Dexerials (4980) investor relations material

Executive summary

• FY25 net sales rose 3.1% year-over-year to 113.8 billion JPY, with business profit up 3.4% to 39.3 billion JPY, driven by high-value-added products for camera modules and optical semiconductors, despite the termination of phosphor film sales.

• Profit attributable to owners grew 1.0% to 28.0 billion JPY.

• Operating profit declined 4.1% year-over-year to 38.1 billion JPY, reflecting higher costs and changes in product mix.

• The company expanded in growth domains such as photonics and automotive, with high-value-added products supporting results.

• FY26 guidance projects net sales of 123.0 billion JPY and business profit of 40.0 billion JPY, with continued expansion in high-end smartphone and optical semiconductor markets.

Financial highlights

• EBITDA rose 4.9% to 46.9 billion JPY; EBITDA margin improved to 41.2%.

• Gross profit reached 63.8 billion JPY, up from 62.1 billion JPY the previous year.

• Dividend per share maintained at 58.0 yen; total payout ratio at 54.0%.

• FY25 Q4 saw sequential declines in both segments, with Optical Materials & Components down 16% and Electronic Materials & Components down 8% quarter-over-quarter.

• Cash and cash equivalents at year-end decreased to 16.7 billion JPY from 35.0 billion JPY.

Outlook and guidance

• FY26 net sales forecasted at 123.0 billion JPY (+8.1% YoY), business profit at 40.0 billion JPY (+1.6% YoY), and profit attributable to owners at 27.5 billion JPY (−1.8%).

• Dividend per share planned at 64.0 yen, with a payout ratio of 39.2%.

• Growth expected from optical semiconductors and high-value-added products, offsetting cost increases from investments.

• ROE and ROIC expected to decline to 23.7% and 17.8%, respectively.

• Assumed exchange rate for FY26 is 150.0 JPY/USD.