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).

TDSE <7046> believes that it is important to achieve appropriate profit returns for shareholders in accordance with the company's performance, as well as to enhance its management foundation and prepare for future business development by accumulating internal reserves. Following this policy, the distribution of surplus funds is determined by comprehensively considering the company's performance, financial situation, and dividend payout ratio. The surplus fund distribution of the company is based on the annual year-end dividend, and matters related to surplus fund distribution etc. provided in Article 459 paragraph 1 of the Company Law are stipulated in the articles of incorporation to be determined by a resolution of the board of directors, unless otherwise specified by law. In addition, the record dates for the distribution of surplus funds are stipulated in the articles of incorporation to be every March 31 for year-end dividend and September 30 for interim dividend, in preparation for future interim dividends. As for the use of internal reserves, the company plans to use them for strengthening the business foundation in preparation for business development in response to expected changes in the business environment, hiring activities for expanding its workforce, and education activities to achieve technological advancement. Based on these policies, the company plans to distribute ordinary dividends of 10.0 yen for the year ending March 2025.

(Author: FISCO guest analyst Nobumitsu Miyata)