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Presentation materials on financial results4208UBE CorporationMaterials and Chemicals

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue, operating income and ordinary income increased, driven by the contribution from the UBE Systems business, strong sales of functional products, and price revisions for resins and chemicals. On the other hand, net income attributable to owners of the parent decreased because of higher tax expenses.

Worth reading
71In focus
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
26
¥100 million (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,219 100 million+21.3%
Operating profit¥56 100 million+88.6%
Ordinary income¥113 100 million+81.5%
Net income¥42 100 million-3.9%
Operating profit margin4.6%, versus 2.9% in the same period of the previous year (up 1.7 percentage points year on year)
Results for the three months of the current quarterRevenue ¥121.9 billion, EBITDA ¥13.0 billion, operating income ¥5.6 billion, ordinary income ¥11.3 billion, net income attributable to owners of the parent ¥4.2 billion
Full-year earnings forecast
Net Sales
¥4,850 100 million
EBITDA
¥565 100 million
Operating profit
¥235 100 million
Ordinary income
¥375 100 million
Profit attributable to owners of the parent
¥245 100 million
Capital Expenditure
¥850 100 million
Depreciation and amortization
¥310 100 million
Research and development costs
¥130 100 million
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 Sales25.1%
EBITDA23.0%
Operating profit23.6%
Ordinary income30.0%
Profit attributable to owners of parent for the quarter17.1%
Segment revenue
Functional products23.1%
High-performance urethane23.1%
Pharmaceuticals22.4%
Resins and chemicals27.4%
Machinery20.2%
Other26.1%
Operating profit by segment
Functional products21.6%
High-performance urethane60.8%
Machinery24.1%
Other32.9%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated operating profit
Price difference
¥9 100 million
Volume variance
¥-1 100 million
Fixed costs and other factors
¥17 100 million
Total
¥26 100 million
Company-wide revenue
Functional products
¥31 100 million
High-performance urethane
¥125 100 million
Pharmaceuticals
¥4 100 million
Resins and chemicals
¥65 100 million
Machinery
¥-4 100 million
Other
¥8 100 million
Adjustments
¥-15 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate¥159.5/$
Naphtha CIF1,018$/t
Domestic naphtha¥114,100/KL
Australian coal CIF$160.8/tonne, ¥25,638/tonne
New initiatives
  • Commencement of commercial operation of polyimide film production equipment
  • Preparation for commercial operation and construction of ceramics separator production equipment
  • Application for the listing of UBE Mitsubishi Cement on the Tokyo Stock Exchange
  • Considering raising the DOE level to at least 4.0%
  • Considering share repurchases using part of the IPO proceeds
  • Business restructuring through the suspension or reduction of caprolactam, nylon polymer and ammonia production
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥130 100 million
    Year on year against the same period last year45.3%
  • Business profit¥115 100 million
  • D/E ratio0.77 times
    Year on year against the same period last year0.82 times in the same period of the previous year
  • Equity ratio46.7 %
    Year on year against the same period last year46.2% in the same period of the previous year
  • Research and development costs¥36 100 million
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Sales volume of major functional productsIncreased
    Year on year against the same period last yearIncreased
  • Domestic cement sales volume173 10,000 tonnes
    Year on year against the same period last year1.87 million tonnes in the same period of the previous year
  • U.S. cement sales volume35 10,000 short tons
    Year on year against the same period last year420,000 short tons in the same period of the previous year
  • U.S. ready-mixed concrete sales volume142 10,000 cubic yards
    Year on year against the same period last year1.64 million cubic yards in the same period of the previous year
  • Thermal coal prices$136 /t
    Year on year against the same period last year$100/tonne in the same period of the previous year
Segment results
Functional products
Net Sales
¥206 100 million
Year-on-year change in revenue18.0%
Operating profit
¥32 100 million
Year-on-year operating profit growth69.2%
High-performance urethane
Net Sales
¥157 100 million
Year-on-year change in revenue397.0%
Operating profit
¥6 100 million
Operating profit for the same period of the previous year-¥400 million
Pharmaceuticals
Net Sales
¥47 100 million
Year-on-year change in revenue9.8%
Operating profit
¥-5 100 million
Operating profit for the same period of the previous year-¥600 million
Resins and chemicals
Net Sales
¥655 100 million
Year-on-year change in revenue11.0%
Operating profit
¥26 100 million
Year-on-year operating profit growth114.7%
Machinery
Net Sales
¥141 100 million
Year-on-year change in revenue△2.8%
Operating profit
¥11 100 million
Year-on-year operating profit growth2.9%
Other
Net Sales
¥94 100 million
Year-on-year change in revenue9.0%
Operating profit
¥5 100 million
Year-on-year operating profit growth△5.0%
Medium-term management plan targets
DOEAt least 3.5%, with a target of raising it to at least 4.0%
2030 GHG emissions reduction50% reduction from fiscal 2013
2030 sales ratio of environmentally contributing products and technologies60%
Market Size / Share
Total domestic cement demand of 7.21 million tonnes, versus 7.64 million tonnes in the same period of the previous year. Market share: Not disclosed
Capital expenditures
¥175 100 million actual for the quarter) / ¥85.0 billion full-year forecast
Annual Dividend
Annual Dividend Forecast¥160/share
Interim Dividend¥80 per share
Year-end dividend¥80 per share
Acquisition of treasury shares
Considering share repurchases using part of the IPO proceeds from the Machinery and cement-related businesses
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥1,219 100 million (YoY +21.3%)
Operating profit¥56 100 million (YoY +88.6%)
Ordinary income¥113 100 million (YoY +81.5%)
Net income¥42 100 million (YoY -3.9%)
Operating profit margin4.6%, versus 2.9% in the same period of the previous year (up 1.7 percentage points year on year)
Results for the three months of the current quarterRevenue ¥121.9 billion, EBITDA ¥13.0 billion, operating income ¥5.6 billion, ordinary income ¥11.3 billion, net income attributable to owners of the parent ¥4.2 billion
Full-year earnings forecastNet Sales ¥4,850 100 million / EBITDA ¥565 100 million / Operating profit ¥235 100 million / Ordinary income ¥375 100 million / Profit attributable to owners of the parent ¥245 100 million / Capital Expenditure ¥850 100 million / Depreciation and amortization ¥310 100 million / Research and development costs ¥130 100 million
Progress against full-year forecastNet Sales 25.1% / EBITDA 23.0% / Operating profit 23.6% / Ordinary income 30.0% / Profit attributable to owners of parent for the quarter 17.1% / Segment revenue Functional products 23.1% / High-performance urethane 23.1% / Pharmaceuticals 22.4% / Resins and chemicals 27.4% / Machinery 20.2% / Other 26.1% / Operating profit by segment Functional products 21.6% / High-performance urethane 60.8% / Machinery 24.1% / Other 32.9%
Segment resultsFunctional products Net Sales ¥206 100 million / Year-on-year change in revenue 18.0% / Operating profit ¥32 100 million / Year-on-year operating profit growth 69.2% / High-performance urethane Net Sales ¥157 100 million / Year-on-year change in revenue 397.0% / Operating profit ¥6 100 million / Operating profit for the same period of the previous year -¥400 million / Pharmaceuticals Net Sales ¥47 100 million / Year-on-year change in revenue 9.8% / Operating profit ¥-5 100 million / Operating profit for the same period of the previous year -¥600 million / Resins and chemicals Net Sales ¥655 100 million / Year-on-year change in revenue 11.0% / Operating profit ¥26 100 million / Year-on-year operating profit growth 114.7% / Machinery Net Sales ¥141 100 million / Year-on-year change in revenue △2.8% / Operating profit ¥11 100 million / Year-on-year operating profit growth 2.9% / Other Net Sales ¥94 100 million / Year-on-year change in revenue 9.0% / Operating profit ¥5 100 million / Year-on-year operating profit growth △5.0%
Breakdown of Factors Affecting the ChangeConsolidated operating profit Price difference ¥9 100 million / Volume variance ¥-1 100 million / Fixed costs and other factors ¥17 100 million / Total ¥26 100 million / Company-wide revenue Functional products ¥31 100 million / High-performance urethane ¥125 100 million / Pharmaceuticals ¥4 100 million / Resins and chemicals ¥65 100 million / Machinery ¥-4 100 million / Other ¥8 100 million / Adjustments ¥-15 100 million
Key KPIsIndicator name EBITDA / Value ¥130 100 million / Year on year against the same period last year 45.3%, Indicator name Business profit / Value ¥115 100 million / Year on year against the same period last year Not disclosed, Indicator name D/E ratio / Value 0.77 times / Year on year against the same period last year 0.82 times in the same period of the previous year, Indicator name Equity ratio / Value 46.7 % / Year on year against the same period last year 46.2% in the same period of the previous year, Indicator name Research and development costs / Value ¥36 100 million / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Sales volume of major functional products / Value Increased / Year on year against the same period last year Increased, Indicator name Domestic cement sales volume / Value 173 10,000 tonnes / Year on year against the same period last year 1.87 million tonnes in the same period of the previous year, Indicator name U.S. cement sales volume / Value 35 10,000 short tons / Year on year against the same period last year 420,000 short tons in the same period of the previous year, Indicator name U.S. ready-mixed concrete sales volume / Value 142 10,000 cubic yards / Year on year against the same period last year 1.64 million cubic yards in the same period of the previous year, Indicator name Thermal coal prices / Value $136 /t / Year on year against the same period last year $100/tonne in the same period of the previous year
Assumptions Underlying the Business OutlookExchange rate ¥159.5/$ / Naphtha CIF 1,018$/t / Domestic naphtha ¥114,100/KL / Australian coal CIF $160.8/tonne, ¥25,638/tonne
Medium-term management plan targetsDOE At least 3.5%, with a target of raising it to at least 4.0% / 2030 GHG emissions reduction 50% reduction from fiscal 2013 / 2030 sales ratio of environmentally contributing products and technologies 60%
Annual DividendAnnual Dividend Forecast ¥160/share / Interim Dividend ¥80 per share / Year-end dividend ¥80 per share
Acquisition of treasury sharesConsidering share repurchases using part of the IPO proceeds from the Machinery and cement-related businesses
Capital expenditures¥175 100 million (actual for the quarter) / ¥85.0 billion full-year forecast
Market Size / ShareTotal domestic cement demand of 7.21 million tonnes, versus 7.64 million tonnes in the same period of the previous year. Market share: Not disclosed
New initiativesCommencement of commercial operation of polyimide film production equipment, Preparation for commercial operation and construction of ceramics separator production equipment, Application for the listing of UBE Mitsubishi Cement on the Tokyo Stock Exchange, Considering raising the DOE level to at least 4.0%, Considering share repurchases using part of the IPO proceeds, Business restructuring through the suspension or reduction of caprolactam, nylon polymer and ammonia production
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsPayout 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.

Revenue increased due to the contribution from the UBE Systems business, which was not included in consolidated earnings in the same period of the previous year, higher selling prices for resins and chemicals, and increased sales volumes of major functional products. The contribution from UBE Systems and steady sales of functional products outweighed the impact of surging raw material and fuel prices, resulting in higher operating income. Ordinary income improved due in part to higher equity-method investment income, while net income declined because of higher tax expenses.

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Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | UBE Corporation (4208) timely disclosure | Komori