(1) Facility upgrades Environmental equipmentUpgrade facilities of core businesses and install equipment for reducing environmental burdenForecast operatingcash ow ¥164billion¥57billion(2) Investment in growthBoost production capacity for products targeting growing markets while aiming for high returns on investment¥15billion(3) Strategic investments M&A and capital tie-upsContinue pursuing mergers and acquisitions in the automotive and electronics industries to capitalize on future growth opportunities(4) Debt reductionRepay debt to increase the Company’s ability to invest in the future¥37billion(5) Payment of stable dividends(6) Share buybacksSource of future value2020 to 2022:over three years from Allocation of operating cash owContinuing to pay stable dividends during the downturnManagement’s renewed commitment to sustainabilitybillion yen is earmarked for expanding production facilities and product development with an eye toward future growth. In addition, 37 billion yen will be used to repay debt as we aim to reduce the net debt-to-equity ratio. That will lead to a sounder financial structure, which we believe is important for opening up more options for investment in the future.While aiming for a dividend payout ratio of 30%, management places utmost importance on ensuring the continuous payment of stable dividends as a means to return profits to shareholders. Although the Group’s operating environment in 2020 is forecast to be more difficult than the previous year, we expect financial results to recover from 2021 and begin growing again. Based on that assumption, management plans to maintain the annual dividend at 48 yen per share, the same amount paid in 2019. Management will also consider conducting share buybacks at opportune times depending on the operating environment. Under our previous medium-term management plan, T-2021, we placed importance on establishing an environmental, social, and governance (ESG) management system and improving the Company’s information disclosure. Accordingly, management specified ESG-related issues and key tasks for the entire Tokai Carbon Group in November 2019, and began disclosing related information and non-financial data on its English website. Under the T-2022 plan, our group-wide ESG initiatives have entered a new stage, as the entire Group works to collectively accomplish the targets of the plan’s key performance indicators. Moreover, the Group has initiated measures for improving the sustainability of its operations and for helping achieve some of the United Nations’ Sustainability Development Goals (SDGs).In principle, funds needed for investment in growth will be provided by cash on hand and operating cash ow19TOKAI CARBON ANNUAL REPORT 2019Vision and StrategyBusiness ReportSustainability ReportData Section
元のページ ../index.html#19