Mid-term Business Plan 2027 Financial Goals

Policy

Establish a mid-term revenue base with the three key products and aim for renewed growth with new products (primarily existing Sumitomo Pharma owned assets)

Financial Goals and
Dividend Policy

  • MTBP 2022 MTBP 2027
    5-year total FY2023 FY2024-FY2027
    PL
    /
    CF
    Revenue CAGR 3.5% ¥362 billion CAGR 12% or higher(Base year: FY2023)
    Core operating profit ¥293.7 billion ¥(62) billion ¥192 billion or higher(For four-year total)
    Operating cash flow ¥273.6 billion ¥(130) billion ¥270 billion or higher(For four-year total)
    ROIC 2.5% (8.5)% 6.5% or higher(For four-year total)
    ROE 4.8% (21.9)% 8% or higher(For four-year total)
    FX
    rates
    USD (5-year average) ¥115 ¥130
    RMB(5-year average) ¥17.0 ¥19.5
    • *All financial goals above are after adjusting for the probability of success
      CAGR: Compound Annual Growth Rate
      ROIC: (Core operating profit – Income taxes) / (Equity + Interest-bearing liabilities)
  • Long-term ROE goals


    Aim for ROE of 10% duringthe next MTBP starting in FY2028

  • At the end of FY2022 At the end of FY2027
    BS Net D/E ratio 0.60 0.5 or lower
    Interest-bearing liabilities ¥334.7 billion ¥200 billion or lower
    Ratio of equity attributable to
    owners of the parent to total assets
    35.8% 40% or higher
    • *All financial goals above are after adjusting for the probability of success
  • Dividend policy


    In FY2023, the policy is to not pay the dividend as core operating profit is expected to be in the red. In FY2024, as core operating profit returns to the black, we will resume the dividend, after which we will aim for a consistent dividend payout

  • Investment policy


    R&D investments in own assets will be prioritized. Resources will be allocated to M&As and in-licensing as well, so long as they do not significantly effect achievement of financial goals

Renewed Growth Imagined

  • Expanding

    The medium- to long-term revenue image (graph) is created based on the forecast before adjusting the probability of success

Invested Capital and Return on Capital

For the four-year period from FY2024, we will seek to secure a level of profit reasonably expected from invested capital and then aim to post a higher profit level during the next Mid-term Business Plan starting from FY2028.

  • Expanding
    • *The profit line reasonably required from invested capital (capital + interest-bearing liabilities) is set to be “invested capital x 6.5%” (weighted average cost of capital)