About the Tokai Group ‘Mid-term Management Plan 2028’

Overview of the Mid-term Management Plan 2028

Tokai Holdings Corporation has formulated the 'Mid-term Management Plan 2028' covering fiscal years 2026 to 2028. The plan focuses on dramatic growth and improving ROE as key strategies, with a long-term vision of achieving an ROE of 15% by 2030. The plan aims to strengthen capital returns by expanding business profits and enhancing shareholder returns through a combination of stable dividends and flexible share buybacks, targeting an overall Total Shareholder Return (TSR) of approximately 70%.

Business Strategy and Financial Goals

In FY25, the company recorded a new peak with sales of 244.8 billion yen, operating profit of 18.7 billion yen, and net profit attributable to owners of 10.7 billion yen, showing substantial growth in key financial indicators. Major growth drivers include accelerating profit by expanding the business portfolio, improving asset efficiency, and promoting M&A to expand regions and customer base. The target for FY28 is sales of 260 billion yen, operating profit of 17.5 billion yen, net profit of 10 billion yen, and an ROE of 13%. The company also aims for a dividend payout ratio of over 45%, share buybacks of over 10 billion yen, and a self-capital ratio of over 40%.