2018_2025_step_e

22/22 Profit Plan and Capital Policy

The final topic is our profit plan and capital policy. We will first of all increase strategic investment and R&D spending, and on that basis, we will focus on ensuring industry-leading profitability. We will aim for an equity ratio of at least 50% and an ROE of 10%, with a target of 15% or higher. We will manage net cash with a minimum level of two months’ net sales. We will deliver balanced returns to all stakeholders and emphasize stable, continuous shareholder returns, mainly in the form of dividends. As shown in the table, we plan to maintain the current annual dividend of 144 yen per share for the three-year period from FYE 2019 to 2021 while flexibly conducting share repurchases in accordance with cash flow. The profit plan is shown in the table to the left. We plan to achieve total net sales of 10 trillion yen and operating income of 950 billion yen for the three-year period from FYE 2019 to 2021. We plan R&D expenses of 400 billion yen and capital expenditures of 450 billion yen. This concludes my explanation. Thank you very much.