selling, general and administrati
Slide 16: FY2024 Earnings Projection By segment
FY2024 Earnings Projection By segment ▶ Beginning with fiscal 2024, we allocate Nagase non-consolidated expenses under Corporate & Others to each segment (retirement benefit actuarial differences are unallocated) *The following comments are based on Before allocation figures ▶ Functional Materials r
Slide 17: FY2024 Earnings Projection By Major Manufacturing Subsidiaries
FY2024 Earnings Projection By Major Manufacturing Subsidiaries ▶ Nagase ChemteX : We expect higher sales and profit, mainly due to strong formulated epoxy resin-related sales for semiconductors used in high-end servers ▶ Nagase Viita : We expect higher sales and profit, mainly due to increased sales
Slide 18: Shareholder Returns
Shareholder Returns ▶ We plan to pay an interim dividend of ¥40 per share and a year-end dividend of ¥45 per share for an annual dividend of ¥85 per share for fiscal 2024 (expected 15th consecutive fiscal year of dividend increases) ▶ We changed our policy for shareholder returns compared with ACE 2
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 May 8, 2024 Actual earnings may differ from projec
Slide 20: Changes to business segment classification (implemented on October 1, 2023)
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. Integrated Poly
Slide 21: Main News in FY2023
Main News in FY2023 Apr. Hiroyuki Ueshima named new president May Notice Regarding Repurchase of Treasury Stocks President Ueshima announced the QUICK WIN Aug. Establishment of Himeji Energy Storage Facility G.K. with Idemitsu Kosan, RENOVA, and SMFL MIRAI Partners —Grid storage Battery Business to
Slide 22: PICK UP! (4Q)
PICK UP！ (4Q) Evaluations From External Organizations Nagase Viita Co., Ltd. and NAGASE & CO., LTD. Listed for all six ESG indices adopted by GPIF Awarded Platinum and Silver, Respectively, for the First Time Morningstar Japan ex-REIT Gender Diversity Tilt Index Movement in the supply chain to selec