Contents of this document
- Start-up of the second POM plant in China (60,000 tonnes)
- New LCP capacity expansion plant in Taiwan (5,000 tonnes; scheduled to start operations in 2029)
- Establishment of a joint venture with FPC for the high-purity solvent business for semiconductor manufacturing processes (business launch scheduled for 2029)
- Planned establishment of a technical support base in India
- Pilot production of semiconductor polymers for microfluidic devices
- ROIC5 %Year on year against the same period last year+0.1%
- EBITDA¥499 hundred millionYear on year against the same period last year+23.4%
- China sales volume growth rate5 CAGR %
- India and ASEAN sales volume growth rate8 CAGR %
- AI server market growth rate20 CAGR %
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥3,120 hundred million (YoY +12.6%) |
| Operating profit | ¥285 hundred million (YoY +41.8%) |
| Ordinary income | ¥282 hundred million (YoY +38.4%) |
| Net income | ¥185 100 million (interim net income attributable to owners of the parent) (YoY -1.9%) |
| Results for the three months of the current quarter | Net Sales ¥1,596 hundred million / Operating profit ¥145 hundred million / Quarterly operating profit by segment High Performance Polymers 87 / Materials 23 / Safety 18 / Smart 9 / Life Science 5 / Other businesses 3 |
| Full-year earnings forecast | Net Sales ¥6,470 hundred million / Operating profit ¥505 hundred million / Ordinary income ¥500 hundred million / Net income ¥410 100 million (net income attributable to owners of the parent) / EBITDA ¥950 hundred million / ROE 11.3 % / ROIC 5 % / ROA 4.9 % / EPS 160.35 Yen / Exchange rate 157 USD/JPY |
| Self-assessment against the plan | First-half results exceeded the initial forecast. Second-half results are expected to fall short of the initial forecast. |
| Segment results | High Performance Polymers Net Sales ¥1,284 hundred million / Revenue year-on-year_pct 21.7 / Operating profit ¥168 hundred million / Operating profit year-on-year_pct 43.8 / Materials Net Sales ¥970 hundred million / Revenue year-on-year_pct 3 / Operating profit ¥66 hundred million / Operating profit year-on-year_pct 42.5 / Safety Net Sales ¥542 hundred million / Revenue year-on-year_pct 9 / Operating profit ¥21 hundred million / Operating profit year-on-year_pct -21.1 / Smart Net Sales ¥217 hundred million / Revenue year-on-year_pct 19.3 / Operating profit ¥16 hundred million / Operating profit year-on-year_pct 295.8 / Life Science Net Sales ¥99 hundred million / Revenue year-on-year_pct 17 / Operating profit ¥10 hundred million / Operating profit year-on-year_pct 161.2 / Other businesses Net Sales ¥8 hundred million / Revenue year-on-year_pct -21.5 / Operating profit ¥5 hundred million / Operating profit year-on-year_pct 23 |
| Breakdown of Factors Affecting the Change | Consolidated operating profit Volume impact ¥33 hundred million / Impact on pricing ¥16 hundred million / Other ¥36 hundred million / Foreign exchange impact ¥47 hundred million / Consolidated revenue Volume variance ¥56 hundred million / Price variance ¥292 hundred million / FX impact within unit price variance ¥186 hundred million / EBITDA forecast Volume impact ¥-25 hundred million / Impact on pricing ¥50 hundred million / Expense variance and other factors ¥16 hundred million / Foreign exchange impact ¥49 hundred million / CO plant issues ¥-10 hundred million |
| Key KPIs | Indicator name ROIC / Value 5 % / Year on year against the same period last year 0.1 %, Indicator name EBITDA / Value ¥499 hundred million / Year on year against the same period last year ¥23.4 hundred million, Indicator name China sales volume growth rate / Value 5 CAGR % / Year on year against the same period last year Not disclosed, Indicator name India and ASEAN sales volume growth rate / Value 8 CAGR % / Year on year against the same period last year Not disclosed, Indicator name AI server market growth rate / Value 20 CAGR % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Volume and price variances by segment; year-on-year sales volume for each product (POM +6%, PBT +7%, PPS +6%, LCP up just under 20%, COC +3%) |
| Assumptions Underlying the Business Outlook | Exchange rate First-half results 159 USD/JPY / H2 plan 155 USD/JPY / Asian methanol spot price First-half results 508 USD/ton / H2 plan 550 USD/ton / Dubai crude oil First-half results 93 USD/bbl / H2 plan 110 USD/bbl / Domestic naphtha First-half results ¥97,000 /kl / H2 plan ¥100,000 /kl |
| Risk amount incorporated into the outlook | CO plant issues ¥-10 hundred million |
| Financial targets | ROE Forecast for the fiscal year ending March 2027 11.3 % / ROIC Forecast for the fiscal year ending March 2027 5 % / ROA Forecast for the fiscal year ending March 2027 4.9 % |
| Annual Dividend | Annual ¥75 per share / Interim ¥35 per share / End of period ¥40 per share |
| Payout ratio | Payout ratio 46.2 % (forecast for the fiscal year ending March 2027) / DOE target 5% or more / Total shareholder return ratio target At least 60% |
| Acquisition of treasury shares | Amount ¥80 hundred million / Number of Shares 560 10,000 shares (maximum) / Period November 2026 to March 2027 |
| Capital expenditures | ¥635 billions (forecast for the fiscal year ending March 2027) |
| Market Size / Share | Global China market CAGR 3%, the company's China sales volume CAGR 5%, India and ASEAN sales volume CAGR 8%, and AI server market CAGR 20%. The company aims to expand its market share in China. |
| New initiatives | Start-up of the second POM plant in China (60,000 tonnes), New LCP capacity expansion plant in Taiwan (5,000 tonnes; scheduled to start operations in 2029), Establishment of a joint venture with FPC for the high-purity solvent business for semiconductor manufacturing processes (business launch scheduled for 2029), Planned establishment of a technical support base in India, Pilot production of semiconductor polymers for microfluidic devices |
Items this document does not state (9)
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 first half benefited from higher sales volumes in the High Performance Polymers business, price pass-through in response to higher raw-material prices, and foreign-exchange effects. The upward revision to the full-year forecast reflects first-half results that significantly exceeded the initial forecast and the yen remaining weaker than assumed. In the second half, the company expects to expand sales through higher raw-material prices and strategic pricing for POM.