Review of the 26 Mid-Term Management Plan and Future Policies – Efforts Toward Early Realization of PBR Over 1x –

Progress of the 26 Mid-Term Management Plan

Taiheiyo Cement focuses on revitalizing domestic operations, advancing global strategies, and contributing to sustainability management and carbon neutrality under the 26 Mid-Term Management Plan. Fiscal 2024 net sales amounted to 896.3 billion yen, operating income was 77.7 billion yen, and ROE was 9.5%. Fiscal 2025 forecasts project net sales of 906.0 billion yen, operating income of 70.0 billion yen, and ROE of 2.6%. Domestic cement demand is expected to fall significantly below the initial plan of 35 million tons, reflecting a continued structural decline in demand.

Future Policies and Initiatives

To achieve an ROE of over 10% at an early stage, efforts aim at expanding earnings, improving capital efficiency, and fostering market expectations. In the US business, a vertical integration strategy is being promoted. Despite impairment losses in the Philippines business, earnings improvement is pursued through cost-cutting and sales volume expansion. Capital expenditures and investments are planned to exceed 700 billion yen over three years, with a share buyback of 15 billion yen and an annual dividend hike to 100 yen/share from Fiscal 2025 onwards. The company is also addressing challenges related to carbon neutrality strategies, including CCUS implementation.