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).

Jaylease <7187> regards returning profits to shareholders as one of the most important management challenges, and aims to achieve stable and continuous dividends while enhancing financial strength and internal reserves for business expansion. Dividends are paid twice a year, at mid-year and year-end. While the dividend payout ratio had been around 30%, the three-year management plan sets a policy of around 40% as the current standard. The annual dividend for the fiscal year ending March 2024 was 40.0 yen (17.5 yen for mid-year, 22.5 yen for year-end), an increase of 10.0 yen from the previous year, and the dividend payout ratio was 39.7%. It is expected that the annual dividend for the fiscal year ending March 2025 will be 45.0 yen (22.5 yen for mid-year, 22.5 yen for year-end), an increase of 5.0 yen from the previous year, and the dividend payout ratio is expected to be 42.3%. Stable dividend increases can be expected due to the long-term prospects of stable profit growth. On March 1, 2024, a stock split was carried out at a ratio of two shares for every one common stock share. In addition, in order to strengthen its relationship with individual shareholders over the long term, a premium shareholder benefit club has been introduced.

(Written by FISCO Guest Analyst, Hideo Kakuta)