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 biggest return of profits to our shareholders.

On the other hand, in order to meet the expectations of diverse shareholders, we recognize the importance of providing an appropriate level of shareholder returns.

Based on the above recognition, after securing the necessary internal reserves for strategic investment, we will pay stable and continuous dividends based on a dividend payout ratio of about 30%, and strive to enhance shareholder returns.
Regarding internal reserves, we will set an appropriate level of capital adequacy ratio of 40% to 70%, control excessive internal reserves, and aim for ROE (return on equity) of 10% or more.

In addition, we will flexibly consider the pros and cons of repurchasing treasury stock 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

	FY2019	FY2020	FY2021	FY2022	FY2023 （Forcast）*
Interim	-	-	-	-	-
Year-end	-	-	-	12.45yen	13.61yen
Annual	-	-	-	12.45yen	13.61yen
Dividend payout ratio	-	-	-	24.9%	317.2％
ROE	19.3%	20.6％	13.7％	13.7%	1.37％

* 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 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.