Shareholder return The dividend policy of NEC Capital Solution <8793> is based on maintaining stable dividends, while securing internal reserves necessary for investment in growth strategies and strengthening financial health, and reviewing appropriate dividend levels taking into account market trends and performance fluctuations. For the dividend of the 2024 fiscal year, a dividend of 130 yen per share (including an interim dividend of 65 yen) with a 20 yen increase compared to the previous fiscal year will be implemented. Regarding the dividend for the fiscal year ending March 2025, the company plans to pay a dividend of 150 yen per share (including an interim dividend of 75 yen) with a 20 yen increase compared to the dividend in the fiscal year ending March 2024, taking into account the profit forecast. The company plans to reward shareholders in accordance with the dividend policy, as it plans to achieve the highest profit on the profit side as a profit forecast. As a result, the company's dividend payout ratio reaches 40.4%. The actual PBR (price-to-book ratio) is in the 0.7x range and is below the PBR 1.0x that the Tokyo Stock Exchange is requesting improvement. Therefore, we believe that the company will actively pursue initiatives to strengthen shareholder return policies along with profit growth in the future, and the trend of increased dividends will continue.

As a basic policy for shareholder returns, Showa Eiho <3537> aims to ensure internal reserves necessary for future business expansion while continuing stable dividends. The target dividend payout ratio is generally more than 25% based on the net income per share for the previous fiscal year.

Based on this policy, the company implemented an annual dividend of 36.0 yen (dividend payout ratio 25.4%) for the fiscal year ending in March 2023, and an annual dividend of 38.0 yen (dividend payout ratio 26.3%) for the fiscal year ending in March 2024. Despite the expected decline in earnings for the fiscal year ending in March 2025, the company plans to distribute an annual dividend of 38.0 yen (expected dividend payout ratio 37.1%).

In December 2023, the company announced the establishment of a shareholder benefit program aimed at increasing the attractiveness of investing in their shares and increasing the number of shareholders who hold shares in the medium to long term. Under this program, a certain number of points are awarded according to the number of shares held, and these points can be exchanged for over 5,000 types of benefits. The program targets shareholders who hold three units (300 shares) or more listed or recorded in the company's shareholder registry as of the end of March each year. One point is equivalent to nearly one yen. The company's policy of implementing shareholder benefits in addition to cash dividends is commendable.

(Written by FISCO guest analyst Noboru Terashima)