FY2025 Results Presentation
KITZ Corporation February 2026
The forecast data presented herein reflects assumed results based on conditions that are subject to change. KITZ Corporation does not make representations as to, or warrant, in whole or in part, the attainment or realization of any of the forecasted results presented in this document. Numerical figures presented herein are rounded down
©KITZ CORPORATION All Rights Reserved
FY2025 Financial Results
Progress and Key Initiatives under the 2nd Medium-term Plan
FY2026 Plan
Topics
Appendix
FY2025 Financial Results
(Millions of Yen)
Sales 176,682
YoY：+2.7% vs. Plan：-1.8%
Increased by 1.3% YoY on the back of the higher sales in overseas market and the effect of price revisions, despite the slower recovery than expected in demand for Semiconductor Equipment market
Increased by 9.0% YoY, boosted by higher sales volume and other factors
Valve Manufacturing Business
Brass Bar Manufacturing Business
Operating Profit 15,454
YoY：+8.7% vs. Plan：+3.0%
Increased by 8.4% YoY on the back of increased revenue from higher sales volume in overseas market, etc.
Decreased YoY 2.4% as the impact of increased repair costs for planned furnace maintenance in Q1 remained
Valve Manufacturing Business
Brass Bar Manufacturing Business
vs. Plan：-0.1pt
YoY：-1.2pt
10.1%
ROE
Profit Attributable to 11,465
Owners of the Parent
YoY： -3.0% vs. Plan：+2.4%
Decreased YoY due to lack of gain on large-scale sales of investment securities from sales of shares held under a cross-shareholding arrangement as in FY2024.
FY2024 ：11.3%
Sales
172,042
180,000
176,682
4,639
2.7%
(3,317)
(1.8)%
Valve Manufacturing
139,556
147,300
141,415
1,859
1.3%
(5,884)
(4.0)%
Brass Bar Manufacturing
29,838
30,000
32,514
2,675
9.0%
2,514
8.4%
Operating Profit
14,220
15,000
15,454
%
8.3%
8.3%
8.7%
Valve Manufacturing
17,419
18,800
18,886
1,466
8.4%
86
0.5%
Brass Bar Manufacturing
886
900
865
(21)
(2.4)%
(34)
(3.8)%
Ordinary Profit
15,276
15,600
16,071
%
8.9%
8.7%
9.1%
(Millions of Yen)
FY2024
Results
FY2025
Plan
FY2025
Results
YoY Change
vs. Plan
1,234 8.7% 454 3.0%
Profit attributable to Owners of the Parent
11,824 11,200
11,465
794 5.2% 471 3.0%
(359) (3.0)% 265 2.4%
% 6.9% 6.2%
6.5%
Yen / US Dollar
152.274
155
149.78
Yen / Euro
164.377
167
169.51
Electrolytic Copper, Yen/kg
1,436
1,470
1,536
*Note : Total Sales and Operating Profit include other segment and adjustment.
(Millions of Yen)
Sales(Left)
Sales/OP OP MarginOP(Right)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2024
FY2025
12.0%
40,000
30,000
20,000
10,000
0
4,000
3,000
2,000
1,000
0
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
8.5%
8.8%
7.5%
8.1%
7.8%
7.0%
10.0%
10.2%
Q1
Q2 Q3
Q4
Q1
Q2 Q3
Q4
FY2024
FY2025
(Millions of Yen)
FY2024
FY2025
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sales
40,211
43,586
43,497
44,747
41,740
44,640
44,435
45,866
Operating Profit
2,812
3,695
4,334
3,377
3,378
4,555
3,931
3,589
Ordinary Profit
3,340
4,007
4,097
3,831
3,996
4,377
4,035
3,662
Profit Attributable to Owners of the Parent
2,507
2,912
3,594
2,810
2,890
3,078
2,820
2,676
OP Margin
7.0%
8.5%
10.0%
7.5%
8.1%
10.2%
8.8%
7.8%
(Millions of Yen)
Sales(Left)
Sales/OP OP Margin40,000
6,000
OP(Right)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2024
FY2025
5,000
17.0%
15.0%
14.5%
15.1%
30,000
20,000
10,000
0
4,000
3,000
2,000
1,000
0
13.0%
11.0%
9.0%
7.0%
5.0%
11.5%11.9%
13.2%
12.1%
13.4%
11.7%
Q1
Q2 Q3
Q4
Q1
Q2 Q3
Q4
FY2024
FY2025
(Millions of Yen)
FY2024
FY2025
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sales
33,138
35,376
35,040
36,000
33,260
35,832
35,616
36,706
Operating Profit
3,800
4,194
5,074
4,350
4,386
5,428
4,785
4,285
OP Margin
11.5%
11.9%
14.5%
12.1%
13.2%
15.1%
13.4%
11.7%
Valve Manufacturing Business Results
- by Market -
Building & Facilities: Performed steadily driven in part by price revisions and data center demand in North America.
Petrochemicals: Decreased YoY due to absence of large-scale projects in China and other regions, unlike last year.
Water Treatment: Increased YoY due to steady domestic demand.
Semiconductor Equipment: Slightly decreased YoY as weaker recovery than expected. Semiconductor Materials: Increased YoY.
Fine Chemicals: Increased YoY due to revenue from sales in project orders and other factors.
Hydrogen & Clean Energy: Decreased YoY as the hydrogen projects sales is booked next year, despite
strong sales from LNG projects.
(Billions of Yen)
FY2024
FY2025
YoY Change
Q1
Q2
Q3
Q4
Total
Q1
Q2
Q3
Q4
Total
Building & Facilities
7.5
7.6
8.3
8.8
32.2
7.9
8.3
7.6
8.8
32.6
0.4 1.2%
Core
Petrochemicals
7.3
8.1
8.5
7.7
31.5
7.7
7.4
8.4
7.0
30.6
(1.0) (3.1)%
0.5 4.7%
Water Treatment
3.2
2.1
2.4
2.7
10.4
2.5
2.6
2.8
2.9
10.9
Machinery & Equipment
2.4
2.5
2.6
2.8
10.3
2.5
2.4
2.4
2.8
10.1
(0.2) (1.8)%
Core Total
20.5
20.2
21.7
21.9
84.4
20.6
20.7
21.2
21.5
84.1
(0.3) (0.4)%
Semiconductor Equipment
5.3
6.1
6.0
6.1
23.5
5.1
6.0
5.8
6.2
23.1
(0.4) (1.9)%
0.4 9.4%
0.4 12.9%
(0.3) (14.2)%
Semiconductor Materials
1.1
1.2
1.2
1.3
4.8
1.3
1.3
1.3
1.4
5.2
Growth
(Filters)
Fine Chemicals
0.7
1.1
0.7
0.8
3.4
0.9
1.1
0.9
0.9
3.8
Hydrogen & Clean Energy
0.9
0.5
0.4
0.4
2.2
0.3
0.4
0.5
0.7
1.9
(incl. LNG)
Growth Total
8.0
8.9
8.3
8.7
33.9
7.6
8.7
8.5
9.2
34.0
0.1 0.4%
Others
4.6
6.2
5.1
5.4
21.3
5.2
6.3
5.8
6.0
23.3
2.0 9.6%
1.9 1.3%
Total
33.1
35.4
35.0
36.1
139.6
33.2
35.9
35.6
36.7
141.4
Note 1:Following a revision to the aggregation methodology effective from FY2025 Q4, "Semiconductor Equipment" and "Others" have been revised retroactively.
Valve Manufacturing Business Results
- by Area -
Domestic sales rose by 2.4% YoY, while overseas sales remained same level.
North Americas: Increased YoY due to strong sales from commodity valves centered around data center as well as industrial valves.
ASEAN, Korea, Middle East, and others: remained flat YoY despite variations among group companies.
China: Decreased YoY due to continued overall slowdown led by the real estate recession.
India: Increased YoY backed by strengthened sales activities by local subsidiary established in 2024.
(Billions of Yen)
Japan Overseas Total
ASEAN, Korea, Middle East, and others
China India
Asia Total
Americas
(North and South America) Europe, etc.
FY2024
18.5
20.5
20.1
21.2
80.4
19.5
21.1
20.0
21.8
82.4
2.0
2.4%
14.5
14.9
14.9
14.8
59.1
13.7
14.7
15.7
14.9
59.0
(0.1)
(0.1)%
5.6
4.2
4.4
4.9
19.2
4.2
5.4
4.9
4.9
19.3
0.1
0.8%
2.7
4.0
4.0
3.4
14.2
2.6
2.7
3.3
3.1
11.9
(2.3)
(16.6)%
0.4
0.4
0.4
0.4
1.7
0.4
0.6
0.7
0.6
2.4
0.7
47.4%
8.8
8.7
8.7
8.7
35.0
7.2
8.8
9.0
8.6
33.6
(1.4)
(4.0)%
4.4
4.8
5.0
4.6
18.8
5.0
4.7
5.6
4.9
20.3
1.5
8.1%
1.2
1.3
1.2
1.5
5.3
1.5
1.1
1.1
1.4
5.1
(0.2)
(3.1)%
Q1 Q2 Q3 Q4
FY2025
Total Q1 Q2 Q3 Q4
Total
YoY Change
Note1 : From FY2024, the area aggregation grouping in the Asian market has been partially modified. Note2 : Since figures are shown in units of billion yen, totals may not align to the calculation.
Sales: Increased by ¥2,675m YoY on the back of a higher sales volume and other factors.
Operating Profit: Delayed through Q3 due to impact of increase in repair costs in Q1 for planned furnace maintenance, but recovered in Q4 due to margins secured from increased copper price.
※Q1-Q3 total: (40.7)% YoY → Q1-Q4 total: (2.4)% YoY
(Millions of Yen)
FY2024
Results
FY2025
Plan
FY2025
Results
YoY Change
vs. Plan
Sales
29,838
30,000
32,514
2,675
9.0%
2,514
8.4%
Operating Profit
886
900
865
(21)
(2.4)%
(34)
(3.8)%
Electrolytic Copper Yen / kg
1,436 1,470 1,536
（yen/kg）
1,950
1,850
1,750
1,650
1,550
1,450
Brass Products
1,350
24/12 25/3 25/6 25/9 25/12
Electrolytic Copper price over the past year
(Millions of Yen)
FY2024
Results
FY2025
Plan
FY2025
Results
YoY Change
vs. Plan
Sales
172,042
180,000
176,682
4,639
2.7%
(3,317)
(1.8)%
Operating Profit
14,220
15,000
15,454
1,234
8.7%
454
3.0%
of Yen)
Sales Volume Product Mix
+3,390
Cost Reduction
+350
Material Cost
-310
Parts & Energy Cost
-790
SG&A
-580
Forex
-590
Brass Bar
Other
Ad nt
justme
-240
14,220
15,454
Valve Manufacturing Business OP Analysis
(Millions
20,000
15,000
10,000
5,000
0
FY2024
FY2025
(Millions of Yen）
Consolidated
FY2024
Results
FY2025
Results
Sales
172,042
176,682
Operating Profit
14,220
15,454
Ordinary Profit
15,276
16,071
Profit Attributable to Owners of the Parent
11,824
11,465
Overseas Sales Ratio
34.9%
34.1%
Overseas Sales Ratio
in Valve Manufacturing Business
42.4%
41.8%
Interest Bearing Debt
36,089
37,013
Equity Ratio
62.9%
64.1%
ROE
11.3%
10.1%
BPS (Yen)
1,246.16
1,358.57
EPS (Yen)
132.64
131.85
Progress and Key Initiatives under the 2nd Medium-term Plan
Concerning change in dividend policy
Raise the ideal dividend payout ratio from approx. 35% to at least 40%
Decided in light of our commitment to enhancing shareholder returns, changes in the business environment, and the impact on our optimal capital structure and ROE targets (effective from FY2025)
As a result of the change, the dividend per share for FY2025 will be ¥53, representing the highest level for five consecutive years.
Consider share buybacks depending on the investment environment and other conditions to achieve an optimal capital structure and ROE target.
Annual Dividend History
（9 month FY）
Raise to at least 40%
9
13
13
17
20
20
20
33
41
46
53
16/3 17/3 18/3 19/3 20/3 20/12 21/12 22/12 23/12 24/12 25/12
DPR standard
25%
35%
40%
(Billions of Yen)
Financial KPIs | FY2024 Results | FY2025 Targets | FY2025 Results | FY2027 targets |
Sales | 172.0 | 180.0 | 176.7 | 200.0 |
Operating profit | 14.2 | 15.0 | 15.4 | 20.0 |
ROE | 11.3% | 10.2% | 10.1% | At least 11％ |
Dividend payout ratio | 34.7％ | Approx. 35％ | 40.2% | At least 40％ |
Non-financial KPIs*1 | FY2024 Results | FY2025 Targets | FY2025 Results | FY2027 targets | |
CO2 reduction rates*2 | (89)％ | (90)％ | (90.8)％*3 | (90)% | |
Employee-engagement score*4 | Feedback index | max-imu | m score: 5.0 -p | t 3.36 | 3.75 |
% of female managers*5 | 7.5% | 10% | 8.4% | 12％ | |
% of male employees taking childcare leave | 70.6% | 80% | 88.2% | 100％ | |
*1 Non-consolidated basis excluding CO2 reduction rate
*2 Scope 1 and 2 emissions
*3 Estimated value
*4 We belief that a well-established feedback culture directly enhances employee engagement and enablement, therefore we revised the employee engagement evaluation criteria to 'Feedback index' starting in FY2026 (maximum score: 5.0 pt). As the engagement survey provider was changed and the survey questions were revised accordingly, comparable scores for fiscal year 2025 are not available and are therefore excluded.
*5 Employees in management professional positions
(Billions of Yen)
Sales | FY2024 Results | FY2025 Targets | FY2025 Results | FY2027 targets |
Valve | 139.6 | 147.3 | 141.4 | 167.2 |
Metal Solutions* | 29.8 | 30.0 | 32.5 | 30.0 |
Other | 2.6 | 2.7 | 2.8 | 2.8 |
Operating Profit | FY2024 Results | FY2025 Targets | FY2025 Results | FY2027 targets |
Valve | 17.4 | 18.8 | 18.9 | 23.1 |
Metal Solutions* | 0.9 | 0.9 | 0.9 | 1.5 |
Other | 0.1 | 0.1 | 0.2 | 0.1 |
Adjustment | (4.2) | (4.8) | (4.5) | (4.7) |
*The "Brass Bar Manufacturing Business" has been renamed the "Metal Solutions Business". (hereinafter referred to as the "Metal S Business")
In conjunction with the launch of 2nd MTP, the organization was restructured into a Strategic Business Unit (SBU) system that focuses on eight target markets. The delegation of authority to BU heads enabled faster decision-making.
Valve Manufacturing
Growth
Core
Building & Facilities Petrochemicals Water Treatment Machinery & Equipment
Semiconductor Equipment
Semiconductor Materials
(Filters)
Fine Chemicals
Hydrogen & Clean Energy
Metal Solutions
*BU＝Business Unit
| |||||
Building Facilities/ Machine Equipment BU | Industrial BU | Semiconductor BU | Environmental Solutions BU | Hydrogen BU | Metal S BU |
- ｰ
- ●
-
ｰ
-
-
-
-
-
●
ｰ ｰ ｰ ｰ- ● ｰ ○
ｰ ｰ ｰ ｰ - - - -- ●
- --
●
- - - - - - -●
ｰ ｰ ｰ ｰ - ○ -○
-●
- ●Market Strategies
Customer- and market-driven business
Growth markets
Expedite growth through M&A activities
Develop products for semiconductor market
Enter the hydrogen production field
Strengthen the fine chemical market (Pharmaceuticals)
Core markets
Grow sales of products for data center market
Increase sales volumes of commodity valves
Expand share in Machinery & Equipment
Area Strategies
ASEAN,
China
Locally led approach to identifying growth opportunities
Localize development/production/consumption
Middle segment strategy tailored to specific regions
Americas, Europe
Enhance a quick-delivery system for the data center market
Expand modification capabilities
Improve sales to petrochemical market in North America
market
Launch construction and engineering business
Strategies by
India, Middle East
Synergy creation through HPE M&A in India
Expand sales in Middle East
Develop water related business
Market and Area
Generating Group synergy to expedite strategies
Group Synergy
Use digital technology to develop and support strategies
Group Synergy
DX
Share production resources across group
Facilitate cross-selling of group brands and products
Build global procurement network
Optimize production locations to optimize inventories
Adopt SBU system to improve product development, design, and lead times
Establish data-driven approach
DX
Forecast demand more accurately
Develop customer relationship management, build databank on customers and competitors
Engage in digital marketing
Automate operations and save labor
Valve Manufacturing Business
Core Markets: Outcomes and Strategies
Marget and Area
Group DX Synergy :BX+CX
FY2027 Sales target | CAGR |
¥90.5 billion | 2.5% |
Accelerating sustainable growth by building on the outcomes
Achieving revenue growth by deeper penetration and expansion of the markets
FY2025 Key Outcomes
FY2026-2027 Key Strategies
Building & Facilities
Established a quick-delivery system for the North America data center market
Developed localized models to ASEAN and China
Updated casting and machining facilities in a Japanese plant.
Target world's data center market primarily in North
America
Reduce cost by increasing sales and production of localized models
Enhance competitiveness in both quality and supply by improving processing capabilities
Petrochemicals • Launched High add-valued instrumentation valves (e.g. control valves, automated on-off valves)
Increased line-up of severe-service valves (e.g. corrosion-resistant valves, friction-resistant valves)
Win energy-transition projects
Grow Sales of instrumentation valves and severe-service valves
Water Treatment
Machinery & Equipment
Established department for construction and engineering solutions
Established a one-stop proposal system for products and services from water mains to service piping
Grew sales and expanded market share of mini automated valves and eco-compliant products
Secure orders by providing solutions for potable water infrastructure and water recycling
Increase sales of water treatment equipment both in Japan and overseas
Strengthen direct contact with user
Increased line-up of localized models
Key Market: U.S.
World's largest market, projected to grow 1.6×* by 2030
East Coast hub Virginia reaching saturation
* Increased investment in Texas, Georgia, and Arizona
West Coast demand shifting to Oregon and Nevada
*vs the market size in 2024
Leverage our Sales Company's Local Advantage
Relocated and expanded KITZ Corp. of America's facility in Nov. 2025
Doubled warehouse size to approx. 10,000 m²
Increased inventory to build immediate delivery system
Enhance Modification Functions
Target 5× Year-on-Year Sales Growth in 2026
New warehouse of KITZ Corp. of America
Broke ground on new plant building in Thai in Nov. 2025
Increase production of large-diameter butterfly valves to meet growing demand
Reduce costs by promoting in-house parts manufacturing
Scheduled to start operations in second half of 2026
Increase Butterfly Valve Production Volume by 1.5×
Construction at KITZ (Thailand) Ltd. Amata Plant
Sales Trends for Data Centers
(Millions of Yen)
Plan5× YoY Sales Growth
3,000
2,500
2,000
1,500
1,000
Expand orders not only in the U.S., but also in Japan, ASEAN, India, and the Middle East through strategic use of inventory at Japan, Thailand, and China sites
Collaborate with HVAC manufacturers on
technology development
2025 Results 2026 Plan 2027 Plan
Other Regions U.S.500
0
Valve Manufacturing Business
Growth Markets: Outcomes and Strategies
Marget and Area
Group DX Synergy :BX+CX
FY2027 Sales target | CAGR |
¥54.2 billion | 16.9% |
Accelerating revenue growth through focused investment in high-growth areas
Positioning semiconductors and fine chemicals as core growth drivers
FY2025 Key Outcomes
FY2026-2027 Key Strategies
Semiconductor Equipment
Semiconductor Materials (Filters)
Established a production site to respond more quickly to global customer demand
Expanded capacity of vacuum products and improved margins.
Developed sub-1 nm high-precision filters for advanced manufacturing processes
Stabilize operations at the new Vietnam plant and expand supply capacity
Expand technical support and rapid product delivery by leveraging Group sites
Further penetrate the advanced semiconductor materials market
Expand utilization of filter manufacturing, assembly, and cleaning facilities
Achieve spec-in for leading-edge manufacturing processes
Fine
Chemicals
Hydrogen & Clean Energy
Expanded the lineup of PFA products centered on diaphragm valves, enabling access to new segments.
Implemented M&A in India
Developed water electrolysis systems as a step toward hydrogen flow engineering
Secured core technologies through partnerships
Expanded EPC and engineering capabilities
Broaden the lineup of diaphragm valves and PFA products
Step up sales activities in pharmaceutical and healthcare markets
Strengthen the production and sales network in India
Evolve into an integrated hydrogen supply chain business
Improve profitability and build a strong business foundation through high-value-added products and services
Strengthen initiatives supporting the energy transition
Valve Manufacturing Business
Growth Market Strategy: Semiconductor Equipment
Marget and Area
Group DX Synergy :BX+CX
December 2025
New factory for high-purity gas valves in Vietnam
April 2024
Investment for expanding vacuum valves at
KITZ SCT Nitta SC Plant
April 2023
New factory at KITZ SCT Nitta SC Plant
April 2024
Mass Production of Polyfix, Precision filter for semiconductor Manufacturing, at the new factory
China and
From February 2024 Enhance the Group synergy:
Internalized parts production in Japan
(Billions of Yen)
2nd MTP
1st MTP
975
（Billions of USD）
400
350
300
250
Sales Trends in Semiconductor Equipment Market
Results Plan
556 574
469
527
631
772
200
150
100
50
0
335 339
412
412 440
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Global Semiconductor Market* Results Forecast
＊Created by KITZ, based on WSTS Global Semiconductor Market in 2026
2025
Promote India market expansion and deepen fine chemicals market, including M&A under the Second Medium-term Pan 2025-2027
In October, announced MA of Horizon Polymer Engineering Pvt. Ltd. pipe & valve manufacturer for fine chemicals
：Expand production and sales bases Enhance products for specialty chemicals
2024
2022 Established sales company, KITZ Valve & Actuation India Private Positioned fine chemicals as a target growth market Limited
under theFirst Medium-term Plan 2022-2024 ：Strengthen sales activities and market strategies
2010 2015
Launched India Liaison Office Acquired industrial valve manufacturer, Micro Pneumatic Private Limited
：Started marketing initiatives ：Secured production sites and sales network and entered fine chemicals field
Valve Manufacturing Business
Growth Market Strategy : India Fine Chemicals
Marget and Area
Group DX Synergy :BX+CX
1st MTP
2nd MTP 3rd MTP
(Billions of Yen)
60
50
40
30
20
10
6.0
5.0
4.0
3.0
2.0
1.0
0
Sales Trends in India
Results Plan
Future Growth Strategy
Expand business in chemical, pharmaceutical, and food sectors through local Group companies
Build a fully localized business by linking local manufacturing and sales networks to cover diverse fields
2011 2017 2024 2025 2026 2027 2028 2029 2030
Metal Solutions Business
Outcomes and Future Strategies
Marget and Area
Group DX Synergy :BX+CX
FY2025 Key Outcomes
OP
Sales
FY2027 Targets
Renamed the segment from "Brass Bar Manufacturing Business" to "Metal Solutions Business."
¥1.5 billion (OP margin 5%)
¥30.0 billion
Expand processing capabilities beyond brass bars into new materials.
Rebuilt a stable earnings structure by cutting manufacturing cost and recycling
Rebuilt a stable earnings structure by cutting manufacturing cost and recycling
Raised the production mix of new materials FY2024: 2.2% → FY2025: 10.7%
Accelerated material recycling
Expanded processing capabilities for semiconductor-related industries
FY2026-2027 Key Strategies
Mitigate material market fluctuations and establish a stable, high-profit structure through value-added products
Brass Bar
Comply with lead regulations: add more value
Cut manufacturing costs by further boosting recycle and enhancing sorting chemicals /
promote resource circulation
Adopt CO₂-free electricity to minimize environmental footprint
Processed Products
Grow sales of forged and cut products
Use technology partnerships
Enhance precision processing capabilities for new materials
More Group synergy
- Expand production of processed products for the semiconductor industry
CX: Transition to a Highly Efficient, High-Profitability Company
Marget and Area
Group DX Synergy :BX+CX
Building on DX-based business transformation (BX) under the First Medium-Term Plan, KITZ accelerates Group-wide efficiency through organizational and operational reform (CX) under the the Second Medium-Term Plan.
Reorganization into the SBU-based structure
KITZ's transformation is driven by BX＋CX
Key Outcomes through FY2025
FY2026-2027 Key Strategies
DX Promotion Committee
Visualized and reduced inventory requirements
Established data-driven management
BX＋CX
Transform organizations, systems, and operations across the Group
Implement top-down decision-making to address Group-wide challenges
Strengthened One Team
Relocated of the HQ and consolidated the Group companies
Optimize overall business operations |
Achieve optimal global production |
/ Promote automation and labor |
savings by harnessing AI &DX |
Business
BX Task Force
Built the foundation for company-wide operational reform
BX Areas
DX Promotion Task Force Advanced company-wide DX initiatives Operational Reform Projects
Improved productivity and employee engagement
Establish global One Team
Strengthen corporate functions by integrating and standardizing organizations, systems, and operations
CX
Group Infrastructure
Strive for enhancing shareholder value (PBR) by focusing on increasing our ROE and improving our PER
「Improve ROE in the medium to long term」
T FY2022-FY2024
a FY2024
FY2025-FY2027
FY2027
FY2028-FY2030
FY2030
r
e
g ROE results:11.3％
t *1st medium-term plan target: at least 9％
FY2025
10.1%
(result)
FY2026
10.4%
(plan)
At least 11%
(MTP plan)
ROE target : at least 13％
*Initial target of KITZ Group long-term vision: at least 10％
Ｒ Net profit margin
Ｏ
× Total asset turnover ×
Financial leverage
Target optimal capital structure
Ｅ R Product portfolio strategy
Ｐ O Deploy ROIC Tree
Equity ratio target: approx. 60％
Corporate bond rating：maintain A level
Enhancing profitability,
ROIC target: at least :7.5%
FY2027
ROIC result:6.9%
FY2024
Ｂ I including M&A
Ｒ C
Balance sheet Management
ROIC target: at least 9.0%
FY2030
ESG Management
IR Strategy / investor engagement
Shareholder Restructuring
Non-financial factors
「 Improve PER and reduce cost of capital」
Garnering capital market trust
Shareholder returns
Payout ratio: at least 40％
*from approx. 35% to 40%+ announced
in Feb. 2026
Consider share buyback, taking into account optimal capital structure, ROE target, and investment status
Reduce volatility through consistent achievement of profit & ROE targets
Cultivating growth expectations through business shift to high-profit areas
×
Ｐ Ｅ
Ｒ ×Financial Strategies and Capital Management ②
Cash Allocation
Target investments of ¥60.0 billion for further growth under the 3 years of the 2nd medium-term plan Finance our investments using the operating cash flow generated by KITZ-style ROIC management, with the additional utilization of interest-bearing debt if required
Cash Generation（FY2025-FY2027）
I
K 1. Product portfolio strategy
T ◼ Portfolio management based on Market and
Z Area
S ◼ Profit management through SBU system
t
l
y 2. Enhancing profitability
e ◼ Greater sales in growth markets and areas
Profit growth through productivity
R improvement and area-specific strategies
O I
C 3. Balance sheet Management
M
Reduce non-business assets
a
Reduce non-business assets Proper adjust cash and deposit levels ＆ reduce cross-holding shares
n ◼ Improve CCC Optimize inventory
a
e
g 4. ROIC tree
◼ Deploy ROIC tree and manage PDCA
e
◼ Link ROIC with each employees' KPIs
t
Use interest-bearing debt
Operating CF
Genera+ting cash via reducing
asset
¥60.0
billion
Financing CF
Total investment over 3 years
Strategic investment: IT・DX ¥26.0 billion Growth Core Metal Solutions Markets Markets Green Investment OTher |
M&A: ¥20.0 billion *We may pursue M&A deals exceeding the budget by utilizing borrowings if attractive opportunities arise. |
General investment: ¥14.0 billion （including investment for corporate staff departments ） |
¥60.0
billion
Growth in working capital due to business expansion
Shareholder return
Maintain payout ratio at least 40％ and consider share buyback
Cycle for further business growth
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©KITZ CORPORATION All Rights Reserved