Basic Policy Concerning Profit Distribution

The Group recognizes that one of the key management issues is the return of profits to shareholders and its basic policy of profit distribution is to set the total return ratio at 40% or higher, and to continuously pay an annual dividend of at least 46 yen as a stable dividend.In order to further return profits to shareholders based on the progress of the Eighth Medium-term Business Plan, we have decided to increase the year-end dividend by 22 yen from the initial forecast of 24 yen per share to 46 yen per share, which together with the interim dividend of 24 yen per share, will result in an annual dividend of 70 yen per share.And starting from the fiscal year ending March 31, 2027, the Company will aim to pay a dividend of 3% or more of DOE (dividend on equity), and in principle will pay a progressive dividend. In addition, the Company will flexibly return profits to shareholders through share buybacks and other means, taking into consideration market conditions, cash flows, and other factors.Based on this policy, for the next fiscal year, the Group expects to pay an annual dividend of 100 yen (an interim dividend of 50 yen and a year-end dividend of 50 yen).

Trend of Dividends and Payout Ratio

(Unit: Yen/%)