Nihon Kohden recognizes that returning profits to shareholders is one of management’s most important tasks. The basic policy on distribution of profits and dividends is to make investments for future business expansion and enhance shareholder returns as well as securing a sound financial foundation. The priority for distribution of profits is: i) investment necessary for future business expansion used in R&D investments, capital investments, M&A or alliances, and development of human resources, and ii) shareholder returns. In terms of shareholder returns, the Company will increase dividends in a stable manner in line with growth in business performance. Share buybacks are conducted in a flexible manner, taking into account comprehensively the Company’s future business deployment, investment plans, retained earnings, and stock price level. We have revised the indicator and target for shareholder returns from a consolidated dividend payout ratio of 30% or more to a consolidated total return ratio of 35% or more. 
For FY2023, the full-year dividend was 61 yen, resulting in a consolidated total return ratio of 36.7%, including the acquisition of treasury shares of 1,123 million yen implemented in February 2024. In FY2024, each share of common stock was split into two shares effective on July 1, and the Company cancelled 5.5 million shares of its treasury shares on July 19. In addition, the Company will acquire up to 10 billion yen of its own shares from August 2024 to March 2025.

Information Disclosure Policy

The Nihon Kohden Corporate Charter of Conduct requires that we aim for highly transparent management by fair and proper disclosure of corporate information to shareholders and society. We disclose Nihon Kohden Group-related information in a timely, appropriate, fair, and easy-to-understand manner. We seek to deepen understanding and trust from all stakeholders and gain appropriate evaluation of the Company.

Organizational Structures of IR

The Company has appointed the president, director in charge of the Corporate Strategy Division, and general manager of the Corporate Strategy Division as persons in charge of information disclosure in accordance with the Information Disclosure Rules in order to ensure the consistency and transparency of the information disclosure. The Corporate Strategy Division, which bears responsibility for IR activities, endeavors to realize constructive dialogue with shareholders and enhance information disclosure by collecting necessary information in cooperation with relevant departments such as finance, sales operations, and R&D.

Relay Investor Feedback to Management

The Corporate Strategy Division which bears responsibility for IR activities, relays the views of shareholders and investors through dialogue to the management and relevant departments for sharing and using information.

Control Insider Information

The Company has adopted a quiet period in which it will not respond to comments or questions in order to prevent information leaks of financial information and to ensure fairness in its information disclosure practices in accordance with the Information Disclosure Policy. Measures to control insider information when engaging in dialogue are provided in the Information Disclosure Rules and thoroughly notified to the management and employees.