Shareholder Return Policy ／ Dividend

Shareholder Return Policy

We believe that achieving sustainable profit growth and improving corporate value by prioritizing strategic investments, including M&A, will lead to the greatest return to our shareholders.

At the same time, in order to meet the expectations of diverse shareholders, we recognize the importance of providing an appropriate level of shareholder returns.

Our core Legal Media business has achieved continuous sales growth backed by a stable customer base centered on "Bennavi," establishing a business structure that generates stable operating cash flows.
In light of this situation, we will revise our previous shareholder return policy (targeting a dividend payout ratio of around 30%) and strive to achieve an optimal balance between growth investments and shareholder returns.

Based on the above recognition, from the fiscal year ending October 2026 onwards, we will set the fulfillment of both of the following conditions as the requirements for raising the dividend payout ratio: (1) maintaining a capital adequacy ratio of 40% or more, and (2) achieving an increase in net assets even after dividend payments.
Upon meeting these requirements, we will pay stable and continuous dividends based on a dividend payout ratio of 40% or more, and strive to enhance shareholder returns.

If these requirements are not met, we will prioritize the maintenance and recovery of financial soundness and appropriately review the dividend level.
In addition, we will aim for an ROE (return on equity) of 10% or more and continue to strive for the improvement of capital efficiency.

Furthermore, starting from the fiscal year ending October 2026, we will introduce an interim dividend and transition to a semi-annual dividend system, with the aim of expanding stable return opportunities for our shareholders and diversifying our investor base.
The record dates will be April 30 of each year for the interim dividend and October 31 of each year for the year-end dividend.

Moreover, we will flexibly evaluate opportunities for share repurchases from the perspective of shareholder returns and consideration for M&A, based on factors such as investment opportunities, the market environment, and the level of internal reserves.

Dividend

* In the fiscal year ending October 31, 2023, our business profitability remained stable. However, there was a decline in profits due to strategic investments, targeting the maximization of sales and profits in the medium to long term, aligned with our medium-term management plan.
Regarding dividends, we have decided on a policy to distribute based on a 20% operating margin. This percentage reflects our business's standard profit target, considering both our financial stability and the aforementioned strategic investments.