Worth reading
69In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
1000
¥100 million (fiscal 2030 revenue target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales-95.1%
基準 2,025Target100Hundreds of millions of yen
Operating profit-99.0%
基準 2,025Target20Hundreds of millions of yen
Operating profit margin-2,005.0pt
基準 2,025Target20%
ROE-2,005.0pt
基準 2,025Target20%
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.
ROICNot disclosed → 20%（ROE／ROIC）
Only the target level is shown because the current level for comparison was not provided.Total investment plan¥54 billion (¥11 billion in investment cash flow + ¥35 billion in titanium capacity expansion investment + ¥8 billion in investment cash flow during the harvesting phase)
Investment amount by sectorField Titanium capacity expansion investment / Amount ¥35.0 billion, Field Other investments / Amount ¥11 billion, Field Investment cash flow during the harvesting phase / Amount ¥8 billion
Statements about the use of capital
Payout ratio / DOE policySpecific targets for the payout ratio and DOE: not disclosed. Shareholder returns will be ¥3 billion during the investment phase, and the company will consider enhancing shareholder returns during the harvesting phase. The target period is within the plan period.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of shareholders' equity: 8.6%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe average PBR since before the COVID-19 pandemic has exceeded 2.1x, which the company analyzes as reflecting high expectations from the market. The company aims to maintain and increase its high PBR. Market capitalization was ¥91.4 billion at the end of fiscal 2025, and the company aims to reach ¥150 billion in fiscal 2030.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Sustainable growth of the titanium business
02Business Portfolio Transformation
03Advance the green transformation (GX)
04Promoting Human Capital Management
05Promotion of DX
06Financial Strategy
07Construct and commence production at a new sponge titanium plant (fiscal 2028)
08Optimize sponge titanium sales prices
09Increase the innovation development ratio
10Continue decarbonizing manufacturing processes
11Secure personnel capable of addressing management issues
12Secure funding for titanium capacity expansion investment
13Strengthen IR and SR
14Further improve the quality of high-purity titanium
15Expand sales by improving the productivity of titanium tetrachloride
16Enter high-value-added markets for titanium alloy powders
17Establish a commercial production system for SiO anode materials
18Promote open innovation in new businesses
19Enter new businesses in the environmental sector
20Promote data-driven management through the renewal of core systems
Plan assumptionsDemand for rolled products for commercial aircraft is expected to continue growing at an annual rate of 6% (company estimate)., Expand sponge titanium supply capacity from 40,000 t/y to 50,000 t/y., Increase the company's market share of sponge titanium for aircraft from an estimated 40% in fiscal 2025 to 50% in fiscal 2030.
Segment targetSegment Titanium Business / Sales Target ¥85 billion / Profit Target ROS20% / Timing FY2030, Segment High-performance materials business / Sales Target ¥15 billion / Profit Target ROS of at least 30% / Timing FY2030
Non-financial targetsIndicator Sponge titanium production capacity / Target value From 40,000 t/y to 50,000 t/y / Timing Toward fiscal 2030, Indicator Market share of sponge titanium for aircraft / Target value 50% / Timing FY2030, Indicator CO2 emissions reduction / Target value 46% versus fiscal 2013 / Timing Not disclosed, Indicator Labor productivity / Target value 10% improvement / Timing Not disclosed, Indicator Company-wide data platform / Target value Completed and in use / Timing FY2028, Indicator Application of the latest technologies to operations / Target value At least 5 projects per year / Timing Not disclosed, Indicator User satisfaction with the core system at launch / Target value At least 80% / Timing Not disclosed, Indicator Innovation development ratio / Target value 50% or higher / Timing FY2028, Indicator Personnel capable of addressing management issues / Target value 10 people / Timing FY2030, Indicator Engagement score / Target value Increase / Timing Not disclosed
Size of the Target MarketDemand for rolled products for commercial aircraft is expected to grow at an annual rate of 6% through fiscal 2030 compared with fiscal 2019. Sources: "company estimate based on production volumes announced by major aircraft manufacturers" and "company estimate based on materials released by OEM aircraft-related manufacturers." Market size by value: not disclosed.
Risks identified by the company
Rising geopolitical risks
Rise in raw material and fuel prices
Dependence on the aviation industry
Increasing costs of environmental measures
Labor shortages and the risk of disruption to the transfer of skills
Intensifying price competition with China (sponge titanium for general industry)
Securing funds required for large-scale investment
Management Conscious of the Cost of Capital and Share Price
Reason for revision or withdrawal
Not disclosed (the company has formulated a new medium-term management plan rather than revising or withdrawing the existing plan).
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan "OTC 2030" |
| Plan period | FY2026 to FY2030 |
| Progress against the plan | Formulated |
| Sales Target | ¥46.9 billion (fiscal 2025 actual) → ¥100 billion（+113.2%） |
| Operating profit target | ¥5.5 billion (fiscal 2025 actual) → ¥20 billion（+263.6%） |
| Operating profit margin target | 12% (fiscal 2025) → 20%（+66.7%） |
| ROE target | 6% (fiscal 2025 year-end) → 20%（+233.3%） |
| ROIC target | Not disclosed → 20%（ROE／ROIC） |
| Payout ratio / DOE policy | Specific targets for the payout ratio and DOE: not disclosed. Shareholder returns will be ¥3 billion during the investment phase, and the company will consider enhancing shareholder returns during the harvesting phase. The target period is within the plan period. |
| Cost of capital | Cost of shareholders' equity: 8.6% |
| Self-assessment of PBR and share price | The average PBR since before the COVID-19 pandemic has exceeded 2.1x, which the company analyzes as reflecting high expectations from the market. The company aims to maintain and increase its high PBR. Market capitalization was ¥91.4 billion at the end of fiscal 2025, and the company aims to reach ¥150 billion in fiscal 2030. |
| Total investment plan | ¥54 billion (¥11 billion in investment cash flow + ¥35 billion in titanium capacity expansion investment + ¥8 billion in investment cash flow during the harvesting phase) |
| Investment amount by sector | Field Titanium capacity expansion investment / Amount ¥35.0 billion, Field Other investments / Amount ¥11 billion, Field Investment cash flow during the harvesting phase / Amount ¥8 billion |
| Segment target | Segment Titanium Business / Sales Target ¥85 billion / Profit Target ROS20% / Timing FY2030, Segment High-performance materials business / Sales Target ¥15 billion / Profit Target ROS of at least 30% / Timing FY2030 |
| Non-financial targets | Indicator Sponge titanium production capacity / Target value From 40,000 t/y to 50,000 t/y / Timing Toward fiscal 2030, Indicator Market share of sponge titanium for aircraft / Target value 50% / Timing FY2030, Indicator CO2 emissions reduction / Target value 46% versus fiscal 2013 / Timing Not disclosed, Indicator Labor productivity / Target value 10% improvement / Timing Not disclosed, Indicator Company-wide data platform / Target value Completed and in use / Timing FY2028, Indicator Application of the latest technologies to operations / Target value At least 5 projects per year / Timing Not disclosed, Indicator User satisfaction with the core system at launch / Target value At least 80% / Timing Not disclosed, Indicator Innovation development ratio / Target value 50% or higher / Timing FY2028, Indicator Personnel capable of addressing management issues / Target value 10 people / Timing FY2030, Indicator Engagement score / Target value Increase / Timing Not disclosed |
| Plan assumptions | Demand for rolled products for commercial aircraft is expected to continue growing at an annual rate of 6% (company estimate)., Expand sponge titanium supply capacity from 40,000 t/y to 50,000 t/y., Increase the company's market share of sponge titanium for aircraft from an estimated 40% in fiscal 2025 to 50% in fiscal 2030. |
| Key initiatives | Sustainable growth of the titanium business, Business Portfolio Transformation, Advance the green transformation (GX), Promoting Human Capital Management, Promotion of DX, Financial Strategy, Construct and commence production at a new sponge titanium plant (fiscal 2028), Optimize sponge titanium sales prices, Increase the innovation development ratio, Continue decarbonizing manufacturing processes, Secure personnel capable of addressing management issues, Secure funding for titanium capacity expansion investment, Strengthen IR and SR, Further improve the quality of high-purity titanium, Expand sales by improving the productivity of titanium tetrachloride, Enter high-value-added markets for titanium alloy powders, Establish a commercial production system for SiO anode materials, Promote open innovation in new businesses, Enter new businesses in the environmental sector, Promote data-driven management through the renewal of core systems |
| Reason for revision or withdrawal | Not disclosed (the company has formulated a new medium-term management plan rather than revising or withdrawing the existing plan). |
| Size of the Target Market | Demand for rolled products for commercial aircraft is expected to grow at an annual rate of 6% through fiscal 2030 compared with fiscal 2019. Sources: "company estimate based on production volumes announced by major aircraft manufacturers" and "company estimate based on materials released by OEM aircraft-related manufacturers." Market size by value: not disclosed. |
| Risks identified | Rising geopolitical risks, Rise in raw material and fuel prices, Dependence on the aviation industry, Increasing costs of environmental measures, Labor shortages and the risk of disruption to the transfer of skills, Intensifying price competition with China (sponge titanium for general industry), Securing funds required for large-scale investment, Management Conscious of the Cost of Capital and Share Price |
| Date of board resolution | 14 May 2026 |
| Publication date | 14 May 2026 |
Items this document does not state (3)
Net income targetTreasury share acquisition policyResults under the previous plan
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.To address issues including the sponge titanium supply capacity reaching its limit, dependence on the aviation industry, growing environmental awareness, a declining working-age population, securing funds required for large-scale investment, and management that takes the cost of capital and share price into account.
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