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 policies

The Group establishes the following basic capital policies, including its dividend policy, for sustainable growth and enhancement of corporate value over the medium- to long-term.

  1. The enhancement of corporate value is defined as realization of returns exceeding shareholders’ expected rate of return (capital cost). The enhancement of ROE is positioned as one of the Group’s targets.
  2. The Group will deal with investment in growing business and demand for working capital with awareness at all times of the optimal capital structure and shareholders’ equity ratio based on the size and characteristics of the business.
  3. With respect to shareholder return, the Group will provide dividends commensurate with financial performance based on the consolidated dividend payout ratios as indicators. The Group will decide on the acquisition of treasury stock as part of the shareholder return policy, including dividends, taking into consideration cash flow conditions, market liquidity of shares, future capital funding needs, and other factors, while prioritizing growth investment.

Target values

(ROE)
  The Group aims to provide ROE, which indicates capital efficiency, of 20% or higher in the medium term.
(Dividend Payout Ratio)
  The Group aims to provide a consolidated dividend payout ratio of 40% as the standard for the time being, taking into consideration future demand for capital investment and R&D as well as trends in working capital.