Managing Growth and Financial Soundness Using J-POWER EBITDA and Interest-Bearing Debt Multiples
First written in FY2017. 2 of 5 entries say "Reframed", first in FY2022. Latest entry: FY2026.
Electric Power Development moved to the "Worse" side of this theme in 2022.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Consolidated ordinary income for the current consolidated fiscal year was ¥158.5 billion, net income attributable to owners of the parent was ¥58.5 billion, ROE was 4.3%, and ROIC on operating assets was 4.5%.」
Against the fiscal 2026 targets of consolidated ordinary income of ¥90 billion, profit attributable to owners of the parent of ¥62 billion, ROE of approximately 5.0%, and ROIC on operating assets of approximately 3.5%, fiscal 2025 actual results have been disclosed. - FY2024ReframedAnnual report
「In its new medium-term management plan, the Group has set “ROE of at least 8%” as a financial target to be achieved in the 2030s. To achieve this target, the Group intends to enhance capital efficiency through the introduction of ROIC (return on invested capital), while adopting consolidated ordinary income of ¥90 billion for fiscal 2026 as an objective management indicator for assessing progress toward its management targets.」
The framework has changed from the previous focus on J-POWER EBITDA and the interest-bearing debt ratio to one centered on ROE and ROIC, with consolidated ordinary income of ¥90 billion for fiscal 2026 as a management metric. - FY2022ReframedAnnual report
「Item Management targets Consolidated ordinary income Fiscal 2023 At least ¥90 billion Consolidated equity ratio Fiscal 2023 At least 30% Renewable energy development (versus fiscal 2017) Fiscal 2025 At least 1.5 million kW CO2 emissions from domestic power generation (versus the average actual results for fiscal years 2017–2019) Fiscal 2025 At least a reduction of 7 million tonnes 2030 At least a 40% reduction」
The framework has changed from disclosure centered on J-POWER EBITDA and the interest-bearing debt ratio to disclosure of management targets combining fiscal 2023 profit and equity ratio, renewable energy development, and CO2 emissions. - FY2019Disclosure of variances between targets and actual resultsAnnual report
「Medium-term management plan [Three-year outlook for fiscal years 2018–2020] ○ Growth metric: “J-POWER EBITDA = operating income + depreciation and amortization + equity in earnings (losses) of affiliates” Target of at least ¥210 billion in fiscal 2020 ○ Financial soundness metric: “interest-bearing debt ÷ J-POWER EBITDA” Maintain the same level at the end of fiscal 2020 as the actual result of 8.0x at the end of fiscal 2017 (Assessment at the end of the current consolidated fiscal year) ○ Growth metric: ¥168.4 billion (actual result for fiscal 2018) ○ Financial soundness metric: 9.8x (actual result at the end of fiscal 2018)」
Against the J-POWER EBITDA target of at least ¥210 billion and the objective of maintaining an 8.0x debt ratio for fiscal years 2018–2020, actual results of ¥168.4 billion and 9.8x for fiscal 2018 have been disclosed. - FY2017First statedAnnual report
「The Group uses the following metrics as objective management indicators for assessing progress toward its management targets. ○ Growth metric: “J-POWER EBITDA = operating income + depreciation and amortization + equity in earnings (losses) of affiliates” ○ Financial soundness metric: “interest-bearing debt ÷ J-POWER EBITDA”」
New management metrics have been disclosed, measuring growth using J-POWER EBITDA and financial soundness using interest-bearing debt ÷ J-POWER EBITDA.