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).

E・J Holdings <2153> announced the abolition of the shareholder benefit system* from July 2024, together with changes in dividend policy, in order to ensure the fairness of shareholder returns. Regarding the dividend policy, the previous policy was to provide a stable and continuous increase in dividends, with a target dividend payout ratio (DOE) of 3% based on comprehensive considerations of business environment, profit level, and dividend payout ratio, and to implement annual year-end dividends. From the fiscal year ending in May 2025, the company plans to introduce progressive dividends with a target DOE of 3.0% or higher, and to comprehensively consider the business environment, profit level, and dividend payout ratio. The company has also decided to introduce interim dividends. Based on this policy, the dividend per share for the fiscal year ending in May 2025 is planned to be increased by 10.0 yen (DOE 0.2%) compared to the previous year, to 65.0 yen (DOE 3.0%), marking the 8th consecutive year of increase. An interim dividend of 25.0 yen will also be implemented. If the net assets per share continues to increase in the future, further dividend increases can be expected.

*Previously, QUO cards were given to shareholders at the end of November each year, based on the number of shares held (1,000 yen worth for 100 shares to less than 1,000 shares, 3,000 yen worth for 1,000 shares to less than 5,000 shares, and 5,000 yen worth for 5,000 shares or more).

(Written by FISCO guest analyst, Jo Sato)