OKABE CO., LTD.

<h3>3. Dividend Policy</h3>
As part of our efforts to accelerate our corporate value enhancement strategy, we have revised our shareholder return policy (dividend policy) as follows.
 
[Reasons for Revising the Shareholder Return Policy]
In our medium-term management plan "OX-2026 (okabe Transformation 2026)" formulated in February 2024, we revised our dividend policy to place greater emphasis on our sustainable growth and long-term benefits to shareholders, and to enhance dividend stability by monitoring dividend on equity (DOE) while aiming to raise our payout levels over the medium to long term. Following the settlement of litigation in the United States, we reassessed our management challenges and reaffirmed that improving ROE and achieving a PBR exceeding 1.0 times are essential. Based on this, we have decided to revise our shareholder return policy (dividend policy) once again to strengthen profitability through growth investments and practice management with greater awareness of capital costs and capital efficiency to further enhance corporate value. Under our new shareholder return policy (dividend policy), we will raise the dividend payout ratio (from 30% to 40%) and set a specific DOE target of 3%, while aiming for stable growth in ordinary dividends over the medium to long term. We will also flexibly implement special dividends and repurchase shares as appropriate to optimize our capital structure.
 
[Details of Changes to the Shareholder Return Policy]
(Previous Policy)
We position profit returns to shareholders as an important management priority. While recognizing the importance of capital efficiency and maintaining sound financial health, we distribute profits according to business performance. Our basic policy is to target a dividend payout ratio of 30% or higher while monitoring DOE, and to aim for stable growth in dividend levels through achieving sustainable growth.
We distribute surplus earnings twice annually as a basic policy: interim and year-end dividends.
(Revised Policy)
We position profit returns to shareholders as an important management priority. While recognizing the importance of capital efficiency and maintaining sound financial health, we distribute profits according to business performance. Our basic policy is to aim for stable growth in dividend levels over the medium to long term through achieving sustainable growth.
Each period's dividend will be based on a dividend payout ratio of 40% or higher as a principle, with a DOE target of 3% or higher.
We will also flexibly implement special dividends and repurchase shares based on comprehensive judgment, taking into account stock price levels, the need for proactive capital policy execution, and impacts on financial health, in order to improve ROE and achieve a PBR exceeding 1.0 times through optimizing capital structure alongside strengthening profitability.
We distribute surplus earnings twice annually as a basic policy: interim and year-end dividends.
 
For the year-end dividend for the fiscal year ending December 2024, while following the previous dividend policy, we will pay an ordinary dividend of 15 yen per share plus a special dividend of 5 yen per share as part of enhancing capital efficiency and enriching profit returns to shareholders, in order to swiftly implement measures toward early achievement of improved ROE and a PBR exceeding 1.0 times through optimizing capital structure alongside strengthening profitability. The total dividend for the period is 35 yen per share (including interim dividend of 15 yen).
 
(Note) Details regarding surplus earnings dividends with this period as the record date are as follows:
Board resolution date: July 26, 2024 | Dividend per share: 15 yen | Total dividend amount: 697 million yen
Board resolution date: February 26, 2025 | Dividend per share: 20 yen | Total dividend amount: 930 million yen
 
Retained earnings will be effectively utilized for capital expenditures for business expansion, acquisitions, and other purposes.
Our articles of incorporation provide that matters specified in Article 459, Paragraph 1 of the Companies Act, including surplus earnings dividends and share repurchases, may be determined by board resolution unless otherwise provided by law. Our articles also provide that surplus earnings dividends may be distributed twice annually—on the year-end dividend record date (December 31 each year) and the interim dividend record date (June 30 each year)—or on other record dates as determined.

Our basic policy is to maintain a dividend payout ratio of 40% or higher and a dividend on equity (DOE) of 3% or higher as targets, while steadily improving dividend levels over the medium to long term. We pay dividends twice per year (interim and year-end). To enhance ROE and achieve a PBR (price-to-book ratio) above 1.0x, we will flexibly implement special dividends and share buybacks as needed. We plan to use retained earnings for capital expenditures and corporate acquisitions.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Forecast(2026/02/13)	21	21	42	51.8%
FY2025	Actual(2026/02/13)	20	21	41	57.1%
	Forecast(2025/02/14)	20	21	41	60.8%
FY2024	Actual(2025/02/14)	15	20	35	-
	Forecast(2024/02/19)	15	15	30	49.5%
FY2023	Actual(2024/02/19)	12.5	12.5	25	-
	Forecast(2023/02/10)	12.5	12.5	25	30.1%
FY2022	Actual(2023/02/10)	12	12	24	29.5%
	Revision(2022/07/29)	12	12	24	-
	Forecast(2022/02/10)	11	11	22	30.6%
FY2021	Actual(2022/02/10)	10	10	20	36.9%
	Forecast(2021/02/12)	10	10	20	31.8%
FY2020	Actual(2021/02/12)	7	10	17	31.0%
	Forecast(2020/10/30)	7	7	14	-
FY2019	Actual(2020/10/30)	14	14	28	-

OKABE CO., LTD.【JP:5959】Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)