P.27 Medium-Term Management Plan 2026
27 01. Value Creation Stories for the Future
Medium-Term Management Plan 2026: ❷ Business portfolio transformation
Reallocate resources to growth areas and accelerate portfolio metabolism
Closely monitor SBU-specific ROIC/WACC and focus on enhancing overall portfolio quality
Manage invested capital allocation based on four strategic quadrants
- Market potential
- Demonstration of strengths ROIC (compared to WACC)
Foster next-generation businesses that will become new strengths
| FY2023 | FY2025 | FY2026 | |
|---|---|---|---|
| Invested capital (Billions of yen) | 180.0 | 220.0 | 240.0 |
| ROIC | - | - | - |
Nurture
Increase invested capital to expand earnings base
| FY2023 | FY2025 | FY2026 | |
|---|---|---|---|
| Invested capital (Billions of yen) | 4,100.0 | 4,250.0 | 4,630.0 |
| ROIC | 11.1% | 10.2% | 9.1% |
Example: Construction systems/Agriculture (→ Value creation)
Steady business growth
Increase efficiency and provide new added value to improve profitability
| FY2023 | FY2025 | FY2026 | |
|---|---|---|---|
| Invested capital (Billions of yen) | 2,670.0 | 4,370.0 | 3,180.0 |
| ROIC | 9.2% | 7.0% | 10.2% |
Example: Transferred portion of Construction systems/Agriculture Example: Construction systems/Agriculture (→Restructuring)
Value creation
Restructure businesses including replacement
| FY2023 | FY2025 | FY2026 | |
|---|---|---|---|
| Invested capital (Billions of yen) | 1,230.0 | 610.0 | 1,200.0 |
| ROIC | -10.2% | 5.0% | 4.1% |
Example: Transferred portion of Construction systems/Agriculture
Restructuring
Invested capital/ROIC in eight growth areas
| FY2023 Results | FY2025 Results | FY2026 Forecasts | |
|---|---|---|---|
| Invested capital (Billions of yen) | 4,550.0 | 5,580.0 | 5,550.0 |
| ROIC | 8.9% | 8.1% | 9.0% |
Others Real estate/Energy solutions Digital/Leasing (Billions of yen) 6,000.0 5,000.0 4,000.0 3,000.0 2,000.0 1,000.0 0.0
ROIC/WACC monitoring perspectives
Existing businesses
Regularly monitor strategies and progress of each business to improve ROIC
New investments
Allocate management resources to businesses with strengths and competitive advantages that are highly likely to generate added value exceeding their acquisition prices
Asset replacement
Divest businesses with limited long-term growth prospects under our ownership in addition to low-growth/low-ROIC businesses