Okabe Co., Ltd. has pursued a dividend policy of determining the dividend of surplus in overall consideration of consolidated financial results, strengthening of the corporate structure, the increase of retained earnings in preparation for future business expansion and other factors, while following a basic principle of maintaining stable dividends. Going forward, although the company will retain this basic stance, it will put a greater emphasis on its own continued growth and long-term interests for shareholders and pay attention to the dividend on equity (DOE) ratio and aim to raise its level in the medium- and long-term future with a view to increasing dividend stability. The company will set a rough payout ratio target of 30% or higher.

However, in overall consideration of the management environment, future business developments and others, it will maintain stable dividends for a medium-and long-term future with attention paid to the DOE ratio and continue its positive actions for returning profits to shareholders. The company will not change its policy on the purchase of treasury shares. It will purchase them as appropriate on the basis of overall consideration and judgment on the share price level, the need to carry out flexible and prompt capital policies, impacts on its financial position and other factors.

Before change: The company's basic policy is to maintain stable dividends, a payout ratio of 30% or more, to enhance the return of profits to shareholders. The dividend is also linked to consolidated business results and comprehensively reflects the need to bolster internal reserves to strengthen the company's financial position and fund future business operations, among other needs. The company's basic policy for dividends of surplus is to pay both an interim dividend and a year-end dividend each year.

After change: The company's basic policy is to allocate profits according to performance while maintaining a healthy financial position on the basis of positioning the return of profits to shareholders as a top priority management issue and recognizing importance of capital efficiency. Maintaining a payout ratio of 30% or more, it also basically seeks to steadily raise the dividend level by paying attention to the return on equity (ROE) ratio, by achieving continuous growth and others. The company's basic policy for dividends of surplus is to pay both an interim dividend and a year-end dividend each year.