12/32  - Management Resources Allocation


◎ Next, I will explain our approach to management resources allocation. ◎ Looking at our financial platform, our credit rating by major credit rating agencies in Japan improved two years consecutively. Our recent shareholders' equity ratio is nearly 40%, which is the optimal level we have set as a goal thus far. We will work to maintain financial soundness. ◎ As a result, we are now able to focus future management resources allocation on investment for growth and shareholder returns. ◎ For growth investments, we will continue aggressive investments with a focus on aircraft. There is no change in our policy of taking available opportunities for growth as a Group business in order to aim for future increase of income. ◎ For shareholder returns, when we released our current Corporate Strategy last January, we outlined our plans to continue with stable dividends based on the assumption of 5 yen per share. Since then, as shown in the graph, we increased dividends by 1 yen in fiscal 2016 to 6 yen per share. For fiscal 2017, we will continue with 6 yen per share in light of free cash flow levels and other factors. In the future, we will consider further dividend increases and buybacks as we seek to enhance shareholder returns. ◎ We continue to face changes in Japan and overseas to which we must pay constant attention including geopolitical risks. However, our goal is to be a strong corporate Group that can survive and win regardless of external factors. ◎ This concludes my presentation. Thank you for your attention.