# KYOWA LEATHER CLOTH CO.,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128期(2025/04/01－2026/03/31) (S100YDOG)
> Page: https://vizora.meequs.com/en/company/kyowa-leather-cloth
> Retrieved: 2026-09-30T19:14:31.750Z

## Company

Kyowa Leather Cloth, founded in 1935, is a company in Chemicals listed on TSE Standard. It has 1,393 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | KYOWA LEATHER CLOTH CO., LTD. |
| Ticker | 3553 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3553.T) |
| Listing | TSE Standard |
| Head office | 静岡県浜松市中央区東町1876番地 |
| Representative (per filing) | 取締役社長執行役員 花井幹雄 |
| Founded | Aug 1935 |
| Share capital | ¥1.81B |
| Employees (consolidated) | 1,393 |
| Average salary (parent only) | ¥6.5M |
| Fiscal year end | March |
| Website | www.kyowale.co.jp (https://www.kyowale.co.jp/) |
| Corporate number | 9080401001465 |
| EDINET | E00994 |
| Industries (Vizora) | Chemicals |

> Profile source: annual securities report (S100YDOG, filed 2026-06-18). As of filing

## Five-axis industry profile

Primary industry: Chemicals (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 54.7 | 96 |
| Profitability | 6.5 | 100 |
| Cash conversion | 17.2 | 96 |
| Efficiency | 86.5 | 100 |

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)

- Kyowa Leather Cloth brought in ¥55.8B in revenue.
- Out of every ¥100 of sales, about ¥2 is left as operating profit.
- Revenue changed -1.0% from the prior year, operating profit -57.0%.

## Company structure

- Segment revenue mix: Segment revenue breakdown is not disclosed
- Revenue → net income: ¥55816000000 → ¥743000000
- Net income → operating cash flow: ¥743000000 → ¥799000000（difference ¥56000000）
- Main uses of operating cash flow: CapEx ¥5040000000 / dividends ¥999000000 / buybacks ¥0
- Change in cash: ¥-3099000000
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 | ¥55.8B |  |
| Operating income | ¥920M | Margin 1.6% |
| Net income | ¥655M | Margin 1.2% |
| Free cash flow | -¥4.24B |  |
| Employees (consolidated) | 1,393 |  |
| EPS | ¥38.2 |  |
| Book value per share | ¥1314.37 |  |
| Equity ratio | 63.6% |  |
| Shares outstanding | 24,500,000 |  |
| Treasury shares | 669,200 |  |
| Shareholders | 11,342 |  |
| Average salary (parent only) | ¥6.5M | Filing company only |
| Cash ratio | 10.7% | Cash ÷ revenue 11.0% |
| Vs. industry median margin | -5.9 pp | Chemicals |
| ROE | 2.0% | Derived from disclosed figures |
| ROA | 1.1% | Derived from disclosed figures |

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥41182000000 | ¥55816000000 | +35.5% |
| Operating income | ¥1571000000 | ¥920000000 | -41.4% |
| Operating margin | 3.8% | 1.6% | -2.2 pp |
| Employees | 1,397 people | 1,393 people | -0.3% |
| Cash and equivalents | ¥10063000000 | ¥6145000000 | -38.9% |

### 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.

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 55,816 | 100.0% | S100YDOG |
| Cost of revenue | 46,614 | 83.5% | S100YDOG |
| Gross profit | 9,202 | 16.5% | S100YDOG |
| SG&A | 8,282 | 14.8% | S100YDOG |
| Operating income | 920 | 1.6% | S100YDOG |
| Ordinary income | 1,006 | 1.8% | S100YDOG |
| Pretax income | 1,201 | 2.2% | S100YDOG |
| Income tax | 457 | 0.8% | S100YDOG |
| Net income | 743 | 1.3% | S100YDOG |
| Net income attributable to owners | 655 | 1.2% | S100YDOG |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 83 |
| SG&A | 15 |
| Operating income | 2 |
| (Ref.) Net income | 1 |

### Margin funnel

Gross margin 16.5% → Operating margin 1.6% → Net margin 1.2%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -1.0%; Core profit growth: -57.0%
Operating leverage (core profit growth ÷ revenue growth): 55.34×
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 | 56,397 | 55,816 | -581 | -1.0% |
| Gross profit | 10,072 | 9,202 | -870 | -8.6% |
| Operating income | 2,140 | 920 | -1,220 | -57.0% |
| Net income attributable to owners | 1,100 | 655 | -445 | -40.5% |
| Operating cash flow | 1,328 | 799 | -529 | -39.8% |
| Free cash flow | -2,590 | -4,241 | -1,651 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 42,926 | 2,052 | 4.8% | 1,277 | 4,296 | 1,656 | S100LKJP |
| FY ending Mar 2021 | 41,182 | 1,571 | 3.8% | 1,442 | 2,753 | 1,098 | S100OBPX |
| FY ending Mar 2022 | 47,096 | 1,840 | 3.9% | 1,684 | 2,966 | 276 | S100R0YV |
| FY ending Mar 2023 | 45,792 | 237 | 0.5% | 347 | 2,960 | -81 | S100TOL8 |
| FY ending Mar 2024 | 52,037 | 2,567 | 4.9% | 1,958 | 7,105 | 4,327 | S100VYZ7 |
| FY ending Mar 2025 | 56,397 | 2,140 | 3.8% | 1,100 | 1,328 | -2,590 | S100YDOG |
| FY ending Mar 2026 | 55,816 | 920 | 1.6% | 655 | 799 | -4,241 | S100YDOG |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥40.1M |
| Operating income per employee (consolidated) | ¥660.4K |
| Net income per employee (consolidated) | ¥470.2K |

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) | 1,416 | 1,412 | 1,395 | 1,391 | 1,393 |
| Average salary (parent company) | ¥5.7M | ¥5.7M | ¥6M | ¥6.3M | ¥6.5M |
| Average age (parent company) | 38.1 years | 38.4 years | 38.9 years | 39.3 years | 39.7 years |
| Average tenure (parent company) | 14.2 years | 14.3 years | 14.9 years | 15.3 years | 15.7 years |

Year over year: Employees (consolidated) +0.1% · Revenue (consolidated) -1.0%

## 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 | 799 | 1.4% | S100YDOG |
| Capital expenditure | 5,040 | 9.0% | S100YDOG |
| Free cash flow | -4,241 | -7.6% | 算出 |
| Investing cash flow | -3,233 | -5.8% | S100YDOG |
| Financing cash flow | -661 | -1.2% | S100YDOG |
| Dividends paid | 999 | 1.8% | S100YDOG |
| Share buyback | 0 | 0.0% | S100YDOG |
| Change in cash | -3,099 | -5.6% | S100YDOG |
| Cash and equivalents | 6,145 | 11.0% | S100YDOG |

## 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 | 8,882 | 9,209 | 13,773 | 9,244 | 6,145 | S100TOL8, S100VYZ7, S100YDOG |
| Total assets | 54,275 | 52,951 | 60,653 | 59,471 | 57,463 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Net assets | 34,680 | 34,530 | 37,574 | 37,400 | 37,644 | S100TOL8, S100VYZ7, S100YDOG |
| Share capital | 1,810 | 1,810 | 1,810 | 1,810 | 1,810 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Property, plant and equipment | 14,049 | 13,842 | 14,692 | 15,625 | 17,860 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Intangible assets excluding goodwill | 478 | 679 | 736 | 1,043 | 1,118 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Investment securities | 6,754 | 5,769 | 6,571 | 5,595 | 4,492 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Current assets | 30,083 | 29,562 | 35,383 | 34,111 | 30,672 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Current liabilities | 17,011 | 15,925 | 20,702 | 19,651 | 17,112 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Trade payables | 7,549 | 7,062 | 9,226 | 11,159 | 8,876 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Short-term borrowings | 433 | 342 | 358 | 390 | 983 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Total liabilities | 19,595 | 18,421 | 23,078 | 22,071 | 19,818 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Non-controlling interests | 890 | 1,038 | 1,241 | 1,170 | 1,071 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Equity attributable to owners of parent | 32,477 | 32,246 | 33,626 | 33,702 | 33,357 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Retained earnings | 29,285 | 29,054 | 30,435 | 30,721 | 30,375 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |
| Treasury stock | -273 | -273 | -273 | -483 | -483 | S100R0YV, S100TOL8, S100VYZ7, S100YDOG |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 11% | S100YDOG |
| Property, plant and equipment | 31% | S100YDOG |
| Intangibles and goodwill | 2% | S100YDOG |
| Investment securities | 8% | S100YDOG |
| Other assets | 48% | S100YDOG |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 15% | S100YDOG |
| Other liabilities | 19% | S100YDOG |
| Equity | 66% | S100YDOG |
| Other liabilities | 0% | S100YDOG |

### 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 | 54,275 | 52,951 | 60,653 | 59,471 | 57,463 |
| Equity | 34,680 | 34,530 | 37,574 | 37,400 | 37,644 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 8,882 | 9,209 | 13,773 | 9,244 | 6,145 |

## 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) | 32.0% | S100YDOG |
| Fixed assets ÷ total assets | 31.1% | S100YDOG |
| Goodwill ÷ parent equity | — | —, S100YDOG |

### 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) | 10.7% |
| Cash ÷ revenue | 11.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 86.8% |
| Cash vs. profit gap | 144 JPY mn (of net income 22.0%) |
| Shareholder returns / net income | 152.5% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 152.5% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 9.0% |
| Investing CF relative to operating CF | 404.6% |

## 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 | 3.6% | 0.87× | 3.1% | 1.67× | 5.2% | S100R0YV |
| 2023 | 0.8% | 0.85× | 0.6% | 1.66× | 1.1% | S100TOL8 |
| 2024 | 3.8% | 0.92× | 3.4% | 1.72× | 5.9% | S100VYZ7 |
| 2025 | 2.0% | 0.94× | 1.8% | 1.78× | 3.3% | S100YDOG |
| 2026 | 1.2% | 0.95× | 1.1% | 1.74× | 2.0% | S100YDOG |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| トヨタ自動車株式会社 | Major shareholder | 35.1% | 2026-03-31 |
| 豊田通商株式会社 | Major shareholder | 6.5% | 2026-03-31 |
| 林テレンプホールディングス株式会社 | Major shareholder | 4.4% | 2026-03-31 |
| KISCO株式会社 | Major shareholder | 3.2% | 2026-03-31 |
| UBS FINANCIAL SERVICES IN C－SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS (常任代理人 シティバンク、エヌ・エイ東京支店) | Major shareholder | 3.1% | 2026-03-31 |
| INTERACTIVE BROKERS LLC (常任代理人 インタラクティブ・ブローカーズ証券株式会社) | Major shareholder | 2.3% | 2026-03-31 |
| 共和レザー従業員持株会 | Major shareholder | 2.0% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 1.8% | 2026-03-31 |
| 三木産業株式会社 | Major shareholder | 1.3% | 2026-03-31 |
| 長瀬産業株式会社 | Major shareholder | 1.3% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第128期(2025/04/01－2026/03/31) | S100YDOG | 2026-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YDOG,, |
| 有価証券報告書－第127期(2024/04/01－2025/03/31) | S100VYZ7 | 2025-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VYZ7,, |
| 有価証券報告書－第126期(2023/04/01－2024/03/31) | S100TOL8 | 2024-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TOL8,, |
| 有価証券報告書－第125期(2022/04/01－2023/03/31) | S100R0YV | 2023-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R0YV,, |
| 有価証券報告書－第124期(令和3年4月1日－令和4年3月31日) | S100OBPX | 2022-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OBPX,, |
| 有価証券報告書－第123期(令和2年4月1日－令和3年3月31日) | S100LKJP | 2021-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LKJP,, |

## 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).