Response towards Realizing Management Conscious of Cost of Capital and Stock Price and Promotion of Dialogue with Shareholders and Disclosure

Revision of Medium-Term Management Plan Conscious of Cost of Capital

Takara Standard recognized a gap in cost of capital based on shareholder dialogue and stock price trends regarding the “Medium-Term Management Plan 2026” announced in May 2024. In response, in May 2025, the ROE target was raised from 7% to 8%, and the shareholder return policy was significantly revamped. The dividend payout ratio was set at 50%, and a share buyback of approximately 22 billion yen is planned. By doing so, the total return ratio is targeted at around 130%, aiming to improve capital efficiency. ROE rose to 7.7% in the fiscal year ending March 2026, showing an improving trend in profitability, but PBR remains below 1 times. To further enhance market evaluation, IR activities and information disclosure will be strengthened.

Strengthening Dialogue with Shareholders and Enhancing IR Structure

An IR department was newly established in January 2025, reorganized into an IR office directly under the President in April 2026. This structure facilitates strong leadership from top management in promoting dialogue with the stock market. Diverse engagement opportunities such as small meetings, facility tours, and briefings for individual investors were created, resulting in a substantial increase to 106 IR meetings in the fiscal year ending March 2026. This has deepened communication with shareholders and investors, fostering better understanding of growth strategies and capital policies.