Capital Policy in the Medium-Term Management Plan – Progress Report –

Overview and Progress of Capital Policy

Kinden Corporation has reached the final year of its medium-term management plan 'Sustainable Growth 2026 – People, Spirit, and the Future –' and reports on the progress of its capital policy. In fiscal 2024, consolidated net sales reached 705 billion yen and consolidated operating income was 60.9 billion yen, achieving growth targets two years ahead of schedule. For fiscal 2025, net sales are projected at 750 billion yen and operating income at 84 billion yen. The company continues to reduce policy shareholdings targeting 10% of net assets, with the number of stocks decreasing from 117 at the end of fiscal 2022 to 89 at the end of fiscal 2024.

Shareholder Returns and Capital Efficiency Initiatives

Regarding shareholder returns, the dividend payout ratio target is set at 40%, with dividends planned to increase from 100 yen at the beginning of fiscal 2025 to 125 yen. The three-year total dividend payout ratio stands at 37.9%, and total shareholder return ratio is 54.0%, both close to target levels. In terms of capital efficiency, the ROE target of over 7% was exceeded with 8.1% in fiscal 2024, and a forecast of 10.6% for fiscal 2025. Since the announcement of the medium-term management plan, the stock price has risen approximately 4.2 times, and the price-to-book ratio (PBR) improved from 0.75 to 2.43.