ES-CON JAPAN

About Us

ES-CON JAPAN is a life developer that builds the settings of people’s futures, bringing ideals into reality and the future of Japan to life.

Medium-Term Management Plan

ES-CON JAPAN Group’s 3rd Medium-Term Management Plan: IDEAL to REAL 2022 (FY2020-2022)

Our Group will pursue the third medium-term management plan, “IDEAL to REAL 2022,” over the three-year period from fiscal 2020 to 2022 to take our business to the next level.

Basic Policy

Aim to maximize corporate value by setting on track “management stability and sustainable growth” and also accurately addressing the diversifying social issues through promotion of ESG initiatives.

Corporate Strategy

1

Management stability and sustainable growth
  • Diversify businesses
  • Stabilize revenue structure by securing stock revenue bases
  • Exert synergistic effects with the Chubu Electric Power Group
  • External growth of ES-CON JAPAN REIT Investment Corporation (EJR)

2

Address social issues through promotion of ESG initiatives

3

Return to shareholders

Plan Details

Performance Plan

(Unit: Millions of yen)

FY2019 Actual
IDEAL to REAL 2019
FY2020 Plan FY2021 Plan FY2022 Plan
IDEAL to REAL 2022
Net sales 72,106 86,000 100,000 110,000
Operating income 12,912 13,300 14,000 15,200

Management Targets

FY2019 Actual
IDEAL to REAL 2019
FY2022 Plan
IDEAL to REAL 2022
Return on equity (ROE) 26.8% 20.0%
Return on invested capital (ROIC) 7.5% 5.5%
Equity ratio 25.3% 25.0%
Dividend payout ratio 30.2% 30% or higher

Dividend Policy and Capital Policy

ES-CON JAPAN introduced a progressive dividend policy, starting from the second medium-term management plan. This is a dividend policy for the dividend amount per share to not fall below the previous fiscal year’s dividend per share (DPS), making it a policy to “not decrease the dividend amount, but rather only maintain or increase the dividend amount” in principle. In continuing to adopt this progressive dividend policy in the third medium-term management plan, we will make efforts to realize stable dividends and raise the transparency of future dividend levels to strengthen return to shareholders increasingly and for sustainable corporate value enhancement.

Third medium-term management plan IDEAL to REAL 2022
Dividend payout ratio 30% or higher
Dividend per share (DPS) Keep “progressive dividend policy” ongoing
Purchase of treasury shares Consider in an agile manner with total return ratio in mind

Basic Policy on Profit Distribution and Dividends for Upcoming Periods

Considering returning profits to shareholders to be one of the most important management issues, our basic policy is to ensure steady, continuous returns in line with company growth based on comprehensive consideration of performance, internal reserves, payout rate, etc. Regarding the year-end dividend for fiscal 2019, we increased the DPS from the initial 35 yen to 36 yen, achieving a payout rate of 30.2%.
In order to ensure steady returns for shareholders, we will continue with the progressive dividend policy for dividends per share (DPS) for the third medium-term management plan period (FY2020-FY2022) following the second medium-term management plan period.
With the previous fiscal year’s DPS as the minimum, it will either remain the same or increase based on performance (in principle, it will not decrease). By introducing this progressive dividend policy and its clear principle of not decreasing the dividend, only maintaining or increasing it, we are ensuring steady dividends, heightening the transparency of future dividend levels, strengthening shareholder returns, and sustainably increasing corporate value.
The planned fiscal 2020 DPS is 38 yen.

Dividend FY2017 FY2018 FY2019 FY2020
(Actual) (Actual) (Actual) (Planned)
18 yen 32 yen 36 yen 38 yen