November 11, 2025
Listed company: Nippon Kayaku Co., Ltd.
Listed stock exchange: Prime Market, Tokyo Stock Exchange Code No.: 4272 URL: https://www.nipponkayaku.co.jp/english/
Representative (name, position): Shigeyuki Kawamura, President
Director in charge of inquiries: Tsutomu Kawamura, Senior Director, General Manager of Finance & Accounting Division
Filing date of quarterly securities report: November 12, 2025 Scheduled date for start of dividend payments: December 1, 2025
Preparation of supplementary materials for quarterly financial results: Yes
Quarterly results presentation meeting: Yes (for securities analysts and institutional investors)
Consolidated Business Results for the Second Quarter (Semiannual) of the Fiscal Year Ending March 31, 2026 (April 1, 2025-September 30, 2025)
(Figures shown are rounded down to the nearest million yen.)
Consolidated Operating Results
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales
Operating income
Ordinary income
Profit attributable to owners of parent
First half of fiscal year ending March 31, 2026 First half of fiscal year ended March
31, 2025
Million yen
%
Million yen
%
Million yen
%
Million yen
%
113,575
109,109
4.1
11.4
10,618
11,160
(4.9)
134.1
10,843
11,666
(7.0)
40.3
11,689
5,974
95.7
(1.9)
Note: Comprehensive income First half of fiscal year ending March 31, 2026: 15,851 million yen (- %)
First half of fiscal year ended March 31, 2025: 305 million yen ((98.2)%)
Profit attributable to owners of parent per share-primary
Profit attributable to owners of parent per share-diluted
Yen
Yen
First half of fiscal
year ending
75.07
75.07
March 31, 2026
First half of fiscal
year ended March
36.21
36.20
31, 2025
Consolidated Financial Position
Total assets
Net assets
Equity ratio
Million yen
Million yen
%
As of September
30, 2025
391,904
269,224
68.4
As of March 31,
2025
373,708
268,520
71.6
Reference: Equity As of September 30, 2025: 268,238 million yen
As of March 31, 2025: 267,528 million yen
This document is an English translation of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Status of Dividends
Dividend amount per share
End of first quarter
End of second quarter
End of third quarter
End of year
Year
Yen
Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026
-
-
22.50
30.00
-
37.50
60.00
Fiscal year ending March 31, 2026
(forecast)
-
30.00
60.00
Note: Changes to the most recent dividend forecast: None
Consolidated Business Results Forecasts for the Fiscal Year Ending March 31, 2026 (April 1, 2025-
March 31, 2026)
(Percentages indicate amount of change from the same period of the previous fiscal year.)
Net sales | Operating income | Ordinary income | Profit attributable to owners of parent | Profit attributable to owners of parent per share | |||||
Full year | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
239,800 | 7.7 | 21,300 | 4.4 | 20,900 | (6.1) | 20,400 | 16.5 | 133.54 | |
Note: Changes to the most recent forecast for consolidated business results: Yes
* Notes
Significant changes in subsidiaries during the first half (changes in designated subsidiaries that result in changes in scope of consolidation): None
Newly consolidated: (company name), Deconsolidated: (company name)
Adoption of special accounting methods for presenting the semiannual consolidated financial statements: None
Changes to accounting policies and estimates and restatements
Changes to accounting policies associated with revision of accounting standards or similar items: None
Changes other than [1]: None
Changes to accounting estimates: None
Restatements: None
Number of shares issued (common stock)
Number of shares issued at end of the fiscal period (including treasury stock) As of September 30, 2025: 160,000,000 shares
As of March 31, 2025: 165,003,570 shares
Number of treasury stock at end of the fiscal period As of September 30, 2025: 6,901,699 shares
As of March 31, 2025: 5,117,318 shares
Average number of shares during the fiscal period (cumulative)
First half of the fiscal year ending March 31, 2026: 155,716,081 shares First half of the fiscal year ended March 31, 2025: 164,990,275 shares
Quarterly (semiannual) summary financial statements are not subject to audit by a certified public accountant or audit firm.
Analysis related to appropriate use of the business forecasts, and other notes (Disclaimer concerning forward-looking statements)
The information in this report constitutes forward-looking statements regarding future events and performance. This information is based on the beliefs and assumptions of management in light of information currently available to it at the time of announcement and subject to a number of uncertainties that may affect future results. Actual business results may differ substantially from the forecasts herein due to various factors. For matters pertaining to business forecasts, please refer to "(3) Analysis of Forward-looking Statements, Including Consolidated Business Results Forecasts" on page 3 of the Supplementary Information.
(How to obtain the materials for the briefing on semiannual financial results)
We have scheduled a teleconference for securities analysts and institutional investors on Wednesday, November 12, 2025. The materials for the briefing will be posted on the corporate website.
This document is an English translation of the Japanese-language original.
All financial information has been prepared in accordance with generally accepted accounting principles in Japan.
Supplementary Information
Contents
Qualitative Information Concerning Results for the Second Quarter 2
Analysis of Operating Results 2
Analysis of Financial Position 3
Analysis of Forward-looking Statements, Including Consolidated Business Results Forecasts 3
Semiannual Consolidated Financial Statements and Notes to Semiannual Consolidated Financial 4
Statements
Semiannual Consolidated Balance Sheets 4
Semiannual Consolidated Statements of Income & Consolidated Statements of Comprehensive 6
Income
Semiannual Consolidated Statements of Cash Flows 8
Notes to Semiannual Consolidated Financial Statements 10
(Notes Regarding Assumptions for the Going Concern) 10
(Notes in Case of Significant Change in Shareholders' Equity) 10
(Segment Information and Other Items) 10
1. Qualitative Information Concerning Results for the Second QuarterAnalysis of Operating Results
During the first half of this consolidated fiscal year (April 1 to September 30, 2025), the global economy maintained steady growth but faced continuing uncertainty from U.S. government tariff policy and other geopolitical risks.
The Nippon Kayaku Group entered the final year of KAYAKU Vision 2025, the mid-term business plan which began in fiscal year ended March 31, 2023, amid such conditions. We continue to implement the roadmap to the vision specified for each business while advancing initiatives to address key company-wide issues aimed at achieving the vision.
As a result, net sales for the first half of this consolidated fiscal year totaled 113,575 million yen, an increase of 4,465 million yen (4.1%) year-on-year as all business segments outperformed the first half of the previous fiscal year.
Despite the outperformance of the Fine Chemicals Business Unit and Life Science Business Unit, underperformance of the Mobility & Imaging Business Unit compared to the first half of the previous fiscal year resulted in 10,618 million yen in operating income, a decrease of 542 million yen (4.9%) year-on-year.
Ordinary income totaled 10,843 million yen, a decrease of 822 million yen (7.0%) year-on-year.
Profit attributable to owners of parent was 11,689 million yen, an increase of 5,714 million yen (95.7%) year-on-year. The increase was mainly due to a gain on sales of investment securities.
Performance by business segment is as described below.
[Mobility & Imaging Business Unit]Sales rose to 46,269 million yen, an increase of 273 million yen (0.6%) year-on-year.
In the safety systems business, problems with irregularities in certificates of conformance which halted production and shipments at some major auto manufacturers were resolved and sales of micro gas generators for seatbelt pretensioners outperformed year-on-year. Sales of airbag inflators underperformed, mainly due to cessation of production for models in which the inflators were installed.
Overseas, sales of airbag inflators, micro gas generators for seatbelt pretensioners, and squibs to the Chinese market continued the steady performance of the previous period, outperforming year-on-year.
The safety systems business overall outperformed year-on-year as a result.
In the Polatechno business, shades for HUDs recorded year-on-year growth, while LCD projector components underperformed year-on-year. Components for X-ray analysis systems underperformed year-on-year due to inventory adjustments by main customers.
The Polatechno business overall underperformed year-on-year as a result.
Segment profit totaled 5,208 million yen, a decrease of 1,816 million yen (25.9%) year-on-year. This decrease resulted from steep price increases for raw materials in the safety systems business, partially owing to fluctuation in foreign exchange rates, in addition to the decline in sales in the Polatechno business.
[Fine Chemicals Business Unit]Sales rose to 34,245 million yen, an increase of 1,627 million yen (5.0%) year-on-year.
The functional materials business as a whole outperformed the first half of the previous fiscal year. This outperformance resulted from firm demand for every product group due to expanding demand for AI and high-end servers and in the semiconductor market in general.
The color materials business as a whole outperformed the first half of the previous fiscal year. This outperformance resulted from the contribution from sales of new dichromatic colorants in addition to firm sales of industrial inkjet ink and developer for thermal paper, despite underperformance in home inkjet printer colorants.
The catalyst business outperformed the first half of the previous fiscal year.
Segment profit totaled 4,965 million yen, an increase of 61 million yen (1.2%) year-on-year. The increase stemmed from growth in sales in all business segments.
[Life Science Business Unit]Sales rose to 33,060 million yen, an increase of 2,564 million yen (8.4%) year-on-year.
In the pharmaceuticals business, pharmaceuticals for the Japanese domestic market outperformed the first half of the previous fiscal year due to increased market penetration of the anti-cancer drug PORTRAZZA®I.V. Infusion, an anti-EGFR human monoclonal antibody, and the biosimilars, BEVACIZUMAB BS and ADALIMUMAB BS. The pharmaceuticals business as a whole outperformed year-on-year despite underperformance in exports and sales of active pharmaceutical ingredients.
The agrochemicals business as a whole was on par with the first half of the previous fiscal year due to the year-on-year increase in exports, despite the year-on-year underperformance in domestic sales.
Sales in the real estate business underperformed the first half of the previous fiscal year.
Segment profit totaled 5,316 million yen, an increase of 1,726 million yen (48.1%) year-on-year. This increase resulted from growth in sales and a decrease in SG&A expenses.
Analysis of Financial Position
Status of Assets, Liabilities, and Net Assets
Total assets were 391,904 million yen, an increase of 18,195 million yen from the end of the previous consolidated fiscal year. The main increases were in cash and deposits, an increase of 13,380 million yen; merchandise and finished goods, an increase of 6,430 million yen; machinery, equipment and vehicles, net, an increase of 4,356 million yen; buildings and structures, net, an increase of 2,989 million yen; and electronically recorded monetary claims-operating, an increase of 2,090 million yen. The main decreases were in notes and accounts receivable-trade, a decrease of 5,665 million yen; and investment securities, a decrease of 5,384 million yen.
Liabilities were 122,679 million yen, an increase of 17,491 million yen compared to the end of the previous consolidated fiscal year. The main increases were in long-term loans payable, an increase of 8,393 million yen; notes and accounts payable-trade, an increase of 3,596 million yen; short-term loans payable, an increase of 3,201 million yen; and income taxes payable, an increase of 2,746 million yen.
Net assets were 269,224 million yen, an increase of 704 million yen compared to the end of the previous consolidated fiscal year. The main increase was in translation adjustments, an increase of 5,846 million yen. The main decrease was in treasury stock, a decrease of 2,650 million yen.
Cash Flows Status
Net cash inflow in operating activities amounted to 18,288 million yen (versus a cash inflow of 14,774 million yen during the same period of the previous fiscal year). The positive cash flow was primarily generated from profit before income taxes of 16,574 million yen and depreciation and amortization of 7,478 million yen. The above factors more than compensated for the increase in inventories of 5,321 million yen.
Net cash outflow in investing activities totaled 2,791 million yen (versus a cash outflow of 16,490 million yen during the same period of the previous fiscal year). The net outflow was mainly due to expenditures of 11,977 million yen for the purchase of property, plant, and equipment, which exceeded 9,404 million yen in proceeds from the sale of investment securities.
Net cash outflow in financing activities amounted to 3,691 million yen (versus a cash outflow of 9,561 million yen during the same period of the previous fiscal year). This was mainly due to expenditures for repurchase of treasury stock of 9,205 million yen, parent company dividends paid of 5,978 million yen, and 3,606 million yen for repayment of long-term loans payable, which exceeded proceeds from long-term loans payable of 15,000 million yen.
Reflecting the above cash flow performance, the balance of cash and cash equivalents at the end of the first half was 71,161 million yen (versus 52,034 million yen during the same period of the previous fiscal year), an increase of 13,235 million yen from the end of the previous fiscal year.
Analysis of Forward-looking Statements, Including Consolidated Business Results Forecasts
Despite continued signs of a gradual rebound, we need to maintain a cautious view because the business
environment surrounding the Nippon Kayaku Group faces the risk of an economic downswing due to the risk of U.S. tariff hikes, in addition to geopolitical risks, and the risk of fluctuation in foreign exchange rates.
Under these conditions, the Nippon Kayaku Group aims to respond flexibly to changes in the business environment and pursue optimal use of operating capital to increase shareholder value, as well as expand existing businesses in global growth markets, accelerate the development of new businesses and new products, and enhance profits.
The business results forecasts for consolidated fiscal year ending March 31, 2026 announced on May 13, 2025 have been revised. See the Notice of Revisions to the Business Results Forecasts announced on November 11, 2025 for more information.