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).

Furong Comprehensive Leasing<8424> aims to strengthen its solid management foundation and financial structure by taking into account its performance and targeted management indicators. Its basic policy is to strive to enrich shareholder capital, continue to provide long-term and stable dividends, and return benefits to shareholders. Supported by strong performance, it has continued to increase dividends since its listing in 2004.

Regarding the annual dividend amount for the fiscal year ending March 2024, the initial estimate was revised up by 50 yen, and it implemented dividends of 440 yen per share (interim dividend of 195 yen and year-end dividend of 245 yen), which is an increase of 97 yen compared to the previous fiscal year (the dividend payout ratio is 28.0%). For the fiscal year ending March 2025, it is expected to increase dividends by 10 yen, and the estimated dividend per share will be 450 yen (interim dividend of 225 yen and year-end dividend of 225 yen). The company is expected to achieve a dividend payout ratio of over 30% as a target of its medium-term management plan two years ahead of schedule (the expected dividend payout ratio is 30.1%).

We believe that there is still room for increasing dividends in the future due to profit growth.

(Written by Fisco Guest Analyst Ikuo Shibata)