Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
To whom it may concern,
May 12, 2025
Listed company name: NIPPON THOMPSON CO., LTD. Representative: Mikihito Hosono, President & COO (Securities code: 6480; TSE Prime Market)
Inquiries: Osamu Nishimura, Executive Officer
(Telephone: +81-3-3448-5868)
Notice of Revision of Medium-Term Business Plan 2026
NIPPON THOMPSON CO., LTD. (the "Company") hereby announces that we have decided to revise the Medium-Term Business Plan 2026, which was announced on May 16, 2024, and covers the period from FY2025 to FY2027, as follows.
Main changes
Consolidated Performance Targets of the Medium-Term Business Plan
Initial target
Revised target
Operating profit
Three-year average: 9 billion yen or above
6.5 billion yen or above by FY2027
ROE
Three-year average: 8% or above
8% or above by FY2027
Capital Policy of the Medium-Term Business Plan
Initial target
Revised target
Shareholder returns
Total return ratio of 50% or above
･DOE 2.5% as a lower limit guideline of dividend
･Total return ratio of 50% or above (Continued)
Reason for change
The business environment surrounding the Group is characterized by a recovery in demand for capital investment in electronics-related equipment and other sectors amid rising demand for semiconductors for generative AI and the increasing trend toward automation and labor saving due to labor shortages. On the other hand, the semiconductor production equipment industry is experiencing a slow recovery in demand, the sluggish Chinese market, higher resource prices, rising prices, sharp exchange rate changes, and heightened geopolitical risks. In order to cope with this rapidly changing business environment, all of our directors and employees are united in our efforts to strengthen the foundation for sustainable growth while facing various challenges.
The numerical targets of the medium-term business plan had been set as a "three-year average" in order to achieve steady growth from a medium- to long-term perspective, with an emphasis on flexible and prompt responses to changes in the business environment. However, since the results for the fiscal year ending March 31, 2025, the first year of the plan, fell below the target level, we have revised the targets to "operating profit of 6.5 billion yen or above and ROE of 8% or above" for the final year.
In addition to the existing total return ratio of 50% or more, we have newly set a minimum dividend on equity (DOE) ratio of 2.5% as a guideline for shareholder return policy. This will allow us to achieve both stable and high dividends and flexible share buybacks while ensuring the soundness of our financial base, thereby further strengthening shareholder returns. In addition, we regard the improvement of capital efficiency as an important issue and will strengthen our efforts to enhance enterprise value over the medium to long term, aiming to achieve a P/B ratio of 1x or higher as soon as possible.
There is no change in the basic policy and growth strategy of the medium-term business plan, and we will accelerate the further deepening and implementation of measures to achieve the plan and sustainable growth by fully analyzing market trends and improving profitability through the provision of high value-added products and technologies, while agilely grasping changes in the external environment.
Details will be posted on the Company's website on Friday, May 16, 2025.
(A financial results briefing for institutional investors and analysts is scheduled to be held on the same day.)
(Note) The performance targets in this document are based on information available at the time of preparation. Therefore, actual results may differ from the plan due to various factors.