CHIYODA UTE CO.,LTD.

<h3 class="smt_head2">3 [Dividend Policy]</h3>The Company regards returning profits to shareholders as one of its most important policies. Our basic approach is to strengthen our equity capital through building internal reserves while continuing to pay stable dividends.The Company's basic policy is to pay dividends once per fiscal year as a year-end dividend. The decision-making body for dividend payments is the Annual General Meeting of Shareholders.In the fiscal year ended March 2020, the Company recorded a significant loss due to impairment charges. To strengthen dividend resources, we reduced our capital reserve and profit reserve, transferring the amounts to other retained earnings. Following intensive efforts to recover performance, we achieved two consecutive years of profitability. As of March 31, 2022, our retained earnings from profits improved to 1,381 million yen. However, we recognize that this level remains insufficient.<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:13.5pt;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 the uncertain outlook for when the severe external environment—including COVID-19 impacts and soaring energy prices—will improve, we are advancing capital investments in research and development and rationalization to build a more profitable business structure. At this time, we have determined that prioritizing the strengthening of internal reserves is appropriate.<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:13.5pt;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;">Additionally, on April 25, 2022, Knauf International GmbH announced a tender offer for the Company's shares, and the Company's shares are scheduled to be delisted. The Company has expressed support for this tender offer and resolved to recommend that shareholders participate in it. Taking all these circumstances into comprehensive consideration, the dividend for the current fiscal year is set at 0 yen (no dividend), the same as the previous fiscal year.

We position returning profits to shareholders as one of our most important policies. Our basic approach is to strengthen our equity capital through building up retained earnings while continuing stable dividend payments. We pay dividends once a year as a year-end dividend, with the decision made at our regular shareholders' meeting. At present, we are focused on building up retained earnings to fund research and development and capital investments in rationalization and efficiency improvements.

CHIYODA UTE CO.,LTD. (E01197) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)