Medium-term plan

To achieve “sustainable growth driven by photonics technologies,” the Company has formulated a medium-term management plan with the fiscal year ending September 2028 as its final year. Under this plan, we will simultaneously strengthen our business foundation and enhance profitability through integrated initiatives encompassing business strategy, enhancement of business competitiveness, and operational excellence.

Specifically, we will expand our product lineup for the semiconductor market and further grow the laser business, while promoting the creation of new businesses by strengthening collaboration between research and development and marketing functions.

At the same time, we will reinforce our management foundation by upgrading core systems and reviewing business processes, thereby establishing an efficient and resilient business operating structure.

Financial strategy

Three-year capital allocation plan

Total capital of ¥289 billion over a three-year period will be used as shown in the diagram. We will secure sufficient funds for growth investments to ensure sustainable and stable management while maintaining a balance with shareholder returns. The flexible allocation of ¥35 billion will prioritize strategic investment projects, and any surplus funds will be considered for additional shareholder returns.

Consolidated payout ratio

In addition to working to steadily increase dividends with a target dividend payout ratio of 30 %, we have set a minimum of 3.5 % dividend on equity, which is less susceptible to short-term performance fluctuations.

ROE

ROE for FY2026 is expected to fall below 5 % in continuation of FY2025, and is projected to remain below our estimated cost of equity of 7 %–8 %. We will improve profitability and manage the balance sheet effectively to boost capital efficiency, thereby achieving ROE that exceeds the cost of equity.

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