NICHIRYOKU CO.,LTD.
7578・Standard Market・Retail Trade
Governance
Company with a board of corporate auditors. Of the 9 directors, 4 are outside directors (outside director ratio of approximately 44%), and of the 3 corporate auditors, 2 are outside corporate auditors. The Board of Directors meets once a month (13 times per year). A Compliance Committee chaired by the Representative Director and President has been established. No Nomination Committee or Compensation Committee has been confirmed to exist, but the company has adopted a structure in which outside directors are involved in and oversee decisions regarding officer compensation.
Risk Management
The company has established Risk Management Regulations, Crisis Management Regulations, Hotline Regulations, Internal Audit Regulations, and other rules, with the Compliance Committee, chaired by the President and Representative Director, overseeing risk management and compliance across all departments. A system has been put in place to establish a task force headquarters, headed by the President and Representative Director, in the event of an emergency. The Sustainability Committee regularly monitors risks related to "People," "Environment," and "Society," and important risks are deliberated and resolved upon by the Board of Directors as corporate risks. On the financial front, cash flow has been under pressure due to the fulfillment of debt guarantees stemming from sluggish ossuary sales; the company has agreed with its financial institutions to defer repayments, and is addressing the situation through the liquidation of fixed assets and a review of sales measures.
Shareholder Returns
For the fiscal year under review, the Company prioritized securing liquidity on hand, improving its financial condition, and securing funds for business investment, and therefore forwent the year-end dividend (no dividend). The basic policy is to maintain internal reserves while continuing a year-end dividend once per year, but no dividend was paid this period. Under the Articles of Incorporation, treasury share repurchases may be resolved by the Board of Directors, but there is no mention of any repurchase being carried out.
Dividend Policy
The basic policy is to continue paying a year-end dividend (once per year) while securing internal reserves to strengthen the Company's financial position and support future business development. For the fiscal year under review, the Company determined that securing liquidity on hand, improving its financial condition, and securing business funds for investment and promotional activities aimed at expanding sales were the top priorities, and accordingly forwent the year-end dividend.
ESG
The company has established a Sustainability Committee under three themes: "People," "Environment," and "Society." It is advancing human capital management, targeting by March 2030 a female management ratio of 35%, a female employee ratio of 45%, and a male childcare leave uptake rate of 80% (current-period actuals: female management ratio 28%, female employees 47%, male childcare leave uptake rate 1%). On the environmental front, the company is promoting reduction of plastic waste, paperlessization, and greening of cemeteries. On the social front, it is promoting end-of-life planning (shukatsu) seminars and barrier-free renovation of memorial facilities. No quantitative disclosure regarding climate change has been confirmed.
Last updated: June 29, 2026