Medium-Term Management Plan

Vision: What We Aim to Be by 2030

We have established the 2030 Vision "We will become the irreplaceable enabler for accelerating client success" as the goal in our new medium-term management plan. Our company aims to expand its role as an enabler through the consideration of the solution from the client’s perspective and adding our strengths in technical capabilities that we have cultivated over time, and leveraging creativity, conceptual capability, and high energy—offering essential value for client business success and growth—thereby realizing our vision.

Pursuing Value that Only We Can Provide and Earning Unwavering Trust from Customers as an Irreplaceable Enabler

A diagram showing the Our Mission, Shared Values, and Vision (What We Aim to Be by 2030) of Hakuto Co., Ltd. The Mission states: "Through its sound business operations, Hakuto aims to contribute to the development of Japanese industries and global trade as well as to the welfare and peace of human society." The Shared Values are "Thinking in Reverse," "Being Considerate & Lifting Each Other UP," and "Leading the Way in Making Connections." The Vision for 2030 is: "We will become the irreplaceable enabler for accelerating client success." Three interconnected circles labeled "High Value," "High-Technology," and "Humanity" represent the key elements for achieving the vision.

Medium-Term Management Plan Hakuto 2028

As a hybrid company that combines two business areas, electronics and chemicals, along with the functions of both a trading company and a manufacturer, we have formulated a new medium-term management plan called "Hakuto 2028," spanning until the fiscal year 2028. With this, we aim for long-term growth and new value creation. Despite the increasing global uncertainties such as rising prices and resource costs, and the strategic importance of semiconductors, the electronics industry is expected to continue its robust growth, largely driven by various investments in AI and semiconductor manufacturing. Furthermore, the role and relevance of trading companies within our industry are evolving, prompting a reevaluation of their significance. In this business environment, our group aims to establish irreplaceable trust with our customers by pursuing the unique values we offer, positioning this medium-term management plan as a critical milestone.

Positioning of the New Medium-Term Management Plan

A diagram showing the positioning of the new Medium-Term Management Plan. In the Previous Medium-term Management Plan from 2021 to 2025, the company worked on transforming the business structure by concentrating resources on highly profitable businesses and streamlining low-profit ones. The new Medium-Term Management Plan "Hakuto 2028" (April 2025 to March 2029) sets forth initiatives to increase value with customer-first approach, including combining and creating new value, securing human resources and investing in DX, and balancing growth investment with stable shareholder returns. Looking toward 2030, the company aims to become "the irreplaceable enabler for accelerating client success."

Basic Policy and Three Strategies

This diagram illustrates three core strategies based on the basic policy of working to increase value through a customer-first approach.The first pillar, Business Strategy, focuses on integration value and creating new business. This involves providing integrated solutions in response to customer problems, accelerating the creation and scaling of new business through a company-wide organization, and capturing new value through M&A and capital alliances.The second pillar, Strategy for Strengthening the Foundation, aims to secure human resources and invest in DX to accelerate the business strategy. This includes securing and developing human resources to realize enablers, as well as utilizing DX to increase both operational efficiency and the value provided.The third pillar, Financial and Capital Strategy, seeks to achieve both aggressive investment in growth and stable shareholder returns. This is pursued by allocating capital with a focus on balancing growth and returns, promoting management that is conscious of capital cost, and delivering stable shareholder returns through the introduction of DOE.

Management Goals

This diagram presents the company’s management goals, which aim to increase growth and profitability by upgrading and integrating the value provided. It shows targets for the fiscal year ending March 2029 in comparison with the actual results for the fiscal year ended March 2025.Net sales are projected to grow from 183.1 billion yen to 250 billion yen or higher. By business segment, Electronic Components are targeted to increase from 142.9 billion yen to 185 billion yen, Electronic and Electric Equipment from 27.2 billion yen to 43 billion yen, and Chemicals and Cosmetics from 10.7 billion yen to 17 billion yen.Operating income margin, excluding exchange rate impact, is expected to rise from 3.8% to 4.0% or higher. ROE is targeted to increase from 7.8% to 10% or higher.In terms of shareholder returns, the company plans to move from a total return ratio of 95% in FY2025 to a dividend payout ratio of 65–75%, plus a lower limit of 5% for DOE.The contribution of growth measures to gross margin is aimed to reach 30% by FY2029. A footnote also indicates that the segment name was changed from Industrial Chemicals to Chemicals and Cosmetics starting in FY ending March 2026.

Shareholder returns

We Aim for Stable Dividend Increases, Set a Dividend Payout Ratio of Around 70%, and a Dividend on Equity (DOE*) Ratio of 5% as a Lower Limit for Dividends.

  • *Dividend on Equity Ratio (DOE) =Total Dividends Paid / Net Assets
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