Capital Policy

Overview

We believe it is essential to contribute to shareholder value by achieving sustainable growth and increasing our corporate value over the long term. We aim to achieve continuous growth in revenue and EBITDA, and maintain higher ROE than our cost of equity by efficiently utilizing our limited management resources. As huge business opportunities emerge in the market related to an aging society where we operate, we will use the profits earned to make the necessary investments for sustainable growth and long-term enhancement of corporate value. Therefore, 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. We implement share repurchases flexibly, according to financial conditions and share price levels.
* Dividend per share to be maintained or increased compared with the previous fiscal year

■Total Shareholder Return

• *This total Shareholder Return means the profit generated from all capital gains and dividends from the SMS’s shares during a holding period.
• *The closing price as of March 31, 2014, is set at 100, and the value at the end of each fiscal year is shown if you continue to hold the stock.

■Dividends

Historical Dividend per Share

• *Past stock splits are taken into account for the DPS calculation.

■Share Repurchase