PGM Holdings K.K.

<h3 class="smt_head2">3 [Dividend Policy]</h3>

The Company recognizes that returning profits to shareholders is a top management priority. Our basic policy is to distribute stable returns to shareholders twice annually—through interim dividends and year-end dividends—based on a comprehensive assessment of internal reserves for strengthening our corporate foundation, earnings outlook, and future business development.

Our Articles of Incorporation provide that the Board of Directors may resolve to pay interim dividends to shareholders as of September 30 each year, in accordance with Article 454, Paragraph 5 of the Companies Act. Accordingly, the decision-making authority for year-end dividends is the shareholders' meeting, while the decision-making authority for interim dividends is the Board of Directors.

For the current fiscal year, based on the above policy, we have decided to implement a dividend of 10 yen per share. As a result, the dividend payout ratio relative to net income for the period is 66.2%.

Retained earnings will be allocated to investments for strengthening our corporate foundation and future business development.

The dividend distributions for the current fiscal year are as follows:

<div class="tbld" style="margin-left:19.9pt;"><table cellspacing="0" cellpadding="0" style="border-collapse:collapse;border:solid 0pt #000000;width:321.0pt;"><colgroup><col style="width:123.8pt;min-width:123.8pt;"/><col style="width:99pt;min-width:99pt;"/><col style="width:98.3pt;min-width:98.3pt;"/></colgroup><tr style="height:22.5pt"><td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;">Resolution Date</td><td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;">Total Dividend Amount (Million Yen)</td><td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;">Dividend per Share (Yen)</td></tr><tr style="height:22.5pt"><td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;">June 27, 2016 Annual Shareholders' Meeting</td><td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;">1,186</td><td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;">10</td></tr></table> </div>

Our basic policy is to distribute stable dividends twice yearly—at the interim and year-end periods—based on a comprehensive assessment of retained earnings needed to strengthen our corporate foundation, prospects for future business development, and earnings outlook. Retained earnings are allocated to investments that strengthen our corporate foundation and support future business expansion.

PGM Holdings K.K. (E05522) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)