Basic idea
Nidec wishes to achieve long-term high-level growth, profit, and stock prices to maximize the company's shareholder value, and satisfy its shareholders' mandate. To promote the understanding of our shareholders, investors, and other stakeholders with regards to our company, enable a fair assessment of it, and also make its business management more open and achieve full accountability, we will disclose information fairly, timely, and properly and engage in IR activities actively. Specifically, our company executives, headed by the President, will promote face-to-face communications with institutional investors, securities analysts, and individual investors through IR interviews, presentations, and other opportunities.
Major activities in FY2010
Awards received
The "Disclosure Award" by the Tokyo Stock Exchange
Nidec received the "16. Disclosure Award" given by the Tokyo Stock Exchange as part of the FY2010 Listed Companies Awards in February 2011. This award follows the 11. Disclosure Award of FY2005 (as the Tokyo Stock Exchange regulations make a company ineligible for the award for four years after a recognition, this second award constitutes in fact a consecutive citation).
This "Disclosure Award" is given to listed companies that are recognized as actively pursuing information disclosure. The reason why Nidec was awarded is given below.
Assessment points (excerpt from the Tokyo Stock Exchange press release)
"Disclosed information is very detailed, as seen in the note on the account settlement with its description of business performance for each business site as well as in the segment information that details the status for each group company. Further, regarding risks and similar, although only in item point form, possible risks are described exhaustively.
The IR page is easy to access from the homepage of the company, and messages from the top management towards shareholders and investors are also available."
Four consecutive years double-selection for "Excellence in Corporate Disclosure" by The Securities Analysts Association of Japan
In October 2010, Nidec was for the fourth year in a row ranked first in the two areas Electrical/Precision equipment and Disclosure to retail investors and given the according "2010 Awards for Excellence in Corporate Disclosure" promoted by The Securities Analysts Association of Japan Disclosure Study Group.
This award is proof for the recognition that Nidec is given due to the fact that we are conducting our IR activities with the investors in mind and our consistent IR efforts regardless of the actual business performance.
We will continue to pursue active disclosure of information beneficial for all shareholders and investors based on the fair disclosure principle.
Return to shareholders
Increased dividend for four consecutive fiscal years, and acquired treasury stock.
Based on the point of view of "the company belongs to the shareholders," Nidec provides a future vision for the company that always reflects the changes of the times, and we make all efforts for high growth, high profits, and the long-term maintenance and further increase of high stock prices in order to respond to the mandate received from our shareholders. This describes our basic stance of indefatigable strive for more growth. While keeping a stable dividend in firm anticipation of a 30% consolidated net income, we will also undertake to increase the dividend amount in accordance with the status of the consolidated net income. Retained earnings will be used for the continued strengthening of our business basis and as investment source for business expansion in order to further increase profits.
Based on the guidelines stated above, we increased the dividend paid at the end of FY2010 by 5 yen to 45 yen compared with the dividend that was paid at the end of the previous FY; the annual dividend was 85 yen, an increase of 20 yen compared to the previous term. We estimate an annual dividend of 90 yen for FY2011, which would constitute an increase of 5 yen compared to the previous year.
Also, in February 2011, Nidec set a acquirement frame for treasury stock. The upper limit for acquirement is 3 mill. shares with an amount of 25 bill. yen, set for one year. In this way, Nidec is continuously working on the expansion and improvement of measures for shareholder return that do not stop with dividends, and we will make all necessary efforts to meet the expectations of our shareholders.
SRI-based IR activities
Participated in the conference on "SRI in Japan" held in Paris and London for European investors.
Nidec participated in the conference on "SRI (socially responsible investment) in Japan" held in Paris and London in November 2010. This conference, hosted by French securities companies and The Good Bankers Co., Ltd., a Japanese SRI assessment institution, was attended by many European investors. In this conference, we presented our CSR activities (e.g. the creation of job opportunities and environmental contribution by a widespread use of Nidec's products with a low-level environmental burden) as part of our main business activities. CSR is more and more regarded as part of investment criteria among overseas investors, and thus it is essential for a company to be evaluated highly in the CSR assessment. We will continue to release information on our CSR activities proactively.