ACCOUNTABILITY NOW
to improve
KUMAGAI GUMI CORP GOV
Under President Sakurano’s watch, Kumagai’s stakeholders have suffered from:
Operational Failures
Governance and Oversight Failures
Capital Allocation Failures
Oasis is a long-term shareholder of construction firm Kumagai Gumi since 2016. Under President Sakurano’s leadership, Kumagai Gumi has failed to realize its true potential.
It is time for shareholders to hold President Sakurano ACCOUNTABLE NOW for the mismanagement of Kumagai Gumi
Please click here to view the Oasis investor presentation on Kumagai Gumi.
Oasis recommends that at the upcoming AGM, shareholders should:
VOTE AGAINST the nomination of President Yasunori Sakurano
VOTE AGAINST the nomination of Director Tatsuru Sato
VOTE FOR the shareholder proposal for a 20% buyback
VOTE FOR the shareholder proposal for a JPY188 dividend per share
VOTE FOR the shareholder proposal for establishment of strategic review committee to address the capital alliance with Sumitomo Forestry and failed investment plan
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Like other long-term, long-suffering shareholders of Kumagai Gumi, Oasis has waited patiently through a series of false dawns for Kumagai to finally make good on its promises to dramatically increase its operating profit by leveraging its capital alliance with Sumitomo Forestry. Instead, we have seen Kumagai:
· Underperform their competitors amid deteriorating margins and profits,
· Miss financial targets,
· Fail to produce any material benefit from the capital alliance, and
· A testing scandal.
Management’s obsession with expanding its business outside of construction and forcing collaboration with Sumitomo Forestry has meant that they have ignored their core business, to the detriment of all stakeholders.
Kumagai trades at just 0.77 of its book value, well below the TSE’s recommendation of 1x book, entirely due to management’s failures.
Accountability is needed now to improve Kumagai Gumi’s corporate governance to benefit all stakeholders.