Our Policy for Management Conscious of Cost of Capital and Stock Price
Basic Policy
- Continue to increase ROE above cost of capital over the medium to long term to achieve sustainable growth in corporate value.
Cost of Capital
- The cost of capital is determined based on CAPM-based estimates.
-CAPM as of the end of December 2024 is estimated to be roughly 7%, and conservatively assumed to be 8% in consideration of global investor expectations.
ROE
- The minimum target is 8% of the cost of capital, with the goal of achieving 9-10% in FY2027.
- Set targets by breaking down return on assets (ROA) and financial leverage, and reviews the results each fiscal year.
-The medium-term business plan assumes ROA of 4.4~4.9% and financial leverage of 2.04~2.06x.
PBR
- Monitor this indicator closely, which takes into account return on capital and expected growth rate, and carefully explain its growth story to investors.
Financial Discipline
- Maintain financial soundness by systematically utilizing interest-bearing debt as a means of financing investment for growth.
- Maintain an optimal capital structure with the current single A credit rating level.
Midterm Business Plan ROE Achievement Scenario
Based on our strong business foundation, aim to achieve ROE by implementing the basic axes and growth strategies set forth in the Midterm Business Plan.
