Komori
Presentation materials for financial results1377SAKATA SEED CORPORATIONFood

Notice Regarding the Formulation of the Long-Term Management Plan “PASSION2035”

The company has formulated “PASSION2035,” a 10-year long-term management plan beginning in the fiscal year ending May 2027, and set a policy of targeting ¥200 billion in revenue and a 17.5% operating margin in the fiscal year ending May 2036. It will make approximately ¥50 billion in growth investments over the next 5 years and also work to reduce its equity ratio and strengthen shareholder returns.

Worth reading
42Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
500
¥100 million (total growth investment through the fiscal year ending May 2031)
Wording
Conditional
How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationFiscal year ended May 2026 (actual) and the long-term management plan for the fiscal years ending May 2031 and May 203610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales
Value
Actual results for the fiscal year ended May 20261,043
Target for the fiscal year ending May 20311,400
Target for the fiscal year ending May 20362,000
Operating profit
Value
Actual results for the fiscal year ended May 2026131
Target for the fiscal year ending May 2031195
Target for the fiscal year ending May 2036350
Net income
Value
Actual results for the fiscal year ended May 2026122
Target for the fiscal year ending May 2031155
Target for the fiscal year ending May 2036280
Operating profit margin
Value
Actual results for the fiscal year ended May 202612.6
Target for the fiscal year ending May 203113.9
Target for the fiscal year ending May 203617.5
What the company explained in this material
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
USD¥150
EUR¥160
New initiatives
  • Balancing regional autonomy and global integration through Integrated Autonomy
  • Approximately ¥50 billion in growth investments (strategic and expansion investments)
  • Acquisitions of breeding programs and use of advanced digital transformation breeding
  • Investment in new breeding technologies, including AI forecasting models
  • ONE HOUSE, an integrated operating model for the global flower business
  • Share repurchases
  • Improving decision-making and operations through the use of IT, digital transformation and AI
  • Pursuing new fields and partnerships in the environmental business
Key KPIsA metric the company considers important as a management benchmark.
  • ROE
    Actual results for the fiscal year ended May 20267.2%
    Target for the fiscal year ending May 20318% or higher
    Target for the fiscal year ending May 203610% or higher
  • Equity ratio
    Latest results82.3%
    TargetIn the 60% range
  • Vegetable market growth rateCAGR 6～7%
  • Flower market growth rateCAGR 5～6%
  • WACC
    Fiscal year ending May 20266.0～7.0%
Segment results
Vegetable business
Revenue for the fiscal year ended May 2026844 Hundreds of millions of yen
Revenue target for the fiscal year ending May 20311,146 Hundreds of millions of yen
Revenue target for the fiscal year ending May 20361,635 Hundreds of millions of yen
Flower business
Revenue for the fiscal year ended May 2026155 Hundreds of millions of yen
Revenue target for the fiscal year ending May 2031200 Hundreds of millions of yen
Revenue target for the fiscal year ending May 2036300 Hundreds of millions of yen
Environmental Business
Revenue for the fiscal year ended May 202641 Hundreds of millions of yen
Revenue target for the fiscal year ending May 203154 Hundreds of millions of yen
Revenue target for the fiscal year ending May 203665 Hundreds of millions of yen
Other
Revenue for the fiscal year ended May 20262 Hundreds of millions of yen
Medium-term management plan targets
Plan namePASSION2035
PeriodFiscal year ending May 2027 to fiscal year ending May 2036
Target for the fiscal year ending May 2031
Net Sales¥140 billion
Operating profit¥19.5 billion
Operating profit margin13.9%
Net income for the current fiscal year¥15.5 billion
ROE8% or higher
Growth InvestmentApproximately ¥50 billion cumulative
Equity ratioIn the 60% range
Target for the fiscal year ending May 2036
Net Sales¥200 billion
Operating profit¥35.0 billion
Operating profit margin17.5%
Net income for the current fiscal year¥28 billion
ROE10% or higher
Financial targets
ROE
Actual results for the fiscal year ended May 20267.2%
Target for the fiscal year ending May 20318% or higher
Target for the fiscal year ending May 203610% or higher
Equity ratio
Latest results82.3%
Target for the fiscal year ending May 2031In the 60% range
Market Size / Share
Market Growth Rate
VegetablesCAGR 6～7%
FlowersCAGR 5～6%
Capital expenditures
¥300 100 million cumulative investment to strengthen the foundation from the fiscal year ending May 2027 through the fiscal year ending May 2031
Payout ratio
Guideline35%
Total payout ratioTargeting 60% over the next 5 years
Acquisition of treasury shares
Number of shares acquired1 million shares (maximum)
Total acquisition cost¥5 billion (maximum)
Acquisition period3 August 2026 to 28 May 2027
Method of acquisitionMarket purchases, including off-auction purchases of treasury shares (ToSTNeT-3)
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredFiscal year ended May 2026 (actual) and the long-term management plan for the fiscal years ending May 2031 and May 2036
Net Salesvalue Actual results for the fiscal year ended May 2026 1,043 / Target for the fiscal year ending May 2031 1,400 / Target for the fiscal year ending May 2036 2,000 / yoy_pct Not disclosed
Operating profitvalue Actual results for the fiscal year ended May 2026 131 / Target for the fiscal year ending May 2031 195 / Target for the fiscal year ending May 2036 350 / yoy_pct Not disclosed
Net incomevalue Actual results for the fiscal year ended May 2026 122 / Target for the fiscal year ending May 2031 155 / Target for the fiscal year ending May 2036 280 / yoy_pct Not disclosed
Operating profit marginvalue Actual results for the fiscal year ended May 2026 12.6 / Target for the fiscal year ending May 2031 13.9 / Target for the fiscal year ending May 2036 17.5 / Year-on-year change (points) Not disclosed
Segment resultsVegetable business Revenue for the fiscal year ended May 2026 844 Hundreds of millions of yen / Revenue target for the fiscal year ending May 2031 1,146 Hundreds of millions of yen / Revenue target for the fiscal year ending May 2036 1,635 Hundreds of millions of yen / Flower business Revenue for the fiscal year ended May 2026 155 Hundreds of millions of yen / Revenue target for the fiscal year ending May 2031 200 Hundreds of millions of yen / Revenue target for the fiscal year ending May 2036 300 Hundreds of millions of yen / Environmental Business Revenue for the fiscal year ended May 2026 41 Hundreds of millions of yen / Revenue target for the fiscal year ending May 2031 54 Hundreds of millions of yen / Revenue target for the fiscal year ending May 2036 65 Hundreds of millions of yen / Other Revenue for the fiscal year ended May 2026 2 Hundreds of millions of yen
Key KPIsIndicator name ROE / Actual results for the fiscal year ended May 2026 7.2% / Target for the fiscal year ending May 2031 8% or higher / Target for the fiscal year ending May 2036 10% or higher, Indicator name Equity ratio / Latest results 82.3% / Target In the 60% range, Indicator name Vegetable market growth rate / Value CAGR 6～7%, Indicator name Flower market growth rate / Value CAGR 5～6%, Indicator name WACC / Fiscal year ending May 2026 6.0～7.0%
Assumptions Underlying the Business OutlookExchange rate USD ¥150 / EUR ¥160
Medium-term management plan targetsPlan name PASSION2035 / Period Fiscal year ending May 2027 to fiscal year ending May 2036 / Target for the fiscal year ending May 2031 Net Sales ¥140 billion / Operating profit ¥19.5 billion / Operating profit margin 13.9% / Net income for the current fiscal year ¥15.5 billion / ROE 8% or higher / Growth Investment Approximately ¥50 billion cumulative / Equity ratio In the 60% range / Target for the fiscal year ending May 2036 Net Sales ¥200 billion / Operating profit ¥35.0 billion / Operating profit margin 17.5% / Net income for the current fiscal year ¥28 billion / ROE 10% or higher
Financial targetsROE Actual results for the fiscal year ended May 2026 7.2% / Target for the fiscal year ending May 2031 8% or higher / Target for the fiscal year ending May 2036 10% or higher / Equity ratio Latest results 82.3% / Target for the fiscal year ending May 2031 In the 60% range
Payout ratioGuideline 35% / Total payout ratio Targeting 60% over the next 5 years
Acquisition of treasury sharesNumber of shares acquired 1 million shares (maximum) / Total acquisition cost ¥5 billion (maximum) / Acquisition period 3 August 2026 to 28 May 2027 / Method of acquisition Market purchases, including off-auction purchases of treasury shares (ToSTNeT-3)
Capital expenditures¥300 100 million (cumulative investment to strengthen the foundation from the fiscal year ending May 2027 through the fiscal year ending May 2031)
Market Size / ShareMarket Growth Rate Vegetables CAGR 6～7% / Flowers CAGR 5～6% / Market share Not disclosed
New initiativesBalancing regional autonomy and global integration through Integrated Autonomy, Approximately ¥50 billion in growth investments (strategic and expansion investments), Acquisitions of breeding programs and use of advanced digital transformation breeding, Investment in new breeding technologies, including AI forecasting models, ONE HOUSE, an integrated operating model for the global flower business, Share repurchases, Improving decision-making and operations through the use of IT, digital transformation and AI, Pursuing new fields and partnerships in the environmental business
Items this document does not state (15)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Amid significant changes in the business environment, including climate change, geopolitical risks and technological innovation, the company aims to improve management transparency, emphasize dialogue with stakeholders, enhance profitability and establish a foundation for sustainable growth.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Formulation of the Long-Term Management Plan “PASSION2035” | SAKATA SEED CORPORATION (1377) timely disclosure | Komori