SD ENTERTAINMENT,Inc.
4650・Standard Market・Services
Governance
The company is a company with an audit and supervisory committee, comprised of 6 directors (of which 3 are outside directors, a 50% outside ratio). It has introduced an executive officer system, separating decision-making/oversight functions from business execution functions. An Internal Control Committee and Management Committee have been established as supplementary bodies, promoting a compliance-focused management structure.
Risk Management
The company does not maintain a dedicated risk management department; instead, the Corporate Planning Department is responsible for cross-organizational risk management and prevention. It has established regulations covering legal risk, information risk, brand risk, disaster risk, and other risks, and has built a system in which each department manages the risks associated with the operations under its jurisdiction.
Shareholder Returns
The company's basic policy is a performance-linked dividend, targeting a payout ratio of 10%–50%, but it remains dividend-free for FY2026 (ending March 2026) as well. Given increased upfront investment costs and one-time profit factors such as subsidy income, priority is given to strengthening earnings power and ensuring financial stability. The dividend for FY2027 (ending March 2027) remains undecided. Share buybacks can be implemented via board resolution under the articles of incorporation. A shareholder benefit reserve of ¥17 million has been recorded.
Dividend Policy
The basic policy is a performance-linked dividend based on the level of net income for the period, targeting a payout ratio of 10%–50%. However, in light of increased costs associated with investments in the growth strategy of the core business (launching new store openings, hiring and training personnel) and one-time profit factors such as subsidy income from the use of grants, priority is given to strengthening earnings power and ensuring financial stability. The year-end dividend for FY2026 (ending March 2026) will be zero (announced on March 24, 2026). The dividend for FY2027 (ending March 2027) remains undecided, and the company plans to promptly announce it once disclosure becomes possible, based on business performance trends and financial condition.
ESG
The company positions human capital as its most important management resource, setting targets of 30% or more for the ratio of female managers (25.0% actual for the current fiscal year) and 80% or more for the annual paid leave utilization rate (83.3% actual for the current fiscal year). While a dedicated governance framework for sustainability-specific matters such as climate change has not yet been separately established, the company is considering ongoing review of this structure.
Last updated: June 30, 2026