Nagase & Co., Ltd. TSE:8012

Nagase : FY2024 Third Quarter Financial Briefing

Published

Source: MarketScreener

FY2024

Third Quarter

Financial Briefing

NAGASE&CO.,LTD.

Stock exchange listing : Tokyo (Prime Market)

Code number : 8012

February ６, 202５

Contents

■ Consolidated Statements Income

P３

■ Gross Profit by Region

P４

■ Gross Profit by Business & Segment

P５

■ Operating Income by Business & Segment

P６

■ Sales, Gross Profit and Operating Income by Quarter

P7

■ Segment Overview

P8～P1２

■ Overview of Major Manufacturing Subsidiaries

P1３～１５

■ Consolidated Balance Sheets

P1６

■ Consolidated Cash Flows

P１７

■ FY2024 Earnings Projection (No Change)

P1８～P2０

■ Shareholder Returns

P2１

  • Sales, Gross Profit, and Operating Income by Quarter (Before Allocation of Corporate & Others)
  • Past Materials

Copyright © 202５ Nagase & Co., Ltd.

Consolidated Statements Income

  • Gross profit was the highest ever for the cumulative consolidated third quarter; gross profit margin improved across all business segments
  • Operating income reached a record high in the cumulative consolidated third quarter and operating income margin improved, despite higher general and administrative expenses, including selling and personnel expenses stemming from increased logistics costs
  • Extraordinary gains or losses includes loss on withdrawal from the glass substrate thinning business in China (approx. 2.0 billion yen), gain on sales of strategic cross-shareholdings (approx. 2.7 billion yen), and gain on sales of fixed assets (approx. 2.1 billion yen).

100 millions of yen

FY2023 3Q

FY2024 3Q

Change

Vs.PY

Forecast

Achievement

Sales

6,777

7,180

403

106%

9,400

76%

Gross profit

1,214

1,374

159

113%

1,800

76%

17.9%

19.1%

1.2ppt

－

19.1%

－

SG&A expenses

984

1,064

79

108%

1,435

－

Operating

230

310

79

135%

365

85%

income

＜OP ratio＞

3.4%

4.3%

0.9ppt

－

3.9%

Ordinary

231

307

75

132%

352

87%

income

Profit Attributable to

180

217

37

121%

280

78%

owners of the parent

US$ Exchange rate

@ 143.3

@ 152.6

@ 9.3

Weak yen

@ 148.0

(period average)

RMB Exchange rate

@ 20.0

@ 21.2

@ 1.2

Weak yen

@ 20.0

(period average)

  • Offset to sales and cost of sales from revenue recognition standards: FY2023 3Q -¥205.3 billion, FY2024 3Q -¥209.3 billion
  • Impact from foreign exchange: Gross profit, +¥5.1 billion; Operating income, +¥0.9 billion

Copyright © 202５ Nagase & Co., Ltd.

3

Gross Profit by Region

  • Higher profit both domestic and overseas
  • Increase in domestic business sales, due to higher sales (including exports) of raw materials and formulated epoxy resins for semiconductor industries
  • Profits increased due to impacts of the weakening yen overseas, higher sales of food ingredients (mainly in Europe and the U.S.), and higher sales of resins in ASEAN countries

Domestic & Overseas Gross profit(100 millions of yen)

Overseas gross profit By Region(100 millions of yen)

1,400

1,200

1,000

800

600

400

200

0

Total 1,214

Overseas

660

Overseas gross

profit ratio

54.3%

Domestic

554

Total 1,374

Overseas

749

Overseas gross

profit ratio

54.6%

Domestic

624

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

800

700

600

500

400

300

200

100

Total 660

Other

9

1.5%

Europe

110

16.8%

Americas

247 37.5%

ASEAN

113

17.2%

Greater

China

27.0%

178

Other Total 749 12

1.6%

Europe

113 15.2%

Americas

288 38.4%

ASEAN

136 18.2%

Greater

China

26.6%

199

FY2023 3Q

FY2024 3Q

0

FY2023 3Q

FY2024 3Q

※Domestic figures under Domestic & Overseas Gross Profit include inter-regional adjustments

Copyright © 202５ Nagase & Co., Ltd.

4

Gross Profit By Business & Segment (100 millions of yen)

Gross Profit by Business & Segment

  • Trading business profits increased to ¥１０．２ billion due to strong performance in the Functional Materials, Advanced Materials & Processing, and Electronics & Energy segments , stemming from moderate recoveries, mainly in the semiconductor, electrical appliances , and electronics industries
  • Manufacturing business profits increased ¥5.7 billion, mainly due to higher food ingredient sales at the Prinova Group in Life & Healthcare, narrowed losses in the Functional Materials color formers business, and higher sales of formulated epoxy resins at Nagase ChemteX in the Electronics & Energy business
  • The Functional Materials, and Electronics & Energy, Life & Healthcare segments grew significantly (see Segment Overview for more details).

Change in Gross Profit By Segment (100 millions of yen)

1,400

Total 1,374

Total 1,374

1,300

Total 1,214

Total 1,214

Functional

Materials

18.2%

1,200

Functional

249

Manufa

Materials 16.9%

1,100

cturing 41.2%

Advanced

Manufa

566

205

Materials 14.4%

1,000

Advanced

& Processing

cturing 41.9%

Materials 14.7%

198

900

509

& Processing

800

178

Electronics &

Energy

Electronics &

21.3%

700

Energy

292

20.5%

249

600

Mobility

9.3%

Mobility

127

9.5%

500

115

400

Trading

Trading

807

58.8%

705 58.1%

300

Life &

Life &

36.8%

38.4% Healthcare

200

Healthcare

505

465

100

0

By Business

By Business

By Segment

By Segment

FY2023 3Q

FY2024 3Q

FY2023 3Q

FY2024 3Q

  • Calculation of segment composition ratios does not include Corporate & Others and eliminations

Life &

Corporate

Healthcare & Others

1,374

39

0

Electronics Mobility

& Energy 12

43

Functional

Materials

44

Advanced

Materials

1,214 & Processing

20

FY2023 3Q

FY2024 3Q

History of Gross Profit(100 millions of yen)

457

463

452

432

401

425

387

１Q

２Q

３Q

４Q

FY2023 FY2024

Copyright © 202５ Nagase & Co., Ltd.

5

Change in Operating Income By Segment (100 millions of yen)

Operating Income by Business & Segment

  • Trading business profits increased approx. ¥8.9 billion due to an increase in gross profit and impacts of actuarial gains and losses
  • Despite strong sales of formulated epoxy resins by Nagase ChemteX and narrowed losses in the color formers business, manufacturing business profits decreased by approx. ¥0.9 billion overall, mainly due to lower profit in the Prinova Group
  • Corporate & Others profits increased, mainly due to the impact of actuarial gains and losses (retirement benefit actuarial differences: approx. ¥0.9 billion in expenses in fiscal 2023 and ¥3.5 billion in profit for fiscal 2024, equally prorated and recorded on a quarterly

basis)

Operating Income by Business & Segment(100 millions of yen)

340

Total 310

Total 310

310

Manufa

Functional

280

cturing

19.4%

Materials

60

74

26.3%

250

Total 230

Total 230

220

Functional

Advanced

Materials 18.4%

Materials19.2%

Manufa

cturing

43

& Processing

190

30.2%

Advanced

54

69

Materials17.7%

160

& Processing

41

Electronics

130

Trading

Electronics

& Energy

31.2%

249

80.6%

& Energy 26.7%

88

100

63

Trading

Mobility

Mobility

70

160

69.8%

12.1%

12.3%

28

34

Life &

Life &

11.0%

40

25.1%

Healthcare

Healthcare

31

10

59

Others

26

(20)

Others

By Business

By Business (7) By Segment

By Segment

FY2023 3Q

FY2024 3Q

FY2023 3Q

FY2024 3Q

  • Calculation of segment composition ratios does not include Corporate & Others and eliminations

Copyright © 202５

Corporate

Electronics Mobility

& Others

310

33

& Energy

6

25

Functional

Materials

Life &

31

Healthcare

Advanced

(28)

Materials

230

& Processing

12

FY2023 3Q

FY2024 3Q

History of Operating Income (100 millions of yen)

107

103

99

85

69

75

75

１Q

２Q

３Q

４Q

FY2023

FY2024

Nagase & Co., Ltd.

6

Sales, Gross Profit and Operating Income by Quarter

  • Gross profit in the third quarter was strong in the trading business, driven by Electronics and Energy, but profit growth in the manufacturing business was sluggish, mainly in the Prinova Group, resulting in an overall decrease in profit compared to the second quarter.
  • Operating income for the third quarter declined compared to the second quarter due to a decrease in gross profit.

100 millions of yen

Quarterly results

3Q

FY2024

Achieve

forecast

ment

１Q

２Q

３Q

４Q

YTD

FY2023

Actual

Sales

FY2024

2,392

2,417

2,370

7,180

9,400

76%

FY2023

2,240

2,261

2,275

2,224

6,777

9,001

YoY%

6.8%

6.9%

4.2%

5.9%

4.4%

Gross profit

FY2024

457

463

452

1,374

1,800

76%

FY2023

387

401

425

432

1,214

1,647

YoY%

18.3%

15.3%

6.3%

13.1%

9.3%

FY2024

19.1%

19.2%

19.1%

19.1%

19.1%

FY2023

17.3%

17.8%

18.7%

19.4%

17.9%

18.3%

Manufacturing

FY2024

188

195

182

566

FY2023

165

160

183

185

509

695

Trading

FY2024

269

267

270

807

FY2023

221

241

242

246

705

952

Operating income

FY2024

107

103

99

310

365

85%

FY2023

69

75

85

75

230

306

YoY%

54.3%

37.1%

16.5%

34.7%

19.2%

FY2024

4.5%

4.3%

4.2%

4.3%

3.9%

FY2023

3.1%

3.3%

3.8%

3.4%

3.4%

3.4%

Manufacturing

FY2024

24

16

19

60

FY2023

26

17

25

21

69

91

Trading

FY2024

83

86

80

249

FY2023

43

58

59

54

160

214

*Manufacturing figures represent the aggregate totals of manufacturing subsidiaries.

*Trading figures include the aggregate totals of NAGASE and our sales subsidiaries, as well as Corporate & Others and eliminations

*Certain eliminations for FY2023 have been reclassified to manufacturing

Copyright © 202５ Nagase & Co., Ltd.

7

Functional

Materials

Segment Overview: Functional Materials

  • Gross profits increased primarily for the following reasons
    • Coating materials sales increased due to higher market prices, despite demand remaining flat for both automotive and architectural applications
    • Sales of raw materials for semiconductor materials increased
    • Losses narrowed in the color former business due to the withdrawal of the U.S. business and reviewing unprofitable transactions and business streamlining of manufacturing bases in Japan
  • Operating income increased due to improved gross profit

100 millions of yen

Quarterly results3Q FY2024 Achiev forecast ement

１Q

２Q

３Q

４Q

YTD

FY2023

Actual

Sales

FY2024

405

388

372

1,166

1,588

73%

FY2023

364

357

375

370

1,097

1,468

YoY%

11.4%

8.7%

(0.7%)

6.4%

8.2%

Gross profit

FY2024

88

81

79

249

326

77%

FY2023

64

68

73

75

205

281

YoY%

37.8%

19.9%

8.5%

21.4%

15.9%

FY2024

21.8%

21.1%

21.3%

21.4%

20.5%

FY2023

17.6%

19.1%

19.5%

20.4%

18.7%

19.2%

Manufacturing

FY2024

6

6

4

17

FY2023

1

1

2

3

5

8

Trading

FY2024

82

75

74

232

FY2023

62

66

71

71

200

272

Operating income

FY2024

29

24

20

74

86

87%

FY2023

10

14

19

17

43

61

YoY%

197.2%

67.7%

7.4%

71.1%

39.6%

FY2024

7.3%

6.3%

5.5%

6.4%

5.4%

FY2023

2.7%

4.1%

5.1%

4.8%

4.0%

4.2%

Manufacturing

FY2024

2

3

0

6

FY2023

(3)

(2)

(2)

(1)

(7)

(9)

Trading

FY2024

27

21

20

68

FY2023

13

17

21

19

51

71

[Key Measures]

Performance Chemicals Dept.

  • Capture business opportunities in the etrochemical industry and in response to market changes by leveraging our global procurement capabilities
  • Propose sustainable materials and solutions

(biodegradable bio-SAPs, chemical joint logistics matching, Mixing Concierges , etc.)

Speciality Chemicals Dept.

  • Expand chemicals business for the semiconductor industry, where we expect market growth
  • Create businesses leveraging unique technologies (flow synthesis, MOF*, etc.)

Mixing Concierges

:NAGASE develops and provides software to analyze and visualize liquids

Copyright © 202５ Nagase & Co., Ltd.

8

Advanced Materials

& Processing

Segment Overview: Advanced Materials & Processing

  • Gross profits increased primarily for the following reasons
    • Resin sales increased with the recovery in demand for office equipment and other applications in the electrical appliances and electronic industries
    • Sales of industrial hoses and civil engineering pipes increased at TOTAKU INDUSTRIES, Inc.
  • Operating income increased due to improved gross profit

[Key Measures]

Polymer Global Account Dept.

100 millions of yen

▶ Shift resources to priority (e.g., Mexico and

Quarterly results

3Q

FY2024

Achiev

forecast

ement

India) in line with the transition in global

brand owner production bases

１Q

２Q

３Q

４Q

YTD

FY2023

Actual

Sales

FY2024

535

546

528

1,610

2,049

79%

▶ Expand transactions in

FY2023

485

536

477

485

1,499

1,985

environmental materials

YoY%

10.2%

1.9%

10.7%

7.4%

3.2%

(NAGASE products and products from other

companies)

Gross profit

FY2024

65

65

67

198

255

78%

FY2023

54

61

61

57

178

236

▶ Improve efficiency of global business

YoY%

20.1%

5.4%

9.1%

11.2%

8.0%

operations and optimize organizational

FY2024

12.3%

11.9%

12.8%

12.3%

12.4%

structure

FY2023

11.3%

11.5%

13.0%

11.9%

11.9%

11.9%

Manufacturing

FY2024

12

12

15

40

FY2023

11

12

14

11

37

49

Trading

FY2024

53

52

52

157

FY2023

43

49

47

46

140

186

Operating income

FY2024

15

19

19

54

59

92%

FY2023

10

15

16

11

41

53

YoY%

56.3%

26.7%

16.3%

29.8%

11.0%

FY2024

3.0%

3.6%

3.6%

3.4%

2.9%

FY2023

2.1%

2.9%

3.4%

2.3%

2.8%

2.7%

Manufacturing

FY2024

2

2

4

9

FY2023

1

2

3

0

7

8

Trading

FY2024

13

17

14

45

FY2023

8

13

12

10

34

44

Manufacturing subsidiaries:

TOTAKU INDUSTRIES, INC.

industrial hoses and civil engineering pipes

Copyright © 202５ Nagase & Co., Ltd.

9

Electronics &

Energy

Segment Overview: Electronics & Energy

  • Gross profits increased primarily for the following reasons
    • Sales of materials for high-end smartphones, tablets, and other electronic devices increased due to a recovery in demand
    • Sales of semiconductor materials increased due to the moderate market recovery
    • Sales of Nagase ChemteX's formulated epoxy resins increased due to strong sales for semiconductors for AI server semiconductors
  • Operating income increased due to improved gross profit

[Key Measures]

Quarterly results

3Q

１Q

２Q

３Q

４Q

YTD

Sales

FY2024

400

398

413

1,212

FY2023

355

356

375

360

1,087

YoY%

12.8%

11.7%

10.1%

11.5%

Gross profit

FY2024

95

97

99

292

FY2023

77

86

85

92

249

YoY%

23.7%

13.4%

15.7%

17.4%

FY2024

23.8%

24.5%

24.0%

24.1%

FY2023

21.7%

24.2%

22.9%

25.8%

22.9%

Manufacturing

FY2024

33

35

34

102

FY2023

27

31

33

39

92

Trading

FY2024

62

62

65

190

FY2023

50

54

52

53

157

Operating income

FY2024

27

32

28

88

FY2023

17

24

21

25

63

YoY%

55.5%

30.9%

35.9%

39.5%

FY2024

6.9%

8.1%

7.0%

7.3%

FY2023

5.0%

6.9%

5.6%

6.9%

5.8%

Manufacturing

FY2024

7

9

7

25

FY2023

4

8

8

11

22

Trading

FY2024

19

22

20

63

FY2023

12

15

12

13

40

Electronics Dept.

100 millions of yen

▶ Expansion of commercial products in the

FY2024

Achiev

forecast

ement

semiconductor market

・ Expand business based on expansion of

FY2023

domestic production

Actual

1,542

79%

・ Expand business in Europe, the U.S., India,

1,447

etc.

▶ Develop business for cutting-edge electronic

6.5%

devices

386

76%

342

Advanced Functional Materials Dept.

12.8%

25.0%

▶ Expand sales of Nagase ChemteX products

23.6%

for advanced semiconductors(LMC holds the

dominant market share for molding

131 compounds for advanced semiconductors)

▶ a-SMC aims to become the de facto

210 standard for molding compounds for next-

generation semiconductors

108

82%

▶ Expand the recovery and recycling business

88

22.0%

of developer solution for semiconductors

7.0%

6.1%

34

54

LMC： Liquid Molding

a-SMC：Advanced Sheet

Compound

Molding Compound 10

Copyright © 202５ Nagase & Co., Ltd.