Daicel (4202) Investor presentation summary

Revised medium-term targets

• FY2029/3 targets: net sales ¥695bn, operating income ¥72bn and EBITDA ¥129bn; increases of ¥20bn, ¥9bn and ¥9bn vs. prior plan.

• FY2031/3 challenge: net sales ¥775bn, operating income ¥118bn and EBITDA ¥188bn; increases of ¥25bn, ¥18bn and ¥18bn vs. prior plan.

• FY2031/3 financial goals: ROE 17%+, ROIC 12%+ and ROA 8%; FY2029/3 goals are 13%, 7.5% and 5%, respectively.

Business and portfolio priorities

• Materials plans refine cellulose acetate applications, sales volume and pricing, investment and cost reductions through VVCC, pulp utilization and other initiatives.

• AI data-center demand for optical connectors is driving faster investment and expanded DURAFIDE PPS supply capacity in Japan and overseas.

• Foundation portfolio targets were raised after reassessing investment benefits, with planned investment reduced; Reform targets loss reduction to ¥6bn by FY2031/3, including common fixed costs and depreciation.

• Next-Generation portfolio sales target rises from +20% to +40%; Foundation EBITDA growth target is revised from +30% to +25%.

Financial strategy and capital efficiency

• Target EBITDA of ¥188bn+, ROE of 17%+ and ROIC of 12%+; net D/E target around 0.7.

• Shareholder policy targets progressive dividends, DOE of 5%+ and a total payout ratio of 60%+; share buybacks are also part of the capital policy.

• FY2027/3–FY2031/3 cash allocation includes ¥590bn operating cash flow, ¥315bn growth investment and ¥160bn shareholder returns.

• Total days sales in inventory target: 100 days in FY2029/3 and below 90 days in FY2031/3, from 147 days in FY2026/3.