Medium-term targets for the R&D investment ratio and operating margin
First written in FY2018. 6 of 12 entries say "Advanced", first in FY2019. Latest entry: FY2026.
The whole theme swung hardest in 2020: 1 of 7 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2026Lower R&D expense ratio and operating margin above targetAnnual report
「In the short term, the R&D expense ratio is expected to increase, but over the medium term, we intend to invest approximately 20–25% of revenue as revenue expands, while targeting an operating margin of at least 25%. In the current fiscal year, the core R&D expense ratio to revenue was 28.1% (29.4% in the previous fiscal year), the core operating margin was 26.6% (23.1%), and ROE was 8.5% (6.4%).」
The R&D expense ratio declined from 29.4% to 28.1% but remained above the target range, while the core operating margin increased from 23.1% to 26.6%, exceeding the target of at least 25%. - FY2026-H1R&D expenses and core operating profit both increased in the first halfAnnual report
「Core operating profit increased by ¥4.7 billion, or 7.2%, year on year to ¥70.1 billion. R&D expenses increased by ¥5.7 billion, or 8.8%, year on year to ¥71.0 billion, owing in part to expenses related to the drug discovery partnership with LigaChem and expenses related to Deciphera's R&D, which were recorded for 3 months (July–September) in the previous year and 6 months (April–September) in the current year.」
In the first half, R&D expenses were ¥71.0 billion and core operating profit was ¥70.1 billion, with both R&D investment and core operating profit increasing year on year. - FY2025Higher R&D expense ratio and lower operating marginAnnual report
「In the short term, the R&D expense ratio is expected to increase, but over the medium term, we intend to invest approximately 20–25% of revenue as revenue expands, while targeting an operating margin of at least 25%. In the current fiscal year, the core R&D expense ratio to revenue was 29.4% (21.6% in the previous fiscal year), the core operating margin was 23.1% (36.0%), and ROE was 6.4% (16.7%).」
The medium-term targets themselves were maintained, but the current-period R&D expense ratio was 29.4%, above the target range, while the operating margin was 23.1%, below the 25% target. - FY2024AdvancedAnnual report
「Over the medium term, although R&D expenses are expected to increase, we intend to invest approximately 20–25% of revenue as revenue expands, while targeting an operating margin of at least 25%. In the current fiscal year, the R&D expense ratio to revenue was 22.3% (21.3% in the previous fiscal year), the operating margin was 31.8% (31.7%), and ROE was 16.7% (16.1%).」
The R&D expense ratio was 22.3%, within the target range, while the operating margin was 31.8%, exceeding the target of at least 25%; ROE also increased to 16.7%. - FY2023RaisedAnnual report
「Over the medium term, although R&D expenses are expected to increase, we intend to invest approximately 20–25% of revenue as revenue expands, while targeting an operating margin of at least 25%.」
The medium-term operating margin target was raised from at least 20% to at least 25%. The target range for the R&D expense ratio was maintained at approximately 20–25%. - FY2022AdvancedAnnual report
「Over the medium term, although R&D expenses are expected to increase, we intend to invest approximately 20–25% of revenue as revenue expands, while targeting an operating margin of at least 20%. In the current fiscal year, the R&D expense ratio to revenue was 21.0% (20.2% in the previous fiscal year), the operating margin was 28.6% (31.8%), and ROE was 12.5% (12.6%).」
The R&D expense ratio was 21.0%, within the target range, while the operating margin was 28.6%, exceeding the target of at least 20%. - FY2021AdvancedAnnual report
「Over the medium term, although R&D expenses will increase, we aim to invest approximately 20–25% of revenue in R&D as revenue expands, while also targeting an operating margin of at least 20%. In the fiscal year, the R&D expense ratio was 20.2% of revenue, compared with 22.7% in the previous fiscal year, the operating margin was 31.8%, compared with 26.4%, and ROE was 12.6%, compared with 10.7%.」
Against the medium-term targets, the R&D expense ratio of 20.2% was within the target range, while the operating margin of 31.8% exceeded the target of at least 20%. ROE also improved to 12.6%. - FY2020AdvancedAnnual report
「Over the medium term, although R&D expenses will increase, we aim to invest approximately 20–25% of revenue in R&D as revenue expands, while also targeting an operating margin of at least 20%. In the fiscal year, the R&D expense ratio was 22.7% of revenue, compared with 24.3% in the previous fiscal year, the operating margin was 26.4%, compared with 21.5%, and ROE was 10.7%, compared with 9.5%.」
Against the medium-term targets, the R&D expense ratio was 22.7% and the operating margin was 26.4% in the fiscal year, with both actual results within or above the stated levels and range. - FY2019AdvancedAnnual report
「Over the medium term, although R&D expenses will increase, we aim to invest approximately 20–25% of revenue in R&D as revenue expands, while also targeting an operating margin of at least 20%. In the fiscal year ended March 2019, the R&D expense ratio was 24.3% of revenue, compared with 26.3% in the previous fiscal year, the operating margin was 21.5%, compared with 23.2%, and ROE was 9.5%, compared with 9.6%.」
Against the medium-term targets, the R&D expense ratio was 24.3% and the operating margin was 21.5% in the fiscal year ended March 2019, providing comparable actual results against the target range and levels for the first time. - FY2018First statedAnnual report
「Over the medium term, although R&D expenses will increase, we aim to invest approximately 20–25% of revenue in R&D as revenue expands, while also targeting an operating margin of at least 20%.」
For the first time, the company explicitly stated medium-term numerical targets of approximately 20–25% of revenue for R&D expenses and an operating margin of at least 20%.