NANYO CORPORATION

<h3 class="smt_head2">3 [Dividend Policy]</h3>
The Company promotes operational rationalization and efficiency improvements to enhance profitability and strengthen its financial position. Our basic dividend policy is to maintain a stable dividend while working to increase dividend amounts in line with consolidated net income performance. We target a dividend payout ratio of approximately 35% of consolidated net income and pay dividends twice annually—interim and year-end dividends.
Additionally, we maintain a stable annual dividend of 20 yen per share regardless of profit levels. However, if consolidated net income falls below the total dividend amount, dividends will be limited to the amount of consolidated net income.
<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 Mincho';letter-spacing:0pt;line-height:15pt;">The interim dividend is determined by the Board of Directors, while the year-end dividend is determined by the shareholders' meeting.
<p class="smt_text3" 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 Mincho';letter-spacing:0pt;line-height:15pt;font-size:9pt;">Under this policy, for the current fiscal year, we implemented an interim dividend of 10 yen per share. The year-end dividend of 48 yen per share is scheduled to be approved at the ordinary shareholders' meeting planned for June 24, 2025.
As a result, the dividend payout ratio for the current fiscal year is expected to be 68.8%.
<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 Mincho';letter-spacing:0pt;line-height:15pt;">Retained earnings will be allocated to future business activities and further strengthening of our management foundation.
<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 Mincho';letter-spacing:0pt;line-height:15pt;">Our Articles of Incorporation provide that interim dividends may be paid with a record date of September 30 each year by Board of Directors resolution.
 
<p class="smt_text6" style="orphans:0;widows:0;text-align:justify;padding-left:0pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:15pt;">(Note) Dividends with record dates in the current fiscal year are as follows:
<div class="tbld" style="margin-left:0pt;margin-right:0pt;margin-top:0pt;margin-bottom:0pt;">
<table cellspacing="0" cellpadding="0" style="border-collapse:collapse;border:solid 0pt #000000;width:468pt;table-layout:fixed;">
<colgroup>
<col style="width:156pt;min-width:156pt;"/>
<col style="width:156pt;min-width:156pt;"/>
<col style="width:156pt;min-width:156pt;"/>
</colgroup>
<tr style="height:22.5pt;min-height:22.5pt;">
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-bottom-color:#000000;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;overflow:hidden;">Date of Resolution
</td>
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;overflow:hidden;">Total Dividend Amount (Million Yen)
</td>
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;overflow:hidden;">Dividend Per Share (Yen)
</td>
</tr>
<tr style="height:22.6pt;min-height:22.6pt;">
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-top-color:#000000;border-bottom-style:solid;border-bottom-width:0.75pt;border-bottom-color:#000000;border-left-style:solid;border-left-width:0.75pt;border-left-color:#000000;border-right-style:solid;border-right-width:0.75pt;border-right-color:#000000;overflow:hidden;"><p class="smt_tblC" style="orphans:0;widows:0;text-align:center;padding-left:0pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonNumeric contextRef="FilingDateInstant_Row1Member" format="ixt:dateyearmonthdaycjk" name="jpcrp_cor:DateOfResolutionDividendsOfSurplus">November 8, 2024</ix:nonNumeric><p class="smt_tblC" style="orphans:0;widows:0;text-align:center;padding-left:0pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonNumeric contextRef="FilingDateInstant_Row1Member" name="jpcrp_cor:ResolutionDividendsOfSurplus">Board of Directors Resolution</ix:nonNumeric>
</td>
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-left-color:#000000;border-right-style:solid;border-right-width:0.75pt;overflow:hidden;"><p class="smt_tblC" style="orphans:0;widows:0;text-align:right;padding-left:0pt;padding-right:14.2pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonFraction contextRef="FilingDateInstant_Row1Member" decimals="-6" scale="6" format="ixt:numdotdecimal" name="jpcrp_cor:TotalAmountOfDividendsDividendsOfSurplus" unitRef="JPY">125</ix:nonFraction>
</td>
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;overflow:hidden;"><p class="smt_tblC" style="orphans:0;widows:0;text-align:right;padding-left:0pt;padding-right:14.2pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonFraction contextRef="FilingDateInstant_Row1Member" decimals="0" scale="0" format="ixt:numdotdecimal" name="jpcrp_cor:DividendPerShareDividendsOfSurplus" unitRef="JPYPerShares">10</ix:nonFraction>
</td>
</tr>
<tr style="height:22.6pt;min-height:22.6pt;">
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-top-color:#000000;border-bottom-style:solid;border-bottom-width:0.75pt;border-bottom-color:#000000;border-left-style:solid;border-left-width:0.75pt;border-left-color:#000000;border-right-style:solid;border-right-width:0.75pt;border-right-color:#000000;overflow:hidden;"><p class="smt_tblC" style="orphans:0;widows:0;text-align:center;padding-left:0pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonNumeric contextRef="FilingDateInstant_Row2Member" format="ixt:dateyearmonthdaycjk" name="jpcrp_cor:DateOfResolutionDividendsOfSurplus">June 24, 2025</ix:nonNumeric><p class="smt_tblC" style="orphans:0;widows:0;text-align:center;padding-left:0pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonNumeric contextRef="FilingDateInstant_Row2Member" name="jpcrp_cor:ResolutionDividendsOfSurplus">Ordinary Shareholders' Meeting Resolution (Planned)</ix:nonNumeric>
</td>
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-left-color:#000000;border-right-style:solid;border-right-width:0.75pt;overflow:hidden;"><p class="smt_tblC" style="orphans:0;widows:0;text-align:right;padding-left:0pt;padding-right:14.2pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonFraction contextRef="FilingDateInstant_Row2Member" decimals="-6" scale="6" format="ixt:numdotdecimal" name="jpcrp_cor:TotalAmountOfDividendsDividendsOfSurplus" unitRef="JPY">600</ix:nonFraction>
</td>
<td valign="middle" style="vertical-align:middle;border-top-style:solid;border-top-width:0.75pt;border-bottom-style:solid;border-bottom-width:0.75pt;border-left-style:solid;border-left-width:0.75pt;border-right-style:solid;border-right-width:0.75pt;overflow:hidden;"><p class="smt_tblC" style="orphans:0;widows:0;text-align:right;padding-left:0pt;padding-right:14.2pt;margin-top:0pt;margin-bottom:0pt;text-justify:inter-ideograph;text-indent:0pt;font-family:'MS Mincho';letter-spacing:0pt;line-height:10pt;font-size:9pt;"><ix:nonFraction contextRef="FilingDateInstant_Row2Member" decimals="0" scale="0" format="ixt:numdotdecimal" name="jpcrp_cor:DividendPerShareDividendsOfSurplus" unitRef="JPYPerShares">48</ix:nonFraction>
</td>
</tr>
</table> 
</div>

Our dividend policy aims to maintain stable dividends while working to increase dividend amounts in line with consolidated net profit performance. We target a dividend payout ratio of approximately 35% of consolidated net profit and distribute dividends twice annually as our basic policy. We maintain a stable annual dividend of 20 yen per share regardless of profit levels; however, if consolidated net profit falls below the total dividend amount, dividends will be limited to the level of consolidated net profit. Retained earnings will be allocated to future business activities and strengthening our financial position.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Revision(2025/11/10)	10	48	58	-
	Forecast(2025/05/12)	10	42	52	35.1%
FY2025	Actual(2025/05/12)	10	48	58	35.6%
	Revision(2025/02/07)	10	44	54	-
	Revision(2024/11/08)	10	39	49	-
	Revision(2024/10/21)	10	39	40	-
	Forecast(2024/05/10)	10	30	40	30.3%
FY2024	Actual(2024/05/10)	15	86	101	32.2%
	Revision(2024/02/08)	15	77	92	-
	Forecast(2023/05/11)	15	70	85	30.1%
FY2023	Actual(2023/05/11)	15	86	101	30.0%
	Revision(2023/03/07)	15	80	88	-
	Revision(2022/11/07)	15	73	88	-
	Revision(2022/10/24)	15	73	83	-
	Forecast(2022/05/12)	15	68	83	30.2%
FY2022	Actual(2022/05/12)	15	67	82	30.0%
	Revision(2021/11/08)	15	61	76	-
	Revision(2021/10/18)	15	51	76	-
	Forecast(2021/05/11)	15	51	66	30.0%
FY2021	Actual(2021/05/11)	15	55	70	33.5%
	Revision(2021/04/19)	15	44	70	-
	Forecast(2020/10/19)	15	44	59	-
FY2020	Actual(2020/10/19)	15	51	66	-

NANYO CORPORATION【JP:7417】Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)