Medium-term Management Plan
Background to formulating the Medium-term Management Plan
To clarify our future aims and raison d’etre, we have formulated a new corporate Purpose, Group Corporate
Policy, and Long-term Vision and identified materiality issues for achieving the Long-term Vision.
We have formulated the Medium-term Management Plan as the first step toward the Long-term Vision for 2030.
By promoting this Medium-term Management Plan, we will seek to realize sustained growth and further increases in
our corporate value.
Overview of the Medium-term Management Plan
The Medium-term Management Plan has three basic policies: Promoting sustainability management; enhancing
business domains and strengthening the Group’s earning capabilities; and improving capital efficiency and
enhancing returns to shareholders.
By implementing these measures, we will seek to achieve net sales of
160.0 billion yen and operating profit of 12.0 billion yen in the fiscal year ending March 2027.
Promoting sustainability management
We will pursue sustainability management to achieve sustained business growth alongside our stakeholders by solving various environmental and social issues.
- Contributing to a decarbonized society through businesses
- Developing rewarding workplace environments and systems, promoting diversity and inclusion, and enhancing human resource development
- Further enhancements in governance
Enhancing business domains and strengthening the Group’s earning capabilities
In both the Water Environmental Business and the Industrial Business, we will shift business domains toward environmental businesses to contribute to a decarbonized society and to high added value (priority area) domains such as public-private partnerships, where strong growth is anticipated, to improve the Group’s earning capabilities.
Water Environmental Business
- Generating synergies with JFE Engineering Corporation (domestic water engineering business)
- Enhancing energy creation businesses (sludge to fuel, digestion gas power generation)
- Enhancing public-private partnership (PPP) initiatives
Industrial Business
- Enhancing competitive strengths in fine particle manufacture technologies in the battery business and other fields
- Decarbonization technology initiatives (technologies for ammonia recovery and use)
Common to both businesses
- Shifting business domains toward environmental businesses to contribute to a decarbonized society and to high added value (priority area) domains such as public-private partnerships, where strong growth is anticipated
- Improving earning capabilities through enhancements of Group corporate management and strategic functions
Improving capital efficiency and enhancing returns to shareholders
(5/9/2025 Update)
We will implement the following measures to improve capital efficiency and enhance returns to shareholders:
- Adding return on invested capital (ROIC) as a key performance indicator (KPI) and setting ROIC and Return
On Equity (ROE) figures in financial targets.
Improving Price Book-value Ratio (PBR) by improving capital efficiency and promoting corporate value management based on a keen sense of capital costs. - Formulating capital allocation plans and optimizing allocation to investment and shareholder returns.
Continuing to reduce cross-shareholdings with a cumulative sales target of 3–5 billion yen in cross-shareholdings over four years, to levels not exceeding 20% of consolidated net assets.
Expand the sales amount of cross-shareholdings, we have revised our target sales amount to more than 12 billion yen. - Actively providing returns to shareholders with a targeted total return ratio of 50% or more and a dividend payout ratio of 40% or more.
Furthermore, The shareholder return policy has been revised, raising the target dividend payout ratio to 50% or more for the fiscal year ending March 2025.
Starting from the fiscal year ending March 2026, the Dividend on Equity (DOE) will be introduced as a new target to demonstrate the company’s commitment more clearly to stable dividends.
The shareholder return policy has been revised to maintain a stable dividend with a minimum DOE of 3.5% and a total return ratio of over 50%. -
As part of a flexible acquisition initiatives of treasury shares, we decided on December 3, 2024, to purchase up to 1.8 billion yen of treasury shares.
Furthermore, on May 9, 2025, we decided on an additional new acquisition program with a separate upper limit of 12 billion yen.
See below for details of the Medium-term Management Plan.
