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Financial results presentation3708Tokushu Tokai Paper Co.,Ltd.Materials and Chemicals

Presentation Materials for the Fiscal Year Ending March 2026 Results and the Seventh Medium-Term Management Plan

For the fiscal year ended March 2026, revenue, operating income and net income exceeded the previous year's levels, although the initial earnings forecasts were not achieved. The company also formulated its Seventh Mid-Term Management Plan, covering the fiscal years ending March 2027 through March 2029, and stated its policy of pursuing investment and business expansion centered on its resource recycling business.

Worth reading
76Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
23
¥100 million (target improvement in ordinary income under the Seventh Mid-Term Management Plan versus the final year of the Sixth Mid-Term Management Plan)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFull fiscal year ended March 2026 (including the earnings forecast for the fiscal year ending March 2027 and the Seventh Mid-Term Management Plan)12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥95,413 million+0.6%
Operating profit¥4,296 million+9.4%
Ordinary income¥5,728 million-8.0%
Net income¥4,368 million+21.1%
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥100,000 million
Operating profit
¥3,200 million
Ordinary income
¥5,800 million
Net income for the current fiscal year
¥4,600 million
Annual dividend
¥94
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 Sales96.4 %
Operating profit85.9 %
Ordinary income81.8 %
Net income for the current fiscal year89.1 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below the earnings forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating income and ordinary income for the fiscal year ended March 2026
Volume and price+¥551 million
Materials-¥186 million
Plant efficiency-JPY 71 million
Fixed costs, etc.-¥686 million
Environmental Matters+¥226 million
Subsidiary profits, etc.+¥534 million
Forecast operating income and ordinary income for the fiscal year ending March 2027
Volume and price+¥1,400 million
Materials-¥400 million
Plant efficiency+¥10 million
Fixed costs, etc.-¥800 million
Environmental Matters-¥200 million
Subsidiary profits, etc.-¥1,106 million
New initiatives
  • Multiple new entries into the resource recycling sector
  • Investment of at least ¥19.0 billion in M&A and alliances
  • Establishment of a development division specializing in specialty paper
  • Absorption-Type Merger of TTトレーディング
  • Establishment of a DX Promotion Division
  • Introduction of an ESOP for employees
  • Introduction of a restricted stock compensation plan for directors, executive officers and others
  • Expansion of RPF production at the new plant to a three-shift, year-round operation with monthly capacity of 2,000 tonnes from 2027
  • Smart Factory Transformation
  • Establishment of production and sales of sanitary paper containing corrugated cardboard waste paper
Key KPIsA metric the company considers important as a management benchmark.
  • ROE5.4 %
    Year on year against the same period last year+0.8pt
  • PBR0.67 times
  • PER12.8 times
Segment results
Industrial materials
Net Sales
¥44,467 million-0.7%
Operating profit
¥1,169 million+7.4%
Specialty materials
Net Sales
¥20,288 million-5.5%
Operating profit
¥1,494 million-8.8%
Consumer products
Net Sales
¥18,993 million+1.9%
Operating profit
¥798 million+49.8%
Environmental Matters
Net Sales
¥18,089 million+7.8%
Operating profit
¥755 million+42.7%
Medium-term management plan targets
Seventh Medium-Term Management Plan
Period CoveredFiscal years ending March 2027 to March 2029
Ordinary income
¥80 100 million
ROE
7 % or higher
Eighth Medium-Term Management Plan
Period CoveredFiscal years ending March 2030 to March 2032
Ordinary income
¥100 100 million
ROE
8 % or higher
Ninth Medium-Term Management Plan
Period CoveredFiscal years ending March 2033 to March 2035
Ordinary income
¥130 100 million
ROE
9 % or higher
Financial targets
Seventh Mid-Term Management Plan ROE target7.0% or more
Actual ROE for the fiscal year ending March 20265.4%
Equity ratio58.9% actual for the fiscal year ended March 2026
Market Size / Share
Electrical materials market size¥2.5–3.0 trillion
Electrical materials market growth rateCAGR5%
Capital expenditures
¥255 100 million investment in the three paper manufacturing businesses under the Seventh Mid-Term Management Plan
Annual Dividend
Fiscal year ending March 2026
¥53.67
Interim21.67
End of period32
Forecast for the fiscal year ending March 2027
¥94
Interim47
End of period47
Payout ratio
Fiscal year ending March 202642.9 %
Forecast for the fiscal year ending March 202771.4 %
PolicyThe higher of a 50% dividend payout ratio or a 4.0% DOE
Acquisition of treasury shares
Fiscal year ended March 2024¥339 million
Fiscal year ending March 2025¥1 million
Fiscal year ending March 2026¥0 million
Seventh Medium-Term Management PlanTo be conducted flexibly
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFull fiscal year ended March 2026 (including the earnings forecast for the fiscal year ending March 2027 and the Seventh Mid-Term Management Plan)
Net Sales¥95,413 million (YoY +0.6%)
Operating profit¥4,296 million (YoY +9.4%)
Ordinary income¥5,728 million (YoY -8.0%)
Net income¥4,368 million (YoY +21.1%)
Full-year earnings forecastFiscal year ending March 2027 Net Sales ¥100,000 million / Operating profit ¥3,200 million / Ordinary income ¥5,800 million / Net income for the current fiscal year ¥4,600 million / Annual dividend ¥94
Progress against full-year forecastNet Sales 96.4 % / Operating profit 85.9 % / Ordinary income 81.8 % / Net income for the current fiscal year 89.1 %
Self-assessment against the planBelow the earnings forecast
Segment resultsIndustrial materials Net Sales ¥44,467 million (YoY -0.7%) / Operating profit ¥1,169 million (YoY +7.4%) / Specialty materials Net Sales ¥20,288 million (YoY -5.5%) / Operating profit ¥1,494 million (YoY -8.8%) / Consumer products Net Sales ¥18,993 million (YoY +1.9%) / Operating profit ¥798 million (YoY +49.8%) / Environmental Matters Net Sales ¥18,089 million (YoY +7.8%) / Operating profit ¥755 million (YoY +42.7%)
Breakdown of Factors Affecting the ChangeOperating income and ordinary income for the fiscal year ended March 2026 Volume and price +¥551 million / Materials -¥186 million / Plant efficiency -JPY 71 million / Fixed costs, etc. -¥686 million / Environmental Matters +¥226 million / Subsidiary profits, etc. +¥534 million / Forecast operating income and ordinary income for the fiscal year ending March 2027 Volume and price +¥1,400 million / Materials -¥400 million / Plant efficiency +¥10 million / Fixed costs, etc. -¥800 million / Environmental Matters -¥200 million / Subsidiary profits, etc. -¥1,106 million
Key KPIsIndicator name ROE / Value 5.4 % / Year on year against the same period last year +0.8pt, Indicator name PBR / Value 0.67 times / Year on year against the same period last year Not disclosed, Indicator name PER / Value 12.8 times / Year on year against the same period last year Not disclosed
Medium-term management plan targetsSeventh Medium-Term Management Plan Period Covered Fiscal years ending March 2027 to March 2029 / Ordinary income ¥80 100 million / ROE 7 % or higher / Eighth Medium-Term Management Plan Period Covered Fiscal years ending March 2030 to March 2032 / Ordinary income ¥100 100 million / ROE 8 % or higher / Ninth Medium-Term Management Plan Period Covered Fiscal years ending March 2033 to March 2035 / Ordinary income ¥130 100 million / ROE 9 % or higher
Financial targetsSeventh Mid-Term Management Plan ROE target 7.0% or more / Actual ROE for the fiscal year ending March 2026 5.4% / Equity ratio 58.9% actual for the fiscal year ended March 2026
Annual DividendFiscal year ending March 2026 ¥53.67 / Forecast for the fiscal year ending March 2027 ¥94
Payout ratioFiscal year ending March 2026 42.9 % / Forecast for the fiscal year ending March 2027 71.4 % / Policy The higher of a 50% dividend payout ratio or a 4.0% DOE
Acquisition of treasury sharesFiscal year ended March 2024 ¥339 million / Fiscal year ending March 2025 ¥1 million / Fiscal year ending March 2026 ¥0 million / Seventh Medium-Term Management Plan To be conducted flexibly
Capital expenditures¥255 100 million (investment in the three paper manufacturing businesses under the Seventh Mid-Term Management Plan)
Market Size / ShareElectrical materials market size ¥2.5–3.0 trillion / Electrical materials market growth rate CAGR5%
New initiativesMultiple new entries into the resource recycling sector, Investment of at least ¥19.0 billion in M&A and alliances, Establishment of a development division specializing in specialty paper, Absorption-Type Merger of TTトレーディング, Establishment of a DX Promotion Division, Introduction of an ESOP for employees, Introduction of a restricted stock compensation plan for directors, executive officers and others, Expansion of RPF production at the new plant to a three-shift, year-round operation with monthly capacity of 2,000 tonnes from 2027, Smart Factory Transformation, Establishment of production and sales of sanitary paper containing corrugated cardboard waste paper
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookOrders 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.

In the fiscal year ended March 2026, the company fell behind plan due partly to an adjustment phase in specialty functional paper from the second quarter onward. Although it sought to make up the shortfall by expanding sales of tissue and other sanitary paper products, it was unable to eliminate the variance and consequently fell short of its earnings forecasts. Under the Seventh Mid-Term Management Plan, the company plans to enter the resource recycling sector, stabilize its existing businesses and capture demand in growth markets.

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Presentation Materials for the Fiscal Year Ending March 2026 Results and the Seventh Medium-Term Management Plan | Tokushu Tokai Paper Co.,Ltd. (3708) timely disclosure | Komori