The Company strives to carry out its operations worldwide from a global perspective and to increase its corporate value. With respect to the redistribution of profits to its shareholders, which we consider to be one of the most important management issues, the Company’s basic policy is to determine such distributions after taking into account, among others, its retained earnings for future growth and consolidated earnings performance based on a long-term perspective. With respect to dividends, the Company pays stable and continuous dividends aiming at a consolidated dividend payout ratio of approximately 30%. 

From the fiscal year ending March 2026 onward, the Company will adopt DOE (Ratio of dividends on adjusted equity attributable to owners of the parent) as its shareholder redistribution indicator, with a target of approximately 3.0%, in order to achieve more stable and continuous dividends. We will strive to further improve its capital efficiency and enhance the level of dividends. 
The Company may also acquire its own shares at a timing that it deems optimal, with the goal of implementing a flexible capital strategy.
Retained earnings will be allocated toward financing R&D activities that are essential for the future growth of the Company as well as for capital expenditures and investment programs that will expand its operations for the purpose of improving business results and maintaining the Company’s sound financial condition.
The Company’s basic policy for dividends is to make semiannual distributions (an interim dividend and a year-end dividend). The Company may determine dividends from surplus by a resolution of the Board of Directors.

*   “Equity attributable to owners of the parent”, which is the basis for DOE (Ratio of dividends on adjusted equity attributable to owners of the parent), is based on adjusted amounts that exclude “Other components of equity”, which fluctuate significantly due to the effects of foreign exchange and market conditions.