Management Plan
The 8th Medium-Term Management Plan (2025–2035) "KAWAI Ten-Year Plan"
1. Planning Period
April 2025 – March 2035 (10 years)
※Reason for Adopting a 10-Year Plan for the 8th Medium-Term Management Plan
The musical instrument and education business, our core business, has significant potential for revenue growth. However, expanding market share in mature markets and developing new markets in emerging regions requires time.
Given this, achieving substantial growth within the traditional three-year mid-term management plan period would not be realistic. Therefore, we have formulated a 10-year plan for this phase.
2.Financial Targets
（Millions of yen）
| （3rd year） 2028/3 |
（6th year） 2031/3 |
（10th year） 2035/3 |
|
|---|---|---|---|
| Sales | 90,000 | 11,000 | 13,000 |
| Operating Profit | 5,000 | 8,000 | 15,000 |
| Operating Profit Margin | 5.6% | 7.3% | 11.5% |
| ROE | 5.5% | 10.0% | 16.0% |
3. What We Aim to Achieve with the "KAWAI Ten-Year Plan"
To become the world's No.1 keyboard instrument manufacturer, we will achieve significant growth in the keyboard instrument business over the next 10 years while simultaneously building the next growth engine.
4. Summary of "KAWAI Ten-Year Plan"
While digitalization accelerates globally, demand for tangible products and experiences is increasing, leading to steady demand for keyboard instruments and music/physical education.
With substantial potential for increasing market share in keyboard instruments (especially digital pianos), we can achieve significant growth without relying on market expansion or new businesses.
Achieve ROE of 5.5% in year 3, 10% in year 6, and 16% in year 10.
Even after 10 years, over 80% of the keyboard instrument market is expected to be dominated by mature markets (Europe, North America, Japan, and China). Therefore, increasing the added value and market share of products in mature markets is the top priority.
Enhance value and expand market share through improved quality, brand awareness, and strengthened sales channels for pianos/digital pianos, with a focus on reinforcing strategies in Europe and North America.
Implement a capital allocation strategy that balances sustainable growth and shareholder returns, continuously improving capital efficiency.
Continue progressive dividends and maintain a total payout ratio of 50% or more.
- For further details, please refer to the documents below.
- https://www2.kawai.co.jp/ir/setsumei_pdf/2025/20250319_2025chukei_e.pdf
