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How definitive the wording is.Items stated in the management plan
Annual updateNet Sales+55.7%
基準 288,933Target450,000million
Operating profit+106.8%
基準 27,561Target57,000million
Operating profit margin+2.0pt
基準 2,026Target2,028%
Net income for the current fiscal year+155.3%
基準 14,886Target38,000million
ROE+2.0pt
基準 2,026Target2,028%
ROIC+2.0pt
基準 2,026Target2,028%
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.
Total investment plan¥175.0 billion in capital investment for the FY ending March 2026 through the FY ending December 2027
Statements about the use of capital
Payout ratio / DOE policyThe company has adopted DOE (dividend on equity) and set a floor of 3.5%. It aims for a total payout ratio of 50%. Period covered: not disclosedThe payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe company plans ¥25.0 billion in share buybacks over 3 years and will consider acquiring its own shares on a flexible basis. Proceeds from asset sales are planned to be allocated to shareholder returns, including share buybacks.
Cost of capitalCost of equity: 11.67% (FY ending March 2026); WACC: 11.10% (FY ending March 2026)The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR had remained below 1.0x for 4 consecutive fiscal years, but recovered to 1.13x in the FY ending March 2026. The PER for the FY ending March 2026 was 19.6x, below the 21.7x average PER for electrical equipment companies on the Standard Market.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Thoroughly promote the digitalization, automation, AI adoption and visualization of production operations
02Select and concentrate on businesses, including business divestitures and deconsolidation
03Strengthen investment controls through rigorous management of ROIC by business and company
04Shorten working capital turnover periods, including by reducing inventory
05Improve operating and free cash flow through the early start-up of new plants
06Diversify funding for Chinese subsidiaries, including the partial sale of equity interests and introduction of external capital
07Consider diversifying shareholder returns, including share buybacks, as a source of future M&A funding
08Strengthen sustainability initiatives, including GHG reduction activities
09Strengthen engagement through IR and SR activities, including domestic and overseas plant tours and meetings with outside directors
10Promote understanding by clarifying the business activities and strategies of the semiconductor-related, electronic devices and automotive businesses
11Expand manufacturing sites outside China, including capacity expansion, in response to US-China semiconductor tensions, and bring them into operation at an early stage
12Launch manufacturing operations in Malaysia, including the Kulim 1 and 2 plants and the Johor Bahru plant, and expand capacity in Ishikawa, including the third plant
13Shift production plans at Chinese plants in line with rising demand in China
14Supply materials and components for AI-specific semiconductors and memory, as well as automotive semiconductors and electronic devices
15Introduce DOE, with a floor of 3.5%
16Share buyback plan: ¥25.0 billion over 3 years
Risks identified by the company
Concern over achieving profit growth commensurate with the expansion of investment
Concern over future financing, including earnings dilution, due to continued negative free cash flow resulting from large-scale capital investment exceeding operating cash flow
Concern over the impact of US-China semiconductor tensions resulting from the concentration of production sites in China
Impact associated with the company’s diverse range of businesses
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan |
| Plan period | FY ending March 2026 to FY ending December 2028 |
| Progress against the plan | Annual update |
| Sales Target | Actual for the FY ending March 2026: 288,933 → Total for the FY ending December 2028: 450,000（+55.7%） |
| Operating profit target | Actual for the FY ending March 2026: 27,561 → Total for the FY ending December 2028: 57,000（+106.8%） |
| Operating profit margin target | Actual for the FY ending March 2026: 9.5% → Total for the FY ending December 2028: 12.7%（+33.7%） |
| Net income target | Actual for the FY ending March 2026: 14,886 → Total for the FY ending December 2028: 38,000（+155.3%） |
| ROE target | Actual for the FY ending March 2026: 6.0% → Total for the FY ending December 2028: 11.0%（+83.3%） |
| ROIC target | Actual for the FY ending March 2026: 3.2% → Total for the FY ending December 2028: 7.0%（+118.8%） |
| Payout ratio / DOE policy | The company has adopted DOE (dividend on equity) and set a floor of 3.5%. It aims for a total payout ratio of 50%. Period covered: not disclosed |
| Treasury share acquisition policy | The company plans ¥25.0 billion in share buybacks over 3 years and will consider acquiring its own shares on a flexible basis. Proceeds from asset sales are planned to be allocated to shareholder returns, including share buybacks. |
| Cost of capital | Cost of equity: 11.67% (FY ending March 2026); WACC: 11.10% (FY ending March 2026) |
| Self-assessment of PBR and share price | PBR had remained below 1.0x for 4 consecutive fiscal years, but recovered to 1.13x in the FY ending March 2026. The PER for the FY ending March 2026 was 19.6x, below the 21.7x average PER for electrical equipment companies on the Standard Market. |
| Total investment plan | ¥175.0 billion in capital investment for the FY ending March 2026 through the FY ending December 2027 |
| Key initiatives | Thoroughly promote the digitalization, automation, AI adoption and visualization of production operations, Select and concentrate on businesses, including business divestitures and deconsolidation, Strengthen investment controls through rigorous management of ROIC by business and company, Shorten working capital turnover periods, including by reducing inventory, Improve operating and free cash flow through the early start-up of new plants, Diversify funding for Chinese subsidiaries, including the partial sale of equity interests and introduction of external capital, Consider diversifying shareholder returns, including share buybacks, as a source of future M&A funding, Strengthen sustainability initiatives, including GHG reduction activities, Strengthen engagement through IR and SR activities, including domestic and overseas plant tours and meetings with outside directors, Promote understanding by clarifying the business activities and strategies of the semiconductor-related, electronic devices and automotive businesses, Expand manufacturing sites outside China, including capacity expansion, in response to US-China semiconductor tensions, and bring them into operation at an early stage, Launch manufacturing operations in Malaysia, including the Kulim 1 and 2 plants and the Johor Bahru plant, and expand capacity in Ishikawa, including the third plant, Shift production plans at Chinese plants in line with rising demand in China, Supply materials and components for AI-specific semiconductors and memory, as well as automotive semiconductors and electronic devices, Introduce DOE, with a floor of 3.5%, Share buyback plan: ¥25.0 billion over 3 years |
| Risks identified | Concern over achieving profit growth commensurate with the expansion of investment, Concern over future financing, including earnings dilution, due to continued negative free cash flow resulting from large-scale capital investment exceeding operating cash flow, Concern over the impact of US-China semiconductor tensions resulting from the concentration of production sites in China, Impact associated with the company’s diverse range of businesses |
| Publication date | 15 July 2026 |
Items this document does not state (8)
Investment amount by sectorSegment targetNon-financial targetsPlan assumptionsResults under the previous planReason for revision or withdrawalSize 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.To achieve sustainable growth and enhance corporate value over the medium to long term.
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