Smile Holdings Inc.
7084・Growth Market・Services
Governance
Company with an Audit and Supervisory Committee (transitioned in June 2023). The Board of Directors consists of 6 members (of whom 4 are outside directors, an outside ratio of approximately 67%), and a Risk Management Committee and Compliance Committee have been established, chaired by the Representative Director and President. During the fiscal year under review, the Board of Directors met 14 times (12 regular meetings and 2 extraordinary meetings).
Risk Management
With the Risk Management Committee and Compliance Committee, chaired by the Representative Director, at the core, the Company has established Risk Management Regulations and Compliance Regulations. In the childcare business, the Company has built a multi-layered audit framework combining on-site guidance, internal audits, administrative audits, and third-party evaluations conducted by the Head Office Operations Division, and has established a system for regularly reporting the risk status to the Board of Directors.
Shareholder Returns
Annual dividend for FY2026 (ending March 2026) is ¥95 per share (interim ¥47.5 + year-end ¥47.5), total dividends of ¥304 million, and a payout ratio of 139.42%. An annual dividend of ¥95 is also planned for FY2027 (ending March 2027). A dividend increase will be considered once the consolidated earnings forecast reflecting the consolidation of WITH Holdings Co., Ltd. is finalized. Share buybacks (¥98 million) have also been implemented.
Dividend Policy
The annual dividend for FY2026 (ending March 2026) is ¥95 per share (¥47.5 as of the second-quarter end + ¥47.5 at year-end), with total dividends of ¥304 million, a payout ratio of 139.42%, and a net asset dividend rate of 4.95%. An annual dividend of ¥95 (¥47.5 as of the second-quarter end + ¥47.5 at year-end) is also planned for FY2027 (ending March 2027). The company recognizes that its payout ratio and dividend yield are at high levels compared to peers, and intends to consider increasing dividends once it completes the calculation of consolidated earnings forecasts reflecting the consolidation of WITH Holdings Co., Ltd.
ESG
The Board of Directors bears oversight responsibility for promoting sustainability, positioning the resolution of social issues through its childcare and early childhood education business as the foundation of its operations. On the human capital front, the company achieved a female ratio in management positions of 72.6% (target: 70% or higher) and a male childcare leave utilization rate of 133.3% (target: 67%). The gender pay gap (for full-time employees) stands at 82.2%, with a target of exceeding 92% by FY2028 (ending March 2028).
Last updated: June 26, 2026