THE JAPAN STEEL WORKS, LTD.
5631・Prime Market・Machinery
Governance
The company has adopted the Audit & Supervisory Board system, comprising 10 directors (of which 5 are outside directors, a 50% outside ratio) and 4 Audit & Supervisory Board members (of which 2 are outside members). It has established a Nomination Advisory Committee and a Compensation Advisory Committee, each chaired by an outside director, as advisory bodies to the Board of Directors, ensuring the fairness and transparency of the nomination and compensation processes.
Risk Management
The company has established a company-wide risk management framework based on a three-lines model, under which the Risk Management Committee selects, deliberates on, and evaluates material risks, and reports periodically to the Board of Directors and the Management Strategy Meeting. Functional risks such as quality, health and safety, the environment, information security, and security export control are managed by the respective responsible departments through committees and regulations, with the internal audit department conducting monitoring and evaluation.
Shareholder Returns
During the mid-term management plan "JGP2028" period, the company targets a consolidated dividend payout ratio of 35% or higher, with dividends implemented subject to a DOE (dividend on equity) floor of 2.5%. The annual dividend for FY2026 (ending March 2026) is ¥92 per share (interim ¥44 + year-end ¥48), with a payout ratio of 35.2%. For FY2027 (ending March 2027), an annual dividend of ¥92 (interim ¥46 + year-end ¥46) is planned.
Dividend Policy
The basic policy is to implement stable and continuous dividends and to enhance them over time. During the mid-term management plan "JGP2028" period, the company targets a consolidated dividend payout ratio of 35% or higher, with dividends implemented subject to a DOE (consolidated dividend on equity) floor of 2.5%. The year-end dividend is determined by the general meeting of shareholders, and the interim dividend is determined by the Board of Directors. The annual dividend for FY2026 (ending March 2026) is ¥92 per share (interim ¥44, year-end ¥48), with total dividends of ¥6,772 million, a payout ratio of 35.2%, and a dividend-to-net-assets ratio of 3.3%. For FY2027 (ending March 2027), an annual dividend of ¥92 (interim ¥46, year-end ¥46) is planned, with a payout ratio of 35.6% expected.
ESG
In June 2022, the company announced its endorsement of the TCFD and, centered on the ESG Promotion Committee and ESG Promotion Office, is advancing climate change response (achieving its target of a 45% reduction in CO₂ emissions from the base year for Scope 1 and 2 one year ahead of schedule) as well as plastic resource circulation and the expansion of products contributing to a low-carbon society. In terms of human capital, the company has designated "Strengthening of Human Capital and DEI&B" as a materiality item, setting indicators such as a target of 20% or more for the ratio of female new graduate hires in career-track positions (target for FY2029, ending March 2029) and a 98.8% take-up rate for male childcare leave, etc. (actual result for FY2026, ending March 2026), and is strengthening its initiatives accordingly.
Last updated: June 19, 2026