DAIKI AXIS has positioned overseas water and sanitation infrastructure development as a growth engine in its medium-term plan and announced targets for sales and other metrics, along with its financial policy, for the fiscal year ending December 2027.
As the direction of its medium-term management plan, DAIKI AXIS indicated that it intends to pursue growth by making overseas expansion of its environmental equipment-related business a core focus. For the final fiscal year, ending December 2027, it set targets of sales of ¥53 billion, operating profit of ¥14.5 billion, ordinary profit of ¥15.5 billion and net profit attributable to owners of the parent of ¥11 billion, and stated that it aims for ROE of 9.7% and ROIC of at least 6.0%.
The three basic policies of its financial strategy are proactive cash allocation to growth investment, maintenance of financial discipline and enhanced shareholder returns, with the aim of improving capital efficiency through higher ROIC. Cumulative operating cash flow for the 3 years through the fiscal year ending December 2027 is projected at ¥6 billion, allocated as ¥5 billion for growth investment and ¥1 billion for dividends.
The company places importance on expansion in emerging markets, explaining that the keys to overseas expansion are cooperation with local governments, human resources development, and adapting to local requirements and costs. Under its M&A policy, it set an investment allocation of up to ¥2 billion in the medium-term plan. It has completed 13 M&A transactions over the past 20 years, and the businesses acquired account for approximately 24% of total sales.
As a shareholder return, the company plans to maintain its ordinary dividend of ¥24 for the fiscal year ending December 2026. It also announced that it will continue its long-term shareholder benefit program, the DAIKI AXIS Premium Benefits Club.