Nagase & Co., Ltd. TSE:8012
Nagase : Consolidated Financial Statements for the Fiscal Year Ended March 31, 2025
Source: MarketScreener
May 8, 2025
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.
NAGASE & CO., LTD. Stock exchange listing: Tokyo (Prime Market) Code number: 8012 URL (https://www.nagase.co.jp/english/)Representative: Hiroyuki Ueshima, Representative Director and President
Contact: Kazuhiro Hanba, Executive Officer, General Manager, Corporate Management Department TEL: +81-3-3665-3103
Annual general meeting of stockholders: June 18, 2025 Start of distribution of dividends (scheduled): June 19, 2025 Securities report filing (scheduled): June 17, 2025 Supplementary documents: Yes
Investors' meeting: Yes (for analysts and institutional investors)
(Note: Amounts have been rounded down to the nearest million yen.)
- Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)
Consolidated Operating Results (% = year-on-year change)
Net sales
Gross profit
Operating income
Ordinary income
Profit attributable to owners of the parent
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
FYE March 2025
944,961
5.0
181,291
10.1
39,078
27.6
38,382
25.5
25,521
13.9
FYE March 2024
900,149
(1.4)
164,719
6.0
30,618
(8.2)
30,591
(6.0)
22,402
(5.2)
(Note) Comprehensive income FYE March 2025: ¥32,299 million (-30.3%)
FYE March 2024: ¥46,335 million (22.0%)
Earnings per share
Earnings per share (diluted)
Return on equity
Ordinary income/ total assets
Operating income/net sales
Yen
Yen
%
%
%
FYE March 2025
230.39
—
6.4
4.8
4.1
FYE March 2024
194.96
—
5.9
3.9
3.4
(Reference)Equity in earnings of affiliates FYE March 2025: ¥979 million
FYE March 2024: ¥568 million
Consolidated Financial Position
Total assets
Net assets
Shareholders’ equity ratio
Net assets per share
Millions of yen
Millions of yen
%
Yen
FYE March 2025
808,143
406,459
49.4
3,679.09
FYE March 2024
792,336
401,315
49.7
3,463.84
(Reference) Equity capital
FYE March 2025:
¥399,052 million
(3) Consolidated Cash Flows
FYE March 2024:
¥394,064 million
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents, end of the year
Millions of yen
Millions of yen
Millions of yen
Millions of yen
FYE March 2025
36,321
(11,615)
(18,212)
65,903
FYE March 2024
72,959
(11,627)
(48,046)
59,185
- Dividends
Annual Dividends per Share
Total dividends paid
(full fiscal year)
Payout ratio (consolidated)
Dividends/ net assets (consolidated)
1Q
2Q
3Q
Fiscal year end
Annual
Yen
Yen
Yen
Yen
Yen
Millions of yen
%
%
FYE March 2024
40.00
—
40.00
80.00
9,147
40.8
2.4
FYE March 2025
45.00
—
45.00
90.00
9,888
38.7
2.5
FYE March 2026 (forecast)
45.00
—
50.00
95.00
30.5
- Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)
(% = year-on-year change)
Net sales | Gross profit | Operating income | Ordinary income | Profit attributable to owners of the parent | Earnings per share | ||||||
Full fiscal year | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen |
955,000 | 1.1 | 181,000 | (0.2) | 39,500 | 1.1 | 38,500 | 0.3 | 31,500 | 23.4 | 300.99 | |
(Note) The Company plans to revise certain classifications between cost of sales and selling, general and administrative expenses for the Prinova Group from the beginning of the fiscal year ending March 31, 2026. We calculated percentage change based on figures for the same period of the previous year before reclassification, which do not reflect said reclassification. See 1. Business Performance (4) Future Outlook for more information on reclassified results for the fiscal year ended March 31, 2025, and a comparison with forecasts for the fiscal year ending March 31, 2026.
* Notes
Changes in major subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): Yes
New: ― (Company name: )
Excluded: 2 (Company name: Nagase Specialty Materials NA LLC, SOFIX LLC)
(Note) For details, please refer to 3. Consolidated Financial Statements and Notes, (5) Notes Related to Consolidated Financial Statements (Changes in the scope of consolidation and application of the equity method), on P.16 of this document.
Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
Changes in accordance with revisions to accounting and other standards: Yes
Changes in items other than (i) above: None
Changes in accounting estimates: None
Restatement of prior period financial statements after error corrections: None
(Note) For details, please refer to 3. Consolidated Financial Statements and Notes, (5) Notes Related to Consolidated Financial Statements (Changes in Accounting Policy), on P.16 of this document.
Number of shares issued and outstanding (common stock)
Number of shares issued and outstanding as of the fiscal period end (including treasury stock)
March 31, 2025
114,908,285 shares
March 31, 2024
117,908,285 shares
Number of treasury stock as of the fiscal period end
March 31, 2025
6,443,222 shares
March 31, 2024
4,143,115 shares
Average number of shares during the period
March 31, 2025 | 110,774,626 shares | March 31, 2024 | 114,911,971 shares |
(Note) The number of treasury shares as of the fiscal period end includes Company shares held by the Stock-Granting Trust for Directors (28,400 shares as of March 31, 2025 and 288,500 shares as of March 31, 2024). Treasury shares deducted from the calculation of the average number of shares during the period includes Company shares held by the Stock-Granting Trust for Directors (284,746 shares as of March 31, 2025 and 289,923 shares as of March 31, 2024).
- These consolidated financial statements are not subject to audit by an independent audit corporation
- Cautionary Statement with Respect to Forecasts of Consolidated Business Results
The earnings forecasts presented in this document are based upon currently available information and assumptions deemed rational. A variety of factors could cause actual results to differ materially from forecasts.
For matters related to earnings forecasts, please refer to 1. Business Performance, (4) Future Outlook, on P.5 of this document.
Attachments1. Business Performance | 2 |
(1) Review of Business Performance | 2 |
(2) Review of Financial Position | 4 |
(3) Summary of Cash Flows | 4 |
(4) Future Outlook | 5 |
(5) Dividend Policy and Dividends for the Fiscal Years Ending March 2025 and 2026 | 6 |
2. Basic Policy on the Selection of Accounting Standards | 7 |
3. Consolidated Financial Statements and Notes | 8 |
(1) Consolidated Balance Sheets | 8 |
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | 10 |
(3) Consolidated Statements of Changes in Shareholders’ Equity | 12 |
(4) Consolidated Statements of Cash Flows | 14 |
(5) Notes Related to Consolidated Financial Statements | 16 |
(Assumption for Going Concern) | 16 |
(Changes in the scope of consolidation and application of the equity method) | 16 |
(Changes in Accounting Policy) | 16 |
(Additional Information) | 16 |
(Segment Information, etc.) | 16 |
(Per-Share Data) | 23 |
(Significant Subsequent Events) | 23 |
- Business Performance
- Review of Business Performance
- General Summary of Results
The global economy remained uncertain during the consolidated fiscal year amid heightened geopolitical risks, trends in monetary policies in major countries, concerns over a slowdown in the Chinese economy, and new trade and tariff policies implemented by the United States.
Looking at the regions where the NAGASE Group operates, in Greater China, supply and demand adjustments in the real estate market have been prolonged, and signs of economic recovery remain sluggish. In the Americas, while prices are showing a stable trend, high interest rates persist, and uncertainty remains regarding the economic outlook. In ASEAN, the economy remains firm, supported by robust domestic and inbound demand. In Japan, although corporate performance and employment remain stable, personal consumption is cautious due to the impact of rising prices, and the pace of economic recovery remains moderate. In all regions, uncertainty remains as U.S. trade and tariff policies may impact the international trade order and supply chains.
In this environment, earnings for the current consolidated fiscal year were as follows.
(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2024)
Current Consolidated Fiscal Year
(March 31, 2025)
Change
Change (%)
Net sales
900,149
944,961
44,811
5.0
Gross profit
164,719
181,291
16,572
10.1
Operating income
30,618
39,078
8,459
27.6
Ordinary income
30,591
38,832
7,791
25.5
Profit before income taxes
32,665
38,130
5,465
16.7
Profit attributable to owners
of the parent
22,402
25,521
3,118
13.9
・All profit stages increased partly due to yen depreciation.
・Operating income increased due to an increase in gross profit. For details see b. Segment Summary.
・Profit attributable to owners of the parent increased by ¥3.1 billion to ¥25.5 billion despite recording a loss on discontinued operations related to the exit from the glass substrate thinning business in China, which was decided in fiscal year 2020, as well as a loss on valuation of investment securities. This increase was mainly due to higher operating income.
- Segment Summary
The following describes performance by segment.
As of the first quarter of the current consolidated fiscal year, we changed the method of allocating corporate expenses to reflect the performance of reportable segments more appropriately.
*For the details of the business segmentation, please refer to (Segment Information Etc.) on P.16 of this document
Functional Materials(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2024)
Current Consolidated Fiscal Year
(March 31, 2025)
Change
Change (%)
Net sales
146,804
153,746
6,941
4.7
Gross profit
28,123
32,511
4,388
15.6
Operating income
6,158
9,213
3,054
49.6
Gross profit increased mainly due to the following factors.
・Coating materials sales increased due to higher market prices, despite flat demand in automotive and architectural applications
・Sales increased for raw materials for semiconductor materials
・Losses narrowed in the color former business due to the suspension of production in the U.S. and the review of unprofitable transactions and streamlining of manufacturing bases in Japan
Operating income increased due to an increase in gross profit.
Advanced Materials & Processing(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2024)
Current Consolidated Fiscal Year
(March 31, 2025)
Change
Change (%)
Net sales
198,543
210,627
12,084
6.1
Gross profit
23,614
26,179
2,565
10.9
Operating income
5,313
6,684
1,370
25.8
Gross profit increased mainly due to the following factors.
・Resin sales increased due to recovery in demand in the electrical and electronics industry, including office automation equipment
・Sales of industrial hoses and civil engineering pipes increased at Totaku Industries, Inc. Operating income increased due to an increase in gross profit
Electronics & Energy(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2024)
Current Consolidated Fiscal Year
(March 31, 2025)
Change
Change (%)
Net sales
144,758
161,315
16,557
11.4
Gross profit
34,226
40,050
5,824
17.0
Operating income
8,852
12,302
3,450
39.0
Gross profit increased mainly due to the following factors.
・Sales of materials for high-end smartphones, tablets, and other electronic devices increased due to a recovery in demand
・Sales of materials for the semiconductors increased due to a moderate market recovery
・Sales of formulated epoxy resins of Nagase ChemteX increased due to strong demand for semiconductors used in AI servers Operating income increased due to an increase in gross profit.
Mobility(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2024)
Current Consolidated Fiscal Year
(March 31, 2025)
Change
Change (%)
Net sales
132,117
132,091
(26)
(0.0)
Gross profit
15,235
16,505
1,270
8.3
Operating income
3,614
4,238
624
17.3
Gross profit increased mainly due to the following factors.
・Resin sales, which account for about half of gross profit, increased due to yen depreciation and rising market prices, despite a decline in volume
・Sales increased for functional materials and functional components for interior and exterior fittings and electrification Operating income increased due to an increase in gross profit.
Life & Healthcare(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2023)
Current Consolidated Fiscal Year
(March 31, 2024)
Change
Change (%)
Net sales
277,779
287,079
9,299
3.3
Gross profit
63,436
66,099
2,662
4.2
Operating income
8,006
3,423
(4,582)
(57.2)
Gross profit increased mainly due to the following factors.
・Sales increased for pharmaceutical raw materials and intermediates
・Sales of Nagase Viita increased overall due to strong sales of food ingredients, despite lower sales of cosmetic materials stemming from sluggish sales overseas
・The Prinova Group saw an increase in food ingredient sales and an improvement in gross profit margin compared to the previous consolidated fiscal year, when market conditions were weak
Operating income decreased, despite an increase in gross profit, mainly due to higher selling, general and administrative expenses stemming from allowance for doubtful accounts and higher personnel expenses at the Prinova Group, which were recorded in the second quarter.
OthersNo special matters to disclose.
- General Summary of Results
- Review of Financial Position
(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2024)
Current Consolidated Fiscal Year
(March 31, 2025)
Change
Change (%)
Current assets
542,470
560,126
17,655
3.3
Non-current assets
249,865
248,017
(1,848)
(0.7)
Total assets
792,336
808,143
15,087
2.0
Liabilities
391,021
401,683
10,662
2.7
Net assets
401,315
406,459
5,144
1.3
Shareholders’ equity ratio (%)
49.7
49.4
-0.3p
—
・Current assets increased due to an increase in inventories, despite a decrease in accounts receivable, etc.
・Non-current assets decreased due to a decrease in intangible fixed assets and sales of investments in securities despite an increase in property, plant and equipment
・Liabilities increased due to an increase in new long-term loans and new bond issuances despite a decrease due to the repayment of commercial paper and short-term loans
・Net assets increased mainly due to the recording of profit attributable to owners of the parent and an increase in translation adjustments, despite decreases from purchases of treasury stock and payments of dividends
・As a result, the Company recorded a shareholders’ equity ratio of 49.4%, down 0.3 points compared to 49.7% from the end of the prior consolidated fiscal year
- Summary of Cash Flows
(Millions of yen)
Prior Consolidated Fiscal Year
(March 31, 2024)
Current Consolidated Fiscal Year
(March 31, 2025)
Cash flows from operating activities
72,959
36,321
Cash flows from investing activities
(11,627)
(11,615)
Cash flows from financing activities
(48,046)
(18,212)
・Net cash provided by operating activities was mainly the result of ¥38.1 billion income before income taxes and ¥15.3 billion due to depreciation and amortization, offset in part by a ¥8.2 billion decrease in cash due to an increase in working capital, and ¥12.2 billion in income taxes paid
・Net cash used in investing activities was mainly the result of cash outlays of ¥12.5 billion for the purchase of property, plant and equipment
and ¥2.6 billion for the purchase of intangible assets, offset in part by ¥3.3 billion in proceeds from the sales of investments in securities
・Net cash used in financing activities was mainly the result of ¥17.5 billion net decrease in commercial papers, cash outlays of ¥17.0 billion due to purchases of treasury stock and ¥10.0 billion due to redemption of bonds, and ¥9.5 billion in dividend payments, offset in part by proceeds from ¥32.0 billion of long-term loans and ¥20.0 billion of bond issuances.
FYE March 2021
FYE March 2022
FYE March 2023
FYE March 2024
FYE March 2025
Shareholders’ equity ratio
51.5%
46.5％
48.2％
49.7％
49.4％
Shareholders' equity ratio based on market value
33.3%
29.5％
31.3％
36.7％
35.6％
Interest-bearing debt to cash flow ratio (years)
5.8
-
19.1
2.3
4.8
Interest coverage ratio (times)
19.1
-
3.1
18.9
9.9
Shareholders’ equity ratio: Equity capital/total assets
Shareholders' equity ratio based on market value: Market capitalization/total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt/operating cash flow Interest coverage ratio: Operating cash flow/interest payments
(Note) 1. Indicators are calculated based on consolidated figures.
- Review of Business Performance
Market capitalization is calculated using the closing price at the end of the year multiplied by the number of outstanding shares at the end of the year (less treasury stock at cost).
Operating cash flow is net cash provided by operating activities as shown in the consolidated statements of cash flows. Interest-bearing debt is all liabilities in the consolidated balance sheets for which interest is payable. Interest payments are the amount of interest paid as presented in the consolidated statements of cash flows.
Interest-bearing debt to cash flow ratio or interest coverage ratio are not presented for the fiscal year ended March 31, 2022, as operating cash flow was negative.
- Future Outlook
- Performance Forecast for the Fiscal Year Ending March 2026
The outlook for the business environment surrounding the NAGASE Group in the next fiscal year remains uncertain due to the anticipated impact of U.S. trade and tariff policies and their influence on the global economy, as well as repeated changes in such policies.
Global inflation remains elevated, and geopolitical risks also persist. These factors may adversely affect corporate earnings and personal consumption, raising concerns over the global economic outlook. Observers also expect supply chain restructuring, including a revision in the location of manufacturing bases in response to heightened geopolitical risks, to continue.
Given this environment, we expect many of the business sectors related to the NAGASE Group will perform steadily. We formulated our earnings forecast for the next fiscal year based on the following assumptions. The potential impact of U.S. trade and tariff policies is not included in these assumptions due to the difficulty of making a reasonable estimate.
In our food-related business, we expect recovery at the Prinova Group. Although the food ingredients market is showing no clear signs of bottoming out, we will continue to improve productivity in the Nutrition business (contract manufacturing of sports nutrition). Nagase Viita expects strong sales of food and cosmetic ingredients.
In the semiconductor-related business, sales of modified epoxy resin products by Nagase ChemteX for semiconductors used in AI servers are expected to continue to perform well. The automobile-related business and resin sales are expected to remain generally flat.
These forecasts have been developed based on foreign exchange rates of ¥143 to the U.S. dollar and ¥19 to the RMB.
Further, these forecasts were calculated based on information available at the time and on reasonable determinations of conditions. Actual results may vary significantly due to a variety of factors, including business conditions overseas and in Japan and exchange rate trends. Any issues that require disclosure in the future will be disclosed promptly if important developments relating to our forecasts for the fiscal year occur.
(Millions of yen)
Net sales
Gross profit
Operating income
Ordinary income
Profit attributable to owners of the parent
FYE March 2026 Forecast
955,000
181,000
39,500
38,500
31,500
FYE March 2025 Actual (Before Reclassification)
944,961
181,291
39,078
38,382
25,521
FYE March 2025 Actual (After Reclassification (Estimate))
944,961
173,291
39,078
38,382
25,521
Change
+1.1%
+4.4%
+1.1%
+0.3%
+23.4%
(Note) The Company plans to revise certain classifications between cost of sales and selling, general and administrative expenses for the Prinova Group from the beginning of the fiscal year ending March 31, 2026. The percentage change reflects a comparison with the reclassified figures for the fiscal year ended March 31, 2025. The figures for the fiscal year ending March 31, 2025 (after reclassification), are estimates and may change in the future.
- Operating Income Forecast by Segment
(Millions of yen)
FYE March 2024 Actual
FYE March 2025 Forecast
Change
Functional Materials
9,213
8,800
(4.5%)
Advanced Materials & Processing
6,684
6,900
+3.2%
Electronics & Energy
12,302
12,900
4.9%
Mobility
4,238
4,200
(0.9%)
Life & Healthcare
3,423
7,300
+113.2%
Others
3,215
(600)
-
Total Operating Income
39,078
39,500
+1.1%
- Performance Forecast for the Fiscal Year Ending March 2026
- Dividend Policy and Dividends for the Fiscal Years Ending March 2025 and 2026
At a meeting held May 8, 2024, the Company's board of directors resolved to revise the Company's shareholder return policy to a 100% total return ratio. This policy represents a limited measure for the two years through fiscal 2025, the final year of our Medium-Term Management Plan ACE 2.0, in order to achieve the ACE 2.0 quantitative ROE target of at least 8.0%.
The Company intends to pay dividends in the same manner as before, following a basic policy of continuing dividend increases in consideration of consolidated earnings and financial structure, while also considering consolidated cash flows and investment conditions. At the same time, the Company will strive to improve profitability and strengthen our corporate structure.
The Company capped the amount of share buybacks at the level of policy holding share sales during the course of ACE 2.0. However, based on the preceding policy, we intend to carry out share buybacks opportunistically and with an eye to efficiency.
The Company plans to pay a year-end dividend of ¥45 per share for the current fiscal year, resulting in an annual dividend of ¥90 per share including the interim dividend. This dividend represents an increase of ¥10 per share compared with the previous fiscal year.
After a comprehensive consideration of our stability and continuity of dividend payments, we forecast a full-year dividend of ¥95 per share for the next fiscal year. This dividend will consist of a ¥45 per share interim dividend and a ¥50 per share year-end dividend.
- Basic Policy on the Selection of Accounting Standards
The NAGASE Group intends to use Japanese accounting standards for the time being to allow for inter-company comparability.
We have been studying the adoption of International Financial Reporting Standards (IFRS) for some time, and we plan to make the appropriate policy choice in the future, considering external trends and other factors.
- Consolidated Financial Statements and Notes
- Consolidated Balance Sheets
(Millions of yen)
Prior Consolidated Fiscal Year (March 31, 2024)
Current Consolidated Fiscal Year (March 31, 2025)
ASSETS
Current assets
Cash and time deposits
59,410
66,310
Notes and accounts receivable and contract assets
321,126
311,251
Merchandise and finished goods
131,137
146,834
Work in process
2,594
2,320
Raw materials and supplies
14,259
17,068
Other
14,881
17,387
Less allowance for doubtful accounts
(940)
(1,048)
Total current assets
542,470
560,126
Non-current assets
Property, plant and equipment
Buildings and structures
63,432
59,437
Accumulated depreciation
(36,734)
(32,679)
Buildings and structures (net)
26,697
26,757
Machinery, equipment and vehicles
67,471
64,625
Accumulated depreciation
(50,883)
(46,855)
Machinery, equipment and vehicles (net)
16,588
17,770
Land
20,221
20,114
Other
50,107
54,425
Accumulated depreciation
(26,222)
(27,396)
Other (net)
23,884
27,028
Total property, plant and equipment
87,392
91,671
Intangible fixed assets
Goodwill
27,884
25,400
Technology-based assets
2,761
1,289
Other
38,703
39,121
Total intangible fixed assets
69,349
65,811
Investments and other assets
Investments in securities
76,225
72,028
Long-term loans receivable
326
1,257
Retirement benefit asset
6,217
6,072
Deferred tax assets
4,596
5,700
Other
5,935
6,653
Less allowance for doubtful accounts
(177)
(1,179)
Total investments and other assets
93,123
90,534
Total non-current assets
249,865
248,017
Total assets
792,336
808,143
(Millions of yen)
Prior Consolidated Fiscal Year (March 31, 2024)
Current Consolidated Fiscal Year (March 31, 2025)
LIABILITIES
Current liabilities
Notes and accounts payable
156,352
151,269
Short-term loans
50,731
42,310
Current portion of long-term loans
6,946
6,039
Commercial paper
37,000
19,500
Current portion of bonds
10,000
—
Income taxes payable
5,195
3,753
Accrued bonuses for employees
7,569
8,518
Accrued bonuses for directors
251
394
Other
28,628
37,791
Total current liabilities
302,675
269,576
Long-term liabilities
Bonds
20,000
40,000
Long-term loans
27,533
53,454
Lease liabilities
12,492
11,471
Long-term income taxes payable
—
22
Deferred tax liabilities
13,567
13,275
Retirement benefit liability
12,345
12,289
Provision for directors’ stock benefit
60
111
Other
2,345
1,481
Total long-term liabilities
88,345
132,106
Total liabilities
391,021
401,683
NET ASSETS
Shareholders’ equity
Common stock
9,699
9,699
Capital surplus
9,348
9,348
Retained earnings
303,328
312,244
Less treasury stock, at cost
(9,543)
(19,579)
Total shareholders’ equity
312,832
311,712
Accumulated other comprehensive income
Net unrealized holding gain on securities
33,763
30,665
Deferred gain on hedges
119
6
Translation adjustments
44,846
56,864
Remeasurements of defined benefit plans
2,503
(196)
Total accumulated other comprehensive income
81,232
87,340
Non-controlling interests
7,250
7,406
Total net assets
401,315
406,459
Total liabilities and net assets
792,336
808,143
- Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Consolidated Statements of Comprehensive Income)
(Millions of yen)
Prior Consolidated Fiscal Year (April 1, 2023 -
March 31, 2024)
Current Consolidated Fiscal Year (April 1, 2024 -
March 31, 2025)
Net sales
900,149
944,961
Cost of sales
735,430
763,670
Gross profit
164,719
181,291
Selling, general and administrative expenses
Selling expenses
22,433
24,410
Employee salaries and allowances
43,704
47,238
Provision for accrued bonuses for employees
4,447
5,247
Provision for accrued bonuses for directors
270
404
Depreciation and amortization other than amortization of goodwill
9,231
10,644
Retirement benefit expenses
2,275
(2,115)
Allowance for doubtful accounts
282
1,340
Amortization of goodwill
2,627
2,722
Other
48,827
52,318
Total selling, general and administrative expenses
134,100
142,212
Operating income
30,618
39,078
Non-operating income
Interest income
610
1,047
Dividend income
1,553
1,941
Rent income
248
311
Foreign exchange gains
635
—
Equity in earnings of affiliates
568
979
Other
705
489
Total non-operating income
4,321
4,770
Non-operating expenses
Interest expenses
3,744
3,734
Foreign exchange losses
—
492
Other
604
1,239
Total non-operating expenses
4,348
5,465
Ordinary income
30,591
38,382
Extraordinary gains
Gain on sales of non-current assets
83
2,159
Gain on sales of investment securities
5,591
2,792
Gain on liquidation of subsidiaries and affiliates
—
74
Subsidy income
512
258
Other
46
8
Total extraordinary gains
6,234
5,294
Extraordinary losses
Loss on sales of non-current assets
41
388
Loss on disposal of non-current assets
1,422
575
Loss on impairment of fixed assets
2,276
1,173
Loss on sales of investment securities
21
19
Loss on valuation of investment securities
135
1,234
Loss on sales of investments in capital of subsidiaries and affiliates
—
108
Loss on discontinued operations
263
2,048
Total extraordinary losses
4,160
5,547
Income before income taxes
32,665
38,130
Income taxes - current
10,627
10,958
Income taxes - deferred
(815)
901
Total income taxes
9,812
11,859
Profit for the period
22,853
26,270
Profit attributable to non-controlling interests
450
748
Profit attributable to owners of the parent
22,402
25,521
(Millions of yen)
Prior Consolidated Fiscal Year (April 1, 2023 -
March 31, 2024)
Current Consolidated Fiscal Year (April 1, 2024 -
March 31, 2025)
Profit for the period
22,853
26,270
Other comprehensive income
Net unrealized holding gain (loss) on securities
4,827
(3,091)
Deferred gain (loss) on hedges
126
(113)
Translation adjustments
14,738
11,824
Remeasurements of defined benefit plans
3,229
(2,699)
Share of other comprehensive income of affiliates accounted for by the equity method
560
109
Total other comprehensive income
23,482
6,028
Comprehensive income
46,335
32,299
Comprehensive income attributable to:
Shareholders of the parent
45,024
31,668
Non-controlling interests
1,310
630
- Consolidated Statements of Changes in Shareholders’ EquityPrior Consolidated Fiscal Year (April 1, 2023 - March 31, 2024)
(Millions of yen)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Balance, beginning of period
9,699
10,636
290,279
(1,550)
309,064
Cumulative effects of changes in accounting policies
(72)
(72)
Restated balance
9,699
10,636
290,207
(1,550)
308,992
Changes
Cash dividends
(9,281)
(9,281)
Profit attributable to owners of the parent
22,402
22,402
Purchase of treasury stock
(8,001)
(8,001)
Disposition of treasury stock
7
7
Equity transactions with non-controlling interests
(1,287)
(1,287)
Changes other than
shareholders’ equity accounts (net)
Total changes
-
(1,287)
13,121
(7,993)
3,840
Balance, end of period
9,699
9,348
303,328
(9,543)
312,832
Current Consolidated Fiscal Year (April 1, 2024 - March 31, 2025)Accumulated other comprehensive income
Non-controlling interests
Total net assets
Net unrealized holding gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other
comprehensive income
Balance, beginning of period
28,928
(7)
30,414
(726)
58,610
10,713
378,388
Cumulative effects of changes in accounting policies
(72)
Restated balance
28,928
(7)
30,414
(726)
58,610
10,713
378,315
Changes
Cash dividends
(9,281)
Profit attributable to owners of the parent
22,402
Purchase of treasury stock
(8,001)
Disposition of treasury stock
7
Equity transactions with non-controlling interests
(1,287)
Changes other than
shareholders’ equity accounts (net)
4,834
126
14,431
3,229
22,622
(3,462)
19,159
Total changes
4,834
126
14,431
3,229
22,622
(3,462)
22,999
Balance, end of period
33,763
119
44,846
2,503
81,232
7,250
401,315
(Millions of yen)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Balance, beginning of period
9,699
9,348
303,328
(9,543)
312,832
Changes
Cash dividends
(9,557)
(9,557)
Profit attributable to owners of the parent
25,521
25,521
Purchase of treasury stock
(17,000)
(17,000)
Disposition of treasury stock
12
12
Cancellation of treasury stock
(6,951)
6,951
-
Changes in scope of equity method
(96)
(96)
Changes other than
shareholders’ equity accounts (net)
Total changes
-
-
8,916
(10,036)
(1,120)
Balance, end of period
9,699
9,348
312,244
(19,579)
311,712
Accumulated other comprehensive income
Non-controlling interests
Total net assets
Net unrealized holding gain on securities
Deferred gain on hedges
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Balance, beginning of period
33,763
119
44,846
2,503
81,232
7,250
401,315
Changes
Cash dividends
(9,557)
Profit attributable to owners of the parent
25,521
Purchase of treasury stock
(17,000)
Disposition of treasury stock
12
Cancellation of treasury stock
-
Changes in scope of equity method
(96)
Changes other than
shareholders’ equity accounts (net)
(3,097)
(113)
12,018
(2,699)
6,107
156
6,264
Total changes
(3,097)
(113)
12,018
(2,699)
6,107
156
5,144
Balance, end of period
30,665
6
56,864
(196)
87,340
7,406
406,459
- Consolidated Statements of Cash Flows
(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2023 -
March 31, 2024)
Current Consolidated Fiscal Year
(April 1, 2024 -
March 31, 2025)
Operating Activities
Income before income taxes
32,665
38,130
Depreciation and amortization other than amortization of goodwill
13,998
15,329
Loss on impairment of fixed assets
2,276
1,173
Amortization of goodwill
2,627
2,722
Subsidy income
(512)
(258)
Share of gain of entities accounted for using equity method
(568)
(979)
Loss on discontinued operations
263
2,048
Increase (decrease) in retirement benefit liability
3,775
(798)
Decrease (increase) in retirement benefit asset
495
(3,347)
Interest and dividend income
(2,164)
(2,989)
Interest expenses
3,744
3,734
Exchange gain, net
(1,652)
(689)
Gain on sales of property, plant and equipment, net
(42)
(1,771)
Gain on sales of investment securities, investments in capital, shares of subsidiaries and affiliates, and investments in capital of subsidiaries and affiliates, net
(5,570)
(2,773)
Loss on valuation of investment securities, investments in capital, shares of subsidiaries and affiliates, and investments in capital of subsidiaries and affiliates, net
135
1,234
(Increase) decrease in notes and accounts receivable
(7,373)
11,502
Decrease (increase) in inventories
31,626
(13,093)
Increase (decrease) in notes and accounts payable
8,844
(6,617)
Other
(32)
5,700
Subtotal
82,537
48,259
Interest and dividends received
2,589
3,708
Interest paid
(3,865)
(3,676)
Proceeds from subsidy income
512
258
Income taxes paid
(8,814)
(12,228)
Net cash provided by operating activities
72,959
36,321
Investing activities
Purchases of property, plant and equipment
(14,019)
(12,554)
Proceeds from sales of property, plant and equipment
585
2,623
Purchases of intangible fixed assets included in other assets
(3,735)
(2,630)
Purchases of investments in securities
(623)
(953)
Proceeds from sales of investments in securities
7,154
3,315
Purchases of investments in capital
(205)
—
Proceeds from sales of investments in capital
—
256
Purchases of shares of subsidiaries resulting in change in scope of consolidation
(244)
—
(Increase) decrease in short-term loans receivable included in other current assets, net
(316)
403
Decrease (increase) in time deposits, net
378
(219)
Other
(601)
(1,856)
Net cash used in investing activities
(11,627)
(11,615)
(Millions of yen)
Prior Consolidated Fiscal Year
(April 1, 2023 -
March 31, 2024)
Current Consolidated Fiscal Year
(April 1, 2024 -
March 31, 2025)
Financing activities
Decrease in short-term loans, net
(22,408)
(7,909)
Decrease in commercial paper, net
(1,000)
(17,500)
Proceeds from long-term loans
1,000
32,036
Repayments of long-term loans
(1,055)
(6,941)
Proceeds from issuance of bonds
—
20,000
Redemption of bonds
—
(10,000)
Purchase of treasury stock
(8,001)
(17,018)
Cash dividends paid
(9,281)
(9,557)
Cash dividends paid to non-controlling interests
(603)
(474)
Payments for purchases of shares of subsidiaries not resulting in change in scope of consolidation
(6,025)
—
Other
(670)
(847)
Net cash used in financing activities
(48,046)
(18,212)
Effects of exchange rate changes on cash and cash equivalents
5,569
223
Net increase in cash and cash equivalents
18,854
6,717
Cash and cash equivalents at beginning of the year
40,331
59,185
Cash and cash equivalents, at end of the period
59,185
65,903
- Notes Related to Consolidated Financial Statements(Assumption for Going Concern)
No matters to report.
(Changes in the scope of consolidation and application of the equity method)Major changes in the scope of consolidation (Decrease)
・Nagase Specialty Materials NA LLC (dissolved in an absorption-type merger, in which consolidated subsidiary Nagase America LLC was the surviving company, on April 1, 2024)
・SOFIX LLC (liquidated on December 3, 2024)
Major changes in the scope of application of the equity method (Decrease)
・Wuxi Chenghong Electronic Chemicals Co., LTD (Due to the partial sale of investment capital on December 11, 2024)
(Changes in Accounting Policy)(Application of Accounting Standard for Current Income Taxes)
The Company adopted the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022; "Revised Accounting Standard 2022") at the beginning of the current consolidated fiscal year.
We recorded revisions related to the classification of income taxes (taxes on other comprehensive income) in accordance with the transitional treatment provided in the proviso of Paragraph 20-3 of the Revised Accounting Standard 2022 and the proviso of Paragraph 65-2(2) of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; "Revised Guidance 2022"). This change in accounting policy has no impact on our consolidated financial statements.
At the start of the current consolidated fiscal year, the Company adopted Revised Guidance 2022 to revise the treatment in the consolidated financial statements when tax deferrals are applied for gains or losses on the sale of subsidiary company shares, etc., between consolidated companies. We applied this change in accounting policy retrospectively, and we prepared the consolidated financial statements for the previous year on a retrospective basis. Deferred tax assets or liabilities are recorded on the financial statements of the company selling shares of the subsidiary in question for temporary differences related to gains or losses on the sale in question when recording the tax effects in cases where the gain or loss on the sale of subsidiary company shares, etc., between consolidated companies is deferred for tax purposes. In this case, we decided to reverse the deferred tax assets or deferred tax liabilities related to the temporary difference in question, rather than the past treatment in which the amount of deferred tax assets or deferred tax liabilities related to the temporary difference in question was not adjusted in the consolidated financial statements. This change in accounting policy has no impact on our consolidated financial statements.
(Additional Information)(Stock-Based Compensation Plan)
Effective as of fiscal year ending March 2023, the Company has adopted a stock-based compensation plan (“Plan”) for directors (excluding outside directors) and executive officers (collectively, “Eligible Individuals”). The purpose of the Plan is to establish a clear link between compensation for Eligible Individuals and Company performance and share value, as well as for Eligible Individuals to share the benefits and risks associated with fluctuations in NAGASE share price with shareholders. In this way, the NAGASE Group intends to raise awareness about contributing to improved business performance and increased corporate value over the medium to long term.
Overview
The Plan is a stock-based compensation plan under which a trust ("Trust") established by monetary contribution from the Company acquires Company shares. The Company grants points to each Eligible Individual, and the Trust delivers the number of Company shares equivalent to the points earned by each Eligible Individual. In principle, said delivery is made at the time of the retirement the Eligible Individual.
Company shares remaining in the Trust
Company shares remaining in the Trust are recorded as treasury stock under net assets in the balance sheet based on the carrying value in the Trust (excluding incidental expenses). The carrying value and number of said treasury stock amounted to 612 million and 288,500 shares at the end of the previous fiscal year and 599 million and 282,400 shares at the end of the current consolidated fiscal year.
(Segment Information, etc.)- Segment Information
- Reportable Segments
The Company’s reportable segments are those units comprising the NAGASE Group for which separate financial information is available and for which the board of directors makes regular decisions regarding resource allocation and operating performance.
The Company classifies reportable segments according to the location of the business in the value chain and the market(s) targeted. Accordingly, the Company has defined five segment categories: Functional Materials (located at the top of the value chain), Advanced Materials & Processing (located in the next stage of the value chain), Electronics & Energy, Mobility, and Life & Healthcare (functioning in the value chain of their respective industries).
The following describes the major products and services handled by each reportable segment.
The Functional Materials segment is engaged in the sales of paints/inks, dyestuffs, pigments, additives, processed pigments, dispersing elements, functional pigments, thermal paper materials, toner and inkjet materials, materials for adhesives, urethane materials and auxiliary materials, plastic materials, plastic additives, industrial oil solutions, water processing raw materials, surfactant raw materials, fluorochemicals, encapsulant materials, 5G materials, silicone materials, environmental solutions and environment-related commercial products, sintered metal filters, conductive coatings, and more for the paints/inks, dye/additive, resins, urethane foam, organic synthesis, surfactants, electronics chemicals, digital print processing materials, communications equipment, water processing, metal processing, plastic and film processing, stationery, functional film and sheet, hygiene materials, and other industries.
The Advanced Materials & Processing segment is engaged in the sales of thermoplastic resins, thermosetting resins, plastics products, resin molding tools/dies, and more for the office equipment, home appliance, electrical equipment, mobile communications, games, packaging, cosmetics, construction materials, and other industries.
The Electronics & Energy segment is engaged in the sales of formulated epoxy resins, fluorine products, precision abrasives, semiconductor assembly materials and devices, adhesives and encapsulant materials, display panel components and devices, chemical management equipment for display manufacturing processes, low-temperature/vacuum equipment, liquid state analysis equipment, LEDs, 3D printing products, solar panels, and other products for the semiconductor, electronic component, AR/VR, environmental energy, 3D printing, heavy electrical and light electrical, HDD, automotive and aircraft, display, touch panel, housing, lighting, renewable energy, large-scale commercial facility, and other industries.
The Mobility segment is engaged in the sales of plastic products in general, materials for secondary batteries, interior and exterior materials, materials for functional components, products for electrification, sensor components, in-vehicle electronics products, in-vehicle display-related components, self-driving-related products, and other products for the overall mobility industry and related industries.
The Life & Healthcare segment is engaged in the sale of pharmaceutical materials, research products, diagnostics reagents, food ingredients, food additives, processing aids for enzymes, etc., sports nutrition products, nutrient premixes, cosmetic materials, additives for cosmetics, surfactants, and agricultural, fisheries, and livestock-related materials to the pharmaceutical, food and beverage, cosmetics, agricultural, toiletries, and health care, and other industries. The segment offers endotoxin removal and radiation measurement as its main services. In addition, this segment sells cosmetics, health foods, and beauty foods directly to consumers.
- Net Sales, Income (Loss), Assets, Liabilities, and Other Items by Segment
Accounting treatment in each reportable segment follows the principles and procedures of the accounting treatments used to prepare the Company’s consolidated financial statements.
Income in reportable segments is defined as operating income. Intersegment sales/transfers are based on actual market prices.
At the beginning of the current consolidated fiscal year, we changed the method of allocating corporate expenses to reflect the performance of reportable segments more appropriately. Segment information in the table below for the previous consolidated fiscal year is based on the allocation method after the change.
Non-current assets are not allocated to reportable segments. The allocation of related expenses to the relevant segments follows reasonable criteria.
- Information Related to Net Sales, Income (Loss), Assets, Liabilities, and Other Items by Segment Prior Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
(Millions of yen)
Reportable Segments
Others (Note) 1
Total
Corporate (Note) 2
Adjustments (Note) 3
Consolidated
(Note) 4
Functional Materials
Advanced Materials & Processing
Electronics & Energy
Mobility
Life & Healthcare
Total
Net sales
Sales to customers
146,804
198,543
144,758
132,117
277,779
900,003
146
900,149
—
—
900,149
Intersegment sales/transfers
1,709
792
3,068
2,798
471
8,839
7,251
16,090
—
(16,090)
—
Total
148,513
199,335
147,826
134,915
278,251
908,842
7,398
916,240
—
(16,090)
900,149
Segment income (loss)
8,629
6,804
11,327
4,933
10,321
42,016
79
42,095
(12,007)
529
30,618
Segment assets
131,559
104,394
84,087
74,881
245,132
640,056
3,142
643,198
203,748
(54,610)
792,336
Other items
Depreciation and amortization
916
725
1,803
388
7,291
11,126
18
11,145
2,853
—
13,998
Amortization of goodwill
143
—
54
—
2,429
2,627
—
2,627
—
—
2,627
Unamortized balance of goodwill
1,992
—
444
—
25,447
27,884
—
27,884
—
—
27,884
Investments in equity affiliates
2,649
1,128
2,994
1,332
3,351
11,456
111
11,567
—
(4)
11,563
Increase in property, plant, and equipment and
intangible fixed assets
1,262
1,159
3,189
325
4,367
10,304
60
10,364
9,648
—
20,012
(Note) 1. “Others” is a business segment consisting of businesses not included in reportable segments, and includes information processing services and professional services.
Corporate segment income (loss) represents expenses not allocated to reportable segments or Others. Segment assets under Corporate are assets not allocable to reportable segments or Others. The reportable segments exclude depreciation and amortization expenses incurred within the Corporate segment. However, we combine depreciation and amortization expenses associated with segments other than Corporate with other expenses and allocate to the reportable segments.
Adjustments are eliminations of intersegment transactions.
The sum of Segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in “Consolidated”.
Current Consolidated Fiscal Year (April 1, 2024 to March 31, 2025)(Millions of yen)
Reportable Segments
Others (Note) 1
Total
Corporate (Note) 2
Adjustments (Note) 3
Consolidated
(Note) 4
Functional Materials
Advanced Materials &
Processing
Electronics & Energy
Mobility
Life & Healthcare
Total
Net sales
Sales to customers
153,746
210,627
161,315
132,091
287,079
944,860
101
944,961
—
—
944,961
Intersegment sales/transfers
1,215
783
2,221
2,028
491
6,740
7,046
13,787
—
(13,787)
—
Total
154,962
211,411
163,536
134,120
287,570
951,601
7,147
958,749
—
(13,787)
944,961
Segment income
9,213
6,684
12,302
4,238
3,423
35,862
239
36,102
2,443
533
39,078
Segment assets
123,699
110,117
84,961
68,727
262,916
650,422
3,824
654,246
211,926
(58,029)
808,143
Other items
Depreciation and amortization
762
778
1,997
228
7,713
11,479
68
11,548
3,781
—
15,329
Amortization of goodwill
151
—
57
—
2,513
2,722
—
2,722
—
—
2,722
Unamortized balance of goodwill
1,819
—
382
—
23,198
25,400
—
25,400
—
—
25,400
Investments in equity affiliates
2,685
1,011
2,765
1,425
3,533
11,422
122
11,544
—
(3)
11,541
Increase in property, plant, and equipment and
intangible fixed assets
1,269
1,291
2,811
677
3,987
10,037
439
10,476
5,733
—
16,209
(Note) 1. “Others” is a business segment consisting of businesses not included in reportable segments, and includes information processing services and professional services.
Corporate segment income (loss) represents expenses not allocated to reportable segments or Others. Segment assets under Corporate are assets not allocable to reportable segments or Others. The reportable segments exclude depreciation and amortization expenses incurred within the Corporate segment. However, we combine depreciation and amortization expenses associated with segments other than Corporate with other expenses and allocate to the reportable segments.
Adjustments are eliminations of intersegment transactions.
The sum of Segment income (loss) Total, Corporate, and Adjustments is equivalent to operating profit as presented in “Consolidated”.
- Reportable Segments
- Other InformationPrior Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
- Products and Services
Omitted, as the same information has been disclosed under Segment Information.
- Geographical Information
- Net sales
Group net sales consist primarily of revenues recognized from contracts with customers. The following provides detail of net sales for each reportable segment, broken down by geographic region.
(Millions of yen)
Reportable Segments
Others (Note) 3
Total
Composition (%)
Functional Materials
Advanced
Materials & Processing
Electronics & Energy
Mobility
Life & Healthcare
Japan
64,933
34,694
56,442
42,163
70,490
146
268,872
29.9
Greater China
17,881
96,356
59,803
31,724
3,866
-
209,632
23.3
ASEAN
34,198
60,586
7,403
37,665
6,200
-
146,053
16.2
Americas
22,847
4,509
8,880
18,716
123,756
-
178,710
19.9
Europe
5,899
1,133
4,021
1,562
73,068
-
85,685
9.5
Other
1,044
1,263
8,206
285
396
-
11,196
1.2
Revenues from contracts with customers
146,804
198,543
144,758
132,117
277,779
146
900,149
100.0
Net sales to customers
146,804
198,543
144,758
132,117
277,779
146
900,149
100.0
(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
Major countries and regions in each category other than Japan
Greater China China, Hong Kong, Taiwan
ASEAN Thailand, Vietnam, Indonesia
Americas U.S., Mexico
Europe U.K., Germany
Other Korea
“Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information processing services, and professional service
- Property, plant and equipment
(Millions of yen)
Japan
Americas
Other
Total
58,943
21,458
6,990
87,392
- Net sales
- Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.
Current Consolidated Fiscal Year (April 1, 2024 to March 31, 2025)- Products and Services
Omitted, as the same information has been disclosed under Segment Information.
- Geographical Information
- Net sales
Group net sales consist primarily of revenues recognized from contracts with customers. The following provides detail of net sales for each reportable segment, broken down by geographic region.
(Millions of yen)
Reportable Segments
Others (Note) 3
Total
Composition (%)
Functional Materials
Advanced
Materials & Processing
Electronics & Energy
Mobility
Life & Healthcare
Japan
71,237
35,795
56,726
41,574
72,169
101
277,605
29.4
Greater China
19,665
94,774
69,579
28,937
4,561
-
217,517
23.0
ASEAN
31,598
72,465
10,428
38,842
7,257
-
160,593
17.0
Americas
22,767
4,427
10,190
20,910
128,606
-
186,902
19.8
Europe
7,427
1,281
5,351
1,540
74,077
-
89,678
9.5
Other
1,048
1,883
9,038
286
408
-
12,664
1.3
Revenues from contracts with customers
153,746
210,627
161,315
132,091
287,079
101
944,961
100.0
Net sales to customers
153,746
210,627
161,315
132,091
287,079
101
944,961
100.0
(Note) 1. Net sales are categorized by country or region, according to the location of the customer.
Major countries and regions in each category other than Japan
Greater China China, Hong Kong, Taiwan
ASEAN Thailand, Vietnam, Indonesia
Americas U.S., Mexico
Europe U.K., Germany
Other Korea
“Others” is a business segment consisting of businesses not included in Reportable Segments, and includes information processing services, and professional service
- Property, plant and equipment
(Millions of yen)
Japan
Americas
Other
Total
62,858
21,072
7,740
91,671
- Net sales
- Major Customers
Information not presented here, since no single customer accounts for 10% or more of consolidated net sales.
- Products and Services
- Products and Services
- Impairment Losses of Non-Current Assets for Each Reportable SegmentPrior Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
(Millions of yen)
Reportable Segments
Others
Corporate/ Elimination
Total
Functional Materials
Advanced Materials & Processing
Electronics & Energy
Mobility
Life & Healthcare
Total
Impairment loss
2,276
-
-
-
-
2,276
-
-
2,276
(Note) The Functional Materials segment recorded impairment losses of ¥2,276 million for business assets etc. related to color former manufacturing business due to declining profitability. The Company wrote down the book value of these assets to their recoverable amounts.
Current Consolidated Fiscal Year (April 1, 2024 to March 31, 2025)(Millions of yen)
Reportable Segments
Others
Corporate/ Elimination
Total
Functional Materials
Advanced Materials & Processing
Electronics & Energy
Mobility
Life & Healthcare
Total
Impairment loss
-
-
-
-
1,173
1,173
-
-
1,173
(Note) The Life & Healthcare segment recorded impairment losses of ¥1,173 million for goodwill and other assets related to the pharmaceuticals and cosmetic ingredients sales business in the U.S., as the initially expected earnings are no longer deemed achievable. The Company wrote down the book value of these assets to their recoverable amounts.
- Amortization and Unamortized Balance of Goodwill for Each Reportable Segment Prior Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
Omitted, as the same information has been disclosed under Segment Information.
Current Consolidated Fiscal Year (April 1, 2024 to March 31, 2025)Omitted, as the same information has been disclosed under Segment Information.
- Information About Gain on Negative Goodwill for Each Reportable Segment Prior Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
No matters to report.
Current Consolidated Fiscal Year (April 1, 2024 to March 31, 2025)No matters to report.
(Per-Share Data)Prior Consolidated Fiscal Year (April 1, 2023 - March 31, 2024) | Current Consolidated Fiscal Year (April 1, 2024 - March 31, 2025) | |
Net assets per share | ¥3,463.84 | ¥3,679.09 |
Earnings per share | ¥194.96 | ¥230.39 |
(Note) 1. Information for diluted earnings per share is not presented, as the Company does not issue any stock with dilutive effects.
Shares of the Company held by the Stock-Granting Trust for Directors are recorded as treasury stock under shareholders' equity. These shares are included in treasury stock subtracted from the total number of shares issued as of the end of the fiscal year for calculating net assets per share (288,500 shares in the previous consolidated fiscal year; 282,400 shares in the current consolidated fiscal year). In addition, the aforementioned shares are included in treasury stock subtracted from the calculation of average number of shares during the fiscal period used for calculating earnings per share (289,923 shares in the previous consolidated fiscal year; 284,746 shares in the current consolidated fiscal year).
Basic earnings per share calculations are as shown below.
Prior Consolidated Fiscal Year (April 1, 2023 - March 31, 2024) | Current Consolidated Fiscal Year (April 1, 2024 - March 31, 2025) | |
Profit attributable to owners of the parent (millions of yen) | 22,402 | 25,521 |
Profit attributable to common stock owners of the parent (millions of yen) | 22,402 | 25,521 |
Average number of outstanding shares of common stock (shares) | 114,911,971 | 110,774,626 |
(Repurchase of Own Shares)
At a meeting held on May 8, 2025, the Company's board of directors resolved to repurchase its own shares based on the provisions of Article 156 of the Companies Act, applied mutatis mutandis to Article 165, Paragraph 3 of the same Act.
Reasons for the repurchase of own shares
The Company’s board of directors, at a meeting held on May 8, 2024, made a resolution to change Shareholder Returns Policy in Medium-Term Management Plan ACE 2.0. and to implement a total payout ratio of 100% as a limited measure for the two years until the final year of ACE 2.0. Pursuant to this policy, the Company will repurchase its own shares.
Details of shares to be repurchased
Class of shares to be repurchased Common shares
Total number of shares that may be repurchased 7,500,000 shares (maximum)
(Equivalent to 6.90% of outstanding shares, excluding treasury shares)
Total value of shares that may be repurchased 12 billion yen (maximum)
Repurchase period From May 9, 2025 to October 31, 2025
Repurchase method Market purchases
(Cancellation of Own Shares)
At a meeting held May 8, 2025, the Company's board of directors resolved to cancel its own shares based on the provisions of Article 178 of the Companies Act.
Class of shares to be cancelled Common shares
Total number of shares that may be cancelled 5,000,000 shares
(Equivalent to 4.35% of outstanding shares, including treasury shares)
Effective date of the cancellation May 30, 2025
Reference: Treasury shares held as of April 30, 2025
Total number of shares issued (excluding treasury shares) 108,747,429 shares Total number of treasury shares 6,160,856 shares
(*) The number of treasury shares as of April 30, 2025 does not include 282,400 Company shares held by the Stock-Granting Trust for Directors.