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Management planning3948HIKARI BUSINESS FORM CO.,LTD.Materials and Chemicals

Notice Regarding the Revision of the Medium-Term Management Plan

The current medium-term management plan covering the fiscal years ending December 2024 through December 2026 has been reviewed and replaced with a new three-year plan covering the fiscal years ending December 2026 through December 2028. The Company has revised its business expansion strategy and will focus on improving earnings power starting with DPP and achieving a dividend of ¥60 per share for the fiscal year ending December 2028.

Worth reading
65In focus
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
-300
¥ million (operating profit target: ¥800 million before the review → ¥500 million target for 2028)
Wording
Conditional
How definitive the wording is.

Items stated in the management plan

Partially revised
2026–2028 Medium-Term Management PlanPlan period 1 January 2026–31 December 2028
Publication date 12 June 2026
Net Sales-7.8%
基準 9,000Target8,300million
Operating profit-37.5%
基準 800Target500million
Operating profit margin-3.0pt
基準 9Target6Percentage points

Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).

Investment amount by sectorField Investment to strengthen human capital / Amount Not disclosed, Field Investment to strengthen security / Amount Not disclosed, Field Investment in strategically prioritized areas to improve quality and productivity / Amount Not disclosed
Statements about the use of capital
Treasury share acquisition policyStrategically acquire treasury shares as necessary
Self-assessment of PBR and share priceGradually strengthen shareholder returns with the aim of achieving a PBR of 1xPBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Expand businesses in priority areas by product category
02Develop environmentally responsible businesses
03Advance initiatives to strengthen human capital
04Strengthen information disclosure
05Invest to achieve sustainable growth
06Strengthen shareholder returns with the aim of achieving a PBR of 1x
Plan assumptionsMarket contraction due to the shift toward paperless operations and other factors, Higher procurement costs due to rising raw material and fuel prices, Continuing labor shortages and demand for outsourcing among public-sector organizations and private companies, An uncertain outlook for global affairs
Segment targetSegment Printing-related / 2028 sales target ¥2,425 million, Segment DPP / 2028 sales target ¥4,975 million, Segment WEB / 2028 sales target ¥250 million, Segment BPO / 2028 sales target ¥650 million
Non-financial targetsIndicator CO2 emissions associated with electricity, fuel and other energy use at the new Solutions Center / Target value Net zero / Timing Not disclosed
Risks identified by the company
Market contraction due to the shift toward paperless operations and other factors
Rising Raw Material and Construction Material Costs
Rising logistics and energy costs
Intensifying competition to secure labor due to population decline
Rising labor and personnel expenses
An uncertain outlook for global affairs
Reason for revision or withdrawal

Conditions arose that differed substantially from the assumptions made when the plan was initially formulated. Demand for paper-based information transmission persisted, and the business did not contract as quickly as anticipated. Winning projects with no track record in web and BPO services did not lead to significant sales growth, while rising raw material and supply prices, logistics and energy costs, and labor and personnel expenses made it difficult to secure earnings.

Items stated in the management plan
ItemDetails
Plan name2026–2028 Medium-Term Management Plan
Plan period1 January 2026–31 December 2028
Progress against the planPartially revised
Sales Target¥9,000 million → ¥8,300 million(-7.8%)
Operating profit target¥800 million → ¥500 million(-37.5%)
Operating profit margin target9 Percentage points → 6 Percentage points(-33.3%)
Treasury share acquisition policyStrategically acquire treasury shares as necessary
Self-assessment of PBR and share priceGradually strengthen shareholder returns with the aim of achieving a PBR of 1x
Investment amount by sectorField Investment to strengthen human capital / Amount Not disclosed, Field Investment to strengthen security / Amount Not disclosed, Field Investment in strategically prioritized areas to improve quality and productivity / Amount Not disclosed
Segment targetSegment Printing-related / 2028 sales target ¥2,425 million, Segment DPP / 2028 sales target ¥4,975 million, Segment WEB / 2028 sales target ¥250 million, Segment BPO / 2028 sales target ¥650 million
Non-financial targetsIndicator CO2 emissions associated with electricity, fuel and other energy use at the new Solutions Center / Target value Net zero / Timing Not disclosed
Plan assumptionsMarket contraction due to the shift toward paperless operations and other factors, Higher procurement costs due to rising raw material and fuel prices, Continuing labor shortages and demand for outsourcing among public-sector organizations and private companies, An uncertain outlook for global affairs
Key initiativesExpand businesses in priority areas by product category, Develop environmentally responsible businesses, Advance initiatives to strengthen human capital, Strengthen information disclosure, Invest to achieve sustainable growth, Strengthen shareholder returns with the aim of achieving a PBR of 1x
Reason for revision or withdrawalConditions arose that differed substantially from the assumptions made when the plan was initially formulated. Demand for paper-based information transmission persisted, and the business did not contract as quickly as anticipated. Winning projects with no track record in web and BPO services did not lead to significant sales growth, while rising raw material and supply prices, logistics and energy costs, and labor and personnel expenses made it difficult to secure earnings.
Risks identifiedMarket contraction due to the shift toward paperless operations and other factors, Rising Raw Material and Construction Material Costs, Rising logistics and energy costs, Intensifying competition to secure labor due to population decline, Rising labor and personnel expenses, An uncertain outlook for global affairs
Publication date12 June 2026
Items this document does not state (9)
Net income targetROE targetROIC targetPayout ratio / DOE policyCost of capitalTotal investment planResults under the previous planSize of the Target MarketDate 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.

Conditions arose that differed substantially from the assumptions made when the plan was initially formulated. Demand for paper-based information transmission did not decline as quickly as anticipated, and winning projects with no track record in web and BPO services did not lead to significant sales growth. In addition, rising raw material and supply prices, logistics and energy costs, and labor and personnel expenses made it difficult to secure earnings. The Company will therefore strengthen its near-term earnings power and build a sustainable earnings base.

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Notice Regarding the Revision of the Medium-Term Management Plan | HIKARI BUSINESS FORM CO.,LTD. (3948) timely disclosure | Komori