With SDGs and ESG at the core of management, NPHD places Maximization of Shareholder Value (“MSV”) as its paramount mission. MSV is predicated on fulfillment of our duties to customers, employees, suppliers and society.
While maintaining financial discipline of pursuing optimal capital structure with balanced leverage and allowing one-time higher-leverage for strategically important M&A, NPHD places higher priority to investments for future growth thus focusing on providing higher Total Shareholder Return (TSR) through the accretion of basic earnings per share (ESP).
As an effort to increase TSR, NPHD has set out a policy to pay dividends stably and continuously, taking comprehensively into account factors including the earnings trends, investment opportunities and dividend payout ratio. NPHD is aiming to maintain a dividend payout ratio of 30%.
Starting from FY2015, NPHD has determined the amount of dividends based on the dividend payout ratio on an IFRS basis.
NPHD issued new shares through a third-party allotment to the Wuthelam Group with the purpose of paying the consideration for the acquisitions of additional equity interests in its joint ventures with the Wuthelam Group and the Indonesia business operated by the Wuthelam Group, which were completed on January 25, 2021. The third-party allotment has enabled NPHD to capture in its consolidated accounts, the profits of the Asian JVs that were previously belonging to the Wuthelam Group as the non-controlling interest, and the profits of the new businesses which will fall within the scope of NPHD’s accounting consolidation including the Indonesia business, while maintaining the stability of its financial base. The acquisitions of the 100% ownership of NPHD’s Asian JVs with the Wuthelam Group and the Indonesia business operated by the Wuthelam Group are expected to increase earnings per share (EPS) and enable NPHD to optimize resource allocation by reducing the outflow of profits to other entities. Therefore, these acquisitions contribute to promoting the interests of the minority shareholders of NPHD. Taking these into consideration, the scale of dilution in the third-party allotment is deemed reasonable.
Trends in Dividends and Dividend Payout Ratio
|Annual dividend (yen)||35||40||42||45||45||45|
|Interim dividend （yen）||15||20||20||22||22||22|
|Dividend payout ratio（%）||Dividend payout ratio(IFRS basis) *||28||29||28||32||39||32|
|Dividend payout ratio||37||37||36||32||-||-|
※Figures for dividend payout ratio (IFRS basis) from FY2015 to FY2017 are calculated using dividend payout ratio (JGAAP basis) after adjustment for goodwill amortization.
Acquisition of Treasury Shares
NPHD did not undertake any acquisition of treasury shares in FY2020, except for acquisition under Article 155, Item 7 (acquisition of shares less than one unit) of the Companies Act.
Shareholder Benefit Program
Currently, we do not have a shareholder benefit program.