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).

Fuji Dice (6167) has implemented appropriate profit distribution with a goal of a consolidated dividend payout ratio of 50% as part of its shareholder return policy. For the fiscal year ending in March 2023, the company expected to maintain the initial plan of 22 yen, but due to the sale of idle land at the former Osaka plant, it recorded special profits, resulting in an EPS of 65.19 yen compared to the initial plan of 41.41 yen. The company then increased the annual dividend by 10 yen to 32 yen with a goal of a 50% dividend payout ratio. However, for the fiscal year ending in March 2024, without the special profit, the company initially expected a 10 yen reduction in dividends and anticipated an EPS of 44.87 yen. During the third quarter earnings announcement for the fiscal year ending in March 2024, the company revised down its performance forecast. Despite an anticipated EPS of 33.73 yen, the company maintained the initial plan of a 22 yen dividend for stable dividends. In reality, EPS for the fiscal year ending in March 2024 ended at 35.72 yen, but as a commemoration of its 75th anniversary, the company implemented a special dividend of 10 yen and maintained a regular dividend of 22 yen to achieve a total dividend of 32 yen for the year, thereby maintaining the dividend of 32 yen for the fiscal year ending in March 2023.

As part of its new mid-term management plan, the company changed its dividend policy standard from a dividend payout ratio of 50% to a shareholder capital dividend payout rate (DOE) of 4.0%. As a result, for the fiscal year ending in March 2025, the company plans to increase the regular dividend by 8 yen to 40 yen, taking into account the current situation of a PBR of less than 1 and aiming to significantly strengthen shareholder returns.

(Written by FISCO Guest Analyst Hiroshi Okamoto)