Action to Implement Management that is
Cost of Capital-Conscious and Stock Price
Analysis of Current Situation
The Company’s ROE averaged 33% in the last five fiscal years and 37% at the end of the previous fiscal year.
This figure is outperformed above 9% the average for companies listed on the TSE Prime Market or standards of 8%*1, and our profitability exceeds our assumed cost of shareholders’ equity.
We recognize, however, that while the ROE remains above 30%, the stagnant share price is a challenge.
This figure is outperformed above 9% the average for companies listed on the TSE Prime Market or standards of 8%*1, and our profitability exceeds our assumed cost of shareholders’ equity.
We recognize, however, that while the ROE remains above 30%, the stagnant share price is a challenge.
ROE
※1 “Competitiveness and Incentives for Sustainable Growth ~Project for Building Desirable Relationships between Companies and Investors~” (Ito Report)
※2 Refer to the statistical data on the Japan Exchange website; data for FY2021 and earlier are from the First Section of the TSE.
Policy for Initiatives
Improvement in stock price
To drive sustainable expansion, we are committed to consistently augmenting our revenue streams and enhancing our operational achievements. This will be realized through the fortification of our sales division and the strategic cultivation of collaborative partnerships.
Furthermore, we will escalate dividend distributions and actively pursue share repurchase initiatives, among other measures, to enhance shareholder value.
Furthermore, we will escalate dividend distributions and actively pursue share repurchase initiatives, among other measures, to enhance shareholder value.
| FY2023 | FY2027 | ||
| MTP Goal | Sales | ¥12.7bn | ¥25.0bn |
| Ordinary Profit (OPM) | ¥2.2bn（18％） | ¥4.3bn（17%） | |
| ROE | 37％ | >30％ | |
| ROA※ | 12% | >15% | |
| ※excluding Non-Telecoms Business | |||
<Promote Business Growth>
We aim to achieve 25 billion yen in net sales and 4.3 billion yen in ordinary income by FY2027 by strengthening the business-use business domain, continuing the evolution and expansion of the home-use business domain, and exploring synergies among businesses, including non-infrastructure telecommunications businesses.◆Medium-Term Plan
<Enhancement of Investors Relations>
With an emphasis on IR content expansion and communication with the market, the following measures will be implemented.
- Delivery of IR video content, including online financial results and business descriptions
- Disclosure of information on sustainability initiatives, including ESG/SDGs/climate change
- Improving access to corporate information for overseas investors by enhancing disclosure in English
- Continue to hold financial results briefings for institutional and individual investors
- Hold regular 1-on-1 meetings with institutional investors
<Shareholder Returns>
The Company intends to elevate dividend payouts and execute share buybacks in correlation with the advancement of business growth and prevailing stock price evaluations.
| Dividends | |
| FY6/2019 | 0.00 yen/share |
| FY6/2020 | 3.50 yen/share |
| FY6/2021 | 4.00 yen/share |
| FY6/2022 | 4.50 yen/share |
| FY6/2023 | 10.00 yen/share |
| Shareholder Return Results | |
| 2020/3 | Max 100million yen (111,400 shares) |
| 2021/12 | Max 100million yen (88,000 shares) |
| 2023/3-8 | Max 100million yen (74,400 shares) |
| 2023/11 | Max 100million yen (89,600 shares) |