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).
No.1 <3562> has changed its shareholder return policy along with the public release of its new mid-term management plan "Evolution 2027" to show a direction towards significantly stronger shareholder returns, aiming to have a stable and continuous shareholder dividend with a target of a 30% dividend payout ratio, regardless of fluctuations in business performance. This is in contrast to their previous aim of an internally stable dividend. Notably, No. 1 has set a minimum dividend rate at the previous year's per-share annual dividend and will continue to offer rising dividends, which could be seen as a significant increase in shareholder returns and a declaration of confidence in profit growth. Additionally, the company plans to take a more proactive stance towards acquiring their own shares and will adopt a policy of "flexible implementation under financial discipline."* (Note: *This is a part of the company's strategy to address the gap between its own perception of the stock price and the market evaluation, ROE, capital efficiency, and CF level.) For the fiscal year ending February 2024, dividends are expected to increase by 1 yen per share from the previous year, as projected 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). Additionally, the company has purchased 340,000 shares of its own stock at a cost of 397 million yen. Despite expected profit declines for the fiscal year ending February 2025, No. 1 plans to continue with their policy of increasing dividends every period and project an increase of 2 yen from the previous year, along with a special dividend of 1 yen per share (a commemorative dividend for their 35th anniversary), to 35 yen per share (mid-term dividend of 17.5 yen and year-end dividend of 17.5 yen).
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No.1 is aiming to close the gap between its own perception of the stock price and the market evaluation through flexible acquisition of their own shares. They have a policy of considering ROE, capital efficiency, and CF level before moving forward with their strategy.
As projected at the beginning of the period, dividends for the fiscal year ending February 2024 will increase by 1 yen per share from last year to 33 yen per share (mid-term dividend of 16.5 yen and year-end dividend of 16.5 yen). The company has also purchased 340,000 shares of its own stock for 397 million yen. Although profit is predicted to decline for the fiscal year ending February 2025, No. 1 plans to continue their policy of increasing dividends every period and are projecting a year-on-year increase of 2 yen, with 35 yen per share (mid-term dividend of 17.5 yen and year-end dividend of 17.5 yen) anticipated, including a commemorative dividend of 1 yen per share for the 35th anniversary of the company's founding.
(Written by Fisco Guest Analyst Ikuo Shibata)