Management focused on capital efficiency and shareholders

「当社は、資本コストや株価を意識し、これらを改善すべく、資本収益性の向上、成長性の確保、非財務価値の向上の３つの取組みを推し進めております。」

「We have been working to improve capital efficiency with an awareness of ROE of 10% or higher from a medium- to long-term perspective, but we will raise the target level to 12% with the aim of expanding earnings in the Digital Society business, which we have positioned as a growth area.」

「The Group uses return on equity (ROE) as a key management indicator and promotes management focused on capital efficiency. It has adopted the closely related return on invested capital (NGK ROIC) as a management indicator,」

「As a management indicator contributing to enhancement of corporate value, we use NGK Value-added, which adds the costs of CO2 emissions, labor, research and development, and the ESG target achievement rate to operating income.」

「In addition, as a management indicator contributing to enhancement of corporate value, we have introduced NGK Value-added, which adds the costs of CO2 emissions, labor, research and development, and the ESG target achievement rate to operating income.」

「We have established a business portfolio policy to enhance corporate value and assess businesses along two axes: profitability measured using NGK ROIC and growth measured using the sales growth rate. In addition to considering the allocation of management resources to core businesses and business groups expected to grow in the future, for businesses categorized as low-growth and low-profitability, decisions on whether to continue operations will be discussed individually at internal strategy meetings and elsewhere, based not only on quantitative evaluations under annual and medium-term management plans but also on their long-term growth potential and profitability. The Board of Directors will oversee these as important matters concerning management.」

「We will add an ESG-based value-added assessment to ROIC as a key indicator, efficiently allocate management resources to expanding core businesses, reducing costs, research and development, and new businesses, and enhance corporate value.」

「The Group uses return on equity (ROE) as a key management indicator and has adopted the closely related return on invested capital (ROIC) as an internal management indicator, promoting management focused on capital efficiency. From a medium- to long-term perspective, we aim for ROE of 10% or higher and will pursue a capital policy aligned with changes in business risks so as to contribute to sustainable enhancement of corporate value.」

「From a medium- to long-term perspective, we will target ROE of 10% or higher and pursue a capital policy aligned with changes in business risks so as to contribute to sustainable enhancement of corporate value.」

「We will balance profitability above the cost of capital with financial soundness, while pursuing proactive shareholder returns from a medium- to long-term perspective. Using ROE, the dividend payout ratio and the shareholder equity dividend ratio as key indicators, we aim to maintain profit margins, capital turnover and financial leverage at sound levels aligned with our business strategy.」

「We will balance profitability above the cost of capital with financial soundness, while pursuing proactive shareholder returns from a medium- to long-term perspective.」

「Through these initiatives, the Group will achieve sustainable growth and enhance corporate value, while continuing management focused on capital efficiency and shareholders.」