Worth reading
73In focus
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
50
¥100 million (FY2029 operating profit target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.1%
基準 2,026Target2,029Hundreds of millions of yen
Operating profit+0.1%
基準 2,026Target2,029Hundreds of millions of yen
Operating profit margin+3.0pt
基準 2,026Target2,029%
Net income for the current fiscal year+0.1%
基準 2,026Target2,029Hundreds of millions of yen
ROE+3.0pt
基準 2,026Target2,029%
ROIC+3.0pt
基準 2,026Target2,029%
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 planSales: ¥46 billion (initial plan), ¥43 billion (revised plan); operating income: ¥2.2 billion; ROE: 5.0% → Sales: ¥44.1 billion; operating income: ¥2.1 billion; ROE: 4.3%（Sales: ▲4.1% versus the initial plan, +2.6% versus the revised plan; operating income: approximately ▲4.5%; ROE: ▲14.0%）-4.1%Calculated from the two disclosed figures
Total investment planTotal cash outlays: approximately ¥40 billion to ¥42 billion, including approximately ¥10 billion in shareholder returns. The total investment amount alone was not presented as a single figure.
Investment amount by sectorField Commercial real estate / Amount Approximately ¥11 billion to ¥13 billion, Field Strategic M&A / Amount Approximately ¥10 billion, Field Business structure transformation costs / Amount Approximately ¥2 billion, Field BCP investment / Amount Approximately ¥3.5 billion, Field Supply Chain Resilience / Amount Approximately ¥1.5 billion, Field IT infrastructure investment / Amount Approximately ¥2 billion
Statements about the use of capital
Payout ratio / DOE policyFiscal 2027 to fiscal 2029 (fiscal years ending March 2028 to fiscal year ending March 2030 in the dividend policy section): the higher of a 4.0% DOE or a 100% total payout ratio. The total payout ratio will be calculated based on the amount remaining after deducting the aggregate amount of extraordinary gains and losses, taking into account the tax burden, from net income.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Self-assessment of PBR and share priceThe company states that it will promote improvement in PBR by remaining conscious of its cost of capital and share price, enhancing shareholder returns and engaging in dialogue with investors. The current PBR and any explicit assessment that it is at a low level were not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Personnel measures
02Cost-reduction measures
03Yonezawa Advanced Factory initiative
04Growth strategies in priority business areas
05Establishment of an investment committee and IR department
06Strengthening Corporate Governance
Plan assumptionsThe plan assumes that procurement costs for components, personnel expenses and other costs have risen due to inflation and the rapid depreciation of the yen, and that raw material prices and construction costs have increased. Numerical assumptions for exchange rates, market growth rates and raw material prices were not disclosed.
Segment targetSegment Product Business / Target Fiscal 2029 sales mix: 45% (51% in fiscal 2025), Segment EMS Business / Target Fiscal 2029 sales mix: 18% (16% in fiscal 2025), Segment Device business / Target Fiscal 2029 sales mix: 13% (10% in fiscal 2025), Segment Systems Business / Target Fiscal 2029 sales mix: 24% (23% in fiscal 2025)
Non-financial targetsIndicator Office operations support / Target No. 1; 1.2x domestic market share in business phones and UTM / Timing Plan period, Indicator OLED shipments / Target +200 million units / Timing Plan period, Indicator Domestic EMS market share / Target Top / Timing Plan period, Indicator Custom OLED / Target No.1 / Timing Plan period, Indicator Domestic VMS market share / Target Top / Timing Plan period
Risks identified by the company
Inflation
Rapid depreciation of the yen
Higher component procurement costs
Higher personnel expenses
Rising Raw Material Prices
Rising construction costs
Reason for revision or withdrawal
Profitability declined due to a gap between strategy and actual conditions and insufficient manufacturing competitiveness. The shift to becoming a “DX promotion supporter” over a short period was not aligned with the company’s strengths or business foundation and did not produce results. In addition, procurement costs for components, personnel expenses and other costs rose more than expected due to inflation and the rapid depreciation of the yen.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan (2026-2029), “From Transformation to Growth” |
| Plan period | Fiscal 2026 to fiscal 2029 (four years) |
| Progress against the plan | Formulated |
| Sales Target | Fiscal 2025 actual: ¥44.1 billion; fiscal 2026 forecast: ¥47.5 billion → Fiscal 2029 target: not disclosed |
| Operating profit target | Fiscal 2026 forecast: ¥1 billion → Fiscal 2029 target: ¥5 billion（+400%） |
| Operating profit margin target | Fiscal 2025 actual: 4.7%; fiscal 2026 forecast: 2.1% → Fiscal 2029 target: not disclosed |
| Net income target | Fiscal 2025 actual: ¥1.4 billion; fiscal 2026 forecast: ¥16.5 billion → Fiscal 2029 target: not disclosed |
| ROE target | Fiscal 2026 forecast: 41.4% → Fiscal 2029 target: at least 8.0%（Approximately ▲80.7%） |
| ROIC target | Fiscal 2025 actual: 4.4%; fiscal 2026 forecast: 1.7% → Fiscal 2029 target: not disclosed |
| Payout ratio / DOE policy | Fiscal 2027 to fiscal 2029 (fiscal years ending March 2028 to fiscal year ending March 2030 in the dividend policy section): the higher of a 4.0% DOE or a 100% total payout ratio. The total payout ratio will be calculated based on the amount remaining after deducting the aggregate amount of extraordinary gains and losses, taking into account the tax burden, from net income. |
| Self-assessment of PBR and share price | The company states that it will promote improvement in PBR by remaining conscious of its cost of capital and share price, enhancing shareholder returns and engaging in dialogue with investors. The current PBR and any explicit assessment that it is at a low level were not disclosed. |
| Total investment plan | Total cash outlays: approximately ¥40 billion to ¥42 billion, including approximately ¥10 billion in shareholder returns. The total investment amount alone was not presented as a single figure. |
| Investment amount by sector | Field Commercial real estate / Amount Approximately ¥11 billion to ¥13 billion, Field Strategic M&A / Amount Approximately ¥10 billion, Field Business structure transformation costs / Amount Approximately ¥2 billion, Field BCP investment / Amount Approximately ¥3.5 billion, Field Supply Chain Resilience / Amount Approximately ¥1.5 billion, Field IT infrastructure investment / Amount Approximately ¥2 billion |
| Segment target | Segment Product Business / Target Fiscal 2029 sales mix: 45% (51% in fiscal 2025), Segment EMS Business / Target Fiscal 2029 sales mix: 18% (16% in fiscal 2025), Segment Device business / Target Fiscal 2029 sales mix: 13% (10% in fiscal 2025), Segment Systems Business / Target Fiscal 2029 sales mix: 24% (23% in fiscal 2025) |
| Non-financial targets | Indicator Office operations support / Target No. 1; 1.2x domestic market share in business phones and UTM / Timing Plan period, Indicator OLED shipments / Target +200 million units / Timing Plan period, Indicator Domestic EMS market share / Target Top / Timing Plan period, Indicator Custom OLED / Target No.1 / Timing Plan period, Indicator Domestic VMS market share / Target Top / Timing Plan period |
| Plan assumptions | The plan assumes that procurement costs for components, personnel expenses and other costs have risen due to inflation and the rapid depreciation of the yen, and that raw material prices and construction costs have increased. Numerical assumptions for exchange rates, market growth rates and raw material prices were not disclosed. |
| Key initiatives | Personnel measures, Cost-reduction measures, Yonezawa Advanced Factory initiative, Growth strategies in priority business areas, Establishment of an investment committee and IR department, Strengthening Corporate Governance |
| Results under the previous plan | Sales: ¥46 billion (initial plan), ¥43 billion (revised plan); operating income: ¥2.2 billion; ROE: 5.0% → Sales: ¥44.1 billion; operating income: ¥2.1 billion; ROE: 4.3%（Sales: ▲4.1% versus the initial plan, +2.6% versus the revised plan; operating income: approximately ▲4.5%; ROE: ▲14.0%） |
| Reason for revision or withdrawal | Profitability declined due to a gap between strategy and actual conditions and insufficient manufacturing competitiveness. The shift to becoming a “DX promotion supporter” over a short period was not aligned with the company’s strengths or business foundation and did not produce results. In addition, procurement costs for components, personnel expenses and other costs rose more than expected due to inflation and the rapid depreciation of the yen. |
| Risks identified | Inflation, Rapid depreciation of the yen, Higher component procurement costs, Higher personnel expenses, Rising Raw Material Prices, Rising construction costs |
| Publication date | 5 June 2026 |
Items this document does not state (4)
Treasury share acquisition policyCost of capitalSize of the Target MarketDate 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 light of declining profitability caused by a gap between strategy and actual conditions and insufficient manufacturing competitiveness, the company will shift to a policy that places greater emphasis on profitability and capital efficiency. It also stated that the shift to becoming a “DX promotion supporter” was not aligned with its strengths or business foundation, while procurement costs for components, personnel expenses and other costs rose more than expected due to inflation and the rapid depreciation of the yen.
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