Nissan Chemical (4021): Briefing: Strong growth in semiconductor materials to continue in FY3/27

Research evidence excerpt

Nissan Chemical (4021): Briefing: Strong growth in semiconductor materials to continue in FY3/27

Nissan Chemical (4021): Briefing summary

(May 15, 16:30pm)

Earnings summary

• For FY3/26, operating profit, recurring profit, and net profit all reached record highs

for a second consecutive year following FY3/25. ROE exceeded 20% for the first

time, reaching 20.3%.

• Versus the November 2025 company forecast, OP exceeded by ¥4.6bn.

• For shareholder returns, full-year DPS was increased by ¥28 YoY to ¥200. The

company completed share buybacks of 2.2mn shares totaling ¥20.5bn. The dividend

payout ratio nearly reached the mid-term target of 55%, and total payout ratio

came to 75.7%.

• FX averaged ¥151/US$ for the full year (¥2 appreciation YoY).

• For 2H FY3/26, FX assumptions were ¥155/US$, representing ¥10 depreciation

from the prior plan assumption of ¥145/US$.

OP by segment

• Performance materials: Profit increased and exceeded plan, driven mainly by

semiconductors.

• Agrochemicals: Full-year results landed in line with plan, supported by higher sales

of Fluralaner, Gracia, Leimay, and Verdad.

• Chemicals: Profit increased YoY and exceeded forecasts, driven by higher sales of

fine chemicals and basic chemicals.

• Healthcare: Results showed only slight variance both YoY and versus forecasts.

Full-year OP YoY +¥6.8bn

• Performance materials +¥6.0bn: Driven by higher sales of semiconductors and

inorganic materials; semiconductor-related profit rose sharply by +50%.

• Agrochemicals +¥1.0bn: Higher sales of core products offset by higher fixed costs,

resulting in largely flat profit.

• Chemicals +¥0.7bn: Higher sales and reduced fixed costs following impairment in

fine chemicals in FY3/25.

• Healthcare -¥0.5bn: Decline due to lower sales in Fine Tech.

Outlook for FY3/27