Japan Electric Technology <1723> announced on the 5th a change in the basic policy of the capital policy disclosed on November 2, 2022.
Regarding the basic policy of the capital policy after the change, the company is implementing the capital policy while balancing "growth investment," "shareholder returns," and "financial soundness" to enhance medium- to long-term corporate value. It aims to achieve a consolidated ROE of 12.5% (pre-change: consolidated ROE of 10% or more) as a target management indicator, and aims to achieve aggressive growth investment and shareholder returns taking into account the capital cost. As for shareholder returns, it will be based on progressive dividends with a DOE (consolidated shareholder equity dividend rate) of 5% (pre-change: 4%) as a standard unless there are events that have a significant impact on performance, and it will also implement flexible share buybacks.
Regarding the reason for the change, the company decided to make the change with the aim of improving capital efficiency and further enhancing shareholder returns. It will be applied from the fiscal year ending March 2025.
