Announcement of Mid-term Business Plan 'Value Creation 28': Punch Industry

Punch Industry Co., Ltd., a manufacturer and distributor of precision mold parts and factory automation (FA) equipment, has formulated a new three-year mid-term business plan, 'Value Creation 28 (VC28),' covering the period from the fiscal year ending March 2027 to March 2029.

'VC28' is based on the pillars of 'improving profitability' and 'building a foundation for future growth.' The company aims to enhance corporate value by strengthening existing operations and expanding business domains through the development of the FA business and new ventures.

'VC28' is positioned as the 'profitability improvement phase,' representing the first stage of the growth trajectory toward realizing the long-term vision 'Vision60' announced in May 2025.

Financial targets for the final fiscal year (March 2029): - Net sales: 50 billion yen - Operating profit: 3.4 billion yen - Operating profit margin: 6.8%

The company aims to achieve a management style where ROIC consistently exceeds the cost of capital, targeting an ROE of 8.0% and maintaining a PBR of over 1.0x.

Key Management Challenges: - Strengthening the cash generation base in existing operations (mold parts) through specialization in custom products and improved productivity. - Cultivating the FA business driven by automation demand. - Improving operational efficiency and restructuring fixed costs through DX promotion. - Enhancing the business portfolio through M&A and collaboration with Misumi Group Inc.

Specific Initiatives: 1. Strengthening Existing Operations: Focusing on custom products, expanding orders for precision micro-machining, enhancing overseas procurement, and leveraging DX for indirect business efficiency. 2. Cultivating the FA Business: Expanding sales channels, utilizing external resources, and investing (including M&A) to build it into a second pillar of revenue. 3. Promoting New Ventures and R&D: Creating high added value through external collaboration in aerospace and utilizing the patented technology 'P-Bas®.'

On May 26, 2026, the company held its first IR briefing for analysts, where it presented the fiscal year 2026 results and the 'VC28' plan.