Announcement Regarding Sankei Kogyo’s Mid-Term Management Plan (2026-2028)

Overview of the Mid-Term Management Plan 2028

Sankei Kogyo has formulated the Mid-Term Management Plan 2028 covering fiscal years 2026 to 2028. Under the theme 'Go Beyond ~ Break the Shell ~', the plan emphasizes transforming into aggressive investments that contribute to discontinuous growth, advancing business strategies, and strengthening the management foundation. Specifically, it aims to enhance profitability in business areas such as steel, primary metals, recycled metals, food, energy and daily materials, and overseas sales subsidiaries. Additionally, strengthening shareholder returns, improving financial health, risk management, investment oversight, and promoting sustainability management are identified as key issues.

Quantitative Goals and Challenges

Quantitative targets include an ordinary income of 70 billion yen, global steel handling volume of 17 million tons, ROE of 12.0% or higher, Net DER of 1.0 times or less, a cumulative investment & lending framework of 80 billion yen, DOE lower limit of 3.5%, and a total payout ratio of approximately 40%. Currently, ordinary income stands at 52.2 billion yen, global steel handling volume at 14.33 million tons, and cumulative investment & lending of 68.8 billion yen (executed basis). While some targets are unmet, such as these, shareholder returns and financial robustness, including ROE at 12.8%, Net DER at 0.6 times, DOE at 3.4%, and share buybacks of 12 billion yen, are exceeding the targets. Although some items are affected by rapid changes in the business environment, initiatives such as shareholder returns and strengthening the financial foundation are being carried out above the targets.