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).

Art Nature (7823) recognizes the return of profits to shareholders as one of the most important management issues and has set the basic policy of stable dividend payments to shareholders while considering the strengthening of management foundation, improvement of financial position, and expansion of future business through internal reserves. The company will pay dividends twice a year, intermediate dividends and year-end dividends, from surplus funds. In addition, we are trying to improve the dividend level in response to consolidated performance, with a basic consolidated dividend payout ratio of 40% or more and a lower limit of the current level (annual dividend of 28 yen) while increasing the dividend in one yen units. However, until an ROE of over 10% is achieved, the basic consolidated dividend payout ratio will be 50% or more. In addition, in cases where the consolidated net income for the current period fluctuates significantly, the dividend level may be determined taking into account its effects. Based on this dividend policy, the company has set the dividend per share for the fiscal year ending March 2024 at 28.0 yen (14.0 yen at the end of the second quarter and 14.0 yen at the year-end). For the fiscal year ending March 2025, the dividend per share is planned to be 28.0 yen (14.0 yen at the end of the second quarter and 14.0 yen at the year-end).

(Author: FISCO guest analyst Nobumitsu Miyata)