DSB Co., Ltd.

<h3>3 Dividend Policy</h3>
The Company recognizes dividend policy as one of its most important management priorities. Regarding profit distribution, the Company's basic policy is to pay dividends that are appropriate and stable, taking into account the dividend payout ratio while comprehensively considering the strengthening of its management foundation in light of future business developments.
Retained earnings will be used for future business development.
The Company's Articles of Incorporation provide that decisions regarding dividend distributions and other matters specified in Article 459, Paragraph 1 of the Companies Act shall be made by Board of Directors resolution, except where otherwise provided by law. The record date for year-end dividends is March 31 each year, and the record date for interim dividends is September 30 each year.
For dividend distributions of surplus in the current fiscal year, the year-end dividend is set at 5 yen per share, and combined with the interim dividend of 5 yen, the annual dividend is 10 yen per share.

(Note) Dividend distributions of surplus with record dates in the current fiscal year are as follows.

<div>
<table style="table-layout: fixed; width: 648px" cellpadding="0" cellspacing="0">
<colgroup>
<col style="width: 90px"/>
<col style="width: 126px"/>
<col style="width: 216px"/>
<col style="width: 216px"/>
</colgroup>
<tbody>
<tr>
<td style="width: 89px; border-left: 1px solid transparent; border-right: 1px solid transparent"/>
<td style="width: 125px; border-left: 1px solid transparent; border-right: 1px solid transparent"/>
<td style="width: 215px; border-left: 1px solid transparent; border-right: 1px solid transparent"/>
<td style="border-left: 1px solid transparent; border-right: 1px solid transparent"/>
</tr>
<tr style="min-height: 26.6700000762939px">
<td colspan="2" style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px none #000000; vertical-align: middle">

Date of Resolution

</td>
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

Total Dividend Amount (Million Yen)

</td>
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

Dividend per Share (Yen)

</td>
</tr>
<tr style="min-height: 26.6700000762939px">
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px none #000000; border-bottom: 1px solid #000000; vertical-align: middle">

<ix:nonNumeric name="jpcrp_cor:DateOfResolutionDividendsOfSurplus" contextRef="FilingDateInstant_Row1Member" format="ixt:dateyearmonthdaycjk">October 25, 2019</ix:nonNumeric>

</td>
<td style="border-left: 1px none #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

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

</td>
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

<ix:nonFraction name="jpcrp_cor:TotalAmountOfDividendsDividendsOfSurplus" contextRef="FilingDateInstant_Row1Member" unitRef="JPY" decimals="-6" scale="6" format="ixt:numdotdecimal">125</ix:nonFraction>

</td>
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

<ix:nonFraction name="jpcrp_cor:DividendPerShareDividendsOfSurplus" contextRef="FilingDateInstant_Row1Member" unitRef="JPYPerShares" decimals="1" scale="0" format="ixt:numdotdecimal">5.0</ix:nonFraction>

</td>
</tr>
<tr style="min-height: 26.6700000762939px">
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px none #000000; border-bottom: 1px solid #000000; vertical-align: middle">

<ix:nonNumeric name="jpcrp_cor:DateOfResolutionDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" format="ixt:dateyearmonthdaycjk">May 26, 2020</ix:nonNumeric>

</td>
<td style="border-left: 1px none #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

<ix:nonNumeric name="jpcrp_cor:ResolutionDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" escape="false">Board of Directors</ix:nonNumeric>

</td>
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

<ix:nonFraction name="jpcrp_cor:TotalAmountOfDividendsDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" unitRef="JPY" decimals="-6" scale="6" format="ixt:numdotdecimal">125</ix:nonFraction>

</td>
<td style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; vertical-align: middle">

<ix:nonFraction name="jpcrp_cor:DividendPerShareDividendsOfSurplus" contextRef="FilingDateInstant_Row2Member" unitRef="JPYPerShares" decimals="1" scale="0" format="ixt:numdotdecimal">5.0</ix:nonFraction>

</td>
</tr>
</tbody>
</table>
</div>
 

Regarding dividend distributions of surplus for the next fiscal year, if the tender offer for the Company's common shares and share subscription rights by Nomura Research Institute, Ltd. (hereinafter referred to as the "Offeror") is successful, the Company's shares are expected to be delisted and the Company is expected to become a wholly-owned subsidiary of the Offeror through the tender offer and subsequent procedures. Accordingly, the Company has decided that, conditional upon the successful completion of the tender offer, no interim dividend or year-end dividend will be paid for the fiscal year ending March 31, 2021.

Our basic dividend policy is to provide appropriate and stable dividends while considering the dividend payout ratio and comprehensively taking into account the strengthening of our management foundation in light of future business developments. We maintain a policy of using retained earnings for future business expansion. We implement dividends twice a year: a final dividend (with a record date at the end of March) and an interim dividend (with a record date at the end of September).

DSB Co., Ltd. (E03776) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)