Yodoko (5451) Investor presentation summary

Long-term vision and strategic direction

• BLOOMING VISION 2035 aims to transform new challenges into growth, targeting the company's 100th anniversary in 2035.

• Core values include challenge, quality, integrity, people, and coexistence, with a focus on making people, communities, and the future bloom.

• Plans to retain steel sheets as the core business while expanding into value-added products and new market categories.

• Key initiatives: strengthen current businesses, implement growth strategies, and build a robust operational foundation.

• Responds to demographic shifts, technological advances, sustainability demands, and global trade changes.

Financial targets and investment plans

• FY2035 targets: net sales of ¥300 billion, operating profit of ¥23 billion, ROE above 8%, and equity ratio around 60%.

• FY2025 forecast: net sales of ¥199 billion, operating profit of ¥11.6 billion, ROE of 8.7% (including one-time factors).

• Planned investments of ¥130–160 billion from FY2026–FY2035, with ¥50 billion for current businesses, ¥70–100 billion for growth, and ¥10 billion for infrastructure.

• M&A and digital transformation are key tools for sustained growth and operational efficiency.

Review of Medium-term Management Plan 2025

• Operating profit fell short due to lower steel sheet sales, but ROE is expected to rise due to one-time gains.

• Capital expenditures totaled ¥14 billion over three years, below the ¥20–25 billion target, but focused on infrastructure and environmental upgrades.

• Maintained a payout ratio of at least 75% and annual dividend of at least ¥40 per share after a 1-to-5 stock split.

• Reduced cross-shareholdings by 30% (¥8.4 billion), strengthening governance and capital efficiency.

• Initiatives included new product launches, alliances, and business portfolio revisions.