Notice Regarding the Formulation of the “Mid-term Management Plan 2029” (Fiscal Year 2027 to Fiscal Year 2030)

Overview of Mid-term Management Plan 2029

Sangetsu Co., Ltd. has formulated the "Mid-term Management Plan 2029" covering four years from fiscal year 2027 to fiscal year 2030. The target corporate image is "A company that creates culture from interior by focusing on materials and design," and the plan focuses on core interior business, fostering the comprehensive space business and exterior business, expanding overseas operations, and exploring and creating next-generation businesses. The management indicators set targets of consolidated sales of 250 billion yen, operating profit of 25 billion yen, net income of 17 billion yen, ROE of 14.0%, and ROIC of 11.0%.

Capital Policy and Shareholder Returns

As of the end of fiscal year 2026, total shareholders' equity is 1,215 billion yen, with the target range set between 950 billion to 1,050 billion yen. The dividend policy aims for stable increases, with a planned minimum annual dividend of 155 yen per share and a dividend payout ratio of 60% or higher. The company has not implemented share buybacks, and the main method of shareholder return is via dividends. The capital allocation plan allocates 45 to 55 billion yen for growth investments and 35 to 45 billion yen for shareholder returns.