Improving Revenue Growth and ROE

「The group has adopted ROE as one of its key indicators, and Medium-Term Management Plan 2027 targets ROE of at least 12.0%. The group’s ROE for the consolidated fiscal year was 17.8%.」

「For the final year of the plan, fiscal 2027, the company set targets of revenue of at least ¥800.0 billion and operating profit of at least ¥36.0 billion. Of these, the targets from organic growth are revenue of at least ¥700.0 billion and operating profit of at least ¥35.0 billion. Although the business environment is expected to be challenging, the company aims to secure an operating margin of 5.0%. The CAGR from fiscal 2024 results is 8.5% for revenue and 14.0% for operating profit. In line with its basic policy of prioritising capital efficiency, the final-year ROE target was set at at least 12.0%, with the current cost of shareholders’ equity of 10% in mind.」

「In November 2021, the group formulated Medium-Term Management Plan 2024, a three-year management plan covering the fiscal years ending March 2023 through March 2025. After achieving the operating profit and ROE targets two years ahead of schedule in the first year, the previous fiscal year, the group announced its latest outlook in May 2023 of revenue of ¥750.0 billion, operating profit of at least ¥30.0 billion, and ROE of at least 10%. For the second year of the plan, the fiscal year ending March 2024, the group announced an earnings outlook for lower revenue and profit on the assumption that the impact of inventory adjustments would become evident in the supply chain in which the group’s electronic component business is involved. However, the first quarter made a strong start, exceeding the internal plan.」

「In the fiscal year ending March 2023, the first year after this plan was launched, the group achieved all of its final-year management targets for revenue, operating profit, and ROE two years ahead of schedule, excluding the new M&A target, despite the continuing global shortage of semiconductors and electronic components. This was the result of maximising the group’s strength in procurement.」

「In November 2021, our Group announced its three-year management plan, the “Medium-Term Management Plan 2024 (2022-2024),” covering the fiscal years ending March 2023 through March 2025. The plan positions “organic growth + new M&A” as its growth engine, aims to strengthen and expand the overseas and EMS businesses, and seeks to achieve sales of ¥750 billion and become a top-tier company in Japan's industry in the fiscal year ending March 2025, its final year. In the first year of the new medium-term management plan, the fiscal year ending March 2023 progressed steadily in this manner.」

「With autonomous growth and new M&A as its growth engines, the group will strengthen and expand its overseas and EMS businesses and made a strong start in the first year of its new medium-term management plan, which aims to achieve revenue of ¥750.0 billion and become a top-tier company in its industry in Japan in the fiscal year ending March 2025.」

「In November 2021, the group announced Medium-Term Management Plan 2024, a three-year management plan covering the fiscal years ending March 2023 through March 2025. With autonomous growth and new M&A as its growth engines, the group will strengthen and expand its overseas and EMS businesses. It made a strong start in the first quarter of the first year of the new medium-term management plan, which aims to achieve revenue of ¥750.0 billion and become a top-tier company in its industry in Japan in the fiscal year ending March 2025.」

「The group has adopted ROE as one of its key indicators, and Medium-Term Management Plan 2024, announced on 4 November 2021, targets the continuous and stable maintenance of ROE of at least 8.5%. The group’s ROE for the consolidated fiscal year was 15.7%.」

「The fiscal year ending March 2022 is the final year of the group’s three-year management plan, Medium-Term Management Plan 2021 (2019-2021), which began in April 2019. In addition to expanded sales of electronic components, contributions to profit from steady PMI at acquired companies mean that achievement of the operating profit and ROE targets is expected to substantially exceed the plan. Following execution of this plan, the group formulated and announced on 25 November 2021 Medium-Term Management Plan 2024 and the Sustainability Medium- to Long-Term Management Plan as growth guidelines for the next three years, ending with the fiscal year ending March 2025. The next medium-term management plan set management targets of revenue of ¥750.0 billion, operating profit of ¥20.0 billion, and ROE of at least 8.5%.」

「The fiscal year ending March 2022 is the final year of the group’s three-year management plan, Medium-Term Management Plan 2021 (2019-2021), which began in April 2019. In addition to the recovery in demand for electronic components, contributions to profit from steady PMI at acquired companies, including Kaga FEI Co., Ltd. and Excel Co., Ltd., mean that progress toward the profit targets is ahead of plan.」

「The fiscal year ending March 2022 is the final year of the group’s three-year management plan, Medium-Term Management Plan 2021 (2019-2021), which began in April 2019. In addition to an overall recovery in demand, the earnings recovery in the electronic component business, including steady progress in post-merger integration at Kaga FEI Co., Ltd. and Excel Co., Ltd., drove a strong start toward achieving the plan’s targets.」

「The group has adopted ROE as one of its key indicators, and Medium-Term Management Plan 2021, announced on 6 November 2018, targets the continuous and stable maintenance of ROE of at least 8%. The group’s ROE for the consolidated fiscal year was 13.5%, helped by a gain on negative goodwill.」

「The group is strengthening its electronic component sales business and EMS business and pursuing its growth strategy toward achieving the management targets set out in Medium-Term Management Plan 2021, formulated in November 2018, for the fiscal year ending March 2022: revenue of ¥500.0 billion, operating profit of ¥13.0 billion, and ROE of at least 8.0%.」

「The group is pursuing its growth strategy through its electronic component sales business and EMS business as its two pillars, with the aim of achieving the management targets set out in Medium-Term Management Plan 2021, formulated in November last year, for the fiscal year ending March 2022: revenue of ¥500.0 billion, operating profit of ¥13.0 billion, and ROE of at least 8.0%.」

「The Group is pursuing its growth strategy, centered on its electronic components sales business and EMS business, to achieve the management targets set out in the “Medium-Term Management Plan 2021” formulated last November: revenue of ¥500.0 billion, operating profit of ¥13.0 billion, and ROE of 8.0% or higher for the fiscal year ending March 2022.」

「Medium-Term Management Plan 2021, dated 6 November 2018, targets the continuous and stable maintenance of ROE of at least 8%. The group’s ROE for the consolidated fiscal year was 10.9%, and the group will continue working to improve this indicator.」

「Regarding the outlook for fiscal 2018, the final year of the plan, the company had established a basis for achieving the revenue and ROE targets among the management targets set out in the plan, namely revenue of ¥290.0 billion, ordinary profit of ¥10.0 billion, and ROE of at least 8.0%.」

「① Strengthen initiatives in growth fields: automotive, communications, environmental, industrial equipment, and medical and healthcare ② Strengthen and expand the EMS business and overseas business The management targets for the final year of this plan, the fiscal year ending March 2022 (fiscal 2021), are as follows. Revenue Operating profit ROE ¥500.0 billion ¥13.0 billion 8.0% or higher」

「We continue to regard improvement in revenue growth and ROE as priority management indicators.」