ZACROS GROUP

（Fiscal Years 2024 – 2030）

Our Philosophy and Business Model

Review of Fiscal Years 2021–2023

• Fiscal years 2021–23 were designated for strengthening and preparing our business foundation. We met our sales targets, but operating income fell short. Although we made significant progress in preparing investment projects, actual spending was limited to ¥17.9 billion, indicating a need for more aggressive capital deployment. Moving forward, comprehensive structural reforms are essential to align our performance with strategic goals and to capitalize on our investment potential.

Plan Positioning

• Leveraging groundwork laid during the pandemic, we’re entering a three-year phase of aggressive investment to innovate our business model, transform our portfolio, and restructure our balance sheet with the aim of enhancing our ROE.

Targets

• Targeting 12% ROE by Fiscal Year 2030 through decisive structural reforms and strategic investments. For Fiscal Year 2026, we anticipate maintaining current profit levels due to increased depreciation expenses from these upfront investments.

Business Model: Evolution of solution-creating activities

• Our business model focuses on introducing innovative, customizable, made-to-order products to the global market.
• In recent years, we have expanded into high-value-added services by leveraging external resources and partnerships. We are committed to accelerating this approach and extending its reach across other areas of our business.

Business Portfolio Transformation

• We will reallocate management resources from core and restructuring businesses to focused growth areas and emerging ventures.
• We will also maximize returns through aggressive investment in expanding businesses, including strategic M&A.

Cash Allocation and Shareholder Returns(FY 2024–26)

• While maintaining liquidity, we will invest funds aggressively to capitalize on growth opportunities. Our goal is to achieve an optimal capital structure by utilizing interest-bearing debt.
• We aim for a dividend payout ratio of 40% to ensure stable and consistent returns for our shareholders.

Investment, R&D, and Business Development

• We plan to invest ¥110 billion over fiscal years 2024–30. Of this amount, ¥70 billion will be invested in the fiscal period 2024–26.
• We assume plus alpha investment associated with M&A.

Focus on the Cost of Capital and Stock Price

• We aim to enhance our return on invested capital (ROIC) through such strategic initiatives as fostering organization-wide cost of capital awareness, evolving our business model to increase efficiency and profitability, and transforming our portfolio to optimize resource allocation. In addition, we will strategically utilize financial leverage to boost our return on equity (ROE) and maximize shareholder value.

Download the 2030 Business Plan PDF file below