Balancing Shareholder Returns and Retained Earnings

「We will change from the previous policy of continuing progressive dividends while targeting a consolidated payout ratio of 55% to a new policy of continuing progressive dividends while targeting a DOE of 13%.」

「Based on a resolution of the Board of Directors adopted on 22 May 2025, the Company acquired 150,000 treasury shares for ¥360.750 million on 23 May 2025.」

「At a meeting of the Board of Directors held on 7 November 2025, the Company resolved to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2025, as follows: ① Total dividends: ¥526.854 million ② Dividend per share: ¥54.00.」

「At a meeting of the Board of Directors held on 14 May 2025, the Company resolved to pay a year-end dividend to shareholders listed in the shareholder register as of 31 March 2025, as follows: ① Total dividends: ¥673.646 million ② Dividend per share: ¥68.00.」

「(2) Maximum number of shares that may be acquired: 155,000 shares (percentage of issued shares excluding treasury shares: 1.61%) (3) Maximum total acquisition price: the acquisition price calculated by multiplying the closing price on 8 November 2024 by 155,000 shares (4) Acquisition date: 11 November 2024 (5) Acquisition method: purchase through the Tokyo Stock Exchange's treasury share off-auction purchase transaction (ToSTNeT-3)」

「In addition, regarding the interim dividend for the 30th fiscal year, from 1 April 2024 to 31 March 2025, the Board of Directors resolved at a meeting held on 8 November 2024 to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2024, as follows: ① Total dividends: ¥462.848 million ② Dividend per share: ¥46.00.」

「Regarding the basic policy on profit allocation for the next fiscal year, the Company changed its dividend policy at a meeting of the Board of Directors held on 15 May 2024 and announced a decision to raise it to the following basic policy: “While funding the capital required for growth and development from retained earnings and maintaining financial soundness, we will comprehensively consider consolidated results and future business development, continue to implement progressive dividends, and aim for a consolidated payout ratio of 55%.” The Company intends to implement dividends based on this basic policy.」

「At a meeting of the Board of Directors held on 10 November 2023, the Company resolved to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2023, as follows: ① Total dividends: ¥211.308 million ② Dividend per share: ¥21.00.」

「We initially planned to designate the period from the fiscal year ending March 2024 onward as the monetization period and set the payout ratio at 30%, but brought this forward by one year and set the payout ratio at 30% for the fiscal year ending March 2023. In addition, we adopted a basic policy of setting the payout ratio at 35% from the fiscal year ending March 2024.」

「Regarding the interim dividend for the 28th fiscal year, from 1 April 2022 to 31 March 2023, the Board of Directors resolved at a meeting held on 11 November 2022 to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2022, as follows: ① Total dividends: ¥45.276 million ② Dividend per share: ¥5.00.」

「At a meeting of the Board of Directors held on 13 May 2022, the Company resolved to pay a year-end dividend to shareholders recorded in the shareholder register as of 31 March 2022, as follows: ① Total dividends: ¥90.552 million ② Dividend per share: ¥10.00.」

「On 20 December 2021, the Company's Board of Directors resolved to acquire treasury shares between 23 December 2021 and 27 December 2021, up to 1,300,000 issued shares and a total acquisition price of ¥1,300 million. In December 2021, the Company acquired 1,185,000 shares for ¥1,299.945 million.」

「Regarding the interim dividend for the 27th fiscal year, from 1 April 2021 to 31 March 2022, the Board of Directors resolved at a meeting held on 12 November 2021 to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2021, as follows: ① Total dividends: ¥40.961 million ② Dividend per share: ¥4.00.」

「At a meeting of the Board of Directors held on 14 May 2021, the Company resolved to pay a year-end dividend to shareholders recorded in the shareholder register as of 31 March 2021, as follows: ① Total dividends: ¥71.682 million ② Dividend per share: ¥7.00.」

「Our basic policy of stable dividends over the long term will remain unchanged, but during the period of active investment through the fiscal year ending March 2023, we plan to increase the dividend by ¥1 each fiscal year under a progressive dividend policy.」

「Regarding the interim dividend for the 26th fiscal year, from 1 April 2020 to 31 March 2021, the Board of Directors resolved at a meeting held on 13 November 2020 to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2020, as follows: ① Total dividends: ¥30.721 million ② Dividend per share: ¥3.00.」

「Regarding the interim dividend for the 26th fiscal year, from 1 April 2020 to 31 March 2021, the Board of Directors resolved at a meeting held on 13 November 2020 to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2020, as follows: ① Total dividends: ¥30.721 million ② Dividend per share: ¥3.00.」

「At a meeting of the Board of Directors held on 15 May 2020, the Company resolved to pay a year-end dividend to shareholders recorded in the shareholder register as of 31 March 2020, as follows: ① Total dividends: ¥61.442 million ② Dividend per share: ¥6.00.」

「Based on this approach, our basic policy for dividends from retained earnings is to fund the capital required for growth and development from retained earnings, maintain financial soundness, and provide stable dividends over the long term while comprehensively considering consolidated results, market conditions, historical dividend amounts and payout ratios.」

「Regarding the interim dividend for the 25th fiscal year, from 1 April 2019 to 31 March 2020, the Board of Directors resolved at a meeting held on 8 November 2019 to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2019, as follows: ① Total dividends: ¥30.721 million ② Dividend per share: ¥3.00.」

「At a meeting of the Board of Directors held on 15 May 2019, the Company resolved to pay a year-end dividend to shareholders recorded in the shareholder register as of 31 March 2019, as follows: ① Total dividends: ¥59.454 million ② Dividend per share: ¥6.」

「Treasury shares acquired during the fiscal year: 331,200 shares; ¥199.941 million」

「In addition, on 14 November 2018, the Company's Board of Directors resolved to acquire treasury shares between 15 November 2018 and 14 November 2019, up to 400,000 issued common shares and a total acquisition price of ¥200 million. In December 2018, the Company acquired 220,900 shares for ¥134.560 million.」

「1. Reason To pursue a flexible capital policy in response to changes in the business environment. 2. Class of shares to be acquired Common shares 3. Number of shares to be acquired 400,000 shares (maximum) 4. Total acquisition price ¥200 million (maximum) 5. Period for acquiring treasury shares 15 November 2018 to 14 November 2019」

「For the dividend for the current fiscal year, the Company added a commemorative dividend to the ordinary dividend based on consolidated results for the year. The year-end dividend for the fiscal year ending March 2018 was ¥9.00 per share, resulting in an annual dividend of ¥12.00 per share including the interim dividend for the fiscal year ending March 2018.」

「Regarding the interim dividend for the 23rd fiscal year, from 1 April 2017 to 31 March 2018, the Board of Directors resolved at a meeting held on 10 November 2017 to pay an interim dividend to shareholders listed in the shareholder register as of 30 September 2017, as follows: ① Total dividends: ¥30.304 million ② Dividend per share: ¥3.00.」

「At a meeting of the Board of Directors held on 22 May 2017, the Company resolved to pay a year-end dividend to shareholders recorded in the shareholder register as of 31 March 2017, as follows: ① Total dividends: ¥60.608 million ② Dividend per share: ¥6.」

「Going forward, our basic policy will change to providing stable dividends over the long term, while funding the capital required for growth and development from retained earnings, maintaining financial soundness, and comprehensively considering consolidated results, market conditions, historical dividend amounts and payout ratios. This policy will apply from the interim dividend for the fiscal year ending March 2018.」

「Net assets totaled ¥4,142.910 million, an increase of ¥54.229 million from the end of the previous consolidated fiscal year. This mainly reflected net income attributable to owners of the parent of ¥106.522 million and the recognition of ¥70.366 million in valuation difference on other securities, partially offset by dividend payments of ¥81.567 million and the acquisition of treasury shares for ¥48.085 million.」

「To pursue an agile capital policy in response to changes in the management environment」

「At a meeting of the Board of Directors held on 24 May 2016, the Company resolved to pay a year-end dividend to shareholders recorded in the shareholder register as of 31 March 2016, as follows.」

「The Group considers returning profits to shareholders an important management policy. At the same time, it intends to retain the funds necessary to strengthen its management base and competitiveness and to enhance shareholder returns based on its medium- to long-term strategy.」