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How definitive the wording is.Items stated in the management plan
Partially revisedOperating profit marginNot disclosed → 5.0% or more
ROENot disclosed → At least 8.0%
ROICNot disclosed → 7.0% or more
Only the target level is shown because the current level for comparison was not provided.Total investment planApproximately ¥2.8 billion (investment candidates identified as of now)
Investment amount by sectorField Domestic facilities, DX and production infrastructure / Amount Approximately ¥1.4 billion, Field Overseas growth investments and India / Amount Approximately ¥1.3 billion, Field Thailand and overseas capital investment / Amount Approximately ¥100 million
Statements about the use of capital
Payout ratio / DOE policyA payout ratio of approximately 30% is the guideline. Stable dividends are the basic policy, and the company aims to increase dividends in line with earnings. Target period: Not disclosed.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 (CoE): approximately 7.9%. This is not WACC.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 PBR was 0.30x at the end of June 2026, and a PBR below 1x has become the norm. The company aims to establish a PBR of at least 1.0x over the medium to long term.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Shift toward high-value-added products (precision processing and components related to sensor and safety functions)
02Reduce manufacturing costs (investment in automation and labor saving)
03Establish mechanisms for passing through higher prices (including raw material surcharges)
04Develop new products using processing technologies for difficult-to-machine materials
05Expand the overseas sales ratio (Thailand and India)
06Develop new customers and new applications
07Review fixed costs
08Consider optimizing and consolidating production sites
09Improve operational efficiency through DX (use of IoT and AI)
10Optimize procurement costs (review the supply chain)
11Reduce cross-shareholdings (sales criteria based on quantitative evaluations)
12Address underutilized assets
13Improve inventory turnover (appropriate inventory management)
14Allocate resources preferentially to growth investments and clarify investment discipline
15Execute reductions in cross-shareholdings to create funds for growth investments, while reducing assets and introducing ROIC management
16Strengthen KPI disclosures and IR while continuing the current shareholder return policy
17Develop non-automotive businesses through M&A and alliances
Plan assumptionsA risk-free rate of approximately 2.9% (the 10-year Japanese government bond yield at the end of August 2026), a beta of 1.0 and a market risk premium of approximately 5.0%. CoE = 2.9% + 1.0 × 5.0% = approximately 7.9%. The investment amounts and timing of implementation may change depending on the business environment, investment returns and financing conditions, among other factors.
Risks identified by the company
Structural changes in the automotive parts industry
Ability to pass on cost increases through pricing
Dependence on specific customers and business areas
Changes in the Business Environment
Investment returns
Financing conditions
Business risks
Reason for revision or withdrawal
While continuing to use the action policy disclosed in August 2024 as the basic framework, the company will specify and further develop the measures based on their progress, changes in the external environment and discussions by the Board of Directors.
| Item | Details |
|---|---|
| Plan name | Update on Initiatives to Achieve Management Conscious of Capital Costs and Share Prices |
| Plan period | Phase 1 (through the fiscal year ending June 2027), Phase 2 (from the fiscal year ending June 2028), Phase 3 (from the fiscal year ending June 2030) |
| Progress against the plan | Partially revised |
| Operating profit margin target | Not disclosed → 5.0% or more |
| ROE target | Not disclosed → At least 8.0% |
| ROIC target | Not disclosed → 7.0% or more |
| Payout ratio / DOE policy | A payout ratio of approximately 30% is the guideline. Stable dividends are the basic policy, and the company aims to increase dividends in line with earnings. Target period: Not disclosed. |
| Cost of capital | Cost of equity (CoE): approximately 7.9%. This is not WACC. |
| Self-assessment of PBR and share price | The PBR was 0.30x at the end of June 2026, and a PBR below 1x has become the norm. The company aims to establish a PBR of at least 1.0x over the medium to long term. |
| Total investment plan | Approximately ¥2.8 billion (investment candidates identified as of now) |
| Investment amount by sector | Field Domestic facilities, DX and production infrastructure / Amount Approximately ¥1.4 billion, Field Overseas growth investments and India / Amount Approximately ¥1.3 billion, Field Thailand and overseas capital investment / Amount Approximately ¥100 million |
| Plan assumptions | A risk-free rate of approximately 2.9% (the 10-year Japanese government bond yield at the end of August 2026), a beta of 1.0 and a market risk premium of approximately 5.0%. CoE = 2.9% + 1.0 × 5.0% = approximately 7.9%. The investment amounts and timing of implementation may change depending on the business environment, investment returns and financing conditions, among other factors. |
| Key initiatives | Shift toward high-value-added products (precision processing and components related to sensor and safety functions), Reduce manufacturing costs (investment in automation and labor saving), Establish mechanisms for passing through higher prices (including raw material surcharges), Develop new products using processing technologies for difficult-to-machine materials, Expand the overseas sales ratio (Thailand and India), Develop new customers and new applications, Review fixed costs, Consider optimizing and consolidating production sites, Improve operational efficiency through DX (use of IoT and AI), Optimize procurement costs (review the supply chain), Reduce cross-shareholdings (sales criteria based on quantitative evaluations), Address underutilized assets, Improve inventory turnover (appropriate inventory management), Allocate resources preferentially to growth investments and clarify investment discipline, Execute reductions in cross-shareholdings to create funds for growth investments, while reducing assets and introducing ROIC management, Strengthen KPI disclosures and IR while continuing the current shareholder return policy, Develop non-automotive businesses through M&A and alliances |
| Reason for revision or withdrawal | While continuing to use the action policy disclosed in August 2024 as the basic framework, the company will specify and further develop the measures based on their progress, changes in the external environment and discussions by the Board of Directors. |
| Risks identified | Structural changes in the automotive parts industry, Ability to pass on cost increases through pricing, Dependence on specific customers and business areas, Changes in the Business Environment, Investment returns, Financing conditions, Business risks |
| Date of board resolution | 31 August 2026 |
| Publication date | 31 August 2026 |
Items this document does not state (8)
Sales TargetOperating profit targetNet income targetTreasury share acquisition policySegment targetNon-financial targetsResults under the previous planSize of the Target Market
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.To specify and further develop the measures based on the implementation status of the initiatives disclosed in August 2024, changes in the external environment and discussions by the Board of Directors. The company will continue implementing the measures and disclosing progress, with an emphasis on the pace of improving capital efficiency and taking into account the delay in improving earnings power against the plan.
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