SM ENTERTAINMENT JAPAN Co.,Ltd.

<h3>3. Dividend Policy</h3>
Our basic policy on profit distribution is to provide medium- to long-term returns to shareholders by comprehensively considering our financial position and operating results, and distributing profits backed by our business performance. Regarding retained earnings, we aim to use them effectively to achieve sustainable stable growth while making focused and efficient investments to support aggressive business expansion and strengthen our management foundation. This approach enables us to increase corporate value as a comprehensive entertainment company and secure profits for shareholders.
However, because our retained earnings had been negative, we have not paid dividends. Following a resolution at an extraordinary shareholders' meeting held on December 17, 2024, we implemented a reduction in capital and capital reserves and a disposition of surplus, which eliminated the negative retained earnings. This has secured flexibility and agility in implementing future capital policies. Additionally, our Entertainment business, our core operation, returned to profitability in the previous fiscal year, and we achieved significant revenue and profit growth in the current period. Based on our steady business growth, we have determined that we can now pay dividends while securing funds for future growth investments and maintaining a sound management foundation.
Regarding the dividend of surplus with a record date of December 31, 2024, the Board of Directors resolved on December 17, 2024, to pay a total dividend amount of 115,894,901 yen, or 1 yen per common share (initial dividend).
Our basic policy is to pay dividends twice annually: an interim dividend and a year-end dividend. The year-end dividend is determined by the shareholders' meeting, while the interim dividend is determined by the Board of Directors. Our articles of incorporation provide that interim dividends may be paid with June 30 as the record date, based on a Board of Directors resolution.

Our basic policy is to provide shareholder returns backed by business performance, taking into comprehensive consideration our financial position and operating results. We pay dividends twice per year—at the interim and fiscal year-end periods. We allocate retained earnings strategically and efficiently toward active business expansion and investments that strengthen our operational foundation, with the aim of increasing corporate value as a comprehensive entertainment company.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Forecast(2026/02/10)	0	1	1	45.7%
FY2025	Actual(2026/02/10)	0	2	2	61.7%
	Forecast(2025/02/05)	0	2	2	57.1%
FY2024	Actual(2025/02/05)	0	1	1	14.7%
	Revision(2024/12/17)	0	1	1	-
	Forecast(2024/02/06)	0	0	0	0.0%
FY2023	Actual(2024/02/06)	0	0	0	0.0%
	Forecast(2023/02/14)	0	0	0	0.0%
FY2022	Actual(2023/02/14)	0	0	0	0.0%
	Forecast(2022/02/10)	0	0	0	0.0%
FY2021	Actual(2022/02/10)	0	0	0	0.0%
	Forecast(2021/02/15)	0	0	0	0.0%
FY2020	Actual(2021/02/15)	0	0	0	0.0%
	Forecast(2020/11/13)	0	0	0	-
FY2019	Actual(2020/11/13)	0	0	0	-

SM ENTERTAINMENT JAPAN Co.,Ltd. (4772) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)