ポールトゥウィンホールディングス株式会社

Management Policy to Enhance Corporate Value

Achieve business growth, strengthen human resources and financial soundness based on the environment and strategies surrounding each operation, linking to sustainable growth.

Business Growth

Top Line (net sales) Growth

Process, Region, Field
= Thoroughness and penetration of "Service Life Cycle Solutions".

Improve/Increase Profit Margins

Promotion and thoroughness of billing rate improvement and cost control.
Examining breakeven points by each business and region, and discontinue or integrate unprofitable businesses and sites.

Strengthening post-merger integration and creating group synergies

Continuing execution of M&A and creation of systems to produce acquisition benefits in eary stage.
Stricter management of forecasts and actual results

Strengthening of
human resources

Continued investment in human capital

Building office environments and ways of working to maximise human capital.
Retaining and promoting a diverse workforce and developing the next generation of executive candidates.

Financial Soundness

Optimise the balance between investment in growth and shareholder returns

By generating operating cash and making effective use of interest-bearing debt, investment in growth and shareholder returns can be achieved at the same time.
Formulating investment and withdrawal discipline.

Capital Policy

Optimise the balance between growth investment and shareholder returns with a view to improving profitability, while maintaining financial soundness.
Assuming a cost of capital (WACC) of 8%*, and improve corporate value sustainably.

Growth Investment

Implement investments with ROIC > WACC, and verify investment

effectiveness by targeting a post-investment ROIC of10％
.

Shareholder Returns

DOE (Dividend On Equity)

3%
minimum

Assuming of constant dividends even in the event of a negative net profit.

Total Return Ratio

30%
or more

Assuming dividend linked to profit growth.

Financial Soundness

Equity Ratio

Adherence of
more than 50%

Balance between utilization of interest-bearing liabilities and financial soundness.

(Note) The Company’s WACC premise: Risk-free rate (0 to 1%) + β (1.0 to 1.2) x Market risk premium (6 to 7%), Cost of debt 1%, Effective tax rate 30.62%

Capital Allocation Policy

Improve profitability and balance sheet, and allocate cash generated from operating, financing and investment activities to investment in growth and shareholder returns, with room for flexible allocations.

Growth Investment/Monitoring Policy

Investments with ROIC > WACC to realize three-dimensional growth
Monitoring by the "Investment Committee" of the necessity, appropriateness and post-investment profitability of investments.

Growth Investment Policy

Organic

(Internal strengthening)

Human capital investment
Investment in DX, etc.

Inorganic

(Intake of external resources)

M&A of related businesses
Investment in surrounding business alliances
Acqui-hiring to acquire know-how

Monitoring Policy

Investment verification is carried out at least once a year by the "Investment Committee".
Investment verification after a certain period of time after investment (3 to 5 years) with a target ROIC of 10%.

Growth Investment/Utilizing M&A

Actively utilize M&A to achieve steady growth in core businesses and expand into new businesses.
Continue to promote M&A that expand the Group's "Process," "Region," and "Field".

Shareholder Returns Policy

Revised from the previous "payout ratio target of 25%" in light of the company's business characteristics and financial situation.
Basic policy of stable and continuous shareholder returns, with a target of "DOE of 3% minimum" and "total return ratio of 30% or more", and efforts to increase shareholder returns in the future.

Changes in DOE and Dividend

Change of Total Return Ratio

Policy on Dialogues with Shareholders, Investors and Others

The Company's policy is to build relationships of trust through active and constructive dialogues with shareholders, investors and others, and to implement IR activities that contribute to increasing corporate value.
Director & CFO is designated as IR executive officer and the Administration Department as the department in charge of IR, and a system for dialogue has been established.

Main Activities

Financial results briefings for shareholders, investors and others.
Conduct individual interviews with analysts, institutional investors, etc.
Organization of management update meetings for shareholders.
Posting of various IR materials on website.
Response to IR inquiries via the website.
Publication and distribution of company reports by Shared Research Inc.
Introduction of voting via the Internet or other means for general meetings of shareholders and participation in electronic voting platforms.

Status of dialogues with shareholders and investors (FY2025/1)

Shareholders, investors and others engaged in dialogue

27 foreign investors, 25 domestic investors, 11 others (total companies)

Main themes and concerns of the dialogue

M&A strategy, capital efficiency and dividend policy,publication of short-, medium- and long-term forecasts, the impact of AI, the market environment and the medium-term management plan.

Matters incorporated on the basis of dialogue

Analyze investors’ interest and announces ‘matters of anticipated high interest’ at the time of the results announcement.
Corporate company reports by Fisco.
Began disclosing all timely disclosures in English.
Interim dividends are paid to enhance opportunities for profit distribution.
Renewal of corporate website to enhance IR information

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Sustainability Policy

With a mission of “solving clients’ challenges by integrating people and technology,” the Group will grow alongside its stakeholders through its business activities, thereby supporting social infrastructure and contributing to the realization of a sustainable society.

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