Basic Strategy for Capital Policy

Basic strategy for capital policy

Considering sustained growth necessary to achieving increases in shareholder value over the medium to long term, the Company recognizes the need to maintain a level of shareholders’ equity that allows for investment in growth and a tolerance for risk.

Considering return on equity (ROE) to be one of its topmost management priorities, the Company discloses its targets. To effectively deploy shareholders’ equity and ensure a robust financial base that allows for the raising of funds for investment in stable growth, the Company discloses its target D/E ratio and other measures for financial soundness and works to create the optimal capital structure for reaching these targets.

ROE and target values for measurement of financial soundness

The Company’s basic strategy for capital policy is to achieve ROE that exceeds the cost of capital while maintaining financial soundness and to secure an equity spread to increase shareholder value. The Company has set a target of Non-GAAP ROE of 10% or higher and is working to improve capital profitability.