Basic policy

• Aiming for a consolidated dividend on equity (DOE) ratio of 4.0%.
• Flexibly conduct share buyback.

The company regards the return of profits to shareholders as a key management issue to be addressed.
While considering matters from a long-term perspective and upon comprehensively taking into account our financial position and performance, we will strive to secure internal reserves to fortify our competitiveness and increase our earnings.

In order to return profits to shareholders on a stable and ongoing basis, we set shareholder return policy to determine dividends with a target of DOE (consolidated dividend on equity ratio) 3.5% and to flexibly carry out share buy-backs as a way to return profits to shareholders. We raised the target DOE from 3.5 to 4.0% beginning with the year-end dividend for the fiscal year ended in December 2021.

Internal reserves should be used effectively as the underlying funds for efforts to achieve the sustainable enhancement of corporate value, including through proactive R&D investments in new technologies and products that will give rise to new growth, investments
in production facilities to improve quality and further streamline existing business operations, and the reinforcement of business expansion in Japan and overseas.

Changes in Shareholder Returns and Dividends

Fiscal Year	Fiscal Year Ended DEC 31, 2017	Fiscal Year Ended DEC 31, 2018	Fiscal Year Ended DEC 31, 2019	Fiscal Year Ended DEC 31, 2020	Fiscal Year Ended DEC 31, 2021	Fiscal Year Ended DEC 31, 2022	Fiscal Year Ended DEC 31, 2023	Fiscal Year Ending DEC 31, 2024 (Forecasts)
Total dividend	64	96	120	154	156	160	168	58
Interim dividend	32	36	60	60	62	78	82	29
Year-end dividend	32	60	60	94*	94	82	86	29
DOE (%)	1.9	2.8	3.5	4.3	4.1	4.0	3.8	ー
Payout ratio (%)	46.3	58.2	92.3	64.3	36.2	32.7	53.3	39.9
Buy-back (Millions of Yen)	9,999	ー	ー	ー	9,999	ー	ー	ー
Guidelines on dividend policy	tok Medium-Term Plan 2018 - Consolidated payout ratio of over 40% -		tok Medium-Term Plan 2021 - Based on consolidated DOE of 3.5% -			tok Medium-Term Plan 2021 - Based on consolidated DOE of 4.0% -

*Including commemorative dividend of 30 yen.
*The company conducted a 3-for-1 stock split of common stock on January 1.