The Company recognizes the importance of properly returning profits to shareholders, our basic policy is accordingly to provide stable shareholder returns while ensuring a balance with internal reserves.
The Company has set a medium-term financial policy for the period from the fiscal year ending May 31, 2025 to the fiscal year ending May 31, 2027, aiming for consistent, solid growth in net sales and accelerated growth in adjusted operating profit. Based on this policy and with comprehensive consideration of factors including the current financial situation, share price trends, and the share dilution ratio resulting from the issuance and exercise of stock options, we will consider repurchasing our own shares in a flexible manner as part of our shareholder returns. In addition, we plan to formulate a quantitative shareholder return policy in the medium term.
With that being said, at this time we have decided not to pay dividends because our business is in a growth phase, during which we should make necessary investments for business expansion by strengthening our financial structure and internal reserves. We believe our decision will ultimately provide the greatest returns to our shareholders.
The Company’s Articles of Incorporation states that “The dividend of surplus, etc., shall be determined in accordance with the provisions of Article 459, Paragraph 1 of the Companies Act, and, unless otherwise specified by law, will be determined by a resolution by the Board of Directors.” When paying dividends of surplus, we basically pay them twice a year as an interim dividend and a year-end dividend.