Management Policy
Fundamental management policy
The basic management philosophy of the J:COM Group defines the Company's mission as enhancing the sense of affluence felt by its customers in their daily lives by meeting their needs through state-of-the-art visual, audio, and high-speed Internet access services based on advanced technology.
To realize its management philosophy, the J:COM Group provides three services as a comprehensive one-stop provider: (1) cable television (J:COM TV), (2) high-speed Internet access (J:COM NET) and (3) telephony services (J:COM PHONE). These services are provided through the J:COM Group's system operators, which utilize the J:COM broadband (high speed, large capacity) network. Through such services, the J:COM Group endeavors each day to build close, trusting relationships with customers and local communities, while working to become the kind of company that can return the benefits of its achievements to local communities and shareholders.
Target management indices
The J:COM Group's services primarily target individual subscribers, and its greatest strength is one-stop shopping for bundled services at reasonable prices. Revenue, subscribers, bundle ratio, ARPU, and churn rates are important management indicators for evaluating success.
In terms of profitability, the Company believes that EBITDA* and EBITDA margins are important management indices for measuring its operating results and its ability to leverage its operating costs.
*: EBITDA= (Revenue) - (Operating & programming costs) - (Selling, general & administrative expenses)
Medium- and long-term management strategies, and issues requiring action
The J:COM Group continued to promote its Volume plus Value and Content growth strategies. The J:COM Group also work to increase subscriber numbers (volume growth), raise ARPU (value growth), and enhance programming quality as a part of continued efforts to secure overall sustainable growth. Through these means, the J:COM Group will endeavor to promote higher corporate value.
Fundamental policy regarding the distribution of profits
J:COM recognizes that the distribution of profits to shareholders is an important management issue. In this context, the Company will endeavor to consistently supplement the J:COM Group's internal reserves for use in potential future investments such as the acquisition of other companies and businesses as well as capital expenditures, while at the same time maintaining stable and continuous returns to shareholders from fiscal 2008.
Looking ahead, J:COM will continue to promote sustainable growth while working positively to return profits to shareholders. In fiscal 2011, the year ending December 31, 2011, taking into consideration the J:COM Group’s business results and other factors, the Company plans to pay an annual cash dividend of ¥1,800 per share, comprising an interim cash dividend of ¥900 per share and a year-end cash dividend of ¥900 per share, compared with ¥1,500 per share in fiscal 2010.
