President's Message
I would like to express my sincerest gratitude to all our shareholders for your continued support.
As stated in the interim report for the fiscal year ended March 31, 2026, the Company announced in August 2025 its Medium-Term Business Plan for the period from FY2025 to FY2027 (the "Plan").
Under the Plan, the Company works to improve the profitability of its existing businesses while strengthening areas with high profit margins. Through these initiatives, the Company aims to achieve profitability in all regions and become a company that can reliably generate profits regardless of changes in the external business environment. The Plan positions "Rebuild the Foundation" as a key objective and sets targets for FY2027 of operating profit of \8.0 billion and an operating margin of 6%.
For the first year of the Plan, FY2025 (the fiscal year ended March 31, 2026), targets were set at operating profit of \4.0 billion and an operating margin of 2.6%. Under the new management structure established in 2025, various measures in the Plan were implemented, resulting in operating profit of \5.6 billion and an operating margin of 3.5%, both significantly exceeding targets.
The Plan also outlines the approach for the next medium-term business plan, covering FY2028 to FY2030. The Company aims to achieve "Return to Growth" by reaching a level comparable to its historical peak operating profit of \15.2 billion and to pursue further growth thereafter. Preparations for new technologies, products, and markets for the next medium-term business plan are already underway, including initiatives such as enhancing the management structure.
Regarding dividends for FY2025, the Company regrets that it is unable to pay any dividend due to insufficient distributable resources and sincerely apologizes to its shareholders.
We will steadily implement the measures set out in the Plan and work toward resuming dividend payments as soon as possible.
We appreciate the continued support and understanding of our shareholders.
