Message from the Chief Executive, Finance and Accounting Division
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Establishing a framework to reliably achieve the fourth mid-term management plan targets and to further enhance corporate value
Director, Executive Officer, Chief Executive, Finance and Accounting Division
Kozo Okada
I wish to express my sincere thanks to all shareholders and investors for their support and advice.
The Company regards the enhancement of its financial structure and capital efficiency as a priority issue for management, and has steadily implemented improvement initiatives. Under the Fourth Medium-Term Management Plan, which spans from fiscal 2024 to 2027 (April 2024 to March 2028), we are working to strengthen our cash generation capabilities and instill management practices that are conscious of the cost of capital. Building on initiatives rooted in our workplaces, we in the finance and accounting departments will endeavor to contribute to the enhancement of corporate value.
The fourth mid-term management plan outlines a policy to allocate approximately ¥160 billion—out of an expected operating cash flow of ¥220 billion—toward growth and environmental investments, aiming to bolster future earnings capacity and attain sustainable growth. Through these efforts, we are targeting a return on equity (ROE) of 9%, a return on invested capital (ROIC) of 9%, and ¥100 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)—thereby striving to balance scale expansion with improved profitability.
Furthermore, toward management conscious of the cost of capital and stock price, we remain focused on improving capital efficiency indicators. This includes raising ROE to a level that exceed our cost of capital and achieving a price-to-book ratio of at least 1.0 at an early stage. While balancing business performance and growth investments, we will maintain consistency of our financial strategy. In regard to these policies, we are striving for candid disclosure and constructive dialogue to foster understanding among our shareholders.
In 2025, we achieved our target of obtaining an A credit rating, resulting in outcomes that led to a lower cost of capital. Moving forward, we will remain dedicated to enhancing corporate value and realizing sustainable growth, while valuing relationships of trust with our stakeholders.
We sincerely appreciate your continued understanding and support.
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