Shareholder and Investor Engagement

Font Size

Shareholder and investor engagement

NPHD pursues MSV by building relationships of trust with shareholders through thorough and fair disclosure of information to shareholders in Japan and overseas and by reducing information asymmetry and holding down capital costs. NPHD also strives to understand the structure of its shareholders in order to engage in constructive dialogue with them, and pays close attention to the prevention of leaks of insider information when engaging in dialogue.

We have appointed the Representative Executive Officer & Co-President and general managers of the Investor Relations Department and General Affairs Department as the dialogue contacts with shareholders. Also, we provide opportunities for engagement with Independent Directors. We give the Board of Directors feedback of opinions and suggestions obtained from dialogues with shareholders as appropriate and reflect them on corporate management. Opinions from the Directors including Independent Directors are also utilized in dialogues with shareholders.

In FY2020, the Company strengthened communication with investors and held IR interviews with 346 companies (an increase of 23.1% from the previous year) to promote the understanding of the paint market and the Company’s strategies. As an IR event, the Company held the "Briefing for Institutional Investors" in February, in which the management team explained the growth potential of the paint market, our strengths and future direction, etc. In August, the Company held an investor presentation meeting on the acquisition of 100% ownership of the Asian JVs, which was our long-term priority, and explained the strategic significance, benefits, and financial impact. In addition, we are promoting proactive disclosure of information through measures including expanding and reinforcing the Integrated Report and IR website.

Number of IR meetings held

 
FY2019
FY2020
Meeting with domestic investors
FY2019
140 companies
FY2020
136 companies
Meeting with overseas investors
FY2019
141 companies
FY2020
210 companies
Of which, meetings with ESG investors
(in Japan and overseas)
FY2019
3 companies
FY2020
9 companies
Total
FY2019
281 companies
FY2020
346 companies

IR events held


FY2019
FY2020
Teleconference on financial results
FY2019
4 times
FY2020
4 times
Briefing for institutional investors
FY2019
0 time
FY2020
1 time
Briefing on M&A
FY2019
2 times
FY2020
1 time
Briefing for individual investors
FY2019
3 times
FY2020
1 time
Total
FY2019
9 times
FY2020
7 times

Outcomes of shareholder and investor engagement

Feedback from shareholders and investors

Regarding operations
  1. When will NPHD carry out the acquisition of 100% ownership of the Asian JVs? The transaction will have a significant impact on your valuation, so I hope that it will be achieved at an early date.
  2. We would like to have an interview with the local management about the Chinese market and businesses.
  3. The operating profit in the Japan segment includes headquarters expenses, which makes it difficult to grasp the profitability only of the Japan segment. Please disclose the breakdown of the operating profit in the Japan segment.
  4. Please disclose your investment policies and financial disciplines for your M&A strategy.
  5. We would like you to disclose long-term financial targets as well in the Medium-Term Plan.
Regarding ESG
  1. We expect NPHD to properly respond to MSCI and other ESG ratings because many investors place emphasis on these ratings.
  2. We are concerned about your governance structure. Please explain the actual situation and effectiveness of your corporate governance in details.
Regarding major shareholder
(the Wuthelam Group)
  1. Please communicate periodically the ideas and thoughts of the Wuthelam Group as the major shareholder.
Down triangle arrow

Concrete measures taken based on shareholder and investor engagement

Regarding operations
  1. Under the new management structure launched in FY2020, we reinforced our corporate governance structure to ensure the protection of the interests of minority shareholders, and enhanced smooth communication with the Wuthelam Group, resulting in quick agreement on the acquisition of 100% ownership of the Asian JVs (August 2020).
  2. We were unable to hold investor briefing due to COVID-19. However, we provided explanations on market analyses and business strategies given by the local management in China and other regions in the Integrated Report (September 2020).
  3. We excluded the headquarters expenses from the operating profit in the Japan segment and presented as adjustments in order to clearly show the performance in the Japan segment. We disclosed the adjustment figures for the past year (on a quarterly basis) (May 2021).
  4. We disclosed basic M&A policies including target areas, our advantages, and financial disciplines, although it is difficult to disclose details of M&A strategies considering the possible impact on target companies and competitors. We also disclosed the track record of acquisition of small-scale companies to show progress in the M&A strategy (March 2021).
  5. In the New Medium-Term Plan (FY2021-2023), we set and disclosed financial targets that exceeded those of overseas competitors as a long-term goal, in addition to the medium-term targets for the existing businesses excluding M&A (March 2021).
Regarding ESG
  1. In FY2020, we established the “ESG Promotion Department” and the “ESG Committee,” grasped and analyzed the external evaluation to collect information and responded to questions. As a result, our MSCI rating was upgraded from “BBB” to “A” (April 2020).
  2. We shifted to a Company with a Three Committees structure and raised the ratio of Outside Directors to 67% (at that time) in order to protect the interests of minority shareholders (March 2020). In addition, the Company expanded and reinforced the governance disclosure and information disclosure by taking steps including disclosing “Discussions by the Board of Directors” in the Integrated Report (September 2020).
Regarding major shareholder
(the Wuthelam Group)
  1. We provided the history of partnership with the Wuthelam Group that started in 1962 and the profile of the representative of the group in the Integrated Report in order to facilitate the understanding of our relationship with the Wuthelam Group and its corporate profile (September 2020). Additionally, we explained the background to and some details on the agreement with the Wuthelam Group on the acquisition of 100% ownership of the Asian JVs at the investor presentation in August 2020, and provided the message from the representative of the Wuthelam Group in the Integrated Report (September 2020).
This website requires some functions similar to those of cookies.
If you allow our cookies, we use them to collect statistical data about your visit to improve our service. Videos are also presented by using YouTube. Cookies and other means are used only when you opt to watch videos. If you do not allow our cookies, only technical cookies are used.
Click/tap here for details.