STELLA CHEMIFA CORPORATION

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<h3 class="smt_head2">3 [Dividend Policy]</h3>
The Company recognizes that providing stable and continuous dividends, based on a comprehensive assessment of financial condition, profit levels, and other factors, is an important management priority. Retained earnings will be allocated to capital expenditures, research and development investments, and other purposes to actively support future business development and enhance corporate value.

Under the Company's Articles of Incorporation as of the end of the current fiscal year, the basic policy is to pay dividends twice annually—an interim dividend and a year-end dividend. The Board of Directors is the decision-making body for both the year-end and interim dividends.

Regarding dividends for the current fiscal year, based on consolidated results, the Company has decided to pay an interim dividend of 85 yen per share (already implemented) and a year-end dividend of 85 yen per share, for a total annual dividend of 170 yen per share. As a result, the dividend payout ratio for the current fiscal year is 85.1%.

Under Article 459, Paragraph 1 of the Companies Act, the Company's Articles of Incorporation provide that "except where otherwise provided by law, dividend decisions shall be made by Board of Directors resolution rather than shareholder approval."

A proposal titled "Amendment to Articles of Incorporation Regarding the Decision-Making Body for Dividend Distribution" has been submitted by shareholders for the ordinary general meeting of shareholders scheduled for June 27, 2025. If this proposal is approved, Article 34 of the Articles of Incorporation will be amended to state: "The Company may determine matters specified in Article 459, Paragraph 1 of the Companies Act, including dividend distribution, by Board of Directors resolution without shareholder approval, except where otherwise provided by law." The policy of paying dividends twice annually—an interim dividend and a year-end dividend—remains unchanged. The decision-making body for these dividend distributions will be either the shareholders' meeting or the Board of Directors for both the year-end and interim dividends.

Additionally, a proposal titled "Acquisition of Treasury Stock" has been submitted by shareholders for the ordinary general meeting of shareholders scheduled for June 27, 2025. If both the "Amendment to Articles of Incorporation Regarding the Decision-Making Body for Dividend Distribution" proposal and this treasury stock acquisition proposal are approved, the Company will acquire its ordinary shares up to a maximum of 1,297,000 shares with a total acquisition price not exceeding 5,577,000,000 yen within one year from the conclusion of this ordinary general meeting, in accordance with Article 156, Paragraph 1 of the Companies Act.

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Dividend distribution for the current fiscal year is as follows:

 

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As disclosed in the "Notice Regarding Establishment of Shareholder Return Policy" dated May 9, 2025, the Company has established the following shareholder return policy for the Fourth Medium-Term Management Plan period (fiscal year ending March 2026 through fiscal year ending March 2028), and will review it at the end of that period.

"The Company recognizes that providing stable and continuous dividends, based on a comprehensive assessment of financial condition, profit levels, and other factors, is an important management priority. During the Fourth Medium-Term Management Plan period (fiscal year ending March 2026 through fiscal year ending March 2028), the Company will balance growth investments with shareholder returns and pursue management that is conscious of capital costs and stock price. The Company targets a cumulative total shareholder return ratio (Note) of 100% or more over the three-year period, and will implement dividends with an annual dividend per share of 170 yen as the minimum. However, for fiscal years in which net income attributable to parent company shareholders fluctuates significantly due to special factors such as extraordinary gains or losses, the Company will determine the shareholder return amount taking such impacts into consideration. Retained earnings will be allocated to capital expenditures, research and development investments, and other purposes to actively support future business development and enhance corporate value."

For the next fiscal year's dividend, based on the Fourth Medium-Term Management Plan policy described above, the Company plans to pay an interim dividend of 85 yen per share and a year-end dividend of 85 yen per share, for a total annual dividend of 170 yen per share. While the shareholder return policy targets a cumulative total shareholder return ratio of 100% or more over the three-year period, this does not mean the Company targets a total shareholder return ratio of 100% or more in each individual fiscal year. The dividend per share is set with an annual minimum of 170 yen, but the total shareholder return ratio and the allocation between dividends and treasury stock acquisitions in each fiscal year will be determined based on future earnings forecasts, stock price trends, and other factors.

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Taking into account our financial condition, profit levels, and other factors comprehensively, our basic policy is to provide stable and continuous dividends. During the Fourth Medium-Term Management Plan period (fiscal years ending March 2026-2028), we aim for a total payout ratio of 100% or more over the three-year period, with annual dividends set at a minimum of 170 yen. Dividends will be paid twice annually—at the interim and year-end periods—while retained earnings will be allocated to capital expenditures, research and development investments, and other purposes.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2027	Forecast(2026/05/14)	90	90	180	64.6%
FY2026	Actual(2026/05/14)	85	95	180	69.6%
	Forecast(2025/05/09)	85	85	170	74.3%
FY2025	Actual(2025/05/09)	85	85	170	70.5%
	Forecast(2024/05/10)	85	85	170	78.6%
FY2024	Actual(2024/05/10)	60	94	154	100.3%
	Revision(2024/02/13)	60	85	145	-
	Forecast(2023/05/09)	60	-	-	-
FY2023	Actual(2023/05/09)	30	30	60	32.3%
	Forecast(2022/05/10)	30	30	60	17.9%
FY2022	Actual(2022/05/10)	24	36	60	14.2%
	Forecast(2021/11/08)	24	26	50	-
FY2021	Actual(2021/11/08)	22	25	47	-

STELLA CHEMIFA CORPORATION (4109) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)