FineToday Holdings Co., Ltd.

<h3>3 [Dividend Policy]</h3>
　The Company recognizes the importance of building internal reserves to strengthen its financial position and support medium- to long-term growth, while also prioritizing profit returns to shareholders. Based on a comprehensive assessment of profit levels and financial conditions, the Company's basic policy is to implement flexible profit returns in accordance with free cash flow each fiscal period.
　Regarding future dividend distributions, in connection with the planned listing of the Company's shares, the Company aims to enhance management agility and flexibility to better serve shareholder interests. The basic policy is to target a consolidated dividend payout ratio of approximately 50% of projected consolidated net income as a medium- to long-term goal, and to pay dividends twice annually through interim and year-end distributions. The Board of Directors is the decision-making body for these dividends.
 
(Dividend Results for Fiscal Year Ended December 2024)
　Since the establishment of the Company Group in 2021, we have continued efforts to establish an integrated development, manufacturing, and sales structure as an independent corporate group. In the current fiscal period, we determined that this structure has been completed and our management foundation has been stabilized. Based on these achievements, while advancing optimization of capital efficiency and maintaining or improving ROE (return on equity), we implemented the following dividend. Regarding dividend recipients, we determined that paying this dividend is appropriate, taking into account that they accepted the uncertainties related to business stabilization since the Group's establishment as a risk at the time of investment, and that they have provided support in building our management foundation and human resources support for smooth independence toward the completion of the carve-out.
　In determining the dividend amount, we verified the financial soundness of the Company Group following the dividend and the adequacy of operational funds.
 
Payment Resolution Date (Board of Directors Resolution Date)　April 26, 2024
Dividend per Share　　　　　　　58 yen 79 sen
Total Dividend Amount　　　　　17,999 million yen
Effective Date　　　　　　　　　April 30, 2024
Dividend Source　　　　　　　　Other Capital Surplus
Dividend Recipients　　　　　　Two parties: Oriental Beauty Holding (HK) Limited and Shiseido Company, Limited
 
(Restrictions under Senior Facility Agreement)
　Under the Senior Facility Agreement executed on October 31, 2024 with Mizuho Bank, Ltd. as agent, the Company may, following its listing on the Tokyo Stock Exchange, conduct dividend distributions and acquisitions of treasury shares within a range not exceeding 50% of the consolidated net income of the immediately preceding consolidated fiscal year (subject to certain adjustments as defined in the Senior Facility Agreement) during any consolidated fiscal year. However, following listing on the Tokyo Stock Exchange, if the Total Gross Leverage Ratio falls to 3.50:1 or below for two consecutive periods ending on the last day of a consolidated fiscal year and each quarter-end within the most recent 12 months, such dividend restrictions will be removed. The principal terms of the Senior Facility Agreement are described in "Section 2: Business Overview, 5: Material Contracts."

Our basic policy is to return profits to shareholders flexibly in accordance with free cash flow each period, while strengthening our financial position and securing resources for medium to long-term growth through building up retained earnings. We aim for a consolidated dividend payout ratio of approximately 50% as a medium to long-term target, with a basic policy of paying dividends twice a year through interim and year-end dividends.

FineToday Holdings Co., Ltd. (E40186) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)