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).
Kyobashi Art Residence <5536> recognizes the return of profits to shareholders as an important management policy, taking into consideration the performance situation, the surrounding environment, and the outlook for the financial structure in the medium to long term, and as a basic policy, aims to implement it continuously and stably. The company's basic policy for dividend payment is to distribute the year-end dividend once a year from surplus funds. The decision-making body for the distribution of these surplus funds is the general shareholders meeting. As the company is currently in a growth stage, it believes that strengthening internal reserves and effectively utilizing funds for further growth will lead to the maximum return of benefits to shareholders. As for future dividends, the company plans to consider the financial condition, performance, and business plan while balancing with internal reserves. In addition, the company stipulates in its articles of incorporation that it can distribute interim dividends by resolution of the board of directors.
(Author: FISCO guest analyst Nobumitsu Miyata)
