Response Toward Realizing Management with Awareness of Capital Costs and Stock Price

Revision of Numerical Targets in the Mid-Term Management Plan

Yurtec Corporation, in its mid-term management plan (2024-2028), revised numerical targets based on achieving some of the goals for operating income and ROE. Net sales target was raised from 270 billion yen to 280 billion yen, operating income from 13.5 billion yen to 20 billion yen, and ROE from above 6.0% to 9.0%. The capital cost is recognized as approximately 5% (CAPM-based), and the revision also considers investors' calculations in the 6% range.

Current Analysis and Specific Measures toward Enhancing Corporate Value

Although ROE for fiscal 2025 temporarily declined due to special factors, performance excluding them remains robust. The company aims to improve profitability and optimize allocation of management resources to enhance corporate value going forward. The Price-to-Book Ratio (PBR) stands above 1.0, and the company plans to further strengthen IR and SR activities. Specific initiatives include approximately 80 billion yen investment in growth sectors, financing and growth investments based on around 65 billion yen in operating cash flow, and total shareholder returns of about 40 billion yen (27 billion yen dividends, 13 billion yen share buybacks).