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).

Apple International <2788> recognizes the importance of returning profits to shareholders while strengthening its management foundation. Its basic policy is to strive for profit return by taking into account comprehensive factors such as business plans, financial conditions, performance, shareholder capital return rate, and dividend payout ratio while paying attention to the continuation and maintenance of stable dividends.

Based on this policy, the dividend per share until the year ending December 2022 was 5.0 yen per year for three consecutive periods. The company's dividend is paid once a year at the end of the fiscal year. The outlook for securing commodities was uncertain due to unstable supply from auto manufacturers for the fiscal year ending December 2023, and it was predicted that sales would decrease by 25.9% compared to the previous year and net income attributed to the parent company's shareholders would decrease by 67.2%, so the annual dividend was set at 5.0 yen per share, the same as the previous year. However, due to an increase in expected results during the fiscal year and actual results significantly surpassing initial expectations, the dividend per share was increased to an ordinary dividend of 10.0 yen and a special dividend of 5.0 yen, totaling 15.0 yen, with a dividend payout ratio of 19.2%. For the fiscal year ending December 2024, assuming a performance prediction of a 4.4% decrease in sales and a 22.4% decrease in net income attributed to the parent company's shareholders compared to the previous year, the dividend per share is set at an ordinary dividend of 10.0 yen per year with a dividend payout ratio of 16.4%, which is a standard increase from the previous 5.0 yen per share, aiming to further increase dividends by achieving better-than-expected performance as in the previous year.

(Authored by FISCO Guest Analyst Ken Segawa)