YOTAI REFRACTORIES CO., LTD.
FY2025 Financial Results Briefing MaterialsMay 30, 2025
Copyright ©YOTAI REFRACTORIES CO., LTD. All Rights Reserved.
TSE Prime Market: 5357
Takeover Bid by ASNF HOLDINGS and Changes in Major Shareholders
Expressing approval for ASNF HOLDINGS' takeover bid for YOTAI REFRACTORIES' shares
Overview of the tenderer
Name ASNF HOLDINGS GK
Location 2-3, Marunouchi 3-chome, Chiyoda-ku, Tokyo
Representative's name and position
Iwao Aso, President of ASO CORPORATION
Business lines 1. Acquisition and holding of shares or equity in other companies
2. All businesses incidental or related to the above item
Capital 300,000 yen
Date of establishment September 28, 2023
Major shareholder and the percentage of shares held
Results of the takeover bid
ASO CORPORATION 100%
Period of the takeover bid April 14, 2025 to May 14, 2025
Acquisition price 1,810 yen per common share
Number of shares to be acquired (ownership ratio)
6,531,400 (35.44%)
Before transfer
After transfer
Number of shares owned (ownership ratio)
Rank among major shareholders
Number of shares owned (ownership ratio)
Rank among major shareholders
ASNF HOLDINGS GK
-
-
6,531,400 (35.44%)
First
Sumitomo Osaka Cement Co., Ltd.
3,230,709 (17.53%)
First
2,954,409 (16.03%)
Second
ASNF HOLDINGS and the Future of YOTAI REFRACTORIESAiming to enhance corporate value from a medium- to long-term perspective by welcoming ASNF HOLDINGS as a stable shareholder and partner
Strengths Building a network of
operations in Japan and abroad by developing diverse businesses, including the cement business
Vision Creating new business
opportunities and expanding business domains by meeting the needs of the times
ASO GROUP
Strengths
Being a leading company in refractories and holding a high market share in the cement industry
Vision
Promoting overseas business development to become a company that makes its presence felt in the Japanese and Asian refractories markets
YOTAI
Providing technical knowledge of cement and supplying refractories stably
Synergies
Accelerating overseas business development making the most of the connections of the ASO GROUP
The policy of the ASO GROUP is to maintain the listing of shares of YOTAI REFRACTORIES even after the
takeover bid, and the Group plans to preserve the current management structure and business administration policy of YOTAI REFRACTORIES.
Thus far, no specific measures for support and collaboration between the two companies have been decided; plans call for such measures to be discussed between the two in the future.
Copyright ©YOTAI REFRACTORIES CO., LTD. All Rights Reserved.
3
Net sales increased by 0.6% year-on-year, reaching a record high, due to large projects for the ceramics industry and increased orders for environmental systems in addition to price revisions.
Ordinary profit decreased by 1.7% year-on-year mainly because of rising raw material costs, which were mainly caused by the low valuation of the yen and increases in depreciation expenses due to capital investments.
Profit attributable to owners of parent decreased by 32.4% year-on-year as a reaction to the posting of extraordinary profit due to the transfer of a consolidated subsidiary's equity and reduction in cross-shareholdings during the previous year.
(Millions of yen)
FY2024 29,128 | FY2025 | Year-on-year change | ||
Amount +176 | Rate +0.6% | |||
Net sales | 29,305 | |||
Operating profit (Operating profit to sales ratio) | 3,602 (12.4%) | 3,484 (11.9%) | −117 | −3.3% |
Ordinary profit (Ordinary profit to sales ratio) | 3,704 (12.7%) | 3,640 (12.4%) | −63 | −1.7% |
Profit attributable to owners of parent (Profit to sales ratio) | 3,878 (13.3%) | 2,623 (9.0%) | −1,255 | −32.4% |
Net sales Ordinary profit Profit attributable to owners of parent
(Millions of yen)
28,250 29,128 29,305
(Millions of yen) (Millions of yen)
3,878
30,000
25,000
20,000
15,000
10,000
5,000
0
25,912
23,554
'21.3 '22.3 '23.3 '24.3 '25.3
4,500
3,000
1,500
0
4,123 4,143
3,704 3,640
3,021
'21.3 '22.3 '23.3 '24.3 '25.3
4,000
3,000
2,000
1,000
0
2,966 2,971
2,623
1,845
'21.3 '22.3 '23.3 '24.3 '25.3
Consolidated Statement of IncomeDecrease in variable
Decrease in unit prices of purchases from China
expenses due to decreased production volumes
¥455 million
Rise in unit sales prices
¥507 million
¥99 million
Increase in selling, general and administrative expenses
−¥163 million
Increase in fixed expenses due to decreased production
¥3,602
Decrease in profit due to decline in domestic
sales volume for
volumes
−¥157 million
million
refractories
−¥454 million
Increase in unit prices
¥3,484
million
for raw materials and fuel
−¥160 million
Rise in unit prices of inventories
−¥130 million
Decrease in profit for the Engineering Division
−¥115 million
Lower profits of ¥117 million
FY2024 FY2025
Analysis of Factors Underlying the Increase/Decrease in Consolidated Operating Profit (Year-on-year Change)Net sales were 24,167 million yen, up 0.9% year-on-year, and segment profit was 4,723 million yen, up 2.5% year-on-year.
Net sales
Net sales (Quarterly)
Highlights of the current term
(Millions of yen)
25,000
20,000
15,000
10,000
5,000
0
24,167
23,107 23,949
21,176
19,089
'21.3 '22.3 '23.3 '24.3 '25.3
(Millions of yen)
8,000
6,000
4,000
2,000
0
6,302
5,950
6,222
6,052
6,423 5,753
5,719 5,691
1Q 2Q 3Q 4Q
Steel: Orders decreased slightly due to the effects of decreases in production volumes at steel manufacturers.
Cement: Stable orders were secured due to periodic repair.
Nonferrous metals: There was a reaction following the large projects in the previous year, but sales grew due to growth in orders from overseas.
Ceramics: Orders for carbon furnace refractories rose.
Electronic parts: Demand remained sluggish, lowering the number of orders accepted.
Segment profit
Segment profit (Quarterly)
2024.32025.3In overseas markets, sales for Indonesia increased.
(Millions of yen)
4,606
3,609
5,000
4,000
3,000
4,910 4,932
4,723
(Millions of yen)
1,186
1,089
1,133
1,284
1,207
1,177
1,100
1,152
1,500
1,000
2,000
1,000
0
'21.3 '22.3 '23.3 '24.3 '25.3
500
0
1Q 2Q 3Q 4Q
Magnesia-carbon bricks
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Net sales were 5,138 million yen, down 0.8% year-on-year, and segment profit was 716 million yen, down 13.9% year-on-year.
Net sales
Net sales (Quarterly)
2024.32025.3Highlights of the current term
(Millions of yen)
5,142 5,178 5,138
4,465
4,735
6,000
4,000
2,000
0
'21.3 '22.3 '23.3 '24.3 '25.3
(Millions of yen)
1,716
1,618
1,345
1,225
1,017
1,300
993
1,098
2,000
1,500
1,000
500
0
1Q 2Q 3Q 4Q
Net sales decreased as a reaction to the large nonferrous projects in the previous year.
The profit ratio declined due to factors such as higher personnel expenses resulting from restrictions on the number of overtime working hours.
The number of personnel was increased systematically to bolster customer support.
Segment profit
Segment profit (Quarterly)
(Millions of yen)
831
771
699
716
716
900
(Millions of yen)
315
237
186
162
167
187 193
99
350
600
300
0
'21.3 '22.3 '23.3 '24.3 '25.3
280
210
140
70
0
1Q 2Q 3Q 4Q
Ladle construction
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(Millions of yen)
FY2024 31,259 | FY2025 | Increase/ Decrease −1,675 | Major factors for increase/decrease Notes and accounts receivable - trade −1,806 Electronically recorded monetary claims operating +182 Products −196 Raw materials and supplies +249 | ||
Current assets | 29,584 | ||||
Non-current assets | 11,272 | 11,794 | +522 | Buildings and structures +681 Machinery, equipment, and vehicles +80 Construction in progress −119 | |
Total assets | 42,531 | 41,379 | −1,152 | ||
Current liabilities | 8,282 | 6,707 | −1,574 | Accounts payable - trade −208 Accounts payable - other −392 Accrued expenses −186 Income taxes payable −502 | |
Non-current liabilities | 1,718 | 1,722 | +4 | Long-term borrowings +170 Deferred tax liabilities +75 Retirement benefit liabilities −219 | |
Total liabilities | 10,000 | 8,430 | −1,569 | ||
Total net assets | 32,531 | 32,948 | +417 | Profit attributable to owners of parent +2,623 Acquisition of treasury shares −849 Dividends of surplus −1,962 | |
Total liabilities and net assets | 42,531 | 41,379 | −1,152 | ||
Capital adequacy ratio | 76.5% | 79.6% | +3.1 pts | |
ROE (return on equity) | 12.2% | 8.0% | −4.2 pts |
(Millions of yen)
FY2024 3,864 | FY2025 | Major cash flows during the current term Profit before income taxes +3,698 Depreciation +1,384 Decrease in trade receivables +1,628 Decrease in trade payables −246 | |
Cash flows from operating activities | 4,431 | ||
Cash flows from investing activities | −754 | −2,245 | Purchase of property, plant and equipment −2,292 Purchase of intangible assets −53 Proceeds from sale of investment securities +135 |
Cash flows from financing activities | −2,537 | −2,263 | Purchase of treasury shares −849 Proceeds from disposal of treasury shares +406 Dividends paid −1,958 |
Effect of exchange rate changes on cash and cash equivalents | 46 | 30 | |
Net increase (decrease) in cash and cash equivalents | 618 | −47 | |
Cash and cash equivalents at end of period | 6,460 | 6,412 |
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Sales are expected to increase by 2.4% year-on-year on the assumption that demand for refractories in the steel industry will remain stable as a result of the shift from blast furnaces to electric furnaces and that YOTAI will win orders for large nonferrous projects.
Although personnel expenses are expected to continue to grow, the Company plans to increase ordinary profit by 7.1% year-on-year assuming stable demand from its major clients and stabilized prices of raw materials due to a high valuation of the yen.
It is necessary to continue to closely monitor growing geopolitical risks as well as exchange-rate fluctuations, the slowdown in the Chinese economy, and other factors for uncertainty.
(Millions of yen)
FY2024 29,305 | FY2025 (forecast) | Year-on-year change | ||
Amount +694 | Rate +2.4% | |||
Net sales | 30,000 | |||
Operating profit (Operating profit to sales ratio) | 3,484 (11.9%) | 3,800 (12.7%) | +315 | +9.1% |
Ordinary profit (Ordinary profit to sales ratio) | 3,640 (12.4%) | 3,900 (13.0%) | +259 | +7.1% |
Profit attributable to owners of parent (Profit to sales ratio) | 2,623 (9.0%) | 2,600 (8.7%) | −23 | −0.9% |
Net sales
Ordinary profit
Profit attributable to owners of parent
(Millions of yen)
25,912
30,000
20,000
10,000
28,250 29,128 29,305 30,000
(Millions of yen)
4,123 4,143
3,704
3,640
3,900
4,500
3,000
1,500
(Millions of yen)
2,966 2,971
2,623 2,600
4,000
3,000
2,000
1,000
3,878
0
'22.3 '23.3 '24.3 '25.3 '26.3
0
'22.3 '23.3 '24.3 '25.3 '26.3
0
'22.3 '23.3 '24.3 '25.3 '26.3
（予）
（予）
（予）
(Forecast) (Forecast) (Forecast)
Steel
Cement
Nonferrous
(Millions of yen) (Millions of yen)
4,267 4,372
(Millions of yen)
3,300
15,000
12,000
9,000
6,000
3,000
0
12,446
12,923
12,697
11,134
2022.3 2023.3 2024.3 2025.3
4,500
3,000
1,500
0
4,113
3,769
2022.3 2023.3 2024.3 2025.3
3,500
2,800
2,100
1,400
700
0
2,919
2,138
2,225
2022.3 2023.3 2024.3 2025.3
FY2025 Actual | FY2026 Outlook | |||
Steel | ||||
Cement | ||||
Nonferrous | ||||
Environmental systems | ||||
Electronic parts |
Environmental systems Electronic parts
4,740
4,564
4,536
4,045
(Millions of yen) (Millions of yen)
1,141 1,161
5,000
4,000
3,000
2,000
1,000
0
2022.3 2023.3 2024.3 2025.3
1,200
900
600
300
0
1,084
980
2022.3 2023.3 2024.3 2025.3
* Starting from the current term, sales performance has been changed to sales by industry after financial results adjustment.
Progress in the Second Medium-term Management Plan and Future StrategyCopyright ©YOTAI REFRACTORIES CO., LTD. All Rights Reserved.
13
2030 Vision and the Second Medium-term Management Plan
We newly established the 2030 Vision to achieve a medium- to long-term leap.
We aim to maximize investment returns in 2030 by expanding investment returns during the period covered by the Second Medium-term Management Plan.
Corporate Vision
A company that continues to improve its corporate value sustainably in harmony with society through the enhancement of financial and non-financial value by maintaining profitability and promoting ESG management
First Medium-term Management Plan (FY2022-FY2024)
Establish a structure to achieve the corporate vision
Earn revenue from existing businesses
Investment in people, products, and information
2030 Vision
Second Medium-term Management Plan (FY2025-FY2027)
Continuously develop a structure to achieve the corporate vision and cultivate new revenue sources
Strengthen the structure through continuous investment in people, products, and information
Cultivate new revenue sources
Net sales target for FY2027
¥32.0 billion (including overseas sales of approx. ¥1.7 billion)
Company with a strong presence in the refractory industry in Japan and Asia
Net sales for FY2024
¥29.1 billion (including ¥1.3 billion overseas)
Net sales target for FY2030
¥38.0 billion (including approx.
¥3.5 billion overseas)
Second Medium-term Management Plan (FY2025-FY2027)
A period for continuously developing a structure to achieve the corporate vision and cultivate new revenue sources
Basic strategies and prioritized measures
Continue to invest in people, products, and information to maximize investment returns, while responding to changes in the business environment to strengthen profitability and diversify revenue sources
Strengthen profitability and diversify revenue sources Promote ESG management
Overseas development
Development system
Customer support
Rationalization and streamlining
Technical sales
Procurement of raw materials
Products
1
Expand net sales by improving the quality of products and services
2
Strengthen the structure to secure a stable supply with low costs
3
4
Promote ESG management
Install facilities to reduce GHG emissions
and promote technological innovations
Enhance employee diversification and
create a comfortable work environment
Strengthen the governance structure that
contributes to sustainable growth
G: Governance
S: Society
E: Environment
Cultivate new revenue sources
Expand sales of new products and capture needs in growing sectors
Continue to recruit and train technical sales staff and address the so-called "2024 Problem" in the construction industry
Utilize expanded sales offices and provide attentive sales support
Stable and sustainable raw material storage and enhancement of domestic production
Promote rationalization and streamlining by continuously strengthening the production structure
Promote DX that contributes to achieving management strategies
Further strengthen the R&D structure and promote new product development
Examine areas for development and establish a foundation
Utilize overseas OEM products
(Millions of yen)
FY2024 | FY2025 | FY2027 | Change from FY2025 | ||
Amount +2,694 | |||||
Result | Result | Target | Rate | ||
Net sales | 29,128 | 29,305 | 32,000 | +9.2% | |
Operating profit (Operating profit to sales ratio) | 3,602 (12.4%) | 3,484 (11.9%) | 4,400 (13.8%) | +915 | +26.3% |
Ordinary profit (Ordinary profit to sales ratio) | 3,704 (12.7%) | 3,640 (12.4%) | 4,500 (14.1%) | +859 | +23.6% |
Profit attributable to owners of parent (Profit to sales ratio) | 2,669 * (9.2%) | 2,623 (9.0%) | 3,200 (10.0%) | +576 | +22.0% |
ROE | 8.6%* | 8.0% | 10.0% or more | +2.0 pts or more | - |
Consolidated dividend payout ratio | 41.4% | 63.5% | 60.0% | - | - |
* Figures excluding extraordinary income from the transfer of equity in YINGKOU NEW YOTAI REFRACTORY CO., LTD., a consolidated subsidiary, and the reduction of cross-shareholdings.
The Medium-term Management Plan got off to a smooth start as initiatives were steadily carried out according to the priority measures set out in the Plan.
The Company made the most of its strength in having transactions with a wide range of industries to increase sales as refractories for ceramics and environmental systems performed well, but profit decreased due to the effects of rising raw material and fuel costs, which were mainly caused by the low valuation of the yen, and investments in people, products, and information made by taking a hard look at what things will be like in the future.
Investments in people, products, and information progressed as initially planned.
People: Recruitment and training of technical sales staff continued, and efforts were launched to establish a system for data-based strategic sales operations.
Products: Large presses, solar power generation systems, and other systems were continuously introduced. To further enhance cost-competitiveness, the Company started to automate production processes and effectively incorporate IoT into them.
Information: The Company reinforced the functions of the mission-critical system Mikumo and continued to reduce working hours through AI-OCR and RPA.
By establishing closer cooperation in information sharing at overseas strategy meetings, YOTAI staged active sales operations in countries such as Indonesia, India, the Philippines, Thailand, South Korea, China, and the United States. Net sales increased steadily, and progress was made in discovering partner companies.
Initiatives to reduce CO2emissions in manufacturing processes began (such as the change in fuel for sintered tunnel kilns).
Large, high-efficiency presses were introduced at each plant
YOTAI continued to introduce large, high-efficiency presses at each plant to improve product quality and productivity.
Overseas business development
Overseas strategy meetings were held to confirm the progress with sales staff and to proactively expand sales activities.
FY2023
Hinase Plant: 3,000T press (Apr. 2022 operational start) Yoshinaga Plant: 1,500T press (Aug. 2022 operational start) Mizunami Plant: 850T press (Sep. 2022 operational start)
Hinase Plant: | 1,000T press | (Sep. 2023 operational start) |
Kaizuka Plant: | 1,000T press | (Jun. 2023 operational start) |
300T press | (Dec. 2023 operational start) |
FY2024
South Korea
Sales activities were carried out for the cement and lime industries.
Thailand
Orders were won from chemical manufacturers.
FY2025
Kaizuka Plant: Automation of the 1,500T press
(Jul. 2024 operational start) Hinase Plant: 1,000T press (Feb. 2025 operational start)
Expanded scope of products that can be handled
More stable
quality
Enhanced ability to meet delivery
deadlines
Effects of introduction
India
Orders were won from cement companies, and sales activities were carried out in the ceramics industry.
Overseas sales
¥2.1 billion
¥1.7 billion
¥1.3 billion
'24.3 '25.3 '26.3 '27.3
(Forecast) (Target)
Indonesia
Orders were won from nonferrous metal manufacturers.
By conducting sales activities in ways that met the needs of each country, net sales jumped 62% year-on-year.
Development of environmentally friendly refractories
YOTAI has developed new environmentally friendly refractories, which are high in demand among customers.
Cement rotary kilns
Transition zone non-sintered spinel bricks
(Industry type: Cement)
These bricks reduce the amount of CO2emitted during manufacture more than sintered bricks.
Chrome-free castable bricks for waste melting furnaces
(Industry type: Environmental systems) These bricks are highly corrosion-resistant.
Effective utilization of resources through sustainable refractories
Sustainable Refractories: STN Series
YOTAI continued to conduct evaluation tests to commercialize the production of recycled raw materials.
Virgin raw materials (unused raw materials)
+
Lightweight, highly durable creep-fused mullite furnace bricks
(Industry type: Electronic parts)
These bricks are very light and have an excellent anti-creep property. They also reduce thermal loss with
Recycled raw materials
Refractories
their low thermal conductivity and thermal expansivity.
Refractories sintered using 100% hydrogen fuel For the sintering process, YOTAI succeeded in high-temperature sintering using 100% hydrogen fuel, ensuring that the environmentally friendly refractories have a quality comparable to that of the conventional ones.
The goal is for recycled raw materials to
constitute at least 20%
Contribution to effective resource utilization
Ongoing installation of solar power generation systems
YOTAI is promoting the introduction of renewable energy to protect the global environment.
Yoshinaga Plant (First Branch) Start of operation: Aug. 2023 and Dec. 2024
Volume of power generated: 512 kW
Hinase Plant (West Plant and East Plant) Start of operation: Dec. 2023 and Dec. 2024 Volume of power generated: 1,171 kW
Mizunami Plant Start of operation: Nov. 2022 and Jan. 2025 Volume of power generated: 1,206 kW
Electricity produced by YOTAI solar power generation systems (MWh)
2,325
Yoshinaga Plant (Second Branch)
Start of operation: Jun. 2021 Volume of power generated: 150 kW
* Installation of solar panels in the third phase of construction has been decided.
234
1,196
1,699
(The start of operation is scheduled for March 2026.)
Kaizuka Plant
Start of operation: Feb. 2022 Volume of power generated: 748 kW
FY2022 FY2023 FY2024 FY2025
Topics for the First Year of the Second Medium-term Management Plan (4)
Further promote DX that contributes to achieving business strategies
YOTAI is promoting DX by making the most of the newly introduced mission-critical system Mikumo.
Basic policy for DX
Achieve innovation by making effective use of digital technology, including generative AI, and responding to environmental changes
Promote strategic sales operations to win orders from a wider range of clients
Reduce production lead times and achieve greater production efficiency
Promote product improvement and development of new products
Specific initiatives
Promotion of utilization of generative AI and IoT at production sites
Formulation of optimal production plans at the Kaizuka Plant
Automation of inventory control at the Mizunami Plant
Establishment of traceability in manufacturing processes at the Hinase Plant
Recruitment and training of DX personnel
Evolution of the mission-critical system Mikumo
Introduction of sales support systems
Promotion of cloud computing throughout the Company and establishment of unified data management
Achievement of greater operational efficiency by using generative AI
YOTAI aims to realize the 2030 Vision by implementing the measures for the Second Medium-term Management Plan.
2
Strengthen profitability and diversify revenue sources
1
Expand net sales by improving the quality of products and services
Strengthen the structure to secure a stable supply with low costs
Step up sales activities in steel, nonferrous, and other growth areas
Emphasize the superiority of YOTAI's products by making the most of the Company's large presses
Continue to recruit and train human resources centered on technical sales staff
Effectively use the newly established Okayama Office
Strengthen the production system by introducing more large presses (Yoshinaga and Mizunami Plants)
Verify the effects of DX at production sites and further promote DX
Promote ESG management
3
4
Promote ESG management
E Promote the ongoing introduction of solar power generation systems, EVs, etc. and start to reduce CO2emissions in manufacturing processes (such as the change in fuel for tunnel kilns)
S Advance initiatives such as those for the development of a regionally fixed employee system and the empowerment of women
G Assign personnel with succession plans in mind
Cultivate new revenue sources
Move forward with overseas projects for which orders have been won and win repeat orders
Further develop overseas partners and clients in cooperation with trading firms
Achieve greater R&D efficiency by using AI in the R&D process
Preparation time
FY2025 | FY2026 | FY2027 | |||||
First half | Second half | First half | Second half | First half | Second half | ||
| |||||||
Recruitment | Active recruitment of personnel with professional careers | ||||||
Training | Introduction of training programs by rank and job classification | ||||||
Promotion of participation in e-learning (online training) | |||||||
Work style | Revision of the retirement age (extension) system | ||||||
Introduction of a regionally fixed employee system | |||||||
Benefits and welfare | Revitalization of the employee shareholding association | ||||||
Continuous promotion of health management | |||||||
| |||||||
Equipment for automation | Installation of large high-pressure presses and high-efficiency presses | ||||||
Installation of an automated sorting system | |||||||
Remodeling of automatic presses dedicated to deformed shapes | |||||||
Improvement of facility efficiency | Modification of kneading plants | ||||||
Improvement of plant layout | |||||||
Modification of rotary kilns for raw material production | |||||||
Facilities to develop new products | Installation of non-oxide production facilities and new introduction of special presses | ||||||
Furnace construction | Rationalization of construction methods | ||||||
Reduction of CO2emissions | Installation of solar panels | ||||||
Continuous introduction of EV vehicles | |||||||
Change of energy sources in Scope 1 | |||||||
| |||||||
DX promotion | Continuous enhancement of the functionality of the mission-critical system "Mikumo" | ||||||
Cultivation of new customers by digitizing customer information and sales activity information | |||||||
Improvement of productivity and the development of digital human resources by promoting the use of AI, RPA, and low-code tools | |||||||
Improvement of manufacturing quality and cost reduction by promoting IoT at plants | |||||||
Promotion of paperless operations by introducing file servers, electronic workflow, etc. | |||||||
Enhancement of cyber security measures | |||||||
| |||||||
M&A investments in related sectors, etc. | |||||||
Three-year total | Details | FY2025 Result | |
Investment ¥8.0 billion | Renovation investment ¥1.5 billion |
| ¥0.7 billion |
Strategic investment ¥4.0 billion |
| ¥1.5 billion | |
DX investment ¥0.5 billion |
| ¥0.05 billion | |
Other ¥2.0 billion |
| ¥0.01 billion | |
Shareholder returns |
| Dividend payout ratio of 63.5% (planned) | |
* We will make investments other than those mentioned above as appropriate after careful examination of the details and amount of the investment.
(Three-year) Fund Allocation Plan and ResultsResponse for Achieving Capital Cost- and Share Price-Conscious Management
Copyright ©YOTAI REFRACTORIES CO., LTD. All Rights Reserved.
25
Capital cost: Perceived to be around 5% to 7%
ROE: The Company recognizes that to achieve an ROE of 10%, the challenges are to increase investment returns and improve profitability.
PER: The Company recognizes that future growth potential and stabilization of market evaluations are issues to be addressed.
PBR: Though PBR exceeded 1 after the announcement of the Second Medium-term Management Plan, subsequently it remained at 0.9. The Company will continue to formulate and implement management plans from a long-term perspective in a way that addresses environmental changes.
Share price: The share price has been rising over the long term, and the Company will continue to securely implement financial and non-financial strategies.
(%)
Change in ROE
(times)
Change in PER
15
11.8
14.4
12.2
14
12
12.1
10.3
12.0
10
10.3 9.9
9.6
8.0
10
8
6.8
6.7
8.9
5
5.1
7.0
6.4Capital cost
6
4
6.1
5.0
7.2
5% to 7%
2
3.1
0
'16.3
'17.3 '18.3
'19.3 '20.3 '21.3 '22.3
'23.3 '24.3 '25.3
0
'16.3
'17.3
'18.3
'19.3 '20.3 '21.3 '22.3 '23.3
'24.3 25.3
(times)
1.0
0.8
Change in PBR
0.79
0.77
0.95
0.86 0.84
0.34
0.42
0.44
0.50
0.95
(Yen)
2,000
1,600
Change in share price
1,699
1,518 1,470
1,259
1,027
798
630
290
511
379
0.6 1,200
0.4 800
0.2 400
0.0
'16.3 '17.3 '18.3 '19.3 '20.3 '21.3 '22.3 '23.3 '24.3 25.3
0
'16.3 '17.3 '18.3 '19.3 '20.3 '21.3 '22.3 '23.3 '24.3 25.3
The Company's business performance is affected by the amount of domestic crude steel production in the steel industry, which is its main customer, the prices of raw materials in China, and the depreciation of the yen.
Still, the Company maintains a structure that can generate stable profit due to its strong customer base and financial strength.
The Company will continue to work on further improvement and enhancement of capital efficiency with an awareness of the capital cost.
(Millions of yen)
6,000
4,134 4,123 4,143
3,663
3,640
3,704
3,021
2,013
5,000
4,000
3,000
Change in ordinary profit
5,224
(Millions of yen)
8,206
8,537
6,460 6,412
5,300
4,311
5,841
3,027
2,541
12,000
10,000
8,000
6,000
Change in cash and deposits
11,390
2,000
1,000
0
1,396
'16.3 '17.3 '18.3 '19.3 '20.3 '21.3 '22.3 '23.3 '24.3 25.3
4,000
2,000
0
'16.3 '17.3 '18.3 '19.3 '20.3 '21.3 '22.3 '23.3 '24.3 25.3
Policies Targets
1 times or more
Formulate and promote management plans from a long-term perspective
PBR
10.0% or more
Increase investment returns
ROE
Strive to sustainably enhance corporate value by implementing the Second Medium-term Management Plan
and the 2030 Vision in tandem
To achieve optimal capital structure, the Company will utilize interest-bearing debts in a flexible manner with an awareness of the capital cost.
Regarding shareholder returns, during the period covered by the Second Medium-term Management Plan, the Company will prioritize shareholder returns through dividends and choose either a consolidated dividend payout ratio of 60% or a dividend of 85 yen per share, whichever is higher.
Regarding M&A, the Company will continue to seek investment opportunities and actively invest in deals that will contribute to the enhancement of corporate value.
Dividends
2,503
Investment CF
5,500
Acquisition of treasury shares 4,567
As the Second Medium-term Management Plan is progressing steadily in its first year, there are no policy changes.
(Millions of yen)
Operating CF, etc.
6,058
11,389
Operating CF, etc.
9,701
Transfer of equity in subsidiaries and sale of shares of subsidiaries
1,583
Sales of holding shares 1,000
6,460
* Allocated to
1,000 shareholder
returns depending on conditions
Financing through borrowing
500
3,261
Investment CF
8,000
Dividends
5,400
Cash and deposits as of March 31, 2021 (actual)
Cash-in
Cash-out
Cash and deposits as of March 31, 2024 (actual)
Cash-in Cash-out
Cash and deposits as of March 31, 2027 (target)