Nagase (8012) investor relations material

Executive summary

• Achieved record-high net sales and profits for the cumulative third quarter, with net sales up 0.8% YoY to ¥724,069 million, gross profit up 5.9% to ¥138,896 million, and operating income up 7.1% to ¥33,205 million, driven by improved profitability and strong performance in the Prinova Group and manufacturing businesses.

• Profit attributable to owners of the parent increased 15.0% YoY to ¥24,976 million, and comprehensive income surged 53.9% to ¥38,390 million.

• Gross profit margin improved by 0.9 percentage points year-over-year, reflecting effective ROIC management.

• Extraordinary items included losses from business withdrawal in China, gains from negative goodwill on M&A, and gains from investment securities sales.

• Earnings per share for the period were ¥236.02, up from ¥194.79 in the prior year.

Financial highlights

• Net sales for FY2025 3Q reached ¥724.0 billion, up ¥6.0 billion year-over-year (101% of prior year).

• Gross profit rose to ¥138.8 billion (106% YoY), with a gross profit margin of 19.2% (+0.9ppt YoY).

• Operating income increased to ¥33.2 billion (107% YoY), despite higher SG&A expenses.

• Profit attributable to owners of the parent was ¥24.9 billion, up ¥3.2 billion YoY (115%).

• Ordinary income for the nine months was ¥33,600 million, up 9.4% year-over-year.

Outlook and guidance

• FY2025 full-year sales forecast at ¥964.0 billion, gross profit at ¥183.0 billion, operating income at ¥40.7 billion, and profit attributable to owners of the parent of ¥31,500 million (+23.4% YoY).

• Earnings per share for the full year projected at ¥300.53.

• No revision to previous forecasts; trends remain within projected ranges.

• Life & Healthcare and Electronics & Energy segments expected to drive profit growth, while Mobility and Functional Materials face headwinds.

• Annual dividend forecast revised upward to ¥100.00 per share.