Worth reading
71In 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
200
¥100 million (increase versus the original plan for the fiscal 2030 net sales target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+10.0%
基準 2,000Target2,200Hundreds of millions of yen
ROE+5.0pt
基準 10Target15% (most recent actual: 14.7%)
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.
What happened to the previous planConsolidated net sales of ¥150.0 billion, consolidated ordinary profit of ¥10.0 billion, consolidated ordinary profit margin of 6.7%, and ROE of 10% or higher → Consolidated net sales of ¥170.0 billion, consolidated ordinary profit of ¥17.9 billion, consolidated ordinary profit margin of 10.6%, and ROE of 14.7%（+13.3％、+79.0％）+13.3%Calculated from the two disclosed figures
Total investment planApproximately ¥50.0 billion (fiscal 2026–fiscal 2030, five-year total)
Statements about the use of capital
Payout ratio / DOE policyDuring the period of the Second Medium-Term Management Plan: "DOE (dividend-on-equity ratio) of 6% plus progressive dividends"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 policyShare repurchases will be conducted flexibly. The Company is considering returning shares acquired through share repurchases to employees for employee incentives and education aimed at fostering a management perspective.
Cost of capitalCost of shareholders' equity: approximately 9%–10%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Key initiatives
01Strengthen human capital management
02Transition to a highly profitable business structure
03Management Infrastructure
04Renewal of the basic human resources strategy
05HR System Reform
06Strengthening technical skills development
07Establishing human capital management that balances offensive and defensive priorities
08Broadly defined human capital investment
09Talent development and operational efficiency
10Off-site production
11Maintaining market share for core products and strengthening orders for maintenance services
12Expanding the range of products handled
13Entering growth markets
14Resolving labor shortages and improving operational efficiency
15Expanding the stock-based business
16Standardizing remote maintenance
17Building construction capabilities in growth markets
18Improving profitability and quality through value-engineering proposals
19Embedding the corporate culture and developing talent
20Three major solutions
21Renewable energy and energy-saving products
22Expanding sales of generators and storage batteries
23Cost reduction and procurement
24Plus-one proposals
25Capturing target markets
26Transitioning, through group collaboration, to a high-value-added, highly profitable lifecycle-based business model
27Improving productivity through operational efficiency
28Strengthen recruitment
29Strengthening construction capabilities through training
30Expanding cycle maintenance
31Three major solutions
32Expanding sales of the Company's proprietary central monitoring systems
33Strengthening capabilities to serve specialized facilities
34Participating in growth fields
35Expanding the value chain and strengthening technical proposal capabilities
36Enhancing differentiation and cost competitiveness suited to each country's market and building a highly profitable business foundation
37Promoting proactive operational reform across the Group
38Strengthening the recruitment and development of specialized personnel
39Centralizing operations and outsourcing selected activities
40Strengthening information security and making effective use of data
Plan assumptionsTrend toward expanding construction investment driven by private-sector and public investment in facilities, Growing demand for investment in factories, data centers and logistics facilities, Structural labor shortages (tight supply and demand), Rising material and labor costs, plus external-environment risks (overseas markets and policy), Rising labor and recruitment costs
Segment targetSegment Air-conditioning business / Sales Target ¥89.0 billion, Segment Instrumentation business / Sales Target ¥49.0 billion, Segment Energy Business / Sales Target ¥22 billion, Segment Domestic Group companies / Sales Target ¥50.0 billion, Segment Overseas Group companies / Sales Target ¥10 billion
Non-financial targetsIndicator Number of employees / Target value 3,595 / Timing FY2030, Indicator Domestic certification holders / Target value 1,536 or more / Timing FY2030, Indicator Domestic engineers / Target value 1,391 or more / Timing FY2030, Indicator Training and development expenses / Target value Approximately ¥110 million / Timing FY2030, Indicator Average annual actual working hours / Target value Approximately 2,000 hours / Timing FY2030, Indicator Average annual salary / Target value Approximately ¥10 million / Timing FY2030, Indicator Broadly defined human capital investment / Target value Approximately ¥11.7 billion / Timing FY2030, Indicator Engagement score / Target value 76.4 points or higher / Timing FY2030, Indicator Employee turnover rate / Target value 5.0% or lower / Timing FY2030, Indicator Scope 1 and 2 emissions / Target value 910t-CO2 / Timing FY2030, Indicator Renewable energy as a percentage of electricity used in business activities / Target value At least 80% / Timing FY2030, Indicator Paid leave utilization rate / Target value At least 70% / Timing FY2030, Indicator Number of serious violations of laws and regulations / Target value 0 / Timing FY2030, Indicator Improvement rate for issues identified through the evaluation of the effectiveness of the Board of Directors / Target value 100％ / Timing FY2030, Indicator Number of engagements with institutional investors / Target value 120 or more / Timing FY2030
Risks identified by the company
Risk of disparities in response capabilities due to increasingly diverse and specialized demand
Rising material and labor costs, plus external-environment risks (overseas markets and policy)
Intensifying price and project competition due to increased market entry
Difficulty securing profitability due to persistently high costs and delivery-time risks
Increasing difficulty in recruiting engineers
Higher labor costs
Reduced operating capacity due to labor regulations
Timing shifts between fiscal years due to larger and longer-term projects
Higher recruitment costs
Country risks relating to overseas group companies
Actual results and other performance may differ materially due to various factors in the future
Reason for revision or withdrawal
Based on the strong performance achieved during the period of the First Medium-Term Management Plan, the Company determined that further human capital enhancement and development of the management infrastructure would be essential for sustainable growth from this point forward, with a view to becoming a 100-year company. The targets have therefore been set to incorporate the investments required for these initiatives.
| Item | Details |
|---|---|
| Plan name | TOTECH Group Second Medium-Term Management Plan "Redesign TOTECH -Connecting to the Next 100 Years-" |
| Plan period | Fiscal 2026 (fiscal year ending March 2027) to fiscal 2030 (fiscal year ending March 2031) |
| Progress against the plan | Formulated |
| Sales Target | 2,000 Hundreds of millions of yen → 2,200 Hundreds of millions of yen（+10%） |
| ROE target | 10% or higher → 12～15％ |
| Payout ratio / DOE policy | During the period of the Second Medium-Term Management Plan: "DOE (dividend-on-equity ratio) of 6% plus progressive dividends" |
| Treasury share acquisition policy | Share repurchases will be conducted flexibly. The Company is considering returning shares acquired through share repurchases to employees for employee incentives and education aimed at fostering a management perspective. |
| Cost of capital | Cost of shareholders' equity: approximately 9%–10% |
| Total investment plan | Approximately ¥50.0 billion (fiscal 2026–fiscal 2030, five-year total) |
| Segment target | Segment Air-conditioning business / Sales Target ¥89.0 billion, Segment Instrumentation business / Sales Target ¥49.0 billion, Segment Energy Business / Sales Target ¥22 billion, Segment Domestic Group companies / Sales Target ¥50.0 billion, Segment Overseas Group companies / Sales Target ¥10 billion |
| Non-financial targets | Indicator Number of employees / Target value 3,595 / Timing FY2030, Indicator Domestic certification holders / Target value 1,536 or more / Timing FY2030, Indicator Domestic engineers / Target value 1,391 or more / Timing FY2030, Indicator Training and development expenses / Target value Approximately ¥110 million / Timing FY2030, Indicator Average annual actual working hours / Target value Approximately 2,000 hours / Timing FY2030, Indicator Average annual salary / Target value Approximately ¥10 million / Timing FY2030, Indicator Broadly defined human capital investment / Target value Approximately ¥11.7 billion / Timing FY2030, Indicator Engagement score / Target value 76.4 points or higher / Timing FY2030, Indicator Employee turnover rate / Target value 5.0% or lower / Timing FY2030, Indicator Scope 1 and 2 emissions / Target value 910t-CO2 / Timing FY2030, Indicator Renewable energy as a percentage of electricity used in business activities / Target value At least 80% / Timing FY2030, Indicator Paid leave utilization rate / Target value At least 70% / Timing FY2030, Indicator Number of serious violations of laws and regulations / Target value 0 / Timing FY2030, Indicator Improvement rate for issues identified through the evaluation of the effectiveness of the Board of Directors / Target value 100％ / Timing FY2030, Indicator Number of engagements with institutional investors / Target value 120 or more / Timing FY2030 |
| Plan assumptions | Trend toward expanding construction investment driven by private-sector and public investment in facilities, Growing demand for investment in factories, data centers and logistics facilities, Structural labor shortages (tight supply and demand), Rising material and labor costs, plus external-environment risks (overseas markets and policy), Rising labor and recruitment costs |
| Key initiatives | Strengthen human capital management, Transition to a highly profitable business structure, Management Infrastructure, Renewal of the basic human resources strategy, HR System Reform, Strengthening technical skills development, Establishing human capital management that balances offensive and defensive priorities, Broadly defined human capital investment, Talent development and operational efficiency, Off-site production, Maintaining market share for core products and strengthening orders for maintenance services, Expanding the range of products handled, Entering growth markets, Resolving labor shortages and improving operational efficiency, Expanding the stock-based business, Standardizing remote maintenance, Building construction capabilities in growth markets, Improving profitability and quality through value-engineering proposals, Embedding the corporate culture and developing talent, Three major solutions, Renewable energy and energy-saving products, Expanding sales of generators and storage batteries, Cost reduction and procurement, Plus-one proposals, Capturing target markets, Transitioning, through group collaboration, to a high-value-added, highly profitable lifecycle-based business model, Improving productivity through operational efficiency, Strengthen recruitment, Strengthening construction capabilities through training, Expanding cycle maintenance, Three major solutions, Expanding sales of the Company's proprietary central monitoring systems, Strengthening capabilities to serve specialized facilities, Participating in growth fields, Expanding the value chain and strengthening technical proposal capabilities, Enhancing differentiation and cost competitiveness suited to each country's market and building a highly profitable business foundation, Promoting proactive operational reform across the Group, Strengthening the recruitment and development of specialized personnel, Centralizing operations and outsourcing selected activities, Strengthening information security and making effective use of data |
| Results under the previous plan | Consolidated net sales of ¥150.0 billion, consolidated ordinary profit of ¥10.0 billion, consolidated ordinary profit margin of 6.7%, and ROE of 10% or higher → Consolidated net sales of ¥170.0 billion, consolidated ordinary profit of ¥17.9 billion, consolidated ordinary profit margin of 10.6%, and ROE of 14.7%（+13.3％、+79.0％） |
| Reason for revision or withdrawal | Based on the strong performance achieved during the period of the First Medium-Term Management Plan, the Company determined that further human capital enhancement and development of the management infrastructure would be essential for sustainable growth from this point forward, with a view to becoming a 100-year company. The targets have therefore been set to incorporate the investments required for these initiatives. |
| Risks identified | Risk of disparities in response capabilities due to increasingly diverse and specialized demand, Rising material and labor costs, plus external-environment risks (overseas markets and policy), Intensifying price and project competition due to increased market entry, Difficulty securing profitability due to persistently high costs and delivery-time risks, Increasing difficulty in recruiting engineers, Higher labor costs, Reduced operating capacity due to labor regulations, Timing shifts between fiscal years due to larger and longer-term projects, Higher recruitment costs, Country risks relating to overseas group companies, Actual results and other performance may differ materially due to various factors in the future |
| Publication date | 14 May 2026 |
Items this document does not state (8)
Operating profit targetOperating profit margin targetNet income targetROIC targetSelf-assessment of PBR and share priceInvestment amount by sectorSize 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.Although the Company achieved results exceeding expectations under the First Medium-Term Management Plan, it determined that securing and effectively utilizing human capital and improving operational efficiency would be necessary given the increasingly challenging labor market. The targets have also been set to incorporate investments required for further human capital enhancement and development of the management infrastructure.
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