The Company recognizes management conscious of cost of capital and stock price as one of its important management challenges in order to achieve sustainable growth and medium to long-term enhancement of corporate value. In particular, the Company believes that stably generating capital returns exceeding the cost of equity capital and achieving an optimal balance between growth investment and shareholder returns will contribute to improved corporate value. ① Current Situation Recognition and Assessment The Company's Return on Equity (ROE) for the third quarter of the fiscal year ended May 2026 stood at 51.1%, maintaining a level significantly exceeding the generally assumed cost of equity capital. Additionally, with a Price-to-Book Ratio (PBR) of 8.5 times, the Company recognizes that the market has evaluated to some extent the Company's growth potential and earnings structure. On the other hand, the Company has a high level of financial soundness with an equity ratio of 774.0%, and should there be continued accumulation of retained earnings in the future, this presents a risk of deterioration in capital efficiency, which the Company believes is an issue requiring continuous recognition and consideration from a management perspective. ② Approach to Capital Allocation and Shareholder Returns While prioritizing growth investment, the Company positions the enrichment of shareholder returns as one of its important management initiatives from the perspectives of maintaining and improving capital efficiency and enhancing shareholder value. Under this policy, the Company will commence semi-annual dividend payments beginning at the end of the fiscal year ended May 2026, and has set a dividend payout ratio target of 30%, while implementing stable and continuous shareholder returns in light of business performance trends, financial conditions, and the margin for future growth investment on a comprehensive basis. In implementing dividends, the Company will not rely solely on single-year profit levels, but will base such decisions on careful deliberation and determination by the Board of Directors, taking into account medium to long-term strengthening of the earnings base and the impact on capital efficiency. ③ Management Control and Monitoring System The Company conducts continuous monitoring of capital efficiency indicators including ROE, other financial indicators, and business-specific profitability and growth potential at the Board of Directors and management meetings. Based on these indicators, the Company will make management decisions regarding expansion of existing businesses, investment in new businesses, human investment, and levels of shareholder returns, while being conscious of cost of capital and market evaluation. ④ Dialogue with Shareholders and Investors The Company recognizes the importance of alleviating information asymmetry with the market through constructive dialogue with shareholders and investors, which contributes to the rationalization of cost of capital and stable formation of stock price. Through IR activities, the Company will enrich explanations from both quantitative and qualitative perspectives regarding the Company's growth strategy, earnings structure, capital policy, and shareholder return policy, and will work toward securing appropriate evaluation from the market. Going forward, while taking into account changes in the business environment and capital market, the Company will work toward advancing capital allocation and management initiatives to balance maintenance of capital returns exceeding the cost of capital with sustainable improvement in corporate value. For reference, the policy framework for implementing "management conscious of cost of capital and stock price" has been explained through results briefing materials beginning with the third quarter earnings briefing for the fiscal year ended May 2026. Please refer to the results briefing materials posted on our website. (https://globe-ing.com/ir/presentations/)