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 to “maintain stable dividends, with a dividend payout ratio of at least 30% on a consolidated basis excluding the effects of extraordinary income/losses arising from business combination and the amortization of goodwill as a standard,” comprehensively considering the consolidated business results and the business plans, among other aspects.

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.

The Group plans to pay a year-end dividend of 20 yen per share in the fiscal year under review (up 3 yen from the end of the previous fiscal year), which, combined with interim dividends of 18 yen per share, will bring annual dividends to 38 yen per share, representing a 6 yen increase from the previous fiscal year. As a result, the consolidated dividend payout ratio will be 41.7%. However, excluding the effects of extraordinary income/losses arising from business combinations and the amortization of goodwill mentioned above, the dividend payout ratio will be 30.4% on a consolidated basis.
For the next fiscal year, the Group expects to pay an annual dividend of 40 yen (an interim dividend of 20 yen).

*Trend of Dividends and Payout Ratio

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(Unit: Yen/%)
  Fiscal year
ended March
31, 2010
Fiscal year
ended March
31, 2011
Fiscal year
ended March
31, 2012
Fiscal year
ended March
31, 2013
Fiscal year
ended March
31, 2014
Interim 11 11 13 15 15
Year-end 11 11 15 15 20
Annual Total 22 22 28 30 35
Consolidated
Dividend
Payout Ratio
50.1 45.5 37.7 38.6 42.1
  Fiscal year
ended March
31, 2015
Fiscal year
ended March
31, 2016
Fiscal year
ended March
31, 2017
Fiscal year
ended March
31, 2018
Fiscal year
ending March
31, 2019
Interim 15 15 15 18 20(forecast)
Year-end 15 15 17 20 20(forecast)
Annual Total 30 30 32 38 40(forecast)
Consolidated
Dividend
Payout Ratio
44.4 13.6 37.9 41.7 41.1(forecast)
Payout ratio
based on profit
distribution policy
- 32.0 30.4 30.4 30.6(forecast)

NOTE: An interim dividend system was introduced and started in the fiscal year ended March 31, 2008.
Breakdown of annual dividend for the fiscal year ended March 31, 2014: Ordinary dividend of 30 yen + Commemorative dividend of 5 yen (celebrating 100th company anniversary)

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