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Financial results presentation4208UBE CorporationMaterials and Chemicals

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

For the interim period of the fiscal year ending March 2027, revenue, operating income and ordinary income increased, driven by the contribution of the Urethane Systems business, strong sales of functional products and sales price adjustments to address higher raw material and fuel costs. Interim net income attributable to owners of the parent declined due to higher tax expenses.

Worth reading
81Important
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
37
Year-on-year increase in operating income (¥100 million)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter (interim period) of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,447 hundred million+15.0%
Operating profit¥122 hundred million+44.2%
Ordinary income¥205 hundred million+27.2%
Net income¥105 hundred million-5.7%
Operating profit margin5
Results for the three months of the current quarter
Net Sales
First quarter¥1,219 hundred million
Second quarter¥1,228 hundred million
Operating profit
First quarter¥56 hundred million
Second quarter¥66 hundred million
By segment
Functional products
Net Sales
First quarter¥206 hundred million
Second quarter¥211 hundred million
Operating profit
First quarter¥32 hundred million
Second quarter¥37 hundred million
High-performance urethane
Net Sales
First quarter¥157 hundred million
Second quarter¥161 hundred million
Operating profit
First quarter¥6 hundred million
Second quarter¥-2 hundred million
Pharmaceuticals
Net Sales
First quarter¥47 hundred million
Second quarter¥48 hundred million
Operating profit
First quarter¥-5 hundred million
Second quarter¥-2 hundred million
Resins and chemicals
Net Sales
First quarter¥655 hundred million
Second quarter¥623 hundred million
Operating profit
First quarter¥26 hundred million
Second quarter¥33 hundred million
Machinery
Net Sales
First quarter¥141 hundred million
Second quarter¥149 hundred million
Operating profit
First quarter¥11 hundred million
Second quarter¥10 hundred million
Other
Net Sales
First quarter¥94 hundred million
Second quarter¥111 hundred million
Operating profit
First quarter¥5 hundred million
Second quarter¥5 hundred million
Full-year earnings forecast
Net Sales
¥5,180 hundred million
EBITDA
¥595 hundred million
Operating profit
¥265 hundred million
Ordinary income
¥390 hundred million
Profit attributable to owners of the parent
¥255 hundred million
Annual dividend
¥160 per share
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 Sales47.2%
EBITDA45.7%
Operating profit45.9%
Ordinary income52.5%
Interim (current-period) net income attributable to owners of the parent41.0%
Segment revenue
Functional products47.3%
High-performance urethane46.1%
Pharmaceuticals47.5%
Resins and chemicals47.4%
Machinery42.9%
Other52.5%
Operating profit by segment
Functional products43.6%
Resins and chemicals45.4%
Machinery37.7%
Other51.9%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue, operating income, ordinary income and net income attributable to owners of the parent are expected to exceed plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated operating profit
Price difference¥43 hundred million
Volume variance¥12 hundred million
Fixed costs and other factors¥-17 hundred million
Functional products operating profit
Price difference¥-8 hundred million
Volume variance¥29 hundred million
Fixed costs and other factors¥5 hundred million
High-performance urethane operating profit
Price difference¥3 hundred million
Volume variance¥9 hundred million
Fixed costs and other factors¥-4 hundred million
Pharmaceuticals operating profit
Price difference¥3 hundred million
Volume variance¥6 hundred million
Fixed costs and other factors¥-10 hundred million
Resins and chemical products operating profit
Price difference¥30 hundred million
Volume variance¥-30 hundred million
Fixed costs and other factors¥20 hundred million
Machinery operating profit
Machinery segment contribution profit¥9 hundred million
Other operating profit
Price difference¥15 hundred million
Volume variance¥-2 hundred million
Fixed costs and other factors¥-13 hundred million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
157.2 JPY/USD
Naphtha CIF
$925 /t
Domestic naphtha
¥103,500 /KL
Australian coal CIF
$168 /t
Australian coal
¥26,400 /t
New initiatives
  • Consideration of share buybacks using a portion of the IPO proceeds from the Machinery and Cement-Related businesses
  • Policy to raise DOE from 3.5% or higher to 4.0% or higher
  • Capacity expansion for polyimide, separation membranes, ceramics, separators and C1 chemicals, among others
  • Business structure reform, including the suspension or downsizing of ammonia, caprolactam and nylon polymer production
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥272 hundred million
    Year on year against the same period last year27.5%
  • D/E ratio0.8 times
    Year-earlier period0.79
  • Equity ratio46.7 %
    Year-earlier period46.7
  • Operating margin5 %
    Year-earlier period4
  • Capital Expenditure¥325 hundred million
    Year-earlier period212
  • R&D expenses¥70 hundred million
    Year-earlier period58
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Sales volume of major functional products
    Year on year against the same period last yearIncreased
  • Contract pharmaceutical product sales volume
    Year on year against the same period last yearWeak
  • Domestic cement sales volume348 10,000 tonnes
    Year-earlier period375
  • U.S. cement sales volume69 10,000 short tons
    Year-earlier period81
  • U.S. ready-mixed concrete sales volume284 10,000 cubic yards
    Year-earlier period313
Segment results
Functional products
Net Sales417
Year-on-year revenue growth21.2%
Operating profit70
Year-on-year operating profit growth61.1%
High-performance urethane
Net Sales318
Year-on-year revenue growth86.6%
Operating profit4
Operating profit for the same period of the previous year-4
Pharmaceuticals
Net Sales95
Year-on-year revenue growth-9.3%
Operating profit-7
Operating profit for the same period of the previous year-5
Resins and chemicals
Net Sales1,278
Year-on-year revenue growth9.0%
Operating profit59
Year-on-year operating profit growth46.2%
Machinery
Net Sales290
Year-on-year revenue growth-2.7%
Operating profit21
Year-on-year operating profit growth10.1%
Other
Net Sales205
Year-on-year revenue growth22.7%
Operating profit10
Year-on-year operating profit growth0.0%
Medium-term management plan targets
DOE
Initial targetAt least 2.5%
Current3.5% or higher
TargetAims to raise DOE to 4.0% at an early date
Reduce GHG emissions
FY203050% reduction (vs. FY2013)
FY203570% reduction (vs. FY2013)
Female employee ratio
FY203025.0%
Female Management Ratio
FY203010.0%
Financial targets
Debt-to-equity ratio
Six-month results0.8 times
Full-year forecast0.92 times
Equity ratio
Six-month results46.7 %
Full-year forecast44.1 %
ROE
Full-year forecast5.7 %
ROIC
Full-year forecast4.1 %
Capital expenditures
¥325 hundred million
Annual Dividend
Annual¥160 per share
Interim¥80 per share
End of period¥80 per share
Acquisition of treasury shares
Considering share buybacks using a portion of the IPO proceeds from the Machinery and Cement-Related businesses
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥2,447 hundred million (YoY +15.0%)
Operating profit¥122 hundred million (YoY +44.2%)
Ordinary income¥205 hundred million (YoY +27.2%)
Net income¥105 hundred million (YoY -5.7%)
Operating profit margin5
Results for the three months of the current quarterNet Sales First quarter ¥1,219 hundred million / Second quarter ¥1,228 hundred million / Operating profit First quarter ¥56 hundred million / Second quarter ¥66 hundred million / By segment Functional products Net Sales First quarter ¥206 hundred million / Second quarter ¥211 hundred million / Operating profit First quarter ¥32 hundred million / Second quarter ¥37 hundred million / High-performance urethane Net Sales First quarter ¥157 hundred million / Second quarter ¥161 hundred million / Operating profit First quarter ¥6 hundred million / Second quarter ¥-2 hundred million / Pharmaceuticals Net Sales First quarter ¥47 hundred million / Second quarter ¥48 hundred million / Operating profit First quarter ¥-5 hundred million / Second quarter ¥-2 hundred million / Resins and chemicals Net Sales First quarter ¥655 hundred million / Second quarter ¥623 hundred million / Operating profit First quarter ¥26 hundred million / Second quarter ¥33 hundred million / Machinery Net Sales First quarter ¥141 hundred million / Second quarter ¥149 hundred million / Operating profit First quarter ¥11 hundred million / Second quarter ¥10 hundred million / Other Net Sales First quarter ¥94 hundred million / Second quarter ¥111 hundred million / Operating profit First quarter ¥5 hundred million / Second quarter ¥5 hundred million
Full-year earnings forecastNet Sales ¥5,180 hundred million / EBITDA ¥595 hundred million / Operating profit ¥265 hundred million / Ordinary income ¥390 hundred million / Profit attributable to owners of the parent ¥255 hundred million / Annual dividend ¥160 per share
Progress against full-year forecastNet Sales 47.2% / EBITDA 45.7% / Operating profit 45.9% / Ordinary income 52.5% / Interim (current-period) net income attributable to owners of the parent 41.0% / Segment revenue Functional products 47.3% / High-performance urethane 46.1% / Pharmaceuticals 47.5% / Resins and chemicals 47.4% / Machinery 42.9% / Other 52.5% / Operating profit by segment Functional products 43.6% / Resins and chemicals 45.4% / Machinery 37.7% / Other 51.9%
Self-assessment against the planRevenue, operating income, ordinary income and net income attributable to owners of the parent are expected to exceed plan.
Segment resultsFunctional products Net Sales 417 / Year-on-year revenue growth 21.2% / Operating profit 70 / Year-on-year operating profit growth 61.1% / High-performance urethane Net Sales 318 / Year-on-year revenue growth 86.6% / Operating profit 4 / Operating profit for the same period of the previous year -4 / Pharmaceuticals Net Sales 95 / Year-on-year revenue growth -9.3% / Operating profit -7 / Operating profit for the same period of the previous year -5 / Resins and chemicals Net Sales 1,278 / Year-on-year revenue growth 9.0% / Operating profit 59 / Year-on-year operating profit growth 46.2% / Machinery Net Sales 290 / Year-on-year revenue growth -2.7% / Operating profit 21 / Year-on-year operating profit growth 10.1% / Other Net Sales 205 / Year-on-year revenue growth 22.7% / Operating profit 10 / Year-on-year operating profit growth 0.0%
Breakdown of Factors Affecting the ChangeConsolidated operating profit Price difference ¥43 hundred million / Volume variance ¥12 hundred million / Fixed costs and other factors ¥-17 hundred million / Functional products operating profit Price difference ¥-8 hundred million / Volume variance ¥29 hundred million / Fixed costs and other factors ¥5 hundred million / High-performance urethane operating profit Price difference ¥3 hundred million / Volume variance ¥9 hundred million / Fixed costs and other factors ¥-4 hundred million / Pharmaceuticals operating profit Price difference ¥3 hundred million / Volume variance ¥6 hundred million / Fixed costs and other factors ¥-10 hundred million / Resins and chemical products operating profit Price difference ¥30 hundred million / Volume variance ¥-30 hundred million / Fixed costs and other factors ¥20 hundred million / Machinery operating profit Machinery segment contribution profit ¥9 hundred million / Other operating profit Price difference ¥15 hundred million / Volume variance ¥-2 hundred million / Fixed costs and other factors ¥-13 hundred million
Key KPIsIndicator name EBITDA / Value ¥272 hundred million / Year on year against the same period last year 27.5%, Indicator name D/E ratio / Value 0.8 times / Year-earlier period 0.79 times, Indicator name Equity ratio / Value 46.7 % / Year-earlier period 46.7 %, Indicator name Operating margin / Value 5 % / Year-earlier period 4 %, Indicator name Capital Expenditure / Value ¥325 hundred million / Year-earlier period ¥212 hundred million, Indicator name R&D expenses / Value ¥70 hundred million / Year-earlier period ¥58 hundred million
Unit price and quantity metricsIndicator name Sales volume of major functional products / Year on year against the same period last year Increased, Indicator name Contract pharmaceutical product sales volume / Year on year against the same period last year Weak, Indicator name Domestic cement sales volume / Value 348 10,000 tonnes / Year-earlier period 375 10,000 tonnes, Indicator name U.S. cement sales volume / Value 69 10,000 short tons / Year-earlier period 81 10,000 short tons, Indicator name U.S. ready-mixed concrete sales volume / Value 284 10,000 cubic yards / Year-earlier period 313 10,000 cubic yards
Assumptions Underlying the Business OutlookExchange rate Value 157.2 JPY/USD / Naphtha CIF Value $925 /t / Domestic naphtha Value ¥103,500 /KL / Australian coal CIF Value $168 /t / Australian coal Value ¥26,400 /t
Medium-term management plan targetsDOE Initial target At least 2.5% / Current 3.5% or higher / Target Aims to raise DOE to 4.0% at an early date / Reduce GHG emissions FY2030 50% reduction (vs. FY2013) / FY2035 70% reduction (vs. FY2013) / Female employee ratio FY2030 25.0% / Female Management Ratio FY2030 10.0%
Financial targetsDebt-to-equity ratio Six-month results 0.8 times / Full-year forecast 0.92 times / Equity ratio Six-month results 46.7 % / Full-year forecast 44.1 % / ROE Full-year forecast 5.7 % / ROIC Full-year forecast 4.1 %
Annual DividendAnnual ¥160 per share / Interim ¥80 per share / End of period ¥80 per share
Acquisition of treasury sharesConsidering share buybacks using a portion of the IPO proceeds from the Machinery and Cement-Related businesses
Capital expenditures¥325 hundred million
New initiativesConsideration of share buybacks using a portion of the IPO proceeds from the Machinery and Cement-Related businesses, Policy to raise DOE from 3.5% or higher to 4.0% or higher, Capacity expansion for polyimide, separation membranes, ceramics, separators and C1 chemicals, among others, Business structure reform, including the suspension or downsizing of ammonia, caprolactam and nylon polymer production
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioOrders received and order backlogMarket Size / ShareKey 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.

For revenue, the company cited the contribution of the Urethane Systems business to consolidated earnings, strong sales of key functional products, sales price adjustments for resins and chemicals, and inventory valuation differences. The increase in operating income was attributed to contributions from the Urethane Systems business, sales of functional products, sales of resins and chemicals, and solid performance in after-sales services in the Machinery segment. The decline in interim net income was attributed to higher tax expenses.

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