Segment-Level Capital Efficiency Management Using CROIC and the Value Creation Line

「For completed business investment projects, we annually measure whether ROIC (Return on Invested Capital) and CROIC (Cash-Return on Invested Capital), a cash-return-based ROIC, exceed the cost of capital as part of monitoring and withdrawal eligibility assessments. By regularly assessing business viability, identifying issues early, and implementing appropriate corrective measures or withdrawing from businesses, we are preventing deterioration of the Group's balance sheet and helping maintain and enhance corporate value.」

「For completed business investment projects, we measure whether ROIC (Return on Invested Capital) and CROIC (Cash-Return on Invested Capital), a cash-return-based ROIC, exceed the cost of capital for each project. We regularly assess business viability to identify issues early and implement appropriate corrective measures or proceed with withdrawal in a timely manner.」

「To achieve this target, we introduced CROIC, a cash-return-based ROIC that represents basic operating cash flow relative to invested capital, as an internal management metric, and established value creation lines indicating the CROIC level to be achieved by each segment.」