Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
—
Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedROELatest actual: 7.8% (25.3) → Not disclosed
ROICLatest actual: 5.9% (25.3) → Not disclosed
Only the target level is shown because the current level for comparison was not provided.Statements about the use of capital
Payout ratio / DOE policyIn addition to a payout ratio of 70% (±5%), a DOE of 5% was set as the minimum dividend level. The applicable period is Not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of equity: 7–8%; WACC: 5–6%. Based on CAPM.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe current PBR is above 1x. PBR was 1.18x in 25.3. ROE of 7.8% and ROIC of 5.9% are at approximately the same levels as the recognized cost of equity and WACC, respectively.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Increase earnings by combining the value provided
02Implement and promote growth investments, including M&A
03Evaluate and review the business portfolio as appropriate
04Improve the efficiency of working capital, particularly inventory
05Reduction of cross-shareholdings
06Shareholder return policy balanced against growth investment
07Manage the debt-to-equity ratio and equity ratio
08Expand IR and SR communications
09Disseminate ESG and other sustainability information
10Combine solutions according to customer needs
11Create and scale new businesses
12Improve capital efficiency by reducing inventory
13Strengthen ROIC management
14Optimize inventory management across ASEAN and Greater China
15Expand the portfolio by upgrading the supplier network
16Expand and strengthen the Company's presence across the value chain
17Combine the value provided through cross-selling
18Develop and sell packaging-related equipment
19Plus-alpha solutions
20Address more advanced customer needs in new fields by creating original products
21Strengthen the handling and production capabilities for high-value-added original products through capital investment
22Develop chemicals and provide wastewater solutions by combining Clearize's analytical and wastewater treatment technologies
23Provide electronics solutions, including AI monitoring systems and automated management equipment
24Fully roll out environmental solutions developed in Japan and Asia in the Indian market, where wastewater regulations, including Zero Liquid Discharge, are stringent
Plan assumptionsSemiconductors are expected to maintain a high growth rate, Trends in the global semiconductor market size from 2020 to 2026 (2025 and 2026 are forecasts), Trends in sales of semiconductor and FPD manufacturing equipment made in Japan from fiscal 2020 to fiscal 2026 (fiscal 2025 and fiscal 2026 are forecasts), Outlook for Japan and the 10 G20 countries with the highest projected GDP growth rates in 2027
Segment targetSegment Electronic Components Business / Indicator ROIC-WACC spread / 25.3 actuals (excluding foreign exchange effects) ▲1.5～▲1.0％ / 29.3 plan 2.5～3.0％, Segment Electronic and Electrical Equipment Business / Indicator ROIC-WACC spread / 25.3 actuals (excluding foreign exchange effects) 2.5～3.0％ / 29.3 plan 4.5～5.0％, Segment Chemicals Business / Indicator ROIC-WACC spread / 25.3 actuals (excluding foreign exchange effects) ▲8.0～▲7.5％ / 29.3 plan ▲1.5～▲1.0％
Size of the Target MarketGlobal semiconductor market size: 2020–2026; unit: USD millions; source: World Semiconductor Trade Statistics (WSTS). 2025 and 2026 are forecasts., Sales of semiconductor/FPD manufacturing equipment made in Japan: fiscal 2020–fiscal 2026; unit: ¥100 million; source: Demand Forecast for Semiconductor and FPD Manufacturing Equipment, Semiconductor Equipment and Materials International Japan. Fiscal 2025 and fiscal 2026 are forecasts., Outlook for GDP growth by country: the 10 G20 countries with the highest projected GDP growth rates in 2027 plus Japan; source: OECD.
Risks identified by the company
Emergence of new competitors as technology evolves
Commoditization and obsolescence of existing technologies and value propositions
The role and functions expected of trading companies in the semiconductor industry are changing, raising renewed questions about their raison d'être
Reason for revision or withdrawal
Reviewed to update the "Actions to Realize Management That Is Conscious of the Cost of Capital and Share Price" announced on 30 April 2024. The initiatives were made more specific based on discussions with investors and the external environment. The Company recognized the high urgency and importance of measures to improve capital efficiency, particularly inventory reduction.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan Hakuto 2028 |
| Progress against the plan | Partially revised |
| ROE target | Latest actual: 7.8% (25.3) → Not disclosed |
| ROIC target | Latest actual: 5.9% (25.3) → Not disclosed |
| Payout ratio / DOE policy | In addition to a payout ratio of 70% (±5%), a DOE of 5% was set as the minimum dividend level. The applicable period is Not disclosed. |
| Cost of capital | Cost of equity: 7–8%; WACC: 5–6%. Based on CAPM. |
| Self-assessment of PBR and share price | The current PBR is above 1x. PBR was 1.18x in 25.3. ROE of 7.8% and ROIC of 5.9% are at approximately the same levels as the recognized cost of equity and WACC, respectively. |
| Segment target | Segment Electronic Components Business / Indicator ROIC-WACC spread / 25.3 actuals (excluding foreign exchange effects) ▲1.5～▲1.0％ / 29.3 plan 2.5～3.0％, Segment Electronic and Electrical Equipment Business / Indicator ROIC-WACC spread / 25.3 actuals (excluding foreign exchange effects) 2.5～3.0％ / 29.3 plan 4.5～5.0％, Segment Chemicals Business / Indicator ROIC-WACC spread / 25.3 actuals (excluding foreign exchange effects) ▲8.0～▲7.5％ / 29.3 plan ▲1.5～▲1.0％ |
| Plan assumptions | Semiconductors are expected to maintain a high growth rate, Trends in the global semiconductor market size from 2020 to 2026 (2025 and 2026 are forecasts), Trends in sales of semiconductor and FPD manufacturing equipment made in Japan from fiscal 2020 to fiscal 2026 (fiscal 2025 and fiscal 2026 are forecasts), Outlook for Japan and the 10 G20 countries with the highest projected GDP growth rates in 2027 |
| Key initiatives | Increase earnings by combining the value provided, Implement and promote growth investments, including M&A, Evaluate and review the business portfolio as appropriate, Improve the efficiency of working capital, particularly inventory, Reduction of cross-shareholdings, Shareholder return policy balanced against growth investment, Manage the debt-to-equity ratio and equity ratio, Expand IR and SR communications, Disseminate ESG and other sustainability information, Combine solutions according to customer needs, Create and scale new businesses, Improve capital efficiency by reducing inventory, Strengthen ROIC management, Optimize inventory management across ASEAN and Greater China, Expand the portfolio by upgrading the supplier network, Expand and strengthen the Company's presence across the value chain, Combine the value provided through cross-selling, Develop and sell packaging-related equipment, Plus-alpha solutions, Address more advanced customer needs in new fields by creating original products, Strengthen the handling and production capabilities for high-value-added original products through capital investment, Develop chemicals and provide wastewater solutions by combining Clearize's analytical and wastewater treatment technologies, Provide electronics solutions, including AI monitoring systems and automated management equipment, Fully roll out environmental solutions developed in Japan and Asia in the Indian market, where wastewater regulations, including Zero Liquid Discharge, are stringent |
| Reason for revision or withdrawal | Reviewed to update the "Actions to Realize Management That Is Conscious of the Cost of Capital and Share Price" announced on 30 April 2024. The initiatives were made more specific based on discussions with investors and the external environment. The Company recognized the high urgency and importance of measures to improve capital efficiency, particularly inventory reduction. |
| Size of the Target Market | Global semiconductor market size: 2020–2026; unit: USD millions; source: World Semiconductor Trade Statistics (WSTS). 2025 and 2026 are forecasts., Sales of semiconductor/FPD manufacturing equipment made in Japan: fiscal 2020–fiscal 2026; unit: ¥100 million; source: Demand Forecast for Semiconductor and FPD Manufacturing Equipment, Semiconductor Equipment and Materials International Japan. Fiscal 2025 and fiscal 2026 are forecasts., Outlook for GDP growth by country: the 10 G20 countries with the highest projected GDP growth rates in 2027 plus Japan; source: OECD. |
| Risks identified | Emergence of new competitors as technology evolves, Commoditization and obsolescence of existing technologies and value propositions, The role and functions expected of trading companies in the semiconductor industry are changing, raising renewed questions about their raison d'être |
| Date of board resolution | 31 March 2026 |
| Publication date | 31 March 2026 |
Items this document does not state (10)
Plan periodSales TargetOperating profit targetOperating profit margin targetNet income targetTreasury share acquisition policyTotal investment planInvestment amount by sectorNon-financial targetsResults under the previous plan
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.The policy was reviewed to update the actions announced on 30 April 2024. Based on discussions with investors and the external environment, the Company recognized the high urgency and importance of measures to improve capital efficiency, particularly inventory reduction.
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