NIHON FALCOM CORPORATION

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

The Company regards the return of profits to shareholders as a top management priority. Regarding profit distribution, our basic policy is to secure internal reserves necessary for future business development and strengthening of our management foundation, while considering the operating results of each period, and to pay appropriate dividends from surplus once per year as a year-end dividend.

<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;">The decision-making body for dividend payments is the shareholders' meeting for year-end dividends and the board of directors for interim dividends.

<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;">For the current fiscal year, the year-end dividend was approved at the ordinary shareholders' meeting held on December 18, 2025, consisting of a total dividend amount of 2,050 million yen, or 20 yen per share, comprising a regular dividend of 10 yen per share plus a commemorative dividend of 10 yen per share (commemorating "Trails of Cold Steel the 1st" and the "Trails Series 9 Million Units Sold" milestone). For the next fiscal year, we plan to pay a year-end dividend of 10 yen per share as a regular dividend, plus a commemorative dividend to be determined based on business performance.

<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;">The Company's articles of incorporation provide that interim dividends may be paid with a record date of March 31 each year by board of directors resolution.

<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;">Regarding retained earnings, we intend to strengthen our management foundation while utilizing these funds for future business development.

Our basic dividend policy is to secure retained earnings for future business development and strengthening our management foundation, while providing appropriate dividend distributions once per fiscal year based on each period's business performance. We plan to use retained earnings to strengthen our management foundation and support future business expansion.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Forecast(2025/11/12)	0	10	10	11.4%
FY2025	Actual(2025/11/12)	0	20	20	22.8%
	Revision(2025/09/24)	0	20	10	-
	Forecast(2024/11/13)	0	10	10	12.9%
FY2024	Actual(2024/11/13)	0	20	20	24.1%
	Forecast(2023/11/10)	0	10	10	12.9%
FY2023	Actual(2023/11/10)	0	20	20	22.6%
	Forecast(2022/11/10)	0	10	10	11.2%
FY2022	Actual(2022/11/10)	0	20	20	20.0%
	Revision(2022/09/22)	0	20	20	-
	Forecast(2021/11/11)	0	10	10	12.8%
FY2021	Actual(2021/11/11)	0	20	20	20.6%
	Revision(2021/09/22)	0	10	20	-
	Forecast(2020/11/12)	0	10	10	12.0%
FY2020	Actual(2020/11/12)	0	12	12	14.1%
	Forecast(2020/09/29)	0	6	12	-
FY2019	Actual(2020/09/29)	0	12	12	-

NIHON FALCOM CORPORATION (3723) Dividends

Dividend Policy

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Dividend History (Forecasts, Revisions, Actuals)