Items stated in the management plan
Partial revision (update)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).
In FY2024, orders declined and performance deteriorated due to the aftereffects of the previous fiscal year and prolonged customer inventory adjustments. In FY2025, performance deteriorated due to prolonged customer inventory adjustments and losses related to the restructuring of subsidiaries. Shareholders and investors also expressed opinions regarding the optimal cash level, greater transparency regarding growth investment, ROE of 8% or more, and strengthened IR activities.
| Item | Details |
|---|---|
| Plan name | 11th Medium-Term Plan / 12th |
| Plan period | FY2026–2028 (3-year cumulative funding; the starting and final fiscal years of the 11th Medium-Term Plan and the 12th plan are Not disclosed) |
| Progress against the plan | Partial revision (update) |
| ROE target | FY2025 actual: ▲6.3% → ROE of 8% or more under the 12th plan / ROE of 8% or more over the medium to long term |
| Payout ratio / DOE policy | The company’s basic policy is to pay progressive dividends with a dividend on equity (DOE) of 4.5% as the floor, providing continuous and stable dividends from retained earnings. Applicable period: from FY2026. |
| Cost of capital | Cost of equity: approximately 7–9% |
| Self-assessment of PBR and share price | In FY2025, PBR was above 1x, at 1.04x. However, based on the 5-year average for FY2019–FY2023, PBR was 0.9x, ROE was 5.5%, and PER was 33.8x. The company recognizes that ROE has not reached the level expected by the market. |
| Total investment plan | Approximately ¥30 billion (3-year cumulative funding for FY2026–FY2028) |
| Investment amount by sector | Field Growth Investment / Amount Not disclosed, Field Investments to strengthen the business platform / Amount Not disclosed, Field Shareholder Returns / Amount Not disclosed |
| Plan assumptions | Information currently available and certain assumptions deemed reasonable. Specific numerical assumptions are Not disclosed. |
| Key initiatives | Cash allocation with a focus on capital efficiency, Implementing growth investment aimed at improving ROE, Enhancement of shareholder returns, Strengthen dialogue with shareholders and investors |
| Reason for revision or withdrawal | In FY2024, orders declined and performance deteriorated due to the aftereffects of the previous fiscal year and prolonged customer inventory adjustments. In FY2025, performance deteriorated due to prolonged customer inventory adjustments and losses related to the restructuring of subsidiaries. Shareholders and investors also expressed opinions regarding the optimal cash level, greater transparency regarding growth investment, ROE of 8% or more, and strengthened IR activities. |
| Date of board resolution | 19 June 2026 |
| Publication date | 19 June 2026 |
Items this document does not state (11)
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.Performance deteriorated in FY2024 due to the aftereffects of the previous fiscal year and prolonged customer inventory adjustments, and in FY2025 due to prolonged customer inventory adjustments and losses related to the restructuring of subsidiaries. In addition, shareholders and investors expressed opinions calling for disclosure of the optimal cash level, greater transparency regarding the objectives, plans and effects of growth investment, achievement of ROE of 8% or more, and strengthened IR activities.