Basic Policy on Profit Allocation

Our firm recognizes that one crucial issue for its management is simultaneously securing competitiveness in our business lines and returning profits to our shareholders. Our policy is to return return profits to shareholders through dividends and share buybacks, etc., in accordance with the status of our business performance, while maintaining a balance with internal reserves necessary for launching new businesses and business expansion.

Based on the above basic policy, for the time being, we have targeted a total return ratio of 50% and a consolidated dividend payout ratio in the range of 30% to 50%.

Status of Dividends

As planned at the beginning of the fiscal year, the midterm dividend for FY2026 will not be paid.

The year-end dividend for FY2026 was initially forecast at 65 yen per share. However, on the condition that the tender offer for shares of the Company by NSSK-EPSILON1, announced on October 29, 2026, is successfully completed, the dividend forecast has been revised, and no year-end dividend will be distributed.

Change in Dividends (As of October 29, 2026)

	Annual Dividend （JPY per share）	Total Dividend Amount （millions of JPY）	Payout Ratio (Consolidated)
2021 (results)	25.00	184	18.8％
2022 (results)	30.00	218	19.9％
2023 (results)	33.00	240	35.3％
2024 (results)	50.00	356	106.7％
2025 (results)	60.00	427	54.7％
2026 (forecasts)	00.00	ー	ー

Regarding the “Revision of Year-End Dividend Forecast,” please refer to the separate disclosures made today, namely the “Statement of Opinion (in Favor) and Recommendation to Tender in Relation to the Tender Offer by NSSK-EPSILON1 for Shares of the Company,” as well as the “Notice of Revision (No Dividend) to the Year-End Dividend Forecast for FY2027.”

Acquisition of Treasury Stock

Purchase Period	No. of Shares Purchased	Total Purchase Value	Details
May. 13, 2024 – Aug. 9, 2024	163,900 shares	¥259,846,600	PDF:134KB
Feb. 8, 2023 – Feb. 27, 2023	138,900 shares	¥149,926,000	PDF:123.3KB
Nov. 1, 2021 – Jan. 26, 2022	299,500 shares	¥249,997,600	PDF:140.3KB
Nov. 2, 2020 – Nov. 13, 2020	1,600,000 shares	¥153,650,900	PDF:141.6KB
Jul. 28, 2011 – Nov. 30, 2011	717,100 shares	¥93,428,300	PDF:87KB
Dec. 17, 2010 – Jan. 7, 2011	790,000 shares	¥134,984,100	PDF:85KB

As of October 1, 2021, the reverse stock split was carried out at a ratio of one-for-10 shares of common stock.

Disposal of Treasury Stock

Date of Disposal	No. of Disposed Shares	Total Disposal Value	Details
Aug. 8, 2025	2,500 shares	¥4,792,500	PDF:117KB
Aug. 23, 2024	17,500 shares	¥30,100,000	PDF:129KB
Aug. 25, 2023	15,000 shares	¥22,875,000	PDF:128KB
Oct. 28, 2022	44,040 shares	¥54,345,360	PDF:129KB
Aug. 22, 2022	16,200 shares	¥19,990,800	PDF:124KB
Mar. 19, 2021	454,400 shares	¥39,987,200	PDF:155KB
Dec. 19, 2014	350,000 shares	¥106,750,000	PDF:119KB

As of October 1, 2021, the reverse stock split was carried out at a ratio of one-for-10 shares of common stock.