Management with an Awareness of the Cost of Capital and Stock Price

Management Conscious of Cost of Capital and Stock Price

The Company conducts analysis and evaluation of return on capital and market valuation, determines policies and measures to realize corporate value enhancement, and strives to promote such policies and measures. We recognize that the cost of capital, which is the market's expected return, is around 8%, and we maintain a return on capital above that level. In addition, we aim to achieve growth while maintaining a portfolio balance between Trading and Stable Businesses, pursuing financial soundness and capital efficiency.

In January 2025, we revised our ROE target in the current medium-term management plan upward from "12% or more" to "13% or more," based on the improvement of profitability in the Trading Business and the Hotel Business.

The WACC (as we recognize it) is around 4.0%, the ROIC (as per our plan) for FY2024 to FY2026 is 5.0% or more, the cost of equity (as we recognize it) is around 8.0%, and the ROE (as per our plan) for FY2024 to FY2026 is 13.0% or more.

Efforts for Corporate Value Enhancement

This diagram presents key financial metrics, including PBR, ROE, ROA, financial leverage, PER, EPS growth ratio, and cost of capital, highlighting the company's management strategy aimed at sustainable profit growth and shareholder returns through optimizing the business portfolio, continuous investment in growth sectors, utilization of non-financial capital, maintaining financial discipline, and efficiently managing inventory and fixed assets, etc.

We are promoting initiatives for the management conscious of cost of capital and stock price, with the aim of realizing corporate value enhancement.
Please refer to the following documents for details on our initiatives.

Initiatives for Corporate Value Enhancement -Management Conscious of Cost of Capital and Stock Price-（Update on January 10, 2025）