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Overview of the Consolidated Fiscal Year Ended March 31, 2026
The global economy generally remained robust during the consolidated fiscal year ended March 31, 2026. In the United States, economic conditions remained firm, supported by strong capital investment driven in part by increased AI-related investment. In Europe, although consumer spending remained solid, the economic recovery remained modest, as exports declined in part due to the impact of U.S. tariff policies. In China, the economy continued to slow gradually amid the prolonged stagnation of the real estate market, while consumer spending remained weak as the effects of stimulus measures faded. In Japan, the economy continued on a moderate recovery path, with consumer spending remaining resilient against the backdrop of improving employment and income conditions.
Regarding the market environment for the Nippon Chemi-Con Group, the ICT-related market saw continued robust investment in data centers by major U.S. IT companies, and demand for AI servers and peripheral equipment expanded. In the automotive-related market, although the growth rate of Battery Electric Vehicles (BEVs) slowed partly due to policy changes in the United States, the market generally continued on a moderate recovery trend, supported by advances in Autonomous Driving / Advanced Driver-Assistance Systems (AD/ADAS). Industrial equipment-related markets also remained on a recovery trend, showing signs of bottoming out.
Under these business conditions, the Group steadily implemented the key initiatives set forth in its 10th Medium-term Management Plan. On the sales front, the Group focused on expanding sales of large-sized aluminum electrolytic capacitors and hybrid capacitors for the rapidly growing AI server market, while also promoting sales of products other than aluminum electrolytic capacitors, including inductors. In addition, the Group strengthened its sales structure in overseas markets where new demand is expected, including opening a new sales office at the U.S. subsidiary, United Chemi-Con Inc., and establishing Chemi-Con Electronics (India) Pvt. Ltd., a sales subsidiary in India. On the production front, the Group worked to improve profitability by establishing a supply system capable of meeting server-related demand, including expanding production capacity for large-sized aluminum electrolytic capacitors, while also continuously working to improve Overall Equipment Effectiveness (OEE) through measures such as preventing equipment failures and reducing waiting time during production line changeovers. In product development, the Group developed the “KHR Series” of snap-in aluminum electrolytic capacitors with increased capacitance for power supply applications in servers, including AI servers. In addition, the Group launched new conductive polymer hybrid aluminum electrolytic capacitor products designed for installation in AI servers and automotive applications. The Group also developed the “FX Series” of common-mode choke coils for noise filters used in switching power supplies, inverter equipment, and automotive equipment, featuring improved magnetic permeability achieved through a proprietary manufacturing process.
As a result of the above, the Group recorded net sales of 136,821 million yen (up 11.5% Year-on-Year (YoY)), operating profit of 3,369 million yen (down 9.9% YoY), ordinary profit of 2,094 million yen (up 33.5% YoY), and profit attributable to owners of parent of 2,367 million yen (an increase of 2,330 million yen YoY) for the consolidated fiscal year under review.
The year-end dividend for the fiscal year ended March 31, 2026, was set at 20 yen per share.
Operating Results by Division
Operating results by division for the consolidated fiscal year ended March 31, 2026, are as follows.
- Capacitors (126,180 million yen, 92.2% of total sales)
Net sales for this division increased by 12.3% YoY driven mainly by increased demand in ICT and industrial equipment markets. - Mechanical Parts and Other Parts (3,155 million yen, 2.3% of total sales)
Net sales for this division decreased by 8.3% YoY, primarily due to a decline in demand for CMOS camera modules. - Capacitor Materials (5,643 million yen, 4.1% of total sales)
Net sales for this division decreased by 1.1% YoY, primarily due to lower demand for electrode foils used in aluminum electrolytic capacitors. - Other Products (1,842 million yen, 1.4% of total sales)
Net sales for this division increased by 50.9% YoY, primarily due to increased demand for resale products.
Full-year Outlook
Looking ahead, the business environment surrounding the Group is expected to remain highly uncertain, due to factors such as downward pressure on the global economy from U.S. trade policies, rising energy prices linked to heightened geopolitical risks, including escalating tensions in the Middle East, soaring raw material prices, and logistics disruptions caused by restricted transportation routes.
Against this backdrop, the Group launched its 11th Medium-term Management Plan for FY2026-FY2028. The Group will position the aluminum electrolytic capacitor business as its core business and work to rebuild its business foundation and fundamentally improve profitability.
Under its business strategy, the Group has classified its markets into “growth markets,” where high growth is expected, and “commodity markets,” where competition is primarily price-driven. It will implement sales and production strategies tailored to the characteristics of each market. In the AI server and automotive markets, which are growth markets, the Group has positioned high-performance, high-quality aluminum electrolytic capacitors as key products and will seek to secure stable orders through design-in activities. Meanwhile, in the highly price-competitive commodity markets, the Group will pursue cost structure reforms by establishing an optimal-location production system, promoting optimal-location materials procurement, and enhancing logistics and inventory management. Through these initiatives, the Group will work to strengthen its market competitiveness and regain market share through strategic sales measures.
Under its financial strategy, the Group will continue to make targeted investments in growth markets while strengthening its earnings base, thereby generating stable cash flows that will enable the Group to reduce interest-bearing debt, improve capital efficiency, and enhance financial soundness. At the same time, the Group will strengthen its equity base and maintain an appropriate capital structure to build a financial foundation resilient to changes in the business environment and to achieve sustainable enhancement of corporate value.
Regarding the Full-Year Consolidated Earnings Forecast for the fiscal year ending March 31, 2027 (FY2026), the Group projects net sales of 160,000 million yen (up 16.9% YoY), operating profit of 8,000 million yen (up 137.4% YoY), ordinary profit of 6,000 million yen (up 186.4% YoY), and profit attributable to owners of parent of 4,000 million yen (up 68.9% YoY), based on an assumed exchange rate of 153 yen per U.S. dollar.
June 26, 2026
Kenichi Konno
Representative Director and President