Shareholder Proposal to NC Holdings Co., Ltd. and Views on the Opinion of the Board of Directors

NCホールディングス株式会社に対する株主提案及び同社取締役会意見に対する見解について

Press Release

Global ESG Strategy
June 4, 2024

Shareholder Proposal to NC Holdings Co., Ltd.
and Views on the Opinion of the Company’s Board of Directors

Full Press Release

https://prtimes.jp/a/?f=d135781-16-4d7f9076c529cb18b27cabd05b3653ad.pdf

Shareholder Proposal

https://prtimes.jp/a/?f=d135781-16-241bc16716a99e50a8aad255563acdbf.pdf

Global ESG Strategy (“GES”) is an investment fund managed by Swiss-Asia Financial Services Pte Ltd (“SAFS”) that makes medium- to long-term investments from an ESG (environment, social, and governance) perspective, and as a responsible investor, its management policy is to support the achievement of improvements in medium- to long-term corporate value and shareholder value of Japanese listed companies through constructive dialogue, etc.

In 2023, GES began investing in NC Holdings Co., Ltd. (“NCHD” or the “Company”), a company listed on the Tokyo Stock Exchange Standard Market (Securities Code 6236). Throughout our engagement since initially investing in NCHD, it became clear that there are issues with NCHD’s approach to corporate governance, such as the continued accumulation of internal reserves that ignores capital efficiency required of a listed company. GES also experienced that NCHD’s approach to dialogue with shareholders was not always forward-looking and welcoming, and moreover, the continued refusal to publish a medium-term management plan like its other listed peers despite repeated requests from multiple shareholders.

To address these concerns, GES submitted the following four shareholder proposals (the “Shareholder Proposals”) for deliberation at the annual shareholders meeting scheduled to be held in June 2024, with the aim of improving capital efficiency, promoting dialogue with shareholders, and disclosing the medium-term management plan. Please refer to Exhibit 1 for details of the Shareholder Proposals.

Agenda Item 1:Appropriation of Surplus
Agenda Item 2:Partial Amendment of Articles of Incorporation (Policy on Dividend of Surplus)
Agenda Item 3:Partial Amendment of Articles of Incorporation (Handling by Directors of Interviews With Shareholders)
Agenda Item 4:Partial Amendment of Articles of Incorporation (Disclosure of Medium-Term Management Plan)

　Furthermore, NCHD published the opinions of its board of directors regarding the Shareholder Proposals on May 15, 2024, but the opinions of the board of directors regarding each of the proposals include unsubstantiated claims, intentionally misleading statements, and factual errors, making it even clearer that the NCHD board of directors and management hold a hostile and dismissive view of the opinions of its shareholders with no regard for their common interests. Notice is also hereby given of GES’s views regarding those board of director opinions, as described in Exhibit 2.

　GES recognizes that the situation with respect to NCHD’s corporate governance is even more serious than at the time of submitting the Shareholder Proposals, so to maximize the common interests of shareholders, it is considering further countermeasures, including requesting an extraordinary shareholders meeting.

Swiss-Asia Financial Services Pte Ltd（以下「SAFS」）の運営ファンドであるGlobal ESG Strategy（以下「GES」）は、ESG（Environment（環境）, Social（社会）及びGovernance（ガバナンス））の視点から中長期的な投資を行う投資ファンドであり、責任ある投資家として、建設的な対話等を通じ、日本の上場会社の中長期的な企業価値・株主価値の向上を実現することを後押ししていくことを運用方針としています。

GESは2023年より東証スタンダード上場のNCホールディングス株式会社（以下「NCHD」）（証券コード：6236）に対する投資を開始し、同社へのエンゲージメントを継続してまいりました。こうした対話を通じて、NCHDにおいては、上場企業として求められる資本効率を無視した際限のない内部留保の蓄積をし続ける方針であること、株主との対話に必ずしも前向きではないこと、さらには、複数の株主からの繰り返しの要請にも関わらず上場会社として当然に求められる経営計画の公表を拒否し続けていることなど、コーポレートガバナンス上解消すべき課題を抱えていることが明確になりました。

そこで、GESは、2024年6月開催予定の定時株主総会に、資本効率の改善、株主との対話の促進、及び中期経営計画の開示を目的とした以下の4つの株主提案（以下「本株主提案」）を提出いたしました。

議題1：　剰余金処分の件
議題2：　定款の一部変更の件（剰余金の配当方針について）
議題3：　定款の一部変更の件（取締役による株主との面談対応について）
議題4：　定款の一部変更の件（中期経営計画の開示について）

　また、NCHDは、2024年5月15日に、本株主提案にかかる同社取締役会意見を公表しておりますが、いずれの議案にかかる同社取締役会意見も詭弁や意図的な誤導、事実誤認が含まれており、NCHD取締役会及び経営陣における株主共同の利益を顧みない株主軽視の姿勢が一段と明らかとなっております。

かかる取締役会意見に対するGESの見解についても別紙2のとおりお知らせいたします。

　GESは、NCHDのコーポレートガバナンスの状況は、本株主提案提出時よりも、より一層深刻な状況にあることを認識したため、株主共同の利益の最大化のために、今後、臨時株主総会の招集請求及び新たな株主提案を含む対応策を検討していきます。

Contact: 　[e-mail]

About Global ESG Strategy
Global ESG Strategy ("GES"), an investment fund that is managed by SAFS, makes medium- to long-term investments from an ESG (Environment, Social and Governance) perspective, and its policy is to promote improvements on enterprise value and shareholder value of investee companies through constructive dialogue with investee companies and other means.

About Swiss-Asia Financial Services
SAFS is founded in 2004, and is a Singapore based investment management company that holds a Capital Markets Services (CMS) License under the Singapore Securities and Futures Act (SFA).


Disclaimer

This document is for the purpose of providing information on shareholder proposal by Global ESG Strategy (“GES”) which is managed by Swiss-Asia Financial Services Pte Ltd (“SAFS”) to NCHD and should not be used for any other purpose.

The information contained in this document is based on SAFS’s independent research and analysis and publicly-available information. We, SAFS, Global ESG Strategy and other SAFS’s affiliates (“SAFS et al.”), do not guarantee its accuracy, appropriateness or completeness.

This document represents the unique views, expectations and opinions of SAFS et al. and is subject to change. You may not rely on this material for any purpose whatsoever, nor should it be interpreted as investment, financial, legal, tax or other advice.

The information and opinions included herein may include forward-looking statements. You should be aware that all forward-looking statements, estimates, and projections are inherently uncertain and subject to significant contingencies and have been included solely for illustrative purposes. Actual results may differ materially from the estimates, projections or assumptions contained herein due to reasons that may or may not be foreseeable. SAFS et al. accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecast, materials and data contained herein or otherwise arising in connection therewith.
None of the information or content in this document is, in any way, an offer, a recommendation, a promotion of services or products; and shall not be construed as an advertisement, solicitation or representation or as advice or a recommendation regarding the purchase or sale of any investment product or any investment in any securities.
This document does not, and should not be construed as, a request for SAFS et al. to grant SAFS et al. or any other third party the authority to exercise voting rights on behalf of the shareholders of NCHD with respect to the agenda at the General Meeting of Shareholders. In addition, it does not propose, encourage, solicit or aim to grant the shareholders of NCHD the right to exercise their voting rights on their behalf by designating SAFS et al. or any other third party as their proxy.