Shareholder Returns

Dividends

The Company has a policy of paying dividends twice annually. With respect to the amount of dividends, the Company targets a consolidated dividend payout ratio of 40%. In principle, the Company sets a minimum annual dividend of 50 yen per share (25 yen per share for both interim and year-end dividends), unless business performance deteriorates significantly due to a sudden change in the operating environment. Internal reserves will be utilized for research and development investments, capital expenditures, IT investments, and M&A investments aimed at sustaining long-term business growth, thereby securing shareholder returns from a long-term and comprehensive perspective through improved profitability.

Regarding shareholder returns, the Company believes that it is appropriate to prioritize returns that correspond to business performance while maintaining stable dividends as described above, and it has abolished the special benefits given to shareholders of one unit (100 shares) or more with March 31, 2020 as the date of record.