ShinMaywa Industries (7224) Investor presentation summary

Financial performance and capital efficiency

• ROIC reached 6.7% and ROE 9.7% in FY2026, both exceeding cost of capital benchmarks of 5% and 7% respectively.

• Achieved PBR above 1x; focus remains on improving profitability and execution of the medium-term plan to further enhance PBR and PER.

• FY2026 targets: net sales of 320 billion yen, operating profit of 18 billion yen, ROE of 10%+, and ROIC of 7%+.

• Dividend per share has steadily increased, with a consolidated payout ratio policy of 40–50% and DOE around 3%.

• Operating cash flow for the 3-year plan projected at 70.7 billion yen, supporting growth and competitiveness investments.

Strategic initiatives and growth plans

• Long-term vision targets by 2030: net sales of 400 billion yen (100 billion yen overseas), ROE 12%+, ROIC 10%+.

• Medium-term plan [SG-2026] emphasizes overseas expansion, strategic M&A, and new business creation through synergies.

• Business portfolio management classifies five businesses by growth or profitability focus, guiding investment strategy.

• Aggressive investments planned: 27 billion yen for growth, 43 billion yen for competitiveness, and 10.7 billion yen for shareholder returns over three years.

• Overseas sales targeted at 80 billion yen by FY2026, with initiatives in trucks, parking systems, industrial machinery, fluid, and aircraft segments.

Corporate governance, disclosure, and stakeholder engagement

• Enhanced IR/SR activities include quarterly feedback from investor dialogues to the board and expanded disclosure in both Japanese and English.

• 112 individual dialogues with shareholders and investors conducted in FY2026, with management actively involved.

• Shareholder feedback highlights the need for clearer business portfolio strategy, improved profit margins, and more transparent governance disclosures.

• Ongoing compliance measures and diversity in governance are emphasized, with requests for more frequent engagement surveys and detailed skills matrix disclosure.

• Management incorporates investor opinions into strategy and disclosure, aiming to boost corporate value and market valuation.