Introduction of ROIC-Based Management and Business Operations with Awareness of Cost of Capital
First written in FY2019. 7 of 13 entries say "Advanced", first in FY2020. Latest entry: 2026-09-29.
The whole theme swung hardest in 2025: 1 of 7 companies on the "Worse" side.
9 other companies' latest entry also says "Advanced".
- FY2026ReframedAnnual report
「We will advance from ROIC Management 1.0, focused on the structural reforms undertaken to date, to ROIC Management 2.0, which generates business growth through growth investment in addition to structural reform, thereby maximizing cash flow.」
The positioning of ROIC-based management has been revised from 1.0, centered on structural reform, to 2.0, combining growth investment, cash flow maximization and shareholder returns. The target is ROIC of 15% or higher in fiscal 2030. - FY2025AdvancedAnnual report
「(ii) Maximizing free cash flow and improving capital efficiency through further advancement of ROIC-based management」
The Company stated that it would advance ROIC-based management as one of its management policies for fiscal 2025 and link it to maximizing free cash flow and improving capital efficiency. - FY2025-H1RestatedAnnual report
「The Company will continue to promote business portfolio management using ROIC as an indicator and strengthen the cash flow generation capacity of its businesses, thereby ensuring the execution of growth investments and enhancing shareholder returns.」
The Company has reconfirmed its policy of continuing to manage its business portfolio using ROIC as an indicator and linking cash flow generation capacity with growth investment and shareholder returns. - FY2024AdvancedAnnual report
「Under ROIC-based management, the Company will promote the adoption of business-specific ROIC throughout each division and rigorously apply it to reviews and business viability assessments for optimizing the business portfolio and to investment decisions.」
The Company has expanded the scope of ROIC-based management to each division and is further implementing its use in business portfolio reviews, business viability assessments and investment decisions. - FY2023AdvancedAnnual report
「Under ROIC-based management, the Company will establish ROIC targets for each business, embed them throughout the operating levels of each division, and rigorously apply them to reviews and business viability assessments for optimizing the business portfolio and to investment decisions.」
ROIC-based management has been extended to individual businesses and operational levels within each division, with its application expanded to portfolio reviews, business viability assessments and investment decisions. - FY2020AdvancedAnnual report
「ROIC actual and planned results are as follows: fiscal 2019 actual: 7.3%; fiscal 2020 plan: 5.1%.」
Following the introduction of ROIC-based management, the Company disclosed a fiscal 2019 actual ROIC of 7.3% and a fiscal 2020 planned ROIC of 5.1%. It has also incorporated operating profit achievement, medium-term operating profit achievement and ROIC achievement into the performance-linked compensation metrics for directors and executive officers. - FY2019First statedAnnual report
「The Company newly introduced the concept of ROIC-based management and will strengthen efforts to promote business management with an awareness of the cost of capital. ROIC targets are as follows: fiscal 2018 actual: 5.6; fiscal 2019 plan: 5.5.」
The Company has clarified the responsibilities and authority of the heads of the new segments and introduced a management method to improve the earnings structure of each business based on ROIC and other indicators.