Worth reading
89Important
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
50
¥ billions (increase in the ordinary profit target for the final year)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedROE-2,013.0pt
基準 2,025Target12%
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).
What happened to the previous planOrdinary profit of ¥70.0 billion, global steel handling volume of 17.0 million tonnes, average ROE of 12.0% over the plan period, final-year Net DER of 1.0x or less, cumulative investment and financing limit of ¥80.0 billion, and a final-year DOE floor of 2.5% → Ordinary profit of ¥52.2 billion, global steel handling volume of 14.33 million tonnes, average ROE of 12.8% over the plan period, final-year Net DER of 0.6x, cumulative investment and financing of ¥68.8 billion on an executed basis, final-year DOE of 3.4%, and cumulative share buybacks of ¥12.0 billion-14.0%Calculated from the two disclosed figures
Total investment planApproximately ¥160.0 billion (cumulative over the 3-year medium-term plan period)
Investment amount by sectorField Growth Investment / Amount Approximately ¥120.0 billion, Field Investment for group optimization (including capital expenditure) / Amount Approximately ¥40.0 billion
Statements about the use of capital
Payout ratio / DOE policyThe Company will continue to follow a basic policy of stable and progressive dividends. It will raise the DOE floor from 2.5% to 3.5% and target a total payout ratio of approximately 40%, through dividends and share buybacks. Period covered: FY2026-FY2028The 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 conduct flexible and continuous share buybacks. The chart states a share buyback amount of ¥5.0 billion for FY2026. The overall acquisition limit, timing and conditions for the plan period are not disclosed
Cost of capitalCost of equity: 8-9% (CAPM level)The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR was 0.70x in FY2025, and the Company recognizes that its PER remains an issue. It aims to achieve a PBR of at least 1x by maintaining and improving ROE and fostering expectations for growthPBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Strengthen execution of business strategies to optimize the entire supply chain
02Upgrade capital allocation and portfolio management, including stronger management control, investment and financing management, and governance
03Optimize the Group's businesses in light of the increasing number of Group companies
04Accelerate expansion into growth areas and markets based on a stable existing business platform
05Improve capital-market valuation
06Establish a framework enabling faster and more appropriate management decisions, including further delegation of authority to the business execution organization
07Strengthen the human capital strategy and review the organizational structure as the workforce becomes more diverse
08Embed DX, AI and data utilization into management and strengthen the sustainability management framework
09Europe and Americas strategy
10Engineering Business
11Processing solutions business
12Environmentally considerate raw materials and fuel business
13Battery materials, energy storage batteries and electricity businesses
14Renewable energy business
15Strengthen implementation of new investment and exit criteria
16Reduce the number of loss-making Group companies
17Reduction of cross-shareholdings
18Introduce a risk appetite framework
19Expand new products and materials
20Promote localization through M&A, joint ventures and other means
Segment targetSegment name Steel / FY2025 actual ¥38.7 billion / FY2026 forecast ¥34.0 billion / Fiscal 2028 target ¥43.5 billion, Segment name Primary Metals / FY2025 actual Down ¥100 million / FY2026 forecast ¥4.5 billion / Fiscal 2028 target ¥5 billion, Segment name Recycled Metals / FY2025 actual ¥1.3 billion / FY2026 forecast ¥3.5 billion / Fiscal 2028 target ¥4.5 billion, Segment name Food / FY2025 actual ¥3 billion / FY2026 forecast ¥3.5 billion / Fiscal 2028 target ¥5 billion, Segment name Energy and Daily Materials / FY2025 actual ¥8.5 billion / FY2026 forecast ¥10 billion / Fiscal 2028 target ¥14.0 billion, Segment name Overseas Sales Subsidiaries / FY2025 actual ¥5.5 billion / FY2026 forecast ¥6.5 billion / Fiscal 2028 target ¥13.0 billion, Segment name Other / FY2025 actual ¥2.1 billion / FY2026 forecast ¥3.5 billion / Fiscal 2028 target ¥5 billion, Segment name Adjustments / FY2025 actual ▲¥6.8 billion / FY2026 forecast ▲¥8.5 billion / Fiscal 2028 target -¥15 billion, Segment name Total / FY2025 actual ¥52.2 billion / FY2026 forecast ¥57.0 billion / Fiscal 2028 target ¥75 billion
Non-financial targetsIndicator name Engagement score / Target value 65 or higher / Timing Not disclosed, Indicator name Domestic MBA sponsorships / Target value 45 people/3 years / Timing 3 years
Risks identified by the company
Domestic population decline and structural changes in the labor market
Protectionist trade environment and geopolitical risks
A world of interest rates
Decarbonization and environmental regulations
Widening disparities in growth rates across regions
Securing a stable supply of critical minerals with high supply risk
Increasing uncertainty in resource procurement and supply
Contraction of the domestic food market and changes in consumption patterns
Increasing volatility risk in raw material prices
Major structural changes in the chemicals industry stemming from China's oversupply
Increasing risks associated with the growing complexity of legal, regulatory and certification requirements
Increasing difficulty in securing raw materials as a result of the energy transition
Progression of protectionism and increasing uncertainty in raw material procurement
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2028 (Go Beyond ~Break Through Your Shell~) |
| Plan period | FY2026-FY2028 |
| Progress against the plan | Formulated |
| ROE target | 12.8% (FY2025 actual) → At least 12.0% (final year of the medium-term plan) |
| Payout ratio / DOE policy | The Company will continue to follow a basic policy of stable and progressive dividends. It will raise the DOE floor from 2.5% to 3.5% and target a total payout ratio of approximately 40%, through dividends and share buybacks. Period covered: FY2026-FY2028 |
| Treasury share acquisition policy | The Company will conduct flexible and continuous share buybacks. The chart states a share buyback amount of ¥5.0 billion for FY2026. The overall acquisition limit, timing and conditions for the plan period are not disclosed |
| Cost of capital | Cost of equity: 8-9% (CAPM level) |
| Self-assessment of PBR and share price | PBR was 0.70x in FY2025, and the Company recognizes that its PER remains an issue. It aims to achieve a PBR of at least 1x by maintaining and improving ROE and fostering expectations for growth |
| Total investment plan | Approximately ¥160.0 billion (cumulative over the 3-year medium-term plan period) |
| Investment amount by sector | Field Growth Investment / Amount Approximately ¥120.0 billion, Field Investment for group optimization (including capital expenditure) / Amount Approximately ¥40.0 billion |
| Segment target | Segment name Steel / FY2025 actual ¥38.7 billion / FY2026 forecast ¥34.0 billion / Fiscal 2028 target ¥43.5 billion, Segment name Primary Metals / FY2025 actual Down ¥100 million / FY2026 forecast ¥4.5 billion / Fiscal 2028 target ¥5 billion, Segment name Recycled Metals / FY2025 actual ¥1.3 billion / FY2026 forecast ¥3.5 billion / Fiscal 2028 target ¥4.5 billion, Segment name Food / FY2025 actual ¥3 billion / FY2026 forecast ¥3.5 billion / Fiscal 2028 target ¥5 billion, Segment name Energy and Daily Materials / FY2025 actual ¥8.5 billion / FY2026 forecast ¥10 billion / Fiscal 2028 target ¥14.0 billion, Segment name Overseas Sales Subsidiaries / FY2025 actual ¥5.5 billion / FY2026 forecast ¥6.5 billion / Fiscal 2028 target ¥13.0 billion, Segment name Other / FY2025 actual ¥2.1 billion / FY2026 forecast ¥3.5 billion / Fiscal 2028 target ¥5 billion, Segment name Adjustments / FY2025 actual ▲¥6.8 billion / FY2026 forecast ▲¥8.5 billion / Fiscal 2028 target -¥15 billion, Segment name Total / FY2025 actual ¥52.2 billion / FY2026 forecast ¥57.0 billion / Fiscal 2028 target ¥75 billion |
| Non-financial targets | Indicator name Engagement score / Target value 65 or higher / Timing Not disclosed, Indicator name Domestic MBA sponsorships / Target value 45 people/3 years / Timing 3 years |
| Key initiatives | Strengthen execution of business strategies to optimize the entire supply chain, Upgrade capital allocation and portfolio management, including stronger management control, investment and financing management, and governance, Optimize the Group's businesses in light of the increasing number of Group companies, Accelerate expansion into growth areas and markets based on a stable existing business platform, Improve capital-market valuation, Establish a framework enabling faster and more appropriate management decisions, including further delegation of authority to the business execution organization, Strengthen the human capital strategy and review the organizational structure as the workforce becomes more diverse, Embed DX, AI and data utilization into management and strengthen the sustainability management framework, Europe and Americas strategy, Engineering Business, Processing solutions business, Environmentally considerate raw materials and fuel business, Battery materials, energy storage batteries and electricity businesses, Renewable energy business, Strengthen implementation of new investment and exit criteria, Reduce the number of loss-making Group companies, Reduction of cross-shareholdings, Introduce a risk appetite framework, Expand new products and materials, Promote localization through M&A, joint ventures and other means |
| Results under the previous plan | Ordinary profit of ¥70.0 billion, global steel handling volume of 17.0 million tonnes, average ROE of 12.0% over the plan period, final-year Net DER of 1.0x or less, cumulative investment and financing limit of ¥80.0 billion, and a final-year DOE floor of 2.5% → Ordinary profit of ¥52.2 billion, global steel handling volume of 14.33 million tonnes, average ROE of 12.8% over the plan period, final-year Net DER of 0.6x, cumulative investment and financing of ¥68.8 billion on an executed basis, final-year DOE of 3.4%, and cumulative share buybacks of ¥12.0 billion |
| Risks identified | Domestic population decline and structural changes in the labor market, Protectionist trade environment and geopolitical risks, A world of interest rates, Decarbonization and environmental regulations, Widening disparities in growth rates across regions, Securing a stable supply of critical minerals with high supply risk, Increasing uncertainty in resource procurement and supply, Contraction of the domestic food market and changes in consumption patterns, Increasing volatility risk in raw material prices, Major structural changes in the chemicals industry stemming from China's oversupply, Increasing risks associated with the growing complexity of legal, regulatory and certification requirements, Increasing difficulty in securing raw materials as a result of the energy transition, Progression of protectionism and increasing uncertainty in raw material procurement |
| Publication date | 12 May 2026 |
Items this document does not state (9)
Sales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetPlan assumptionsReason 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.The Company explains that, building on the strengthened financial base and risk management framework established under the previous plan, it will shift toward proactive business investment aimed at discontinuous growth. It also cites the need to respond to an increasingly uncertain business environment, including population decline, a protectionist trade environment, geopolitical risks, and decarbonization and environmental regulations.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.