Management focused on the cost of capital and capital profitability to improve PBR

「Under this medium-term management plan, in addition to the conventional consolidated revenue and consolidated operating profit, we newly established ROE, PBR, and other measures as target management indicators and stated explicitly that management focused on the cost of capital would become the basis of business operations.」

「As a result of pursuing management focused on the cost of capital and share price, the group’s ROE for the current consolidated fiscal year was 11.0%, down 1.8 percentage points from the previous consolidated fiscal year. PBR as of the end of March 2026 was 1.3x.」

「Under these circumstances, the group launched the medium-term management plan “move.2027,” whose final year is the fiscal year ending March 2027, in the previous fiscal year and is pursuing management that takes the cost of capital and share price into account. The plan newly sets ROE, PBR, and other indicators as management targets in addition to the former targets of consolidated net sales and consolidated operating profit, and explicitly positions management based on the cost of capital as the foundation of business operations.」

「During the consolidated fiscal year, the company acquired ¥4,715 million of treasury shares. In December 2024, it also conducted a 3-for-1 stock split of its common shares to lower the investment unit, improve the liquidity of its shares and broaden its investor base. In addition, in March 2025, it resolved to issue bonds with stock acquisition rights as a means of financing the acquisition of treasury shares, thereby boldly reviewing its capital structure through the use of debt and pursuing higher ROE through its capital policy.」

「Since the medium-term management plan announced in November 2023, the group has explicitly stated that cost-of-capital management will be the axis of its business operations. It has switched its target management indicators from consolidated operating profit to ROE of at least 10% and PBR of at least 1x, and will advance management focused on the cost of capital and capital efficiency.」

「Under the new medium-term management plan, the company has explicitly stated targets of consolidated net sales of ¥56 billion and consolidated operating profit of ¥8.6 billion for the fiscal year ending March 2027, as well as ROE of at least 10% and PBR of at least 1x as management indicators for advancing cost-of-capital management.」

「Under the new medium-term management plan, the company will promote management focused on the cost of capital and capital efficiency to improve PBR. In addition to pursuing growth in earnings, it will set specific indicators and advance initiatives to strengthen shareholder returns and boldly review its capital structure. For details, please refer to the notice concerning the formulation of the medium-term management plan “move.2027” (fiscal years ending March 2025 to March 2027), announced on 8 November 2023.」