November 17th, 2015, START TODAY CO., LTD. has decided to repurchase shares of our common stock and the specific acquisition methods. Please see the timely disclosure material for details.
【 Details 】
START TODAY CO., LTD. has disclosed our corporate governance system on June 24th, 2015, and within [Principle 1-3 Basic Strategy for Capital Policy], we have announced that “The Company believes that in cases when profitability surpasses the actual cost of equity, the corporate value increases, therefore shall satisfy both our shareholders and stakeholders. Moreover, we understand the importance of acting appropriately, in view of the financial foundation as well as the investment plans. In order to realize this, we have introduced the return on equity – “ROE “as a management indicator to have efficient management. In specific terms, we will base our ROE to result as 30%, by enhancing profitability and proposing efficient use of our net assets”.
For fiscal year ending March 2015, our ROE ratio was 40.4%, and the capital adequacy ratio was 62.3%. Assuming our sustainable growth rate of 10%~15% continues until fiscal year ending March 2020, the net assets and equity ratio would increase up to 80% and effect the ROE ratio resulting under 30%. The stable cash flow creation stands as a background, though acting accountably as a listed company, we would prefer to have internal reserves needed for investments to drive future growth in the medium to long-term view, as well as having a good balanced return towards shareholders, aiming to maximize corporate value, therefore have always discussed what the most suitable capital policy would be.
For these reasons, we have decided to repurchase shares of our common stock (maximum amount of acquisition value will be 19 billion yen) believing it is appropriate and in the interests of the shareholders. We have decided the method of acquisition to be “ToSTNeT-3”.
Based on today’s closing quotations \3,885, the number of share acquisitions calculated is 4,891,000 (4.5% to the total number of shares issued). For the repurchased shares, we will immediately cancel 50% of the total acquisition number, and will keep the other 50% as treasury stock for future business strategies and capital strategies.
The bottle neck we had in order to repurchase shares of our common stock, which was “the percentage of shares held by the biggest shareholder would increase” as well as the “the low ratio of floating shares will make it difficult for us to repurchase from the market”, though have earned the permission and understanding of the biggest shareholder which is our CEO Yusaku Maezawa, and clearing the problems by having him sale some of his shares.
When this case takes place, our net assets and equity ratio shall be under 50%, and the ROE ratio shall over achieve 50% (If we reach our corporate guidance for FY 2015).