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).

1. Dividend policy Regarding dividends, the policy is to actively return profits to shareholders while aiming to strengthen financial soundness and expand business. As for internal retained earnings, the policy is to utilize them for strengthening management and future business development. The company pays dividends on an interim and year-end basis. As mentioned above, as part of the company's strategic plan "move.2027", it has strengthened shareholder returns, and aims to increase the dividend payout ratio from approximately 40% in the March 2024 period to 50% or more after the March 2025 period, with a minimum of DOE 3.5%. Additionally, it plans to purchase its own shares up to 10 billion yen (or 5,000 thousand shares) over the next five years. Based on the above dividend policy, it significantly increased the dividend payout for the March 2024 period to 105.0 yen per share (35.0 yen for interim and 70.0 yen for year-end). It also plans to significantly increase the dividend payout to 135.0 yen per share (45.0 yen for interim and 90.0 yen for year-end) for the March 2025 period.

Hashimoto Sogyo Holdings <7570> has established a basic policy of providing stable dividends to shareholders by improving profitability and returning profits based on performance. Regarding internal reserves, the company aims to establish a corporate structure that can respond to changes in the business environment and use it to maintain its financial foundation. Under this policy, the intention is to continue increasing dividends based on a dividend payout ratio of 3% and a dividend payout ratio of 30%. For the fiscal year ending March 2025, the company plans to distribute an interim dividend of 22.0 yen, a year-end dividend of 22.0 yen, and an annual dividend of 44.0 yen. They expect to increase dividends for the 9th consecutive fiscal year since the fiscal year ending March 2017.

As a shareholder benefit, the company presents QUO cards.

2. Shareholder Benefits See above

The company has adopted a shareholder benefit program in order to respond to shareholders' ongoing support, enhance the investment attractiveness of the company's stock, and encourage more shareholders to hold shares in the medium to long term. Specifically, shareholders who hold one unit (100 shares) or more of the company's stock listed on the shareholder register as of March 31 each year are eligible to receive a shareholder benefit of a QUO card (worth 1,000 yen). Furthermore, they plan to consider further shareholder returns in the future.

(Author: FISCO guest analyst Nobumitsu Miyata)