Measures to Achieve Management Conscious of Cost of Capital and Stock Price

In our medium-term management plan "Sustainability V (Value)" (FY2024 to FY2026), we have set a basic policy of achieving profit growth and improved capital productivity to improve our corporate value. In addition to the consolidated KPIs of 110 billion yen in sales, 2.6 billion yen in operating profit, and 1.9 billion yen in net profit attributable to owners of the parent for the fiscal year ending March 2026, we have set ROE of 8% or more and ROIC of 6% or more as capital return indicators.

We also set shareholder's equity cost and WACC (weighted average cost of capital) as capital costs to evaluate and verify the achievement of capital return. Regarding our stock price, we strive to ensure that our growth potential is properly and sufficiently evaluated by the market by actively engaging in dialogue with shareholders and investors, communicating our medium- to long-term growth strategy, and further enhancing disclosure information.

Measures to achieve management that is conscious of cost of capital and stock price.
Since the disclosure of the "A Plan to Meet the Continued Listing Criteria of the New Market Classification of Tokyo Stock Exchange ", the Company has been working to manage its business with a strong awareness of the cost of capital and stock price. The results of these efforts, an evaluation of the current status, and measures to improve the PBR were formulated. In order to improve PBR, the Company will steadily implement initiatives based on the basic policies of the medium-term management plan to achieve profit growth and improve capital productivity, thereby enhancing corporate value.

To improve PBR, we will steadily implement initiatives based on the basic policies of our medium-term management plan, strive to grow profits and improve capital productivity, and strive to improve corporate value.

We are aiming for an ROE of 8.0% or more and an ROIC of 6.0% or more in the final year of the medium-term management plan (fiscal year ending March 31, 2026).

For more details, see 4. Measures to achieve management that is conscious of capital costs and share price (from p. 32).