Hioki E.E. raises ROE target, revamps capital management and organizational structure

Hioki E.E. Corporation has revised its dividend policy, increasing its Return on Equity (ROE) target to 15% or higher, up from 10%, following an increase in its estimated shareholders' cost of equity to around 10%. The company plans to acquire treasury shares opportunistically to improve capital efficiency and will maintain a consolidated equity ratio of around 60% (managing towards 70%), keeping cash and deposits within 20% of the balance sheet. Hioki is also reducing strategic holdings and considering a three-year cash allocation policy from fiscal year 2026.

These financial adjustments are complemented by organizational changes, effective October 1, 2025. Department X, focused on business transformation, will be dissolved, with its functions transferred to the Product Management Department. Several executive and department manager-level personnel changes were also announced, including new roles for Toshihiko Tsuchiya as director of Ueda second factory and Takayuki Terashima as director of global development.

The company aims to enhance capital profitability by focusing on four key markets (components, batteries, energy, and mobility) and expanding electrical measurement applications in data centers. Efforts will continue to improve information disclosure to reduce shareholders' cost of equity and foster growth expectations, including the release of an Integrated Report 2025 in July.