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How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+14.9%
基準 870Target1,000100 million
Operating profit+39.5%
基準 43Target60100 million
ROE+3.0pt
基準 7Target10%
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.
What happened to the previous planNot disclosed → Fiscal year ending August 2026 outlook: revenue of ¥87 billion, operating income of ¥4.3 billion, net income of ¥3.1 billion and ROE of 7.0%
Investment amount by sectorField Growth Investment / Amount ¥7 billion / Details Construction of the Kasugai No. 2 facility, capital investment for new themes (ROIC of at least 10%), and R&D investment, Field Human capital and management infrastructure investment / Amount ¥2 billion / Details DX investment and human capital investment
Statements about the use of capital
Payout ratio / DOE policyDuring the period of the Fifth Medium-Term Management Plan, dividends will have a floor of the higher of a 50% dividend payout ratio and a 4% dividend on equity (DOE).The 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 will consider share repurchases while taking into account the allocation of funds to growth investments and capital efficiency. In light of cash flow and the status of investment projects, it will consider share repurchases as additional returns to shareholders.
Key initiatives
01Improve operations through DX, including standardization and the use of AI
02Concentrated investment in manufacturing and development functions
03Transforming the business model by leveraging technology (strengthening engineering capabilities)
04Developing future growth drivers in semiconductors, beverages and food, healthcare and other areas, in addition to the current core businesses serving the automotive and electrical equipment industries
05Creating new businesses by providing value to Global South markets
06Pursuing future advanced production technology fields, including aerospace, semiconductor electronics, HVAC, and advanced robotics incorporating physical AI
07Increasing added value by deepening unique core technologies
08Expanding systems to recruit and develop talent capable of working globally
09Sustainable growth through stronger governance
10Proactive initiatives addressing climate change
11Strengthening returns to stakeholders, including society, business partners and employees
12Enhance corporate value by improving capital efficiency and strengthening shareholder returns
13Horizontal expansion of the smart factory business across the manufacturing sector
14Expanding products for semiconductor back-end manufacturing processes
15Pursuing new themes utilizing metal-bonding technology
16Expanding into India, the most important growth market
17Expanding into Vietnam
18Strengthening Collaboration with Partner Companies
19Turning environmental regulations into business opportunities
20Improving the capabilities of local engineers
21Addressing previously unseen heat-generation densities
Plan assumptionsThe global semiconductor market is expected to grow from ¥120 trillion to ¥300 trillion in the 2027s, The global aerospace market is expected to reach approximately ¥140 trillion by 2040, The Japanese aerospace market is expected to grow from ¥4 trillion to approximately ¥8 trillion in the 2030s, The Japanese smart factory market is expected to grow from ¥1 trillion to ¥2.1 trillion by 2034, Air conditioner demand is expected to increase at a CAGR of 7% through 2030
Segment targetSubject Automotive industry / Indicator Revenue mix by user segment / Current status 71.9% / Vision 60.0%, Subject All products / Indicator Product mix as a percentage of revenue / Current status 20% / Target 30%
Non-financial targetsIndicator Number of technical personnel hired / Target value 50 people over 3 years / Timing Fifth Medium-Term Management Plan period, Indicator Average salary level / Target value 6.5% annual increase / Timing Fifth Medium-Term Management Plan period, Indicator CO2 emissions / Target value 42% reduction (2020 baseline) / Timing By 2030, Indicator Share of next-generation vehicles in the domestic company-owned vehicle fleet / Target value 80% / Timing By 2030, Indicator Percentage of women in management positions (consolidated basis) / Target value 12.0% / Timing Fiscal year ending August 2029
Size of the Target MarketMarket Semiconductors / Size and growth rate Global market to grow from ¥120 trillion to ¥300 trillion in the 2027s / Source Results of the Spring 2026 Semiconductor Market Forecast by the Japan Council of the World Semiconductor Trade Statistics (WSTS), Market Aerospace / Size and growth rate Global market to reach ¥140 trillion by 2040; Japanese market to grow from ¥4 trillion to ¥8 trillion in the 2030s / Source METI initiatives and future plans based on trends in Japan's and overseas space industries, Market Smart Factory / Size and growth rate Japanese market to grow from ¥1 trillion to ¥2.1 trillion by 2034 / Source The International Market Analysis Research and Consulting Group report on the Japanese smart factory market, Market HVAC / Size and growth rate Air conditioner demand to increase at a CAGR of 7% through 2030 / Source Not disclosed
Risks identified by the company
Rising geopolitical risks
Intensifying competition in existing mature markets
A slowdown in the Chinese economy and spillover effects on neighboring countries
Responding to Brazil and Argentina, which has high business risks
Investment cycles specific to the semiconductor industry
Sharp fluctuations in supply and demand
Argentina's high business risk
Controlling risks in unstable markets
Difficulty in securing and retaining technical personnel
| Item | Details |
|---|---|
| Plan name | Fifth Medium-Term Management Plan (Shinwa moving forward 2029) |
| Plan period | 1 September 2026 to 31 August 2029 |
| Progress against the plan | Formulated |
| Sales Target | ¥870 100 million → ¥1,000 100 million |
| Operating profit target | ¥43 100 million → ¥60 100 million |
| ROE target | 7.0% → 10% or higher |
| Payout ratio / DOE policy | During the period of the Fifth Medium-Term Management Plan, dividends will have a floor of the higher of a 50% dividend payout ratio and a 4% dividend on equity (DOE). |
| Treasury share acquisition policy | The Company will consider share repurchases while taking into account the allocation of funds to growth investments and capital efficiency. In light of cash flow and the status of investment projects, it will consider share repurchases as additional returns to shareholders. |
| Investment amount by sector | Field Growth Investment / Amount ¥7 billion / Details Construction of the Kasugai No. 2 facility, capital investment for new themes (ROIC of at least 10%), and R&D investment, Field Human capital and management infrastructure investment / Amount ¥2 billion / Details DX investment and human capital investment |
| Segment target | Subject Automotive industry / Indicator Revenue mix by user segment / Current status 71.9% / Vision 60.0%, Subject All products / Indicator Product mix as a percentage of revenue / Current status 20% / Target 30% |
| Non-financial targets | Indicator Number of technical personnel hired / Target value 50 people over 3 years / Timing Fifth Medium-Term Management Plan period, Indicator Average salary level / Target value 6.5% annual increase / Timing Fifth Medium-Term Management Plan period, Indicator CO2 emissions / Target value 42% reduction (2020 baseline) / Timing By 2030, Indicator Share of next-generation vehicles in the domestic company-owned vehicle fleet / Target value 80% / Timing By 2030, Indicator Percentage of women in management positions (consolidated basis) / Target value 12.0% / Timing Fiscal year ending August 2029 |
| Plan assumptions | The global semiconductor market is expected to grow from ¥120 trillion to ¥300 trillion in the 2027s, The global aerospace market is expected to reach approximately ¥140 trillion by 2040, The Japanese aerospace market is expected to grow from ¥4 trillion to approximately ¥8 trillion in the 2030s, The Japanese smart factory market is expected to grow from ¥1 trillion to ¥2.1 trillion by 2034, Air conditioner demand is expected to increase at a CAGR of 7% through 2030 |
| Key initiatives | Improve operations through DX, including standardization and the use of AI, Concentrated investment in manufacturing and development functions, Transforming the business model by leveraging technology (strengthening engineering capabilities), Developing future growth drivers in semiconductors, beverages and food, healthcare and other areas, in addition to the current core businesses serving the automotive and electrical equipment industries, Creating new businesses by providing value to Global South markets, Pursuing future advanced production technology fields, including aerospace, semiconductor electronics, HVAC, and advanced robotics incorporating physical AI, Increasing added value by deepening unique core technologies, Expanding systems to recruit and develop talent capable of working globally, Sustainable growth through stronger governance, Proactive initiatives addressing climate change, Strengthening returns to stakeholders, including society, business partners and employees, Enhance corporate value by improving capital efficiency and strengthening shareholder returns, Horizontal expansion of the smart factory business across the manufacturing sector, Expanding products for semiconductor back-end manufacturing processes, Pursuing new themes utilizing metal-bonding technology, Expanding into India, the most important growth market, Expanding into Vietnam, Strengthening Collaboration with Partner Companies, Turning environmental regulations into business opportunities, Improving the capabilities of local engineers, Addressing previously unseen heat-generation densities |
| Results under the previous plan | Not disclosed → Fiscal year ending August 2026 outlook: revenue of ¥87 billion, operating income of ¥4.3 billion, net income of ¥3.1 billion and ROE of 7.0% |
| Size of the Target Market | Market Semiconductors / Size and growth rate Global market to grow from ¥120 trillion to ¥300 trillion in the 2027s / Source Results of the Spring 2026 Semiconductor Market Forecast by the Japan Council of the World Semiconductor Trade Statistics (WSTS), Market Aerospace / Size and growth rate Global market to reach ¥140 trillion by 2040; Japanese market to grow from ¥4 trillion to ¥8 trillion in the 2030s / Source METI initiatives and future plans based on trends in Japan's and overseas space industries, Market Smart Factory / Size and growth rate Japanese market to grow from ¥1 trillion to ¥2.1 trillion by 2034 / Source The International Market Analysis Research and Consulting Group report on the Japanese smart factory market, Market HVAC / Size and growth rate Air conditioner demand to increase at a CAGR of 7% through 2030 / Source Not disclosed |
| Risks identified | Rising geopolitical risks, Intensifying competition in existing mature markets, A slowdown in the Chinese economy and spillover effects on neighboring countries, Responding to Brazil and Argentina, which has high business risks, Investment cycles specific to the semiconductor industry, Sharp fluctuations in supply and demand, Argentina's high business risk, Controlling risks in unstable markets, Difficulty in securing and retaining technical personnel |
| Date of board resolution | 20 July 2026 |
| Publication date | 21 July 2026 |
Items this document does not state (7)
Operating profit margin targetNet income targetROIC targetCost of capitalSelf-assessment of PBR and share priceTotal investment planReason for revision or withdrawal
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.Amid significant changes in the business environment, the Company aims to regard this period of transformation as an opportunity for growth and achieve sustained growth in corporate value by strengthening the competitiveness of existing businesses, pursuing opportunities in growth markets and accelerating global expansion.
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