Regarding the Revision of the 2027 Medium-Term Management Plan

Revision of Performance Targets

Based on the progress of the 2027 Medium-Term Management Plan and changes in the business environment, we have revised upward the consolidated net sales target for FY2027 to 120 billion yen and operating income to 11 billion yen. In FY2025, we achieved net sales of 112 billion yen, operating income of 9.7 billion yen, and net income attributable to owners of parent of 6.6 billion yen, updating record highs for operating income and ordinary income. ROE stood at 10.2% and ROIC at 10.0%, securing high profitability.

Financial Strategy and Growth Investment

Placing importance on balancing growth investment, capital efficiency improvement, and enhanced shareholder returns, incremental operating cash flow will be prioritized for dividends, raising the dividend payout ratio from 30% to 40%. While advancing growth initiatives such as the SQC First Reform, strengthening core businesses, promoting plant DX, and enhancing R&D, we are also considering funding through real estate sales and have treasury stock acquisition in view.

Mid- to Long-Term Direction and Realizing the SERA Company

Under the new corporate philosophy, aiming to realize the 'SERA Company' that designs the future energy network, we seek sustainable growth and corporate value enhancement over the next 10 years. Specifically, we will promote diverse initiatives including enhancing product value, next-generation product development, digital solutions, and smart maintenance, striving to balance social contribution with growth.

Future Initiatives

We will continue to prioritize SQC First to generate stable earnings mainly from core businesses such as power equipment and metering, while advancing investment and expansion into growth areas. Through deepening and evolving manufacturing, and creating new value by integrating engineering, digital technologies, and services, we aim for sustainable corporate value enhancement.