Notice Regarding Efforts to Achieve Management Focused on Capital Cost and Share Price

June 26, 2023
ID Holdings Corporation

Notice Regarding Efforts to Achieve Management Focused on Capital Cost and Share Price

ID Holdings Corporation (hereinafter “the Company”) hereby gives notice of the status of its efforts to achieve management that is focused on capital cost and share price, as follows.

１．Analysis of Current Status

In the three most recent fiscal periods, the Company’s return on equity (ROE) increased yearly, reaching 8.3% in FY2020, 11.2% in FY2021 and 14.2% in FY2022. Capital profitability exceeded capital cost, as calculated by the Company.
Price-to-book-value ratio (PBR) maintained a stable trend across each of the three most recent fiscal periods, reaching ratios of 1.6:1 at the end of FY2020 (March 31, 2021), 1.5:1 at the end of FY2021 (March 31, 2022) and 1.6:1 at the end of FY2022(March 31, 2023). Under current conditions, the Company has no concerns that PBR will fall below 1:1.
Share price trended upward over the three most recent fiscal periods, coming in at ¥850 at the end of FY2020, ¥846 at the end of FY2021 and ¥1,000 at the end of FY2022.

２．Preparation and Disclosure of Plans

The Mid-term Management Plan disclosed on April 28, 2022 (Next 50 Episode II: Ride on Time), covering the period from FY2022 to FY2024, calls on the Company to advance business activities aimed at improving corporate value over the medium-to-long term. These activities consist of transitioning to high-value-added services, thereby steadily transforming and expanding the Company’s operations.
As disclosed in “Plan for Conforming to Criteria for Continued Listing on the Prime Market,” disclosed on March 14, 2023, the Company has prepared a wide range of measures. In addition to the steady implementation of the Mid-term Management Plan, these include revising measures to return earnings to shareholders, enhancing investor-relations activities, strengthening corporate governance and advancing activities for sustainability.

３． Implementation of Measures

On April 28, 2023, in the “Notice Regarding Revision of Numerical Targets in the Mid-term Management Plan and Dividend Forecast (Dividend Increase) for FY2023,” the Company disclosed that it had revised upwards its numerical targets for the second and third years of the Mid-term Management Plan. The reason given for this upward revision was that, thanks to sound implementation of the Mid-term Management Plan, business results in the first fiscal year of the plan (FY2022) were solid, significantly exceeding the original forecast.
Moreover, against the background of a favorable trend in recent business results, the Company is setting new numerical targets for return of earnings to shareholders. In particular, the Company increased the dividend for FY2022 by ¥5 over the original forecast and boosted the dividend forecast for FY2023 by a further ¥5.
The Company will continue to strive to improve corporate value over the medium-to-long term, by steadfastly implementing the Mid-term Management Plan and advancing the return of earnings to shareholders and other efforts.

For more information on the Mid-term Management Plan, please refer to the Web page below.
https://www.idnet-hd.co.jp/english/ir/strategy.html