Worth reading
41Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
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Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateNet SalesNot disclosed → Organic revenue growth of at least 6%
Net income for the current fiscal yearNot disclosed → Average annual net income growth of 5%
ROEMost recent actual result: 12.5% (as of the end of March 2026) → Improve ROE (numerical ROE target: not disclosed)
Only the target level is shown because the current level for comparison was not provided.Investment amount by sectorField Growth Investment / Details Rental assets, development of operating bases and other areas / Amount Not disclosed, Field New Businesses / Details Including M&A / Amount Not disclosed, Field Human resources investment / Details Talent development, expansion of systems, health promotion and other areas / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyIntroduce a progressive dividend policy and determine dividends based on a target of setting DOE (dividend on equity) at 6% as the floor. The applicable period runs through FY2030.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of equity of approximately 6% (estimated using CAPM and the earnings yield)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 share price has outperformed TOPIX. PBR remained at approximately 2.0x at the end of FY2025, and each indicator has generally trended upward, supported by earnings growth and expectations for growth.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Profitability Improvement
02Improve asset efficiency
03Organic revenue growth of at least 6%, exceeding growth in the welfare equipment rental market
04Pursue M&A proactively, including horizontal integration within the industry and the development of a foundation for services supporting older people.
05Average annual net income growth of 5%
06Secure an equity spread of at least 5%, exceeding the cost of equity
07Introduce a progressive dividend policy, with DOE (dividend on equity) of 6% as the floor
08Promote management that uses financial leverage through borrowings and other means
09Enhance IR through measures including briefings for individual investors
10Communicate a growth scenario by formulating a long-term vision
11Promoting Sustainability Management
12Establish and strengthen corporate governance
13Introduce share price-linked compensation for senior executive officers and above, and a cumulative share investment plan for officers
14Introduce an ESOP trust to enhance employee incentives and achieve management involving all employees
Plan assumptionsLong-term growth is expected to continue in long-term care expenses for rental welfare equipment covered by long-term care insurance., Aim for organic revenue growth exceeding growth in the welfare equipment rental market.
Size of the Target MarketThe market size in monetary terms is not disclosed. The year-on-year change in the welfare equipment rental market covered by long-term care insurance is presented. The source is stated as “Total rental costs under the national long-term care insurance system.”
Reason for revision or withdrawal
The analysis and assessment of the current situation and the policy for future initiatives have been updated with respect to the measures announced on 26 June 2025.
| Item | Details |
|---|---|
| Plan name | Update on Initiatives to Achieve Management Conscious of Capital Costs and Share Prices |
| Plan period | Targets toward FY2030 (start year: not disclosed; final year: FY2030) |
| Progress against the plan | Annual update |
| Sales Target | Not disclosed → Organic revenue growth of at least 6% |
| Net income target | Not disclosed → Average annual net income growth of 5% |
| ROE target | Most recent actual result: 12.5% (as of the end of March 2026) → Improve ROE (numerical ROE target: not disclosed) |
| Payout ratio / DOE policy | Introduce a progressive dividend policy and determine dividends based on a target of setting DOE (dividend on equity) at 6% as the floor. The applicable period runs through FY2030. |
| Cost of capital | Cost of equity of approximately 6% (estimated using CAPM and the earnings yield) |
| Self-assessment of PBR and share price | The share price has outperformed TOPIX. PBR remained at approximately 2.0x at the end of FY2025, and each indicator has generally trended upward, supported by earnings growth and expectations for growth. |
| Investment amount by sector | Field Growth Investment / Details Rental assets, development of operating bases and other areas / Amount Not disclosed, Field New Businesses / Details Including M&A / Amount Not disclosed, Field Human resources investment / Details Talent development, expansion of systems, health promotion and other areas / Amount Not disclosed |
| Plan assumptions | Long-term growth is expected to continue in long-term care expenses for rental welfare equipment covered by long-term care insurance., Aim for organic revenue growth exceeding growth in the welfare equipment rental market. |
| Key initiatives | Profitability Improvement, Improve asset efficiency, Organic revenue growth of at least 6%, exceeding growth in the welfare equipment rental market, Pursue M&A proactively, including horizontal integration within the industry and the development of a foundation for services supporting older people., Average annual net income growth of 5%, Secure an equity spread of at least 5%, exceeding the cost of equity, Introduce a progressive dividend policy, with DOE (dividend on equity) of 6% as the floor, Promote management that uses financial leverage through borrowings and other means, Enhance IR through measures including briefings for individual investors, Communicate a growth scenario by formulating a long-term vision, Promoting Sustainability Management, Establish and strengthen corporate governance, Introduce share price-linked compensation for senior executive officers and above, and a cumulative share investment plan for officers, Introduce an ESOP trust to enhance employee incentives and achieve management involving all employees |
| Reason for revision or withdrawal | The analysis and assessment of the current situation and the policy for future initiatives have been updated with respect to the measures announced on 26 June 2025. |
| Size of the Target Market | The market size in monetary terms is not disclosed. The year-on-year change in the welfare equipment rental market covered by long-term care insurance is presented. The source is stated as “Total rental costs under the national long-term care insurance system.” |
| Publication date | 26 June 2026 |
Items this document does not state (10)
Operating profit targetOperating profit margin targetROIC targetTreasury share acquisition policyTotal investment planSegment targetNon-financial targetsResults under the previous planRisks identifiedDate 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 analysis and assessment of the current situation and the policy for future initiatives have been updated with respect to the measures announced on 26 June 2025.
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