Message from the President
To Our Shareholders
Thank you for your continued support of the KONOIKE Group.
Results for the First Half of the Fiscal Year Ending March 2026
Net sales for the interim period of the fiscal year ending March 2026 amounted to ¥179,322 million, an increase of 5.7% year on year. This result was due to the impact of the consolidations of subsidiaries in India and Canada, as well as increased Airport-Related Business volume driven by the recovery of international passenger flights and other factors.
In response to efforts toward expanding our overseas business and strengthening business in Japan, which represent business strategies under Medium-Term Business Plan 2027, operating income rose 4.7% year on year to ¥12,588 million and ordinary income rose 3.6% to ¥12,556 million. However, profit attributable to owners of parent amounted to ¥8,127 million, down 16.4% year on year, mainly due to the impact of the disposal of strategic shareholdings during FY3/2025.
Medium-Term Business Plan 2027
We launched Medium-Term Business Plan 2027 toward achieving the KONOIKE Group 2030 Vision of People, leveraging technology to reach for new heights. The basic policy of this plan is to maximize employee happiness and corporate value through investments in growth and infrastructure investments in people, technology, and ICT.
In pursuit of this plan, we set numerical targets for FY3/2028 of net sales of ¥410,000 million, operating income of ¥26,000 million, operating income margin of 6.3% or higher, and ROE of 10% or higher. We also set a target of ¥3,300 million in operating income for the Overseas Business.
In April 2025, we established a Human Resources Strategy Committee and a Technology Strategy Committee to promptly address issues related to people and technology from a medium- to long-term perspective, strengthening our management foundation to support sustainable growth.
Shareholder Returns
Under Medium-Term Business Plan 2027, we follow a policy to return profits to shareholders through ongoing stable dividends, aiming for a payout ratio of at least 40%. As announced previously, we forecast an annual dividend of ¥110.00 per share for FY3/2026.
I ask for your continued support as we move forward.
Representative Director, Chairman, President and Chief Executive Officer 