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Presentation materials for financial results6976TAIYO YUDEN CO.,LTD.Electrical Equipment and Precision Instruments

Medium-Term Management Plan 2030

The company reviewed Medium-Term Management Plan 2025 and presented new management targets, investment plans and business strategies for fiscal 2026 through fiscal 2030. It set targets including revenue of ¥480 billion, an operating margin of 15%, ROE of 15% and ROIC of 10%, while advancing growth investments focused mainly on AI servers and automotive applications.

Worth reading
57In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
4800
¥100 million (fiscal 2030 revenue target)
Wording
Conditional
How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationFiscal 2025 results and Medium-Term Management Plan 2030 (fiscal 2026 through fiscal 2030)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesFiscal 2025 actual: ¥355.3 billion; fiscal 2030 target: ¥480 billion
Operating profit marginFiscal 2025 actual: 5.6%; fiscal 2030 target: 15% (year-on-year change in percentage points: Not disclosed)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The economic value targets under Medium-Term Management Plan 2025 were not achieved. Some social value targets progressed as planned.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Declining demand, particularly for communications equipment, a delayed recovery from inventory adjustments and higher costs resulting from front-loaded capital investment. The company also referred to the withdrawal from unprofitable products and structural reforms. Amounts by factor: Not disclosed.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Foreign exchange assumption: US$1 = ¥140
  • MLCC demand for AI servers: CAGR of +32% from the fiscal 2025 base
  • Power inductor demand for AI servers: +18% on the same basis
  • AI server production volume: +5% on the same basis
  • MLCC demand for automotive applications: +5% on the same basis
  • Hybrid capacitor demand: +12% on the same basis
  • Automobile production volume: +2% on the same basis
  • MLCC units for high-end smartphones: 1,400–1,900
  • Inductor units for high-end smartphones: 65–80
New initiatives
  • Selective investment in growth markets such as AI servers and automobiles
  • From fiscal 2026, the "Composite Devices" and "Other" product categories will be consolidated
  • Expansion of next-generation solutions including all-solid-state batteries, SOFCs/SOECs, odor sensors and millimeter-wave devices
  • Improving data utilization and demand forecasting accuracy through DX
  • Shareholder returns based on a 30% payout ratio and a DOE of 3.5%
  • Targeting a 60% revenue mix from focus markets by fiscal 2030
Key KPIsA metric the company considers important as a management benchmark.
  • Revenue mix of focus marketsFiscal 2025: 54%
  • GHG Scope 1+2 emissionsFiscal 2025: 27.6% reduction (versus fiscal 2020)
  • GHG Scope 3 emissionsFiscal 2025: 14.3% increase (versus fiscal 2021)
  • Renewable energy adoption rate33.2%
  • Percentage of Female Managers7.7%
  • Equity ratio56.0%
  • Consolidated number of employees20,604 People
Medium-term management plan targets
Net Sales¥480 billion (fiscal 2030)
Operating profit margin15% (fiscal 2030)
ROE15% (fiscal 2030)
ROIC10% (fiscal 2030)
Revenue mix of focus markets60% (fiscal 2030)
GHG Scope1+242% reduction (fiscal 2030, versus fiscal 2020)
Financial targets
ROEFiscal 2030 target: 15%; fiscal 2025 actual: 4.5%
ROICFiscal 2030 target: 10%; fiscal 2025 actual: 3.0%
Equity ratioAt least 60% (target); fiscal 2025 actual: 56.0%
Cost of capitalFiscal 2025 actual: 8.2%–10.8%
Market Size / Share
Market share figures: Not disclosed. Market forecasts include a CAGR of +32% for AI server MLCC demand, +18% for power inductor demand, +5% for automotive MLCC demand and +12% for hybrid capacitor demand in fiscal 2030.
Number of stores and locations
19 production sites. The number of sites opened or closed during the period: Not disclosed.
Number of employees
Consolidated employee headcount: 20,604. Changes during the period and hiring plans: Not disclosed.
Capital expenditures
¥270.0 billion
Payout ratio
30%. The basic policy is a DOE of 3.5%, with a long-term target of 4.5%.
Acquisition of treasury shares
¥5 billion in fiscal 2021. None in fiscal 2022 through fiscal 2025. The repurchase framework during the Medium-Term Management Plan 2030 period: Not disclosed.
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredFiscal 2025 results and Medium-Term Management Plan 2030 (fiscal 2026 through fiscal 2030)
Net SalesFiscal 2025 actual: ¥355.3 billion; fiscal 2030 target: ¥480 billion
Operating profit marginFiscal 2025 actual: 5.6%; fiscal 2030 target: 15% (year-on-year change in percentage points: Not disclosed)
Self-assessment against the planThe economic value targets under Medium-Term Management Plan 2025 were not achieved. Some social value targets progressed as planned.
Breakdown of Factors Affecting the ChangeDeclining demand, particularly for communications equipment, a delayed recovery from inventory adjustments and higher costs resulting from front-loaded capital investment. The company also referred to the withdrawal from unprofitable products and structural reforms. Amounts by factor: Not disclosed.
Key KPIsIndicator name Revenue mix of focus markets / Value Fiscal 2025: 54% / Year on year against the same period last year Not disclosed, Indicator name GHG Scope 1+2 emissions / Value Fiscal 2025: 27.6% reduction (versus fiscal 2020) / Year on year against the same period last year Not disclosed, Indicator name GHG Scope 3 emissions / Value Fiscal 2025: 14.3% increase (versus fiscal 2021) / Year on year against the same period last year Not disclosed, Indicator name Renewable energy adoption rate / Value 33.2% / Year on year against the same period last year Not disclosed, Indicator name Percentage of Female Managers / Value 7.7% / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 56.0% / Year on year against the same period last year Not disclosed, Indicator name Consolidated number of employees / Value 20,604 People / Year on year against the same period last year Not disclosed
Number of stores and locations19 production sites. The number of sites opened or closed during the period: Not disclosed.
Number of employeesConsolidated employee headcount: 20,604. Changes during the period and hiring plans: Not disclosed.
Assumptions Underlying the Business OutlookForeign exchange assumption: US$1 = ¥140, MLCC demand for AI servers: CAGR of +32% from the fiscal 2025 base, Power inductor demand for AI servers: +18% on the same basis, AI server production volume: +5% on the same basis, MLCC demand for automotive applications: +5% on the same basis, Hybrid capacitor demand: +12% on the same basis, Automobile production volume: +2% on the same basis, MLCC units for high-end smartphones: 1,400–1,900, Inductor units for high-end smartphones: 65–80
Medium-term management plan targetsNet Sales ¥480 billion (fiscal 2030) / Operating profit margin 15% (fiscal 2030) / ROE 15% (fiscal 2030) / ROIC 10% (fiscal 2030) / Revenue mix of focus markets 60% (fiscal 2030) / GHG Scope1+2 42% reduction (fiscal 2030, versus fiscal 2020)
Financial targetsROE Fiscal 2030 target: 15%; fiscal 2025 actual: 4.5% / ROIC Fiscal 2030 target: 10%; fiscal 2025 actual: 3.0% / Equity ratio At least 60% (target); fiscal 2025 actual: 56.0% / Cost of capital Fiscal 2025 actual: 8.2%–10.8%
Payout ratio30%. The basic policy is a DOE of 3.5%, with a long-term target of 4.5%.
Acquisition of treasury shares¥5 billion in fiscal 2021. None in fiscal 2022 through fiscal 2025. The repurchase framework during the Medium-Term Management Plan 2030 period: Not disclosed.
Capital expenditures¥270.0 billion
Market Size / ShareMarket share figures: Not disclosed. Market forecasts include a CAGR of +32% for AI server MLCC demand, +18% for power inductor demand, +5% for automotive MLCC demand and +12% for hybrid capacitor demand in fiscal 2030.
New initiativesSelective investment in growth markets such as AI servers and automobiles, From fiscal 2026, the "Composite Devices" and "Other" product categories will be consolidated, Expansion of next-generation solutions including all-solid-state batteries, SOFCs/SOECs, odor sensors and millimeter-wave devices, Improving data utilization and demand forecasting accuracy through DX, Shareholder returns based on a 30% payout ratio and a DOE of 3.5%, Targeting a 60% revenue mix from focus markets by fiscal 2030
Items this document does not state (14)
Operating profitOrdinary incomeNet incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSegment resultsUnit price and quantity metricsRisk amount incorporated into the outlookAnnual DividendOrders received and order backlogKey points of the Q&A

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.

Under Medium-Term Management Plan 2025, the company failed to achieve its economic value targets because of declining demand for communications equipment, a delayed recovery from inventory adjustments and higher costs resulting from front-loaded capital investment. At the same time, it expects expanding demand for electronic components used in AI servers and automobiles to provide growth opportunities, and plans to develop high-value-added products and make selective capital investments under Medium-Term Management Plan 2030.

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Medium-Term Management Plan 2030 | TAIYO YUDEN CO.,LTD. (6976) timely disclosure | Komori