Concepts for Realizing Management that is
Conscious of Capital Costs and Stock Prices

Improve profitability

Consolidated business profit of 100.0 billion yen

ROA

Increase asset efficiency

Reduction equivalent to 70% of crossshareholdings

ROE↑

Utilize interest-bearing debt

9.5％

Financialleverage

Improvingcorporate value

PBR of 1

Maintain and improve rating of A+ or higher

Increase capital efficiency

Share buybacks Targeting 70.0 billion yen
Dividend payout ratio of 30％ or morePER↑
１

Cost of equity ↓ ー Expected growth rate ↑Lower cost of equity

Considered dialogue with the market,
and enhanced information disclosures

Improve expected growth rate

Strengthen growth strategies communication
through business strategy briefings, etc.

Strengthen IR activities

Business Profit / ROE / EPS Outlook
 Create a pathway to achieving ROE of over 10%
during the next medium-term plan period (from FY27)
8.8%*Excl.
8.3% negative
goodwill

ROE

7.5%

9.5%
490 yen

7.5%

442

6.5%
*Excl.
negative
332 goodwill

EPS

52.3

FY21billion yen

278

90.0

226

Business profit

100.0

319

71.9

77.0

60.9

FY22

FY23

FY24plan
FY24(計画）

FY25plan
FY25(計画)

New Medium-Term
Management Plan(FY2024-2026)

FY26plan
FY26(計画)

Shareholder Returns


Based on the consolidated financial results for FY23, we have increased the ordinary dividend by 5 yen from the latest dividend forecast to 105 yen per share.
The basic policy of "stable and continuous dividends" remains unchanged, but the dividend payout ratio will be 30% or more
To optimize the amount of equity capital, during the new medium-term management plan period (FY2024-2026) we plan to purchase Share buybacks
Targeting 70.0 billion yen Of this, 50.0 billion yen will be implemented in FY24

129.1%(Dividends per share: yen)

150

75.1%

105yenTotal return ratio

20100
Dividend payout ratio
14.9%

24.1%

19.5%

50

35 yenyen（Specialdividend）

31.4%

24.3%

55 yen45 yen25.1%

70 yen105yen+5yen 32.9%

23.2%

80

yen
(Beginningof period)

Medium-Term Plan Period
Aim for dividend payout ratioof 30% or more

FY23

FY24forecast ～FY26forecast

0FY17

Profit attributable38.3
to owners ofbillion
yenparentpurchase Sharebuybacks

FY18

FY19

FY20

FY21

FY2230.5

22.8

36.1

35.3

43.5

billion yen

billion yen

10.0

billion yen

billion yen

billion yen

billion yen

72.9

billion yen

52.0

billion yen

Targeting 70.0 billion yen（FY24・50.0billion yen）

Cash Allocation

Concept for New Medium-Term
Plan (FY2024-2026)

Basic PolicyStrengthen investments for continued growth
Promote structural reforms to increase capital efficiency
Achieve stable shareholder returns

Strengthen "earning power" through growth investments
Improve "earning power" for existing businesses
Business management that is conscious of improving
productivity

FY24-FY26 Outlook
Cash In

Cash Out

Asset sales

Growth investments
Structural reforms

40.0 billion yen～from80.0 billion yen

Increase capitalefficiency
up toUtilize
leverage

70.0 billion yen

Expandbusinessreceivables

Maintain creditworthiness(ratings of A+ or higher)■Capital Policy
 Reduction equivalent to 70% of cross-shareholdings
 Dividend payout ratio of 30% or more Share buybacks Targeting 70.0 billion yen

FY24・50.0billion yen, and flexibly implement thereafter Reduce capital costs (CAPM of 8.5％－11.5%)■Priority Measures Growth investments of 80.0 billion yen(of which, 70.0 billion yen focused on global businesses)
 Business structure reform, and pursuit of synergies withaffiliated companies, etc.