Basic Policy Concerning Profit Distribution

Recognizing that one of the key management issues is the return of profits to shareholders, the Group endeavors to increase its earnings power and improve its financial position. In addition, our basic policy on the payment of dividends is “Total return ratio of 40% or higher” and ”Ongoing payment of annual dividends of at least 46 yen as stable dividends,“ while comprehensively considering the consolidated business results and the business plans, among other aspects.
（During the period of the Eighth Medium-term Business Plan, since we will pursue treasury share acquisitions funded by reductions in cross-shareholdings, we will aim to improve the total return ratio to at least 50%.）

Basic policy on the payment of dividends until the fiscal year ended March 2024:
Continued to pay stable dividends with a consolidated payout ratio of 30% as the basis
(Excluding the effects of extraordinary income/losses arising from business combination and the amortization of goodwill)

In terms of internal reserves, the Group seeks to use such reserves to fund investment in manufacturing equipment, research and development, and new businesses development, to prepare for future business.

For This fiscal year, the Group expects to pay an annual dividend of 48 yen (an interim dividend of 24 yen).

Trend of Dividends and Payout Ratio

(Unit: Yen/%)