Business Investment Decisions and Budget-versus-Actual Management Using IRR
First written in FY2017. 2 of 3 entries say "Advanced", first in FY2018. Latest entry: 2026-05-14.
The whole theme swung hardest in 2023: 3 of 18 companies on the "Worse" side.
10 other companies' latest entry also says "Advanced".
- 2026-05-14AdvancedInvestor presentation
「Equity IRR More than 10%」
The Medium-Term Management Plan 2030 specifies an equity IRR guideline of more than 10% as an investment criterion. - FY2018AdvancedAnnual report
「Among candidate projects that meet the required IRR level, the company emphasizes each project's net present value (NPV) in order to prioritize investments in projects expected to generate greater increases in equity value. In addition, even after deciding to invest in a business, the company will manage and analyze the IRR level, NPV and budget-versus-actual variances for each business, further strengthening profitability management.」
In addition to its existing IRR and budget-versus-actual management, the company added NPV as an indicator for investment selection and post-investment management. - FY2017First statedAnnual report
「As a general principle when making investment decisions for new renewable energy businesses, the company requires the expected internal rate of return (IRR) on the investment amount to exceed a certain level. Even after deciding to invest in a business, the company will manage and analyze the IRR level and budget-versus-actual variances for each business, further strengthening profitability management.」
The company has established an investment management framework comprising IRR hurdle rates before investment and post-investment management and analysis of IRR and budget-versus-actual variances.