Honda's history on stock exchanges
Established in 1948, Honda Motor Co., Ltd. was listed on the Tokyo over-the-counter stock market in 1954. After being listed on the Tokyo Stock Exchange in 1957, the company was listed on all Japanese national exchanges. Overseas, American Honda Motor Co., Inc. issued American Depositary Receipts in 1962, and in 1977 was listed on the New York Stock Exchange. As Honda's overseas development proceeded, Honda affiliates were listed on major exchanges worldwide: in 1981 on the London Stock Exchange, in 1983 on the Swiss Stock Exchange, and in 1985 on the Paris Stock Exchange (now known as Euronext Paris).
As stock exchanges and investors worldwide embraced increasingly "borderless" financial transactions, we withdrew from the Swiss Stock Exchange and Euronext Paris in 2007. The same year in Japan, we also withdrew from stock exchanges in Nagoya, Fukuoka, and Sapporo. In 2013, we withdrew from the London Stock Exchange.
Protecting the rights of shareholders and investors
Our fundamental approach to investor relations
Our investor relations activities for shareholders and investors have two focuses: ensuring timeliness, accuracy, and fairness, and communicating the true state of the company's operations in a straightforward manner. In order to help our shareholders and the broader investor community reach an even deeper appreciation of Honda's activities, we are proactive in providing forums for communication. To ensure that our communications are not unilateral, we work hard to remain attuned to the voice of the market. We also work to promote close dialogue, maximum understanding and mutual communication in our relations with shareholders and investors through general shareholders' meetings, investor seminars and other activities. By continuing to build and maintain an atmosphere of trust and respect, we hope to receive a fair recognition of our corporate value by the market.
Profit distribution policy
Conducting operations from a global perspective, Honda strives to maximize corporate value throughout its worldwide organization.
With respect to the redistribution of corporate profits to shareholders—one of the company's most important responsibilities— Honda's basic policy for dividends is to make distributions after taking into account our long-term consolidated earnings performance. Honda will also acquire its own shares at optimal times with the goal of improving the efficiency and dynamism of the company's capital structure.
The present goal is to maintain a shareholder return ratio (dividends + share buyback) of approximately 30%.
With regard to capital reserves, Honda aims to strengthen its balance sheet by working on improving its financial performance. The company plans to do this by stepping up its investments in R&D and operational expansion, both of which are essential for future growth.