Our proposals in recent dialogues
We concerned the decline of capital efficiency in the future because of the further accumulation of equity capital based on Seikitokyu’s policy.
We have expressed our thoughts that Seikitokyu has to change its mind from “equity capital may be necessary in the future” to “use the financial leverage and improve the capital efficiency”.
It is required to increase financial leverage through borrowings in order to use the capital efficiently. We have proposed some options such as increase of shareholders return and acquisition to raise financial leverage.