Foster Electric Company Launches New Mid-Term Plan Aiming for Enhanced Value Creation

TOKYO, Jul 30 (Pulse News Wire) – Foster Electric Company,limited (6794.T) initiated the development of a new mid-term plan aimed at significantly surpassing the goals set forth in its previous plan. The project, named “North Star,” was endorsed at the company’s 92nd Ordinary General Meeting of Shareholders held on June 25, 2026 and is scheduled for public presentation in November 2026.

The initiative follows extensive engagement activities with major shareholder Axium Capital Pte. Ltd., which holds approximately 25% percent of voting rights. Key areas of focus include improving profitability, enhancing capital efficiency, and exiting net cash status. Foster Electric plans to integrate strategic insights from Axium's expertise in investment management, M&A, corporate governance, and restructuring.

In preparation for the new plan, Foster Electric launched a dedicated project team on July 01, 2026. The team will work closely with external director Motoya Masahito, CEO and CIO of Axium Capital, to develop concrete numerical targets and strategies. Additionally, the company will continuously evaluate various strategic options considering capital costs and market valuation perspectives. Foster Electric anticipates that the collaboration with Axium will lead to significant improvements in operational performance and financial metrics, aiming to achieve higher returns on equity and improved operating profit margins beyond the existing mid-term plan targets.

The company also intends to enhance growth investments and shareholder returns through more aggressive dividend policies and debt optimization measures.