Komori
Financial results presentation3423S E CorporationConstruction and Materials

Notice Regarding the Formulation of a New Medium-Term Management Plan

The company has newly formulated Medium-Term Management Plan 2030, covering the five-year period from FY2026 through FY2030, and set targets including revenue of ¥37.0 billion, operating profit of ¥2.8 billion and ROE of 16% for FY2030. The plan also sets out a policy of investing for growth in 3 new businesses, strengthening the profitability of existing businesses, and returning profits to shareholders with a DOE guideline of 3.5% or higher.

Worth reading
77Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
370
¥100 million (2030 consolidated net sales target)
Wording
Conditional
How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationFiscal 2026–fiscal 2030 (5 years)13 items taken from the company’s own explanation
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
FY2025: significantly below plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • A gap between projects
    DetailsA factor behind the decline in revenue and operating profit in Construction Equipment and Materials and Building Materials
  • Labor shortages at construction sites and work-style reforms
    DetailsA factor behind declining demand for Construction Equipment and Materials and Building Materials
  • Unrealized increases in revenue and gross profit from new businesses and other activities
    DetailsFactors behind the decline in revenue and profit in FY2025
  • Increase in personnel and other expenses in the R&D divisionIncrease of approximately ¥200 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The impact of the situation in the Middle East is difficult to forecast reasonably and has not been incorporated into the current forecast. Other numerical assumptions are Not disclosed
New initiatives
  • Expansion of the ASEAN disaster prevention business
  • Manufacturing support business using an AI-powered automated cost-estimation system
  • Integrated road-resilience platform business
  • Continued demonstration testing of the power generation business and efforts to secure government support
  • Capital allocation of ¥2.5 billion for growth investments, ¥3.0 billion for the power generation business, and ¥4.0 billion for replacement of existing facilities and other purposes
Key KPIsA metric the company considers important as a management benchmark.
  • PBR0.75 times
    Year on year against the same period last year0.80 times in FY2024, 0.93 times in FY2023
  • Trading value per day¥13.1 million
    Year on year against the same period last year¥7.6 million in FY2024, ¥12.3 million in FY2023
  • ROE▲4.0
    Year on year against the same period last year4.9% in FY2024, 9.1% in FY2023
  • Target market share in Vietnam50 ％
  • Target market share in Indonesia and the Philippines25 ％
  • Market size of the integrated road resilience platform¥360 100 million
Segment results
  • Construction equipment and materials
    FY2025 revenue¥12,019 million
    FY2025 operating profit¥717 million
    FY2030 revenue target¥14.7 billion
  • Building materials
    FY2025 revenue¥9,860 million
    FY2025 operating profit¥414 million
    FY2030 revenue target¥11 billion
  • Construction Consulting
    FY2025 revenue¥687 million
    FY2025 operating profit¥36 million
    FY2030 revenue target¥1 billion
  • Repair and reinforcement construction
    FY2025 revenue¥2,834 million
    FY2025 operating profit¥249 million
    FY2030 revenue target¥2.8 billion
  • 3 new businesses
    FY2030 revenue target¥7.5 billion
    FY2030 operating profit target¥900 million
Medium-term management plan targets
  • Consolidated net sales
    Target fiscal yearFY2030
    Target value¥37.0 billion
    FY2025 actual¥25.4 billion
  • Operating income
    Target fiscal yearFY2030
    Target value¥2.8 billion
    FY2025 actual¥590 million
  • ROE
    Target fiscal yearFY2030
    Target value16.0％
    FY2025 actual▲4.0％
  • Revenue from the 3 new businesses
    Target fiscal yearFY2030
    Target value¥7.5 billion
Financial targets
ROE of 16.0% and PBR of 2 or higher. Specific targets for the D/E ratio and other metrics are under review
Market Size / Share
The market size of the integrated road resilience platform is ¥36.0 billion. Targets are a 50% market share in Vietnam and a 25% market share in Indonesia and the Philippines by FY2030
Number of employees
Approximately 100 employees across the 3 new businesses
Capital expenditures
¥40 100 million strengthening the management platform and capital investment in existing businesses, cumulative total for 5 years
Annual Dividend
¥13 for FY2026, forecast of ¥12 for FY2027 (interim and year-end breakdown Not disclosed)
Payout ratio
-90.3% for FY2026, forecast of 226.8% for FY2027. DOE guideline of 3.5% or higher
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredFiscal 2026–fiscal 2030 (5 years)
Self-assessment against the planFY2025: significantly below plan
Segment resultsSegment Construction equipment and materials / FY2025 revenue ¥12,019 million / FY2025 operating profit ¥717 million / FY2030 revenue target ¥14.7 billion, Segment Building materials / FY2025 revenue ¥9,860 million / FY2025 operating profit ¥414 million / FY2030 revenue target ¥11 billion, Segment Construction Consulting / FY2025 revenue ¥687 million / FY2025 operating profit ¥36 million / FY2030 revenue target ¥1 billion, Segment Repair and reinforcement construction / FY2025 revenue ¥2,834 million / FY2025 operating profit ¥249 million / FY2030 revenue target ¥2.8 billion, Segment 3 new businesses / FY2030 revenue target ¥7.5 billion / FY2030 operating profit target ¥900 million
Breakdown of Factors Affecting the ChangeFactors A gap between projects / Details A factor behind the decline in revenue and operating profit in Construction Equipment and Materials and Building Materials, Factors Labor shortages at construction sites and work-style reforms / Details A factor behind declining demand for Construction Equipment and Materials and Building Materials, Factors Unrealized increases in revenue and gross profit from new businesses and other activities / Details Factors behind the decline in revenue and profit in FY2025, Factors Increase in personnel and other expenses in the R&D division / Amount Increase of approximately ¥200 million
Key KPIsIndicator name PBR / Value 0.75 times / Year on year against the same period last year 0.80 times in FY2024, 0.93 times in FY2023, Indicator name Trading value per day / Value ¥13.1 million / Year on year against the same period last year ¥7.6 million in FY2024, ¥12.3 million in FY2023, Indicator name ROE / Value ▲4.0 / Year on year against the same period last year 4.9% in FY2024, 9.1% in FY2023, Indicator name Target market share in Vietnam / Value 50 ％ / Year on year against the same period last year Not disclosed, Indicator name Target market share in Indonesia and the Philippines / Value 25 ％ / Year on year against the same period last year Not disclosed, Indicator name Market size of the integrated road resilience platform / Value ¥360 100 million / Year on year against the same period last year Not disclosed
Number of employeesApproximately 100 employees across the 3 new businesses
Assumptions Underlying the Business OutlookThe impact of the situation in the Middle East is difficult to forecast reasonably and has not been incorporated into the current forecast. Other numerical assumptions are Not disclosed
Medium-term management plan targetsTarget fiscal year FY2030 / Indicator Consolidated net sales / Target value ¥37.0 billion / FY2025 actual ¥25.4 billion, Target fiscal year FY2030 / Indicator Operating income / Target value ¥2.8 billion / FY2025 actual ¥590 million, Target fiscal year FY2030 / Indicator ROE / Target value 16.0％ / FY2025 actual ▲4.0％, Target fiscal year FY2030 / Indicator Revenue from the 3 new businesses / Target value ¥7.5 billion
Financial targetsROE of 16.0% and PBR of 2 or higher. Specific targets for the D/E ratio and other metrics are under review
Annual Dividend¥13 for FY2026, forecast of ¥12 for FY2027 (interim and year-end breakdown Not disclosed)
Payout ratio-90.3% for FY2026, forecast of 226.8% for FY2027. DOE guideline of 3.5% or higher
Capital expenditures¥40 100 million (strengthening the management platform and capital investment in existing businesses, cumulative total for 5 years)
Market Size / ShareThe market size of the integrated road resilience platform is ¥36.0 billion. Targets are a 50% market share in Vietnam and a 25% market share in Indonesia and the Philippines by FY2030
New initiativesExpansion of the ASEAN disaster prevention business, Manufacturing support business using an AI-powered automated cost-estimation system, Integrated road-resilience platform business, Continued demonstration testing of the power generation business and efforts to secure government support, Capital allocation of ¥2.5 billion for growth investments, ¥3.0 billion for the power generation business, and ¥4.0 billion for replacement of existing facilities and other purposes
Items this document does not state (16)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

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 company views structural changes, including national resilience, aging infrastructure, climate change and energy, and digitalization, as growth opportunities, and aims to address issues under the previous medium-term management plan, including declining profitability in existing businesses and delays in monetizing new businesses.

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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Formulation of a New Medium-Term Management Plan | S E Corporation (3423) timely disclosure | Komori