Governance

• Corporate Governance
• Compliance
• Risk Management
• Communication with Shareholders and Investors

We strives to achieve sustainable growth and enhance corporate value in the medium to long term through highly transparent and reliable disclosure as well as sincere communication.

For the Company, timely and appropriate disclosure to shareholders and investors serves to ensure transparent and fair decision making as well as effective corporate governance functions. We also believe that it contributes to increasing corporate value by promoting public understanding and an appropriate market assessment of the Company. Therefore, we not only undertake disclosure required by laws and regulations, but also publish information proactively through our website and other channels, working in this way to create a system for highly transparent and reliable disclosure.
To ensure that our disclosed information can be easily understood and serve as a useful basis for investment decisions, we adopt reader-friendly language and formats in our materials, and we are improving both financial and non-financial information. We also provide an English language version where the information is considered likely to be of particular importance to non-Japanese shareholders and investors.

Disclosure Policy

In the dialogue, we appoint responders in accordance with the policies and characteristics of investors and the nature of the dialogue, and the president, executive officers in charge of investor relations, and other senior executives will have the opportunity to communicate directly with investors and shareholders in Japan and overseas. We create opportunities for our executive officers, including the President and the officer in charge of investor relations, to engage in direct dialogue with investors and shareholders both in Japan and overseas.
In 2023, we have worked to create opportunities for dialogue between members of the Board of Directors, including outside directors, and institutional shareholders on the topic of how the Company is viewed by the stock market. We also held interviews between outside directors and institutional shareholders.
We are actively committed to these engagement activities as a way to improve our medium- to long-term corporate value and achieve sustainable growth. For example, we endeavor to build understanding through our communication with investors by thoroughly explaining our thoughts, while any feedback from investors is discussed by members of the Board of Directors.

We consider return of profits to shareholders as one of the most important management issues. Based on the recognition that enhancement of corporate value through investments for growth is in the common interest of our shareholders, while prioritizing business investment that will lead to sustainable enhancement of corporate value, our basic policy is to distribute profit to shareholders according to profit growth, with a target total payout ratio to Profit attributable to owners of parent before amortization of goodwill 40%.

Shareholder Returns / Dividends

IR Library

The status of fiscal 2022 investor relations activities is as follows.
For the convenience of analysts and investors, we are enhancing our communications by using the Internet for interviews and briefings.
We will continue to use opinions and requests from shareholders and investors as references to improve our investor relations activities, and will aim to enhance our corporate value in the medium to long term.

Activity	Times	Details
Financial results briefings for analysts and institutional investors	Four	Briefings are provided on a quarterly basis. The President presents the full-year financial results, while executive officers deliver quarterly financial results Materials relating to our financial results, including earnings releases, presentation materials, Q&A, and videos, are posted on our website
Interviews with analysts and institutional investors (interviews hosted by the President and other executive officers)	262 （39）	Interviews with analysts and institutional investors in Japan and overseas, meetings at conferences, etc.
Corporate briefings for individual investors	Two	Online corporate briefings for individual investors, explanatory videos posted on our website
Showroom tours for shareholders	One	Shareholders were able to tour our facilities after the Annual General Meeting of Shareholders, which was held at our headquarters and Tochigi Technology Center in June 2023. The event also included a technology display

Opinions and evaluations from shareholders and investors are widely reported within the Company, including the senior executives. This process allows us to utilize knowledge obtained from capital markets in our management and business activities.
We aim to enhance our corporate value through sustainable growth by utilizing this internal feedback.

Activity	Target audience	Frequency	Details
IR activity report to the Board of Executive Officers	All executive officers	Monthly	Sharing of insights relating to the improvement of management processes and corporate value based on knowledge gained from capital markets, including insights from analysts, investor feedback, and trends in stock prices and valuations
Analyst report summary	All executive officers Relevant divisions	As required	Sharing of summaries of analyst reports via email, etc.
Financial results announcement and briefing report	All employees	After announcement of financial results	Sharing of summaries of financial results, investor points of interest, and evaluations of Dexerials via email

We are continually enhancing the content of our Integrated Report by holding individual meetings with institutional investors, both in Japan and overseas, to discuss the issues and aspects of the report that require improvement.
We will continue our efforts to enhance our disclosure activities and improve our corporate value through constructive dialogue with our shareholders and investors.

• Sustainability Management

• Environmental Measures

• Relationships with Society

• Sustainability TOP