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This slide shows the recent trend regarding equity capital and interest-bearing debt. During the first three years (from FY2015/March to FY2017/March) of the Value Frontier 2020 initiative, interest-bearing debt increased. Meanwhile, equity capital expanded consistently, with the DER improving to the Company’s target of 2.6 at the end of the period.
We expect that the amount of interest-bearing debts will increase in the fiscal year ending March 31, 2018, reflecting new business investments, with the DER unchanged at 2.6, reflecting an increase in accumulated earnings.
With interest-bearing debt/EBITDA multiples remaining on a declining trend in general over the past five years, we plan to improve the multiples to 10 in FY2020 while trying to maintain an appropriate balance with cash flows.
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