Performance and Investment Efficiency Management Using TVA, Logic Trees, and KPIs
First written in FY2019. 4 of 8 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2026: 2 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Company-wide ROIC for the fiscal year was 7.5% (>WACC 7.0%), with targets of 8% or more for the fiscal year ending March 2027 and 12% or more over the long term.」
Company-wide ROIC improved from 6.7% in the previous fiscal year to 7.5%, exceeding the 7.0% WACC. Investment-efficiency management using TVA, logic trees, and KPIs, and the targets of at least 8% for the fiscal year ending March 2027 and 12% over the long term, continue. - FY2025AdvancedAnnual report
「Company-wide ROIC for the current consolidated fiscal year was 6.7% (<WACC 7.0%), and we aim for at least 8% in the fiscal year ending March 2027 and at least 12% over the long term. The actual segment-level business ROA (ROIC) for the fiscal year ending March 2025 and the segment-level business ROA targets for the fiscal year ending March 2027 are as follows.」
In the first year of the new medium-term plan, actual company-wide ROIC of 6.7% (WACC 7.0%) was disclosed, and the targets of at least 8% for the fiscal year ending March 2027 and 12% over the long term, along with segment-level targets, were presented for implementation. - FY2024RaisedAnnual report
「Under the new medium-term management plan, we set targets for company-wide ROIC and segment-level business ROA (ROIC), which have a stronger correlation with TVA (business ROA), our Group's original value-added metric, and will manage operations toward achieving the targeted level of return on capital. Company-wide ROIC for the current consolidated fiscal year was 5.3% (<WACC 7.0%), and we aim for at least 8% in the fiscal year ending March 2027 and at least 12% over the long term.」
In addition to TVA management, targets for company-wide ROIC and segment-level ROIC were newly specified, expanding the metric framework to include company-wide ROIC of at least 8% for the fiscal year ending March 2027 and 12% over the long term. - FY2023SoftenedAnnual report
「We aimed to build the capabilities to achieve ROE of at least 14% under the 3-year medium-term plan ending in the fiscal year ending March 2024, while promoting our growth strategy across the entire Group and selectively allocating capital expenditure through strengthened investment-efficiency management. However, partly because the demand environment changed sharply, the outlook for the fiscal year ending March 2024 is 9.8%.」
Investment-efficiency management using TVA, logic trees, and KPIs continues, but the outlook for the target of ROE of at least 14% for the fiscal year ending March 2024 declined to 9.8%. - FY2022AdvancedAnnual report
「ROE for the current consolidated fiscal year improved by 3.1 percentage points from 8.5% in the previous consolidated fiscal year to 11.6%.」
Management using TVA, logic trees, and KPIs continued, and ROE improved from 8.5% to 11.6% through higher ROS driven by increased sales. Progress toward the target of ROE of at least 14% for the fiscal year ending March 2024 was shown numerically. - FY2021AdvancedAnnual report
「Our Group uses TVA (TDK Value Added), an original value-added metric that compares profit after interest and taxes with the minimum required return on the operating assets of each business, namely the cost of shareholders' equity. Using a logic tree linked to TVA, we evaluate the profitability of each business, the efficiency of business assets, and the ability to generate cash, while breaking these factors down into KPIs aligned with operational initiatives and characteristics for monitoring. Through this framework, we aim to promote our growth strategy across the entire Group and, by strengthening investment-efficiency management, selectively allocate capital expenditure while building the capabilities to achieve ROE of at least 14% under the 3-year medium-term plan ending in the fiscal year ending March 2024.」
The framework linking management using TVA, logic trees, and KPIs to the selective allocation of capital expenditure under the new medium-term plan, with a target ROE of at least 14% for the fiscal year ending March 2024, was set out in concrete terms. - FY2020RestatedAnnual report
「Using a logic tree linked to TVA, we evaluate the profitability of each business, the efficiency of business assets, and the ability to generate cash, while breaking these factors down into KPIs aligned with operational initiatives and characteristics for monitoring.」
The use of TVA, logic trees, and KPIs to manage profitability, asset efficiency, and cash generation capabilities, and to guide investment decisions, was reconfirmed. - FY2019First statedAnnual report
「Our Group uses TVA (TDK Value Added), introduced in 1999, which compares the return on invested capital with the cost of capital (weighted average cost of capital × invested capital). Using a logic tree linked to TVA, we evaluate the profitability of each business, the efficiency of business assets, and the ability to generate cash, while breaking these factors down into KPIs aligned with operational initiatives and characteristics for monitoring.」
A performance management framework using TVA, logic trees, and KPIs to manage the profitability, asset efficiency, and cash generation capabilities of each business and guide the selective allocation of investment was described in concrete terms for the first time.