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I will explain financial capital strategy.
Our financial and capital strategy is to achieve profit growth with an awareness of efficiency while maintaining financial discipline through control of assets, liabilities, and equities, with the aim of improving ROE and EPS growth, and ultimately increasing shareholder value and corporate value.
In terms of asset control, the challenge is to improve the efficiency of existing businesses and optimize the business portfolio.
As specific measures to improve the efficiency of existing businesses, in the asset-utilizing business, we will work to expand the condominium business, cyclical reinvestment business, and high-efficiency business, steadily operate large-scale development projects, utilize external capital and increase fee income, replace the asset portfolio, and sell low-profit assets.
In the human capital-utilizing business, as the scale grows, we will improve efficiency by moving away from the labor-intensive type.
In controlling liabilities and equity, we will build a financial base that can withstand a downturn in market conditions while maintaining financial discipline and improve our rating position for the purpose of smooth fund procurement. In the future, we will improve the debt-equity ratio by building up periodic profits.
Our basic policy for returning profits to shareholders is to achieve EPS growth through reinvestment in growth, but our immediate policy is to raise the dividend payout ratio to 30% or more and to maintain stable dividends.
Through the above measures, we will improve our ROE. ROE for the previous fiscal year dropped significantly to 3.7% due to the impact of COVID-19, but considering the cost of shareholders' equity, we believe that ROE of 8% is a target that we should reach as soon as possible. We aim to achieve our ROE target of 8% by the mid-2020s.
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