Investor Relations

Management Policies

The Group's management policies are set forth below.

Management Policy

Based on insight into the direction of social progress, the Group established a management policy of “Providing products and services that can achieve digital transformation, thus contributing to the sustainable growth of a highly efficient smart society.”

Dividend Policy

Based on insight into the direction of social progress, the Group established a management policy of “Providing products and services that can achieve digital transformation, thus contributing to the sustainable growth of a highly efficient smart society” and will shift the main focus of its business to being “a manufacturer with technology trading company functions.” A sound financial structure will be an issue going forward as capital demands for capital expenditures and R&D investment in this kind of business development are expected and working capital for the existing trading company business is on the increase in conjunction with business development.
Based on the above, the Group established the following policies under its capital policy objectives including “adequacy of equity capital” and “reduction of external liabilities” and seeks to achieve its management indicator targets.

Basic Capital Policy

The Group established the following basic capital policy including the dividend policy to sustain growth and enhance medium- to long-term corporate value.

  1. The enhancement of the corporate value is defined as realization of returns exceeding the expected rate of return to shareholders (capital costs). Enhancement of ROE is positioned as one of the targets.
  2. The Group will manage investment in high-growth business and demand for working capital while taking into consideration the optimal capital structure and capital ratio at all times based on the scale and characteristics of business.
  3. With regard to returns to shareholders, the Group will maintain stable and continuous dividends by using the consolidated dividend payout ratio as the basis of a referential indicator. The acquisition of treasury shares is determined as part of shareholder returns including dividends in total consideration of cash flows, the market liquidity of shares, and future demand for capital expenditures.

Numerical Targets

(ROE)
  The Group seeks to achieve ROE (capital efficiency) of at least 15% in the medium term.
(Dividend Payout Ratio)
  The Group seeks to achieve a consolidated dividend payout ratio of 40% in the short term in consideration of future capital demand for capital expenditures and R&D as well as working capital trends.