Dividends

Basic Policy for Profit Distribution

Our basic profit distribution policy is to maintain a stable return of profits to shareholders while securing funds for growth investment along with a medium- to long-term improvement in consolidated operating performance. In addition, we determine profit distribution after considering various factors, using a dividend payout ratio of 30% as a guide, in addition to maintaining stable dividends. Funds retained internally are used to strengthen our production and sales systems in response to changes in the business environment, capital expenditures for growth, the development of new technologies and products, operational rationalization, and other efforts to strengthen competitiveness and improve earnings power over the medium to long term.

Cash Dividends for the Fiscal Year Ending December 31, 2025

On February 13, 2025, we announced our medium-term management plan (2025–2027) (hereinafter, “Medium-Term Management Plan”). In this plan, we have positioned shareholder returns as one of our top management priorities and have decided to revise and strengthen our existing shareholder return policy. Specifically, during the period of the Medium-Term Management Plan, we will adopt a progressive dividend policy, with a minimum dividend of 100 yen per share in the first year, and thereafter we will maintain or increase the dividend. In addition, we will also consider flexible purchase of treasury stock, aiming to achieve a total return ratio of around 40%.

The planned dividend for the fiscal year ending December 31, 2025 is 100 yen per share per annum (consisting of the interim dividend of 50 yen per share and the year-end dividend of 50 yen per share).