Notice Regarding Changes in Dividend Policy (Introduction of Progressive Dividend)
SMS Co., Ltd. (the “Company”) hereby announces that, on April 28, 2025, its Board of Directors has resolved to change its dividend policy.
１．Reasons for the changes
The Company's capital policy is focused on achieving continuous growth in EPS while ensuring financial soundness and maintaining higher ROE than our cost of equity. We decided to update our dividend policy based on the judgment that EPS growth is achievable over the medium- to long-term. This policy will be applied from the dividend for the fiscal year ending March 31, 2026.
２．Details of the changes
(Before the changes)
Our basic policy for profit distribution is to pay dividends in line with business results for each fiscal year, with a target consolidated dividend payout ratio of 30%, while prioritizing growth investment and considering the financial conditions. However, this does not apply in the event of major investment opportunities such as M&A.
(After the changes)
Our basic policy for profit distribution is to implement a progressive dividend*, with a target consolidated dividend payout ratio of 30%, while prioritizing growth investment and considering the financial conditions. However, this does not apply in the event of major investment opportunities such as M&A.
* Dividend per share to be maintained or increased compared with the previous fiscal year
３．Timing of application
Effective from the dividend for the fiscal year ending March 31, 2026 (to be paid in June 2026)
Notice Regarding Changes in Dividend Policy (Introduction of Progressive Dividend)