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).

Succed＜9256＞prioritized the development of its business infrastructure in order to maximize shareholder value, and therefore had not implemented dividends in the past. However, the company judged that it had reached a financial situation where it could secure internal reserves for future business development while continuing to provide stable dividends to its shareholders. In addition, the company's articles of incorporation stipulate that year-end dividends will be based on March 31 and interim dividends on September 30, and that surplus dividends will be paid based on the board of directors' resolution. Based on this dividend policy, the company implemented an initial dividend of 14.0 yen per share for the fiscal year ending March 2024. The company plans to pay a dividend of 14.0 yen per share for the fiscal year ending March 2025.

(Author: FISCO guest analyst Nobumitsu Miyata)