NGK INSULATORS, LTD.

The company has established its own manufacturing bases in the US, Europe, Indonesia, China, Mexico, and Thailand, building a global supply system for products that address tightening exhaust gas regulations both domestically and overseas. In FY2026 (ending March 2026), Environment Business net sales reached ¥399,469 million with an operating margin of 17.1% (under the former segmentation), maintaining high profitability.

The company possesses proprietary technology in ceramic components for semiconductor manufacturing equipment (HPC) and piezoelectric micro-actuators for HDDs, achieving rapid growth in FY2026 (ending March 2026) with Digital Society Business net sales of ¥205,402 million (up 19.7% year on year) and operating profit of ¥28,105 million (up 63.5% year on year). The company has also decided on a new plant investment exceeding ¥70 billion in Ishikawa Prefecture, with plans underway to expand production capacity by approximately 20%.

Under the "NGK Group Vision Road to 2050," the company plans R&D investment of ¥300 billion over the 10-year period starting in 2021, having invested ¥142.6 billion over the first 5 years as of the end of FY2025. For the 5-year period starting in 2026, the company plans R&D investment on the scale of ¥200 billion. The company is advancing next-generation product development including DAC / Sub-nano Ceramic Membrane and Hicerum Carrier, continuously raising technological barriers to entry.

In March 2026, the company decided to build a new plant in Ishikawa Prefecture with an investment of over ¥70 billion, expanding domestic production capacity for ceramics products used in semiconductor manufacturing equipment by approximately 20%. Capturing growing demand for advanced semiconductors for AI applications, the company aims for DS Business net sales of ¥245,000 million (up 19% year on year) and operating income of ¥36,000 million (up 28%) in FY2027 (ending March 2027).

In October 2025, the company decided to end manufacturing and sales activities for NAS® Battery, recording business structural reform expenses of ¥19,959 million as an extraordinary loss in FY2026 (ending March 2026). A business structural reform provision of ¥12,270 million has already been recorded under fixed liabilities. The company forecasts E&I Business operating income of ¥4,000 million for FY2027 (ending March 2027), turning profitable from a loss of ¥1,322 million in the previous fiscal year.

The company is advancing development of DAC, which directly captures CO2 from the atmosphere, and Sub-nano Ceramic Membrane, which separates gases at the molecular level, among other technologies. R&D expenses for FY2026 (ending March 2026) expanded to ¥18,017 million (up 15.6% year on year). Under a plan to allocate ¥300 billion over 10 years from 2021, with 80% directed toward carbon neutrality and digital society-related fields, the company has already invested ¥142.6 billion over the past five years.

Effective April 1, 2026, the company took over the sales division of NGK Electro Devices Co., Ltd. (NGKED) through a simplified absorption-type company split, while integrating the manufacturing division into NGK Ceramic Devices Co., Ltd. (NCDK). Development functions have been consolidated into the parent company, aiming to enhance synergies with other fields and strengthen development capabilities. Hicerap Carrier is expected to turn profitable in FY2027 (ending March 2027).

The company has raised its dividend policy from a net asset dividend ratio of approximately 3% and a payout ratio of approximately 30% to a net asset dividend ratio of 3.5% and a payout ratio of 35% or more. The annual dividend for FY2026 (ending March 2026) is ¥80 (up from ¥60 in the previous fiscal year), with a forecast of ¥106 for FY2027 (ending March 2027) (payout ratio of 36.5%). The ROE target has also been raised from 10% or more to 12%. At the Board of Directors meeting on April 30, 2026, a share buyback of up to 6.5 million shares and ¥33.0 billion was also resolved.