NIPPON KODOSHI CORPORATION
3891・Standard Market・Pulp & Paper
Governance
As a company with a Board of Corporate Auditors, the company has appointed 3 outside directors (at least one-third of the Board of Directors), and has established an executive officer system and a Nomination and Compensation Committee (comprising 3 members including an independent outside director as chairperson). The company has built a highly transparent governance structure through regular monthly Board of Directors meetings (held 13 times per year, with a 98.6% attendance rate) and a Board of Corporate Auditors composed of a majority of outside auditors.
Risk Management
The company has established a risk management framework covering environment, quality, disasters and other risks, with the executive officer in charge of compliance serving as the overall responsible officer. It has formulated a BCP (Business Continuity Plan) anticipating a Nankai Trough earthquake, diversifying production sites across the three Kochi plants, the Yonago plant, and Malaysia, and operates internal audits conducted by the Internal Audit Office based on an annual plan, as well as internal and external whistleblowing hotlines.
Shareholder Returns
The company has adopted a policy targeting a consolidated payout ratio of 40% with a DOE floor of 3%. For FY2026 (ending March 2026), the annual dividend is planned to increase by ¥30 year-on-year to ¥90 per share (interim ¥40, year-end ¥50), and for FY2027 (ending March 2027), a further increase of ¥20 to ¥110 per share is planned. Payout ratio is 35.9%.
Dividend Policy
The policy is to implement stable profit distribution, targeting a consolidated payout ratio of 40% with a consolidated DOE (dividend on equity ratio) floor of 3%. Dividends are paid twice a year, as an interim dividend and a year-end dividend. The annual dividend for FY2026 (ending March 2026) is ¥90 per share (interim ¥40, year-end ¥50), an increase of ¥30 year-on-year, with a payout ratio of 35.9%. For FY2027 (ending March 2027), an annual dividend of ¥110 per share (interim ¥55, year-end ¥55) is planned, with a payout ratio expected to be 36.3%.
ESG
Under the slogan "Environmental and Health Challenge 2030," the company has established a Sustainability Committee (chaired by the Representative Director and President, meeting bimonthly) to identify and manage ESG materiality. On the environmental front, the company achieved a 28.2% reduction in Scope 1+2 CO2 emissions compared to FY2013 and a 13.7% reduction in waste sludge intensity compared to FY2022. On the social front, it achieved a lost-time injury frequency rate of 1.2, a 100% training participation rate, and a 90.5% ratio of Rank A suppliers in the CSR survey. Some indicators, such as the ratio of female managers at 4.9% (against a target of 10%), have not yet reached their targets, and the company continues to work on ongoing improvement.
Last updated: June 17, 2026