Financial Capital
Financial Capital (financial position)
Sound financial capital is a key management resource that supports sustainable growth. The ratio of equity attributable to owners of parent, which represents the shareholders’ equity ratio, was 46.2% at the end of fiscal 2021. The rating provided by Japan Credit Rating Agency, Ltd. was “A+” as of January 18, 2022.
Looking ahead, we intend to continuously execute capital expenditure to increase our production capacity and thus grow overseas sales. In addition, we aim to simultaneously secure corporate growth, a sufficient level of liquidity and a more robust financial position. With this in mind, we have set a financial target of reducing the D/E ratio to 0.5 times or less by the end of fiscal 2025 under the Midterm Plan announced on February 13, 2020.
A Message from the Executive Director in Charge of Finance:Toward Providing Appealing Products at Best Cost
Naoki OkawaDirector and Senior Executive Officer
- Midterm Plan Progress & Remaining Issues
- Toward Achieving Our Midterm Plan Target: D/E Ratio < 0.5 times
- Cash Flow Generation and Captial Expenditure
- Policy on Returns to Shareholders
A Message from the Executive Director in Charge of Finance (PDF 201KB)
Financial Position
Total assets at the end of fiscal 2021 were ¥1,086.1 billion, an increase of ¥111.3 billion from the end of the previous fiscal year. Current assets increased ¥96.4 billion due to increases in inventories and other current assets.
Non-current assets increased by ¥14.9 billion largely due to an increase in assets related to retirement benefits and a rise in other financial assets resulting from the mark-to-market valuation of investment securities.
Total liabilities at the end of fiscal 2021 were ¥572.6 billion yen, an increase of ¥64.9 billion from the end of the previous fiscal year, and the balance of interest-bearing debt was ¥296.8 billion, an increase of ¥20 billion from the end of the previous fiscal year.
Total equity at the end of the period was ¥513.5 billion, of which equity attributable to owners of the parent was ¥501.5 billion, the ratio of equity attributable to owners of the parent was 46.2%, and equity attributable to owners of the parent per share was ¥1,907.03.
Total Assets / Net Assets, Total Equity
Our Stance on Shareholder Returns
We consider the return of gains to shareholders to be a matter deserving of the utmost priority. Accordingly, our basic policy is to ensure a long-term, stable stream of shareholder returns based on comprehensive consideration of dividend payout ratios, performance prospects, retained earnings levels, and other such indicators on a consolidated basis.
We also fully intend to utilize our retained earnings as a means of securing funds for capital expenditures, R&D, and other forward-looking investments with the aim of expanding our group’s earnings base well into the future.
As for the year-end dividend for fiscal 2021, we decided to pay a year-end dividend ¥30 per share, which, together with the interim dividend of ¥25 per share already paid, brings the annual dividend to ¥55 per share. Looking ahead, we will strive to ensure stable shareholder returns throughout our business management and operations.