Nikkon Holdings adopts DOE, plans JPY 40bn buyback

Nikkon Holdings announced a revised shareholder return policy, highlighted by the adoption of a dividend on equity (DOE) target of 4% or higher, replacing the previous dividend payout ratio target of 40%. While maintaining a progressive dividend policy, this shift aims to enhance capital efficiency and deliver more stable long-term returns. In addition to the DOE target, Nikkon Holdings plans to execute share buybacks of approximately JPY 40 billion by the fiscal year ending March 31, 2029. The buyback will be funded through proceeds from asset sales, balance sheet improvements, and growing cash flows from business operations. The company intends to cancel treasury shares not earmarked for stock compensation or M&A activities, maintaining a policy of not holding more than 5% of issued shares as treasury stock. This policy change will be effective from the fiscal year ending March 31, 2026.