Dividends / Shareholder Returns

Dividend Policy

As for the policy for dividend and shareholder return, the Company strives to pay stable and continuous dividends, while taking into account the importance of making investments for medium-to long-term growth and ensuring sufficient internal reserves for the purpose of stabilizing our financial base. With respect to the required level of shareholders’ equity, the Company’s basic philosophy is as follows.

• Prepare a financial basis sound enough for the Company to capture growing business opportunities promptly and accurately
• Ensure sufficiency in comparison with risks associated with business activities and assets
• Maintain the level of financial rating required for stable financing, while sustaining the level of shareholders equity in compliance with regulatory requirements

Considering the current financial situation of the Company, and with the aim of ensuring its financial soundness, and under the policy of not increasing the total amount of interest-bearing debt, we have been actively pursuing various types of capital-based procurement to secure funds for investment in growth businesses without relying solely on interest-bearing debt and have also been working to reduce the balance of interest-bearing debt. Therefore, at the Board of Directors meeting held on February 14, 2024, we decided not to pay a dividend for the fiscal year ended December 31, 2023, considering that allocation of dividend resources to the reduction of interest-bearing debt will ultimately enhance shareholder value.

The timing of the resumption of dividends for the fiscal year ending December 31, 2024, and beyond, is currently undetermined. However, we strive to resume appropriate dividends in a timely and appropriate manner as we continue to work to return to profitability on a consolidated basis and reduce interest-bearing debt as soon as possible.