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).

Saiginia (6031) recognizes that returning value to shareholders is an important management issue, and intends to decide on profit return strategies by taking into account its financial situation, managerial performance, and cash flow. The policy for dividend of surplus is to provide a year-end dividend once a year, and the decision-making organ for dividend is the general meeting of shareholders. In addition, the articles of incorporation stipulate that interim dividends can be declared by board resolutions. Although the company is still in a growth process, it has shifted to CX improvement services, which is a stock business, smoothly by working on structural reforms such as choosing and concentrating business lines. The company believes that it has established a system that can implement stable shareholder returns while expanding its business in the future. For this reason, in the fiscal year ending June 2024, it plans to increase the dividend by 1.25 yen from the initial plan and set the annual dividend per share at 5.0 yen (year-end dividend of 5.0 yen). As a result, the dividend payout ratio will come close to the target of 20% in the medium-term management plan, and it is possible that it will be upwardly revised when updating the medium-term management plan. The company plans to split one common stock into two shares in September 2024, following the acquisition of 1,261 thousand shares of treasury stock (19.76% of total issued shares) in April 2023, the initial dividend in the fiscal year ending June 2023, and the increased dividend in the fiscal year ending June 2024. The company is actively implementing shareholder returns against the backdrop of profit growth.

Therefore, for the fiscal year ending June 2024, Saiginia plans to increase the dividend by 1.25 yen from the initial plan and set the annual dividend per share at 5.0 yen (year-end dividend of 5.0 yen). As a result, the dividend payout ratio will come close to the target of 20% in the medium-term management plan, and it is possible that it will be upwardly revised when updating the medium-term management plan. The company plans to split one common stock into two shares in September 2024, following the acquisition of 1,261 thousand shares of treasury stock (19.76% of total issued shares) in April 2023, the initial dividend in the fiscal year ending June 2023, and the increased dividend in the fiscal year ending June 2024. The company is actively implementing shareholder returns against the backdrop of profit growth.

(Author: FISCO guest analyst Nobumitsu Miyata)