Identifying each of the three-year periods from FY2022 through FY2030 as periods in which to achieve, respectively creation, growth, andadvancement, the Company will boost corporate value while working to reach its quantitative targets. We estimate that the cost of capital, as calculated by standard methods, will range from 7% to 9%, and we are maintaining ROE above this level (ROE in the fiscal year ended March 2025 was 11.6%.). However, since we have seen PBR to trend below one, although it has more recently trended above this value, we acknowledge the possibility that the cost of capital required by the markets may exceed our estimates. We recognize continuing to boost ROE and reducing the cost of capital as key issues.
To address these issues, we have identified five key themes, including growing revenue and increasing capital efficiency. We will formulate concrete measures to address each theme and to enhance our capacity to generate cash, while maintaining financial soundness, promoting growth strategies, and providing shareholder returns. The new measures related to shareholder returns established in the MT2027 Medium-term Business Plan, which was formulated in May of this year, call for paying stable, continuous dividends, with annual dividends per share determined on the basis of either 40% of the consolidated payout ratio or a 4.0% DOE, whichever is greater. We are currently weighing the acquisition of treasury stock based on a comprehensive consideration of business performance, market trends, and other matters.