Mitsubishi Steel explained its 2030 growth strategy and capital policy in an IR video, outlining its approach to value creation. It plans to generate cash from its core businesses and invest in six strategic businesses, while also presenting its dividend policy and allocation policy for growth investment.
The Mitsubishi Steel Group has continued to grow for more than 120 years, with springs and specialty steel used in automotive and vehicle components at the core of its business. The video sets out the group’s value creation, future growth story and capital policy.
As the framework for growth toward 2030, the group plans to generate cash from its core businesses while investing in six strategic businesses. The stated aim is to strengthen earnings power while pursuing growth investment.
The plan for building operating profit starts from an underlying level of ¥7.2 billion, with ¥2.8 billion to be added through structural reforms in the core businesses and ¥1 billion through growth in the strategic businesses.
The company plans to invest approximately ¥4.6 billion in total in a new plant to expand supply capacity in preparation for increased orders in the energy and national security fields.
Under the current medium-term management plan, the company intends to place DOE of 35% at the centre of its dividend policy and maintain stable dividends that are less susceptible to earnings fluctuations.
The company plans to allocate approximately 30% of the cash expected to be generated over the three years of the medium-term plan to growth investment, with the aim of acquiring technology and securing additional production capacity.
The operating margin target for the final year is 6.2%. The company explained that it plans to reflect raw-material-linked price changes in selling prices and pursue a recovery in its core businesses.