Improving earnings power and capital efficiency with a medium- to long-term focus on ROE of 10% or higher
First written in FY2017. 4 of 13 entries say "Worsened", first in FY2019. Latest entry: FY2026.
Ngk moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 26 of 115 companies on the "Worse" side.
25 other companies' latest entry also says "Raised".
- FY2026RaisedAnnual report
「ROE for the fiscal year was 7.8%, unchanged from the previous fiscal year, as the increase in net income attributable to owners of the parent was offset by an increase in equity. Although this was below the target of 10% or higher, we will work to continuously improve and raise ROE toward the target of 12% for FY2030 by expanding earnings in the Digital Society business, which we have positioned as a growth area for the Group.」
Actual ROE was 7.8%, below the 10% target, while the FY2030 target is 12%, with expansion of earnings in the Digital Society business as the means of achieving it. - FY2025ROE improved but remained below the targetAnnual report
「ROE for the fiscal year was 7.8%, an improvement of 1.7 percentage points year on year, due in part to higher net income attributable to owners of the parent. Although this was below the target of 10% or higher, we will work to improve and raise ROE through greater capital efficiency and other measures.」
ROE improved from 6.1% to 7.8% but remained below the medium- to long-term target of 10% or higher. - FY2024WorsenedAnnual report
「ROE for the fiscal year was 6.1%, a deterioration of 2.9 percentage points year on year, due in part to lower net income attributable to owners of the parent. This was below the target of 10% or higher.」
ROE declined from 9.0% in the previous fiscal year to 6.1% and remained below the medium- to long-term target of 10% or higher. - FY2023WorsenedAnnual report
「ROE for the fiscal year was 9.0%, a deterioration of 3.9 percentage points year on year, due in part to lower net income attributable to owners of the parent. This was below the target of 10% or higher.」
ROE declined from 12.9% in the previous fiscal year to 9.0%, falling below the medium- to long-term target of 10% or higher. - FY2022AchievedAnnual report
「ROE for the fiscal year was 12.9%, an improvement of 5.0 percentage points year on year, due in part to higher net income attributable to owners of the parent. Although ROE recovered to 10% or higher, we will continue working to maintain and improve this indicator.」
ROE improved from 7.9% in the previous fiscal year to 12.9%, recovering to the medium- to long-term target of 10% or higher. - FY2021ROE improved but remained below the targetAnnual report
「ROE for the fiscal year was 7.9%, an improvement of 2.1 percentage points year on year, due in part to higher net income attributable to owners of the parent. Although this was below the target of 10%, we will continue working to maintain and improve this indicator.」
ROE improved from 5.8% to 7.9% but remained below the medium- to long-term target of 10%. - FY2020WorsenedAnnual report
「ROE for the fiscal year was 5.8%, a deterioration of 1.8 percentage points year on year, due in part to lower operating profit and the recognition of impairment losses. Although this was below the target of 10%, we will continue working to maintain and improve this indicator.」
ROE declined from 7.6% in the previous fiscal year to 5.8%, falling further below the 10% target. - FY2019WorsenedAnnual report
「ROE for the fiscal year was 7.6%, a deterioration of 2.9 percentage points year on year, due to the recognition of impairment losses and other extraordinary losses, including losses on businesses of affiliated companies. Although this was below the target of 10%, we will continue working to maintain and improve this indicator.」
ROE was 7.6% in the current fiscal year, down from 10.4% in the previous fiscal year, falling below the target of 10% or higher. - FY2018AchievedAnnual report
「ROE for the fiscal year was 10.4%, an improvement of 1.6 percentage points year on year. Although the target of 10% or higher was achieved, we will continue working to maintain and improve this indicator.」
The company explicitly stated that the medium- to long-term target of ROE of 10% or higher was achieved with ROE of 10.4% in FY2018. - FY2017First statedAnnual report
「With a medium- to long-term focus on maintaining ROE of 10% or higher, we will work to improve earnings power by efficiently allocating management resources to expanding existing core businesses and launching new businesses, while also pursuing further improvements in capital efficiency.」
The company has set ROE of 10% or higher as a key management indicator, with resource allocation to expanding existing core businesses and launching new businesses as the means of achieving it.