Management Plan
New Medium-Term Management Plan: VISION 2030
On May 1, 2026, the Company announced a new Medium-Term Management Plan, VISION 2030, with fiscal year 2026 as its starting year.
Under the new Medium-Term Management Plan VISION 2030, we further evolve the theme of "Change for Growth" under VISION 2025. While refining our business portfolio strategy, we aim to advance our management by placing greater emphasis on capital cost and share price awareness. We position VISION2030 as a long-term management plan with a long-term perspective, taking into account the long-term nature of our businesses and changes in market structure, and aim to achieve the sustainable enhancement of corporate value.
Objectives
Under VISION2030, with the aim of realizing our long-term vision — The leap toward becoming an excellent company with strengthen and resilience — we have newly adopted the theme "Move Forward," and will pursue sustained value creation.
<Summary>
Through the execution of three core strategies — business portfolio, finance, and sustainability — along with the strengthening of our management foundation, we will accelerate the creation of corporate value.
Over the course of the "VISION2030" period, we aim to steadily achieve an ROE of 11% or higher and an ROIC of 10% or higher, while maintaining a total payout ratio in the range of approximately 30% to 45%.
Furthermore, in fiscal year 2030, the final year of "VISION2030," we target revenue of at least 410 billion yen and a core operating income margin of 9% or higher.
■VISION 2030 management indicators
The key management indicators under VISION 2030 are as follows.
| FY2025 results | FY2026 earnings forecast (released on May 1, 2026) |
From FY2026 to FY2030 | FY2030 targets | |
|---|---|---|---|---|
| Revenue (billion yen) | 356.9 | 364.0 | — | 410.0 or higher |
| Core operating income*1 margin | 5.9% | 6.4% | — | 9.0% or higher |
| S&S*2 sales composition ratio | 26% | 29% | — | 35% or higher |
| ROE | 12.5% | 10.1% | 11% or higher (steadily maintained) |
— |
| ROIC*3 | 8.9% | 8.8% | 10% or higher (steadily maintained) |
— |
*1: Core operating income is calculated by deducting cost of sales, selling and general administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange gains and losses, which are primarily due to one-time factors.
*2: Safety & Security Sector
*3: ROIC = (after-tax core operating income + equity-method profit or loss) / invested capital (shareholders' equity + interest-bearing debt)
In addition, to further enhance the earnings power of our businesses, we will improve ROE through investment allocation that places greater emphasis on profitability and growth. At the same time, we aim to reduce our cost of capital by reinforcing financial discipline and strengthening governance, thereby expanding the spread of equity and maximizing shareholder value.
Furthermore, in addition to the management indicators under VISION 2030, we have set ambitious target levels. These include consolidated revenue of 500.0 billion yen or higher, core operating income margin of 10% or higher, and a sales composition ratio of 50% or higher for the Safety & Security sector (S&S).
Business portfolio strategy
We aim to maximize corporate value through the optimization of our business portfolio, with a strong focus on growth potential and capital efficiency.
In the S&S, which serves as a growth engine for the Group, we will continue proactive investment in the Communications Systems Business (narrowband), while nurturing the Communications Systems Business (hybrid), where growth is expected in the public safety market, as an Expected and challenging areas.
The Entertainment Business in the Entertainment Solutions (ES) sector is also positioned as an Expected and challenging areas, while the OEM Business in the Mobility & Telematics Services (M&T) sector is being redefined as a stable earnings base.
Meanwhile, the Aftermarket Business in the M&T is positioned as a restructuring business. We will promote business structure reforms to enhance profitability while establishing a competitive advantage in mature markets.
This illustrates our target business portfolio and sales mix.
Looking ahead, to achieve this target structure, we will increase the share of the S&S Sector — including the highly profitable Communications Systems Business — to 50% or higher.
Financial strategy
<Capital Allocation Policy>
Over the five-year period from fiscal 2026 to fiscal 2030, we expect cash inflows of 200.0 billion yen or higher, and we plan to allocate a corresponding amount of cash outflows to growth investments and strategic investments.
Of this, approximately 90 billion yen is earmarked for strategic investments, with roughly half expected to be allocated to M&A.
Our M&A strategy will focus primarily on the Communications Systems Business, which serves as a key driver of business expansion, and will be executed in a timely manner to capture growth opportunities, including the flexible use of additional financing as needed.
At the same time, through an appropriate balance between shareholder returns and investments to strengthen our businesses, we will pursue strategic capital allocation that balances growth with capital discipline.
<Shareholder return policy>
We consider stable returns to shareholders and securing management resources for future growth to be among our most important management priorities. Based on a comprehensive assessment of our earnings capacity and financial position, we use the total payout ratio as the key indicator for shareholder returns.
Under VISION 2030, we have raised the upper limit of the total payout ratio by five percentage points from the previous mid-term management plan, setting a target range of 30% to 45%.
While maintaining a policy of stable dividends and continuous dividend growth as a basic principle, we will also execute share repurchases in a flexible and timely manner within the total payout ratio range, taking into account our financial condition and the balance with growth investments.
Sustainability strategy
In conjunction with the formulation of VISION 2030, we have newly established a Basic sustainability policy that is aligned with our long-term vision and have reviewed our material issues from a mid- to long-term perspective.
By achieving profitable growth through our businesses while simultaneously contributing to the resolution of global social challenges, we aim to enhance sustainable corporate value and help realize a sustainable society.
<Reidentify Material Issues>
Based on changes in the external environment surrounding the Company, we reassessed risks and opportunities from the perspectives of multiple stakeholders and reidentified five material issues.
By promoting our businesses and ESG initiatives in an integrated manner in line with these material issues and their key topics, we aim to achieve the simultaneous creation of economic value and social value.
<For reference> Basic Environmental Policy "JK Green 2030" and Target Setting
Following our environmental vision, we comply with environmental laws and regulations in all our products and business activities and contribute to the sustainable use of and coexistence with energy, resources, and organisms that are the property of the earth. To achieve this goal, we set and implement goals that focus on the following four key environmental objectives.
- (1) Responses to Climate Change: Achieve Carbon Neutrality by 2050
- (2) Effective Use of Resources: Achieve Zero Emissions (Promotion of 3R* Management)
*: Collective term for Reduce, Reuse, and Recycle - (3) Environmental Conservation and Management: Proper Management of Environmentally Hazardous Chemical Substances
- (4) Conservation of Biodiversity: Maintenance of Ecosystems
*For details, please refer to the following documents.
