■Shareholder return strategy and approach to SDGs

1. Initiatives for shareholder return.

Creek and River Co., Ltd. <4763> has raised the target dividend payout ratio from the conventional level of 20% to 30% as a dividend policy, based on stable dividends, from the fiscal year ending February 2024. Based on this policy, the company plans to increase the per-share dividend for the fiscal year ending February 2025 by 2 yen compared to the previous period, to 43 yen (dividend payout ratio 30.5%), expecting a 14th consecutive dividend increase with continued profit growth in the future. The company is also considering acquiring its own shares taking into account the stock price level, having acquired 0.35 million shares for 496 million yen from April 12, 2024, to August 22, 2024. With good financial performance and ample cash on hand, proactive shareholder returns are expected in the future.

Working with professionals to create businesses and aim for both social development and group growth.

2. Efforts towards SDGs. Regarding SDGs, in order to strengthen sustainability activities within our group, we established a sustainability committee as an advisory body to the Board of Directors in May 2022. We regularly conduct trend surveys related to sustainability, develop management strategies related to sustainability, identify and review important issues (materiality), monitor progress and assess achievement status. In December 2022, we expressed our support for the TCFD (Task Force on Climate-related Financial Disclosure) and created a "Value Report 2023" (issued January 2024) that summarizes our approach to sustainability, progress, goals, etc., which can be viewed on our company's website. In addition, in order to establish targets for 2030 and 2050, we have created a department cross-sectional team consisting of executives, middle management, and young employees, and are proceeding with discussions on current awareness and future ideals with diverse values and ideas.

Within the company group, the Materiality for achieving SDGs includes: 1) Creating opportunities and environments where various professionals can play an active role, 2) Creating new business through a professional network, 3) Efforts towards an environment utilizing the wisdom of professionals, 4) Development of diverse talents and improvement of working environments, 5) Establishment of responsible corporate management bases. The company aims to create a prosperous society by creating businesses together with professionals.

Furthermore, as part of ESG management initiatives, the company has endorsed the Task Force on Climate-related Financial Disclosures (TCFD) on the environmental front, promoting reductions in the use of electricity, water, and paper. The company has set a goal to reduce CO2 emissions from corporate activities by 40% from the fiscal year 2020 to the fiscal year 2030. On the social front, efforts include promoting diversity, women's active participation, employment of people with disabilities, promoting health management, and enhancing work-life balance. The company aims to increase the ratio of women in management positions from 24.1% in the fiscal year ending February 2024 to over 30% by 2026. In terms of governance, the company plans to strengthen the supervisory function within its management structure, establish transparency, ensure swift execution of duties, and establish a risk management system.

(Written by FISCO guest analyst, Jo Sato)