■Growth Strategy

3. Shareholder return policy

Regarding profit allocation, NCD ＜4783＞ set a standard consolidated dividend payout ratio of 30% or more from the fiscal year ending 2024/3 with the start of the medium-term management plan “Vision 2026.” Based on this basic policy, the dividend per share for the fiscal year ending 2024/3 was 50.00 yen (16.00 yen at the end of the 2nd quarter, 34.00 yen at the end of the fiscal year), an increase of 30.00 yen from the previous fiscal year. The payout ratio is 29.3%. Also, the dividend forecast for the fiscal year ending 2025/3 is 54.00 yen (27.00 yen at the end of the 2nd quarter, 27.00 yen at the end of the fiscal year), an increase of 4.00 yen from the previous fiscal year. The expected payout ratio is 30.5%. A shareholder benefit program is also being implemented as part of shareholder returns. Each year, preferential products (Quocards) are presented to shareholders holding 1,000 shares (10 units) or more as of 9/30 according to the number of shares held and the period of continuous holding. We believe that further improvements in shareholder returns can be expected as business results expand in the future.

Promote sustainability management

4. sustainability management

Regarding sustainability management, the Sustainability Promotion Committee was established in October 2021, and policies to strengthen sustainability management have also been set out in the medium-term management plan “Vision 2026.” “Contributing to achieving carbon neutrality,” “creating a safe, secure, and prosperous society,” “a society where diverse human resources can play an active role,” and “trust from society” are listed as material issues. Sustainable procurement guidelines were established in 2023/8.

“Contributing to achieving carbon neutrality” is promoting DX, providing high-value-added bicycle parking services, providing resilient social infrastructure in “creating a safe, secure, and prosperous society,” contributing to regional revitalization, promoting respect for human rights and D&I in “a society where diverse human resources can play an active role,” balancing ease of work and work satisfaction, nurturing next-generation leaders, and advancing governance systems, promoting compliance, and appropriate risk management in “creating a society based on social trust” Aim for it. Furthermore, in creating employment opportunities by utilizing regional bases, it is planned to increase the total number of personnel at regional bases, including business partners such as the Fukuoka/Nagasaki office, from 322 at the end of 2024/3 to 400 at the end of 2026/3.

The parking system business is a business that contributes to measures to eliminate abandoned bicycles, measures to reduce traffic congestion, effective use of land, regional/town development, and improvement of the global environment by reducing CO2 emissions. Bicycle utilization promotion plans are also underway in various places based on the Bicycle Utilization Promotion Law (enforced in 2017/5 for the purpose of comprehensively and systematically promoting the use of bicycles). An official supplier agreement was signed with the pro road racing team “Saitama Delave” in 2022/4, and with “VC FUKUOKA” in 2023/4. Contributions to the community and society are also aimed at.

As a human resources strategy, “transformation of organizational culture through autonomous career formation and dialogue” is set as the basic concept, and health management, creating bright workplaces, work style reforms, career support, internal ventures, D&I, and improvement of engagement are promoted. A new personnel system unified for the group was introduced in 2021/4, and in 2021/9, an excellent health enterprise “gold certification” was obtained in the health excellent enterprise certification system “Health Enterprise Declaration” operated by the Health Enterprise Declaration Tokyo Promotion Council. In 2024/3, it was certified as an “excellent health management corporation 2024 (large-scale corporation division)” under the health management excellent corporation certification system determined by the Ministry of Economy, Trade and Industry. Also, the target number of female full-time directors/executive officers is currently 1, 2 or more for the fiscal year ending 2031/3. Generally, female directors are often welcomed as outside directors, but the company has a policy of promoting internal appointments of women as full-time directors/executive officers. Furthermore, they are promoting compliance with the Corporate Governance Code revised in June 2021, and are also disclosing directors' skill matrices and participating in electronic voting platforms.

Evaluate the significant increase in profitability for the fiscal year ending 2024/3, and pay attention to the progress of the medium-term management plan

5. An Analyst's Perspective

Looking at the company's performance trends, the parking system business bottomed out in the 2021/3 fiscal year, which was affected by the COVID-19 pandemic, and there was a recovery trend from the fiscal year ending 2022/3 onwards. Furthermore, for the fiscal year ending 2024/3, profitability improved drastically and became a record high, and target figures for the medium-term management plan were also revised upward. This is due not only to an improvement in the business environment, but also to the fact that the results of the profitability improvement measures (expansion of business areas in IT related businesses, expansion of stock sales, evolution of NCD service models, BPR in the parking system business, etc.) that the company has been steadily promoting from the past have begun to appear in earnest, and we highly value it. They are also evaluating that shareholder return measures have been strengthened. Furthermore, we evaluate that further profit growth can be expected in the medium to long term by accelerating changes aimed at improving profit margins in the future, and we would like to continue to pay attention to the progress of profitability improvement strategies based on the medium-term management plan and long-term group vision.

(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)