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).

ODK Solutions <3839> implements dividends as a shareholder return strategy, and has set the specific numerical target of 'maintaining a stable dividend of 10 yen per year' as one of its mid-term management plans. Based on this policy, the dividend for the fiscal year ending March 2024 was set at the same amount as in the fiscal year ending March 2023, at 10 yen (5 yen at the end of the second quarter and 5 yen at the end of the period). The dividend payout ratio was 30.3%. The expected dividend for the fiscal year ending March 2025 is also set at 10 yen (5 yen at the end of the second quarter and 5 yen at the end of the period), and the expected dividend payout ratio is 23.8%. In addition, as a shareholder benefit program, a QUO card is presented to shareholders who hold one unit (100 shares) or more at the end of March and September each year, based on the duration of continuous ownership (500 yen equivalent for less than three years, 1,000 yen equivalent for three or more years). Furthermore, the company aims to promote efforts to enhance corporate value, such as strengthening management initiatives that are conscious of capital costs and stock prices, as well as enhancing IR activities to increase recognition in the stock market.

(Authored by FISCO guest analyst Masanobu Mizuta)