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Earnings presentation4021Nissan Chemical CorporationMaterials and Chemicals

Financial Results Presentation Materials for the First Quarter of Fiscal 2026

In the first quarter of FY2026, consolidated net sales, operating income and net income all exceeded the year-earlier period and reached record highs, driven by higher revenue from semiconductor materials and agricultural chemicals. The forecasts for the first half and full year, as well as the forecasts for each segment, announced in May remain unchanged.

Worth reading
69In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
89
¥100 million (year-on-year increase in net sales)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥788 hundred million+13.0%
Operating profit¥219 hundred million+21.0%
Ordinary income¥236 hundred million+30.0%
Net income¥168 hundred million+21.0%
Operating profit margin27.8 %
Results for the three months of the current quarter
Net Sales
¥788 hundred million
Operating profit
¥219 hundred million
Ordinary income
¥236 hundred million
Net income
¥168 hundred million
EBITDA
¥255 hundred million
EPS
¥125.74 per share
Full-year earnings forecast
Net Sales
¥2,897 hundred million
Operating profit
¥668 hundred million
By segment
Functional Materials
Net Sales
¥1,261 hundred million
Operating profit
¥386 hundred million
Agricultural Chemicals
Net Sales
¥972 hundred million
Operating profit
¥270 hundred million
Chemicals
Net Sales
¥414 hundred million
Operating profit
¥13 hundred million
Healthcare
Net Sales
¥55 hundred million
Operating profit
¥11 hundred million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in operating income from functional materials+¥2.5 billion (year on year)
  • Increase in operating income from agricultural chemicals+¥200 million (year on year)
  • Increase in operating income from chemicals+¥200 million (year on year)
  • Increase in operating income from healthcare+¥200 million (year on year)
  • Increase in fixed costs and other expenses for functional materials¥1.6 billion (including ¥1.2 billion for semiconductor materials)
  • Lower-than-expected fixed costs and other expenses for functional materials¥1 billion (versus forecast; profit-increasing factor)
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Assumed full-year exchange rate150 Yen/Dollar
  • Semiconductor materials market growth rate (2024–2030 CAGR)10 %
  • Our semiconductor materials revenue growth rate (2024–2030 CAGR)+20%～
New initiatives
  • Partial revision of executive compensation structure
    DetailsChanged to 50% base compensation, 30% performance-linked compensation and 20% stock-based compensation, with stock-based compensation linked to ROE and TSR
    TimingApril 2026
  • Zero N2O emissions from nitric acid plants
    Planned investment¥830 million
    Variable costs¥70 million per year
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥255 hundred million
    Year on year against the same period last year+¥4.1 billion
  • EPS¥125.74 per share
    Year on year against the same period last year+¥23.54
  • Operating margin27.8 %
    Year on year against the same period last year+1.9 percentage points
  • Semiconductor materials revenue growth rate49 %
    Year on year against the same period last year+49%
  • Display materials revenue growth rate-4 %
    Year on year against the same period last year-4%
  • Inorganic colloids revenue growth rate27 %
    Year on year against the same period last year+27%
  • Free cash flow¥151 hundred million
    Year on year against the same period last year+¥2.1 billion
  • Equity ratio69.8 %
  • Net debt-to-equity ratio0.04 times
Segment results
Functional Materials
Net Sales
¥326 hundred million+26.0%
Operating profit
¥107 hundred million+30.0%
Agricultural Chemicals
Net Sales
¥266 hundred million0.0%
Operating profit
¥88 hundred million+2.0%
Chemicals
Net Sales
¥105 hundred million+13.0%
Operating profit
¥9 hundred million+23.0%
Healthcare
Net Sales
¥19 hundred million+18.0%
Operating profit
¥7 hundred million+50.0%
Wholesale, other and adjustments
Net Sales
¥72 hundred million
Operating profit
¥8 hundred million
Medium-term management plan targets
  • Reduce GHG emissions
    Target valueAt least 30% reduction from FY2018
    Target fiscal yearFY2027
  • Percentage of revenue from products and services that contribute to solving social issues
    Target valueAt least 60%
    Target fiscal year2027
  • Positive response rate on talent development in employee engagement survey
    Target value65% or higher
    Target fiscal year2027
  • Percentage of women in career-track positions at research institutes
    Target value18% or more
    Target fiscal year2027
Financial targets
Actual value
Equity ratio69.8%
Net debt-to-equity ratio0.04 times
Market Size / Share
  • FY2025 domestic ammonia production capacity share11 %
  • Semiconductor materials market growth rate (2024–2030 CAGR)10 %
  • Our semiconductor materials revenue growth rate (2024–2030 CAGR)+20%～
Capital expenditures
¥44 100 million capital expenditures for the quarter, based on cash flow
Acquisition of treasury shares
Amount under the acquisition limit¥10.5 billion
PeriodMay 2026–March 2027
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥788 hundred million (YoY +13.0%)
Operating profit¥219 hundred million (YoY +21.0%)
Ordinary income¥236 hundred million (YoY +30.0%)
Net income¥168 hundred million (YoY +21.0%)
Operating profit margin27.8 %
Results for the three months of the current quarterNet Sales ¥788 hundred million / Operating profit ¥219 hundred million / Ordinary income ¥236 hundred million / Net income ¥168 hundred million / EBITDA ¥255 hundred million / EPS ¥125.74 per share
Full-year earnings forecastNet Sales ¥2,897 hundred million / Operating profit ¥668 hundred million / By segment Functional Materials Net Sales ¥1,261 hundred million / Operating profit ¥386 hundred million / Agricultural Chemicals Net Sales ¥972 hundred million / Operating profit ¥270 hundred million / Chemicals Net Sales ¥414 hundred million / Operating profit ¥13 hundred million / Healthcare Net Sales ¥55 hundred million / Operating profit ¥11 hundred million
Segment resultsFunctional Materials Net Sales ¥326 hundred million (YoY +26.0%) / Operating profit ¥107 hundred million (YoY +30.0%) / Agricultural Chemicals Net Sales ¥266 hundred million (YoY 0.0%) / Operating profit ¥88 hundred million (YoY +2.0%) / Chemicals Net Sales ¥105 hundred million (YoY +13.0%) / Operating profit ¥9 hundred million (YoY +23.0%) / Healthcare Net Sales ¥19 hundred million (YoY +18.0%) / Operating profit ¥7 hundred million (YoY +50.0%) / Wholesale, other and adjustments Net Sales ¥72 hundred million / Operating profit ¥8 hundred million
Breakdown of Factors Affecting the ChangeFactors Increase in operating income from functional materials / Amount +¥2.5 billion (year on year), Factors Increase in operating income from agricultural chemicals / Amount +¥200 million (year on year), Factors Increase in operating income from chemicals / Amount +¥200 million (year on year), Factors Increase in operating income from healthcare / Amount +¥200 million (year on year), Factors Increase in fixed costs and other expenses for functional materials / Amount ¥1.6 billion (including ¥1.2 billion for semiconductor materials), Factors Lower-than-expected fixed costs and other expenses for functional materials / Amount ¥1 billion (versus forecast; profit-increasing factor)
Key KPIsIndicator name EBITDA / Value ¥255 hundred million / Year on year against the same period last year +¥4.1 billion, Indicator name EPS / Value ¥125.74 per share / Year on year against the same period last year +¥23.54, Indicator name Operating margin / Value 27.8 % / Year on year against the same period last year +1.9 percentage points, Indicator name Semiconductor materials revenue growth rate / Value 49 % / Year on year against the same period last year +49%, Indicator name Display materials revenue growth rate / Value -4 % / Year on year against the same period last year -4%, Indicator name Inorganic colloids revenue growth rate / Value 27 % / Year on year against the same period last year +27%, Indicator name Free cash flow / Value ¥151 hundred million / Year on year against the same period last year +¥2.1 billion, Indicator name Equity ratio / Value 69.8 % / Year on year against the same period last year Not disclosed, Indicator name Net debt-to-equity ratio / Value 0.04 times / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem Assumed full-year exchange rate / Value 150 Yen/Dollar, Item Semiconductor materials market growth rate (2024–2030 CAGR) / Value 10 %, Item Our semiconductor materials revenue growth rate (2024–2030 CAGR) / Value +20%～
Medium-term management plan targetsItem Reduce GHG emissions / Target value At least 30% reduction from FY2018 / Target fiscal year FY2027, Item Percentage of revenue from products and services that contribute to solving social issues / Target value At least 60% / Target fiscal year 2027, Item Positive response rate on talent development in employee engagement survey / Target value 65% or higher / Target fiscal year 2027, Item Percentage of women in career-track positions at research institutes / Target value 18% or more / Target fiscal year 2027
Financial targetsTarget value Not disclosed / Actual value Equity ratio 69.8% / Net debt-to-equity ratio 0.04 times
Acquisition of treasury sharesAmount under the acquisition limit ¥10.5 billion / Number of shares acquired Not disclosed / Period May 2026–March 2027
Capital expenditures¥44 100 million (capital expenditures for the quarter, based on cash flow)
Market Size / ShareItem FY2025 domestic ammonia production capacity share / Value 11 %, Item Semiconductor materials market growth rate (2024–2030 CAGR) / Value 10 %, Item Our semiconductor materials revenue growth rate (2024–2030 CAGR) / Value +20%～
New initiativesMeasures Partial revision of executive compensation structure / Details Changed to 50% base compensation, 30% performance-linked compensation and 20% stock-based compensation, with stock-based compensation linked to ROE and TSR / Timing April 2026, Measures Zero N2O emissions from nitric acid plants / Planned investment ¥830 million / Variable costs ¥70 million per year
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioOrders 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.

Higher revenue from increased operating rates among Asian customers and stronger semiconductor demand in semiconductor materials, higher revenue from Roundup, Althaea, Velder, Glacia and other products in agricultural chemicals, higher revenue from nitric acid products and high-purity sulfuric acid in chemicals, and higher revenue from Healthcare and Finetech in healthcare contributed to the results. The weaker yen also contributed.

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Financial Results Presentation Materials for the First Quarter of Fiscal 2026 | Nissan Chemical Corporation (4021) timely disclosure | Komori