K&O Energy Group Inc.

<h3 class="smt_head2">3 [Dividend Policy]</h3>
The Company's basic policy is to enhance shareholder returns through stable, continuous dividends by balancing investments in core businesses that produce and supply valuable domestic resources on a long-term, stable basis through group companies, with investments in future businesses aimed at growth in new business areas. We comprehensively consider medium- to long-term consolidated earnings and free cash flow. Based on this approach, the Medium-Term Management Plan (Medium-Term Plan 2027) introduces a progressive dividend policy, with a target shareholder return metric of 1.5% dividend on equity (DOE) in the final year of the plan.
Under this policy, the Company pays dividends twice annually in principle: an interim dividend and a year-end dividend. The interim dividend is determined by the Board of Directors pursuant to the Articles of Incorporation based on the Companies Act Article 454(5), while the year-end dividend is determined by the shareholders' meeting.
Regarding the year-end dividend for this fiscal year, while taking performance into account, the Company has decided to increase the dividend per share while maintaining stable dividends, setting the ordinary dividend at 22 yen per share. Combined with the interim dividend of 20 yen, the annual dividend totaled 42 yen per share.
The Company intends to use retained earnings for investments in equipment development, production, and supply infrastructure for natural gas and iodine, as well as for future business development.
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(Note) Dividends of surplus with a record date in this fiscal year are as follows:
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Our basic policy is to enhance shareholder returns through continuous stable dividends, taking into comprehensive consideration our medium to long-term consolidated business performance and free cash flow. Under our medium-term management plan, we have introduced progressive dividends with a target dividend on equity (DOE) of 1.5% in the final fiscal year, and we principally pay dividends twice annually. Retained earnings are allocated to investments in equipment for natural gas and iodine operations, as well as to future business development.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Forecast(2026/02/13)	30	30	60	25.4%
FY2025	Actual(2026/02/13)	24	30	54	17.2%
	Revision(2025/08/12)	24	26	50	-
	Forecast(2025/02/14)	24	24	48	20.6%
FY2024	Actual(2025/02/14)	20	22	42	18.2%
	Revision(2024/08/09)	20	22	42	-
	Forecast(2024/02/14)	20	20	40	23.2%
FY2023	Actual(2024/02/14)	17	21	38	15.7%
	Revision(2023/11/14)	17	21	38	-
	Forecast(2023/02/13)	17	17	34	21.0%
FY2022	Actual(2023/02/13)	15	17	32	17.9%
	Revision(2022/11/10)	15	17	32	-
	Forecast(2022/02/10)	15	15	30	28.5%
FY2021	Actual(2022/02/10)	15	15	30	28.0%
	Forecast(2021/02/12)	15	15	30	31.9%
FY2020	Actual(2021/02/12)	14	16	30	28.1%
	Forecast(2020/11/11)	14	16	30	-
FY2019	Actual(2020/11/11)	14	14	28	-

K&O Energy Group Inc. (1663) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)