Worth reading
68In focus
Scored from 4 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
8000
¥10,000 (operating profit sensitivity to a ¥1 depreciation or appreciation against the US dollar)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFull-year results for the fiscal year ended March 20266 items taken from the company’s own explanation
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Regional outlook for the fiscal year ending March 2027
- Operating profit foreign-exchange sensitivity
- Profit improvement in the North and South America segment and the contribution of the Mexican subsidiary
- Business discussions and order intake in the data center business
- Customer base and supply-demand conditions in the data center business
- Profit improvement and capital policy toward achieving 15% ROE, and timing of the next update
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Operating profit foreign-exchange sensitivityApproximately ¥80 million for every ¥1 depreciation or appreciation against the US dollar (positive for a depreciation of the yen and negative for an appreciation).
New initiatives
- Launch of business for a major US automaker
- Margin improvement through the use of operational expertise at the Mexican subsidiary
- Exhibiting water-cooling module products for data centers at trade shows and strengthening marketing
- Structural reforms centered on Japan, Europe and China, a review of low-profitability businesses, and optimization of the business portfolio
- Liquidation of the Chinese subsidiary
- An update during the year on management conscious of the cost of capital and share price
Segment results
JapanPerformance is expected to be at approximately the level of the fiscal year before last, as the one-off benefit from new business launches in the previous fiscal year fades.
North and South AmericaProfitability is expected to recover to the level of the fiscal year before last as the impact of tariffs and production disruptions is resolved.
EuropeA small operating profit is expected.
ChinaThe company is expected to approach breakeven as fixed costs decline following completion of the liquidation of its Chinese subsidiary.
AsiaA slight year-on-year increase in operating profit is expected.
Medium-term management plan targets
ROE15%
Target fiscal yearFY2030
Financial targets
ROETarget ROE of 15% for fiscal year 2030
ROIC and WACCThe company explained that ROIC is below WACC in Japan, Europe and China.
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Full-year results for the fiscal year ended March 2026 |
| Segment results | Japan Performance is expected to be at approximately the level of the fiscal year before last, as the one-off benefit from new business launches in the previous fiscal year fades. / North and South America Profitability is expected to recover to the level of the fiscal year before last as the impact of tariffs and production disruptions is resolved. / Europe A small operating profit is expected. / China The company is expected to approach breakeven as fixed costs decline following completion of the liquidation of its Chinese subsidiary. / Asia A slight year-on-year increase in operating profit is expected. |
| Assumptions Underlying the Business Outlook | Operating profit foreign-exchange sensitivity Approximately ¥80 million for every ¥1 depreciation or appreciation against the US dollar (positive for a depreciation of the yen and negative for an appreciation). |
| Medium-term management plan targets | ROE 15% / Target fiscal year FY2030 |
| Financial targets | ROE Target ROE of 15% for fiscal year 2030 / ROIC and WACC The company explained that ROIC is below WACC in Japan, Europe and China. |
| Key points of the Q&A | Regional outlook for the fiscal year ending March 2027, Operating profit foreign-exchange sensitivity, Profit improvement in the North and South America segment and the contribution of the Mexican subsidiary, Business discussions and order intake in the data center business, Customer base and supply-demand conditions in the data center business, Profit improvement and capital policy toward achieving 15% ROE, and timing of the next update |
| New initiatives | Launch of business for a major US automaker, Margin improvement through the use of operational expertise at the Mexican subsidiary, Exhibiting water-cooling module products for data centers at trade shows and strengthening marketing, Structural reforms centered on Japan, Europe and China, a review of low-profitability businesses, and optimization of the business portfolio, Liquidation of the Chinese subsidiary, An update during the year on management conscious of the cost of capital and share price |
Items this document does not state (23)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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 Japan, the one-off benefit from new business launches in the previous fiscal year is expected to fade. In North and South America, the resolution of the impact of US tariff measures and transportation problems in Mexico is expected to contribute. In Europe, the factors are price pass-through and fixed-cost reductions through the consolidation of sites and workforce reductions. In China, fixed-cost reductions are expected following the liquidation of a subsidiary. In Asia, growth in India is expected to offset the slowdown in Thailand and Indonesia.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.