Worth reading
85Important
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
1.3
¥1 trillion (fiscal 2035 revenue target)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.5%
基準 2,025Target2,035100 million; ¥1 trillion
Operating profit+0.5%
基準 2,025Target2,035Hundreds of millions of yen
Operating profit margin+10.0pt
基準 2,025Target2,035%
Net income for the current fiscal year+0.5%
基準 2,025Target2,035Hundreds of millions of yen
ROE+10.0pt
基準 2,025Target2,035%
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.
What happened to the previous planRevenue of ¥600.0 billion, operating profit of ¥90.0 billion, net income of ¥60.0 billion, EPS of ¥200 and ROE of 10% (fiscal 2025 Vision targets) → Revenue of ¥670.1 billion, operating profit of ¥95.0 billion, net income of ¥59.9 billion, EPS of ¥206 and ROE of 7.8% (fiscal 2025 actual)0.0%Calculated from the two disclosed figures
Total investment plan¥1 trillion or more (cash inflows and outflows for fiscal 2026–2030)
Investment amount by sectorField Research and development costs / Amount ¥200.0 billion (cumulative for fiscal 2026–2030), Field Capital Expenditure / Amount ¥450.0 billion (cumulative for fiscal 2026–2030), Field Growth investment and SPE within capital investment / Amount ¥150 billion, Field Growth investment in electronics and other areas within capital investment / Amount ¥150 billion, Field Strategic investment, shareholder returns and other items / Amount ¥350 billion
Statements about the use of capital
Payout ratio / DOE policyDOE of 3.5% and a dividend payout ratio of at least 35% as a guideline, based on single-year results and the average results for the past 3 fiscal years. The target period is the fiscal 2026–2030 cash allocation plan.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 policyShare repurchases and cancellations will be carried out flexibly, taking into account business conditions and cash on hand.
Key initiatives
01Improving Profitability
02Research and development
03Bringing products to market
04Promoting DX
05Sustainability Management
06Business portfolio centered on growth fields
07Business revitalization and withdrawal review process
08Enhancing competitiveness through DX, including the use of AI
09Enhancing corporate value based on social issues
10Further initiatives addressing climate change
11Promoting Human Capital Management
12NGK's value added: toward enhancing corporate value
Plan assumptionsItem Exchange rate / Assumptions ¥140 per dollar; ¥165 per euro / Timing FY2030, Item Growth rate in the DS field / Assumptions CAGR 11% / Timing Fiscal 2025–2035, Item Automotive market / Assumptions EV demand will continue to expand, although growth will slow, while demand for internal-combustion-engine vehicles, including hybrids and plug-in hybrids, will remain at a high level / Timing Medium- to Long-Term Outlook, Item CO2 emissions cost / Assumptions Calculated using an ICP of $140/tCO2 / Timing Not disclosed
Segment targetSegment DS business / Target Revenue scale of approximately 3 times the fiscal 2025 level by 2035, Segment Ceramics for semiconductor manufacturing equipment / Target Increase production capacity by approximately 20%, Segment High-Ceram carriers / Target Increase production capacity by approximately 3 times and target revenue of ¥25.0 billion in fiscal 2030
Non-financial targetsIndicator Scope 1 and 2 GHG emissions / Target 50% reduction from fiscal 2013 / Timing FY2030, Indicator Scope 3 GHG emissions / Target 25% reduction from fiscal 2022 / Timing FY2030, Indicator Scope 1 and 2 GHG emissions / Target Net zero / Timing FY2050, Indicator Scope 3 GHG emissions / Target At least 90% reduction from fiscal 2022 / Timing FY2050, Indicator Challenge score in the survey of challenging corporate culture and organizational vitality / Target At least 3.8 (on a 5-point scale) / Timing Fiscal 2030 onward, Indicator Percentage of Female Managers / Target 10% / Timing FY2030, Indicator Data professionals / Target 1,000 people / Timing 2030
Size of the Target MarketThe DS field revenue trend illustration states a CAGR of 11%. Market size and source: Not disclosed.
Risks identified by the company
Economic Environment
Competitive conditions
Demand Trends
Changes in policy trends in each country
Delays in the adoption of renewable energy and decarbonization
Continued inflation concerns
Reviews of economic security policies
Delays in EV adoption and changes in automotive demand
Delays in institutional development and market formation in the CN field
Potential delays in the 1.5°C–2°C climate change scenario
Potential for actual results to differ significantly from the plan
Reason for revision or withdrawal
In the DS field, the adoption of digital technologies, including AI, is advancing at a faster pace than expected, while in the CN field, institutional development and market formation for social implementation have not progressed as expected. In light of these conditions, an ambitious long-term management plan was formulated to make the transformation of the business portfolio more certain, positioning 2035 as an interim target on the Road to 2050.
| Item | Details |
|---|---|
| Plan name | Long-Term Management Plan 2026-2035 |
| Plan period | Fiscal years 2026-2035 |
| Progress against the plan | Formulated |
| Sales Target | ¥670.1 billion (fiscal 2025 actual) → ¥1.3 trillion (fiscal 2035 target) |
| Operating profit target | ¥95.0 billion (fiscal 2025 actual) → ¥150.0 billion (fiscal 2030 target; no fiscal 2035 target stated) |
| Operating profit margin target | 14.2% (fiscal 2025 actual) → 16.7% (fiscal 2030 target; no fiscal 2035 target stated) |
| Net income target | ¥59.9 billion (fiscal 2025 actual) → ¥100.0 billion (fiscal 2030 target; no fiscal 2035 target stated) |
| ROE target | 7.8% (fiscal 2025 actual) → At least 12% (fiscal 2035 target) |
| Payout ratio / DOE policy | DOE of 3.5% and a dividend payout ratio of at least 35% as a guideline, based on single-year results and the average results for the past 3 fiscal years. The target period is the fiscal 2026–2030 cash allocation plan. |
| Treasury share acquisition policy | Share repurchases and cancellations will be carried out flexibly, taking into account business conditions and cash on hand. |
| Total investment plan | ¥1 trillion or more (cash inflows and outflows for fiscal 2026–2030) |
| Investment amount by sector | Field Research and development costs / Amount ¥200.0 billion (cumulative for fiscal 2026–2030), Field Capital Expenditure / Amount ¥450.0 billion (cumulative for fiscal 2026–2030), Field Growth investment and SPE within capital investment / Amount ¥150 billion, Field Growth investment in electronics and other areas within capital investment / Amount ¥150 billion, Field Strategic investment, shareholder returns and other items / Amount ¥350 billion |
| Segment target | Segment DS business / Target Revenue scale of approximately 3 times the fiscal 2025 level by 2035, Segment Ceramics for semiconductor manufacturing equipment / Target Increase production capacity by approximately 20%, Segment High-Ceram carriers / Target Increase production capacity by approximately 3 times and target revenue of ¥25.0 billion in fiscal 2030 |
| Non-financial targets | Indicator Scope 1 and 2 GHG emissions / Target 50% reduction from fiscal 2013 / Timing FY2030, Indicator Scope 3 GHG emissions / Target 25% reduction from fiscal 2022 / Timing FY2030, Indicator Scope 1 and 2 GHG emissions / Target Net zero / Timing FY2050, Indicator Scope 3 GHG emissions / Target At least 90% reduction from fiscal 2022 / Timing FY2050, Indicator Challenge score in the survey of challenging corporate culture and organizational vitality / Target At least 3.8 (on a 5-point scale) / Timing Fiscal 2030 onward, Indicator Percentage of Female Managers / Target 10% / Timing FY2030, Indicator Data professionals / Target 1,000 people / Timing 2030 |
| Plan assumptions | Item Exchange rate / Assumptions ¥140 per dollar; ¥165 per euro / Timing FY2030, Item Growth rate in the DS field / Assumptions CAGR 11% / Timing Fiscal 2025–2035, Item Automotive market / Assumptions EV demand will continue to expand, although growth will slow, while demand for internal-combustion-engine vehicles, including hybrids and plug-in hybrids, will remain at a high level / Timing Medium- to Long-Term Outlook, Item CO2 emissions cost / Assumptions Calculated using an ICP of $140/tCO2 / Timing Not disclosed |
| Key initiatives | Improving Profitability, Research and development, Bringing products to market, Promoting DX, Sustainability Management, Business portfolio centered on growth fields, Business revitalization and withdrawal review process, Enhancing competitiveness through DX, including the use of AI, Enhancing corporate value based on social issues, Further initiatives addressing climate change, Promoting Human Capital Management, NGK's value added: toward enhancing corporate value |
| Results under the previous plan | Revenue of ¥600.0 billion, operating profit of ¥90.0 billion, net income of ¥60.0 billion, EPS of ¥200 and ROE of 10% (fiscal 2025 Vision targets) → Revenue of ¥670.1 billion, operating profit of ¥95.0 billion, net income of ¥59.9 billion, EPS of ¥206 and ROE of 7.8% (fiscal 2025 actual) |
| Reason for revision or withdrawal | In the DS field, the adoption of digital technologies, including AI, is advancing at a faster pace than expected, while in the CN field, institutional development and market formation for social implementation have not progressed as expected. In light of these conditions, an ambitious long-term management plan was formulated to make the transformation of the business portfolio more certain, positioning 2035 as an interim target on the Road to 2050. |
| Size of the Target Market | The DS field revenue trend illustration states a CAGR of 11%. Market size and source: Not disclosed. |
| Risks identified | Economic Environment, Competitive conditions, Demand Trends, Changes in policy trends in each country, Delays in the adoption of renewable energy and decarbonization, Continued inflation concerns, Reviews of economic security policies, Delays in EV adoption and changes in automotive demand, Delays in institutional development and market formation in the CN field, Potential delays in the 1.5°C–2°C climate change scenario, Potential for actual results to differ significantly from the plan |
| Publication date | 28 May 2026 |
Items this document does not state (4)
ROIC targetCost of capitalSelf-assessment of PBR and share priceDate 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.While the adoption of digital technologies has exceeded expectations, institutional development and market formation for social implementation in the carbon-neutral field have not progressed as expected. Accordingly, a plan was formulated to make the transformation of the business portfolio more certain, positioning 2035 as an interim target on the Road to 2050.
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