Policy on Shareholder Returns

The Company recognizes that returning profits to shareholders is one of management's most important tasks, and as such, the Company's total return ratio(*) target has been set at 30%, including purchase of treasury stock. However, the Company is currently in a phase where it must build a stable and sustainable earnings structure and an improved financial structure. Based on this strategy, the Company will continue to offer an annual dividend of 10 yen per share.
(*)[Payment of cash dividends + purchase of treasury stock] / net income

For future consideration, the Company plans on increasing its annual dividend per share once it has completed building a stable and sustainable earnings structure as well as improving financial standing and a positive net cash flow.

The Company has stipulated that an interim dividend can be offered based on a resolution by our Board of Directors and has established a basic policy to offer two dividends per annum in the form of an interim dividend and year-end dividend. The interim dividend is determined by the Company's Board of Directors. The year-end dividend is decided at the general shareholders' meeting.