Daiwa Securities (8601: JPY1,084.50) rises in 4 out of last 5 days, 5-day rise of 5.1%; +JPY2 [0.2%] 21 February 2024

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Daiwa Securities Group Inc.'s (TO: 8601 JPY1,084.50) stock price increased JPY2.0 (0.2%) to close at JPY1,084.50.

Compared with the Nikkei 225 Index which fell 101.5 points (0.3%) in the day, the relative price increase was 0.4%.

Daiwa Securities Group Inc. is the 2nd largest Securities & commodity futures company by market cap in Japan.

The stock rose in four out of the last 5 trading days, for a 5-day rise of 5.1%.

There were 4,680,000 shares worth JPY5.1 billion ($33.9 million) traded today. The volume was 0.9 times the average daily trading volume of 5.3 million shares.

DAIWA SECURITIES (8601) Stock Dashboard [traded in Japanese Yen, JPY] End-of-Day Wed, Feb 21

http://www.daiwa-grp.jp/

P/E17.8Dividend Yield % (TTM)2.9
EPS (FY2023)JPY43.53DPS (past 12 months)JPY23 or 2,300 sen
Shares Outstanding1,569,378,772Market CapJPY1,702 billion [US$11 billion]
LastJPY1,084.50ExchangeJAPAN [Nagoya, Tokyo]
8601 in IndicesNikkei 225 [of 215 stocks]SectorSecurities & Commodity Futures [of 40 stocks]
EPS Growth (Q2 2024 vs Q1 2024)28.0VI0.9
Today's Volume4,680,000Currency1.000 JPY = 0.01 USD; 1.000 USD = 149.88 Japanese Yen (JPY); Exchange rate at 10:30 PM UTC
Ave Daily Volume5,310,320 sharesPV$1000 (1 yr)JPY1,808
US$1,620
52-Week Price Range557.86 - 1,119.00

Price Volume Snapshot past 3 months (JPY)

Past month to HighLowVWAPVolume Index *
21 Feb 20241,119.0994.21,041.61.3
19 Jan 20241,072.0932.61,002.81.1
21 Dec 2023990.0922.9960.41.2

[*Volume Index of 1.3 means volume for the month was 1.3 times its 12-month average]

[VWAP is defined as the Volume Weighted Average Price]

INDEX

SECTION 1 RECENT NEWS AND RESEARCH

SECTION 2 TODAY'S BULLISH SIGNALS

SECTION 3 ONGOING BULLISH PARAMETERS

SECTION 4 TODAY'S BEARISH SIGNALS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS

SECTION 7 FINANCIALS FY 2023

SECTION 8 TAX & DIVIDEND

SECTION 9 TOP MANAGEMENT

SECTION 10 TOP SHAREHOLDERS

Read more...

ANNEXURE

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

APPENDIX II STOCK IDENTIFIERS

GLOSSARY

SECTION 1 RECENT NEWS AND RESEARCH

Financial News

Quarterly Report (Q2/2024):

Quarterly Report Analysis Q2 2024: Daiwa Securities EPS climbs 28%

Daiwa Securities (TO:8601), announced EPS of JPY20.87 (US13.97c) for the quarter-ended 30 September 2023 [Q2/2024], up 28% sequentially from JPY16.3 (US11.3c) in the previous quarter [Q1/2024].

Quarterly Report (Q2 2024)

Quarter-ended30 Sep [Q2/2024]30 Jun [Q1/2024]31 Mar [Q4/2023]
EPS, JPY20.916.313.2
Sequential growth in EPS %282423
Revenue, JPY billion304266294
Revenue, $ billion2.01.82.0
Sequential growth in Revenue %14.1-9.426.1
Net Profit, JPY billion29.823.717.1
Net Profit, $ million199159115
Sequential growth in Net Profit %25.638.512.0

Compared with the Previous Corresponding Period [PCP; Q2/2023], year-over-year [y.o.y.] EPS was up 131.9%, Revenue was up 57.8% and Net Profit was up 52.2%.

Quarter-ended30 Sep [Q2/2024]30 Sep [Q2/2023]
EPS, JPY20.99.0
PCP growth in EPS %132-44
Revenue, JPY billion304193
Revenue, $ billion2.01.3
PCP growth in Revenue %5824.5
Net Profit, JPY billion29.819.6
Net Profit, $ million199131
PCP growth in Net Profit %52-26.5

Daiwa Securities share has been a two bagger in the past year. A year ago the exchange rate was USD 1 = 134.28 JPY. USD1000 would have bought JPY134,277. A year ago the Daiwa Securities share price was JPY625.08. JPY134,277 would have bought 214.8 Daiwa Securities shares on that day. Those 214.8 shares would be worth JPY232,969 at today's share price of JPY1,084.50. At today's exchange rate of USD1=149.89 JPY this is equivalent to USD1,554. Dividends reinvested are worth JPY73 ($66). PV$1000= $1,620.

SECTION 2 TODAY'S BULLISH SIGNALS

Price/Earnings of 17.8 < Securities & Commodity Futures sector (of 40 stocks) avg of 20.4:

- The price-to-earnings ratio of 17.8 indicates undervaluation compared with sector average of 20.4.

2.1 Relative Value Indicators: Undervaluation compared with Index averages and bond yield

- Earnings yield of 5.6% is more attractive compared with the Japan average earning yield of 5.6%.

- The earnings yield of 5.6% is 7.8 times the 10-year bond yield of 0.7%.

(All figures in %)

Earnings Yield5.6
Japan avg5.6
Dividend Yield2.9
Bond Yield0.7

Dividend Yield > Bond Yield of 0.72%:

The dividend yield of 2.86% is 3.97 times the triple-A bond yield of 0.72%. The times factor of 3.97 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield2.86
Bond Yield0.72
Spread2.13

2.2 PAST WEEK: MODERATE MOMENTUM UP

8601 adds 5.1% on average volume 1.1 times average. Compared with the Nikkei 225 Index which rose 558.8 points (or 1.5%) in the week, the relative price increase was 3.7%.

The price ranged between a high of JPY1,093.50 on Monday Feb 19 and a low of JPY1,035.50 on Thursday Feb 15.

FebDaiwa SecuritiesClose [JPY]Change %Comment
Wed 21Rises in 4 out of last 5 days, 5-day rise of 5.1%1,084.50.2Price/MAP50 above 1 and rising
Tue 20Drops 1.0% on increasing volatility1,082.5-1.0Steepest Fall; VI*=1.1
Mon 19Accelerates rise, up 5.6% in 2 days1,093.53.2Top Rise; RPC=3.2%
Fri 16Up 2.7% in 2 days1,059.52.3VI*=1.2
Thu 15Rises on increasing volatility1,035.50.4Price rise on rising relative strength

* RPC - Relative Price Change is % price change of stock less % change of the Nikkei 225 Index.

[Volume Index (VI); 1 is average]

2.3 Rank in the top 17% by Price Performance in the Japan market

DescriptionValueRank
Rel Strength 6 mo93In Top 8%
PV1000 [1 yr] $1,620In Top 11%
1-week Price Change %5.1In Top 14%
Price/MAP501.1In Top 17%

2.4 Uptrend

Price/Moving Average Price of 1.37 and positive MACD:

- The Price/MAP 200 for Daiwa Securities is 1.37. Being higher than 1 is a bullish indicator. It is higher than the Price/MAP 200 for the Nikkei 225 Index of 1.16, a second bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of JPY989.81 is higher than the 200-day MAP of JPY794.14, a third bullish indicator. The 200-day MAP has increased to JPY794.14, a fourth bullish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 1,054.84 minus the 26-day EMA of 1,037.76 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

- The price to 50-day EMAP ratio is 1.1, a bullish indicator. In the past 50 days this ratio has exceeded 1.1, 11 times suggesting further upside. The 50-day EMAP has increased to JPY1,011.94. An increase is another bullish indicator.

Past Quarter:

- In the last three months the stock has hit a new 52-week high nine times, pointing to a significant uptrend.

The Best 3 weeks in the past quarter

In the past quarter the week beginning Monday January 01 saw the highest weekly rise of 5.9% for a relative price increase of 6.2%. The rise was propped up by volume of 1.5 times average.

Mon-FriChange %Nikkei 225 Index Change %Vol Ind [1 is avg]
Jan 01-055.9-0.31.5
Feb 12-163.84.31.2
Jan 15-192.41.11.2

Relative Strength (6 months) 93 percentile:

- The stock has a 6-month relative strength of 93 in the Japan market of 3,780 stocks, 15 ADRs and 1 preference stock which means it is beating 93% of the market.

- A price rise combined with a high relative strength is a bullish signal.

2.5 Other Bullish Signals

- Net profit margin has averaged 20.0% in the last 3 years. This is considered superior and suggests a high margin of safety.

SECTION 3 ONGOING BULLISH PARAMETERS

3.1 Rank in the top 96% by Liquidity in the Japan market

DescriptionValueRank
Ave daily turnoverJPY4.6 billion ($31 million)In top 96%

3.2 Rank in the top 6% by Size in the Japan market

DescriptionValueRank
MCap$11 billionIn Top 4%
Tr 12 months RevenueJPY1,097 billion ($7.3 billion)In Top 5%
Ave daily TurnoverJPY5.1 billion ($33.9 million)In Top 6%

3.3 Rank in the top 11% by Performance in the Japan market

DescriptionValueRank
EBITDA Margin %28.3In Top 7%
Net Profit Margin %15.9In Top 11%

3.4 Present Value of JPY1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVJPY1000 > 1,130

PVJPY1,0003 mo ago1 yr ago3 yrs ago
8601.TOJPY1,131JPY1,808JPY2,813
Securities & Commodity Futures sectorJPY1,230JPY1,472JPY1,330
Nikkei 225 IndexJPY1,149JPY1,393JPY1,275

3.5 The Best Periods [1 Yr, 3 Yrs] with Price Change % > 73.4

3-Year price change of 139.9% for Daiwa Securities outperformed the change of 27.5% in the Nikkei 225 Index for a relative price change of 112.4%.

Price Change %Year3 Years
Daiwa Securities73.5139.9
Securities & Commodity Futures sector4833
Nikkei 225 Index3927.5

3.6 MCap: 5-Year Increase of JPY716 B [$5B] (73%)

In the past 5 years Market Capitalization has increased by JPY716.2 billion (73%) from JPY985.8 billion to JPY1,702 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 2 out of 5 years.

PriceMCap (JPY B)MCap ($ B)
LastJPY1,084.501,70211.4
1 Year agoJPY625.08966.77.2
2 Years agoJPY641.891,184.710.3
3 Years agoJPY452.10894.28.4
4 Years agoJPY441.92913.28.2
5 Years agoJPY459.31985.88.9

3.7 Buybacks and 4-Years Decrease of 8.1% in Total Shares on Issue

In the past 4 years total shares on issue have decreased by 129.8 million (8.1%) from 1.6 billion to 1.5 billion. Buybacks have averaged 26 million shares [1.6%] per financial year. Based on a dynamic start date of 4 years ago, there has been no rise in issued capital over the last 4 years. A reduction in total shares on issue is a favourable indicator in Joseph Piotroski's 9 indicators.

Year End (Mar 31)Total Shares on IssueFYBuybacksBuyback %
20231,467,422,357202337,275,3412.5%
20221,504,697,698202217,733,1641.2%
20211,522,430,862202120,391,8471.3%
20201,542,822,709202054,409,5853.4%
20191,597,232,2942019--
Total129,809,937
Average per FY25,961,987

3.8 Sequential growth in EPS [Q2/2024 vs Q1/2024] of 28.0%:

The most recent quarter (Q2/2024) showed a rise of 28.0% in sequential growth of Quarterly EPS.
Quarterly ReportEPS (JPY)Growth %
Q2/202420.8728.0
Q1/202416.323.7

3.9 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 6.2%

TSR %1 yr3 yrs5 yrs10 yrs20 yrs
8601.TO80.840.7257.76.3

3.10 % Growth in EPS > RPS

EPS growth has consistently exceeded growth in RPS [Revenue Per Share].

EPS growth: Sequential EPS growth (Q2 vs Q1, 2024) was up 28.0% and PCP EPS growth (Q2 2024 vs Q2 2023) was up 131.9%. FY EPS growth (FY2023 vs FY2022) was down 31.0%.

RPS growth: Sequential growth in Revenue per share (Q2 vs Q1, 2024) was up 14.1% and PCP growth in Revenue per share (Q2 2024 vs Q2 2023) was up 60.4%. FY growth in Revenue per share (FY2023 vs FY2022) was down 5.2%.

(All figures in %)

Sequential growth in EPS (Q2 vs Q1, 2024)28.0
Sequential growth in RPS (Q2 vs Q1, 2024)14.1
PCP growth in EPS (Q2 2024 vs Q2 2023)131.9
PCP growth in RPS (Q2 2024 vs Q2 2023)60.4
FY growth in EPS (FY2023 vs FY2022)-31.0
FY growth in RPS (FY2023 vs FY2022)-5.2

3.11 Increased VWAP, up 98% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 98.2% to JPY823.49. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

Past five years, 12 months ended Feb 21 (JPY)

YearHigh PriceVWAPLow Price
20241119.0823.49557.86
2023686.19585.38532.23
2022668.23570.04444.88
2021476.6385.11293.52
2020475.98415.53340.41

3.12 Increased share turnover, up 94% in 5 years

In the past five years, average daily share turnover has increased 94.4% to JPY4.3 billion ($28.8 million). This suggests increased liquidity.

Past five years, 12 months ended Feb 21 (JPY billion)

YearAverage Daily Turnover
20244.3
20233.1
20223.0
20212.0
20202.2

3.13 Growth > 14% for Revenue and Net Profit:

- Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Sep 23 [Q2 vs Q1]14.125.610.5
Jun 23 [Q1 vs Q4]-9.438.59.7
Mar 23 [Q4 vs Q3]26.1126.7

3.14 Satisfies five criteria of Benjamin Graham

- The P/E of 17.8 multiplied by the P/NTA of 1.1 is 19.5. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 5.6% is 7.8 times the triple-A bond yield of 0.7%.

- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 3.9 times the triple-A bond yield of 0.7%.

- "A stock price down to two-thirds of "net current asset value" or "net quick liquidation value"; the price is 0.1 times net current asset value of JPY12540 per share.

-"Total debt equal or less than twice the net quick liquidation value"; total debt of JPY6471.4 billion (US$48.7 billion) is 0.4 times the net liquidation value of JPY18401.42 billion (US$138.6 billion).

SECTION 4 TODAY'S BEARISH SIGNALS

4.1 Relative Value Indicators: Overvaluation compared with sector averages

SectorP/E
Forbes 2000Stock: 17.8; Sector: 17.3overvalued

4.2 Rank in the bottom 23% by Relative Valuation in the Japan market

DescriptionValueRank
Price to Sales1.6In Bottom 23%

4.3 Other Bearish Signals

- Total Liabilities/EBITDA of 188.5 is more than 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

- As per the Du Pont analysis, Return on Equity is less than stellar at 4.4%. This is computed as net profit margin of 15.9% times asset turnover [sales/assets] of 0.02 times leverage factor [total assets/shareholders' equity] of 15.8.Also, this has deteriorated from 6.4% last year.

ROE (%)Profit Margin (%)Asset TurnoverLeverage factor
Current Year4.415.90.0215.8
Previous Year6.420.70.0216.8

4.4 Overbought/Bearish Signals:

- The Stochastic indicator of 80.8 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 Rank in the bottom 1% by Gearing in the Japan market

DescriptionValueRank
Total Debt to Equity3.9In Bottom 1%

5.2 Rank in the bottom 20% by Productivity in the Japan market

DescriptionValueRank
Return on Equity [ROE] %4.4In Bottom 20%
Return on Capital Employed [ROCE] %2In Bottom 7%
Return on Assets [ROA] %0.3In Bottom 3%

5.3 Stock vs Index (Annual Percentage Change)

December 31Last price in JPY Annual ReturnReturn of Nikkei 225 Index
2023949.169.528.2
2022559.8-6.3-9.4
2021597.547.94.9
2020404.0-11.216.0
2019454.93.218.2
2018440.9--

Over 6 years Daiwa Securities is up a total 115.3% at an annualized rate of 16.6% compared to the Index being up 67.2% at an annualized rate of 10.8%.

Daiwa Securities has outperformed the Nikkei 225 Index in 2 of the past 6

years: 2023, 2021.

5.4 EPS growth [FY2023 vs FY2022] of -31.0%:

FYEPS (JPY)Growth %
202343.53-31.0
202263.06-11.4

5.5 High Debt to Equity (%)

The debt to equity ratio of 386.2% is above a safe benchmark figure of 70%. However, it has improved from 623.3% a year ago.

YearsDebt to Equity (%)
Mar 2023386.24
Mar 2022623.3
Mar 2021315.44
Mar 2020341.5
Mar 2019344.99

5.6 Declining Volume Past five Years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 4.2% to 5.3 million shares.

Avg. Daily Volume Traded 12 months ended Feb 21, million shares

YearADVT
20245.3
20235.3
20225.3
20215.5
20205.5

5.7 Revenue, EPS, and EBITDA:

- Revenue growth, Earnings per share growth and EBITDA growth have shown signs of deterioration in recent years. [compared with previous year, all figures in %]

FYRevenue GrowthEPS GrowthEBITDA Growth
2023-8-31-26
20228-11-1
202198254

5.8 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Improvement in current ratio from 1.1 to 1.2.

- Reduction in total shares on issue.

But does not meet the following 6 criteria of Joseph Piotroski:

- Positive operating cashflow.

- Return on Assets improvement.

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in long-term debt to total assets.

- Improvement in gross margin.

- Improvement in asset turnover.

SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS

6.1 Activities

Daiwa Securities Group Inc. is a Japan-based company mainly engaged in the securities related business and other investment and financial business. The Company has four business segments. The Retail segment is engaged in the provision of financial products and services for individuals and unlisted corporates. The Wholesale segment is engaged in the global markets business, including the sale and trading of stocks, bonds and others, as well as the global investment banking business, including securities underwriting, merger and acquisition (M & A) advisory and others. The Asset Management segment is engaged in the establishment and management of investment trusts, and the provision of investment advisory and management services for pension assets. The Investment segment is engaged in the provision of investment recovery in existing projects, and the creation of new investment funds. The Company is also engaged in the management, banking, information and real estate leasing business. It is 2nd largest Securities & commodity futures company by market capitalisation in Japan,

6.2 Independent Ratings and Relative Value Indicators

+ Brand Finance 500:

Daiwa Securities Group Inc. was ranked 132 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; a deterioration over a year from rank 131 in 2014. Brand Finance valued the brand at US$1,309 million.

6.3 Contact Details

Websitehttp://www.daiwa-grp.jp/
Physical AddressGran Tokyo North Tower, 1-9-1, Marunouchi, Chiyoda-ku, TOKYO-TO, 100-6751
Phone81355551111

SECTION 7 FINANCIALS FY 2023

7.1 Daiwa Securities Financials Summary:

Year ended MarFY2023FY2022FY2021
Sales ($ B)3.13.33.1
Pretax ($ M)644.3943.2962.5
Net ($ M)425.3631.8721.7
EPS (JPY)43.5363.0671.2

EPS down 31% to JPY43.53 in FY2023 [ y.e. 31 Mar 2023]

+ Net profit was down 32.7% from $631.8 million in FY2022 to $425.3 million in FY2023.

+ Earnings Per Share (EPS) was down 31% from JPY63.06 in FY2022 to JPY43.53 in FY2023.

7.2 Financials, FY 2023 [year-ended 31 March 2023 ]

Daiwa Securities profits hit by 33% fall

Release Date: April 28, 2023

Daiwa Securities (TO:8601) reported net profit for the year-ended 31 March 2023 [FY2023] of JPY63.9b ($481m), down 33% from JPY94.9b ($779m) in the previous year [FY2022]. Earnings per share (EPS) were down 31% from JPY63.06 (US51.79c) in FY2022 to JPY43.53 (US32.79c) in FY2023.

7.3 Annual growth in Revenue, Net Profit and EPS

Year-ended31 March [FY/2023]31 March [FY/2022]
Revenue, JPY Billion464502
Revenue, $ Billion3.53.8
Growth in Revenue %-7.57.6
Net Profit, JPY Billion63.994.9
Net Profit, $ Million481715
Growth in Net Profit %-32.7-12.5
EPS, JPY43.5363.06
Growth in EPS %-31.0-11.4

Major changes compared with previous year (FY2023 vs FY2022):

Favourable Changes:

- Sales and marketing expenses to Sales down from 32.1% to 23.1%

- Administration expenses to Sales down from 4% to 3%

- Debt to Equity down 38% from 6.2 to 3.9

- Working capital to total assets up from 11.1% to 12.5%

- Cash to Total Assets up from 35.9% to 40.6%

Unfavourable Changes:

- Net profit slumps 32.7% from JPY94.9b ($779.3m) to JPY63.9b ($481.1m)

- Total revenue down 7.5% from JPY502.1b ($4.1b) to JPY464.2b ($3.5b)

- EPS slumps 31% from JPY63.06 (US51.79c) to JPY43.53 (US32.79c)

- EBIT Margin down from 22.9% to 11.2%

- EBIT to total assets down from 0.5% to 0.4%

Year-on-year comparison of Performance Ratios [FY2023 vs FY2022]

March 31FY2023FY2022Change (%)
Return on Equity (%)4.46.4Down 31.2
Return on Assets (%)0.30.4Down 25
Total debt to net tangible assets (%)417.5673.2Down 38
Debt/Equity3.96.2Down 38
Common Size Ratios by Assets %
Cash to Total Assets 40.6 35.9 Up 13.2
Long-term investments to Total Assets 1.7 1.6 Up 6.4

Currency Conversion (March 31, 2023): $1 = JPY132.77

Currency Conversion (March 31, 2022): $1 = JPY121.76

Five-year record of growth and performance:

In the last 5 years Total Revenue averaged JPY460.1B, EBITDA averaged JPY193B and Net Profit averaged JPY82.5B. Compound Annual Growth Rate (CAGR) averaged -8.2% for Total Revenue, -10.4% for Net Profit and -16.7% for EBITDA.

DescriptionAnnual (JPY B)5-year Avg (JPY B)5-year CAGR %
Total Revenue464.2460.1(8.2)
EBITDA131.3193(16.7)
Operating Profit96.8161.1(20.4)
Net Profit63.982.5(10.4)

Five-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE

In 2023 Net Profit Margin of 8.5% was below its 5-year Avg of 17.8% (All Figures in %)

Description20235-year Avg
EBITDA Margin28.342.2
Operating Profit Margin11.235.3
Net Profit Margin8.517.8
Return on Equity4.45.5
Return on Assets0.30.3
Return on Capital Employed23.7

SECTION 8 TAX & DIVIDEND

8.1 Average Income Tax Paid (Past 5 Years)

In the past 5 years, Income Tax as % of profit before tax decreased from 32.9% to 23.9% and Income Tax as % of operating cash flow increased from 8.6% to 17.6%.

Description20232022202120202019
As % of profit before tax23.926.524.227.832.9
As % of operating cash flow17.621.319.620.48.6

The 5-year average of profit before tax was 27%.

8.2 Dividend History

In the past 5 years annual dividends have increased by JPY11.0 from JPY20.0 to JPY31.0. Based on a start date of 5 years ago, there has been two decline in dividends over the last 5 years.

DateValue (JPY)Type
28 Sep 202319Interim
30 Mar 202312Final
Tr 12 Months31
2022 - 202327
2021 - 202242
2020 - 202120
2019 - 202020

SECTION 9 TOP MANAGEMENT

9.1 Top Management

Top Management [One top executive with tenure > 11 yrs]

NameDesignationSince Appointment
Takashi HibinoChairman, Director11 Yrs, 1 Mo

Top Management [Nine top executives with tenure < 2 yrs]

NameDesignationSince Appointment
Toyo AbeExecutive Director1 Yr, 2 Mos
Seiji NakataChief Executive Officer, President, Director-
Eiji SatoChief Financial Officer, Managing Executive Officer-
Keiko TashiroDirector, Executive Vice President-
Kazuo TakahashiExecutive Vice President-
Koichi MatsushitaExecutive Vice President-
Mikita KomatsuExecutive Vice President-
Masahisa NakagawaExecutive Vice President-
Toshihiro MatsuiDirector, Executive Vice President-

SECTION 10 TOP SHAREHOLDERS

Top 10 shareholders

Name of the Share HolderNumber Of Shares% of Capital
The Master Trust Bank of Japan, Ltd. (Trust Account)23854557315.2
Custody Bank of Japan, Ltd. (Trust Account)773703734.9
NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONAL INVESTORS INTERNATIONAL VALUE EQUITY TRUST458258602.9
Taiyo Life Insurance Company444134192.8
Nippon Life Insurance Company335847062.1
JAPAN POST HOLDINGS Co., Ltd.323292032.1
Barclays Securities Japan Limited320153272.0
STATE STREET BANK WEST CLIENT - TREATY 505234282488181.8
Daiwas Employee Stock Ownership Association241684331.5
NORTHERN TRUST CO. (AVFC) RE U.S. TAX EXEMPTED PENSION FUNDS210296761.3

% held by Top 10 shareholders 36.6%

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

8601: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ FINANCIALS - 10-YEAR HISTORY [INCLUDING FY 2023]:

+ PEER COMPARISON - STOCK IN SECURITIES & COMMODITY FUTURES SECTOR AND STOCK IN INDICES

8601: LINKS IN HTML TO FURTHER INFORMATION:

+ NEWS ARCHIVES - 8601 PAST 4 YEARS IN HTML:

+ PRICE VOLUME CHARTS IN HTML

+ USD vs JPY EXCHANGE RATE CHARTS IN HTML

+ BOARD OF DIRECTORS

APPENDIX II STOCK IDENTIFIERS

ISIN: JP3502200003

PermID: 4295880501

RIC: 8601.T

LEI: 353800WRC7Y23PWFJG38

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabilities (times)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PCP: Previous Corresponding Period

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.

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