nihonkohden

Relationship with Shareholders and Investors

Basic Policy on Distribution of Profits and Dividends

Nihon Kohden recognizes that returning profits to shareholder is one of management’s most important tasks. The basic policy on distribution of profits and dividends is to maintain stable and continuous dividend payments while retaining necessary reserves for future business expansion. 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, (ii) dividends, and (iii) share buybacks. The Company sets a target consolidated dividend payout ratio of 30% or more. Share buyback is to considered in a flexible manner, taking into account comprehensively future business deployment, investment plan, retained earnings, and stock price levels.
As the business performance in FY2020 was favorable, we provided shareholder returns in the form of a full-year dividend of 55 yen per share including a special dividend of 20 yen and acquired treasury stock up to 1.5 billion yen.

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 ease-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.

Constructive Dialogue with Shareholders and Investors

Dialogue with Individual Investors

We hold company briefings, which speakers are general manager of the Corporate Strategy Division or a person in charge of IR so that individual investors across Japan can see our management strategy and business operations and extend their long-term support.
In FY2020, we suspended briefings to prevent the spread of COVID-19 but have posted videos of factory tour and company profiles, as well as glossary on the Company’s website.
We will examine the possibility of holding these seminars in FY2021, depending on the state of the COVID-19 outbreak. We will post details on our website when the date of a seminar has been set.

Number of Dialogues with Individual Investors in FY2020
●The on-site factory tour corner in the 2020 online festa by STOCKVOICE: Approx. 1,000 viewers
●Nihon Kohden’s introduction video series for individual investors: Approx. 1,650 views

IR Meeting at SMBC Nikko Securities in Tokyo
(held in December 2019)

IR Meeting at Daiwa Securities in Niigata
(held in January 2020)

The shareholder newsletter is published twice annually and contains information on performance, dividend, new products and other pertinent topics. In terms of dialogue with individual shareholders, the Company conducts a shareholder survey every year and uses feedback from shareholders as a reference for our future IR activities. The Company introduced its long-term vision in the 1st half for FY2020 shareholder newsletter, and its three-year business plan in the FY2020 shareholder newsletter. 

We hold our general shareholders meeting on a date that does not conflict with those of other companies to ensure that shareholders can attend. For foreign shareholders, convocation notices, notice of resolutions, and voting results are translated into English and posted on our website. Starting in FY2020, we also post an English business report. To prevent the spread of COVID-19 and safeguard the health of our shareholders, in FY2021 we again request that shareholders to exercise their voting rights in writing or via the Internet, etc., and to refrain from attending the meeting in person. We have also canceled the showcases of our products. 

Dialogue with Institutional Investors

President, general manager of Corporate Strategy Division, and persons in charge of IR have meetings with institutional investors in Japan and overseas by making periodic visits to investors, accepting visits as requested, and by phone. The Company holds briefings to explain financial results to institutional investors and analysts, which speaker is president, in the 2nd quarter and 4th quarter as well as holding conference calls, which speaker is general manager of Corporate Strategy Division, in the 1st quarter and 3rd quarter.

●Meetings with institutional investors and securities analysts in FY2020: Approx. 340 meetings 

From May 2020, all financial results briefings were held by conference calls in order to prevent  the spread of COVID-19. The Company also held all IR meetings with institutional investors and securities analysts by telephone or video conferences.

Investor Relations Page

Nihon Kohden’s website publishes key information needed by shareholders and investors, such as management policy, financial and performance highlights, dividend information and various disclosure documents. Information about the Company’s long-term vision, three-year business plan, businesses and products is also published to broaden understanding in Nihon Kohden.

External Evaluation - Inclusion ESG Indexes

MSCI Japan ESG Select Leaders Index

The MSCI Japan ESG Select Leaders Index is a stock price index created by MSCI and is composed of companies with excellent ESG (Environment, Social, and Governance) ratings.

Nihon Kohden has been a constituent of the MSCI Japan Select Leaders Index for five consecutive years since 2017.

MSCI Japan Empowering Women Index (WIN)

The MSCI Japan Empowering Women Index (WIN) is a stock price index created by MSCI and is composed of companies that promote high level of gender diversity and women's participation and advancement in the workforce.

Nihon Kohden has been selected as constituent of the MSCI Japan Empowering Women Index (WIN) since 2020.

ISS ESG Corporate Rating

The ISS ESG Corporate Rating is a sustainability rating by ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc., a world's leading proxy advisory firm. The rating is based on ESG (Environment, Social, and Governance) factors.

In 2021, Nihon Kohden is rated as "Prime" in the Health Care Equipment & Supplies industry sector.