SHAREHOLDER
RETURN

We recognize the importance of returning profits to shareholders, and our basic policy for dividends is to aim for a consolidated dividend payout ratio of 40% or a dividend on equity (DOE) of 5%, while aiming for a sustainable increase in corporate value by investing in business development, research and development, mergers and acquisitions, and other activities necessary for future growth.
To date, we have maintained or increased our dividends, targeting a consolidated dividend payout ratio of 20% or a dividend on equity (DOE) of 5%, in order to provide stable shareholder returns that are not dependent on profit levels. Starting with FY2027, in light of our transition to a phase of profit growth, we will maintain our target dividend on equity (DOE) of 5% while raising our target consolidated dividend payout ratio from 20% to 40%. In this way, we will ensure that our profit growth is reflected in shareholder returns to an even greater extent than before.
We will continue to repurchase our own shares flexibly as necessary, taking into account our business conditions and forecasts. Our policy is to hold treasury stock at approximately 5% of the total outstanding shares, and to retire any excess shares.

We will continue to return profits to our shareholders by taking into consideration each fiscal year's financial results and reviewing our dividend policy, while aiming to continuously increase corporate value.

Currently, we pay out dividends twice a year through an interim dividend and a year-end dividend.