Slide 1: FY2023 Financial Briefing
FY2023 Financial Briefing FY2023 Results and FY2024 Earnings Projectionｓ NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 May 24, 2024 Copyright © 2024 Nagase & Co., Ltd.
Slide 2: Executive Summary
Executive Summary The Prinova Group reported lower earnings due to lower food ingredient market prices and prior costs at the Utah plant The color former business reported an operating loss, mainly due to declines in demand and market conditions FY2023 Resin sales declined due to declines in global
Slide 3: Business Environment by Segment
Business Environment by Segment Industry FY2023 Trends FY2024 Trends Segment Gradual recovery in automotive Automotive applications to remain strong, Coatings applications, but sluggish construction- but generally flat overall related applications Functional Color Demand remained weak and market Ove
Slide 4: Contents
Contents ■ FY2023 Results and FY2024 Earnings Projectionｓ P5～P22 Copyright © 2024 Nagase & Co., Ltd.
Slide 5: FY2023 Results and FY2024 Earnings Projections
FY2023 Results and FY2024 Earnings Projections Copyright © 2024 Nagase & Co., Ltd.
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: Life & Healthcare Segment Operating Income Overview
Life & Healthcare Segment Operating Income Overview ▶ Overall Prinova Group sales increased mainly due to operations of the plant in Utah ▶ Nagase Viita (formerly Hayashibara) posted increased sales, mainly for cosmetic material ▶ Although we recorded higher gross profit, profits decreased due to in
Slide 15: 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 16: 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 17: Consolidated Cash Flows
Consolidated Cash Flows ▶ Operating CF : Net proceeds of ¥72.9 billion, mainly due to strong operating activities, as well as 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.,
Slide 18: 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 19: FY2024 Earnings Projection By segment - Before Corporate & Others allocation
FY2024 Earnings Projection By segmentー Before Corporate & Others allocationー ▶ Functional Materials recorded higher sales and profit, mainly due to increased automobile-related sales and lower losses in the digital print processing materials-related manufacturing business ▶ Advanced Materials & Proc
Slide 20: FY2024 Earnings Projection By segment - After Corporate & Others allocation
FY2024 Earnings Projection By segmentー After Corporate & Others allocationー ▶ In FY2024, the Company began allocating company-wide shared expenses, excluding a portion of Nagase non-consolidated expenses, to business units under Corporate & Others ▶ We are allocating company-wide shared expenses, sh
Slide 21: 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 22: 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 23: 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 24, 2024 Actual earnings may differ from proje