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Financial results presentation4220RIKEN TECHNOS CORPORATIONMaterials and Chemicals

Briefing Materials on Financial Results and Management Overview for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, revenue and profit at each level reached record highs for the fifth consecutive fiscal year. Revenue increased 2.5% year on year and operating profit rose 8.8%, with operating profit exceeding the initial forecast. Net income attributable to owners of the parent, however, increased only 2.7% from the previous fiscal year, which included gains on the sale of investment securities.

Worth reading
91Important
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
920
¥ million (year-on-year increase in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full-year results13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥131,377 million+2.5%
Operating profit¥11,408 million+8.8%
Ordinary income¥11,786 million+11.3%
Net income¥7,569 million +2.7%net income attributable to owners of the parent
Gross Profit Margin19.5% (gross profit of ¥25,611 million / revenue of ¥131,377 million; year-on-year change not disclosed in the materials)
Operating profit margin8.7%, up 0.5 percentage points year on year
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥142,000 million
Operating profit
¥12,000 million
Ordinary income
¥12,000 million
Net income
¥6,800 million net income attributable to owners of the parent
Earnings per share
¥142.89
ROS
8.5 %
ROE
9.8 %
ROIC
11.8 %
EBITDA
¥16,900 million
Average exchange rate
158 JPY/USD
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in operating profitAppropriate sales price adjustments and timing differences: +¥2,160 million; higher sales volumes: +¥89 million; foreign exchange effects: +¥77 million; higher logistics costs: -¥174 million; higher depreciation and amortization, etc.: -¥368 million; higher personnel expenses: -¥865 million
Change in operating profit versus initial forecastAppropriate sales price adjustments and timing differences: +¥1,272 million; foreign exchange effects: +¥371 million; selling, general and administrative expense reductions: +¥252 million; sales volumes below target: -¥986 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Average exchange rate158 JPY/USD
  • Middle East situation
    DetailsAssumed to normalize from the second quarter onward
  • Naphtha price assumed in the three-year medium-term management plan¥70,000 /kl
  • Exchange rate assumed in the three-year medium-term management plan140 JPY/USD
New initiatives
  • Expansion of production facilities for the food packaging materials business and expansion of the Mie Plant
  • Expansion of thermoplastic elastomer compound production facilities
  • Expansion of production facilities for food packaging film
  • Plan to expand the Mie Plant through the acquisition of adjacent land
  • Installation of solar power generation facilities in Thailand and Vietnam
  • Introduction of a Shareholder Benefit Program
  • Launch of sales of cable materials for ADAS applications
  • Launch of sales of new products for the outpackaging market
  • Joint research and collaboration with Shimane University, Niihama National Institute of Technology, and startup companies
Key KPIsA metric the company considers important as a management benchmark.
  • ROS8.7 %
    Year on year against the same period last year+0.5 percentage points year on year
  • ROE11.4 %
    Year on year against the same period last year±0.0 percentage points
  • ROIC11.7 %
    Year on year against the same period last year+0.7 percentage points
  • EBITDA¥15,676 million
    Year on year against the same period last year+7.5%
  • New products as a percentage of revenue15 %
    Year on year against the same period last year+5 percentage points
  • Number of companies with which IR/SR meetings were held174 companies
    Year on year against the same period last year169 companies in the previous fiscal year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Revenue from compounds and films for automotive wire applications¥250 100 million
    Year on year against the same period last year+6.3%
  • Compound consumption by Japanese wire-harness manufacturers82 thousand tonnes
    Year on year against the same period last yearMarket growth: -3.2%
  • Revenue from compounds for automotive molded components¥156 100 million
    Year on year against the same period last year+3.7%
  • Dialysis circuit sales volume99 million sets
  • Revenue from medical compounds¥466 100 million
    Year on year against the same period last year+3.1%
Segment results
Transportation
Net Sales
¥42,842 million
Profit
¥4,456 million
Year-on-year sales+4.2%
Year-on-year change in profit-8.5%
Daily Life & Healthcare
Net Sales
¥36,474 million
Profit
¥3,941 million
Year-on-year sales-0.9%
Year-on-year change in profit+11.9%
Electronics
Net Sales
¥25,692 million
Profit
¥1,835 million
Year-on-year sales+4.1%
Year-on-year change in profit+87.7%
Building & Construction
Net Sales
¥26,333 million
Profit
¥1,041 million
Year-on-year sales+3.5%
Year-on-year change in profit+2.9%
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2028
Net Sales
¥142,000 million
ROS
8 %
ROE
10 %
ROIC
11 %
EBITDA
¥17,000 million
New products as a percentage of revenue
23 %
Financial targets
ROE
Target value>=10.0%
Actual value11.4 %
ROIC
Target value>=11.0%
Actual value11.7 %
PBR
Target value>=1.0x
Actual value1.17 times
Market Size / Share
The materials compare market size, market growth rates, and the company's revenue across multiple fields. Market share figures: not disclosed
Capital expenditures
¥140 100 million total investment in major domestic plants
Annual Dividend
Annual dividend per share¥54
BreakdownInterim and year-end breakdown: Not disclosed
Payout ratio
35.1 %
DOE3.5% or higher
Total payout ratio95.3
Acquisition of treasury shares
Number of shares acquired372
Share unit10,000 shares
Total acquisition price45
Amount unit¥100 million
CancellationAll acquired shares are scheduled to be cancelled; 2 million shares were cancelled on 30 June 2025
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full-year results
Net Sales¥131,377 million (YoY +2.5%)
Operating profit¥11,408 million (YoY +8.8%)
Ordinary income¥11,786 million (YoY +11.3%)
Net income¥7,569 million (net income attributable to owners of the parent) (YoY +2.7%)
Gross Profit Margin19.5% (gross profit of ¥25,611 million / revenue of ¥131,377 million; year-on-year change not disclosed in the materials)
Operating profit margin8.7%, up 0.5 percentage points year on year
Full-year earnings forecastFiscal year ending March 2027 Net Sales ¥142,000 million / Operating profit ¥12,000 million / Ordinary income ¥12,000 million / Net income ¥6,800 million (net income attributable to owners of the parent) / Earnings per share ¥142.89 / ROS 8.5 % / ROE 9.8 % / ROIC 11.8 % / EBITDA ¥16,900 million / Average exchange rate 158 JPY/USD
Segment resultsTransportation Net Sales ¥42,842 million / Profit ¥4,456 million / Year-on-year sales +4.2% / Year-on-year change in profit -8.5% / Daily Life & Healthcare Net Sales ¥36,474 million / Profit ¥3,941 million / Year-on-year sales -0.9% / Year-on-year change in profit +11.9% / Electronics Net Sales ¥25,692 million / Profit ¥1,835 million / Year-on-year sales +4.1% / Year-on-year change in profit +87.7% / Building & Construction Net Sales ¥26,333 million / Profit ¥1,041 million / Year-on-year sales +3.5% / Year-on-year change in profit +2.9%
Breakdown of Factors Affecting the ChangeYear-on-year change in operating profit Appropriate sales price adjustments and timing differences: +¥2,160 million; higher sales volumes: +¥89 million; foreign exchange effects: +¥77 million; higher logistics costs: -¥174 million; higher depreciation and amortization, etc.: -¥368 million; higher personnel expenses: -¥865 million / Change in operating profit versus initial forecast Appropriate sales price adjustments and timing differences: +¥1,272 million; foreign exchange effects: +¥371 million; selling, general and administrative expense reductions: +¥252 million; sales volumes below target: -¥986 million
Key KPIsIndicator name ROS / Value 8.7 % / Year on year against the same period last year +0.5 percentage points year on year, Indicator name ROE / Value 11.4 % / Year on year against the same period last year ±0.0 percentage points, Indicator name ROIC / Value 11.7 % / Year on year against the same period last year +0.7 percentage points, Indicator name EBITDA / Value ¥15,676 million / Year on year against the same period last year +7.5%, Indicator name New products as a percentage of revenue / Value 15 % / Year on year against the same period last year +5 percentage points, Indicator name Number of companies with which IR/SR meetings were held / Value 174 companies / Year on year against the same period last year 169 companies in the previous fiscal year
Unit price and quantity metricsIndicator name Revenue from compounds and films for automotive wire applications / Value ¥250 100 million / Year on year against the same period last year +6.3%, Indicator name Compound consumption by Japanese wire-harness manufacturers / Value 82 thousand tonnes / Year on year against the same period last year Market growth: -3.2%, Indicator name Revenue from compounds for automotive molded components / Value ¥156 100 million / Year on year against the same period last year +3.7%, Indicator name Dialysis circuit sales volume / Value 99 million sets / Year on year against the same period last year Not disclosed, Indicator name Revenue from medical compounds / Value ¥466 100 million / Year on year against the same period last year +3.1%
Assumptions Underlying the Business OutlookItem Average exchange rate / Value 158 JPY/USD, Item Middle East situation / Details Assumed to normalize from the second quarter onward, Item Naphtha price assumed in the three-year medium-term management plan / Value ¥70,000 /kl, Item Exchange rate assumed in the three-year medium-term management plan / Value 140 JPY/USD
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2028 / Net Sales ¥142,000 million / ROS 8 % / ROE 10 % / ROIC 11 % / EBITDA ¥17,000 million / New products as a percentage of revenue 23 %
Financial targetsROE Target value >=10.0% / Actual value 11.4 % / ROIC Target value >=11.0% / Actual value 11.7 % / PBR Target value >=1.0x / Actual value 1.17 times
Annual DividendAnnual dividend per share ¥54 / Breakdown Interim and year-end breakdown: Not disclosed
Payout ratio35.1 %
Acquisition of treasury sharesNumber of shares acquired 372 / Share unit 10,000 shares / Total acquisition price 45 / Amount unit ¥100 million / Period Not disclosed / Cancellation All acquired shares are scheduled to be cancelled; 2 million shares were cancelled on 30 June 2025
Capital expenditures¥140 100 million (total investment in major domestic plants)
Market Size / ShareThe materials compare market size, market growth rates, and the company's revenue across multiple fields. Market share figures: not disclosed
New initiativesExpansion of production facilities for the food packaging materials business and expansion of the Mie Plant, Expansion of thermoplastic elastomer compound production facilities, Expansion of production facilities for food packaging film, Plan to expand the Mie Plant through the acquisition of adjacent land, Installation of solar power generation facilities in Thailand and Vietnam, Introduction of a Shareholder Benefit Program, Launch of sales of cable materials for ADAS applications, Launch of sales of new products for the outpackaging market, Joint research and collaboration with Shimane University, Niihama National Institute of Technology, and startup companies
Items this document does not state (9)
Selling, general and administrative expensesThree months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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.

Profit increased by ¥2,160 million from the effects of appropriate sales price adjustments and timing differences, ¥89 million from higher sales volumes, and ¥77 million from foreign exchange effects. These gains were partly offset by higher logistics costs, depreciation and amortization, and personnel expenses.

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Briefing Materials on Financial Results and Management Overview for the Fiscal Year Ending March 2026 | RIKEN TECHNOS CORPORATION (4220) timely disclosure | Komori