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).

Ito Suisan Co., Ltd. <2904> recognizes the return of profits to shareholders as an important management issue, and has established a basic policy of continuously paying stable dividends while taking into account performance, future business development, etc. In the second medium-term management plan, the target is a dividend payout ratio of 20% or more and a shareholder capital distribution ratio (DOE) of 1.5% or more. For the three periods from the fiscal year ending June 2022 to the fiscal year ending June 2024, a dividend of 12.0 yen per share, a dividend payout ratio exceeding 20%, and a DOE of 1.6% have been maintained. Despite a deteriorating performance in the fiscal year ending June 2023, a dividend approximately 2.6 times higher than the net income attributable to the parent company's shareholders was implemented to maintain stable dividends. The dividend per share for the fiscal year ending June 2024 remains the same as the previous period at 12.0 yen, with a dividend payout ratio of 23.0% implemented. For the fiscal year ending June 2025, a planned dividend of 14.0 yen, an increase of 2.0 yen from the previous period, is expected. Although the dividend payout ratio is not disclosed, we estimate it to be 26.9% based on our calculations.

Shareholder benefits are also provided. Shareholders who have held 100 shares or more for more than 6 months as of June 30th each year are presented with the company's products (selected from regular temperature products, New Year's dishes, refrigerated products, or donations) based on the number of shares held. Traditionally, shareholders holding between 100 and 499 shares received products worth 1,000 yen, those holding between 500 and 999 shares received products worth 3,000 yen, and shareholders with 1,000 shares or more received products worth 5,000 yen or more. However, based on shareholder feedback from surveys, starting from the end of June 2025, shareholders holding between 300 and 499 shares will be newly eligible to receive products worth 2,000 yen.

(Author: FISCO Guest Analyst Shuji Matsumoto)