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).

1. Dividend policy 2. Shareholder Benefits Nissan Tokyo Sales Holdings <8291> recognizes that returning profits to shareholders is one of the important management issues and has set a target of maintaining a dividend payout ratio in the 30% range while considering internal reserves to ensure growth. In addition, the company's basic policy is to enhance shareholder returns by taking flexible measures in response to performance, etc. Therefore, because the operating profit exceeded the plan and special profit will be recorded, the annual dividend for the fiscal year ending March 2024 will be increased by 9 yen to 24 yen (interim dividend 9 yen, year-end dividend 13 yen, and special year-end dividend 2 yen). The annual dividend for the fiscal year ending March 2025 is expected to be maintained at 24 yen (interim dividend of 12 yen and year-end dividend of 12 yen) even though there will be no special dividend. On the other hand, the company has introduced a shareholder benefit scheme in order to thank shareholders for their support and to enhance the investment attractiveness of the company's shares, thereby encouraging more shareholders to hold the company's shares in the medium to long term. The eligible shareholders for the shareholder benefit scheme are those who hold 5 units (500 shares) or more of the company's shares recorded or registered on the shareholder list as of the cutoff date (March 31). The shareholder benefit is an original QUO card designed after the company's popular car model, which is presented as follows: Shareholders who hold 500 or more and less than 1,000 shares are given a 1,000 yen card, those who hold 1,000 or more and less than 5,000 shares are given a 2,000 yen card, and those who hold 5,000 or more shares are given a 3,000 yen card if the holding period is less than 2 years and a 5,000 yen card if the holding period is 2 years or more. The presentation is scheduled to be made once a year after the company's regular shareholders' meeting (around late June).

Presenting the Original QUO Card For shareholders who hold 500 or more shares recorded or registered on the shareholder list as of the cutoff date (March 31), Nissan Tokyo Sales Holdings <8291> has introduced a shareholder benefit scheme aiming to thank shareholders for their support and enhancing investment attractiveness. The shareholder benefit is an original QUO card designed after the company's popular car model and is presented as follows: Shareholders who hold 500 or more and less than 1,000 shares are given a 1,000 yen card, those who hold 1,000 or more and less than 5,000 shares are given a 2,000 yen card, and those who hold 5,000 or more shares are given a 3,000 yen card if the holding period is less than 2 years and a 5,000 yen card if the holding period is 2 years or more. The presentation is scheduled to be made once a year after the company's regular shareholders' meeting (around late June).

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2. Shareholder Benefits See above

The company has introduced a shareholder benefit system to show gratitude for the support of shareholders and to enhance the investment appeal of the company's shares, with the aim of encouraging more shareholders to hold the company's shares in the medium to long term. Shareholders eligible for the shareholder benefit system are those who hold 5 units (500 shares) or more of the company's shares recorded or registered on the shareholder register as of the record date (March 31). The contents of the shareholder benefits include an original QUO card designed with the company's popular car models, which are awarded to shareholders who hold 500 or more but less than 1,000 shares with a value of 1,000 yen, shareholders who hold 1,000 or more but less than 5,000 shares with a value of 2,000 yen, and shareholders who hold 5,000 or more shares with a value of 3,000 yen for a holding period of less than 2 years, and 5,000 yen for a holding period of 2 years or more. The award is scheduled to be sent out once a year, after the company's regular shareholders' meeting (around late June).

(Author: FISCO guest analyst Nobumitsu Miyata)