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).

1. Dividends Policy

Nissan Tokyo Sales Holdings <8291> recognizes returning profits to Shareholders as one of its important management issues, aiming to maintain a dividend payout ratio of 30% or more while considering internal reserves to ensure growth. The basic policy is to strengthen shareholder returns through flexible responses based on performance. Therefore, the annual dividend for the fiscal year ending March 2025 is planned to be the same amount as the previous fiscal year (including a special dividend of 2.0 yen at the end of the period), amounting to 24.0 yen (interim dividend of 12.0 yen, year-end dividend of 12.0 yen).

2. Shareholder Benefits See above

The company expresses gratitude to its Shareholders for their support and aims to enhance the attractiveness of investing in its Stocks by introducing a Shareholder benefit program to encourage more Shareholders to hold its Stocks for the medium to long term. The Shareholder benefit program targets Shareholders who own 5 units (500 shares) or more of the company’s Stocks listed or recorded on the shareholder registry as of the record date (March 31). The contents of the Shareholder benefits include original design QUO cards featuring the company’s popular Autos, with benefits of 1,000 yen for Shareholders holding more than 500 but less than 1,000 shares, 2,000 yen for those holding between 1,000 and 5,000 shares, and 3,000 yen for Shareholders holding more than 5,000 shares with a holding duration of less than 2 years, and 5,000 yen for those holding for 2 years or more. The gifts are scheduled to be sent out once a year, after the company’s annual general meeting of Shareholders (around late June).

(Author: FISCO guest analyst Nobumitsu Miyata)