Listed Company Awards

Corporate Value Improvement Award

Update : Dec. 30, 2013

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1.About the Corporate Value Improvement Award

(1) Overview

a. Purpose To spread and promote management aimed at improving corporate value deemed desirable by TSE in its position as a market operator
b. Eligibility Listed companies with high corporate value and management practices deemed to contribute to the appeal of the TSE market, such as by improving corporate value through initiatives which consider capital cost and other investor concerns
c. Selection All domestic listed companies are eligible for selection
d. Awards 1 company, finalists are announced
e. Period Once a year

2.2nd Corporate Value Improvement Award Companies (FY2013)

Grand Prix

Marubeni Corporation was awarded the Grand Prix for FY2013.

Marubeni Corporation logo

[Company Profile]
Through its local and international network, Marubeni Corporation provides products and services in a broad range of sectors, related to food materials, food products, textiles, materials, pulp and paper, chemicals, energy, metals, machinery, finance, logistics, information technology, and infrastructure development. Their business activities involve import-export (including trades between foreign countries), domestic transactions, various service operations, domestic and overseas investments, and resource development. In accordance with a spirit grounded in "Fairness (Sei), Innovation (Shin) and Harmony (Wa)," the Marubeni Group is proudly committed to contributing to social and economic development and safeguarding the global environment by conducting fair and upright corporate activities.

Excellence Award

The following four companies received the Excellence Award in recognition of the actual implementation of outstanding management efforts toward enhancing corporate value.
(in order of code numbers).

Kirin Holdings Company, Limited (2503 : 1st Section)

Kirin Holdings Company, Limited logo

[Company Profile]
Kirin Group operates globally in the fields of alcoholic and non-alcoholic beverages, foods and pharmaceuticals, to redefine the joy of food and wellbeing. We, no less than 270 affiliates and about 40,000 group-wide people, hope to further strengthen our engagement and create new brand value together with our stakeholders through products and various activities in each community where we operate, including Japan, other parts of Asia, Oceania and Brazil, so we may continue developing communities and bringing more joy and smiles to consumers.

ANRITSU CORPORATION (6754 : 1st Section)

ANRITSU CORPORATION  logo

[Company Profile]
Since our founding in 1895, Anritsu has been actively developing businesses primarily in the information communications field. As a part of our efforts to realize a comfortable communications environment, we offer advanced measuring instruments for use in mobile and broadband services through our global customer support system and development bases in Japan, the U.S. and Europe. Anritsu is constantly striving to facilitate further growth and maximize corporate value, under our Company Philosophy of "Contribute to the development of a safe, secure, and prosperous global society by offering Original & High Level products and services with sincerity, harmony, and enthusiasm".

NAMCO BANDAI Holdings Inc. (7832 : 1st Section)

NAMCO BANDAI Holdings Inc. logo

[Company Profile]
The BANDAINAMCO Group develops entertainment products and services in a wide range of fields, including toys, home video game software, arcade game machines, network content, visual and music content, and amusement facilities. By building a strong operational foundation in the domestic market, as well as aggressively developing operations in overseas markets to secure future growth, we aim to be "The Leading Innovator in Global Entertainment."

ITOCHU Corporation (8001 : 1st Section)

ITOCHU Corporation logo

[Company Profile]
With approximately 130 bases in 66 countries, ITOCHU, one of the sogo shosha, is engaging in domestic trading, import/export, and overseas trading of various products such as Textile, Machinery, Metals&Minerals, Energy&Chemicals, Food, ICT, General Products & Realty, as well as business investment in Japan and overseas. The history of ITOCHU Corporation dates back to 1858 when the Company's founder Chubei Itoh commenced linen trading operations at Ohmi. Since then, ITOCHU has valued the spirit of "sampo yoshi" (which translates as "Good for the seller, Good for the buyer, and Good for society") and grown over 150 years.

Click here for the press release on the winner of the Corporate Value Improvement Award

3. Selection Process and Appraisal Points

(1) Selection Process

(2) Viewpoints for Selection of Finalists

Viewpoints for Selection of Finalists
*(Reference) Material for FY2013 Selection Process
PDF
[Reference]Analysis Results from Award Candidate Survey
(Analysis Assistance provided by: Shoichi Tumuraya, Associate Professor, Hitotsubashi Univeristy Graduate School of Commerce and Management)
PDF

(3) Viewpoints for Selection of winners

①Management Plan and Strategy

・Is improvement of corporate value from an investor standpoint included in management indicators?
・Are business strategies and operational frameworks in place to achieve management goals?

②Fiscal Strategy and Policies on Shareholder Returns

・Are investor viewpoints considered in fiscal strategy (new investment/withdrawal) and policies on shareholder returns?

③Communication with Shareholders and Investors

・Are investor viewpoints considered when deciding to publicize management information?

④Promotion of Corporate Value Improvement

・Do management and financial initiatives to improve corporate value permeate the whole company, and is management to improve corporate value promoted on a company-wide level?

⑤Initiatives to Improve Corporate Value and Their Results

・Have the above ①-④ actually contributed to improving corporate value?

(4) Specifically, Marubeni Corporation excelled in the following areas

Pro-active use of management indicators linked to capital cost

Marubeni Corporation monitors shareholder capital cost while setting ROE targets over such levels to at least 15%, and releases those targets in its medium-term management plans. In order to achieve this goal, it makes decisions on investment using “PATRAC,” a proprietary management index which aims for returns on risk in excess of shareholder capital cost, and “IRR,” an index based on over 100 hurdle rates set for individual cases in consideration of capital costs. As such, Marubeni Corporation is deemed to conduct management with an awareness of capital cost.

Initiatives to improve corporate value deeply permeate the organization

Marubeni Corporation also uses PATRAC for performance evaluation and decisions to withdraw from businesses. It also uses the index in company-wide performance-linked compensation schemes for both executives and general employees. The CEO himself pro-actively creates opportunities for dialogues with middle-aged and young employees regarding management to improve corporate value using management goals and PATRAC, creating an environment for effective management and organization-wide permeation of corporate value improvement initiatives.

Stability of initiatives to improve corporate value and their results

As a result of these initiatives, Marubeni Corporation has stably achieved high ROEs of 18.0%, 21.2%, and 20.7% for the past 3 years. Marubeni has been selected as a finalist for 2 years running, attesting to the stability of its initiatives to improve corporate value and their results.

4. Past Winners

Click here for past award winners.

DISCLAIMER:
This translation may be used for reference purposes only. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. This translation is subject to change without notice. Tokyo Stock Exchange, Inc. and/or Tokyo Stock Exchange Regulation shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.

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