Positioning of Management Indicators in the mid-term management plan
The Group is seeking to implement investment in growth for enhancing mid- to long-term corporate value and enhance returns to shareholders while improving earning capacity of its core business and balancing a high level of financial soundness with capital efficiency, through the management strategies of the mid-term management plan.
Improvement of earning capacity
Sustained enhancement of operating revenues, operating income and operating margin
Operating margin (March 31, 2021): 7.8% (up 1.4 point year-on-year)
Enhancement of financial soundness
Creation of a robust financial base for supporting investment in growth for enhancing medium- to long-term corporate value
Enhancement of capital efficiency
Implementation of management conscious of maintaining and enhancing ROE by emphasizing the cost of capital, and managing the rate of return on invested capital to exceed the cost of capital in investment
ROE (March 31, 2021): 19.0% (up 6.2 point year-on-year)
Enhancement of returns to shareholders
Under the medium-term management plan "Second Stage 2021", the company aimed for a consolidated dividend payout ratio of 30% and paid a stable dividend.
Under the medium-term management plan "SGH Story 2024", the company aims to increase dividends from the previous year, targeting a consolidated dividend payout ratio of 30% or more.