Our shareholder proposals

Please find followings. The details are in the link below.

No.1 Disclosure of WACC and its basis of calculation for more effective dialogues.⇒Link

No.2 Dissolution of cross shareholdings to increase financial leverage
No.3 Increase of dividend to achieve 100% payout ratio.

Link

The ratio of favour votes to our proposals

Thanks to supports from other shareholders, all the two proposals gained almost one third of favour votes. As Asanuma disclosed the WACC voluntarily, we truly expect the management will make use of this result in making management policy from now on.

Estimation of how much the share price will be if our proposal is passed and 100 % payout ratio continues

＜Assumption: at 5% of dividend yield and EPS in FY2018 is JPY 504＞
Our proposal aims to distribute JPY504 (same as EPS in FY2018).
Assuming that dividend yield is 5%, share price under such assumption would be JPY 10,080, which means +166% of rate of increase compared to the price as of 22nd May 2019 (JPY3,795).

Our calculation on Asanuma’s cost of equity capital

Assumption：g=3％、ROE11.2％（*）、PBR=0.82x
Result： 13.0％
*Net income (forecasted by Asanuma) divided by Equity capital in FY2018.

Supplemental explanation on our proposal regarding dividend

Our proposal does not plan to distribute so much dividend that Asanuma is forced to pursue short-term profits, because the maximum DPS equals to EPS as following charts.

As described above, our proposal is to prevent Asanuma from accumulating further equity capital and lowering ROE. Therefore, we propose 100% payout ratio.

A part of our original shareholders proposal

The amount obtained by deducting the amount of dividend payment from surplus per common share of the Company which will be proposed by the Board of Directors of the Company at the 84th Annual General Meeting of Shareholders and approved thereat, from JPY386.
In case Earnings Per Share rounded down to the nearest integer in 84th fiscal period (hereinafter referred to as “actual EPS”) is different form JPY386, JPY188 in the previous paragraph shall be replaced with actual EPS.