February 12, 2025
To whom it may concern
Company Name: SHIZUOKA GAS CO., LTD.
Representative：Matsumoto Yoshitake
Representative Director and President
(Code Number: 9543, Tokyo Stock Exchange)
Contact: Yamazaki Junya
Accounting and Finance Manager,
Management Planning Department
(TEL: +81-54-284-4141)
Notice Regarding Action to Implement Management that is
Conscious of Cost of Capital and Stock Price
Shizuoka Gas Co., Ltd. (the "Company") hereby announces that, aiming for sustainable growth of the Company and its
group as well as mid-to-long-term improvement of corporate value, it has assessed and evaluated the current status of actions to implement management that is conscious of cost of capital and stock price, and has formulated policies and specific actions to be taken for improvement today.
For details, please refer to the attached "Action to Implement Management that is Conscious of Cost of Capital and Stock Price".
END
Action to Implement Management
that is Conscious of Cost of Capital
and Stock Price
SHIZUOKA GAS CO.,LTD.
Action to Implement Management that is Conscious of Cost of Capital and Stock Price①
（１）Current situation analysis
- Our group is steadily promoting business expansion with a focus on energy, while the PBR stands at 0.72 times, remaining below the level of 1.
- With regard to the two indicators (PER and ROE) that make up PBR, the PER is lower than the average of 17.0 times the TSE Prime (December 2024) and the ROE is only 7.8%, and we believe that we need to work to improve them．
- While the Group's capital adequacy ratio is 69.4%, which is a strong financial base, we recognize that financial leverage is at a low level. In order to improve ROE, we believe that it is necessary to optimize the financial balance of the Group in addition to improving ROA.
Stock price
¥1,070
End of December 2024
PBR（Price Book-value Ratio）
0.72 times
Market capitalization
Equity
BPS（Book-value Per Share）
¥1,480
Equity
Outstanding shares
PER（Price Earnings Ratio）
9.3 times
Market capitalization
Profit attributable to owners of
parent
ROE（Return On Equity）
7.8%
Profit attributable to owners of
parent
Equity
ROA（Return on Assets）
5.4%
Profit attributable to owners of
parent
Total assets
Equity Ratio
69.4%
Equity
Total assets 1
Action to Implement Management that is Conscious of Cost of Capital and Stock Price②
（２）Direction towards enhancing corporate value
- In order to improve PBR and increase corporate value, our group will further promote initiatives to improve efficiency and profitability, enhance dialogue with the market, and meet the expectations of shareholders and investors.
- Specifically, we will actively expand our business domains to grow our business and increase our earnings, as well as improve ROE by improving investment efficiency and optimizing our financial balance.
- In addition, we will steadily implement aggressive investments for future growth and present our growth strategy to shareholders and investors in order to improve our PER ratio.
PBR | = | ROE | × | PER | |||
（Price Book-value Ratio） | （Return On Equity） | （Price Earnings Ratio） | |||||
Acction | |||||||
Issues to be addressed | |||||||
① Achievement of the 2030 Vision （※） | |||||||
ROE | Growth of Group Businesses | ||||||
②Implementation of proactive investments for future | |||||||
Optimization of financial | |||||||
growth | |||||||
balance | |||||||
③Improvement of ROA and capital efficiency | |||||||
Improvement of capital | |||||||
efficiency | ④Enhancement of | dialogue with shareholders and investors | |||||
PER | Valuation from the stock | ||||||
market | ⑤Enhancement of shareholder returns | ||||||
※ 2030 Vision ：https://ir.shizuokagas.co.jp/en/company/Strategy.html | 2 |
Action to Implement Management that is Conscious of Cost of Capital and Stock Price③
（３）Initiatives aimed at enhancing corporate value
① Achievement of the 2030 Vision
- We will steadily execute our business plan and achieve our 2030 vision of 13.0 billion yen in consolidated ordinary profit at the earliest possible time.
②Implementation of proactive investments for future growth
- We will actively invest in expanding our business areas and growth, while also aiming to optimize our financial balance.
③Improvement of ROA and capital efficiency
- We will set ROIC for each business and promote progress management to improve capital efficiency and profitability.
- We will reduce our policy-held shares, dispose of idle assets, and utilize the proceeds from sales for growth Investments.
④Enhancement of dialogue with shareholders and investors
- By actively disseminating information, including non-financial information, and engaging in dialogue, we will utilize the opinions of shareholders and investors in our management.
⑤Enhancement of shareholder returns
・We will enhance shareholder returns such as dividends, taking into account requests from the capital markets and our capital structure.
■Improvement of profitability | ■ Improvement of market valuation | |||
and efficiency. | ROE above 8% | Improvement of PER | ||
・2030 Vistion | ||||
Early achievement | ||||
・Proactive investment for growth | ・Enrichment of | ・Enhancement of | ||
・Improved financial balance | dialogue opportunities | shareholder returns | ||
・Proactive information | (Progressive dividends・ | 3 | ||
・Improvement of capital efficiency | ||||
dissemination | Target payout ratio of 30%) | |||