Komori
Earnings presentation5184NICHIRIN CO.,LTD.Automobiles and transportation equipment

Financial Results Briefing for the Fiscal Year Ending December 2026 (Accounting Period: January–June) and Progress on Initiatives to Achieve Management That Is Conscious of Capital Costs and the Share Price

In the first half of FY ending December 2026, net sales and operating income exceeded the year-earlier period, while net income attributable to owners of the parent declined. The full-year earnings forecast was left unchanged, the assumed exchange rate for the second half was revised to ¥160 per US dollar, and progress on shareholder returns and the medium-term management plan was also presented.

Worth reading
73In 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
18.3
% (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending December 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥42,261 million+18.3%
Operating profit¥5,205 million+5.9%
Ordinary income¥5,512 million+27.4%
Net income¥2,894 million-4.1%
Operating profit margin12.32 %
Full-year earnings forecast
Net Sales
¥78,000 million
Operating profit
¥9,300 million
Ordinary income
¥9,500 million
Profit attributable to owners of the parent
¥5,600 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 Sales54.2%
Operating profit56.0%
Ordinary income58.0%
Profit attributable to owners of the parent51.7%
Capital Expenditures28.1%
Research and development costs42.4%
Cash Allocation15.9%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in contribution margin from higher sales and other factors+¥1.8 billion
  • Foreign exchange impact+¥500 million
  • Higher selling prices+¥0.3 billion
  • Higher procurement costs, etc.-¥0.4 billion
  • Increase in fixed costs-¥1.6 billion
  • Higher additional US tariffs-¥0.4 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • US dollar exchange rate for the second half of 2026160 JPY/USD
  • Initial US dollar exchange-rate assumption for 2026150 JPY/USD
  • Average actual US dollar exchange rate for January-June 2026158.29 JPY/USD
  • Average actual euro exchange rate for January-June 2026184.55 JPY/EUR
  • Average actual Chinese yuan exchange rate for January-June 202623.07 JPY/CNY
New initiatives
  • Expanded sales of new products (EVs, resins, dissimilar-material joining)
  • Expansion of sales to foreign-affiliated manufacturers
  • Installation of solar panels on the R&D center rooftop
  • Full-scale rollout of wrapping containers
  • Obtaining Kurumin and Mimosa certifications
  • Installation of a corporate sign in front of Himeji Station
Key KPIsA metric the company considers important as a management benchmark.
  • ROE10 % 2026 plan
  • PBR0.85 x actual for January-June 2026
  • PER10 x 2026 plan
  • Female employee hiring rate33 %
  • Foreign national hiring rate33 %
  • Holders of specified qualifications132 people
Segment results
Net Sales
Japan
¥18,860 million+10.1%
North America
¥9,918 million+42.9%
China
¥5,670 million+14.6%
Asia
¥14,335 million+18.1%
Europe
¥4,969 million+20.4%
Operating profit
Japan
¥2,394 million+74.1%
North America
¥-256 million-46.8%
China
¥867 million+29.6%
Asia
¥2,353 million+43.1%
Europe
¥150 million+50.7%
Medium-term management plan targets
  • Revenue from expanded sales of new products
    Target¥4.5 billion/year
    Target fiscal year2028
    Actual results¥2.02 billion/first half
  • Sales revenue from foreign-affiliated manufacturers
    Target¥20.5 billion/year
    Target fiscal year2028
    Actual results¥9.65 billion/first half
  • Reduction in Scope 1 and 2 GHG emissions
    Target20,230 t/year, a 31.5% reduction from 2022
    Target fiscal year2028
    Actual resultsAnnual results disclosed
  • Female employee hiring rate
    TargetAt least 30%
    Target fiscal year2028
    Actual results33%
  • Foreign national hiring rate
    TargetAt least 30%
    Target fiscal year2028
    Actual results33%
  • Holders of specified qualifications
    Target166 or more people
    Target fiscal year2028
    Actual results132 people
Financial targets
  • ROE
    Target10.0% (2026 plan)
  • PBR
    Target1.00x (2026 plan)
    Actual results0.85x (January-June 2026)
  • Payout ratio
    Target45.0%
  • DOE
    TargetMinimum 2.5%
Capital expenditures
¥11.1 100 million actual for January-June 2026
Annual Dividend
Annual¥190/share
Interim¥95/share
End of period¥95/share
Payout ratio
45% (target)
Acquisition of treasury shares
Buyback limitUp to ¥1.5 billion
Shares acquiredShare cancellation policy
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending December 2026
Net Sales¥42,261 million (YoY +18.3%)
Operating profit¥5,205 million (YoY +5.9%)
Ordinary income¥5,512 million (YoY +27.4%)
Net income¥2,894 million (YoY -4.1%)
Operating profit margin12.32 %
Full-year earnings forecastNet Sales ¥78,000 million / Operating profit ¥9,300 million / Ordinary income ¥9,500 million / Profit attributable to owners of the parent ¥5,600 million
Progress against full-year forecastNet Sales 54.2% / Operating profit 56.0% / Ordinary income 58.0% / Profit attributable to owners of the parent 51.7% / Capital Expenditures 28.1% / Research and development costs 42.4% / Cash Allocation 15.9%
Segment resultsNet Sales Japan ¥18,860 million (YoY +10.1%) / North America ¥9,918 million (YoY +42.9%) / China ¥5,670 million (YoY +14.6%) / Asia ¥14,335 million (YoY +18.1%) / Europe ¥4,969 million (YoY +20.4%) / Operating profit Japan ¥2,394 million (YoY +74.1%) / North America ¥-256 million (YoY -46.8%) / China ¥867 million (YoY +29.6%) / Asia ¥2,353 million (YoY +43.1%) / Europe ¥150 million (YoY +50.7%)
Breakdown of Factors Affecting the ChangeFactors Increase in contribution margin from higher sales and other factors / Amount +¥1.8 billion, Factors Foreign exchange impact / Amount +¥500 million, Factors Higher selling prices / Amount +¥0.3 billion, Factors Higher procurement costs, etc. / Amount -¥0.4 billion, Factors Increase in fixed costs / Amount -¥1.6 billion, Factors Higher additional US tariffs / Amount -¥0.4 billion
Key KPIsIndicator name ROE / Value 10 % (2026 plan) / Year on year against the same period last year Not disclosed, Indicator name PBR / Value 0.85 x (actual for January-June 2026) / Year on year against the same period last year Not disclosed, Indicator name PER / Value 10 x (2026 plan) / Year on year against the same period last year Not disclosed, Indicator name Female employee hiring rate / Value 33 % / Year on year against the same period last year Not disclosed, Indicator name Foreign national hiring rate / Value 33 % / Year on year against the same period last year Not disclosed, Indicator name Holders of specified qualifications / Value 132 people / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem US dollar exchange rate for the second half of 2026 / Value 160 JPY/USD, Item Initial US dollar exchange-rate assumption for 2026 / Value 150 JPY/USD, Item Average actual US dollar exchange rate for January-June 2026 / Value 158.29 JPY/USD, Item Average actual euro exchange rate for January-June 2026 / Value 184.55 JPY/EUR, Item Average actual Chinese yuan exchange rate for January-June 2026 / Value 23.07 JPY/CNY
Medium-term management plan targetsItem Revenue from expanded sales of new products / Target ¥4.5 billion/year / Target fiscal year 2028 / Actual results ¥2.02 billion/first half, Item Sales revenue from foreign-affiliated manufacturers / Target ¥20.5 billion/year / Target fiscal year 2028 / Actual results ¥9.65 billion/first half, Item Reduction in Scope 1 and 2 GHG emissions / Target 20,230 t/year, a 31.5% reduction from 2022 / Target fiscal year 2028 / Actual results Annual results disclosed, Item Female employee hiring rate / Target At least 30% / Target fiscal year 2028 / Actual results 33%, Item Foreign national hiring rate / Target At least 30% / Target fiscal year 2028 / Actual results 33%, Item Holders of specified qualifications / Target 166 or more people / Target fiscal year 2028 / Actual results 132 people
Financial targetsIndicator ROE / Target 10.0% (2026 plan) / Actual results Not disclosed, Indicator PBR / Target 1.00x (2026 plan) / Actual results 0.85x (January-June 2026), Indicator Payout ratio / Target 45.0% / Actual results Not disclosed, Indicator DOE / Target Minimum 2.5% / Actual results Not disclosed
Annual DividendAnnual ¥190/share / Interim ¥95/share / End of period ¥95/share
Payout ratio45% (target)
Acquisition of treasury sharesBuyback limit Up to ¥1.5 billion / Number of Shares Not disclosed / Period Not disclosed / Shares acquired Share cancellation policy
Capital expenditures¥11.1 100 million (actual for January-June 2026)
New initiativesExpanded sales of new products (EVs, resins, dissimilar-material joining), Expansion of sales to foreign-affiliated manufacturers, Installation of solar panels on the R&D center rooftop, Full-scale rollout of wrapping containers, Obtaining Kurumin and Mimosa certifications, Installation of a corporate sign in front of Himeji Station
Items this document does not state (11)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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.

An increase in contribution margin from higher sales and other factors, the impact of foreign exchange, and higher selling prices pushed up operating income, while higher procurement costs, increased fixed costs, and higher additional US tariffs weighed on earnings. The North American business posted an operating loss due to additional tariffs and other factors.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing for the Fiscal Year Ending December 2026 (Accounting Period: January–June) and Progress on Initiatives to Achieve Management That Is Conscious of Capital Costs and the Share Price | NICHIRIN CO.,LTD. (5184) timely disclosure | Komori