# NITTO DENKO CORPORATION: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第161期(2025/04/01－2026/03/31) (S100YCAR)
> Page: https://vizora.meequs.com/en/company/nitto-denko
> Retrieved: 2026-09-30T17:49:47.162Z

## Company

Nitto Denko, founded in 1918, is a company in Medical Devices listed on TSE Prime. It has 26,477 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NITTO DENKO CORPORATION |
| Ticker | 6988 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/6988.T) |
| Listing | TSE Prime |
| Head office | 大阪府茨木市下穂積1丁目1番2号 (上記は登記上の本店所在地であり、実際の業務は下記で行っております。) 大阪市北区大深町4番20号グランフロント大阪タワーA |
| Representative (per filing) | 取締役社長 赤木 達哉 |
| Founded | Oct 1918 |
| Share capital | ¥26.8B |
| Employees (consolidated) | 26,477 |
| Average salary (parent only) | ¥8.4M |
| Fiscal year end | March |
| Website | nitto.com (https://nitto.com/) |
| Corporate number | 2120901001628 |
| EDINET | E01888 |
| Industries (Vizora) | Medical Devices, Chemicals, Pharmaceuticals, Electronic Components |

> Profile source: annual securities report (S100YCAR, filed 2026-06-17). As of filing

## Five-axis industry profile

Primary industry: Chemicals (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 51.6 | 96 |
| Profitability | 94.5 | 100 |
| Cash conversion | 25.5 | 96 |
| Efficiency | 60.5 | 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 51% of Nitto Denko's sales come from Optronics, with IndustrialTape and Human life making up much of the rest.
- Out of every ¥100 of sales, about ¥18 is left as operating profit.
- Revenue changed +1.4% from the prior year, operating profit -1.1%.

## Company structure

- Segment revenue mix: Optronics 51.1%、IndustrialTape 35.5%、Human life 13.4%、Other 0.0%
- Revenue → net income: ¥1028171000000 → ¥133537000000
- Net income → operating cash flow: ¥133537000000 → ¥192183000000（difference ¥58646000000）
- Main uses of operating cash flow: CapEx ¥96607000000 / dividends ¥39667000000 / buybacks —
- Change in cash: ¥-3538000000
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 | ¥1.03T |  |
| Operating income | ¥183.6B | Margin 17.9% |
| Net income | ¥133.5B | Margin 13.0% |
| Free cash flow | ¥95.6B |  |
| Largest business | Optronics | of segment revenue 51.1% |
| Employees (consolidated) | 26,477 |  |
| EPS | ¥197.2 |  |
| Diluted EPS | ¥197.11 |  |
| Book value per share | ¥792.22 |  |
| Equity ratio | 79.6% | Derived from disclosed figures |
| Shares outstanding | 678,659,000 |  |
| Treasury shares | 4,999,900 |  |
| Shareholders | 29,482 |  |
| Average salary (parent only) | ¥8.4M | Filing company only |
| Cash ratio | 25.0% | Cash ÷ revenue 35.0% |
| Vs. industry median margin | +10.3 pp | Chemicals |
| ROE | 12.2% | Derived from disclosed figures |
| ROA | 9.7% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 74% of positive segment profit
- FY2026, segment profit share differs by 23 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥761321000000 | ¥1028171000000 | +35.1% |
| Operating income | ¥93809000000 | ¥183615000000 | +95.7% |
| Operating margin | 12.3% | 17.9% | +5.5 pp |
| Employees | 25,424 people | 26,477 people | +4.1% |
| Cash and equivalents | ¥300888000000 | ¥359805000000 | +19.6% |

### 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 |
| --- | ---: |
| インダストリアルテープ → インダストリアルテープ | 35.5% |
| インダストリアルテープ → 事業再編・廃止 | 3.1% |
| オプトロニクス → オプトロニクス | 51.1% |
| オプトロニクス → 事業再編・廃止 | 4.2% |
| ライフサイエンス → 事業再編・廃止 | 3.4% |
| その他 → その他 | 0.0% |
| その他 → 事業再編・廃止 | 2.7% |
| 新設・再編 → ヒューマンライフ | 13.4% |

Segment revenue source references: 8 (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 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Optronics | 5 years | +4.5% | ¥524598000000 | 28.6% | 2 |
| IndustrialTape | 5 years | +4.4% | ¥364827000000 | 14.2% | 2 |
| Human life | 4 years | +13.1% | ¥137246000000 | -3.7% | 2 |
| Other | 5 years | -77.9% | ¥11000000 | -63372.7% | 2 |

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 1,028,171 | 100.0% | S100YCAR |
| Cost of revenue | 637,408 | 62.0% | S100YCAR |
| Gross profit | 390,763 | 38.0% | S100YCAR |
| SG&A | 156,322 | 15.2% | S100YCAR |
| Operating income | 183,615 | 17.9% | S100YCAR |
| Pretax income | 184,976 | 18.0% | S100YCAR |
| Income tax | 51,438 | 5.0% | S100YCAR |
| Net income | 133,537 | 13.0% | S100YCAR |
| Net income attributable to owners | 133,498 | 13.0% | S100YCAR |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 62 |
| SG&A | 15 |
| Other operating | 5 |
| Operating income | 18 |
| (Ref.) Net income | 13 |

### Margin funnel

Gross margin 38.0% → Operating margin 17.9% → Net margin 13.0%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue up, profit down
Revenue growth: +1.4%; Core profit growth: -1.1%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): -0.78×
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 | 1,013,878 | 1,028,171 | 14,293 | +1.4% |
| Gross profit | 395,513 | 390,763 | -4,750 | -1.2% |
| Operating income | 185,667 | 183,615 | -2,052 | -1.1% |
| Net income attributable to owners | 137,237 | 133,498 | -3,739 | -2.7% |
| Operating cash flow | 217,908 | 192,183 | -25,725 | -11.8% |
| Free cash flow | 111,905 | 95,576 | -16,329 | -14.6% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2017 | 767,710 | — | — | 63,453 | 119,939 | — | S100LK3M |
| FY ending Mar 2018 | 857,376 | — | — | 87,377 | 122,551 | — | S100OPQW |
| FY ending Mar 2019 | 806,495 | — | — | 66,560 | 98,569 | — | S100R248 |
| FY ending Mar 2020 | 741,018 | 69,733 | 9.4% | 47,156 | 123,641 | 63,844 | S100LK3M |
| FY ending Mar 2021 | 761,321 | 93,809 | 12.3% | 70,235 | 116,309 | 58,585 | S100OPQW |
| FY ending Mar 2022 | 853,448 | 132,260 | 15.5% | 97,132 | 144,489 | 85,531 | S100R248 |
| FY ending Mar 2023 | 929,036 | 147,173 | 15.8% | 109,173 | 181,702 | 115,781 | S100U06I |
| FY ending Mar 2024 | 915,139 | 139,132 | 15.2% | 102,679 | 155,521 | 87,747 | S100VYH3 |
| FY ending Mar 2025 | 1,013,878 | 185,667 | 18.3% | 137,237 | 217,908 | 111,905 | S100YCAR |
| FY ending Mar 2026 | 1,028,171 | 183,615 | 17.9% | 133,498 | 192,183 | 95,576 | S100YCAR |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥38.8M |
| Operating income per employee (consolidated) | ¥6.9M |
| Net income per employee (consolidated) | ¥5M |

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) | 25,961 | 26,070 | 25,300 | 25,769 | 26,477 |
| Average salary (parent company) | ¥8.1M | ¥8.2M | ¥7.6M | ¥8.3M | ¥8.4M |
| Average age (parent company) | 40.5 years | 40.7 years | 40.8 years | 40.9 years | 41.0 years |
| Average tenure (parent company) | 13.0 years | 12.9 years | 12.6 years | 12.7 years | 15.5 years |

Year over year: Employees (consolidated) +2.7% · Revenue (consolidated) +1.4%

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

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| IndustrialTape | 364,827 | 35.5% | 51,662 | 14.2% |
| Optronics | 524,598 | 51.1% | 149,871 | 28.6% |
| Human life | 137,246 | 13.4% | -5,041 | -3.7% |
| Other | 11 | 0.0% | -6,971 | -63372.7% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| IndustrialTape | 35.5% | 25.6% | -9.9 | 14.2% |
| Optronics | 51.1% | 74.4% | 23.3 | 28.6% |
| Human life | 13.4% | — | — | -3.7% |
| Other | 0.0% | — | — | -63372.7% |

Loss-making segment (excluded from profit shares): Human life -5,041 JPY mn

Loss-making segment (excluded from profit shares): Other -6,971 JPY mn

Segment → industry: Human life → Medical Devices / Optronics → Chemicals / IndustrialTape → Chemicals / Human life → Pharmaceuticals / Optronics → Electronic Components

## 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 | 192,183 | 18.7% | S100YCAR |
| Capital expenditure | 96,607 | 9.4% | S100YCAR |
| Free cash flow | 95,576 | 9.3% | 算出 |
| Investing cash flow | -107,436 | -10.4% | S100YCAR |
| Financing cash flow | -106,597 | -10.4% | S100YCAR |
| Dividends paid | 39,667 | 3.9% | S100YCAR |
| Change in cash | -3,538 | -0.3% | S100YCAR |
| Cash and equivalents | 359,805 | 35.0% | S100YCAR |

## 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 | 362,046 | 329,966 | 342,269 | 363,344 | 359,805 | S100U06I, S100VYH3, S100YCAR |
| Total assets | 1,094,469 | 1,153,647 | 1,251,087 | 1,321,920 | 1,441,757 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Net assets | 822,105 | 903,194 | 985,048 | 1,045,114 | 1,149,103 | S100U06I, S100VYH3, S100YCAR |
| Share capital | 26,783 | 26,783 | 26,783 | 26,783 | 26,783 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Property, plant and equipment | 286,949 | 333,103 | 378,535 | 417,636 | 466,960 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Goodwill | 4,809 | 58,822 | 66,056 | 57,167 | 64,125 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Current assets | 722,738 | 677,189 | 717,957 | 750,209 | 797,294 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Total liabilities | 272,363 | 250,452 | 266,038 | 276,806 | 292,653 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Equity attributable to owners of parent | 821,192 | 902,211 | 984,020 | 1,044,083 | 1,148,027 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Retained earnings | 705,910 | 786,269 | 808,062 | 890,040 | 912,008 | S100R248, S100U06I, S100VYH3, S100YCAR |
| Treasury stock | -9,771 | -27,631 | -23,298 | -31,799 | -13,849 | S100R248, S100U06I, S100VYH3, S100YCAR |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 25% | S100YCAR |
| Property, plant and equipment | 32% | S100YCAR |
| Intangibles and goodwill | 5% | — |
| Other assets | 38% | S100YCAR |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 20% | S100YCAR |
| Equity | 80% | S100YCAR |
| Other liabilities | 0% | S100YCAR |

### 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 | 1,094,469 | 1,153,647 | 1,251,087 | 1,321,920 | 1,441,757 |
| Equity | 822,105 | 903,194 | 985,048 | 1,045,114 | 1,149,103 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 362,046 | 329,966 | 342,269 | 363,344 | 359,805 |

## 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) | 45.4% | S100YCAR |
| Fixed assets ÷ total assets | 32.4% | S100YCAR |
| Goodwill ÷ parent equity | 5.6% | S100YCAR |

Goodwill over 4 years: 4,809 → 64,125 JPY; total investing cash flow: -507,968 JPY. This does not imply causation.

### 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) | 25.0% |
| Cash ÷ revenue | 35.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 104.7% |
| Cash vs. profit gap | 58,685 JPY mn (of net income 44.0%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 29.7% |
| Shareholder payments — dividends / FCF | 41.5% |
| CapEx intensity (capex ÷ revenue) | 9.4% |
| Investing CF relative to operating CF | 55.9% |

## 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 | 11.4% | 0.78× | 8.9% | 1.33× | 11.8% | S100R248 |
| 2023 | 11.8% | 0.83× | 9.7% | 1.30× | 12.7% | S100U06I |
| 2024 | 11.2% | 0.76× | 8.5% | 1.27× | 10.9% | S100VYH3 |
| 2025 | 13.5% | 0.79× | 10.7% | 1.27× | 13.5% | S100YCAR |
| 2026 | 13.0% | 0.74× | 9.7% | 1.26× | 12.2% | S100YCAR |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行㈱（信託口） | Major shareholder | 25.3% | 2026-03-31 |
| ㈱日本カストディ銀行（信託口） | Major shareholder | 10.2% | 2026-03-31 |
| THE CHASE MANHATTAN BANK, N.A. LONDONSECS LENDING OMNIBUS ACCOUNT （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 2.1% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505223 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 2.0% | 2026-03-31 |
| JPモルガン証券㈱ | Major shareholder | 1.9% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.9% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505103 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.8% | 2026-03-31 |
| HSBC HONG KONG-TREASURY SERVICES A/C ASIAN EQUITIES DERIVATIVES （常任代理人 香港上海銀行東京支店） | Major shareholder | 1.7% | 2026-03-31 |
| 日本生命保険相互会社 （常任代理人 日本マスタートラスト信託銀行㈱） | Major shareholder | 1.6% | 2026-03-31 |
| JP MORGAN CHASE BANK 385781 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.5% | 2026-03-31 |

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

- Revenue for the FY ending Mar 2026 was ¥1.03T, up +1.4% from ¥1.01T the year before.
- Profit dipped slightly: operating income was ¥183.6B (-1.1%) and net income was ¥133.5B (-2.7%).
- Cash generation fell more sharply, with operating cash flow at ¥192.2B (-11.8%) and free cash flow at ¥95.6B (-14.6%).

### Drivers

- Production of IT devices and high-end smartphones beat expectations, lifting demand for products such as debondable tape and high-precision circuit boards
- In Optronics, sales fell as the company pulled out of optical films for LCD smartphones and cut prices on process protection film
- A stronger yen weighed on operating income, while the Human Life loss narrowed as large nucleic acid manufacturing contracts moved into the commercial stage

### Risks

- Most sales come from overseas, so currency swings and trade measures such as US tariffs could hurt results
- Conflict in the Middle East or a closure of the Strait of Hormuz could push up oil-based raw material costs and disrupt shipping
- The display market moves fast and competition is intense, so commoditization or new rivals could squeeze margins

Cited: Annual Securities Report, 161st 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, 161st term (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第161期(2025/04/01－2026/03/31) | S100YCAR | 2026-06-17 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YCAR,, |
| 有価証券報告書－第160期(2024/04/01－2025/03/31) | S100VYH3 | 2025-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VYH3,, |
| 訂正有価証券報告書－第159期(2023/04/01－2024/03/31) | S100U06I | 2024-07-05 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100U06I,, |
| 有価証券報告書－第158期(2022/04/01－2023/03/31) | S100R248 | 2023-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R248,, |
| 訂正有価証券報告書－第157期(令和3年4月1日－令和4年3月31日) | S100OPQW | 2022-07-13 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OPQW,, |
| 有価証券報告書－第156期(令和2年4月1日－令和3年3月31日) | S100LK3M | 2021-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LK3M,, |

## 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).