Advancing management by assessing the cost of capital for each business segment
First written in FY2022. 2 of 4 entries say "Advanced", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2021: 3 of 12 companies on the "Worse" side.
24 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「In addition, the company will work to improve the accuracy of decision-making by formulating a group-wide growth strategy and business portfolio strategy, prioritizing investments based on these strategies, clarifying and strengthening the implementation of investment and exit criteria, and thoroughly implementing ROIC-based management.」
The effort to identify the cost of capital by business has been developed into management practices based on investment and exit criteria, investment priorities and ROIC. - FY2024RaisedAnnual report
「① Introduce ROIC (return on invested capital) and WACC (weighted average cost of capital) by business, while reshaping the business structure to achieve greater profitability and capital efficiency」
The effort to identify the cost of capital for each business segment has been developed into ROIC-based management, with ROIC and WACC introduced by business. - FY2023AdvancedAnnual report
「① Promoting cost-of-capital management」
The effort to identify the cost of capital for each business segment has been expanded into cost-of-capital management as a management innovation under the new medium-term management plan. - FY2022First statedAnnual report
「The key initiatives of the new medium-term management plan (fiscal years ending March 2023 to March 2025), formulated based on this approach, are as follows. 1) Promoting management innovation ③ Driving management by identifying the cost of capital for each business segment」
As a management initiative under the new medium-term management plan, the company has for the first time presented as a separate item its effort to drive management by identifying the cost of capital for each business segment.