Management with Awareness of the Cost of Capital and the Introduction of ROIC
First written in FY2018. 4 of 11 entries say "Advanced", first in FY2019. Latest entry: FY2026.
Konoike Transport moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 3 of 11 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「In formulating Medium-Term Management Plan 2027, our Group recognized the cost of shareholders’ equity as approximately 8–9% and aims to sustainably improve capital efficiency above this level.」
In addition to conventional ROIC and business portfolio management, we expanded the framework to focus on the cost of shareholders’ equity of approximately 8–9% and newly adopt ROE as an evaluation metric for performance-linked compensation for directors and executive officers. - FY2025ReframedAnnual report
「We will evaluate the profitability of all sites, including domestic and overseas Group companies, from the perspectives of ROIC, EBITDA, and profit scale, and the Business Continuity Review Committee will decide whether to continue, rebuild, or withdraw from each business.」
We restructured the previous ROIC management system, which targeted priority improvement sites, into a business continuity assessment system covering all domestic and overseas sites and evaluating them based on ROIC, EBITDA, and profit scale to determine whether to continue, rebuild, or withdraw from each business. - FY202450% achievement of the improvement targetAnnual report
「We had planned to complete our initiative to improve the earnings of unprofitable businesses, selecting large-scale sites with invested capital of at least ¥1 billion based on ROIC, in the fiscal year ending March 2024. Although we made progress in collecting appropriate prices and selling idle assets, the achievement rate remained at 50% of the original target due in part to unforeseen increases in energy costs and worsening freight market conditions in the forwarding business.」
The ROIC-based earnings improvement program for large-scale sites was scheduled to conclude in the fiscal year ending March 2024, but achievement remained at 50% of the original target. ROIC improved by 0.9 percentage points year on year to 5.2%, and we will continue the program to achieve the target in the final year of the current medium-term management plan. - FY2021AdvancedAnnual report
「We designated 20 sites that are significantly below WACC and, in principle, belong to the earnings improvement business group as priority improvement sites, and will work to improve their earnings structures based on the policies formulated, with the fiscal year ending March 2024 as the target.」
For business portfolio management with a focus on ROIC and the cost of capital, we designated 20 sites below WACC as priority improvement targets and translated this into a specific plan to improve earnings structures by the fiscal year ending March 2024. - FY2021-Q3RestatedAnnual report
「As part of business portfolio management, we classify each business into 3 groups—core businesses, earnings improvement businesses, and growth businesses—and pursue initiatives addressing the issues of each group. In the steel-related fields, our core businesses, we are working to provide new value by using the capacity freed up by production cuts. For earnings improvement businesses, we are pursuing appropriate pricing and cost management, while considering withdrawal from or the sale of low-earning businesses that lack strategic potential. We are also tightening our investment criteria and will build business operations with high capital efficiency.」
We continued to classify our businesses into 3 groups—core, earnings improvement, and growth—pursue appropriate pricing and cost management, consider withdrawing from or selling low-earning businesses, and tighten our investment criteria. - FY2021-Q2RestatedAnnual report
「As part of business portfolio management, we classify each business into 3 groups—core businesses, earnings improvement businesses, and growth businesses—and pursue initiatives addressing the issues of each group. In the steel-related fields, our core businesses, we are working to provide new value by using the capacity freed up by production cuts. For earnings improvement businesses, we are pursuing appropriate pricing and cost management, while considering withdrawal from or the sale of low-earning businesses that lack strategic potential. We are also tightening our investment criteria and will build business operations with high capital efficiency.」
We continued to classify our businesses into 3 groups, pursue appropriate pricing and cost management, consider withdrawing from or selling low-earning businesses, and tighten our investment criteria. - FY2021-Q1AdvancedAnnual report
「In particular, for earnings improvement businesses, we are developing earnings improvement plans based on a thorough focus on return on invested capital (ROIC), including, where appropriate, the possibility of withdrawing from or selling businesses. At the same time, we will tighten our investment criteria and build business operations with high capital efficiency.」
For management with a focus on ROIC, we moved to the stage of developing specific plans that include withdrawing from or selling earnings improvement businesses and tightening investment criteria. - FY2020AdvancedAnnual report
「Precisely because the business environment is so uncertain, we believe the importance of building a solid foundation has increased. Accordingly, in the fiscal year ending March 2021, the final year of the medium-term management plan, we decided to bring forward by 1 year the determination of policies for restructuring, withdrawing from, or selling sites related to unprofitable businesses, which had initially been scheduled for after April 2021.」
In managing the business portfolio with a focus on ROIC and the cost of capital, we brought forward by 1 year the timing for deciding policies on restructuring, withdrawing from, or selling unprofitable businesses. - FY2019AdvancedAnnual report
「In the fiscal year ended March 2019, we classified each business into 3 groups: core businesses, earnings improvement businesses, and growth businesses, thereby clarifying the position of each business. Going forward, we will formulate, implement, and review strategies suited to the position of each business, while working to establish a system for allocating resources from the perspective of optimizing the Group as a whole.」
To pursue management with a focus on ROIC and the cost of capital, we classified our businesses into 3 groups—core businesses, earnings improvement businesses, and growth businesses—and moved toward establishing a resource allocation system suited to each business’s position. - FY2019-Q3RestatedAnnual report
「We focused on changes in internal awareness and systems that form the basis for executing strategy, including clarifying the position of each business within the business portfolio, emphasizing capital productivity, and reviewing business operations based on long-term strategies.」
We clarified each business’s position within the business portfolio and worked to review business operations with an emphasis on capital productivity. - FY2018First statedAnnual report
「Under the new medium-term management plan, we will pursue management with a focus on the cost of capital and review our business portfolio. Specifically, we will adopt ROIC (return on invested capital) as a key management indicator, objectively assess the operating status of each business from the perspective of capital efficiency, and advance the appropriate allocation and reallocation of resources.」
We newly set out a policy of adopting ROIC as a key indicator and allocating and reallocating resources based on capital efficiency by business.