Investors

The Medium-Term Management Plan 2027 has been launched.
We will actively enhance capital efficiency and strengthen our earning power to achieve an ROE of 10% by the fiscal year ending March 2028.

In the fiscal year ended March 31, 2025, we concentrated on reforming our management structure. This included changes to our business portfolio, cost management, and overall management framework. Our goal was to enhance profitability and transform our corporate structure to better adapt to environmental changes. We exited unprofitable businesses and steadily cut costs, resulting in a reduction of over 30 billion yen. As a result, both net sales and operating profit increased compared to the previous fiscal year, with net sales reaching a record high. As part of these initiatives, we consistently divested non-core businesses and idle assets, including the partial sale of our holding in Alps Logistics Co., Ltd. and the transfer of the power inductor business. These efforts laid the foundation for lean management and sustainable profitability.

In line with these reforms, we will implement management practices that prioritize capital costs and stock prices in the three-year Medium-Term Management Plan 2027, which we have begun executing this fiscal year. Our target is to achieve a PBR of 1 or higher by the fiscal year ending March 31, 2027, and an ROE of 10% or higher by the fiscal year ending March 31, 2028. To achieve these targets, we will adopt three fundamental policies:
(1) Our focus will be on high-value-added products, shifting emphasis to more profitable offerings in the Mobility Business;
(2) Strategic investments will be made in the sensor sector, along with the introduction of new products to establish new core businesses; and
(3) To strengthen our management foundation, we plan to reorganize production bases and invest in human resources.
We will work cross-functionally to implement these policies.

We have introduced return on invested capital (ROIC) as an indicator for our resource allocation decisions, including investments, to achieve the above goals. We are intensifying our efforts to implement revenue management practices with a focus on managing capital costs. Our focus will shift from traditional evaluation criteria that emphasize sales and operating profit to ROIC as the foundation for our processes from the optimal allocation of growth investments in business development, to decision-making on investments and orders, and to subsequent monitoring. We will thereby be better equipped to concentrate and selectively allocate our management resources, and strengthen the soundness of our business.

We have set a Dividend on Equity (DOE) ratio target of 3% as a policy to ensure stable and consistent dividend payments. Additionally, in April 2025, we announced our decision to acquire treasury shares worth 20 billion yen. We will cancel all treasury shares acquired by April 2026 to increase per-share value and reduce future dilution risk. We will continue striving to maximize shareholder value and achieve sustainable growth in corporate value while maintaining a balance between growth investment and financial soundness.

We sincerely appreciate your ongoing support and understanding.

Representative Director, Executive Vice President
COO, CFO