Toho Zinc Co.,Ltd.

<h3 class="smt_head2" style="padding-left:0pt;">3. DIVIDEND POLICY</h3>
<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:9pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;">Our basic approach to profit distribution is to maintain stable, continuous dividends while ensuring adequate retained earnings for business operations. Retained earnings remaining after dividend payments will be used effectively as a resource for improving our financial position and preparing for future business development in a challenging operating environment significantly affected by metal price fluctuations and market conditions. Note that revaluation surplus on land is restricted from being used for dividends under Article 7-2, Paragraph 1 of the Land Revaluation Law.
<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:9pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;font-size:9pt;">To enable flexible profit returns to shareholders, our Articles of Incorporation provide for interim dividends as specified in Article 454, Paragraph 5 of the Companies Act, allowing us to pay dividends twice annually—interim and year-end dividends. The year-end dividend is decided by the shareholders' meeting, while the interim dividend is decided by the Board of Directors.
<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:9pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;font-size:9pt;">In the current fiscal year, we recorded special gains of 2.726 billion yen from the sale of subsidiary shares related to the transfer of the Australian Endeavour Mine and other assets. Conversely, following the announcement of a new business restructuring plan on December 18, 2024, and the decision to suspend major equipment in our zinc smelting operations as part of this plan, we recorded special losses including 7.383 billion yen in impairment losses on fixed assets and 419 million yen in business restructuring costs related to voluntary retirement programs. As a result, net loss attributable to parent company shareholders was 1.458 billion yen.
<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:9pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;font-size:9pt;">Regarding our financial position, while the completion of a 7.5 billion yen third-party capital increase in March 2025 significantly improved individual net assets to 4.723 billion yen, individual retained earnings show a deficit of 33.483 billion yen.
<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:9pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;font-size:9pt;">Given these circumstances, we regret to announce that no dividend will be paid for the current fiscal year.
<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:9pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;font-size:9pt;">Our Group has designated the next five years as a business restructuring period—a period for evolving into a sustainably growing enterprise. We will complete the withdrawal and restructuring of unprofitable operations while strengthening core and growth businesses to expand profitability, with the goal of returning to a dividend-paying position as soon as possible. To enable flexible capital management going forward, we have submitted for approval at the 126th Annual Shareholders' Meeting a proposal to reduce capital and capital reserves and transfer the amounts to other capital surplus. For details on the business restructuring plan, please refer to "Section 2: Business Overview, 1. Management Policy, Operating Environment, and Key Issues to Address, (3) Priority Business and Financial Challenges."
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Our basic policy is to continue providing stable dividends while also building up internal reserves. We distribute dividends twice per year through interim and year-end dividends. We use retained earnings effectively to strengthen our financial position and prepare for future business opportunities.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Forecast(2025/05/15)	0	0	0	-
FY2025	Actual(2025/05/15)	0	0	0	-
	Forecast(2024/05/13)	0	0	0	-
FY2024	Actual(2024/05/13)	0	0	0	-
	Revision(2024/02/14)	0	0	0	-
	Forecast(2023/05/12)	0	50	50	135.8%
FY2023	Actual(2023/05/12)	0	75	75	128.2%
	Forecast(2022/05/13)	0	75	75	20.4%
FY2022	Actual(2022/05/13)	0	75	75	12.9%
	Revision(2022/02/10)	0	75	75	-
	Forecast(2021/05/13)	0	50	50	18.9%
FY2021	Actual(2021/05/13)	0	50	50	12.3%
	Forecast(2021/02/12)	0	50	50	-
FY2020	Actual(2020/11/09)	0	0	0	-

Toho Zinc Co.,Ltd. (5707) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)