Interview with President & C.E.O

The Medium-Term Management Plan 2025 was positioned as a “transformation phase” aimed at achieving sustainable growth, during which we advanced structural reforms and growth investments in parallel. As a result, we successfully achieved all of our financial targets, recording net sales of ¥174.0 billion, an operating margin of 11.3%, and an ROE of 12.7%.

From a business perspective, the OPE segment performed steadily, particularly in the North American market. In addition to expanding a full lineup of battery-powered products, we made progress in expanding sales of robotic lawn mowers. Notably, the introduction of RTK models enhanced our market evaluation, and starting in 2025, we commenced OEM supply to Toro, thereby establishing a new foundation for growth.

We also made steady progress in improving our earnings structure, including consolidating our manufacturing footprint through the liquidation of our Chinese production subsidiary.

We believe that the transformation achieved over these three years has established a solid foundation for the next stage of growth.

The Medium-Term Management Plan 2028 is positioned as a three-year period to translate the transformations accumulated in the previous plan into tangible growth outcomes. We have set targets of net sales of ¥210 billion, an operating margin of 13%, and ROE of 14% for fiscal year 2028.

To achieve these goals, we will go beyond the traditional framework of being a “comprehensive manufacturer of outdoor power equipment” and evolve into a company that continuously creates new value for all people working at outdoor job sites.

Under the Medium-Term Management Plan 2028, we will achieve sustainable growth by securing stable earnings through the deepening of our existing businesses, while strategically investing the resources generated into growth areas.

First, in terms of revenue expansion, in addition to the steady growth of our OPE business in North America, the world’s largest market, we will increase the share of our European business and aim to establish a “tri-polar structure” consisting of the Americas, Europe, and Japan/Asia.

In the robotics business, we will expand earnings by strengthening our production, sales, and service capabilities, with our collaboration with Toro as the core driver.

Furthermore, in the general industrial machinery field, we will expand our product lineup and shift away from an OPE-centric portfolio, thereby promoting the optimization of our business portfolio.

To improve profitability, we will promote cost reductions through model consolidation and parts standardization, while enhancing productivity through supply chain reforms and the utilization of DX, thereby establishing a resilient earnings structure that can withstand changes in the business environment.

In addition, we will strengthen our management foundation through continuous investment in human capital and the enhancement of our governance framework, aiming to further increase corporate value.

We position the continuous achievement of an ROE that exceeds the cost of shareholders’ equity as our top management priority, and we will strive to balance growth investments with shareholder returns.

During the period of the Medium-Term Management Plan 2028, we expect to generate approximately ¥55.0 billion in operating cash flow over the three-year period. This cash will be allocated in a balanced manner to strategic growth investments, investments in our business foundation, and shareholder returns.

Regarding shareholder returns, our basic policy is to provide stable dividends, and we will implement continuous returns with a target payout ratio of 30%.

For the fiscal year ending December 2026, we plan an annual dividend of ¥110 (an increase of ¥20 from the previous fiscal year). Going forward, we will consider flexible return measures, including share buybacks, while comprehensively taking into account the progress of growth investments, our financial position, and the market environment.

We will evolve beyond the framework of a manufacturer of outdoor power equipment into a company that continuously creates added value for professional outdoor work around the world.

Rather than simply providing products, we will address on-site challenges through technology, services, and solutions, while also responding to social demands such as reducing environmental impact.

Even in a rapidly changing business environment, we will continue to take on new challenges and strive to enhance our corporate value. We sincerely appreciate the continued support and expectations of our shareholders.