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- Initiatives for Reinforcing Corporate Foundation
- Communication with Shareholders and Investors
Here at Mitsubishi Chemical Holdings (MCHC), we make every effort to adequately and promptly disclose information to our shareholders, investors and other stakeholders, to ensure transparency, to promote a clearer understanding of our corporate activities, and consequently to earn the public’s trust.
We determine shareholder dividends based on our consolidated performance. From a broader perspective however, we also try to ensure stable dividends over the medium to long term and continue to secure sufficient internal reserves in order to fund the future development of the MCHC Group.
Based on this policy, we paid out year-end dividends at the rate of ¥5 per share in fiscal 2010. Combined with interim dividends (¥5 per share), total dividends for fiscal 2010 came to ¥10 per share. Here at MCHC, we have adopted a basic practice of distributing dividends from retained earnings twice a year, once halfway through the year and once again at the end of the fiscal year. Whereas the Board of Directors determines interim dividends, year-end dividends are decided via a Shareholders’ Meeting.
In light of current conditions, we intend to use internal reserves to reduce interest-bearing liabilities, in order to strengthen our underlying foundations, and to finance priority capital investment, other loans and investments, and R&D, in line with the basic strategy set out under APTSIS 15, our new mid-term management plan that came into effect in April this year.
【 Net Income and Dividends per Share 】
The first step towards earning the public’s trust is to ensure that information is adequately disclosed to shareholders, investors and all of our other stakeholders as and when necessary.
With that in mind, we not only disclose information relating to management, our business strategies and performance, as required by the Financial Instruments and Exchange Act and other legislation, but we also publish accurate, up-to-date information on product defects, accidents and other matters that may not portray the MCHC Group in a positive light. We are determined to be open to the public in everything we do.
IR NAVI shareholder newsletters and our annual report
As part of our efforts to disclose information to our shareholders and investors here at MCHC, we produce regular publications outlining our business strategies and performance in simple terms, including our IR NAVI biannual shareholder newsletter and annual reports.
Investor Center section of the website
We also post press releases on the MCHC website as soon as they are released, and have established an “Investor Center” section to enable investors to access information whenever they like, including documents from results briefings, shareholder newsletters, annual reports, information on MCHC shares and our calendar of IR events.
To enable as many of our shareholders as possible to exercise their voting rights and attend our Shareholder’s meetings, we avoid holding Shareholders’ Meetings on peak days when lots of other companies are holding theirs. We also send out notices to convene Shareholders’ Meetings as early as possible, announce meetings via the MCHC website, produce English language documents, and have introduced an electronic voting system.
More than 800 shareholders attended our 6th Shareholders’ Meeting on June 24, 2011.
We have been holding briefing sessions for individual investors since fiscal 2008, in order to give investors a more in-depth understanding of our operations and performance here at MCHC. Sessions in fiscal 2009 raised numerous questions regarding business development and our plans for the future, and offered an invaluable opportunity to communicate with investors. We also had opportunities to make presentations in seminars organized by securities companies during fiscal 2009.
In fiscal 2010, opportunities for providing information to as many individual investors as possible were created by holding briefing sessions for individual investors at the Chemistry Plaza in the head office building and by attending more seminars organized by securities companies.
We actively engage in dialog with institutional investors and analysts on a continual basis here at MCHC. We make the most of communication technology for instance, by holding online question and answer sessions for institutional investors and analysts at the time of announcement of our quarterly results.
In addition to Analyst Meetings, which provide more detailed explanations about our management plans, main operations, and other specific strategies, we also organize tours of our production facilities around the country, to enable investors and analysts to see our operations for themselves and gain a better understanding of what we do here at the MCHC Group. To keep overseas shareholders and institutional investors informed meanwhile, our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) regularly travel to other countries to provide details about our management strategies and performance.
Analyst Meeting
In addition to creating more opportunities to improve communication, our CEO and CFO went to visit overseas institutional investors in fiscal 2010.
At the request of an investment institution signed up to the UN Principles for Responsible Investment (PRI), in June 2011 we took part in a workshop where we explained the thinking behind KAITEKI value and our efforts to introduce and use the Management of SUSTAINABILITY (MOS) indexes to put KAITEKI into practice.
【 Shareholder Distribution (as of March 31, 2011)】
Investors are increasingly engaging in socially responsible investment (SRI), taking into account environmental and social initiatives and focusing their attention on socially responsible companies.
As of June 2011, MCHC is a component of the FTSE4Good Index Series, the Dow Jones Sustainability Asia Pacific Index 2010, and the Morningstar Socially Responsible Investment Index.
