Efforts in shareholder return strategies and SDGs. CareerLink Co. Ltd introduced the dividend and shareholder benefits scheme as part of their efforts in shareholder return strategies. They aim to secure the necessary internal reserves for sustainable growth while comprehensively determining their management performance and general management and continuing to provide proper and stable dividends in their basic policy. Although the earnings performance has decreased in the fiscal year ending in March 2024, they have implemented the same dividend policy and a 4 consecutive increase in dividends to 120.0 yen per share, a 10.0 yen increase year-on-year. They are also planning to provide the same amount of 120.0 yen in the fiscal year ending in March 2025. Furthermore, they plan to maintain a 120.0 yen dividend as a baseline profit for the medium-term management plan period until March 2027 because a secured profit baseline can be expected. The dividend payout ratio is expected to be around 42% in the fiscal year ending in March 2027, but since they have set the lower limit guidance of the dividend payout ratio to about 30%, there is a possibility of increasing dividends if it falls below 30%.

Efforts to comply with shareholder return policy and listing standards.

Mia Hiro's Holdings <7129> recognizes that returning profits to shareholders is one of the important management issues, and has revealed a policy of continuously and stably paying dividends while considering the enrichment of internal reserves for investment funds for future business development and strengthening financial foundation. Based on the same policy, the dividend per share for the year ending March 2024 is the same as the previous period, 30.0 yen, and is planned to be the same 30.0 yen for the year ending March 2025. The company has shown a policy of making it more than 30 yen in the medium-term management plan period, and it is thought that an increase in dividends will be considered if performance expands as planned. The company has also introduced a shareholder benefits system, and gives QUO cards according to the number of shares held to shareholders as of the end of September each year (1,000 yen for less than 200 shares, 2,000 yen for 200 to less than 300 shares, and 3,500 yen for 300 or more shares). In July 2024, it announced that it would expand the criteria for shareholder benefits system twice a year on the last day of March and September (applying the new system from the end of March 2025).

Note that based on the progress of efforts to comply with the listing maintenance standards announced by the company in June 2024, the market capitalization at the time of March 2024 was 0.85 billion yen (stock price of 1,049 yen), which is below the listed maintenance standard of 1 billion yen for the Tokyo Stock Exchange Standard Market (other standards are clear). The company is working to increase the number of circulating shares, improve the liquidity (volume) of stocks, and improve corporate value to meet the listing maintenance standards by the end of March 2026. Regarding the increase in circulating shares, it will be gradually liquidated as necessary, including the exercise of the sixth subscription rights issued in August 2023 (265,000 shares have not been exercised as of the end of March 2024) and the exercise of stock options by employees and the shareholdings of major shareholders. In addition, to improve the liquidity of stocks, we will promote and strengthen IR activities, and improve information disclosure for investors, and expand the shareholder benefits system introduced in 2022 to activate transactions by individual investors. We also plan to continue stable dividends of 30 yen or more per year.

Efforts towards SDGs

Based on its management philosophy, the company strives to become a company that contributes to solving social issues and is required perpetually by promoting business strategies. We have implemented various initiatives related to SDGs in each business, and will continue to promote activities aimed at achieving our goals.

We are working on human capital management by aiming to improve productivity through workplace creation that ensures safety, health and job satisfaction, and promoting work style reform and diversity. As for the indicators aiming for the medium-term management plan period, we aim to increase the ratio of female managers from 35% in the year ending March 2024 to 40% or more in the year ending March 2027, and aim to increase the childcare leave acquisition rate of male employees from 50% to 50% or more.

(Written by FISCO guest analyst, Jo Sato)