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).

First Corporation <1430>'s dividends per share were ¥32.00 for the fiscal year ending in May 2022, ¥35.00 for the fiscal year ending in May 2023. It was decided to set ¥31.00 for the fiscal year ending in May 2024, a decrease of ¥4.00 compared to the previous period.

Regarding future dividends, the company has set target values of ¥38.00 for the fiscal year ending in May 2025, ¥43.00 for the fiscal year ending in May 2026, and ¥49.00 for the fiscal year ending in May 2027 in the new medium-term management plan 'Innovation 2024'. The company considers returning profits to shareholders as one of the important management policies, aiming to continue stable dividends with a consolidated dividend payout ratio of over 30% as the minimum line, taking into account comprehensively the current and future business development, facility investment, and securing of internal reserves. In addition, considering the situation of internal reserves, the progress of the medium-term management plan, and the profitability for a relisting on the main board market, the company is also considering increasing the dividend payout ratio. Therefore, we believe that an increase in the dividend payout ratio can be expected in the future.

As a shareholder return policy other than dividends, the company started a shareholder benefit system from November 30, 2016, awarding QUO cards based on the number of shares held and the holding period. Furthermore, the company carries out the acquisition of treasury shares.

(Written by FISCO Guest Analyst Yoichiro Shimizu)