Tokuyama Corporation (4043) Financial Summary for the Fiscal Year Ending March 2026

Overview of Performance

For the fiscal year ending March 2026, consolidated results showed net sales of ¥349.407 billion (up 1.9% YoY) and operating income of ¥37.017 billion (up 23.5% YoY), achieving both higher sales and profits. Ordinary income rose significantly to ¥38.23 billion (up 29.1% YoY), however, net income attributable to owners of parent decreased to ¥22.25 billion (down 5.1% YoY). The increase in sales was driven by newly consolidated Tokuyama Life Science Group and increased sales of semiconductor-related products. Improvement in manufacturing costs contributed to the rise in operating income. By segment, electronic advanced materials, cement, life sciences, and environmental businesses posted profit growth, whereas the chemical products segment experienced a profit decline.

Capital Policy and Dividends

The year-end dividend was set at ¥60 per share, resulting in an annual dividend of ¥120 including the interim dividend of ¥60, a ¥20 increase from the previous fiscal year. The dividend payout ratio is 38.9%. The dividend forecast for the fiscal year ending March 2027 remains undecided and will be determined based on performance trends. The number of shares outstanding remains unchanged at 72,088,327 shares. The equity ratio declined by 4.1 points to 50.8% from the previous year but the financial structure remains stable.

Business Portfolio Transformation and M&A

Based on the priority tasks of the Medium-Term Management Plan 2025, investments have been strengthened in growth areas such as 'Electronics,' 'Healthcare,' and 'Environment.' We acquired the in vitro diagnostic pharmaceuticals business from JSR Corporation and newly consolidated the Tokuyama Life Science Group. We withdrew from unprofitable operations in China and are restructuring the cement business. These actions accelerate strengthening competitiveness and reallocating resources to growth businesses.

Financial Position and Cash Flows

Total assets increased 17.1% YoY to ¥557.432 billion, liabilities rose 28.3% YoY to ¥259.620 billion, and net assets grew 8.7% YoY to ¥297.811 billion. Due to the increase in interest-bearing debt, the debt-to-equity ratio deteriorated to 0.57 times. Cash flows from operating activities were stable at ¥50.985 billion, cash flows from investing activities significantly increased with expenditures of ¥122.975 billion, and cash flows from financing activities resulted in inflows of ¥41.792 billion.

Outlook

The consolidated earnings forecast for the fiscal year ending March 2027 remains undecided, due to heightened risks from uncertain procurement of raw materials and fuel as well as rising costs. Once a reasonable earnings forecast is feasible, it will be promptly announced. The company will continue to focus on growth areas to enhance corporate value.