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Earnings presentation4202Daicel CorporationMaterials and Chemicals

Materials for the Second-Quarter (Interim) Financial Results Briefing for the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue and operating profit increased on higher sales volumes, price pass-through and the benefits of the weaker yen, while interim net profit declined due to lower gains on the sale of cross-shareholdings. Following the stronger-than-expected first-half results, the full-year earnings forecast was revised upward, the annual dividend was increased to ¥75, and a share buyback was approved.

Worth reading
83Important
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
520
¥100 million (increase versus the initial full-year revenue forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending March 202714 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,120 hundred million+12.6%
Operating profit¥285 hundred million+41.8%
Ordinary income¥282 hundred million+38.4%
Net income¥185 100 million -1.9%interim net income attributable to owners of the parent
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 Polymers87
Materials23
Safety18
Smart9
Life Science5
Other businesses3
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
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-half results exceeded the initial forecast. Second-half results are expected to fall short of the initial forecast.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
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
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
First-half results159 USD/JPY
H2 plan155 USD/JPY
Asian methanol spot price
First-half results508 USD/ton
H2 plan550 USD/ton
Dubai crude oil
First-half results93 USD/bbl
H2 plan110 USD/bbl
Domestic naphtha
First-half results¥97,000 /kl
H2 plan¥100,000 /kl
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
Key KPIsA metric the company considers important as a management benchmark.
  • ROIC5 %
    Year on year against the same period last year+0.1%
  • EBITDA¥499 hundred million
    Year 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 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
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%)
Segment results
High Performance Polymers
Net Sales
¥1,284 hundred million
Revenue year-on-year_pct21.7
Operating profit
¥168 hundred million
Operating profit year-on-year_pct43.8
Materials
Net Sales
¥970 hundred million
Revenue year-on-year_pct3
Operating profit
¥66 hundred million
Operating profit year-on-year_pct42.5
Safety
Net Sales
¥542 hundred million
Revenue year-on-year_pct9
Operating profit
¥21 hundred million
Operating profit year-on-year_pct-21.1
Smart
Net Sales
¥217 hundred million
Revenue year-on-year_pct19.3
Operating profit
¥16 hundred million
Operating profit year-on-year_pct295.8
Life Science
Net Sales
¥99 hundred million
Revenue year-on-year_pct17
Operating profit
¥10 hundred million
Operating profit year-on-year_pct161.2
Other businesses
Net Sales
¥8 hundred million
Revenue year-on-year_pct-21.5
Operating profit
¥5 hundred million
Operating profit year-on-year_pct23
Financial targets
ROE
Forecast for the fiscal year ending March 202711.3 %
ROIC
Forecast for the fiscal year ending March 20275 %
ROA
Forecast for the fiscal year ending March 20274.9 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
CO plant issues¥-10 hundred million
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.
Capital expenditures
¥635 billions forecast for the fiscal year ending March 2027
Annual Dividend
Annual
¥75 per share
Interim
¥35 per share
End of period
¥40 per share
Payout ratio
Payout ratio46.2 % forecast for the fiscal year ending March 2027
DOE target5% or more
Total shareholder return ratio targetAt least 60%
Acquisition of treasury shares
Amount
¥80 hundred million
Number of Shares
560 10,000 shares maximum
PeriodNovember 2026 to March 2027
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond 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 quarterNet 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 forecastNet 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 planFirst-half results exceeded the initial forecast. Second-half results are expected to fall short of the initial forecast.
Segment resultsHigh 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 ChangeConsolidated 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 KPIsIndicator 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 metricsVolume 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 OutlookExchange 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 outlookCO plant issues ¥-10 hundred million
Financial targetsROE 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 DividendAnnual ¥75 per share / Interim ¥35 per share / End of period ¥40 per share
Payout ratioPayout 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 sharesAmount ¥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 / ShareGlobal 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 initiativesStart-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)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesMedium-term management plan targetsOrders 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 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.

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Materials for the Second-Quarter (Interim) Financial Results Briefing for the Fiscal Year Ending March 2027 | Daicel Corporation (4202) timely disclosure | Komori