| WELLNET CORPORATION (2428) |
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Company |
WELLNET CORPORATION |
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Code No. |
2428 |
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Exchange |
TSE 1st |
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Industry |
Service |
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President |
Kazuhiro Miyazawa |
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HQ Address |
1-1-7 Uchisaiwaicho, Chiyodaku, Tokyo |
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Year-end |
June |
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URL |
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* Stock price as of the close on March 3, 2015. Number of shares outstanding at the end of the most recent quarter excludes treasury shares.
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* From fiscal year June 2012, a change in the accounting procedure to a method of displaying sales by subtracting a part of cost of sales of the online business was adopted and data prior to this period was adjusted to reflect this change.
* Estimates are those of the Company. A 100 for 1 stock split was implemented on July 1, 2012. EPS is calculated based on the post stock split number of shares, assuming undertaken at the beginning of the fiscal year. |
| Key Points |
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| Company Overview |
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With the key concepts of "real time" and "one stop," WELLNET offers a "convenient direct sales platform" to provide (1) its customers (i.e. the purchaser of service and goods) with the convenience of purchasing whatever they want at any time and from any place, and (2) its sales business operators (i.e. WELLNET's direct customers) with the their capability of "maximizing sales opportunities" in selling products and services over the Internet. The multiple payment service, which is WELLNET's core business, has been implemented by major Japanese airline and express bus companies, in addition to major mail-order businesses. Ever since its inception, WELLNET has endeavored to maintain the spirit of taking on new challenges which is engrained in its corporate DNA. <Corporate History>
WELLNET CORPORATION got its start as a subsidiary of a gas and fuel merchant called Ichitaka Takahashi Co., Ltd. in Hokkaido for the purpose of developing new businesses. At the time of its inception, utility bill payment services at convenience stores had already begun. However the Company began preparations for the expansion of payment settlement services to include mail order catalog sales. WELLNET developed an integrated a seamless "convenience store consigned bill payment settlement service" that included the functions of printing and mailing of invoices, and bill payment information processing which could be used 24 hours a day, 365 days a year. This system quickly became widely diffused amongst product and service merchants because it was distributed free of charge and allowed them to avoid having to make large outlays to develop their own payment settlement systems. Furthermore, WELLNET developed a system that allows customers to avoid having to print out paper copies of invoices and allows for customers to make real time connections for electronic invoices and payments, which is currently used widely. The system's ability to eliminate development costs and to allow customers make electronic payment settlement connections with convenience stores and other payment outlets without the need to sign agreements has contributed to its strong reception and numerous implementations by airline and bus companies, in addition to boosting WELLNET's earnings. In 2004, the Company listed its shares on the JASDAQ market. Thereafter, WELLNET has expanded the provision of its "multiple payment service" to include large companies such as Amazon, Yahoo! Shopping, Rakuten Auction, and low cost carrier (LCC) airlines. In addition, the Company has also focused its attention upon developing applications for the rapidly growing electronic ticket service market including a cellular telephone ticket service, having many good track records.  <Market Conditions>
According to the Ministry of Economy, Trade and Industry's report entitled "2013 Facilitation of the Japanese Information Society and Economy" (Market report about electronic commerce issued on August 26, 2014), the Japanese electronic commerce market (B to C) for consumers rose by 17.4% year-over-year to ¥11.2 trillion in 2013.
 At the same time, the Ministry of Economy, Trade and Industry cites that while the diffusion rate of EC (The amount of transactions conducted over the Internet as a percentage of all commercial transactions) is still small at only 3.67%, but the rate has been increasing steadily. EC transactions are expected to grow by 10% on an average per year for the foreseeable future.  <Business Description>
With the key concepts of "real time" and "one stop," WELLNET offers a "convenient direct sales platform" to provide (1) its customers (i.e. the purchaser of service and goods) with the convenience of purchasing whatever they want at any time and from any place, and (2) its sales business operators (i.e. WELLNET's direct customers) with the their capability of "maximizing sales opportunities" in selling products and services over the Internet. WELLNET business is comprised of the three main segments of (1) multiple payment services, (2) online business, and (3) electronic authentication services. (1) Multiple Payment Services
"Accounted for 92.8% of total sales or ¥7,056 million (FY6/14)"
 The Company derives sales from fees received for the initial setup, basic monthly fees, and commissions per each transaction. In addition, initial investments required by the merchants are kept low because fees are based on the dual system of fixed and variable rates. ① E-Billing (Electronic Payment) Service
Unlike conventional billing, e-billing can make settlements without invoice creation and mailing. Customers can pay bills using cash at KIOSK terminals interconnected WELLNET server, POS registers and ATMs, in addition to online banking, credit cards, electronic money, etc.
<How to use each of the methods>
◎ KIOSK TerminalsConsumers input a bill payment code issued at the time of purchase of products or services over the Internet into a kiosk terminal. After confirming details of the purchase provided on the screen of the terminal a bar code invoice is printed out at the terminal. The customer takes the invoice to the cash register and makes payment. ◎ POS Register and ATMs There is a function at POS registers that allows customers to use touch panel displays to electronically input invoice numbers to pay bills using cash or bank account cards. A similar process is available using bank ATMs. <Advantages and Characteristics>
 The ability to create invoices and payment receipts, eliminating the mailing process and reducing costs, and the provision of one stop bill payment services that allows real time electronic invoice and bill payment functions by connecting to only a single company.Merchants are not required to develop various systems for each bill payment channel (Convenience stores, banks, post offices), and can easily provide bill payment settlement services to customers by entering into an agreement with WELLNET.WELLNET provides information processing module free of charge.WELLNET develops the most up-to-date payment systems, eliminating the need for merchants to develop their own systems.WELLNET's systems account for various changes including late charges, additional purchases or other factors in "real time" to ensure that the most up-to-date payment can be made.This payment service was launched in May 2000, and has been introduced by many major domestic airline, express bus, power, and mail order companies.② Billing (Payment/Invoices at Convenience Stores) Services
A: Convenience store bill payment serviceWELLNET's bar code payment invoice issuance system and accounts receivable recovery via convenience store consigned bill payment service. WELLNET's bar code payment invoice system available at convenience stores and post offices uses an internally developed payment receipt issuance and payment information processing software called "ConPay Kun" to allow merchants to easily print out invoices and receipts, easily process payment information and make ledger notes of payment receipt. Payment information is transmitted on the next business day after the payment is made (For payment at post offices, two business days), and automatically makes ledger notes of the payment. Currently, bills for mail order sales, fuel and other expenses can be paid in arrears using this system. <Advantages and Characteristics>
Payments can be made 24 hours a day, 365 days a year at nationwide convenience stores (Available at 16 different convenience store chains as of December 2014), relieving bill paying customers from the need to rush to post offices and banks during normal business hours.The packaged software "ConPay Kun" is provided free of charge, allowing merchants to begin operating the payment systems within one month of application.Merchants can print out their own bill payment receipts, and avoid leakage of customer information because the payment information is based on numeric bar code information only.WELLNET provides total comprehensive bill payment issuance and payment settlement support services including consigned bar code invoice payment printing and mailing functions, payment confirmation, and payment ledger note. In particular, its bill payment services are used commonly for payment of services that do not entail shipment of goods (gas bills, various membership fees). In addition, automatic payment and other information receipt services (Invoice issuance, payment service packaged software "Tokoro Kun") are also provided. ③ Cash transfer service to the bank account
This service allows merchants to use the Internet to efficiently make payments to customers for reasons such as refunds for cancellations. WELLNET operates a dedicated website that allows consumers to use an ID received from the merchant and to input their own bank account information for merchants to make payments to.
<Advantages and Characteristics>
The ability of consumers to input their own bank account information and automatic processing of this information allows merchants to reduce their work load by eliminating the need to input account information.Increase customer satisfaction by allowing merchants to make payment of refunds within the same day.Eliminates the need for merchants to develop their own refund systems.Eliminates the need to retain bank account information of customers and reduces the risk of leakage of personal information.④ Cash receipt (Transfer) service at Convenience Stores
As with the Cash transfer service to the bank account, this service concerns refunds when consumers cancel an order from a merchant. Unlike the Cash transfer service to the bank account, this service requires no bank account.The consumer inputs a cash pickup number and ID (provided by the merchant) into a Lawson convenience store "Loppi" multimedia terminal, which issues a cash exchange ticket, and this cash exchange ticket can be exchanged for cash at the register. <Advantages and Characteristics>
Merchants can avoid risks related to possessing customer bank account dataCost reduction due to no handing charges of postal transfers or bank transfersSmooth refunds with no risk of errors in handling bank account information⑤ Other Services
Multiple payment services can be customized to match the needs of individual merchants and consigned operational support services can also be provided.
(2) Online Services Business
"Accounted for 6.6% of total sales or ¥500 million (FY6/14)"
① PIN Online Sales Service
An online service linking WELLNET servers to POS registers and KIOSK terminals at convenience stores for the sale of cellular telephone, international telephone, electronic money and other prepaid cards. The ability to buy prepaid cards online eliminates the need to go to stores in advance to make purchases.
② Prepaid Gift Card Sales Service
Gift cards are sold at the Gift Card Mall installed in convenience stores. By activating the PIN at the POS register, the gift card becomes usable for purchasing games or music.
<Advantages and Characteristics>
Online sales eliminate the need to physically stock cards in advance. Stocking of stock cards right at the time of sale contributes to greatly improved cash flow and preventing opportunity losses resulting from a shortage of inventory. The easier adjustment in the volume and lineup of cards is among many other advantages of online systems.③ Various Application Services
The kiosk terminals located at convenience stores allow users to fill out various applications for Japanese character proficiency tests, English language proficiency tests, university entrance examinations, and other various application forms. The terminals provide one-stop comprehensive services by allowing for not only application but also payment of these various applications.
(3) Electronic Authentication Services
"Accounted for 0.6% of total sales or ¥43 million (FY6/14)"
① Electronic Ticket Service
A system that allows two dimensional codes displayed on smartphones and other cellular telephone displays to be used as tickets. When combined with the multiple payment service, the system allows customers to complete the entire process of application, purchase, and receipt of tickets electronically over their smartphone and other cellular telephones and personal computers. When consumers complete the multiple payment service over the Internet for tickets reservations, they will receive an email at their cellular telephone. By accessing the url listed in the email, they can acquire a two dimensional code which can be used in place of a ticket for entrance to the event. <Advantages and Characteristics>
Eliminates the need to issue and mail physical tickets, coupons, and membership cards.The ability to provide reservations and issue tickets online allows promoters of an event to sell tickets until the last minute before the event.The paperless solution is more environmentally friendly.Electronic records of event participants allows for easy use of entrance data for marketing purposes.② "SUPERSUB" Service
An online ticket solution that provides one-stop, comprehensive services ranging from ticket issuance, payment, and authentication functions.This system eliminates the need for merchants to develop individual systems that connect to servers, allowing for easy use by not only merchants but also individuals holding events. This system was launched in June 2012 aiming at increasing the number of customers, in addition to the existing large clients such as airlines and bus companies, based on its efficient and low-cost strategy. <Advantages and Characteristics>
Event organizers can create web pages for their events as to their ticket reservation, application and sales, simply by entering basic information relating to the events such as ticket pricing, location, date of the event, etc. into the registration page (Currently only available to PCs).Simply linking the above web pages to the organizer's event page will enable the launch of ticket sales.Customers seeking to participate in an event can purchase tickets via PCs, smartphones, and cellular telephones.The tickets use QR codes and special applications will be used for authentication of these codes for entry to events. The system allows for smooth operations at events through accurate authentication.Similar to multiple payment services, this service provides a multitude of various payment settlement methods. The system can be launched within three weeks from application for ticket through installment of the system to the sales of tickets.There are no initial costs or basic monthly fees. In exchange, a commission of 5% of ticket sales is collected to help keep operational costs extremely low. As mentioned later, WELLNET has a target for fiscal year June 2016 of operating profit of ¥2,000 million and ROE of 15%. Equity capital at the end of fiscal year June 2014 was ¥8,156 million, with net profit for the year of ¥913 million. With ¥456 million, 50% of the ¥913 million, coming from equity capital, equity capital becomes ¥7,700 million. WELLNET explains that passing on all profit this year and the next means equity capital cannot increase, so if operating profit is ¥2,000 million in fiscal year June 2016 then net profit for the year will be estimated to be approximately ¥1,200 million, with an ROE of approximately 15%. |
| Characteristics and Strengths |
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①Strong Track Record of Implementations, Strong Customer Base
WELLNET's multiple payment service has developed a highly favorable reputation for its ability to eliminate development expenses at the time of their implementation and the need to form contracts with each payment institution. WELLNET's service has been introduced to the leading companies in each industry as described below.One of WELLNET's largest assets is the highly favorable reputation received from airlines and bus companies for their system's real time capabilities. It is this strong customer base that lies at the core of its highly favorable reputation, which is considered to be an important "non-visible asset".  ②Corporate DNA: Always Taking on New Challenges
E-Billing Service, Billing Service, various money transfer services, cellular telephone ticket service and other services and systems developed by WELLNET, in almost all the cases, represent the first applications of their kind to be commercialized within Japan.Furthermore, the above implementation examples of systems are validation of their superiority. As WELLNET is not an affiliate or subsidiary of a large company, it started out without large amounts of business resources, including money, people and assets. Despite this fact, the spirit of "always taking on new challenges" engrained in the corporate DNA of WELLNET allowed it to become the "de facto standard setter" in electronic bill payments. President Miyazawa believes that the meaning and appeal of business is "to continue to believe in your own ability, to envision and take on the risk of developing structures that would be convenient to have, and to provide them in tangible, readily available forms." Moreover, in our interview, Mr. Miyazawa also said that "the reason for our Company to exist is to come up with systems that only we can create." Since WELLNET is a small company with less than 80 employees, keeping up the spirit of taking on new challenges engrained in its corporate DNA and the ideal represented in its corporate principle of "WELLNET Arete" (which will be described below) seem to be vital to the company's existence. |
| The First Half of Fiscal Year June 2015 Earnings Results |
 Sales and Profit Increase and Exceed Plans, Supported by Multiple Payment Service
Sales rose by 14.1% to ¥4,200 million compared to the same period of the previous year. This growth was continuously led by the multiple payment service, supported by the expansion of the electronic commerce (EC) market.
The cost for data centers thus far was divided into COGS and SG&A. But from this fiscal period on, the whole cost will be posted as a consolidated category of COGS. And also, PIN sales, with higher margin in online business, declined. These changes caused COGS to rise by around 20% and gross profit rate to drop by 3.6 points, but meanwhile, SG&A decreased by 17.0%, and operating profit increased by 14.1% to ¥900 million. Operating profit rate is 21.5%, unchanged from the same period of the previous year. Figures are exceeding original plans in both sales and profit.
 <Multiple Payment Service>
The multiple payment service kept showing strong growth, supported by the expansion of the electronic commerce (EC) market.Results were favorable with major airlines, low cost carriers, and regular bus companies which are WELLNET's primary clients. Ferry operators which promote implementation of non-face-to-face payment also showed favorable growth. <Online Business Service>
Sales of prepaid PIN online electronic money (for social networking services and online games) declined.On the other hand, the new gift card service, where customers activate their PIN with POS (charging money at the register at convenience stores, etc.) showed steady growth. <Electronic Authentication Service>
"Busmori ! ®", a bus IT promotion project, which was eagerly developed by WELLNET, has launched its services (details to be described below). Efforts were concentrated on expanding and making a series out of the Super Sub package that handled everything from reservation to electronic payment and printing the ticket.  Noncurrent assets decreased by ¥300 million due to the shrink of investments and other assets, and total assets increased by ¥3,300 million. With regards to liabilities, settlement deposits related to payment services grew, leading to a ¥3,200 million increase in current liabilities. Total liabilities augmented by ¥3,200 million. Net assets increased by ¥100 million. As a result, the capital ratio grew by 0.8% to 33.6% compared to 32.8% at the end of the previous fiscal year. (However, when calculating without settlement deposits related to payment services from assets and liabilities, capital ratio was 74.7% at the end of the previous fiscal year, and 73.5% at the end of this second quarter.)  (4) Topics
The development for Bus IT Promotion Solution, which is the core project of the 3-year medium term business plan, has been completed. WELLNET has concentrated its efforts upon this development of solution, which is expected to further improve the convenience of intercity express buses. ◎ "Busmori ! ®", Bus IT Promotion Solution, Has Been Released And it is in a way the culmination of the company's basic concept, which is to provide "convenient direct sales platform" that can "maximize sales opportunities."   "Busmori ! NAVI", a smartphone route search application for bus users "Busmori ! NAVI" is a smartphone app which solves such a situation by directly connecting "bus companies looking for the lost passengers" with "passengers looking for the right bus to take". It's a collaborative platform for which WELLNET developed the system and manages the operation, and bus companies provide information such as schedule or timetable. Users download "Busmori ! NAVI" on their smartphones and search the route by specifying current location and destination using the map on the screen. Then it will show which bus stop to get on at and how to get there, and which stop to get off at and how to get to the destination. Tickets for intercity express buses can be purchased by using this application (currently only the Chuo Kosoku Bus Shinjuku-Matsumoto Line is supported). "Busmori ! NAVI" will make "only-physically-visible" buses "actually visible" and is expected to increase the number of bus users. "Busmori! MONTA" for bus companies, a real-time management service of express bus reservation status① Electronic Seating Chart:shows availability of buses in operation.
② Ticket Sale: shows the fare for a specific route traveled when a passenger gets on the bus without prior payment.
③ Ticket Verification:verifies the ticket of the passenger, then registers it online and updates the booking status.
  Furthermore, expansion of app users enables to collect huge and diverse user data. Then WELLNET can provide bus companies with useful data and information for more effective operation, which will lead to establish competitive advantage against potential new entries of rival companies. |
| Fiscal Year June 2015 Earnings Estimates |
 No Change in Sales Estimate. Expected Modest Increase in Sales and Profit. Returning 100% of ¥900 Million Net Profit to Shareholders.
Sales are expected to rise by 7.9% year-over-year to ¥8,200 million. Despite continued decreased income from online business, favorable growth is expected in the core multiple payment service, primarily with major clients such as airlines and bus companies.Gross profit will decrease due to change in cost accounting and decreased PIN sales, but operating profit is estimated to increase by 5.2% by reducing SG&A expenses with the decreased outsourcing fees of approximately ¥300 million yearly due to the development system in Sapporo being reformed from emphasizing speed to improving competitiveness and efficiency and converting to self-manufacture. Following the dividend policy of the 3-year medium term business plan, the entirety of the ¥925 million net profit is scheduled to be returned to shareholders. With a dividend payout ratio of 50%, dividends per share will increase by ¥1 to ¥48 per share. All remaining profit will be used to purchase and retire treasury stock.  (3) Estimates of the 3-Year Medium Term Business Plan
In the 3-year medium term business plan, WELLNET has a target of operating profit of ¥1,550 million for fiscal year June 2015, and ¥2,000 million for June 2016. For fiscal year June 2016, operating profit of ¥1,750 million is almost plausible currently by focusing on expanding existing business and gaining more profit from payment transaction. The entire company is trying to cover the remaining ¥250 million with new business scheme and Kaizen. |
| Interview with President Miyazawa |
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President Kazuhiro Miyazawa, now 55 years old, was born in February 1960. In March 1996 he joined Ichitaka Takahashi Co., Ltd, the parent company of WELLNET, and became the sales manager and board director of WELLNET in September of the same year. He has been the president of WELLNET since September 2009. The president of Ichitaka Takahashi at that time put great stress on giving chance to employees who were earnest and passionate in aiming at ambitious goals. But Ichitaka Takahashi, being a listed company and recording a stable profit, was too established to start up a new business. That's why WELLNET was founded. Miyazawa was given three years to get the new business on track. He fully exercised his characteristic vitality as a sales manager, and successfully launched "convenience store consigned bill payment settlement service" in 1997. <The Progression of the 3-Year Medium Term Business Plan>
 The development for Bus IT Promotion Solution was slightly behind the schedule, but we successfully released Japan's first ever service. Now it's limited to the Shinjuku-Matsumoto line, but we cover service lines of intercity express buses all around the nation, except for Hokkaido and remote islands. So we will promote this solution for many other bus companies and contribute to their corporate management.We expect to be able to provide a proposal on optimizing management resources for bus companies through effective bus service operation. It will be achieved especially by industry-academia-government collaboration of analysis and verification of big data that we collect through providing service. We will provide our clients new values and avert price competition. In that way we compete against new entries from venture companies which may provide similar service with lower prices.As to the operating profit for fiscal year June 2016, we still have 250 million yen to go, and we try to achieve 100 million of it for the time being. The goal is ambitious but it's worth a try. We will keep moving forward and make it even bigger business step by step.We are slightly delayed in "Development and Provision of Consumer Services", which is another goal of the 3-year medium term business plan. We will embark on it in April. The core settlement services we have thus far provided are mainly fee payment collection models for merchants. In addition to these services, we will provide bill payment systems in the form of convenient concierge functions added as smartphone applications that take into consideration the needs of consumers, i.e. the payer.<Instilling Corporate Philosophy and Developing Human Resources>
I have inherited challenging spirit of Ichitaka Takahashi in my DNA. It is my duty to pass it down to my employees and let it take root.In order to achieve that, we have to nurture responsible personnel who can be trusted with new business model. That is why I personally have charge of the development of new business. Providing experience is the key to develop human resources leading the next generation. So we pick up prospective employees and let them have a position of responsibility for six to twelve months as "trial period". Their salary is the same but they take part in management with staff members under them, and we assess their suitability for leaders.Many of them develop strong sense of responsibility through this process and look very promising. Others prefer to be engaged in creating field rather than management. So we put the right people in the right place to stimulate their growth.To instill the venture spirit of WELLNET, good communication with my employees is vital. So about twice a month I visit our Sapporo office, where about 70% of all employees work, and grab every opportunity to discuss with them.<WELLNET in its ideal form>
As described in WELLNET Arete, our corporate manifesto that defines our fundamental policy and what ideal employees are, we will never forget venture spirit and will keep contributing to the society by creating something very useful, to which people would cry, "This is what I wanted!"At the same time, we have identified "self-manufacture" as one of our major agendas and are actively recruiting human resources. That is because recently we tend to be relying more on outsourcing and losing speedy in-house reaction due to rapid business expansion and increase in development procedures.With economic recovery, it is reportedly getting tougher to secure human resources. But WELLNET is popular among job seekers in that we are not a contractor. And also, many people are interested in working in Hokkaido. And lot of people who left Hokkaido hope to come back and gain an employment in their hometown. Therefore, our recruitment is working out well.The most important thing is how to create additional value. Our ideal is to be No. 1 in "productivity per capita". |
| Conclusions |
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However, one day when he was 21 years old, he was lost in the mountain due to improper outfit (he says he "took the mountain lightly"). He was stranded the whole day, and the word "death" came to his mind over and over. Fortunately he survived with the support of his climbing partner, and that was his turning point. He came to think, "Life is strong. Then, why don't you venture and chase up your dream without fearing the risk?". Another useful mountain experience is that alpine accidents often happen when climbers have passed through the most dangerous area. "This is another similarity with company management", says Mr. Miyazawa. Let us note the next move from WELLNET and President Miyazawa, who holds combined "boldness and sensitivity" in his quiet mind. <Reference : 3-Year Medium-Term Business Plan>
◎ 3-Year Medium-Term Business Plan Growth Strategy
The two wheels supporting growth: ① Establishing a business scheme to support the next generation, and ② Kaizen (expanding functions, improving system stability, increasing cost-effectiveness=building a strong corporation).
◎ Structure and Governance to Achieve Growth Scenario
In order to quickly and powerfully proceed with the two wheels of the growth strategy ("business development" and "kaizen"), related projects will be carried out under direct supervision of the CEO. In addition to active recruitment of young employees, necessary personnel who share ideals will be sought outside of the company as well in order to develop a structure to accomplish WELLNET's goals, with stock options and other policies effective to increase motivation for meeting goals. Renewed effort is also being put into employee education, with the WELLNET Arete, which defines the raison d'être of the company and action guidelines for employees, and which has been implementing effective governance. (Arete is a Greek term for "virtue," "superior being," or "predominant being.")  WELLNET Alete Contributing to the society by creating "mechanisms that are convenient to have"Proposing and spreading those "mechanisms" throughout the worldAllocating profit to employees, shareholders and investments in the future WELLNET Employee AleteI will avoid the pitfalls of stereotypes. I will think freely.I will think on my own first, and then propose the best solution for all.I will promote open discussions while "the one who should decide" will decide and the entire organization will put it into action.I will always clearly define the factors of "who" will do "what" by "when."I will repeat the process of validation and improvement.I will make honest, accurate and quick reports.I will conduct business after documenting services to be provided and compensation to be received. I will hold rectitude as my motto and I will accept neither entertainment nor gifts.◎ Numerical Targets
Strategic investment will be carried out in the first and second years, with a goal of ¥2,000 million operating profit for fiscal year June 2016, the final year of the plan.The target for fiscal year June 2014 was ¥1,450 million, but the results surpassed the target and reached ¥1,470 million. This demonstrates how the entire company is working together to reach its targets.  ◎ Return to Shareholders
◯ Return 100% of Profits During Midterm Business Plan to Shareholders
Adequate amounts of cash on hand will be maintained as a source for maintaining the Company's credibility, fortifying core businesses, and developing new business. But with adequate financial soundness already achieved, WELLNET will return an even higher level, that is, 100% of profits to its shareholders as defined in its midterm business plan. Specifically, the following two measures will be implemented.
A) With the exception of special factors, WELLNET will endeavor to achieve a stable and high level of dividend payment with the target payout ratio established in the midterm business plan to be raised from 33.3% to 50%.
B) 100% of profits are expected to be returned to shareholders with after-tax profits left remaining after paying dividends expected to be used for the acquisition and retirement of treasury shares.
With the exception of treasury shares owned to be used as stock for sale and for "J-ESOP" stock trust, newly acquired treasury shares will either be retired or used as shares for stock options issued as performance-based compensation. ◯ Return On Equity Target: 15% (FY6/16)
WELLNET seeks to raise its return on equity and earnings per share, in addition to steadfastly promoting a growth strategy, strengthening its earnings, increasing its dividends and acquiring and retiring treasury shares.
Disclaimer
This report is intended solely for information purposes, and is not intended as a solicitation to invest in the shares of this company. The information and opinions contained within this report are based on data made publicly available by the Company, and comes from sources that we judge to be reliable. However we cannot guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness or validity of said information and or opinions, nor do we bear any responsibility for the same. All rights pertaining to this report belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are the responsibility of the individual and should be made only after proper consideration. Copyright(C) 2015, All Rights Reserved by Investment Bridge Co., Ltd. |
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