Governance | Third-Party Assessment
Shareholders and investors have made the effective functioning of internal control into a key issue amidst an epidemic of corporate misconduct in Japan and overseas. In this section, Capcom will explain the corporate governance structure and systems that it has initiated so far based on the key concepts of “effectiveness and visibility” in terms of the results of third party assessment.
(Assessment areas are highlighted in yellow.)
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Capcom Corporate Governance Guidelines (December 16, 2021)
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Corporate Governance Report (December 16, 2021)
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Third-Party Assessment
Promoting more “visible” governance
An analysis of an assessment performed by a third-party organization into the validity and effectiveness of Capcom’s corporate governance shows that the company ranked 45th among 3,701 listed companies in Japan in the “NEEDS-Cges” assessment developed by Nikkei Inc.
NEEDS-Cges has an established reputation as a system that quantitatively assesses corporate governance using scores on a scale of 1 to 10 for eight categories, including capital efficiency, external regulations, and information disclosure, among others, based on some 150 indicators calculated from data of publicly released company documents, such as financial reports.
As of the end of June 2021, Capcom’s total score was 7.60 points, placing us in the top 1.46% of Japan’s listed companies (excluding some in the financial and other sectors), exceeding the 4.75-point average for all listed companies and the 6.66-point average for the industry. We also received the maximum score of 10 for “equity market’s assessment.”
The main evaluation factors are given in the table below, and areas highlighted in yellow indicate measures that received particular notice. Going forward, we will continue making improvements to earn an even stronger assessment, and further promote the visibility of our governance.
Third-Party Assessment Results of Capcom’s Corporate Governance
Comparison of the Industry Average and the Average for All Listed Companies
Details of Capcom’s
Corporate Governance AssessmentCategories Fiscal 2020 Ratings Fiscal 2021 Ratings Total Score 7.28 7.60 
Capital
efficiency10 9 
Equity market’s
assessment10 10 
External
regulations9 9 Board of
Directors6 7 Officer
remuneration8 8 Information
disclosure10 8 Capital policies 6 9 Effectiveness 3 3 Rank 131 45 45/3,701 Top 1.46%
Details of Categories
Categories Score Areas that Received
Particular NoticeCapital
efficiency9 ROA, ROE, statistics
related to free cash flowEquity market’s
assessment10 Tobin’s Q External
regulations9 Presence (or absence)
of takeover defense measuresBoard of Directors 7 Percentage of independent external directors, tenure of directors Officer
remuneration8 Treasury stock held
by directorsInformation
disclosure10 Timing of Shareholders’ Meetings (avoiding congested periods), early timing of Shareholders’ Meeting invitations, utilization of electronic voting, presence or absence of English disclosure materials Capital
policies9 Related to DOE,
shareholder return ratioEffectiveness 3 Auditors’ comments Source: NEEDS-Cges from Nikkei Inc.
