# ARAKAWA CHEMICAL INDUSTRIES, LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第96期(2025/04/01－2026/03/31) (S100YF3H)
> Page: https://vizora.meequs.com/en/company/arakawa-chemical-industries
> Retrieved: 2026-09-30T17:59:35.191Z

## Company

Arakawa Chemical Industries, founded in 1971, is a company in Chemicals listed on TSE Prime. It has 1,684 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | ARAKAWA CHEMICAL INDUSTRIES, LTD. |
| Ticker | 4968 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4968.T) |
| Listing | TSE Prime |
| Head office | 大阪市中央区平野町1丁目3番7号 |
| Representative (per filing) | 代表取締役社長執行役員 高木信之 |
| Founded | Dec 1971 |
| Share capital | ¥3.34B |
| Employees (consolidated) | 1,684 |
| Average salary (parent only) | ¥7.2M |
| Fiscal year end | March |
| Website | arakawachem.co.jp (https://arakawachem.co.jp/) |
| Corporate number | 4120001074060 |
| EDINET | E01048 |
| Industries (Vizora) | Chemicals, Semiconductor Materials |

> Profile source: annual securities report (S100YF3H, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Chemicals (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 25.5 | 96 |
| Profitability | 11.5 | 100 |
| Cash conversion | 58.9 | 96 |
| Efficiency | 36.5 | 100 |
| Financial strength | 34.2 | 19 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 35% of Arakawa Chemical Industries's sales come from Adhesive and biomass materials, with Paper chemicals and environmental business and Functional coating chemicals making up much of the rest.
- Out of every ¥100 of sales, about ¥3 is left as operating profit.
- Revenue changed +2.4% from the prior year, operating profit +136.5%.

## Company structure

- Segment revenue mix: Adhesive and biomass materials 34.6%、Paper chemicals and environmental business 25.2%、Functional coating chemicals 22.2%、Fine chemicals and electronics 18.0%、Other 0.1%
- Revenue → net income: ¥82135000000 → ¥666000000
- Net income → operating cash flow: ¥666000000 → ¥4176000000（difference ¥3510000000）
- Main uses of operating cash flow: CapEx ¥3794000000 / dividends ¥991000000 / buybacks ¥0
- Change in cash: ¥1978000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥82.1B |  |
| Operating income | ¥2.5B | Margin 3.0% |
| Net income | ¥2.2B | Margin 2.7% |
| Free cash flow | ¥382M |  |
| Largest business | Adhesive and biomass materials | of segment revenue 34.6% |
| Employees (consolidated) | 1,684 |  |
| EPS | ¥69.12 |  |
| Book value per share | ¥2216.46 |  |
| Equity ratio | 49.5% |  |
| Shares outstanding | 20,652,400 |  |
| Treasury shares | 813,600 |  |
| Shareholders | 5,570 |  |
| Average salary (parent only) | ¥7.2M | Filing company only |
| Cash ratio | 6.7% | Net cash -¥27.2B · Cash ÷ revenue 10.2% |
| Vs. industry median margin | -4.5 pp | Chemicals |
| ROE | 4.7% | Derived from disclosed figures |
| ROA | 1.8% | Derived from disclosed figures |

## Notable figures

- FY2026, segment profit share differs by 27 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥70572000000 | ¥82135000000 | +16.4% |
| Operating income | ¥3257000000 | ¥2500000000 | -23.2% |
| Operating margin | 4.6% | 3.0% | -1.6 pp |
| Employees | 1,593 people | 1,684 people | +5.7% |
| Cash and equivalents | ¥7342000000 | ¥8413000000 | +14.6% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 機能性コーティング → 機能性コーティング | 10.8% |
| 製紙薬品 → 事業再編・廃止 | 12.1% |
| 製紙・環境 → 製紙・環境 | 12.1% |
| コーティング → 事業再編・廃止 | 11.0% |
| 粘接着・バイオマス → 粘接着・バイオマス | 18.3% |
| 粘接着 → 事業再編・廃止 | 18.1% |
| 機能性材料 → 事業再編・廃止 | 8.7% |
| ファイン・エレクトロニクス → ファイン・エレクトロニクス | 8.7% |
| その他 → その他 | 0.1% |
| その他 → 事業再編・廃止 | 0.1% |
| 新設・再編 → 機能性コーティング | 11.4% |
| 新設・再編 → 製紙・環境 | 13.0% |
| 新設・再編 → 粘接着・バイオマス | 16.3% |
| 新設・再編 → ファイン・エレクトロニクス | 9.3% |

Segment revenue source references: 14 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Adhesive and biomass materials | 5 years | +2.0% | ¥28435000000 | -4.9% | 2 |
| Paper chemicals and environmental business | 5 years | +3.9% | ¥20666000000 | 6.7% | 2 |
| Functional coating chemicals | 5 years | +3.7% | ¥18206000000 | 12.1% | 2 |
| Fine chemicals and electronics | 5 years | +3.8% | ¥14748000000 | 6.1% | 2 |
| Other | 5 years | -21.4% | ¥79000000 | 50.6% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 82,135 | 100.0% | S100YF3H |
| Cost of revenue | 64,283 | 78.3% | S100YF3H |
| Gross profit | 17,852 | 21.7% | S100YF3H |
| SG&A | 15,352 | 18.7% | S100YF3H |
| Operating income | 2,500 | 3.0% | S100YF3H |
| Ordinary income | 2,390 | 2.9% | S100YF3H |
| Pretax income | 2,404 | 2.9% | S100YF3H |
| Income tax | 1,738 | 2.1% | S100YF3H |
| Net income | 666 | 0.8% | S100YF3H |
| Net income attributable to owners | 2,201 | 2.7% | S100YF3H |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 78 |
| SG&A | 19 |
| Operating income | 3 |
| (Ref.) Net income | 3 |

### Margin funnel

Gross margin 21.7% → Operating margin 3.0% → Net margin 2.7%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +2.4%; Core profit growth: +136.5%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 57.68×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 80,236 | 82,135 | 1,899 | +2.4% |
| Gross profit | 16,493 | 17,852 | 1,359 | +8.2% |
| Operating income | 1,057 | 2,500 | 1,443 | +136.5% |
| Net income attributable to owners | 2,644 | 2,201 | -443 | -16.8% |
| Operating cash flow | 5,119 | 4,176 | -943 | -18.4% |
| Free cash flow | 602 | 382 | -220 | -36.5% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 72,967 | 2,574 | 3.5% | 1,732 | 7,534 | -1,617 | S100LI3C |
| FY ending Mar 2021 | 70,572 | 3,257 | 4.6% | 2,169 | 3,685 | -2,344 | S100O999 |
| FY ending Mar 2022 | 80,515 | 3,304 | 4.1% | 1,502 | 3,989 | -2,434 | S100QZIC |
| FY ending Mar 2023 | 79,431 | -2,907 | -3.7% | -4,941 | -575 | -6,690 | S100TO6E |
| FY ending Mar 2024 | 72,222 | -2,617 | -3.6% | -1,042 | 1,157 | -5,700 | S100W1XX |
| FY ending Mar 2025 | 80,236 | 1,057 | 1.3% | 2,644 | 5,119 | 602 | S100YF3H |
| FY ending Mar 2026 | 82,135 | 2,500 | 3.0% | 2,201 | 4,176 | 382 | S100YF3H |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥48.8M |
| Operating income per employee (consolidated) | ¥1.5M |
| Net income per employee (consolidated) | ¥1.3M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 1,615 | 1,677 | 1,668 | 1,667 | 1,684 |
| Average salary (parent company) | ¥7.2M | ¥6.9M | ¥6.8M | ¥7M | ¥7.2M |
| Average age (parent company) | 42.3 years | 42.7 years | 43.2 years | 44.0 years | 44.4 years |
| Average tenure (parent company) | 17.3 years | 17.5 years | 18.0 years | 18.7 years | 18.9 years |

Year over year: Employees (consolidated) +1.0% · Revenue (consolidated) +2.4%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Functional coating chemicals | 18,206 | 22.2% | 2,203 | 12.1% |
| Paper chemicals and environmental business | 20,666 | 25.2% | 1,381 | 6.7% |
| Adhesive and biomass materials | 28,435 | 34.6% | -1,400 | -4.9% |
| Fine chemicals and electronics | 14,748 | 18.0% | 895 | 6.1% |
| Other | 79 | 0.1% | 40 | 50.6% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Functional coating chemicals | 22.2% | 48.7% | 26.6 | 12.1% |
| Paper chemicals and environmental business | 25.2% | 30.6% | 5.4 | 6.7% |
| Adhesive and biomass materials | 34.6% | — | — | -4.9% |
| Fine chemicals and electronics | 18.0% | 19.8% | 1.8 | 6.1% |
| Other | 0.1% | 0.9% | 0.8 | 50.6% |

Loss-making segment (excluded from profit shares): Adhesive and biomass materials -1,400 JPY mn

Segment → industry: Fine chemicals and electronics → Chemicals / Adhesive and biomass materials → Chemicals / Paper chemicals and environmental business → Chemicals / Functional coating chemicals → Chemicals / Fine chemicals and electronics → Semiconductor Materials

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 4,176 | 5.1% | S100YF3H |
| Capital expenditure | 3,794 | 4.6% | S100YF3H |
| Free cash flow | 382 | 0.5% | 算出 |
| Investing cash flow | -2,103 | -2.6% | S100YF3H |
| Financing cash flow | -286 | -0.3% | S100YF3H |
| Dividends paid | 991 | 1.2% | S100YF3H |
| Share buyback | 0 | 0.0% | S100YF3H |
| Change in cash | 1,978 | 2.4% | S100YF3H |
| Cash and equivalents | 8,413 | 10.2% | S100YF3H |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 9,250 | 9,286 | 9,164 | 6,434 | 8,413 | S100TO6E, S100W1XX, S100YF3H |
| Total assets | 117,739 | 119,035 | 125,418 | 122,297 | 126,059 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Net assets | 62,578 | 56,509 | 56,918 | 57,237 | 59,240 | S100TO6E, S100W1XX, S100YF3H |
| Share capital | 3,343 | 3,343 | 3,343 | 3,343 | 3,343 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Trade receivables | 25,713 | 23,461 | 25,683 | 25,884 | 25,847 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Property, plant and equipment | 40,277 | 40,442 | 39,952 | 39,039 | 37,168 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Intangible assets excluding goodwill | 1,851 | 1,678 | 1,529 | 1,374 | 1,180 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Investment securities | 8,342 | 7,837 | 11,200 | 10,105 | 11,185 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Current assets | 62,477 | 62,799 | 64,159 | 62,264 | 64,897 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Current liabilities | 36,474 | 42,113 | 43,406 | 37,608 | 46,110 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Trade payables | 10,965 | 9,973 | 9,478 | 9,200 | 8,646 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Short-term borrowings | 12,965 | 19,645 | 18,512 | 18,319 | 22,716 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Long-term borrowings | 3,715 | 5,407 | 13,875 | 11,061 | 7,907 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Bonds | 10,000 | 10,000 | 5,000 | 10,000 | 5,000 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Interest-bearing debt | 26,680 | 35,052 | 37,387 | 39,380 | 35,623 | 算出 |
| Total liabilities | 55,160 | 62,526 | 68,500 | 65,060 | 66,819 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Non-controlling interests | 3,394 | 2,426 | 783 | -1,237 | -3,117 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Equity attributable to owners of parent | 52,512 | 46,618 | 44,623 | 46,315 | 47,524 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Retained earnings | 46,816 | 40,922 | 38,927 | 40,619 | 41,829 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |
| Treasury stock | -1,211 | -1,211 | -1,211 | -1,211 | -1,211 | S100QZIC, S100TO6E, S100W1XX, S100YF3H |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 7% | S100YF3H |
| Receivables | 20% | S100YF3H |
| Property, plant and equipment | 29% | S100YF3H |
| Intangibles and goodwill | 1% | S100YF3H |
| Investment securities | 9% | S100YF3H |
| Other assets | 34% | S100YF3H |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 7% | S100YF3H |
| Interest-bearing debt | 28% | 算出 |
| Other liabilities | 18% | S100YF3H |
| Equity | 47% | S100YF3H |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 117,739 | 119,035 | 125,418 | 122,297 | 126,059 |
| Equity | 62,578 | 56,509 | 56,918 | 57,237 | 59,240 |
| Interest-bearing debt | 26,680 | 35,052 | 37,387 | 39,380 | 35,623 |
| Cash | 9,250 | 9,286 | 9,164 | 6,434 | 8,413 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 45.3% | S100YF3H |
| Fixed assets ÷ total assets | 29.5% | S100YF3H |
| Goodwill ÷ parent equity | — | —, S100YF3H |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 6.7% |
| Cash ÷ revenue | 10.2% |
| Net cash (cash − interest-bearing debt) | -¥27.2B |
| Net debt ÷ operating cash flow | 6.52× |
| Cash conversion (operating CF ÷ operating income) | 167.0% |
| Cash vs. profit gap | 1,975 JPY mn (of net income 89.7%) |
| Shareholder returns / net income | 45.0% |
| Shareholder returns / FCF | 259.4% |
| Shareholder payments — dividends / net income | 45.0% |
| Shareholder payments — dividends / FCF | 259.4% |
| CapEx intensity (capex ÷ revenue) | 4.6% |
| Investing CF relative to operating CF | 50.4% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 1.9% | 0.68× | 1.3% | 2.24× | 2.9% | S100QZIC |
| 2023 | — | —× | -4.2% | —× | — | S100TO6E |
| 2024 | — | —× | -0.9% | —× | — | S100W1XX |
| 2025 | 3.3% | 0.65× | 2.1% | 2.72× | 5.8% | S100YF3H |
| 2026 | 2.7% | 0.66× | 1.8% | 2.65× | 4.7% | S100YF3H |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社(信託口) | Major shareholder | 10.1% | 2026-03-31 |
| 荒川化学従業員持株会 | Major shareholder | 7.1% | 2026-03-31 |
| 株式会社三菱ＵＦＪ銀行 | Major shareholder | 4.7% | 2026-03-31 |
| 株式会社日本カストディ銀行(信託口) | Major shareholder | 2.5% | 2026-03-31 |
| 荒 川 壽 正 | Major shareholder | 2.5% | 2026-03-31 |
| 三菱ケミカル株式会社 | Major shareholder | 2.1% | 2026-03-31 |
| 株式会社三井住友銀行 | Major shareholder | 2.0% | 2026-03-31 |
| ａｒｔｉｅｎｃｅ株式会社 | Major shareholder | 1.5% | 2026-03-31 |
| ＢＮＹＭ ＡＳ ＡＧＴ／ＣＬＴＳ ＮＯＮ ＴＲＥＡＴＹ ＪＡＳＤＥＣ（常任代理人 株式会社三菱ＵＦＪ銀行） | Major shareholder | 1.5% | 2026-03-31 |
| 王子ホールディングス株式会社 | Major shareholder | 1.5% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第96期(2025/04/01－2026/03/31) | S100YF3H | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YF3H,, |
| 有価証券報告書－第95期(2024/04/01－2025/03/31) | S100W1XX | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W1XX,, |
| 有価証券報告書－第94期(2023/04/01－2024/03/31) | S100TO6E | 2024-06-20 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TO6E,, |
| 有価証券報告書－第93期(2022/04/01－2023/03/31) | S100QZIC | 2023-06-20 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QZIC,, |
| 有価証券報告書－第92期(令和3年4月1日－令和4年3月31日) | S100O999 | 2022-06-17 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100O999,, |
| 有価証券報告書－第91期(令和2年4月1日－令和3年3月31日) | S100LI3C | 2021-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LI3C,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).