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Financial Results Presentation3401TEIJIN LIMITEDMaterials and Chemicals

Financial Results for the First Quarter of Fiscal 2026 and Full-Year Earnings Outlook for Fiscal 2026

In the first quarter of FY2026, revenue declined while business profit increased, and profit attributable to owners of the parent improved significantly, mainly due to a gain on the transfer of the aramid paper business. The full-year revenue forecast was raised, while the forecasts for business profit, profit for the year, and dividends were unchanged.

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¥100 million (year-on-year increase in business profit)
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Contents of this document

Financial Results PresentationFY2026 First Quarter13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales2,219 Hundreds of millions of yen
Operating profit600 Hundreds of millions of yen
Ordinary income598 Hundreds of millions of yen
Net income¥451 100 million profit for the quarter attributable to owners of the parent
Selling, general and administrative expenses¥489 100 million selling, general and administrative expenses, shown as a negative figure
Results for the three months of the current quarter
Revenue¥221.9 billion
Operating profit¥60 billion
Profit before quarterly income taxes¥59.8 billion
Quarterly profit attributable to owners of the parent¥45.1 billion
Business profit¥12.3 billion
Capital expenditure¥11.5 billion
Research and development costs¥6.5 billion
Full-year earnings forecast
Revenue¥900.0 billion
Business profit¥30 billion
Profit for the period attributable to owners of the parent¥45 billion
ROE12%
ROIC3%
D/E ratio (after capital adjustments)0.7
Annual Dividend¥50 per share
Payout ratio21%
Capital expenditure¥65.0 billion
Research and development costs¥28 billion
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue is expected to exceed the initial forecast, while the forecasts for profit and dividends remain unchanged
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The segment-by-segment business-profit waterfall shows the effects of volume, spread, foreign exchange, and other factors. Company-wide business profit increased by ¥4.5 billion, from ¥7.8 billion in Q1 FY2025 to ¥12.3 billion in Q1 FY2026. Major items were as follows: Apparel—volume +¥500 million, spread +¥500 million, foreign exchange ¥0, and other factors -¥300 million; Healthcare—volume +¥1.0 billion, price/mix ¥0, and other factors -¥400 million; E&E—volume +¥1.0 billion, spread +¥1.5 billion, foreign exchange +¥1.0 billion, and other factors -¥100 million; S/M—volume +¥2.5 billion, spread -¥2.0 billion, foreign exchange +¥1.0 billion, other factors +¥1.2 billion, and the impact of excluding TAT North America -¥2.0 billion.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Full-year average exchange rateUS$1=¥156, €1=¥183
Crude oil (Dubai) priceQ1 actual: US$96/barrel; same period of the previous fiscal year: US$69/barrel
European natural gas priceQ1 actual: €46/MWh; same period of the previous fiscal year: €36/MWh
Market assumptionsMore than 9 million potential domestic patients with sleep apnea
New initiatives
  • Transfer of seven pharmaceutical products to LTL Pharma, including the transfer of sales operations
  • Structural reform to focus the pharmaceutical business on rare diseases and intractable diseases
  • The benefits of the management integration with 旭化成アドバンス will begin to materialize in the second half
  • Disclosure segments will be changed to customer-area-based segments from FY2026
Key KPIsA metric the company considers important as a management benchmark.
  • ROE46.3%
    Year on year against the same period last year+47.0 points year on year
  • ROIC5.0%
    Year on year against the same period last year+2.2 percentage points
  • EBITDA¥24.7 billion
    Year on year against the same period last year+6.8%
  • Free cash flow¥53.6 billion
    Year on year against the same period last year+¥55.5 billion year on year
  • D/E ratio (after capital adjustments, at period-end)0.66
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volume, CPAP rental units, sales-price revisions, price/mix effects, and other items are disclosed, but specific volume and unit-price figures are not disclosed
Segment results
  • Apparel & Industrial Materials
    Revenue¥91.7 billion (up 11.7% year on year)
    Business profit¥4.8 billion (up 17.5% year on year)
  • Healthcare & Life Solutions
    Revenue¥32.9 billion (down 2.6% year on year)
    Business profit¥4.6 billion (up 14.6% year on year)
  • Electronics & Energy
    Revenue¥45.3 billion (up 23.5% year on year)
    Business profit¥8.5 billion (up 67.7% year on year)
  • Specialty Materials
    Revenue¥47.9 billion (down 42.7% year on year)
    Business profit-¥1.0 billion (up ¥700 million year on year)
  • Other
    Revenue¥4.1 billion (down 40.9% year on year)
    Business profit-¥1.8 billion (down ¥1.5 billion year on year)
Medium-term management plan targets
FY2028 ROIC targets: 5% company-wide, 8% for Apparel & Industrial Materials, 12% for Healthcare & Life Solutions, 16% for Electronics & Energy, and 6% for Specialty Materials
Financial targets
ROE 12%, ROIC 3%, D/E ratio (after capital adjustments) 0.7, and equity attributable to owners of the parent as a percentage of total equity 39% (all are FY2026 forecasts)
Market Size / Share
More than 9 million potential domestic patients with sleep apnea; medical devices are provided to more than 500,000 people in Japan and overseas. Market share is not disclosed
Capital expenditures
¥115 100 million first-quarter actual
Annual Dividend
¥50 per share (¥25 interim, ¥25 year-end)
Payout ratio
21%
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFY2026 First Quarter
Net Sales2,219 Hundreds of millions of yen
Operating profit600 Hundreds of millions of yen
Ordinary income598 Hundreds of millions of yen
Net income¥451 100 million (profit for the quarter attributable to owners of the parent)
Selling, general and administrative expenses¥489 100 million (selling, general and administrative expenses, shown as a negative figure)
Results for the three months of the current quarterRevenue ¥221.9 billion / Operating profit ¥60 billion / Profit before quarterly income taxes ¥59.8 billion / Quarterly profit attributable to owners of the parent ¥45.1 billion / Business profit ¥12.3 billion / Capital expenditure ¥11.5 billion / Research and development costs ¥6.5 billion
Full-year earnings forecastRevenue ¥900.0 billion / Business profit ¥30 billion / Profit for the period attributable to owners of the parent ¥45 billion / ROE 12% / ROIC 3% / D/E ratio (after capital adjustments) 0.7 / Annual Dividend ¥50 per share / Payout ratio 21% / Capital expenditure ¥65.0 billion / Research and development costs ¥28 billion
Self-assessment against the planRevenue is expected to exceed the initial forecast, while the forecasts for profit and dividends remain unchanged
Segment resultsSegment Apparel & Industrial Materials / Revenue ¥91.7 billion (up 11.7% year on year) / Business profit ¥4.8 billion (up 17.5% year on year), Segment Healthcare & Life Solutions / Revenue ¥32.9 billion (down 2.6% year on year) / Business profit ¥4.6 billion (up 14.6% year on year), Segment Electronics & Energy / Revenue ¥45.3 billion (up 23.5% year on year) / Business profit ¥8.5 billion (up 67.7% year on year), Segment Specialty Materials / Revenue ¥47.9 billion (down 42.7% year on year) / Business profit -¥1.0 billion (up ¥700 million year on year), Segment Other / Revenue ¥4.1 billion (down 40.9% year on year) / Business profit -¥1.8 billion (down ¥1.5 billion year on year)
Breakdown of Factors Affecting the ChangeThe segment-by-segment business-profit waterfall shows the effects of volume, spread, foreign exchange, and other factors. Company-wide business profit increased by ¥4.5 billion, from ¥7.8 billion in Q1 FY2025 to ¥12.3 billion in Q1 FY2026. Major items were as follows: Apparel—volume +¥500 million, spread +¥500 million, foreign exchange ¥0, and other factors -¥300 million; Healthcare—volume +¥1.0 billion, price/mix ¥0, and other factors -¥400 million; E&E—volume +¥1.0 billion, spread +¥1.5 billion, foreign exchange +¥1.0 billion, and other factors -¥100 million; S/M—volume +¥2.5 billion, spread -¥2.0 billion, foreign exchange +¥1.0 billion, other factors +¥1.2 billion, and the impact of excluding TAT North America -¥2.0 billion.
Key KPIsIndicator ROE / Value 46.3% / Year on year against the same period last year +47.0 points year on year, Indicator ROIC / Value 5.0% / Year on year against the same period last year +2.2 percentage points, Indicator EBITDA / Value ¥24.7 billion / Year on year against the same period last year +6.8%, Indicator Free cash flow / Value ¥53.6 billion / Year on year against the same period last year +¥55.5 billion year on year, Indicator D/E ratio (after capital adjustments, at period-end) / Value 0.66 / Year on year against the same period last year Not disclosed
Unit price and quantity metricsSales volume, CPAP rental units, sales-price revisions, price/mix effects, and other items are disclosed, but specific volume and unit-price figures are not disclosed
Assumptions Underlying the Business OutlookFull-year average exchange rate US$1=¥156, €1=¥183 / Crude oil (Dubai) price Q1 actual: US$96/barrel; same period of the previous fiscal year: US$69/barrel / European natural gas price Q1 actual: €46/MWh; same period of the previous fiscal year: €36/MWh / Market assumptions More than 9 million potential domestic patients with sleep apnea
Medium-term management plan targetsFY2028 ROIC targets: 5% company-wide, 8% for Apparel & Industrial Materials, 12% for Healthcare & Life Solutions, 16% for Electronics & Energy, and 6% for Specialty Materials
Financial targetsROE 12%, ROIC 3%, D/E ratio (after capital adjustments) 0.7, and equity attributable to owners of the parent as a percentage of total equity 39% (all are FY2026 forecasts)
Annual Dividend¥50 per share (¥25 interim, ¥25 year-end)
Payout ratio21%
Capital expenditures¥115 100 million (first-quarter actual)
Market Size / ShareMore than 9 million potential domestic patients with sleep apnea; medical devices are provided to more than 500,000 people in Japan and overseas. Market share is not disclosed
New initiativesTransfer of seven pharmaceutical products to LTL Pharma, including the transfer of sales operations, Structural reform to focus the pharmaceutical business on rare diseases and intractable diseases, The benefits of the management integration with 旭化成アドバンス will begin to materialize in the second half, Disclosure segments will be changed to customer-area-based segments from FY2026
Items this document does not state (9)
Gross Profit MarginOperating profit marginProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The increase in first-quarter business profit was driven by customers building inventories in response to the impact of the Middle East situation, the early realization of price increases in certain applications, higher sales volumes, and cost-structure reforms. The increase in profit attributable to owners of the parent was mainly due to a gain on the sale of shares in an affiliate associated with the transfer of the aramid paper business. The increase in the full-year revenue forecast reflects revised outlooks for Apparel & Industrial Materials, Electronics & Energy, and Specialty Materials.

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Financial Results for the First Quarter of Fiscal 2026 and Full-Year Earnings Outlook for Fiscal 2026 | TEIJIN LIMITED (3401) timely disclosure | Komori