Shareholder Returns Policy and Dividends

We aim to achieve total shareholder returns, comprising direct returns through dividends and medium-to-long-term share price gains. Based on this approach, our basic policy is to focus on strategic investment for sustainable growth, thus aiming for maximization of corporate value. At the same time, we will enhance capital efficiency with a view to increasing dividends and our share price over the medium to long term.
Upon determining dividends, we aim to achieve long-term, stable, and continuous enhancement of returns with emphasis given to consolidated business results and free cash flow, and set the minimum level of Dividend on Equity (DOE^*), which we see as an indicator of our capital policy, at 2.5%. We will also buy back shares flexibly taking the market environment into consideration.