# NIPPON SHOKUBAI CO., LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第114期(2025/04/01－2026/03/31) (S100YBP7)
> Page: https://vizora.meequs.com/en/company/nippon-shokubai
> Retrieved: 2026-09-30T21:18:33.572Z

## Company

Nippon Shokubai, founded in 1941, is a company in Chemicals listed on TSE Prime. It has 4,880 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NIPPON SHOKUBAI CO., LTD. |
| Ticker | 4114 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4114.T) |
| Listing | TSE Prime |
| Head office | 大阪市中央区高麗橋四丁目1番1号 |
| Representative (per filing) | 代表取締役社長 野田 和宏 |
| Founded | Aug 1941 |
| Share capital | ¥25B |
| Employees (consolidated) | 4,880 |
| Average salary (parent only) | ¥8.6M |
| Fiscal year end | March |
| Website | www.shokubai.co.jp (https://www.shokubai.co.jp/) |
| Corporate number | 9120001077620 |
| EDINET | E00811 |
| Industries (Vizora) | Chemicals |

> Profile source: annual securities report (S100YBP7, filed 2026-06-17). As of filing

## Five-axis industry profile

Primary industry: Chemicals (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 73.4 | 96 |
| Profitability | 22.5 | 100 |
| Cash conversion | 88 | 96 |
| Efficiency | 53.5 | 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)

- About 70% of Nippon Shokubai's sales come from Materials, with Solutions making up much of the rest.
- Out of every ¥100 of sales, about ¥4 is left as operating profit.
- Revenue changed -2.3% from the prior year, operating profit -8.0%.

## Company structure

- Segment revenue mix: Materials 69.7%、Solutions 30.3%
- Revenue → net income: ¥399898000000 → ¥17496000000
- Net income → operating cash flow: ¥17496000000 → ¥53544000000（difference ¥36048000000）
- Main uses of operating cash flow: CapEx ¥49735000000 / dividends ¥16528000000 / buybacks ¥7003000000
- Change in cash: ¥-2745000000
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 | ¥399.9B |  |
| Operating income | ¥17.5B | Margin 4.4% |
| Net income | ¥16.8B | Margin 4.2% |
| Free cash flow | ¥3.81B |  |
| Largest business | Materials | of segment revenue 69.7% |
| Employees (consolidated) | 4,880 |  |
| EPS | ¥112.15 |  |
| Diluted EPS | ¥112.14 |  |
| Book value per share | ¥1771.61 |  |
| Equity ratio | 68.4% | Derived from disclosed figures |
| Shares outstanding | 150,000,000 |  |
| Treasury shares | 2,076,300 |  |
| Shareholders | 64,424 |  |
| Average salary (parent only) | ¥8.6M | Filing company only |
| Cash ratio | 8.9% | Cash ÷ revenue 13.0% |
| Vs. industry median margin | -3.1 pp | Chemicals |
| ROE | 4.3% | Derived from disclosed figures |
| ROA | 3.0% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 3.2× net income
- FY2026, one segment accounts for 67% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥273163000000 | ¥399898000000 | +46.4% |
| Operating income | ¥-15921000000 | ¥17530000000 | — |
| Operating margin | -5.8% | 4.4% | +10.2 pp |
| Employees | 4,555 people | 4,880 people | +7.1% |
| Cash and equivalents | ¥36341000000 | ¥51819000000 | +42.6% |

### 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 |
| --- | ---: |
| 基礎化学品 → 事業再編・廃止 | 40.4% |
| 機能性化学品 → 事業再編・廃止 | 56.8% |
| 環境・触媒 → 事業再編・廃止 | 2.8% |
| 新設・再編 → マテリアルズ | 69.7% |
| 新設・再編 → ソリューションズ | 30.3% |

Segment revenue source references: 5 (derived)

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 399,898 | 100.0% | S100YBP7 |
| Cost of revenue | 325,092 | 81.3% | S100YBP7 |
| Gross profit | 74,806 | 18.7% | S100YBP7 |
| SG&A | 57,635 | 14.4% | S100YBP7 |
| Operating income | 17,530 | 4.4% | S100YBP7 |
| Pretax income | 21,493 | 5.4% | S100YBP7 |
| Income tax | 3,997 | 1.0% | S100YBP7 |
| Net income | 17,496 | 4.4% | S100YBP7 |
| Net income attributable to owners | 16,764 | 4.2% | S100YBP7 |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 81 |
| SG&A | 15 |
| Operating income | 4 |
| (Ref.) Net income | 4 |

### Margin funnel

Gross margin 18.7% → Operating margin 4.4% → Net margin 4.2%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -2.3%; Core profit growth: -8.0%
Operating leverage (core profit growth ÷ revenue growth): 3.48×
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 | 409,346 | 399,898 | -9,448 | -2.3% |
| Gross profit | 70,446 | 74,806 | 4,360 | +6.2% |
| Operating income | 19,062 | 17,530 | -1,532 | -8.0% |
| Net income attributable to owners | 17,394 | 16,764 | -630 | -3.6% |
| Operating cash flow | 46,974 | 53,544 | 6,570 | +14.0% |
| Free cash flow | 11,970 | 3,809 | -8,161 | -68.2% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2018 | 313,939 | — | — | 22,641 | 44,206 | — | S100PRII |
| FY ending Mar 2019 | 338,869 | — | — | 23,849 | 35,918 | — | S100QYAE |
| FY ending Mar 2020 | 302,150 | 13,178 | 4.4% | 11,094 | 37,499 | 3,470 | S100LM6Z |
| FY ending Mar 2021 | 273,163 | -15,921 | -5.8% | -10,899 | 35,277 | 3,891 | S100PRII |
| FY ending Mar 2022 | 369,293 | 29,062 | 7.9% | 23,720 | 35,058 | 12,802 | S100QYAE |
| FY ending Mar 2023 | 419,568 | 23,528 | 5.6% | 19,392 | 41,447 | 18,362 | S100TNYU |
| FY ending Mar 2024 | 392,009 | 16,562 | 4.2% | 11,008 | 57,880 | 37,313 | S100VYV3 |
| FY ending Mar 2025 | 409,346 | 19,062 | 4.7% | 17,394 | 46,974 | 11,970 | S100YBP7 |
| FY ending Mar 2026 | 399,898 | 17,530 | 4.4% | 16,764 | 53,544 | 3,809 | S100YBP7 |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥81.9M |
| Operating income per employee (consolidated) | ¥3.6M |
| Net income per employee (consolidated) | ¥3.4M |

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) | 4,526 | 4,574 | 4,607 | 4,685 | 4,880 |
| Average salary (parent company) | ¥7.6M | ¥7.8M | ¥8.2M | ¥8.1M | ¥8.6M |
| Average age (parent company) | 38.6 years | 38.8 years | 39.0 years | 39.2 years | 39.4 years |
| Average tenure (parent company) | 16.5 years | 16.0 years | 16.5 years | 16.5 years | 16.6 years |

Year over year: Employees (consolidated) +4.2% · Revenue (consolidated) -2.3%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Materials | 278,810 | 69.7% | 11,943 | 4.3% |
| Solutions | 121,088 | 30.3% | 5,996 | 5.0% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| Materials | 69.7% | 66.6% | -3.1 | 4.3% |
| Solutions | 30.3% | 33.4% | 3.1 | 5.0% |

Segment → industry: Solutions → Chemicals / Materials → Chemicals

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 53,544 | 13.4% | S100YBP7 |
| Capital expenditure | 49,735 | 12.4% | S100YBP7 |
| Free cash flow | 3,809 | 1.0% | 算出 |
| Investing cash flow | -48,319 | -12.1% | S100YBP7 |
| Financing cash flow | -9,837 | -2.5% | S100YBP7 |
| Dividends paid | 16,528 | 4.1% | S100YBP7 |
| Share buyback | 7,003 | 1.8% | S100YBP7 |
| Change in cash | -2,745 | -0.7% | S100YBP7 |
| Cash and equivalents | 51,819 | 13.0% | S100YBP7 |

## 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 | 39,363 | 39,035 | 55,129 | 54,565 | 51,819 | S100TNYU, S100VYV3, S100YBP7 |
| Total assets | 518,151 | 523,319 | 544,060 | 543,659 | 580,209 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |
| Net assets | 351,123 | 369,998 | 392,562 | 392,533 | 406,587 | S100TNYU, S100VYV3, S100YBP7 |
| Share capital | 25,038 | 25,038 | 25,038 | 25,038 | 25,038 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |
| Property, plant and equipment | 191,143 | 189,520 | 188,436 | 194,244 | 223,128 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |
| Goodwill | — | — | — | — | 3,539 | S100YBP7 |
| Current assets | 237,656 | 244,053 | 259,679 | 255,451 | 247,243 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |
| Total liabilities | 167,028 | 153,321 | 151,498 | 151,126 | 173,622 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |
| Equity attributable to owners of parent | 343,882 | 362,231 | 383,448 | 383,029 | 396,649 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |
| Retained earnings | 288,124 | 301,940 | 298,424 | 308,770 | 302,831 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |
| Treasury stock | -6,291 | -9,298 | -2,358 | -7,263 | -3,854 | S100QYAE, S100TNYU, S100VYV3, S100YBP7 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 9% | S100YBP7 |
| Property, plant and equipment | 38% | S100YBP7 |
| Intangibles and goodwill | 1% | — |
| Other assets | 52% | S100YBP7 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 30% | S100YBP7 |
| Equity | 70% | S100YBP7 |

### 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 | 518,151 | 523,319 | 544,060 | 543,659 | 580,209 |
| Equity | 351,123 | 369,998 | 392,562 | 392,533 | 406,587 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 39,363 | 39,035 | 55,129 | 54,565 | 51,819 |

## 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) | 55.8% | S100YBP7 |
| Fixed assets ÷ total assets | 38.5% | S100YBP7 |
| Goodwill ÷ parent equity | 0.9% | S100YBP7 |

### 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) | 8.9% |
| Cash ÷ revenue | 13.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 305.4% |
| Cash vs. profit gap | 36,780 JPY mn (of net income 219.4%) |
| Shareholder returns / net income | 140.4% |
| Shareholder returns / FCF | 617.8% |
| Shareholder payments — dividends / net income | 98.6% |
| Shareholder payments — dividends / FCF | 433.9% |
| CapEx intensity (capex ÷ revenue) | 12.4% |
| Investing CF relative to operating CF | 90.2% |

## 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 | 6.4% | 0.71× | 4.6% | 1.51× | 6.9% | S100QYAE |
| 2023 | 4.6% | 0.81× | 3.7% | 1.47× | 5.5% | S100TNYU |
| 2024 | 2.8% | 0.73× | 2.1% | 1.43× | 3.0% | S100VYV3 |
| 2025 | 4.2% | 0.75× | 3.2% | 1.42× | 4.5% | S100YBP7 |
| 2026 | 4.2% | 0.71× | 3.0% | 1.44× | 4.3% | S100YBP7 |

## 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 | 12.2% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 4.6% | 2026-03-31 |
| ＥＮＥＯＳホールディングス株式会社 | Major shareholder | 4.1% | 2026-03-31 |
| 株式会社りそな銀行 | Major shareholder | 3.7% | 2026-03-31 |
| 三洋化成工業株式会社 | Major shareholder | 3.4% | 2026-03-31 |
| 株式会社みずほ銀行 | Major shareholder | 2.6% | 2026-03-31 |
| artience株式会社 | Major shareholder | 2.4% | 2026-03-31 |
| JPモルガン証券株式会社 | Major shareholder | 2.1% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 2.0% | 2026-03-31 |
| 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 | 1.6% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for FY ending Mar 2026 was ¥399.9B, down -2.3% from ¥409.3B.
- Gross profit rose +6.2% to ¥74.8B, but operating income dropped -8.0% to ¥17.5B and net income fell -3.6% to ¥16.8B.
- Operating cash flow grew +14.0% to ¥53.5B. With capital expenditure at ¥49.7B, free cash flow shrank -68.2% to ¥3.81B.

### Drivers

- Volumes went up, but weaker overseas product prices and cheaper raw materials pushed selling prices down
- An inventory valuation gain in the prior year turned into a loss, and fixed manufacturing costs and SG&A both rose
- Spending increased on plants under construction, including one for lithium-ion battery electrolyte

### Risks

- Key raw materials track crude oil and naphtha prices, and sharp rises may not be passed on to customers in full or on time
- The Materials business faces tough competition and swings with market prices; a slow shift toward Solutions would hurt earnings
- Many plants and sales offices are overseas, so currency moves and local political or economic shifts affect results

Cited: Annual Securities Report, 114th fiscal term (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual Securities Report, 114th fiscal term (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第114期(2025/04/01－2026/03/31) | S100YBP7 | 2026-06-17 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YBP7,, |
| 有価証券報告書－第113期(2024/04/01－2025/03/31) | S100VYV3 | 2025-06-17 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VYV3,, |
| 有価証券報告書－第112期(2023/04/01－2024/03/31) | S100TNYU | 2024-06-20 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TNYU,, |
| 有価証券報告書－第111期(2022/04/01－2023/03/31) | S100QYAE | 2023-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QYAE,, |
| 訂正有価証券報告書－第110期(令和3年4月1日－令和4年3月31日) | S100PRII | 2022-12-09 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100PRII,, |
| 有価証券報告書－第109期(令和2年4月1日－令和3年3月31日) | S100LM6Z | 2021-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LM6Z,, |

## 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).