Worth reading
64In 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
5
¥100 million (total shareholder returns over 3 years)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedOperating profit+108.8%
基準 431Target900million
Operating profit margin+7.2pt
基準 4.8Target12%
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).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
Total investment planAmount ¥1 billion or more / Subject Three-year investment cash flow (including the carve-out)
Investment amount by sectorField Investment cash flow (including the carve-out) / Amount ¥1 billion or more
Statements about the use of capital
Payout ratio / DOE policyPolicy to set the total payout ratio for the fiscal year ending February 2029 at approximately 40%The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyOver the next 3 years, ELTES will return approximately ¥500 million in total to shareholders through a combination of dividends, shareholder benefits and share buybacks. It will consider share buybacks and cancellations, as well as the cancellation of some stock acquisition rights.
Self-assessment of PBR and share priceELTES recognizes that its business value is undervalued due to a conglomerate discount and a small-cap discount, while net debt of ¥1.8 billion is reducing its equity value. P/B ratio: Not disclosedPBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Expansion of the IRI business, a growth business
02Development of new growth businesses
03Portfolio Restructuring
04Execution of a disciplined financial strategy
05Human capital strategy aligned with the business strategy
06Strengthening dialogue with the market (IR)
07Operational Excellence
Plan assumptionsOperating cash flow of ¥450 million in the fiscal year ending February 2027, EBITDA of ¥920 million in the fiscal year ending February 2026 and forecast EBITDA of ¥700 million in the fiscal year ending February 2027, The average EV/EBITDA multiple for listed companies is approximately 8–10x
Risks identified by the company
Current assumptions regarding future events and trends may not necessarily be accurate
Actual results may differ from those described in this document for various reasons
EBITDA is expected to decline temporarily as a result of the carve-out
Reason for revision or withdrawal
ELTES recognized the need for fundamental management reform to ensure it meets the current Growth Market listing maintenance criteria. Based on progress in and the results of the carve-out, it has become possible to conduct specific simulations of changes to the balance sheet. ELTES decided to commit to shareholder returns and sustained EPS growth, centered on improving profitability and strengthening its financial base through portfolio reorganization.
| Item | Details |
|---|---|
| Plan name | Three-Year Management Plan / Eltes Lean Transformation — From Quantity to Quality — |
| Plan period | Fiscal years ending February 2027 to February 2029 |
| Progress against the plan | Formulated |
| Operating profit target | ¥431 million → ¥900 million（Approximately 108.8%） |
| Operating profit margin target | 4.8 % → 12.0% or more（Approximately 150% or more） |
| Payout ratio / DOE policy | Policy to set the total payout ratio for the fiscal year ending February 2029 at approximately 40% |
| Treasury share acquisition policy | Over the next 3 years, ELTES will return approximately ¥500 million in total to shareholders through a combination of dividends, shareholder benefits and share buybacks. It will consider share buybacks and cancellations, as well as the cancellation of some stock acquisition rights. |
| Self-assessment of PBR and share price | ELTES recognizes that its business value is undervalued due to a conglomerate discount and a small-cap discount, while net debt of ¥1.8 billion is reducing its equity value. P/B ratio: Not disclosed |
| Total investment plan | Amount ¥1 billion or more / Subject Three-year investment cash flow (including the carve-out) |
| Investment amount by sector | Field Investment cash flow (including the carve-out) / Amount ¥1 billion or more |
| Plan assumptions | Operating cash flow of ¥450 million in the fiscal year ending February 2027, EBITDA of ¥920 million in the fiscal year ending February 2026 and forecast EBITDA of ¥700 million in the fiscal year ending February 2027, The average EV/EBITDA multiple for listed companies is approximately 8–10x |
| Key initiatives | Expansion of the IRI business, a growth business, Development of new growth businesses, Portfolio Restructuring, Execution of a disciplined financial strategy, Human capital strategy aligned with the business strategy, Strengthening dialogue with the market (IR), Operational Excellence |
| Reason for revision or withdrawal | ELTES recognized the need for fundamental management reform to ensure it meets the current Growth Market listing maintenance criteria. Based on progress in and the results of the carve-out, it has become possible to conduct specific simulations of changes to the balance sheet. ELTES decided to commit to shareholder returns and sustained EPS growth, centered on improving profitability and strengthening its financial base through portfolio reorganization. |
| Risks identified | Current assumptions regarding future events and trends may not necessarily be accurate, Actual results may differ from those described in this document for various reasons, EBITDA is expected to decline temporarily as a result of the carve-out |
| Publication date | 25 June 2026 |
Items this document does not state (10)
Sales TargetNet income targetROE targetROIC targetCost of capitalSegment targetNon-financial targetsResults 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.ELTES recognizes the need for fundamental management reform to ensure it meets the current Growth Market listing maintenance criteria, and the progress of the carve-out has made it possible to forecast specific changes in its financial position. The company will work toward sustained growth in shareholder returns and EPS by improving profitability and strengthening its financial base through portfolio reorganization.
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.