NAGASE Business Model

A Unique Business Model that Extends Beyond the Traditional Trading Firm Framework

The NAGASE Group has created a truly unique, highly valuable business model by
integrating traditional trading firm functions with manufacturing, processing, and research and development functions.

1Balanced portfolio

Net Sales
722.3
billion yen

Fiscal 2016 Results

We divide our entire business into four sectors, “Growth/Emerging,” “Focus,” “Base,” and “Improvement” to gain maximum efficiency of management resources and expand business, executing strategy for each area for growth, profitability, and business scale. In addition, we will solidify management resources that can be reallocated and conduct aggressive growth investment in order to accelerate asset replacement. Furthermore, we have set a growing investment distribution ratio for the focus area to greater than 35 percent.

2Manufacturing, processing, and research and development functions

49
Manufacturing companies

Manufacturing ratio
24.3%*1

408patents*2

as of March 31, 2016

The NAGASE Group has created a truly unique, highly valuable business model by integrating traditional trading firm functions with manufacturing, processing, and research and development functions.
*1 Share of NAGASE consolidated Operating Income Represented by Manufacturing Business
*2 The number of patents under the name of the Nagase R&D Center.

3Global Network

Worldwide
22countries

102
companies

6,267
employees

as of March 31, 2016

Global Network

Built on a foundation of chemistry, the NAGASE Group is engaged in activities around the world that rely on the use of chemicals across a wide spectrum of products and services through our Functional Materials, Advanced Materials & Processing, Electronics, Automotive & Energy, and Life & Healthcare segments. These products and services include dyes/pigments, coating materials/inks, surfactants, office automation (OA), electrical equipment, home electronics, automobiles, LCDs, semiconductors, pharmaceutical/medical applications, cosmetics and functional food ingredients. We have grown to become a global technology and information network with 102 companies in 22 countries and 6,267 employees (consolidated) worldwide as of the fiscal year ended March 2016. Today, overseas revenues represents 51.1% of our total business.

4Tradition and Innovation

Established in
1832

Tradition and Innovation

NAGASE & CO., LTD. is a chemicals trading firm, founded in Kyoto, Japan in 1832. The NAGASE Group began as a specialized sales agent securing exclusive contracts to sell industry-leading products from around the world in Japan. Over the years, we have leveraged our technology and information gathering expertise —as well as our global network—to transform our business into a hybrid model offering superior manufacturing, processing, and R&D functions as well as trading company services. Looking forward to our 200th anniversary in the year 2032, we are creating a platform for sustainable growth.

History of NAGASE

5Challenges for Growth in 2015

The profit in 2032
more than
Tripled

長期経営方針の骨子
事業規模

The NAGASE Group has established a set of long-term management policies to take us to our 200th anniversary. These policies will help us achieve the type of growth not possible under our old systems and pace of business. Our aim is to normalization of the profit more than tripled, and we are already taking measures to this end. The framework of our long-term management policy is Challenges for Growth and Reinforce the Management Platform for Growth. Under Challenges for Growth, our aim is to realize significant growth by allocating management resources to focused business and by shifting operation from Japan-centrism to a multinational management system. In so doing, we believe we can achieve the type of growth not possible under our old ways of doing business. At the same time, under Reinforce the Management Platform for Growth, we are constructing a management platform that will contribute to business expansion and globalization as we work to succeed in these challenges.

Management Policy and Plan