Basic Policy on Distribution of Profits

In our new medium-term management plan, which began in the fiscal year ending March 2022, we aim to increase corporate value by contributing to the realization of a circular society and a sustaining society where everyone can live with a smile and security through packaging. The Company considers returning profits to shareholders in accordance with the consolidated results of operations for each fiscal year, while at the same time continuing to increase the return of profits to shareholders, to be its most important management issue.

As such, the Company’s view on profit allocation is as follows.

• Invest in continued growth (technology development, human resource development, capital expenditures, M&A)
• Target a consolidated dividend payout ratio of 20-25%
• Increase the dividend per share in a stable and sustained manner
• Build a stable financial base prepared for emergencies and acquire and dispose of treasury stock (increase capital efficiency)

In the fiscal year ended March 2021, the business environment surrounding our group became extremely demanding due to the spread of new corona viruses. However, the net profits exceeded the performance forecast announced on May 13, 2020.

At the meeting of the Board of Directors held on May 20, 2021, dividends for the year ended March 31, 2021 were set at ¥16 per share, the initial forecast for the year, taking into account the results for the current fiscal year. With the addition of an interim dividend of ¥16 per share, the annual dividend will be ¥32 per share, for a consolidated dividend payout ratio of 21.2%.

For the fiscal year ending March 2022, based on the basic policy mentioned above, we plan to pay an annual dividend of ¥35 per share. This results in a consolidated dividend payout ratio of 21.7% for the year ending March 31, 2022.