Policy Proposals

Proposal for Capital Efficiency Optimization Committee
Implementation of Capital Efficiency Optimization Management: Management
for Value Creation through Optimized Use of Financial and Non-financial Capital

May 12, 2017

Toshiyuki Shiga
Chairman, Capital Efficiency Optimization Committee
Keizai Doyukai
(Vice Chairman, Nissan Motor Co., Ltd.)

  1. Purpose of This Proposal
  2. Definition of Capital Efficiency Optimization Management and Three Steps to Achieve It
    1. What is capital efficiency optimization management?
    2. Three steps for capital efficiency optimization management
      1. Achieving ROE in excess of the cost of equity
      2. Investing profits in innovations and pursuing optimum ROE
      3. Continuing to execute a good value creation business process to increase corporate value
    3. Action declaration of corporate executives to promote capital efficiency optimization management
      1. Creating and communicating appealing visions to change society
      2. Establishing highly effective corporate governance
      3. Promoting business restructuring
      4. Sharing financial and non-financial capital targets with employees
      5. Communicating with investors for enhancing corporate value in the medium- to long-term
  3. System Reform for Efficient Disclosure of Corporate Information