■Higashi TwentyOne's ＜9029＞ Growth Strategy
3. Shareholder return policy
Regarding shareholder returns, the policy is to return profits obtained through growth using a consolidated dividend ratio of 30% or more as a guide, while strengthening the financial structure, which is the foundation for long-term development, and maintaining stable dividends. Based on this policy, the dividend for the fiscal year ending 2024/3 was increased by 6.0 yen from the previous fiscal year to 36.0 yen (consolidated at the end of the fiscal year). The payout ratio is 31.4%. Dividends for the fiscal year ending 2025/3 are expected to increase by 2.0 from the previous fiscal year to 38.0 yen (consolidated at the end of the fiscal year). With 4 consecutive dividend increases, the expected payout ratio is 30.6%. In the medium-term management plan 2026, we have set a dividend target of 40.0 yen for the fiscal year ending 2026/3, and we believe that further enhancement of shareholder returns is expected along with medium- to long-term profit growth.
Promoting sustainability management
4. sustainability management
Regarding sustainability management (ESG management), the “Basic Sustainability Policy” was established in December 2021, and the group purpose is “always peace of mind, more surprise” in the medium-term management plan 2026. With people, technology, and IT, we will create new value and lead to a prosperous tomorrow.” It was enacted. As a logistics operator, in addition to aiming for business growth by improving service provision value and further strengthening the IT service business, etc., it is a policy to “contribute to a stable supply of logistics” and “practice of responsible corporate management,” it is also a policy to promote sustainability management.
As an initiative related to climate change, in order to reduce GHG (greenhouse gas) emissions, we will promote the achievement of a low pollution vehicle introduction rate of 10% or more in company-owned vehicles, etc., and strengthen information disclosure based on TCFD (climate-related financial information disclosure task force) recommendations.
In efforts to improve human capital value, we will secure human resources through recruitment strategies, work environment improvement, etc., and promote productivity improvement by improving the skills of existing human resources in order to achieve the goals of the medium-term management plan 2026. Furthermore, in the “Comfortable Workplace Certification System (official name: Driver Work Environment Goodness Certification System),” the company and World Corporation have obtained 2 star certification, and 4 other group companies have obtained 1 star certification. Furthermore, we aim for a ratio of female managers of 10% or more at the end of the 2026/3 fiscal year, a male childcare leave taking rate of 50% or more each term, and a paid leave acquisition rate of 63% or more each term.
In strengthening corporate governance, it transitioned to a company with a nomination committee, etc. in 2019/6, clarified the separation between supervision and execution in management, and promoted rapid business execution through enhanced management supervision functions with high independence and objectivity and drastic transfer of authority. Furthermore, it is our policy to continue evaluating the effectiveness of directors and committees and strive to further strengthen governance.
5. Our point of view
The company appreciates the fact that the results of its business expansion strategy based on an ambitious long-term vision have been clearly shown, such as revising the final year targets of the medium-term management plan 2026 upward. Since it is expected that medium- to long-term growth potential will increase due to the acceleration of growth strategies, I would like to continue to pay attention to the progress of the growth strategy.
(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)