Response toward realizing management mindful of capital cost and stock price (Update)

Section Heading

This document presents an update on responses toward realizing management mindful of capital cost and stock price, outlining concrete strategies to achieve the long-term ROE target and improve the PBR by considering current ROE and PBR trends. Under the long-term vision “Bull-Dog Global Innovation 2032,” the policy is to enhance market evaluation through domestic and international business expansion, capital efficiency, and strengthened shareholder returns. The financial strategy includes growth investment of 5 billion yen, sale of policy-owned shares of 2 billion yen, improvements in company capital structure, and stronger shareholder returns. IR activities and governance strengthening will also be pursued, with a view to increasing the proportion of outside directors, the proportion of female directors, and increasing the number of audit committees, among other improvements to the framework.

Section 2 heading

As an implementation process, the financial strategy presents concrete efforts for 2026-2028. To realize the ROE targets, it cites execution of growth strategy investments, reduction of policy-owned shares, effective use of headquarters and site assets, and thorough shareholder returns, together with expanded IR activities and strengthened governance to deepen trust with the market. Going forward, plans include semi-annual earnings briefing, investor dialogue, expansion of shareholder benefit options, achieving targets for outside director ratio and female director ratio, and increasing the number of audit committees.