Engagement with Shareholders and Investors
Breakdown of Shareholders
Daiwa Securities Group Inc. strives to continuously enhance shareholder value, including profit distribution. In principle, dividends are paid semiannually (interim and year-end dividends) at a payout ratio of 50% or more based on consolidated financial performance. However, after taking stability into account, when we can secure a sufficient amount of internal reserves required for future business development, we intend to increase returns to our shareholders, including share buybacks.
Communication with Shareholders and Other Investors
Every year, many shareholders attend our general meeting of shareholders, which is an opportunity for us to interact directly with everyone. To increase communication opportunities, we also carry out various IR activities. These include telephone conferences on the days of earnings announcements, briefings about the company for individual investors, management strategy briefing sessions, one-on-one meetings with institutional investors and analysts in Japan and overseas, and participation in Daiwa Investment Conferences held within and outside Japan.
In addition, we are further developing information disclosure on our IR websites and publishing integrated reports and business reports for shareholders. We will continue working to make our communications even more precise and easy to understand for shareholders. Feedback and questions received from shareholders are reported to the CEO and other management personnel on a weekly
Shareholder Rewards Program
Daiwa Securities Group Inc. has been implementing a shareholder rewards program for over 10 years to express our continuing gratitude to shareholders. We also introduced a catalog system for rewards at the end of March 2008 and significantly expanded our lineup of products posted in the catalogue from 24 to 50 items at the end of March 2016. Reward products are provided semiannually, at the end of March and September. Shareholders have multiple reward options to choose from such as regional specialties, charitable donations, and "Kaisha Shikiho," a quarterly journal on investment.
Starting with the shareholder rewards offered to shareholders of record on September 30, 2017, if shareholders request reward items on our website, we donate ¥20 per case to "Daiwa Securities Group Children Support Fund for a Bright Future," established in the Public Resources Foundation. We thus support activities for improving the environment surrounding children and breaking the cycle of poverty through NPOs engaged in fighting child poverty.
It also became possible to select Single Mothers Forum, a certified NPO, as a donation recipient in the shareholder rewards offered to shareholders of record on March 31, 2019.
The contributions made will be used for initiatives to give congratulatory money to children in single-parent households who enter elementary, junior and senior high schools and colleges.
Questionnaire for Shareholders
We distribute a questionnaire to shareholders coinciding with the distribution of rewards under our shareholder rewards program at the end of September, to gather and incorporate their views into management and IR activities. The findings of these questionnaires are utilized to enhance satisfaction with the shareholder rewards program and to improve our business operations.
Shareholder Rewards Questionnaire Contents at the End of September 2018
- When did you first purchase our shares?
- Why did you choose to buy Daiwa Securities stock? (multiple answers allowed)
- What types of disclosure and corporate communications activities would you like to see enhanced in the future? (multiple answers allowed)
- Are there any products you would like to have included in the shareholder rewards program? (multiple answers allowed)
Initiatives in FY2018
Dialogue with Various Stakeholders
With the expectation of a shift from savings to asset building, Daiwa Securities Group continued to actively disseminate information contributing to the improvement of the Group's corporate value. We communicated the progress of our Medium-Term Management Plan, an overview of our management policy, and other information efficiently and effectively in earnings announcements and management strategy briefing sessions, as well as in integrated reports and business reports. For institutional investors in Japan and abroad, we implemented effective activities suited to each investor base, and held an IR roadshow by top management for overseas institutional investors. In FY2018, we continued to nurture relationships of trust with staff responsible for exercising voting rights, in addition to analysts, portfolio managers, and others, through periodic communications. In December 2018, we held an ESG meeting for institutional investors and analysts. At the meeting, the Chairman of Audit Committee, an outside director, and the officer in charge of planning explained, respectively, the Group's corporate governance and SDG initiatives, and this was followed by a question and answer session.
Moreover, following the increase in the ratio of individual investors, we significantly increased the number of briefings for individual investors, with the CEO and CFO participating. We also held seminar-style company briefings for individual investors on the Internet, in addition to briefings at sales branches of Daiwa Securities, attracting the participation of many investors and large audiences. Furthermore, we participated in briefings organized by Daiwa Investor Relations Co. Ltd. (Daiwa IR), a Group company, with the aim of increasing contact points with individual investors. At these briefings, we provide a question and answer session and conduct a survey, thereby obtaining diverse feedback to use for the improvement of communication with individual investors in the future.
Number of overseas IR activities held in FY2018
- North America 2 IR events(28 meetings)
- Europe 2 IR events(30 meetings)
- Asia 2 IR events(23 meetings)
Company briefings for Individual Investors held in FY2018
- Number of briefings at sales branches of Daiwa Securities 36
- Number of briefings organized by Daiwa IR 9
- Number of seminar-style Internet briefings 2
- Total number of participants Approximately 6,500 people
ESG meeting held in December 2018
Seminar-style company briefing for individual investors on the Internet
Increasing Shareholder Returns
Daiwa Securities Group, aiming to achieve sustainable growth by earning healthy profits, will implement a capital policy that takes all stakeholders into consideration by striving to balance investment in growth, improve capital efficiency, maintaining financial health, and enhancing shareholder returns.
We raised the target payout ratio to at least 50% from FY2018. When we can secure a sufficient amount of the internal reserves required for future business development, we intend to increase returns to our shareholders, including share buybacks. The full year dividend payout ratio was 52.6% in FY2018, with the total return ratio standing at 106.9%.
- Buyback period
From August 22, 2018 to February 22, 2019
- Total number of shares repurchased
55 million shares(Percentage of total number of issued shares excluding treasury stock: 3.40%)
- Total amount of shares repurchased
Daiwa Securities Group has formulated its Disclosure Policy, which outlines the Group's basic approach to information disclosure and strives to provide information that is fair, prompt, and appropriate.
As a company engaged in the securities business, we are committed to fair information disclosure in accordance with the Fair Disclosure Rules so that we will be a role model for other listed companies. We will strengthen disclosure not only of financial information, but also nonfinancial information with social and environmental aspects that are not apparent in the financial figures in the short term.
- We will observe fair and timely disclosure of important financial, social and environmental information ("Management-Related Information") regarding the Daiwa Securities Group so that our stakeholders, (including shareholders, investors and the communities we operate in) may understand and maintain realistic expectations of the Daiwa Securities Group.
- We will comply with the Financial Instruments and Exchange Law and other laws and ordinances related to securities transactions and the various rules of the financial Instruments exchanges where on which our stock is listed.
- We will endeavor to achieve fair disclosure both in terms of content and timing.
- We will utilize various communication channels including presentations, telephone conferences, the Internet and printed materials to disclose information in an easy to comprehend manner for investors.
- We will consciously act as a leader of the securities markets in terms of disclosure and set the standards for other listed corporations.
- To realize the above policies we will establish Disclosure Regulations* and set up a Disclosure Committee to lay down procedures for disclosing information.