CTS Co.,Ltd.

<h3>3. Dividend Policy</h3>
The Company has established returning profits to shareholders as one of its management policies. First, we actively pursue business development and aim to enhance the value of the Company as a whole. Second, profits generated through business activities are returned to shareholders through dividends linked to business performance. Through these measures, we aim to realize both future profit creation and current profit distribution.
The Company's traditional dividend policy does not adopt a stable dividend approach. Instead, our basic policy is to return profits linked to business performance, while giving consideration to strengthening our management foundation and building sufficient internal reserves necessary for business expansion. We calculate the dividend payout ratio and dividend amount based on net income for the period, which represents the final result of utilizing both equity and debt financing resources, and the composition of equity and debt in the financial position at the end of the fiscal year.
In addition, to make the reflection of business performance in dividends clearer based on the above policy, we calculate annual dividends per share in units of 10 yen.
On the other hand, during the current medium-term management plan period, we have adopted a "progressive dividend" approach. The background is as follows: The Company is currently working to transform its business model from traditional hardware-focused rental to primarily providing data and information-related services, based on our "Medium-Term Management Plan (fiscal year ending March 2024 through fiscal year ending March 2026)." During this transition, we anticipate that profits may fluctuate significantly due to changes in revenue structure, efforts to secure human resources, capital investments, and other factors. However, we believe these fluctuations differ from the causal relationship of business performance in our intended ongoing business activities. Therefore, during this medium-term management plan period, we have adopted a "progressive dividend" approach, intentionally departing from pure performance-linked dividend thinking while maintaining and expanding returns to shareholders.
 
The Company's dividend policy is to distribute surplus profits twice annually—as interim and year-end dividends. The Articles of Incorporation provide that the decision-making authority for dividends shall be determined by Board of Directors resolution, except where otherwise provided by law.
The year-end dividend was calculated based on the above dividend policy and determined by Board of Directors resolution at 12.50 yen per share. The annual dividend, including the interim dividend of 12.50 yen per share, totaled 25.00 yen per share, an increase of 2.50 yen compared to the previous fiscal year.
As a result, the dividend payout ratio was 47.9%. We will utilize retained earnings to further strengthen our financial position and support future business development.
 
※ Dividends of surplus with record dates in the current fiscal year are as follows:
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Date of Resolution
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Total Dividend Amount (Million Yen)
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Dividend per Share (Yen)
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October 31, 2024
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524
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12.50
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Board of Directors
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April 28, 2025
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516
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12.50
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Board of Directors
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Our basic dividend policy is performance-linked dividends. However, during the medium-term management plan period (fiscal year ending March 2024 through fiscal year ending March 2026), we adopt a progressive dividend approach. Dividends are paid twice annually (interim and year-end). We retain earnings to strengthen our financial position and support future business development.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Revision(2025/10/30)	14	15	29	-
	Forecast(2025/04/28)	14	14	28	48.2%
FY2025	Actual(2025/04/28)	12.5	12.5	25	47.7%
	Forecast(2024/07/31)	12.5	12.5	25	-
FY2024	Actual(2024/07/31)	10	12.5	22.5	-
	Revision(2024/01/31)	10	12.5	22.5	-
	Forecast(2023/04/28)	10	10	20	43.9%
FY2023	Actual(2023/04/28)	10.5	11.5	22	53.0%
	Forecast(2022/04/28)	10.5	11.5	22	49.3%
FY2022	Actual(2022/04/28)	7	11	18	44.1%
	Revision(2022/01/31)	7	11	18	-
	Revision(2021/10/29)	7	10	17	-
	Forecast(2021/04/30)	7	8	15	40.0%
FY2021	Actual(2021/04/30)	6	8	14	41.0%
	Revision(2021/01/29)	6	6.7	13.7	-
	Forecast(2020/10/30)	6	6.7	12.7	-
FY2020	Actual(2020/10/30)	6	6.2	12.2	-

CTS Co.,Ltd. (4345) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)