# Nippon Denko Co., Ltd.: business model and financials

> Latest period: FY ending Dec 2025, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第126期(2025/01/01－2025/12/31) (S100XUK7)
> Page: https://vizora.meequs.com/en/company/nippon-denko
> Retrieved: 2026-09-30T19:07:12.655Z

## Company

Nippon Denko, founded in 1963, is a company in Robots & Factory Automation listed on TSE Prime. It has 964 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Nippon Denko Co., Ltd. |
| Ticker | 5563 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/5563.T) |
| Listing | TSE Prime |
| Head office | 東京都中央区八重洲一丁目4番16号 |
| Representative (per filing) | 代表取締役社長 青木泰 |
| Founded | Dec 1963 |
| Share capital | ¥11.1B |
| Employees (consolidated) | 964 |
| Average salary (parent only) | ¥7.6M |
| Fiscal year end | December |
| Website | www.nippondenko.co.jp (https://www.nippondenko.co.jp/) |
| Corporate number | 9010001035003 |
| EDINET | E01256 |
| Industries (Vizora) | Robots & Factory Automation, Batteries, Steel, Chemicals, Electric Power & Gas, Waste Management & Recycling |

> Profile source: annual securities report (S100XUK7, filed 2026-03-26). As of filing

## Five-axis industry profile

Primary industry: Steel (2025-12-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 77.3 | 33 |
| Profitability | 75.7 | 35 |
| Cash conversion | 75.8 | 31 |
| Efficiency | 67.1 | 35 |

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 63% of Nippon Denko's sales come from Ferroalloys Division, with Functional Division and Incineration Ash Recycling Division making up much of the rest.
- Out of every ¥100 of sales, about ¥7 is left as operating profit.
- Revenue changed -1.2% from the prior year, operating profit -24.7%.

## Company structure

- Segment revenue mix: Ferroalloys Division 62.7%、Functional Division 19.2%、Incineration Ash Recycling Division 11.5%、Other 2.7%、Aqua Solutions Business Division 2.1%
- Revenue → net income: ¥77277000000 → ¥1418000000
- Net income → operating cash flow: ¥1418000000 → ¥14569000000（difference ¥13151000000）
- Main uses of operating cash flow: CapEx ¥4828000000 / dividends ¥1647000000 / buybacks ¥4031000000
- Change in cash: ¥76000000
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 | ¥77.3B |  |
| Operating income | ¥5.16B | Margin 6.7% |
| Net income | ¥1.42B | Margin 1.8% |
| Free cash flow | ¥9.74B |  |
| Largest business | Ferroalloys Division | of segment revenue 62.7% |
| Employees (consolidated) | 964 |  |
| EPS | ¥22.44 |  |
| Book value per share | ¥568.72 |  |
| Equity ratio | 76.0% |  |
| Shares outstanding | 137,386,000 |  |
| Treasury shares | 12,597,900 |  |
| Shareholders | 28,231 |  |
| Average salary (parent only) | ¥7.6M | Filing company only |
| Cash ratio | 6.4% | Cash ÷ revenue 7.8% |
| Vs. industry median margin | +3.2 pp | Steel |
| ROE | 2.1% | Derived from disclosed figures |
| ROA | 1.4% | Derived from disclosed figures |

## Notable figures

- FY2025, operating cash flow is 10.3× net income
- FY2025, buybacks were 2.4× dividends

## What changed in 5 years

| Metric | FY ending Dec 2020 | FY ending Dec 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥54004000000 | ¥77277000000 | +43.1% |
| Operating income | ¥5434000000 | ¥5161000000 | -5.0% |
| Operating margin | 10.1% | 6.7% | -3.4 pp |
| Employees | 976 people | 964 people | -1.2% |
| Cash and equivalents | ¥9587000000 | ¥6008000000 | -37.3% |

### Change in segment revenue mix

Span: FY ending Dec 2020 → FY ending Dec 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 合金鉄事業 → 合金鉄事業 | 57.8% |
| 機能材料事業 → 機能材料事業 | 17.9% |
| 環境事業 → 事業再編・廃止 | 11.1% |
| 電力事業 → 電力事業 | 1.8% |
| 電力事業 → 事業再編・廃止 | 0.7% |
| その他 → その他 | 2.7% |
| その他 → 事業再編・廃止 | 7.9% |
| 新設・再編 → 合金鉄事業 | 4.9% |
| 新設・再編 → 機能材料事業 | 1.2% |
| 新設・再編 → 焼却灰資源化事業 | 11.5% |
| 新設・再編 → アクアソリューション事業 | 2.1% |

Segment revenue source references: 11 (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 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Ferroalloys Division | 5 years | +9.2% | ¥48440000000 | -4.4% | 2 |
| Functional Division | 5 years | +8.9% | ¥14819000000 | 13.0% | 2 |
| Incineration Ash Recycling Division | 2 years | +13.6% | ¥8886000000 | 23.3% | 2 |
| Other | 5 years | -18.4% | ¥2069000000 | 15.3% | 2 |
| Aqua Solutions Business Division | 2 years | -0.1% | ¥1656000000 | 6.3% | 2 |
| Electric power Division | 5 years | +0.7% | ¥1405000000 | 29.1% | 2 |

## Income statement（FY ending Dec 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 77,277 | 100.0% | S100XUK7 |
| Cost of revenue | 64,789 | 83.8% | S100XUK7 |
| Gross profit | 12,487 | 16.2% | S100XUK7 |
| SG&A | 7,326 | 9.5% | S100XUK7 |
| Operating income | 5,161 | 6.7% | S100XUK7 |
| Ordinary income | 2,703 | 3.5% | S100XUK7 |
| Pretax income | 2,515 | 3.3% | S100XUK7 |
| Income tax | 1,097 | 1.4% | S100XUK7 |
| Net income | 1,418 | 1.8% | S100XUK7 |
| Net income attributable to owners | 1,418 | 1.8% | S100XUK7 |

## Per ¥100 of revenue（FY ending Dec 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 84 |
| SG&A | 9 |
| Operating income | 7 |
| (Ref.) Net income | 2 |

### Margin funnel

Gross margin 16.2% → Operating margin 6.7% → Net margin 1.8%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -1.2%; Core profit growth: -24.7%
Operating leverage (core profit growth ÷ revenue growth): 20.19×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Dec 2024 → FY ending Dec 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 78,235 | 77,277 | -958 | -1.2% |
| Gross profit | 13,608 | 12,487 | -1,121 | -8.2% |
| Operating income | 6,856 | 5,161 | -1,695 | -24.7% |
| Net income attributable to owners | 3,144 | 1,418 | -1,726 | -54.9% |
| Operating cash flow | 5,958 | 14,569 | 8,611 | +144.5% |
| Free cash flow | 1,659 | 9,741 | 8,082 | +487.2% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Dec 2019 | 70,477 | -5,572 | -7.9% | -14,240 | 2,890 | -2,194 | S100L2YY |
| FY ending Dec 2020 | 54,004 | 5,434 | 10.1% | 2,615 | 10,351 | 5,720 | S100NSJ2 |
| FY ending Dec 2021 | 65,978 | 8,436 | 12.8% | 7,768 | 5,246 | 2,528 | S100QIHV |
| FY ending Dec 2022 | 79,341 | 8,815 | 11.1% | 7,949 | 6,280 | 1,737 | S100T63P |
| FY ending Dec 2023 | 78,390 | 4,696 | 6.0% | 4,330 | 8,776 | 3,985 | S100VHVE |
| FY ending Dec 2024 | 78,235 | 6,856 | 8.8% | 3,144 | 5,958 | 1,659 | S100XUK7 |
| FY ending Dec 2025 | 77,277 | 5,161 | 6.7% | 1,418 | 14,569 | 9,741 | S100XUK7 |

## People and productivity（FY ending Dec 2025, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥80.2M |
| Operating income per employee (consolidated) | ¥5.4M |
| Net income per employee (consolidated) | ¥1.5M |

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

| History | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 943 | 950 | 937 | 950 | 964 |
| Average salary (parent company) | ¥6.8M | ¥7.1M | ¥7.4M | ¥7.1M | ¥7.6M |
| Average age (parent company) | 40.2 years | 41.5 years | 41.5 years | 41.7 years | 42.2 years |
| Average tenure (parent company) | 15.1 years | 15.9 years | 16.3 years | 16.5 years | 16.6 years |

Year over year: Employees (consolidated) +1.5% · Revenue (consolidated) -1.2%

## Segments（FY ending Dec 2025, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Ferroalloys Division | 48,440 | 62.7% | -2,127 | -4.4% |
| Functional Division | 14,819 | 19.2% | 1,923 | 13.0% |
| Incineration Ash Recycling Division | 8,886 | 11.5% | 2,074 | 23.3% |
| Aqua Solutions Business Division | 1,656 | 2.1% | 105 | 6.3% |
| Electric power Division | 1,405 | 1.8% | 409 | 29.1% |
| Other | 2,069 | 2.7% | 316 | 15.3% |

### 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 |
| --- | ---: |
| Ferroalloys Division | 62.7% |
| Functional Division | 19.2% |
| Incineration Ash Recycling Division | 11.5% |
| Aqua Solutions Business Division | 2.1% |
| Electric power Division | 1.8% |
| Other | 2.7% |

Segment → industry: Other → Robots & Factory Automation / Functional Division → Batteries / Ferroalloys Division → Steel / Functional Division → Chemicals / Electric power Division → Electric Power & Gas / Aqua Solutions Business Division → Waste Management & Recycling / Incineration Ash Recycling Division → Waste Management & Recycling

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Dec 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 14,569 | 18.9% | S100XUK7 |
| Capital expenditure | 4,828 | 6.2% | S100XUK7 |
| Free cash flow | 9,741 | 12.6% | 算出 |
| Investing cash flow | -5,583 | -7.2% | S100XUK7 |
| Financing cash flow | -8,914 | -11.5% | S100XUK7 |
| Dividends paid | 1,647 | 2.1% | S100XUK7 |
| Share buyback | 4,031 | 5.2% | S100XUK7 |
| Change in cash | 76 | 0.1% | S100XUK7 |
| Cash and equivalents | 6,008 | 7.8% | S100XUK7 |

## 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 Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 9,763 | 8,895 | 7,851 | 5,931 | 6,008 | S100T63P, S100VHVE, S100XUK7 |
| Total assets | 95,888 | 104,943 | 100,750 | 102,200 | 93,414 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Net assets | 64,325 | 69,225 | 71,436 | 73,677 | 71,025 | S100T63P, S100VHVE, S100XUK7 |
| Share capital | 11,072 | 11,084 | 11,096 | 11,108 | 11,120 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Trade receivables | 19,440 | 11,720 | 10,973 | 11,661 | 10,864 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Property, plant and equipment | 23,411 | 26,410 | 26,919 | 27,199 | 27,257 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Intangible assets excluding goodwill | 139 | 164 | 362 | 543 | 812 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Investment securities | 10,402 | 14,327 | 13,260 | 12,255 | 19,154 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Current assets | 53,454 | 56,940 | 51,587 | 53,971 | 44,419 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Current liabilities | 17,281 | 24,929 | 16,090 | 18,817 | 13,981 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Trade payables | 6,955 | 7,621 | 4,230 | 5,787 | 3,436 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Short-term borrowings | 2,000 | 8,000 | 2,000 | 4,000 | 3,500 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Long-term borrowings | 8,751 | 6,192 | 8,866 | 5,498 | 4,378 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Total liabilities | 31,563 | 35,718 | 29,313 | 28,522 | 22,388 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Non-controlling interests | 68 | 37 | — | — | — | S100QIHV, S100T63P |
| Equity attributable to owners of parent | 63,732 | 65,767 | 67,231 | 69,027 | 64,967 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Retained earnings | 31,233 | 36,244 | 38,685 | 40,457 | 40,228 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |
| Treasury stock | 0 | -3,001 | 0 | -1 | -3,865 | S100QIHV, S100T63P, S100VHVE, S100XUK7 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 6% | S100XUK7 |
| Receivables | 12% | S100XUK7 |
| Property, plant and equipment | 29% | S100XUK7 |
| Intangibles and goodwill | 1% | S100XUK7 |
| Investment securities | 21% | S100XUK7 |
| Other assets | 31% | S100XUK7 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 4% | S100XUK7 |
| Other liabilities | 20% | S100XUK7 |
| Equity | 76% | S100XUK7 |
| Other liabilities | 0% | S100XUK7 |

### Balance sheet history

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 95,888 | 104,943 | 100,750 | 102,200 | 93,414 |
| Equity | 64,325 | 69,225 | 71,436 | 73,677 | 71,025 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 9,763 | 8,895 | 7,851 | 5,931 | 6,008 |

## 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) | 35.3% | S100XUK7 |
| Fixed assets ÷ total assets | 29.2% | S100XUK7 |
| Goodwill ÷ parent equity | — | —, S100XUK7 |

### 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) | 6.4% |
| Cash ÷ revenue | 7.8% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 282.3% |
| Cash vs. profit gap | 13,151 JPY mn (of net income 927.4%) |
| Shareholder returns / net income | 400.4% |
| Shareholder returns / FCF | 58.3% |
| Shareholder payments — dividends / net income | 116.1% |
| Shareholder payments — dividends / FCF | 16.9% |
| CapEx intensity (capex ÷ revenue) | 6.2% |
| Investing CF relative to operating CF | 38.3% |

## 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 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | 11.8% | 0.69× | 8.1% | 1.50× | 12.2% | S100QIHV |
| 2022 | 10.0% | 0.79× | 7.9% | 1.55× | 12.3% | S100T63P |
| 2023 | 5.5% | 0.76× | 4.2% | 1.55× | 6.5% | S100VHVE |
| 2024 | 4.0% | 0.77× | 3.1% | 1.49× | 4.6% | S100XUK7 |
| 2025 | 1.8% | 0.79× | 1.4% | 1.46× | 2.1% | S100XUK7 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本製鉄株式会社 | Major shareholder | 24.3% | 2025-12-31 |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 11.4% | 2025-12-31 |
| 株式会社日本カストディ銀行 （信託口） | Major shareholder | 2.8% | 2025-12-31 |
| 新日本電工取引先持株会 | Major shareholder | 2.0% | 2025-12-31 |
| 日鉄鉱業株式会社 | Major shareholder | 1.7% | 2025-12-31 |
| 新日本電工従業員持株会 | Major shareholder | 1.5% | 2025-12-31 |
| STATE STREET BANK AND TRUST COMPANY 505223 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.2% | 2025-12-31 |
| JP MORGAN CHASE BANK 385781 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.1% | 2025-12-31 |
| 紀岡 直樹 | Major shareholder | 1.0% | 2025-12-31 |
| 日鉄物産株式会社 | Major shareholder | 0.9% | 2025-12-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第126期(2025/01/01－2025/12/31) | S100XUK7 | 2026-03-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100XUK7,, |
| 有価証券報告書－第125期(2024/01/01－2024/12/31) | S100VHVE | 2025-03-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VHVE,, |
| 有価証券報告書－第124期(2023/01/01－2023/12/31) | S100T63P | 2024-03-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100T63P,, |
| 有価証券報告書－第123期(2022/01/01－2022/12/31) | S100QIHV | 2023-03-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QIHV,, |
| 有価証券報告書－第122期(令和3年1月1日－令和3年12月31日) | S100NSJ2 | 2022-03-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100NSJ2,, |
| 有価証券報告書－第121期(令和2年1月1日－令和2年12月31日) | S100L2YY | 2021-03-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100L2YY,, |

## 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).