NAGASE’s value creation

Important Management Resources

Important Management Resources

Financial Capital

The NAGASE Group has sufficient financial capital to handle its various financial needs. Specifically, it recognizes the importance of steadily and flexibly securing funds to meet its capital requirements, including for working capital, capital investments, M&A, DX, and other investments in new growth. Its main source of capital is funds provided by operating activities. It also uses loans from financial institutions as a means of procuring funds, and obtains funds from the capital market by flexibly issuing corporate bonds and commercial paper. It takes a diversified and well-balanced approach to fund procurement.

In addition, the new medium-term management plan ACE 2.0 pursues capital efficiency, and the NAGASE Group is working to that end. Specifically, it is proactively allocating funds to investments in R&D and new businesses targeting new growth upon generating cash flows through sustainable growth and portfolio improvements and securing financial soundness

There are also functions that cut across the organization to improve productivity. A good example of that is Nagase Business Expert Co., Ltd., which was launched in 2017.

CFO Message

Nagase Business Expert Co., Ltd.

Helping Group Companies Raise Productivity and Profitability

Nagase Business Expert Co., Ltd. is a shared services company. By standardizing and streamlining intra-Group operations such as logistics, trade, payroll services, receipts and payments, credit management general affairs, account settlements, and tax services, it is helping increase productivity and profitability. It also supports the Group by developing human resources. Going forward, it will continue to contribute to the Group’s

Launched: 2017 Number of employees: About 240
(Fiscal year ended March 31, 2021)

Human Capital

The NAGASE Group has robust human capital. Of its 6,940 employees in total, 3,139 reside overseas. It aims to build a strong organization from both fronts to strengthen human resources to drive reforms and to bolster compliance.

Human resources are a source of sustainable growth. The new mediumterm management plan ACE 2.0 advocates to strengthen human resources to drive reforms as part of corporate culture reform. Specifically, it sets out to achieve sustainable growth for employees and the company by cultivating global talent who are innovative and advance change, promoting safe, comfortable, and inspirational work styles and workplaces to provide support for taking on challenges, building a corporate culture that embraces diverse personalities, and raising employee engagement.

The NAGASE Group also regards respect for employee personality and individuality and human rights in general as a prerequisite for maintaining and enhancing human resources’ capabilities. It has accordingly released a Group Code of Conduct, and conducts compliance training as needed to improve awareness among all Group employees in Japan and overseas.

Intellectual Capital

The NAGASE Group’s intellectual capital is distinctive in that it is not limited to chemicals, but extends to various domains, including electronics, automobiles, and healthcare. Another feature of the Group’s intellectual capital is that it often applies for patents jointly with an array of partners such as universities and corporations as a trading company. To harness its total capabilities and create new businesses, the Group undertakes R&D for the purpose of providing technical information and developing new technologies and products based on marketing activities. Expediting the mobilization of such expertise serves to enhance intellectual capital, which is a fount of innovative business activities.

Nagase R&D Center

Combining Biotechnological Expertise with Frontier Technologies

The Nagase R&D Center aims to create new value that contributes to society, including with regard to people’s health and solving environmental issues, through R&D in the biotechnology field. It also aims for process innovation utilizing biotechnology, in line with its philosophy, “Unavailable Made Available in a Sustainable Way.” To advance the NAGASE Group’s bio-related business from the research stage, the Nagase R&D Center also coordinates with the Group companies’ roughly 250 researchers. The Nagase R&D Center is putting its technologies, the marketing capabilities of each organization, and the product development and manufacturing capabilities of Hayashibara Co., Ltd. and Nagase ChemteX Corporation to use in developing new enzymes, biochemicals, and more.

Developments harnessing and linking together our expertise

・Fermentation production of Trehangelin, which is expected to have antiaging effects
・Fermentation production of the so-called longevity vitamin ergothioneine

Established: 1990
Location: Kobe City, Hyogo Prefecture

Nagase Application Workshop (NAW)

Providing Customers with a Place for Innovation

The Nagase Application Workshop is an open innovation laboratory for plastics and coatings. As a reliable development partner to the NAGASE Group’s customers, NAW provides evaluation and analysis of unique new technologies and materials, advances the development of new applications and more in an ongoing pursuit of function and design in the fields of plastics and coatings. In addition to enriching open laboratory capabilities, NAW targets global collaboration among laboratory functions within the Group. It is promoting information sharing among domestic and overseas business bases, including Nagase ChemteX Corporation, Hayashibara Co., Ltd., and Interfacial Consultants LLC of the United States. It is also working to build systems for global cooperation in Japan, Asia, and the United States.

Developments harnessing and linking together our expertise

・Development of various biodegradable coating and plastic materials derived from biomass
・Color design proposals according to customer needs

Established: 2007
Location: Amagasaki City, Hyogo Prefecture

New Value Creation (NVC) Office

Create the Core of Future Business

The NVC Office advances the NAGASE Group’s innovation. It forms the core of business looking 5 to 10 years down the line through cross-sectional collaboration among business divisions. It leads the Group in coming up with ideas and strategies in the materials, semiconductor, IoT, and healthcare domains revolving around the slogan “Creating new value from big data.”

Developments harnessing and linking together our expertise

・Launched TABRASA™, a SaaS service for materials informatics
[Feature] New Business Looking to the Future

・Developed Axonerve™, an IP core for FPGA (Field-Programmable Gate Arrays) specializing in high-speed, low-latency key search, and developed application for global 5G carriers

Established: 2017

Manufacturing Capital

The NAGASE Group encompasses about 60 manufacturing subsidiaries, including Nagase ChemteX Corporation, Hayashibara Co., Ltd., and Prinova Group LLC. It combines its trading and manufacturing functions to offer a wide range of solutions to customers.

This manufacturing capital is an important management resource for the NAGASE Group. As part of profit structure reform, the new medium-term management plan ACE 2.0 looks to strengthen existing businesses by expanding added value through technological innovations and improvements in manufacturing productivity.

In addition, the Group Manufacturers’ Collaboration Committee, which was launched in 2019 to bolster the foundation of domestic manufacturing companies in the NAGASE Group, is working to raise productivity and strengthen cooperation in manufacturing operations within the Group.

Nagase ChemteX Corporation

Building an Abundant Future with Chemistry

Nagase ChemteX Corporation is a core manufacturing subsidiary of the NAGASE Group and possesses creative technologies in a variety of areas including electronics and biotechnology. It uses its core technologies in synthesis, formulation, and biotechnology to develop materials that are completely new to the world and create products with No. 1 market share. As a value-creating manufacturing company capable of meeting the needs of customers around the world, it will continue to embrace the challenge of developing new technologies and products.

Functional Resins

Epoxy adhesives, encapsulants (sheets,liquids)

Precision Process Materials

Photolithography materials, 3D printing materials, silver nano ink

Functional Chemicals

Special epoxy resins, transparent conductive coating materials, low-endotoxin materials

Biochemicals

Food enzymes, industrial enzymes, phospholipids
Photo provided by ASICS Corporation

Topics: Contributing to Completion of Industry’s First Spikeless Track Shoe

Photo provided by ASICS Corporation

ASICS Corporation’s METASPRINT™ sprinters do not have spikes. Their spikeless soles use Nagase ChemteX Corporation’s thermoplastic epoxy resin technology. This cutting-edge technology supports the performance of sprinters competing within 0.01 second of time.

Established: 1970 Location: Osaka City, Osaka Prefecture
Sales: About 26 billion yen
Number of employees: About 590 (Fiscal year ended March 31, 2021)

Hayashibara Co., Ltd.

Smart Biotechnology for Better Living

Hayashibara Co., Ltd. is a core business in the NAGASE Group’s life sciences field. It develops and provides ingredients for food and health foods, personal-care products, pharmaceuticals, and functional dyes. It continues to work on developing innovative new materials using its advanced biotechnology capabilities, and is increasing its presence in the global market.

Food Ingredients

TREHA™, SUNMALT™, PULLULAN

Health Food Ingredients

HAYASHIBARA HESPERIDIN™ S, Fibryxa™, Ascofresh™

Personal Care Ingredients

AA2G™, MG-60, Alpha Glucosyl Hesperidin

Pharmaceutical Ingredients

MALTOSE PH, TREHALOSE SG, PULLULAN

Functional Dyes

Dyes for information recording, information displays, and diagnostic agents

Topics: Sponsoring an International Academic Event

Hayashibara Co., Ltd. sponsored the online event “Nature Café on Environmental Stress and Food Crisis” organized by the multidisciplinary science journal Nature. Over 360 people from 85 countries around the world registered to participate in the event. There was also an exclusive meeting following the event for researchers from Hayashibara and experts in Japan and overseas. It was a meaningful event for Hayashibara as it has designated stable food security as one of its priority issues.

Established: 1932 Location: Okayama City, Okayama Prefecture
Sales: About 24 billion yen
Number of employees: About 670 (Fiscal year ended March 31, 2021)

Prinova Group LLC

Global Development of Food Ingredients

Prinova Group sells food ingredients, manufactures premixes, and undertakes contract manufacturing of final products, mainly in North America and Europe. It has an edge in terms of ingredient sourcing, blending and flavor-related R&D capabilities, sports nutrition experience, and its network. Moving ahead, it looks to accelerate synergies with the Group and develop business in the Southeast Asian market.

Ingredients

Distribution Over 2,000 ingredients

Aromas

Distribution Aroma chemicals, essential oils

Premixes & Solutions

Premixes, OEM, beverages, tablets, food applications

Flavors

Manufacturing Beverages, functional food applications

Armada

Nutritional food development, manufacturing solutions, sports nutrition

Topics: New Global Website

In June 2021, Prinova launched its new website with extensive information on about 400 different ingredients, including nutritional materials and aroma chemicals. Going forward, Prinova plans to make the website available in more languages, including German and Spanish, and otherwise expand its functions globally.

Prinova's corporate site

Founded: 1978
Location: Illinois, USA
Sales: About 87 billion yen
Number of employees: About 1,000
(Fiscal year ended December 31, 2020)

Group Manufacturers’ Collaboration Committee

Charged with Reinforcing the Domestic Manufacturing Foundation

The Group Manufacturers’ Collaboration Committee’s (MCC) role is to promote cooperation among manufacturing companies within the Group, independent growth at each company, and sustainable growth and enhancement of corporate value for the Group overall. In the fiscal year ended March 31, 2021, the MCC held committee, secretariat, activity briefing, and other meetings. In particular, discussions were held among 11 MCC member companies to set shared KPIs pertaining to safety, quality, and the environment. In the fiscal year ending March 31, 2022, the MCC plans to increase committee and secretariat members and enhance subcommittees, and will bolster the Group’s manufacturing collaboration through various activities, including promoting DX in manufacturing, addressing environmental needs, improving quality, and raising safety and health standards.

Topics: Engaging Advisors to Accelerate Personnel Development

The MCC engages advisors with management experience that have worked in manufacturing for a long time, and plans and carries out various human resource development initiatives. In addition to periodically releasing to Group employees videos of interviews based on the theme of manufacturing and symposiums where employees of MCC member companies exchange opinions, the MCC plans events such as manufacturing site tours and lectures.

Social Capital

Solid relationships of trust with diverse stakeholders are very important social capital for the NAGASE Group. The Group operates globally in a wide range of business domains. It has 117 business bases in 30 countries and regions around the world, and roughly 18,000 business partners in total in Japan and overseas.

Natural Capital

The NAGASE Group believes that a sustainable global environment is a prerequisite for continuing our business operations. To maintain and enrich such natural capital, the NAGASE Group helps realize a sustainable society by actively working to solve environmental problems. That includes striving for a carbon-neutral and recycling-oriented society, preventing pollution, preserving biodiversity, and efficiently using water

Integrated Report 2021

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Integrated Report 2021 Download All Pages PDF(6.6MB)

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  • Introduction(345KB)

  • Story for Value Proposition of the NAGASE Group(2.2MB)

    Overview of Our Value Creation Story | Our Social Significance | History of Value Creation | Our Business Model | Important Management Resources | Our Risks and Opportunities | [Feature] New Business Looking to the Future | Our Sustainability Management

  • Shaping Value(1.9MB)

    CEO Message | CFO Message | Business Model Evolution Looking to the Future | Shaping Value 1: Reform of Profit Structure | Shaping Value 2: Reform of Corporate Culture | Shaping Value 3: Corporate Functions Supporting Reform

  • Business Portfolio(2.7MB)

    List of Businesses | Functional Materials Segment | Advanced Materials & Processing Segment | Electronics & Energy Segment | Mobility Segment | Life & Healthcare Segment | Regional Strategy

  • Sustainability Management(1.8MB)

    Our Board | Corporate Governance | Interview with the Outside Directors | Compliance | Risk Management & Responsible Publicity and Marketing | Human Resource Development to Drive Innovation | Creating Environmental Value | Human Rights and Labor Management, Vibrant Work Environments & Responsible Supply Chain | Social Contribution Activities

  • Data Section(667KB)

    11-Year Financial Highlights | Financial Information | Consolidated Subsidiaries, Affiliates and Offices | Investor Information | Corporate Information