In our Medium-term Business Plan, titled “Corporate Plan 2026–2028 (hereinafter, new Medium-term Business Plan),” we view the three-year period from fiscal 2026 through fiscal 2028 as a time to build the foundation for long-term growth. We will strive to further strengthen our profit foundation by rigorously implementing management based on return on invested capital (ROIC) and further enhancing our business portfolio management. In addition, to achieve sustainable growth over the medium to long term, we will steadily verify the technological advantages and customer value of new businesses designated as seeds of growth and promote their commercialization.

We have set an ROE of 8% or higher by fiscal 2028 as a key target, and we aim to achieve further improvement beyond this milestone.
We will achieve sustainable growth by focusing our investments on the Industry Business, a growth area projected to deliver a high profit ratio and a 9% CAGR in sales, to drive company-wide profit growth, while also expanding sales in the Professional Print Business. In addition, we will improve the efficiency of selling, general, and administrative expenses (SG&A) through the use of AI and the reduction of fixed costs, thereby aiming to improve our business contribution profit ratio and net profit ratio.
From the perspective of capital efficiency, we have set a target ROIC of 6%, and will enforce disciplined management decision-making based on ROIC while further enhancing our business portfolio management.
At the same time, we will strengthen our financial structure by optimizing working capital and reducing interest-bearing liabilities, aiming for a total asset turnover ratio of 0.98x. By efficiently utilizing our assets, we will drive sustained growth in corporate value.

To enhance corporate value, we will promote measures that contribute to improving both ROE and the price-to-earnings ratio (PER).
To improve ROE, we will position ROIC as a core metric and steadily implement initiatives focused on the key drivers of ROIC improvement increasing gross profit ratio, enhancing cost efficiency, and improving capital efficiency.
Specifically, while pursuing sustainable growth in the Industry Business, we will undertake comprehensive reforms across all areas of business in the Business Technologies Business, including AI-driven operational streamlining and fixed cost reduction.
At the same time, while maintaining R&D expenses at around 5% of revenue, we will rigorously implement strategic allocation to maximize return on investment. Furthermore, we will work to optimize cross-business processes and functions on a regional level to improve productivity.
In addition to these efforts, we will enhance ROIC, and thereby drive a sustained improvement in ROE, by improving our financial balance through the reduction of interest-bearing liabilities, optimizing our tax expense by improving the profitability of overseas subsidiaries, and enhancing capital efficiency by improving the total asset turnover ratio.

Furthermore, we will raise growth expectations by taking action to commercialize new businesses designated as seeds of growth and by achieving inorganic growth driven by technology, thereby aiming to improve PER. In addition to strengthening profitability, we will generate operating cash flow by reducing working capital to strengthen our financial structure.
Through these initiatives, we will improve ROE and PER, leading to greater corporate value (measured as the price-tobook ratio, or PBR).

Priority initiatives and KPIs for enhancing corporate value

We will further strengthen our business portfolio management by using ROIC as the core metric for business evaluation. Each business will be evaluated based on the two metrics of ROIC and revenue growth rate, and we have clearly defined strategies tailored to each business’s characteristics.
As evaluation criteria, we have set the weighted average cost of capital (WACC) of 6%—projected for fiscal 2028, the final year of the new Medium-term Business Plan—as the hurdle rate, and the Group-wide average revenue growth rate of 3% as the benchmark.
Based on these criteria, for our Industry Business, which exceeds both benchmarks, we will expand growth areas such as optical components for semiconductor inspection equipment, new resin films for large displays, automotive visual inspection, and hyperspectral imaging, and we will prioritize strengthening it as a core business that drives Group-wide growth. For the production print unit, which exceeds a 6% ROIC, we will continue to pursue revenue growth as a key driver of expansion.

Meanwhile, regarding the office unit, although its ROIC exceeds 6%, we anticipate a continued decline in demand for printing. Therefore, we will work to reform its profit structure and maintain its ROIC at or above this level in fiscal 2028.
For the healthcare unit and the DW-DX unit, where ROIC is below the benchmark, we will make improving profitability our top priority and aim to raise this metric to 6% or higher. At the same time, for industrial print, where achieving profitability has been delayed due to deteriorating market conditions, we will accelerate profitability and promote business expansion.

Furthermore, at the start of this Medium-term Business Plan, we have set ROIC targets for each fiscal year in each business. To achieve these plans, we will monitor the progress of our initiatives on a quarterly basis and conduct annual evaluations by business. We will flexibly review our initiatives based on progress to increase the likelihood of achieving our targets.
For businesses with insufficient capital efficiency, we will implement improvement plans with clear deadlines; if improvement is not foreseeable, we will make management decisions, including narrowing our focus or withdrawing from the business. Through these initiatives, we aim to further improve ROIC based on rigorous and swift decision-making.

Stricter business decisions based on ROIC