Shareholder return strategy: No. 1<3562> changed its shareholder return policy along with the publication of the new mid-term management plan "Evolution 2027" and showed the direction of significantly strengthening shareholder return. So far, we have aimed for stable dividends (30% dividend payout ratio as a guide), but in the future, we plan to implement stable and continuous shareholder dividends based on a policy of aiming for a 30% dividend payout ratio, regardless of changes in annual performance. A notable feature is that we have set a minimum dividend of the previous year's annual dividend per share and will continue to increase dividends, which is a significant enhancement of shareholder return and can also be evaluated as a expression of confidence in profit growth. Moreover, we have a policy of "flexibly implementing under financial discipline" for acquiring our own shares, showing a more proactive stance.* *Considering the gap between our own perception of the stock price and the market evaluation, ROE, capital efficiency, and CF level, we have a policy of implementing it flexibly. Dividends for the fiscal year ending February 2024 will increase by 1 yen from the previous year, as expected at the beginning of the period, to 33 yen per share (mid-term dividend of 16.5 yen and year-end dividend of 16.5 yen). We also acquired 340,000 shares of our own stock (with a purchase price of 397 million yen). Despite the anticipated decline in profits for the fiscal year ending February 2025, we are expected to follow the policy of increasing dividends every period and issue a dividend of 1 yen per share (a commemorative dividend for the 35th anniversary of our founding), with an expected increase of 2 yen from the previous year to 35 yen per share (mid-term dividend of 17.5 yen and year-end dividend of 17.5 yen).
Ubiquitous AI <3858> recognizes shareholder return as an important management issue, but has continued to have no dividends since the fiscal year ending March 2010. Although the company strengthened its growth and business foundation through M&A for the fiscal year ending March 2024, net income attributable to parent company shareholders was 32 million yen, and EPS (earnings per share) was 3.15 yen, not reaching the level to enable dividends. It is estimated that there will be a net loss attributable to parent company shareholders of 22 million yen for the fiscal year ending March 2025, and for the time being, funds will continue to be allocated to invest in research and development, product development, sales force strengthening, M&A, and further strengthening of growth and business foundations, and priority will be given to further enhancing profitability and stable profit generation. The likelihood of dividend implementation will increase when achieving revenue of 5 billion yen as a numerical target for the fiscal year ending March 2027.
(Written by FISCO Guest Analyst Akira Matsumoto)