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
During the period under the Sixth Medium-Term Management Plan (April 2019 to March 2022), the Company aims to achieve an ROE of 13% and higher and a D/E ratio of approximately 0.5 as one of its management targets.
(Corporate Governance Guidelines)
Book-value per share and net assets ratio
Interest-bearing liabilities and D/E ratio
※By changing the discount rate used to calculate retirement benefit obligations from 1.7% to 0.8% in FY2015, the Company posted extraordinary losses of 84.9 billion yen. As a result, the ROE dropped by approximately 5.0 points.