■Shareholder returns

As a general rule, Elematec ＜2715＞ is based on dividends for shareholder returns, and has set a target of “dividend payout ratio of 40% or more,” but from the 2024/3 fiscal year, the dividend policy was changed to “use a dividend payout ratio (consolidated) of 50% or a value calculated using both DOE 3% standards as a guide, whichever is higher.” As reasons for changing the dividend policy, the company cites 1) an increase in cash due to the steady expansion of business results, 2) the increase in stable revenue sources centered on automotive, and 3) the addition of DOE standards so that dividends can be carried out even when profits drop sharply.

Based on this policy, dividends for the fiscal year ending 2024/3 will be reduced due to a drop in business performance, but an annual dividend of 85 yen (40 yen for the interim period, 45 yen at the end of the fiscal year, dividend ratio of 64.8%) was actually implemented based on the company's idea of “rewarding shareholders even a little.” Also, for the fiscal year ending 2025/3, which is in progress, dividends will be reduced if the dividend policy is followed, but it is planned to increase the dividend amount to 90 yen (expected payout ratio 61.4%, DOE 5.2%) per year.

Thus, the attitude of the company, which is actively returning to shareholders while being aware of improving capital efficiency, is worthy of evaluation.

(Written by FISCO Visiting Analyst Noboru Terashima)