We view the return of profits to our shareholders as an important management issue, and accordingly strive to ensure stable dividends while securing internal reserves in pursuit of sustainable growth and the maintenance of a sound management structure.
In line with the key themes set forth in the medium-term business plan, we will allocate retained earnings primarily to the following areas: strategic investments and M&A for overseas business expansion; R&D and human capital investments to enhance non-financial value; core system upgrades to achieve operational efficiency; capital investments for productivity improvement; and structural reforms to drive sustainable growth. Further, we will continue to consider implementing flexible share buyback programs based on cash flow conditions and stock price trends.
In terms of dividends of surplus, we target a dividend on equity ratio (DOE) in the 4% range in the aim of paying stable, continuous dividends.
Based on these policies, and considering our business performance for the current fiscal year and the necessary funds for future growth, we will pay a commemorative dividend of 2 yen per share in appreciation of the longstanding support and cooperation of our shareholders as we celebrate our 100th anniversary in 2025, in addition to our ordinary dividend of 118 yen per share. Accordingly, the Board of Directors has resolved to set the dividend per share for the fiscal year ending December 31, 2024, at 120 yen (DOE: 3.9%). The consolidated dividend payout ratio came in at 75.8%.