SHAREHOLDER RETURNS AND DIVIDENDS

The Group’s basic capital policy is to achieve a balance between strategic investments for sustainable growth in corporate value and stable, continuous returns to shareholders. To establish a competitive advantage over the medium to long term, strategic investments will be actively implemented to strengthen the future earnings base, including:

・Development and opening investments in the hotel business
・Renovation of existing facilities and investments to enhance added value
・Investments in DX (digital transformation) and human capital

While maintaining a solid financial foundation, a dividend on equity (DOE) ratio of 3.0% or higher has been adopted as a key indicator to ensure stable shareholder returns.
Emphasizing DOE enables the realization of stable and sustainable dividends that are less susceptible to short-term fluctuations in business performance.

The basic policy is to pay dividends twice a year, consisting of an interim dividend and a year-end dividend.
In accordance with Article 459 of the Companies Act of Japan, the Articles of Incorporation stipulate that dividends may be determined by resolution of the Board of Directors, enabling a flexible capital policy.
Regarding share repurchases, they will be implemented as appropriate, taking into comprehensive consideration market conditions, financial position, and investment opportunities, with the objectives of:

・Improving capital efficiency
・Enhancing per-share value
・Executing a flexible capital policy

Dividends are positioned as the core of shareholder returns, while optimization of total shareholder return, including share repurchases, is pursued.
A balance among growth investments, financial soundness, and capital efficiency (ROE improvement) is maintained with the aim of maximizing long-term shareholder value.