Responsibility to Shareholders and Investors
The DENSO Group Declaration of Corporate Behavior describes the responsibility DENSO has to its shareholders and investors to increase corporate value through stable, long-term growth and to improve the transparency of management through the timely and appropriate disclosure of business and financial information as well as through dialogues. Based on this policy, the DENSO Group is disseminating corporate information, such as management strategy and financial information, with an emphasis on timeliness, fairness, accuracy, and sustainability.
In addition, the Group is undertaking investor relations (IR) activities to realize smooth, interactive communication through general shareholders meetings and via its corporate website.
The opinions of shareholders and other investors that the Group obtains through this kind of communication are conveyed regularly at the Board of Directors’ meetings and leveraged in the Group’s management.
Information Disclosure and IR Activities
In order to ensure fairness and transparency in the disclosure of IR information, DENSO strives not only to observe all legal disclosure standards but also to publish information domestically and overseas without time lags by creating Japanese and English versions of reports at the same time.
DENSO also releases financial information quarterly via its website and holds financial results and technical briefings, as well as plant tours, for institutional investors and financial analysts with the purpose of promoting investment opportunities. DENSO is working to further enhance information disclosure by providing streaming video of the General Meeting of Shareholders held each June on its website and inviting shareholders to a plant tour after the meeting.
Content of IR activities
|Domestic institutional investors and securities analysts||Quarterly financial results briefing, “One-on-one meeting”/ individual interviews, small meetings, publication of annual report, ★technical briefings, ★plant tours, and ★IR conferences at major motor shows|
|Overseas institutional investors||“One-on-one meeting”/ individual interviews, telephone conferences, participation in conferences organized by securities companies, and publication of annual report|
|Individual investors and shareholders||Plant tour (after General Meeting of Shareholders) as well as publication of business reports and Notice of Shareholders’ Meeting announcements|
★symbol indicates initiatives undertaken during fiscal 2016 in addition to regular IR activities
Policy on Shareholders’ Returns and Status of Shares
In addition to carrying out capital investment, R&D, and M&A to achieve sustainable business growth and enhance its corporate value, DENSO issues a stable, long-term dividend while giving consideration to consolidated business performance, payout ratio, and dividend amount. The Company will also repurchase treasury stock after assessing its financial position and the market environment.
In fiscal 2016, based on business performance and the operating environment to date, DENSO paid annual cash dividends per share of ¥120, an increase of ¥10 per share compared with the previous fiscal year. Going forward, the Company will strive to improve its corporate value and return an even greater amount of profits to its shareholders.
Breakdown of shareholders
Evaluation by Outside Institutions
The DENSO Group is highly regarded by outside institutions when judged by the socially responsible investment (SRI) standard, reflecting its successive inclusion in the Ethibel Sustainability Index,* an important European indicator, and in Japan’s Morningstar Socially Responsible Investment Index.
- * Ethibel Sustainability Index (ESI): A Belgian non-profit organization (NPO), Forum ETHIBEL, evaluates the S&P Global 1,500 companies in terms of sustainability. About 200 companies are selected for inclusion in the ESI Excellence Global indices.
While taking into consideration the needs and expectations of our shareholders and other investors as well as society at large, we will continue to raise the level of our activities geared toward enhancing information disclosure with a focus on the disclosure of business and financial information and the creation of opportunities for dialogue.