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 investment for medium- to long-term growth and the enhancement of internal reserves to stabilize 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, under the financial policy of ensuring financial soundness, we have actively promoted various types of capital procurement without relying solely on interest-bearing debt. This approach allows us to secure investment resources for growth while simultaneously working to reduce the balance of interest-bearing debt. We believe that limiting capital outflows due to dividends for the fiscal year will lead to the stability of our financial base and ultimately to increased shareholder value, so we decided not to pay dividends for the fiscal year ended December 31, 2025.

The timing of resuming dividends after the fiscal year ending December 2026 has not been determined at this time, but we will strive to resume dividends in a timely and appropriate manner as we move toward improving consolidated results as early as possible, and reducing interest-bearing debt.