With the theme of Improving Profitability and Building a Foundation for Growth Businesses, we are laying the groundwork for the next 100 years

Outline of the Sixth Five-Year Medium-Term Management Plan

The year 2023 will mark the 100th anniversary of Komori Group’s founding. We have set forth the theme of Improving Profitability and Building a Foundation for Growth Businesses in our Sixth Medium-Term Management Plan covering the five-year period from the fiscal year ended March 31, 2020 to the fiscal year ending March 31, 2024 in order to establish a growth stage. As for target numbers, we aim to achieve net sales of ¥110.0 billion, operating income of ¥7.7 billion (operating income margin of 7.0%), and ROE of 5.3%, as well as PESP/Recurring amount of sales of ¥35.9 billion and its sales ratio of 32.6% for the fiscal year ending March 31, 2024, assuming exchange rates of ¥105.00 to the US$ and ¥120.00 to the EUR. We operate a shareholder return policy aimed at realizing a total shareholder return ratio of 80% or more.

Outline of the Sixth Medium-Term Management Plan

1. Clarify business goals and take concrete measures
  • Core business: Business that secures stable profits
    Offset press businessSecurity printing press business
  • Priority businesses: Business that invests intensively with the aim of monetization
    DPS business
  • Business format transformation: Providing solutions that contribute to productivity
    PESP/Recurring business
  • New (incubation) businesses: Business to strengthen the foundation as a growth business
    PE businessMBO business
2. Management system of Medium-Term Management Plan
  • Improving profits through organizational management that clarifies profit responsibility and execution of “Amoeba Management”
  • Implementation of work style reforms that contribute to improving productivity
3. Optimization of capital structure
  • Ensuring financial soundness (including maintaining a rating of A, capital adequacy ratio of 65-70% and securing cash on hand)
  • Management with an awareness of capital efficiency (including increase the efficiency of accounts receivable and inventory turnover, and arrangement and utilization of fixed assets)
  • Total return ratio of 80% or more while emphasizing stable dividends (however, extraordinary profits and losses are considered separately)
  • Maintaining a sound financial status while aiming to increase ROE by improving profitability and asset efficiency
4. ESG initiatives
  • Making company-wide cross-sectional organizational efforts with the CSR Committee and Green Project at the core
  • Clarification of efforts to solve social issues and improve corporate value by issuing an integrated report
  • Activity evaluation and improvement through activity evaluation by a third-party organization “Nikkei SDGs Management”

Progress until the fiscal year ending March 31, 2023

In the fiscal year ended March 31, 2023, we had net sales of $733 million, operating income of $42 million (operating income margin of 5.8%), and ROE of 5.4%. ROE exceeded the target of the medium-term management plan for the second consecutive year, but sales and operating income fell short due to lead time adjustments due to the recent surge in raw material prices and lack of sharing of parts. In the current fiscal year, which is the final year of the medium-term management plan, although the external business environment will continue to be severe in the first half, we will make every effort to achieve our goals through cost reduction efforts and continued review of logistics.

Dividends for the fiscal year ending March 31, 2023 were $0.34 per share, and we also bought back $11 million shares, resulting in a total shareholder return ratio of 81.7% excluding income taxes-deferred for prior periods. The capital adequacy ratio at the end of the fiscal year was 64.6%, and the rating was maintained at A. As for major financial targets, we have achieved our medium-term goals and are maintaining a sound state, but we will continue to streamline our finances, such as by reviewing working capital and fixed assets.

In May 2023, the Komori Group announced its corporate group purpose and long-term vision. In accordance with the direction indicated there, we are currently formulating the 7th Medium-Term Management Plan. With a view to expanding new business areas, we will review the allocation of funds and strengthen the balance between shareholder returns and new investments in order to better meet everyone's expectations.