Worth reading
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How definitive the wording is.Items stated in the management plan
Annual repost (update)ROEFY2025 actual: 8.0% (target level: Not disclosed) → Not disclosed
ROICFY2025 actual: 8.1% (target level: Not disclosed) → Not disclosed
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planInvestments of ¥13.0 billion, shareholder returns of ¥7.0 billion plus additional amounts → FY2024 and FY2025 actuals: investments of ¥3.5 billion and shareholder returns of ¥10.2 billion+15,476.9%Calculated from the two disclosed figures
Total investment plan¥13.0 billion (Medium-Term Management Plan 2024-2026)
Investment amount by sectorField Research and development / Amount ¥3.5 billion, Field Growth Investment / Amount ¥8 billion, Field Maintenance and replacement / Amount ¥1.5 billion
Statements about the use of capital
Payout ratio / DOE policyIntroduced DOE as a metric in the basic dividend policy. Forecast DOE for FY2026 is at least 4.0%, and the payout ratio is 53.3%.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 policyConducts flexible share buybacks after considering capital efficiency and other factors. ¥1.6 billion in FY2024 and ¥2.7 billion in FY2025.
Cost of capitalCost of equity: 8.5%; WACC: 8.4%.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe improvement trend has continued, with PBR exceeding 1x. PBR was 1.14x and the share price was ¥1,717 in FY2025. The company believes this was attributable to improved market evaluation of its medium- to long-term growth strategy, capital policy and other initiatives.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Strengthen the business base in the domestic market and actively expand into overseas markets
02Actively implement growth investments, including in human capital
03Continue developing technologies to support next-generation energy
04Enhance shareholder returns
05Conduct flexible share buybacks after considering capital efficiency and other factors
06Consider reducing cross-held shares
07Enhance the integrated report and English-language disclosures
08Strengthen the sustainability promotion structure
09Continue disseminating information through dialogue with investors
Plan assumptionsThe assumptions used to calculate the cost of equity were a risk-free rate of 2.54%, a beta of 1.08 and a risk premium of 5.5%. The risk-free rate is based on the yield on 10-year Japanese government bonds, while the risk premium is the average of the historical and implied methods.
Risks identified by the company
Increase in the risk-free rate due to rising long-term interest rates (from 1.33% to 2.54%)
Increase in the company's beta (from 0.72 to 1.08)
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2024-2026 |
| Plan period | 2024-2026 |
| Progress against the plan | Annual repost (update) |
| ROE target | FY2025 actual: 8.0% (target level: Not disclosed) → Not disclosed |
| ROIC target | FY2025 actual: 8.1% (target level: Not disclosed) → Not disclosed |
| Payout ratio / DOE policy | Introduced DOE as a metric in the basic dividend policy. Forecast DOE for FY2026 is at least 4.0%, and the payout ratio is 53.3%. |
| Treasury share acquisition policy | Conducts flexible share buybacks after considering capital efficiency and other factors. ¥1.6 billion in FY2024 and ¥2.7 billion in FY2025. |
| Cost of capital | Cost of equity: 8.5%; WACC: 8.4%. |
| Self-assessment of PBR and share price | The improvement trend has continued, with PBR exceeding 1x. PBR was 1.14x and the share price was ¥1,717 in FY2025. The company believes this was attributable to improved market evaluation of its medium- to long-term growth strategy, capital policy and other initiatives. |
| Total investment plan | ¥13.0 billion (Medium-Term Management Plan 2024-2026) |
| Investment amount by sector | Field Research and development / Amount ¥3.5 billion, Field Growth Investment / Amount ¥8 billion, Field Maintenance and replacement / Amount ¥1.5 billion |
| Plan assumptions | The assumptions used to calculate the cost of equity were a risk-free rate of 2.54%, a beta of 1.08 and a risk premium of 5.5%. The risk-free rate is based on the yield on 10-year Japanese government bonds, while the risk premium is the average of the historical and implied methods. |
| Key initiatives | Strengthen the business base in the domestic market and actively expand into overseas markets, Actively implement growth investments, including in human capital, Continue developing technologies to support next-generation energy, Enhance shareholder returns, Conduct flexible share buybacks after considering capital efficiency and other factors, Consider reducing cross-held shares, Enhance the integrated report and English-language disclosures, Strengthen the sustainability promotion structure, Continue disseminating information through dialogue with investors |
| Results under the previous plan | Investments of ¥13.0 billion, shareholder returns of ¥7.0 billion plus additional amounts → FY2024 and FY2025 actuals: investments of ¥3.5 billion and shareholder returns of ¥10.2 billion |
| Risks identified | Increase in the risk-free rate due to rising long-term interest rates (from 1.33% to 2.54%), Increase in the company's beta (from 0.72 to 1.08) |
| Date of board resolution | 31 July 2026 |
| Publication date | 31 July 2026 |
Items this document does not state (8)
Sales TargetOperating profit targetOperating profit margin targetNet income targetSegment targetNon-financial targetsReason for revision or withdrawalSize of the Target Market
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.To further advance initiatives aimed at executing the growth strategy and improving capital efficiency. In light of the decline in ROE and other metrics, the company recognizes improving capital efficiency as a key issue.
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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.