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).

Nissou <1444> was newly listed on the Tokyo Stock Exchange Growth Market in July 2022 and is in a growth stage. Therefore, although policies such as dividends are not implemented, the company carries out its business activities while recognizing shareholder returns as an important policy. The company has introduced the "Nissou Premium Benefit Club," a point-based shareholder benefit system with January 31st and July 31st as reference dates each year. The granted points can be exchanged for over 5,000 types of commodities. Furthermore, starting from December 2023, as a long-term holding benefit, shareholders who have held shares for more than a year are eligible to receive 10% more points than shareholders who have held shares for less than a year. In addition, a point carryover system has been introduced, expanding shareholder benefits. The company also intends to consider dividends once profits have solidly accumulated in the future.

(Written by FISCO Guest Analyst Yoichiro Shimizu)