ISTYLE INC. Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
September 26, 2022 | |
To whom it may concern, | |
Company name | istyle Inc. |
Representative | Tetsuro Yoshimatsu, Chairperson and CEO |
(Stock Exchange Code: 3660 Prime Market) | |
Contact | Kei Sugawara, Vice Chairperson and CFO |
(TEL.03-6161-3660) |
Plan for Compliance with the Continued Listing Requirements
As of June 30, 2022, istyle Inc. ("the Company") did not meet the Continued Listing Requirements of the Prime Market, and therefore, we have prepared a plan to comply with the listing requirements as described below.
1. Compliance status with Continued Listing Requirements and Planning Period
The Company's compliance status with the Continued Listing Requirements for the Prime Market as of June 30, 2022 is as follows. Although the Tradable Share Market Cap did not meet the requirements, various initiatives are underway, as described below, to comply with the listing requirements by June 30, 2023.
No. of | No. of Tradable | Tradable Share | Tradable Share | Shareholder | |||||||
Shareholders | Shares | Market Cap | Ratio | Equity | |||||||
Company status | |||||||||||
16,422 | 491,171 units | JPY 9.68 bn | 66.2% | positive | |||||||
(as of the base | |||||||||||
date) | shareholders | ||||||||||
Continued | At least 20,000 | ||||||||||
Listing | At least 800 | JPY 10 bn | At least 35.0% | positive | |||||||
units | |||||||||||
Requirements | shareholders | ||||||||||
Item described in | 〇 | ||||||||||
the Plan | |||||||||||
Planning Period | June 30, 2023 | ||||||||||
- The Company's compliance status is calculated based on the distribution of the Company's share
certificates, etc. as known by the Tokyo Stock Exchange (TSE) as of June 30, 2022. The shareholder equity figure is based on the financial statements in the Summary of Financial Results for the fiscal year ended June 30, 2022, and the TSE will determine the compliance status based on the annual securities report to be submitted.
2. Basic Policy for Compliance with Continued Listing Requirements
We believe that it is essential for the Company to maintain its listing on the Prime Market, as its concept,
"For companies which have appropriate levels of market capitalization (liquidity) to be investment instruments for many institutional investors, keep a higher quality of corporate governance, and commit to sustainable growth and improvement of medium- to long-term corporate value, putting constructive dialogue with investors at the center" is indeed our vision for the Company and how we are to communicate with investors. Therefore, we will aim to meet the Continued Listing Requirements by increasing the Tradable Shares Market Capitalization.
1
3. Issues and Initiatives for Item that Did Not Meet the Continued Listing Requirements
The item that fell short of the Continued Listing Requirements was the Tradable Share Market Cap. Of the market capitalization and number of tradable shares, which are the components of this item, we will improve the market capitalization in particular by improving business performance through business growth, strengthening corporate governance, and further promoting IR activities.
The average closing price for the three months prior to the base date used to calculate the Tradable Share Market Cap was 197.03 yen, while the average closing price for the past five years was 661.46 yen and the closing price on the day before the submission of this plan was 548 yen. Regarding this most recent trend, the share price has been on an upward trend since the business day following August 15, 2022, when the Company announced its "Business Plan for the Fiscal Year Ending June 30, 2023 and Future Business Policies," etc. as described in (1) below.
Although we expect to meet the Continued Listing Requirements by maintaining the most recent share price level until June 30, 2023, the end of the fiscal year, we will promote the following initiatives with the aim of further increasing corporate value.
(1) Improve Business Performance through Business Growth
For details, please refer to the attached document "Business Plan for the Fiscal Year Ending June 30, 2023 and Future Business Policies".
(2) Strengthen Corporate Governance
We recognize that building long-term relationships of trust with shareholders is an important management issue, and we are focusing on improving corporate governance. In particular, we aim to promote and enhance our corporate value in non-financial aspects by improving the following items.
- Enhance Diversity Further (Corporate Governance Code, Supplementary Principle 2.4.1)
While both the ratio of female employees and the ratio of female managers are high, the ratio of female managers is low compared to the ratio of female employees. In order to improve this situation, we will set targets and strive to diversify work styles and enhance internal systems.
- Promote Climate-related Information Disclosure We will promote this topic in line with the TCFD
(Corporate Governance Code, Supplementary Principle 3.1.1)
framework for disclosure by June 2024.
- Strengthen Governance Through a Joint Representation System (Corporate Governance Code, General Principle 4) In order to enable decision-making on management strategies with a more holistic view of the company, we will strengthen governance by appointing two representative directors to share management and business execution responsibilities.
- Promote IR Activities Further
In order to encourage more investors to consider investing in our shares recognizing our strengths, business policies, and future growth potential, we will further promote dialogue with the market, focusing on the following initiatives.
- Strengthen our approach to overseas investors by enhancing our English language tools
- Enhance ESG information
- Strengthen collaboration with the PR department
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Business Plans for FY2023 &
Future Business Policies
Sep. 26. 2022 | |
istyle Inc. | |
Excerpt from "Presentation Materials for FY2022 & Business Plans for FY2023" | Stock code: 3660 |
(announced on August 15, 2022) | |
Business Plans for FY2023
© istyle Inc. | 1 |
Business plan for FY23 / Outline
- Aiming for further sales growth and full-year profitability
(Unite: Million yen)
Net sales
Operating
Income
Ordinary
Income
Net income attributable to the owners of the parent company
FY23
(Plan)
40,000
500
170
30
YoY
116.3%
+953
+763
+601
FY22
(Result)
34,401
-453
-593
-571
© istyle Inc. | 2 |
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Istyle Inc. published this content on 26 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 September 2022 06:14:01 UTC.
