ADEKA CORPORATION

Business Details

The Chemicals Business consists of three subsegments: Resin Additives (polyolefin additives, PVC stabilizers/plasticizers, flame retardants, etc.), Semiconductor Materials (high-purity semiconductor materials, photoacid generators, photocurable resins, etc.), and Environmental Materials (epoxy resins, lubricant additives, surfactants, propylene glycols, etc.). It serves a wide range of industries including automotive, semiconductor, electronic components, and construction as customers, with global manufacturing and sales operations. Full-year sales for FY2026 (ending March 2026) of ¥214,810 million account for approximately 52% of the group total, making it the core business. Effective April 1, 2025, the subsegment previously named "Electronic Materials" was renamed "Semiconductor Materials," and electronics-related materials were transferred to "Environmental Materials."

Recent Overview

Chemicals Business saw lower sales and lower profit. Resin Additives and Semiconductor Materials struggled, while Environmental Materials provided support with higher sales and profit

In FY2026 (ending March 2026), the Chemicals Business recorded net sales of ¥214,810 million (down 1.7% year on year) and segment profit of ¥26,353 million (down 6.0% year on year), representing lower sales and lower profit. By subsegment, Resin Additives saw lower sales and lower profit (net sales of approximately ¥98,400 million, down 6.7% year on year) due to weak home appliance/EV market conditions and intensifying price competition; Semiconductor Materials achieved higher sales but lower profit (net sales of approximately ¥36,000 million, up 5.8% year on year) due to increased fixed costs from upfront investment, despite expanded demand for EUV and PFAS-free products; and Environmental Materials achieved higher sales and higher profit (net sales of approximately ¥80,300 million, up 1.8% year on year) driven by strong performance in lubricant additives and specialty epoxy resins. Segment assets expanded to ¥268,912 million due to continued upfront investment.

Key Products

Growth Drivers

• Continued strong performance of semiconductor lithography materials for advanced photoresists, driven by expanded adoption of EUV exposure equipment and growing demand for PFAS-free products
• Sales of high-dielectric materials shifted to an expansionary trend due to shipments of new products responding to the start of production of the latest-generation DRAM, with further sales expansion expected next fiscal year as well
• Strengthened R&D capabilities through the operation of a new research building and expanded supply capacity for Semiconductor Materials through enhanced production facilities
• Continued strong sales of lubricant additives for automotive engine oil in Asia and the US, and specialty epoxy resins for electronic components
• Recovery in Resin Additives through expanded domestic and overseas sales of a new clarifying agent, and expanded sales of flame retardants for home appliances and nucleating agents/light stabilizers for automobiles
• Expanded sales in Asia of reactive emulsifiers for construction coatings and photocurable resins for optical films
• Continued demand for PVC stabilizers for electric wires, driven by expanding data center investment
• Development of new growth areas in Environmental Materials through accelerated commercialization of battery materials

Risks

• Risk of intensifying price competition for flame retardants and antioxidants (mainly in Europe and the US) amid continued weak home appliance/EV market conditions
• Profit pressure from increased fixed costs due to upfront investment in Semiconductor Materials, such as increased R&D staffing and new production plant construction
• Possibility that the impact of declining sales prices for high-dielectric materials for advanced DRAM continues (declining profitability in Semiconductor Materials)
• Sluggish sales of reactive emulsifiers for construction coatings and industrial propylene glycols due to the slowdown in the Chinese economy
• Intensifying competition in the domestic market due to the influx of low-priced overseas products (propylene glycols, etc.)
• Foreign exchange risk (negative foreign exchange impact on operating profit in Environmental Materials has become apparent; a ¥1 appreciation of the yen reduces operating profit by approximately ¥110 million against the US dollar)
• Risk of supply chain disruption due to US tariff policy and risk of rising prices of naphtha-derived raw materials
• Risk of rising raw material and packaging material prices and supply chain disruption due to escalating tensions in the Middle East