KIMOTO CO., LTD.
7908・Standard Market・Chemicals
Japan
Core segment accounting for approximately 90% of Group sales. Engaged in the manufacture and sale of high-performance films and the Digital Twin business.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales to External Customers | ¥9,534 million | ¥9,725 million | ↓ |
| Total Including Intersegment Sales | ¥9,948 million | ¥10,491 million | ↓ |
| Segment Operating Income | ¥1,395 million | ¥1,446 million | ↓ |
| Segment Operating Margin (vs. External Customer Sales) | 14.6% | 14.9% | ↓ |
| Share of Group External Customer Sales | Approx. 90.4% | Approx. 86.1% | ↑ |
Business Details
The Japan segment, operated by Kimoto Co., Ltd. itself, is centered on the manufacture and sale of high-performance industrial materials (Hard Coat Films, LCD Component Films, etc.) built on film surface processing technology. It also serves as a supply base for products to overseas subsidiaries. In addition, the segment operates the Digital Twin Business (including SPLAT TWIN) (3D data processing, geospatial data creation, and contracted software development), making it the Group's most critical segment, accounting for approximately 90% of Group external customer sales. Products for communication equipment, electronic component manufacturing processes, and industrial equipment drove earnings, while products for transportation equipment and battery manufacturing processes remained sluggish.
Recent Overview
Sales and profit declined due to weakness in transportation equipment and battery-related products, though communication equipment and industrial equipment provided support. An impairment loss of ¥111 million was recorded as an extraordinary loss in connection with the closure of the former Technology Development Center.
In FY2026 (ending March 2026), the Japan segment recorded sales to external customers of ¥9,534 million (down 2.0% year on year) and operating income of ¥1,395 million (down 3.5% year on year). While light-shielding and adhesive products for communication equipment and hard coat products for industrial equipment supported earnings, a decline in sales of diffusion products for transportation equipment due to weak automobile production in Europe and East Asia, along with sluggish sales of products for battery manufacturing processes due to customers' revisions to production plans, contributed to the decrease in revenue. In addition, in connection with the decision to close the former Technology Development Center (Saitama City) and the transfer of manufacturing from the Mie No. 1 Plant to the Mie No. 4 Plant, an impairment loss of ¥111 million was recorded as an extraordinary loss. Asset retirement obligations (asbestos removal costs) were also newly recorded (¥172 million for the former Technology Development Center and ¥164 million for the Mie No. 1 Plant). In the Digital Twin business, the acquisition of large-scale projects in the construction and infrastructure fields continued.
Key Products
Growth Drivers
- Continued solid demand for products used in electronic component manufacturing processes
- Earnings contribution from adoption of light-shielding and adhesive products for communication equipment in new models, etc.
- Steady sales trends for hard coat products for industrial equipment (for nameplates and displays)
- Acquisition of large-scale projects in the construction and infrastructure fields and expanded orders for SPLAT TWIN in the Digital Twin business
- Improved production efficiency and reduced manufacturing costs through the transfer of manufacturing to the Mie No. 4 Plant
- Strengthened sales of high-value-added products based on the 6th Medium-Term Management Plan (FY2026 (ending March 2026) to FY2028 (ending March 2028))
Risks
- Risk of decreased sales of diffusion products for transportation equipment due to a prolonged downturn in the automobile industry
- Risk of demand fluctuations for products used in battery manufacturing processes due to customers' revisions to production plans
- Risk of a downturn in the second half due to a reaction following concentrated orders for communication equipment products in the first half
- Risk of rising crude oil and naphtha procurement costs due to tensions in the Middle East
- Impact on customer demand and cost structure from developments in U.S. trade policy (tariffs)
- Production risk during the operational transition period associated with the closure of the former Technology Development Center and transfer to the Mie No. 1 Plant
- Limited earnings contribution from the Digital Twin business due to its small sales scale (¥363 million)
- Impact on manufacturing costs from fluctuations in foreign exchange rates and raw material prices
Last updated: May 22, 2026