Basic Stance on Information Disclosure
Sekisui House, Ltd. (the “Company”), in accordance with Sekisui House, Ltd. Basic Policy on Corporate Governance, shall proactively and impartially disclose not only its financial information, such as financial condition and business results, but also non-financial information, including the management policy and activities related to CSR and ESG (Environment, Social and Governance) to shareholders, investors and all other stakeholders.
The Company shall also determine a Medium-Term Management Plan to cover three years.This plan shall set targets for sales, operating income, net income, and a Return On Equity (ROE), clarify earnings plans and business strategies for each segment, and disclose progress for each fiscal year in the earnings materials.In addition, the Company shall work proactively on dialogues with stakeholders through direct communications to ensure they are accurately understood and building proper relationships of trust and study comments received from them as reference for managerial decision-making.
Criteria for Information Disclosure
The Company shall disclose information in accordance with the Financial Instruments and Exchange Act, other laws and ordinances and the Timely Disclosure Rules of the stock exchanges on which the Company’s securities are listed.The Company shall also disclose information that is not subject to disclosure under the Timely Disclosure Rules as swiftly and impartially as well as easy-to-understand as possible if it corresponds to decisions, events or financial results presumed to affect investors’ investment decisions or if its disclosure to stakeholders is deemed desirable in association with products, technologies, services and equivalents.
Method of Information Disclosure
The Company shall disclose information subject to timely disclosure under the Timely Disclosure Rules on TDnet. The Company shall endeavor to implement extensive and impartial information disclosure by various means including press releases, publication on its website and inclusion in materials for financial results briefings and other financial statements. In addition, the Company shall regularly issue a sustainability report, a business report for shareholders, and an annual report to communicate its management policy and the progress of business.
Furthermore, the Company shall promptly prepare an English version of materials that include important information that may influence investment decisions. The Company shall post these materials on its website and strive to inform overseas investors about their availability.
Constructive Dialogues with Shareholders and Investors
Structure for Dialogues
Based on an awareness that it is significant to talk with shareholders and investors, to take their opinions seriously and to incorporate them properly into management for attaining continued growth and a medium- and long-term increase in corporate value, the Company shall ensure that its Representative Directors take control and set up an organization in charge of investor relations. The organization in charge of investor relations shall engage in day-to-day operational collaboration with each Division of the headquarters of the Company in collection of inside information, drawing up of messages for outsiders and others to step up constructive dialogues with shareholders and investors.
In dialogues with shareholders and investors, the Company shall not conduct selective disclosure of important information that may influence investment decisions, but rather strive to disclose information through means that stakeholders can access equally. Regarding important facts not yet released to the public, the Company shall aim for equality among all shareholders, comply with internal provisions to prevent insider trading, and properly manage information.
Enrichment of Dialogues and Communication
Management executives, the organization in charge of investor relations and others shall proactively conduct interviews with analysts and institutional investors. In addition, the Company shall endeavor to enrich direct communication, apart from individual interviews, with institutional investors and with individual investors separately, by organizing management briefings and factory and other facility tours.
Management executives, the organization in charge of investor relations and others shall strive to regularly report opinions, etc. received from shareholders and investors on the occasion of individual interviews and other dialogues to the Board of Directors, exchange opinions, and study them in making management decisions so that these ideas are reflected in future dialogues.
To ensure fairness and prevent leaks of information related to financial results, the Company employs a quiet period which, as a rule, lasts for two weeks from the day before the date of an announcement of six-month or full-year financial results and one week from the day before the date of an announcement of three-month or nine-month financial results.
During these quiet periods, the Company refrains from providing any new information related to the upcoming financial results, either in response to specific inquiries or as part of any other statement or comment. Meanwhile, the Company will respond to any inquiries concerning information that has already been released. In addition, the Company will refrain from making any comment indicative of the most recent trend in its business during the period between the closing date of each quarter and the subsequent quiet period.
As of Dec.7,2018