Worth reading
77Important
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
38
¥100 million (year-on-year increase in FY2026 operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFY2025 (fiscal year ended March 2026) results and FY2026 (fiscal year ending March 2027) earnings forecast15 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesFY2025 actual 3,842; FY2026 forecast 4,500
Operating profitFY2025 actual 262; FY2026 forecast 300
Ordinary incomeFY2025 actual 193; FY2026 forecast 200
Net incomeFY2025 actual 157; FY2026 forecast 160
Operating profit marginFY2025 actual 6.8% (up 3.2 percentage points year on year); FY2026 forecast 6.7% (down 0.2 percentage points year on year)
Results for the three months of the current quarterThe standalone operating profit of ¥93.5 billion reported for the fourth quarter of FY2025 appears to be a misstatement. The quarterly trend table shows total operating profit of ¥8.0 billion and net sales of ¥93.5 billion. Standalone fourth-quarter figures by segment are also provided.
Full-year earnings forecast
Net Sales¥450.0 billion
Operating profit¥30 billion
Ordinary income¥20 billion
Net income¥16 billion
Operating profit margin6.7%
First-half net sales¥210.0 billion
Second-half net sales¥240.0 billion
First-half operating profit¥12.0 billion
Second-half operating profit¥18 billion
First-half ordinary profit¥7 billion
Second-half ordinary profit¥13.0 billion
First-half net income¥0
Second-half net income¥16 billion
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The Electronics & Advanced Products segment was revised upward due to growing demand for AI-related products, while the forecast for sales volume of rapid antigen test kits in Life Innovation was revised downward. The Company-wide operating profit forecast is ¥5.0 billion below the Mission 2030 Phase 2 plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
FY2025 operating profit year on yearVolume variance: +¥6.2 billion; price variance: -¥9.4 billion; variable-cost variance: +¥8.0 billion; fixed-cost variance: -¥1.9 billion; DPE shutdown benefit: +¥8.8 billion
FY2026 operating profit year on yearVolume variance: +¥700 million; price variance: +¥48.8 billion; variable-cost variance: -¥42.2 billion; fixed-cost variance: -¥9.7 billion; DPE shutdown benefit: +¥6.2 billion
FY2026 variance from planImpact of the situation in the Middle East: -¥5.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate: ¥158.0/USD. Domestic naphtha: ¥123,250/kiloliter (¥121,100 in the first half and ¥125,400 in the second half). Raw-material procurement is expected to be constrained during the first half, recover to normal levels from October onward, and raw-material and fuel prices are expected to remain elevated throughout the fiscal year. A ¥1 depreciation of the yen against the dollar increases operating profit by ¥300 million. Global demand for chloroprene rubber: 230,000 tons.New initiatives
Completion of dedicated SNECTON facilities; development and evaluation toward beginning SNECTON sales during FY2026; adoption of spherical alumina for multilayer packages; investment in a new acetylene black production facility in Thailand; consolidation of Kainos; formulation of a plan for the early closure of DPE; and cost reductions through the Best Practice Project.Key KPIsA metric the company considers important as a management benchmark.
ROE: 5.2% in FY2025 and 5.1% forecast for FY2026. ROIC: 4.2% in FY2025 and 4.5% forecast for FY2026. Net debt-to-equity ratio: 0.60x in FY2025 and 0.69x forecast for FY2026. DOE: 2.8% in FY2025 and 2.7% forecast for FY2026.Segment results
FY2025 revenue
Electronics & Advanced Products¥104.4 billion (up ¥12.2 billion year on year)
Life Innovation¥40.5 billion (down ¥2.7 billion year on year)
Elastomers & Infrastructure Solutions¥97.6 billion (down ¥14.1 billion year on year)
Polymer Solutions¥124.2 billion (down ¥11.2 billion year on year)
Other/eliminations¥17.6 billion (down ¥200 million year on year)
FY2025 operating profit
Electronics & Advanced Products¥13.9 billion (up ¥4.7 billion year on year)
Life Innovation¥6.2 billion (down ¥3.4 billion year on year)
Elastomers & Infrastructure Solutions¥100 million (up ¥8.0 billion year on year)
Polymer Solutions¥3.6 billion (up ¥2.4 billion year on year)
Other/eliminations¥2.4 billion (down ¥0 billion year on year)
FY2026 operating profit forecast
Electronics & Advanced Products¥13.0 billion (down ¥900 million year on year)
Life Innovation¥6.0 billion (down ¥200 million year on year)
Elastomers & Infrastructure Solutions¥7.0 billion (up ¥6.9 billion year on year)
Polymer Solutions¥2.0 billion (down ¥1.6 billion year on year)
Other/eliminations¥2.0 billion (down ¥400 million year on year)
Medium-term management plan targets
Mission 2030 Phase 2 plan: FY2026 net sales of ¥410.0 billion, operating profit of ¥35.0 billion, operating margin of 8.5%, and net income of ¥18.0 billion. Latest forecast: net sales of ¥450.0 billion, operating profit of ¥30.0 billion, and net income of ¥16.0 billion.Financial targets
ROIC of 4.5% forecast for FY2026, ROE of 5.1% forecast for FY2026, net debt-to-equity ratio of 0.69x, and DOE of 2.7%.Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Impact of the situation in the Middle East: -¥5.0 billion. Risks include production cuts for acetylene black and other products due to restrictions on raw-material procurement, as well as production cuts for Polymer Solutions products.Market Size / Share
Global demand for chloroprene rubber: 230,000 tons. Market share: Not disclosed.Number of employees
DPE employees: approximately 250 (at 31 March 2025) -> approximately 140 (at 31 December 2025) -> approximately 80 (at 30 April 2026)Capital expenditures
FY2025 actual 608; FY2026 forecast 470including capital expenditures, investments and loans, CVC investments, etc.
Annual Dividend
¥100 per share (¥50 interim, ¥50 year-end)Payout ratio
Payout ratio: 54%. Total payout ratio: 54%. The target total payout ratio going forward is approximately 50% cumulatively over the eight-year management plan.Acquisition of treasury shares
No share repurchases are planned for FY2026. Repurchase limit and period: Not disclosed.| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | FY2025 (fiscal year ended March 2026) results and FY2026 (fiscal year ending March 2027) earnings forecast |
| Net Sales | FY2025 actual 3,842; FY2026 forecast 4,500 |
| Operating profit | FY2025 actual 262; FY2026 forecast 300 |
| Ordinary income | FY2025 actual 193; FY2026 forecast 200 |
| Net income | FY2025 actual 157; FY2026 forecast 160 |
| Operating profit margin | FY2025 actual 6.8% (up 3.2 percentage points year on year); FY2026 forecast 6.7% (down 0.2 percentage points year on year) |
| Results for the three months of the current quarter | The standalone operating profit of ¥93.5 billion reported for the fourth quarter of FY2025 appears to be a misstatement. The quarterly trend table shows total operating profit of ¥8.0 billion and net sales of ¥93.5 billion. Standalone fourth-quarter figures by segment are also provided. |
| Full-year earnings forecast | Net Sales ¥450.0 billion / Operating profit ¥30 billion / Ordinary income ¥20 billion / Net income ¥16 billion / Operating profit margin 6.7% / First-half net sales ¥210.0 billion / Second-half net sales ¥240.0 billion / First-half operating profit ¥12.0 billion / Second-half operating profit ¥18 billion / First-half ordinary profit ¥7 billion / Second-half ordinary profit ¥13.0 billion / First-half net income ¥0 / Second-half net income ¥16 billion |
| Self-assessment against the plan | The Electronics & Advanced Products segment was revised upward due to growing demand for AI-related products, while the forecast for sales volume of rapid antigen test kits in Life Innovation was revised downward. The Company-wide operating profit forecast is ¥5.0 billion below the Mission 2030 Phase 2 plan. |
| Segment results | FY2025 revenue Electronics & Advanced Products ¥104.4 billion (up ¥12.2 billion year on year) / Life Innovation ¥40.5 billion (down ¥2.7 billion year on year) / Elastomers & Infrastructure Solutions ¥97.6 billion (down ¥14.1 billion year on year) / Polymer Solutions ¥124.2 billion (down ¥11.2 billion year on year) / Other/eliminations ¥17.6 billion (down ¥200 million year on year) / FY2025 operating profit Electronics & Advanced Products ¥13.9 billion (up ¥4.7 billion year on year) / Life Innovation ¥6.2 billion (down ¥3.4 billion year on year) / Elastomers & Infrastructure Solutions ¥100 million (up ¥8.0 billion year on year) / Polymer Solutions ¥3.6 billion (up ¥2.4 billion year on year) / Other/eliminations ¥2.4 billion (down ¥0 billion year on year) / FY2026 operating profit forecast Electronics & Advanced Products ¥13.0 billion (down ¥900 million year on year) / Life Innovation ¥6.0 billion (down ¥200 million year on year) / Elastomers & Infrastructure Solutions ¥7.0 billion (up ¥6.9 billion year on year) / Polymer Solutions ¥2.0 billion (down ¥1.6 billion year on year) / Other/eliminations ¥2.0 billion (down ¥400 million year on year) |
| Breakdown of Factors Affecting the Change | FY2025 operating profit year on year Volume variance: +¥6.2 billion; price variance: -¥9.4 billion; variable-cost variance: +¥8.0 billion; fixed-cost variance: -¥1.9 billion; DPE shutdown benefit: +¥8.8 billion / FY2026 operating profit year on year Volume variance: +¥700 million; price variance: +¥48.8 billion; variable-cost variance: -¥42.2 billion; fixed-cost variance: -¥9.7 billion; DPE shutdown benefit: +¥6.2 billion / FY2026 variance from plan Impact of the situation in the Middle East: -¥5.0 billion |
| Key KPIs | ROE: 5.2% in FY2025 and 5.1% forecast for FY2026. ROIC: 4.2% in FY2025 and 4.5% forecast for FY2026. Net debt-to-equity ratio: 0.60x in FY2025 and 0.69x forecast for FY2026. DOE: 2.8% in FY2025 and 2.7% forecast for FY2026. |
| Number of employees | DPE employees: approximately 250 (at 31 March 2025) -> approximately 140 (at 31 December 2025) -> approximately 80 (at 30 April 2026) |
| Assumptions Underlying the Business Outlook | Exchange rate: ¥158.0/USD. Domestic naphtha: ¥123,250/kiloliter (¥121,100 in the first half and ¥125,400 in the second half). Raw-material procurement is expected to be constrained during the first half, recover to normal levels from October onward, and raw-material and fuel prices are expected to remain elevated throughout the fiscal year. A ¥1 depreciation of the yen against the dollar increases operating profit by ¥300 million. Global demand for chloroprene rubber: 230,000 tons. |
| Risk amount incorporated into the outlook | Impact of the situation in the Middle East: -¥5.0 billion. Risks include production cuts for acetylene black and other products due to restrictions on raw-material procurement, as well as production cuts for Polymer Solutions products. |
| Medium-term management plan targets | Mission 2030 Phase 2 plan: FY2026 net sales of ¥410.0 billion, operating profit of ¥35.0 billion, operating margin of 8.5%, and net income of ¥18.0 billion. Latest forecast: net sales of ¥450.0 billion, operating profit of ¥30.0 billion, and net income of ¥16.0 billion. |
| Financial targets | ROIC of 4.5% forecast for FY2026, ROE of 5.1% forecast for FY2026, net debt-to-equity ratio of 0.69x, and DOE of 2.7%. |
| Annual Dividend | ¥100 per share (¥50 interim, ¥50 year-end) |
| Payout ratio | Payout ratio: 54%. Total payout ratio: 54%. The target total payout ratio going forward is approximately 50% cumulatively over the eight-year management plan. |
| Acquisition of treasury shares | No share repurchases are planned for FY2026. Repurchase limit and period: Not disclosed. |
| Capital expenditures | FY2025 actual 608; FY2026 forecast 470 |
| Market Size / Share | Global demand for chloroprene rubber: 230,000 tons. Market share: Not disclosed. |
| New initiatives | Completion of dedicated SNECTON facilities; development and evaluation toward beginning SNECTON sales during FY2026; adoption of spherical alumina for multilayer packages; investment in a new acetylene black production facility in Thailand; consolidation of Kainos; formulation of a plan for the early closure of DPE; and cost reductions through the Best Practice Project. |
Items this document does not state (7)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsOrders 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 improvement in FY2025 operating profit was driven by growing demand for semiconductors (AI-related) and power infrastructure applications, a gradual recovery in demand for general-purpose semiconductors, and the benefits of the DPE shutdown. For FY2026, the Company expects continued growth in demand for AI-related products and power infrastructure applications, as well as the benefits of the DPE shutdown, while factoring in restrictions on raw-material procurement and production cuts resulting from the situation in the Middle East, higher raw-material and fuel prices, and scheduled maintenance for styrene monomer facilities.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.