Relationship with Shareholders and Investors

Basic Policy on Distribution of Profits and Dividends

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 maintain stable and continuous dividend payments while retaining necessary reserves for future business expansion. Retained earnings are used in R&D investments, capital investments, M&A and development of human resources. The Company regards cash dividends as the base of the shareholder return and sets a target consolidated dividend payout ratio of 30% or more. Share buyback is considered in a flexible manner, taking into account comprehensively its future business deployment, investment plan, retained earnings, and stock price level.

Policy on Information Disclosure

Nihon Kohden has established the Information Disclosure Policy in order to maintain appropriate, timely and fair information disclosure and has operated the information disclosure strcuture in accordance with the Information Disclosure Rules.
The Nihon Kohden Corporate Charter of Conduct requires that we achieve highly transparent management by properly and fairly disclosing corporate information in order to communicate not only with shareholders, but with society as a whole. With this spirit in mind, the Nihon Kohden discloses information in a timely, appropriate, fair and easy-to-understand manner. We also seek to gain appropriate evaluations of the company based on the understanding and trust of all stakeholders, including customers, shareholders, and local communities.

Organizational Structures of IR

The Company has appointed president, director in charge of Corporate Strategy Department, and general manager of Corporate Strategy Department 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. Corporate Strategy Department, 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

Corporate Strategy Department, 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

The Company holds meetings for individual investors, which speakers are general manager of corporate strategy department or a person in charge of IR, and participates in IR Festa in order to give investors a more in-depth understanding of our operations and strategies. There were 10 meetings in FY2016. The Company endeavors to enhance information disclosure by explaining company overview, financial results, and company history on its web site for individual investors.
Exhibition of products at IR Festa and Meeting with Individual Investors
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 endeavors easy-to-understand presentation by using a projector in the Annual Shareholders Meeting. Nihon Kohden’s general shareholders’ meeting is held on a date that does not conflict with other companies’ general shareholders’ meetings to ensure as many shareholders can attend as possible. For overseas shareholders, convocation notices, results of exercising voting rights and notices of resolution are prepared in English and posted to our website.
We displayed our products and explained their features at the shareholders' meeting with the booth near the venue.

Dialogue with Institutional Investors

President, general manager of Corporate Strategy Department, 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 Department, in the 1st quarter and 3rd quarter. Furthermore, a meeting for mid-term business plan with president and a tour of Advanced Technology Center were held in May 2017 aiming at realizing constructive dialogue.

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, medium-term management plan, businesses and products is also published to broaden understanding in Nihon Kohden.