Policy of using the operating profit margin as a key management indicator
First written in FY2017. 2 of 6 entries say "Softened", first in 2026-05-13. Latest entry: FY2026.
J-Max moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
7 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「The Group has set net sales, operating income and ROA (return on assets) as KPIs (key performance indicators) in its medium- to long-term five-year plan, with the aim of achieving sustainable growth through business expansion and highly efficient operations. However, owing to changes in the business environment resulting from the shift toward electrification in the automotive industry in recent years, achievement of the targets is expected to be delayed by approximately 3 years from the original schedule.」
The framework using revenue, operating profit and ROA as key KPIs remains in place, but the timing for achieving the KPI targets has been deferred by approximately 3 years from the initial schedule. - 2026-05-13SoftenedRevisions to earnings forecasts
「The Group has set net sales, operating income and ROA (return on assets) as KPIs (key performance indicators) in its medium- to long-term five-year plan, with the aim of achieving sustainable growth through business expansion and highly efficient operations. However, owing to changes in the business environment resulting from the shift toward electrification in the automotive industry in recent years, achievement of the targets is expected to be delayed by approximately 3 years from the original schedule.」
The policy of using net sales, operating income and ROA as KPIs remains unchanged, but the expected timing for achieving the targets has been pushed back by approximately 3 years from the original schedule. - FY2024ReframedAnnual report
「The Group uses revenue, operating profit and ROA, or return on assets, as its key management indicators, with the aim of achieving sustainable growth through business scale expansion and highly efficient operations.」
The KPI framework changed from one centered on operating margin to one using revenue, operating profit and ROA as key indicators. The targets for the final year of the medium- to long-term five-year plan are revenue of ¥70 billion, operating profit of ¥4 billion and ROA of 6.0%. - FY2022WorsenedAnnual report
「The target operating margin for the fiscal year ending March 2023, the final year of the medium- to long-term five-year plan, is 9.0% or higher. However, operating margin was 6.4% for the current consolidated fiscal year due to the impact of production cuts caused by semiconductor supply shortages and the impact of soaring raw material prices.」
Against the target of 9.0% or higher for the fiscal year ending March 2023, actual operating margin for the current fiscal year was 6.4%. It also declined from 8.9% in the previous fiscal year, explicitly indicating deterioration in progress toward the target due to semiconductor shortages and soaring raw material prices. - FY2020AdvancedAnnual report
「To establish a foundation for competitiveness, the Group positions its body parts business, also referred to as its body structure parts business, as its “core business,” and its electrification parts and die businesses as “strategic businesses,” or “growth drivers for leaping forward over the next 10 years.” It is concentrating management resources on these businesses, aiming for efficient management suited to its scale and stronger competitiveness, and uses operating margin as a KPI. Operating margin was 8.9% for the current consolidated fiscal year, and progress toward achieving the target of 9.0% or higher for the fiscal year ending March 2023, the final year of its medium- to long-term five-year plan, has been steady.」
The policy of using operating margin as a KPI was supplemented with specific targets and progress: actual operating margin of 8.9% for the current fiscal year and a target of 9.0% or higher for the fiscal year ending March 2023. - FY2017First statedAnnual report
「The Group uses operating margin as a key management indicator and aims to stabilize its management foundation.」
The Company explicitly identified operating margin as a key management indicator, but did not disclose a specific target.