March 31, 2025
For Immediate Release
Company name Representative Okabe Co., Ltd.
Hirohide Kawase, Representative Director, President and Chief Executive Officer
(Securities Code: 5959, TSE Prime Market)
Contact
Hisanori Ekawa, Director, Operating Officer and Executive General Manager of Administrative Division
(TEL. +81-3-3624-5119)
Action to Implement Management that is Conscious of
Cost of Capital and Stock Price (Updates)
We are pleased to announce that we have analyzed and evaluated the current situation and updated our future action policy for improvement "Action to Implement Management that is Conscious of Cost of Capital and Stock Price" in order to achieve sustainable growth and enhance corporate value over the medium to long term.
Please see the attached for details.
This release is an updated version of the "New Medium-Term Management Plan OX-2026 Okabe Transformation 2026" disclosed on February 19, 2024 (updated on March 1, 2024).
Note: This document has been translated from the original Japanese version for reference purposes only. In the event of any discrepancy between this translated document and the original Japanese version, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
Action to Implement Management that is Conscious of Cost of Capital and Stock Price
Medium-Term Management Plan OX-2026
Okabe Co., Ltd. (Stock Code: 5959)
Update March 31, 2025
Future figures stated in financial forecasts and elsewhere in this material are forward-looking statements based on currently available information and involve risks and uncertainties. Investors are therefore asked not to make investment decisions based solely on these forecasts. Please note that actual results may differ materially from the forecasts due to various key factors. These factors that may impact actual results include economic circumstances surrounding the Company's business domains and fluctuations in foreign exchange rates against the U.S. dollar and other currencies.
This is an English translation of the original Japanese document. If there is any discrepancy between this translation and the Japanese original, the Japanese original shall prevail.
Positioning of the Medium-Term Management Plan
Towards realizing Okabe Corporate Vision 2040
We aim to maintain our profit level while swiftly responding to changes in the external environment, positioning the next three years as a transformation period toward establishing a new revenue base, with the goal of achieving sustainable growth in corporate value.
5.0 billion yen
1
2
3
4
15.0 billion yen
5
NEXT100 - PHASE2
6
7
NEXT100 - PHASE2.1
8
9
OX-2026
10
11
12
Okabe Corporate Vision 2040
13
14
Numerical Management Targets under the OX-2026
In FY2024, operating profit and ordinary profit exceeded the planned figures, however, the company recorded a net loss due to extraordinary losses related to the U.S. lawsuit.
OX-2026
Consolidatedfinancialresultsand returnoncapital
FY2023 results | FY2024 targets | FY2024 results | FY2025 plan | FY2026 plan | |
Net sales | 78,152 million yen | 70,000 million yen | 67,806 million yen | 72,500 million yen | 75,500 million yen |
Operating profit | 4,082 million yen | 4,100 million yen | 4,194 million yen | 4,700 million yen | 5,000 million yen |
Operating profit margin | 5.2 % | 5.9 % | 6.2 % | 6.5 % | 6.6 % |
Net Profit | (5,472)million yen | 2,800 million yen | (874) million yen | 3,120 million yen | 3,320 million yen |
ROE | (8.5) % | 4.7 % | (1.4) % | 5.2 % | 6.0 % |
Shareholder returns
FY2023 results | FY2024 targets | FY2024 results | FY2025 plan | FY2026 plan | |
Payout ratio | － | 49.5 % | － | 60.8 % | at least 40 % |
DOE | 1.8 % | 2.2 % | 2.7 % | 3.2 % | Target of 3 % |
Analysis of Present Status
PBR has remained below 1. The current ROE level does not meet the cost of shareholders' equity sought by the market.
PBR (times)
ROE (%)
1.2
1.0
0.8
0.6
0.4
0.2
0.0
0.5
0.5
2019
2020
2021
2022
2023
2024
Most recent 直近
(3/21/2025)
Analysis of Factors for Poor ROE (DuPont Analysis)
Increase profitability and streamline the balance sheet to achieve an ROE level that exceeds the cost of shareholders' equity at an early stage.
Manufacturing industry average: Approx. 7 to 10% 5.9 6.0 4.6 4.4 |
(8.5) (1.4) 2019 2020 2021 2022 2023 2024 |
We will increase profit by growing existing businesses, launching new businesses, and expanding business through M&A.
We will improve the cash conversion cycle of working capital by shortening the turnover days of inventory and accounts receivable.
Change in Shareholder Return Policy
After change
The Company considers shareholder returns to be a crucial aspect of management and acknowledges the significance of capital efficiency. In principle, it aims to distribute its profit based on its business performance while maintaining its financial soundness. In addition, based on its basic policy, it seeks to achieve a stable and sustainable increase in dividend levels over the medium to long term by achieving sustainable growth.
The Company aims for a dividend payout ratio of at least 40% and a dividend on equity (DOE) target of 3% for each fiscal year.
In addition, the Company will implement a special dividend and purchase treasury shares based on comprehensive judgment, taking into consideration the stock price level, the need to implement a flexible capital policy, and the impact on its financial position, in order to improve ROE and achieve a P/B ratio of over 1x by optimizing its capital structure in conjunction with strengthening earning power.
The Company's basic policy for dividends of surplus is to pay both an interim dividend and a year-end dividend each year.
Payout rate: Rough target of 30% or more 40% or more
Trends in Dividends per Share
Based on the new shareholder return policy, we will strive to achieve a stable increase in the level of dividends over the medium to long term.
(Yen)
45
40
41
35
30
25
20
15
10
5
0
2011
2012
2013
Interim dividend
2014
2015
2016
Year-end commemorative or special dividend
2017
2018
2019
2020
Interim commemorative or special dividendDividend per share
2021
2022
2023
Year-end dividend
2024
2025 (forecast)
ROE × Payout ratio = DOE
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Payoutratio( ％) ROE( ％) DOE( ％)
2025 (予)
4.0
0.0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
(forecast)