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).

Delica Foods Holdings Co., Ltd. <3392> has introduced a dividend and shareholder benefit system as a shareholder return strategy. Regarding dividends, the basic policy is to strive for profitability while securing dividend source, and to maintain continuous and stable dividends. In the past, the target dividend payout ratio was about 20%, but starting from the March 2025 period, we will aim for a dividend payout ratio of about 30% and maintain progressive dividends as the large-scale investment cycle has turned. The dividend per share for the March 2024 period will be 12.0 yen (payout ratio of 19.3%) including a commemorative dividend for the 20th anniversary of establishment, an increase of 4.0 yen from the previous period. In addition, for the March 2025 period, even though the commemorative dividend will fall off, we plan to pay the same amount of 12.0 yen (payout ratio of 30.1%). If profit growth continues in the future, an increase in dividends can be expected. Furthermore, in the post-investment recovery phase, we are considering flexible share buybacks.

Regarding shareholder benefits, original fresh vegetable boxes under the 'Seika Biyori' brand or equivalent Quo cards are presented to shareholders at the end of September every year based on the number of shares held (only Quo cards are given for 200 shares or more but less than 400 shares), and additional benefits are provided separately to long-term shareholders (those who have continuously held 2,000 shares or more for 3 years or more).

(Written by FISCO guest analyst, Jo Sato)