Relationship with Shareholders and Investors
Our own mission is to maintain sustainable growth to increase corporate value and contribute to society.
Moreover, it is essential to gain the understanding of our shareholders and develop mutual trust.
We are endeavoring to make active communications by disclosing information in a timely and appropriate manner.
Timely and Appropriate Disclosure of Business and Financial Information
Yamada Denki has disclosed IR information, such as earnings data and press releases, as well as information on the development of new products or the commencement of new initiatives, on our website to shareholders and investors, thereby endeavoring to deepen their understanding of the company.
As the foreign ownership has been rather high, we have a number of opportunities to explain our business performance and management policy from the global perspective. We explain our business strategies and CSR activities at meetings with investors and analysts held more than 200 times annually in Japan and overseas.
We specifically hold an annual briefing session for investors. The session has been held for 13 consecutive years in a different major city of Japan. To deepen investors’ understanding, our top management officer explains our management philosophy and management policy, as well as the current status of business performance and future business plans.
※Due to the issuance of Euro-Yen CB to be matured in 2019, contact with investors was significantly limited for nearly two months. Therefore, the number of meetings decreased.
Basic Policy for Distribution of Profits
Regarding the appropriation of profits, our primary policy is to pay dividends to shareholders in a stable and consistent manner.
We consider it essential to build up internal reserves in order to achieve stable growth through enhancing future corporate value and strengthening the management base and also to increase and maintain market share in the industry, while improving the efficiency of capital with the aim of achieving sustainable growth into the future. We set the goal of a consolidated payout ratio of at least 30% and decide the amount of dividends in consideration of financial conditions and business performance of the relevant term.
We will utilize the internal reserves in an effective manner for its sustainable growth, for strengthening various solution businesses to broaden and deepen its business range, with the aim of responding to the rapidly changing environment of the distribution market, including the declining birth rate and the aging of society, population decrease, and development of the Internet society, and for improving the efficiency of existing stores and their network, enhancing and maintaining competitiveness, securing working staff, and strengthening financial structure, as well as for distributing profits to various stakeholders.
We will endeavor to secure dividends continuously based on stable growth in profits.
Economic Relationships with Major Stakeholders
The value of economic relationships with major stakeholders was calculated as described below. For details, please refer to earnings reports and financial statements.
※ A 1-for-10 share split was conducted on October 1, 2013. Amounts for fiscal 2011 and fiscal 2012 are those taking into account the share split.
Improvement of the Shareholder Special Benefit Plan
We have established a shareholder special benefit plan in appreciation for the support of existing shareholders and with the aim of enhancing the advantage of investing in our shares and increasing long-term shareholders. The plan offers benefits in two ways, i.e., depending on the number of shares held and on the length of period of holding shares. Complimentary tickets are provided twice a year to shareholders as of the end of March and the end of September.
The future course of the economy remained uncertain in fiscal 2016, due to fluctuations in financial markets such as stock prices and exchange rates since the beginning of 2016 and growing risks of economic slowdown in China and other emerging countries. However, it is anticipated that financial markets will gradually stabilize.
In the meantime, the employment environment has been improved domestically and wages are exhibiting an increasing trend, due to which personal consumption will also increase. Corporate performance is expected to generally improve continuously backed by declines in resource prices and steady increases in capital investment. Additionally, markets related to the Olympic Games in Rio de Janeiro are also expected to gain steam and the Japanese economy as a whole will continue to recover moderately.
■Home Appliance Distribution Market
The home appliance distribution market, to which the Yamada Denki Group belongs, is expected to be steady thanks to such robust economic conditions and demand increase for audiovisual equipment associated with the Olympic Games, steady replacement purchases of home appliances and (limited) rush demand prior to another consumption tax increase.
■Yamada Denki’s Efforts
Under such market environment, we will endeavor to broaden and deepen our business range as a specialist electrical goods merchandiser by shifting the focus from quantity to quality to offer proposals not only on products but also on servicing based on its original IoT initiatives founded on its strengths of having the largest store network in Japan. At the same time, we will create new businesses for improving customer satisfaction, continue the structural reform in various sections, and strengthen existing businesses. In this manner, we will try hard to further enhance profitability and corporate value through the structural reform and other initiatives in the medium-term and long-term perspectives to achieve better gross profit rates and reduction of selling, general and administrative expenses. As a leading company in the home appliance distribution industry, we will continue our efforts to build a relationship of trust with diverse stakeholders, and promote CSR-focused management by making the most of synergy among the Yamada Denki Group, aiming to grow together with society by enhancing social value.