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Copyright © 2026 NAGASE & CO., LTD. FY2025 Third Quarter Financial Briefing NAGASE&CO.,LTD. Stock exchange listing : Tokyo (Prime Market) Code number : 8012 February 5, 2026
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Copyright © 2026 NAGASE & CO., LTD. 2 Executive Summary FY2025 Third Quarter Results FY2025 Earnings Projections The Company posted record-high net sales and profits at all levels on a cumulative third- quarter basis Profitability improved through ROIC management, improving gross profit margin by 0.9 percentage points The trading business remained sluggish in the Functional Materials and Mobility automobile -related business. Performance overall was strong in the Prinova Group. The trading company business performed well due to an increase in sales volume. The group's manufacturing business reported a trend toward recovery with the acquisition of new business, mainly in the Solutions business, while the Nutrition business contributed through efficiency improvements Sales remained strong for Nagase ChemteX formulated epoxy resin used in semiconductors for AI servers, despite impacts from U.S.-China relations Extraordinary gains (losses) recorded mainly consist of losses related to business withdrawal in China, gains from negative goodwill arising from M&A transactions, and gains from the sale of investment securities Nagase ChemteX sales of formulated epoxy resins for semiconductors used in AI servers continues to face an uncertain market outlook due to U.S.-China relations, and sales for mobile device applications were slower than expected The Prinova Group Solutions business performed better than expected Although each business entails favorable and unfavorable factors, these trends are generally within the range of our projections, and we have not revised earlier forecasts Negative YoY Factors Positive YoY Factors Below forecast Above forecast Year-on-year comparison Comparison with previously announced forecast
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Copyright © 2026 NAGASE & CO., LTD. Contents ■ Consolidated Statements Income ■ Gross Profit by Region ■ Gross Profit by Business & Segment ■ Operating Income by Business & Segment ■ Segment Overview ■ Overview of Major Manufacturing Subsidiaries ■ Prinova Group Nutrition Business Status ■ Consolidated Balance Sheets ■ Consolidated Cash Flows ■ FY202５ Earnings Projection ■ Shareholder Returns <Appendix> Management Conscious of Capital Costs and Share Prices Business Environment Surrounding NAGASE Segments Sales, Gross Profit, and Operating Income by Quarter Growth Strategies for the Future Cash Allocation in FY2025 Prinova Group Business Overview Major Cash Inflows and Outflows for FY2021-FY2024 P４ P5 P6 P7 P8～P12 P13～P15 P16 P17 P18 P19～P21 P22 * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. We used estimates of post-revision figures for fiscal 2024 results in the fiscal 2024 financial statements. Estimates have now been replaced with finalized figures. * 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 P24 P25 P26 P27～P31 P32 P33 P34 3
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Copyright © 2026 NAGASE & CO., LTD. 4 Consolidated Statements Income * Impact from foreign exchange: Gross profit, -¥0.9 billion; Operating income, -¥0.1 billion * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. ▶ Posted record-high net sales and profits at all levels on a cumulative third-quarter basis ▶ Gross profit increased due to efforts toward improving profit margin ▶ Operating income increased, despite an increase in selling, general and administrative expenses, which was caused by M&A-related expenses and an increase in retirement benefit expenses related to the amortization of actuarial differences ▶ Profit attributable to owners of the parent increased despite a loss on business withdrawal due to the fiscal 2020 decision to withdraw from the thin-film processing business for glass substrates in China (-¥2.6 billion). This increase was due in part to posting a gain on negative goodwill (¥1.7 billion) and a gain on sale of investment securities (¥3.2 billion) 100 millions of yen FY2024 3Q FY2025 3Q Change Vs.PY Forecast Achievement Sales 7,180 7,240 60 101% 9,640 75% Gross profit 1,312 1,388 76 106% 1,830 76% <GP ratio> 18.3% 19.2% 0.9ppt － 19.0% － SG&A expenses 1,002 1,056 54 105% 1,423 74% Operating income 310 332 22 107% 407 82% ＜OP ratio＞ 4.3% 4.6% 0.3ppt － 4.2% － (excluding the effect of actuarial gains and losses) 283 334 51 118% 410 82% Ordinary income 307 336 29 109% 406 83% Profit Attributable to owners of the parent 217 249 32 115% 315 79% US$ Exchange rate (period average) @ 152.6 @ 148.7 @ 3.9 Strong yen @ 148.0 RMB Exchange rate (period average) @ 21.2 @ 20.8 @ 0.4 Strong yen @ 20.6
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Copyright © 2026 NAGASE & CO., LTD. Gross Profit by Region ▶ Higher domestic gross profit stemming from an improved profit margin at Nagase Viita and higher sales of formulated epoxy resins at Nagase ChemteX (including exports) ▶ Higher overseas gross profit driven by strong performance at the Prinova Group in the Americas, while performance in the semiconductor-related business in Greater China and ASEAN also remained strong 5 Domestic & Overseas Gross profit(100 millions of yen) Overseas gross profit By Region(100 millions of yen) * Domestic figures under Domestic & Overseas Gross Profit include inter-regional adjustments * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. Domestic 624 Domestic 653 Overseas 687 Overseas 735 Total 1,312 Total 1,388 Overseas gross profit ratio 52.4% Overseas gross profit ratio 52.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 FY2024 3Q FY2025 3Q Greater China 199 Greater China 216 ASEAN 136 ASEAN 147 Americas 226 Americas 240 Europe 113 Europe 116 Other 12 Other 13 Total 687 Total 735 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 FY2024 3Q FY2025 3Q 1.8% 16.5% 15.9% 1.9% 32.9% 32.8% 19.8% 20.0% 29.0% 29.4%
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Copyright © 2026 NAGASE & CO., LTD. FY2024 3Q FY2025 3Q Gross Profit by Business & Segment ▶ The trading business remained flat, despite strong performance in the Electronics & Energy and Life & Healthcare segments, as Mobility and Functional Materials automobile-related business experienced weaker results ▶ Manufacturing business profits increased roughly ¥7.7 billion, mainly due to a recovery in the Prinova Group manufacturing business under the Life & Healthcare segment and an improved profit margin at Nagase Viita, as well as increased sales of formulated epoxy resins at Nagase ChemteX under the Electronics & Energy segment ▶ Mobility and Functional Materials experienced a decrease, while the Electronics & Energy and Life & Healthcare segments saw growth during the period (see Segment Overview for more details) Change in Gross Profit By Segment (100 millions of yen) History of Gross Profit (100 millions of yen) Gross Profit By Business & Segment (100 millions of yen) * Calculation of segment composition ratios does not include Corporate & Others and eliminations * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. Life & Healthcare 41 Corporate & Others 1 Electronics & Energy 46 Mobility (9) Advanced Materials & Processing 5 Functional Materials (8) 1,312 1,388 6 437 442 432 420443 465 479 １Q ２Q ３Q ４Q FY2024 FY2025 Trading 807 Trading 807 Manufa cturing 504 Manufa cturing 581 Life & Healthcare 443 Life & Healthcare 484 Mobility 127 Mobility 117 Electronics & Energy 292 Electronics & Energy 339 Advanced Materials & Processing 198 Advanced Materials & Processing 203 Functional Materials 249 Functional Materials 240 Total 1,312 Total 1,388 Total 1,312 Total 1,388 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 By Business By Business By Segment By Segment FY2024 3Q FY2025 3Q FY2024 3Q FY2025 3Q 38.5% 61.5% 41.9% 58.1% 19.0% 15.1% 22.3% 9.7% 33.8% 17.4% 14.7% 24.5% 8.5% 35.0%
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Copyright © 2026 NAGASE & CO., LTD. FY2024 3Q FY2025 3Q Operating Income by Business & Segment ▶ Trading business profit decreased roughly ¥3.8 billion due to M&A -related expenses and the impact of an increase in retirement benefit expenses related to the amortization of actuarial differences ▶ Manufacturing business profit rose roughly ¥6.0 billion in a positive rebound from the allowance for doubtful accounts record ed in the year-ago period (¥1.3 billion) by the Prinova Group, advancements in efficiency in the Nutrition business, and the conclusion of amortization for a portion of intangible assets at Nagase Viita ▶ Profit under Corporate & Others decreased, mainly due to the impact of an increase in retirement benefit expenses related to the amortization of actuarial differences (Retirement benefit actuarial differences: Approximately ¥3.5 billion gain in fiscal 2024 and approximately ¥0.3 billion loss in fiscal 2025 equally prorated and recorded on a quarterly basis) 7 History of Operating Income (100 millions of yen) Change in Operating Income By Segment (100 millions of yen) Operating Income by Business & Segment (100 millions of yen) Life & Healthcare 38 Corporate & Others (26) Electronics & Energy 24 Mobility (7) Advanced Materials & Processing 0 Functional Materials (7) 332 310 * Calculation of segment composition ratios does not include Corporate & Others and eliminations * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. 107 103 99 80 102 108 121 １Q ２Q ３Q ４Q FY2024 FY2025 Trading 249 Trading 211 Manufa cturing 60 Manufa cturing 120 Others 26 Life & Healthcare 31 Life & Healthcare 69 Mobility 34 Mobility 27 Electronics & Energy 88 Electronics & Energy 113 Advanced Materials & Processing 54 Advanced Materials & Processing 54 Functional Materials 74 Functional Materials 67 Total 310 Total 332 Total 310 Total 332 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 By Business By Business By Segment By Segment FY2024 3Q FY2025 3Q FY2024 3Q FY2025 3Q 19.4% 80.6% 36.2% 63.8% 26.3% 19.2% 31.2% 12.3% 11.0% 20.3% 16.4% 34.1% 8.2% 21.0%
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Copyright © 2026 NAGASE & CO., LTD. Segment Overview: Functional Materials ▶ Gross profit decreased primarily for the following reasons ・ Coating materials sales were lower due to weak demand automotive and architectural applications ・ Sales of raw materials for semiconductor materials increased ▶ Operating income decreased due to weaker gross profit 8 Performance Chemicals Dept. Speciality Chemicals Dept. [Key Measures] ▶ Capture business opportunities in the etrochemical industry and in response to market changes by leveraging our global procurement capabilities ▶ Propose sustainable materials and solutions ▶ Business expansion through contributions to the supply chain in upstream segment of the semiconductor ▶ Creating businesses with utilizing unique technologies such as flow synthesis, metal- organic frameworks (MOFs), etc. (biodegradable bio-SAPs, chemical joint logistics matching, Mixing Concierges , etc.) Functional Materials Invested in MiChS, a company with many years of experience and knowledge in this field Rapid Mixing High Heat Exchange Efficiency Flow Synthesis Continuous Synthesis of Chemicals in a Pipeline Semiconductors Electronic Equipment Pharmaceuticals, Etc. 100 millions of yen Quarterly results FY2025 Forecast Achiev ement １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 380 381 391 1,153 1,570 73% FY2024 405 388 372 370 1,166 1,537 YoY% (6.1%) (1.7%) 4.9% (1.1%) 2.1% Gross profit FY2025 77 80 82 240 328 73% FY2024 88 81 79 75 249 325 YoY% (11.7%) (2.2%) 4.1% (3.6%) 0.9% <profit ratio> FY2025 20.5% 21.0% 21.1% 20.9% 20.9% FY2024 21.8% 21.1% 21.3% 20.3% 21.4% 21.1% ManufacturingFY2025 5 6 7 19 FY2024 6 6 4 4 17 22 Trading FY2025 72 73 75 221 FY2024 82 75 74 70 232 302 Operating income FY2025 21 20 25 67 88 77% FY2024 29 24 20 17 74 92 YoY% (27.4%) (15.6%) 23.8% (9.5%) (4.5%) <profit ratio> FY2025 5.7% 5.4% 6.5% 5.9% 5.6% FY2024 7.3% 6.3% 5.5% 4.7% 6.4% 6.0% ManufacturingFY2025 1 2 2 7 FY2024 2 3 0 1 6 7 Trading FY2025 19 18 22 60 FY2024 27 21 20 15 68 84
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Copyright © 2026 NAGASE & CO., LTD. Segment Overview: Advanced Materials & Processing 9 Polymer Global Account Dept. ▶ Shift resources to priority (e.g., Mexico and India) in line with the transition in global brand owner production bases ▶ Expand transactions in environmental materials (NAGASE products and products from other companies) ▶ Improve efficiency of global business operations and optimize organizational structure ▶ Gross profit increased primarily for the following reasons: • Sales of resins decreased due to lower volume for the Electrical Appliances and Electronics industries, including OA equipmen t and other applications. However, planned product mix improvements resulted in an improved profit margin. • Sales of industrial hoses and civil engineering pipes increased at Nagase RooTAC . ▶ Operating profit remained flat, as increases in gross profit were offset by higher selling, general and administrative expens es, including personnel costs. [Key Measures] Advanced Materials & Processing Manufacturing Subsidiary: TOTAKU INDUSTRIES, Inc. will change its company name effective November 1 Name symbolizing the technology and craftsmanship in the DNA of TOTAKU Root＋TAC Square-shaped TAC Rex (multi-duct square conduit) Contributing to the promotion of utility pole elimination through undergrounding of power lines. During construction After construction 100 millions of yen Quarterly results FY2025 Forecast Achiev ement １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 502 526 512 1,542 2,080 74% FY2024 535 546 528 495 1,610 2,106 YoY% (6.0%) (3.7%) (3.1%) (4.2%) (1.2%) Gross profit FY2025 65 69 69 203 272 75% FY2024 65 65 67 63 198 261 YoY% (0.1%) 6.1% 2.3% 2.8% 3.9% <profit ratio> FY2025 13.1% 13.1% 13.5% 13.2% 13.1% FY2024 12.3% 11.9% 12.8% 12.8% 12.3% 12.4% ManufacturingFY2025 14 14 15 44 FY2024 12 12 15 12 40 53 Trading FY2025 51 54 53 159 FY2024 53 52 52 50 157 208 Operating income FY2025 18 18 17 54 71 77% FY2024 15 19 19 12 54 66 YoY% 14.5% (3.2%) (7.4%) 0.5% 6.2% <profit ratio> FY2025 3.6% 3.6% 3.5% 3.5% 3.4% FY2024 3.0% 3.6% 3.6% 2.5% 3.4% 3.2% ManufacturingFY2025 3 3 3 10 FY2024 2 2 4 1 9 10 Trading FY2025 14 15 13 44 FY2024 13 17 14 10 45 55
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Copyright © 2026 NAGASE & CO., LTD. Segment Overview: Electronics & Energy 10 Electronics Dept. Advanced Functional Materials Dept. ▶ Expansion of commercial products in the semiconductor market ・ Expand business based on expansion of domestic production ・ Expand business in Europe, the U.S., India, etc. ▶ Develop business for cutting-edge electronic devices ▶ Expand sales of Nagase ChemteX products for advanced semiconductors(LMC holds the dominant market share for molding compounds for advanced semiconductors) ▶ a-SMC aims to become the de facto standard for molding compounds for next- generation semiconductors ▶ Expand the recovery and recycling business of developer solution for semiconductors LMC： Liquid Molding Compound a-SMC： Advanced Sheet Molding Compound ▶ Gross profit increased primarily for the following reasons ・ Sales of semiconductor materials increased ・ Despite weakness in sales for mobile device applications, sales of Nagase ChemteX formulated epoxy resins increased with solid performance for resins used in semiconductors for AI servers ・ Pac Tech Group sales for wafer bumping equipment and bumping contract services remained strong ▶ Operating income increased due to improved gross profit, despite posting M&A related expenses [Key Measures] Electronics & Energy 100 millions of yen Quarterly results FY2025 Forecast Achiev ement １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 415 431 442 1,289 1,670 77% FY2024 400 398 413 400 1,212 1,613 YoY% 3.6% 8.3% 7.2% 6.3% 3.5% Gross profit FY2025 103 115 120 339 434 78% FY2024 95 97 99 107 292 400 YoY% 7.9% 17.7% 21.8% 15.9% 8.4% <profit ratio> FY2025 24.8% 26.7% 27.3% 26.3% 26.0% FY2024 23.8% 24.5% 24.0% 26.9% 24.1% 24.8% ManufacturingFY2025 35 47 51 135 FY2024 33 35 34 48 102 150 Trading FY2025 67 67 69 203 FY2024 62 62 65 59 190 249 Operating income FY2025 29 38 45 113 129 88% FY2024 27 32 28 34 88 123 YoY% 5.8% 19.5% 58.9% 28.0% 4.9% <profit ratio> FY2025 7.1% 8.9% 10.3% 8.8% 7.7% FY2024 6.9% 8.1% 7.0% 8.6% 7.3% 7.6% ManufacturingFY2025 9 15 20 45 FY2024 7 9 7 19 25 45 Trading FY2025 19 23 24 67 FY2024 19 22 20 14 63 77
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Copyright © 2026 NAGASE & CO., LTD. Segment Overview: Mobility 11 Mobility Solutions Dept. ▶ Expand electrification-related materials and components further ▶ Invest resources in growth markets (e.g., North America and India) ▶ Gross profit decreased primarily for the following reasons ・ Resin sales, which account for nearly half of gross profit, remained flat ・ Sales decreased for functional materials and functional components related to interior and exterior fittings and electrification ▶ Operating income decreased due to weaker gross profit [Key Measures] Metal insert mold parts for automotive inverters Mobility 100 millions of yen Quarterly results FY2025 Forecast Achiev ement １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 305 332 335 972 1,280 76% FY2024 321 338 343 317 1,003 1,320 YoY% (5.0%) (2.0%) (2.4%) (3.1%) (3.1%) Gross profit FY2025 37 40 39 117 158 75% FY2024 40 43 43 37 127 165 YoY% (7.3%) (6.5%) (9.1%) (7.6%) (4.3%) <profit ratio> FY2025 12.2% 12.3% 11.8% 12.1% 12.3% FY2024 12.5% 12.9% 12.7% 11.8% 12.7% 12.5% ManufacturingFY2025 ー ー ー ー FY2024 ー ー ー ー ー ー Trading FY2025 37 40 39 117 FY2024 40 43 43 37 127 165 Operating income FY2025 8 10 8 27 38 72% FY2024 9 12 12 7 34 42 YoY% (15.1%) (20.5%) (28.5%) (21.7%) (10.4%) <profit ratio> FY2025 2.7% 3.1% 2.6% 2.8% 3.0% FY2024 3.1% 3.8% 3.6% 2.3% 3.5% 3.2% ManufacturingFY2025 ー ー ー ー FY2024 ー ー ー ー ー ー Trading FY2025 8 10 8 27 FY2024 9 12 12 7 34 42
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Copyright © 2026 NAGASE & CO., LTD. Segment Overview: Life & Healthcare 12 Life & Healthcare Products Dept. ▶ Focus on expanding sales of in-house products in Japan and overseas ▶ Expand cross-sales through stronger collaboration among overseas group bases and offices ▶ Expand bio-materials (Creation of NVI*1, NBIC*2 bio-derived materials; e.g., ergothioneine mass produced using fermentation technology) ▶ Expand the Prinova Group manufacturing *1 Nagase Viita *2 Nagase Bio-Innovation Center ▶ Gross profit increased primarily for the following reasons ・ Increased sales of intermediates and pharmaceutical raw materials ・ Nagase Viita saw increased sales of cosmetic ingredients, and it improved its profit margin through cost reductions. ・ Sales of Prinova Group food ingredient sales increased due to higher volume ・ Operating income increased due to higher gross profit, the completion of amortization for certain intangible assets at Nagase Viita, and the efficiency improvements at the Prinova Group [Key Measures] Life & Healthcare Diagnostic enzymes business and others Joined the NAGASE Group on July 1, 2025 Nagase Diagnostics Co., Ltd. Ohito Plant * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. 100 millions of yen Quarterly results FY2025 Forecast Achiev ement １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 768 751 760 2,281 3,039 75% FY2024 728 744 712 685 2,185 2,870 YoY% 5.5% 0.9% 6.9% 4.4% 5.9% Gross profit FY2025 157 160 167 484 636 76% FY2024 148 152 142 137 443 581 YoY% 6.0% 5.4% 17.1% 9.4% 9.4% <profit ratio> FY2025 20.5% 21.3% 22.0% 21.3% 20.9% FY2024 20.4% 20.4% 20.0% 20.1% 20.3% 20.2% ManufacturingFY2025 121 128 131 381 FY2024 116 120 107 99 344 443 Trading FY2025 35 31 35 102 FY2024 32 31 35 37 99 137 Operating income FY2025 24 20 24 69 87 80% FY2024 15 4 11 3 31 34 YoY% 61.5% 366.7% 112.8% 124.1% 154.1% <profit ratio> FY2025 3.2% 2.8% 3.2% 3.1% 2.9% FY2024 2.1% 0.6% 1.6% 0.5% 1.4% 1.2% ManufacturingFY2025 19 19 18 58 FY2024 11 2 6 (1) 20 18 Trading FY2025 4 1 5 11 FY2024 4 1 4 4 10 15
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Copyright © 2026 NAGASE & CO., LTD. Overview of Major Manufacturing Subsidiaries: Nagase ChemteX ▶ Gross profit increased primarily for the following reasons ・ Despite weakness in sales for mobile device applications, sales of formulated epoxy resins increased with solid performance f or resins used in semiconductors for AI servers ・ Profit margin improved due in part to cost reductions, despite lower sales volume for photolithography materials ▶ Operating income increased due to gross profit gains, despite increases in R&D expenses and other selling, general and admini strative expenses * Functional dyes business transferred from Nagase Viita on of April 1, 2025 13 * The sales functions of Nagase ChemteX are handled by our company and its sales subsidiaries, and profits from Nagase ChemteX's business are also recognized under the trading business Ratio of Consolidated Gross Profit by Segment Life & Healthcare 0.8% Life & Healthcare 0.1% Electronics & Energy 81.5% Electronics & Energy 76.6% Functional Materials 17.7% Functional Materials 23.3% FY2024 3Q FY2025 3Q 100 millions of yen Quarterly results FY2025 Forecast Achieve ment １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 66 66 70 203 284 71% FY2024 66 64 66 61 197 258 YoY% (0.1%) 2.9% 6.4% 3.1% 10.1% Gross profit FY2025 23 23 23 70 99 71% FY2024 20 20 22 21 63 84 YoY% 10.0% 15.7% 4.7% 10.0% 17.1% <profit ratio> FY2025 34.8% 35.4% 33.4% 34.5% 34.9% FY2024 31.6% 31.5% 33.9% 34.4% 32.3% 32.8% Operating income FY2025 7 7 7 22 33 69% FY2024 7 6 7 5 21 27 YoY% (2.6%) 20.4% 0.6% 5.1% 20.1% <profit ratio> FY2025 11.2% 11.0% 11.3% 11.2% 11.6% FY2024 11.5% 9.4% 12.0% 9.6% 11.0% 10.6%
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Copyright © 2026 NAGASE & CO., LTD. Overview of Major Manufacturing Subsidiaries: Nagase Viita 14 ▶ Gross profit increased primarily for the following reasons ・ Profit margin improved due in part to cost reductions, despite lower sales volume for food ingredients ・ Sales of cosmetic ingredients increased due to strong performance in Japan by the acquisition of new customers Operating income increased due to an increase in gross profit, despite an increase in amortization expense associated with th e replacement of the company’s accounting system Amortization of goodwill, etc., decreased due to the completion of amortization of certain intangible assets (Full- year impact: Approximately ¥1.1 billion yen lower year on year) * Functional dyes business transferred to Nagase ChemteX on April 1, 2025 Ratio of Consolidated Gross Profit by Segment * The sales functions of Nagase Viita are handled by our company and its sales subsidiaries, and profits from Nagase Viita's business are also recognized under the trading business Life & Healthcare 99.2% Life & Healthcare 100.0% Functional Materials 0.8% FY2024 3Q FY2025 3Q 100 millions of yen Quarterly results FY2025 Forecast Achieve ment １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 86 85 90 261 365 72% FY2024 86 87 92 83 267 350 YoY% (0.3%) (2.7%) (2.8%) (1.9%) 4.3% Gross profit FY2025 35 34 36 107 141 76% FY2024 33 32 34 30 99 129 YoY% 7.6% 8.3% 7.2% 7.7% 9.5% <profit ratio> FY2025 41.2% 41.0% 40.6% 41.0% 38.8% FY2024 38.2% 36.9% 36.8% 36.1% 37.3% 37.0% Operating income FY2025 15 13 15 44 53 84% FY2024 13 12 13 11 39 50 YoY% 16.0% 13.6% 12.9% 14.2% 5.1% <profit ratio> FY2025 17.8% 16.3% 17.2% 17.1% 14.5% FY2024 15.3% 14.0% 14.8% 13.5% 14.7% 14.4% Amortisation of FY2025 4 4 4 13 18 FY2024 7 7 7 6 23 29 YoY% (40.5%) (40.5%) (40.5%) (40.5%) (38.4%) Operating income FY2025 10 9 10 31 34 89% after amortised FY2024 5 4 6 4 16 20 YoY% 94.5% 105.2% 80.7% 92.4% 67.8%
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Copyright © 2026 NAGASE & CO., LTD. 15 ▶ Gross profit increased primarily for the following reasons: ・ Gross profit increased due to higher sales volume of food ingredients ・ The manufacturing business is on the path to recovery with improving product mix, particularly in the Solutions business ▶ Operating income increased with the positive rebound from the allowance for doubtful accounts recorded in the year-ago period (¥1.3 billion), as well as a decrease in SG&A due to advancements in efficiency in the Nutrition business Overview of Major Manufacturing Subsidiaries: Prinova Group * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. Ratio of Consolidated Gross Profit by Segment Life & Healthcare 100.0% Life & Healthcare 100.0% FY2024 3Q FY2025 3Q 100 millions of yen Quarterly results FY2025 Forecast Achiev ement １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 539 530 514 1,584 2,532 63% FY2024 504 537 488 466 1,530 1,996 YoY% 6.9% (1.2%) 5.2% 3.5% 26.9% Gross profit FY2025 82 86 84 252 397 64% FY2024 79 79 72 65 230 295 YoY% 3.6% 8.5% 17.4% 9.6% 34.4% <profit ratio> FY2025 15.2% 16.2% 16.5% 16.0% 15.7% FY2024 15.7% 14.8% 14.8% 14.0% 15.1% 14.8% Operating income FY2025 16 19 15 51 62 83% FY2024 13 0 10 1 24 25 YoY% 26.3% 4,289.9% 50.6% 113.2% 139.5% <profit ratio> FY2025 3.1% 3.6% 3.0% 3.3% 2.4% FY2024 2.7% 0.1% 2.1% 0.4% 1.6% 1.3% Amortisation of FY2025 6 6 6 20 27 FY2024 6 7 6 6 20 27 YoY% 2.6% (7.6%) (1.5%) (2.2%) (2.4%) Operating income FY2025 9 12 8 31 34 90% after amortised FY2024 6 (6) 3 (5) 3 (1) YoY% 50.7% - 152.7% 820.3% -
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Copyright © 2026 NAGASE & CO., LTD. (12.0) (10.0) (8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 25Q4 Revenue Trend of Nutritioｎ Business(Million $) Gross Profit Operation Profit 16 ■Initiatives to improve top line ・Rebuild sales structure/hire sales staff ・Strengthen product development systems/hire product development staff ・Strengthen/pursue stick packs and other product lineups ■Cost reductions through efficiency improvements ・Optimize staffing structure ・Streamline raw materials procurement/supply chain ・Revise manufacturing processes/efficient operations via automated equipment Leveling up by reorganizing the functions necessary to win new business Prinova Group Nutrition Business Status Aiming to improve profitability through cost reductions Forecast allowance for doubtful accounts approx. $8 Million * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. * The Prinova Group fiscal year ends in December (January-December), which we incorporated in our own consolidated financial statements under a three-month discrepancy. FY24 FY25 Q1 Q2 Q3 Q4 Cumula tive Q1 Q2 Q3 Q4 Forecast Cumula Tive Forecast Gross Profit 0.8 2.0 2.1 (0.4) 4.6 2.0 2.9 3.0 4.6 12.7 Operating Profit (4.8) (11.7) (4.8) (3.7) (25.0) (3.2) (2.3) (2.3) (1.2) (9.0) Million $
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Copyright © 2026 NAGASE & CO., LTD. Consolidated Balance Sheets ▶ Partially utilized interest-bearing debt for the acquisition of the SACHEM business in Asia and Nagase Diagnostics 17 100 millions of yen 2025/03 2025/12 Change Details Total Current Assets 5,601 5,654 53 (Cash&deposits) 663 435 (227) (Trade account receivbable) 3,112 3,336 223 (Inventories) 1,662 1,703 41 Total non-current assets 2,480 2,950 469 SACHEM business in Asia＋157、Nagase Diagnostics+103 (Investments in security) 720 863 142 Total assets 8,081 8,604 523 Current Liab. 2,695 3,082 387 C.P.＋345、Current portion of Long-term Loan Pay.＋９０ Short-term loans(197) (Trade account payable) 1,512 1,658 145 Non-current Liab. 1,321 1,358 37 Total Liab. 4,016 4,441 424 Shareholders' equity 3,117 3,087 (29) Accum. Other Comprehensive Income 873 995 122 Other Securities Valuation Adjustment＋89、 Translation adjustments＋29 Non-controlling interest 74 80 6 Total net assets 4,064 4,163 98 Working capital 3,262 3,381 119 Shareholders' equity ratio 49.4% 47.4% (2.0ppt) Interest-bearing debt 1,753 1,953 199 NET D/E ratio 0.27 0.37 0.10
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Copyright © 2026 NAGASE & CO., LTD. Consolidated Cash Flows ▶ Net cash used in investing CF amounted to ¥43.2 billion due to the acquisition of the SACHEM business in Asia, Nagase Diagnostics, etc. ▶ Net cash used in financing CF amounted to ¥10.7 billion as the Company raised debt to invest in growth, while also conducting share buybacks, making dividend payments, etc. ▶ Cash and cash equivalents decreased ¥23.8 billion due to the effective use of internal group funds and partial allocation to growth investments 18 100 millions of yen FY2024 3Q FY2025 3Q Operating CF 214 293 (Income before income taxes) 322 353 (Depreciation and amortization) 135 142 (Change in working capital) (111) (16) （Other） (132) (186) Investing CF (70) (432) (Fixed asset investment) (120) (443) （Other） 49 11 Free CF 143 (138) Financing CF (177) (107) (Share buybacks) (170) (184) (Dividends paid) (100) (101) (Change in loans and bonds) 99 191 （Other） (6) (14) Effects of exchange rate 45 8 Net increase / decrease in cash and cash equivalents 12 (238)
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Copyright © 2026 NAGASE & CO., LTD. FY2025 Earnings Projection （No Change ） ▶ Food-related performance will likely see significant progress with new projects in the Prinova Group's manufacturing business and cost reductions through efficiency improvements ▶ Sales of functional materials and functional components will likely remain sluggish in the automobile -related business due to a decline in production by certain EV-related customers ▶ Semiconductor-related business will likely see stronger-than-expected performance in semiconductor material sales, particularly in Greater China, despite uncertainty in the market outlook due to U.S. –China relations affecting sales of Nagase ChemteX formulated epoxy resins for semiconductors used in AI servers ▶ Selling, general and administrative expenses are likely to increase due to an increase in retirement benefit expenses related to the amortization of actuarial differences *Retirement benefit expenses due to the amortization of actuarial differences : Approximately ¥3.5 billion income in fiscal 2 024 and approximately ¥0.3 billion expense in fiscal 2025 19 * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. 100 millions of yen FY2024 Actual FY2025 Forecast Change Vs.PY Sales 9,449 9,640 190 102% Gross profit 1,733 1,830 96 106% <GP ratio> 18.3% 19.0% 0.6ppt - SG&A expenses 1,342 1,423 80 106% Operating income 390 407 16 104% <OP ratio> 4.1% 4.2% 0.1ppt - (excluding the effect of actuarial gains and losses) 355 410 55 115% Ordinary income 383 406 22 106% Profit attributable to owners of the parent 255 315 59 123% US$ Exchange rate (period average) @ 152.6 @ 148.0 @ 4.6 Strong yen RMB Exchange rate (period average) @ 21.1 @ 20.6 @ 0.5 Strong yen
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Copyright © 2026 NAGASE & CO., LTD. FY2024 Actual FY2025 Forecast ▶ Functional Materials expects to post lower profit due to higher selling, general and administrative expenses, despite solid s ales of semiconductor materials ▶ Advanced Materials & Processing expects higher profit, as an improved product mix offsets lower resin sales volumes ▶ Electronics & Energy expects to post higher profit, supported by solid semiconductor material sales and strong performance in Nagase ChemteX formulated epoxy resins for AI server semiconductors ▶ Mobility expects to post lower profit as sales of functional materials and functional components remains sluggish due to a de cline in production by certain EV-related customers ▶ Life & Healthcare expects to post higher profit, supported by new projects in the Solutions business and cost reductions from efficiency improvements in the Nutrition business at the Prinova Group, as well as a rebound from the allowance for doubtful accounts recorded in the previous fiscal year (-¥1.3 billion) 20 FY2025 Earnings Projection By Segment（ No Change） Change in Operating Income Forecast By Segment (100 millions of yen) Life & Healthcare ５２ Electronics & Energy 5 * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. 100 millions of yen FY2024 Actual FY2025 Forecast Change Vs.PY Functional Materials Sales 1,537 1,570 32 102% Gross profit 325 328 2 101% <profit ratio> 21.1% 20.9% (0.3ppt) ー Operating income 92 88 (4) 96% <profit ratio> 6.0% 5.6% (0.4ppt) ー Advanced Materials & Processing Sales 2,106 2,080 (26) 99% Gross profit 261 272 10 104% <profit ratio> 12.4% 13.1% 0.6ppt ー Operating income 66 71 4 106% <profit ratio> 3.2% 3.4% 0.2ppt ー Electronics & Energy Sales 1,613 1,670 56 104% Gross profit 400 434 33 108% <profit ratio> 24.8% 26.0% 1.2ppt ー Operating income 123 129 5 105% <profit ratio> 7.6% 7.7% 0.1ppt ー Mobility Sales 1,320 1,280 (40) 97% Gross profit 165 158 (7) 96% <profit ratio> 12.5% 12.3% (0.2ppt) ー Operating income 42 38 (4) 90% <profit ratio> 3.2% 3.0% (0.2ppt) ー Life & Healthcare Sales 2,870 3,039 168 106% Gross profit 581 636 54 109% <profit ratio> 20.2% 20.9% 0.7ppt ー Operating income 34 87 52 254% <profit ratio> 1.2% 2.9% 1.7ppt ー Corporate & Others Sales 1 1 (0) 99% Gross profit (0) 2 2 ー Operating income 32 (6) (38) ー Total Sales 9,449 9,640 190 102% Gross profit 1,733 1,830 96 106% <profit ratio> 18.3% 19.0% 0.6ppt ー Operating income 390 407 16 104% <profit ratio> 4.1% 4.2% 0.1ppt ー Mobility (4) Advanced Materials & Processing 4 Functional Materials (4) 407 390 Corporate & Others (38)
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Copyright © 2026 NAGASE & CO., LTD. FY2025 Earnings Projections by Major Manufacturing Subsidiaries（No Change） ▶ Nagase ChemteX: Higher gross profit due to steady sales of formulated epoxy resins for AI server semiconductors Operating income to increase due to improved gross profit ▶ Nagase Viita: Higher gross profit due to strong sales of food and cosmetic ingredients Operating income to increase due to higher gross profit and lower amortization of goodwill, etc. ( impact of the conclusion of amortization for a portion of intangible assets: ¥1.1 billion) ▶ Prinova Group: Higher gross profit due to strong sales of food ingredients and improved product mix from new projects in the Solutions business Operating income to increase due to significant progress in efficiency improvements in the Nutriti on business and a rebound from the allowance for doubtful accounts recorded in the previous fiscal year ( -¥1.3 billion) 21 * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. 100 milions of yen FY2024 Actual FY2025 Forecast Change Vs.PY Nagase ChemteX Corporation Sales 258 284 26 110% Gross profit 84 99 14 117% <profit ratio> 32.8% 34.9% 2.1ppt ー Operating income 27 33 5 120% <profit ratio> 10.6% 11.6% 1.0ppt ー Nagase Viita Co., Ltd. Sales 350 365 15 104% Gross profit 129 141 12 109% <profit ratio> 37.0% 38.8% 1.8ppt ー Operating income 50 53 2 105% <profit ratio> 14.4% 14.5% 0.1ppt ー Goodwill amortization etc. 29 18 (11) 62% Operating income after amortization burden 20 34 14 168% Prinova Group Sales 1,996 2,532 536 127% Gross profit 295 397 101 134% <profit ratio> 14.8% 15.7% 0.9ppt ー Operating income 25 62 36 239% <profit ratio> 1.3% 2.4% 1.2ppt ー Goodwill amortization etc. 27 27 (0) 98% Operating income after amortization burden (1) 34 36 ー
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Copyright © 2026 NAGASE & CO., LTD. 4,162 5,023 5,230 5,456 5,691 6,514 8,245 9,147 9,888 10,3571,107 1,776 1,956 952 6,006 5,662 8,001 17,000 20,000 +α 5,269 6,799 7,186 5,456 6,643 12,520 13,907 17,148 26,888 31,500 51.0 39.5 35.6 36.0 35.2 48.3 58.9 76.5 105.4 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Total Dividend Share Buyback Total Payout ratio Shareholder Returns ▶ We plan to pay ¥100 per share for the full year, consisting of an interim dividend of ¥45 per share and a year -end dividend of ¥55 per share, reflecting a ¥5 increase from the initially planned year -end dividend of ¥50 per share.(forecasting a 16th consecutive ye ar of dividend increases) ▶ No changes to the Policy of 100% Total Shareholder Return Ratio in fiscal 2025, continuing from fiscal 2024 ▶ ¥20 billion share buyback completed ▶ In February 2026, we approved a resolution to secure ¥3 billion in share buybacks (scheduled for February 2026 through March 2026) 22 * FY2025 year-end dividend to be submitted for approval to the 111th general meeting of shareholders scheduled for June 2026. Policy of 100% Total Shareholder Return Ratio ¥33 ¥40 ¥42 ¥44 ¥46 ¥54 ¥70 ¥80 ¥90 ¥100 millions of yen ％ Dividend per Share (¥)
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Copyright © 2026 NAGASE & CO., LTD. These presentation materials contain projections based on forward-looking assumptions, forecasts, and plans as of February 5, 2026 Actual earnings may differ from projections due to risks and uncertainties in the future global economy, competitive landscape, currency exchange rates, etc. https://www.nagase.co.jp/english/ir/library/pdf/factbooks/20250804-1.pdf ■IR Materials for the first meeting: https://www.nagase.co.jp/english/ir/ ■NAGASE Group Investor Relations Website: https://www.nagase.co.jp/english/contact/ir/ ■Inquiries:
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Copyright © 2026 NAGASE & CO., LTD. 24 Management Conscious of Capital Costs and Share Prices We continue to implement initiatives in the final year of the current medium-term management plan Current Issue Recognition Policies to Enhance Corporate Value ● PBR has been below 1x since FY2007 ● The cost of equity is 8.0% or more, based on dialogue with investors (as needed through the use of CAPM and interviews with investors) ● Continued high level of strategic cross-shareholdings; 13.9% of net assets Profitability and Efficiency Capital Costs Execute growth, financial, and capital strategies set forth in the Medium-Term Management Plan ACE 2.0 • Permeation of ROIC management: Improve gross profit margin and capital turnover • Reduce unprofitable businesses and unprofitable transactions in business targeted for improvement • Reduce strategic cross-shareholdings in phases Matters to be Addressed • Increase in Shareholder Returns: limited 100% total return ratio for two years • Leverage debt in growth investments IR Activities • Make active disclosures of and expand dialogue with investors Review
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Copyright © 2026 NAGASE & CO., LTD. 25 Business Environment Surrounding NAGASE Segments Industry Segment Coatings Automotive applications to grow slightly; construction applications unlikely to recover; overall performance expected to remain generally flat Automotive applications to remaining flat; construction applications decreased; overall performance expected to decrease year on year Roughly in line with the first half OA and Games (Electrical and Electronic Equipment) General level year on year (overall demand and resin market conditions made a moderate recovery) Overall demand recovering moderately, but resin market conditions trending downward Roughly in line with the first half Automobiles Generally level year on year (automobile production did not recover fully in the second half, remaining flat overall due to regional polarization) Slight decrease overall year on year due to regional polarization Roughly in line with the first half Mobility Medical Generally level year on year (demand strong for additives, APIs and intermediates) Demand was strong for additives, APIs and intermediates Demand to remain strong for additives, APIs, and intermediates, due in part to an increase in the use of generic drugs as a result of the introduction of selective care Cosmetics Recovery anticipated as growing end markets drive expansion into new sales regions Sluggish consumer demand in China, a key end market, along with the emergence of domestic manufacturers there, is causing market weakness. Roughly in line with the first half Food Flat market growth in Japan year on year, with moderate growth expected in food ingredients and nutrition in Europe and the U.S. Sales in Japan were flat year-on- year, while the market grew in Europe and the U.S. in both food ingredients and nutrition. Roughly in line with the first half ・May not always be consistent with industry trends ( ) indicates FY2024 trends Life & Healthcare Semicondu ctors Electronics & Energy Smartphon es High-end sales to remain steady, while mid-range and low-end sales rise slightly due to growing adoption of low-priced smartphones High-end sales to remain steady year on year, while mid-range and low-end sales rose slightly year on year due to growing adoption of low-priced smartphones Slightly down from the first half due to seasonal factors; but slightly up for the full year Advanced Materials Full-Year FY2025 Initial Forecast First Half Trends Second Half Trends Functional Materials Strong year-on-year growth driven by rising AI-related demand and solid production of smartphones, PCs, and other devices Strong year-on-year growth driven by firm AI-related demand and solid production of smartphones, PCs, and other devices; uncertainty in AI-related demand due to U.S.-China relations Demand for smartphones, PCs, and other devices appears to be settling down Review
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Copyright © 2026 NAGASE & CO., LTD. Sales, Gross Profit and Operating Income by Quarter 26 * 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 * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. 100 millions of yen Quarterly results FY2025 Forecast Achiev ement １Q ２Q ３Q ４Q YTD FY2024 Actual Sales FY2025 2,373 2,424 2,443 7,240 9,640 75% FY2024 2,392 2,417 2,370 2,269 7,180 9,449 YoY% (0.8%) 0.3% 3.1% 0.8% 2.0% Gross profit FY2025 443 465 479 1,388 1,830 76% FY2024 437 442 432 420 1,312 1,733 YoY% 1.3% 5.3% 11.0% 5.9% 5.6% <profit ratio> FY2025 18.7% 19.2% 19.6% 19.2% 19.0% FY2024 18.3% 18.3% 18.2% 18.5% 18.3% 18.3% Manufacturing FY2025 177 197 206 581 FY2024 168 174 161 165 504 670 Trading FY2025 265 268 273 807 FY2024 269 267 270 255 807 1,062 Operating income FY2025 102 108 121 332 407 82% FY2024 107 103 99 80 310 390 YoY% (4.5%) 4.7% 22.1% 7.1% 4.1% <profit ratio> FY2025 4.3% 4.5% 5.0% 4.6% 4.1% FY2024 4.5% 4.3% 4.2% 3.6% 4.3% 4.1% Manufacturing FY2025 34 39 46 120 FY2024 24 16 19 21 60 81 Trading FY2025 67 68 75 211 FY2024 83 86 80 59 249 309
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Copyright © 2026 NAGASE & CO., LTD. 150 180 360175 185 340 70 80 200 フード 半導体 ライフサイエンス 395 ４４５ ９００ Make proactive investments in Focus Area of manufacturing (across the three areas of food, semiconductors, and life sciences) to expand profit scale and profit margin over the medium to long term 27 Growth Strategies for the Future Take on new challenges in areas that will become future sources of revenue Base Area Develop Area Focus Area Reform of Profit Structure Obtain cash and high-value-added information to enhance Focus and Develop Areas Narrowing losses Improve Area Nearly double gross profit in focus areas Develop Area Focus Area Improve Area Base Area Research and development (biotechnology) Semiconductors Food Semicondu ctors Food Electrical Equipment Mobility Unprofitable businesses Life Sciences New businesses (new products, etc.) New Areas (Southern Hemisphere) Life Sciences Chemical Industry Manufacturing Functions in Specific Areas Trading Functions Future Sources of Revenue Possibly impaired businesses Potential investments in Focus Area and Develop Area Approx. 80 billion yen (M&A and Capital investment） ROIC Concept of Figures Around 2030 FY2025 Forecast 100 million yen Growth Potential Food Semico nductor Life Sciences FY2024 Actual * The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. Review
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Copyright © 2026 NAGASE & CO., LTD. (2,974) (2,838) (2,276) (1,173) (1,436) (2,120) (135) (1,234) (162) (2,048) (1,688) 2021年度 2022年度 2023年度 2024年度 2025年度 第二四半期 2025年度 固定資産減損 有価証券評価損 その他 28 Aiming for Zero Losses Losses of 1billion yen or less 単位：百万円 Reducing operating losses through the sale of Inkron Oy, a developer and manufacturer of functional materials for optical devices Signed a share transfer agreement with Radiant Opto-Electronics Corporation to transfer shares completed in October 2025 for approximately JPY 1 billion. Operating loss amounted to ¥0.2 billion in FY2024 Impairment of fixed assets Loss on valuation of securities Other Millions of yen FY2021 FY2022 FY2023 FY2024 FY2025 Q2 FY2025 Improvement targets and initiatives 1. Operating loss among subsidiaries and equity in losses of affiliates 2. Assets at risk for impairment loss 3. Unprofitable transactions Develop and implement improvement plans as early as possible. Study withdrawing from businesses not expected to improve. List and monitor all cases; return rights for businesses not expected to improve 【Operating Loss, Loss in Equity, Impairment Loss, and Unprofitable Transactions With Operating Subsidiaries】 Loss on withdrawal from thin glass substrate processing business in China Approx. ¥5.0 billion loss Approx. ¥8.0 billion loss Approx. ¥9.0 billion loss Approx. ¥5.5 billion loss Approx. ¥2.5 billion loss Improvement Areas FY2025 Progress Reform of Profit Structure Review
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Copyright © 2026 NAGASE & CO., LTD. 29 Efforts in the Food Area Reform of Profit Structure 225 240 270 150 180 360 2024年度 実績 2025年度 見通し 2030年頃 計数イメージ 基盤 375 ４2０ ６３０ Driving Food Business Expansion through the Acquisition of Aprinova - Enhancing Regional Reach in the Global South - NAGASE：Food Gross profit （100 million Yen） About Aplinova : São Paulo in Brazil : Premixes, flavors, colorants, and powdered oils – sales and contract manufacturing for food applications : Office, Factory, Logistics Center : 79 Deal Structure Purpose of Acquisition ✓ Strengthening the South American market as part of global expansion ✓ Expand customer channels with Aplinova's customer base ozf over 1,000 companies ✓ Expand sales channels for amino acids, vitamins and other products of the Prinova Group Performance Target ✓ Aiming to achieve approximately JPY 2.0 billion in gross profit by FY2030Expanding customer reach in South America via Aplinova including approximately ¥2 billion related to this project Location ✓ Full Acquisition by Prinova Business overview Facilities Employees FY2024 Actual FY2025 Forecast FY2030 Concept of Figures■Base ■Focus* The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details. including approximately ¥0.4 billion (nine months' worth) related to this project
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Copyright © 2026 NAGASE & CO., LTD. 159 175 200 175 185 ３4０ 0 100 200 300 400 500 600 700 2024年度 実績 2025年度 見通し 2030年頃 計数イメージ 基盤 注力 ３３４ ３６０ ５４０ Efforts in the Semiconductor Area ～SACHEM Business in Asia～ ▶ We acquired the SACHEM business in Asia for high-purity chemicals for semiconductors $101 million; the business joined the NAGAS E Group on June 1, 2025 (PL consolidation began in the second quarter) ▶ Acquired technology to purify various chemicals, including TMAH*; technology to recover and recycle developer; and a developm ent system for next-generation process chemicals ▶ Aiming for gross profit of ¥4 billion around 2030 30 Initiatives for Business Growth • Global development of TMAH and other high-purity chemicals utilizing the NAGASE Group network • Planning to begin sales of TMAH recovery and recycling equipment and sales of recovered TMAH to semiconductor plants in fiscal 2026 Creation of Synergies • Adding new technology and products to the group portfolio, combined with the technologies and product groups previously owned by Nagase ChemteX, we expect to expand our scope as a semiconductor materials manufacturer • We will develop new materials for next-generation semiconductor pre-processes with our business partners through ultra-sensitive analysis, electrolysis, and refining technologies Business Scale PMI Progress • Five employees from the NAGASE Group dispatched to the new company • Steady progress, with 11 subcommittees launched *Developer (tetramethylammonium hydroxide) used in the manufacturing process of semiconductors and flat panel displays Developer recovery and recycling tank SACHEM Wuxi Plant including approximately ¥4 billion related to this project FY2024 Actual FY2025 Forecast FY2030 Concept of Figures ■Base ■Focus Semiconductor Gross profit including approximately ¥1.6 billion (nine months' worth) related to this project Reform of Profit Structure （100 million Yen） Review
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Copyright © 2026 NAGASE & CO., LTD. 137 145 200 70 80 200 2024年度 実績 2025年度 見通し 2030年頃 計数イメージ 基盤 注力 ２０７ ２２５ ４００ including approximately ¥4 billion related to this project including approximately ¥1.8 billion (nine months' worth) related to this project Efforts in the Life Science Area ～Nagase Diagnostics～ ▶ Acquired Nagase Diagnostics, successor to the Asahi Kasei Pharma Corporation diagnostic enzymes business , added to the NAGASE Group in July 2025 ▶ Develops, manufactures, and markets diagnostic reagents, enzymes for diagnostic reagents, and other life science raw material s ▶ Aiming for gross profit of ¥4 billion around 2030 Initiatives for Business Growth • Aim to grow business through overseas sales by developing enzymes for diagnostic reagents in new markets in Brazil, ASEAN, and India Creation of Synergies • Strengthening development capabilities for bio-related products (enzymes, enzyme reactants, fermentation products) through an expansion of our microorganism and enzyme portfolio • Considering the use of the Ohito Plant (GMP plant) by Nagase ChemteX and Nagase Viita for low-endotoxin and ergothioneine- related business PMI Progress • Seven employees from the NAGASE Group dispatched • Established 11 subcommittees and moving PMI forward in orderly manner Nagase Diagnostics Co., Ltd. Ohito Plant 31 Reform of Profit Structure Life Science Gross profit FY2024 Actual FY2025 Forecast FY2030 Concept of Figures ■Base ■Focus Business Scale （100 million Yen） Review
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Copyright © 2026 NAGASE & CO., LTD. Leverage interest-bearing debt to pursue growth investments and shareholder returns 32 Cash Allocation in FY2025 Cash In Cash Out Asset Replacement Reduce strategic cross- shareholdings, etc. Utilize cash and cash equivalents through group-wide cash management Expanding Interest-Bearing Debt Financing Obtain financing within a range that allows us to maintain credit ratings Maximize Corporate Value Operating CF ¥26.5～ 30 billion Asset Replacement ¥14 billion Growth Investments ¥41 billion Shareholder Returns ¥31.5～ 35 billion Loan ¥56 billion Reform of Corporate Culture Growth Investments Execute announced M&A Consider M&A deals in the range of several tens of billions of yen on an ongoing basis Strengthen specific functions in the three fields of the Focus areas and acquire missing parts Invest in CVC and the Global South in the Develop Area Shareholder Returns Continue Increasing Dividends and Achieve a 100% Total Return Ratio Control net assets at around ¥400 billion Others ¥24 billion Review * Growth investments do not include working capital, DX ・ R&D expenses etc.
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Copyright © 2026 NAGASE & CO., LTD. 33 【Examples of Applications】 Confectionery (e.g., gummies, chocolates, candies), beverages (e.g., soft drinks), dairy products (e.g., ice cream, yogurt), baking (enriched flour) Flavors Reliable flavors developed by certified flavorists (added-value for Prinova’s manufacturing capabilities) 【Major Products】 Vitamins, amino acids, acidulants, food extracts, sweeteners, umami seasoning, polysaccharides, nutrient enhancers, phosphates Ingredients Distribution of more than 2,000 food ingredients to the food and nutrition market, offering reliable supply, quality and price 【Major Products】 Aromas and essential oils Aromas Reliable supply of aromas and essential oils to the food and nutrition markets 【Main Business】 Customized powder premixes (amino acid, vitamins and minerals) and liquid premixes Solutions Production of premixes, combining a wide range of ingredients to provide solutions that meet customer needs 【Main Business】 Sports nutrition products in the finished form(powder and capsule) with quality assurance and regulatory compliance Nutrition One-stop- solutions from product planning to manufacturing finished products Trading Manufacturing・Processing Prinova Group Business Overview Value Proposition Applications, Main Business Major Products Review
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Copyright © 2026 NAGASE & CO., LTD. 34 Cash In FY2021 FY2022 FY2023 FY2024 4-years Cumulative Total Cash Out FY2021 FY2022 FY2023 FY2024 4-years Cumulative Total Operating CF after adjustments* 525 363 476 515 1,879 Dividends and share buybacks 124 139 178 270 713 Proceeds from sales of strategic cross- shareholdings, etc. 92 96 71 35 296 Investment in DX, R&D, etc 71 68 78 69 288 Decrease in working capital ー ー 330 ー 330 Increase in working capital 631 200 ー 82 913 Proceeds from change in interest-bearing debt 401 ー ー 96 498 Expenses from change in interest-bearing debt ー 25 234 ー 260 Other income 7 9 9 30 57 Other growth investments, etc 156 173 188 161 679 Other expenditures 25 20 76 29 150 Total 1,026 469 888 67８ 3,062 Total 1,008 628 756 613 3,005 Major Cash Inflows and Outflows for FY2021-FY2024 100 millions of yen * Operating CF excluding the impact of changes in working capital, DX and R&D costs recorded as expenses, etc. Review