Axial Retailing Inc.

# Dividend Policy

## (1) Basic Dividend Policy

As a holding company for our group, we believe that returning profits to shareholders is one of our key management policies, while also strengthening the group's financial position and maintaining internal reserves. We base our dividend decisions on a comprehensive assessment of the group's overall performance, future business developments, and dividend payout ratios.

We distribute dividends twice annually—an interim dividend and a year-end dividend. The interim dividend is decided by the Board of Directors, while the year-end dividend is decided by the shareholders' meeting.

Under Article 454(5) of the Companies Act, our Articles of Incorporation provide that the company may pay an interim dividend based on September 30 each year by Board of Directors resolution.

In determining the annual dividend per share, we aim to provide stable, long-term returns to shareholders. We target a dividend payout ratio of approximately 30% of consolidated net income per share, with dividends adjusted each period based on performance.

Retained earnings are allocated to capital investments in new stores and renovations, information systems, logistics infrastructure, and strengthening our financial position.

## (2) Dividend for This Fiscal Year

Based on our dividend policy, we set the annual dividend per share at 27 yen (interim dividend: 11 yen per share; year-end dividend: 16 yen per share). The consolidated dividend payout ratio is 27.1%.

The following table shows dividends with record dates in this fiscal year:

| Resolution Date | Type | Total Dividend Amount (Million Yen) | Dividend per Share (Yen) |
|---|---|---|---|
| November 12, 2024 | Board Resolution | 995 | 11.00 |
| June 19, 2025 | Shareholders' Meeting (Planned) | 1,435 | 16.00 |

**Notes:**
1. The company executed a 4-for-1 stock split on April 1, 2024. The per-share dividend amounts shown reflect the post-split share basis.
2. The June 19, 2025 shareholders' meeting resolution is a proposed agenda item and is not yet finalized as of this report's submission date.

## (3) Recent Dividend History

### ① Dividends

Assuming the stock split had occurred at the beginning of the fiscal year, the following table shows per-share dividend amounts and consolidated dividend payout ratios:

| Fiscal Period | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 (Planned) |
|---|---|---|---|---|---|
| Year Ended | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
| **Pre-Split Basis (Yen)** | | | | | |
| Interim Dividend | 25.00 | 25.00 | 25.00 | 30.00 | — |
| Year-End Dividend | 55.00 | 55.00 | 55.00 | 55.00 | — |
| **Annual Total** | **80.00** | **80.00** | **80.00** | **85.00** | — |
| **Post-Split Basis (Yen)** | | | | | |
| Interim Dividend | 6.25 | 6.25 | 6.25 | 7.50 | 11.00 |
| Year-End Dividend | 13.75 | 13.75 | 13.75 | 13.75 | 16.00 |
| **Annual Total** | **20.00** | **20.00** | **20.00** | **21.25** | **27.00** |
| Consolidated Dividend Payout Ratio | 22.3% | 26.1% | 29.0% | 26.0% | 27.1% |

### ② Total Shareholder Returns

The following table shows share buyback authorization amounts and consolidated total return ratios:

| Fiscal Period | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Year Ended | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
| Share Buyback Authorization (Million Yen) | — | — | — | 1,500 | 2,000 |
| Consolidated Total Return Ratio | 22.3% | 26.1% | 29.0% | 46.0% | 35.5% |

**Notes:**
- Consolidated total return ratio = (Total dividends paid + Share buyback amount) ÷ Net income attributable to parent company shareholders
- FY2024 share buyback execution period: June 14, 2023 – August 2, 2023
- FY2025 share buyback execution period: February 10, 2025 – April 28, 2025

<p>We distribute dividends to shareholders based on a comprehensive consideration of the Group's overall performance, future business developments, and dividend payout ratio. We implement dividends twice annually and aim to maintain an appropriate dividend level linked to each period's performance, targeting approximately 30% of consolidated earnings per share. Retained earnings are allocated to capital investments in new store openings and renovations, information systems, logistics infrastructure, and strengthening our financial position.</p>

Axial Retailing Inc. (8255) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Forecast(2025/05/07)	13	16	29	31.3%
FY2025	Actual(2025/05/07)	11	16	27	27.1%
	Forecast(2024/05/07)	11	14	25	30.2%
FY2024	Actual(2024/05/07)	30	55	85	26.0%
	Forecast(2023/05/02)	30	55	85	32.6%
FY2023	Actual(2023/05/02)	25	55	80	29.0%
	Forecast(2022/05/06)	25	55	80	30.2%
FY2022	Actual(2022/05/06)	25	55	80	26.1%
	Forecast(2021/05/06)	25	55	80	29.3%
FY2021	Actual(2021/05/06)	25	55	80	22.3%
	Revision(2021/02/02)	25	52	80	-
	Forecast(2020/11/04)	25	52	77	-
FY2020	Actual(2020/11/04)	20	52	72	-