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Earnings presentation3433TOCALO Co.,Ltd.Construction and Materials

Supplementary Financial Results Materials for the First Quarter of the Fiscal Year Ending March 2026

In the first quarter of the fiscal year ending March 2027, revenue increased 9.9% year on year, driven mainly by the semiconductor and FPD sectors, reaching a record high on a quarterly basis. Operating income and ordinary income declined due to higher personnel and depreciation expenses and inventory adjustments at overseas subsidiaries, among other factors, but the full-year earnings forecast was revised upward.

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Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16,658 million+9.9%
Operating profit¥3,815 million-0.5%
Ordinary income¥4,024 million-0.7%
Net income¥2,617 million+1.4%
Results for the three months of the current quarter
Net Sales
¥16,658 million
Operating profit
¥3,815 million
Ordinary income
¥4,024 million
Profit attributable to owners of parent for the quarter
¥2,617 million
EPS
¥44.01
Full-year earnings forecast
Net Sales
¥68,500 million
Operating profit
¥16,700 million
Ordinary income
¥16,700 million
Profit attributable to owners of the parent
¥10,860 million
EPS
¥182.6
ROE
15.6 %
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales24.3% (thermal spraying, single-company basis: 24.5%; semiconductor and FPD: 23.9%; industrial machinery: 29.9%; steel: 21.0%; Other: 24.7%; other surface treatment: 26.0%; domestic subsidiaries: 24.9%; overseas subsidiaries: 23.4%; royalty income and other: 8.5%)
Operating profit22.8%
Ordinary income24.1%
Profit attributable to owners of the parent24.1%
EPS24.1%
Semiconductor and FPD sectors (initial plan)26.3%
Semiconductor and FPD sectors (revised plan)23.9%
Sectors other than semiconductor and FPD (initial plan)25.1%
Sectors other than semiconductor and FPD (revised plan)24.8%
Capital Expenditures28.8%
Depreciation and amortization24.1%
Research and development costs23.3%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing as planned
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in revenue¥800 million
  • Increase in variable cost ratio¥-13 million
  • Increase in personnel expenses¥-562 million
  • Higher Depreciation Expense¥-128 million
  • Foreign Exchange Effects¥275 million
  • Other¥-398 million
New initiatives
  • Construction of new buildings and installation of production equipment at the Tokyo No. 2 Plant and the Kitakyushu Plant
  • Construction of a new building at Terada Kosakusho
  • Expansion of production capacity at Nippon Coating Center
  • Construction of a new plant for TCA-Arizona
Key KPIsA metric the company considers important as a management benchmark.
  • EPS¥44.01
    Year on year against the same period last year+0.6%
  • Orders received¥61,823 million
  • Order backlog¥14,843 million
  • Equity ratio69.9 %
  • Interest-bearing debt¥12,054 million
  • ROE (full-year forecast)15.6 %
  • ROA (full-year forecast)17.4 %
  • ROIC (full-year forecast)13.3 %
Segment results
Thermal spraying (single-company basis)
Net Sales
¥12,292 million+13.9%
Segment profit
¥3,434 million+31.1%
Domestic Subsidiary
Net Sales
¥788 million+8.0%
Segment profit
¥112 million-3.2%
Overseas Subsidiary
Net Sales
¥2,908 million-3.2%
Segment profit
¥941 million-29.7%
Other surface treatment
Net Sales
¥656 million+7.7%
Segment profit
¥114 million+30.4%
Financial targets
ROE
Actual results15.8 %
Full-year outlook15.6 %
ROA
Actual results17.2 %
Full-year outlook17.4 %
ROIC
Actual results13.1 %
Full-year outlook13.3 %
Equity ratio
Actual results74.8 %
End of 1Q69.9 %
Orders received and order backlog
Orders received
¥61,823 million
Order backlog
¥14,843 million
Capital expenditures
¥10,000 million
Annual Dividend
Annual¥92 per share
Interim¥44 per share
End of period¥48 per share
Payout ratio
50.4 %
PolicyConsolidated dividend payout ratio of approximately 50% and DOE of at least 5%
Acquisition of treasury shares
The policy is to conduct share repurchases flexibly, taking into account the business environment and financial condition. Repurchase limit, number of shares and period: not disclosed
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥16,658 million (YoY +9.9%)
Operating profit¥3,815 million (YoY -0.5%)
Ordinary income¥4,024 million (YoY -0.7%)
Net income¥2,617 million (YoY +1.4%)
Results for the three months of the current quarterNet Sales ¥16,658 million / Operating profit ¥3,815 million / Ordinary income ¥4,024 million / Profit attributable to owners of parent for the quarter ¥2,617 million / EPS ¥44.01
Full-year earnings forecastNet Sales ¥68,500 million / Operating profit ¥16,700 million / Ordinary income ¥16,700 million / Profit attributable to owners of the parent ¥10,860 million / EPS ¥182.6 / ROE 15.6 %
Progress against full-year forecastNet Sales 24.3% (thermal spraying, single-company basis: 24.5%; semiconductor and FPD: 23.9%; industrial machinery: 29.9%; steel: 21.0%; Other: 24.7%; other surface treatment: 26.0%; domestic subsidiaries: 24.9%; overseas subsidiaries: 23.4%; royalty income and other: 8.5%) / Operating profit 22.8% / Ordinary income 24.1% / Profit attributable to owners of the parent 24.1% / EPS 24.1% / Semiconductor and FPD sectors (initial plan) 26.3% / Semiconductor and FPD sectors (revised plan) 23.9% / Sectors other than semiconductor and FPD (initial plan) 25.1% / Sectors other than semiconductor and FPD (revised plan) 24.8% / Capital Expenditures 28.8% / Depreciation and amortization 24.1% / Research and development costs 23.3%
Self-assessment against the planProgressing as planned
Segment resultsThermal spraying (single-company basis) Net Sales ¥12,292 million (YoY +13.9%) / Segment profit ¥3,434 million (YoY +31.1%) / Domestic Subsidiary Net Sales ¥788 million (YoY +8.0%) / Segment profit ¥112 million (YoY -3.2%) / Overseas Subsidiary Net Sales ¥2,908 million (YoY -3.2%) / Segment profit ¥941 million (YoY -29.7%) / Other surface treatment Net Sales ¥656 million (YoY +7.7%) / Segment profit ¥114 million (YoY +30.4%)
Breakdown of Factors Affecting the ChangeFactors Increase in revenue / Amount ¥800 million, Factors Increase in variable cost ratio / Amount ¥-13 million, Factors Increase in personnel expenses / Amount ¥-562 million, Factors Higher Depreciation Expense / Amount ¥-128 million, Factors Foreign Exchange Effects / Amount ¥275 million, Factors Other / Amount ¥-398 million
Key KPIsIndicator name EPS / Value ¥44.01 / Year on year against the same period last year ¥0.6, Indicator name Orders received / Value ¥61,823 million, Indicator name Order backlog / Value ¥14,843 million, Indicator name Equity ratio / Value 69.9 %, Indicator name Interest-bearing debt / Value ¥12,054 million, Indicator name ROE (full-year forecast) / Value 15.6 %, Indicator name ROA (full-year forecast) / Value 17.4 %, Indicator name ROIC (full-year forecast) / Value 13.3 %
Financial targetsROE Actual results 15.8 % / Full-year outlook 15.6 % / ROA Actual results 17.2 % / Full-year outlook 17.4 % / ROIC Actual results 13.1 % / Full-year outlook 13.3 % / Equity ratio Actual results 74.8 % / End of 1Q 69.9 %
Annual DividendAnnual ¥92 per share / Interim ¥44 per share / End of period ¥48 per share
Payout ratio50.4 %
Acquisition of treasury sharesThe policy is to conduct share repurchases flexibly, taking into account the business environment and financial condition. Repurchase limit, number of shares and period: not disclosed
Capital expenditures¥10,000 million
Orders received and order backlogOrders received ¥61,823 million / Order backlog ¥14,843 million
New initiativesConstruction of new buildings and installation of production equipment at the Tokyo No. 2 Plant and the Kitakyushu Plant, Construction of a new building at Terada Kosakusho, Expansion of production capacity at Nippon Coating Center, Construction of a new plant for TCA-Arizona
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsMarket Size / ShareKey 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 revenue was driven by higher sales in the semiconductor and FPD sectors and the industrial machinery sector. Factors contributing to the decline in profit included higher processing material costs, lower revenue at overseas subsidiaries, increased personnel, depreciation and R&D expenses, and lower subsidy income. These were partly offset by higher revenue and profit growth resulting from the weaker yen. The upward revision to the full-year forecast reflects figures based on demand trends in the semiconductor and FPD sectors and other areas.

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Supplementary Financial Results Materials for the First Quarter of the Fiscal Year Ending March 2026 | TOCALO Co.,Ltd. (3433) timely disclosure | Komori