Our company pursues the creation of returns exceeding the cost of equity as an important management objective. We have established capital allocation policies and are working to improve capital efficiency through strengthening shareholder returns, appropriate balance sheet management, and maximizing profit and cash flow. (1) Strengthening shareholder returns: We implement proactive share buybacks and stable dividends conscious of profit growth, aiming for a cumulative total payout ratio of 70% or higher over the five-year period from fiscal 2025 to fiscal 2029. (2) Appropriate balance sheet management: Through share buybacks and stable dividends, we realize appropriate levels and composition of capital and debt. The net leverage ratio (excluding financial services) is maintained at 3 times or below. (3) Maximizing profit and cash flow: We continue to achieve profitability of equity-method affiliates and maintain earnings growth of adjusted EBITDA and adjusted EPS in the high single digits or higher, while expanding free cash flow. Through these initiatives, we maintain adjusted ROE that exceeds the cost of equity and aim for sustained expansion of positive spread. Details are disclosed as follows: • 2024 Integrated Report (P.19～P.21): Capital policy approach disclosed based on information as of the end of fiscal 2024. <https://www.lycorp.co.jp/ja/ir/library/report.html> • Fiscal 2024 Full-Year and Fourth Quarter Earnings Announcement Materials (P.24～P.25): Adjusted EPS targets updated based on information as of the end of fiscal 2024. <https://www.lycorp.co.jp/ja/ir/library/presentations/main/014/teaserItems2/04/linkList/02/link/jp2024q4_presentation.pdf> • Fiscal 2025 Second Quarter Earnings Announcement Supplementary Materials (P.14): Capital allocation policy and cost of equity figures updated based on information as of the second quarter of fiscal 2025. <https://www.lycorp.co.jp/ja/ir/library/presentations/main/013/teaserItems2/02/linkList/03/link/jp2025q2_presentation_app.pdf>