TAUNS Laboratories, Inc.

<h3>3. Dividend Policy</h3>
The Company recognizes the importance of providing appropriate returns to shareholders. Our basic policy is to implement dividends from retained earnings while maintaining a balance with internal reserves.
Following our listing on the Tokyo Stock Exchange Standard Market in June 2024, we paid dividends based on a 30% payout ratio plus commemorative dividends in the fiscal years ending June 2024 and June 2025.
Taking into account the strengthening of our corporate foundation and investments necessary for future growth strategies, we have established a policy to implement progressive dividends starting at 28 yen per share during the medium-term management plan period from the fiscal year ending June 2026 through the fiscal year ending June 2030, thereby providing stable and continuous profit returns to shareholders. In addition to our dividend policy, we will implement share buybacks as necessary, taking into account the business environment and stock market trends.
The Company's basic policy is to pay dividends from retained earnings once per fiscal year as a year-end dividend, with the decision-making authority vested in the shareholders' meeting. The Company's articles of incorporation also provide that interim dividends may be paid by board of directors resolution with December 31 as the record date.
For the year-end dividend of the current fiscal year, based on the above policy, we plan to pay an ordinary dividend of 12.00 yen per share and a commemorative dividend of 10.00 yen per share to mark the Company's 10th fiscal year since establishment, for a total of 22.00 yen per share. This will be resolved at the ordinary shareholders' meeting scheduled for September 26, 2025. Combined with the interim dividend of 6.00 yen per share, the annual dividend will be 28.00 yen per share (ordinary dividend 18.00 yen, commemorative dividend 10.00 yen), with a payout ratio of 45.1%.
We intend to invest retained earnings effectively in future research and development and the strengthening of our manufacturing capabilities.
Dividends from retained earnings with record dates in the current fiscal year are as follows:
<div>
<table style="table-layout: fixed; width: 648px" cellpadding="0" cellspacing="0">
<colgroup>
<col style="width: 216px"/>
<col style="width: 216px"/>
<col style="width: 216px"/>
</colgroup>
<tbody>
<tr style="height: 40px">
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000">
Date of Resolution
</td>
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000">
Total Dividend Amount
(Thousands of Yen)
</td>
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000">
Dividend per Share
(Yen)
</td>
</tr>
<tr style="height: 1.33px">
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 0px none ">
February 13, 2025
</td>
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 0px none #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000" rowspan="2">
610,709
</td>
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 0px none #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000" rowspan="2">
6.00
</td>
</tr>
<tr style="height: 1.33px">
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 1px solid #000000; border-top: 0px none ; border-right: 1px solid #000000; border-bottom: 1px solid #000000">
Board of Directors
</td>
</tr>
<tr style="height: 1.33px">
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 0px none ">
September 26, 2025
</td>
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 0px none #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000" rowspan="2">
2,265,832
</td>
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 0px none #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000" rowspan="2">
22.00
</td>
</tr>
<tr style="height: 1.33px">
<td style="vertical-align: middle; width: 216px; padding-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; border-left: 1px solid #000000; border-top: 0px none ; border-right: 1px solid #000000; border-bottom: 1px solid #000000">
Ordinary Shareholders' Meeting (Planned)
</td>
</tr>
</tbody>
</table>
</div>

Our basic dividend policy balances appropriate dividend payments with retained earnings. During our medium-term management plan period from 2026 to 2030, we plan to implement stable and continuous profit returns to shareholders through progressive dividends starting from 28 yen per share. Dividends will be paid once annually as a year-end dividend, while retained earnings will be invested in research and development and strengthening our manufacturing capabilities.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Revision(2025/11/14)	14	14	28	-
	Forecast(2025/08/13)	6	22	28	33.1%
FY2025	Actual(2025/08/13)	6	22	28	45.1%
	Forecast(2024/08/13)	6	22	28	46.8%
FY2024	Actual(2024/08/13)	6	21.75	27.75	48.1%
FY2023	Actual(2024/08/13)	9	0	9	29.7%

TAUNS Laboratories, Inc.【JP:197A】Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)