Dividend Policy

The Company group believes that generating profits in excess of capital costs will satisfy all stakeholders, including shareholders, by increasing corporate value. Its basic policy on distribution of earnings to shareholders calls for consideration and implementation of such distribution based on comprehensive consideration of matters such as trends in business performance, financial conditions, and future business and investment plans, while maintaining balance with internal reserves. Specifically, the Company aims to retain internal reserves to enable continual growth and development of its businesses with consideration for maintaining a return on equity (ROE) at the 30% level, while distributing any profits in excess of this level to shareholders proactively with consideration for improving liquidity.

The Company's basic policy on dividends of surplus is either once per fiscal year, at the end of the year, or twice per fiscal year, including interim dividends. Decisions on these dividends are made by the Board of Directors for interim dividends and by the General Meeting of Shareholders for year-end dividends.

Dividends

For the current consolidated fiscal year, a year-end dividend will be 36.00 yen per share, based on a consolidated dividend payout ratio target of 50%. We plan to pay an annual dividend of 60 yen per share for the next fiscal year, based on a payout ratio of 50%. The amount of the dividend are detailed below for FY2021.