Intending to Stimulate Discussion on Fundamental Structural ReformsEach year, we evaluate the effectiveness of the Company’s governance system and introduce specific measures to address problematic issues and make steady improvements. I believe the governance system is functioning effectively. For instance, we hold separate Business Deliberation Council meetings to consider important investment projects that cannot be discussed adequately at Board of Directors’ meet-ings. One challenge that remains, however, is to periodically Disseminating Knowledge to Ensure Management with Awareness of the Cost of Capital and the Share Price An urgent need exists for Japanese companies to realize management that is sensitive to the cost of capital and their corporate share price. At LINTEC, the Business Deliberation Council and the Nomination and Compensation Committee hold in-depth discussions about where the Company should invest its limited capital in order to grow stronger and discuss returns from M&A deals and large capital Providing Valuable Insights to the Board of Directors as an Accounting and Tax Expert The Company has a stable financial base and a high equity ratio. On the other hand, return on equity and the price-book ratio are not particularly high. If this situation persists, the Company may face issues with maintaining an awareness of cost of capital and prioritizing investment efficiency. In light of this situation, I believe the Company should more clearly check that the return on capital for each business exceeds its cost of capital, and to link these findings to proposals for structural reforms and other improvements. Although the Board of Directors has discussed this issue several times, the Company remains highly reliant on specific businesses to generate profits. I intend to stimulate further discussions about fundamental structural reforms. April 2024 marked the start of a new medium-term busi-ness plan to help realize the Company’s long-term vision. LDX 2030 is fundamental to this vision, and making steady progress on this digital transformation (DX) promotion proj-ect and ensuring sufficient personnel support will be essen-tial to achieving the Company’s management objectives. My expertise lies in building databases for sharing information and providing DX training that can help drive intrinsic moti-vation. I look forward to providing any potentially useful advice to the Board of Directors.investments. By attending Sustainability Committee meet-ings, I help cultivate an atmosphere in which we can monitor the progress of the Company’s efforts to realize a recycling-oriented society. The new medium-term management plan outlines a number of specific individual measures and development projects. These efforts are essential for further increasing the Company’s competitiveness. To this end, I believe the Company should actively promote M&A and capital invest-ments. Of course, there is no guarantee that every invest-ment will work out. We need to confirm that the level of risk is appropriate to each individual project and that the prob-ability of return has been considered. I intend to speak at Board and other meetings based on my experience as legal counsel in various manufacturing industries. My primary focus will be on whether deliberations have been reasonable and appropriate.incorporate metrics such as cost of capital into investment project assessment criteria and rigorously examine the economic rationale for investment along with indicators such as net present value and internal rate of return. Business valuation and strategic decision-making are critical to global transactions. As an accounting and tax expert, I aim to provide the Board of Directors with valuable insights based on my skills in corporate valuation and finan-cial analysis. In particular, I will help with incorporating tax implications and taking advantage of programs that promote corporate R&D investment. In addition, I help identify a wide range of risks that should be considered in global transac-tions, such as foreign exchange risks, interest rate risks, and geopolitical risks, and assist in strengthening the Company’s risk management system and internal controls.Outside DirectorOutside Director / Audit & Supervisory Committee MemberOutside Director / Audit & Supervisory Committee Member55Akiko OkushimaKanako OsawaShigeru Sugimoto
元のページ ../index.html#57