Shareholder return policy of Fuji Spinning Holdings <3104>.
The company positions the return of profits to shareholders as one of its most important management tasks, and in terms of profit distribution, the basic policy is to conduct dividends that are stable over the long term and correspond to performance while comprehensively considering the business environment and performance trends, etc. In addition, to enhance corporate value in the medium to long term, internal reserves are secured to invest in the growth of core businesses (abrasives business, chemicals business).
Amid a continuing trend of increasing net assets (excluding new share subscription proceeds), the shareholder equity dividend rate (DOE) has been maintained in the 3% range for the past 14 years. This is evidence that DOE management is adequately performed.
Regarding the company's basic policy of "continuing stable dividends," it has consistently increased or maintained its dividends for the past 16 years. It is expected to continue this in the future. Even in the fiscal year ending March 2024, which experienced a decrease in profits, an annual dividend of 110 yen will be maintained, and for the fiscal year ending March 2025, which is expected to see a recovery in performance, a 10 yen increase in dividends is planned, amounting to an annual dividend of 120 yen (60 yen interim dividend, 60 yen year-end dividend).
In order to expand the profits returned to shareholders through the enhancement of corporate value in the medium to long term, cash allocation will prioritize growth investments while also being conscious of the balance with returns to shareholders.
(Written by: Fisco guest analyst Keiji Shimizu)