FUJI ELECTRIC INDUSTRY CO., LTD.

<h3>3. Dividend Policy</h3>
1. Basic Dividend Policy
The Company recognizes returning profits to shareholders as an important management priority. While improving operating performance and strengthening our financial position, we have established a target dividend payout ratio of 50%. Our basic policy is to distribute profits on a long-term stable basis through two annual dividends: an interim dividend and a year-end dividend.
2. Dividend Decision Authority
The year-end dividend is decided by the shareholders' meeting, while the interim dividend is decided by the board of directors.
The Company's articles of incorporation provide that the board of directors may declare an interim dividend with July 31 as the record date each year.
3. Dividend Decision Rationale for the Current Fiscal Year
The domestic economy showed signs of gradual recovery, with some hesitation in personal consumption improvement, but improvements in corporate earnings and production activity.
Looking ahead, we expect employment and income conditions to improve and the economy to continue recovering gradually. However, concerns remain regarding sustained domestic price increases, geopolitical risks overseas, and persistently high interest rates, creating continued uncertainty.
Under these circumstances, the Company focused sales activities domestically on heavy electrical equipment, general industry, and railway/vehicle sectors, and overseas on Asia and the Middle East.
While telephone relays and test terminals declined, our core general-purpose terminal blocks and I/O terminals increased, resulting in net sales of 3,927 million yen (up 5.5% year-over-year).
Regarding profitability, although net sales exceeded the prior year, increases in manufacturing costs and selling, general and administrative expenses resulted in operating profit of 302 million yen (down 24.4% year-over-year) and ordinary profit of 346 million yen (down 18.5% year-over-year).
Net profit for the period was 240 million yen (down 31.3% year-over-year). The prior fiscal year included a gain of 104 million yen on the sale of investment securities, which did not occur in the current fiscal year, resulting in higher revenue but lower profit compared to the prior year.
Based on the above, we have decided to pay a year-end dividend of 16 yen per share (with an interim dividend of 16 yen already paid), for a total annual dividend of 32 yen per share.
As a result, the dividend payout ratio for the current fiscal year is 72.8%, and the dividend yield on net assets is 1.7%.
 
4. Approach to Retained Earnings
To enhance corporate value, we will continue to effectively utilize retained earnings for growth investments, including expansion of production capacity, strengthening of technological development capabilities, quality improvement, information technology initiatives, and human resource development.
The dividend distribution for the current fiscal year is as follows:
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Date of Resolution
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Total Dividend Amount (Thousand Yen)
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Dividend per Share (Yen)
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<ix:nonNumeric name="jpcrp_cor:DateOfResolutionDividendsOfSurplus" contextRef="FilingDateInstant_Row1Member" format="ixt:dateyearmonthdaycjk">September 3, 2024</ix:nonNumeric>

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<ix:nonFraction name="jpcrp_cor:TotalAmountOfDividendsDividendsOfSurplus" contextRef="FilingDateInstant_Row1Member" unitRef="JPY" decimals="-3" scale="3" format="ixt:numdotdecimal">88,897</ix:nonFraction>

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<ix:nonFraction name="jpcrp_cor:DividendPerShareDividendsOfSurplus" contextRef="FilingDateInstant_Row1Member" unitRef="JPYPerShares" decimals="2" scale="0" format="ixt:numdotdecimal">16.00</ix:nonFraction>

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<ix:nonNumeric name="jpcrp_cor:ResolutionDividendsOfSurplus" contextRef="FilingDateInstant_Row1Member" escape="false">Board of Directors Resolution</ix:nonNumeric>

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<ix:nonNumeric name="jpcrp_cor:DateOfResolutionDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" format="ixt:dateyearmonthdaycjk">April 24, 2025</ix:nonNumeric>

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<ix:nonFraction name="jpcrp_cor:TotalAmountOfDividendsDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" unitRef="JPY" decimals="-3" scale="3" format="ixt:numdotdecimal">85,698</ix:nonFraction>

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<ix:nonFraction name="jpcrp_cor:DividendPerShareDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" unitRef="JPYPerShares" decimals="2" scale="0" format="ixt:numdotdecimal">16.00</ix:nonFraction>

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<ix:nonNumeric name="jpcrp_cor:ResolutionDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" escape="false">Annual Shareholders' Meeting Resolution</ix:nonNumeric>

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Our basic policy is to maintain a target dividend payout ratio of 50% and distribute profits to shareholders on a stable, long-term basis through two annual dividends: an interim dividend and a year-end dividend. We will use retained earnings effectively for growth investments, including strengthening production capacity, enhancing technological development capabilities, and improving product quality.

FUJI ELECTRIC INDUSTRY CO., LTD. (6654) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2027	Forecast(2026/03/10)	16	16	32	75.9%
FY2026	Actual(2026/03/10)	16	16	32	72.3%
	Forecast(2025/03/11)	16	16	32	82.9%
FY2025	Actual(2025/03/11)	16	16	32	72.8%
	Forecast(2024/03/12)	16	16	32	107.9%
FY2024	Actual(2024/03/12)	16	19	35	55.5%
	Revision(2023/12/05)	16	19	35	-
	Forecast(2023/03/09)	16	16	32	96.2%
FY2023	Actual(2023/03/09)	16	16	32	68.4%
	Forecast(2022/03/10)	16	16	32	103.8%
FY2022	Actual(2022/03/10)	16	16	32	96.0%
	Forecast(2021/03/09)	16	16	32	99.8%
FY2021	Actual(2021/03/09)	16	16	32	91.0%
	Forecast(2020/09/03)	16	16	32	-
FY2020	Actual(2020/09/03)	16	16	32	-