Worth reading
31Immaterial
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
-7.3
Year-on-year change in ROE (percentage points)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateNet income for the current fiscal year-2,022.0pt
基準 2,026Target4％
ROE-2,020.0pt
基準 2,026Target6％
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).
Operating profit marginNot disclosed → Operating profit margin of approximately 5–6%
Only the target level is shown because the current level for comparison was not provided.Statements about the use of capital
Cost of capitalCost of capital for the fiscal year ended March 2026: 6.79%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 Company analyzes that PBR and ROE have a certain degree of correlation, while PBR and PER are not correlated. A specific current PBR level and an explicit self-assessment that PBR is low are not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Develop products selected and appreciated by customers
02Concentrate resources in regions and markets with demand
03Strengthen proposal capabilities by leveraging business value (New Zealand's sustainable forestry management)
04Strengthen overseas sales through overseas subsidiaries
05Transfer and consolidate production
06Promote digital transformation
07Strengthen efforts to reduce selling, general and administrative expenses
08Embed the profit-margin plan (earnings plan) into management control
09New personnel system
Plan assumptionsThe cost of capital fluctuates depending on market interest rates and the stock price, and rises particularly when market interest rates increase., A certain degree of cost increase is assumed in an inflationary environment., A sharp acceleration in inflationary pressure resulting from the worsening situation in the Middle East is assumed.
Risks identified by the company
Increase in the cost of capital resulting from higher market interest rates
Contractionary equilibrium resulting from excessive focus on profit margins alone
Sharp acceleration in inflationary pressure resulting from the worsening situation in the Middle East
| Item | Details |
|---|---|
| Plan name | Update on Initiatives to Achieve Management Conscious of Capital Costs and Share Prices |
| Plan period | Fiscal 2025 (actual) to fiscal 2026 (plan) |
| Progress against the plan | Annual update |
| Operating profit margin target | Not disclosed → Operating profit margin of approximately 5–6% |
| Net income target | Fiscal year ended March 2026 actual: -2.2% (net profit margin on sales) → Raise the consolidated net profit margin to 3–4% |
| ROE target | Fiscal year ended March 2026 actual: -3.3% → Target ROE of approximately 5–6% or higher |
| Cost of capital | Cost of capital for the fiscal year ended March 2026: 6.79% |
| Self-assessment of PBR and share price | The Company analyzes that PBR and ROE have a certain degree of correlation, while PBR and PER are not correlated. A specific current PBR level and an explicit self-assessment that PBR is low are not disclosed. |
| Plan assumptions | The cost of capital fluctuates depending on market interest rates and the stock price, and rises particularly when market interest rates increase., A certain degree of cost increase is assumed in an inflationary environment., A sharp acceleration in inflationary pressure resulting from the worsening situation in the Middle East is assumed. |
| Key initiatives | Develop products selected and appreciated by customers, Concentrate resources in regions and markets with demand, Strengthen proposal capabilities by leveraging business value (New Zealand's sustainable forestry management), Strengthen overseas sales through overseas subsidiaries, Transfer and consolidate production, Promote digital transformation, Strengthen efforts to reduce selling, general and administrative expenses, Embed the profit-margin plan (earnings plan) into management control, New personnel system |
| Risks identified | Increase in the cost of capital resulting from higher market interest rates, Contractionary equilibrium resulting from excessive focus on profit margins alone, Sharp acceleration in inflationary pressure resulting from the worsening situation in the Middle East |
| Publication date | 1 June 2026 |
Items this document does not state (13)
Sales TargetOperating profit targetROIC targetPayout ratio / DOE policyTreasury share acquisition policyTotal investment planInvestment amount by sectorSegment targetNon-financial targetsResults under the previous planReason for revision or withdrawalSize of the Target MarketDate of board resolution
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.Focusing solely on profit margins could lead to a contractionary equilibrium in which sales are reduced to increase margins. Therefore, sales initiatives and profit-margin initiatives will be pursued as a package. The primary factor behind the decline in ROE was the decrease in the net profit margin on sales. The Company will first focus on raising the consolidated net profit margin to 3–4% and the operating profit margin to approximately 5–6%. It will also continue responding to the increase in the cost of capital resulting from higher market interest rates and the accelerating inflationary pressure caused by the worsening situation in the Middle East.
How to read this page
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.