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How definitive the wording is.Items stated in the management plan
Annual updateROE+2.0pt
基準 2,026Target2,028％
ROIC+2.0pt
基準 2,026Target2,028％
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).
What happened to the previous planFY2030 targets: 80.0% next-generation management talent, 30.0% diverse attributes among management-level employees, and an 80.0% positive engagement response rate → FY2025 results: 71.7% next-generation management talent, 28.8% diverse attributes among management-level employees, and a 74.4% positive engagement response rate-0.2%Calculated from the two disclosed figures
Total investment planApproximately ¥500 billion in cash outlays (cumulative for FY2026–FY2028, including growth investment, maintenance and replacement investment, shareholder returns, and repayment of interest-bearing debt)
Investment amount by sectorField Growth Investment / Amount ¥64.0 billion (FY2026 forecast) / Stake 30％, Field Maintenance and replacement investments / Amount ¥52.0 billion (FY2026 forecast) / Stake 30％, Field Focused investment in the Materials segment / Amount Not disclosed / Stake 70% of combined growth investment and maintenance and replacement investment
Statements about the use of capital
Payout ratio / DOE policyDuring the Medium-Term Management Strategy period (FY2026–FY2028), the company will adopt a dividend policy targeting a DOE of 2.5%, balancing growth investment with shareholder returns. Under the previous Medium-Term Management Strategy 2030 Phase 1, the company targeted a payout ratio of 30%.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 policyThe company will consider share buybacks flexibly, taking into account its cash flow position, share price level, and the likelihood of achieving its target financial position during the Medium-Term Management Strategy period.
Cost of capitalWACC approximately 5% (overall); WACC by business: approximately 5.9% (Materials), approximately 3.1% (copper products), approximately 9.8% (cemented carbide products), approximately 7.0% (high-performance products), approximately 9.6% (resource business), and approximately 2.5% (renewable energy business)The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Key initiatives
01Expand the resource recycling business globally
02Expand secondary raw material smelting and double E-Scrap processing volumes
03Achieve a 100% tungsten recycling rate
04Joint procurement of copper concentrate
05Further reduce copper concentrate processing and shift to secondary raw material smelting
06Build collection networks across Europe, the United States, and Asia
07Integrate the businesses involved in purchasing copper concentrate and selling electrolytic copper and other products derived from copper concentrate
08Increase tungsten recycling volumes at the European site (H.C. Starck) by 1.5 times
09Expand the recycling business by establishing a new recycling site in the United States
10Increase tungsten collection by utilizing E-Scrap collection routes
11Shift to Higher-Value-Added Products
12Integrate production-site organizations
13Optimize the portfolio
14Consolidate sites and streamline the organization and workforce
15Improve the profitability of existing interests
16Increase the ratio of attributable copper volume to the company's processing volume
17Develop technologies to mitigate increases in copper mine development and operating costs
18Strengthen and improve the efficiency of existing power plants
19Develop new sites by leveraging comprehensive geothermal development capabilities
20Expand business scope and diversify earnings by entering the onshore wind power and electricity retail businesses
21Strengthening existing businesses
22Create value in growth areas
23Redesign development functions
24Roll out generative AI and provide AI literacy training
Plan assumptionsDollar exchange rate (yen/$): 150 (FY2026 forecast and FY2028 target); copper price (¢/lb): 500 (FY2026 forecast and FY2028 target)
Segment targetSegment Materials segment (smelting and resource recycling) / Indicator ROIC / Target At least 6.0% (FY2028 plan), Segment Materials segment (copper products) / Indicator ROIC / Target At least 4.0% (FY2028 plan), Segment Products segment (cemented carbide products) / Indicator ROIC / Target At least 10.0% (FY2028 plan), Segment Products segment (high-performance products) / Indicator ROIC / Target At least 7.0% (FY2028 plan), Segment Resources Business / Indicator ROIC / Target At least 30.0% (FY2028 plan), Segment Renewable energy business / Indicator ROIC / Target At least 4.0% (FY2028 plan)
Non-financial targetsIndicator Percentage of executive successor candidates selected for the next-generation management talent development program / Target 80.0％ / Timing FY2030, Indicator Percentage of diverse attributes among management-level employees / Target 30.0％ / Timing FY2030, Indicator Positive response rate across all engagement survey questions / Target 80.0％ / Timing FY2030, Indicator Tungsten recycling rate / Target 100％ / Timing Not disclosed, Indicator Share of sales of cutting tools for the aerospace industry / Target 11％ / Timing FY2030, Indicator Share of sales of cutting tools for medical applications / Target 6％ / Timing FY2030, Indicator Share of sales of cutting tools for molds and dies / Target 18％ / Timing FY2030, Indicator Share of sales of cutting tools for the automotive industry / Target 22％ / Timing FY2030, Indicator Advanced digital talent (advanced level) / Target 400 people / Timing FY2030, Indicator Advanced digital talent (intermediate level) / Target 2,600 / Timing FY2030
Risks identified by the company
Continued low TC/RCs
Competition to secure critical minerals
Rising geopolitical risks
Political and regulatory risks in resource-rich countries
Supply chain disruption and uncertainty
Geographical concentration of ore resources
Emergence of competitors in Asia
Aging manufacturing equipment
Actual results may differ materially from the earnings forecast due to various risk factors and uncertainties
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Strategy (FY2026–FY2028) |
| Plan period | Fiscal years 2026-2028 |
| Progress against the plan | Annual update |
| ROE target | 6.8% (FY2026 forecast) → At least 8.0% (fiscal 2028 target) |
| ROIC target | 6.7% (FY2026 forecast) → At least 7.0% (FY2028 target) |
| Payout ratio / DOE policy | During the Medium-Term Management Strategy period (FY2026–FY2028), the company will adopt a dividend policy targeting a DOE of 2.5%, balancing growth investment with shareholder returns. Under the previous Medium-Term Management Strategy 2030 Phase 1, the company targeted a payout ratio of 30%. |
| Treasury share acquisition policy | The company will consider share buybacks flexibly, taking into account its cash flow position, share price level, and the likelihood of achieving its target financial position during the Medium-Term Management Strategy period. |
| Cost of capital | WACC approximately 5% (overall); WACC by business: approximately 5.9% (Materials), approximately 3.1% (copper products), approximately 9.8% (cemented carbide products), approximately 7.0% (high-performance products), approximately 9.6% (resource business), and approximately 2.5% (renewable energy business) |
| Total investment plan | Approximately ¥500 billion in cash outlays (cumulative for FY2026–FY2028, including growth investment, maintenance and replacement investment, shareholder returns, and repayment of interest-bearing debt) |
| Investment amount by sector | Field Growth Investment / Amount ¥64.0 billion (FY2026 forecast) / Stake 30％, Field Maintenance and replacement investments / Amount ¥52.0 billion (FY2026 forecast) / Stake 30％, Field Focused investment in the Materials segment / Amount Not disclosed / Stake 70% of combined growth investment and maintenance and replacement investment |
| Segment target | Segment Materials segment (smelting and resource recycling) / Indicator ROIC / Target At least 6.0% (FY2028 plan), Segment Materials segment (copper products) / Indicator ROIC / Target At least 4.0% (FY2028 plan), Segment Products segment (cemented carbide products) / Indicator ROIC / Target At least 10.0% (FY2028 plan), Segment Products segment (high-performance products) / Indicator ROIC / Target At least 7.0% (FY2028 plan), Segment Resources Business / Indicator ROIC / Target At least 30.0% (FY2028 plan), Segment Renewable energy business / Indicator ROIC / Target At least 4.0% (FY2028 plan) |
| Non-financial targets | Indicator Percentage of executive successor candidates selected for the next-generation management talent development program / Target 80.0％ / Timing FY2030, Indicator Percentage of diverse attributes among management-level employees / Target 30.0％ / Timing FY2030, Indicator Positive response rate across all engagement survey questions / Target 80.0％ / Timing FY2030, Indicator Tungsten recycling rate / Target 100％ / Timing Not disclosed, Indicator Share of sales of cutting tools for the aerospace industry / Target 11％ / Timing FY2030, Indicator Share of sales of cutting tools for medical applications / Target 6％ / Timing FY2030, Indicator Share of sales of cutting tools for molds and dies / Target 18％ / Timing FY2030, Indicator Share of sales of cutting tools for the automotive industry / Target 22％ / Timing FY2030, Indicator Advanced digital talent (advanced level) / Target 400 people / Timing FY2030, Indicator Advanced digital talent (intermediate level) / Target 2,600 / Timing FY2030 |
| Plan assumptions | Dollar exchange rate (yen/$): 150 (FY2026 forecast and FY2028 target); copper price (¢/lb): 500 (FY2026 forecast and FY2028 target) |
| Key initiatives | Expand the resource recycling business globally, Expand secondary raw material smelting and double E-Scrap processing volumes, Achieve a 100% tungsten recycling rate, Joint procurement of copper concentrate, Further reduce copper concentrate processing and shift to secondary raw material smelting, Build collection networks across Europe, the United States, and Asia, Integrate the businesses involved in purchasing copper concentrate and selling electrolytic copper and other products derived from copper concentrate, Increase tungsten recycling volumes at the European site (H.C. Starck) by 1.5 times, Expand the recycling business by establishing a new recycling site in the United States, Increase tungsten collection by utilizing E-Scrap collection routes, Shift to Higher-Value-Added Products, Integrate production-site organizations, Optimize the portfolio, Consolidate sites and streamline the organization and workforce, Improve the profitability of existing interests, Increase the ratio of attributable copper volume to the company's processing volume, Develop technologies to mitigate increases in copper mine development and operating costs, Strengthen and improve the efficiency of existing power plants, Develop new sites by leveraging comprehensive geothermal development capabilities, Expand business scope and diversify earnings by entering the onshore wind power and electricity retail businesses, Strengthening existing businesses, Create value in growth areas, Redesign development functions, Roll out generative AI and provide AI literacy training |
| Results under the previous plan | FY2030 targets: 80.0% next-generation management talent, 30.0% diverse attributes among management-level employees, and an 80.0% positive engagement response rate → FY2025 results: 71.7% next-generation management talent, 28.8% diverse attributes among management-level employees, and a 74.4% positive engagement response rate |
| Risks identified | Continued low TC/RCs, Competition to secure critical minerals, Rising geopolitical risks, Political and regulatory risks in resource-rich countries, Supply chain disruption and uncertainty, Geographical concentration of ore resources, Emergence of competitors in Asia, Aging manufacturing equipment, Actual results may differ materially from the earnings forecast due to various risk factors and uncertainties |
| Publication date | 19 May 2026 |
Items this document does not state (8)
Sales TargetOperating profit targetOperating profit margin targetNet income targetSelf-assessment of PBR and share priceReason for revision or withdrawalSize 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.Structural changes in the external environment, including continued low TC/RCs, rising E-Scrap generation, competition to secure critical minerals, increasing geopolitical risks, and growing demand for intra-regional circulation, are accelerating the shift toward the resource recycling business. The company also expects profit to decline temporarily in FY2026 as it advances fundamental structural reforms.
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