Medium-Term Management Plan Walk the Talk 2028

Overview of the New Medium-Term Management Plan

Nagase Industries has formulated a new medium-term management plan 'Walk the Talk 2028' covering the three years from fiscal 2026. With a focus on transforming earnings structure and reforming corporate culture, the goal is to achieve operating profit exceeding 50 billion yen and ROE of 9.0% or higher. The company will reorganize its business portfolio along functional axes, strengthening manufacturing functions and restructuring or withdrawing unprofitable segments. Additionally, for sustainable business creation, the concept of uniqueness will be introduced, and efforts such as human resource enhancement, DX promotion, and sustainability initiatives will be key strategies.

Specific Initiatives and Goals

In transforming the earnings structure, proactive investments will be made in semiconductor, food, and life sciences fields, along with restructuring and acquisitions of group companies. Non-financial targets include promoting carbon neutrality and improving employee engagement. Regarding organizational culture reform, management talent development and on-site workforce development systems will be introduced, with plans to raise the employee stock ownership plan participation rate from 37.8% to 90.3%. The business segments will be reorganized from five to three, focusing management resources on the three segments of functional materials, electronics, and life sciences.