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).

Step <9795> introduced a new management policy starting from the fiscal year ending September 2023, which includes not only increasing teacher salaries but also strengthening shareholder return measures. Specifically, the target dividend payout ratio has been raised from the previous 30% to 50%. Based on this policy, the dividend per share for the fiscal year ending September 2024 is set to be 77.0 yen, an increase of 5.0 yen compared to the previous term (payout ratio of 49.5%). For the fiscal year ending September 2025, it is also planned to increase by 4.0 yen to 81.0 yen (same payout ratio of 49.8%). Further increases in dividends are expected in line with profit growth. Additionally, as part of the shareholder benefit program, original QUO cards (worth between 500 and 4,000 yen) are given each year to shareholders as of the end of September, based on the number of owned Stocks and the duration of ownership. The investment yield, considering the combined dividends and shareholder benefits for shareholders holding 100 Stocks, stands at a level of 3.9% to 4.6% (calculated based on the closing price of 1,909 yen on November 29).

Furthermore, the company had been conducting a buyback of its own shares from November 2023 to September 2024, but announced that it would extend the buyback period by another year because the initially planned acquisition amount and the upper limit of the number of acquired shares were not met. Between October 2024 and the end of September 2025, the company plans to acquire 484 thousand shares (equivalent to 3.05% of the total number of shares issued excluding treasury stock), with a total acquisition price of 899 million yen.

(Written by FISCO guest analyst, Jo Sato)