Worth reading
70In focus
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
4.5
% (FY2028 ROE target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+20.3%
基準 374Target450Hundreds of millions of yen
Net income for the current fiscal year+81.8%
基準 11Target20Hundreds of millions of yen
ROE+1.8pt
基準 2.7Target4.5％
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.
Operating profit-2 Hundreds of millions of yen → Not disclosed
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planOperating revenue ¥33.5 billion (FY2025 target) / Operating profit ▲¥1.0 billion (FY2025 target) / Net income for the current fiscal year ¥600 million (FY2025 target) / EBITDA-to-interest-bearing debt ratio 7.0x (FY2025 target) → Operating revenue ¥37.4 billion (FY2025 actual) / Operating profit ▲¥200 million (FY2025 actual) / Net income for the current fiscal year ¥1.1 billion (FY2025 actual) / EBITDA-to-interest-bearing debt ratio 5.5x (FY2025 actual)
Investment amount by sectorField Growth Investment / Amount ¥11.5 billion, Field Development of properties for sale / Amount ¥5 billion, Field Maintenance investment / Amount ¥10.5 billion
Statements about the use of capital
Payout ratio / DOE policyUnder the plan for FY2026 to FY2028, the company will pursue a dividend policy linked to achieving ROE of 4.5%, using a consolidated payout ratio of approximately 30% as a guideline. With a view to achieving ROE of 8%, the company will also consider raising the payout ratio.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 policyWith a view to achieving ROE of 8%, the company will consider flexible shareholder-return measures, including share repurchases. The repurchase amount, timing and conditions are Not disclosed.
Self-assessment of PBR and share priceThe company aims to improve PBR by raising ROE and PER through the steady execution of the medium-term management plan. Numerical details regarding the current PBR and share price levels, and any explicit characterization of them as low, are Not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Planned renewal and maintenance of safety-related transportation infrastructure
02Testing and verification of a train accident prevention support system
03Planned replacement of rolling stock
04Strengthening crisis response and establishing safety and business continuity systems
05Consolidation and closure of tram stops
06Consideration of fare-system revisions
07Expansion of transit-priority signals
08Advancement of new rail-line plans
09Conversion of all train lines to one-person operation and automation of operational control
10Introduction of solar power generation and regenerative power storage systems
11Strengthening coordination with streetcars and new mobility services
12Route restructuring, transfers and network optimization
13Operation of autonomous buses
14Joint Business Development
15Effective and higher-value utilization of company-owned land through a CRE strategy
16Active acquisition of income-producing properties
17External sales of and implementation support for transportation-related systems
18Event planning, merchandise sales and strengthening revenue-generating capabilities
19Promotion of tourism businesses leveraging the comprehensive capabilities of the 広電 Group
20Revitalization of central Hiroshima
21Creation of new businesses through M&A and investments in venture capital funds
22Strengthening the Group’s Management Structure
23Balancing Growth Investment with Financial Soundness
24Recruitment and retention of diverse talent
25Talent development and support for capability development
26Improving employee engagement
27Expansion into New Business Areas
Plan assumptionsAccelerating population decline and declining birthrate and aging population, Shortages of human resources and labor, Structural issues including aging facilities, Recovery and growth in tourism demand, Urban-center redevelopment and improved circulation, Shift in regional public transportation policy
Segment targetSegment Transportation / FY2028 operating revenue composition targets 33％, Segment Retail, leisure and services / FY2028 operating revenue composition targets 9％, Segment Real estate and construction / FY2028 operating revenue composition targets 58％
Non-financial targetsIndicator Annual paid-leave utilization rate / Target Maintain a rate of at least 90% / Timing FY2026-FY2028
Risks identified by the company
Population decline and declining birthrate and aging population
Labor shortages
Changes in the competitive environment
Natural Disasters
Changes in business conditions, including demand trends
Changes in prices and other factors
| Item | Details |
|---|---|
| Plan name | 広電グループ経営総合3ヵ年計画2028 (Hiroden Group Comprehensive Three-Year Management Plan 2028) |
| Plan period | FY2026-FY2028 |
| Progress against the plan | Formulated |
| Sales Target | 374 Hundreds of millions of yen → 450 Hundreds of millions of yen |
| Operating profit target | -2 Hundreds of millions of yen → Not disclosed |
| Net income target | 11 Hundreds of millions of yen → 20 Hundreds of millions of yen |
| ROE target | 2.7％ → 4.5％ |
| Payout ratio / DOE policy | Under the plan for FY2026 to FY2028, the company will pursue a dividend policy linked to achieving ROE of 4.5%, using a consolidated payout ratio of approximately 30% as a guideline. With a view to achieving ROE of 8%, the company will also consider raising the payout ratio. |
| Treasury share acquisition policy | With a view to achieving ROE of 8%, the company will consider flexible shareholder-return measures, including share repurchases. The repurchase amount, timing and conditions are Not disclosed. |
| Self-assessment of PBR and share price | The company aims to improve PBR by raising ROE and PER through the steady execution of the medium-term management plan. Numerical details regarding the current PBR and share price levels, and any explicit characterization of them as low, are Not disclosed. |
| Investment amount by sector | Field Growth Investment / Amount ¥11.5 billion, Field Development of properties for sale / Amount ¥5 billion, Field Maintenance investment / Amount ¥10.5 billion |
| Segment target | Segment Transportation / FY2028 operating revenue composition targets 33％, Segment Retail, leisure and services / FY2028 operating revenue composition targets 9％, Segment Real estate and construction / FY2028 operating revenue composition targets 58％ |
| Non-financial targets | Indicator Annual paid-leave utilization rate / Target Maintain a rate of at least 90% / Timing FY2026-FY2028 |
| Plan assumptions | Accelerating population decline and declining birthrate and aging population, Shortages of human resources and labor, Structural issues including aging facilities, Recovery and growth in tourism demand, Urban-center redevelopment and improved circulation, Shift in regional public transportation policy |
| Key initiatives | Planned renewal and maintenance of safety-related transportation infrastructure, Testing and verification of a train accident prevention support system, Planned replacement of rolling stock, Strengthening crisis response and establishing safety and business continuity systems, Consolidation and closure of tram stops, Consideration of fare-system revisions, Expansion of transit-priority signals, Advancement of new rail-line plans, Conversion of all train lines to one-person operation and automation of operational control, Introduction of solar power generation and regenerative power storage systems, Strengthening coordination with streetcars and new mobility services, Route restructuring, transfers and network optimization, Operation of autonomous buses, Joint Business Development, Effective and higher-value utilization of company-owned land through a CRE strategy, Active acquisition of income-producing properties, External sales of and implementation support for transportation-related systems, Event planning, merchandise sales and strengthening revenue-generating capabilities, Promotion of tourism businesses leveraging the comprehensive capabilities of the 広電 Group, Revitalization of central Hiroshima, Creation of new businesses through M&A and investments in venture capital funds, Strengthening the Group’s Management Structure, Balancing Growth Investment with Financial Soundness, Recruitment and retention of diverse talent, Talent development and support for capability development, Improving employee engagement, Expansion into New Business Areas |
| Results under the previous plan | Operating revenue ¥33.5 billion (FY2025 target) / Operating profit ▲¥1.0 billion (FY2025 target) / Net income for the current fiscal year ¥600 million (FY2025 target) / EBITDA-to-interest-bearing debt ratio 7.0x (FY2025 target) → Operating revenue ¥37.4 billion (FY2025 actual) / Operating profit ▲¥200 million (FY2025 actual) / Net income for the current fiscal year ¥1.1 billion (FY2025 actual) / EBITDA-to-interest-bearing debt ratio 5.5x (FY2025 actual) |
| Risks identified | Population decline and declining birthrate and aging population, Labor shortages, Changes in the competitive environment, Natural Disasters, Changes in business conditions, including demand trends, Changes in prices and other factors |
| Publication date | 14 May 2026 |
Items this document does not state (7)
Operating profit margin targetROIC targetCost of capitalTotal investment 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.While structural issues such as population decline and aging, labor shortages and aging facilities are becoming more pronounced, the company aims to convert the recovery in tourism and favorable conditions from urban-center redevelopment into growth, while simultaneously rebuilding its financial foundation and strengthening the allocation of management resources to growth areas.
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