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).

Takashima <8007> recognizes the return of profits to shareholders as one of the important management issues. For the fiscal year ending March 2024, a dividend of 60.0 yen per share was distributed (interim 20.0 yen, year-end 25.0 yen, special dividend 15.0 yen). Regarding the interim dividend, it was raised by 2.5 yen from the initial financial estimates due to the favorable performance in the second quarter of fiscal 2024. The year-end dividend also saw an increase of 15.0 yen from the initial estimates due to the issuance of a special dividend following the recording of gains from the sale of fixed assets.

Regarding the fiscal year ending March 2025, there is a policy to further strengthen shareholder returns. As mentioned earlier, the company has significantly raised its payout ratio and total return ratio as a limited measure for two years. As a result, the interim and year-end dividends for the fiscal year ending March 2025 are also expected to increase significantly. The dividend per share is projected to be 40.0 yen for the interim dividend, an increase of 20.0 yen from the initial estimates, and 40.0 yen for the year-end dividend, an increase of 15.0 yen. This means that the annual dividend per share is expected to increase significantly to 80.0 yen, an increase of 35.0 yen from the initial estimates (it has been decided that the effective date for the interim dividend is December 11, and a dividend of 40.0 yen per share will be delivered).

The shareholder return results for the fiscal year ending March 2024 showed a total return ratio of 40.4% and a consolidated dividend payout ratio of 22.0%. This was due to recognizing special profits from the transfer of fixed assets executed in January 2024. Excluding the impact amount of the special profits from the transfer of fixed assets from the net income attributable to parent company shareholders, the consolidated dividend payout ratio and total return ratio were approximately 52.3% and approximately 58.5%, respectively.

(Written by FISCO Guest Analyst Yoichiro Shimizu)