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).

Koa Shoji Holdings Co., Ltd. <9273> is implementing dividends as a shareholder return strategy. The basic policy of dividends positions profit return to shareholders as an important management issue, with the basic policy of 'principally increasing dividends' each year. While the previous basic policy was to implement a stable dividend policy, the dividend policy was changed from the June 2025 period to clearly demonstrate the attitude towards enhancing profit return to shareholders. In order to respond to future corporate growth and changes in the business environment, the company aims to enhance necessary internal reserves, invest in business areas expected to grow in the future, and strive for sustained corporate growth and the improvement of medium- to long-term corporate value and shareholder value.

For the June 2024 period, the annual dividend per share was increased by 1.0 yen to 13.0 yen compared to the previous period, continuing the trend of increasing dividends since the June 2019 period. For the June 2025 period, a planned increase of 1.0 yen to 14.0 yen is also in place. Although the dividend payout ratio was 17.5% for the June 2024 period and is expected to be 19.1% for the June 2025 period, which is lower than the average in the prime market, the company plans to meet shareholder expectations by investing funds in growth areas within the group to improve performance and continue increasing dividends.

In addition to year-end dividends, the company implements a shareholder benefit program. Based on the end of June, shareholders with 200 or more shares will receive 1,000 yen worth of QUO cards, and shareholders with 200 or more shares and who have held them for more than a year will receive 2,000 yen worth of QUO cards. The aim is to encourage shareholders to hold the company's stock for as long as possible in the medium to long term.

Furthermore, to maintain the stock market requirement of a float ratio of 35% or more, it is the company's policy to strive towards sustainable enhancement of corporate value by continuing to actively engage in IR activities and shareholder return strategies. We believe that steadily expanding performance in line with medium- to long-term business plans is paramount, and we look forward to monitoring the progress of the business plans in the future.

(Written by FISCO guest analyst Nozomi Kokushige).