Items stated in the management plan
Partially revisedEach 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.
Concerns over business constraints arising from the emergence of various risk factors, Japan's declining population, declining birthrate and aging population, labor shortages, and further increases in prices and interest rates. The ROIC-WACC spread has narrowed due to a temporary increase in interest-bearing debt and a rise in WACC resulting from higher-than-expected interest rate increases. The share price has remained relatively low compared with the overall market and the railway industry, and has not been sufficiently valued by the capital markets.
| Item | Details |
|---|---|
| Plan name | Kintetsu Group Medium-Term Management Plan 2028 |
| Plan period | FY2025–FY2028 |
| Progress against the plan | Partially revised |
| Operating profit target | ¥100 billion or more → ¥100 billion or more |
| ROE target | Further improvement → Maintain at 8% or more |
| ROIC target | 4.5% or more → WACC + 1% or more |
| Payout ratio / DOE policy | Raise the DOE floor from 2.0% to 2.5% and provide stable dividends through progressive dividend increases. The dividend payout ratio under the FY2028 plan is approximately 30%. The applicable period is the medium-term management plan period, FY2025–FY2028. |
| Self-assessment of PBR and share price | The company's share price has remained relatively low compared with the overall market and the railway industry and has not been sufficiently valued by the capital markets. PBR: not disclosed. |
| Plan assumptions | Shift in the business environment based on assumptions of inflation and rising interest rates, All indicators exclude the impact of the new lease accounting standards scheduled to apply from FY2027 |
| Key initiatives | Review of the model for group management, portfolio selection and concentration, and improved effectiveness of ROIC-based management, Reform of invested capital (B/S) and capital allocation, Through the consideration and execution of portfolio selection and concentration, review the business portfolio without sacred cows and promote asset monetization, thereby improving capital efficiency and generating cash inflows, Accelerate the reduction of interest-bearing debt in response to rapid interest rate increases, New management indicators and shareholder returns targeted under the Kintetsu Group Medium-Term Management Plan 2028, Prioritize reducing financial risk by improving the quality of the balance sheet and accelerating the reduction of interest-bearing debt through cash flow generation by each business, Basic policy on shareholder returns, New management indicators to be targeted, Strengthening the Corporate Governance Framework |
| Results under the previous plan | Initial FY2025 target (profit) → FY2025 actual results (profit) |
| Reason for revision or withdrawal | Concerns over business constraints arising from the emergence of various risk factors, Japan's declining population, declining birthrate and aging population, labor shortages, and further increases in prices and interest rates. The ROIC-WACC spread has narrowed due to a temporary increase in interest-bearing debt and a rise in WACC resulting from higher-than-expected interest rate increases. The share price has remained relatively low compared with the overall market and the railway industry, and has not been sufficiently valued by the capital markets. |
| Risks identified | Emergence of various risk factors, Japan's declining population, declining birthrate and aging population, Labor shortages, Further increases in prices and interest rates, A material impact on earnings plans and other matters from changes in the external environment |
| Date of board resolution | 15 May 2026 |
| Publication date | 15 May 2026 |
Items this document does not state (10)
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.In addition to concerns over business uncertainty and constraints arising from various risk factors, Japan's declining population, declining birthrate and aging population, labor shortages, and rising prices and interest rates, the ROIC-WACC spread has narrowed due to a temporary increase in interest-bearing debt and a rise in WACC caused by higher-than-expected interest rate increases. The company's share price has remained relatively low compared with the overall market and the railway industry and has not been sufficiently valued by the capital markets. In light of these factors, the company determined that it needed to allocate management resources with an awareness of the cost of capital and optimize its business portfolio.