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).

E Guardian <6050> changed its dividend policy in May 2024. Previously, it had balanced the distribution of profits to shareholders and the internal reserves enhancement by prioritizing investment in the business, but in the future, it aims to enhance profit distribution to shareholders by increasing the dividend payout ratio. According to the new basic policy, it will consider factors such as investment for sustainable growth and corporate value improvement, balance with financial soundness for preparing for various risks, and outlook for business performance, and distribute profits according to performance, with a target consolidated dividend payout ratio of around 30%. For the September 2024 term, a dividend of 31.0 yen (a 5.0 yen increase) and an expected dividend payout ratio of 30.3% (upward revision) are anticipated.

The company has established a shareholder benefit program to promote the holding of medium to long-term shares. Shareholders as of the end of September every year are eligible, and those who hold 100 or more shares for less than one year will be presented with a QUO card worth 5,000 yen, while those who hold 100 or more shares for one year or more will be presented with a QUO card worth 8,000 yen. With the introduction of the shareholder benefit program alongside the increase in the dividend payout ratio, the appeal of stock investment has increased.

(Written by FISCO Guest Analyst, Hideo Kakuta)