4221.T

• Consolidated FY2025 Financial Results

  • Consolidated revenue increased 6.7% YoY to 86.65 billion yen, operating profit increased 35.5% YoY to 6.18 billion yen (the highest profit since adopting consolidated reporting), and ordinary profit increased 25.8% YoY to 6.42 billion yen (also a record high). Net income decreased 12.5% YoY to 3.81 billion yen due to impairment losses booked for structural reform.
  • By quarter, large display optical film orders increased from Q1 to Q2, dipped temporarily in Q3 due to customer inventory adjustment, and recovered in Q4.
  • Total assets increased 20 million yen from the prior year-end to 103.04 billion yen; net assets increased 1.05 billion yen to 63.13 billion yen. Ending cash balance decreased 960 million yen from the prior year-end to 7.98 billion yen; operating cash flow increased 9.9 billion yen, investing cash flow decreased 7.97 billion yen, and financing cash flow decreased 2.9 billion yen.

• Medium-Term Management Plan (2027) Strategic Progress

  • The plan is positioned as the stage to convert prior investments into results and expand the business scope, with 2027 targets of 93 billion yen in revenue, 7 billion yen in operating profit, and 7.5% adjusted ROE. It is built on three core basic policies: steady execution of growth strategies, promotion of overseas business to expand the business scope, and new product creation via strengthened R&D.
  • Completed acquisition of Fujiko Co., Ltd. as a consolidated subsidiary (the company's first full-scale M&A): Fujiko has manufacturing operations in Kagawa Prefecture, strong film processing technology, and established customer relationships across automotive, information electronics, and semiconductor sectors, which aligns perfectly with Okura's growth strategy. The company will integrate manufacturing/development processes, combine Okura's film forming technology with Fujiko's processing technology to build a vertically integrated development/production system, leverage Fujiko's clean room facilities to accelerate new product launches in growth sectors, and optimize production/procurement to cut costs, targeting 1 billion yen in annual profit from Fujiko alone by 2030.
  • G2 Line (new optical acrylic film plant) profitability improvement: G2 Line started full operation in late 2024, achieved almost full-year stable operation in 2025, obtained customer certifications and expanded product grades. Going forward, the company will focus on quality improvement, cost reduction, and capacity expansion via equipment speed increases and yield improvements to boost profitability; it will optimize production across the entire optical film business (including existing G1 and MC1 lines) to maximize revenue and profit, as medium-long term demand for optical film is expected to continue expanding.
  • Woody structural materials business using Shikoku regional timber: The laminated lumber plant building at the Takase Factory was completed in March 2025, installation of machinery and site improvements are almost complete, pre-production has started, and the project is on track for full operation in April 2026.
  • Overseas business promotion: Overseas revenue ratio has risen to 23.9%. Going forward, the company will strengthen focus on growing overseas markets to offset expected long-term domestic demand decline: it will use the Shanghai representative office to collect local information and strengthen customer relationships for optical film expansion, and has obtained the required chemical handling license for Okura Vietnam in November 2025, so it will start adhesive production in 2026 and launch marketing activities across Asia.
  • R&D strengthening: The company reorganized previously dispersed R&D organizations in 2025, established an information collection and marketing hub at the Tokyo branch to strengthen the R&D system, which will accelerate the new product creation-development-launch cycle to support the 2030 Next10 vision.

• Financial Strategy & Shareholder Returns

  • The core financial strategy is to support growth strategies and maximize corporate value by improving capital efficiency and expanding shareholder returns. In 2024, the company introduced DOE (dividend on equity) as a new metric with a 3% target, and previously targeted a total 3.5% DOE dividend (3% regular + 0.5% special dividend) over the medium-term plan period. Due to stronger-than-expected progress toward the 2027 7 billion yen operating profit target, the company will increase the special dividend portion by an additional 0.5% DOE for 2026 and 2027, for a total 4% DOE dividend level. This brings the 2026 full-year dividend per share to 220 yen (25 yen increase YoY), with a total dividend payout of 2.48 billion yen, which is the largest total dividend in company history. The company will respond flexibly to share price and market changes for share repurchases.

• ESG & Sustainability Progress

  • The company targets a 25%+ reduction in CO2 emissions by 2027 compared to 2021; 2025 emissions are on track to fall below 100,000 tons, keeping the project on track. The company installed solar panels at the Manno site in 2025 to use renewable energy, and started receiving environmental value credits for the off-site PPA renewable energy used at the Marugame Fourth Factory. It launched the "Rich Sanuki Forest Project that Nurtures Dreams and the Future" in December 2025, will purchase all J-creds generated from the project to offset its carbon emissions, while supporting regional forest conservation and local economic development. The company will launch its woody structural materials business using regional Shikoku timber in April 2026 to accelerate contribution to circular forest resource use.
  • The company certifies environmental contribution products under the internal "Caerula" brand; in 2025, it partnered with Marugame City to launch city-designated garbage bags containing 40%+ recycled plastic that obtained EcoMark certification, the only such case in Kagawa Prefecture. The Caerula sales ratio for the Life Support Division hit 61% in 2025, against a 75%+ 2027 target.

• For the first half of FY2026, domestic naphtha prices are expected to trade between 66 thousand yen and 68 thousand yen per kiloliter; private consumption is expected to maintain a gradual recovery as wage growth continues, despite ongoing pressure from current price increases.
• Consolidated FY2026 guidance calls for 13.1% YoY revenue growth to 98 billion yen, driven by the consolidation of Fujiko and continued strong demand for optical film. Operating profit is expected to increase 5.1% YoY to 6.5 billion yen, ordinary profit is expected to increase 4.2% YoY to 6.7 billion yen, and net income is expected to increase 12.7% YoY to 4.3 billion yen.
• By segment: All segments except Building Materials are expected to achieve revenue and profit growth. For Synthetic Resin Business: revenue is expected to increase 19% YoY to 62.7 billion yen (including 10.5 billion yen in revenue and 0.5 billion yen in operating profit from Fujiko), and operating profit is expected to increase 3.2% YoY to 5.7 billion yen; the business will focus on strengthening optical protective films (Process Material BU), shrink films and refill pouches (Life & Package BU) to expand market presence. For New Materials Business: revenue is expected to increase 3% YoY to 19.5 billion yen, and operating profit is expected to increase 20.9% YoY to 3.0 billion yen; the business will maintain full-year stable operation of G2 Line, improve product quality, boost productivity, and expand sales of COP and acrylic films. For Building Materials Business: revenue is expected to increase 4.7% YoY to 13.8 billion yen, but operating profit is expected to decrease 20.2% YoY to 0.45 billion yen due to higher depreciation from the new factory starting operation in April (EBITDA is still expected to increase); the business will expand particleboard sales to the renovation market, and focus on building out manufacturing, market penetration, and customer acquisition for the woody structural materials business.
• Total capital expenditure is planned at 7.67 billion yen, centered on the woody structural materials business.
• The company maintains its 2027 medium-term target of 7 billion yen in operating profit, and will steadily grow profits centered on the New Materials Business to ensure this target is achieved.

1. Synthetic Resin Business: Revenue of 52.67 billion yen (1.6% YoY increase), which accounts for approximately 60.8% of total consolidated revenue. Within the segment: Life & Package BU achieved 2.3% YoY revenue growth driven by refill pouches and shrink products for cup noodles; Process Material BU achieved 0.5% YoY revenue growth driven by strong sales of industrial process films; Basic Material BU saw a 0.6% YoY revenue decline due to lower sales volume; Agri Material BU achieved 4.3% YoY revenue growth after implementing price hikes. Operating profit increased 24% YoY, as price increases offset higher variable costs and lower sales volume. 2. New Materials Business: Revenue of 18.92 billion yen (29.6% YoY increase), which accounts for approximately 21.8% of total consolidated revenue. Within the segment: Functional Materials BU saw a 7.6% YoY revenue decline due to weak performance of automotive functional films; Electronic Materials BU achieved 3.3% YoY revenue growth driven by strong small/medium display demand and increased precision coating processing volume; Optical Materials BU achieved 51.1% YoY revenue growth driven by rising demand for acrylic and COP films. Operating profit increased 98.9% YoY to 2.48 billion yen, as higher sales volume and a higher mix of high-value products offset increased raw material and labor costs. 3. Building Materials Business: Revenue of 13.18 billion yen (2.5% YoY increase), which accounts for approximately 15.2% of total consolidated revenue. Within the segment: Particleboard business achieved 0.6% YoY revenue growth driven by higher selling prices; House business achieved 0.3% YoY revenue growth driven by strong renovation and low-cost housing demand; Precut business achieved 18% YoY revenue growth after the prior-year factory relocation revenue decline ended, plus strong non-residential project demand. Operating profit decreased 40.4% YoY to 0.56 billion yen due to inventory valuation losses booked in the period. 4. Other Related Businesses: Hotel business achieved 4.6% YoY revenue growth driven by increasing guest numbers; Information processing business saw a 0.9% YoY revenue decline due to lower sales of pharmacy system products.

• Uncertainty over the future trajectory of the global economy remains; exchange rate volatility and the materialization of geopolitical risks could push naphtha prices higher than current projections.
• The company will continue monitoring domestic and overseas ethylene manufacturer market trends and work to flexibly respond to price fluctuation risks.
• Private consumption continues to face headwinds from ongoing price increases, and the company will need to carefully monitor demand trends going forward.

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