#Japan #Tokyo #Plutus-Consulting #Noguchi-Mahito #Capital-Cost-Management

Launch of "Strategies for Managing Capital Cost"

On April 27, 2025, Plutus Consulting, led by President Mahito Noguchi, will release the book titled "Strategies for Managing Capital Cost: Why is Your Company's PBR Below 1?" This publication is timely, addressing a critical issue in the corporate governance landscape of Japan.

Background of the Publication

In March 2023, the Tokyo Stock Exchange issued guidelines encouraging listed companies on the Prime and Standard markets to take proactive measures regarding capital costs and stock prices. This initiative responded to the pressing challenges surrounding the return on capital and growth potential of Japanese enterprises. Executives are encouraged to accurately assess their company's cost of capital and aim for returns exceeding this threshold.

As a long-standing consultant in corporate capital policy, Mahito Noguchi and Plutus Consulting have compiled their extensive insights and methodologies into this comprehensive guide. The book aims to equip management teams with the knowledge required to enhance corporate value through effective capital cost management.

Features of the Book

The book offers a practical approach in alignment with the directive from the Tokyo Stock Exchange, including:

• - In-Depth Analysis: It details the background of the exchange’s requirements, offering specific strategic responses along with case studies of successful and unsuccessful disclosures.
• - Comprehensive Understanding of Capital Costs: From the fundamental concepts like Shareholder Equity Cost (COE), Debt Cost (COD), and Weighted Average Cost of Capital (WACC), to the relationship with PBR and capital structure, vital points are clearly explained.
• - Concrete Pathways for Increasing Corporate Value: The author analyzes the implications of businesses having a PBR below one, insights from activist investors, and cautions from reports like the Ito Report, all while providing relevant strategies for improvement.
• - Constructive Dialogue with Investors: The book discusses common issues in disclosing capital costs and effective communication strategies with investors.
• - Real-World Examples: It includes a collection of success stories from companies actively managing capital costs and improving corporate value, offering practical tips for readers.

Table of Contents

1. What is Happening in the Capital Markets
2. What is Corporate Value?
3. How is Capital Cost Determined?
4. How to Increase Corporate Value
5. What is Capital Cost Management?
6. Complying Correctly with TSE Disclosure Requirements
7. What Issues Arise in Disclosing Capital Costs?
8. Summary for the Practice of Capital Cost Management

Event Announcement

To celebrate the release of "Strategies for Managing Capital Cost", Plutus Consulting will host a lecture event on May 23, 2025, aimed at executives and IR personnel from listed companies. This event will be structured in two parts to deepen understanding of capital cost management.

Part One: Lecture and Discussion

Featuring renowned professionals, including:

• - Ken Kusunoki, Professor at Hitotsubashi University
• - Mahito Noguchi, President of Plutus Consulting
• - Yoshitaka Shiraishi, President of Profinks Co., Ltd

Part Two: Roundtable Discussion

Together with invited guests, discussions will be held from a practical perspective.

Guest Speakers:

Including Naotaka Ikeda, Chief of the Listed Company Planning Group at Tokyo Stock Exchange

Join Us
Interested attendees can register through the provided link for further details.

Event Details:

• - Date: May 23, 2025
• - Time: 15:00 (Doors open at 14:30)
• - Location: Orque d'Or Salon TOKYO, 2-5-1 Nihonbashi, Chuo-ku, Tokyo
• - Cost: Free
• - Capacity: 50 participants

Please be aware that applications from individuals outside of business entities, competitors, or those pursuing sales activities may be denied. Cancellations may occur at the discretion of the event organizers.

About Plutus Consulting

Specializing in a variety of scenarios such as M&As, incentive plans utilizing stock options, and fair value evaluations, Plutus Consulting is an independent firm dedicated to fostering corporate value creation.

Contact Us
Website: Plutus Consulting
Location: 30F Kasumigaseki Building, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo
President: Mahito Noguchi
Business Scope: Evaluation of corporate stock and rights, financial investigations, and capital policy consulting.