Worth reading
64In focus
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
800
¥100 million (revenue target, compared with the plan for the fiscal year ending May 2027)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+34.8%
基準 2,300Target3,100100 million
Operating profit+113.3%
基準 75Target160100 million
Operating profit margin+2.0pt
基準 3.3Target5.3%
Net income for the current fiscal year+150.0%
基準 40Target100100 million
ROE+21.2pt
基準 3.8Target25%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planNet Sales 3,200 / Operating profit 200 / Operating profit margin 6.2 / Net income for the current fiscal year 120 → Net Sales 1,977 / Operating profit 38 / Operating profit margin 1.9 / Net income for the current fiscal year 12（Net Sales -38.2% / Operating profit -81.0% / Operating profit margin -69.4% / Net income for the current fiscal year -90.0%）
Statements about the use of capital
Payout ratio / DOE policyThe basic policy is to provide stable and continuous shareholder returns, while enhancing shareholder returns by comprehensively taking into account business performance, financial position and investment plans. The applicable period is the period covered by this medium-term management plan. Numerical target: Not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyIn principle, dividends will remain the primary means of shareholder returns, while share repurchases will be considered flexibly based on a comprehensive assessment of the share price level, capital efficiency and other factors.
Self-assessment of PBR and share priceTo improve PBR, the company will pursue greater efficiency and profitability and enhance dialogue with stakeholders. PBR was 2.37x at 31 May 2021 and 2.99x at 31 May 2026.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Rebuilding earnings power (strengthening the competitiveness and growth of 4 businesses)
02Growth and productivity improvement through investment in human capital
03Capital efficiency-focused management (targeting ROE of 25%)
04Disciplined cash allocation and shareholder returns
05Transition to earnings-focused management
06Optimization of sales and supply systems
07Strengthening financial discipline and cash flow
08Returning the custom-built housing business to growth
09Establishing profitable operations
10Optimization of peripheral businesses
11Next-generation product platform
12Evolving the sales model through reforms at customer touchpoints
13Strengthening the branding of company-developed and company-built subdivision housing
14Expanding the medium-scale subdivision housing business
15Growing warranty-extension construction and improving the contract rate
16Promoting large-scale renovations of owners’ homes
17Expanding contracts for high-quality office properties
18Improving profit margins by reviewing the earnings structure of existing properties
19Expanding properties held and under management
20Expanding the acquisition of high-quality office properties
21Expanding the range of medium- to large-scale properties to meet diverse investment needs
22Expanding sales channels
23Promoting in-house sales and establishing an in-house construction system
24Strengthening competitiveness through target-specific product planning
25Strengthening recruitment and employee-retention foundations
26Strengthening employee development and management capabilities
27Improving engagement and productivity
28Response to achieving management that is conscious of the cost of capital and share price
29Policy for initiatives related to DX
Plan assumptionsContraction of the housing market accompanying population decline, Structural increases in construction costs and labor costs, Higher interest rates and changes in the funding environment, Maturation of the housing market and changes in demand patterns, The impact of the new lease accounting standard scheduled to apply from the beginning of the consolidated and business fiscal years commencing on or after 1 April 2027 has not been incorporated into the earnings forecasts, as it was difficult to calculate the impact reasonably as of 31 May 2026.
Size of the Target MarketNew housing starts are expected to decline to 610,000 units in fiscal 2040. Sources: the Ministry of Land, Infrastructure, Transport and Tourism’s “Statistics on Construction Starts” and Nomura Research Institute,Ltd.’s “New housing starts to decline to 610,000 units in fiscal 2040.”
Risks identified by the company
Contraction of the housing market due to population decline and changes in household structure
Structural increases in construction costs and labor costs
Higher interest rates and changes in the funding environment
Maturation of the housing market and changes in demand patterns
Structural changes in consumer behavior and purchasing processes
Labor shortages
Transfer of skills
Declining retention rates
Issues in operating the construction system
Changes in the competitive and industry-restructuring environment caused by the withdrawal of financially weak operators
Reason for revision or withdrawal
The delayed update of the existing business model and reform of the cost structure in response to rapid changes in the market environment resulted in sluggish business performance. In addition, delays in securing and developing sales personnel and issues in operating the construction system constrained both orders received and sales, resulting in performance falling below the initial assumptions.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan “Tama Step 2031” |
| Plan period | Fiscal year ending May 2027 to fiscal year ending May 2031 |
| Progress against the plan | Formulated |
| Sales Target | ¥2,300 100 million → ¥3,100 100 million（34.8%） |
| Operating profit target | ¥75 100 million → ¥160 100 million（113.3%） |
| Operating profit margin target | 3.3 % → 5.3 %（60.6%） |
| Net income target | ¥40 100 million → ¥100 100 million（150.0%） |
| ROE target | 3.8 % → 25 %（557.9%） |
| Payout ratio / DOE policy | The basic policy is to provide stable and continuous shareholder returns, while enhancing shareholder returns by comprehensively taking into account business performance, financial position and investment plans. The applicable period is the period covered by this medium-term management plan. Numerical target: Not disclosed. |
| Treasury share acquisition policy | In principle, dividends will remain the primary means of shareholder returns, while share repurchases will be considered flexibly based on a comprehensive assessment of the share price level, capital efficiency and other factors. |
| Self-assessment of PBR and share price | To improve PBR, the company will pursue greater efficiency and profitability and enhance dialogue with stakeholders. PBR was 2.37x at 31 May 2021 and 2.99x at 31 May 2026. |
| Plan assumptions | Contraction of the housing market accompanying population decline, Structural increases in construction costs and labor costs, Higher interest rates and changes in the funding environment, Maturation of the housing market and changes in demand patterns, The impact of the new lease accounting standard scheduled to apply from the beginning of the consolidated and business fiscal years commencing on or after 1 April 2027 has not been incorporated into the earnings forecasts, as it was difficult to calculate the impact reasonably as of 31 May 2026. |
| Key initiatives | Rebuilding earnings power (strengthening the competitiveness and growth of 4 businesses), Growth and productivity improvement through investment in human capital, Capital efficiency-focused management (targeting ROE of 25%), Disciplined cash allocation and shareholder returns, Transition to earnings-focused management, Optimization of sales and supply systems, Strengthening financial discipline and cash flow, Returning the custom-built housing business to growth, Establishing profitable operations, Optimization of peripheral businesses, Next-generation product platform, Evolving the sales model through reforms at customer touchpoints, Strengthening the branding of company-developed and company-built subdivision housing, Expanding the medium-scale subdivision housing business, Growing warranty-extension construction and improving the contract rate, Promoting large-scale renovations of owners’ homes, Expanding contracts for high-quality office properties, Improving profit margins by reviewing the earnings structure of existing properties, Expanding properties held and under management, Expanding the acquisition of high-quality office properties, Expanding the range of medium- to large-scale properties to meet diverse investment needs, Expanding sales channels, Promoting in-house sales and establishing an in-house construction system, Strengthening competitiveness through target-specific product planning, Strengthening recruitment and employee-retention foundations, Strengthening employee development and management capabilities, Improving engagement and productivity, Response to achieving management that is conscious of the cost of capital and share price, Policy for initiatives related to DX |
| Results under the previous plan | Net Sales 3,200 / Operating profit 200 / Operating profit margin 6.2 / Net income for the current fiscal year 120 → Net Sales 1,977 / Operating profit 38 / Operating profit margin 1.9 / Net income for the current fiscal year 12（Net Sales -38.2% / Operating profit -81.0% / Operating profit margin -69.4% / Net income for the current fiscal year -90.0%） |
| Reason for revision or withdrawal | The delayed update of the existing business model and reform of the cost structure in response to rapid changes in the market environment resulted in sluggish business performance. In addition, delays in securing and developing sales personnel and issues in operating the construction system constrained both orders received and sales, resulting in performance falling below the initial assumptions. |
| Size of the Target Market | New housing starts are expected to decline to 610,000 units in fiscal 2040. Sources: the Ministry of Land, Infrastructure, Transport and Tourism’s “Statistics on Construction Starts” and Nomura Research Institute,Ltd.’s “New housing starts to decline to 610,000 units in fiscal 2040.” |
| Risks identified | Contraction of the housing market due to population decline and changes in household structure, Structural increases in construction costs and labor costs, Higher interest rates and changes in the funding environment, Maturation of the housing market and changes in demand patterns, Structural changes in consumer behavior and purchasing processes, Labor shortages, Transfer of skills, Declining retention rates, Issues in operating the construction system, Changes in the competitive and industry-restructuring environment caused by the withdrawal of financially weak operators |
| Publication date | 14 July 2026 |
Items this document does not state (7)
ROIC targetCost of capitalTotal investment planInvestment amount by sectorSegment targetNon-financial targetsDate of board resolution
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.The business environment has changed due to factors including the contraction of the housing market accompanying population decline, persistently high construction costs, labor shortages and increasingly diverse housing needs. During the final 2 years of the previous medium-term management plan, updates to the existing business model and reforms to the cost structure were delayed, while issues also emerged in securing and developing sales personnel and operating the construction system. The company therefore determined that it was necessary to strengthen the earnings power of existing businesses and rebuild its management platform.
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