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).

The Net Advertising Company <9235>, which sells well, prioritizes returning profits to shareholders and considers internal reserves, aiming to provide continuous and stable dividends as its basic policy. However, as the company is in a growth phase, it believes that further business expansion aimed at maximizing profits for dividends will lead to rewarding shareholders. Therefore, it has decided to postpone the dividends forecast for the fiscal years ending in July 2024 and July 2025, focusing on strengthening internal reserves to enhance corporate structure and invest in business growth. Regarding internal reserves, the company plans to effectively utilize them as funds for strengthening financial health, development expenses, and recruiting and nurturing excellent personnel for business scale expansion. In the future, dividends will be implemented after considering overall performance, dividend payout ratio, future growth strategies, etc., but the timing of dividend distribution is currently undecided. In the case of future surplus dividends, the company plans for an annual year-end dividend as the basic, with the possibility of an additional interim dividend once a year, and setting a record date in addition to the aforementioned to distribute surplus dividends. The decision-making body for dividends is the Board of Directors for interim dividends and the Shareholders' Meeting for year-end dividends. It has also announced the implementation of a commemorative shareholder benefit for the first anniversary of listing. Shareholders holding 100 or more shares as of the end of July each year will be presented with a QUO card worth 1,000 yen.

(Author: FISCO guest analyst Nobumitsu Miyata)