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).

Aoba-BBT <2464> implements dividends and shareholder benefits as a shareholder return policy. Regarding dividends, the company's management performance for each period, strengthening corporate structure, and enriching internal reserves for future business expansion are comprehensively considered, with the basic policy being to implement continuous dividends while being conscious of the dividend payout ratio. For the fiscal year ending March 2024, a dividend of ¥11.0 per share was implemented for ordinary dividends, the same amount as the previous period (which had a commemorative dividend of ¥5.0). ¥11.0 is also planned for the fiscal year ending March 2025.

In addition, regarding the content of shareholder benefits, depending on the number of shares held, the company offers discounts on tuition fees for their mainland education programs, free online English conversation lessons, exemption from enrollment fees for 'GO School,' discounted or free lodging at the 'ATAMI Sekaie' lodging facility in Atami, etc., which are implemented twice a year at the end of March and September. If revenue growth continues, they are considering further expanding the scope of benefits and dividends.

(Written by FISCO guest analyst, Jo Sato)