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).

Forval (<8275>) recognizes the return of profits to Shareholders through Dividends as one of its important management issues. The policy is to determine dividends with consideration for both internal reserves and stable profit distribution from a medium to long-term perspective, without committing to a specific payout ratio. The company has been increasing its dividends against the backdrop of stable profit growth, and over the past ten periods, dividends have either increased or remained the same, with a payout ratio of approximately 30% or more. For the fiscal year ending March 2025, Dividends of 30.00 yen (an increase of 2.00 yen compared to the previous term) and a payout ratio of 37.4% are anticipated.

The company has established a shareholder benefit program to express gratitude to Shareholders and to enhance the investment appeal of its Stocks in order to increase the number of Shareholders. Every year, as of September 30, Shareholders holding one unit (100 shares) or more are awarded 2,000 points in electronic money gifts (equivalent to 2,000 yen), which has received positive feedback from Shareholders.

(Written by FISCO Guest Analyst, Hideo Kakuta)