Strengthening earnings power with ROE of 8–10% as a management metric
First written in FY2017. 4 of 13 entries say "Worsened", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2020: 27 of 113 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Group has set ROE (return on equity) of 7% or higher as a target metric, and ROE for the consolidated fiscal year was 3.5%.」
With the target of ROE of 7% or higher maintained, actual ROE declined from 5.6% in the previous fiscal year to 3.5%, below the target level. Impairment losses at overseas consolidated subsidiaries and other entities were cited as the main factor. - FY2025WorsenedAnnual report
「The Group uses ROE (return on equity) of 7% or higher as one of the objective indicators for achieving its management objectives. ROE for the consolidated fiscal year was 5.6%. This was mainly because extraordinary losses, including impairment losses, were recorded on some fixed assets, including production equipment held by consolidated subsidiaries, following the decision to discontinue production.」
With the target of ROE of 7% or higher maintained, actual ROE was 5.6%, below the target level. Impairment losses and other charges associated with the decision to discontinue production were cited as the main factors. - FY2024AdvancedAnnual report
「ROE for the consolidated fiscal year was 7.7%.」
With the target of ROE of 7% or higher maintained, actual ROE was 7.7%, up from 7.6% in the previous fiscal year and above the target level. - FY2023AchievedAnnual report
「The Group uses ROE (return on equity) of 7% or higher as one of the objective indicators for achieving its management objectives. ROE for the consolidated fiscal year was 7.6%.」
After the ROE target was changed from the previous 8–10% to 7% or higher, actual ROE for the fiscal year was 7.6%, above the revised target level. - FY2022SoftenedAnnual report
「The Group uses ROE (return on equity) of 7% or higher as one of the objective indicators for achieving its management objectives. We will continue to strengthen profitability while investing management resources in growth areas.」
The ROE target was changed from the previous 8–10% to “7% or higher.” Actual ROE for the fiscal year was 3.9%, below the revised target. - FY2021ROE below the target rangeAnnual report
「The Group uses ROE (return on equity) of 8–10% as one of the objective indicators for achieving its management objectives. ROE for the consolidated fiscal year was 3.3%. In addition, in light of the financial characteristic of increasing amortization expenses for goodwill and other items associated with businesses and assets acquired for future growth, we will seek to understand the Group's underlying financial position by referring to EBITDA, an indicator of cash-generating capacity.」
ROE rose from 2.9% in the previous fiscal year to 3.3%, but remained below the target range of 8–10%. EBITDA is also referenced in light of the burden of goodwill amortization. - FY2020WorsenedAnnual report
「The Group uses ROE (return on equity) of 8–10% as one of the objective indicators for achieving its management objectives. ROE for the consolidated fiscal year was 2.9%. In addition, in light of the financial characteristic of increasing amortization expenses for goodwill and other items associated with businesses and assets acquired for future growth, we will seek to understand the Group's underlying financial position by referring to EBITDA, an indicator of cash-generating capacity.」
While ROE of 8–10% was the target range, actual ROE was 2.9% in FY2020, below the target range. - FY2019AdvancedAnnual report
「The Group uses ROE (return on equity) of 8–10% as one of the objective indicators for achieving its management objectives. ROE for the consolidated fiscal year was 8.2%.」
Against the management metric of ROE of 8–10%, actual ROE was 8.2% in FY2019. - FY2017First statedAnnual report
「To continuously enhance corporate value, we will strengthen profitability while using ROE (return on equity) of 8–10% as a management metric and investing management resources in growth areas.」
ROE of 8–10% was explicitly identified for the first time as an objective management metric, with investment of management resources in growth areas positioned as the means of achieving it.