ROIC Management by Business Unit and Exceeding the Hurdle Rate
First written in FY2016. 5 of 11 entries say "Raised", first in FY2019. Latest entry: 2026-10-06.
The whole theme swung hardest in 2025: 1 of 7 companies on the "Worse" side.
0 other companies' latest entry also says "Raised".
- FY2026RaisedAnnual report
「The company will continue working toward a business profit margin of more than 10% in every business, while seeking the early commercialization of new businesses such as hydrogen and medical robots.」
In addition to the Group-wide target of more than 10% in fiscal 2030, the company explicitly stated a policy of targeting more than 10% in every business, broadening the scope. The business profit margin was 6.3% in fiscal 2025, and is expected to be 6.6% in fiscal 2026. - FY2024RaisedAnnual report
「The Group targets a business profit margin of 8% by fiscal 2027 and more than 10% by fiscal 2030, and after-tax ROIC of at least 3% above the cost of capital (WACC).」
The company set time-bound, phased targets for the business profit margin of 8% in fiscal 2027 and more than 10% in fiscal 2030, replacing the previous indicators of an operating margin of 5–8% and pre-tax ROIC at least 3% above the cost of capital. For fiscal 2024, it expects a business profit margin of 5.8% and after-tax ROIC of 6.7%. - FY2022ReframedAnnual report
「The company will work to secure an operating margin of 5–8% and pre-tax ROIC at least 3% above the cost of capital.」
The company reorganized its management indicators from the previous target of ROIC of at least 8% to a combination of an operating margin of 5–8% and the margin by which pre-tax ROIC exceeds the cost of capital. It also disclosed ROIC by segment, with company-wide pre-tax ROIC at 3.5%. - FY2019RaisedAnnual report
「To exceed the 8% ROIC hurdle rate, the minimum level to be secured, across the consolidated Group at an early stage, the company will manage profitability for each subdivided business unit (BU) more rigorously than before and seek to enhance corporate value across the Group.」
The company stated a target of exceeding 8% ROIC across the consolidated Group at an early stage while continuing management at the BU level. - FY2016First statedAnnual report
「The Group manages ROIC for each business unit (BU), created by subdividing its businesses. For BUs whose ROIC is below the hurdle rate, it develops specific measures after clarifying when ROIC will exceed the hurdle rate and the issues to be addressed to achieve this.」
ROIC is managed at the BU level, with an improvement timeline and issues to be addressed set for BUs that fall short of the hurdle rate.