Strengthen Wakamoto (4512 JP Equity)

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This website serves as a campaign platform for the shareholders of Wakamoto Pharmaceutical Co., Ltd. ('Wakamoto')

Summary of Shareholder Proposals for the AGM, June 2024

Distribute a dividend yielding 9% on equity, equivalent to the cost of equity, aiming to attain a PBR at >1x

Reverse separate reserves to facilitate a more flexible capital allocation

Disclose the types and numbers of laboratory animals purchased as part of enhancing transparency in animal welfare initiatives

Disclose Scope 3 greenhouse gas emissions from cross-shareholdings as a measure to address climate change risks

Disclose Annual Securities Reports (YUHO) ahead of the AGM to improve the decision-making process for exercising voting rights

Disclose 'Action on Cost of Capital-Conscious Management and Other Requests (TSE)' before the AGM

Recent Dialogues

On 27 May 2024, a letter was dispatched to the Board of Directors.

On 13 May 2024, a letter was dispatched to the Board of Directors.

On 15 April 2024, our shareholder proposals were disclosed.

On 6 March 2024, a letter was dispatched to the Company’s Board of Directors.

On 29 January 2024, correspondence was directed to the Company.

Contents of this website

Enhancing ESG practices to reduce the cost of capital.

ESG Policies and Actions
Climate change risks associated with cross-shareholdings
Transparency and responses regarding animal welfare
Excessive director came from its main bank
The truth behind the resignation of the former Chairman
Business partners' shareholding association

Optimising capital efficiency

ESG Policies and Actions
Cumulative massive deficit of the pharmaceutical business
Facilitating the fair transfer of real estate for lease purposes
Liquidating and divesting cross-shareholdings
Mid-term strategy to increase shareholders' value

Our view of Wakomoto's issues & solutions

0.55x

Exceptionally low adjusted price-to-book ratio (PBR), factoring in after-tax unrealised gains from rental properties

Advocate for management strategies focused on increasing shareholder value.

-7.3bn

A track record of the pharmaceutical business's profit or loss that's on par with its market capitalisation.

Take into account the importance of maintaining business operations from a capital expenditure standpoint.

Encourage management strategies dedicated to boosting shareholders' value, including sharpening the focus on the 'Strong Wakamoto' brand, while moving away from adherence to previous management choices.

84%

Proportion of institutional investors against the appointment of the president.

Grasping the reasons behind institutional investors' objections and incorporating these insights into management practices.

Craft a new medium-term management strategy to increase shareholders' value, drawing on the feedback provided by institutional investors.

1.3

Post-tax earnings from rental properties that are markedly lower than the cost of capital.

Conveying rental real estate assets at a fair price.

76~77

Proportion of cross-shareholdings pledged as collateral to banks and extremely high capital-to-assets ratio.

Release collateral and swiftly sell cross-shareholdings.

Cross-shareholdings are not justifiable from the standpoint of responding to climate change risk.

Optimise the equity capital to assets ratio.

11years

Duration of tenure as representative director for the former chairman and president, who unexpectedly resigned due to personal reasons.

Publish details on the incidents and actions taken to prevent future occurrences on the company's website following media coverage of the former Chairman and President's personal misappropriation.

3.95bn

Allowing the separate reserve fund to build up in a disorganised fashion despite not issuing dividends for 7 out of 15 fiscal years.

Complete reversal of the entire separate reserve fund.

A shareholder return policy offering a 9% dividend on equity (DOE), aligned with the cost of equity, ensuring a guaranteed return to shareholders.

-60%pt

Difference in total shareholder return between the Company and the TOPIX Net Total Return Index from the sudden resignation of the former Chairman and President to the current date.

Should the company fail to implement a management strategy that boosts shareholders' value, it will exit the stock market at a fair market value following a thorough valuation of unrealised profits on rental properties and other assets.

If the company is to remain listed, it will be replaced by a director who will execute management to increase shareholders' value.

(Note: Unless specified differently on this site, the share price and market capitalisation figures represent yearly averages of JPY 221 and JPY 7.7 billion, respectively, for the period beginning 11 April 2024; financial figures are as of December 2023).