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).

Heisann Holdings <7781> recognizes returning profits to shareholders as an important management issue. As for the profit sharing policy, the company aims to maintain stable dividends with a consolidated dividend payout ratio of over 40% (previously over 30%), securing the necessary internal reserves for future business development and strengthening management structure. Taking into account performance, stock price levels, and financial conditions, the company plans to consider share buybacks with a target of within 50% in the consolidated total return ratio if deemed necessary. For the fiscal year ending June 2024, the dividend per share will increase by 17.0 yen compared to the previous period to 42.0 yen (dividend payout ratio 41.0%), and for the fiscal year ending June 2025, it plans to continue the trend with an increase of 8.0 yen to 50.0 yen (dividend payout ratio 44.4%), marking the fifth consecutive year of dividend increases.

* Consolidated total return ratio = (annual dividend for the current fiscal year + self-purchased stock amount for the following fiscal year) ÷ net income attributable to parent company shareholders for the current fiscal year

(Written by FISCO guest analyst, Jo Sato)