Worth reading
79Important
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
-40
¥100 million (reduction in the fiscal 2030 sales target)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+14,400.0%
基準 14Target2,030Hundreds of millions of yen
Operating profit margin+2,020.0pt
基準 10Target2,030％
ROE+4.0pt
基準 2,026Target2,030％
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 plan35.0% reduction (fiscal 2025 target) → 28.7% reduction (fiscal 2025 actual)0.0%Calculated from the two disclosed figures
Total investment planGrowth investment of ¥12.0 billion (fiscal 2026–fiscal 2030)
Investment amount by sectorField Capital expenditure / Amount ¥6 billion, Field M&A, alliances, and human capital investment / Amount ¥6.0 billion. Of this, up to ¥6.0 billion will be allocated to M&A and alliances, with an EV/EBITDA multiple of up to 10x.
Statements about the use of capital
Payout ratio / DOE policyFiscal 2026–fiscal 2030. Progressive dividends, with an annual floor of ¥80 and a payout ratio of 30%. DOE: not disclosed.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 policyOf the ¥1.4 billion allocated to shareholder returns during fiscal 2026–fiscal 2030, ¥400 million will be allocated to share buybacks. The specific timing and conditions of the purchases are not disclosed.
Cost of capitalCost of equity (CAPM): 6.6%. Assuming a beta of 1, the investor expectation is 8.7%.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR has generally remained around 0.5x. PBR as of March 2026 was 0.46x, and the KGI is a PBR of at least 1x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Strengthen governance and reestablish internal controls
02Review the quality assurance framework
03Review the value offered and create added value
04Improve productivity through focused investment
05Strengthen the financial structure with a focus on cash flow
06Review the business and product portfolios
07TRASAS
08North America
09nepros ID
10Strengthen supply chain management
11Strengthening Profitability
12Reform the business portfolio
13Improve quality and productivity
14Optimize the balance sheet
15Strengthen dialogue with shareholders and investors
16Human Capital Investment
Plan assumptionsAll three markets—mobility, factories, and infrastructure—are expected to remain firm and grow. The Company expects to expand production capacity and increase production volumes by pursuing its growth strategy. Specific assumptions for exchange rates, raw material prices, and market growth rates are not disclosed.
Segment targetSegment Core Business / Sales Target ¥8.3 billion / Profit Target Not disclosed, Segment Key Strategies / Sales Target ¥1.7 billion / Profit Target Not disclosed
Non-financial targetsIndicator Greenhouse Gas Emissions / Target value 50% reduction from fiscal 2013 / Timing FY2030, Indicator Waste generated / Target value 37% reduction from fiscal 2021 / Timing FY2030, Indicator External release of critical defects and serious quality claims / Target value ゼロ / Timing FY2030, Indicator Accidents and harassment / Target value ゼロ / Timing FY2030, Indicator Violations of laws and regulations and internal misconduct / Target value ゼロ / Timing FY2030
Size of the Target MarketU.S. hand tools market (estimate): approximately US$6.0 billion (approximately ¥960 billion); Japanese market: approximately ¥80.0 billion. Automotive repair sales: approximately ¥28 trillion in the United States and approximately ¥6 trillion in Japan. Sources and research organizations: not disclosed.
Risks identified by the company
Geopolitical risk
Improper accounting and inadequate corporate governance at a consolidated subsidiary
Quality defects, serious quality claims, and voluntary recalls involving digital torque wrenches
Increases in greenhouse gas emissions and waste generated due to expanded production capacity and increased production volumes
Actual results and other outcomes may differ materially from the plan due to various factors
Reason for revision or withdrawal
In fiscal 2025, the first year of the Second Medium-Term Management Plan, an improper accounting matter occurred at the consolidated subsidiary Hokuriku KTC Tool Co., Ltd., and a voluntary recall was conducted for the Company's strategic product, the digital torque wrench. The Company identified strengthening corporate governance, establishing internal controls, and reviewing its quality assurance framework as urgent priorities, and focused on rebuilding its management foundation. Subsequently, rebuilding the management foundation reached a certain level of progress.
| Item | Details |
|---|---|
| Plan name | New Five-Year Plan, Restart KTC vision 2030 |
| Plan period | Fiscal 2026–fiscal 2030 (five years) |
| Progress against the plan | Formulated |
| Sales Target | ¥14.0 billion (original long-term vision plan) → ¥10 billion (fiscal 2030)（-28.6% (calculated)） |
| Operating profit margin target | At least 10% (original plan) → 10% or more (fiscal 2030)（0% (calculated)） |
| ROE target | 4.0% (latest actual for March 2026) → At least 8% (fiscal 2030)（At least 100% (calculated)） |
| Payout ratio / DOE policy | Fiscal 2026–fiscal 2030. Progressive dividends, with an annual floor of ¥80 and a payout ratio of 30%. DOE: not disclosed. |
| Treasury share acquisition policy | Of the ¥1.4 billion allocated to shareholder returns during fiscal 2026–fiscal 2030, ¥400 million will be allocated to share buybacks. The specific timing and conditions of the purchases are not disclosed. |
| Cost of capital | Cost of equity (CAPM): 6.6%. Assuming a beta of 1, the investor expectation is 8.7%. |
| Self-assessment of PBR and share price | PBR has generally remained around 0.5x. PBR as of March 2026 was 0.46x, and the KGI is a PBR of at least 1x. |
| Total investment plan | Growth investment of ¥12.0 billion (fiscal 2026–fiscal 2030) |
| Investment amount by sector | Field Capital expenditure / Amount ¥6 billion, Field M&A, alliances, and human capital investment / Amount ¥6.0 billion. Of this, up to ¥6.0 billion will be allocated to M&A and alliances, with an EV/EBITDA multiple of up to 10x. |
| Segment target | Segment Core Business / Sales Target ¥8.3 billion / Profit Target Not disclosed, Segment Key Strategies / Sales Target ¥1.7 billion / Profit Target Not disclosed |
| Non-financial targets | Indicator Greenhouse Gas Emissions / Target value 50% reduction from fiscal 2013 / Timing FY2030, Indicator Waste generated / Target value 37% reduction from fiscal 2021 / Timing FY2030, Indicator External release of critical defects and serious quality claims / Target value ゼロ / Timing FY2030, Indicator Accidents and harassment / Target value ゼロ / Timing FY2030, Indicator Violations of laws and regulations and internal misconduct / Target value ゼロ / Timing FY2030 |
| Plan assumptions | All three markets—mobility, factories, and infrastructure—are expected to remain firm and grow. The Company expects to expand production capacity and increase production volumes by pursuing its growth strategy. Specific assumptions for exchange rates, raw material prices, and market growth rates are not disclosed. |
| Key initiatives | Strengthen governance and reestablish internal controls, Review the quality assurance framework, Review the value offered and create added value, Improve productivity through focused investment, Strengthen the financial structure with a focus on cash flow, Review the business and product portfolios, TRASAS, North America, nepros ID, Strengthen supply chain management, Strengthening Profitability, Reform the business portfolio, Improve quality and productivity, Optimize the balance sheet, Strengthen dialogue with shareholders and investors, Human Capital Investment |
| Results under the previous plan | 35.0% reduction (fiscal 2025 target) → 28.7% reduction (fiscal 2025 actual) |
| Reason for revision or withdrawal | In fiscal 2025, the first year of the Second Medium-Term Management Plan, an improper accounting matter occurred at the consolidated subsidiary Hokuriku KTC Tool Co., Ltd., and a voluntary recall was conducted for the Company's strategic product, the digital torque wrench. The Company identified strengthening corporate governance, establishing internal controls, and reviewing its quality assurance framework as urgent priorities, and focused on rebuilding its management foundation. Subsequently, rebuilding the management foundation reached a certain level of progress. |
| Size of the Target Market | U.S. hand tools market (estimate): approximately US$6.0 billion (approximately ¥960 billion); Japanese market: approximately ¥80.0 billion. Automotive repair sales: approximately ¥28 trillion in the United States and approximately ¥6 trillion in Japan. Sources and research organizations: not disclosed. |
| Risks identified | Geopolitical risk, Improper accounting and inadequate corporate governance at a consolidated subsidiary, Quality defects, serious quality claims, and voluntary recalls involving digital torque wrenches, Increases in greenhouse gas emissions and waste generated due to expanded production capacity and increased production volumes, Actual results and other outcomes may differ materially from the plan due to various factors |
| Publication date | 15 May 2026 |
Items this document does not state (4)
Operating profit targetNet income targetROIC targetDate 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.In fiscal 2025, an improper accounting matter occurred at a consolidated subsidiary, and a voluntary recall was conducted for the digital torque wrench, a strategic product. The Company therefore prioritized strengthening corporate governance, establishing internal controls, and reviewing its quality assurance framework, while focusing on rebuilding its management foundation. As rebuilding the management foundation reached a certain level of progress, the new five-year plan was formulated.
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