PALEMO HOLDINGS CO.,LTD.

<h3 class="smt_head2">3 [Dividend Policy]
</h3><p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:18.5pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:8pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;">Our Group considers returning profits to shareholders as one of our most important management policies. Interim dividends are decided by the Board of Directors, while year-end dividends are decided by the General Meeting of Shareholders. Our basic approach to profit distribution is to make flexible dividend decisions by comprehensively balancing investment for future business expansion with retained earnings needed to strengthen our financial position. Our Articles of Incorporation provide for interim dividends as permitted under Article 454, Paragraph 5 of the Companies Act. However, for this fiscal year, we have determined that restoring sound financial health should take priority. As disclosed in our "Financial Results Brief for the February 2025 Fiscal Year (Japanese GAAP) (Consolidated)" on March 28, 2025, we regret to inform you that we have decided to forgo dividend payments. We are committed to achieving continuous business growth and implementing stable dividends to shareholders as soon as possible.<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:18.5pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:8pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;font-size:9pt;">Regarding Class A Preferred Shares, pursuant to Article 10, Section 2 of our Articles of Incorporation, when we pay dividends from surplus, holders of Class A Preferred Shares and registered pledgees of Class A Preferred Shares recorded in the final shareholder register as of the dividend record date shall receive priority over holders of common shares and registered pledgees of common shares. For each Class A Preferred Share, dividends shall be calculated at an annual rate of 5.5% on the sum of the paid-in amount of 1,000,000 yen per Class A Preferred Share and any accumulated unpaid dividends from the previous fiscal year. We will pay Class A Preferred Share dividends of 14,575 thousand yen to Nishi Matsuyachein Co., Ltd. The payment date is May 16, 2025, the day following the resolution of the General Meeting of Shareholders on May 15, 2025.

Our basic policy is to conduct flexible dividend distributions by comprehensively balancing the need to secure internal reserves for strengthening our management foundation and investing in future business expansion. Interim dividends are decided by the Board of Directors, while year-end dividends are decided by the General Meeting of Shareholders. We aim to implement stable dividends at an early stage.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2027	Forecast(2026/03/27)	0	0	0	-
FY2026	Actual(2026/03/27)	0	0	0	-
	Forecast(2025/03/28)	0	0	0	-
FY2025	Actual(2025/03/28)	0	0	0	-
	Forecast(2024/03/29)	0	0	0	-
FY2024	Actual(2024/03/29)	0	0	0	-
	Forecast(2023/03/31)	0	0	0	-
FY2023	Actual(2023/03/31)	0	0	0	-
	Forecast(2022/03/29)	0	0	0	-
FY2022	Actual(2022/03/29)	0	0	0	-
	Revision(2021/06/25)	0	0	0	-
	Forecast(2021/03/30)	0	-	-	-
FY2021	Actual(2021/03/30)	0	0	0	-
	Revision(2021/02/12)	0	0	0	-
	Forecast(2020/09/29)	0	3	3	-
FY2020	Actual(2020/09/29)	6	6	12	-

PALEMO HOLDINGS CO.,LTD. (2778) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)