The Company’s policy for shareholder returns

The Company’s basic policy is to return a profit to the Company’s shareholders and increase sufficient retained earnings to achieve stable future business development. More specifically, a total payout ratio (*1) of 30% based on the beginning-of-term business forecast is set as a guideline, in order to secure investments for growth and enhance profit returns to our shareholders, taking into consideration the financial performance of each fiscal year and other factors. While the Company has a policy of paying dividends of surplus once a year, its Articles of Incorporation stipulate that the Company may pay interim dividends as stipulated in Article 454, paragraph (5) of the Companies Act. The decision-making bodies for the dividends of surplus are the General Meeting of Shareholders for the year-end dividend and the Board of Directors for the interim dividend.
The Company intends to pay a year-end dividend of ¥44 per share (ordinary dividend: ¥44 per share) for the current fiscal year, in line with the dividend forecast announced on May 11, 2022. In that event, the total payout ratio would be 31.2%. As stated in the Medium-term Management Plan “WILL-being 2026” (hereinafter referred to as the “Medium-term Plan”) announced today, the Company’s policy for shareholder returns during the period of the Medium-term Plan (from the fiscal year ending March 31, 2024 to the fiscal year ending March 31, 2026) is to pay a progressive dividend (*2) with a total payout ratio of 30% or more. Based on this policy, the dividend forecast for the fiscal year ending March 31, 2024 is ¥44 per share (ordinary dividend: ¥44), with a total payout ratio of 36.0%.

*1 Total payout ratio means the percentage of the total of dividend payout and acquisition of treasury shares to the profit attributable to owners of parent.
*2 Progressive dividend means that dividends shall be either maintained or increased and not be reduced from the previous year.

Acquisition of treasury shares