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).

Paul Two Holdings <3657> is implementing dividends as a shareholder return strategy. It has not reduced dividends since listing, but has continued to maintain and increase dividends. The expected dividend per share for the fiscal year ending January 2025 is 16.0 yen. While the dividend has been based on the basic policy of aiming for a dividend payout ratio of 25% so far, the shareholder return policy was changed from the fiscal year ending January 2025. Specifically, the new basic policy aims for a "minimum net asset dividend payout ratio (DOE) of 3%" and a "total return ratio of 30% or more," striving for future increases in shareholder returns. By setting a minimum with DOE, it aims to achieve stable dividends not affected by profits in each period, as well as shareholder returns linked to profits. It also aims to strengthen shareholder benefits through measures such as considering the acquisition of treasury stock.

(Written by FISCO Guest Analyst Yoichiro Shimizu)