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 considered in a flexible manner, taking into account comprehensively future business deployment, investment plan, retained earnings, and stock price level.
Because Nihon Kohden celebrated its 70th anniversary of its founding and the business performance in FY2021 was favorable, the Company provided an annual dividend of 67 yen including a commemorative dividend of 13 yen and a special dividend of 15 yen, as a return to shareholders. Additionally, the Company acquired ¥896 million of own shares in February 2022. The Company also acquired ¥999 million of own shares in May and June 2022 and cancelled 500 thousand shares of treasury shares in June 2022.

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 FY2021, we held online meetings two times to prevent the spread of COVID-19. In March 2022, we held our first live-streamed meeting with the president. The president answered questions received prior to and on the day of the meeting. We endeavor to enhance information disclosure by explaining company overview, financial results, and company history on our website for individual investors. In FY2021, we posted videos of company introductions on our website.
We will examine the possibility of holding these seminars in FY2022, 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 FY2021
●Nikko Web IR Day Video Streaming by SMBC Nikko Securities: Approx. 1,850 views
●Online Company Briefing at Rakuten Securities: Live viewing: Approx. 100 viewers
Video streaming: Approx. 1,450 views
●Nihon Kohden’s introduction video series for individual investors: Approx. 1,350 views
Live-streamed meeting by Rakuten Securities
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 the Eastern Japan Logistics Center in the 1st half for FY2021 shareholder newsletter and new products in the FY2021 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 the external website. We have also posted a business report in English since FY2020.
In order to prevent the spread of COVID-19 and to ensure the safety of our shareholders, in FY2022 we continuously requested them to consider refraining from attending the meeting by exercising voting rights in writing or via the Internet, etc., and cancelled the showcases of our products. As an alternative, we have posted a video of the presentation by the Chairman on the day on our website.

Dialogue with Institutional Investors

The 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 FY2021: Approx. 300 meetings 

From May 2020, all financial results briefings were held by conference calls in order to prevent  the spread of COVID-19. In March 2022, the Company held an online small meeting with officers in charge of the U.S. business aiming at realizing constructive dialogue. 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

FTSE4Good Index Series, FTSE Blossom Japan, and FTSE Blossom Japan Sector Relative Index

Created by the global index provider FTSE Russell, the FTSE4Good Index Series, FTSE Blossom Japan, and FTSE Blossom Japan Sector Relative Index are designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. FTSE Russell evaluates companies in the areas of corporate governance, health and safety, anticorruption, and climate change, and its constituent companies meet various criteria related to environment, society, and corporate governance.
Nihon Kohden, as a result of assessment according to the FTSE Russell ESG rating criteria, has been a constituent of the FTSE4Good Index Series and the FTSE Blossom Japan for four consecutive years since 2017, and in 2022. The Company also has become a constituent of the FTSE Blossom Japan Sector Relative Index in 2022, which is designed by FTSE Russell to measure the performance of Japanese companies demonstrating relatively excellent ESG practices in each sector.
FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Nihon Kohden Corporation has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series, FTSE Blossom Japan and FTSE Blossom Japan Sector Relative Index. Created by the global index and data provider FTSE Russell, the Index is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. FTSE4Good Index Series, FTSE Blossom Japan and FTSE Blossom Japan Sector Relative Index are used by a wide variety of market participants to create and assess responsible funds and other products.
   FTSE4Good Index Series
   FTSE Blossom Japan Index Series, FTSE Blossom Japan Index Series

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 ESG Select Leaders Index for six consecutive years since 2017.
The inclusion of NIHON KOHDEN CORPORATION in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of NIHON KOHDEN CORPORATION by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

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 a constituent of the MSCI Japan Empowering Women Index (WIN) for three consecutive years since 2020.
The inclusion of NIHON KOHDEN CORPORATION in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of NIHON KOHDEN CORPORATION by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

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.
Nihon Kohden has been rated as “Prime” in the Health Care Equipment & Supplies industry since 2021.