Top Message
We would like to express our sincere gratitude to our shareholders and investors for their continued support.
TOMOEGAWA Group has formulated the 9th Mid-Term Business Plan, which begins in fiscal year (FY) 2027 and ends in FY 2029, with the aim of achieving sustainable growth and enhancing corporate value over the medium to long term, under a rapidly changing business environment. This plan is based on the strengthening of its earnings foundation achieved through the transformation of its business portfolio and structural reforms carried out under the 8th Mid-Term Business Plan, and it is positioned as a three-year preparatory phase toward the full-scale business growth envisioned under the 10th Mid-Term Business Plan, which will constitute the Company’s next growth phase.
Our financial targets for the final year of the 9th Mid-Term Business Plan (FY 2029) are net sales of ¥40.0 billion, operating profit of ¥2.0 billion, and ROE of 5.4%. To achieve these targets, TOMOEGAWA Group is steadily assembling an exceptionally promising set of “strategic advantages”. These consist not only of new products themselves, but also of “the broad and deep accumulation of core technologies” that have enabled us to create them over many years. Significant growth opportunities — gateway to new growth —are now opening before us. In order to capture these opportunities with certainty and to take a greater leap forward in the next phase, we will invest over the next three years in facilities, human capital, safety, digital transformation (DX), and cybersecurity, “fundamentally strengthening and rebuilding our management foundation” required to drive growth.
What we are aiming for is not the accumulation of short-term incremental profits, but an evolution into a highly growth-oriented business structure capable of delivering sustainable growth over the next decade. By fully leveraging the unique technologies that we have cultivated since our founding, we will create new value through solutions that inspire people to think, “Surprising Solutions.”
We sincerely hope that our shareholders and investors will continue to follow our progress from a medium- to long-term perspective and look forward to the future growth of TOMOEGAWA CORPORATION as it evolves into a leading-edge technology company.
Observation of whole FY 2026 (April 2025 to March 2026)
In FY 2026, the final year of the 8th Mid-Term Business Plan, in the Toner Segment, the monochrome toner market continued to be sluggish, as in the previous FY. Meanwhile, in the Functional Sheet Segment, sales of Functional Non-Woven Fabric products grew significantly, and in the Semiconductor and Display-related Segment, sales of optical films used in automotive displays and semiconductor packaging tape increased. In addition, the effects of company-wide price pass-through measures also contributed, net sales amounted to ¥35,552 million, up ¥1,120 million or +3.3% from the previous FY.
In terms of profit, although expenses increased due to development costs, depreciation and repair costs due to proactive capital expenditures with investments for mass production systems for new products and the DX strategy, these were offset by the increase in sales and improved gross profit margins driven by an improved product mix. Furthermore, the Company continued price pass-through efforts in response to rising raw material prices and labor costs. As a result, operating profit was ¥1,618 million, up ¥335 million or +26.2% from that of the previous FY.
Ordinary profit was ¥1,853 million, up ¥286 million or +18.3% from that of the previous FY, due to higher operating profit and the continued contribution of equity earnings from an affiliated company that handles processing of optical film used for displays. Profit attributable to owners of parent was ¥945 million, up ¥195 million or +26.1% from that of the previous FY, despite the recording of impairment losses on manufacturing equipment and losses on disposal of fixed assets associated with the demolition of aging facilities, supported by higher ordinary profit.
With regard to financial condition, although the Company acquired treasury shares in August 2025 for the purpose of improving capital efficiency and implementing a flexible capital policy, supported by profit generation, the Company continues to maintain a net assets ratio of 40%, which remains the Company's current guideline.
The Projection of FY 2027 (April 2026 to March 2027)
In FY 2027, the first year of the 9th Mid-Term Business Plan, the Company expects an increase in net sales, while profit is expected to decline temporarily compared to the previous FY.
The target for consolidated net sales is ¥38,000 million up 6.9% from the previous FY.
In the Semiconductor and Display-Related Segment, the Company will continue to launch new optical film products and advance preparations for the full-scale expansion of sales of Flexible Planar Heater. In the Functional Sheet Segment, where the strengthening of its profitable business structure is progressing through structural reforms, the Company will continue to advance the launch of new the Functional Non-woven Fabric-related products. In the Toner Segment, the Company will continue to realize the benefits of operational efficiency improvements since the previous FY and aim to increase market share in markets showing signs of recovery, as well as strengthen sales of color toner products.
In terms of profit, operating profit forecast is set at ¥1,000 million, down 38.2% from that of the previous FY. This reflects increased depreciation associated with proactive capital expenditures, higher expenses related to improvements in employee compensation and strengthening recruitment competitiveness, as well as the anticipated impact of rising geopolitical risks in the Middle East. While certain cost increases are expected due to rising raw material and energy prices, these are expected to be partially offset by improved profitability driven by progress in passing on costs to customers and the accelerated development and launch of new products.
While the forecast does not factor in the possibility of procurement being disrupted or suspended, or the impacts thereof, the Company will continue to strengthen information sharing with business partners to ensure stable procurement of raw materials and stable product supply.
We continue efforts to enhance our corporate value over the medium to long term and we look forward to your continued support in the future.
President and Representative Director, COO and CTO