Nippon Kayaku Co (4272) Investor presentation summary

Corporate vision and strategy

• Pursues sustainable management guided by the KAYAKU spirit, aiming to create environmental and social value while increasing corporate value.

• Holds a leading global market share in micro gas generators, squibs, epoxy resins for semiconductors, and catalysts for acrylic acid.

• Focuses on innovation in safety systems, functional materials, fine chemicals, and life sciences.

• Implements a medium-term plan, "Evolution2035 Phase1," targeting inorganic growth through new businesses and M&A.

• Aims for 500 bn yen in sales and 15%+ ROE by FY2035, with a shift toward new drugs and contract manufacturing in pharmaceuticals.

Financial performance and outlook

• Achieved record net sales of 241.9 bn yen and operating income of 32.3 bn yen in FY2025, with profit attributable to owners at 24.6 bn yen.

• Overseas net sales ratio stands at 56%, with 25 group companies and 5,946 employees.

• Forecasts FY2026 net sales of 260.6 bn yen and operating income of 35.2 bn yen.

• Maintains a progressive dividend for 46 consecutive years, with a payout ratio of 40.9% and total payout ratio of 106.2%.

• Equity ratio is 70.0%, with total assets of 398.7 bn yen as of March 2026.

Business segments and market position

• Mobility & Imaging is the largest segment, contributing 39% of FY2025 net sales, followed by Fine Chemicals (31%) and Life Science (30%).

• Holds the top global share in micro gas generators and catalysts for acrylic acid, and leads domestically in anti-cancer drugs.

• Expands in automotive safety, semiconductor materials, inkjet colorants, and biopharmaceuticals.

• Strengthens global production and supply systems, with manufacturing and sales bases in Asia, Europe, and the Americas.

• Focuses on high-growth markets such as autonomous driving, advanced packaging, and drone safety devices.