In FY2025, the final year of the previous medium-term management plan "Nitto for Everyone 2025," operating profit reached ¥183.6 billion with an operating profit margin of 17.9%, thereby achieving the targets. We believe this reflects the steady progress of our business operations centered on the Niche Top Strategy, along with our initiatives to strengthen profitability.
The newly formulated "Nitto RISE 2028" represents a three-year period during which we will further enhance corporate value and steadily evolve toward our Target State 2030: an Essential ESG Niche Top Company. To this end, we will promote the creation and expansion of what we call “Double Recognized Products and Services”―carefully selected products and services that meet the recognition criteria for both PlanetFlags™/HumanFlags™ (products and services contributing to the environment and human life) and Niche Top, while improving capital efficiency. We aim to achieve operating profit of ¥220 billion, an operating profit margin of 20%, and ROE (return on equity attributable to owners of the parent) of 14% in FY2028.
As President, I will lead the achievement of these targets and pursue a company that earns the trust of society and continues to be a long-term choice for investors by realizing a virtuous cycle of business growth and returns to stakeholders.
We have revised our 2030 Ideal State from an "Essential ESG Top Company" to an Essential ESG Niche Top Company, which is now positioned as our Target State 2030. This reflects our intention to shift to a phase focused on execution and results under the medium-term management plan "Nitto RISE 2028," while further enhancing profitability and clearly defining Nitto's distinctive strengths.
Through the promotion of Nitto RISE 2028, positioned as the second step toward realizing our Target State 2030, we will create new value through co-creation innovation with our customers and partners. By doing so, we aim to become an essential presence for the sustainable global environment and human society, thereby meeting the trust and expectations of our stakeholders.
We have defined "Digital Interface," "Green Tech," and "Human Life" as our focus domains. We will leverage the Nitto Group's core technologies and strengths, including Sanshin activities, in areas where market growth is expected, and allocate management resources with a clear focus on these domains.
To simultaneously solve social issues and create economic value, we will promote the creation and expansion of "Double Recognized Products and Services" that meet the recognition criteria for both PlanetFlags™/HumanFlags™ and Global Niche Top™/Area Niche Top™.
At the same time, we will enhance the certainty of growth by cultivating new growth domains while strengthening the earnings power of existing businesses.
To support our focus initiatives, we will advance "Human Capital Management," "Digital Utilization," and "Decarbonization Management."
We will promote initiatives to create an environment where everyone can work with vitality and a sense of fulfillment, by advancing both the revitalization of individuals and the organization. At the same time, we will foster a culture of enjoying challenges, which serves as the foundation for creating and accelerating new innovation, and undertake reforms of our HR and talent development systems.
As offensive initiatives directly linked to value creation, we will accelerate efforts to enhance the certainty and speed of the Niche Top Strategy and Sanshin activities. At the same time, we will strengthen supply chain management (SCM) and improve operational efficiency as defensive initiatives to generate the resources that support these efforts. We will also continue to advance infrastructure reforms that serve as the foundation for these initiatives.
We will promote the creation and expansion of PlanetFlags™, thoroughly advance energy conservation, utilize renewable energy, and drive innovation in manufacturing processes. At the same time, we will work to reduce environmental impact across the entire supply chain by collaborating with our partners who supply raw materials and our customers who use our products.
We have set operating profit and operating profit margin, reflecting earnings power and profitability, as well as ROE with a focus on capital cost, as our financial targets. In addition, we define future-financial elements as those that have not yet translated into financial performance but have the potential to do so in the future, and have established eight future-financial targets.
