Daicel Corporation

Centered on Daicel Safety Systems Inc., the company operates manufacturing sites in the US, Thailand, Poland, China, and India. In FY2026 (ending March 2025), Safety segment sales reached ¥104,164 million (up 6.7% year on year), with operating income of ¥6,095 million (up 55.0% year on year). Increased sales volumes in China, India, and ASEAN, along with productivity improvements at North American sites, have been confirmed as achieved results.

Through Chiral Technologies, Inc. (US), Chiral Technologies Europe S.A.S. (France), and sites in China and India, the company has built a global sales network, achieving Medical & Healthcare segment sales of ¥16,227 million in FY2026 (ending March 2025) (up 12.4% year on year). The securities report notes that continuous development of new products and enhanced technical services have maintained high competitiveness.

Polyplastics Co., Ltd. was made a wholly owned subsidiary in October 2020, and group integration was completed through an absorption-type company split in April 2026. In FY2026 (ending March 2025), Engineering Plastics segment sales reached ¥254,718 million, forming the group's largest segment, supported by a global technical service structure utilizing five overseas Technical Solution Centers.

Effective April 1, 2026, Polyplastics' entire business (excluding the holding and management of subsidiary and affiliate shares) was transferred through an absorption-type company split. The aim is to create synergies by sharing technical service know-how, strengthening collaboration with the Safety and Material businesses, and improving corporate function efficiency. As this is treated as an internal transaction and eliminated in the consolidated financial statements, there is no direct impact on profit or loss.

The second plant construction project of TAPG in Germany has undergone a review of the start-up timing and an increase in investment amount. In response to a slower-than-originally-expected growth in demand in the environmentally friendly packaging field, the business plan was revised, resulting in the recognition of an impairment loss of ¥32,425 million. The recoverable amount was measured based on the value in use, calculated by discounting future cash flows at a discount rate of 9.8%. Determining the timing of demand recovery will be the key focus going forward.

Regarding the carbon monoxide production facilities essential for the stable supply of acetic acid and acetic acid derivatives in the Material business, measures planned for FY2027 (ending March 2027) will be reliably implemented to strengthen the foundation for stable operations. The aim is to prevent recurrence of the sales adjustments caused by plant trouble in the previous period, and this is an important measure toward normalizing profitability in the Material business.

For automotive airbag inflators, expansion of sales in the India and ASEAN markets continued, and in FY2026 (ended March 2026), operating profit improved significantly by 55.0% year on year due to increased sales volume and improved productivity at the North American site. On the other hand, the risk of declining sales to China by DSSA due to US-China tariff issues has become apparent, and stabilizing profitability through regional diversification and product diversification (such as current interrupt devices for EVs) is a challenge.

Since FY2024, DOE (dividend on equity ratio) of 4% or more has been adopted as the dividend target. In FY2026 (ended March 2026), the annual dividend of ¥60 (payout ratio of 154.8%, DOE of 4.4%) was maintained. Share buybacks of approximately 10.09 million shares, amounting to approximately ¥13,753 million, were carried out from November 2025 to March 2026, and the shareholder return ratio for the fiscal year was 288.6%. The dividend forecast for FY2027 (ending March 2027) is scheduled to be announced on May 22, 2026, together with the new mid-term strategy.