Maintaining an Operating Margin of 5% or Higher
First written in FY2018. 1 of 6 entries say "Restated". Latest entry: FY2022.
The whole theme swung hardest in 2019: 14 of 100 companies on the "Worse" side.
19 other companies' latest entry also says "Reframed".
- FY2022ReframedAnnual report
「The company believes that management decision-making from a medium- to long-term perspective is important, without becoming overly focused on the results of any single fiscal year. Net profit generated will be allocated among retained earnings, used to repay interest-bearing debt, reinvestment, and shareholder returns through dividends or share buybacks, in appropriate proportions depending on the management environment at the time. Specifically, the company has set as its management indicator the goal of continuing to generate average annual net profit of ¥700 million over the next 20 years, and will conduct its business activities accordingly.」
The previous indicator of an operating margin of at least 5% was no longer stated, and the focus of the management target shifted to an indicator based on maintaining net profit over the long term. - FY2022-Q3AdvancedAnnual report
「The company is also working to build a leaner management structure by speeding up company-wide decision-making and reallocating management resources through structural reforms. As a result, revenue for the nine-month period of the third quarter of the current fiscal year was ¥20,900 million, up 30.4% year on year, and operating profit was ¥1,109 million, compared with an operating loss of ¥208 million in the same period of the previous fiscal year.」
The operating margin for the nine-month period of the third quarter was approximately 5.3%, calculated from revenue of ¥20,900 million and operating profit of ¥1,109 million, exceeding the previous target level of at least 5% on a cumulative quarterly basis. The company also cited structural reforms, faster decision-making and the reallocation of management resources. This does not indicate that the full-year target will be achieved. - FY2021MitigatedAnnual report
「The operating margin in the current fiscal year was extremely weak, mainly during the first half, due to stagnant economic activity resulting from the impact of COVID-19. It recovered as orders began to rebound, particularly in the second half, and as the Group pursued business selection and concentration as part of its structural reforms, while faster company-wide management decision-making and reductions in non-profitable manageable fixed costs also took effect. As a result, the company secured operating profit, but the operating margin for the current fiscal year was 0.5%, falling short of the target.」
Although the target operating margin of at least 5% was not achieved, structural reforms and fixed-cost reductions improved the margin from negative 0.4% in the previous fiscal year to 0.5% in the current fiscal year. - FY2020WorsenedAnnual report
「In the current fiscal year, the operating margin fell from 1.3% in the previous fiscal year to negative 0.4% due to the inability to secure operating profit amid the impact of US-China trade friction, the slowdown in the Chinese economy and other factors, so the target was not achieved.」
The target operating margin of at least 5% remained in place, but the actual margin fell from 1.3% to negative 0.4%, further worsening the shortfall against the target. - FY2019RestatedAnnual report
「The company aims to maintain an operating margin of at least 5%. In the current fiscal year, the operating margin fell to 1.3% from 1.5% in the previous fiscal year, so the target was not achieved. Going forward, the company will strengthen its sales, production and administrative structures through closer coordination in Japan and overseas, and work to further improve its earnings power through initiatives including the development of new circuit boards and technologies, with the aim of achieving its target management indicator.」
The target operating margin of at least 5% remains in place, but the actual margin was 1.3%, down from 1.5% in the previous fiscal year, and the target was not achieved. - FY2018First statedAnnual report
「As a management indicator, the company places emphasis on the operating margin, which indicates profitability from its core business. The company aims to maintain an operating margin of at least 5% and intends to improve its earnings power toward achieving this target.」
The company has for the first time explicitly stated a target of maintaining an operating margin of at least 5% as an indicator of core business profitability.