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Earnings presentation6988NITTO DENKO CORPORATIONMaterials and Chemicals

Summary of Financial Results and Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 [IFRS] (Consolidated)

In the first half of the fiscal year ending March 2027, revenue increased 8.7% year on year and operating profit increased 12.0%, resulting in higher revenue and profit. The full-year consolidated revenue and operating profit forecasts were left unchanged, while segment forecasts were revised. The annual dividend was increased to ¥72, and the company decided to repurchase shares for up to ¥50 billion and invest approximately ¥28 billion in capital expenditures for CISFLEX.

Worth reading
65In 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
113
¥ billion (year-on-year increase in first-half operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (first half) 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¥5,584 100 million+8.7%
Operating profit¥1,058 100 million+12.0%
Ordinary income¥1,064 100 million +11.8%profit before tax
Net income¥765 100 million +11.0%interim profit attributable to owners of the parent
Operating profit margin19 %
Results for the three months of the current quarter
Revenue
¥2,867 100 million
Operating profit
¥566 100 million
Pretax profit
¥568 100 million
Quarterly profit attributable to owners of the parent
¥426 100 million
Full-year earnings forecast
Revenue
¥11,100 100 million
Operating profit
¥2,000 100 million
Pretax profit
¥2,000 100 million
Profit for the period attributable to owners of the parent
¥1,420 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Selling prices, purchase prices and rationalization¥0 million (as shown in the chart)
  • Sales volume variance¥-140 100 million
  • Fixed Costs¥0 100 million
  • Royalties¥45 100 million
  • Special factors, product mix and other factors¥27 100 million
  • Foreign Exchange Effects¥196 100 million
  • Impact of the situation in the Middle East¥-30 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
U.S. dollar exchange rate
158.2 JPY/USD
Impact of the situation in the Middle East
¥-45 100 million
New initiatives
  • CISFLEX production capacity expansion and approximately ¥28 billion in capital expenditures through FY28
  • Increase in the annual dividend forecast from ¥64 to ¥72
  • Share buyback of up to ¥50 billion
Key KPIsA metric the company considers important as a management benchmark.
  • US dollar exchange rate (first-half actual)160.5 JPY/USD
    Year on year against the same period last year+9.6%
  • Operating margin (first half)19 %
    Year on year against the same period last year+0.6%
  • CISFLEX production capacity expansion15 % under investment
  • CISFLEX production capacity expansion20 % plan through FY28
Segment results
  • Industrial Tape
    Revenue¥2,081 100 million
    Operating profit¥358 100 million
    Revenue_yoy_pct16.1
    Operating profit_yoy_pct51.3
  • Optoronics
    Revenue¥2,707 100 million
    Operating profit¥740 100 million
    Revenue_yoy_pct0.3
    Operating profit_yoy_pct-4.1
  • Human Life
    Revenue¥843 100 million
    Operating profit¥10 100 million
    Revenue_yoy_pct21
    Operating profit_yoy_pctThe prior-year period was a loss of ¥1.6 billion
  • Other
    Revenue¥0 100 million
    Operating profit¥-41 100 million
    Revenue_yoy_pct116.2
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Impact of the situation in the Middle East
¥-45 100 million
Market Size / Share
Data Center-Related Product Market Size
FY25
$6,860 100 million
FY28
$12,348 100 million
FY30
$16,907 100 million
Market Growth Rate
20 % CAGR, as shown in the chart
Capital expenditures
¥1,200 100 million FY2026 forecast
Annual Dividend
Annual
¥72 per share
Interim
¥36 per share
End of period
¥36 per share
Payout ratio
33.3 % scheduled for FY2026
Total payout ratio
103.4 % scheduled for FY2026
Acquisition of treasury shares
Amount
¥500 100 million maximum
Period4 November 2026 to 24 March 2027
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (first half) of the fiscal year ending March 2027
Net Sales¥5,584 100 million (YoY +8.7%)
Operating profit¥1,058 100 million (YoY +12.0%)
Ordinary income¥1,064 100 million (profit before tax) (YoY +11.8%)
Net income¥765 100 million (interim profit attributable to owners of the parent) (YoY +11.0%)
Operating profit margin19 %
Results for the three months of the current quarterRevenue ¥2,867 100 million / Operating profit ¥566 100 million / Pretax profit ¥568 100 million / Quarterly profit attributable to owners of the parent ¥426 100 million
Full-year earnings forecastRevenue ¥11,100 100 million / Operating profit ¥2,000 100 million / Pretax profit ¥2,000 100 million / Profit for the period attributable to owners of the parent ¥1,420 100 million
Segment resultsSegment Industrial Tape / Revenue ¥2,081 100 million / Operating profit ¥358 100 million / Revenue_yoy_pct 16.1 / Operating profit_yoy_pct 51.3, Segment Optoronics / Revenue ¥2,707 100 million / Operating profit ¥740 100 million / Revenue_yoy_pct 0.3 / Operating profit_yoy_pct -4.1, Segment Human Life / Revenue ¥843 100 million / Operating profit ¥10 100 million / Revenue_yoy_pct 21 / Operating profit_yoy_pct The prior-year period was a loss of ¥1.6 billion, Segment Other / Revenue ¥0 100 million / Operating profit ¥-41 100 million / Revenue_yoy_pct 116.2 / Operating profit_yoy_pct Not disclosed
Breakdown of Factors Affecting the ChangeFactors Selling prices, purchase prices and rationalization / Amount ¥0 million (as shown in the chart), Factors Sales volume variance / Amount ¥-140 100 million, Factors Fixed Costs / Amount ¥0 100 million, Factors Royalties / Amount ¥45 100 million, Factors Special factors, product mix and other factors / Amount ¥27 100 million, Factors Foreign Exchange Effects / Amount ¥196 100 million, Factors Impact of the situation in the Middle East / Amount ¥-30 100 million
Key KPIsIndicator name US dollar exchange rate (first-half actual) / Value 160.5 JPY/USD / Year on year against the same period last year 9.6 JPY/USD, Indicator name Operating margin (first half) / Value 19 % / Year on year against the same period last year 0.6 %, Indicator name CISFLEX production capacity expansion / Value 15 % (under investment) / Year on year against the same period last year Not disclosed, Indicator name CISFLEX production capacity expansion / Value 20 % (plan through FY28) / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookU.S. dollar exchange rate 158.2 JPY/USD / Impact of the situation in the Middle East ¥-45 100 million
Risk amount incorporated into the outlookImpact of the situation in the Middle East ¥-45 100 million
Annual DividendAnnual ¥72 per share / Interim ¥36 per share / End of period ¥36 per share
Payout ratio33.3 % (scheduled for FY2026)
Acquisition of treasury sharesAmount ¥500 100 million (maximum) / Period 4 November 2026 to 24 March 2027
Capital expenditures¥1,200 100 million (FY2026 forecast)
Market Size / ShareData Center-Related Product Market Size FY25 $6,860 100 million / FY28 $12,348 100 million / FY30 $16,907 100 million / Market Growth Rate 20 % (CAGR, as shown in the chart)
New initiativesCISFLEX production capacity expansion and approximately ¥28 billion in capital expenditures through FY28, Increase in the annual dividend forecast from ¥64 to ¥72, Share buyback of up to ¥50 billion
Items this document does not state (11)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial 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.

Higher revenue and profit were driven by the expanded adoption of electric debonding tape models, increased demand for semiconductor process materials for AI data centers, and large-scale contract manufacturing projects for nucleic acids. In Optoelectronics, demand for automotive applications remained firm, but demand for IT equipment declined substantially as customers adjusted production in response to soaring memory semiconductor prices. Foreign exchange movements also contributed to the increase in profit, while the situation in the Middle East was a negative factor.

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.
Summary of Financial Results and Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 [IFRS] (Consolidated) | NITTO DENKO CORPORATION (6988) timely disclosure | Komori