Shareholders and Investors: Engagement Methods

• Shareholder Return
• Communication with Shareholders and Investors

Shareholder Return

Dividends

We consider the profit status of each business year and future business development in a comprehensive and medium to long term manner, and secure internal reserves for actively invest in areas with high future potential and profitability, such as business alliances and development investment for new business development, and establish a stronger management base. In addition, we positions the return of profits to shareholders as one of our key management indicators and pay appropriate dividends.

Specifically, we are maintaining stable annual dividend payments of ¥50 per share, and targets the consolidated dividend payout ratio at a level of 40%.

Shareholder Special Benefit

We are enhancing our shareholder benefits program to bring more satisfaction to individual investors and build long-lasting relationships with them. Since FY2008, we have adopted the shareholder special benefits catalog, in which shareholders can choose items from our original and exclusive products, such as toys and visual software.

Additionally, starting from FY2016, to further enhance our shareholder benefits program, we have also offered a “Kids’ gift certificate” to shareholders who own at least 500 shares, with the value set in accordance with the number of shares held.

Communication with Shareholders and Investors

Dialogue with Shareholders and Investors

The Happinet Group actively holds briefings for individual investors as well as meetings with institutional investors and analysts from Japan and around the world in order to make the Group known to more people and to deepen understanding of our enterprise.

We also take measures to deliver explanatory materials to as many people as possible, such as by streaming briefings over the internet so that even people in remote locations can view them. Furthermore, we provide opportunities for regular communication through general meetings of shareholders and by publishing interim reports and integrated reports.

We will continue to engage in dialogue with shareholders and investors through a variety of activities.

• For more information: To Our Shareholders and Investors

Enhancing Disclosure

The Happinet Group works to enhance the information we provide to our shareholders and investors through IR materials as well as our website, which serves as a tool for information sharing.

Our website is designed around the concept of being easy to understand and use. We have enhanced the information provided on it, establishing a section for our shareholders and investors, and offering management information as well as IR news and data.

In October 2018, we re-designed the IR section of our website, making it easier for users to find the materials they are interested in.
In addition, we added an “About Us” page that summarizes our strengths.

Going forward, we will continue to strive to share suitable IR information in a timely manner.