On May 14, 2024, Komeri Co.,Ltd. announced in its press release that it had received a shareholder proposal from Nippon Value Investors KK for its 63rd Annual General Meeting of Shareholders. The proposals are as follows, i) Partial amendment to the Articles of Incorporation (Decision-making body for dividends from surplus, etc.), ii) Appropriation of surplus. The company has opposed the proposals for the following reasons, i) The Shareholder Proposal is a proposal from a short-term perspective that does not take into account the business environment and business specificity in which the Group is operating, and the company believes that the flexibility and mobility of the Group's future business operations and capital policy will be undermined and will not benefit shareholders, ii) The shareholder proposal calls for a dividend of 50% of net profit, i.e. a dividend payout ratio of 50%.
This is focused on short-term shareholder returns and could undermine the Group's growth base investment resources for its medium- and long-term growth strategy, thereby reducing the Group's competitiveness. The Company believes that increasing the Group's corporate value over the medium to long term while maintaining a balance between stable and continuous dividends to shareholders, investment in growth platforms to strengthen the management base and retained earnings will contribute to increasing shareholder returns.
KOMERI CO.,LTD. is a Japan-based company mainly engaged in the home center business. The Company is engaged in the sale of hardware, tools and construction materials, as well as the green products such as horticulture, plants and agricultural materials. The Company is engaged in the store operation of Power and Home Center, which sell life related products, and the operation of Hard & Green, which is engaged in the sale of hardware and horticulture products. The Company is also engaged in the product storage and delivery business, information processing and software development business, credit card and related business, insurance agency business, renovation work, cleaning, repair and maintenance work. It is also engaged in the delivery of fuel to group companies, the sale of liquefied petroleum gas, gasoline, kerosene and related equipment, the sale of books, and real estate leasing business.