NIKKON Holdings Co.,Ltd.
Notice Regarding Changes to Shareholder Return Policy (Revision of Dividend Policy and Update of Share Buyback Policy)
Announced a policy to raise the dividend policy indicator DOE from 4% to 6%, expand the total share buyback amount to 35 billion yen over three years, aiming for proactive profit distribution.
Key Figures
- DOE (Dividend on Equity): 4% (FY ending March 2026) → 6% (from FY ending March 2027)
- Total Share Buyback Amount (over 3 years): 35 billion yen (during 14th Medium-Term Management Plan period)
- WACC level: Approximately 5.0% (current)
AI要約
Overview of Capital Policy
Nippon Holdings Co., Ltd. has revised its shareholder return policy aiming for long-term and stable dividends and maximization of capital efficiency. Specifically, the dividend policy indicator DOE (dividend on equity) will be raised from 4% in the fiscal year ending March 2026 to 6% from the fiscal year ending March 2027 onward. Regarding share buybacks, of the plan announced in April 2025 to acquire 40 billion yen worth of treasury stock over four years until fiscal year 2029, 15 billion yen has already been executed, and an additional 10 billion yen will be added to the remaining 25 billion yen, making a total of 35 billion yen to be acquired during the 14th Medium-Term Management Plan period (April 1, 2026 to March 31, 2029).
Strengthening Shareholder Returns and Future Policy
Considering the current situation where WACC (cost of capital) is approximately 5.0% and ROIC (return on invested capital) is about 4.5%, the company aims to actively use debt and maintain an appropriate capital level to support growth investments such as capital expenditures and M&A. The company plans to maximize added value generated by the spread between ROIC and WACC, and will proactively promote shareholder returns by continuing flexible share buybacks. For details, please refer to the 'Notice Regarding Formulation of the 14th Medium-Term Management Plan' disclosed on the same day.
